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深深房B:2026年半年度报告(英文版)

图1

Shenzhen Properties Group深房集团

Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.

2026 Interim Report

2026-039

[August 26, 2026]

Section I Important Notes, Table of Contents and Interpretations

The Board of Directors, the directors, and the executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.

Principal CHEN Ming, Chief Finance Officer WANG Jianfei and Chief Accountant (accounting officer) ZHOU Hongpu declare that they guarantee the authenticity, accuracy and completeness of the financial report in the Semi-annual Report.

All directors attended the board meeting at which this Semiannual Report was considered.

Some of the descriptions in the Company's semi-annual report relating to future business plans or business work arrangements are subject to various factors and do not constitute a substantial commitment by the Company to investors. Investors and related persons should maintain sufficient risk awareness and understand the differences between plans, forecasts and commitments.

The Company plans not to distribute cash dividends, issue bonus shares, or increase share capital through capitalization of reserves.

Table of Contents

Section I Important Notes, Table of Contents and Interpretations....2

Section II Company Profile and Major Financial Indicators....6

Section III Management's Discussion and Analysis....9

Section IV Corporate Governance, Environment and Society....23

Section V Significant Events....24

Section VI. Share Changes and Shareholder Information....35

Section VII Bonds....42

Section VIII Financial Statements....43

List of Reference Documents

1. The financial statements with the personal signatures and stamps of the Company’s legal representative, Chief Financial Officer and head of the financial department.

2. The originals of all the documents and announcements disclosed by the Company on the designated information disclosure media during the Reporting Period.

Interpretations

Item of interpretationsRefers toInterpretations
“Shenzhen SASAC” or the “Municipal SASAC”Refers toThe State-owned Assets Supervision and Administration Commission of the People's Government of Shenzhen Municipal
SIHC, Shenzhen Investment HoldingsRefers toShenzhen Investment Holdings Co., Ltd.
The Company, the Group, SPG or "we"Refers toShenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Petrel HotelRefers toShenzhen Petrel Hotel Co., Ltd.
Zhentong EngineeringRefers toShenzhen Zhentong Engineering Co., Ltd.
Huazhan Construction SupervisionRefers toShenzhen Huazhan Construction Supervision Co., Ltd
Jianbang GroupRefers toGuangdong Jianbang Group (Huiyang) Industrial Co., Ltd.
Chuanqi Real Estate DevelopmentRefers toShenzhen Shenfang Chuanqi Real Estate Development Co., Ltd.
GuangmingliRefers toSPG Guangmingli Project
LinxinyuanRefers toSPG Linxinyuan Project
CuilinyuanRefers toSPG Cuilinyuan Project

Section II Company Profile and Major Financial Indicators

I. Company Profile

Stock nameSPG, SPG-BStock code000029 (200029)
Stock exchange where the Company's stocks are listedShenzhen Stock Exchange
Chinese name深圳经济特区房地产(集团)股份有限公司
Chinese abbreviation of the Company (if any)深房集团
Foreign name of the Company (if any)Shenzhen Special Economic Zone Real Estate&Properties (Group) Co., Ltd.
Abbreviation of the Company's foreign name (if any)SPG
Legal representativeChen Ming

II. Contact information

Secretary of the Board of DirectorsSecurities affairs representative
NameLuo YiHong Lu
Contact address47/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, P.R.China47/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, P.R.China
Tel.(86 755) 25108897(86 755) 25108837
Fax(86 755) 82294024(86 755) 82294024
E-mailspg@sfjt.sihc.com.cnspg@sfjt.sihc.com.cn

III. Other Information

1. Company contact information

Whether the Company's registered address, office address and their postal codes, Company website, email address, etc. changed during the reporting period

□ Applicable Not applicable

The Company's registered address, office address and their postal codes, Company website, email address, etc. did not change during the reporting period. Please refer to the 2025 Annual Report for details.

2. Information disclosure and storage location

Whether the information disclosure and storage location changed during the reporting period

□ Applicable Not applicable

The stock exchange website and media names and websites where the Company discloses its semi-annual report, and the storage location of the Company's semi-annual report did not change during the reporting period. Please refer to the 2025 Annual Report for details.

3. Other related information

Whether other related information changed during the reporting period

□ Applicable Not applicable

IV. Key Accounting Data and Financial Indicators

Whether the Company needs to retroactively adjust or restate the accounting data of previous years

☐ Yes No

The reporting periodSame period last yearIncrease/decrease
Operating revenue (RMB)149,256,953.04637,366,221.35-76.58%
Net profit attributable to the shareholders of the listed company (RMB)-8,560,110.26103,027,646.42-108.31%
Net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss (RMB)-15,629,926.7894,352,487.97-116.57%
Net cash flows from operating activities (RMB)24,947,099.48-87,422,241.58128.54%
Basic earnings per share (RMB/share)-0.00850.1018-108.35%
Diluted earnings per share (RMB/share)-0.00850.1018-108.35%
Weighted average rate of return on net assets-0.24%2.89%-3.13%
End of the reporting periodEnd of the previous yearIncrease/decrease at the end of the reporting period compared to the end of the previous year
Total assets (RMB)3,803,877,936.083,882,782,985.57-2.03%
Net assets attributable to shareholders of the listed company (RMB)3,574,457,510.493,612,323,196.38-1.05%

V. Differences Between Accounting Data Under Domestic and Foreign Accounting Standards

1. Differences in net profit and net assets in the financial reports disclosed in accordance with the international accounting standards and the Chinese accounting standards

□ Applicable Not applicable

During the reporting period of the Company, there was no difference in net profits and net assets in financial reports disclosed in accordance with international accounting standards and Chinese accounting standards

2. Differences in net profit and net assets in financial reports disclosed in accordance with both the international accounting standards and Chinese accounting standards

□ Applicable Not applicable

During the reporting period of the Company, there was no difference in net profits and net assets in financial reports disclosed in accordance with the international accounting standards and Chinese accounting standards

VI. Non-recurring Profit or Loss Items and Amounts

☑ Applicable ☐ Not applicable

Unit: RMB

ItemAmountNotes
Government grants included in profit and loss of the current period (except for government subsidies that are closely related to the Company's normal business operation, comply with national policies and are enjoyed in accordance with defined criteria, and have a continuing impact on the Company's profit or loss)2,000.00
Profit or loss from changes in fair value of financial assets and liabilities held by non-financial enterprises and profit or loss from the disposal of financial assets and financial liabilities, except for effective hedging operations related to the Company's normal business operations7,069,256.29Changes in fair value arising from investments in money market funds
Non-operating revenue and expenses other than the above-mentioned items-1,253.02
Less: income tax effects186.75
Total7,069,816.52

Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss:

□ Applicable Not applicable

The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.

Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items

☑ Applicable ☐ Not applicable

ItemAmount involved (RMB)Reasons
Refund of service fee for withholding individual income tax52,026.64Continuously occurring from year to year, not occasional, recognized as recurring gains and losses

Section III Management's Discussion and Analysis

I. Main business engaged in by the Company during the reporting period

(I) Industry development during reporting period

On July 15, the official website of the National Bureau of Statistics released the national economic performance for the first half of 2026. In the first half of the year, China's economy withstood pressure and operated within a reasonable range, with production and supply growing relatively fast, employment generally stable, prices rising moderately, foreign trade maintaining a good momentum, new drivers of growth developing rapidly, people's livelihood effectively secured, and development resilience continuously demonstrated. In terms of the industry, in recent years, various regions have implemented city-specific policies, continuously optimized and adjusted real estate policies to control increments, reduce inventory destocking pressure, and improve supply. They have orderly relaxed house purchase restrictions, deepened the reform of the housing provident fund system, increased the supply of affordable housing, and promoted urban renewal and renovation. By working from both the supply and demand sides, a coordinated set of policy measures has been introduced. The supply and demand relationship in the real estate market has gradually improved, and market expectations have picked up.

(II) Company's operations during reporting period

In the first half of the year, facing a complex and volatile external environment and arduous development tasks, all cadres and employees of the Company overcame difficulties and forged ahead with determination, making certain progress in all tasks:

1. Main businesses operated under pressure with obvious structural differentiation. First, rea estate sales fell short of expectations, and destocking pressure remained prominent; Second, property leasing and operation advanced steadily, with rental income in the first half of the year reaching 40% of the annual target; Third, operations of affiliated enterprises showed mixed results; some affiliated enterprises remained in a state of loss, and there was a certain gap between major economic indicators and annual assessment targets.

2. Exploration of future development steadily advanced, continuously consolidating foundational support. First, focusing on key fields and critical industries, the Company successively engaged in research on multiple industrial projects, laying a theoretical foundation for its future development; Second, a project expansion and screening mechanism was established to connect with high-quality internal and external resources and actively explore diversified capital cooperation models.

3. Risk mitigation remained controllable, and safety defense line was continuously strengthened. First, regarding the bankruptcy liquidation of Jianbang Company, the Company maintained

continuous communication with the special task force, the court, and the administrator to safeguard its legitimate rights and interests. Second, 30 safety inspections were cumulatively carried out, and over 70 hidden dangers were rectified in a closed-loop manner, effectively preventing safety risks; Third, risk and hidden danger screening and early warning were carried out on a regular basis, and no major petition-related matters or public opinion incidents occurred during the Reporting Period.

4. Comprehensive capabilities were continuously improved, and governance efficiency was constantly optimized. First, the revision of the headquarters' compensation and performance assessment systems was completed, human resource allocation was optimized, and organizational effectiveness was steadily improved; Second, information disclosure was strictly managed, compliance reviews were strengthened, and corporate governance became more standardized and orderly; Third, the centralized management of funds was strengthened, budget and settlement reviews were strictly conducted, and results in cost reduction and efficiency enhancement were evident.

5. Party-building integration deepened continuously, and political guidance was consistently strengthened. First, study and education on establishing and practicing a correct view of performance were solidly advanced, promoting the organic unity of "immediate rectification" and "long-term establishment" through a supervisory mechanism of "three inspections and three rectifications"; Second, the Group's leadership team members visited the frontline at the primary level and provided point-to-point support to designated enterprises on 21 occasions, continuously deepening the construction of the "one enterprise, one brand" initiative in Party building; Third, responsibility letters for Party conduct and clean governance were signed at each level, pre-holiday integrity education was organized, and supervision and discipline enforcement were strengthened by focusing on key links such as bidding and procurement, building a solid defense line against integrity risks.

The Company shall comply with the disclosure requirements for the real estate industry as set out in the Guidelines for Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure New land reserve projects

Land parcel or project nameLocationLand planning purposeLand area (m2)Capacity building area (m2)Land Acquisition MethodEquity ratioTotal land price (RMB10,000)Equity consideration (RMB10,000)

Cumulative Land Reserve

Project/Area nameTotal floor area (10,000 m2)Total construction area (10,000 m2)Remaining developable floor area (10,000 m2)
Shantou Xinfeng Building0.592.662.66
Total0.592.662.66

Development of main projects

City/RegionProjectLocationProjectfor matEquityratioCommencementtimeDevelopmentprogressSchedule ofcompletionLandarea (m2)Plannedcapacity building area (m2)Completedarea of the current period (m2)Cumulativecompleted area (m2)Estimated totalinvestment amount (RMB1 0,000)Total accumulated investment amount (RMB1 0,000)

Sales of main projects

City/RegionProjectLocationProject formatEquity ratioCapacity building area (m2)Sala ble area (m2)Cumulative pre-sale (sales) area (m2)The current period pre-sale (sales) area (m2)Amount of pre-sale (sale) in the current period (RMB10,000)Cumulative settlement area (m2)Settlement area in the current period (m2)Settlement amount in the current period (RMB10,000)
ShenzhenCuilinyuanLonggang DistrictReady for sale100.00%6011156137561371745.841,309.3854393.381745.841,247.03
ShantouTianyue wan Phase IChaoyang DistrictReady for sale100.00%153470160372122839.3352.44285.8122317.55670.94360.46
ShantouTianyue wan Phase IIChaoyang DistrictReady for sale100.00%12777013705954977.5841192,803.453779.525241.813,174.75
ShenzhenGuangmingliGuangming areaReady for sale100.00%536055197536041.3535742.02

Leasing of main projects

ProjectLocationProject formatEquity ratioRentable area (m2)Accumulated leased area (m2)Average occupancy rate
Real Estate MansionShenzhenCommercial100.00%3413.883413.88100.00%
North Tower of Guoshang MansionShenzhenCommercial100.00%4819.714819.71100.00%
Petrel BuildingShenzhenCommercial100.00%22475.4722475.47100.00%
SPG PlazaShenzhenOffice building100.00%58407.5532979.4156.46%
Podium of SPG PlazaShenzhenCommercial100.00%20796.8420796.84100.00%
Wenjin GardenShenzhenCommercial100.00%3531.63531.6100.00%

Level-I land development

□ Applicable Not applicable

Financing approach

Financing approachFinancing balance at the end of theFinancing cost range/average financing costTerm structure
Within 1 year1-2 years2-3 yearsOver 3 years
period (RMB10,000)(RMB10,000)
Others $765.14^1$ 1.95%-3.1%765.140.000.000.00
Total765.14765.140.000.000.00

Development strategy and business plan for the next year

Note: 1 Factoring of accounts receivable

In the second half of the year, the Company will overcome difficulties and comprehensively advance the following five key areas of work:

(I) Focusing on main business breakthroughs and making every effort to sprint toward annual business objectives. First, focus on advancing the destocking of existing housing while making every effort to advance the US land sale task, fighting a tough battle in project marketing; Second, efficiently revitalize self-owned property resources, strengthen daily operation, maintenance and customer services, and improve the quality and efficiency of asset operations; Third, all affiliated enterprises should anchor their annual assessment indicators, close gaps, catch up on progress, and promote the achievement of production and efficiency targets.

(II) Focusing on future development and accelerating the cultivation of a second growth curve. First, focusing on "what the country needs, where the industry trends, what Shenzhen requires, and what SPG is capable of," strengthen strategic synergy and communication with the controlling shareholder, accurately target the primary direction of future development, and clarify specific implementation paths and promotion measures; Second, improve the market-oriented operating mechanism, accelerate the adjustment of the business structure towards a direction that better meets market demand and has more development resilience, and consolidate the foundation for long-term development.

(III) Focusing on steady operations and firmly building a bottom line for risk prevention. First, continuously follow up on bankruptcy liquidation cases, accelerate the disposal of "non-core and nonadvantageous businesses, inefficient and ineffective assets" and the governance of loss-making enterprises, and make every effort to resolve various operational risks; Second, deepen the construction of a dual preventive mechanism, perfect the assessment and accountability system, and strictly implement closed-loop rectification of hidden dangers to ensure a stable and controllable work safety situation throughout the year; Third, promptly resolve current petition-related matters and resolutely prevent major sudden unstable events, creating a stable and orderly internal and external environment for the Company's development

(IV) Focusing on lean governance to comprehensively stimulate endogenous development momentum. First, build a high-quality, professional talent team adaptable to the Company's development, solidly conduct annual assessments, and fully stimulate the team's vitality in entrepreneurship and work; Second, continuously deepen ESG governance and sustainable development practices, enhance the quality of information disclosure, strengthen the construction of a compliance management system, and standardize the modern governance system; Third, strengthen the budget management and dynamic monitoring of key expenses, deeply explore the potential of internal cost reduction, and further enhance overall operational efficiency.

(V) Focusing on Party-building integration to foster a clean and upright development environment. First, solidly complete the "second half of the article" in the study and education on establishing and practicing a correct view of performance, guiding cadres at all levels to focus their minds on practical work and devote their energy to implementation; Second, carry out a "review and reassessment" of the implementation of the spirit of the Party building conference for state-owned enterprises, systematically summarize experience, benchmark against standards to identify deficiencies, and lead and guarantee high-quality development with high-quality Party building; Third, regularize Party spirit education and warning education, persistently rectify the "four forms of decadence", comprehensively promote the mechanism ensuring that officials "dare not, cannot, and do not want to be corrupt", and continuously cultivate a clean and upright political ecosystem.

Guarantee to buyers of commercial housing for bank mortgage

☑ Applicable ☐ Not applicable

Guaranteed unitFinancial institutions for loansGuaranteed borrowing amount (RMB'0,000)Maturity date of guaranteeRemark
HomebuyersChina Construction Bank36.4Until the property ownership certificate is registered as collateral and handed over to bank for keepingShanglinyuan
HomebuyersChina Construction Bank631.55Until the property ownership certificate is registered as collateral and handed over to bank for keepingChuanqi Donghu Mingyuan
HomebuyersIndustrial and Commercial Bank of China, Bank of China, Postal Savings Bank2,580.00Until the property ownership certificate is registered as collateral and handed over to bank for keepingTianyuewan
HomebuyersHuaxia Bank, Rural Commercial Bank, Postal Savings Bank of China, China Merchants Bank, Bank of China9,973.66Until the property ownership certificate is registered as collateral and handed over to bank for keepingGuangmingli
Sub-total13,221.61

Joint investments by directors and senior management and the listed company (applicable for such investments where the directors and senior management are the major source of investment):

□ Applicable Not applicable

II. Analysis of Core Competitiveness

As the earliest real estate developer founded in the Shenzhen Special Economic Zone, the Company helped build the early city, and has created a number of "first places" in the history of real estate development in China. For example, the first to use the paid state-owned land, the first to introduce the foreign investment for the cooperative land development, the first to raise development funds by means of pre-sale of buildings, the first to carry out public bidding for construction projects in accordance with international practices, the first to set up a property management company to the buildings and residences developed in an all-rounded manner, as well as winning the bid in the new China’s first auction of land use rights held in the Shenzhen Special Economic Zone.

After more than 40 years of development, the Company has grown into a business group with real estate development and operation as its main business, integrating engineering and construction, project supervision, asset management and other diversified operations. In the future, the Company will actively cultivate and promote a corporate culture of compliance, integrity and excellence. It will remain committed to giving back to society with high-quality products and building its reputation through quality, striving to become a respected and trustworthy listed company.

III. Analysis of Primary Business

Overview

Please refer to "I. Main businesses engaged in by the Company during the reporting period".

YoY changes in key financial data

Unit: RMB

The reporting periodSame period last yearYoY changeReason for changes
Operating revenue149,256,953.04637,366,221.35-76.58%Mainly driven by the decrease in real estate sales revenue.
Operating costs123,812,714.67463,717,990.62-73.30%Mainly driven by the decrease in real estate sales revenue and the corresponding reduction in carried-forward costs.
Selling and distribution expenses6,366,066.939,708,711.93-34.43%Mainly driven by the decrease in real estate sales revenue and the corresponding reduction in selling expenses.
G&A expenses27,112,672.7632,175,388.99-15.73%Mainly driven by the decrease in litigation expenditures.
Financial expenses370,341.931,213,306.62-69.48%Mainly driven by the decrease in interest expenses.
Income tax expenses950,501.4521,496,138.68-95.58%Mainly driven by the YoY decrease in total profit.
Net cash flows from operating activities24,947,099.48-87,422,241.58128.54%Mainly driven by the decrease in operating expenditures.
Net cash flows from the investing activities27,997.57-109,975,806.04100.03%Mainly driven by the purchase of money market funds in the same period of the previous year.
Net cash flows from financing activities-35,408,100.00-34,949,336.04-1.31%
Net increase in cash and cash equivalents-10,581,033.38-232,411,276.3895.45%Mainly driven by the decrease in operating expenditures, as well as the purchase of money market funds in the same period of the previous year while no such investments occurred in the current period.

Significant changes in profit composition or profit sources of the Company during the Reporting Period

□ Applicable Not applicable

There were no significant changes in the profit composition or profit sources of the Company during the Reporting Period.

Composition of operating revenue

Unit: RMB

The reporting periodSame period last yearYoY change
AmountPercentage of operating revenueAmountPercentage of operating revenue
Total operating revenue149,256,953.04100%637,366,221.35100%-76.58%
By industry
Real estate52,398,397.0635.11%567,722,393.4289.07%-90.77%
Engineering construction59,153,878.1739.63%35,772,588.065.61%65.36%
Property management1,624,178.411.09%1,631,793.560.26%-0.47%
Rental and others36,080,499.4024.17%32,239,446.315.06%11.91%
By product
Residence52,228,873.2534.99%567,560,925.5289.05%-90.80%
Shops and parking lots169,523.810.11%161,467.900.03%4.99%
Others96,858,555.9864.89%69,643,827.9310.93%39.08%
By region
Guangdong Province148,895,064.3899.76%637,317,371.3399.99%-76.64%
Overseas361,888.660.24%48,850.020.01%640.82%

Industry, product or region accounting for more than 10% of the Company's operating revenue or operating profit ☑ Applicable ☐ Not applicable Unit: RMB

Operating revenueOperating costsGross marginYoY change in operating revenueYoY change in operating costsYoY change in gross margin
By industry
Real estate52,398,397.0640,173,306.9523.33%-90.77%-90.08%-18.57%
Engineering construction59,153,878.1757,963,722.262.01%65.36%64.43%37.67%
Rental and others36,080,499.4024,456,901.8932.22%11.91%9.53%4.81%
By product
Residence52,228,873.2540,029,549.0723.36%-90.80%-90.11%-18.46%
By region
Guangdong Province148,895,064.38122,593,931.1017.66%-76.64%-73.50%-35.55%

Under the circumstances that the calculation method of the Company's main business data is adjusted during the reporting period, the Company's main business data for the latest period is adjusted according to the calculation method at the end of the reporting period

□ Applicable Not applicable

IV. Analysis of Non-primary Business

□ Applicable Not applicable

V. Analysis of Assets and Liabilities

1. Major changes in asset composition

Unit: RMB

End of the reporting periodEnd of the last yearIncrease/decrease in percentageExplanation of significant changes
AmountRatio of total assetsAmountRatio of total assets
Monetary funds270,648,313.667.12%284,686,525.047.33%-0.21%
Accounts receivable45,419,725.161.19%44,898,083.741.16%0.03%
Contract assets21,855,722.040.57%29,035,256.280.75%-0.18%
Inventories653,640,319.2017.18%1,099,359,619.2528.31%-11.13%Mainly driven by the transfer of some self-held shops to investmentproperties for accounting.
Investment properties937,519,655.4624.65%522,634,659.1713.46%11.19%Mainly driven by the transfer of some self-held shops to investment properties for accounting.
Long-term equity investments0.000.00%0.000.00%0.00%
Fixed assets13,578,063.330.36%14,949,900.450.39%-0.03%
Construction in progress0.000.00%571,822.670.01%-0.01%
Right-of-use assets0.000.00%0.000.00%0.00%
Short-term borrowings1,065,508.630.03%50,000.000.00%0.03%
Contract liabilities21,426,300.030.56%28,400,659.200.73%-0.17%
Long-term borrowings0.000.00%0.000.00%0.00%
Lease liabilities0.000.00%0.000.00%0.00%
Financial assets held for trading1,057,325,314.7027.80%1,050,256,058.4127.05%0.75%
Accounts payable168,578,885.714.43%171,738,333.044.42%0.01%
Taxes payable18,826,842.100.49%26,922,082.580.69%-0.20%
Other payables119,077,007.223.13%144,280,409.163.72%-0.59%
Other receivables729,582,117.0419.18%747,900,491.5219.26%-0.08%

2. Major overseas assets

□ Applicable Not applicable

3. Assets and liabilities measured at fair value

☑ Applicable ☐ Not applicable

Unit: RMB

ItemBeginning balanceProfit or loss from changes in fair value in the currentperiodCumulative changes in fair value included in equityImpairment provision in the current periodAmount purchased in the current periodAmount sold in the current periodOther changesEnding balance
Financial assets
1. Financial assets held for trading (excluding derivative financial assets)1,050,256,058.417,069,256.290.000.001,057,325,314.70
4. Other equity instrument investments14,571,511.81-2,841,991.4211,729,520.39
Total of the above1,064,827,570.227,069,256.29-2,841,991.420.000.000.000.001,069,054,835.09
Financial liabilities0.000.00

Other changes

Whether there were significant changes in the measurement attributes of the Company's major assets during the reporting period

☐ Yes No

4. Restrictions on asset rights as of the end of the reporting period

Unit: RMB

ItemClosing book valueReason for restriction
Monetary funds16,132.40Special account funds for migrant workers
Monetary funds2,201,283.57Funds frozen due to litigation
Monetary funds50,000.00Construction deposit
Monetary funds70,010.20Stop payments, suspend accounts
Accounts receivable7,651,398.78Put in pledge for short-term borrowings
Total9,988,824.95

VI. Investments Analysis

1. Overall situation

☑ Applicable ☐ Not applicable

Amount of Reporting Period (RMB)Amount of the same period of lastyear (RMB)Change (%)
25,104,700.0025,060,000.000.18%

2. Major equity investments acquired during the reporting period

□ Applicable Not applicable

3. Major non-equity investments in progress during the reporting period

□ Applicable Not applicable

4. Investment in the financial assets

(1) Securities investment

□ Applicable Not applicable

The Company had no securities investment during the reporting period.

(2) Derivative investment

□ Applicable Not applicable

The Company had no derivative investment during the reporting period.

5. Use of funds raised

□ Applicable Not applicable

The Company had no use of funds raised during the reporting period.

VII. Sales of Major Assets and Equities

1. Sales of major assets

□ Applicable Not applicable

The Company did not sell major assets during the reporting period.

2. Sale of major equity

□ Applicable Not applicable

VIII. Major Subsidiaries

☑ Applicable ☐ Not applicable

Major subsidiaries and participating companies with an impact of 10% or more on the Company's net profit

Unit: RMB

Company nameCompany typeMain businessRegistered capitalTotal assetsNet assetsOperating revenueOperating profitNet profit
Shenzhen ShenfangSubsidiariesReal estate300000001,628,336,806.561,210,639,849.0051,815.145,647,955.625,647,956.56
Chuanqi Real Estate Development Co., Ltd.development
Shenzhen Properties Group Longgang Development Co., Ltd.SubsidiariesReal estate development3000000097,587,521.6766,579,141.2613,405,320.942,998,415.452,248,811.59
Shantou Hualin Real Estate Development Co., Ltd.SubsidiariesReal estate development91226120.44104,996,712.6652,906,201.68437,930.20517,706.24517,706.24
Shantou Huafeng Real Estate Development Co., Ltd.SubsidiariesReal estate development80000000678,944,641.78-53,894,019.3035,685,788.34-1,068,536.20-1,068,535.34
Great Wall Real EstateCo., Ltd. in the UnitedStatesSubsidiariesReal estate development205114619,191,575.83-89,193,808.19361,888.66-156,192.49-156,192.49
Shenzhen Zhentong Engineering Co., Ltd.SubsidiariesInstallation and maintenance1000000084,986,773.322,911,895.8172,375,316.0940,187.9340,187.93
Shenzhen Petrel Hotel Co., Ltd.SubsidiariesProperty leasing and management3000000056,598,961.5742,825,628.799,196,297.93771,527.27577,337.23
Shenzhen Huazhan Construction Supervision Co., LtdSubsidiariesSupervision800000010,542,958.9810,273,174.36598,468.57-411,159.25-411,159.25
Xinfeng Enterprise Co., Ltd.SubsidiariesInvestment, management502335318,961,458.69-225,620,551.750.00-849,251.59-849,251.59

Information on acquisition and disposal of subsidiaries during the reporting period □ Applicable Not applicable Notes to main holding and participating companies

1. The subordinate subsidiaries engaged in real estate development include: Shenzhen Shenfang Chuanqi Rea Estate Development Co., Ltd., Shenzhen SPG Longgang Development Co., Ltd., Shantou SEZ Wellam FTY Building Development, Co., Ltd., Shantou Huafeng RealEstate Development Co., Ltd. Among them, the SPG Guangmingl project developed by Chuanqi Company (excluding the commercial part) and the Cuilinyuan project developed by Longgang Company have been completely sold out; the Jinyedao and Yuejing Dongfang developed by Shantou SEZ Wellam FTY Building Development, Co., Ltd. left a few amount of remaining buildings for sale; Shantou Huafeng Rea Estate Development Co., Ltd. was responsible for the development of Tianyuewan project (divided into Phase I and Phase II). Tianyuewan Phase I was open for sale in October 2016 and completed in December 2019. The Phase II started construction in November 2018 and was completed at the end of June2021. As of June 30, 2026, the overall sales progress is relatively slow with an accumulated sales rate of 76.6% for Tianyuewan Phase I and 10.11% fo Phase II.

2. Shenzhen Zhentong Engineering Co., Ltd. was engaged in the business of building installation and maintenance with the operating revenues of RMB 72.3753 million in the first half of 2026, accounting for 48.49% of the Group's operating revenues.

3. The 2026 net profit of Xin Feng Enterprise Co., Ltd. was RMB -849,300, which is mainly due to the depreciation and amortization of investment property.

IX. Structured Bodies Controlled by the Company

□ Applicable Not applicable

X. Risks Faced by the Company and Countermeasures

(I) Macroeconomic risks and countermeasures

Currently, the external environment is confronted with complex challenges such as frequent geopolitical conflicts and accelerated anti-globalization. However, China's economy has a solid foundation, numerous advantages, strong resilience, and great potential, with the supporting conditions and fundamental trend of long-term positive growth unchanged. The real estate industry has a greater correlation with the macroeconomy andis more influenced by the macroeconomic cycle. The Company will continue paying close attention to the international and domestic macroeconomic situations and proactively adjust its operation strategies.

(II) Industry development risks and countermeasures

At this stage, as existing policies continue to show effects, new policies are effectively implemented, and the combined impact of policies is continuously released, the real estate market is in the critical stage of stabilizing and halting the decline amid fluctuations. Nevertheless, for some time to come, the real estate industry will still face many risks and potential hidden dangers, and the market competition pattern will present a new situation. The Company will closely monitor industry policies, follow national strategic direction, continuously optimize the business development path, and actively explore innovative operating models to better adapt to changes in the external environment.

(III) Business operating risks and countermeasures

Against the backdrop of increasingly fierce competition in the real estate market, the Company is facing challenges such as insufficient reserves of development land resources, difficulties in selling inventory projects, and a lack of substantial results in new business expansion, all of which are putting pressure on corporate operation and development. The Company will closely monitor market dynamics and industry policy trends, focus on property leasing and sales, the operations of its subsidiaries, and business expansion, and actively seek innovative models and paths that align with its actual development needs to flexibly respond to market challenges and explore broader development space.

XI. Formulation and Implementation of Market Capitalization Management System and Valuation Enhancement Plan

Whether the Company has formulated a market value management system.

☐ Yes No

Whether the Company has disclosed plans for valuation enhancement.

