Contents

I.Auditor’sReport……………………………………………………………Page1-7II.FinancialStatements……………………………………………………Page8-19

(I)ConsolidatedBalanceSheet……………………………………………Page8-9(II)ParentCompanyBalanceSheet………………………………………Page10-11(III)ConsolidatedIncomeStatement………………………………………Page12(IV)ParentCompanyIncomeStatement…………………………………Page13(V)ConsolidatedCashFlowStatement……………………………………Page14(VI)ParentCompanyCashFlowStatement………………………………Page15(VII)ConsolidatedStatementofChangesinEquity……………………Page16-17(VIII)ParentCompanyStatementofChangesinEquity………………Page18-19III.NotestoFinancialStatements………………………………………Page20-111

Auditor’sReportPCCPAAR[2026]No.7-34TotheShareholdersofShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.:

I.AuditOpinionWehaveauditedthefinancialstatementsofShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.(the“Company”),whichcomprisetheconsolidatedandparentcompanybalancesheetsasatDecember31,2025,theconsolidatedandparentcompanyincomestatements,consolidatedandparentcompanycashflowstatements,andconsolidatedandparentcompanystatementsofchangesinequityfortheyearthenended,aswellasnotestofinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCompanyasatDecember31,2025,anditsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithChinaAccountingStandardsforBusinessEnterprises.II.BasisforAuditOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditing.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheCertifiedPublicAccountant’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththe“ChineseCertifiedPublicAccountantIndependenceStandardNo.1–IndependenceRequirementsforFinancialStatementAuditandReviewEngagements”andtheChinaCodeofEthics

forCertifiedPublicAccountants,andwehavefulfilledotherethicalresponsibilities.Inconductingouraudit,wehavecompliedwiththeindependencerequirementsapplicabletoauditsofpublicinterestentities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotexpressaseparateopiniononthesematters.(I)Revenuerecognition

1.Keyauditmatters

PleaserefertosectionIII(XXV)andV(II)1ofnotestothefinancialstatementsfordetails.TheCompanyismainlyengagedinrealestatesales,engineeringconstruction,andpropertyleasingandotherbusinesses.In2025,theoperatingrevenueamountedto1,482,872,299.36yuan,ofwhich,1,324,656,290.59yuanwasfromtherealestatesales,accountingfor89.33%,and81,299,490.77yuanwasfromengineeringconstruction,accountingfor5.48%.AsoperatingrevenueisoneofthekeyperformanceindicatorsoftheCompany,theremightbeinherentrisksthattheCompany’smanagement(the“Management”)adoptsinappropriaterevenuerecognitiontoachievespecificgoalsorexpectations,andrevenuerecognitioninvolvessignificantjudgmentoftheManagement,wehaveidentifiedrevenuerecognitionasakeyauditmatter.

2.Responsiveauditprocedures

Ourmainauditproceduresforrevenuerecognitionareasfollows:

(1)Weobtainedunderstandingsofkeyinternalcontrolsrelatedtorevenuerecognition,assessedthedesignofthesecontrols,determinedwhethertheyhadbeenexecuted,andtestedtheeffectivenessoftheoperation;

(2)Wecheckedmainhousingsalescontractsandleasecontracts,andassessedwhethertherevenuerecognitionmethodwasappropriate;

(3)Weperformedanalysisprocedureonoperatingrevenueandgrossmarginbymonth,businesstype,etc.,soastoidentifywhethertherearesignificantorabnormalfluctuationsandfindoutthereason;

(4)Wecheckedsupportingdocumentsrelatedtoselecteditems,includinghousingsalescontracts,housingdeliverynotices,leasecontracts,salesinvoices,etc.

(5)Weselecteditemstocheckthedocumentsincludingcostbudget,purchasecontracts,subcontractagreements,etc.whichweretakenasthebasisforestimatingtotalcost,soastotestwhethertheperformanceprogressandtherevenuerecognizedbasedonperformanceprogresswereaccuratelymeasuredbytheManagement,andevaluatedthereasonablenessoftheperformanceprogressdeterminedbytheManagementincombinationwithdocumentsincludingsupervisionreports,progressconfirmationsheets,customerstatements,aswellastheon-siteobservationoninventorycounting;

(6)Weperformedconfirmationproceduresonsalesamountofselecteditemsincombinationwithconfirmationprocedureofaccountsreceivableandcontractassets;

(7)Weperformedcut-offteststocheckwhethertherevenuewasrecognizedintheappropriateperiod;and

(8)Wecheckedwhetherinformationrelatedtooperatingrevenuehadbeenpresentedappropriatelyinthefinancialstatements.(II)Netrealizablevalueofinventories

1.Keyauditmatters

PleaserefertosectionIII(XIII)andV(I)7ofnotestothefinancialstatementsfordetails.AsofDecember31,2025,thebookbalanceofinventoriesamountedto1,153,978,849.41yuan,withprovisionforinventorywrite-downof54,619,230.16yuan,andthecarryingamountamountedto1,099,359,619.25yuan.Inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.ThenetrealizablevalueisdeterminedbytheManagementbasedontheamountoftheestimatedsellingpricelessthecosttobeincurreduponcompletion,estimatedsellingexpensesandrelevanttaxesandsurcharges.Astheamountofinventoriesissignificantanddeterminationofnetrealizablevalueinvolvessignificantjudgmentof

theManagement,wehaveidentifiednetrealizablevalueofinventoriesasakeyauditmatter.

2.Responsiveauditprocedures

Ourmainauditproceduresfornetrealizablevalueofinventoriesareasfollows:

(1)Weobtainedunderstandingsofkeyinternalcontrolsrelatedtonetrealizablevalueofinventories,assessedthedesignofthesecontrols,determinedwhethertheyhadbeenexecuted,andtestedtheeffectivenessoftheoperation;

(2)WereviewedtheoutcomeoftheManagement’spreviousestimatesonthenetrealizablevalueortheirsubsequentre-estimations;

(3)Weselecteditemstoassessthereasonablenessoftheestimatedsellingprice,andreviewedwhethertheestimatedsellingpricewasconsistentwithsalescontractprice,marketsellingprice,etc.;

(4)Weassessedthereasonablenessofestimationoncosttobeincurreduponcompletion,sellingexpensesandrelevanttaxesandsurchargesmadebytheManagement;

(5)WetestedwhetherthecalculationofnetrealizablevalueofinventoriesmadebytheManagementwasaccurate;

(6)Weidentifiedwhetherthereexistedsituationssuchasprojectswithslowdevelopmentorsalesprogress,incombinationwithobservationoninventorycounting,andassessedthereasonablenessofestimationsonnetrealizablevalueofinventoriesmadebytheManagement;and

(7)Wecheckedwhetherinformationrelatedtonetrealizablevalueofinventorieshadbeenpresentedappropriatelyinthefinancialstatements.IV.OtherInformationTheManagementisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheCompany’sannualreport,butdoesnotincludethefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoread

theotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementoftheotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesoftheManagementandThoseChargedwithGovernancefortheFinancialStatementsTheManagementisresponsibleforpreparingandpresentingfairlythefinancialstatementsinaccordancewithChinaAccountingStandardsforBusinessEnterprises,aswellasdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,theManagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheManagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.CertifiedPublicAccountant’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithChinaStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

WeexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheauditperformedinaccordancewithChinaStandardsonAuditing.Wealso:

(I)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.(II)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.(III)EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebytheManagement.(IV)ConcludeontheappropriatenessoftheManagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.(V)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.(VI)ObtainsufficientandappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsoleresponsibilityforourauditopinion.

Wecommunicatewiththosechargedwithgovernanceregardingtheplannedauditscope,timescheduleandsignificantauditfindings,includinganydeficienciesininternalcontrolofconcernthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Pan-ChinaCertifiedPublicAccountantsLLPChineseCertifiedPublicAccountant:WangHuansen

(EngagementPartner)Hangzhou·ChinaChineseCertifiedPublicAccountant:LinZhenhua

DateofReport:March18,2026

Theauditor’sreportandtheaccompanyingfinancialstatementsareEnglishtranslationsoftheChineseauditor’sreportandstatutoryfinancialstatementspreparedunderaccountingprinciplesandpracticesgenerallyacceptedinthePeople’sRepublicofChina.Thesefinancialstatementsarenotintendedtopresentthefinancialpositionandfinancialperformanceandcashflowsinaccordancewithaccountingprinciplesandpracticesgenerallyacceptedinothercountriesandjurisdictions.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ConsolidatedbalancesheetasatDecember31,2025

(ExpressedinRenminbiYuan)

Assets

NoteNo.

ClosingbalanceBeginningbalanceCurrentassets:

Cashandbankbalances1284,686,525.04529,242,725.36SettlementfundsLoanstootherbanksHeld-for-tradingfinancialassets21,050,256,058.41987,801,938.51DerivativefinancialassetsNotesreceivable3100,000.00Accountsreceivable444,898,083.7456,672,795.52ReceivablesfinancingAdvancespaid531,588.451,201,106.21PremiumsreceivableReinsuranceaccountsreceivableReinsurancereservereceivableOtherreceivables6747,900,491.527,438,040.83FinancialassetsunderreverserepoInventories71,099,359,619.253,636,840,229.34Contractassets829,035,256.2830,888,723.09AssetsheldforsaleNon-currentassetsduewithinoneyearOthercurrentassets966,133,465.24154,192,023.86

Totalcurrentassets3,322,301,087.935,404,377,582.72Non-currentassets:

LoansandadvancesDebtinvestmentsOtherdebtinvestmentsLong-termreceivablesLong-termequityinvestments10Otherequityinstrumentinvestments1114,571,511.8114,697,341.18Othernon-currentfinancialassetsInvestmentproperty12522,634,659.17515,925,116.54Fixedassets1314,949,900.4517,489,207.57Constructioninprogress14571,822.67ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassets15DevelopmentexpendituresGoodwillLong-termprepayments161,615,683.921,719,911.72Deferredtaxassets176,138,319.6233,571,496.94Othernon-currentassets

Totalnon-currentassets560,481,897.64583,403,073.95

Totalassets3,882,782,985.575,987,780,656.67

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ConsolidatedbalancesheetasatDecember31,2025(continued)

(ExpressedinRenminbiYuan)

Liabilities&Equity

NoteNo.

ClosingbalanceBeginningbalanceCurrentliabilities:

Short-termborrowings1950,000.001,563,000.00CentralbankloansLoansfromotherbanksHeld-for-tradingfinancialliabilitiesDerivativefinancialliabilitiesNotespayableAccountspayable20171,738,333.04464,488,982.30Advancesreceived21722,042.141,398,988.78Contractliabilities2228,400,659.201,298,146,232.35FinancialliabilitiesunderrepoAbsorbingdepositandinterbankdepositDepositsforagencysecuritytransactionDepositsforagencysecurityunderwritingEmployeebenefitspayable2332,757,342.8822,499,368.29Taxesandratespayable2426,922,082.5827,554,810.01Otherpayables25144,280,409.16561,016,653.17HandlingfeesandcommissionspayableReinsuranceaccountspayableLiabilitiesheldforsaleNon-currentliabilitiesduewithinoneyear2633,888,347.83Othercurrentliabilities277,565,002.87118,304,068.47

Totalcurrentliabilities412,435,871.872,528,860,451.20Non-currentliabilities:

InsurancepolicyreserveLong-termborrowings2862,273,677.82Bondspayable

Including:Preferredshares

PerpetualbondsLeaseliabilities29Long-termpayablesLong-termemployeebenefitspayableProvisionsDeferredincomeDeferredtaxliabilities17867,914.501,259,459.98Othernon-currentliabilities

Totalnon-currentliabilities867,914.5063,533,137.80

Totalliabilities413,303,786.372,592,393,589.00Equity:

Sharecapital291,011,660,000.001,011,660,000.00Otherequityinstruments

Including:Preferredshares

PerpetualbondsCapitalreserve30978,244,910.11978,244,910.11Less:TreasurysharesOthercomprehensiveincome3123,315,115.5223,060,416.31SpecialreserveSurplusreserve32275,253,729.26275,253,729.26GeneralriskreserveUndistributedprofit331,323,849,441.491,223,893,437.74Totalequityattributabletotheparentcompany3,612,323,196.383,512,112,493.42Non-controllinginterest-142,843,997.18-116,725,425.75

Totalequity3,469,479,199.203,395,387,067.67Totalliabilities&equity3,882,782,985.575,987,780,656.67

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ParentcompanybalancesheetasatDecember31,2025

(ExpressedinRenminbiYuan)

Assets

NoteNo.

ClosingbalanceBeginningbalanceCurrentassets:

Cashandbankbalances69,884,281.8383,656,432.61Held-for-tradingfinancialassets987,801,938.51DerivativefinancialassetsNotesreceivableAccountsreceivable14,843,552.767,200,138.91ReceivablesfinancingAdvancespaidOtherreceivables21,880,427,908.131,751,551,390.53Inventories312,474.69315,900.69ContractassetsAssetsheldforsaleNon-currentassetsduewithinoneyearOthercurrentassets1,294,922.051,037,878.95

Totalcurrentassets1,956,763,139.462,831,563,680.20Non-currentassets:

DebtinvestmentsOtherdebtinvestmentsLong-termreceivablesLong-termequityinvestments31,132,181,561.851,160,766,664.14Otherequityinstrumentinvestments14,571,511.8114,697,341.18Othernon-currentfinancialassetsInvestmentproperty387,434,080.02409,742,121.37Fixedassets9,186,628.0610,736,433.64Constructioninprogress571,822.67ProductivebiologicalassetsOil&gasassetsRight-of-useassetsIntangibleassetsDevelopmentexpendituresGoodwillLong-termprepayments1,209,606.83770,175.82Deferredtaxassets469,690.21Othernon-currentassets

Totalnon-currentassets1,545,155,211.241,597,182,426.36Totalassets3,501,918,350.704,428,746,106.56

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ParentcompanybalancesheetasatDecember31,2025(continued)

(ExpressedinRenminbiYuan)

Liabilities&Equity

NoteNo.

ClosingbalanceBeginningbalance

Currentliabilities:

Short-termborrowingsHeld-for-tradingfinancialliabilitiesDerivativefinancialliabilitiesNotespayableAccountspayable6,692,455.4813,684,223.19AdvancesreceivedContractliabilities94,227.6195,842.85Employeebenefitspayable21,771,697.0615,935,363.87Taxesandratespayable1,161,124.7812,314,051.54Otherpayables142,790,324.11854,613,311.67LiabilitiesheldforsaleNon-currentliabilitiesduewithinoneyear374,768.60Othercurrentliabilities4,711.394,792.15

Totalcurrentliabilities172,514,540.43897,022,353.87Non-currentliabilities:

Long-termborrowings62,273,677.82Bondspayable

Including:Preferredshares

PerpetualbondsLeaseliabilitiesLong-termpayablesLong-termemployeebenefitspayableProvisionsDeferredincomeDeferredtaxliabilities867,914.501,259,459.98Othernon-currentliabilities

Totalnon-currentliabilities867,914.5063,533,137.80

Totalliabilities173,382,454.93960,555,491.67Equity:

Sharecapital1,011,660,000.001,011,660,000.00Otherequityinstruments

Including:Preferredshares

PerpetualbondsCapitalreserve964,711,931.13964,711,931.13Less:TreasurysharesOthercomprehensiveincome1,928,633.862,023,005.89SpecialreserveSurplusreserve252,124,115.85252,124,115.85Undistributedprofit1,098,111,214.931,237,671,562.02

Totalequity3,328,535,895.773,468,190,614.89Totalliabilities&equity3,501,918,350.704,428,746,106.56

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ConsolidatedincomestatementfortheyearendedDecember31,2025

(ExpressedinRenminbiYuan)

Items

NoteNo.CurrentperiodcumulativePrecedingperiodcomparativeI.Totaloperatingrevenue1,482,872,299.36407,022,191.44Including:Operatingrevenue11,482,872,299.36407,022,191.44

InterestincomePremiumsearnedRevenuefromhandlingfeesandcommissionsII.Totaloperatingcost1,183,752,194.32426,847,390.83Including:Operatingcost11,069,812,444.74332,325,650.30InterestexpensesHandlingfeesandcommissionsSurrendervalueNetpaymentofinsuranceclaimsNetprovisionofinsurancepolicyreservePremiumbonusexpendituresReinsuranceexpensesTaxesandsurcharges221,879,412.1616,741,282.71Sellingexpenses320,775,223.4113,164,672.93Administrativeexpenses472,505,249.0370,118,532.01R&DexpensesFinancialexpenses5-1,220,135.02-5,502,747.12Including:Interestexpenses3,760,510.212,586,822.94Interestincome3,829,111.017,998,718.28Add:Otherincome631,652.46842,206.39Investmentincome(orless:losses)7-150,943,612.671,346,463.59Including:InvestmentincomefromassociatesandjointventuresGainsfromderecognitionoffinancialassetsatamortizedcostGainsonforeignexchange(orless:losses)Gainsonnetexposuretohedgingrisk(orless:losses)Gainsonchangesinfairvalue(orless:losses)816,621,332.2218,461,736.59Creditimpairmentloss9-2,086,760.74-8,953,080.52Assetsimpairmentloss10-2,407,322.73-375,188,159.83Gainsonassetdisposal(orless:losses)11-5,767.73195,840.20III.Operatingprofit(orless:losses)160,329,625.85-383,120,192.97Add:Non-operatingrevenue12943,633.722,414,677.03Less:Non-operatingexpenditures1337,332.37267,987.97IV.Profitbeforetax(orless:totalloss)161,235,927.20-380,973,503.91Less:Incometaxexpenses1461,682,858.60-3,377,545.61V.Netprofit(orless:netloss)99,553,068.60-377,595,958.30(I)Categorizedbythecontinuityofoperations

1.Netprofitfromcontinuingoperations(orless:netloss)99,553,068.60-377,595,958.30

2.Netprofitfromdiscontinuedoperations(orless:netloss)

(II)Categorizedbytheportionofequityownership

1.Netprofitattributabletoownersofparentcompany(orless:netloss)99,956,003.75-176,710,947.65

2.Netprofitattributabletonon-controllingshareholders(orless:netloss)-402,935.15-200,885,010.65VI.Othercomprehensiveincomeaftertax1,442,384.71-3,159,868.45Itemsattributabletotheownersoftheparentcompany254,699.21-2,259,043.13(I)Nottobereclassifiedsubsequentlytoprofitorloss-94,372.03279,697.38

1.Remeasurementsofthenetdefinedbenefitplan

2.Itemsunderequitymethodthatwillnotbereclassifiedtoprofitorloss

3.Changesinfairvalueofotherequityinstrumentinvestments-94,372.03279,697.38

4.Changesinfairvalueofowncreditrisk

5.Others

(II)Tobereclassifiedsubsequentlytoprofitorloss349,071.24-2,538,740.51

1.Itemsunderequitymethodthatmaybereclassifiedtoprofitorloss

2.Changesinfairvalueofotherdebtinvestments

3.Profitorlossfromreclassificationoffinancialassetsintoothercomprehensive

income

4.Provisionforcreditimpairmentofotherdebtinvestments

5.Cashflowhedgingreserve

6.Translationreserve349,071.24-2,538,740.51

7.Others

Itemsattributabletonon-controllingshareholders1,187,685.50-900,825.32VII.Totalcomprehensiveincome100,995,453.31-380,755,826.75

Itemsattributabletotheownersoftheparentcompany100,210,702.96-178,969,990.78

Itemsattributabletonon-controllingshareholders784,750.35-201,785,835.97VIII.Earningspershare(EPS):

(I)BasicEPS(yuanpershare)0.0988-0.17(II)DilutedEPS(yuanpershare)0.0988-0.17Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ParentcompanyincomestatementfortheyearendedDecember31,2025

(ExpressedinRenminbiYuan)

Items

NoteNo.

CurrentperiodcumulativePrecedingperiodcomparativeI.Operatingrevenue155,418,737.4966,748,188.58Less:Operatingcost132,383,899.8435,527,944.94

Taxesandsurcharges11,787,996.1810,897,850.09Sellingexpenses3,537,883.412,662,206.55Administrativeexpenses40,675,125.5446,350,929.47R&DexpensesFinancialexpenses3,293,463.09-38,414.46Including:Interestexpenses3,386,158.312,026,547.84

Interestincome940,122.041,621,311.93Add:Otherincome28,158.18810,791.58

Investmentincome(orless:losses)2915,013.901,346,463.59Including:InvestmentincomefromassociatesandjointventuresGainsfromderecognitionoffinancialassetsatamortizedcostGainsonnetexposuretohedgingrisk(orless:losses)Gainsonchangesinfairvalue(orless:losses)16,365,273.8118,461,736.59Creditimpairmentloss-102,913,935.37-208,718.92Assetsimpairmentloss-28,585,102.29-162,599,084.25Gainsonassetdisposal(orless:losses)-5,767.73224,495.95II.Operatingprofit(orless:losses)-150,455,990.07-170,616,643.47Add:Non-operatingrevenue97,134.224.56Less:Non-operatingexpenditures1,646.8331,796.55III.Profitbeforetax(orless:totalloss)-150,360,502.68-170,648,435.46Less:Incometaxexpenses-10,800,155.59-6,709,691.79IV.Netprofit(orless:netloss)-139,560,347.09-163,938,743.67(I)Netprofitfromcontinuingoperations(orless:netloss)-139,560,347.09-163,938,743.67(II)Netprofitfromdiscontinuedoperations(orless:netloss)V.Othercomprehensiveincomeaftertax-94,372.03279,697.38(I)Nottobereclassifiedsubsequentlytoprofitorloss-94,372.03279,697.38

1.Remeasurementsofthenetdefinedbenefitplan

2.Itemsunderequitymethodthatwillnotbereclassifiedtoprofit

orloss

3.Changesinfairvalueofotherequityinstrumentinvestments-94,372.03279,697.38

4.Changesinfairvalueofowncreditrisk

5.Others

(II)Tobereclassifiedsubsequentlytoprofitorloss

1.Itemsunderequitymethodthatmaybereclassifiedtoprofitor

loss

2.Changesinfairvalueofotherdebtinvestments

3.Profitorlossfromreclassificationoffinancialassetsintoother

comprehensiveincome

4.Provisionforcreditimpairmentofotherdebtinvestments

5.Cashflowhedgingreserve

6.Translationreserve

7.Others

VI.Totalcomprehensiveincome-139,654,719.12-163,659,046.29

VII.Earningspershare(EPS):

(I)BasicEPS(yuanpershare)(II)DilutedEPS(yuanpershare)Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ConsolidatedcashflowstatementfortheyearendedDecember31,2025(ExpressedinRenminbiYuan)

Items

NoteNo.

Currentperiodcumulative

PrecedingperiodcomparativeI.Cashflowsfromoperatingactivities:

Cashreceiptsfromsaleofgoodsorrenderingofservices249,184,246.74448,831,107.10NetincreaseofclientdepositandinterbankdepositNetincreaseofcentralbankloansNetincreaseofloansfromotherfinancialinstitutionsCashreceiptsfromoriginalinsurancecontractpremiumNetcashreceiptsfromreinsuranceNetincreaseofpolicy-holderdepositandinvestmentCashreceiptsfrominterest,handlingfeesandcommissionsNetincreaseofloansfromothersNetincreaseofrepurchaseNetcashreceiptsfromagencysecuritytransactionReceiptsoftaxrefund14,477,207.7520,414,313.02Othercashreceiptsrelatedtooperatingactivities2(1)4,802,922.1915,889,802.02

Subtotalofcashinflowsfromoperatingactivities268,464,376.68485,135,222.14Cashpaymentsforgoodspurchasedandservicesreceived159,265,542.61350,375,195.02NetincreaseofloansandadvancestoclientsNetincreaseofcentralbankdepositandinterbankdepositCashpaymentsforinsuranceindemnitiesoforiginalinsurancecontractsNetincreaseofloanstoothersCashpaymentsforinterest,handlingfeesandcommissionsCashpaymentsforpolicybonusCashpaidtoandonbehalfofemployees66,521,536.1276,680,764.14Cashpaymentsfortaxesandrates85,194,960.04133,539,738.45Othercashpaymentsrelatedtooperatingactivities2(2)52,801,771.8451,943,474.32

Subtotalofcashoutflowsfromoperatingactivities363,783,810.61612,539,171.93

Netcashflowsfromoperatingactivities-95,319,433.93-127,403,949.79II.Cashflowsfrominvestingactivities:

CashreceiptsfromwithdrawalofinvestmentsCashreceiptsfrominvestmentincome1(1)778,495.00777,600.00Netcashreceiptsfromthedisposaloffixedassets,intangibleassetsandotherlong-

termassets

1(2)162,736.20519,930.21Netcashreceiptsfromthedisposalofsubsidiaries&otherbusinessunits1(3)78,085.65568,863.59Othercashreceiptsrelatedtoinvestingactivities2(3)1,114,167,212.32Subtotalofcashinflowsfrominvestingactivities1,115,186,529.171,866,393.80Cashpaymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-

termassets

1(4)1,905,620.001,547,315.83CashpaymentsforinvestmentsNetincreaseofpledgedborrowingsNetcashpaymentsfortheacquisitionofsubsidiaries&otherbusinessunitsOthercashpaymentsrelatedtoinvestingactivities2(4)1,160,000,000.0090,000,000.00Subtotalofcashoutflowsfrominvestingactivities1,161,905,620.0091,547,315.83Netcashflowsfrominvestingactivities-46,719,090.83-89,680,922.03III.Cashflowsfromfinancingactivities:

CashreceiptsfromabsorbinginvestmentsIncluding:Cashreceivedbysubsidiariesfromnon-controllingshareholdersas

investmentsCashreceiptsfromborrowings50,000.001,563,000.00Othercashreceiptsrelatedtofinancingactivities

Subtotalofcashinflowsfromfinancingactivities50,000.001,563,000.00Cashpaymentsfortherepaymentofborrowings96,162,025.65117,562,497.60Cashpaymentsfordistributionofdividendsorprofitsandforinterestexpenses3,760,510.215,251,186.81Including:Cashpaidbysubsidiariestonon-controllingshareholdersasdividendor

profitOthercashpaymentsrelatedtofinancingactivities

Subtotalofcashoutflowsfromfinancingactivities99,922,535.86122,813,684.41

Netcashflowsfromfinancingactivities-99,872,535.86-121,250,684.41IV.Effectofforeignexchangeratechangesoncashandcashequivalents-107,272.9599,397.32V.Netincreaseincashandcashequivalents-242,018,333.57-338,236,158.91Add:Openingbalanceofcashandcashequivalents520,910,254.44859,146,413.35VI.Closingbalanceofcashandcashequivalents278,891,920.87520,910,254.44

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ParentcompanycashflowstatementfortheyearendedDecember31,2025

(ExpressedinRenminbiYuan)

Items

Currentperiod

cumulative

PrecedingperiodcomparativeI.Cashflowsfromoperatingactivities:

Cashreceiptsfromsaleofgoodsandrenderingofservices60,541,112.2873,948,934.37Receiptsoftaxrefund78,381.82Othercashreceiptsrelatedtooperatingactivities1,063,939.4492,592,202.32Subtotalofcashinflowsfromoperatingactivities61,605,051.72166,619,518.51Cashpaymentsforgoodspurchasedandservicesreceived14,700,881.22878,298.06Cashpaidtoandonbehalfofemployees32,496,371.8840,882,224.68Cashpaymentsfortaxesandrates13,179,103.8824,077,901.52Othercashpaymentsrelatedtooperatingactivities952,087,247.2242,931,087.13

Subtotalofcashoutflowsfromoperatingactivities1,012,463,604.20108,769,511.39

Netcashflowsfromoperatingactivities-950,858,552.4857,850,007.12II.Cashflowsfrominvestingactivities:

CashreceiptsfromwithdrawalofinvestmentsCashreceiptsfrominvestmentincome915,013.901,346,463.59Netcashreceiptsfromthedisposaloffixedassets,intangible

assetsandotherlong-termassets

1,507.50Netcashreceiptsfromthedisposalofsubsidiaries&other

businessunitsOthercashreceiptsrelatedtoinvestingactivities1,114,167,212.32

Subtotalofcashinflowsfrominvestingactivities1,115,083,733.721,346,463.59Cashpaymentsfortheacquisitionoffixedassets,intangibleassets

andotherlong-termassets

1,962,727.29365,798.00CashpaymentsforinvestmentsNetcashpaymentsfortheacquisitionofsubsidiaries&other

businessunitsOthercashpaymentsrelatedtoinvestingactivities110,000,000.0090,000,000.00

Subtotalofcashoutflowsfrominvestingactivities111,962,727.2990,365,798.00

Netcashflowsfrominvestingactivities1,003,121,006.43-89,019,334.41III.Cashflowsfromfinancingactivities:

CashreceiptsfromabsorbinginvestmentsCashreceiptsfromborrowingsOthercashreceiptsrelatedtofinancingactivities

SubtotalofcashinflowsfromfinancingactivitiesCashpaymentsfortherepaymentofborrowings62,648,446.42125,173.20Cashpaymentsfordistributionofdividendsorprofitsandfor

interestexpenses

3,386,158.312,026,547.84Othercashpaymentsrelatedtofinancingactivities

Subtotalofcashoutflowsfromfinancingactivities66,034,604.732,151,721.04

Netcashflowsfromfinancingactivities-66,034,604.73-2,151,721.04IV.EffectofforeignexchangeratechangesoncashandcashequivalentsV.Netincreaseincashandcashequivalents-13,772,150.78-33,321,048.33Add:Openingbalanceofcashandcashequivalents83,656,432.61116,977,480.94VI.Closingbalanceofcashandcashequivalents69,884,281.8383,656,432.61

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ConsolidatedstatementofchangesinequityfortheyearendedDecember31,2025(ExpressedinRenminbiYuan)

Items

CurrentperiodcumulativeEquityattributabletoparentcompany

Non-controlling

interest

TotalequitySharecapital

Otherequityinstruments

Capitalreserve

Less:

Treasuryshares

Othercomprehensive

income

Specialreserve

Surplusreserve

General

riskreserve

Undistributed

profitPreferred

shares

Perpetual

bonds

OthersI.Balanceattheendofprioryear1,011,660,000.00978,244,910.1123,060,416.31275,253,729.261,223,893,437.74-116,725,425.753,395,387,067.67Add:CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodBusinesscombinationundercommoncontrolOthersII.Balanceatthebeginningofcurrentyear1,011,660,000.00978,244,910.1123,060,416.31275,253,729.261,223,893,437.74-116,725,425.753,395,387,067.67III.Currentperiodincrease(orless:decrease)254,699.2199,956,003.75-26,118,571.4374,092,131.53(I)Totalcomprehensiveincome254,699.2199,956,003.75784,750.35100,995,453.31(II)Capitalcontributedorwithdrawnbyowners-26,903,321.78-26,903,321.78

1.Ordinarysharescontributedbyowners

2.Capitalcontributedbyholdersofotherequity

instruments

3.Amountofshare-basedpaymentincludedin

equity

4.Others-26,903,321.78-26,903,321.78(III)Profitdistribution

1.Appropriationofsurplusreserve

2.Appropriationofgeneralriskreserve

3.Appropriationofprofittoshareholders

4.Others

(IV)Internalcarry-overwithinequity

1.Transferofcapitalreservetocapital

2.Transferofsurplusreservetocapital

3.Surplusreservetocoverlosses

4.Changesindefinedbenefitplancarriedover

toretainedearnings

5.Othercomprehensiveincomecarriedoverto

retainedearnings

6.Others

(V)Specialreserve

1.Currentperiodappropriation

2.Currentperioduse

(VI)OthersIV.Balanceattheendofcurrentperiod1,011,660,000.00978,244,910.1123,315,115.52275,253,729.261,323,849,441.49-142,843,997.183,469,479,199.20

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ConsolidatedstatementofchangesinequityfortheyearendedDecember31,2025(continued)

(ExpressedinRenminbiYuan)

Items

PrecedingperiodcomparativeEquityattributabletoparentcompany

Non-controlling

interest

TotalequitySharecapital

Otherequityinstruments

Capitalreserve

Less:

Treasury

shares

Othercomprehensive

income

Specialreserve

Surplusreserve

General

riskreserve

Undistributed

profitPreferred

shares

Perpetual

bonds

OthersI.Balanceattheendofprioryear1,011,660,000.00978,244,910.1125,319,459.44275,253,729.261,400,604,385.3985,060,410.223,776,142,894.42Add:CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodBusinesscombinationundercommoncontrolOthersII.Balanceatthebeginningofcurrentyear1,011,660,000.00978,244,910.1125,319,459.44275,253,729.261,400,604,385.3985,060,410.223,776,142,894.42III.Currentperiodincrease(orless:decrease)-2,259,043.13-176,710,947.65-201,785,835.97-380,755,826.75(I)Totalcomprehensiveincome-2,259,043.13-176,710,947.65-201,785,835.97-380,755,826.75(II)Capitalcontributedorwithdrawnbyowners

1.Ordinarysharescontributedbyowners

2.Capitalcontributedbyholdersofotherequity

instruments

3.Amountofshare-basedpaymentincludedin

equity

4.Others

(III)Profitdistribution

1.Appropriationofsurplusreserve

2.Appropriationofgeneralriskreserve

3.Appropriationofprofittoshareholders

4.Others

(IV)Internalcarry-overwithinequity

1.Transferofcapitalreservetocapital

2.Transferofsurplusreservetocapital

3.Surplusreservetocoverlosses

4.Changesindefinedbenefitplancarriedover

toretainedearnings

5.Othercomprehensiveincomecarriedoverto

retainedearnings

6.Others

(V)Specialreserve

1.Currentperiodappropriation

2.Currentperioduse

(VI)OthersIV.Balanceattheendofcurrentperiod1,011,660,000.00978,244,910.1123,060,416.31275,253,729.261,223,893,437.74-116,725,425.753,395,387,067.67

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ParentcompanystatementofchangesinequityfortheyearendedDecember31,2025

(ExpressedinRenminbiYuan)

Items

CurrentperiodcumulativeSharecapital

Otherequityinstruments

Capitalreserve

Less:

Treasury

shares

Othercomprehensive

income

Specialreserve

SurplusreserveUndistributedprofitTotalequityPreferred

shares

Perpetualbonds

OthersI.Balanceattheendofprioryear1,011,660,000.00964,711,931.132,023,005.89252,124,115.851,237,671,562.023,468,190,614.89Add:CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodOthersII.Balanceatthebeginningofcurrentyear1,011,660,000.00964,711,931.132,023,005.89252,124,115.851,237,671,562.023,468,190,614.89III.Currentperiodincrease(orless:decrease)-94,372.03-139,560,347.09-139,654,719.12(I)Totalcomprehensiveincome-94,372.03-139,560,347.09-139,654,719.12(II)Capitalcontributedorwithdrawnbyowners

1.Ordinarysharescontributedbyowners

2.Capitalcontributedbyholdersofotherequity

instruments

3.Amountofshare-basedpaymentincludedinequity

4.Others

(III)Profitdistribution

1.Appropriationofsurplusreserve

2.Appropriationofprofittoshareholders

3.Others

(IV)Internalcarry-overwithinequity

1.Transferofcapitalreservetocapital

2.Transferofsurplusreservetocapital

3.Surplusreservetocoverlosses

4.Changesindefinedbenefitplancarriedoverto

retainedearnings

5.Othercomprehensiveincomecarriedovertoretained

earnings

6.Others

(V)Specialreserve

1.Currentperiodappropriation

2.Currentperioduse

(VI)OthersIV.Balanceattheendofcurrentperiod1,011,660,000.00964,711,931.131,928,633.86252,124,115.851,098,111,214.933,328,535,895.77

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.ParentcompanystatementofchangesinequityfortheyearendedDecember31,2025(continued)(ExpressedinRenminbiYuan)

Items

PrecedingperiodcomparativeSharecapital

Otherequityinstruments

Capitalreserve

Less:

Treasuryshares

Othercomprehensive

income

Specialreserve

Surplusreserve

Undistributed

profit

TotalequityPreferred

shares

Perpetual

bonds

OthersI.Balanceattheendofprioryear1,011,660,000.00964,711,931.131,743,308.51252,124,115.851,401,610,305.693,631,849,661.18Add:CumulativechangesofaccountingpoliciesErrorcorrectionofpriorperiodOthersII.Balanceatthebeginningofcurrentyear1,011,660,000.00964,711,931.131,743,308.51252,124,115.851,401,610,305.693,631,849,661.18III.Currentperiodincrease(orless:decrease)279,697.38-163,938,743.67-163,659,046.29(I)Totalcomprehensiveincome279,697.38-163,938,743.67-163,659,046.29(II)Capitalcontributedorwithdrawnbyowners

1.Ordinarysharescontributedbyowners

2.Capitalcontributedbyholdersofotherequity

instruments

3.Amountofshare-basedpaymentincludedinequity

4.Others

(III)Profitdistribution

1.Appropriationofsurplusreserve

2.Appropriationofprofittoshareholders

3.Others

(IV)Internalcarry-overwithinequity

1.Transferofcapitalreservetocapital

2.Transferofsurplusreservetocapital

3.Surplusreservetocoverlosses

4.Changesindefinedbenefitplancarriedoverto

retainedearnings

5.Othercomprehensiveincomecarriedovertoretained

earnings

6.Others

(V)Specialreserve

1.Currentperiodappropriation

2.Currentperioduse

(VI)OthersIV.Balanceattheendofcurrentperiod1,011,660,000.00964,711,931.132,023,005.89252,124,115.851,237,671,562.023,468,190,614.89

Legalrepresentative:ChenMingOfficerinchargeofaccounting:WangJianfeiHeadofaccountingdepartment:ZhouHongpu

ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd

NotestotheFinancialStatements

2025

AmountinRMB

1、Basicinformationofthecompany

ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd.(hereinafterreferredtoasthecompanyorthecompany)wasreorganizedandestablishedasajointstocklimitedcompanyonthebasisoftheformerShenzhenSpecialEconomicZoneRealEstateCorporationwiththeapprovalofthegeneralofficeoftheShenzhenMunicipalPeople'sgovernment.ItwasregisteredwiththeShenzhenAdministrationforIndustryandCommerceofGuangdongProvinceinJuly1993andisheadquarteredinShenzhen,GuangdongProvince.Theunifiedsocialcreditcodeofthecompanyis91440300192179585N,theregisteredcapitalis1,011,660,000.00yuan,andthetotalnumberofsharesis1,011,660,000shares(parvalue1yuanpershare).Amongthem,891,660,000A-sharesand120,000,000B-shareswereoutstandingwithoutrestrictions.Thecompany'sshareswerelistedandtradedontheShenzhenStockExchangeonSeptember15,1993andJanuary10,1994,respectively.Thecompanybelongstotherealestateindustry.Themainbusinessactivitiesarerealestatedevelopmentandcommercialhousingsales,propertyleasingandmanagement,commodityretailandtrade,hotelbusiness,equipmentinstallationandmaintenance,construction,interiordecorationandotherbusinesses.Thefinancialstatementshavebeenapprovedbythe28thmeetingoftheeighthboardofdirectorsofthecompanyonMarch18,2026.

2、Basisofpreparationoffinancialstatements

（1）Basisofcompilation

Thefinancialstatementsofthecompanyarepreparedonagoingconcernbasis.

（2）Sustainabilityassessment

Thecompanyhasnoeventsorcircumstancesthatcausematerialdoubtsaboutitsabilitytocontinueasagoingconcernwithin12monthsfromtheendofthereportingperiod.

3、Significantaccountingpoliciesandaccountingestimates

Importantnote:accordingtotheactualproductionandoperationcharacteristics,thecompanyhasformulatedspecificaccountingpoliciesandaccountingestimatesfortransactionsoreventssuchasimpairmentoffinancialinstruments,inventory,depreciationoffixedassets,constructioninprogress,intangibleassetsandrevenuerecognition.

（1）Statementofcompliancewithaccountingstandardsforbusinessenterprises

Thefinancialstatementspreparedbythecompanycomplywiththerequirementsoftheaccountingstandardsforbusinessenterprisesandtrulyandcompletelyreflectthefinancialposition,operatingresultsandcashflowofthecompany.

（2）Fiscalperiod

ThefiscalyearstartsonJanuary1andendsonDecember31oftheGregoriancalendar.

（3）Businesscycle

Thebusinesscycleofthecompany'sbusinessisrelativelyshort,and12monthsisusedastheliquidityclassificationstandardofassetsandliabilities.Thebusinesscycleoftherealestateindustryfromrealestatedevelopmenttosalesrealizationisgenerallymorethan12months,andthespecificcycleisdeterminedaccordingtothedevelopmentproject,anditsbusinesscycleisusedastheliquidityclassificationstandardofassetsandliabilities.

（4）Bookkeepingbasecurrency

RMBisusedasthebookkeepingbasecurrency.ThecompanyanditsoverseasHongKongsubsidiariesadoptRMBasthebookkeepingbasecurrency,andtheoverseassubsidiariesofgreatwallrealestateCo.,Ltd.areengagedinoverseasoperations,andtheUSdollar,thecurrencyinthemaineconomicenvironmentinwhichtheyoperate,isselectedasthebookkeepingbasecurrency.ThecurrencyusedbythecompanyforthepreparationofthesefinancialstatementsisRMB.

（5）Determinationmethodandselectionbasisofimportancestandard

Thecompany'spreparationanddisclosureofthefinancialstatementscomplywiththeprincipleofmateriality.Themattersdisclosedinthenotestothefinancialstatementsthatinvolvethejudgmentofthematerialitystandardandthedeterminationmethodandselectionbasisofthematerialitystandardareasfollows:

Judgmentinvolvingimportancecriteria

d

Determinationmethodandselectionbasisof

Recoveryorreversalofbaddebtreserves

Thesingleamountexceeds0.5%ofthetotalassetsImportantwriteoffnotesreceivableThesingleamountexceeds0.5%ofthetotalassetsImportantaccountsreceivablewithsingle

Thesingleamountexceeds0.5%ofthetotalassetsRecoveryorreversalofbaddebtreserves

Thesingleamountexceeds0.5%ofthetotalassetsImportantwriteoffaccountsreceivableThesingleamountexceeds0.5%ofthetotalassetsOtherreceivableswithimportantsingle

Thesingleamountexceeds0.5%ofthetotalassetsRecoveryorreversalofbaddebtreserves

Thesingleamountexceeds0.5%ofthetotalassetsImportantwriteoffofotherreceivablesThesingleamountexceeds0.5%ofthetotalassetsImportantcontractassetswithindividual

Thesingleamountexceeds0.5%ofthetotalassetsRecoveryorreversalofprovisionfor

Thesingleamountexceeds0.5%ofthetotalassets

ImportantwriteoffcontractassetsThesingleamountexceeds0.5%ofthetotalassetsSignificantchangeinbookvalueof

contract

Thechangeamountexceeds0.5%ofthetotalassetsImportantprepaymentsolderthan1yearThesingleamountexceeds0.5%ofthetotalassetsImportantprojectsunderconstruction

Thetotalinvestmentinasingleprojectexceeds

SignificantoverdueborrowingsThesingleamountexceeds0.5%ofthetotalassetsSignificantoverdueinterestpayableThesingleamountexceeds0.5%ofthetotalassetsImportantaccountspayableolderthan1

Thesingleamountexceeds0.5%ofthetotalassetsOtheraccountspayablewithimportant

yearaccount

Thesingleamountexceeds0.5%ofthetotalassetsImportantadvancereceiptsolderthan1

Thesingleamountexceeds0.5%ofthetotalassetsImportantcontractliabilitieswithan

Thesingleamountexceeds0.5%ofthetotalassetsSignificantchangeinbookvalueof

Thechangeamountexceeds0.5%ofthetotalassetsCashflowfromimportantinvestment

Thesingleamountexceeds5%ofthetotalassetsImportantsubsidiariesandnonwholly-

activitiesowned

Totalassets/totalrevenue/totalprofitexceeds15%

Importantjointventuresandassociates

Thebookvalueofasinglelong-termequity

investmentexceeds15%ofthegroup'snet

assets/theinvestmentincomecalculatedbyasingle

equitymethodexceeds15%ofthegroup'stotal

profit

（6）Accountingtreatmentmethodsforbusinesscombinationsunderthecommoncontrolandnotunderthecommoncontrol

1.Accountingtreatmentofbusinesscombinationunderthecommoncontrol

Theassetsandliabilitiesobtainedbythecompanyinthemergerofenterprisesshallbemeasuredaccordingtothebookvalueofthecombinedpartyintheconsolidatedfinancialstatementsofthefinalcontrolleronthemergerdate.Thecompanyadjuststhecapitalreserveaccordingtothedifferencebetweenthebookvalueshareoftheowner'sequityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollerandthebookvalueofthemergerconsiderationpaidorthetotalfacevalueofthesharesissued;Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.

2.Accountingtreatmentofbusinesscombinationsnotunderthecommoncontrol

Ontheacquisitiondate,thedifferencebetweenthemergercostandthefairvalueshareoftheidentifiablenetassetsoftheacquireeobtainedinthemergerisrecognizedasgoodwill;Ifthemergercostislessthanthefairvalueshareoftheidentifiablenetassetsoftheacquireeobtainedinthemerger,thefairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesoftheacquireeobtainedandthemeasurementofthemergercostshallbereviewedfirst.Ifthemergercostisstilllessthanthefairvalueshareoftheidentifiablenetassetsoftheacquireeobtainedinthemergerafterreview,thedifferenceshallbeincludedinthecurrentprofitandloss.

（7）Judgmentcriteriaforcontrolandpreparationmethodofconsolidatedfinancialstatements

1.Judgmentofcontrol

Itisrecognizedascontrolifithasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelevantactivitiesoftheinvestee,andhastheabilitytouseitspowerovertheinvesteetoaffectitsvariablereturnamount.

2.Preparationmethodofconsolidatedfinancialstatements

Theparentcompanyincludesallsubsidiariesunderitscontrolinthescopeofconsolidationoftheconsolidatedfinancialstatements.TheconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheparentcompanyanditssubsidiariesandarepreparedbytheparentcompanyinaccordancewiththeaccountingstandardsforenterprisesNo.33-consolidatedfinancialstatementsinaccordancewithotherrelevantinformation.

（8）Classificationofjointventurearrangementsandaccountingtreatmentofjointoperations

1.Jointventurearrangementsaredividedintojointventuresandjointventures.

2.Whenthecompanyisajointventurepartytoajointoperation,thefollowingitemsrelatedtotheshareofinterestsinthejointoperationshallberecognized:

(1)Confirmtheassetsheldseparatelyandtheassetsheldjointlyaccordingtotheholdingshare;

(2)Recognizetheliabilitiesassumedseparatelyandtheliabilitiesassumedjointlyaccordingtotheholdingshare;

(3)Recognizetheincomegeneratedbythesaleofthecompany'sshareofjointoperatingoutput;

(4)Recognizetheincomegeneratedfromthesaleofassetsinthejointoperationaccordingtothecompany'sholdingshare;

(5)Confirmtheexpensesincurredseparatelyandtheexpensesincurredinjointoperationaccordingtotheshareheldbythecompany.

（9）Criteriafordeterminingcashandcashequivalents

Cashlistedinthecashflowstatementreferstocashonhandanddepositsthatcanbeusedforpaymentatanytime.Cashequivalentsrefertoinvestmentsheldbyenterpriseswithshortterm,strongliquidity,easyconversiontoknownamountsofcashandlittleriskofvaluechanges.

（10）Foreigncurrencybusinessandtranslationofforeigncurrencystatements

1.Translationofforeigncurrencybusiness

Whenforeigncurrencytransactionsareinitiallyrecognized,theyareconvertedintoRMBatthespotexchangerateonthedateofthetransaction.Onthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedatthespotexchangerateonthebalancesheetdate.Theexchangedifferencearisingfromdifferentexchangeratesisincludedinthecurrentprofitandloss,exceptfortheexchangedifferencebetweentheprincipalandinterestofforeigncurrencyspecialloansrelatedtothepurchaseandconstructionofassetseligibleforcapitalization;NonmonetaryitemsinforeigncurrenciesmeasuredathistoricalcostshallstillbeconvertedatthespotexchangerateonthedateoftransactionwithoutchangingtheirRMBamount;Nonmonetaryitemsinforeigncurrenciesmeasuredatfairvaluearetranslatedatthespotexchangerateonthedateofdeterminationoffairvalue,andthedifferenceisincludedincurrentprofitsandlossesorothercomprehensiveincome.

2.Translationofforeigncurrencyfinancialstatements

Theassetsandliabilitiesinthebalancesheetshallbeconvertedatthespotexchangerateon

thebalancesheetdate;Exceptforthe"undistributedprofit"item,otheritemsofowner'sequityareconvertedatthespotexchangerateonthetransactiondate;Theincomeandexpenseitemsintheincomestatementshallbeconvertedattheapproximateexchangerateofthespotexchangerateonthedateoftransaction.Thetranslationdifferenceofforeigncurrencyfinancialstatementsarisingfromtheaboveconversionisincludedinothercomprehensiveincome.

（11）Financialinstruments

1.Classificationoffinancialassetsandliabilities

Financialassetsaredividedintothefollowingthreecategoriesatinitialrecognition:(1)financialassetsmeasuredatamortizedcost;(2)Financialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome;(3)Financialassetsmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitandloss.Financialliabilitiesaredividedintothefollowingfourcategoriesatinitialrecognition:(1)financialliabilitiesmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitandloss;(2)Thetransferoffinancialassetsdoesnotmeettheconditionsforterminationofrecognitionorcontinuestobeinvolvedinthefinancialliabilitiesformedbythetransferredfinancialassets;(3)Financialguaranteecontractsthatdonotbelongto(1)or(2)above,andloancommitmentsthatdonotbelongto(1)aboveandlendatalowermarketinterestrate;(4)Financialliabilitiesmeasuredatamortizedcost.

2.Recognitionbasis,measurementmethodandconditionsforterminationofrecognitionoffinancialassetsandfinancialliabilities

(1)Recognitionbasisandinitialmeasurementmethodoffinancialassetsandfinancialliabilities

Afinancialassetorfinancialliabilityisrecognizedwhenthecompanybecomesapartytoafinancialinstrumentcontract.Whenfinancialassetsorfinancialliabilitiesareinitiallyrecognized,theyaremeasuredatfairvalue;Forfinancialassetsandfinancialliabilitiesmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitandloss,therelevanttransactioncostsaredirectlyincludedinthecurrentprofitandloss;Forothertypesoffinancialassetsorfinancialliabilities,therelevanttransactioncostsareincludedintheinitialrecognitionamount.However,iftheaccountsreceivableinitiallyrecognizedbythecompanydoesnotcontainmajorfinancingcomponentsorthecompanydoesnotconsiderthefinancingcomponentsincontractsnotexceedingoneyear,theinitialmeasurementshallbemadeinaccordancewiththetransactionpricedefinedintheaccountingstandardsforenterprisesNo.14-revenue.

(2)Subsequentmeasurementmethodsoffinancialassets

1)Financialassetsmeasuredatamortizedcost

Theeffectiveinterestratemethodisadoptedforsubsequentmeasurementaccordingtotheamortizedcost.Gainsorlossesarisingfromfinancialassetsmeasuredatamortizedcostandnotpartofanyhedgingrelationshipareincludedinthecurrentprofitandlosswhentheyarederecognized,reclassified,amortizedorrecognizedasimpairedundertheeffectiveinterestratemethod.

2)Investmentindebtinstrumentsatfairvaluethroughothercomprehensiveincome

Fairvalueisusedforsubsequentmeasurement.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedusingtheeffectiveinterestratemethodareincludedinthecurrentprofitandloss,whileothergainsorlossesareincludedinothercomprehensiveincome.Atthetimeofterminationofrecognition,thecumulativegainsorlossespreviouslyincludedinother

comprehensiveincomeshallbetransferredoutofothercomprehensiveincomeandincludedinthecurrentprofitandloss.

3)Equityinstrumentinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome

Fairvalueisusedforsubsequentmeasurement.Dividendsobtained(exceptforthepartofinvestmentcostrecovery)areincludedinthecurrentprofitandloss,andothergainsorlossesareincludedinothercomprehensiveincome.Atthetimeofterminationofrecognition,thecumulativegainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredoutofothercomprehensiveincomeandincludedinretainedearnings.

4)Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss

Subsequentmeasurementiscarriedoutatfairvalue,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedinthecurrentprofitandloss,unlessthefinancialassetispartofthehedgingrelationship.

(3)Subsequentmeasurementmethodsoffinancialliabilities

1)Financialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitandloss

Suchfinancialliabilitiesincludetradingfinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedasmeasuredatfairvalueandwhosechangesareincludedinthecurrentprofitandloss.Suchfinancialliabilitiesaresubsequentlymeasuredatfairvalue.Theamountofchangeinfairvalueoffinancialliabilitiesdesignatedasmeasuredatfairvaluethroughprofitorlossduetochangesinthecompany'sowncreditriskisincludedinothercomprehensiveincome,unlessthetreatmentwillcauseorexpandtheaccountingmismatchinprofitorloss.Othergainsorlossesarisingfromsuchfinancialliabilities(includinginterestexpenses,exceptchangesinfairvaluecausedbychangesinthecompany'sowncreditrisk)areincludedinthecurrentprofitandloss,unlessthefinancialliabilitiesarepartofthehedgingrelationship.Atthetimeofterminationofrecognition,thecumulativegainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredoutofothercomprehensiveincomeandincludedinretainedearnings.