☐ Yes No

XII. Implementation of the "Quality and Return Dual Enhancement" Action Plan

Whether the company has disclosed the announcement of the action plan of "double improvement of quality return". ☐ Yes No

Section IV Corporate Governance, Environment and Society

I. Changes in Directors and Senior Management of the Company

☑ Applicable ☐ Not applicable

NamePositionTypeDateReasons
Zhang ManhuaDirectorResignedMarch 6, 2026Job transfer
Peng XingtingDirectorElectedMarch 6, 2026
Mi XumingIndependent directorResignedMay 21, 2026Personal reasons
Song BotongIndependent directorElectedMay 21, 2026

II. Profit Distribution and Conversion of Capital Reserves into Share Capital during the Reporting Period

□ Applicable Not applicable

The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital for the half year.

III. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentive Measures

□ Applicable Not applicable

During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or othe employee incentive measures and their implementation.

IV. Disclosure of Environmental Information

Whether the listed company and its main subsidiaries are included in the list of enterprises required to disclose the environmental information by law

☐ Yes No

V. Social Responsibilities

While pursuing economic benefits and protecting shareholders' interests, the Company actively fulfilled its socia responsibilities, demonstrating its corporate social value and sense of responsibility. During the reporting period, the Company actively participated in special poverty alleviation through consumption campaigns to promote consumption assistance and rural revitalization in Shenzhen; continuously implemented the assistance project in Longdou Town, Chenghai District, Shantou City; and organized comprehensive fire emergency drills for merchants in the property buildings under its jurisdiction to enhance public awareness of fire safety and prevention

Section V Significant Events

I. Commitments made by the Company's De Facto Controller, shareholders, related parties, acquirers, the Company and other related parties that have been fulfilled within the reporting period and those that have not been fulfilled as of the end of the reporting period

□ Applicable Not applicable

During the reporting period, there were no commitments made by the Company's De Facto Controller, shareholders, related parties, acquirers, the Company and other related parties that have been fulfilled within the reporting period and those that have not been fulfilled as of the end of the reporting period.

II. Non-operational occupation of funds by the controlling shareholders and other related parties of the listed company

□ Applicable Not applicable

During the reporting period, there were no non-operational funds occupied by the controlling shareholders and other related parties for the listed company.

III. Illegal external guarantees

□ Applicable Not applicable

The Company had no illegal external guarantee during the reporting period.

IV. Appointment and Dismissal of Accounting Firm

Whether the semi-annual financial report has been audited

☐ Yes No

The Company's semi-annual report has not been audited.

V. Explanations Given by the Board of Directors Regarding the Accounting Firm's "Modified Opinion" on the Financial Statements of the Reporting Period

□ Applicable Not applicable

VI. Explanations Given by the Board of Directors Regarding the "Modified Opinion" on the Financial Statements of the Previous Year

□ Applicable Not applicable

VII. Matters Related to Bankruptcy and Reorganization

□ Applicable Not applicable

During the reporting period, the Company had no bankruptcy restructuring related matters.

VIII. Litigation Matters

☑ Applicable ☐ Not applicable

General informationAmount involved (RMB10,000)Whether estimated liabilities are formedProgressDecisions and effectsExecution of decisionsDate of disclosureDisclosure index
Lawsuit of bill dispute17,715.14NoThis enforcement procedure is terminated.Jianbang Company has entered the bankruptcy and liquidation proceedings, and creditors may file claims with the administrator.As Jianbang Group is incapable of paying the commercial bills due in January 2022, which total RMB177,151,400, Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Huiyang Hongfa Industry & Trade Co., Ltd. and Huizhou Jinlongsheng Industrial Co., Ltd. brought a lawsuit on the bill dispute to the People's Court of Huiyang District. The Huiyang District Court ruled at first instance in March 2023 that Jianbang Group should pay the acceptance bill amount and interest.Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Huiyang Hongfa Industry & Trade Co., Ltd., and Huizhou Jinlongsheng Industrial Co., Ltd. have applied for execution to the Huizhou Intermediate People's Court. In February 2026, the Huizhou Intermediate People's Court issued an Enforcement Order, ruling to terminate this enforcementprocedure.October 30, 2025The Announcement on the Court's Ruling to Accept the Bankruptcy and Liquidation Application against a Controlling Subsidiary and Appointment of an Administrator (Announcement No.: 2025-030) disclosed on cninfo.com.cn
Contractual disputes over loans39,568.85NoThe enforcement procedure is terminated.Jianbang Company has entered the bankruptcy and liquidation proceedings, and filed claims with the administrator.In January 2024, the Company received a civil judgment of the first instance issued by the Shenzhen Luohu District People's Court, and the Company won the case.The Company has applied to the Shenzhen Luohu District People's Court for mandatory enforcement. On December 2, 2025, the Company received the Enforcement Order, ruling to terminate the enforcement procedure.May 13, 2025The Litigation Matters (Announcement No.: 2025-013) and the Announcement on the Court's Ruling to Accept the Bankruptcy and Liquidation Application against a Controlling Subsidiary and Appointment of an Administrator (Announcement No.: 2025-030) disclosed on cninfo.com.cn
Joint venture and cooperative real estate development contract disputes74,357.5NoUnder retrial.Guangzhou Bopi and Evergrande Pearl River Delta have entered bankruptcy and liquidation proceedings, and filed claims with the administrator.Shenzhen Qijin is undergoing liquidation and deregistration, and claims have been filed with the liquidation team.On January 8, 2025, our Company received the first instance Civil Judgment, and the judgment made by the Huizhou Intermediate People's Court of the first instance supported some of our company's litigation claims, but the profit make-up part was not supported as the term had not yet expired. On January 22, 2025, our Company filed an appeal regarding unsupportedUnder retrial.December 08, 2023Announcement on Litigation Matters (No.: 2023-048) on www.cninfo.com.cn
claims. In June 2026, the second-instance court, Guangdong High People's Court, issued a Civil Ruling, ruling to revoke the first-instance judgment and remand the case for retrial.
Contractual disputes over loans41,952.29NoJianbang Company, Guangzhou Bopi, and Evergrande Pearl River Delta have all entered bankruptcy and liquidation proceedings, and claims have been filed with their respective administrators. Shenzhen Qijin is undergoing liquidation and deregistration, and claims have been filed with the liquidation team.In October 2024, our Company received the civil ruling for the second instance of this case, and the case was treated as a withdrawal of the lawsuit. The first-instance judgment has taken effect, and the Company has won the case. The Company applied to the court for compulsory enforcement in January 2025.Given that Jianbang Company, Guangzhou Bopi, and Evergrande Pearl River Delta have all entered bankruptcy and liquidation proceedings, the Company has filed claims with their respective administrators. Meanwhile, Shenzhen Qijin is undergoing liquidation and deregistration, and the Company has filed claims with the liquidation team.June 12, 2025The Litigation Matters (Announcement No.: 2025-016) and the Announcement on the Court's Ruling to Accept the Bankruptcy and Liquidation Application against a Controlling Subsidiary and Appointment of an Administrator (Announcement No.: 2025-030) disclosed on cninfo.com.cn
ApplicationNoUnderOn October 27,OnOctoberThe
for bankruptcy and liquidationbankruptcy and liquidation, the administrator has taken over Jianbang Company.2025, Jianbang Company received the Civil Ruling and the Decision from the Huizhou Intermediate People's Court. The court ruled to accept the bankruptcy and liquidation application filed by Zhongshan Shengtang Advertising Co., Ltd. against Jianbang Company and appointed an administrator.December 8, 2025, the Company submitted its claim declaration materials to the administrator of Jianbang Company based on the claim amount confirmed by the effective civil judgment, the confirmation letter of claims and debts, and transfer vouchers. The Company actively participated in creditors' meetings to exercise its rights as a creditor in accordance with the law.30, 2025Announcement on the Court's Ruling to Accept the Bankruptcy and Liquidation Application against a Controlling Subsidiary and Appointment of an Administrator (Announcement No.: 2025-030) disclosed on cninfo.com.cn

Other litigation matters

□ Applicable Not applicable

IX. Punishments and Rectifications

□ Applicable Not applicable

There was no punishment or rectification during the reporting period.

X. Credit Quality of the Company as well as Its Controlling Shareholder and De Facto Controller

□ Applicable Not applicable

XI. Major Related-Party Transactions

1. Related party transactions related to daily operations

□ Applicable Not applicable

During the reporting period, the Company had no related party transactions related to daily operations.

2. Related party transactions arising from the acquisition and sale of assets or equity

□ Applicable Not applicable

During the reporting period, the Company had no related party transactions arising from the acquisition or sale of assets or equity.

3. Related party transactions arising from joint external investment

□ Applicable Not applicable

During the reporting period, the Company had no related party transactions arising from joint external investment.

4. Related claims and debts

□ Applicable Not applicable

During the reporting period, the Company had no related debt transactions.

5. Information on transactions with finance companies with related relationship

□ Applicable Not applicable

There was no deposit, loan, credit or other financial business between the Company and the finance companies with related relationship and their related parties.

6. Transactions between the Company's holding finance companies and its related parties

□ Applicable Not applicable

There was no deposit, loan, credit or other financial business between the Company's holding finance companies and its related parties.

7. Other major related party transactions

□ Applicable Not applicable

The Company had no other major related party transactions during the reporting period.

XII. Major Contracts and Execution Thereof

1. Custody, contracting and lease matters

(1) Custody

□ Applicable Not applicable

During the reporting period, the Company had nothing under custody.

(2) Contracting

□ Applicable Not applicable

During the reporting period, the Company had no contracting.

(3) Leases

□ Applicable Not applicable

During the reporting period, the Company had no leases.

2. Significant guarantees

□ Applicable Not applicable

The Company had no material guarantees during the reporting period.

3. Entrusted wealth management

☑ Applicable ☐ Not applicable

Unit: RMB10,000

Product categoryRisk characteristicsBalance of entrusted wealth management during the reporting periodDelinquent uncollected amount
OthersMoney market funds - low risk105,732.530

Details of high-risk entrusted wealth management where the Company, as a single client, entrusts a financial institution for asset management, or invests in products with low safety and poor liquidity

□ Applicable Not applicable

4. Other major contracts

□ Applicable Not applicable

There were no other major contracts of the Company during the reporting period.

XIII. Registration Form for Reception, Survey, Communication, Interview and Other Activities during Reporting Period

☑ Applicable ☐ Not applicable

Reception timeReception placeReceptionmodeType ofreception objectReceptionobjectMain contentsdiscussed and information providedIndex of basicinformation of the survey
January 5, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
January 7, 2026The CompanyTelephone communicationIndividualIndividual investorInquire about the termination of the agreement transfer matter between the controlling shareholder and China Orient Asset ManagementNot applicable
January 12, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
January 13, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
January 15, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
January 16, 2026The CompanyTelephone communicationIndividualIndividual investorInquire about the controlling shareholder's shareholding decreaseNot applicable
January 21, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
January 23, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
January 27, 2026The CompanyTelephone communicationIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
February 2, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
February 11, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
February 11, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquire about policies and industry situationsNot applicable
February 12, 2026The CompanyTelephone communicationIndividualIndividual investorInquire whether the Company has survey activitiesNot applicable
February 24, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
February 27, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 2, 2026The CompanyyWritten inquiryIndividualIndividual investorInquire about the number ofshareholdersNot applicable
March 4, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 4, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 5, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 9, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 9, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
March 11, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 12, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 19, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
March 23, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
April 1, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
April 7, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
April 7, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
April 13, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
April 17, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquire about the Company's daily operationsNot applicable
April 21, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
April 22, 2026The CompanyTelephone communicationIndividualIndividual investorInquire about the Company's primary business and performanceNot applicable
April 28, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
April 28, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquiry about the company's future developmentplanNot applicable
May 6, 2026The CompanyTelephone communicationIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
May 7, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
May 8, 2026The CompanyTelephone communicationIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
May 11, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
May 21, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
May 25, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 1, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 1, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
June 5, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 8, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 8, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
June 11, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 12, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 18, 2026The CompanyTelephone communicationIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable
June 22, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 23, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 25, 2026The CompanyTelephone communicationIndividualIndividual investorInquire about the controlling shareholder's shareholding decreaseNot applicable
June 25, 2026The CompanyyOnline communicationon the network platformIndividualIndividual investorInquiry about the progressof non-compete commitmentNot applicable
June 29, 2026The CompanyWritten inquiryIndividualIndividual investorInquire about the number of shareholdersNot applicable
June 29, 2026The CompanyOnline communication on the network platformIndividualIndividual investorInquiry about the progress of non-compete commitmentNot applicable

XIV. Notes to Other Major Matters

□ Applicable Not applicable

The Company had no other major matters to be explained during the reporting period.

XV. Major Matters of the Company's Subsidiaries

□ Applicable Not applicable

Section VI. Share Changes and Shareholder Information

I. Changes in shares

1. Changes in shares

Unit: shares

Before the changeIncrease or decrease in this change (+, -)After the change
NumberRatioNew shares issuedBonus issueConversion of provident fund into sharesOthersSub-totalNumberRatio
1. Shares with restrictive conditions for sales00.00%0000000.00%
1. State-owned shares00.00%0000000.00%
2. Shares held by the state-owned legal persons00.00%0000000.00%
3. Other domestic holdings00.00%0000000.00%
Including: shares held by domestic legal persons00.00%0000000.00%
Shares held by domestic natural persons00.00%0000000.00%
4. Foreignshareholding00.00%0000000.00%
Including: shares held by overseas legal persons00.00%0000000.00%
Shares held by overseas natural persons00.00%0000000.00%
II. Shares without restrictive conditions for sales1,011,660,000100.00%000001,011,660,000100.00%
1. RMB-denominated ordinary shares891,660,00088.14%00000891,660,00088.14%
2. Domestically listed foreign shares120,000,00011.86%00000120,000,00011.86%
3. Foreign shares listed overseas00.00%0000000.00%
4. Others00.00%000000
III. Total number of shares1,011,660,000100.00%000001,011,660,000100.00%

Reasons for changes in shares □ Applicable Not applicable Approval of changes in shares □ Applicable Not applicable Transfer of changes in shares □ Applicable Not applicable

Implementation progress of share repurchase

□ Applicable Not applicable

Implementation progress of reducing repurchase shares by means of centralized bidding

□ Applicable Not applicable

Effect of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share in the latest year and the latest period, and net assets per share attributable to the Company's ordinary shareholders

□ Applicable Not applicable

Other contents deemed necessary by the Company or required by the securities regulators to be disclosed □ Applicable Not applicable

2. Changes in restricted shares

□ Applicable Not applicable

II. Issuance and listing of securities

□ Applicable Not applicable

III. Number of the Company's Shareholders and Shareholding Ratios

Unit: shares

Total number of ordinary shareholders at the end of the reporting period.38,209Total number of preferred shareholders with restoration of voting rights at the end of the reporting period (if any) (see Note 8)0
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing)
Name of shareholderNature of shareholderShareholding ratioNumber of shares held at the end of the reporting periodChanges during the reporting periodNumber of shares held under restricted conditionsNumber of shares held without restrictions on salesPledge, marking or freezing
Share statusNumber
Shenzhen Investment Holdings Co., Ltd.State-owned legal person54.79%554,247,28000554,247,280Not applicable0
Shenzhen State-owned Equity Operation Management Co., Ltd.Domestic non-state-owned legal person6.35%64,288,4260064,288,426Not applicable0
Yang JianminDomestic natural person0.95%9,658,501-62919909,658,501Pledged3,890,000
Wang YulanDomestic natural person0.62%6,228,591006,228,591Not applicable0
ZhangXiujuanDomesticnatural person0.47%4,756,9006030004,756,900Notapplicable0
Hong Kong Securities Clearing Company Ltd. (HKSCC)Overseas legal person0.45%4,551,786-248669704,551,786Not applicable0
He QiaoDomestic natural person0.43%4,384,00041590004,384,000Not applicable0
Wang ZhengyingDomestic natural person0.29%2,962,900100002,962,900Not applicable0
Zhang TianxueDomestic natural person0.28%2,830,283002,830,283Not applicable0
Industrial and Commercial Bank of China Limited - China Southern CSI All Share Real Estate ETF Securities Investment FundOthers0.28%2,794,14654684202,794,146Not applicable0
Strategic investors or general legal person becoming the top 10 shareholders due to placement of new shares (if any) (see Note 3)Not applicable
Notes to shareholders' related relationship or persons acting in concertAmong the top 10 shareholders of the Company, Shenzhen State-owned Equity Management Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co., Ltd. The Company does not know whether there exists associated relationship among the other shareholders, or whether they are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of Listed Companies.
Explanation of the above shareholders' involvement in entrusting/being entrusted voting rights and waiver of voting rightsNot applicable
Special explanation for the existence of repurchase accounts among the top 10Not applicable
shareholders (if any)(see Note 11)
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and shares locked by senior management)
Name of shareholderNumber of shares held without restrictions on sales at the end of the reporting periodType of shares
Type of sharesNumber
Shenzhen Investment Holdings Co., Ltd.554,247,280RMB ordinary shares554,247,280
Shenzhen State-owned Equity Operation Management Co., Ltd.64,288,426RMB ordinary shares64,288,426
Yang Jianmin9,658,501RMB ordinary shares9,658,501
Wang Yulan6,228,591RMB ordinary shares6,228,591
Zhang Xiujuan4,756,900RMB ordinary shares4,756,900
Hong Kong Securities Clearing Company Ltd. (HKSCC)4,551,786RMB ordinary shares4,551,786
He Qiao4,384,000RMB ordinary shares4,220,000
Domestically listed foreign shares164,000
Wang Zhengying2,962,900RMB ordinary shares2,962,900
Zhang Tianxue2,830,283Domestically listed foreign shares2,830,283
Industrial and Commercial Bank of China Limited - China Southern CSI All Share Real Estate ETF Securities Investment Fund2,794,146RMB ordinary shares2,794,146
Explanation of related relationship or concerted actions among the top 10 unrestricted shareholders, and between the top 10 unrestricted shareholders and the top 10 shareholdersAmong the top 10 unrestricted public shareholders of the Company, Shenzhen State-owned Equity Management Co., Ltd. is a wholly-owned subsidiary of Shenzhen Investment Holdings Co., Ltd. The Company does not know whether there exists associated relationship among the other shareholders, or whether they are persons acting in concert as prescribed in the Administrative Measures for the Acquisition of Listed Companies.
Explanation of the top 10 ordinary shareholders' participation in margin financing and securities lending business (if any) (see Note 4)Among the top 10 shareholders, the shareholder ranked 3rd holds 5,496,000 shares in a credit securities account, the 5th ranked shareholder holds 4,756,900 shares in a credit securities account, the 7th ranked shareholder holds 4,020,000 shares in a credit securities account, and the 8th ranked shareholder holds 2,962,900 shares in a credit securities account.

Participation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares in refinancing business and lending shares

□ Applicable Not applicable

Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the previous period due to refinancing lending/repayment

□ Applicable Not applicable

Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without restrictive condition for sales conduct any agreed repurchase transactions during the reporting period

☐ Yes No

The Company's top 10 ordinary shareholders, and top 10 ordinary shareholders without restrictive condition for sales

did not conduct any agreed repurchase transaction during the reporting period.

IV. Changes in Shareholding of Directors and Senior Management

□ Applicable Not applicable

There were no changes in the shareholdings of directors and senior management of the Company during the reporting period; please refer to the 2025 Annual Report for details.

V. Changes in Controlling Shareholders or De Facto Controller

If the Company has previously disclosed that the De Facto Controller is planning a change of control but it has not been completed, please explain the progress of the change of control.

□ Applicable Not applicable

Changes in controlling shareholders during the reporting period

□ Applicable Not applicable

There was no change in the controlling shareholder of the Company during the reporting period.

Changes in actual owner during the reporting period

□ Applicable Not applicable

There was no change in the actual owner of the Company during the reporting period.

VI. Preferred Shares

□ Applicable Not applicable

During the reporting period, the Company had no preferred shares.

Section VII Bonds

□ Applicable Not applicable

Section VIII Financial Statements

I. Audit Report

Has the semi-annual report been audited

□ Yes No

The company's semi-annual financial report has not been audited.

II. Financial Statements

The unit of the statements in the financial notes is: yuan

1. Consolidated balance sheet

Prepared by: Shenzhen Special Economic Zone Real Estate (Group) Co., Ltd

Unit: Yuan

projectClosing balanceOpening balance
Current assets
Monetary Funds270,648,313.66284,686,525.04
Settlement reserve funds0.000.00
Withdrawal of capital0.000.00
Trading financial assets1,057,325,314.701,050,256,058.41
Derivative financial assets0.000.00
Notes receivable200,000.000.00
accounts receivable45,419,725.1644,898,083.74
Accounts receivable financing0.000.00
Prepayments19,842.9431,588.45
premiums receivable0.000.00
Reinsurance accounts receivable0.000.00
Reserve for reinsurance contracts receivable0.000.00
Other receivables729,582,117.04747,900,491.52
Among them: Interest receivable0.000.00
Dividends receivable0.000.00
Purchase of financial assets held under resale agreements0.000.00
inventory653,640,319.201,099,359,619.25
Among them: data resources0.000.00
contract asset21,855,722.0429,035,256.28
Assets held for sale0.000.00
Non-current assets maturing within one year0.000.00
Other current assets53,237,235.5666,133,465.24
Total current assets2,831,928,590.303,322,301,087.93
Non-current assets:
Issuing loans and advances0.000.00
debt investment0.000.00
Other debt investments0.000.00
Long-term receivables0.000.00
Long-term equity investment0.000.00
Other equity instrument investments11,729,520.3914,571,511.81
Other non-current financial assets0.000.00
Investment property937,519,655.46522,634,659.17
Fixed assets13,578,063.3314,949,900.45
construction in progress0.00571,822.67
Productive biological assets0.000.00
oil and gas assets0.000.00
right-of-use asset0.000.00
intangible assets0.000.00
Among them: data resources0.000.00
development expenditure0.000.00
Among them: data resources0.000.00
goodwill0.000.00
Long-term deferred expenses2,706,542.521,615,683.92
Deferred tax assets6,415,564.086,138,319.62
Other non-current assets0.000.00
Total non-current assets971,949,345.78560,481,897.64
Total Assets3,803,877,936.083,882,782,985.57
Current liabilities
short-term borrowing1,065,508.6350,000.00
Borrow from the central bank0.000.00
Borrowed Funds0.000.00
Trading financial liabilities0.000.00
Derivative financial liabilities0.000.00
Notes Payable0.000.00
accounts payable168,578,885.71171,738,333.04
Advance receipts3,417,122.84722,042.14
Contract liabilities21,426,300.0328,400,659.20
Financial assets sold for repurchase0.000.00
Deposit taking and interbank deposit0.000.00
Securities trading funds on behalf0.000.00
Funds from agency underwriting ofsecurities0.000.00
Payroll payable30,266,318.4932,757,342.88
Taxes payable18,826,842.1026,922,082.58
Other payables119,077,007.22144,280,409.16
Among them: interest payable16,535,277.9416,535,277.94
Dividends payable0.000.00
Payable handling fees and commissions0.000.00
Accounts payable for reinsurance0.000.00
Liabilities held for sale0.000.00
Non-current liabilities maturing within one year0.000.00
Other current liabilities7,053,339.827,565,002.87
Total current liabilities369,711,324.84412,435,871.87
Non-current liabilities:
Reserve fund for insurance contracts0.000.00
long-term loans0.000.00
Bonds payable0.000.00
Among them: preferred stock0.000.00
perpetual bond0.000.00
lease liability0.000.00
Long-term payables0.000.00
Long-term payroll payable0.000.00
provisions0.000.00
Deferred revenue0.000.00
Deferred income tax liabilities1,337,604.71867,914.50
Other non-current liabilities0.000.00
Total non-current liabilities1,337,604.71867,914.50
Total Liabilities371,048,929.55413,303,786.37
Owners' equity:
share capital1,011,660,000.001,011,660,000.00
Other equity instruments0.000.00
Among them: preferred shares0.000.00
perpetual bond0.000.00
Capital Reserve978,244,910.11978,244,910.11
Less: Treasury Stock0.000.00
Other comprehensive income29,417,639.8923,315,115.52
Special reserves0.000.00
Surplus reserve275,253,729.26275,253,729.26
General risk provision0.000.00
Retained Earnings1,279,881,231.231,323,849,441.49
Total equity attributable to owners of the parent company3,574,457,510.493,612,323,196.38
Minority shareholders' equity-141,628,503.96-142,843,997.18
Total owner's equity3,432,829,006.533,469,479,199.20
Total liabilities and owner's equity3,803,877,936.083,882,782,985.57

Legal Representative: Chen Ming; Person in Charge of Accounting Work: Wang Jianfei; Head of Accounting Organization: Zhou

Hongpu

2. Balance sheet of the parent company

Unit: Yuan

projectClosing balanceOpening balance
Current assets
Monetary Funds94,397,236.2069,884,281.83
Trading financial assets0.000.00
Derivative financial assets0.000.00
Notes receivable0.000.00
accounts receivable4,665,706.264,843,552.76
Accounts receivable financing0.000.00
Prepayments4,000.000.00
Other receivables1,841,982,042.161,880,427,908.13
Among them: Interest receivable0.000.00
Dividends receivable37,814,622.8824,222,722.88
inventory312,474.69312,474.69
Among them: data resources0.000.00
contract asset0.000.00
Assets held for sale0.000.00
Non-current assets maturing within one year0.000.00
Other current assets1,036,245.851,294,922.05
Total current assets1,942,397,705.161,956,763,139.46
Non-current assets:
debt investment0.000.00
Other debt investments0.000.00
Long-term receivables0.000.00
Long-term equity investment1,132,181,561.851,132,181,561.85
Other equity instrument investments14,571,511.8114,571,511.81
Other non-current financial assets0.000.00
Investment property375,585,756.47387,434,080.02
Fixed assets8,263,705.939,186,628.06
construction in progress0.00571,822.67
Productive biological assets0.000.00
oil and gas assets0.000.00
right-of-use asset0.000.00
intangible assets0.000.00
Among them: data resources0.000.00
development expenditure0.000.00
Among them: data resources0.000.00
goodwill0.000.00
Long-term deferred expenses2,454,374.611,209,606.83
Deferred tax assets469,690.210.00
Other non-current assets0.000.00
Total non-current assets1,533,526,600.881,545,155,211.24
Total Assets3,475,924,306.043,501,918,350.70
Current liabilities
short-term borrowing0.000.00
Trading financial liabilities0.000.00
Derivative financial liabilities0.000.00
Notes Payable0.000.00
accounts payable4,756,898.726,692,455.48
Advance receipts110,143.000.00
Contract liabilities2,255,023.4194,227.61
Payroll payable22,241,925.8321,771,697.06
Taxes payable4,466,019.011,161,124.78
Other payables115,732,752.35142,790,324.11
Among them: interest payable16,535,277.9416,535,277.94
Dividends payable0.000.00
Liabilities held for sale0.000.00
Non-current liabilities maturing within one year0.000.00
Other current liabilities5.594,711.39
Total current liabilities149,562,767.91172,514,540.43
Non-current liabilities:
long-term loans0.000.00
Bonds payable0.000.00
Among them: preferred stock0.000.00
perpetual bond0.000.00
lease liability0.000.00
Long-term payables0.000.00
Long-term payroll payable0.000.00
provisions0.000.00
Deferred revenue0.000.00
Deferred tax liabilities1,337,604.71867,914.50
Other non-current liabilities0.000.00
Total non-current liabilities1,337,604.71867,914.50
Total Liabilities150,900,372.62173,382,454.93
Owners' equity:
share capital1,011,660,000.001,011,660,000.00
Other equity instruments0.000.00
Among them: preferred stock0.000.00
perpetual bond0.000.00
Capital Reserve964,711,931.13964,711,931.13
Less: Treasury Stock0.000.00
Other comprehensive income1,928,633.861,928,633.86
Special reserves0.000.00
Surplus reserve252,124,115.85252,124,115.85
Retained Earnings1,094,599,252.581,098,111,214.93
Total owner's equity3,325,023,933.423,328,535,895.77
Total liabilities and owner's equity3,475,924,306.043,501,918,350.70

3. Consolidated income statement

Unit: Yuan

projectHalf-yearly report of 2026Half-yearly in 2025
1. Total operating income149,256,953.04637,366,221.35
Among them: Operating income149,256,953.04637,366,221.35
interest income
Earned Premium0.000.00
Service fee and commission income0.000.00
II. Total operating costs165,056,813.62522,377,406.04
Among them: Operating costs123,812,714.67463,717,990.62
Interest expense0.000.00
Service fee and commission expense0.000.00
Surrender value0.000.00
Net compensation expenditure0.000.00
Net amount of insurance liability reserve0.000.00
Policy dividend expenses0.000.00
Reinsurance premium0.000.00
Taxes and Surcharges7,395,017.3315,562,007.88
sales expenses6,366,066.939,708,711.93
administrative expenses27,112,672.7632,175,388.99
R&D expenses0.000.00
financial expenses370,341.931,213,306.62
Among them: Interest expense0.002,788,711.79
interest income925,667.622,154,378.05
Plus: Other income54,026.6431,652.46
Investment income (loss indicated with "-" )66,265.2399,669.36
Including: Investment income from associated enterprises and joint ventures0.000.00
Gain on derecognition of financial assets measured at amortized cost0.000.00
Exchange gains (losses are indicated by a "-" sign)0.000.00
Net open hedge gains (losses areindicated by a "-" sign)0.000.00
Income from changes in fair value (loss is indicated by a "-" sign)7,069,256.298,662,388.50
Credit impairment loss (loss is indicated by a "-" sign)554,041.03-77,782.93
Asset impairment loss (loss is indicated by a "-" sign)0.00-15,230.21
Gains from asset disposal (losses are indicated by a "-" sign)357.100.00
III. Operating profit (loss indicated with a "-" sign)-8,055,914.29123,689,512.49
Plus: Non-operating income491.2720,130.74
Less: Non-operating expenses1,744.291,634.14
IV. Total profit (total loss indicated with a "-" sign)-8,057,167.31123,708,009.09
Less: Income tax expense950,501.4521,496,138.68
V. Net profit (net loss indicated with "-")-9,007,668.76102,211,870.41
(1) Classification based on business continuity
1. Net profit from continuing operations (net loss indicated with a "-")-9,007,668.76102,211,870.41
2. Net profit from discontinued operations (net loss indicated with a "-" sign)0.000.00
(II) Classification by ownership
1. Net profit attributable to shareholders of the parent company (net loss indicated with a "-" sign)-8,560,110.26103,027,646.42
2. Minority shareholders' profit and loss (net loss indicated with a "-" sign)-447,558.50-815,776.01
VI. Net amount after tax of other comprehensive income7,765,576.096,797,849.82
Net amount of other comprehensive income after tax attributable to owners of the parent company6,102,524.376,368,897.45
(1) Other comprehensive income that cannot be reclassified into profit and loss-2,841,991.42241,517.87
1. Remeasure the change amount of the defined benefit plan0.000.00
2. Other comprehensive income that cannot be transferred to profit and loss under the equity method0.000.00
3. Changes in fair value of other equity instrument investments-2,841,991.42241,517.87
4. Changes in fair value of enterprise's own credit risk0.000.00
5. Others0.000.00
(II) Other comprehensive income reclassified into profit and loss8,944,515.796,127,379.58
1. Other comprehensive income that can be transferred to profit and loss under the equity method0.000.00
2. Changes in fair value of otherdebt investments0.000.00
3. Amount of financial assets reclassified and recorded in other comprehensive income0.000.00
4. Provision for credit impairment of other debt investments0.000.00
5. Cash flow hedging reserve0.000.00
6. Translation differences in foreign currency financial statements8,944,515.796,127,379.58
7. Others0.000.00
Net amount of other comprehensive income attributable to minority shareholders after tax1,663,051.72428,952.37
VII. Total comprehensive income-1,242,092.67109,009,720.23
Total comprehensive income attributable to owners of the parent company-2,457,585.89109,396,543.87
Total comprehensive income attributable to minority shareholders1,215,493.22-386,823.64
8. Earnings per share:
(I) Basic earnings per share-0.00850.1018
(II) Diluted earnings per share-0.00850.1018

For the business combination under the same control in this period, the net profit realized by the combined party before the combination is: 0.00 yuan, and the net profit realized by the combined party in the previous period is: 0.00 yuan. Legal Representative: Chen Ming; Person in Charge of Accounting Work: Wang Jianfei; Head of Accounting Organization: Zhou Hongpu

4. Income statement of the parent company

Unit: Yuan

projectHalf-yearly report of 2026Half-yearly in 2025
1. Operating income27,666,413.3323,097,217.24
Less: Operating costs16,614,407.1015,530,601.07
Taxes and Surcharges5,165,372.077,010,315.64
sales expenses1,678,549.841,752,440.34
administrative expenses21,302,074.6318,361,484.35
R&D expenses0.000.00
financial expenses1,127,730.782,423,621.13
Among them: interest expenses0.002,414,263.08
interest income102,806.10507,352.13
Plus: Other income51,104.0428,158.18
Investment income (loss indicated with "-")50,066,265.2399,669.36
Including: Investment income from associated enterprises and joint ventures0.000.00
Gain on derecognition of financial assets measured at amortized cost (loss is indicated by a "-" sign)0.000.00
Net open hedge gains (losses areindicated by a "-" sign)0.000.00
Income from changes in fair value (loss is indicated by a "-" sign)0.008,662,388.50
Credit impairment loss (loss is indicated by a "-" sign)0.000.00
Asset impairment losses (losses are indicated by a "-" sign)0.000.00
Gains from asset disposal (losses are indicated by a "-" sign)0.000.00
II. Operating profit (loss indicated with "-")31,895,648.18-13,191,029.25
Plus: Non-operating income489.478,398.00
Less: Non-operating expenses0.0032.50
III. Total profit (total loss indicated with a "-" sign)31,896,137.65-13,182,663.75
Less: Income tax expense0.000.00
IV. Net profit (net loss indicated with a "-" sign)31,896,137.65-13,182,663.75
(I) Net profit from continuing operations (net loss indicated with a "-" sign)31,896,137.65-13,182,663.75
(II) Net profit from discontinued operations (net loss indicated with a "-" sign)
V. Net amount after tax of other comprehensive income0.000.00
(1) Other comprehensive income that cannot be reclassified into profit and loss0.000.00
1. Remeasure the change amount of the defined benefit plan0.000.00
2. Other comprehensive income that cannot be transferred to profit and loss under the equity method0.000.00
3. Changes in fair value of other equity instrument investments0.000.00
4. Changes in fair value of enterprise's own credit risk0.000.00
5. Others0.000.00
(II) Other comprehensive income reclassified into profit and loss
1. Other comprehensive income that can be transferred to profit and loss under the equity method0.000.00
2. Changes in fair value of other debt investments0.000.00
3. Amount of financial assets reclassified and recorded in other comprehensive income0.000.00
4. Provision for credit impairment of other debt investments0.000.00
5. Cash flow hedging reserve0.000.00
6. Translation differences in foreign currency financial statements0.000.00
7. Others0.000.00
VI. Total comprehensive income31,896,137.65-13,182,663.75
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share

5. Consolidated cash flow statement

Unit: Yuan

projectHalf-yearly report for 2026Half-yearly in 2025
I. Cash flows from operating activities:
Cash received from selling goods and providing services149,907,409.47107,961,865.12
Net increase in customer deposits and interbank deposits0.000.00
Net increase in borrowings from the central bank0.000.00
Net increase in funds borrowed from other financial institutions0.000.00
Cash received from premiums of original insurance contracts0.000.00
Net cash received from reinsurance business0.000.00
Net increase in policyholder deposits and investment funds0.000.00
Cash collected from interest, handling fees, and commissions0.000.00
Net increase in interbank borrowing0.000.00
Net increase in funds for repurchase business0.000.00
Net cash received from securities trading as an agent0.000.00
Tax refund received13,450,960.2814,257,792.80
Received other cash related to operating activities18,815,550.68120,662,833.73
Subtotal of cash inflows from operating activities182,173,920.43242,882,491.65
Cash paid for purchasing goods and receiving services84,617,506.2479,091,286.46
Net increase in loans and advances to customers0.000.00
Net increase in deposits with central bank and interbank deposits0.000.00
Cash paid for compensation under the original insurance contract0.000.00
Net increase in funds lent out0.000.00
Cash paid for interest, fees, and commissions0.000.00
Cash paid for policy dividends0.000.00
Cash paid to and for employees30,986,998.7131,933,948.07
Various taxes and fees paid23,973,777.8665,156,436.59
Cash paid for other activities related to17,648,538.14154,123,062.11
operating activities
Subtotal of cash outflows from operating activities157,226,820.95330,304,733.23
Net cash flow from operating activities24,947,099.48-87,422,241.58
II. Cash flows from investing activities:
Cash received from investment recovery0.000.00
Cash received from investment income66,265.2399,669.36
Net cash received from disposal of fixed assets, intangible assets and other long-term assets0.000.00
Net cash received from the disposal of subsidiaries and other business units0.000.00
Received other cash related to investing activities0.000.00
Subtotal of cash inflows from investing activities66,265.2399,669.36
Cash paid for the acquisition and construction of fixed assets, intangible assets, and other long-term assets38,267.6675,475.40
Cash paid for investment0.000.00
Net increase in pledge loans0.000.00
Net cash paid to acquire subsidiaries and other business entities0.000.00
Cash paid for other activities related to investment0.00110,000,000.00
Subtotal of cash outflows from investing activities38,267.66110,075,475.40
Net cash flow from investing activities27,997.57-109,975,806.04
III. Cash flows from financing activities:
Cash received from investment absorption0.000.00
Including: cash received from investments by minority shareholders in subsidiaries0.000.00
Cash received from loan acquisition0.000.00
Received other cash related to financing activities0.000.00
Subtotal of cash inflows from financing activities0.000.00
Cash paid for debt repayment0.0033,500,586.60
Cash paid for distributing dividends, profits, or servicing interest35,408,100.001,448,749.44
Including: dividends and profits paid by subsidiaries to minority shareholders0.000.00
Cash paid for other financing-related activities0.000.00
Subtotal cash outflows from financing activities35,408,100.0034,949,336.04
Net cash flow from financing activities-35,408,100.00-34,949,336.04
IV. Impact of exchange rate changes on cash and cash equivalents-148,030.43-63,892.72
V. Net increase in cash and cash equivalents-10,581,033.38-232,411,276.38
Plus: Balance of cash and cash278,891,920.87520,910,254.44
equivalents at the beginning of the period
VI. Closing balance of cash and cash equivalents268,310,887.49288,498,978.06

6. Cash flow statement of the parent company

Unit: Yuan

projectHalf-yearly report of 2026Half-yearly in 2025
I. Cash flows from operating activities:
Cash received from selling goods and providing services32,489,773.1727,636,940.85
Tax refund received54,086.1631,866.46
Received other cash related to operating activities22,010,845.69122,029,488.61
Subtotal of cash inflows from operating activities54,554,705.02149,698,295.92
Cash paid for purchasing goods and receiving services514,055.95193,118.60
Cash paid to and for employees19,473,806.7617,111,206.32
Various taxes and fees paid3,685,647.806,276,383.28
Cash paid for other activities related to operating activities6,793,060.6734,259,333.81
Subtotal of cash outflows from operating activities30,466,571.1857,840,042.01
Net cash flow from operating activities24,088,133.8491,858,253.91
II. Cash flows from investing activities:
Cash received from investment recovery0.005,000,000.00
Cash received from investment income66,265.2399,669.36
Net cash received from disposal of fixed assets, intangible assets, and other long-term assets0.000.00
Net cash received from the disposal of subsidiaries and other business units0.000.00
Received other cash related to investing activities36,408,100.000.00
Subtotal of cash inflows from investing activities36,474,365.235,099,669.36
Cash paid for the acquisition and construction of fixed assets, intangible assets, and other long-term assets641,444.706,884.96
Cash paid for investment0.000.00
Net cash paid to acquire subsidiaries and other business entities0.000.00
Cash paid for other activities related to investment0.00110,000,000.00
Subtotal of cash outflows from investing activities641,444.70110,006,884.96
Net cash flow from investing activities35,832,920.53-104,907,215.60
III. Cash flows from financing activities:
Cash received from investment absorption0.000.00
Cash received from loan acquisition0.000.00
Received other cash related to financing activities0.000.00
Subtotal cash inflows from financing activities0.000.00
Cash paid for debt repayment0.0062,586.60
Cash paid for distributing dividends, profits, or servicing interest35,408,100.001,032,614.31
Cash paid for other financing-related activities0.000.00
Subtotal cash outflows from financing activities35,408,100.001,095,200.91
Net cash flow from financing activities-35,408,100.00-1,095,200.91
IV. Impact of exchange rate changes on cash and cash equivalents0.000.00
V. Net increase in cash and cash equivalents24,512,954.37-14,144,162.60
Plus: Balance of cash and cash equivalents at the beginning of the period69,884,281.8381,754,926.52
VI. Closing balance of cash and cash equivalents94,397,236.2067,610,763.92

7. Consolidated statement of changes in equity

Current Amount

Unit: Yuan

projectHalf-yearly report for 2026
Owners' equity attributable to the parent companyMinority shareholders' equityTotal owner's equity
share capitalOther equity instrumentsCapital ReserveLess: Treasury StockOther comprehensive incomeSpecial reservesSurplus reserveGeneral risk provisionsRetained EarningsOtherSubtotal
prefer red stockperpetual bondOther
1. Ending balance of the previous year1,011,660,000.00978,244,910.1123,315,115.52275,253,729.261,323,849,441.490.003,612,323,196.38-142,843,997.183,469,479,199.20
Plus: Changes in accounting policies
Correction of prior period errors
Other
II. Opening balance of the current year1,011,660,000.000.000.000.00978,244,910.110.0023,315,115.520.00275,253,729.260.001,323,849,441.493,612,323,196.38-142,843,997.183,469,479,199.20
III. Changes in Amount for the Current Period (Decreases are indicated by a "-" sign)0.000.000.000.000.000.006,102,524.370.000.000.00-43,968,210.26-37,865,685.891,215,493.22-36,650,192.67
(I) Total comprehensive income6,102,524.37-8,560,110.26-2,457,585.891,215,493.22-1,242,092.67
(II) Capital invested and reduced by owners0.000.000.00
1. Common stock invested by owners0.000.00
2. Capital invested by holders of other equity instruments0.000.00
3. Amount of share-based payments recognized in owners' equity0.000.00
4. Others0.000.000.00
(III) Profit distribution-35,408,100.00-35,408,100.00-35,408,100.00
1. Withdrawal of surplus reserves0.000.00
2. Withdrawal of general risk provisions0.000.00
3. Distribution to owners (or shareholders)-35,408,100.00-35,408,100.00-35,408,100.00
4. Others0.000.00
(IV) Internal transfer of owner's equity0.000.00
1. Capital reserves converted into capital (or share capital)0.000.00
2. Conversion of surplus reserves into capital (or share capital)0.000.00
3. Surplus reserves used to cover losses0.000.00
4. Carry forward the change amount of the defined benefit plan to retained earnings0.000.00
5. Transfer of other comprehensive income to retained earnings0.000.00
6. Others0.000.00
(V) Special reserves0.000.00
1. Current period withdrawal0.000.00
2. Current use0.000.00
(VI) Others0.000.000.00
IV. Closing balance of the current period1,011,660,000.000.000.000.00978,244,910.110.0029,417,639.890.00275,253,729.260.001,279,881,231.233,574,457,510.49-141,628,503.963,432,829,006.53

Last year's amount Unit: Yuan

projectHalf-yearly in 2025
Owners' equity attributable to the parent companyMinority shareholders' equityTotal owner's equity
share capitalOther equity instrumentsCapital ReserveLess: Treasury StockOther comprehensive incomeSpecial reservesSurplus reserveGeneral risk provisionRetained EarningsOtherSubtotal
preferred stockperpetual bondOther
1. Ending balance of the previous year1,011,660,000.00978,244,910.1123,060,416.31275,253,729.261,223,893,437.743,512,112,493.42-116,725,425.753,395,387,067.67
Plus: Changes in accounting policies
Correction of prior period errors
Other
II. Opening balance of the current year1,011,660,000.000.000.000.00978,244,910.110.0023,060,416.310.00275,253,729.260.001,223,893,437.743,512,112,493.42-116,725,425.753,395,387,067.67
III. Amount of increase or decrease in the current0.000.000.000.000.000.006,368,897.450.000.000.00103,027,646.42109,396,543.87-386,823.64109,009,720.23
period (decrease is indicated by a "-" sign)
(I) Total comprehensive income6,368,897.45103,027,646.42109,396,543.87-386,823.64
(II) Capital invested and reduced by owners0.00
1. Common stock invested by owners0.00
2. Capital invested by holders of other equity instruments0.00
3. Amount of share-based payments recognized in owners' equity0.00
4. Others0.00
(III) Profit distribution0.00
1. Withdrawal of surplus reserves0.00
2. Withdrawal of general risk provisions0.00
3. Distribution to owners (or shareholders)0.00
4. Others0.00
(IV) Internal transfer of owner's equity0.00
1. Capital reserves converted into capital (or share0.00
capital)
2. Surplus reserves converted into capital (or share capital)0.000.00
3. Surplus reserves used to cover losses0.000.00
4. Carry forward the change amount of the defined benefit plan to retained earnings0.000.00
5. Transfer of other comprehensive income to retained earnings0.000.00
6. Others0.000.00
(V) Special reserves0.000.00
1. Withdrawal in current period0.000.00
2. Current use0.000.00
(VI) Others0.000.00
IV. Closing balance of the current period1,011,660,000.000.000.000.00978,244,910.110.0029,429,313.760.00275,253,729.260.001,326,921,084.163,621,509,037.29-117,112,249.393,504,396,787.90

8. Statement of Changes in Equity of the Parent Company

Current Amount

Unit: Yuan

projectHalf-yearly report for 2026
share capitalOther equity instrumentsCapital ReserveLess: Treasury StockOther comprehensive incomeSpecial reservesSurplus reserveRetained EarningsOtherTotal owner's equity
prefer red stockperpetual bondOther
1. Ending balance of the previous year1,011,660,000.00964,711,931.131,928,633.86252,124,115.851,098,111,214.933,328,535,895.77
Plus: Changes in accounting policies
Correction of prior period errors
Other
II. Opening balance of the current year1,011,660,000.000.000.000.00964,711,931.130.001,928,633.860.00252,124,115.851,098,111,214.930.003,328,535,895.77
III. Changes in Amount for the Current Period (Decreases are indicated by a "-" sign)0.000.000.000.000.000.000.000.000.00-3,511,962.350.00-3,511,962.35
(I) Total comprehensive income0.0031,896,137.6531,896,137.65
(II) Capital invested and reduced by owners0.00
1. Common stock invested by owners0.00
2. Capital contributed by holders of other equity instruments0.00
3. Amount of share-based payments recognized in owners' equity0.00
4. Others0.00
(III) Profit distribution-35,408,100.00-35,408,100.00
1. Withdrawal of surplus reserves0.00
2. Distribution to owners (or shareholders)-35,408,100.00-35,408,100.00
3. Others0.00
(IV) Internal transfer of owner's equity0.00
1. Capital reserves converted into capital (or share capital)0.00
2. Surplus reserves converted into capital (or share capital)0.00
3. Surplus reserves used to cover losses0.00
4. Carry forward the change amount of the defined benefit plan to retained earnings0.00
5. Transfer of other comprehensive income to retained earnings0.00
6. Others0.00
(V) Special reserves0.00
1. Withdrawal for the current period0.00
2. Use in this period0.00
(VI) Others0.00
IV. Closing balance of the current period1,011,660,000.000.000.000.00964,711,931.130.001,928,633.860.00252,124,115.851,094,599,252.580.003,325,023,933.42

Last year's amount Unit: Yuan

projectHalf-yearly report for 2025
share capitalOther equity instrumentsCapital ReserveLess: Treasury StockOther comprehensive incomeSpecial reservesSurplus reserveRetained EarningsOtherTotal owner's equity
prefer red stockperpetual bondOther
1. Ending balance of the previous year1,011,660,000.00964,711,931.132,023,005.89252,124,115.851,237,671,562.023,468,190,614.89
Plus: Changes in accounting policies
Correction of prior period errors
Other
II. Opening balance of the current year1,011,660,000.000.000.000.00964,711,931.130.002,023,005.890.00252,124,115.851,237,671,562.020.003,468,190,614.89
III. Changes in Amount for the Current Period (Decreases are indicated by a "-" sign)0.000.000.000.000.000.000.000.000.00-13,182,663.750.00-13,182,663.75
(I) Total comprehensive income0.00-13,182,663.75-13,182,663.75
(II) Capital invested and reduced by owners0.00
1. Common stock invested by owners0.00
2. Capital invested by holders of other equity instruments0.00
3. Amount of share-based payments recorded in owners' equity0.00
4. Others0.00
(III) Profit distribution0.00
1. Withdrawal of surplus reserves0.00
2. Distribution to owners (or shareholders)0.00
3. Others0.00
(IV) Internal transfer of owner's equity0.00
1. Capital reserves converted into capital (or share capital)0.00
2. Conversion of surplus reserves into capital (or share capital)0.00
3. Surplus reserves used to cover losses0.00
4. Carry forward the change amount of the defined benefit plan to retained earnings0.00
5. Transfer of othercomprehensive income to retained earnings0.00
6. Others0.00
(V) Special reserves0.00
1. Withdrawal in this period0.00
2. Current period usage0.00
(VI) Others0.00
IV. Closing balance of the current period1,011,660,000.000.000.000.00964,711,931.130.002,023,005.890.00252,124,115.851,224,488,898.270.003,455,007,951.14

III. Basic Information of the Company

Shenzhen Special Economic Zone Real Estate (Group) Co., Ltd. (hereinafter referred to as the "Company" or "our company") was established as a joint stock limited company through restructuring on the basis of the former Shenzhen Special Economic Zone Real Estate Corporation, with the approval of the General Office of the People's Government of Shenzhen Municipality. It was registered with the Administration for Industry and Commerce of Shenzhen, Guangdong Province, in July 1993, and its headquarters is located in Shenzhen, Guangdong Province. The company's unified social credit code is 91440300192179585N, with a registered capital of 1,011,660,000.00 yuan and a total of 1,011,660,000 shares (with a par value of 1 yuan per share). Among them, there are 891,660,000 A shares and 120,000,000 B shares that are tradable without restrictions on sales. The company's shares were listed and traded on the Shenzhen Stock Exchange on September 15, 1993 and January 10, 1994, respectively.

Our company is in the real estate industry. Our main business activities include real estate development and sales of commercial housing, property leasing and management, retail and trade of goods, hotel business, equipment installation and maintenance, construction, interior decoration, and other related businesses.

This financial statement has been approved for external release by the second meeting of the ninth session of the board of directors on August 25, 2026.

IV. Basis for Preparing Financial Statements

1. Basis of preparation

The financial statements of our company are prepared on a going concern basis.

2. Continuous operation

Our company does not have any matters or circumstances that may cast significant doubt on its ability to continue as a going concern within 12 months from the end of the reporting period.

V. Significant accounting policies and accounting estimates

Specific accounting policies and accounting estimates tips:

Important Note: The Company has formulated specific accounting policies and estimates for transactions or events such as impairment of financial instruments, inventories, depreciation of fixed assets, construction in progress, intangible assets, and revenue recognition, based on its actual production and operation characteristics.

1. Statement of compliance with enterprise accounting standards

The financial statements prepared by our company comply with the requirements of enterprise accounting standards, and they truly and comprehensively reflect the company's financial position, operating results, cash flows, and other relevant information.

2. Accounting period

The accounting year begins on January 1st and ends on December 31st according to the Gregorian calendar.

3. Operating cycle

The operating cycle of the company's business operations is relatively short, with 12 months serving as the liquidity classification standard for assets and liabilities. The operating cycle of the real estate industry, from property development to sales realization, is generally over 12 months, with the specific cycle determined based on the development project situation, and its operating cycle is used as the liquidity classification standard for assets and liabilities.

4. Bookkeeping base currency

The Renminbi (RMB) is adopted as the functional currency. Both the Company and its overseas subsidiary in Hong Kong use RMB as the functional currency. The overseas subsidiary of Great Wall Real Estate Co., Ltd. in the United States, engaged in overseas operations, chooses the US dollar, the currency of the primary economic environment in which it operates, as its functional currency. The currency used by the Company in preparing these financial statements is RMB.

5. Method for determining importance criteria and basis for selection

Applicable □ Not applicable

projectImportance criteria
The recovery or reversal of significant bad debt reserves for bills receivableThe individual amount exceeds 0.5% of the total assets
Important written-off notes receivableThe individual amount exceeds 0.5% of the total asset value
Accounts receivable with significant individual provision for bad debtsThe individual amount exceeds 0.5% of the total assets
Recovery or reversal of significant bad debt reserves for accounts receivableThe individual amount exceeds 0.5% of the total assets
Important written-off accounts receivableThe individual amount exceeds 0.5% of the total asset value
Other receivables with significant individually assessed baddebt reservesThe individual amount exceeds 0.5% of the total assets
Reversal or recovery of bad debt reserves for significant other receivablesThe individual amount exceeds 0.5% of the total assets
Important write-off of other receivablesThe individual amount exceeds 0.5% of the total assets
Contract assets with significant individual impairment provisionThe individual amount exceeds 0.5% of the total assets
Recovery or reversal of impairment provision for significant contract assetsThe individual amount exceeds 0.5% of the total assets
Important written-off contract assetsThe individual amount exceeds 0.5% of the total assets
Significant changes in the book value of contract assetsThe amount of change exceeds 0.5% of the total asset value
Important prepayments with an aging of over 1 yearThe individual amount exceeds 0.5% of the total assets
Important projects under constructionThe total investment in a single project exceeds 0.5% of the total assets
Significant overdue loansThe individual amount exceeds 0.5% of the total assets
Significant overdue interest payableThe individual amount exceeds 0.5% of the total assets
Accounts payable with significant aging exceeding 1 yearThe individual amount exceeds 0.5% of the total assets
Other payables with significant aging exceeding 1 yearThe individual amount exceeds 0.5% of the total assets
Important advance receipts with an aging of over 1 year or overdueThe individual amount exceeds 0.5% of the total assets
Contract liabilities with significant aging exceeding 1 yearThe individual amount exceeds 0.5% of the total assets
Significant changes in the book value of contract liabilitiesThe amount of change exceeds 0.5% of the total asset value
Cash flow from significant investing activitiesThe individual amount exceeds 5% of the total assets
Important subsidiaries, non-wholly-owned subsidiariesThe total assets/revenue/profit exceed 15% of the group's total assets/revenue/profit
Important joint ventures and associated enterprisesThe book value of a single long-term equity investment exceeds 15% of the group's net assets, or the investment income accounted for using the equity method exceeds 15% of the group's total profit

6. Accounting treatment methods for business combinations under and not under common control

1. Accounting treatment method for business combinations under common control

The assets and liabilities acquired by the company in a business combination are measured at the carrying amount of the combined party in the final controlling party's consolidated financial statements on the combination date. The company adjusts the capital reserves based on the difference between the share of the carrying amount of the owner's equity of the combined party in the final controlling party's consolidated financial statements and the carrying amount of the consideration paid for the combination or the total par value of the shares issued. If the capital reserves are insufficient to offset, the retained earnings are adjusted.

2. Accounting treatment methods for business combinations not under common control

On the acquisition date, the company recognizes the difference between the merger cost and the fair value of the identifiable net assets obtained from the acquiree in the merger as goodwill. If the merger cost is less than the fair value of the identifiable net assets obtained from the acquiree in the merger, the fair values of all identifiable assets, liabilities, and contingent liabilities obtained from the acquiree, as well as the measurement of the merger cost, are first reviewed. If, after review, the merger cost is still less than the fair value of the identifiable net assets obtained from the acquiree in the merger, the difference is recognized in the current profit and loss.

6. Accounting treatment methods for business combinations under and not under common control

7. Criteria for control judgment and method for preparing consolidated financial statements

1. Judgment of control

If an entity possesses power over an investee, enjoys variable returns through participating in the relevant activities of the investee, and has the ability to use its power over the investee to affect the amount of its variable returns, it is deemed to have control.

2. Preparation method of consolidated financial statements

The parent company includes all its controlled subsidiaries in the consolidation scope of its consolidated financial statements. The consolidated financial statements are prepared by the parent company based on the financial statements of the parent company and its subsidiaries, as well as other relevant information, in accordance with the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements.

7. Criteria for control judgment and method for preparing consolidated financial statements

8. Classification of joint venture arrangements and accounting treatment methods for joint operations

1. Joint arrangements are classified into joint operations and joint ventures.

2. When the company is a joint venturer in a joint operation, the following items related to its share of interest in the joint operation shall be recognized:

(1) Confirm assets held individually, as well as assets held jointly based on the respective shares held;

(2) Confirm the liabilities solely assumed, as well as the liabilities jointly assumed based on the share held;

(3) Recognize the revenue generated from the share of joint operating output enjoyed by the selling company;

(4) Recognize the revenue generated from the sale of assets in joint operations based on the company's shareholding;

(5) Confirm the expenses incurred individually, as well as the expenses incurred in joint operations based on the company's shareholding.

7. Criteria for control judgment and method for preparing consolidated financial statements

8. Classification of joint venture arrangements and accounting treatment methods for joint operations

9. Criteria for determining cash and cash equivalents

The cash presented in the cash flow statement refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to investments held by the enterprise that have short terms, strong liquidity, are easily convertible into known amounts of cash, and have little risk of value change.

10. Foreign currency transactions and foreign currency statement translation

1. Translation of foreign currency transactions

Upon initial recognition, foreign currency transactions are translated into RMB amounts using the spot exchange rate on the transaction date. At the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. Exchange differences arising from different exchange rates, except for those related to the principal and interest of foreign currency borrowings specifically related to the acquisition and construction of assets eligible for capitalization, are recognized in the current profit and loss. Foreign currency non-monetary items measured at historical cost are still translated at the spot exchange rate on the transaction date, without changing their RMB amounts. Foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on the date when the fair value is determined, with any differences recognized in the current profit and loss or other comprehensive income.

2. Translation of foreign currency financial statements

The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date; all owner's equity items, except for the "undistributed profits" item, are translated at the spot exchange rate on the transaction date; the income and expense items in the income statement are translated at the approximate exchange rate of the spot exchange rate on the transaction date. The translation differences arising from the above translations of foreign currency financial statements are recorded in other comprehensive income.

11. Financial instruments

1. Classification of financial assets and financial liabilities

Financial assets are classified into the following three categories upon initial recognition: (1) financial assets measured at amortized cost; (2) financial assets measured at fair value with changes recognized in other comprehensive income; and (3) financial assets measured at fair value with changes recognized in current profit and loss.

Financial liabilities are classified into the following four categories upon initial recognition: (1) financial liabilities measured at fair value with changes recognized in current profit and loss; (2) financial liabilities arising from the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets; (3) financial guarantee contracts that do not fall under (1) or (2) above, as well as loan commitments that do not fall under (1) above and involve loans at below-market interest rates; (4) financial liabilities measured at amortized cost.

2. Recognition basis, measurement method, and derecognition conditions for financial assets and financial liabilities

(1) Recognition basis and initial measurement method of financial assets and financial liabilities

When a company becomes a party to a financial instrument contract, it recognizes a financial asset or financial liability. Upon initial recognition of a financial asset or financial liability, it is measured at fair value. For financial assets and financial liabilities measured at fair value with changes recognized in current profit and loss, the related transaction costs are directly included in current profit and loss. For other types of financial assets or financial liabilities, the related transaction costs are included in the initial recognition amount. However, if the accounts receivable initially recognized by the company do not contain significant financing components or the company does not consider the financing components in contracts that are not expected to exceed one year, the initial measurement is based on the transaction price as defined in "Accounting Standards for Business Enterprises No. 14 - Revenue".

(2) Subsequent measurement method for financial assets

1) Financial assets measured at amortized cost

The effective interest method is adopted for subsequent measurement at amortized cost. Gains or losses arising from financial assets measured at amortized cost and not part of any hedging relationship are recognized in the current period profit or loss when derecognized, reclassified, amortized using the effective interest method, or recognized as impaired.

2) Debt instrument investments measured at fair value with changes recognized in other comprehensive income

Subsequent measurement is conducted using fair value. Interest, impairment losses or gains, and exchange gains and losses calculated using the effective interest method are recognized in current profit and loss, while other gains or losses are recognized in other comprehensive income. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are transferred out of other comprehensive income and recognized in current profit and loss.