2)Financialliabilitiesformedbythetransferoffinancialassetsthatdonotmeettheconditionsforterminationofrecognitionorcontinuetobeinvolvedinthetransferredfinancialassets

ItismeasuredinaccordancewiththerelevantprovisionsoftheaccountingstandardsforenterprisesNo.23-transferoffinancialassets.

3)Financialguaranteecontractsthatdonotbelongto1)or2)above,andloancommitmentsthatdonotbelongto1)aboveandlendatalowermarketinterestrate

Afterinitialrecognition,subsequentmeasurementshallbemadeaccordingtothehigherofthefollowingtwoamounts:①Theamountoflossreservesdeterminedinaccordancewiththeimpairmentprovisionsoffinancialinstruments;②ThebalanceoftheinitiallyrecognizedamountafterdeductingthecumulativeamortizationdeterminedinaccordancewiththerelevantprovisionsoftheaccountingstandardsforenterprisesNo.14-revenue.

4)Financialliabilitiesmeasuredatamortizedcost

Theeffectiveinterestratemethodisusedtomeasureatamortizedcost.Gainsorlossesarisingfromfinancialliabilitiesmeasuredatamortizedcostandnotpartofanyhedgingrelationshipareincludedinthecurrentprofitandlosswhentheyarederecognizedandamortizedaccordingtotheeffectiveinterestratemethod.

(4)Derecognitionoffinancialassetsandfinancialliabilities

1)Whenoneofthefollowingconditionsismet,therecognitionoffinancialassetsisterminated:

①Thecontractualrighttocollectcashflowsfromfinancialassetshasbeenterminated;

②Financialassetshavebeentransferred,andthetransfermeetstheprovisionsoftheaccountingstandardsforenterprisesNo.23-transferoffinancialassetsontheterminationofrecognitionoffinancialassets.

2)Whenthecurrentobligationofafinancialliability(orpartofit)hasbeendischarged,therecognitionofthefinancialliability(orpartofthefinancialliability)shallbeterminatedaccordingly.

3.Recognitionbasisandmeasurementmethodoftransferoffinancialassets

Ifthecompanytransfersalmostalltherisksandrewardsoftheownershipofafinancialasset,itshallterminatetherecognitionofthefinancialasset,andtherightsandobligationsarisingorretainedinthetransfershallbeseparatelyrecognizedasassetsorliabilities;Ifalmostalltherisksandrewardsoftheownershipoffinancialassetsareretained,thetransferredfinancialassetsshallcontinuetoberecognized.Ifthecompanyneithertransfersnorretainsalmostalltherisksandremunerationoftheownershipoffinancialassets,itshallbedealtwithasfollows:(1)ifitdoesnotretaincontroloverthefinancialassets,therecognitionofthefinancialassetsshallbeterminated,andtherightsandobligationsarisingorretainedinthetransfershallbeseparatelyrecognizedasassetsorliabilities;(2)Ifthecontroloverthefinancialassetsisretained,therelevantfinancialassetsshallberecognizedaccordingtothedegreeofcontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.

Iftheoveralltransferoffinancialassetsmeetstheconditionsforterminationofrecognition,thedifferencebetweenthefollowingtwoamountsshallbeincludedinthecurrentprofitandloss:

(1)thebookvalueofthetransferredfinancialassetsonthedateofterminationofrecognition;(2)Thesumoftheconsiderationreceivedfromthetransferoffinancialassetsandtheamountofthecorrespondingderecognizedpartofthecumulativechangesinfairvalueoriginallydirectlyincludedinothercomprehensiveincome(thefinancialassetsinvolvedinthetransferaredebtinstrumentinvestmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome).Ifapartofafinancialassetistransferredandthetransferredpartasawholemeetstheconditionsforterminationofrecognition,theoverallbookvalueofthefinancialassetbeforetransfershallbeapportionedbetweenthepartthatisterminatedandthepartthatcontinuestoberecognizedaccordingtotheirrespectiverelativefairvaluesonthetransferdate,andthedifferencebetweenthefollowingtwoamountsshallbeincludedinthecurrentprofitandloss:(1)thebookvalueofthepartthatisterminated;(2)Thesumoftheconsiderationofthepartwhoserecognitionisterminatedandtheamountofthepartwhoserecognitionisterminatedcorrespondingtothecumulativeamountoffairvaluechangesoriginallydirectlyincludedinothercomprehensiveincome(thefinancialassetsinvolvedintransferaredebtinstrumentinvestmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome).

4.Determinationmethodoffairvalueoffinancialassetsandfinancialliabilities

Thecompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandsupportedbysufficientavailabledataandotherinformationtodeterminethefairvalueofrelevantfinancialassetsandfinancialliabilities.Thecompanydividestheinputvaluesusedinthevaluationtechnologyintothefollowinglevelsandusestheminturn:

(1)Theinputvalueofthefirstlevelistheunadjustedquotationofthesameassetsorliabilitiesthatcanbeobtainedonthemeasurementdateintheactivemarket;

(2)Thesecondlevelinputvalueisthedirectlyorindirectlyobservableinputvalueofrelatedassetsorliabilitiesinadditiontothefirstlevelinputvalue,including:thequotationofsimilarassetsorliabilitiesintheactivemarket;Quotationsforidenticalorsimilarassetsorliabilitiesininactivemarkets;Otherobservableinputsotherthanquotation,suchasinterestrateandyieldcurveobservableduringnormalquotationinterval;Inputvalueofmarketverification,etc;

(3)Thethirdlevelofinputvalueistheunobservableinputvalueofrelatedassetsorliabilities,includinginterestratesthatcannotbedirectlyobservedorverifiedbyobservablemarketdata,stockvolatility,futurecashflowofdisposalobligationsundertakeninbusinessmergers,financialforecastsmadeusingtheirowndata,etc.

5.Impairmentoffinancialinstruments

Onthebasisofexpectedcreditlosses,thecompanycarriesoutimpairmenttreatmentonfinancialassetsmeasuredatamortizedcost,debtinstrumentinvestmentsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome,contractassets,leasereceivables,loancommitmentsotherthanfinancialliabilitiesclassifiedasfinancialliabilitiesmeasuredatfairvaluewithchangesincludedincurrentprofitandloss,financialliabilitiesnotmeasuredatfairvaluewithchangesincludedincurrentprofitandloss,orfinancialguaranteecontractsnotbelongingtofinancialassetswhosetransferdoesnotmeettheconditionsforterminationofrecognitionorcontinuestobeinvolvedinthetransferredfinancialassets,andrecognizeslossreserves.

Expectedcreditlossesrefertotheweightedaveragevalueofcreditlossesoffinancialinstrumentsweightedbytheriskofdefault.Creditlossreferstothedifferencebetweenallcontractcashflowsreceivableunderthecontractandallcashflowsexpectedtobereceivedbythecompanydiscountedattheoriginaleffectiveinterestrate,thatis,thepresentvalueofallcashshortages.Amongthem,thefinancialassetspurchasedorgeneratedbythecompanythathavesufferedcreditimpairmentarediscountedattheeffectiveinterestrateadjustedbythecreditofthefinancialassets.

Forfinancialassetspurchasedorgeneratedwithcreditimpairment,thecompanyonlyrecognizesthecumulativechangesinexpectedcreditlossesduringthewholedurationafterinitialrecognitionaslossreservesonthebalancesheetdate.

Forleasereceivables,receivablesandcontractassetsformedbytransactionsregulatedbytheaccountingstandardsforenterprisesNo.14-income,thecompanyusesasimplifiedmeasurementmethodtomeasurethelossreserveaccordingtotheexpectedcreditlossamountequivalenttothewholeduration.

Forfinancialassetsotherthantheabovemeasurementmethods,thecompanyassesseswhetheritscreditriskhasincreasedsignificantlysinceinitialrecognitiononeachbalancesheetdate.Ifthecreditriskhasincreasedsignificantlysinceinitialrecognition,thecompanymeasuresthelossreserveaccordingtotheamountofexpectedcreditlossduringthewholeduration;Ifthecreditriskhasnotincreasedsignificantlysinceinitialrecognition,thecompanymeasuresthelossreserveaccordingtotheamountofexpectedcreditlossofthefinancialinstrumentinthenext12months.

Thecompanyusesavailablereasonableandevidentiaryinformation,includingforward-lookinginformation,todeterminewhetherthecreditriskoffinancialinstrumentshasincreasedsignificantlysinceinitialrecognitionbycomparingtheriskofdefaultoffinancialinstrumentson

thebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondate.

Onthebalancesheetdate,ifthecompanyjudgesthatafinancialinstrumenthasonlyalowcreditrisk,itisassumedthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.Thecompanyassessestheexpectedcreditriskandmeasurestheexpectedcreditlossonthebasisofasinglefinancialinstrumentoracombinationoffinancialinstruments.Whenbasedontheportfoliooffinancialinstruments,thecompanydividesfinancialinstrumentsintodifferentportfoliosbasedoncommonriskcharacteristics.

Thecompanyremeasurestheexpectedcreditlossoneachbalancesheetdate,andtheincreaseorreversalofthelossprovisionthusformedisincludedinthecurrentprofitandlossasanimpairmentlossorgain.Forfinancialassetsmeasuredatamortizedcost,thelossprovisionshallbeoffsetagainstthebookvalueofthefinancialassetslistedinthebalancesheet;Forcreditor'srightsinvestmentsmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincome,thecompanyrecognizesitslossreservesinothercomprehensiveincomeanddoesnotoffsetthebookvalueofthefinancialasset.

6.Setoffoffinancialassetsandfinancialliabilities

Financialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetanddonotoffseteachother.However,ifthefollowingconditionsaremetatthesametime,thecompanyshalllisttheminthebalancesheetatthenetamountaftermutualoffset:(1)thecompanyhasthelegalrighttooffsettherecognizedamount,andsuchlegalrightiscurrentlyenforceable;(2)Thecompanyplanstosettleatanetamount,orrealizethefinancialassetsandsettlethefinancialliabilitiesatthesametime.

Forthetransferoffinancialassetsthatdonotmeettheconditionsforterminationofrecognition,thecompanywillnotoffsetthetransferredfinancialassetsandrelatedliabilities.

（12）Recognitioncriteriaandprovisionmethodsforexpectedcreditlossesofreceivablesandcontractassets

1.ReceivablesandcontractassetswithexpectedcreditlosseswithdrawnaccordingtothecombinationofcreditriskcharacteristicsPortfoliocategoryBasisfordeterminingportfolio

Methodsofmeasuring

expected

Bankacceptancebillsreceivable

Notetype

Referringtotheexperienceofhistoricalcreditloss,combinedwiththecurrentsituationandtheforecastoffutureeconomicconditions,theexpectedcreditlossiscalculatedthroughdefaultriskexposureandtheexpectedcreditlossratefor

CommercialacceptancebillsreceivableAccountsreceivableportfolioofrelatedpartieswithinthescope

Natureofpayment

Referringtotheexperienceofhistoricalcreditloss,combinedwiththecurrentsituationandtheforecastoffutureeconomicconditions,theexpectedcreditlossiscalculatedthroughdefaultriskexposureandtheexpectedcreditlossratefor

Accountsreceivable-portfolio

NatureofpaymentAccountsreceivable

NatureofpaymentAccountsreceivable-accounts

Natureofpayment

PortfoliocategoryBasisfordeterminingportfolio

Methodsofmeasuring

expected

thewholedurationportfoliosOtherreceivables-portfolioofreceivablesfromgovernment

Natureofpayment

Referringtohistoricalcredit

lossexperience,combined

withthecurrentsituationand

theforecastoffuture

economicconditions,the

expectedcreditlossis

calculatedthroughdefault

riskexposureandthe

expectedcreditlossratein

thenext12monthsorthe

wholeduration

Otherreceivables-employee

departmentsreserve

NatureofpaymentOtherreceivables-combination

NatureofpaymentOtherreceivablesportfolioof

NatureofpaymentOtherreceivables-portfolioofothercurrentaccounts

NatureofpaymentContractassetrealestatesales

receivableportfolio

Natureofpayment

Referringtotheexperienceofhistoricalcreditloss,combinedwiththecurrentsituationandtheforecastoffutureeconomicconditions,theexpectedcreditlossiscalculatedthroughdefaultriskexposureandtheexpectedcreditlossrateforthewholedurationContractassetconstructionportfolio

Natureofpayment

2.Recognitioncriteriaforreceivablesandcontractassetswithindividualprovisionforexpectedcreditlosses

Forreceivablesandcontractassetswithsignificantlydifferentcreditriskandportfoliocreditrisk,thecompanywithdrawsexpectedcreditlossesonasinglebasis.

（13）Inventory

1.Classificationofinventory

Inventoryincludesdevelopmentland,developmentproducts,developmentproductstemporarilyleasedforsaleintheprocessofdevelopmentandoperation,aswellasdevelopmentcostsintheprocessofdevelopment.

2.Valuationmethodofissuedinventory

(1)Materialsandequipmentissuedshallbepricedindividually.

(2)Duringthedevelopmentoftheproject,thelandfordevelopmentshallbeallocatedaccordingtothefloorareaofthedevelopmentproductsandthegradecoefficientoftheoccupiedlandandincludedinthedevelopmentcostoftheproject.

(3)Theissueddevelopmentproductsareaccountedforaccordingtothecostcoefficientsharingmethod.

(4)Thedevelopmentproductsandturnoverhousestemporarilyleasedforsaleareamortizedaveragelybystagesaccordingtotheestimatedservicelifeofthecompany'ssimilarfixedassets.

(5)Ifthepublicsupportingfacilitiesarecompletedearlierthantherelevantdevelopmentproducts,theyshallbeincludedinthedevelopmentcostsoftherelevantdevelopmentprojectsaccordingtotheconstructionareadistributionoftherelevantdevelopmentprojectsafterthefinalsettlementofthecompletionofthepublicsupportingfacilities;Ifthepublicsupportingfacilitiesarecompletedlaterthantherelevantdevelopmentproducts,thepublicsupportingfacilitiesfeeshallbeaccruedfortherelevantdevelopmentproductsfirst,andthecostoftherelevant

developmentproductsshallbeadjustedaccordingtothedifferencebetweentheactualamountandtheaccruedamountafterthecompletionofthepublicsupportingfacilities.

3.Inventorysystemofinventory

Theinventorysystemofinventoryisaperpetualinventorysystem.

4.Amortizationmethodoflow-valueconsumablesandpackagingmaterials

(1)Lowvalueconsumables

Amortizationiscarriedoutinbatchesaccordingtothenumberoftimesofuse.

(2)Packaging

Amortizationiscarriedoutinbatchesaccordingtothenumberoftimesofuse.

5.Provisionforinventorydepreciation

Onthebalancesheetdate,inventoryismeasuredatthelowerofcostandnetrealisablevalue,andprovisionforinventorydepreciationismadeaccordingtothedifferencebetweencostandnetrealisablevalue.Forinventorydirectlyusedforsale,itsnetrealizedvalueshallbedeterminedbytheestimatedsellingpriceoftheinventoryminustheestimatedsellingexpensesandrelatedtaxesinthenormalprocessofproductionandoperation;Fortheinventorythatneedstobeprocessed,inthenormalprocessofproductionandoperation,itsnetrealizedvalueshallbedeterminedbytheestimatedsellingpriceofthefinishedproductsproducedminustheestimatedcosttobeincurredatthetimeofcompletion,theestimatedsellingexpensesandrelevanttaxesandfees;Onthebalancesheetdate,ifthereisacontractpriceagreementforsomepartsofthesameinventoryandnocontractpriceforotherparts,thenetrealisablevalueshallbedeterminedrespectively,andcomparedwithitscorrespondingcost,theamountofprovisionforinventorydepreciationorreversalshallbedeterminedrespectively.

（14）Long-termequityinvestments

1.Judgmentofjointcontrolandsignificantimpact

Accordingtotherelevantagreements,thereiscommoncontroloveranarrangement,andtherelevantactivitiesofthearrangementmustbeunanimouslyagreedbytheparticipantssharingcontrolrightsbeforemakingdecisions,whichisrecognizedasjointcontrol.Ithasthepowertoparticipateinthedecision-makingofthefinancialandoperatingpoliciesoftheinvestedentity,butitisnotabletocontrolorjointlycontroltheformulationofthesepolicieswithotherparties,whichisrecognizedasasignificantimpact.

2.Determinationofinvestmentcost

(1)Ifthemergerofenterprisesunderthesamecontrolisformed,andthemergerpartytakesthepaymentofcash,thetransferofnoncashassets,theassumptionofdebtsortheissuanceofequitysecuritiesasthemergerconsideration,theshareofthebookvalueoftheowner'sequityofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollershallberegardedasitsinitialinvestmentcostonthemergerdate.Thecapitalreserveisadjustedforthedifferencebetweentheinitialinvestmentcostoflong-termequityinvestmentandthebookvalueofthemergerconsiderationpaidorthetotalfacevalueofthesharesissued;Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.

Thecompanyrealizesthelong-termequityinvestmentformedbythemergerofenterprisesunderthesamecontrolstepbystepthroughmultipletransactions,andjudgeswhetheritbelongstoa"packagedeal".Ifitbelongstoa"packagedeal",eachtransactionshallbeaccountedforasatransactiontoobtaincontrol.Ifitdoesnotbelongtothe"packagedeal",onthemergerdate,theinitialinvestmentcostshallbedeterminedaccordingtotheshareofthebookvalueofthenet

assetsofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollerafterthemerger.Thecapitalreserveshallbeadjustedforthedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentonthemergerdateandthesumofthebookvalueofthelong-termequityinvestmentbeforethemergerplusthebookvalueofthenewpaymentconsiderationforthesharesfurtherobtainedonthemergerdate;Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.

(2)Ifthemergerofenterprisesnotunderthesamecontrolisformed,thefairvalueofthemergerconsiderationpaidontheacquisitiondateshallberegardedasitsinitialinvestmentcost.

Thecompanyrealizesthelong-termequityinvestmentformedbythemergerofenterprisesnotunderthesamecontrolstepbystepthroughmultipletransactions,anddistinguishesbetweenindividualfinancialstatementsandconsolidatedfinancialstatementsforrelevantaccountingtreatment:

1)Inindividualfinancialstatements,thesumofthebookvalueoftheequityinvestmentoriginallyheldandthenewinvestmentcostisregardedastheinitialinvestmentcostcalculatedaccordingtothecostmethod.

2)Intheconsolidatedfinancialstatements,judgewhetheritbelongstoa"packagedeal".Ifitbelongstoa"packagedeal",eachtransactionshallbeaccountedforasatransactiontoobtaincontrol.Ifitisnota"packagedeal",theequityoftheacquireeheldbeforetheacquisitiondateshallberemeasuredaccordingtothefairvalueoftheequityontheacquisitiondate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentinvestmentincome;Iftheequityoftheacquireeheldbeforetheacquisitiondateinvolvesothercomprehensiveincomeundertheequitymethod,theothercomprehensiveincomerelatedtoitshallbetransferredtothecurrentincomeontheacquisitiondate.However,othercomprehensiveincomearisingfromtheremeasurementofnetliabilitiesorchangesinnetassetsofthedefinedbenefitplanbytheinvesteeisexcluded.

(3)Exceptforthemergerofenterprises:ifitisobtainedbypayingcash,theactualpurchasepricepaidshallberegardedasitsinitialinvestmentcost;Ifitisobtainedbyissuingequitysecurities,thefairvalueofissuingequitysecuritiesshallberegardedasitsinitialinvestmentcost;Ifitisobtainedbydebtrestructuring,itsinitialinvestmentcostshallbedeterminedinaccordancewiththeaccountingstandardsforenterprisesNO.12-debtrestructuring;Ifitisobtainedthroughtheexchangeofnonmonetaryassets,itsinitialinvestmentcostshallbedeterminedinaccordancewiththeaccountingstandardsforenterprisesNo.7-exchangeofnonmonetaryassets.

3.Subsequentmeasurementandprofitandlossrecognitionmethod

Thelong-termequityinvestmentcontrolledbytheinvestedunitisaccountedforbythecostmethod;Thelong-termequityinvestmentinjointventuresandjointventuresshallbeaccountedforbytheequitymethod.

4.Disposalofinvestmentinsubsidiariesthroughmultipletransactionsstepbystepuntillossofcontrol

(1)Whetheritbelongstothejudgmentprincipleof"packagedeal"

Iftheequityinvestmentinasubsidiaryisdisposedofstepbystepthroughmultipletransactionsuntilthecontrolrightislost,thecompanyjudgeswhetherthestepbysteptransactionbelongstoa"packagetransaction"bycombiningthetermsofthetransactionagreementofeachstepofthestepbysteptransaction,thedisposalconsiderationobtainedrespectively,theobjectof

sellingequity,thedisposalmethod,thedisposaltimeandotherinformation.Theterms,conditionsandeconomicimpactofeachtransactionmeetoneormoreofthefollowingcircumstances,whichusuallyindicatethatthemultipletransactionsbelongtoa"packagedeal":

1)Thesetransactionswereenteredintosimultaneouslyorwithmutualinfluenceinmind;

2)Thesedealsasawholecanachieveacompletebusinessoutcome;

3)Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;

4)Atransactionisuneconomicalonitsown,butitiseconomicalwhenconsideredwithothertransactions.

(2)Accountingtreatmentnotbelongingto"packagedeal"

1)Individualfinancialstatements

Thedifferencebetweenthebookvalueoftheequitydisposedofandtheactualpriceobtainedshallbeincludedinthecurrentprofitandloss.Fortheremainingequity,ifitstillhasasignificantimpactontheinvestedentityorimplementsjointcontrolwithotherparties,itshallbeaccountedforbytheequitymethod;Iftheinvestedentitycannolongerbecontrolled,jointlycontrolledorsignificantlyaffected,itshallbeaccountedforinaccordancewiththerelevantprovisionsoftheaccountingstandardsforenterprisesNo.22-recognitionandmeasurementoffinancialinstruments.

2)Consolidatedfinancialstatements

Beforethelossofcontrol,thedifferencebetweenthedisposalpriceandtheshareofnetassetscontinuouslycalculatedbythesubsidiaryfromtheacquisitiondateorthemergerdatecorrespondingtothedisposaloflong-termequityinvestmentshallbeadjustedtothecapitalreserve(capitalpremium).Ifthecapitalpremiumisinsufficienttooffset,theretainedearningsshallbeoffset.

Whenthecontrolovertheatomiccompanyislost,theremainingequityshallberemeasuredatitsfairvalueonthedateoflossofcontrol.Thedifferencebetweenthesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequityminustheshareofthenetassetsoftheoriginalsubsidiarycontinuouslycalculatedfromtheacquisitiondateorthemergerdatecalculatedaccordingtotheoriginalshareholdingratioshallbeincludedintheinvestmentincomeofthecurrentperiodwhenthecontrolrightislost,andthegoodwillshallbeoffset.Othercomprehensiveincomerelatedtotheequityinvestmentoftheoriginalsubsidiaryshallbeconvertedtothecurrentinvestmentincomewhenthecontrolrightislost.

(3)Accountingtreatmentof"packagedeal"

1)Individualfinancialstatements

Eachtransactionisaccountedforasatransactionthatdisposesofsubsidiariesandlosescontrol.However,thedifferencebetweeneachdisposalpriceandthebookvalueofthelong-termequityinvestmentcorrespondingtothedisposaloftheinvestmentbeforethelossofcontrolisrecognizedasothercomprehensiveincomeinindividualfinancialstatementsandtransferredtotheprofitsandlossesofthecurrentperiodwhenthecontrolislost.

2)Consolidatedfinancialstatements

Eachtransactionisaccountedforasatransactionthatdisposesofsubsidiariesandlosescontrol.However,beforethelossofcontrol,thedifferencebetweeneachdisposalpriceandtheshareofnetassetsofthesubsidiarycorrespondingtothedisposalofinvestmentshallberecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatements,andshallbetransferredtotheprofitsandlossesofthecurrentperiodwhenthecontrolislost.

（15）Investmentproperties

1.Investmentrealestateincludesleasedlanduserights,landuserightsheldandpreparedfortransferafterappreciation,andleasedbuildings.

2.Investmentrealestateisinitiallymeasuredatcost,followedbycostmode,anddepreciatedoramortizedinthesamewayasfixedassetsandintangibleassets.

（16）Fixedassets

1.Recognitionconditionsoffixedassets

Fixedassetsrefertotangibleassetsheldfortheproductionofcommodities,theprovisionoflaborservices,leasingoroperationandmanagementwithaservicelifeofmorethanonefiscalyear.Fixedassetsarerecognizedwheneconomicbenefitsarelikelytoflowinandcostscanbereliablymeasured.

2.Depreciationmethodofvariousfixedassets

Category

Depreciationmethod

Depreciationlife(years)

Residualvaluerate(%)

Annualdepreciation

rate

Housesandbuildings

straight-line

305.003.17Transportequipment

straight-line

methodmethod

65.0015.83Electronicsandothers

straight-linemethod

55.0019.00

（17）Constructioninprogress

1.Theconstructioninprogressshallberecognizedwhentheeconomicbenefitsarelikelytoflowinandthecostcanbereliablymeasured.Constructioninprogressismeasuredattheactualcostincurredbeforetheassetreachestheexpectedusablestate.

2.Whentheconstructioninprogressreachestheexpectedusablestate,itshallbetransferredtofixedassetsaccordingtotheactualcostoftheproject.Ifithasreachedtheexpectedusablestatebuthasnotyethandledthefinalsettlementofcompletion,itshallbetransferredtofixedassetsaccordingtotheestimatedvaluefirst,andthentheoriginalestimatedvalueshallbeadjustedaccordingtotheactualcostafterthefinalsettlementofcompletion,buttheoriginaldepreciationshallnotbeadjusted.

（18）Borrowingcosts

1.Recognitionprincipleofcapitalizationofborrowingcosts

Borrowingcostsincurredbythecompanythatcanbedirectlyattributabletothepurchase,constructionorproductionofassetseligibleforcapitalizationshallbecapitalizedandincludedinthecostofrelatedassets;Otherborrowingcostsarerecognizedasexpenseswhenincurredandincludedinthecurrentprofitandloss.