3) Equity instrument investments measured at fair value with changes recognized in other comprehensive income

Subsequent measurement is conducted using fair value. Dividends received (excluding those that are part of the recovery of investment costs) are recorded in the current period profit and loss, while other gains or losses are recorded in other comprehensive income. Upon derecognition, the cumulative gains or losses previously recorded in other comprehensive income are transferred out of other comprehensive income and recorded in retained earnings.

4) Financial assets measured at fair value with changes recognized in current profit and loss

Gains or losses (including interest and dividend income) arising from subsequent measurement using fair value are recognized in the current period profit and loss, unless the financial asset is part of a hedging relationship.

(3) Subsequent measurement method for financial liabilities

1) Financial liabilities measured at fair value with changes recognized in current profit and loss

Such financial liabilities include trading financial liabilities (including derivative instruments classified as financial liabilities) and financial liabilities designated to be measured at fair value with changes recognized in current profit and loss. Subsequent measurements of such financial liabilities are made at fair value. Changes in the fair value of financial liabilities designated to be measured at fair value with changes recognized in current profit and loss, which are attributable to changes in the company's own credit risk, are recorded in other comprehensive income, unless such treatment would create or amplify an accounting mismatch in profit and loss. Other gains or losses arising from such financial liabilities (including interest expenses and changes in fair value other than those attributable to changes in the company's own credit risk) are recognized in current profit and loss, unless the financial liability is part of a hedging relationship. Upon derecognition, the cumulative gains or losses previously recorded in other comprehensive income are transferred out of other comprehensive income and recognized in retained earnings.

2) The transfer of financial assets does not meet the conditions for derecognition or the financial liabilities formed by continuing involvement in the transferred financial assets

The measurement shall be conducted in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets".

3) Financial guarantee contracts that do not fall under 1) or 2) above, as well as loan commitments that do not fall under 1) above and involve loans at below-market interest rates

After initial recognition, subsequent measurement is conducted based on the higher of the following two amounts: ① the loss provision determined in accordance with the impairment provisions for financial instruments; ② the balance of the initially recognized amount after deducting the accumulated amortization determined in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue".

4) Financial liabilities measured at amortized cost

It is measured at amortized cost using the effective interest method. Gains or losses arising from financial liabilities that are measured at amortized cost and are not part of any hedging relationship are recognized in the current period profit or loss when derecognized and amortized using the effective interest method.

(4) De-recognition of financial assets and financial liabilities

1) When any of the following conditions is met, the recognition of financial assets shall be terminated:

① The contractual rights to receive cash flows from the financial asset have been terminated;

② The financial asset has been transferred, and the transfer satisfies the provisions of "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets" regarding the derecognition of financial assets.

2) When the current obligation of a financial liability (or part thereof) has been discharged, the financial liability (or the relevant part of the financial liability) shall be derecognized accordingly.

3. Basis for recognition and measurement method of financial asset transfers

If the company transfers almost all risks and rewards related to the ownership of financial assets, it shall derecognize the financial assets and separately recognize the rights and obligations arising from or retained in the transfer as assets or liabilities. If the company retains almost all risks and rewards related to the ownership of financial assets, it shall continue to recognize the transferred financial assets. If the company neither transfers nor retains almost all risks and rewards related to the ownership of financial assets, it shall handle it according to the following situations: (1) If the company does not retain control over the financial assets, it shall derecognize the financial assets and separately recognize the rights and obligations arising from or retained in the transfer as assets or liabilities; (2) If the company retains control over the financial assets, it shall recognize the relevant financial assets based on the degree of its continued involvement in the transferred financial assets and correspondingly recognize the relevant liabilities.

When the overall transfer of financial assets satisfies the conditions for derecognition, the difference between the following two amounts shall be included in the current profit and loss: (1) the book value of the transferred financial assets on the derecognition date; (2) the sum of the consideration received from the transfer of financial assets and the amount corresponding to the derecognized portion of the cumulative change in fair value originally recognized directly in other comprehensive income (involving the transferred financial assets being debt instrument investments measured at fair value with changes recognized in other comprehensive income). When a portion of the financial assets is transferred and the transferred portion as a whole satisfies the conditions for derecognition, the book value of the entire financial assets before transfer shall be apportioned between the derecognized portion and the portion that continues to be recognized, based on their respective relative fair values on the transfer date, and the difference between the following two amounts shall be included in the current profit and loss: (1) the book value of the derecognized portion; (2) the sum of the consideration for the derecognized portion and the amount corresponding to the derecognized portion of the cumulative change in fair value originally recognized directly in other comprehensive income (involving the transferred financial assets being debt instrument investments measured at fair value with changes recognized in other comprehensive income).

4. Method for determining the fair value of financial assets and financial liabilities

The company determines the fair value of relevant financial assets and financial liabilities using valuation techniques that are applicable under the current circumstances and supported by sufficient available data and other information. The company categorizes the input values used in valuation techniques into the following levels and uses them in order:

(1) The first level input value refers to the unadjusted quoted price of the same asset or liability that can be obtained in the active market on the measurement date;

(2) The second level of input values refers to the directly or indirectly observable input values of related assets or liabilities other than those at the first level, including: quotations of similar assets or liabilities in an active market; quotations of identical or similar assets or liabilities in a non-active market; other observable input values other than quotations, such as observable interest rates and yield curves during normal quotation intervals; market-validated input values, etc;

(3) The third level of input values refers to the unobservable input values of related assets or liabilities, including interest rates, stock volatility, future cash flows of disposal obligations assumed in business combinations, and financial forecasts made using proprietary data, which cannot be directly observed or verified by observable market data.

5. Impairment of financial instruments

Based on expected credit losses, the company performs impairment testing and recognizes loss provisions for financial assets measured at amortized cost, debt instrument investments measured at fair value with changes recognized in other comprehensive income, contract assets, lease receivables, loan commitments not classified as financial liabilities measured at fair value with changes recognized in current profit and loss, and financial guarantee contracts that are not financial liabilities measured at fair value with changes recognized in current profit and loss or financial liabilities arising from the transfer of financial assets that do not meet the conditions for derecognition or continue to involve the transferred financial assets.

Expected credit losses refer to the weighted average of credit losses on financial instruments, with the risk of default as the weight. Credit losses refer to the difference between all contractual cash flows receivable under the contract, discounted at the original effective interest rate, and all expected cash flows received, representing the present value of all cash shortages. For financial assets that the company has purchased or originated and have experienced credit impairment, they are discounted at the credit-adjusted effective interest rate of the financial asset.

For financial assets that have undergone credit impairment, whether acquired or originated internally, the company recognizes only the cumulative change in expected credit losses over the entire duration since initial recognition as a loss provision on the balance sheet date.

For lease receivables, receivables formed by transactions regulated by "Accounting Standards for Business Enterprises No. 14 - Revenue", and contract assets, the company applies a simplified measurement method to measure the loss provision at an amount equivalent to the expected credit losses over the entire duration.

For financial assets other than those measured using the aforementioned methods, the company assesses whether their credit risk has significantly increased since initial recognition on each balance sheet date. If the credit risk has significantly increased since initial recognition, the company measures the loss provision based on the amount of expected credit losses over the entire duration. If the credit risk has not significantly increased since initial recognition, the company measures the loss provision based on the amount of expected credit losses for the financial instrument within the next 12 months.

The company utilizes available reasonable and well-founded information, including forward-looking information, to compare the risk of default of financial instruments at the balance sheet date with the risk of default at the initial recognition date, in order to determine whether the credit risk of financial instruments has significantly increased since initial recognition.

As of the balance sheet date, if the company determines that a financial instrument carries only a relatively low credit risk, it is assumed that the credit risk of that financial instrument has not significantly increased since its initial recognition.

The company assesses expected credit risk and measures expected credit losses based on individual financial instruments or combinations of financial instruments. When assessing based on combinations of financial instruments, the company categorizes the financial instruments into different combinations based on common risk characteristics.

The company re-measures expected credit losses on each balance sheet date. The increase or reversal amount of the resulting loss provision is recognized as impairment loss or gain in the current profit and loss. For financial assets measured at amortized cost, the loss provision offsets the carrying amount of the financial asset presented in the balance sheet. For debt investments measured at fair value with changes recognized in other comprehensive income, the company recognizes its loss provision in other comprehensive income and does not offset the carrying amount of the financial asset.

6. Offset of financial assets and financial liabilities

Financial assets and financial liabilities are presented separately on the balance sheet and are not offset against each other. However, if both of the following conditions are met, the company presents the net amount after offsetting on the balance sheet: (1) the company has the legal right to offset the recognized amount, and this legal right is currently enforceable; (2) the company intends to settle on a net basis, or simultaneously liquidate the financial asset and settle the financial liability.

For transfers of financial assets that do not meet the conditions for derecognition, the company does not offset the transferred financial assets and related liabilities.

12. Recognition criteria and provisioning methods for expected credit losses of receivables and contract assets

1. Accounts receivable and contract assets with expected credit losses calculated and withdrawn based on combinations of credit risk characteristics

Combination CategoryThe basis for determining the combinationMethod for measuring expected credit losses
Receivable bank acceptance billDocument TypeBased on historical credit loss experience, current conditions, and predictions of future economic conditions, the expected credit loss is calculated through the exposure at default and the expected credit loss rate over the entire duration
Commercial acceptance bill receivable
Accounts receivable - portfolio of related parties within the consolidation scopeNature of PaymentBased on historical credit loss experience, combined with current conditions and predictions of future economic conditions, the expected credit loss is calculated through the exposure at default and the expected credit loss rate over the entire duration
Accounts receivable - portfolio of property sales receivablesNature of Payment
Accounts receivable - construction portfolioNature of Payment
Accounts receivable - receivable from other customer portfoliosNature of Payment
Other receivables - portfolio of receivables from government departmentsNature of PaymentBy referencing historical credit loss experience, combining current conditions with predictions of future economic conditions, and using exposure at default and expected credit loss rates within the next 12 months or throughout the entire duration, the expected credit loss can be calculated
Other receivables - employee petty cash portfolioNature of Payment
Other receivables - portfolio of receivables for collection and paymentNature of Payment
Other receivables - portfolio of amounts due from related partiesNature of Payment
Other receivables - portfolio of other current accounts receivableNature of Payment
Contract assets - real estate sales portfolioNature of PaymentBased on historical credit loss experience, current conditions, and forecasts of future economic conditions, the expected credit loss is calculated through the exposure at default and the expected credit loss rate over the entire duration
Contract assets - engineering construction portfolioNature of Payment

2. Recognition criteria for accounts receivable and contract assets with expected credit losses calculated on an individual basis For accounts receivable and contract assets with significant differences in credit risk and portfolio credit risk, the company accrues expected credit losses on an individual basis.

2. Recognition criteria for accounts receivable and contract assets with expected credit losses calculated on an individual basis For accounts receivable and contract assets with significant differences in credit risk and portfolio credit risk, the company accrues expected credit losses on an individual basis.

6. Offset of financial assets and financial liabilities Financial assets and financial liabilities are presented separately on the balance sheet and are not offset against each other. However, if both of the following conditions are met, the company presents the net amount after offsetting on the balance sheet: (1) the company has the legal right to offset the recognized amount, and this legal right is currently enforceable; (2) the company intends to settle on a net basis, or simultaneously liquidate the financial asset and settle the financial liability. For transfers of financial assets that do not meet the conditions for derecognition, the company does not offset the transferred financial assets and related liabilities.

12. Recognition criteria and provisioning methods for expected credit losses of receivables and contract assets

13. Inventory

1. Classification of inventory

Inventories include land held for development, development products, development products temporarily leased with the intention of selling, and development costs incurred during the development process.

2. Pricing method for issued inventory

(1) The specific identification method is adopted for the issued materials and equipment.

(2) During project development, the land used for development is allocated and included in the project's development costs based on the floor area of the development product and the differential coefficient of the occupied land parcel.

(3) The cost of the developed products is allocated using the cost coefficient method.

(4) Development products and turnover housing that are temporarily rented with the intention of sale shall be amortized evenly over the expected useful life of similar fixed assets of the company.

(5) If the public supporting facilities are completed earlier than the relevant development products, after the completion and final settlement of the public supporting facilities, the development costs shall be allocated and included in the relevant development projects according to the construction area of the relevant development projects. If the public supporting facilities are completed later than the relevant development products, the relevant development products shall first accrue the public supporting facility fees, and after the completion and final settlement of the public supporting facilities, the costs of the relevant development products shall be adjusted based on the difference between the actual amount and the accrued amount.

3. Inventory system for stock

The inventory system for goods is the perpetual inventory system.

4. Amortization method for low-value consumables and packaging materials

(1) Low-value consumables

Amortization is carried out in installments based on the number of times it is used.

(2) Packaging materials

Amortization is carried out in installments based on the number of uses.

5. Inventory falling price reserves

On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory falling price reserves are accrued based on the difference between the cost and the net realizable value. For inventories directly intended for sale, their net realizable value is determined by subtracting estimated selling expenses and related taxes from the estimated selling price of the inventory in the normal course of production and operation. For inventories that require processing, their net realizable value is determined by subtracting estimated costs to be incurred until completion, estimated selling expenses, and related taxes from the estimated selling price of the finished product produced in the normal course of production and operation. On the balance sheet date, if part of the same inventory has a contract price and the other part does not, their net realizable values are determined separately, and compared with their corresponding costs to separately determine the amount of inventory falling price reserves accrued or reversed.

14. Long-term equity investment

1. Judgment of joint control and significant influence

Joint control is recognized when there is shared control over an arrangement in accordance with relevant agreements, and decisions related to the arrangement's activities must be unanimously agreed upon by the parties sharing control rights. Significant influence is recognized when there is the power to participate in the decision-making process regarding the financial and operating policies of the investee, but not the ability to control or jointly control the formulation of these policies with other parties.

2. Determination of investment cost

(1) For business combinations under common control, where the acquirer pays cash, transfers non-cash assets, incurs liabilities, or issues equity securities as the consideration for the combination, the initial investment cost is determined on the combination date based on the share of the book value of the owner's equity of the acquiree in the consolidated financial statements of the ultimate controlling party. The difference between the initial investment cost of the long-term equity investment and the book value of the consideration paid or the total par value of the shares issued is adjusted to capital reserves. If the capital reserves are insufficient to offset, the retained earnings are adjusted.

The company realizes long-term equity investments through multiple transactions, step by step, under the same control in business combinations, and determines whether it is a "package deal". If it is a "package deal", all transactions are accounted for as one transaction to obtain control. If it is not a "package deal", on the merger date, the initial investment cost is determined based on the share of the book value of the net assets of the merged party in the consolidated financial statements of the ultimate controlling party after the merger. On the merger date, the difference between the initial investment cost of the long-term equity investment and the sum of the book value of the long-term equity investment before the merger and the book value of the newly paid consideration for further acquisition of shares on the merger date is adjusted to the capital reserve. If the capital reserve is insufficient to offset, the retained earnings are adjusted.

(2) For business combinations not under common control, the initial investment cost is determined based on the fair value of the consideration paid on the acquisition date.

The company realizes long-term equity investments formed through business combinations not under common control through multiple transactions in stages, and distinguishes between individual financial statements and consolidated financial statements for relevant accounting treatment:

1) In certain financial statements, the initial investment cost calculated using the cost method is determined by adding the book value of the originally held equity investment to the newly increased investment cost.

2) In consolidated financial statements, it is necessary to determine whether a transaction constitutes a "package deal." If it does, all transactions should be accounted for as one transaction to obtain control. If it does not, the equity held in the acquiree before the acquisition date should be remeasured at its fair value on the acquisition date, and the difference between the fair value and its book value should be recorded in the current investment income. If the equity held in the acquiree before the acquisition date involves other comprehensive income accounted for under the equity method, the related other comprehensive income should be transferred to the current income to which the acquisition date belongs. However, other comprehensive income arising from the remeasurement of net liabilities or net assets changes in the defined benefit plan of the investee is excluded.

(3) Except for those formed through business combinations: For those acquired by paying cash, the actual purchase price paid shall be regarded as the initial investment cost; for those acquired by issuing equity securities, the fair value of the issued equity securities shall be regarded as the initial investment cost; for those acquired through debt restructuring, the initial investment cost shall be determined in accordance with "Accounting Standards for Business Enterprises No. 12 - Debt Restructuring"; for those acquired through nonmonetary asset exchanges, the initial investment cost shall be determined in accordance with "Accounting Standards for Business Enterprises No. 7 - Non-monetary Asset Exchanges".

3. Subsequent measurement and profit and loss recognition method

The long-term equity investment that exercises control over the invested entity is accounted for using the cost method; the long-term equity investment in associated enterprises and joint ventures is accounted for using the equity method.

4. Method for disposing of investments in subsidiaries through multiple transactions in stages until losing control

(1) Judgment criteria for whether it belongs to a "package deal"

When disposing of equity investments in subsidiaries through multiple transactions until losing control, the company assesses whether the step-by-step transactions constitute a "package deal" based on various factors such as the terms of the transaction agreements for each step, the disposal consideration received separately, the party to whom the equity is sold, the method of disposal, and the timing of disposal. If the terms, conditions, and economic impacts of each transaction meet one or more of the following criteria, it generally indicates that the multiple transactions are a "package deal":

1) These transactions are entered into simultaneously or with consideration of their mutual impact;

2) These transactions, taken as a whole, can achieve a complete business outcome;

3) The occurrence of one transaction depends on the occurrence of at least one other transaction;

4) A transaction may not be economical when viewed alone, but it may be economical when considered alongside other transactions.

(2) Accounting treatment for transactions not classified as "package deals"

1) Individual financial statements

For the disposed equity, the difference between its book value and the actual acquisition price is recorded in the current profit and loss. For the remaining equity, if it still has significant influence on the invested entity or exercises joint control with other parties, it is accounted for using the equity method; if it can no longer exercise control, joint control, or significant influence over the invested entity, it is accounted for in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments".

2) Consolidated financial statements

Before losing control, the difference between the disposal price and the share of net assets of the subsidiary that corresponds to the disposal of long-term equity investment, calculated continuously from the acquisition date or consolidation date, is adjusted to capital reserves (capital surplus). If the capital surplus is insufficient to offset, the retained earnings are offset.

When losing control over a subsidiary, the remaining equity is remeasured at its fair value on the date of losing control. The difference between the sum of the consideration obtained from disposing of the equity and the fair value of the remaining equity, minus the share of the net assets of the original subsidiary that should be enjoyed based on the original shareholding ratio and calculated continuously from the acquisition date or the merger date, is recorded in the current investment income when losing control and offset against goodwill. Other comprehensive income related to the equity investment in the original subsidiary should be transferred to the current investment income when losing control.

(3) Accounting treatment for transactions classified as "package deals"

1) Individual financial statements

Account for each transaction as a disposal of a subsidiary and loss of control. However, the difference between the disposal price and the book value of the long-term equity investment corresponding to the disposal investment prior to the loss of control is recognized as other comprehensive income in individual financial statements and is transferred to the current profit and loss at the time of loss of control.

2) Consolidated financial statements

Each transaction is accounted for as a disposal of a subsidiary and the loss of control. However, the difference between the disposal price and the share of the subsidiary's net assets corresponding to the disposal investment prior to the loss of control is recognized as other comprehensive income in the consolidated financial statements and is transferred to the profit and loss for the period in which the control is lost.

15. Investment real estate

1. Investment properties include land use rights that have been leased, land use rights that are held and intended for transfer after appreciation, and buildings that have been leased.

2. Investment properties are initially measured at cost and subsequently measured using the cost model. Depreciation or amortization is accrued using the same method as for fixed assets and intangible assets.

15. Investment real estate

16. Fixed assets

1. Recognition criteria for fixed assets

Fixed assets refer to tangible assets held for the production of goods, provision of services, leasing, or business management, with a useful life exceeding one accounting year. Fixed assets are recognized when both conditions are met: it is likely that economic benefits will flow in and the cost can be reliably measured.

2. Depreciation methods for various types of fixed assets

Categorydepreciation methodDepreciation period (years)Residual value rate (%)Annual depreciation rate (%)
Houses and buildingsStraight-line method305.003.17
transportation equipmentStraight-line method65.0015.83
Electronic equipment and othersStraight-line method55.0019.00

15. Investment real estate

16. Fixed assets

17. Construction in progress

1. Construction in progress is recognized when it simultaneously meets the criteria of a high likelihood of economic benefits flowing in and the cost being reliably measurable. Construction in progress is measured at the actual cost incurred until the asset reaches its intended usable state.

2. When the construction in progress reaches the expected usable state, it shall be transferred to fixed assets at its actual cost. For those that have reached the expected usable state but have not yet undergone completion settlement, they shall be transferred to fixed assets at their estimated value. After completion settlement, the original provisional estimated value shall be adjusted based on the actual cost, but the original depreciation accrued will not be adjusted.

17. Construction in progress

18. Borrowing costs

1. Recognition principle for capitalization of borrowing costs

Borrowing costs incurred by a company that are directly attributable to the acquisition, construction, or production of assets eligible for capitalization are capitalized and included in the cost of the relevant assets. Other borrowing costs are recognized as expenses when incurred and recorded in the current period profit and loss.

2. Capitalization period of borrowing costs

(1) Capitalization of borrowing costs begins when all of the following conditions are met simultaneously: 1) asset expenditure has already occurred; 2) borrowing costs have already been incurred; 3) the acquisition, construction, or production activities necessary to prepare the asset for its intended use or sale have already begun.

(2) If the acquisition and construction or production of assets eligible for capitalization is interrupted abnormally and the interruption period lasts for more than three consecutive months, the capitalization of borrowing costs shall be suspended; the borrowing costs incurred during the interruption period shall be recognized as expenses for the current period until the acquisition and construction or production activities of the assets recommence.

(3) When the assets eligible for capitalization under acquisition and construction or production reach the expected usable or marketable state, the capitalization of borrowing costs shall cease.

3. Capitalization rate and capitalized amount of borrowing costs

For borrowings specifically incurred for the acquisition, construction, or production of assets eligible for capitalization, the amount of interest that should be capitalized is determined by subtracting the interest income earned on the unused borrowing funds deposited in the bank or the investment income earned from temporary investments from the actual interest expenses incurred in the current period of the special borrowings (including the amortization of discounts or premiums determined using the effective interest method). For general borrowings used for the acquisition, construction, or production of assets eligible for capitalization, the amount of interest that should be capitalized for general borrowings is calculated by multiplying the weighted average of cumulative asset expenditure exceeding the expenditure on special borrowings by the capitalization rate of the general borrowings.

19. Intangible assets

1. Intangible assets, including software and land use rights, are initially measured at cost.

2. Intangible assets with a limited service life shall be systematically and reasonably amortized during their service life in accordance with the expected realization method of the economic benefits related to such intangible assets. If the expected realization method cannot be reliably determined, the straight-line method shall be adopted for amortization. as follows:

projectService life and its determination basisAmortization method
softwareThe expected realization method of economic benefits related to intangible assets, within 3-5 yearsstraight-line method

3. Intangible assets with uncertain service lives are not amortized, and the company reviews the service life of such intangible assets during each accounting period.

3. Capitalization rate and capitalized amount of borrowing costs For borrowings specifically incurred for the acquisition, construction, or production of assets eligible for capitalization, the amount of interest that should be capitalized is determined by subtracting the interest income earned on the unused borrowing funds deposited in the bank or the investment income earned from temporary investments from the actual interest expenses incurred in the current period of the special borrowings (including the amortization of discounts or premiums determined using the effective interest method). For general borrowings used for the acquisition, construction, or production of assets eligible for capitalization, the amount of interest that should be capitalized for general borrowings is calculated by multiplying the weighted average of cumulative asset expenditure exceeding the expenditure on special borrowings by the capitalization rate of the general borrowings.

19. Intangible assets

20. Impairment of certain long-term assets

For long-term assets such as long-term equity investments, investment properties measured using the cost model, fixed assets, construction in progress, right-of-use assets, and intangible assets with a limited useful life, if there are indications of impairment as of the balance sheet date, their recoverable amounts are estimated. For goodwill arising from business combinations and intangible assets with an uncertain useful life, impairment tests are conducted annually, regardless of whether there are indications of impairment. Goodwill is tested for impairment in conjunction with the asset group or combination of asset groups to which it is related.

If the recoverable amount of the aforementioned long-term assets is lower than their book value, the asset impairment provision shall be recognized based on the difference and included in the current profit and loss.

21. Long-term deferred expenses

Long-term deferred expenses account for various expenses that have been paid and have an amortization period of more than one year (excluding one year). Long-term deferred expenses are recorded at actual cost and amortized evenly over the benefit period or within the prescribed period. If a long-term deferred expense item does not benefit future accounting periods, the remaining unamortized balance of the item's amortized value is fully transferred to the current profit and loss.

22. Employee compensation

1. Employee compensation includes short-term compensation, post-employment benefits, termination benefits, and other long-term employee benefits.

2. Accounting treatment method for short-term compensation

During the accounting period in which employees provide services to the company, the actual short-term compensation incurred is recognized as a liability and recorded in the current profit and loss or related asset costs.

3. Accounting treatment method for post-employment benefits

Post-employment benefits are divided into defined contribution plans and defined benefit plans.

(1) During the accounting period in which employees provide services to the company, the amount of contributions calculated based on the defined contribution plan is recognized as a liability and recorded in the current period profit and loss or related asset costs.

(2) The accounting treatment for defined benefit plans typically involves the following steps:

1) Based on the expected cumulative benefit unit method, unbiased and mutually consistent actuarial assumptions are adopted to estimate relevant demographic and financial variables, measure the obligations arising from defined benefit plans, and determine the period to which the relevant obligations belong. At the same time, the obligations arising from defined benefit plans are discounted to determine the present value of the defined benefit plan obligations and the current service cost;

2) If there are assets in the defined benefit plan, the deficit or surplus formed by subtracting the fair value of the defined benefit plan assets from the present value of the defined benefit plan obligations shall be recognized as a net liability or net asset of the defined benefit plan. If there is a surplus in the defined benefit plan, the net asset of the defined benefit plan shall be measured at the lower of the surplus and the asset cap of the defined benefit plan;

3) At the end of the period, the employee compensation costs arising from defined benefit plans are recognized as three components: service costs, net interest on net liabilities or net assets of the defined benefit plans, and changes arising from the remeasurement of net liabilities or net assets of the defined benefit plans. Among them, service costs and net interest on net liabilities or net assets of the defined benefit plans are recorded in the current profit and loss or related asset costs. Changes arising from the remeasurement of net liabilities or net assets of the defined benefit plans are recorded in other comprehensive income and are not allowed to be reversed to profit and loss in subsequent accounting periods. However, these amounts recognized in other comprehensive income can be transferred within equity.

4. Accounting treatment method for dismissal benefits

The employee compensation liabilities arising from the dismissal benefits provided to employees shall be recognized and recorded in the current profit and loss when the earlier of the following occurs: (1) when the company cannot unilaterally withdraw the dismissal benefits provided due to the termination of labor relations plan or layoff proposal; (2) when the company recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits.

5. Accounting treatment methods for other long-term employee benefits

For other long-term benefits provided to employees, if they meet the conditions of defined contribution plans, accounting treatment shall be conducted in accordance with the relevant provisions of such plans. For other long-term benefits not meeting the conditions of defined contribution plans, accounting treatment shall be conducted in accordance with the relevant provisions of defined benefit plans. To simplify the relevant accounting treatment, the employee compensation costs incurred shall be recognized as the total net amount of service costs, net interest on other long-term employee benefits net liabilities or net assets, and changes arising from the remeasurement of other long-term employee benefits net liabilities or net assets, and included in the current profit and loss or related asset costs.

23. Method for accounting of maintenance fund

According to the relevant regulations of the location where the development project is situated, the maintenance fund is collected from home buyers or accrued by the company and included in the development costs of the relevant development products during the sale (pre-sale) of the products. The maintenance fund is then uniformly submitted to the maintenance fund management department.

24. Method for calculating quality guarantee deposit

The quality assurance deposit shall be reserved from the construction unit's project funds according to the provisions of the construction contract. The maintenance costs incurred during the warranty period of the developed product shall be offset against the quality assurance deposit; upon the expiration of the agreed warranty period of the developed product, the remaining balance of the quality assurance deposit shall be refunded to the construction unit.

25. Income

Disclose the accounting policies adopted for revenue recognition and measurement based on business types

1. Revenue recognition principle

On the contract start date, the company evaluates the contract, identifies each individual performance obligation contained within it, and determines whether each individual performance obligation is to be fulfilled within a certain time period or at a certain point in time.

When one of the following conditions is met, it is considered fulfilling the performance obligation within a certain period of time; otherwise, it is considered fulfilling the performance obligation at a certain point in time: (1) The customer obtains and consumes the economic benefits brought by the company's performance at the same time as the company performs; (2) The customer has control over the goods in progress during the company's performance; (3) The goods produced during the company's performance have irreplaceable uses, and the company has the right to collect payments for the performance completed to date throughout the contract period.

For performance obligations that are fulfilled within a certain period, the company recognizes revenue based on the progress of performance during that period. When the progress of performance cannot be reasonably determined, if the costs incurred are expected to be compensated, revenue is recognized at the amount of the costs incurred until the progress of performance can be reasonably determined. For performance obligations that are fulfilled at a certain point in time, revenue is recognized at the point when the customer obtains control over the related goods or services. In determining whether the customer has obtained control over the goods, the company considers the following indicators: (1) the company has a current right to receive payment for the goods, meaning that the customer has a current obligation to pay for the goods; (2) the company has transferred legal ownership of the goods to the customer, meaning that the customer has legal ownership of the goods; (3) the company has physically transferred the goods to the customer, meaning that the customer has physically possession of the goods; (4) the company has transferred the significant risks and rewards of ownership of the goods to the customer, meaning that the customer has obtained the significant risks and rewards of ownership of the goods; (5) the customer has accepted the goods; (6) other indicators that indicate the customer has obtained control over the goods.

2. Revenue measurement principle

(1) The company measures revenue based on the transaction price allocated to each individual performance obligation. The transaction price represents the amount of consideration the company expects to be entitled to receive for transferring goods or services to customers, excluding amounts collected on behalf of third parties and amounts expected to be refunded to customers.

(2) If there is variable consideration in the contract, the company determines the best estimate of the variable consideration based on the expected value or the most likely amount. However, the transaction price including the variable consideration shall not exceed the amount that is unlikely to result in a significant reversal of the cumulative recognized revenue when the relevant uncertainties are resolved.

(3) If there is a significant financing component in the contract, the company determines the transaction price based on the amount payable assuming that the customer pays in cash upon obtaining control of the goods or services. The difference between the transaction price and the contract consideration is amortized using the effective interest method over the contract period.

(4) If a contract includes two or more performance obligations, the company shall, on the contract start date, allocate the transaction price to each individual performance obligation based on the relative proportion of the separate selling prices of the promised goods for each individual performance obligation.

3. Specific methods for revenue recognition

(1) Specific method for recognizing revenue from sales of real estate development projects

The company's real estate sales business involves performance obligations that are fulfilled at a specific point in time. Once the development product has been completed and accepted, a sales contract has been signed and the obligations stipulated in the contract have been fulfilled, and after issuing an occupation notice or announcement to the owner, the property has been actually delivered to the owner or the contracted delivery date has expired, and the full amount of the house payment has been received, and the related costs that have occurred or will occur can be reliably measured, the realization of sales revenue is confirmed.

(2) Provide specific methods for recognizing income from property service provision

The provision of property management services by the company constitutes a performance obligation that is fulfilled over a certain period of time, and revenue is recognized based on the progress of performance. The company determines the progress of performance in providing services based on the passage of time.

(3) Method for recognizing construction revenue

The company provides construction engineering services. As the company fulfills its contract, the customer simultaneously obtains and consumes the economic benefits brought about by the company's performance. Additionally, the company has the right to collect payments for the performance completed to date throughout the contract period. The company recognizes revenue based on the performance progress as a performance obligation fulfilled within a certain period, except when the performance progress cannot be reasonably determined. The company determines the performance progress of service provision using the input method. When the performance progress cannot be reasonably determined, if the costs already incurred by the company are expected to be compensated, revenue is recognized based on the amount of costs already incurred until the performance progress can be reasonably determined.

(4) Other methods for recognizing income

Other revenues include hotel operating income, etc. For hotel room revenue, as customers obtain and consume the economic benefits brought by the company's performance while the company is fulfilling its contract, the company treats it as a performance obligation fulfilled within a certain period of time and recognizes revenue based on the progress of performance during the accounting period in which services are provided. For other revenues, revenue is recognized when the customer obtains control over the relevant goods and the relevant payment has been received or the right to receive payment has been obtained, as stipulated in the relevant contracts and agreements.

The situation where similar businesses adopt different business models involving different revenue recognition methods and measurement technique

26. Contract acquisition costs and contract performance costs

If the incremental costs incurred by the company to obtain a contract are expected to be recoverable, they are recognized as contract acquisition costs and recognized as an asset.

The costs incurred by a company for the performance of a contract, which do not fall within the scope of relevant standards such as inventory, fixed assets, or intangible assets, and meet the following conditions, are recognized as contract performance costs and recognized as an asset:

1. The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs explicitly borne by the customer, and other costs incurred solely due to the contract;

2. This cost increases the resources that the company will use to fulfill its contractual obligations in the future;

3. The cost is expected to be recoverable.

The company amortizes assets related to contract costs on the same basis as the recognition of revenue from goods or services associated with those assets, and records them in the current period profit and loss.

If the carrying amount of an asset related to contract costs exceeds the remaining consideration expected to be obtained from the transfer of goods or services associated with that asset, less the estimated costs to be incurred, the company will make an impairment provision for the excess and recognize it as an asset impairment loss. If factors that were previously impaired change in subsequent periods, such that the remaining consideration expected to be obtained from the transfer of goods or services associated with the asset, less the estimated costs to be incurred, exceeds the carrying amount of the asset, the previously made asset impairment provision will be reversed and recorded in the current profit and loss. However, the carrying amount of the asset after reversal shall not exceed its carrying amount at the reversal date assuming no impairment provision was made.

26. Contract acquisition costs and contract performance costs If the incremental costs incurred by the company to obtain a contract are expected to be recoverable, they are recognized as contract acquisition costs and recognized as an asset. The costs incurred by a company for the performance of a contract, which do not fall within the scope of relevant standards such as inventory, fixed assets, or intangible assets, and meet the following conditions, are recognized as contract performance costs and recognized as an asset:

27. Contract assets and contract liabilities

The company presents contract assets or contract liabilities in the balance sheet based on the relationship between the performance of contractual obligations and customer payments. The company offsets contract assets and contract liabilities under the same contract and presents the net amount.

The company presents the rights to charge customers for consideration that it owns and can be exercised unconditionally (i.e., solely dependent on the passage of time) as accounts receivable, and presents the rights to charge customers for consideration that have been transferred to customers and are dependent on factors other than the passage of time as contract assets.

The company presents the obligation to transfer goods to customers for consideration received or receivable from customers as a contractual liability.

28. Government subsidies

1. Government subsidies are recognized when both of the following conditions are met: (1) the company can meet the conditions attached to the government subsidies; (2) the company can receive the government subsidies. If the government subsidies are monetary assets, they are measured at the received or receivable amount. If the government subsidies are non-monetary assets, they are measured at fair value; if the fair value cannot be reliably obtained, they are measured at nominal amount.

2. Basis for judging government subsidies related to assets and accounting treatment methods

Government documents stipulate that government subsidies used for the acquisition, construction, or other formation of long-term assets are classified as asset-related government subsidies. In cases where government documents are unclear, judgments are based on the essential conditions necessary for obtaining the subsidy. Those subsidies that are essential conditions for the acquisition, construction, or other formation of long-term assets are considered as asset-related government subsidies. Asset-related government subsidies are offset against the carrying amount of the relevant assets or recognized as deferred income. If an asset-related government subsidy is recognized as deferred income, it is amortized into profit or loss over the useful life of the relevant asset using a reasonable and systematic method. Government subsidies measured at their nominal amounts are directly recognized in the current profit or loss. If the relevant asset is sold, transferred, scrapped, or damaged before the end of its useful life, the unallocated balance of the related deferred income is transferred to the profit or loss for the period in which the asset is disposed of.

3. Basis for determining government subsidies related to earnings and accounting treatment methods

Government subsidies other than those related to assets are classified as government subsidies related to income. For government subsidies that contain both asset-related and income-related components, and it is difficult to distinguish whether they are related to assets or income, they are generally classified as government subsidies related to income. Government subsidies related to income, if used to compensate for related costs or losses in future periods, are recognized as deferred income and recorded in the current profit and loss or offset against related costs during the period when the related costs or losses are recognized. If used to compensate for related costs or losses that have already occurred, they are directly recorded in the current profit and loss or offset against related costs.

4. Government subsidies related to the company's daily business activities shall be recorded in other income or offset against related costs and expenses based on the substance of the economic transaction. Government subsidies unrelated to the company's daily activities shall be recorded in non-operating income and expenses.

5. Accounting treatment method for policy-based preferential loan discount interest

(1) When the finance department allocates discount interest funds to the lending bank, and the lending bank provides loans to the company at a preferential policy interest rate, the actual received loan amount shall be regarded as the entry value of the loan, and the relevant borrowing costs shall be calculated based on the loan principal and the preferential policy interest rate.

(2) If the finance department directly allocates the discount interest funds to the company, the corresponding discount interest will be used to offset the relevant borrowing costs.

29. Deferred tax assets/deferred tax liabilities

1. The deferred tax assets or deferred tax liabilities are recognized based on the difference between the carrying amount of assets and liabilities and their tax bases (for items not recognized as assets or liabilities, their tax bases can be determined according to tax law, and the difference between such tax bases and their carrying amounts). The calculation is based on the applicable tax rate during the expected period of asset recovery or liability settlement.

2. The recognition of deferred tax assets is limited to the taxable income that is likely to be available for offsetting deductible temporary differences. At the balance sheet date, if there is conclusive evidence indicating that sufficient taxable income is likely to be available in future periods for offsetting deductible temporary differences, the deferred tax assets that have not been recognized in previous accounting periods shall be recognized.

3. On the balance sheet date, the carrying amount of deferred tax assets is reviewed. If it is likely that sufficient taxable income will not be available in future periods to offset the benefit of the deferred tax asset, the carrying amount of the deferred tax asset is reduced. When sufficient taxable income is likely to be available, the reduced amount is reversed.

4. The current income tax and deferred income tax of the company are recognized as income tax expenses or income in the current profit and loss, excluding income tax arising from the following circumstances: (1) business combinations; (2) transactions or events directly recognized in owner's equity.

When the following conditions are simultaneously met, the company presents the deferred tax assets and deferred tax liabilities at their net amount after offsetting: (1) having the legal right to settle current tax assets and current tax liabilities at their net amount; (2) the deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax authority on the same taxable entity, or related to different taxable entities, but during the future reversal period of each significant deferred tax asset and deferred tax liability, the involved taxable entities intend to settle current tax assets and current tax liabilities at their net amount, or simultaneously acquire assets and settle liabilities.

30. Leasing

(1) Accounting treatment method for leasing as a lessee

On the commencement date of the lease term, the company recognizes leases with a term not exceeding 12 months and excluding purchase options as short-term leases; it also recognizes leases where the individual leased asset is a new asset with a relatively low value as low-value asset leases. If the company subleases or expects to sublease the leased asset, the original lease is not recognized as a low-value asset lease.

For all short-term leases and low-value asset leases, the company recognizes the lease payments as related asset costs or current profit and loss using the straight-line method over each period of the lease term.

Except for the short-term leases and low-value asset leases that have been simplified, on the lease commencement date, the company recognizes the right-of-use assets and lease liabilities for the lease.

(1) Right-to-use assets

The right-of-use asset is initially measured at cost, which includes: 1) the initial measurement amount of the lease liability; 2) the lease payments made on or before the lease term commencement date, after deducting the amount related to any lease incentives already enjoyed; 3) the initial direct expenses incurred by the lessee; 4) the estimated costs that the lessee will incur for dismantling and removing the leased asset, restoring the site where the leased asset is located, or restoring the leased asset to the condition specified in the lease terms.

The company accrues depreciation for right-of-use assets using the straight-line method. If it is reasonably certain that ownership of the leased asset will be obtained upon the expiration of the lease term, the company accrues depreciation over the remaining useful life of the leased asset. If it is not reasonably certain that ownership of the leased asset will be obtained upon the expiration of the lease term, the company accrues depreciation over the shorter of the lease term or the remaining useful life of the leased asset.

(2) Lease liabilities

On the lease commencement date, the company recognizes the present value of the lease payments that have not yet been paid as the lease liability. When calculating the present value of the lease payments, the lease implicit interest rate is used as the discount rate. If the lease implicit interest rate cannot be determined, the company's incremental borrowing rate is used as the discount rate. The difference between the lease payments and their present value is recognized as unrecognized financing expenses. Interest expenses are recognized during each period of the lease term based on the discount rate used to recognize the present value of the lease payments and are included in the current profit and loss. Variable lease payments that are not included in the measurement of the lease liability are included in the current profit and loss when they are actually incurred.

After the commencement date of the lease term, when there are changes in the fixed payment amount, changes in the estimated payable amount of the residual value guarantee, changes in the index or ratio used to determine the lease payment amount, or changes in the assessment results or actual exercise of purchase options, renewal options, or termination options, the company re-measures the lease liability based on the present value of the changed lease payment amount and adjusts the book value of the right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liability still needs further reduction, the remaining amount will be included in the current profit and loss.

(2) Accounting treatment method for leasing as a lessor

On the lease commencement date, the company categorizes leases that have essentially transferred almost all risks and rewards related to the ownership of the leased asset as financing leases, while all others are classified as operating leases.

(1) Operating lease

During the various periods within the lease term, the company recognizes the lease payment amounts as rental income using the straight-line method. The initial direct expenses incurred are capitalized and amortized on the same basis as the recognition of rental income, and are recorded in the current profit and loss on a periodic basis. The variable lease payments related to operating leases that are not included in the lease payment amounts are recognized in the current profit and loss when they are actually incurred.

(2) Financial leasing

On the lease commencement date, the company recognizes the financing lease receivables based on the net investment in the lease (the sum of the unguaranteed residual value and the present value of the lease payments not yet received at the lease commencement date, discounted at the lease's effective interest rate), and derecognizes the financing lease assets. During each period of the lease term, the company calculates and recognizes interest income based on the lease's effective interest rate.

The variable lease payments obtained by the company that are not included in the measurement of net investment in leases are recorded in the current profit and loss when they are actually incurred.

31. Changes in significant accounting policies and accounting estimates

(1) Changes in significant accounting policies

□ Applicable Not Applicable

(2) Changes in significant accounting estimates

□ Applicable Not Applicable

(3) Adjustments to relevant items in the financial statements at the beginning of the year for the first time implementing the new accounting standards from 2026

□ Applicable Not applicable

VI. Tax Items

1. Main tax categories and tax rates

tax categoryTaxable basetax rate
Value-added taxThe output tax is calculated based on the revenue from selling goods and taxable services as stipulated by tax laws. After deducting the input tax that is allowed to be deducted in the current period, the remaining difference is the value-added tax payable9%, 6%, 5%, 3%
Urban maintenance and construction taxThe actual turnover tax paid7%
corporate income taxTaxable income25%, 20%, 16.5%
Education SurchargeThe actual turnover tax paid3%
Local education surchargeThe actual turnover tax paid2%
Land Value Increment TaxThe appreciation amount generated from the paid transfer of state-owned land use rights and the property rights of buildings and other attached objects on the landPay at progressive tax rates based on the excess rate of the appreciation amount
property taxFor ad valorem taxation, the tax shall be levied at 1.2% of the remaining value after deducting 30% of the original value of the property in one lump sum; for rental taxation, the tax shall be levied at 12% of the rental income1.2%, 12%

If there are taxpayers with different enterprise income tax rates, disclose the relevant information and explanations

Tax payer nameIncome tax rate
Huazhan Company, Shantou Songshan Company20%
Subsidiary registered in Hong Kong16.5%
Other taxpayers except those mentioned above25%

2. Tax incentives

According to the "Announcement of the Ministry of Finance and the State Taxation Administration on Preferential Income Tax Policies for Small and Micro Enterprises and Individual Businesses" (Announcement No. 6 of the Ministry of Finance and the State Taxation Administration in 2023), for small and micro-profit enterprises with an annual taxable income not exceeding 1 million yuan, the taxable income shall be calculated at a reduced rate of 25%, and the enterprise income tax shall be paid at a tax rate of 20%. The implementation period is from January 1, 2023, to December 31, 2027. The subsidiary companies of our company, Huazhan Jianli and Shantou Songshan Company, are subject to the preferential tax rate of 20% for small and microprofit enterprises.

VII. Notes to items in the consolidated financial statements

1. Monetary funds

Unit: Yuan

projectClosing balanceOpening balance
Cash on hand17,651.0719,892.83
bank deposit270,630,662.59284,666,632.21
total270,648,313.66284,686,525.04
Including: total amount of funds deposited overseas3,687,478.324,242,440.12

Other instructions

As of June 30, 2026, the restricted funds in bank deposits amounted to RMB 2,337,426.17, of which RMB 2,201,283.57 was frozen due to litigation, RMB 70,010.20 was from suspended accounts and payment halts, RMB 50,000 was for regular project deposits, and RMB 16,132.40 was from special accounts for migrant workers

2. Trading financial assets

Unit: Yuan

projectClosing balanceOpening balance
Financial assets measured at fair value with changes recognized in current profit and loss1,057,325,314.701,050,256,058.41
among which
fund1,057,325,314.701,050,256,058.41
among which
total1,057,325,314.701,050,256,058.41

Other instructions

3. Bills receivable

(1) Classification and presentation of notes receivable

Unit: Yuan

projectClosing balanceOpening balance
Bank acceptance bill200,000.00
total200,000.000.00

(2) Disclosure by classification based on bad debt provision method

Unit: Yuan

CategoryClosing balanceOpening balance
book balanceallowance for bad debtsbook valuebook balanceallowance for bad debtsbook value
AmountproportionAmountprovision ratioAmountproportionAmountprovision ratio
among which
Notes receivable with provision for bad debts calculated based on portfolio200,000.00100.00%200,000.00
among which
Bank acceptance bill200,000.00100.00%200,000.00
Commercial acceptance bill
total200,000.00100.00%200,000.00

Provision for bad debts of notes receivable is calculated and withdrawn based on the general model of expected credit losses as follows: □ Applicable Not Applicable

4. Accounts receivable

(1) Disclosure by aging

Unit: Yuan

agingClosing book balanceOpening book balance
Within 1 year (including 1 year)35,452,965.4035,522,470.19
1 to 2 years11,975,678.1711,264,782.88
2 to 3 years5,961,304.835,972,759.94
More than 3 years34,324,044.6134,599,378.84
3 to 4 years7,945,612.318,220,946.54
4 to 5 years5,252,795.415,252,795.41
More than 5 years21,125,636.8921,125,636.89
total87,713,993.0187,359,391.85

(2) Disclosure by classification of bad debt provision method

Unit: Yuan

Category name for individual provision for bad debts: accounts receivable with significant individual provision for bad debts

CategoryClosing balanceOpening balance
book balanceallowance for bad debtsbook valuebook balanceallowance for bad debtsbook value
AmountproportionAmountprovision ratioAmountproportionAmountprovision ratio
Accounts receivable with individual provision for bad debts24,447,097.6027.87%24,447,097.60100.00%0.0024,613,872.7028.18%24,613,872.70100.00%0.00
among which
Accounts receivable with provision for bad debts calculated on a portfolio basis63,266,895.4172.13%17,847,170.2528.21%45,419,725.1662,745,519.1571.82%17,847,435.4128.44%44,898,083.74
among which
total87,713,993.01100.00%42,294,267.8548.22%45,419,725.1687,359,391.85100.00%42,461,308.1148.61%44,898,083.74

Unit: Yuan

NameOpening balanceClosing balance
book balanceallowance for bad debtsbook balanceallowance for bad debtsprovision ratioReason for accrual
Payment for goods in agency import and export business11,574,556.0011,574,556.0011,574,556.0011,574,556.00100.00%It is expected that it cannot be recovered
Long-term uncollected housing salespayment10,084,109.6010,084,109.609,917,334.509,917,334.50100.00%It is expected that it cannot be recovered
Accounts receivable of the subsidiary have been written off2,314,755.462,314,755.462,314,755.462,314,755.46100.00%It is expected that it cannot be recovered
Other customer payments640,451.64640,451.64640,451.64640,451.64100.00%It is expected that it cannot be recovered
total24,613,872.7024,613,872.7024,447,097.6024,447,097.60

Category name for combined provision for bad debts: Closing balance, book balance, provision for bad debts ratio Unit: Yuan

NameClosing balance
book balanceallowance for bad debtsprovision ratio
Accounts receivable from other customer portfolios63,266,895.4117,847,170.2528.21%
total63,266,895.4117,847,170.25

Explanation for determining the basis of this combination: If the provision for bad debts of accounts receivable is calculated and withdrawn according to the general model of expected credit losses:

□ Applicable Not Applicable

(3) Provision for bad debts accrued, recovered, or reversed in the current period

Provision for bad debts in the current period:

Unit: Yuan

CategoryOpening balanceCurrent period change amountClosing balance
accrueWithdraw or reverseWrite-offOther
Provision for bad debts on an individual basis24,613,872.70-166,775.1024,613,872.70
Provision for bad debts based on portfolio17,847,435.41-265.1617,680,395.15
total42,461,308.110.000.000.00-167,040.2642,294,267.85

Among them, the amounts of bad debt provisions recovered or reversed in the current period are significant: Unit: Yuan

Unit NameRecover or reverse the amountReason for reversalCollection methodThe basis for determining the original provision ratio for bad debts and its reasonableness

(4) Accounts receivable and contract assets, ranked by the top five ending balances, aggregated by the debtors

Unit: Yuan

Unit NameClosing balance of accounts receivableClosing balance of contract assetsClosing balance of accounts receivable and contract assetsProportion of total ending balance of accounts receivable and contract assetsClosing balance of bad debt provision for accounts receivable and impairment provision for contract assets
Shenzhen Zhaoyang Real Estate Co., Ltd13,688,684.240.0013,688,684.2412.10%229,508.17
Shenzhen Hongteng Investment Management Co., Ltd11,789,376.23837,624.2812,627,000.5111.16%12,627,000.51
Shenzhen Branch of Jiangsu Huajian Construction Co., Ltd6,262,026.983,992,794.5110,254,821.499.06%354,132.67
Shenzhen Guangming Construction Engineering No.1 Construction Engineering Co., Ltd1,044,468.138,607,487.989,651,956.118.53%662,029.13
Shenzhen Construction Engineering Group Co., Ltd5,656,888.11167,955.455,824,843.565.15%1,409,486.39
total38,441,443.6913,605,862.2252,047,305.9146.00%15,282,156.87

5. Contract assets

(1) Contract asset status

Unit: Yuan

projectClosing balanceOpening balance
book balanceallowance for bad debtsbook valuebook balanceallowance for bad debtsbook value
Unsettled project funds after completion25,433,846.733,578,124.6921,855,722.0432,613,380.973,578,124.6929,035,256.28
total25,433,846.733,578,124.6921,855,722.0432,613,380.973,578,124.6929,035,256.28

(2) Disclosure by classification based on bad debt provision method

Unit: Yuan

CategoryClosing balanceOpening balance
book balanceallowance for bad debtsbook valuebook balanceallowance for bad debtsbook value
AmountproportionAmountprovision ratioAmountproportionAmountprovision ratio
among which
Provision for bad debts based on portfolio25,433,846.73100.00%3,578,124.6914.07%21,855,722.0432,613,380.97100.00%3,578,124.6910.97%29,035,256.28
among which
total25,433,846.73100.00%3,578,124.6914.07%21,855,722.0432,613,380.97100.00%3,578,124.6910.97%-29,035,256.28

Accrue bad debt reserves based on the general model of expected credit losses □ Applicable Not Applicable

(3) Provision for bad debts accrued, recovered, or reversed in the current period

Unit: Yuan

Among them, the amounts of bad debt provision recovered or reversed in the current period are significant:

projectCurrent period accrualWithdrawn or reversed in the current periodCurrent period write-off/cancellationreason
Provision for impairment based on portfolio0.00
total0.00

Unit: Yuan

Unit NameRecover or reverse the amountReason for reversalWithdrawal methodThe basis for determining the original provision ratio for bad debts and its reasonableness

Other instructions

6. Other receivables

Unit: Yuan

projectClosing balanceOpening balance
Interest receivable0.000.00
Dividends receivable0.000.00
Other receivables729,582,117.04747,900,491.52
total729,582,117.04747,900,491.52

(1) Other receivables

1) Classification of other receivables by nature of payment

Unit: Yuan

Nature of PaymentClosing book balanceOpening book balance
Combination of accounts receivable from related parties850,579,354.54850,579,354.54
Portfolio of receivables from government departments165,460.00165,460.00
Employee petty cash portfolio receivable108,216.95112,443.24
Collection and payment portfolio receivable1,098,050.66596,591.68
Portfolio of other receivables172,857,914.62193,464,111.43
total1,024,808,996.771,044,917,960.89

2) Disclosure by aging

Unit: Yuan

agingClosing book balanceOpening book balance
Within 1 year (including 1 year)6,793,623.336,291,824.79
1 to 2 years21,034,096.6621,982,715.53
2 to 3 years5,913,727.875,885,948.43
More than 3 years991,067,548.911,010,757,472.14
3 to 4 years3,267.403,267.40
4 to 5 years0.000.00
More than 5 years991,064,281.511,010,754,204.74
total1,024,808,996.771,044,917,960.89

3) Disclosure by classification based on bad debt provision method

Applicable □ Not applicable

Unit: Yuan

CategoryClosing balanceOpening balance
book balanceallowance for bad debtsbook valuebook balanceallowance for bad debtsbook value
AmountproportionAmountprovision ratioAmountproportionAmountprovision ratio
Provide for bad debts on an individual basis1,016,822,174.9199.22%294,871,895.5029.00%721,950,279.411,037,381,783.4899.28%296,662,485.1428.60%740,719,298.34
among which
Provision for bad debts7,986,821.860.78%354,984.234.44%7,631,837.637,536,177.410.72%354,984.234.71%7,181,193.18
based on portfolio
among which
total1,024,808,996.77100.00%295,226,879.7328.81%729,582,117.041,044,917,960.89100.00%297,017,469.3728.42%747,900,491.52

Provision for bad debts based on the general model of expected credit losses: Unit: Yuan

allowance for bad debtsPhase OnePhase TwoPhase Threetotal
Expected credit losses over the next 12 monthsExpected credit losses over the entire duration (no credit impairment has occurred)Expected credit losses over the entire duration (credit impairment has occurred)
Balance as of January 1, 2026154,410.2032,976.66296,830,082.51297,017,469.37
The balance as of January 1, 2026, is in the current period
Accrued in current period0.00
Reversal in current period554,041.03554,041.03
Other changes-1,236,548.61-1,236,548.61
Balance as of June 30, 2026154,410.2032,976.66295,039,492.87295,226,879.73

Basis for stage division and provision ratio for bad debt reserves Changes in book balance of significant amounts in loss provisions during the current period □ Applicable Not Applicable

4) Provision for bad debts accrued, recovered, or reversed in the current period

Provision for bad debts in the current period:

Unit: Yuan

CategoryOpening balanceCurrent period change amountClosing balance
accrueWithdraw or reverseResale or write-offOther
Provision for bad debts on an individual basis296,662,485.14554,041.03-1,236,548.61294,871,895.50
Provision for bad debts based on portfolio354,984.23354,984.23
total297,017,469.370.00554,041.030.00-1,236,548.61295,226,879.73

For those with significant amounts of bad debt provision reversed or recovered in the current period:

Unit: Yuan

Unit NameRecovered or reversed amountReason for reversalCollection methodBasis for determining the original provision ratio for bad debts andits reasonableness

5) Other receivables with the top five ending balances, categorized by debtors

Unit: Yuan

Unit NameThe nature of the paymentClosing balanceagingProportion of total ending balance of other receivablesClosing balance of bad debt provision
Guangdong Jianbang Group (Huiyang) Industrial Co., LtdRelated party transactions843,296,961.67Within 1 year, 1-2 years, 2-3 years, and over 5 years82.29%102,965,447.05
Canada Great Wall (Vancouver) Co., LtdRelated party transactions89,035,748.07More than 5 years8.69%89,035,748.07
Baili Co., LtdRelated party transactions19,051,233.49More than 5 years1.86%19,051,233.49
Parker Tonneau Australia Pty LtdRelated party transactions12,559,290.58More than 5 years1.23%12,559,290.58
Guangdong Huizhou Luofu Mountain Mineral Water Beverage Co., LtdRelated party transactions10,465,168.81More than 5 years1.02%10,465,168.81
total974,408,402.6295.09%234,076,888.00

7. Prepayments

(1) Prepayments are presented by aging

Unit: Yuan

agingClosing balanceOpening balance
AmountproportionAmountproportion
within one year19,072.9396.12%30,809.8397.54%
1 to 2 years0.00%0.000.00%
2 to 3 years0.00%0.000.00%
More than 3 years770.013.88%778.622.46%
total19,842.9431,588.45

Explanation for the reasons why prepayments with an account age exceeding 1 year and significant amounts have not been settled in a timely manner:

(2) Prepayments of the top five ending balances categorized by prepayment objects

Unit: yuan

Unit Namebook balancePrepaid expenses
Ratio of balance (%)
China Telecom Co., Ltd. ShenzhenBranch15,072.9375.96%
Shenzhen ShunYiTong Information Technology Co., Ltd4,000.0020.16%
Shenzhen Shentou International Tourism Development Co., Ltd220.011.11%
Other550.002.77%
Subtotal19,842.94100.00%

Other notes:

8. Inventory

Does the company need to comply with the disclosure requirements of the real estate industry is

(1) Inventory classification

The company is required to comply with the disclosure requirements for the "Real Estate Industry" as stipulated in the "Shenzhen Stock Exchange Listed Companies Self-regulatory Guidelines No. 3 - Industry Information Disclosure" Classified by nature:

Unit: Yuan

projectClosing balanceOpening balance
book balanceProvision for inventory depreciation or impairment of contract performance costsbook valuebook balanceProvision for inventory depreciation or impairment of contract performance costsbook value
development cost28,291,908.1128,291,908.1128,291,908.110.0028,291,908.11
develop products679,864,154.3554,580,338.25625,283,816.101,125,583,917.8354,580,338.251,071,003,579.58
Raw materials0.000.00
Inventory Goods103,486.9038,891.9164,594.99103,023.4738,891.9164,131.56
total708,259,549.3654,619,230.16653,640,319.201,153,978,849.4154,619,230.161,099,359,619.25

Disclose the main items of "development costs" and their capitalization of interest in the following format: Unit: Yuan

Project NameCommencement timeEstimated completion dateEstimated total investmentOpening balanceTransferred to development products in this periodOther decreases in the current periodIncrease in current period (development costs)Closing balanceAccumulated amount of capitalized interestIncluding: capitalized interest amount for the current periodsource of funds
Shantou28,291,908.1128,291,908.11Other
XinfengBuilding
total28,291,908.1128,291,908.11

Disclose the main project information of "development products" according to the following format:

Unit: Yuan

Project NameCompletion timeOpening balanceIncrease in this periodDecrease in current periodClosing balanceAccumulated amount of capitalized interestAmong them: capitalized amount of interest for the current period
Tianyue Bay Phase IIJune 30, 2021413,464,613.485,426,526.3529,457,255.44389,433,884.39
Tianyue Bay Phase IDecember 15, 2017184,712,889.982,879,477.25181,833,412.73
Multi-level apartment at Haitian Pavilion, Jinye IslandSeptember 16, 199740,000,494.3540,000,494.35
Deep House and Emerald Forest GardenMay 8th, 20188,513,102.378,513,102.370.00
Yuejing Dongfang ProjectNovember 18, 20146,121,027.076,121,027.07
Phase 10 of Jinye IslandDecember 2, 20105,698,558.255,698,558.25
Phase 11 of Jinye IslandAugust 20, 20082,239,010.522,239,010.52
Beijing Xinfeng Building304,557.05304,557.05
Huangpu New Estate140,000.00140,000.00
In the bright light of the deep roomNovember 29, 2024464,389,664.7619,383,625.95429,680,080.7254,093,209.99289,401.37
total1,125,583,917.8324,810,152.30470,529,915.78679,864,154.35289,401.370.00

Disclose the "installment collection of development products", "rental development products", and "turnover housing" by item in the following format: Unit: Yuan

Project NameOpening balanceIncrease in this periodDecrease in this periodClosing balance

(2) Provision for inventory depreciation and impairment provision for contract performance costs

Disclose the provision for inventory depreciation reserves in the following format:

Classified by nature:

Unit: Yuan

projectOpening balanceIncreased amount in this periodAmount reduced in this periodClosing balanceRemark
accrueOtherReversal or write-offOther
development cost0.00
develop products54,580,338.2554,580,338.25
Inventory Goods38,891.9138,891.91
total54,619,230.1654,619,230.16

Classified by major projects: Unit: Yuan

Project NameOpening balanceIncreased amount in this periodAmount reduced in this periodClosing balanceRemark
accrueOtherReversal or write-offOther

(3) Interest capitalization rate in the ending balance of inventory

As of June 30, 2026, the amount of capitalized borrowing costs included in the inventory balance of the Group was RMB 289,401.37.