2.Capitalizationperiodofborrowingcosts

(1)Whentheborrowingcostsmeetthefollowingconditionsatthesametime,capitalizationbegins:1)assetexpenditurehasoccurred;2)Borrowingcostshavebeenincurred;3)Theacquisitionandconstructionorproductionactivitiesnecessarytomaketheassetsreachtheintendedusableorsaleablestatehavebegun.

(2)Iftheassetseligibleforcapitalizationareabnormallyinterruptedintheprocessofacquisition,constructionorproduction,andtheinterruptiontimeexceedsthreeconsecutivemonths,thecapitalizationofborrowingcostsshallbesuspended;Borrowingcostsincurredduringtheinterruptionperiodarerecognizedascurrentexpensesuntiltheacquisitionandconstructionof

assetsortheresumptionofproductionactivities.

(3)Whentheassetspurchased,constructedorproducedthatmeetthecapitalizationconditionsreachthepredeterminedusableorsaleablestate,thecapitalizationofborrowingcostsshallstop.

3.Capitalizationrateandcapitalizationamountofborrowingcosts

Whereaspecialloanisborrowedforthepurchaseandconstructionorproductionofassetseligibleforcapitalization,theamountofinterestthatshouldbecapitalizedshallbedeterminedbasedontheinterestexpensesactuallyincurredinthecurrentperiodofthespecialloan(includingtheamortizationofdiscountsorpremiumsdeterminedaccordingtotheeffectiveinterestratemethod),lesstheinterestincomeobtainedbydepositingtheunusedloanfundsinthebankortheinvestmentincomeobtainedbytemporaryinvestment;Ifageneralloanisoccupiedfortheacquisitionandconstructionorproductionofassetsthatmeetthecapitalizationconditions,theamountofinterestthatshouldbecapitalizedonthegeneralloanshallbecalculatedanddeterminedaccordingtotheweightedaverageoftheassetexpenditureofthecumulativeassetexpenditureexceedingthespecialloanmultipliedbythecapitalizationrateofthegeneralloan.

（19）Intangibleassets

1.Intangibleassetsincludesoftware,landuserights,etc.,whichareinitiallymeasuredatcost.

2.Intangibleassetswithlimitedservicelifeshallbeamortizedsystematicallyandreasonablywithintheservicelifeaccordingtotheexpectedrealizationmodeofeconomicbenefitsrelatedtotheintangibleassets,andiftheexpectedrealizationmodecannotbereliablydetermined,thestraightlinemethodshallbeusedforamortization.Thedetailsareasfollows:

ProjectsServicelifeanditsdeterminationbasis

Amortization

method

software

Theexpectedrealizationmodeofeconomicbenefitsrelatedtointangibleassets,3-5years

Straightlinemethod

3.Intangibleassetswithuncertainservicelifearenotamortized,andthecompanyreviewstheservicelifeoftheintangibleassetsineachaccountingperiod.

（20）Impairmentofsomelong-termassets

Forlong-termequityinvestment,investmentrealestatemeasuredbycostmodel,fixedassets,constructioninprogress,righttouseassets,intangibleassetswithlimitedservicelifeandotherlong-termassets,iftherearesignsofimpairmentonthebalancesheetdate,therecoverableamountisestimated.Intangibleassetswithuncertaingoodwillandservicelifeformedbybusinesscombination,regardlessofwhethertherearesignsofimpairment,aretestedforimpairmenteveryyear.Goodwillistestedforimpairmentincombinationwithitsrelatedassetgrouporassetgroupportfolio.

Iftherecoverableamountoftheabove-mentionedlong-termassetsislowerthanitsbookvalue,theprovisionforassetimpairmentshallberecognizedaccordingtothedifferenceandincludedinthecurrentprofitandloss.

（21）Longtermdeferredexpenses

Theaccountingoflong-termdeferredexpenseshasbeenpaid,andtheamortizationperiodismorethanoneyear(excludingoneyear).Long-termdeferredexpensesarerecordedaccordingtotheactualamountincurredandamortizedevenlybystagesduringthebenefitperiodorwithintheprescribedperiod.Ifthelong-termdeferredexpenseitemcannotbenefitthesubsequentaccountingperiod,theamortizedvalueoftheitemthathasnotyetbeenamortizedwillbe

transferredtothecurrentprofitandloss.

（22）Employeecompensation

1.Employeeremunerationincludesshort-termremuneration,postemploymentbenefits,terminationbenefitsandotherlong-termemployeebenefits.

2.Accountingtreatmentofshort-termremuneration

Duringtheaccountingperiodwhenemployeesprovideservicestothecompany,theshort-termremunerationactuallyincurredshallberecognizedasliabilitiesandincludedinthecurrentprofitandlossorrelatedassetcosts.

3.Accountingtreatmentofpostemploymentbenefits

Postemploymentbenefitsaredividedintodefinedcontributionplansanddefinedbenefitplans.

(1)Duringtheaccountingperiodwhenemployeesprovideservicestothecompany,theamountpayablecalculatedaccordingtothedefinedcontributionplanisrecognizedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.

(2)Theaccountingtreatmentofthedefinedbenefitplanusuallyincludesthefollowingsteps:

1)Accordingtotheexpectedcumulativewelfareunitmethod,unbiasedandconsistentactuarialassumptionsareusedtoestimatetherelevantdemographicvariablesandfinancialvariables,measuretheobligationsarisingfromtheestablishmentofthebenefitplan,anddeterminetheperiodoftherelevantobligations.Atthesametime,theobligationsarisingfromtheestablishmentofthebenefitplanarediscountedtodeterminethepresentvalueoftheobligationsoftheestablishmentofthebenefitplanandthecurrentservicecost;

2)Ifthereareassetsinthedefinedbenefitplan,thedeficitorsurplusformedbythepresentvalueoftheobligationsofthedefinedbenefitplanminusthefairvalueoftheassetsofthedefinedbenefitplanshallberecognizedasthenetliabilitiesornetassetsofadefinedbenefitplan.Ifthereisasurplusinthedefinedbenefitplan,thenetassetsofthedefinedbenefitplanshallbemeasuredatthelowerofthesurplusofthedefinedbenefitplanandtheupperlimitofassets;

3)Attheendoftheperiod,thecostofemployeeremunerationarisingfromthedefinedbenefitplanisrecognizedasservicecost,netinterestonnetliabilitiesornetassetsofthedefinedbenefitplan,andchangesarisingfromremeasurementofnetliabilitiesornetassetsofthedefinedbenefitplan.Amongthem,servicecostandnetinterestonnetliabilitiesornetassetsofthedefinedbenefitplanareincludedincurrentprofitandlossorrelatedassetcosts.Changesarisingfromremeasurementofnetliabilitiesornetassetsofthedefinedbenefitplanareincludedinothercomprehensiveincome,andarenotallowedtobereversedtoprofitandlossinsubsequentaccountingperiods,buttheseamountsrecognizedinothercomprehensiveincomecanbetransferredwithinthescopeofequity.

4.Accountingtreatmentofterminationbenefits

Theterminationbenefitsprovidedtoemployeesshallberecognizedastheemployeecompensationliabilitiesarisingfromtheterminationbenefitsassoonaspossible,whicheverisearlier,andshallbeincludedinthecurrentprofitandloss:(1)whenthecompanycannotunilaterallywithdrawtheterminationbenefitsprovidedduetotheterminationoflaborrelationsplansorlayoffs;(2)Whenthecompanyconfirmsthecostsorexpensesrelatedtothereorganizationinvolvingthepaymentofterminationbenefits.

5.Accountingtreatmentofotherlong-termemployeebenefits

Otherlong-termbenefitsprovidedtoemployeesthatmeettheconditionsofthedefined

contributionplanshallbeaccountedforinaccordancewiththerelevantprovisionsofthedefinedcontributionplan;Inaddition,otherlong-termbenefitsshallbeaccountedforinaccordancewiththerelevantprovisionsofthedefinedbenefitplan.Inordertosimplifytherelevantaccountingtreatment,thetotalnetamountofemployeecompensationcostsarisingfromthemshallberecognizedasservicecosts,netinterestonnetliabilitiesornetassetsofotherlong-termemployeewelfare,andchangesinnetliabilitiesornetassetsofotherlong-termemployeewelfareshallbeincludedinthecurrentprofitandlossorrelatedassetcosts.

（23）Accountingmethodofmaintenancefund

Accordingtotherelevantprovisionsoftheplacewherethedevelopmentprojectislocated,themaintenancefundshallbecollectedfromthebuyerorwithdrawnbythecompanyintothedevelopmentcostoftherelevantdevelopmentproductswhenthedevelopmentproductsaresold(pre-sale),andshallbeuniformlyhandedovertothemanagementdepartmentofthemaintenancefund.

（24）Qualitymarginaccountingmethod

Thequalitydepositshallbereservedfromtheprojectpaymentoftheconstructionunitaccordingtotheprovisionsoftheconstructioncontract.Themaintenancefeeincurredduringthewarrantyperiodofthedevelopmentproductshallbeoffsetagainstthequalitymargin;Upontheexpirationoftheagreedwarrantyperiodforthedevelopedproducts,thebalanceofthequalitydepositshallbereturnedtotheconstructionunit.

（25）Revenue

1.Revenuerecognitionprinciples

Onthecommencementdateofthecontract,thecompanyevaluatesthecontract,identifieseachindividualperformanceobligationcontainedinthecontract,anddetermineswhethereachindividualperformanceobligationisperformedwithinacertainperiodoftimeoratacertainpointintime.

Ifoneofthefollowingconditionsismet,itbelongstotheperformanceobligationwithinacertainperiodoftime,otherwiseitbelongstotheperformanceobligationatacertainpointoftime:

(1)thecustomerobtainsandconsumestheeconomicbenefitsbroughtaboutbythecompany'sperformanceatthesametimeasthecompany'sperformance;(2)Customerscancontrolthegoodsunderconstructionintheprocessofperformanceofthecompany;(3)Thegoodsproducedintheprocessofperformancebythecompanyhaveirreplaceableuses,andthecompanyhastherighttocollectpaymentfortheperformancepartthathasbeencompletedsofarduringthewholecontractperiod.

Fortheperformanceobligationsperformedwithinacertainperiodoftime,thecompanyshallrecognizetherevenueaccordingtotheperformanceprogressduringthatperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostincurredisexpectedtobecompensated,revenueshallberecognizedaccordingtotheamountofcostincurreduntiltheperformanceprogresscanbereasonablydetermined.Fortheperformanceobligationsperformedatacertaintimepoint,revenueisrecognizedwhenthecustomerobtainscontroloftherelevantgoodsorservices.Injudgingwhetherthecustomerhasobtainedcontrolofthegoods,thecompanyconsidersthefollowingsigns:(1)thecompanyenjoysthecurrentcollectionrightinrespectofthegoods,thatis,thecustomerhasthecurrentpaymentobligationinrespectofthegoods;(2)Thecompanyhastransferredthelegalownershipofthecommoditytothecustomer,thatis,thecustomerhasownedthelegalownershipofthecommodity;(3)Thecompanyhastransferredthe

commodityinkindtothecustomer,thatis,thecustomerhasoccupiedthecommodityinkind;(4)Thecompanyhastransferredthemainrisksandrewardsoftheownershipofthecommoditytothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsoftheownershipofthecommodity;(5)Thecustomerhasacceptedtheproduct;(6)Othersignsthatcustomershavegainedcontrolofthegoods.

2.Revenuemeasurementprinciples

(1)Thecompanyshallmeasuretheincomeaccordingtothetransactionpriceapportionedtoeachindividualperformanceobligation.Thetransactionpriceistheamountofconsiderationthecompanyisexpectedtobeentitledtoreceiveasaresultofthetransferofgoodsorservicestocustomers,excludingpaymentsreceivedonbehalfofthirdpartiesandpaymentsexpectedtobereturnedtocustomers.

(2)Ifthereisavariableconsiderationinthecontract,thecompanyshalldeterminethebestestimateofthevariableconsiderationaccordingtotheexpectedvalueorthemostlikelyamount,butthetransactionpriceincludingthevariableconsiderationshallnotexceedtheamountthatwillmostlikelynotbesignificantlyreversedwhentherelevantuncertaintiesareeliminated.

(3)Ifthereisasignificantfinancingcomponentinthecontract,thecompanyshalldeterminethetransactionpriceaccordingtotheamountpayableassumingthatthecustomerwillpayincashwhenobtainingcontrolofthegoodsorservices.Thedifferencebetweenthetransactionpriceandthecontractconsiderationisamortizedbytheeffectiveinterestratemethodduringthecontractperiod.

(4)Ifthecontractcontainstwoormoreperformanceobligations,thecompanyshallapportionthetransactionpricetoeachindividualperformanceobligationonthecommencementdateofthecontractinaccordancewiththerelativeproportionoftheindividualsellingpriceofthegoodspromisedbyeachindividualperformanceobligation.

3.Specificmethodofrevenuerecognition

(1)Specificmethodsforrecognizingrealestatedevelopmentandsalesrevenue

Thecompany'srealestatesalesbusinessbelongstotheperformanceobligationtobefulfilledatacertainpointintime.Therealizationofsalesrevenueshallberecognizedwhenthedevelopmentproductshavebeencompletedandaccepted,thesalescontracthasbeensignedandtheobligationsstipulatedinthecontracthavebeenfulfilled,theentrynoticeorannouncementhasbeenissuedtotheowner,therealestatehasbeenactuallydeliveredtotheownerorthedeliverydatestipulatedinthecontracthasexpired,thefullhousepricehasbeencharged,andtherelevantcostsincurredortobeincurredcanbereliablymeasured.

(2)Providespecificmethodsforrecognizingpropertyserviceincome

Thecompany'sprovisionofpropertymanagementservicesbelongstotheperformanceobligationtobeperformedwithinacertainperiodoftime,andrevenueisrecognizedaccordingtotheperformanceprogress.Thecompanyshalldeterminetheperformanceprogressoftheservicesaccordingtothetimeschedule.

(3)Recognitionmethodofengineeringconstructionincome

Thecompanyprovidesconstructionengineeringservices.Asthecustomerobtainsandconsumestheeconomicbenefitsbroughtaboutbythecompany'sperformanceatthesametimeasthecompanyperformsthecontract,andthecompanyhastherighttocollectfundsfortheperformancepartthathasbeencompletedsofarduringthewholecontractperiod,thecompanyregardsitastheperformanceobligationtoperformwithinacertainperiodoftime,andrecognizes

revenueaccordingtotheperformanceprogress,unlesstheperformanceprogresscannotbereasonablydetermined.Thecompanydeterminestheperformanceprogressofprovidingservicesinaccordancewiththeinvestmentmethod.Iftheperformanceprogresscannotbereasonablydetermined,andthecostincurredbythecompanyisexpectedtobecompensated,therevenueshallberecognizedaccordingtotheamountofcostincurreduntiltheperformanceprogresscanbereasonablydetermined.

(4)Otherrevenuerecognitionmethods

Otherincomeincludeshoteloperatingincome,etc.forhotelroomincome,ascustomersobtainandconsumetheeconomicbenefitsbroughtaboutbythecompany'sperformanceatthesametimeasthecompany'sperformance,thecompanyregardsitasaperformanceobligationtobeperformedwithinacertainperiodoftime,andrecognizestheincomeaccordingtotheperformanceprogressduringtheaccountingperiodofprovidingservices.Forotherincome,accordingtotheprovisionsofrelevantcontractsandagreements,therealizationofincomeisrecognizedwhenthecustomerhasobtainedthecontrolrightofrelevantcommoditiesandtherelevantfundshavebeenreceivedortherighttocollect.

（26）Contractacquisitioncostandcontractperformancecost

Iftheincrementalcostincurredbythecompanytoobtainthecontractisexpectedtoberecovered,itshallberecognizedasanassetasthecostofobtainingthecontract.

Ifthecostincurredbythecompanyfortheperformanceofthecontractisnotapplicabletothescopeofrelevantstandardssuchasinventory,fixedassetsorintangibleassets,andthefollowingconditionsaremetatthesametime,itshallberecognizedasanassetasthecostofcontractperformance:

1.Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsclearlybornebythecustomerandothercostsincurredsolelyasaresultofthecontract;

2.Thecostincreasesthecompany'sresourcesforfulfillingitsperformanceobligationsinthefuture;

3.Thecostisexpectedtoberecovered.

Thecompanyamortizestheassetsrelatedtothecontractcostonthesamebasisastherecognitionoftherevenuefromgoodsorservicesrelatedtotheassets,whichisincludedinthecurrentprofitandloss.

Ifthebookvalueofanassetrelatedtothecontractcostishigherthantheremainingconsiderationexpectedtobeobtainedduetothetransferofgoodsorservicesrelatedtotheassetminustheestimatedcosttobeincurred,thecompanyshallmakeanimpairmentprovisionfortheexcessandrecognizeitasanassetimpairmentloss.Ifthefactorsofimpairmentinthepreviousperiodchangeafterthat,sothattheremainingconsiderationexpectedtobeobtainedforthetransferofgoodsorservicesrelatedtotheassetminustheestimatedcosttobeincurredishigherthanthebookvalueoftheasset,theoriginalprovisionforassetimpairmentshallbereversedandincludedinthecurrentprofitandloss,butthebookvalueoftheassetafterthereversalshallnotexceedthebookvalueoftheassetonthereversaldateassumingthatnoprovisionforimpairmentismade.

（27）Contractassetsandliabilities

Thecompanylistscontractassetsorcontractliabilitiesinthebalancesheetaccordingtotherelationshipbetweentheperformanceofperformanceobligationsandcustomerpayments.The

companyshallpresentthecontractassetsandcontractliabilitiesunderthesamecontractatanetamountafteroffsettingeachother.Therightofthecompanytoreceiveconsiderationfromcustomersunconditionally(thatis,onlydependingonthepassageoftime)islistedasareceivable,andtherighttoreceiveconsiderationforgoodsthathavebeentransferredtocustomers(dependingonfactorsotherthanthepassageoftime)islistedasacontractasset.

Thecompanyliststheobligationtotransfergoodstocustomersforconsiderationreceivedorreceivablefromcustomersascontractliabilities.

（28）Governmentsubsidies

1.Governmentsubsidiesshallberecognizedwhenthefollowingconditionsaremetatthesametime:(1)thecompanycanmeettheconditionsattachedtogovernmentsubsidies;(2)Companiesreceivegovernmentsubsidies.Ifthegovernmentsubsidyisamonetaryasset,itshallbemeasuredaccordingtotheamountreceivedorreceivable.Ifthegovernmentsubsidyisanonmonetaryasset,itshallbemeasuredatfairvalue;Ifthefairvaluecannotbeobtainedreliably,itshallbemeasuredatthenominalamount.

2.Judgmentbasisandaccountingtreatmentmethodofgovernmentsubsidiesrelatedtoassets

Governmentdocumentsstipulatethatgovernmentsubsidiesusedforthepurchaseandconstructionortheformationoflong-termassetsinotherwaysareclassifiedasgovernmentsubsidiesrelatedtoassets.Ifthegovernmentdocumentsarenotclear,thejudgmentshallbebasedonthebasicconditionsthatmustbemettoobtainthesubsidy,andthegovernmentsubsidyrelatedtoassetsshallbebasedontheformationoflong-termassetsbypurchaseandconstructionorothermeans.Governmentsubsidiesrelatedtoassetsshalloffsetthebookvalueofrelatedassetsorberecognizedasdeferredincome.Ifthegovernmentsubsidiesrelatedtoassetsarerecognizedasdeferredincome,theyshallbeincludedinprofitsandlossesbystagesinareasonableandsystematicmannerwithintheservicelifeoftherelevantassets.Governmentsubsidiesmeasuredinnominalamountsaredirectlyincludedinthecurrentprofitsandlosses.Iftherelevantassetsaresold,transferred,scrappedordamagedbeforetheendoftheirservicelife,thebalanceofrelevantdeferredincomethathasnotyetbeenallocatedshallbetransferredtotheprofitsandlossesofthecurrentperiodofassetdisposal.

3.Judgmentbasisandaccountingtreatmentmethodofgovernmentsubsidiesrelatedtoincome

Governmentsubsidiesotherthanassetrelatedgovernmentsubsidiesareclassifiedasincomerelatedgovernmentsubsidies.Forgovernmentsubsidiesthatincludebothassetrelatedandincomerelatedparts,itisdifficulttodistinguishbetweenassetrelatedorincomerelatedgovernmentsubsidies,whichareclassifiedasincomerelatedgovernmentsubsidiesasawhole.Governmentsubsidiesrelatedtoincome,ifusedtocompensateforrelatedcostsorlossesinsubsequentperiods,shallberecognizedasdeferredincome,andshallbeincludedincurrentprofitsandlossesoroffsetrelatedcostsduringtheperiodwhenrelatedcostsorlossesarerecognized;Ifitisusedtocompensatetherelevantcostsorlossesincurred,itshallbedirectlyincludedinthecurrentprofitandlossoroffsettherelevantcosts.

4.Governmentsubsidiesrelatedtothedailybusinessactivitiesofthecompanyshallbeincludedinotherincomeoroffsetagainstrelatedcostsandexpensesaccordingtotheessenceofeconomicbusiness.Governmentsubsidiesunrelatedtothedailyactivitiesofthecompanyshallbeincludedinnonoperatingincomeandexpenditure.

5.Accountingtreatmentofdiscountinterestonpolicybasedpreferentialloans

(1)Ifthefinanceallocatesthediscountfundstothelendingbank,andthelendingbankprovidesloanstothecompanyatthepreferentialpolicyinterestrate,theactualamountofloansreceivedshallbetakenastheentryvalueoftheloans,andtherelevantborrowingcostsshallbecalculatedaccordingtotheprincipaloftheloansandthepreferentialpolicyinterestrate.

(2)Ifthefinanceallocatesthediscountfundsdirectlytothecompany,thecorrespondingdiscountwillbeoffsetagainsttherelevantborrowingcosts.

（29）Deferredincometaxassetsanddeferredincometaxliabilities

1.Accordingtothedifferencebetweenthebookvalueofassetsandliabilitiesandtheirtaxbasis(ifthetaxbasisofitemsnotrecognizedasassetsandliabilitiescanbedeterminedinaccordancewiththetaxlaw,thedifferencebetweenthetaxbasisanditsbookvalue),thedeferredincometaxassetsordeferredincometaxliabilitiesarecalculatedandrecognizedaccordingtotheapplicabletaxrateduringtheperiodwhentheassetsareexpectedtoberecoveredortheliabilitiesaresettled.

2.Therecognitionofdeferredincometaxassetsislimitedtothetaxableincomethatislikelytobeobtainedtooffsetthedeductibletemporarydifferences.Onthebalancesheetdate,ifthereisconclusiveevidencethatsufficienttaxableincomeislikelytobeobtainedinthefuturetooffsetthedeductibletemporarydifferences,thedeferredincometaxassetsnotrecognizedinthepreviousaccountingperiodsshallberecognized.

3.Onthebalancesheetdate,thebookvalueofdeferredincometaxassetsshallbereviewed.Ifitislikelythatsufficienttaxableincomewillnotbeavailabletooffsetthebenefitsofdeferredincometaxassetsinthefuture,thebookvalueofdeferredincometaxassetsshallbewrittendown.Whenitislikelytoobtainsufficienttaxableincome,theamountwrittendownwillbereversed.

4.Thecurrentincometaxanddeferredincometaxofthecompanyareincludedinthecurrentprofitandlossasincometaxexpensesorincome,butdonotincludetheincometaxarisingfromthefollowingcircumstances:(1)businessmerger;(2)Transactionsoreventsdirectlyrecognizedinowner'sequity.

5.Whenthefollowingconditionsaremetatthesametime,thecompanywilllistthedeferredincometaxassetsanddeferredincometaxliabilitiesatthenetamountafteroffset:(1)ithasthelegalrighttosettlethecurrentincometaxassetsandcurrentincometaxliabilitiesatthenetamount;(2)Deferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxleviedbythesametaxcollectionandmanagementdepartmentonthesametaxpayerorondifferenttaxpayers,butinthefuture,duringtheperiodwheneachimportantdeferredincometaxassetanddeferredincometaxliabilityarereversed,thetaxpayersinvolvedintendtosettlethecurrentincometaxassetsandcurrentincometaxliabilitiesatanetamount,orobtainassetsandsettledebtsatthesametime.

（30）Leasing

1.Thecompanyastenant

Onthebeginningdateoftheleaseterm,thecompanyrecognizestheleasewithaleasetermofnomorethan12monthsandnopurchaseoptionasashort-termlease;Leaseswithlowervaluewhenasingleleasedassetisanewassetarerecognizedaslowvalueassetleases.Ifthecompanysubletsorexpectstosublettheleasedassets,theoriginalleaseisnotrecognizedasalowvalueassetlease.

Forallshort-termleasesandlow-valueassetleases,thecompanyincludestheamountof

leasepaymentsinthecostofrelatedassetsorcurrentprofitandlossonastraightlinebasisduringeachperiodoftheleaseterm.

Inadditiontotheabove-mentionedshort-termleasesandlow-valueassetleaseswithsimplifiedtreatment,thecompanyrecognizestherighttouseassetsandleaseliabilitiesfortheleaseonthebeginningdateoftheleaseterm.

(1)Rightofuseassets

Therighttouseassetsareinitiallymeasuredatcost,whichincludes:1)theinitialmeasurementamountofleaseliabilities;2)Fortheleasepaymentpaidonorbeforethebeginningdateoftheleaseterm,ifthereisaleaseincentive,therelevantamountoftheleaseincentivethathasbeenenjoyedshallbededucted;3)Initialdirectcostsincurredbythetenant;4)Thecostexpectedtobeincurredbythelesseeforthedemolitionandremovaloftheleasedassets,therestorationofthepremiseswheretheleasedassetsarelocated,ortherestorationoftheleasedassetstotheagreedstateoftheleaseterms.

Thecompanydepreciatestherighttouseassetsaccordingtothestraightlinemethod.Ifitcanbereasonablydeterminedthattheownershipoftheleasedassetswillbeobtainedattheexpirationoftheleaseterm,thecompanyshallmakedepreciationwithintheremainingservicelifeoftheleasedassets.Ifitisimpossibletoreasonablydeterminethattheownershipoftheleasedassetscanbeobtainedattheexpirationoftheleaseterm,thecompanyshallmakedepreciationwithintheshorteroftheleasetermandtheremainingservicelifeoftheleasedassets.