9. Other current assets

Unit: Yuan

projectClosing balanceOpening balance
Pay additional or prepaid income tax1,051,054.281,310,041.90
Prepaid value-added tax amount21,523,623.3835,023,855.49
Input tax to be deducted1,821,677.73407,250.18
Land Value Increment Tax28,840,880.1727,906,656.73
Prepay urban construction tax and surcharges0.001,431,668.71
Other0.0053,992.23
total53,237,235.5666,133,465.24

Information related to compensatory assets

Other notes:

10. Other equity instrument investments

Unit: Yuan

ProjectOpeningGains recognizedLosses recognizedGains accumulateLosses accumulateDividend incomeClosingReasons for designating
Namebalancein other comprehensive income in the current periodin other comprehensive income in the current periodd in other comprehensive income at the end of the periodd in other comprehensive income at the end of the periodrecognized in the current periodbalanceitems as measured at fair value with changes recognized in other comprehensive income
Shantou Small and Medium Enterprise Financing Guarantee Co., Ltd14,571,511.81-2,841,991.4211,729,520.39
total14,571,511.81-2,841,991.4211,729,520.39

There is derecognition in the current period Unit: Yuan

Project NameAccumulated gains transferred to retained earningsAccumulated losses transferred to retained earningsReason for derecognition

Disclose the non-trading equity instrument investments for the current period by item Unit: Yuan

Project NameConfirmed dividend incomeAccumulated gainsAccumulated lossThe amount transferred from other comprehensive income to retained earningsReasons for being designated as measured at fair value with changes recognized in other comprehensive incomeReasons for transferring other comprehensive income to retained earnings

Other notes:

11. Long-term equity investment

Unit: Yuan

Invested entityOpening balance (book value)Opening balance of impairment provisionChanges in the current periodClosing balance (book value)Closing balance of impairment provision
Additional investmentReduce investmentInvestment gains and losses recognized under theequity methodAdjustment to other comprehensive incomeChanges in other equityAnnounce the distribution of cash dividends or profitsProvision for impairmentOther
1. Joint venture
Guang dong Huizhou Luofu Mountain Mineral Water Beverage Co., Ltd9,969,206.099,969,206.099,969,206.099,969,206.09
Fengkai Xinghua Hotel9,455,465.389,455,465.389,455,465.389,455,465.38
Subtotal19,424,671.4719,424,671.4719,424,671.4719,424,671.47
II. Associated enterprises
Shenzhen Ronghua Electromechanical Engineering Co., Ltd1,076,954.641,076,954.641,076,954.641,076,954.64
Shenzhen Runhua Automobile Trading Company1,445,425.561,445,425.561,445,425.561,445,425.56
Dongyi Real Estate Co., Ltd30,376,084.8930,376,084.8930,376,084.8930,376,084.89
Subtotal32,898,465.0932,898,465.0932,898,465.0932,898,465.09
total52,323,136.552,323,136.552,323,136.552,323,136.5
6666

The recoverable amount is determined by the net amount after deducting disposal expenses from the fair value

□ Applicable Not Applicable

The recoverable amount is determined based on the present value of estimated future cash flows

□ Applicable Not Applicable

The reasons for the significant inconsistency between the aforementioned information and the information or external information used in previous annual impairment tests

The reasons for the significant discrepancies between the information used in the company's previous annual impairment tests and the actual situation of the current year

Other instructions

12. Investment real estate

(1) Investment properties measured using the cost model

Applicable □ Not applicable

Unit: Yuan

projectHouses and buildingsland use rightconstruction in progresstotal
1. Original book value
1. Opening balance1,074,585,741.12108,339,610.721,182,925,351.84
2. Increased amount in this period429,680,080.72429,680,080.72
(1) Outsourcing0.00
(2) Transfer-in of inventory, fixed assets, and projects under construction429,680,080.72429,680,080.72
(3) Increase due to business combination0.00
(4) Others (Exchange rate fluctuations)0.00
3. Amount reduced in this period5,169,411.333,256,908.688,426,320.01
(1) Disposal2,795,100.602,795,100.60
(2) Other transfers out0.00
(3) Others (Exchange rate fluctuations)2,374,310.733,256,908.685,631,219.41
4. Ending balance1,499,096,410.51105,082,702.041,604,179,112.55
II. Accumulated depreciation and accumulated amortization
1. Openingbalance557,323,389.37557,323,389.37
2. Increased amount in current period12,806,788.1112,806,788.11
(1) Accrual or amortization12,806,788.1112,806,788.11
(2) Others (Exchange rate changes)0.00
3. Amount reduced in the current period3,764,926.763,764,926.76
(1) Disposal2,081,291.002,081,291.00
(2) Other transfers out0.00
(3) Others (Exchange rate changes)1,683,635.761,683,635.76
4. Ending balance566,365,250.72566,365,250.72
III. Impairment provision0.00
1. Opening balance14,047,929.5988,919,373.71102,967,303.30
2. Increased amount in this period0.00
(1) Accrual0.00
(2) Others (Exchange rate changes)0.00
3. Amount reduced in the current period2,673,096.932,673,096.93
(1) Disposition0.00
(2) Other transfers-out0.00
(3) Others (Exchange rate fluctuations)2,673,096.932,673,096.93
4. Ending balance14,047,929.5986,246,276.78100,294,206.37
IV. Book value0.00
1. End-of-period book value918,683,230.2018,836,425.26937,519,655.46
2. Opening book value503,214,422.1619,420,237.01522,634,659.17

The recoverable amount is determined by the net amount after deducting disposal expenses from the fair value □ Applicable Not Applicable The recoverable amount is determined based on the present value of estimated future cash flows □ Applicable Not Applicable

The reasons for the significant inconsistencies between the aforementioned information and the information or external data used in previous annual impairment tests

The reasons for the significant discrepancies between the information used in the company's previous annual impairment tests and the actual situation of the current year

Other notes:

13. Fixed assets

Unit: Yuan

projectClosing balanceOpening balance
Fixed assets13,578,063.3314,949,900.45
total13,578,063.3314,949,900.45

(1) Fixed assets

Unit: Yuan

projectHouses and buildingstransportation equipmentElectronic equipment and otherstotal
1. Original book value:
1. Opening balance99,635,904.767,154,488.618,454,075.76115,244,469.13
2. Increased amount in this period47,198.0547,198.05
(1) Acquisition47,198.0547,198.05
(2) Transfer-in of projects under construction
(3) Increase due to business combination
3. Amount reduced in the current period80,402.2280,402.22
(1) Disposal or scrapping57,210.4957,210.49
(2) Other decreases23,191.7323,191.73
4. Ending balance99,635,904.767,154,488.618,420,871.59115,211,264.96
II. Accumulated depreciation
1. Opening balance87,812,935.925,986,756.726,494,876.04100,294,568.68
2. Increased amount in this period1,065,596.76118,452.90232,798.321,416,847.98
(1) Accrual1,065,596.76118,452.90232,798.321,416,847.98
3. Amount reduced in this period78,215.0378,215.03
(1) Disposal or scrapping55,023.3055,023.30
(2) Other decreases23,191.7323,191.73
4. Ending balance88,878,532.686,105,209.626,649,459.33101,633,201.63
III. Provision for impairment
1. Opening balance
2. Increased amount in this period
(1) Accrual
3. Amount reduced in the current period
(1) Disposal or scrapping
4. Closing balance
IV. Book value
1. End-of-period book value10,757,372.081,049,278.991,771,412.2613,578,063.33
2. Opening book value11,822,968.841,167,731.891,959,199.7214,949,900.45

(2) Impairment test of fixed assets

□ Applicable Not applicable

14. Construction in progress

Unit: Yuan

projectClosing balanceOpening balance
construction in progress571,822.67
total0.00571,822.67

(1) Status of projects under construction

Unit: Yuan

projectClosing balanceOpening balance
book balanceprovision for impairmentbook valuebook balanceprovision for impairmentbook value
Restoration and renovation project of the heliport at Shenfang Square398,222.670.00398,222.67
Renovation and upgrading project of elevators in the atrium of the podiumbuilding at Shenfang Plaza173,600.000.00173,600.00
total571,822.670.00571,822.67

(2) Impairment test of projects under construction

□ Applicable Not Applicable

15. Intangible assets

(1) Intangible assets

Unit: Yuan

projectland use rightpatent rightNon-patented technologysoftwaretotal
1. Original book value
1. Opening balance2,192,000.002,192,000.00
2. Increased amount in current period
(1) Purchase
(2) Internal research and development
(3) Increase due to business combination
3. Amount reduced in this period
(1) Disposal
4. Ending balance2,192,000.002,192,000.00
II. Accumulated amortization
1. Opening balance2,192,000.002,192,000.00
2. Increased amount in this period
(1) Accrual
3. Amount reduced in the current period
(1) Disposal
4. Ending balance2,192,000.002,192,000.00
III. Impairment provision
1. Opening balance
2. Increased amount in this period
(1) Accrual
3. Amount reduced in this period
(1) Disposal
4. Ending balance
IV. Book value
1. End-of-period book value
2. Opening book value

The proportion of intangible assets formed through internal research and development in the balance of intangible assets at the end of the period is 0.00%

(2) Impairment test of intangible assets

□ Applicable Not applicable

16. Long-term deferred expenses

Unit: Yuan

projectOpening balanceIncreased amount in this periodAmortization amount for the current periodOther reductions in amountClosing balance
Renovation costs1,615,683.921,622,045.41531,186.812,706,542.52
total1,615,683.921,622,045.41531,186.812,706,542.52

Other instructions

17. Deferred tax assets/deferred tax liabilities

(1) Deferred tax assets not offset

Unit: Yuan

projectClosing balanceOpening balance
Deductible temporary differenceDeferred tax assetsDeductible temporary differenceDeferred tax assets
Asset impairment provision17,373,070.564,343,267.6417,373,070.564,343,267.64
Deductible loss8,289,185.762,072,296.449,058,968.762,264,742.19
total25,662,256.326,415,564.0826,432,039.326,608,009.83

(2) Deferred income tax liabilities not offset

Unit: Yuan

projectClosing balanceOpening balance
Taxable temporary differenceDeferred tax liabilitiesTaxable temporary differenceDeferred income tax liabilities
Changes in fair value of other equity instrument investments2,571,511.84642,877.962,571,511.84642,877.96
Unfired interest2,778,907.00694,726.752,778,907.00694,726.75
total5,350,418.841,337,604.715,350,418.841,337,604.71

(3) Deferred tax assets or liabilities presented at net amount after offsetting

Unit: Yuan

projectClosing offset amount of deferred tax assets and liabilitiesClosing balance of deferred tax assets or liabilities after offsettingOpening offset amount of deferred tax assets and liabilitiesOpening balance of deferred tax assets or liabilities after offsetting
Deferred tax assets6,415,564.08469,690.216,138,319.62
Deferred tax liabilities1,337,604.71469,690.21867,914.50

(4) Details of unrecognized deferred tax assets

Unit: Yuan

projectClosing balanceOpening balance
Deductible temporary difference1,176,975,484.481,176,975,484.48
Deductible loss141,671,346.86142,018,237.92
total1,318,646,831.341,318,993,722.40

(5) The deductible losses of unrecognized deferred tax assets will expire in the following years

Unit: Yuan

yearfinal amountOpening BalanceRemark
2026346,891.06
202748,904,614.3848,904,614.38
202818,354,716.2418,354,716.24
202924,953,841.5124,953,841.51
203049,458,174.7349,458,174.73
2031
total141,671,346.86142,018,237.92

Other instructions

18. Assets with restricted ownership or use rights

Unit: Yuan

projectfinalbeginning of period
book balancebook valueRestricted typeLimited circumstancesbook balancebook valueRestricted typeConstrained situations
Monetary Funds16,132.4016,132.40fund supervisionFunds in the special account for migrant workers5,674,439.785,674,439.78detainConstruction Funds for Public Facilities Projects within and Surrounding the Urban Renewal Project in Longgang District, Shenzhen
Monetary Funds2,201,283.572,201,283.57freezeLitigation freezefreezeLitigation freeze
Monetary Funds50,000.0050,000.00detainConstruction security deposit50,154.1950,154.19detainConstruction deposit
Monetary Funds70,010.2070,010.20detainStop payment, suspend account70,010.2070,010.20detainStop payment, suspend account
accounts receivable7,651,398.787,651,398.78stakingPledge of short-term loan7,379,890.157,158,493.45stakingPledge of short-term loan
total9,988,824.959,988,824.9513,174,494.3212,953,097.62

Other notes:

19. Short-term borrowings

(1) Classification of short-term loans

Unit: Yuan

projectClosing balanceOpening balance
Accounts receivable factoring1,065,508.6350,000.00
total1,065,508.6350,000.00

Explanation of classification of short-term loans:

20. Accounts payable

(1) Presentation of accounts payable

Unit: Yuan

projectClosing balanceOpening balance
construction payment168,578,885.71171,738,333.04
total168,578,885.71171,738,333.04

(2) Important accounts payable with an aging of over 1 year or overdue

Unit: Yuan

projectClosing balanceReasons for non-repayment or carry-over
Shenzhen Guangming Construction Engineering No.1 Construction Engineering Co., Ltd66,975,438.51Not settled yet
Shenzhen Municipal Engineering Corporation16,073,112.33Not settled yet
total83,048,550.84

Other notes:

21. Other payables

Unit: Yuan

projectClosing balanceOpening balance
Interest payable16,535,277.9416,535,277.94
Dividends payable0.000.00
Other payables102,541,729.28127,745,131.22
total119,077,007.22144,280,409.16

(1) Interest payable

Unit: Yuan

projectClosing balanceOpening balance
Interest on borrowings from non-financial institutions (interest payable to the parent company)16,535,277.9416,535,277.94
total16,535,277.9416,535,277.94

Important overdue and unpaid interest: Unit: Yuan

Borrowing entityoverdue amountReason for Delay
Shenzhen Investment Holding Co., Ltd16,535,277.94Postpone payment
total16,535,277.94

Other notes:

Unit: Yuan

(2) Other payables

1) List other payables by nature of payment

Unit: Yuan

projectClosing balanceOpening balance
Non-related party transactions18,375,108.8726,581,817.09
Related party transactions9,065,673.979,065,673.97
deposit25,247,983.8823,487,225.44
Other49,852,962.5668,610,414.72
total102,541,729.28127,745,131.22

22. Advance receipts

(1) Presentation of advance receipts

Unit: Yuan

projectClosing balanceOpening balance
rent3,417,122.84722,042.14
total3,417,122.84722,042.14

23. Contract liabilities

projectClosing balanceOpening balance
Advance receipts from housing sales17,207,929.3415,710,437.24
Advance receipts for engineering projects8,115,281.04
Other4,218,370.694,574,940.92
total21,426,300.0328,400,659.20

Significant contractual liabilities with an aging of over 1 year

Unit: Yuan

projectClosing balanceReasons for non-repayment or carry-over

The amount and reasons for significant changes in book value during the reporting period

Unit: Yuan

projectChange in amountReason for change

The company must comply with the disclosure requirements for the "Real Estate Industry" as stipulated in the "Shenzhen Stock Exchange Listed Companies Self-regulatory Guidelines No. 3 - Industry Information Disclosure"

Collection information for the top five projects based on pre-sale amount:

Unit: Yuan

Serial numberProject NameOpening balanceClosing balanceEstimated completion datePre-sale ratio

24. Payroll payable

(1) Presentation of payroll payable

Unit: Yuan

projectOpening balanceIncrease in this periodDecrease in current periodClosing balance
1. Short-term compensation29,667,810.0827,005,481.6227,171,750.0129,501,541.69
II. Post-employment benefits - defined contribution plans1,838.804,420,223.654,420,223.651,838.80
III. Dismissal benefits3,087,694.0031,625.002,356,381.00762,938.00
total32,757,342.8831,457,330.2733,948,354.6630,266,318.49

(2) Presentation of short-term compensation

Unit: Yuan

projectOpening balanceIncrease in this periodDecrease in this periodClosing balance
1. Salary, bonus, allowance and subsidy29,550,437.5222,102,472.9622,244,877.8129,408,032.67
2. Employee welfare expenses0.001,001,147.801,001,147.800.00
3. Social insurance premiums0.001,271,268.811,271,268.810.00
Among them: medical insurance premiums0.001,094,895.111,094,895.110.00
work-related injury insurance premium0.0089,905.6389,905.630.00
Maternity Insurance Premium0.0086,468.0786,468.070.00
4. Housing provident fund0.002,175,518.372,175,518.370.00
5. Labor union expenditure and employee education expenditure117,372.56455,073.68478,937.2293,509.02
6. Short-term paid absence0.000.00
total29,667,810.0827,005,481.6227,171,750.0129,501,541.69

(3) Presentation of defined contribution plans

Unit: Yuan

projectOpening balanceIncrease in this periodDecrease in this periodClosing balance
1. Basic endowment insurance2,884,390.222,884,390.22
2. Unemployment insurance premium159,605.75159,605.75
3. Enterprise annuity contribution1,838.801,376,227.681,376,227.681,838.80
total1,838.804,420,223.654,420,223.651,838.80

Other instructions

25. Taxes payable

Unit: Yuan

projectClosing balanceOpening balance
Value-added tax1,097,045.85937,306.31
corporate income tax5,055,003.3116,169,391.23
individual income tax336,254.382,139,885.12
Urban maintenance and construction tax1,489,975.591,336,686.83
Land Value Increment Tax4,646,137.484,645,184.15
property tax4,985,855.12537,531.44
Education Surcharge639,984.87577,466.85
Local education surcharge414,204.17368,675.16
Other162,381.33209,955.49
total18,826,842.1026,922,082.58

Other instructions

26. Other current liabilities

Unit: Yuan

projectClosing balanceOpening balance
Pending output tax to be written off467,449.67235,112.72
Accounts receivable factoring6,585,890.157,329,890.15
total7,053,339.827,565,002.87

Increase and decrease of short-term bonds payable: Unit: Yuan

Bond namedenominationCoupon rateRelease DateBond TenureIssuance amountOpening balanceIssued in this issueAccruv interest at par valueAmortization of excess/discountRepayment in this installmentClosing balanceIs there a breach of contract
total

Other notes:

27. Share capital

Unit: Yuan

OpeningIncrease or decrease in this change (+,-)Closing
balanceIssue new sharesbonus shareConvert housing provident fund into sharesOtherSubtotalbalance
Total number of shares1,011,660,000.001,011,660,000.00

Other notes:

28. Capital reserves

Unit: Yuan

projectOpening balanceIncrease in this periodDecrease in this periodClosing balance
Capital surplus (share premium)557,433,036.93557,433,036.93
Other capital reserves420,811,873.18420,811,873.18
total978,244,910.11978,244,910.11

Other explanations, including changes in the current period and explanations for the reasons for such changes:

29. Other comprehensive income

Unit: Yuan

projectOpening balancecurrent period amountClosing balance
Amount incurred before income tax in the current periodLess: Transfer from other comprehensive income to profit and loss in the current periodLess: Amount previously recognized in other comprehensive income and transferred to retained earnings in the current periodLess: Income tax expenseAfter-tax attributable to the parent companyAfter-tax attributable to minority shareholders
1. Other comprehensive income that cannot be reclassified into profit and loss2,344,838.10-2,841,991.420.000.000.00-2,841,991.420.00-497,153.32
Changes in fair value of other equity instrument investments2,344,838.10-2,841,991.42-2,841,991.42-497,153.32
II. Other comprehensive income reclassified into profit and loss20,970,277.4210,607,567.510.000.000.008,944,515.791,663,051.7229,914,793.21
Translation difference in foreign currency financial statements20,970,277.4210,607,567.518,944,515.791,663,051.7229,914,793.21
Total other comprehensive income23,315,115.527,765,576.090.000.000.006,102,524.371,663,051.7229,417,639.89

Other explanations, including the adjustment of the initial recognized amount of the hedged item resulting from the conversion of the effective portion of the cash flow hedging gains and losses:

30. Surplus reserve

Unit: Yuan Explanation of surplus reserves, including changes in the current period and explanations for the reasons for such changes:

projectOpening balanceIncrease in this periodDecrease in this periodClosing balance
Statutory surplus reserve275,253,729.26275,253,729.26
total275,253,729.26275,253,729.26

31. Undistributed profit

Unit: Yuan

projectthis issueprevious issue
Undistributed profit at the end of the previous period before adjustment1,323,849,441.491,223,893,437.74
Adjust the beginning undistributed profit in the later period1,323,849,441.491,223,893,437.74
Plus: Net profit attributable to the owners of the parent company for the current period-8,560,110.26103,027,646.42
Payable common stock dividends35,408,100.00
Undistributed profit at the end of the period1,279,881,231.231,326,921,084.16

Adjusted beginning undistributed profit details: Due to the retroactive adjustments made to the "Accounting Standards for Business Enterprises" and its related new regulations, the beginning undistributed profit was affected by RMB 0.00. 2) Due to changes in accounting policies, the beginning undistributed profit was affected by RMB 0.00. 3) Due to the correction of significant accounting errors, the beginning undistributed profit was affected by RMB 0.00. 4) Due to changes in the consolidation scope resulting from the same control, the beginning undistributed profit was affected by

0.00 yuan.

5) The total impact of other adjustments on the beginning undistributed profit is 0.00 yuan.

Detailed explanation of using capital reserves to cover losses:

32. Operating income and operating costs

Unit: Yuan

projectcurrent period amountprevious period amount
incomecostincomecost
main business144,879,781.19121,947,149.35633,729,460.42462,450,321.86
Other businesses4,377,171.851,865,565.323,636,760.931,267,668.76
total149,256,953.04123,812,714.67637,366,221.35463,717,990.62

Decomposition information of operating income and operating costs: Unit: Yuan

Contract ClassificationSection 1Section 2total
Operating RevenueCost of goods soldOperating RevenueCost of goods soldOperating RevenueCost of goods soldOperating RevenueCost of goods sold
Business Type
among which
Classified by business region
Among them:
Market or customer type
Among them:
Contract Type
Among them:
Classified by the time of commodity transfer
Among them:
Classification by contract duration
Among them:
Classified by sales channels
Among them:
total

Information related to performance obligations:

projectThe time for fulfilling the performance obligationImportant payment termsThe nature of the goods promised to be transferred by the companyIs it the primary responsible personThe amount that the company anticipates will be refunded to customersThe type of quality assurance provided by the company and related obligations

Other instructions

Information related to the transaction price allocated to the remaining performance obligations:

The revenue amount corresponding to the performance obligations that have been contracted but not yet fulfilled or not fully fulfilled at the end of this reporting period is RMB 146,349,196.60. Among them, RMB 42,877,997.17 is expected to be recognized as revenue in 2026, RMB 51,606,583.28 is expected to be recognized as revenue in 2027, and RMB 51,864,616.19 is expected to be recognized as revenue in 2028.

Relevant information on variable consideration in the contract:

Significant contract modifications or substantial transaction price adjustments

Unit: Yuan

projectAccounting treatment methodThe amount of impact on income

Other instructions

The company must comply with the disclosure requirements for the "Real Estate Industry" as stipulated in the "Shenzhen Stock Exchange Listed Companies Self-regulatory Guidelines No. 3 - Industry Information Disclosure"

Information on the top five projects with confirmed revenue amounts during the reporting period:

Unit: Yuan

Serial numberProject Nameincome amount
1Tianyue Bay Phase II31,747,234.89
2Cui Lin Yuan12,470,285.73
3Shenfang Square4,549,393.58
4Tianyue Bay Phase I3,600,905.72

33. Taxes and surcharges

Unit: Yuan

projectcurrent period amountprevious period amount
consumption tax0.000.00
Urban maintenance and construction tax539,317.304,144,830.19
Education Surcharge236,278.821,776,669.74
resource tax0.000.00
property tax4,738,435.684,768,158.41
Land use tax105,256.22271,873.96
Vehicle and vessel use tax660.00960.00
stamp duty94,909.8058,163.90
Land Value Increment Tax1,068,668.672,849,850.98
Local education surcharge154,893.111,185,178.70
Other taxes and fees456,597.73506,322.00
total7,395,017.3315,562,007.88

Other notes:

34. Management expenses

Unit: Yuan

projectcurrent period amountprevious period amount
employee compensation23,309,343.6624,927,288.22
Intermediary agency fee662,967.931,209,357.11
litigation costs27,040.762,954,044.71
Business entertainment expenses13,038.41103,909.17
depreciation expense1,575,069.111,504,235.97
office expenses203,522.08213,586.59
repair cost46,135.8952,743.99
Travel expenses12,017.7028,848.79
Other amortization expenses67,700.164,248.82
utility bill137,844.84194,412.02
Other1,057,992.22982,713.60
total27,112,672.7632,175,388.99

Other instructions

35. Sales expenses

Unit: Yuan

projectcurrent period amountprevious period amount
Sales agency fees and commissions1,201,116.963,010,956.72
employee compensation1,937,722.532,408,841.45
property management fee354,478.69285,730.36
business expenses7,493.00160,856.24
advertising fee1,091,393.971,558,393.61
Other1,773,861.782,283,933.55
total6,366,066.939,708,711.93

Other notes:

36. Financial expenses

projectcurrent period amountprevious period amount
interest expense2,788,711.79
Less: Interest income925,667.622,154,378.05
exchange gain or loss1,212,747.58504,473.51
handling fee83,261.9774,499.37
total370,341.931,213,306.62

Other instructions

37. Other income

Unit: Yuan

Sources of generating other incomecurrent period amountprevious period amount
Refund of handling fee for withholding individual income tax52,026.6431,652.46
Government subsidies related to earnings2,000.00

38. Gain from changes in fair value

Unit: Yuan

The source of income from changes in fair valuecurrent period amountprevious period amount
Trading financial assets7,069,256.298,662,388.50
total7,069,256.298,662,388.50

Other notes:

39. Investment income

Unit: Yuan

projectcurrent period amountprevious period amount
Investment income generated from disposal of long-term equity investments66,265.2399,669.36
Dividend income earned from other equity instrument investments during the holding period
total66,265.2399,669.36

Other instructions

40. Credit impairment loss

Unit: Yuan

projectcurrent period amountprevious period amount
Bad debt losses on accounts receivable-75,507.93
Bad debt losses on other receivables554,041.03-2,275.00
total554,041.03-77,782.93

Other instructions

41. Asset impairment loss

Unit: Yuan

projectcurrent period amountprevious period amount
XI. Impairment loss on contract assets-15,230.21
total0.00-15,230.21

Other notes:

42. Income from asset disposal

Unit: Yuan

The source of asset disposal incomecurrent period amountprevious period amount
Gain on disposal of fixed assets357.10

43. Non-operating income

Unit: Yuan

projectcurrent period amountprevious period amountAmount included in non-recurring profit and loss for the current period
Other491.2720,130.74491.27
total491.2720,130.74491.27

Other notes:

44. Non-operating expenses

Unit: Yuan

projectcurrent period amountprevious period amountAmount included in non-recurring profit and loss for the current period
Losses on destruction and scrapping of non-current assets1,744.291,634.141,744.29
total1,744.291,634.141,744.29

Other notes:

45. Income tax expense

(1) Income tax expense statement

Unit: Yuan

projectcurrent period amountprevious period amount
Current income tax expense758,055.7020,343,093.32
Deferred income tax expense192,445.751,153,045.36
total950,501.4521,496,138.68

(2) Adjustment process of accounting profit and income tax expense

Unit: Yuan

projectcurrent period amount
Total Profit-8,057,167.31
Income tax expense calculated at statutory/applicable tax rate-2,014,291.83
The impact of applying different tax rates to subsidiaries-96,426.00
Adjust the impact of income tax from previous periods1,293,905.20
Impact of non-taxable income1,767,314.07
Income tax expense950,501.45

Other instructions

46. Other comprehensive income

See Note 29 for details

47. Items in the cash flow statement

(1) Cash related to operating activities

Cash received from other sources related to operating activities

Unit: Yuan

projectcurrent period amountprevious period amount
interest income925,667.622,175,358.84
Accounts receivable and payable, and others17,889,883.06118,487,474.89
total18,815,550.68120,662,833.73

Explanation of other cash received related to operating activities:

Cash paid for other activities related to operating activities

Unit: Yuan

projectcurrent period amountprevious period amount
Financial expenses - handling fees83,261.9774,499.37
Cash operating expenses11,085,040.6215,509,077.29
Accounts receivable and payable, and others6,480,235.55138,539,485.45
total17,648,538.14154,123,062.11

Explanation of other cash payments related to operating activities:

(2) Cash related to investing activities

Cash received from other sources related to investing activities

Unit: Yuan

projectcurrent period amountprevious period amount
total0.000.00

Cash received that is significant and related to investing activities Unit: Yuan

projectcurrent period amountprevious period amount

Explanation of other cash received related to investing activities:

Cash paid for other investment-related activities

Unit: Yuan

projectcurrent period amountprevious period amount
Purchase money market fund110,000,000.00
total0.00110,000,000.00

Cash paid for important investment-related activities Unit: Yuan

projectcurrent period amountprevious period amount

Explanation of cash paid for other investment-related activities:

(3) Cash related to financing activities

Cash received from other financing-related activities

Unit: Yuan

projectcurrent period amountprevious period amount
total0.000.00

Explanation of other cash received related to financing activities:

Cash paid for other financing-related activities

Unit: Yuan

projectcurrent period amountprevious period amount
total0.000.00

Explanation of other cash payments related to financing activities: Changes in various liabilities arising from fundraising activities □ Applicable Not Applicable

(4) Explanation of presenting cash flows on a net basis

projectRelevant factual circumstancesBasis for adopting net presentationFinancial impact

(5) Significant activities and financial impacts that do not involve current cash receipts and payments but affect the financial position of the enterprise or may affect the enterprise's cash flows in the future

48. Supplementary Information to the Cash Flow Statement

(1) Supplementary information to the cash flow statement

Unit: Yuan

Supplementary materialsCurrent AmountPrevious Period Amount
1. Adjust net profit to cash flow from operating activities:
Net profit-9,007,668.76102,211,870.41
Plus: asset impairment provision-554,041.0393,013.14
Depreciation of fixed assets, depletion of oil and gas assets, and depreciation of productive biological assets14,223,636.0913,605,503.22
Depreciation of right-to-use assets
Amortization of intangible assets
Amortization of long-term deferred expenses531,186.81386,870.04
Losses on disposal of fixed assets, intangible assets, and other long-term assets (gains are indicated with a "-" sign)-357.10
Losses on disposal of fixed assets (gains are indicated with a "-" sign)1,744.291,634.14
Loss on changes in fair value (gains are indicated with a "-" sign)-7,069,256.29-8,662,388.50
Financial expenses (gains are indicated with a "-" sign)1,212,747.58504,473.51
Investment losses (gains are indicated with a "-" sign)-66,265.23-99,669.36
Decrease in deferred tax assets (increase is indicated by a "-" sign)-277,244.46-302,510.63
Increase in deferred tax liabilities (decrease is indicated by a "-" sign)469,690.21
Decrease in inventory (increase is indicated by a "-" sign)40,849,835.06454,142,123.69
Decrease in operating receivables (increase is indicated by a "-" sign)37,684,242.4926,902,502.38
Increase in operating payables (decrease is indicated by a "-" sign)-53,051,150.18-676,205,663.62
Other
Net cash flow from operating activities24,947,099.48-87,422,241.58
2. Significant investing and financing activities not involving cash receipts and payments:
Debt converted into capital
Convertible corporate bonds maturing within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash268,310,887.49288,498,978.06
Less: opening balance of cash278,891,920.87520,910,254.44
Plus: Closing balance of cash equivalents
Less: opening balance of cash
equivalents
Net increase in cash and cash equivalents-10,581,033.38-232,411,276.38

(2) Composition of cash and cash equivalents

Unit: Yuan

projectClosing balanceOpening balance
1. Cash268,310,887.49278,891,920.87
Among them: cash on hand17,651.0719,892.83
Bank deposits that can be used for payment at any time268,293,236.42278,872,028.04
III. Closing balance of cash and cash equivalents268,310,887.49278,891,920.87

(3) Monetary funds not classified as cash and cash equivalents

Unit: Yuan

projectCurrent AmountPrevious Period AmountReasons for not classifying as cash and cash equivalents
Monetary Funds5,817,217.78Construction funds for public facilities projects within and surrounding the urban renewal project in Longgang District, Shenzhen; land reclamation costs for the Shenfang Guangmingli project
Monetary Funds16,132.40Funds in the special account for migrant workers
Monetary Funds2,201,283.5758,428.69Litigation freeze
Monetary Funds50,000.0050,000.00Construction deposit
Monetary Funds70,010.20158,549.08Stop payment, suspend account
total2,337,426.176,084,195.55

Other notes:

49. Foreign currency monetary items

(1) Foreign currency monetary items

Unit: Yuan

projectClosing balance in foreign currencyconversion exchange rateYear-end converted RMB balance
Monetary Funds
Among them: US dollar12,084.056.817582,382.56
euro
Hong Kong Dollar4,905,150.100.86924,263,556.47
accounts receivable
Among them: US dollar
euro
Hong Kong Dollar
long-term loans
Among them: US dollar
euro
Hong Kong Dollar
Other receivables
Among them: US dollar
euro
Hong Kong Dollar20,692,378.860.869217,985,815.71
Other payables
Among them: US dollar733,761.876.81755,002,421.55
euro
Hong Kong Dollar18,623,481.770.869216,187,530.35

Other notes:

(2) The nature of the lack of currency convertibility and its financial impact, the spot exchange rate adopted and its estimation process, as well as the risks faced by the enterprise due to the lack of currency convertibility

□ Applicable Not Applicable

(3) Description of overseas operating entities, including for significant overseas operating entities, the main overseas operating locations, the functional currency, and the basis for selection should be disclosed. If there is a change in the functional currency, the reasons for the change should also be disclosed.