(2)Leaseliabilities

Onthebeginningdateoftheleaseterm,thecompanyrecognizesthepresentvalueoftheunpaidleasepaymentasaleaseliability.Whencalculatingthepresentvalueoftheleasepayment,theembeddedinterestrateoftheleaseshallbeusedasthediscountrate.Iftheembeddedinterestrateoftheleasecannotbedetermined,theincrementalborrowingrateofthecompanyshallbeusedasthediscountrate.Thedifferencebetweentheleasepaymentanditspresentvalueshallberegardedasunrecognizedfinancingexpenses,andtheinterestexpensesshallberecognizedatthediscountrateofthepresentvalueoftheleasepaymentduringeachperiodoftheleasetermandincludedinthecurrentprofitandloss.Theamountofvariableleasepaymentsnotincludedinthemeasurementofleaseliabilitiesisincludedinthecurrentprofitandlosswhenactuallyincurred.

Afterthebeginningdateoftheleaseterm,whenthesubstantialfixedpaymentchanges,theestimatedamountpayableoftheguaranteeresidualvaluechanges,theindexorratiousedtodeterminetheleasepaymentchanges,theevaluationresultsoractualexerciseofthepurchaseoption,renewaloptionorterminationoptionchanges,thecompanyremeasurestheleaseliabilitiesaccordingtothepresentvalueofthechangedleasepayment,andadjuststhebookvalueoftherightofuseassetsaccordingly.Ifthebookvalueoftherightofuseassetshasbeenreducedtozero,buttheleaseliabilitiesstillneedtobefurtherreduced,theremainingamountshallbeincludedinthecurrentprofitandloss.

2.Thecompanyaslessor

Ontheleasebeginningdate,thecompanyclassifiesleasesthatsubstantiallytransferalmostalltherisksandrewardsrelatedtotheownershipoftheleasedassetsasfinancialleases,exceptforoperatingleases.

(1)Operatingleases

Duringeachperiodoftheleaseterm,thecompanyrecognizestheleasereceiptsasrentalincomeaccordingtothestraightlinemethod,andtheinitialdirectexpensesincurredare

capitalizedandapportionedonthesamebasisastherecognitionofrentalincome,whichareincludedinthecurrentprofitandlossbystages.Thevariableleasepaymentsobtainedbythecompanyrelatedtooperatingleasesthatarenotincludedintheleasereceiptsareincludedinthecurrentprofitandlosswhenactuallyincurred.

(2)Financelease

Onthebeginningdateoftheleaseterm,thecompanyrecognizesthefinancingleasereceivablesaccordingtothenetamountoftheleaseinvestment(thesumoftheunsecuredresidualvalueandthepresentvalueoftheleasereceiptsnotyetreceivedonthebeginningdateoftheleasetermdiscountedattheembeddedinterestrateofthelease),andterminatestherecognitionofthefinancingleaseassets.Duringeachperiodoftheleaseterm,thecompanycalculatesandrecognizesinterestincomeaccordingtotheinterestrateembeddedinthelease.

Theamountofvariableleasepaymentsobtainedbythecompanythatarenotincludedinthemeasurementofnetleaseinvestmentshallbeincludedinthecurrentprofitandlosswhenactuallyincurred.

（31）Changesinsignificantaccountingpoliciesandaccountingestimates

1.Changesinsignificantaccountingpolicies

Duringthereportingperiod,thecompanydidnotchangeanyimportantaccountingpolicies.

2changesinimportantaccountingestimates

Duringthereportingperiod,thecompanydidnotchangeimportantaccountingestimates.

4、Taxes

（1）Maintaxesandtaxrates

TaxesTaxbasisTaxrate

valueaddedtax

Theoutputtaxshallbecalculatedonthebasisoftheincomefromthesaleofgoodsandtaxableservicescalculatedinaccordancewiththeprovisionsofthetaxlaw.Afterdeductingtheinputtaxallowedtobedeductedinthecurrentperiod,thedifferenceshallbethe

value-added

9%,6%,5%,3%

Landvalue-addedtax

Value-addedamountarisingfromthetransferofstate-ownedlanduserightsandpropertyrightsofabovegroundbuildingsandotherattachedobjectswithcompensation

Calculatedandpaidaccordingtotheexcessiveprogressivetaxrateofvalue-added

Propertytaxes

Incaseofadvaloremcollection,1.2%oftheresidualvalueoftheoriginalvalueofthepropertyafterdeducting30%atatime;Ifitisleviedfrom

amountrent,

1.2%,12%

Urbanmaintenanceandconstruction

Turnovertaxactuallypaid7%Education

taxsurcharge

Turnovertaxactuallypaid3%Localeducation

surchargesurcharge

Turnovertaxactuallypaid2%Corporateincometax

Taxableincome25%,20%,16.5%

ExplanationofenterpriseincometaxrateoftaxpayerswithdifferenttaxratesNameoftaxpayerIncometaxrateShenzhenhuazhanConstructionSupervisionCo.,Ltd.andShantouSpecialEconomicZoneSongshanRealEstateDevelopmentCo.,Ltd

20%SubsidiariesincorporatedinHongKong

16.5%

Othertaxpayersotherthantheabove25%

（2）Taxbreaks

AccordingtotheannouncementoftheGeneralAdministrationofTaxationoftheMinistryofFinanceonpreferentialincometaxpoliciesforsmallandmicroenterprisesandindividualbusinesses(announcementNo.12oftheGeneralAdministrationofTaxationoftheMinistryofFinancein2023),thepartoftheannualtaxableincomeofsmallandmicroprofitenterprisesthatdoesnotexceed1millionyuanshallbeincludedinthetaxableincomeatareducedrateof25%,andtheenterpriseincometaxshallbepaidatataxrateof20%.TheimplementationperiodisfromJanuary1,2023toDecember31,2027.TheenterpriseincometaxrateofShenzhenhuazhan

ConstructionSupervisionCo.,Ltd.(hereinafterreferredtoashuazhansupervision)andShantouSpecialEconomicZoneSongshanRealEstateDevelopmentCo.,Ltd.(hereinafterreferredtoasShantouSongshan),subsidiariesofthecompany,shallbesubjecttothe

preferentialtaxrateof20%forsmallandlowprofitenterprises.

5、Notestoconsolidatedfinancialstatementitems

（1）Notestoconsolidatedbalancesheetitems

1.Monetaryfunds

(1)Details

ProjectsClosingbalanceBeginningbalanceCashonhand19,892.8338,975.98bankdeposit284,666,632.21526,814,068.83Othermonetaryfunds2,389,680.55

Total284,686,525.04529,242,725.36

Including:totalamountdepositedabroad4,242,440.124,660,706.04

(2)Otherinstructions

AsofDecember31,2025,therestrictedfundsinbankdepositswere5,794,604.17yuan,ofwhich5,674,439.78yuanwasthedepositfortheconstructionofpublicfacilitiesprojectsinandaroundtheurbanrenewalprojectinLonggangDistrict,Shenzhen,70,010.20yuanwasthesuspensionofaccountsandpayments,and50,154.19yuanwasthedepositforprojects.

2.Tradingfinancialassets

ProjectsClosingbalanceBeginningbalance

ProjectsClosingbalanceBeginningbalanceFinancialassetsclassifiedasatfairvaluethrough

profit

1,050,256,058.41987,801,938.51Amongthem:Fund1,050,256,058.41987,801,938.51

Total1,050,256,058.41987,801,938.51

3.Notesreceivable

(1)Details

ProjectsClosingbalanceBeginningbalanceBankacceptancebillCommercialacceptancebill100,000.00

Total100,000.00

(2)Provisionforbaddebts

Types

ClosingbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportion(%)

money

ProvisionProportion

ProvisionforbaddebtsbyportfolioIncluding:bankacceptancebillCommercialacceptancebillTotal

4.Accountsreceivable

(1)Aging

AgingClosingbalanceBeginningbalanceWithin1year35,522,470.1946,635,449.131-2years11,264,782.8817,841,452.582-3years5,972,759.948,345,221.163-4years8,220,946.545,644,029.794-5years5,252,795.4146,903.69Morethan5years21,125,636.8921,078,733.20Total87,359,391.8599,591,789.55Less:baddebtprovision42,461,308.1142,918,994.03

AgingClosingbalanceBeginningbalanceTotalbookvalue44,898,083.7456,672,795.52

(2)Provisionforbaddebts

1)Categorybreakdown

Types

ClosingbalanceBookbalanceBaddebtprovision

bookvalueAmount

Proportion(%)

money

ProvisionProportion(%)Singleprovisionforbaddebts24,613,872.7028.1824,613,872.70100.00Provisionforbaddebtsbyportfolio

62,745,519.1571.8217,847,435.4128.4444,898,083.74Total87,359,391.85100.0042,461,308.1148.6144,898,083.74

(Continued)

Types

BeginningbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportion(%)

money

ProvisionProportion

(%)

Singleprovisionforbaddebts24,983,383.2525.0924,983,383.25100.00Provisionforbaddebtsbyportfolio

74,608,406.3074.9117,935,610.7824.0456,672,795.52Total99,591,789.55100.0042,918,994.0343.0956,672,795.52

2)Importantaccountsreceivablewithsingleprovisionforbaddebts

Companyname

BeginningbalanceClosingbalanceBookbalance

Baddebt

(%)provision

Bookbalance

Baddebt

Provision

Basisof

Agentimportandexportbusiness

provisionpayment

11,574,556.0011,574,556.0011,574,556.0011,574,556.00100.00

Notexpectedtobe

Longtermuncollectedhousesales

10,084,109.6010,084,109.6010,084,109.6010,084,109.60100.00

Notexpectedtobe

Accountsreceivableofsubsidiaries

recoveredsuspended

2,314,755.462,314,755.462,314,755.462,314,755.46100.00

Notexpectedtobe

Othercustomerpayments

1,009,962.191,009,962.19640,451.64640,451.64100.00

Notexpectedtobe

Subtotal24,983,383.2524,983,383.2524,613,872.7024,613,872.70100.00

3)Accountsreceivablewithportfolioprovisionforbaddebts

Projects

ClosingbalanceBookbalanceBaddebtprovisionProvisionratio(%)Receivablesfrom

recoveredother

62,745,519.1517,847,435.4128.44

Projects

ClosingbalanceBookbalanceBaddebtprovisionProvisionratio(%)portfolios

Subtotal62,745,519.1517,847,435.4128.44

4)Changesinbaddebtreserves

Projects

Beginning

balance

Currentchangeamount

ClosingbalanceProvision

Withdrawal

or

Write

otherSingleprovisionforbaddebts

24,983,383.25369,510.5524,613,872.70Provisionforbaddebtsbyportfolio

17,935,610.7888,175.3717,847,435.41Total

42,918,994.03

457,685.92

42,461,308.11

(4)Top5accountsreceivableandcontractassets

Companyname

Closingbalance

Proportioninthetotalbalanceofaccountsreceivableandcontractassetsattheendofthe

offperiod

ProvisionforbaddebtsofaccountsreceivableandprovisionforimpairmentofcontractassetsAccountsreceivable

ContractassetsSubtotalShenzhenHongtengInvestment

ShenzhenGuangmingconstructionengineeringNo.1Construction

ShenzhenConstructionEngineeringGroup

JiangsuHuajianConstructionCo.,Ltd.

ShenzhenZhaoyang

Total31,267,611.8115,176,308.1346,443,919.9438.7115,282,156.86

(5)Otherinstructions

AsofDecember31,2025,thefactoringbalanceofaccountsreceivabletransferredbutnotderecognizedwas7,379,890.15yuan.

5.Advancepayment

(1)Aging

Aging

ClosingbalanceBeginningbalanceBookbalance

Proportio

n(%)

Provisionforimpairment

bookvalueBookbalance

Proportion(%)

Provisionforimpairme

nt

bookvalueWithin1year

30,809.8397.5430,809.831,100,322.5891.611,100,322.581-2years1,159.000.101,159.002-3yearsMorethan3years

778.622.46778.6299,624.638.2999,624.63Total31,588.45100.0031,588.451,201,106.21100.001,201,106.21

(2)Top5prepayments

CompanynameBookbalance

PrepaymentProportionof

ntbalance

ChinaTelecomCorporationLimitedShenzhenBranch19,679.8362.30

GuangdongJianyeTestingandIdentificationCo.,Ltd11,130.0035.23

ShenzhenShenlvInternationalTourismDevelopmentCo.,

228.620.72

Other

550.001.74

Subtotal31,588.45100.00

6.Otherreceivables

(1)Natureandclassificationofpayments

NatureofpaymentClosingbalanceBeginningbalancePortfolioofreceivablesfromrelatedparties850,579,354.54161,393,309.25Portfolioofreceivablesfromgovernment

Ltddepartments

165,460.003,019,837.72Employeereserveportfolioreceivable112,443.24533,912.40Collectionandpaymentportfolioreceivable596,591.68787,071.98Otherreceivablesportfolio193,464,111.4337,783,095.18

Total1,044,917,960.89203,517,226.53Less:baddebtprovision297,017,469.37196,079,185.70Totalbookvalue747,900,491.527,438,040.83

(2)Aging

AgingClosingbalanceBeginningbalanceWithin1year6,291,824.794,132,917.44

AgingClosingbalanceBeginningbalance1-2years21,982,715.531,542,936.542-3years5,885,948.4312,060,828.623-4years3,267.404-5yearsMorethan5years1,010,754,204.74185,780,543.93Total1,044,917,960.89203,517,226.53Less:baddebtprovision297,017,469.37196,079,185.70Totalbookvalue747,900,491.527,438,040.83

(3)Provisionforbaddebts

1)Categorybreakdown

Types

ClosingbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportion(%)

money

ProvisionProportion

(%)

Singleprovisionforbaddebts1,037,381,783.4899.28296,662,485.1428.60740,719,298.34Provisionforbaddebtsbyportfolio

7,536,177.410.72354,984.234.717,181,193.18Subtotal1,044,917,960.89100.00297,017,469.3728.42747,900,491.52

(Continued)Types

BeginningbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportion(%)

money

ProvisionProportion

(%)(%)

Singleprovisionforbaddebts190,176,205.8493.44189,807,225.6499.81368,980.20Provisionforbaddebtsbyportfolio

13,341,020.696.566,271,960.0647.017,069,060.63Subtotal203,517,226.53100196,079,185.7096.357,438,040.83

2)OtherreceivableswithimportantsingleprovisionforbaddebtsCompanyname

BeginningbalanceClosingbalanceBookbalance

Baddebt

(%)provision

Bookbalance

Baddebt

Provision

Basisof

GuangdongJianbanggroup(Huiyang)IndustrialCo.,Ltd.(hereinafterreferredtoasJianbangcompany)

843,296,961.67102,965,447.0512.21

Notexpectedtoberecovered

Companyname

BeginningbalanceClosingbalanceBookbalance

Baddebt

provision

Bookbalance

Baddebt

Provision

Basisof

GreatWall(Vancouver)Inc

89,035,748.0789,035,748.0789,035,748.0789,035,748.07100.00

Notexpectedtobe

provisionrecovered

BailiCo.,Ltd19,393,335.8419,393,335.8419,363,348.6919,363,348.69100.00

Notexpectedtobe

recoveredrecovered

BurktonAustraliaLimited

12,559,290.5812,559,290.5812,559,290.5812,559,290.58100.00

Notexpectedtobe

recoveredrecovered

GuangdongHuizhouLuofushanmineralwaterbeverageCo.,

recoveredLtd

10,465,168.8110,465,168.8110,465,168.8110,465,168.81100.00

NotexpectedtoberecoveredXi'anXinfengPropertyTradingCo.,

LtdLtd

8,419,205.198,419,205.198,391,333.188,391,333.18100.00

Notexpectedtobe

ShenzhenShenxibuildingdecoration

7,660,529.377,660,529.377,660,529.377,660,529.37100.00

NotexpectedtoberecoveredBeijingShenfangPropertyManagement

companyCo.,

6,905,673.696,533,817.096,905,673.696,533,817.0994.62

NotexpectedtoberecoveredBaoanmall6,343,030.656,343,030.656,343,030.656,343,030.65100.00

Notexpectedtobe

ShenzhenNanyangHotelCo.,Ltd

3,168,721.003,168,721.003,168,721.003,168,721.00100.00

Notexpectedtobe

recoveredrecovered

ShenzhenRunhuaAutoTrading

recoveredCompany

3,072,764.423,072,764.423,072,764.423,072,764.42100.00

Notexpectedtobe

Shenzhenlocalbuildingmaterials

3,000,000.003,000,000.003,000,000.003,000,000.00100.00

Notexpectedtobe

Junxinhe2,800,000.002,800,000.002,800,000.002,800,000.00100.00

Notexpectedtobe

HarbinPowerDistrictXinlefeedprocessing

recoveredfactory

1,970,000.001,970,000.001,970,000.001,970,000.00100.00

NotexpectedtoberecoveredSimo1,868,735.451,868,735.451,868,735.451,868,735.45100.00

Notexpectedtobe

factoryrecovered

Companyname

BeginningbalanceClosingbalanceBookbalance

Baddebt

provision

Bookbalance

Baddebt

Provision

Basisof

Subtotal176,662,203.07176,290,346.471,019,901,305.58279,197,934.3627.37

3)Otherreceivableswithportfolioprovisionforbaddebts

Portfolioname

ClosingbalanceBookbalanceBaddebtprovisionProvisionratio(%)Portfolioofreceivables

provisionfrom

854,095.27Portfolioofreceivablesfromgovernment

165,460.00Employeereserveportfolio

departmentsreceivable

615,652.06Collectionandpayment

receivableportfolio

1,487,672.3472,605.974.88Otherreceivablesportfolio4,413,297.74282,378.266.40Subtotal7,536,177.41354,984.234.71

(4)Changesinbaddebtreserves

Projects

Stage1.Stage2.Stage3.

TotalNext12monthsExpectedcreditloss

Expectedcreditlossforthewholeduration(nocreditimpairment)

Expectedcreditlossforthewholeduration(creditimpairmenthas

Beginningbalance209,559.52857,709.31195,011,916.87196,079,185.70Beginningbalance

occurred)in

——————--Movetophase2--Movetophase3--Backtophase2--Backtophase1Currentprovision101,818,165.64101,818,165.64Recoveredorreversedinthe

55,149.32489,460.51544,609.83CurrentwriteoffOtherchanges-335,272.14-335,272.14Closingbalance154,410.2032,976.66296,830,082.51297,017,469.37Provisionratioforbaddebtreservesattheendoftheperiod(%)

2.452.6528.6128.42

(5)Top5otherreceivables

Companyname

Natureofpayment

Bookbalanceattheendofthe

period

Aging

Proportioninbalanceofotherreceivabl

es

Baddebtprovisionattheendoftheperiod

Jianbang

Relatedpartycurrentaccount

843,296,961.67

Within1year,1-2years,2-3yearsandmorethan5

80.70102,965,447.05

GreatWall(Vancouver)Inc

Relatedpartycurrentaccount

89,035,748.07

Morethan5

yearsyears

8.5289,035,748.07

BailiCo.,Ltd

Relatedpartycurrentaccount

19,363,348.69

Morethan5

yearsyears

1.8519,363,348.69

BurktonAustralia

yearsLimited

Relatedpartycurrentaccount

12,559,290.58

Morethan5

1.2012,559,290.58

GuangdongHuizhouLuofushanmineralwaterbeverageCo.,

Relatedpartycurrentaccount

10,465,168.81

Morethan5years

1.0010,465,168.81

Subtotal974,720,517.8293.28234,389,003.20

7.Inventory

(1)Details

Projects

ClosingbalanceBeginningbalanceBookbalance

Depreciation

Ltdreserve

bookvalueBookbalance

Depreciation

bookvaluedevelopmentcost

28,291,908.1128,291,908.112,276,063,206.65711,787,110.181,564,276,096.47Developproducts

1,125,583,917.8354,580,338.251,071,003,579.582,127,137,511.5854,807,711.112,072,329,800.47Inventory103,023.4738,891.9164,131.56273,224.3138,891.91234,332.40Total1,153,978,849.4154,619,230.161,099,359,619.254,403,473,942.54766,633,713.203,636,840,229.34

(2)Inventorydepreciationreserve

1)Details

ProjectsBeginningbalance

Increasein

DecreaseincurrentperiodClosingbalanceProvis

other

Reversalor

Others[note]developmentcost

711,787,110.18711,787,110.18

ProjectsBeginningbalance

Increasein

current

DecreaseincurrentperiodClosingbalanceProvis

other

Reversalor

Others[note]Developproducts

54,807,711.11227,372.8654,580,338.25Inventory38,891.9138,891.91

Total766,633,713.20227,372.86711,787,110.1854,619,230.16

[note]JianbangcompanywastakenoverbythebankruptcyadministratorforbankruptcyliquidationonNovember30,2025,andwillnolongerbeincludedinthescopeofconsolidationfromNovember30,2025.TheprovisionforinventorydepreciationwilldecreasewiththereleaseofJianbangcompany.

2)ThespecificbasisfordeterminingthenetrealisablevalueandthereasonsforthereversalorwriteoffofinventorydepreciationreservesinthecurrentperiodProjects

Determiningnetrealisablevalue

Specificbasis

ReversalofinventorydepreciationReasonsfor

WriteoffinventorydepreciationReasonsforpreparationdevelopmentcost

Theestimatedsellingpriceofinventoryminustheestimatedcosttobeincurredatcompletion,theestimatedsellingexpensesandrelatedtaxes

Thenetrealizablevalueofinventorywithprovisionforinventorydepreciationinpreviousperiods

preparationincreased

Inventoryconsumption/salewithprovisionforinventorydepreciationinthecurrentperiod

Developproducts

Thenetrealisablevalueisdeterminedbytheamountoftheestimatedsellingpriceoftherelevantdevelopedproductsminustheproductcost,theestimatedsellingexpensesand

increasedthe

Thenetrealizablevalueofinventorywithprovisionforinventorydepreciationinpreviousperiods

Inventoryconsumption/salewithprovisionforinventorydepreciationinthecurrentperiod

Inventory

Thenetrealisablevalueisdeterminedbytheamountoftheestimatedsellingpriceoftherelevantinventorygoodsminusthecostoftheproducts,theestimatedsellingexpensesandtherelevanttaxesandfees

Thenetrealizablevalueofinventorywithprovisionforinventorydepreciationinpreviousperiodsincreased

Inventoryconsumption/salewithprovisionforinventorydepreciationinthecurrentperiod

(3)Capitalizationofborrowingcosts

Projects

Includedinclosingbalance

Capitalizationamountof

increasedborrowing

Interestcapitalizationrate

Calculationstandardand

basisofcapitalization

GuangmingLi

2,206,417.884.06

Calculatedaccordingtotheinterestratestipulatedinthe

Subtotal2,206,417.884.06

(4)Otherinstructions

1)Inventorydevelopmentcosts

entryname

Start

Estimat

Estimated

BeginningbalanceClosingbalance

Provisionfordepreciationatthe

forcomplet

ion

investment

(10000

endoftheperiodLinXinyuan2021300,000.002,247,771,298.55ShantouXinfeng

28,291,908.1028,291,908.11Subtotal300,000.002,276,063,206.6528,291,908.11

2)Inventory-developproducts

entrynameTimefor

completio

towern

Beginningbalance

Increaseincurrentperiod

Decreaseincurrentperiod

Closingbalance

ClosingdeclinePricereserveGuangmingLi20241,432,471,630.583,603,133.08971,685,098.89464,389,664.77TianyuewanphaseII

2021441,400,625.101,979,410.1529,915,421.77413,464,613.48

28,917,964.91TianyuewanphaseI

2017191,139,379.806,426,489.82184,712,889.9824,890,553.23GoldenLeafIslandHaitian

nPavilion

1997

39,999,534.04960.3140,000,494.35771,820.11TsuiLamYuen20187,696,703.10816,399.268,513,102.36YueKingOriental

20146,121,027.076,121,027.07GoldenLeafIslandphase10

20105,641,278.5457,279.715,698,558.25GoldenLeafIslandphase11

20082,222,776.3016,234.222,239,010.52BeijingXinfengtower

304,557.05304,557.05WhampoaEstate

140,000.00140,000.00Subtotal2,127,137,511.586,473,416.731,008,027,010.481,125,583,917.83

54,580,338.25

8.Contractassets

(1)Details

Projects

ClosingbalanceBeginningbalanceBookbalance

Provisionfor

Pavilionimpairment

bookvalueBookbalance

Provisionfor

bookvalueCompletedandunsettledproject

32,613,380.973,578,124.6929,035,256.2832,059,525.051,170,801.9630,888,723.09Total

32,613,380.973,578,124.6929,035,256.2832,059,525.051,170,801.9630,888,723.09

(2)Provisionforimpairment

Types

ClosingbalanceBookbalanceProvisionforimpairment

bookvaluemoney

Proportion(%)

money

ProvisionProportion(%)

1)Categorybreakdown

(Continued)Types

BeginningbalanceBookbalanceProvisionforimpairment

bookvaluemoney

Proportion(%)

money

ProvisionProportion

(%)

Provisionforimpairmentbyportfolio

32,059,525.05100.001,170,801.963.6530,888,723.09Total32,059,525.05100.001,170,801.963.6530,888,723.09

2)Contractassetswithportfolioprovisionforimpairment

Projects

ClosingbalanceBookbalance

Provisionfor

(%)impairment

Provisionratio(%)Constructionmix32,613,380.973,578,124.6910.97

Subtotal32,613,380.973,578,124.6910.97

(3)Changesinprovisionforimpairment

Projects

Beginningbalance

Currentchangeamount

ClosingbalanceProvision

Withdrawal

impairmentor

WriteoffotherProvisionforimpairment

1,170,801.962,407,322.733,578,124.69Total1,170,801.962,407,322.733,578,124.69

9.Othercurrentassets

(1)Details

Projects

ClosingbalanceBeginningbalanceBookbalance

Impairmentready

bookvalueBookbalance

Impairmentread

bookvaluePrepaidincometax1,310,041.901,310,041.9063,654,695.1863,654,695.18VATprepaid35,023,855.49

35,023,855.49

41,955,887.7541,955,887.75Advancelandvalue-addedtax

27,906,656.73

27,906,656.73

28,100,310.8328,100,310.83Inputtaxtobededucted

407,250.18407,250.189,375,930.689,375,930.68Contractacquisitioncost

6,508,438.396,508,438.39Advanceurbanconstructiontaxand

ysurcharges

1,431,668.711,431,668.714,587,785.464,587,785.46

Provisionforimpairmentbyportfolio

32,613,380.97100.003,578,124.6910.9729,035,256.28Total32,613,380.97100.003,578,124.6910.9729,035,256.28

Projects

ClosingbalanceBeginningbalanceBookbalance

Impairmentready

bookvalueBookbalance

Impairmentread

y

bookvalueother53,992.2353,992.238,975.578,975.57Total66,133,465.2466,133,465.24154,192,023.86154,192,023.86

(2)Contractacquisitioncost

Projects

Beginningbalance

Increaseincurrentperiod

Currentwriteoff

Provisionforimpairmentinthecurrent

yperiod

ClosingbalanceGuangming

periodLi

5,110,543.395,110,543.39LinXinyuan1,397,895.001,397,895.00

Subtotal6,508,438.396,508,438.39

10.Long-termequityinvestments

(1)Classification

Projects

ClosingbalanceBeginningbalanceBookbalance

Provisionfor

Liimpairment

Book

Bookbalance

Provisionfor

Book

Investmentsinjointventures

19,424,671.4719,424,671.4719,424,671.4719,424,671.47Investmentsinassociates

32,898,465.0932,898,465.0932,898,465.0932,898,465.09Otherequityinvestments

167,761,564.39167,761,564.39167,761,564.39167,761,564.39Total220,084,700.95220,084,700.95220,084,700.95220,084,700.95

(2)Details

Investee

BeginningbalanceIncreaseanddecreaseinthecurrentperiodBookvalue

Provisionforimpairment

Additionalinvestments

Reduceinvestment

Investmentgainsandlossesrecognizedunderthe

OthercomprehensiveEarningsadjustmentJointventureGuangdongHuizhouLuofushanmineralwater

9,969,206.09FengkaiXinghuaHotel

9,455,465.38Subtotal19,424,671.47AssociatesShenzhenronghuaElectromechanical

1,076,954.64

Investee

BeginningbalanceIncreaseanddecreaseinthecurrentperiodBookvalue

Provisionforimpairment

Additionalinvestments

Reduceinvestment

Investmentgainsand

lossesrecognizedunderthe

equity

OthercomprehensiveEarningsadjustmentEngineeringCo.,LtdShenzhenRunhuaAutoTrading

1,445,425.56DongyiRealEstateCo.,Ltd

30,376,084.89Subtotal32,898,465.09OtherequityinvestmentsBailiCo.,Ltd201,100.00BurktonAustralia906,630.00ShenzhenshenfangDepartmentStore

CompanyCo.,

10,000,000.00ShantouXinfengtower

58,547,652.25GuangdongFengkaiLianfengcementmanufacturingCo.,

56,042,236.04JiangmenXinjiangRealEstateCo.,Ltd

9,037,070.89Xi'anXinfengPropertyTrading

LtdCo.,

32,840,729.61Subtotal167,761,564.39Total220,084,700.95(Continued)Investee

IncreaseanddecreaseinthecurrentperiodClosingbalanceOtherequity

changes

Declarationofcashdividends

Provisionforimpairment

OtherBookvalue

ProvisionforimpairmentJointventureGuangdongHuizhouLuofushanmineralwater

9,969,206.09FengkaiXinghuaHotel

9,455,465.38Subtotal19,424,671.47Associates

Investee

IncreaseanddecreaseinthecurrentperiodClosingbalanceOtherequity

changes

Declaration

ofcashdividends

or

Provisionforimpairment

OtherBookvalue

ProvisionforimpairmentShenzhenronghuaElectromechanicalEngineeringCo.,

1,076,954.64ShenzhenRunhuaAutoTrading

LtdCompany

1,445,425.56DongyiRealEstateCo.,Ltd

30,376,084.89Subtotal32,898,465.09OtherequityinvestmentsBailiCo.,Ltd201,100.00BurktonAustralia906,630.00ShenzhenshenfangDepartmentStore

CompanyCo.,

10,000,000.00ShantouXinfengtower

58,547,652.25GuangdongFengkaiLianfengcementmanufacturing

56,228,381.64JiangmenXinjiangReal

9,037,070.89Xi'anXinfengPropertyTrading

32,840,729.61Subtotal167,761,564.39Total220,084,700.95[note]inotherequityinvestments,theequityofsubsidiariesnotincludedinthescopeofconsolidationofthecompanyisaccountedfor.Thissubsidiarymayhavecompletedtherevocationprocedures,butthecompanyhasnotwrittenoffitslong-termequityinvestment,orstoppedoperatingmanyyearsago,andthecompanyhasnoentity,sothecompanyhasbeenunabletoeffectivelycontrolit.SeeNote6fordetails

11.Investmentinotherequityinstruments

Projects

Beginningbalance

IncreaseanddecreaseinthecurrentperiodAdditionalinvestments

Reduceinvestment

Gainsandlossesincludedinothercomprehensiveincomeinthe

otherShantou

14,697,341.18-125,829.37

Projects

Beginningbalance

IncreaseanddecreaseinthecurrentperiodAdditionalinvestments

Reduceinvestment

Gainsandlossesincludedinothercomprehensive

incomeinthe

current

othermedium-sizedenterprisefinancingguarantee

Total14,697,341.18-125,829.37(Continued)ProjectsClosingbalance

Dividendincomerecognizedinthecurrent

GainsandlossesincludedinothercomprehensiveincomeattheendoftheperiodShantousmallandmedium-sizedenterprisefinancing

periodguarantee

14,571,511.81778,495.006,282,876.24Total14,571,511.81778,495.006,282,876.24

12.Investmentproperties

Projects

Housesand

landuserightTotalBookvalueBeginningbalance1,042,937,072.97110,807,339.451,153,744,412.42Increaseincurrent

buildingsperiod

33,326,036.9133,326,036.91

1)Outsourcing

2)Inventorytransfer

periodin

33,326,036.9133,326,036.91Decreaseincurrent

inperiod

1,677,368.762,467,728.734,145,097.49

1)Disposal99,150.4599,150.45

2)Other(exchange

periodrate

1,578,218.312,467,728.734,045,947.04Closingbalance1,074,585,741.12108,339,610.721,182,925,351.84Accumulateddepreciation

Beginningbalance532,826,612.47532,826,612.47Increaseincurrent

25,664,684.1925,664,684.19

Projects

Housesand

buildings

landuserightTotal

1)Provisionor

buildingsamortization

25,664,684.1925,664,684.19

2)Other(exchange

amortizationrate

Decreaseincurrent

1,167,907.291,167,907.29

1)Disposal90,316.7690,316.76

2)Other(exchange

periodrate

1,077,590.531,077,590.53Closingbalance557,323,389.37557,323,389.37Provisionforimpairment

Beginningbalance14,047,929.5990,944,753.82104,992,683.41Increaseincurrent

1)Provision

Decreaseincurrent

periodperiod

2,025,380.112,025,380.11

1)Disposal

2)Other(exchange

periodrate

2,025,380.112,025,380.11Closingbalance14,047,929.5988,919,373.71102,967,303.30bookvalue

Closingbookvalue503,214,422.1619,420,237.01522,634,659.17Beginningbookvalue496,062,530.9119,862,585.63515,925,116.54

13.Fixedassets

ProjectsHousesandbuildingsTransportequipment

Electronicsand

others

TotalBookvalueBeginningbalance99,967,911.107,491,729.618,345,607.75115,805,248.46Increaseincurrentperiod

-572,220.99572,220.99

1)Purchase572,220.99572,220.99

2)Otherincreases

Decreaseincurrentperiod

332,006.34337,241.00463,752.981,133,000.32

1)Disposalor

scrapping

332,006.34337,241.00176,879.56846,126.90

2)Otherdecrease286,873.42286,873.42

ProjectsHousesandbuildingsTransportequipment

Electronicsandothers

TotalClosingbalance99,635,904.767,154,488.618,454,075.76115,244,469.13AccumulateddepreciationBeginningbalance85,851,256.186,053,367.826,411,416.8998,316,040.89Increaseincurrentperiod

2,141,291.07236,905.80478,314.572,856,511.44

1)Provision2,141,291.07236,905.80478,314.572,856,511.44

2)Otherincreases

Decreaseincurrentperiod

179,611.33303,516.90394,855.42877,983.65

1)Disposalor

scrapping

179,611.33303,516.90169,117.89652,246.12

2)Otherdecrease225,737.53225,737.53

Closingbalance87,812,935.925,986,756.726,494,876.04100,294,568.68Provisionforimpairment

Beginningbalance

Increaseincurrentperiod

1)Provision

2)Otherincreases

Decreaseincurrentperiod

1)Disposalor

scrapping

2)Otherdecrease

Closingbalancebookvalue

Bookvalueattheendoftheperiod

11,822,968.841,167,731.891,959,199.7214,949,900.45

Beginningbookvalue

14,116,654.921,438,361.791,934,190.8617,489,207.57

14.Constructioninprogress

(1)Details

Projectname

ClosingbalanceBookbalance

Provisionfor

impairment

bookvalueRestorationandrenovationofshenfang

impairmentPlaza

398,222.67398,222.67Renovationprojectofatriumelevatorin

173,600.00173,600.00

Projectname

ClosingbalanceBookbalance

Provision

for

impairment

bookvalueTotal571,822.67571,822.67

(2)Increaseanddecreaseofconstructioninprogress

Projectname

Beginning

balance

Increaseincurrentperiod

Currenttransferinfixedassets

Otherdecreaseinthecurrent

impairmentperiod

ClosingbalanceRestorationandrenovationofshenfangPlaza

periodHeliport

398,222.67398,222.67RenovationprojectofatriumelevatorinshenfangPlaza

Heliportpodium

173,600.00173,600.00Total571,822.67571,822.67

15.Intangibleassets

ProjectssoftwareTotalBookvalueBeginningbalance2,192,000.002,192,000.00Increaseincurrentperiod

1)Purchase

Decreaseincurrentperiod

1)Disposal

Closingbalance2,192,000.002,192,000.00Accumulatedamortization

Beginningbalance2,192,000.002,192,000.00

Increaseincurrentperiod

1)Provision

Decreaseincurrentperiod

1)Disposal

Closingbalance2,192,000.002,192,000.00Provisionforimpairment

Beginningbalance

ProjectssoftwareTotalIncreaseincurrentperiod

1)Provision

Decreaseincurrentperiod

1)Disposal

Closingbalancebookvalue

Bookvalueattheendoftheperiod

Beginningbookvalue

16.Longtermdeferredexpenses

Projects

Beginning

balance

Increasein

current

period

Currentamortization

Otherdecrease

ClosingbalanceRenovation

periodfee

1,578,307.83761,576.34724,200.251,615,683.92Others141,603.8959,001.6082,602.29

Total1,719,911.72761,576.34783,201.8582,602.291,615,683.92

17.Deferredincometaxassetsanddeferredincometaxliabilities

(1)Deferredincometaxassetsnotoffset

Projects

ClosingbalanceBeginningbalanceDeductibleTemporary

feedifferences

DeferredIncometaxassets

DeductibleTemporary

DeferredIncometax

Provisionforimpairmentof

assetsassets

17,373,070.564,343,267.6417,887,164.324,471,791.08Deductibleloss9,058,968.762,264,742.1934,153,954.308,538,488.58Unrealizedprofitfrominternal

assetstransactions

78,405,738.3619,601,434.58Estimated

transactionscontract

3,839,130.81959,782.70Total26,432,039.326,608,009.83134,285,987.7933,571,496.94

(2)Deferredincometaxliabilitiesnotoffset

Projects

ClosingbalanceBeginningbalanceTaxableTemporary

DeferredIncometax

TaxableTemporary

DeferredIncometax

Projects

ClosingbalanceBeginningbalanceTaxableTemporary

differences

DeferredIncometax

TaxableTemporary

DeferredIncometax

Interestnotdue2,778,907.00694,726.752,340,498.77585,124.68Changesinfairvalueofinvestmentsinotherequity

2,571,511.84642,877.962,697,341.18674,335.30Total5,350,418.841,337,604.715,037,839.951,259,459.98

(3)DeferredincometaxassetsorliabilitiespresentedatnetamountafteroffsetProjects

ClosingbalanceBeginningbalanceOffsetofdeferredincometaxassetsandliabilities

Afteroffset

Offsetofdeferredincometaxassetsandliabilities

AfteroffsetBalanceofdeferredincometaxassetsor

instrumentsliabilities

Balanceofdeferredincome

taxassetsor

deferredtaxassets469,690.216,138,319.6233,571,496.94DeferredTaxLiability469,690.21867,914.501,259,459.98

(4)Detailsofunrecognizeddeferredincometaxassets

ProjectsClosingbalanceBeginningbalancedeductibletemporarydifferences1,176,975,484.481,313,992,914.93Deductibleloss142,018,237.9294,399,508.95

Total1,318,993,722.401,408,392,423.88

(5)Thedeductiblelossofunrecognizeddeferredincometaxassetswillexpireinthefollowingyear

YearClosingbalanceBeginningbalanceNote20251,629.252026346,891.06346,891.06202748,904,614.3848,904,614.38202818,354,716.2418,354,716.24202924,953,841.5126,791,658.02203049,458,174.73Total142,018,237.9294,399,508.95

18.Assetswithrestrictedownershiporuserights

(1)Assetconstraintsattheendoftheperiod

Projects

Bookbalanceattheendofthe

Bookvalueattheendoftheperiod

limitedtype

Reasonsforrestrictions

Projects

Bookbalanceattheendofthe

period

Bookvalueattheendoftheperiod

limitedtype

ReasonsforrestrictionsMonetaryfunds

5,674,439.785,674,439.78Seizure

PublicfacilitiesprojectsinandaroundtheurbanrenewalprojectinLonggangDistrict,Shenzhen-construction

periodfunds

Monetary

fundsfunds

50,154.1950,154.19SeizureConstructiondepositMonetary

fundsfunds

70,010.2070,010.20Seizure

Stoppayments,stop

Accounts

7,379,890.157,158,493.45pledge

Pledgeofshort-term

Total13,174,494.3212,953,097.62

(2)Restrictionsonassetsatthebeginningoftheperiod

Projects

Beginningbook

Beginningbook

limited

Reasonsforrestrictions

Monetaryfunds5,817,217.785,817,217.78Seizure

ConstructionfundsforpublicfacilitiesprojectsinandaroundtheurbanrenewalprojectinLonggangDistrict,Shenzhen;Landreclamationcostof

typeGuangming

Monetaryfunds2,306,548.482,306,548.48freezeLitigationfreezeMonetaryfunds50,155.5850,155.58SeizureConstructiondepositMonetaryfunds158,549.08158,549.08Seizure

Stoppayments,stop

Accounts

accountsreceivable

4,918,250.304,770,702.79pledge

Pledgeofshort-term

inventory234,599,800.76161,509,611.70

Litigationpreservati

SupplierlitigationpreservationInvestment

onproperties

137,329,055.8338,505,029.10mortgageMortgageonborrowingsTotal385,179,577.81213,117,814.51

19.Short-termborrowings

ProjectsClosingbalanceBeginningbalanceAccountsreceivablefactoring50,000.001,563,000.00

Total50,000.001,563,000.00

20.Accountspayable

(1)Details

ProjectsClosingbalanceBeginningbalanceProcurementofengineeringmaterialsand

construction

171,738,333.04450,147,073.38other14,341,908.92

Total171,738,333.04464,488,982.30

(2)Importantaccountspayablewithanaccountageofmorethan1yearProjectsClosingbalance

Reasonsforoutstandingor

constructioncarry

ShenzhenGuangmingconstructionengineeringNo.1Construction

69,727,732.09UnsettledShenzhenMunicipalEngineering

16,073,112.33UnsettledSubtotal85,800,844.42

21.Advancereceipts

ProjectsClosingbalanceBeginningbalancerent722,042.141,398,988.78

Total722,042.141,398,988.78

22.Contractualliabilities

(1)Details

ProjectsClosingbalanceBeginningbalanceAdvancereceipts15,710,437.241,284,864,387.02Advancepayment8,115,281.048,705,289.17other4,574,940.924,576,556.16

Total28,400,659.201,298,146,232.35

(2)Importantcontractliabilitieswithanaccountageofmorethanoneyear

ProjectsClosingbalance

Reasonsfornot

Corporationcarrying

GuangmingLi2,525,427.51

Thehandoverofthehousewiththeownerhasnotbeen

Total2,525,427.51

(3)Collectionofpre-salerealestateofimportantprojects

entrynameClosingbalance

Beginningbalance

Timeforcompletion

Residentialsigningratio

completed(%)

GuangmingLi2,525,427.511,270,976,624.80Endof202499.74

entrynameClosingbalance

Beginningbalance

Timeforcompletion

Residentialsigningratio

(%)

Subtotal2,525,427.511,270,976,624.80

(4)Reasonsforsignificantchangesinthebookvalueofcontractliabilitiesduringthecurrentperiod

ProjectsChangeamountReasonsforchangeGuangmingLi1,268,451,197.29

GuangmingLiwillcompletethehouse

(%)handover

Subtotal1,268,451,197.29

23.Payrollpayable

(1)Details

Projects

Beginning

Increasein

Decreasein

ClosingbalanceShort-term

22,443,222.8865,878,356.8258,653,769.6229,667,810.08Postemploymentbenefits-defined

compensationcontribution

56,145.417,174,258.367,228,564.971,838.80terminationbenefits3,837,029.46749,335.463,087,694.00

Total22,499,368.2976,889,644.6466,631,670.0532,757,342.88

(2)Detailsofshort-termcompensation

Projects

Beginning

Increasein

Decreasein

ClosingbalanceSalaries,bonuses,allowancesand

22,165,168.5356,498,322.8449,113,053.8529,550,437.52Employeebenefits3,124,994.523,124,994.52Socialinsurance

subsidiespremiums

2,500,080.972,500,080.97Including:medical

premiumsinsurance

2,098,667.342,098,667.34Industrial

205,554.23205,554.23Maternity

194,891.40194,891.40Employmentsecurityfor

insurancethe

968.00968.00

housingfund2,232,140.902,232,140.90Laborunionfundsandemployeeeducation

278,054.351,411,985.201,572,666.99117,372.56Short-termpaid

fundsabsences

92,125.0892,125.08Othershort-term

absencescompensation

18,707.3118,707.31

Projects

Beginning

balance

Increasein

Decreasein

ClosingbalanceSubtotal22,443,222.8865,878,356.8258,653,769.6229,667,810.08

(3)Detailsofdefinedcontributionplan

Projects

Beginning

Increasein

Decreasein

Closing

Basicpension6,505,753.236,505,753.23Unemploymentinsurance

balancepremiums

354,846.59354,846.59Enterpriseannuitypayment56,145.41313,658.54367,965.151,838.80Subtotal56,145.417,174,258.367,228,564.971,838.80

24.Taxespayable

ProjectsClosingbalanceBeginningbalancevalueaddedtax937,306.311,926,338.10Corporateincometax16,169,391.2315,240,318.16Withholdingandpayingindividualincometax2,139,885.122,614,360.35Urbanmaintenanceandconstructiontax1,336,686.831,231,330.83Landvalue-addedtax4,645,184.154,645,184.15Propertytaxes537,531.44352,632.19Educationsurcharge577,466.85868,224.47Localeducationsurcharge368,675.16546,470.88other209,955.49129,950.88

Total26,922,082.5827,554,810.01

25.Otheraccountspayable

(1)Details

ProjectsClosingbalanceBeginningbalanceInterestpayable16,535,277.9416,535,277.94Otheraccountspayable127,745,131.22544,481,375.23

Total144,280,409.16561,016,653.17

(2)Interestpayable

1)Details

ProjectsClosingbalanceBeginningbalance

ProjectsClosingbalanceBeginningbalanceInterestonloansfromnon-financialinstitutions

(interest

16,535,277.9416,535,277.94

Subtotal16,535,277.9416,535,277.94

2)Importantoverdueinterestpayment

Borrower

Overdue

OverduereasonShenzhenInvestmentHoldingCo.,

amountLtd

16,535,277.94UnpaidSubtotal16,535,277.94

(3)Otheraccountspayable

ProjectsClosingbalanceBeginningbalanceNonrelatedpartycurrentaccount26,581,817.09177,773,291.96Relatedpartytransactions9,065,673.97234,015,438.99deposit23,487,225.4425,941,548.11other68,610,414.72106,751,096.17Subtotal127,745,131.22544,481,375.23

26.Noncurrentliabilitiesduewithinoneyear

ProjectsClosingbalanceBeginningbalanceLong-termloansduewithinoneyear33,888,347.83

Total33,888,347.83

27.Othercurrentliabilities

ProjectsClosingbalanceBeginningbalanceTaxonsalestobetransferred235,112.72114,948,818.17Accountsreceivablefactoring7,329,890.153,355,250.30

Total7,565,002.87118,304,068.47

28.Long-termborrowings

ProjectsClosingbalanceBeginningbalanceMortgages96,162,025.65Less:long-termloansduewithinoneyear33,888,347.83

Total62,273,677.82

29.Sharecapital

Projects

Beginningbalance

Increaseordecreaseinthecurrentperiod

(decrease

ClosingbalanceissueNewshare

Dividend

Providentfundconversion

otherSubtotalTotalshares

1,011,660,000.001,011,660,000.00

30.Capitalreserve

Projects

Beginning

sbalance

Increasein

Decreasein

Closing

Capitalpremium(equity

balancepremium)

557,433,036.93557,433,036.93Othercapitalreserve420,811,873.18420,811,873.18Total978,244,910.11978,244,910.11

31.Othercomprehensiveincome

Projects

Beginningbalance

Currentamount

premium)Closing

Netaftertaxofothercomprehensiveincome

Less:othercomprehensiveincomeincludedinthepreviousperiodistransferredtoretainedincomeinthecurrentperiod(attributabletotheparentcompanyafter

Amountbeforeincometaxinthecurrentperiod

Less:includedinothercomprehensiveincomeinthepreviousperiodandtransferredtoprofitandlossinthecurrentperiod

Less:

incometaxexpense

Attributabletoparentcompanyaftertax

AttributabletominorityshareholdersaftertaxOthercomprehensiveincomethatcannotbereclassifiedintoprofitor

tax)loss

2,439,210.13-125,829.37

-31,457.34

-94,372.032,344,838.10Amongthem:re

measurement

lossof

changesindefinedbenefit

ofplans

Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequity

plansmethod

Changesinfairvalue

methodof

investmentsinotherequity

ofinstruments

2,439,210.13-125,829.37

-31,457.34

-94,372.032,344,838.10Changesinfairvalue

instrumentsof

enterprise'sown

ofcredit

Projects

Beginningbalance

Currentamount

Closing

Netaftertaxofothercomprehensiveincome

Less:othercomprehensive

incomeincludedinthe

previous

periodistransferredto

retainedincomeinthecurrentperiod(attributableto

theparentcompanyafter

Amountbeforeincometaxinthecurrentperiod

Less:included

inothercomprehensiveincomeinthepreviousperiodandtransferredtoprofitandlossinthecurrent

period

Less:

incometaxexpense

Attributabletoparentcompanyaftertax

AttributabletominorityshareholdersaftertaxOthercomprehensiveincometobereclassifiedtoprofitorloss

20,621,206.181,536,756.74349,071.241,187,685.5020,970,277.42Amongthem:other

comprehensiveincomeconvertibletoprofitorlossunderequity

tax)method

Changesinfairvalueofothercreditor'srights

methodinvestments

Amount

reclassification

financialassetsintoothercomprehensive

ofincome

Provisionforcreditimpairmentofothercreditor's

incomerights

CashflowhedgingreserveTranslationdifference

foreigncurrencyfinancial

ofstatements

20,621,206.181,536,756.74349,071.241,187,685.5020,970,277.42Totalothercomprehensiveincome

23,060,416.311,410,927.37

-31,457.34

254,699.211,187,685.5023,315,115.52

32.Surplusreserve

Projects

Beginning

statementsbalance

Increasein

Decreasein

ClosingbalanceLegalreserve275,253,729.26275,253,729.26Total275,253,729.26275,253,729.26

33.Undistributedprofit

ProjectsCurrentperiod

Sameperiodlast

Undistributedprofitattheendofthepreviousperiod

yearbefore

1,223,893,437.741,400,604,385.39Adjustthetotalundistributedprofitatthebeginning

Undistributedprofitatthebeginningofthelater

1,223,893,437.741,400,604,385.39

ProjectsCurrentperiod

Sameperiodlast

year

Plus:netprofitattributabletoownersofthe

yearparent

99,956,003.75-176,710,947.65Less:withdrawalofstatutorysurplusreserve

CommonStockdividendspayableUndistributedprofitattheendoftheperiod1,323,849,441.491,223,893,437.74

（2）Notestoconsolidatedincomestatementitems

1.Operatingincome/operatingcost

(1)Details

Projects

CurrentperiodSameperiodlastyearincomecostincomecostMainbusiness

1,475,508,650.421,066,407,099.14399,806,208.89329,523,182.30Otherbusiness

incomeincome

7,363,648.943,405,345.607,215,982.552,802,468.00Total1,482,872,299.361,069,812,444.74407,022,191.44332,325,650.30Amongthem:

revenuefromcontractswithcustomers

1,420,214,184.881,028,129,256.31337,868,729.90290,264,756.49

(2)Revenuebreakdown

1)RevenuefromcontractswithcustomersisbrokendownbytypeofgoodsorservicesProjects

CurrentperiodSameperiodlastyearincomecostincomecostrealestate1,324,656,290.59937,154,626.27162,523,053.49127,086,267.87engineering

incomeconstruction

81,299,490.7782,326,326.57160,327,744.72154,348,805.43other14,258,403.528,648,303.4715,017,931.698,829,683.19

Subtotal1,420,214,184.881,028,129,256.31337,868,729.90290,264,756.49

2)RevenuefromcontractswithcustomersisbrokendownbyregionofoperationProjects

CurrentperiodSameperiodlastyearincomecostincomecostGuangdong

constructionProvince

1,419,516,215.791,028,129,256.31337,173,047.00290,264,756.49UnitedStates697,969.09695,682.90

Subtotal1,420,214,184.881,028,129,256.31337,868,729.90290,264,756.49

3)RevenuefromcontractswithcustomersisbrokendownbythetimegoodsorservicesaretransferredProjectsCurrentperiod

Sameperiodlast

Provinceyear

ProjectsCurrentperiod

Sameperiodlast

year

Revenuerecognizedatacertainpoint1,324,656,290.59162,523,053.49Revenueisrecognizedinacertainperiodoftime95,557,894.29175,345,676.41

Subtotal1,420,214,184.88337,868,729.90

(3)Informationonperformanceobligations

Projects

Timeforperformance

Importantpayment

terms

Thenatureofthegoodsthecompanyundertakestotransfer

Isitthemainresponsibleperson

Paymentsassumedbythecompanythatareexpectedtoberefundedto

yearcustomers

Typesofqualityassuranceprovidedbythecompanyandrelated

Sellinggoods

Whengoodsaredelivered

Afterthecontractissigned,thecontractpriceshallbecollectedin

Commercialhousing

yesnothing

Qualityassurance

Provisionofservices

Whenservicesareprovided

Whenthegeneralserviceiscompleted,itshallbechargedaccordingtothecontract

Engineeringconstruction,propertymanagementandotherservices

yesnothingnothing

(4)Therevenuerecognizedinthecurrentperiodincludedinthebookvalueofcontractliabilitiesatthebeginningoftheperiodis1277707691.77yuan.