□ Applicable Not applicable

(4) The lack of convertibility between the functional currency of overseas operations and the presentation currency of the enterprise

□ Applicable Not Applicable

VIII. Research and development expenditure

Unit: Yuan

projectcurrent period amountprevious period amount

IX. Changes in the scope of consolidation

1. Business combination not under common control

(1) Business combinations not under common control that occurred in the current period

Unit: Yuan

Name of the purchased partyTime point of equity acquisitionCost of equity acquisitionEquity acquisition ratioMethod of equity acquisitionAcquisition DateBasis for determining the acquisition dateThe revenue of the acquiree from the acquisition date to the end of the periodNet profit of the acquiree from the acquisition date to the end of the periodCash flow of the acquiree from the acquisition date to the end of the period

Other notes:

(2) Merger cost and goodwill

Unit: Yuan

Merger cost
--Cash
--Fair value of non-cash assets
-- Fair value of debts issued or assumed
--Fair value of equity securities issued
-- Fair value of contingent consideration
-- The fair value of the equity held prior to the acquisition date on the acquisition date
--Others
Total merger cost
Less: fair value share of identifiable net assets acquired
The amount where the goodwill/combination cost is less than the fair value share of the identifiable net assets acquired

Method for determining the fair value of the merger cost:

Explanation of contingent consideration and its changes

The main reasons for the formation of significant goodwill are:

Other notes:

(3) Identifiable assets and liabilities of the acquiree on the acquisition date

Unit: Yuan

Fair value on acquisition dateBook value on the purchase date
Assets:
Monetary Funds
Receivablesinventory
Fixed assets
intangible assets
Liabilities:
loan
Accounts payable
Deferred tax liabilities
net assets
Less: minority shareholders' equity
Net assets acquired

Method for determining the fair value of identifiable assets and liabilities: Contingent liabilities assumed by the acquirer from the acquiree in a business combination:

Other notes:

(4) Gains or losses arising from the remeasurement of equity held prior to the acquisition date at fair value

Is there any transaction that achieves business combination step by step through multiple transactions and obtains control during the reporting period

□ Yes No

(5) Explanation on the inability to reasonably determine the merger consideration or the fair value of the identifiable assets and liabilities of the acquiree on the acquisition date or at the end of the current merger period

(6) Other descriptions

2. Business combination under common control

(1) Business combinations under common control that occurred in the current period

Unit: Yuan

Name of the merged partyThe proportion of equity acquired in a business combinationBasis for constituting business combinations under common controlMerger dateBasis for determining the merger dateConsolidate the revenue of the combined party from the beginning of the current period to the consolidation dateConsolidate the net profit of the combined party from the beginning of the current period to the consolidation dateIncome of the combined party during the comparison periodNet profit of the combined party during the comparison period

Other notes:

(2) Merger cost

Unit: Yuan

Merger cost
--Cash
--Book value of non-cash assets
--Book value of debts issued or assumed
--Par value of equity securities issued
-- Contingent consideration

Explanation of contingent consideration and its changes:

Other notes:

(3) The book value of the assets and liabilities of the combined party on the combination date

Unit: Yuan

Merger dateEnd of last period
Assets:
Monetary Funds
Receivables
inventory
Fixed assets
intangible assets
Liabilities:
loan
Accounts payable
net assets
Less: Minority shareholders' equity
Net assets acquired

Contingent liabilities assumed by the acquirer in a business combination: Other notes:

3. Reverse purchase

Basic transaction information, basis for the transaction constituting a reverse purchase, whether the assets and liabilities retained by the listed company constitute a business and the basis for this, determination of the merger cost, and the amount and calculation of equity adjustments when treated as equity transactions:

4. Disposal of subsidiaries

Is there any transaction or matter in the current period where control over a subsidiary has been lost

□ Yes No

Is there a situation where the investment in a subsidiary is disposed of step by step through multiple transactions and control is lost in the current period

□ Yes No

5. Changes in consolidation scope due to other reasons

Explain the changes in the consolidation scope caused by other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.) and their related circumstances:

6. Others

X. Equity in other entities

1. Equity in subsidiaries

(1) Composition of enterprise group

Unit: Yuan

subsidiary company nameregistered capitalMain business locationPlace of registrationNature of Businessshareholding ratioacquisition method
directlyindirect
Shenzhen Shenfang Group Longgang Development Co., Ltd30,000,000.00ShenzhenShenzhenreal estate95.00%5.00%establish
Great Wall Real Estate Co., Ltd. USA $500,000.00^1$ AmericaAmericareal estate70.00%establish
Shenzhen Haiyan Hotel Co., Ltd30,000,000.00ShenzhenShenzhenProperty leasing and management68.10%31.90%establish
Shenzhen Zhentong Engineering Co., Ltd10,000,000.00ShenzhenShenzhenconstruction73.00%27.00%establish
Shenzhen Huazhan Construction Supervision Co., Ltd8,000,000.00ShenzhenShenzhenconstruction75.00%25.00%establish
Shenzhen Lianhua Enterprise Co., Ltd10,000,000.00ShenzhenShenzhenconstruction95.00%5.00%establish
Xinfeng Enterprise Co., Ltd $500,000.00^2$ Hong KongHong KongInvestment, management100.00%establish
Shenzhen Shenfang Bonded Trading Co., Ltd5,000,000.00ShenzhenShenzhenimport and export trade95.00%5.00%establish
ShenzhenShenfang Investment Co., Ltd10,000,000.00ShenzhenShenzheninvestment90.00%10.00%establish
Beijing Xinfeng Real Estate Development and Operation Co., Ltd $10,000,000.00^3$ BeijingBeijingreal estate75.00%25.00%establish
Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd3,000.00ShenzhenShenzhenreal estate100.00%establish

Note: 1 US dollar

2 Hong Kong dollars

3 dollars

Explanation of the difference between the shareholding ratio and the voting right ratio in subsidiaries:

Not applicable.

The basis for holding half or less of the voting rights but still controlling the invested entity, and holding more than half of the voting rights but not controlling the invested entity:

Not applicable.

For significant structured entities included in the consolidation scope, the basis for control is as follows:

Not applicable.

The basis for determining whether a company is an agent or a principal:

Not applicable.

Other notes:

(1) The company has three subsidiaries that are included in the consolidation scope, which have been suspended for a long time and are in a status of revoked but not cancelled in the industrial and commercial registration. These subsidiaries are Guangzhou Huangpu Xincun Real Estate Development Co., Ltd., a secondary subsidiary held by Beijing Xinfeng Real Estate Development and Operation Co., Ltd., and Xinfeng Real Estate Development and Construction (Wuhan) Co., Ltd. These three subsidiaries are reported on a discontinued operations basis.

(2) Jianbang Company went bankrupt and liquidated on November 30, 2025, and was taken over by the bankruptcy administrator. Since that date, it has no longer been included in the consolidation scope.

(2) Important non-wholly-owned subsidiaries

Unit: Yuan

subsidiary companyShareholding ratio ofProfit and lossDividends declared andClosing balance of
nameminority shareholdersattributable to minority shareholders in the current perioddistributed to minority shareholders in the current periodminority shareholders' equity
Great Wall Real Estate Co., Ltd. USA30.00%-46,857.750.00-22,019,887.97
Xinfeng Investment Co., Ltd45.00%0.000.00-115,584,425.07
Bai Wei Real Estate Co., Ltd20.00%0.000.00-3,623,490.16

Explanation of the difference between the shareholding ratio and voting right ratio of minority shareholders in subsidiaries:

Not applicable.

Other notes:

Not applicable.

(3) Main financial information of significant non-wholly-owned subsidiaries Unit: Yuan

subsidiary company nameClosing balanceOpening balance
current assetsNon-current assetsTotal Assetscurrent liabilitiesNon-current liabilitiesTotal Liabilitiescurrent assetsNon-current assetsTotal Assetscurrent liabilitiesNon-current liabilitiesTotal Liabilities
Great Wall Real Estate Co., Ltd. USA355,150.5718,836,425.2619,191,575.83108,385,384.020.00108,385,384.02526,052.0519,420,237.0119,946,289.06111,745,358.130.00111,745,358.13
Xinfeng Investment Co., Ltd497.792,292.802,790.59256,858,980.790.00256,858,980.79517.262,292.802,810.06258,164,218.560.00258,164,218.56
Bai Wei Real Estate Co., Ltd0.000.000.0031,576,848.140.0031,576,848.140.000.000.0032,812,021.680.0032,812,021.68
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd

Unit: Yuan

subsidiary company namecurrent period amountprevious period amount
Operating RevenueNet profitTotal comprehensive incomeCash flow from operating activitiesOperating RevenueNet profitTotal comprehensive incomeCash flow from operating activities
Great Wall Real Estate Co., Ltd. (USA)361,888.66-156,192.492,605,260.88-123,837.00350,938.54-201,536.70140,037.29331,378.89
Xinfeng Investment Co., Ltd0.000.001,305,735.560.000.000.00510,769.050.00
Bai Wei Real Estate Co., Ltd0.000.001,235,173.540.000.00-96.81483,073.620.00
Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd0.000.000.000.000.00-356,947.04-356,947.040.00

Other notes:

(1) Jianbang Company was taken over by the bankruptcy administrator for bankruptcy liquidation on November 30, 2025, and was no longer included in the consolidation scope from November 30, 2025.

2. Transactions where there is a change in the owner's equity share of a subsidiary and the parent company still controls the subsidiary

3. Equity in joint ventures or associated enterprises

(1) Summary financial information of insignificant joint ventures and associated enterprises

Unit: Yuan

Closing balance / Amount incurred in the current periodOpening balance / Amount incurred in the previous period
Joint venture:
The total calculated based on the shareholding ratio of each item listed below
Joint ventures:
The total of the following items calculated based on the shareholding ratio

Other instructions

(2) Excess losses incurred by joint ventures or associated enterprises

Unit: Yuan

Name of joint venture or associated enterpriseAccumulated unrecognized losses from prior periodsUnrecognized losses for the current period (or net profit shared for the current period)Accumulated unrecognized losses at the end of the period
Shenzhen Xinfeng Real Estate Consulting Co., Ltd2,217,955.892,217,955.89

Other instructions

XI. Government subsidies

1. Government subsidies recognized based on the amount receivable at the end of the reporting period

□ Applicable Not Applicable

Reasons for failing to receive government subsidies of the expected amount at the expected time

□ Applicable Not Applicable

2. Liability items involving government subsidies

□ Applicable Not applicable

3. Government subsidies included in current profit and loss

Applicable □ Not applicable

Unit: Yuan

accounting subjectcurrent period amountprevious period amount
Other income2,000.000.00

Other notes:

XII. Risks related to financial instruments

1. Various risks arising from financial instruments

The objective of our company's risk management is to strike a balance between risk and return, minimize the negative impact of risk on our operating performance, and maximize the interests of shareholders and other equity investors. Based on this risk management objective, our basic strategy for risk management is to identify and analyze various risks faced by our company, establish appropriate risk tolerance thresholds, conduct risk management, and supervise various risks in a timely and reliable manner to keep risks within a defined range.

The Company faces various risks related to financial instruments in its daily activities, primarily including credit risk, liquidity risk, and market risk. The management has reviewed and approved policies to manage these risks, which are summarized as follows.

(I) Credit risk

Credit risk refers to the risk that one party to a financial instrument fails to fulfill its obligations, resulting in financial losses to the other party.

1. Credit risk management practices

(1) Evaluation method of credit risk

The company assesses whether the credit risk of relevant financial instruments has significantly increased since initial recognition on each balance sheet date. In determining whether credit risk has significantly increased since initial recognition, the company considers obtaining reasonable and well-founded information without unnecessary additional cost or effort, including qualitative and quantitative analysis based on historical data, external credit risk ratings, and forward-looking information. The company uses individual financial instruments or portfolios of financial instruments with similar credit risk characteristics as the basis, and compares the risk of default on the balance sheet date with the risk of default on the initial recognition date to determine the changes in default risk during the expected duration of the financial instruments.

When one or more of the following quantitative and qualitative criteria are triggered, the company deems that the credit risk of financial instruments has significantly increased:

1) The quantitative criterion primarily involves a rise in the probability of default during the remaining duration as of the balance sheet date, exceeding a certain percentage compared to the initial recognition;

2) The qualitative criteria primarily involve significant adverse changes in the debtor's operational or financial situation, as well as existing or anticipated changes in the technological, market, economic, or legal environment that will have a material adverse impact on the debtor's repayment ability to the company.

(2) Definition of defaulted and credit impaired assets

When a financial instrument meets one or more of the following conditions, the company defines the financial asset as having defaulted, and its criteria are consistent with the definition of credit impairment:

1) The debtor encounters significant financial difficulties;

2) The debtor violates the restrictive clauses imposed on the debtor in the contract;

3) The debtor is likely to go bankrupt or undergo other financial restructuring;

4) The creditor, due to economic or contractual considerations related to the debtor's financial difficulties, grants concessions that the debtor would not otherwise make.

2. Measurement of expected credit losses

The key parameters for measuring expected credit losses include probability of default, loss given default, and exposure at default. The company takes into account quantitative analysis of historical statistical data (such as counterparty ratings, types of guarantees and collateral, repayment methods, etc.) and forward-looking information to establish models for probability of default, loss given default, and exposure at default.

3. For the detailed reconciliation statement of the beginning and ending balances of provisions for losses on financial instruments, please refer to the explanations provided in Notes 7(3), 7(4), 7(5), and 7(6) to the financial statements.

4. Credit risk exposure and credit risk concentration

The credit risk of our company primarily arises from monetary funds and receivables. To mitigate the aforementioned risks, we have implemented the following measures.

(1) Monetary funds

The company deposits its bank deposits and other monetary funds with financial institutions with high credit ratings, thus its credit risk is relatively low.

(2) Accounts receivable and contract assets

Our company regularly conducts credit assessments on customers who engage in transactions using credit methods. Based on the credit assessment results, we choose to conduct transactions with approved customers who have good credit, and monitor their accounts receivable balances to ensure that our company does not face significant bad debt risks.

Due to the distribution of our company's accounts receivable risk points across multiple partners and customers, credit risk is managed on a customer-by-customer basis. As of June 30, 2026, our company faces a certain degree of credit concentration risk, with 46% (as of December 31, 2025: 38.71%) of our accounts receivable and contract assets stemming from the top five customers by balance. Our company does not hold any collateral or other credit enhancements for the balances of accounts receivable and contract assets.

The maximum credit risk exposure borne by our company is the book value of each financial asset in the balance sheet.

(II) Liquidity risk

Liquidity risk refers to the risk of experiencing a shortage of funds when the company fulfills its obligations to settle transactions by delivering cash or other financial assets. Liquidity risk may arise from the inability to sell financial assets at fair value as soon as possible; or from the counterparty's inability to repay its contractual debts; or from early maturity of debts; or from the inability to generate expected cash flows.

To control this risk, our company comprehensively utilizes various financing methods such as bill settlement and bank loans, and adopts a method that appropriately combines long-term and short-term financing to optimize the financing structure, maintaining a balance between financing continuity and flexibility. Our company has obtained bank credit lines from multiple commercial banks to meet its working capital needs and capital expenditures.

Financial liabilities are classified based on their remaining maturity

Project (or Item)Ending Balance
book valueUndiscounted contract amountwithin one year1-3 yearsMore than 3 years
short-term borrowing1,065,508.631,065,508.631,065,508.63
accounts payable168,578,885.71168,578,885.71168,578,885.71
Other payables119,077,007.22119,077,007.22119,077,007.22
Other current liabilities7,053,339.827,053,339.827,053,339.82
Subtotal295,774,741.38295,774,741.38295,774,741.380.000.00

(Continued from the previous table)

Project (or Item)"Year-end balance of the previous year"
book valueUndiscounted contract amountwithin one year1-3 yearsMore than 3 years
short-term borrowing50,000.0050,000.0050,000.00
accounts payable171,738,333.04171,738,333.04171,738,333.04
Other payables144,280,409.16144,280,409.16144,280,409.16
Other current liabilities7,329,890.157,329,890.157,329,890.15
Subtotal323,398,632.35323,398,632.35323,398,632.350.000.00

(III) Market risk

Market risk refers to the risk that the fair value or future cash flows of a financial instrument fluctuate due to changes in market prices. Market risk primarily includes interest rate risk and foreign exchange risk.

1. Interest rate risk

Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in market interest rates. Fixed-rate interest-bearing financial instruments expose the Company to fair value interest rate risk, while floating-rate interest-bearing financial instruments expose the Company to cash flow interest rate risk. The Company determines the proportion of fixed-rate and floating-rate financial instruments based on market conditions and maintains an appropriate portfolio of financial instruments through regular review and monitoring. The cash flow interest rate risk faced by the Company is primarily related to the Company's bank loans with floating-rate interest accrual.

As of June 30, 2026, the Company had no bank loans with floating interest rates (as of December 31, 2025: no bank loans with floating interest rates). Assuming that other variables remain unchanged, a 50 basis point change in interest rates would not have a significant impact on the Company's total profit and shareholders equity.

2. Foreign exchange risk

Foreign exchange risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in foreign exchange rates. The Company's exposure to exchange rate fluctuations is primarily related to its foreign currency monetary assets and liabilities. In the event of short-term imbalances in foreign currency assets and liabilities, the Company will, when necessary, trade foreign currencies at market exchange rates to ensure that its net risk exposure remains at an acceptable level.

The exchange rate risk primarily arises from the impact of foreign exchange rate fluctuations on the Company's financial position and cash flow. Apart from the assets held by its subsidiary in Hong Kong, which are denominated in Hong Kong dollars, the Company only has minor investments in the Hong Kong market. The foreign currency assets and liabilities held by the Company do not constitute a significant proportion of its overall assets and liabilities. Therefore, the Company believes that the exchange rate risk it faces is not material.

For details of the Company's foreign currency monetary assets and liabilities at the end of the period, please refer to the explanation provided in Note VII (49) of the financial report.

1. The closing fair value of assets and liabilities measured at fair value Unit: Yuan project Closing fair value Level 1 fair value measurement Level 2 fair value measurement Level 3 fair value measurement total

2. Financial assets

(1) Classification of transfer methods

□ Applicable Not Applicable

(2) Financial assets derecognized due to transfer

□ Applicable Not Applicable

(3) Financial assets transferred with continued involvement

□ Applicable Not Applicable

Other instructions

Not applicable.

XIII. Disclosure of fair value

1. The closing fair value of assets and liabilities measured at fair value

Unit: Yuan

projectClosing fair value
Level 1 fair value measurementLevel 2 fair value measurementLevel 3 fair value measurementtotal
1. Continuous fair value measurement--------
1. Financial assets measured at fair value1,057,325,314.701,057,325,314.70
with changes recognized in current profit and loss
Fund investment and financial management1,057,325,314.701,057,325,314.70
2. Designate financial assets measured at fair value with changes recognized in current profit and loss11,729,520.3911,729,520.39
(III) Other equity instrument investments11,729,520.3911,729,520.39
II. Non-continuous fair value measurement--------
Total assets not measured at fair value on a continuous basis1,069,054,835.091,069,054,835.09

2. For items measured at fair value at the third level, both on an ongoing and non-ongoing basis, the valuation techniques employed, as well as the qualitative and quantitative information regarding key parameters

For fund financial products not traded in an active market, their remaining maturity is relatively short, and their fair value is determined by the sum of book value and expected return. For other equity instrument investments not traded in an active market, the investment amount is small, and the changes in the net assets of the investee are minimal, with the book value and fair value being close. Therefore, their fair value is determined by the book value.

XIV. Related parties and related transactions

1. Information about the parent company of this enterprise

Name of the parent companyPlace of registrationNature of Businessregistered capitalThe shareholding ratio of the parent company in the enterpriseThe voting right proportion of the parent company in the enterprise
Shenzhen Investment Holding Co., LtdShenzhen, GuangdongInvestment, real estate development, and guarantee $3,358,600.00^1$ 54.79%54.79%

Note: 10,000 Renminbi

Explanation of the parent company of this enterprise

The ultimate controlling party of this enterprise is the State-owned Assets Supervision and Administration Commission of the People's Government of Shenzhen Municipality.

Other notes:

2. Information about the subsidiaries of the enterprise

For details of the subsidiaries of the Company, please refer to Note IX.

3. Information on the joint ventures and associated enterprises of the enterprise

For details of the significant joint ventures or associated enterprises of the Company, please refer to Note IX.

The status of other joint ventures or associated enterprises that have conducted related-party transactions with the Company in the current period, or have balances from related-party transactions with the Company in previous periods, is as follows:

Name of joint venture or associated enterpriseRelationship with the enterprise

Other instructions

4. Information on other related parties

Name of other related partiesRelationship between other related parties and the enterprise
Shenzhen Oriental New World Department Store Co., LtdEquity-accounted company
Shenzhen Shenxi Architectural Decoration CompanyThe company has not consolidated its holding company
Shenzhen Zhentongxin Electromechanical Industrial Development Co., LtdThe company has not consolidated its holding company
Shenzhen Nanyang Hotel Co., LtdThe company has not consolidated its holding company
Shenzhen Real Estate Electromechanical Management CompanyThe company has not consolidated its holding company
Shenzhen Longgang Henggang Huagang Industrial Co., LtdThe company has not consolidated its holding company
Shenzhen Property Management Co., LtdA holding subsidiary of the parent company
Guoren Property and Casualty Insurance Company LimitedThe holding subsidiary of the parent company
Shenzhen Water Planning and Design Institute Co., LtdA holding subsidiary of the parent company
Shenzhen Institute of Architectural Design and Research Co., LtdThe holding subsidiary of the parent company
Shenzhen Shenfang Property Cleaning Co., LtdThe holding subsidiary of the parent company
Shenzhen Property Management Co., Ltd. Shantou BranchThe holding subsidiary of the parent company
Shenzhen Guomao Property Management Co., LtdA holding subsidiary of the parent company
Shenzhen Xinfeng Real Estate Consulting Co., LtdJoint venture
Guangdong Huizhou Luofu Mountain Mineral Water Beverage Co., LtdJoint venture
Shenzhen Runhua Automobile Trading CompanyJoint venture
Canada Great Wall (Vancouver) Co., LtdThe company has not consolidated its holding company
Parker & Co. Ltd., AustraliaThe company has not consolidated its holding company
Baili Co., LtdThe company has not consolidated its holding company
Shenzhen Shenfang Department Store Co., LtdThe company has not consolidated its holding company
Shenzhen Ronghua Electromechanical Engineering Co., LtdJoint venture
Xi'an Xinfeng Property Trade Co., LtdThe company has not consolidated its holding company
Lianfeng Cement Manufacturing Co., Ltd., Fengkai County, Guangdong ProvinceThe company has not consolidated its holding company
Beijing Shenfang Property Management Co., LtdEquity-accounted company

Other instructions

5. Related party transactions

(1) Related transactions involving the purchase and sale of goods, and the provision and acceptance of labor services

Table of Purchased Goods/Received Labor Services

Unit: Yuan

Related partyContent of related-party transactionsCurrent period amountApproved transaction limitIs the transaction amount over thelimitPrevious period amount
Guoren Property and Casualty Insurance Company LimitedInsurance Service11,819.2611,584.31
Shenzhen Property Management Co., LtdProperty service509,217.67331,127.32
Shenzhen Shenfang Property Cleaning Co., LtdCleaning Service203,113.22246,815.10
Shenzhen Property Management Co., Ltd. Shantou Branchproperty service1,001,426.511,174,174.96

Statement of Goods Sold/Services Provided Unit: Yuan

Related partyContent of related-party transactionsCurrent period amountPrevious period amount
Guoren Property and Casualty Insurance Company Limitedrental service209,525.40212,377.14
Shenzhen Property Management Co., Ltdrental service2,996,354.612,206,302.45
Shenzhen Shenfang Property Cleaning Co., Ltdrental service21,784.5719,999.98

Explanation of related transactions involving the purchase and sale of goods, and the provision and acceptance of labor services

(2) Related lease situation

As the lessor, our company:

Unit: Yuan

Lessee NameType of leased assetLease income recognized in the current periodLease income recognized in the previous period
Shenzhen Property Management Co., LtdHouses and buildings2,996,354.612,206,302.45
Shenzhen Shenshanfang Property Cleaning Co., LtdHouses and buildings21,784.5719,999.98
Guoren Property and Casualty Insurance Company LimitedHouses and buildings209,525.40212,377.14

As the lessee, our company: Unit: Yuan

Lessor NameType of leased assetRental expenses for simplified short-term leases and low-value asset leases (if applicable)Variable lease payments not included in the measurement of lease liabilities (if applicable)Rent paidInterest expense on lease liabilities undertakenIncreased right-of-use assets
current period amountprevious period amountcurrent period amountprevious period amountcurrent period amountprevious period amountcurrent period amountprevious period amountcurrent period amountprevious period amount

Explanation of Associated Leasing Situation

(3) Remuneration of key management personnel

Unit: Yuan

ProjectCurrent period amountPrevious period amount
Remuneration of key management personnel2,943,096.003,124,891.50

6. Receivables and payables from/to related parties

(1) Accounts receivable

Unit: Yuan

Project NameRelated partyClosing balanceOpening balance
Book balanceAllowance for bad debtsBook balanceAllowance for bad debts
accounts receivableShenzhen Investment Holding Co., Ltd648,391.56
accounts receivableShenzhen Property Management Co., Ltd657,978.50500,000.00
accounts receivableShenzhen Xinfeng Real Estate Consulting Co., Ltd1,174,956.311,174,956.311,212,232.731,212,232.73
Other receivablesGuangdong Jianbang Group (Huiyang) Industrial Co., Ltd843,296,961.67102,965,447.05843,296,961.67102,965,447.05
Other receivablesGuangdong Huizhou Luofu Mountain Mineral Water Beverage Co., Ltd10,465,168.8110,465,168.8110,465,168.8110,465,168.81
Other receivablesShenzhen Runhua Automobile Trading Company3,072,764.423,072,764.423,072,764.423,072,764.42
Other receivablesCanada Great Wall (Vancouver) Co., Ltd89,035,748.0789,035,748.0789,035,748.0789,035,748.07
Other receivablesParkerton Australia Pty Ltd12,559,290.5812,559,290.5812,559,290.5812,559,290.58
Other receivablesBaili Co., Ltd19,051,233.4919,051,233.4919,363,348.6919,363,348.69
Other receivablesShenzhen Shenfang Department Store Co., Ltd237,648.82237,648.82237,648.82237,648.82
Other receivablesShenzhen Ronghua Electromechanical Engineering Co., Ltd475,223.46475,223.46475,223.46475,223.46
Other receivablesXi'an Xinfeng Property Trade Co., Ltd8,075,450.408,075,450.408,391,333.188,391,333.18
Other receivablesShenzhen Shenxi Architectural Decoration Company7,660,529.377,660,529.377,660,529.377,660,529.37
Other receivablesShenzhen Nanyang Hotel Co., Ltd3,168,721.003,168,721.003,168,721.003,168,721.00
Other receivablesBeijing Shenfang Property Management Co., Ltd6,905,673.696,533,817.096,905,673.696,533,817.09

(2) Payable items

Unit: Yuan

Project NameRelated partyClosing book balanceOpening book balance
Interest payableShenzhen Investment Holding Co., Ltd16,535,277.9416,535,277.94
accounts payableShenzhen Property Management Co., Ltd4,806,559.848,127,082.22
Other payablesGuoren Property and Casualty Insurance Company Limited74,332.000.00
Other payablesShenzhen Property Management Co., Ltd165,460.14171,466.20
Other payablesShenzhen Dongfang New World Department Store Co., Ltd902,974.64902,974.64
Other payablesLianfeng Cement Manufacturing Co., Ltd., Fengkai County, Guangdong Province1,867,348.001,867,348.00
Other payablesShenzhen Real Estate Electromechanical Management Company14,981,420.9914,981,420.99
Other payablesShenzhen Zhentongxin Electromechanical Industrial Development Co., Ltd8,260,832.508,260,832.50
Other payablesShenzhen Shenshanfang Department Store Co., Ltd639,360.38639,360.38
Other payablesShenzhen Longgang Henggang Huagang Industrial Co., Ltd165,481.09165,481.09

XV. Share-based payments

1. Overall situation of share-based payments

□ Applicable Not Applicable

2. Share-based payments settled with equity

□ Applicable Not Applicable

3. Share-based payments settled in cash

□ Applicable Not Applicable

4. Share-based payment expenses in the current period

□ Applicable Not Applicable

XVI. Commitments and Contingencies

1. Important commitments

Significant commitments existing as of the balance sheet date

As of June 30, 2026, the company has no significant commitments that need to be disclosed.