2.Taxesandsurcharges

ProjectsCurrentperiod

Sameperiodlast

advanceyear

Landvalue-addedtax2,493,584.642,714,249.05Propertytaxes10,144,167.539,956,557.84Urbanmaintenanceandconstructiontax3,728,882.751,012,893.50Educationsurcharge1,583,420.73411,819.81Localeducationsurcharge1,073,716.28274,953.45Landusetax1,004,517.361,120,370.46Stampdutyandothertaxes1,851,122.871,250,438.60

Total21,879,412.1616,741,282.71

3.Sellingexpenses

ProjectsCurrentperiod

Sameperiodlast

yearyear

ProjectsCurrentperiod

Sameperiodlast

year

Salesagentfeesandcommissions6,225,248.691,863,418.96Employeecompensation5,112,278.693,362,219.19Propertymanagementfee3,924,137.903,906,657.98costofoperation192,056.24136,489.27Advertisingfees2,815,526.992,488,123.19other2,505,974.901,407,764.34Total20,775,223.4113,164,672.93

4.Overhead

ProjectsCurrentperiod

Sameperiodlast

yearyear

Employeecompensation

year59,783,269.03

Intermediaryfees

Legalfees

Businesshospitality

Depreciation

Officeexpenses

Repairs

Travel

Utilities

other

Total

72,505,249.0370,118,532.01

5.Financialexpenses

ProjectsCurrentperiod

Sameperiodlast

Interestexpense3,760,510.212,586,822.94Less:interestincome3,829,111.017,998,718.28Exchangegainsandlosses-1,522,796.04-465,656.39Fees371,261.82374,804.61

Total-1,220,135.02-5,502,747.12

6.Otherincome

ProjectsCurrentperiod

Sameperiod

lastyear

Amountincludedinnonrecurringgainsandlossesinthecurrent

period

grantsrelatedtoincome753,298.54Refundofhandlingfeeforwithholding

periodindividual

31,652.4686,280.28VATplusorminus2,627.57

Total31,652.46842,206.39

7.Investmentincome

ProjectsCurrentperiod

Sameperiodlast

Long-termequityinvestmentincomeaccountedfor

yearby

Investmentincomefromdisposaloflong-term

136,518.90568,863.59Gainsfromlossofcontrol-151,858,626.57Investmentincomeoftradingfinancialassetsduring

Dividendincomefrominvestmentinotherequity

778,495.00777,600.00Total-150,943,612.671,346,463.59

8.Incomefromchangesinfairvalue

ProjectsCurrentperiod

Sameperiodlast

Tradingfinancialassets16,621,332.2218,461,736.59Amongthem:incomefromchangesinfairvaluearisingfromfinancialassetsdesignatedtobemeasuredatfairvalueandwhosechangesare

yearincluded

16,621,332.2218,461,736.59Total16,621,332.2218,461,736.59

9.Creditimpairmentlosses

ProjectsCurrentperiod

Sameperiodlast

Baddebtlossofaccountsreceivable457,485.01-8,437,909.31Baddebtlossesonotherreceivables-2,544,245.75-515,171.21Total-2,086,760.74-8,953,080.52

10.Lossonimpairmentofassets

ProjectsCurrentperiod

Sameperiodlast

year

Inventorydepreciationloss-374,863,314.48Impairmentlossoncontractassets-2,407,322.73-324,845.35

Total-2,407,322.73-375,188,159.83

11.Incomefromdisposalofassets

ProjectsCurrentperiod

Sameperiodlastyear

IncludedincurrentnonrecurringAmountofprofitor

yearloss

Incomefromdisposaloffixed

lossassets

-5,767.73195,840.20-5,767.73Total-5,767.73195,840.20-5,767.73

12.Nonoperatingincome

ProjectsCurrentperiod

Sameperiodlastyear

IncludedincurrentnonrecurringAmountofprofitor

assetsloss

Gainsfromdamageand

lossscrapping

1,475.001,475.00Fines,defaultincome923,846.062,170,800.00923,846.06Others18,312.66243,877.0318,312.66

Total943,633.722,414,677.03943,633.72

13.Nonoperatingexpenses

ProjectsCurrentperiod

Sameperiodlastyear

Includedincurrentnon

recurring

Externaldonations1,614.3331,795.001,614.33Lossondamageandscrapping

35,685.5423,829.3735,685.54Latefeesandliquidated

212,363.60other32.5032.50Total37,332.37267,987.9737,332.37

14.Incometaxexpense

(1)Details

ProjectsCurrentperiod

Sameperiodlast

year

Currentincometaxexpense61,525,217.02-4,272,520.91DeferredIncomeTaxExpense157,641.58894,975.30

Total61,682,858.60-3,377,545.61

(2)AccountingprofitandincometaxexpenseadjustmentprocessProjectsCurrentperiod

Sameperiodlast

yearyear

Totalprofit161,235,927.20-380,973,503.91Incometaxexpensecalculatedattheapplicabletax

yearrate

40,308,981.80-95,243,375.98Impactofdifferenttaxratesonsubsidiaries132,546.07465,029.57

Effectofadjustingincometaxinpreviousperiods-10,666,216.42-6,533,032.37

Impactofnontaxableincome-4,809,834.15Impactofnondeductiblecosts,expensesandlosses3,748,571.21251,199.32

Impactofusingdeductiblelossesofunrecognized

-99,497.07-1,349,670.39Impactofdeductibletemporarydifferencesordeductiblelossesofdeferredincometaxassetsnot

28,258,473.01103,842,138.39Incometaxexpense61,682,858.60-3,377,545.61

15.Netaftertaxofothercomprehensiveincome

Thenetamountofothercomprehensiveincomeaftertaxisdetailedinnote5(1)31tothefinancialstatements.

（3）Notestoconsolidatedcashflowstatementitems

1.Cashreceivedorpaidrelatedtoimportantinvestmentactivities

(1)Cashreceivedfrominvestmentincome

ProjectsCurrentperiod

Sameperiodlast

Dividendincomefrominvestmentinotherequity

yearinstruments

778,495.00777,600.00Subtotal778,495.00777,600.00

(2)Netcashrecoveredfromdisposaloffixedassets,intangibleassetsandotherlong-termassetsProjectsCurrentperiod

Sameperiodlast

instrumentsyear

Disposaloflong-termassets162,736.20519,930.21

Subtotal162,736.20519,930.21

(3)NetcashreceivedfromdisposalofsubsidiariesandotherbusinessunitsProjectsCurrentperiod

Sameperiodlast

year

Cashorcashequivalentsreceivedfromsubsidiaries

yearin

Amongthem:ShenzhenPropertyManagement

Less:cashandcashequivalentsheldbythecompany

58,433.25

Amongthem:ShenzhenPropertyManagement

Jianbang58,433.25Add:cashorcashequivalentsreceivedinthecurrentperiodfromdisposalofsubsidiariesinprevious

136,518.90568,863.59

Amongthem:ShenzhenPropertyManagement

periodsCo.,

136,518.90568,863.59Netcashreceivedfromdisposalofsubsidiaries78,085.65568,863.59

(4)Cashpaidforthepurchaseandconstructionoffixedassets,intangibleassetsandotherlong-termassetsProjectsCurrentperiod

Sameperiodlast

Purchaseoffixedassets572,220.99739,401.36Longtermdeferredexpenses761,576.34807,914.47ExpenditureonConstructioninprogress571,822.67

Subtotal1,905,620.001,547,315.83

2.Othercashreceivedorpaidrelatedtooperatingactivities,investmentactivitiesandfinancingactivities

(1)Othercashreceivedrelatedtooperatingactivities

ProjectsCurrentperiod

Sameperiodlast

yearyear

Interestincome3,829,111.017,559,725.59Currentandother973,811.188,330,076.43

Total4,802,922.1915,889,802.02

(2)Othercashpaymentsrelatedtooperatingactivities

ProjectsCurrentperiod

Sameperiodlast

yearyear

FinancialFees371,261.82374,804.61Cashpaidoperatingexpenses25,259,295.0628,607,966.11Currentandother27,171,214.9622,960,703.60

Total52,801,771.8451,943,474.32

(3)Othercashreceivedrelatedtoinvestmentactivities

ProjectsCurrentperiod

Sameperiodlast

year

Fundwealthmanagementproducts1,114,167,212.32Total1,114,167,212.32

(4)Othercashpaymentsrelatedtoinvestmentactivities

ProjectsCurrentperiod

Sameperiodlast

yearyear

Fundwealthmanagementproducts1,160,000,000.0090,000,000.00Total1,160,000,000.0090,000,000.00

3.Supplementaryinformationtocashflowstatement

SupplementaryinformationCurrentperiodSameperiodlastyear

(1)Adjustingnetprofittocashflowfromoperatingactivities:

Netprofit99,553,068.60-377,595,958.30Plus:provisionforimpairmentofassets2,407,322.73375,188,159.83Provisionforcreditimpairment2,086,760.748,953,080.52Depreciationoffixedassets,depreciationofrightofuseassets,depletionofoilandgasassets,

yeardepreciation

28,521,195.6328,234,946.71AmortizationofintangibleassetsAmortizationoflongtermdeferredexpenses783,201.85686,525.85Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsare

5,767.73-195,840.20Lossonscrappingoffixedassets(incomeexpressedwith-)

34,210.5423,829.37Lossfromchangesinfairvalue(incomeisrepresentedwith-)

-16,621,332.22-18,461,736.59Financialexpenses(incomeisrepresentedwith-)3,867,783.172,586,822.94Investmentloss(incomeexpressedwith-)150,943,612.67-1,346,463.59Decreaseindeferredincometaxassets(increaseexpressedwith-)

517,729.722,741,314.32Increaseindeferredincometaxliabilities(decreaseexpressedwith-)

-360,088.14-1,846,339.02Decreaseininventory(increaseexpressedwith-)967,660,785.97-96,487,621.86Decreaseinoperatingreceivables(increaseexpressedwith-)

-752,415,765.38-50,483,605.92Increaseinoperatingpayables(decreaseexpressedwith-)

-582,303,687.54598,936.15otherNetcashflowfromoperatingactivities-95,319,433.93-127,403,949.79

(2)Majorinvestmentandfinancingactivitiesnotinvolving

cashreceiptsandpayments:

SupplementaryinformationCurrentperiodSameperiodlastyearDebttocapitalConvertiblecorporatebondsduewithinoneyearNewrighttouseassets

(3)Netchangeincashandcashequivalents:

Closingbalanceofcash278,891,920.87520,910,254.44Less:Beginningbalanceofcash520,910,254.44859,146,413.35Add:endingbalanceofcashequivalentsLess:BeginningbalanceofcashequivalentsNetincreaseincashandcashequivalents-242,018,333.57-338,236,158.91

4.Compositionofcashandcashequivalents

(1)Details

ProjectsClosingbalanceBeginningbalance

1)Cash278,891,920.87520,910,254.44Including:cashonhand19,892.8338,975.98

Bankdepositsreadyforpayment278,872,028.04518,481,597.91Othermonetaryfundsthatcanbeusedforpaymentatanytime

2,389,680.55CentralbankdepositsavailableforpaymentInterbankdepositsInterbankFunding

2)Cashequivalents

Amongthem:bondinvestmentduewithinthreemonths

3)Balanceofcashandcashequivalentsattheendofthe

period

278,891,920.87520,910,254.44Amongthem:restricteduseofcashbytheparentcompanyorsubsidiarieswithinthegroupCashequivalents

(2)CashandcashequivalentsheldbythecompanywithlimitedscopeofuseProjectsClosingbalance

Beginningbalance

Reasonsforlimitedscopeofuseandreasonsforcashand

cash

Monetaryfunds5,794,604.178,332,470.92

Litigationfreezing,margin

Subtotal5,794,604.178,332,470.92

5.Changesinliabilitiesrelatedtofinancingactivities

Projects

Beginning

IncreaseincurrentperiodDecreaseincurrentperiodClosingbalance

Cash

movements

Noncash

Cashmovements

Noncash

Short-termborrowings

1,563,000.0050,000.001,563,000.0050,000.00Long-termloans(includinglong-termloansduewithinoneyear)

96,162,025.6596,162,025.65Subtotal97,725,025.6550,000.0096,162,025.651,563,000.0050,000.00

（4）Others

1.Foreigncurrencymonetaryitems

Projects

Foreigncurrencybalanceattheendof

movementsthe

Conversionrate

BalanceconvertedintoRMBattheendoftheperiodMonetaryfunds4,015,874.15Ofwhich:US$30,040.817.0288211,150.85HKD4,212,399.310.903223,804,723.30Accountsreceivable327,542.08Ofwhich:US$46,600.007.0288327,542.08Otherreceivables18,689,770.43Including:HongKong

20,692,378.860.9032218,689,770.43Otheraccounts

dollarspayable

21,941,821.60Ofwhich:US$722,044.707.02885,075,107.79HKD18,673,981.770.9032216,866,713.81Accountspayable142,421.23Ofwhich:US$

100.007.0288702.88HKD156,903.470.90322141,718.35

2.Leasing

(1)Thecompanyastenant

1)Thecompany'saccountingpoliciesforuserightsassetsaredetailedinnote3(30)tothefinancialstatements.

2)Thecompany'saccountingpoliciesforshort-termleasesandlowvalueassetleasesaredetailedinnote3(30)tothefinancialstatements.Theamountofshort-termleaseexpensesandlowvalueassetleaseexpensesincludedinthecurrentprofitandlossisasfollows:

ProjectsCurrentperiod

Sameperiodlast

payableyear

Short-termrental99,475.7056,045.24

Total99,475.7056,045.24

3)Currentprofitandlossandcashflowrelatedtoleasing

ProjectsCurrentperiod

Sameperiodlast

year

InterestexpenseonleaseliabilitiesTotalcashoutflowsrelatedtoleases99,475.7056,045.24

4)Thematurityanalysisofleaseliabilitiesandthecorrespondingliquidityriskmanagementaredetailedinnote8(2)tothesefinancialstatements.

(2)Thecompanyaslessor

1)Operatingleases

1)Rentalincome

ProjectsCurrentperiod

Sameperiodlast

yearyear

Rentalincome62,658,114.4869,153,461.54Amongthem:incomerelatedtovariableleasepaymentsnotincludedinthemeasurementofleasereceipts

2)Operatingleaseassets

ProjectsClosingbalanceEndoflastyearInvestmentproperties522,634,659.17515,925,116.54

Subtotal522,634,659.17515,925,116.54

3)Accordingtotheleasecontractsignedwiththelessee,theundiscountedleasereceiptstobereceivedinthefuturebytheirrevocablelease

RemainingtermClosingbalanceEndoflastyearWithin1year56,116,305.5052,670,249.551-2years41,138,989.9836,475,042.362-3years27,878,059.4522,511,849.373-4years20,246,078.5612,694,568.094-5years13,037,427.0310,772,038.12Fiveyearslater1,496,990.348,015,870.44Total159,913,850.86143,139,617.93

6、Rightsandinterestsinotherentities

（1）Compositionofenterprisegroups

1.Thecompanyincludes12subsidiariessuchasShenzhenshenfanggroupLonggangDevelopmentCo.,Ltd.andgreatwallrealestateCo.,Ltd.inthescopeofconsolidatedfinancialstatements.

2.Basicinformationofimportantsubsidiaries

Unit:10000yuanNameofsubsidiary

registered

capital

Principalplaceofbusinessandplaceof

registration

Natureofbusiness

Shareholding

registrationratio

Acquisitionmethoddirect

indirec

tShenzhenshenfanggroupLonggangDevelopmentCo.,

3000.00ShenzhenRealestate95.005.00setupGreatwall

Ltdproperties

$500000

UnitedStates

Realestate70.00setupShenzhenHaiyanHotelCo.,Ltd

3000.00Shenzhen

Rentandmanagement

propertiesservices

68.1031.90

setupShenzhenZhentongEngineeringCo.,

servicesLtd

1000.00ShenzhenConstruction73.0027.00setupShenzhenhuazhanConstructionSupervisionCo.,

LtdLtd

eighthundred

ShenzhenConstruction75.0025.00setupShenzhenLianhua

LtdEnterprise

1000.00ShenzhenConstruction95.005.00setupXinfengEnterpriseCo.,Ltd

1million

Hong

Kong

HongKong

Investmentandmanagement

100.00

setupShenzhenshenfangbondedtradeCo.,

dollarsLtd

fivehundred

Shenzhen

Importandexporttrade

95.005.00

setupShenzhenShenfangInvestmentCo.,

LtdLtd

1000.00ShenzhenInvestment90.0010.00setupHualinCo.,Ltd

10000HongKong

Ltddollars

HongKong

Investmentandmanagement

100.00

setupBeijingXinfengrealestatedevelopmentand

dollarsOperation

$10million

BeijingRealestate75.0025.00setupShenzhenshenfangChuanqiRealEstateDevelopmentCo.,Ltd

3000.00ShenzhenRealestate100.00setup

(2)Otherinstructions

1)Therearethreesubsidiariesofthecompanythathavebeensuspendedforalongtimeandwhoseindustrialandcommercialregistrationhasbeenrevokedbutnotcancelled,namely,GuangzhouHuangpunewestaterealestatedevelopmentCo.,Ltd.andXinfengrealestatedevelopmentandconstruction(Wuhan)Co.,Ltd.,twosecondarysubsidiariesheldbyBeijingXinfengrealestatedevelopmentandOperationCo.,Ltd.andXinfengrealestatedevelopmentand

construction(Wuhan)Co.,Ltd.thesethreesubsidiariesarereportedonthebasisofnoncontinuingoperations.

2)JianbangcompanywasliquidatedonNovember30,2025andtakenoverbythebankruptcyadministrator,whichwillnolongerbeincludedinthescopeofconsolidationfromthatdate.

（2）Changesinthescopeofconsolidationforotherreasons

DecreaseinconsolidationscopeCompanyname

Equitydisposal

Timingofequitydisposal

Netassetsatdisposaldate

Fromthebeginningofthe

periodtothedisposaldate

Net

JianbangReceivership

November30,2025

55,460,144.68-589,075.49[note]InNovember2025,thecompanyreceivedthedecisionofHuizhouintermediatepeople'sCourtofGuangdongProvince((2025)yue13pono.45-1),andthecourtruledthatJianbangcompanywasbankrupt.Accordingtotheprovisionsoftheaccountingstandardsforbusinessenterprises,Jianbangcompanyisnolongerincludedinthescopeofthecompany'sconsolidatedfinancialstatements.Basedonthepropertysurveyandcreditor'sRightsVerificationofJianbangcompanycountedatthefirstcreditor'smeeting,thecompanyestimatestherecoverableamountoftheremainingassetsofJianbangcompanywithreferencetothesalespriceofrealestateandlandperunitareaassessedbyathirdparty,andcalculatestheliquidationpriceofcreditor'srightsattributabletothecompany.Attheconsolidatedstatementlevel,thecompanyestimatesthefairvalueofotherreceivablesofJianbangcompanyas742.9747millionyuan,whichisrecognizedasreceivables.Thedifferencebetweentheoriginalbookbalanceandtherecoverableamountofreceivablesoffsetstheinvestmentincomegeneratedbythedisposalofsubsidiaries.

（3）Significantnon-wholly-ownedsubsidiaries

1.Details

Nameofsubsidiary

MinorityshareholdersSharehold

LessattributableinthecurrentperiodGainsandlossesofminorityshareholders

MinorityshareholdersinthecurrentperiodDividendsdeclared

Minorityshareholdersatthe

endoftheperiod

EquitybalanceGreatwallproperties30.00%-98,694.29-22,801,466.23XinfengInvestment

45.00%-15,574.61-116,172,006.07BestwayProperties

20.00%-19.24-3,870,524.87Jianbang49.00%-288,646.99

2.Mainfinancialinformationofimportantnonwholly-ownedsubsidiaries

(1)Assetsandliabilities

Subsidiaries

name

Closingbalancecurrentassets

Noncurrent

assets

TotalAssetscurrentliabilities

Noncurrent

Limitedliabilities

TotalliabilitiesGreatwallproperties

526,052.0519,420,237.0119,946,289.06111,745,358.13

liabilities111,745,358.13

XinfengInvestment

517.262,292.802,810.06258,164,218.56

111,745,358.13258,164,218.56

Subsidiariesname

Closingbalancecurrentassets

Noncurrentassets

TotalAssetscurrentliabilities

Noncurrent

liabilities

TotalliabilitiesCo.,LtdBestwayPropertiesLimited

32,812,021.68

liabilities32,812,021.68

Jianbang(Continued)Subsidiariesname

Beginningbalancecurrentassets

Noncurrent

assets

TotalAssetscurrentliabilities

Noncurrent

32,812,021.68liabilities

TotalliabilitiesGreatwall

liabilitiesproperties

334,066.5319,862,585.6320,196,652.16113,755,645.58113,755,645.58XinfengInvestmentCo.,

propertiesLtd

193,038.3536,016.90229,055.25259,168,553.63259,168,553.63BestwayPropertie

Ltds

1,084.111,084.1133,634,035.70

Jianbang1,546,413,206.246,596,481.141,553,009,687.381,496,960,467.21

33,634,035.701,496,960,467.21

(2)Profitandlossandcashflow

Subsidiariesname

CurrentperiodSameperiodlastyearOperatingincome

Netprofit

Totalcomprehensive

1,496,960,467.21income

Cashflowfromoperating

Operatingincome

Netprofit

Totalcomprehensive

Cashflowfromoperating

Greatwallpropertie

697,969.09-328,980.981,759,924.36158,148.77695,682.90-351,389.23-1,731,679.70-124,152.78XinfengInvestmentCo.,

sLtd

-34,610.25-64,961.29BestwayProperties

LtdLimited

-96.22820,929.91-713,023.86Jianbang-1,918,706.24-1,918,706.24-2,412.86-409,694,614.91-409,694,614.91-5,663,416.92[note]JianbangcompanywastakenoverbythebankruptcyadministratorforbankruptcyliquidationonNovember30,2025,andwillnolongerbeincludedinthescopeofconsolidationfromNovember30,2025.

（4）Equityinjointventuresorassociates

1.SummaryfinancialinformationofunimportantjointventuresandassociatesProjects

Closingbalance/current

Limitedbalance

Beginningbalance/same

JointventureTotalbookvalueofinvestment

Projects

Closingbalance/current

balance

Beginningbalance/same

Thetotalnumberofthefollowingitemscalculatedaccordingtotheshareholding

NetprofitOthercomprehensiveincomeTotalcomprehensiveincomeAssociatesTotalbookvalueofinvestmentThetotalnumberofthefollowingitemscalculatedaccordingtotheshareholding

ratioratio

NetprofitOthercomprehensiveincomeTotalcomprehensiveincome

2.Excesslossesincurredbyjointventuresorassociates

Jointventuresor

Nameofjointventure

PreviousaccumulationnotRecognisedlosses

Unrecognizedlossesinthecurrentperiod(ornetprofitsharedin

ratiothe

Cumulativeattheendof

theperiodUnrecognizedlossesShenzhenXinfengRealEstateConsultingCo.,Ltd

2,217,955.892,217,955.89

7、Governmentsubsidies

AmountofgovernmentsubsidiesincludedincurrentprofitandlossProjectsCurrentperiodSameperiodlastyearAmountofgovernmentsubsidiesincludedinother

753,298.54Total753,298.54

8、Risksrelatedtofinancialinstruments

Thegoalofthecompany'sriskmanagementistostrikeabalancebetweenriskandreturn,minimizethenegativeimpactofriskonthecompany'soperatingresults,andmaximizetheinterestsofshareholdersandotherequityinvestors.Basedonthisriskmanagementobjective,thebasicstrategyofthecompany'sriskmanagementistoconfirmandanalyzevariousrisksfacedbythecompany,establishanappropriatebottomlineofrisktoleranceandriskmanagement,andsupervisevariousrisksinatimelyandreliablemannertocontrolriskswithinalimitedrange.Thecompanyisfacingvariousrisksrelatedtofinancialinstrumentsinitsdailyactivities,mainlyincludingcreditrisk,liquidityriskandmarketrisk.Managementhasconsideredandapprovedpoliciestomanagetheserisks,summarizedbelow.

（1）Creditrisk

Creditriskreferstotheriskthatonepartytoafinancialinstrumentfailstoperformitsobligationsandcausesfinanciallossestotheotherparty.

1.Creditriskmanagementpractice

(1)Evaluationmethodofcreditrisk

Thecompanyassessesoneachbalancesheetdatewhetherthecreditriskoftherelevantfinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.Indeterminingwhethercreditriskhasincreasedsignificantlysinceinitialrecognition,thecompanyconsidersobtainingreasonableandevidence-basedinformationwithoutunnecessaryadditionalcostsorefforts,includingqualitativeandquantitativeanalysisbasedonhistoricaldata,externalcreditriskratingsandforward-lookinginformation.Basedonasinglefinancialinstrumentoracombinationoffinancialinstrumentswithsimilarcreditriskcharacteristics,thecompanydeterminesthechangeintheriskofdefaultduringtheexpecteddurationoffinancialinstrumentsbycomparingtheriskofdefaultoffinancialinstrumentsonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondate.

Whenoneormoreofthefollowingquantitativeandqualitativecriteriaaretriggered,thecompanybelievesthatthecreditriskoffinancialinstrumentshasincreasedsignificantly:

1)Thequantitativestandardismainlythatthedefaultprobabilityoftheremainingdurationonthebalancesheetdateincreasesbymorethanacertainproportioncomparedwiththeinitialrecognition;

2)Thequalitativecriteriaaremainlysignificantadversechangesinthedebtor'sbusinessorfinancialsituation,existingorexpectedchangesinthetechnical,market,economicorlegalenvironment,andwillhaveasignificantadverseimpactonthedebtor'sabilitytorepaythecompany.