2. Contingencies

(1) Significant contingent matters existing on the balance sheet date

1. Contingent liabilities arising from pending litigation and arbitration, and their financial impacts

PlaintiffDefendantCause of ActionCourt of jurisdictionAmount in disputeRemark
Zhongshan Shengtang Advertising Co., LtdGuangdong Jianbang Group (Huiyang) Industrial Co., LtdApply for bankruptcy liquidationHuizhou Intermediate People's CourtIn the process of reviewing claims and debtsIn the bankruptcy liquidation process, the administrator has taken over Jianbang Company. Case details: [Note 1]
Huizhou Mingxiang Economic Information Consulting Co., Ltd., Huizhou Huiyang Hongfa Industry and Trade Co., Ltd., and Huizhou Jinlongsheng Industrial Co., LtdGuangdong Jianbang Group (Huiyang) Industrial Co., LtdLitigation over disputes over the right to claim payment of billsHuizhou Intermediate People's CourtThe principal amount is 177.1514 million yuan, and the interest RMB 2.8482 millionCase progress: This enforcement procedure is terminated. Jianbang Company has entered into bankruptcy liquidation proceedings, and creditors have declared their claims to the administrator. Case details: [Note 2]
Shenzhen Special Economic Zone Real Estate (Group) Co., LtdGuangzhou Bopi Enterprise Management Consulting Co., Ltd., Evergrande Real Estate Group Pearl River Delta Real EstateDevelopment Co., Ltd., Shenzhen Qijin Investment Co., Ltd., and the third party are Guangdong Jianbang Group (Huiyang) Industrial Co., LtdDispute over joint venture or cooperative real estate development contractHuizhou Intermediate People's Court, Guangdong Province743.575 million yuanCase progress: Under retrial. Guangzhou Bopi and Evergrande Pearl River Delta have enteredbankruptcy liquidation procedures and have declared their claims to the administrator. Shenzhen Qijin is currently undergoing liquidation and deregistration, and has declared its claims to the liquidation team.Case details: [Note 3]
Shenzhen Special Economic Zone Real Estate (Group) Co., LtdGuangdong Jianbang Group (Huiyang) Industrial Co., LtdLoan contract disputePeople's Court of Luohu District, ShenzhenThe principal and interest amount to 395.6885 million yuanCase progress: Termination of enforcement proceedings. Jianbang Company has entered into bankruptcy liquidation proceedings and has declared its claims to the administrator.Case details: [Note 4]
Shenzhen Special Economic Zone Real Estate (Group) Co., LtdGuangdong Jianbang Group (Huiyang) Industrial Co., Ltd., Guangzhou Bopi Enterprise Management Consulting Co., Ltd., Evergrande Real Estate Group Pearl River Delta Real Estate Development Co., Ltd., Shenzhen Qijin Investment Co., LtdDispute over loan contractPeople's Court of Huiyang District, Huizhou CityThe principal and interest amount to 419.5229 million yuanCase Progress: Jianbang Company, Guangzhou Bopi, and Evergrande Pearl River Delta have all entered bankruptcy liquidation procedures and have declared their claims to the administrators respectively. Shenzhen Qijin is currently undergoing liquidation and deregistration, and has declared its claims to the liquidation team.Case details: [Note 5]

[Note 1] On October 27, 2025, Jianbang Company received the "Civil Ruling Paper" and "Decision Paper" issued by the Huizhou Intermediate People's Court. The court ruled to accept the bankruptcy liquidation application filed by Zhongshan Shengtang Advertising Co., Ltd. (hereinafter referred to as "Shengtang Company") against Jianbang Company, and appointed a manager. For details, please refer to the "Announcement on the Court's Ruling to Accept the Bankruptcy Liquidation Application against the Holding Subsidiary and the Appointment of the Manager" (Announcement No. 2025-030) issued by our company on October 30, 2025. On December 8, 2025, our company submitted creditor's rights declaration materials to the manager of Jianbang Company based on the confirmed creditor's rights amount, creditor's rights and debts confirmation document, transfer vouchers, etc. obtained from the effective civil judgment. Our company actively participated in the creditors' meeting and exercised creditor's rights in accordance with the law.

[Note 2] Jianbang Company, a subsidiary of our company holding 51% of its shares, was unable to honor commercial acceptance bills due in January 2022, with a total amount of RMB 177.1514 million. The plaintiff company filed a lawsuit for dispute over the right to demand payment of bills with the Huiyang District Court. On March 14, 2023, the court issued a judgment ordering Jianbang Company to pay the three companies the commercial bills and overdue interest (including litigation and preservation costs of approximately RMB 1.03 million) within 15 days. The case involved the sealing of 153 properties, estimated at RMB 220 million based on the recorded price, in Buildings 2 and 4 of the first phase of the Shenfang Linxinyuan project. The plaintiff has applied for enforcement with the Huizhou Intermediate People's Court, which issued an "Enforcement Ruling" in February 2026, terminating the enforcement procedure. As of December 31, 2025, considering Jianbang Company has entered bankruptcy liquidation, the administrator has taken over the company and is handling all litigation and enforcement cases in a unified manner.

[Note 3] On April 30, 2021, our company signed the "Cooperative Development Agreement" and "Entrusted Management Agreement" with Guangzhou Bopi, Evergrande Pearl River Delta, and Jianbang Company. Guangzhou Bopi promised Jianbang Company that the cumulative net profit from 2021 to 2025 would not be less than 1.25 billion yuan. If Guangzhou Bopi failed to fulfill its profit commitment, it would make up the difference. On June 30, 2021, due to Shenzhen Qijin's acquisition of 51% of Guangzhou Bopi's equity, our company, Guangzhou Bopi, Evergrande Pearl River Delta, and Shenzhen Qijin jointly signed Supplementary Agreement I to the "Cooperative Development Agreement", agreeing that Shenzhen Qijin would bear joint and several liability with Evergrande Pearl River Delta for Guangzhou Bopi's profit commitment and the payment of the difference as stipulated in the "Cooperative Development Agreement". Now, due to the fundamental breach of contract by Guangzhou Bopi and Evergrande Pearl River Delta, and their actual loss of ability to perform, our company's contractual purpose and expected interests cannot be realized. Our company has filed a lawsuit. On January 8, 2025, our company received the first-instance "Civil Judgment" in this case. The judgment made by the Huizhou Intermediate People's Court, the court of first instance, supported some of our company's claims, but the part regarding profit payment was not supported due to the unexpired deadline. On January 22, 2025, our company filed an appeal against the unsupported claims. In June 2026, the Guangdong Provincial Higher People's Court, the court of second instance, issued a "Civil Ruling Paper", ruling to revoke the first-instance judgment and remand the case for retrial. Given that Guangzhou Bopi and Evergrande Pearl River Delta have entered bankruptcy liquidation procedures, our company has declared its creditor's rights to the administrator. Meanwhile, Shenzhen Qijin is undergoing liquidation and deregistration, and our company has declared its creditor's rights to the liquidation team.

[Note 4] In 2021, our company acquired 51% of Jianbang Company's equity held by Guangzhou Bopi. At the time of the acquisition, it was agreed that our company would provide Jianbang Company with interestbearing loans based on the equity ratio. Subsequently, Jianbang Company borrowed money from our company in two installments and signed a "Loan Agreement". After signing the agreement, our company provided the loans to Jianbang Company as agreed, fulfilling its lending obligations. Now, both loans have expired, but Jianbang Company has not repaid them, constituting a breach of contract. As a state-owned listed company, in order to protect state-owned assets from losses, our company filed this lawsuit. In January 2024, our company received the "Civil Judgment" issued by the People's Court of Luohu District, Shenzhen City, Guangdong Province: Jianbang Company was judged to repay the loan principal of 344,696,200.26 yuan and pay interest to our company within ten days from the effective date of the judgment; Jianbang Company was also judged to pay liquidated damages to our company within ten days from the effective date of the judgment. Our company has applied for compulsory enforcement and received the "Enforcement Ruling" on December 2, 2025, ruling to terminate the enforcement procedure. In view of Jianbang Company's entry into bankruptcy liquidation proceedings, our company has declared its creditor's rights to the administrator.

[Note 5] In 2021, our company acquired 51% of Jianbang Company's equity held by Guangzhou Bopi. At the time of the acquisition, it was agreed that interest-bearing loans would be provided to Jianbang Company in proportion to the equity ratio. Subsequently, an agreement was signed by the five parties, stipulating that our company would provide loans to Jianbang Company, and Jianbang Company would provide corresponding collateral. Meanwhile, Guangzhou Bopi, Hengda Zhujiang Delta, and Shenzhen Qijin would bear joint and several liability for 49% of the total loan amount, as well as interest and penalties. After the agreement was signed, our company provided loans to Jianbang Company as agreed, fulfilling its lending obligations. However, Jianbang Company was unable to repay the loans. As a state-owned listed company, in order to protect stateowned assets from losses, our company initiated this lawsuit. On June 7, 2024, our company received a judgment in favor of us in the first instance. On June 24, 2024, Guangzhou Bopi filed an appeal but failed to pay the case acceptance fee on time. In October 2024, the Huizhou Intermediate People's Court issued a "Civil Ruling Paper", treating it as a withdrawal of the appeal, and the first-instance judgment became effective. Our company applied for compulsory enforcement with the court in January 2025. Given that Jianbang Company, Guangzhou Bopi, and Hengda Zhujiang Delta have all entered bankruptcy liquidation procedures, our company has declared its claims to the administrators, while Shenzhen Qijin is in the process of handling liquidation and deregistration. Our company has declared its claims to the liquidation team.

2. Contingent liabilities arising from providing debt guarantees to other entities and their financial impacts

As of June 30, 2026, the Company, following real estate business practices, provided mortgage loan guarantees for commercial housing buyers and loan guarantees for its subsidiaries, totaling RMB 132.2161 million.

Guaranteed entityLoan financial institutionGuaranteed loan amount (10,000 yuan)Guarantee expiration dateRemark
House purchaserChina Construction Bank36.4Until the property ownership certificate is registered for mortgage and handed over to the bank for safekeepingShanglin Garden
House purchaserChina Construction Bank631.55Until the property ownership certificate is registered for mortgage and handed over to the bank for safekeepingChuanqi Donghu Mingyuan
House buyerChina Construction Bank, Bank of Communications, Industrial and Commercial Bank of China, Bank of China, Postal Savings Bank of China2,580.00Until the property ownership certificate is registered for mortgage and handed over to the bank for safekeepingTianyue Bay
House purchaserHuaxia Bank, Rural Commercial Bank, Postal Savings Bank, China Merchants Bank, Bank of China9,973.66Until the property ownership certificate is registered for mortgage and handed over to the bank for safekeepingGuangmingli
Subtotal13,221.61

The company has no significant contingent matters that require disclosure.

3. Others

XVII. Events after the balance sheet date

1. Significant non-adjusting events

Unit: Yuan

projectContentThe impact on financial position and operating resultsThe reason for being unable to estimate the impact number

2. Profit distribution

3. Sales returns

4. Explanation of other events after the balance sheet date

5. Discontinued operations Unit: Yuan project income cost Total Profit Income tax Net profit Profit from

18. Other important matters

1. Correction of accounting errors in the early stage

(1) Retroactive restatement method

Unit: Yuan

The content of accounting error correctionhandlerName of affected report items during various comparison periodsCumulative impact count

(2) Prospective application method

The content of accounting error correctionApproval procedureReasons for adopting the prospective application method

2. Debt restructuring

3. Asset replacement

(1) Exchange of non-monetary assets

(2) Replacement of other assets

4. Annuity plan

5. Discontinued operations

Unit: Yuan

projectincomecostTotal ProfitIncome taxexpenseNet profitProfit fromdiscontinued operations attributable to owners of the parent company

Other instructions

6. Segment information

(1) Basis for determining reportable segments and accounting policies

(2) Financial information of the reporting segment

Unit: Yuan

projectInter-segment offsettotal

(3) If the company has no reportable segments, or cannot disclose the total assets and total liabilities of each reportable segment, it should explain the reasons

(4) Other descriptions

7. Other significant transactions and matters that have an impact on investors' decisions

8. Others

XIX. Notes to main items in the parent company's financial statements

1. Accounts receivable

(1) Disclosure by aging

Unit: Yuan

agingClosing book balanceOpening book balance
Within 1 year (including 1 year)8,787,912.338,724,709.94
1 to 2 years1,585,100.101,992,924.09
More than 3 years4,450,138.624,450,138.62
More than 5 years4,450,138.624,450,138.62
total14,823,151.0515,167,772.65

(2) Disclosure by classification of bad debt provision method

Unit: Yuan

CategoryClosing balanceOpening balance
book balanceallowance for bad debtsbook valuebook balanceallowance for bad debtsbook value
AmountproportionAmountprovision ratioAmountproportionAmountprovision ratio
Accounts receivable with individual provision for bad debt reserves9,902,520.9666.80%9,902,520.96100.00%10,069,296.0666.39%10,069,296.06100.00%0.00
among which
Accounts receivable with provision for bad debts calculated based on portfolio4,920,630.0933.20%254,923.835.18%4,665,706.265,098,476.5933.61%254,923.835.00%4,843,552.76
among which
total14,823,151.05100.00%10,157,444.7968.52%4,665,706.2615,167,772.65100.00%10,324,219.8968.07%4,843,552.76

If the provision for bad debts of accounts receivable is calculated and withdrawn according to the general model of expected credit losses: □ Applicable Not Applicable

(3) Provision for bad debts accrued, recovered, or reversed in the current period

Provision for bad debts in the current period:

Unit: Yuan

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

CategoryOpening balanceCurrent period change amountClosing balance
accrueWithdraw or reverseWrite-offOther
Provision for bad debts on an individual basis10,069,296.060.000.000.00-166,775.109,902,520.96
Provision for bad debts based on portfolio254,923.830.000.000.000.00254,923.83
total10,324,219.890.000.000.00-166,775.1010,157,444.79

Unit: Yuan

Unit NameRecovered or reversed amountReason for reversalCollection methodThe basis for determining the original provision ratiofor bad debts and its reasonableness

(4) Accounts receivable and contract assets, ranked by the top five ending balances, categorized by the debtors

Unit: Yuan

Unit NameClosing balance of accounts receivableClosing balance of contract assetsClosing balance of accounts receivable and contract assetsThe proportion of the total ending balance of accounts receivable and contract assetsClosing balance of bad debt provision for accounts receivable and impairment provision for contract assets
Shenzhen Huatang Famous Wine City Investment Co., Ltd2,239,384.002,239,384.0015.11%154,008.10
Daxing Auto Parts Co., Ltd1,974,974.511,974,974.5113.32%1,974,974.51
Wang Weidong1,200,000.001,200,000.008.10%1,200,000.00
Shenzhen Xinfeng Real Estate Consulting Co., Ltd1,174,956.311,174,956.317.93%1,174,956.31
Wang Guodong876,489.98876,489.985.91%876,489.98
total7,465,804.807,465,804.8050.37%5,380,428.90

2. Other receivables

Unit: Yuan

projectClosing balanceOpening balance
Interest receivable0.000.00
Dividends receivable37,814,622.8824,222,722.88
Other receivables1,804,167,419.281,856,205,185.25
total1,841,982,042.161,880,427,908.13

(1) Dividends receivable

1) Classification of dividends receivable

Unit: Yuan

Project (or invested entity)Closing balanceOpening balance
Shenzhen Shenfang Group Longgang Development Co., Ltd24,222,722.8824,222,722.88
Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd13,591,900.00
total37,814,622.8824,222,722.88

2) Important dividends receivable with an aging of over 1 year

Unit: Yuan

Project (or invested entity)Closing balanceagingThe reason for not being recoveredWhether there is impairment and the basis for the judgment
Shenzhen Shenfang Group Longgang Development Co., Ltd24,222,722.883-4 yearsPostpone paymentNo
total24,222,722.88

3) Disclosure by classification based on bad debt provision method

□ Applicable Not Applicable

4) The situation of bad debt reserves accrued, recovered, or reversed in the current period

Unit: Yuan

CategoryOpening balanceCurrent period change amountClosing balance
accrueWithdraw or reverseResale or write-offOther changes

For those with significant amounts of bad debt provision recovered or reversed in the current period: Unit: Yuan

Unit NameRecovered or reversed amountReason for reversalWithdrawal methodThe basis for determining the original provision ratio for bad debts and its reasonableness

Other notes:

(2) Other receivables

1) Classification of other receivables by nature of payment

Unit: Yuan

Nature of PaymentClosing book balanceOpening book balance
Portfolio of receivables from related parties2,641,486,472.552,633,214,641.39
Combination of accounts receivable from government departments165,460.00165,460.00
Combination of receivables, collections, and payments499,682.89500,018.15
Combination of other current accounts receivable75,645,207.08144,601,238.67
total2,717,796,822.522,778,481,358.21

2) Disclosure by aging

agingClosing book balanceOpening book balance
Within 1 year (including 1 year)232,067,586.14258,963,768.91
1 to 2 years390,600,385.16424,416,517.52
2 to 3 years6,128,046.386,100,266.94
More than 3 years2,089,000,804.842,089,000,804.84
3 to 4 years243,411.53243,411.53
4 to 5 years456,845,625.71456,845,625.71
More than 5 years1,631,911,767.601,631,911,767.60
total2,717,796,822.522,778,481,358.21

3) Disclosure by classification based on bad debt provision method

Unit: Yuan

Provision for bad debts based on the general model of expected credit losses:

CategoryClosing balanceOpening balance
book balanceallowance for bad debtsbook valuebook balanceallowance for bad debtsbook value
AmountproportionAmountprovision ratioAmountproportionAmountprovision ratio
Provide for bad debts on an individual basis1,653,672,925.8360.85%913,454,314.2555.24%740,218,611.581,662,432,598.5959.83%922,101,083.9755.47%740,331,514.62
among which
Provision for bad debts based on portfolio1,064,123,896.6939.15%175,088.990.02%1,063,948,807.701,116,048,759.6240.17%175,088.990.02%1,115,873,670.63
among which
total2,717,796,822.52100.00%913,629,403.2433.62%1,804,167,419.282,778,481,358.21100.00%922,276,172.9633.19%1,856,205,185.25

Unit: Yuan

allowance for bad debtsPhase OnePhase TwoPhase Threetotal
Expected credit losses over the next 12 monthsExpected credit losses over the entire duration (no credit impairment has occurred)Expected credit losses over the entire duration (credit impairment has occurred)
Balance as of January 1, 2026122,167.7652,921.23922,101,083.97922,276,172.96
The balance as of January 1, 2026, is in the current period
Other changes-8,646,769.72-8,646,769.72
Balance as of June 30,2026122,167.7652,921.23913,454,314.25913,629,403.24

Basis for dividing each stage and proportion of bad debt provision Changes in book balance of significant amounts in loss provisions during the current period

□ Applicable Not Applicable

4) Provision for bad debts accrued, recovered, or reversed in the current period

Provision for bad debts in the current period:

Unit: Yuan

CategoryOpening balanceCurrent period change amountClosing balance
accrueWithdraw or reverseResale or write-offOther
Provide for bad debts on an individual basis922,101,083.970.00-8,646,769.72913,454,314.25
Provision for bad debts based on portfolio175,088.990.00175,088.99
total922,276,172.960.000.000.00-8,646,769.72913,629,403.24

For those with significant amounts of bad debt provision reversed or recovered in the current period: Unit: Yuan

Unit NameReversal or recovery amountReason for reversalWithdrawal methodThe basis for determining the original provision ratio for bad debts and its reasonableness

5) Other receivables with the top five ending balances, categorized by debtors

Unit: Yuan

Unit NameThe nature of the paymentClosing balanceAgingProportion of total ending balance of other receivablesClosing balance of bad debt provision
Guangdong Jianbang Group (Huiyang) Industrial Co., LtdSubsidiary company transactions843,296,961.67Within 1 year, 1-2 years, 2-3 years, over 5 years31.03%102,965,447.05
Shantou Huafeng Real Estate Development Co., LtdSubsidiary company transactions714,160,642.871-2 years, over 5 years26.28%
Xinfeng Enterprise Co., LtdSubsidiary company transactions529,778,002.101-2 years, over 5 years19.49%529,778,002.10
Shenzhen Shenfang Chuanqi Real Estate Development Co., LtdSubsidiary company transactions263,075,988.15Within 1 year, 1-2 years, and over 5 years9.68%
Great Wall Real Estate Co., Ltd. USASubsidiary company transactions101,050,900.17More than 5 years3.72%101,050,900.17
total2,451,362,494.9690.20%733,794,349.32

3. Long-term equity investment

Unit: Yuan

projectClosing balanceOpening balance
book balanceprovision for impairmentbook valuebook balanceprovision for impairmentbook value
Investment in subsidiaries1,265,520,833.00133,339,271.151,132,181,561.851,265,520,833.00133,339,271.151,132,181,561.85
Investment in associated and joint ventures11,977,845.5811,977,845.5811,977,845.5811,977,845.58
total1,277,498,678.58145,317,116.731,132,181,561.851,277,498,678.58145,317,116.731,132,181,561.85

(1) Investment in subsidiaries

Unit: Yuan

The invested entityOpening balance (book value)Opening balance of impairment provisionChanges in the current periodClosing balance (book value)Closing balance of impairment provision
Additional investmentReduce investmentProvision for impairmentOther
Shenzhen Haiyan Hotel Co., Ltd20,605,047.500.0020,605,047.500.00
Shenzhen Shenfang Investment Co., Ltd9,000,000.000.009,000,000.000.00
Xinfeng Enterprise Co., Ltd556,500.000.00556,500.000.00
Xinfeng Real Estate Co., Ltd22,717,697.730.0022,717,697.730.00
Shenzhen Zhentong Engineering Co., Ltd11,332,321.450.0011,332,321.450.00
Great Wall Real Estate Co., Ltd. (USA)1,435,802.000.001,435,802.000.00
Shenzhen Shenfang Bonded Trading Co., Ltd4,750,000.000.004,750,000.000.00
Shenzhen Huazhan Construction Supervision Co., Ltd6,000,000.000.006,000,000.000.00
Shenzhen Lianhua Enterprise Co., Ltd13,458,217.050.0013,458,217.050.00
Shenzhen Shenfang Group Longgang Development Co., Ltd30,850,000.000.0030,850,000.000.00
Beijing Xinfeng Real Estate Development and Operation Co., Ltd0.0064,183,888.900.0064,183,888.90
Shantou Huafeng Real Estate Development Co., Ltd16,467,021.020.0016,467,021.020.00
Baili Co., Ltd0.00201,100.000.00201,100.00
Parker Tonneau Australia0.00906,630.000.00906,630.00
Shenzhen Shenfang Department Store Co., Ltd0.009,500,000.000.009,500,000.00
Shantou Xinfeng Building0.0058,547,652.250.0058,547,652.25
Shenzhen Shenfang Chuanqi Real Estate Development Co., Ltd995,000,000.000.00995,000,000.000.00
Hualin Co., Ltd8,955.100.008,955.100.00
total1,132,181,561.85133,339,271.151,132,181,561.85133,339,271.15

(2) Investment in associated and joint ventures

Unit: Yuan

InvestOpeniOpeniChanges in the current periodClosinClosin
ment unitng balance (book value)ng balance of impairment provisi onAdditi onal invest mentReduce investmentInvest ment gains and losses recognized under the equity metho dAdjust ment to other comprehensi ve incomeOther changes in equityAnnou nce the distrib ution of cash divid nds or profitsProvisi on for impair mentOtherg balance (book value)g balance of impair ment provisi on
1. Joint venture
Fengk ai Xinghua Hotel9,455, 465.389,455, 465.38
Subtot al9,455, 465.389,455, 465.38
II. Associated enterprises
Shenz hen Ronghua Electro mechanical Engineering Co., Ltd1,076, 954.641,076, 954.64
Shenz hen Runhua Automobile Trading Company1,445, 425.561,445, 425.56
Subtot al2,522, 380.202,522, 380.20
total11,977,845.5811,977,845.58

The recoverable amount is determined by the net amount after deducting disposal expenses from the fair value □ Applicable Not Applicable The recoverable amount is determined based on the present value of estimated future cash flows □ Applicable Not Applicable The reasons for the significant discrepancies between the aforementioned information and the information or external data used in previous annual impairment tests

The reasons for the significant discrepancies between the information used in the company's previous annual impairment tests and the actual situation of the current year

4. Operating income and operating costs

Unit: Yuan

Breakdown information of operating income and operating costs:

projectcurrent period amountprevious period amount
incomecostincomecost
main business27,174,732.1016,126,535.4023,097,122.0015,530,601.07
Other businesses491,681.23487,871.7095.24
total27,666,413.3316,614,407.1023,097,217.2415,530,601.07

Unit: Yuan

Contract ClassificationDivision 1Section 2total
Operating RevenueCost of goods soldOperating RevenueCost of goods soldOperating RevenueCost of goods soldOperating RevenueCost of goods sold
Business Type
Among them:
Classified by business region
Among them:
Market or customer type
Among them:
Contract Type
Among them:
Classified by the time of commodity transfer
Among them:
Classified by contract duration
Among them:
Classified by sales channels
Among them:
total

Information related to performance obligations:

projectThe time for fulfilling the contractual obligationsImportant payment termsThe nature of the goods promised by the company for transferIs it the primary responsible personThe amount that the company expects to refund to customersThe type of quality assurance provided by the company and related obligations

Other instructions

Information related to the transaction price allocated to the remaining performance obligations:

The revenue amount corresponding to the performance obligations that have been contracted but not yet fulfilled or not fully fulfilled at the end of this reporting period is RMB 129,141,267.30. Of this amount, RMB 25,670,067.83 is expected to be recognized as revenue in 2026, RMB 51,606,583.28 is expected to be recognized as revenue in 2027, and RMB 51,864,616.19 is expected to be recognized as revenue in 2028.

Significant contract modifications or substantial adjustments to transaction prices

Unit: Yuan

projectAccounting treatment methodImpact amount on income

Other notes:

5. Investment income

Unit: Yuan

projectcurrent period amountprevious period amount
Long-term equity investment income accounted for using the cost method50,000,000.00
Investment income generated from disposal of long-term equity investments66,265.2399,669.36
Interest income earned during the holding period of other debt investments
total50,066,265.2399,669.36

XX. Supplementary Information

1. Detailed statement of non-recurring profit and loss for the current period

Applicable □ Not applicable

projectAmountInstructions
Government subsidies included in current profit and loss (excluding those closely related to the company's normal business operations, in compliance with national policies and regulations, enjoyed according to established standards, and having a continuous impact on the company's profit and loss)2,000.00
Except for effective hedging activities related to the normal business operations of the same company, the profit and loss from changes in fair value arising from non-financial enterprises holding financial assets and financial liabilities, as well as the profit and loss arising from the disposal of financial assets and financial liabilities7,069,256.29Fair value changes arising from investments in money market funds
Other non-operating income and expenses excluding the aforementioned items-1,253.02
Less: Income tax impact186.75
total7,069,816.52--

Specific details of other profit and loss items that meet the definition of non-recurring profit and loss:

□ Applicable Not Applicable

The company does not have any other specific situations where profit and loss items meet the definition of non-recurring profit and loss.

Explanatory Statement on Defining Non-recurring Gain and Loss Items Listed in "Explanatory Announcement No. 1 on Information Disclosure by Companies that Offer Securities to the Public - Non-recurring Gain and Loss" as Recurring Gain and Loss Items

Applicable □ Not applicable

projectInvolved amount (yuan)reason
Refund of handling fee for withholding individual income tax52,026.64It occurs continuously in each year and is not sporadic, thus it is identified as a recurrent profit and loss

2. Return on net assets and earnings per share

Profit during the reporting periodWeighted average return on net assetsEarnings Per Share
Basic earnings per share (yuan/share)Diluted earnings per share (yuan/share)
Net profit attributable to common shareholders of the company-0.24%-0.0085-0.0085
Net profit attributable to ordinary shareholders of the company after deducting non-recurring gains and losses-0.43%-0.0154-0.0154

3. Differences in accounting data under domestic and foreign accounting standards

(1) The differences in net profit and net assets between financial reports disclosed under international accounting standards and those disclosed under Chinese accounting standards

□ Applicable Not applicable

(2) Differences in net profit and net assets between financial reports disclosed under foreign accounting standards and those disclosed under Chinese accounting standards

□ Applicable Not Applicable

(3) Explanation of the reasons for differences in accounting data under domestic and foreign accounting standards. For data that has been adjusted for differences after being audited by an overseas audi institution, the name of the overseas institution should be indicated

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