(2)Definitionofdefaultandcreditimpairedassets

Whenafinancialinstrumentmeetsoneormoreofthefollowingconditions,thecompanydefinesthefinancialassetashavingdefaulted,anditsstandardisconsistentwiththedefinitionofcreditimpairment:

1)Thedebtorhassignificantfinancialdifficulties;

2)Thedebtorviolatesthebindingprovisionsofthecontractonthedebtor;

3)Thedebtorislikelytogobankruptorundergootherfinancialrestructuring;

4)Thecreditorgivesthedebtorconcessionsthatitwouldnototherwisemakebecauseofeconomicorcontractualconsiderationsrelatedtothedebtor'sfinancialdifficulties.

2.Measurementofexpectedcreditlosses

Thekeyparametersofexpectedcreditlossmeasurementincludedefaultprobability,defaultlossrateanddefaultriskexposure.Consideringthequantitativeanalysisandforward-lookinginformationofhistoricalstatistics(suchascounterpartyrating,guaranteemethod,collateralcategory,repaymentmethod,etc.),thecompanyestablishesadefaultprobability,defaultlossrateanddefaultriskexposuremodel.

3.ThereconciliationbetweentheBeginningbalanceoftheprovisionforlossoffinancialinstrumentsandtheclosingbalanceisdetailedinnotesV(1)3,V(1)4,V(1)6andV(1)8tothesefinancialstatements.

4.Creditriskexposureandcreditriskconcentration

Thecompany'screditriskmainlycomesfrommonetaryfundsandreceivables.Inorderto

controltheaboverelatedrisks,thecompanyhastakenthefollowingmeasuresrespectively.

(1)Monetaryfunds

Thecompanydepositsbankdepositsandothermonetaryfundsinfinancialinstitutionswithhighercreditratings,soitscreditriskislow.

(2)Receivablesandcontractassets

Thecompanyregularlyevaluatesthecreditofcustomerswhotradebycredit.Accordingtothecreditassessmentresults,thecompanychoosestoconducttransactionswithrecognizedcustomerswithgoodcreditandmonitorstheiraccountsreceivablebalancestoensurethatthecompanywillnotfacesignificantbaddebtrisks.

Asthecompany'saccountsreceivableriskpointsaredistributedamongmultiplepartnersandmultiplecustomers.Creditriskiscentrallymanagedaccordingtocustomers.AsofDecember31,2025,thecompanyhasacertaincreditconcentrationrisk,and38.71%ofthecompany'saccountsreceivableandcontractassets(December31,2024:40.97%)arefromthetopfivecustomersinthebalance.Thecompanydoesnotholdanycollateralorothercreditenhancementforthebalanceofaccountsreceivableandcontractassets.

Themaximumcreditriskexposuretothecompanyisthebookvalueofeachfinancialassetinthebalancesheet.

（2）Liquidityrisk

Liquidityriskreferstotheriskofcapitalshortagewhenthecompanyperformsitsobligationtosettlebydeliveringcashorotherfinancialassets.Liquidityriskmaystemfromtheinabilitytosellfinancialassetsatfairvalueassoonaspossible;Orbecausetheotherpartyisunabletorepayitscontractdebts;Orfromdebtmaturingearly;Orfromtheinabilitytogeneratetheexpectedcashflow.

Inordertocontrolthisrisk,thecompanycomprehensivelyusesbillsettlement,bankborrowingandotherfinancingmeans,andadoptstheappropriatecombinationoflong-termandshort-termfinancingmethodstooptimizethefinancingstructure,soastomaintainabalancebetweenfinancingsustainabilityandflexibility.Thecompanyhasobtainedbankcreditlinesfromanumberofcommercialbankstomeetworkingcapitalneedsandcapitalexpenditure.

Financialliabilitiesareclassifiedbyremainingmaturity

(Continued)

Projects

Beginningbalancebookvalue

Undiscounted

contract

Within1year1-3years

Morethan3

Short-termborrowings

1,563,000.001,599,446.391,599,446.39

Projects

Closingbalancebookvalue

Undiscounted

yearscontract

Within1year1-3years

Morethan3

Short-termborrowings

50,000.0050,000.0050,000.00Accountspayable171,738,333.04171,738,333.04171,738,333.04Otheraccountspayable

144,280,409.16144,280,409.16144,280,409.16Othercurrentliabilities

7,329,890.157,329,890.157,329,890.15Subtotal323,398,632.35323,398,632.35323,398,632.35

Projects

Beginningbalancebookvalue

Undiscounted

contract

Within1year1-3years

Morethan3

Accountspayable464,488,982.30464,488,982.30464,488,982.30Otheraccountspayable

561,016,653.17561,016,653.17561,016,653.17

yearsNon

currentliabilitiesdue

Nonwithin

33,888,347.8336,522,809.8636,522,809.86Othercurrentliabilities

118,304,068.47118,304,068.47118,304,068.47Long-termborrowings

62,273,677.8267,283,938.914,788,462.25

Subtotal1,241,534,729.591,249,215,899.101,181,931,960.194,788,462.25

62,495,476.6662,495,476.66

（3）Marketrisk

Marketriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentswillfluctuateduetochangesinmarketprices.Marketrisksmainlyincludeinterestrateriskandforeignexchangerisk.

1.Interestraterisk

Interestrateriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentswillfluctuateduetochangesinmarketinterestrates.Fixedinterestrateinterestbearingfinancialinstrumentsexposethecompanytofairvalueinterestraterisk,andfloatinginterestrateinterestbearingfinancialinstrumentsexposethecompanytocashflowinterestraterisk.Thecompanydeterminestheratiooffixedinterestratetofloatinginterestratefinancialinstrumentsaccordingtothemarketenvironment,andmaintainsanappropriateportfoliooffinancialinstrumentsthroughregularreviewandmonitoring.Thecashflowinterestrateriskfacedbythecompanyismainlyrelatedtothecompany'sbankloanswithfloatinginterestrates.

AsofDecember31,2025,thecompany'sbankloanswithnofloatinginterestrate(December31,2024:RMB62273677.82),assumingthatothervariablesremainunchanged,assumingthattheinterestratechangesby50basispoints,willnothaveasignificantimpactonthecompany'stotalprofitandshareholders'equity.

2.Foreignexchangerisk

Foreignexchangeriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentswillfluctuateduetochangesinforeignexchangerates.Theriskofexchangeratechangesfacedbythecompanyismainlyrelatedtothecompany'sforeigncurrencymonetaryassetsandliabilities.Forforeigncurrencyassetsandliabilities,ifthereisashort-termimbalance,thecompanywillbuyandsellforeigncurrenciesatmarketexchangerateswhennecessarytoensurethatthenetriskexposureismaintainedatanacceptablelevel.

Exchangerateriskismainlythatthecompany'sfinancialpositionandcashflowareaffectedbyfluctuationsinforeignexchangerates.InadditiontotheassetsdenominatedinHongKongdollarsheldbysubsidiariesestablishedinHongKong,thereisonlyasmallamountofHongKongmarketinvestmentbusiness,andtheforeigncurrencyassetsandliabilitiesheldbythecompanydonotaccountforasignificantproportionoftheoverallassetsandliabilities.Therefore,thecompanybelievesthattheexchangerateriskisnotsignificant.

Thecompany'sforeigncurrencymonetaryassetsandliabilitiesattheendoftheperiodaredetailedinnote5(4)1tothefinancialstatements.

9、Disclosureoffairvalue

（1）Detailsoffairvalueofassetsandliabilitiesmeasuredatfairvalueattheendoftheperiod

Projects

FairvalueattheendoftheperiodLevel1fairnessValuemeasurement

Level2fairnessValue

measurement

Level3fairnessValuemeasurement

TotalContinuingfairvaluemeasurement

1.Tradingfinancialassetsand

othernoncurrentfinancial

measurementassets

1,050,256,058.411,050,256,058.41

(1)Financialassetsclassifiedas

atfairvaluethroughprofitor

assetsloss

Fundfinance1,050,256,058.411,050,256,058.41

(2)Financialassetsdesignated

asmeasuredatfairvalueandwhosechangesareincludedin

lossthe

Debtinstrumentsinvestments

2.Investmentinotherequity

instruments

14,571,511.8114,571,511.81Totalassetscontinuouslymeasuredatfairvalue

1,064,827,570.221,064,827,570.22

（2）Continuousandnoncontinuousthirdlevelfairvaluemeasurementprojects,valuationtechnologyandqualitativeandquantitativeinformationofimportantparameters

Forfundfinancingthatisnottradedinanactivemarket,itsremainingperiodisrelativelyshort,anditsfairvalueisdeterminedbythesumofbookvalueandexpectedincome.Forotherequityinstrumentinvestmentsthatarenottradedintheactivemarket,theinvestmentamountissmall,thenetassetsoftheinvestedunitchangelittle,andthebookvalueissimilartothefairvalue,sothebookvalueisusedtodetermineitsfairvalue.

10、Relatedpartiesandrelatedtransactions

（1）Relatedparties

1.Parentcompanyofthecompany

(1)Parentcompanyofthecompany

Parentcompanyname

Placeofincorporation

Natureofbusiness

Registeredcapital(10000yuan)

Shareholdingratiooftheparentcompanytothecompany(%)

Votingrightsoftheparentcompanytothecompany

ShenzhenInvestmentHoldingCo.,Ltd

Shenzhen,Guangdong

Investment,realestatedevelopment,guarantee

3,358,600.0054.7954.79

(2)Theultimatecontrollerofthecompanyisthestateownedassetssupervisionand

AdministrationCommissionofShenzhenMunicipalPeople'sgovernment.

2.Fordetailsofthecompany'ssubsidiaries,pleaserefertonote6tothefinancialstatements.

3.Jointventuresandassociatesofthecompany

Fordetailsofthecompany'simportantjointventuresorassociates,pleaserefertonote6tothefinancialstatements.

4.Otherrelatedpartiesofthecompany

Namesofotherrelatedparties

Relationshipbetweenotherrelatedpartiesand

the

ShenzhenOrientalNewWorldDepartment

ShareholdingcompanyShenzhenShenxibuildingdecorationcompany

Revokedbutnotcancelledholdingsubsidiaries

ShenzhenzhentongxinElectromechanical

HoldingsubsidiariesnotincludedinthemergerShenzhenNanyangHotelCo.,Ltd

Revokedbutnotcancelledholdingsubsidiaries

Shenzhenrealestateelectromechanical

Revokedbutnotcancelledholdingsubsidiaries

ShenzhenLonggangHenggangHuagang

Revokedbutnotcancelledholdingsubsidiaries

GuangdongJianbanggroup(Huiyang)

Holdingsubsidiariesnotincludedinthemerger

GuangzhoubobiEnterpriseManagementConsultingCo.,Ltd.(hereinafterreferredtoas

ShareholdersofsubsidiariesShenzhenPropertyManagementCo.,LtdHoldingsubsidiaryofparentcompanyGuorenPropertyInsuranceCo.,LtdHoldingsubsidiaryofparentcompanyShenzhenwaterplanningandDesignInstitute

HoldingsubsidiaryofparentcompanyShenzhenGeneralInstituteofArchitectural

HoldingsubsidiaryofparentcompanyShenzhenshenfangpropertycleaningCo.,LtdHoldingsubsidiaryofparentcompanyShenzhenPropertyManagementCo.,Ltd.

HoldingsubsidiaryofparentcompanyShenzhenXinfengRealEstateConsultingCo.,

ShareholdingcompanyGuangdongHuizhouLuofushanmineralwater

Ltdbeverage

ShareholdingcompanyShenzhenRunhuaAutoTradingCompanyShareholdingcompanyGreatWall(Vancouver)IncShareholdingcompanyBurktonAustraliaLimitedShareholdingcompanyBailiCo.,LtdShareholdingcompanyShenzhenshenfangDepartmentStoreCo.,LtdShareholdingcompanyShenzhenronghuaElectromechanical

ShareholdingcompanyXi'anXinfengPropertyTradingCo.,LtdShareholdingcompany

Namesofotherrelatedparties

Relationshipbetweenotherrelatedpartiesand

the

FengkaiLianfengcementmanufacturingCo.,

ShareholdingcompanyBeijingShenfangPropertyManagementCo.,Ltd

Shareholdingcompany[note]beforeNovember30,2025,GuangdongJianbanggroup(Huiyang)IndustrialCo.,Ltd.wasaholdingsubsidiaryofthecompany.OnandafterNovember30,2025,GuangdongJianbanggroup(Huiyang)IndustrialCo.,Ltd.enteredbankruptcyliquidationproceedingsandwastakenoverbytheadministrator.Thecompanylosescontrolofitandwillnolongerincludeitinthescopeofconsolidatedstatements.Atthetimeoflossofcontrol,thecorrespondingbookbalanceoflong-termequityinvestmentis450,000,000.00yuan,andtheprovisionforimpairmentoflong-termequityinvestmentis450,000,000.00yuan.

（2）Relatedpartytransactions

1.Relatedpartytransactionsforpurchasingandsellingcommodities,providingandreceivinglaborservices

(1)RelatedpartytransactionsforpurchasinggoodsandreceivingservicesRelatedparties

Contentofrelated

Ltdparty

CurrentperiodSameperiodlastyearShenzhenwaterplanningandDesign

Testingservices27,169.81GuorenProperty

Insuranceservices265,372.43322,255.28ShenzhenProperty

Propertyservices3,718,815.117,472,214.59ShenzhenshenfangpropertycleaningCo.,

Cleaningservices520,444.89497,453.20ShenzhenPropertyManagementCo.,Ltd.

LtdShantou

Propertyservices2,553,168.282,480,734.94ShenzhenronghuaElectromechanical

Engineeringservices310,179.94Subtotal7,367,980.6510,799,827.82

(2)RelatedpartytransactionsforthesaleofgoodsandtheprovisionofservicesRelatedparties

Contentofrelated

CurrentperiodSameperiodlastyearGuorenProperty

Leasingservices424,754.28773,325.68ShenzhenProperty

Leasingservices5,199,896.635,476,586.12ShenzhenshenfangpropertycleaningCo.,

Leasingservices41,714.2839,999.96Subtotal5,666,365.196,289,911.76

2.Relatedpartyleases

Companyrentals

NameoftenantTypesofleasedassets

Confirmedinthecurrentperiod

Rental

Confirmedinthesameperiodlastyear

ShenzhenProperty

Houses,buildings5,199,896.635,476,586.12ShenzhenshenfangpropertycleaningCo.,

Houses,buildings41,714.2839,999.96GuorenProperty

LtdInsurance

Houses,buildings424,754.28773,325.68Subtotal5,666,365.196,289,911.76

3.Remunerationofkeymanagement

ProjectsCurrentperiod

Sameperiod

Keymanagementcompensation6,981,280.008,572,590.00

4.Otherrelatedpartytransactions

Inordertoadvocatethatthecoreemployeesofthegroupsharetheoperatingresultsofmarket-orientedprojectswiththecompany,shareoperationalrisks,stimulatetheirendogenousmotivationtoimproveefficiencyandincreaseefficiency,improveassetmanagementefficiency,andrealizethepreservationandappreciationofstate-ownedassets,thecompanyformulatedthemeasuresforthemanagementofemployeesinlinxijunprojectofshenfanggroupinJuly2021.Accordingtotheprovisionsoftheabovemanagementmeasures,thefollow-upwillconstitutearelatedpartytransactionofjointinvestmentwithsomedirectors,supervisorsandseniorexecutivesofthecompany.Thecompanyhascancelledthefollow-upinvestmentintheLinXinyuanprojectinJune2025andreturnedthefollow-upinvestmentamountinfullin2025.

（3）Receivablesandpayablesfromrelatedparties

1.Receivablesfromrelatedparties

projectname

Relatedparties

ClosingbalanceBeginningbalanceBookbalance

Baddebt

Bookbalance

Baddebt

Accountsreceivable

ShenzhenPropertyManagementCo.,

500,000.001,025,942.86ShenzhenXinfengRealEstateConsultingCo.,Ltd

1,212,232.731,212,232.731,237,010.581,237,010.58Subtotal1,712,232.731,212,232.732,262,953.441,237,010.58Otherreceivables

GuangdongJianbanggroup(Huiyang)Industrial

LtdCo.,

843,296,961.67102,965,447.05ShenzhenPropertyManagementCo.,

5,500.00GuangdongHuizhouLuofushanmineralwater

Ltdbeverage

10,465,168.8110,465,168.8110,465,168.8110,465,168.81

projectname

Relatedparties

ClosingbalanceBeginningbalanceBookbalance

Baddebt

provision

Bookbalance

Baddebt

ShenzhenRunhuaAutoTrading

3,072,764.423,072,764.423,072,764.423,072,764.42GreatWall(Vancouver)Inc

89,035,748.0789,035,748.0789,035,748.0789,035,748.07BurktonAustraliaLimited

12,559,290.5812,559,290.5812,559,290.5812,559,290.58BailiCo.,Ltd19,363,348.6919,363,348.6920,251,959.0220,251,959.02ShenzhenshenfangDepartmentStore

CompanyCo.,

237,648.82237,648.82237,648.82237,648.82ShenzhenronghuaElectromechanicalEngineeringCo.,

475,223.46475,223.46475,223.46475,223.46Xi'anXinfengPropertyTrading

LtdCo.,

8,391,333.188,391,333.188,419,205.198,419,205.19ShenzhenShenxibuildingdecoration

7,660,529.377,660,529.377,660,529.377,660,529.37ShenzhenNanyangHotelCo.,Ltd

3,168,721.003,168,721.003,168,721.003,168,721.00BeijingShenfangPropertyManagementCo.,

companyLtd

6,905,673.696,533,817.096,905,673.696,533,817.09Subtotal1,004,632,411.76263,929,040.54162,257,432.43161,880,075.83

2.Amountsduetorelatedparties

entrynameRelatedpartiesClosingbalanceBeginningbalanceOtheraccountspayable-interest

Ltdpayable

ShenzhenInvestmentHoldingCo.,Ltd

16,535,277.9416,535,277.94

Subtotal16,535,277.9416,535,277.94Accountspayable

ShenzhenPropertyManagementCo.,Ltd

8,127,082.2212,658,092.83

Subtotal8,127,082.2212,658,092.83Otheraccountspayable

ShenzhenPropertyManagementCo.,Ltd

171,466.20244,304.26GuorenProperty

payableInsurance

74,332.00ShenzhenOrientalNewWorldDepartmentStore

902,974.64902,974.64FengkaiLianfengcementmanufacturingCo.,Ltd

1,867,348.001,867,348.00

entrynameRelatedpartiesClosingbalanceBeginningbalance

Shenzhenrealestateelectromechanical

management

14,981,420.9914,981,420.99ShenzhenzhentongxinElectromechanicalIndustry

8,260,832.508,310,832.50ShenzhenshenfangDepartmentStoreCo.,Ltd

639,360.38639,360.38ShenzhenLonggangHenggangHuagang

165,481.09165,481.09GuangzhoubobiEnterpriseManagementConsulting

206,903,717.13Subtotal26,988,883.80234,089,770.99

11、Commitmentsandcontingencies

（1）Importantcommitments

AsofDecember31,2025,thecompanydoesnotneedtodiscloseimportantcommitments.

（2）Contingencies

1.Contingentliabilitiesarisingfrompendinglitigationandarbitrationandtheirfinancialimpact

plaintiffdefendant

Causeofaction

Courtofacceptance

Targetamount

NoteZhongshanShengtangAdvertisingCo.,Ltd

GuangdongJianbanggroup(Huiyang)IndustrialCo.,Ltd

Filingforbankruptcyliquidation

Huizhouintermediatepeople'scourt

Creditor'srightsanddebtsunderreview

Inthebankruptcyliquidation,theadministratorhastakenoverJianbangcompany.

HuizhouMingxiangEconomicInformationConsultingCo.,Ltd.,HuizhouHuiyangHongfaindustryandTradeCo.,Ltd.andHuizhoujinlongsheng

GuangdongJianbanggroup(Huiyang)IndustrialCo.,Ltd

Litigationoverbillpaymentclaim

HuiyangDistrictCourt

Principal

177.1514

millionyuan,interest

2.8482

millionyuan

Progressofthecase:

Jianbangcompanyhasenteredthebankruptcyliquidationprocedure,andcreditorscandeclaretheircreditor'srightstothemanager.Casedetails:[Note2]

ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd

GuangzhoubobiEnterpriseManagementConsultingCo.,Ltd.,EvergranderealestategroupPearlRiverDeltarealestatedevelopmentCo.,Ltd.,ShenzhenQijinInvestmentCo.,Ltd.(hereinafterreferredtoasShenzhenQijin),

Disputesoverjointventureandcooperativedevelopmentrealestatecontracts

Huizhouintermediatepeople'sCourtofGuangdongProvince

743.575

millionyuan

Caseprogress:inthesecondinstance.HengdaPearlRiverDeltacompanyhasenteredthebankruptcyliquidationprocedureandhasdeclareditscreditor'srightstothemanager.GuangzhoubobiandShenzhenQijinarehandlingliquidationcancellationandhavedeclaredtheircreditor'srightstotheliquidationgroup

personisGuangdongJianbanggroup(Huiyang)IndustrialCo.,

Ltd

Casedetails:[Note3]

ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd

GuangdongJianbanggroup(Huiyang)IndustrialCo.,Ltd

Loancontractdisputes

ShenzhenLuohuDistrictPeople'scourt

Principalandinterest

395.6885

millionyuan

Caseprogress:endtheenforcementprocess.Jianbangcompanyhasenteredthebankruptcyliquidationprocedureandhasdeclareditscreditor'srightstothemanager.

LtdCase

ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd

GuangdongJianbanggroup(Huiyang)IndustrialCo.,Ltd.,GuangzhoubobiEnterpriseManagementConsultingCo.,Ltd.,EvergranderealestategroupPearlRiverDeltarealestatedevelopmentCo.,Ltd.andShenzhenQijinInvestmentCo.,Ltd

Loancontractdisputes

HuizhouHuiyangDistrictPeople'scourt

Principalandinterest

419.5229

millionyuan

Progressofthecase:

JianbangcompanyandHengdaPearlRiverDeltacompanyhaveenteredthebankruptcyliquidationprocedureandhavedeclaredtheircreditor'srightstothemanagerrespectively.GuangzhoubobiandShenzhenQijinarehandlingliquidationcancellationandhavedeclaredtheircreditor'srightstotheliquidationgrouprespectively.Casedetails:[Note5][Note1]onOctober27,2025,JianbangcompanyreceivedthecivilrulinganddecisionmadebyHuizhouintermediatepeople'scourt,whichruledtoaccepttheapplicationforbankruptcyliquidationofJianbangcompanybyZhongshanShengtangAdvertisingCo.,Ltd.(hereinafterreferredtoasShengtangcompany)andappointanadministrator.Fordetails,pleaserefertotheannouncementoncourtrulingtoaccepttheapplicationforbankruptcyliquidationofholdingsubsidiariesandtheappointmentofmanagersissuedbythecompanyonOctober30,2025(AnnouncementNo.:2025-030).OnDecember8,2025,thecompanysubmittedcreditor'srightsdeclarationmaterialstothemanagerofJianbangcompanyinaccordancewiththeamountofcreditor'srightsconfirmedbytheeffectiveciviljudgment,theconfirmationofcreditor'srightsanddebts,andthetransfercertificate;Thecompanyactivelyparticipatesincreditors'meetingsandexercisescreditors'rightsaccordingtolaw.

[Note2]Jianbangcompanyisasubsidiaryofthecompanyholding51%oftheshares.BecauseJianbangcompanywasunabletopaythecommercialacceptancebilldueinJanuary2022,withatotalamountof177.1514millionyuan,theplaintiffcompanyfiledalawsuitonthedisputeofbillpaymentclaimwithHuiyangDistrictCourt.OnMarch14,2023,thecourtruledthatJianbangcompanywouldpaycommercialbillsandoverdueinterest(includinglitigationfeesandpreservationfeesofabout1.03millionyuan)tothreecompanieswithin15days.Thecaseseized2and4buildingsinthefirstphaseofshenfanglinxinyuanproject,totaling153units,withanestimatedpriceof220millionyuanatthefilingprice.TheplaintiffhasappliedtoHuizhouintermediatepeople'scourtforexecution.AsofDecember31,2025,inviewofthebankruptcyliquidationproceedingsofJianbangcompany,themanagertookoverJianbangcompanyandhandledalllitigationandexecutioncasesinaunifiedmanner.

[Note3]onApril30,2021,thecompanysignedthecooperativedevelopmentagreementandtheentrustedmanagementagreementwithGuangzhoubobi,HengdaPearlRiverDeltaandJianbangcompany.GuangzhoubobipromisedthatJianbangcompanywouldachieveacumulativenetprofitofnotlessthan1.25billionyuanin2021-2025.IfGuangzhoubobifailstofulfillitsprofitcommitment,itwillmakeupthedifference.OnJune30,2021,duetotheacquisitionof51%equityofGuangzhoubobibyShenzhenQijin,thecompany,Guangzhoubobi,HengdaPearlRiverDeltaandShenzhenQijinjointlysignedsupplementaryagreementItothecooperativedevelopmentagreement,stipulatingthatShenzhenQijinshallbejointlyandseverallyliablewithHengdaPearlRiverDeltafortheprofitcommitmentanddifferencesupplementofGuangzhoubobitothecompanystipulatedinthecooperativedevelopmentagreement.Now,thecompanyhasfiledalawsuitbecausetheactsofGuangzhoubobiandHengdaPearlRiverDeltahavefundamentallyviolatedthecontractandhaveactuallylosttheabilitytoperformthecontract,resultinginthefailuretoachievethepurposeandexpectedbenefitsofthecompany'scontract.OnJanuary8,2025,thecompanyreceivedtheciviljudgmentofthefirstinstanceofthecase,andthejudgmentmadebyHuizhouintermediatepeople'sCourtofthefirstinstancesupportedsomeofthecompany'sclaims.OnJanuary22,2025,thecompanyappealedtheunsubstantiatedapplication.ThecasewasheardinthesecondinstanceonMay22,2025andisnowinthesecondinstance.InviewofthefactthatEvergrandePearlRiverDeltacompanyhasenteredthebankruptcyliquidationprocedure,thecompanyhasdeclareditscreditor'srightstothemanager,whileGuangzhoubobiandShenzhenQijinarehandlingtheliquidationcancellation,andthecompanyhasdeclareditscreditor'srightstotheliquidationgrouprespectively.[Note4]in2021,thecompanyacquiredGuangzhoubobitohold51%ofthesharesofJianbangcompany.Atthetimeofacquisition,itwasagreedthatthecompanywouldprovideinterestbearingloanstoJianbangcompanyaccordingtotheproportionofshares.Later,Jianbangcompanyborrowedmoneyfromthecompanytwiceandsignedtheloanagreement.Afterthesigningoftheagreement,thecompanyshallprovideloanstoJianbangcompanyinaccordancewiththecontractandfulfillitslendingobligations.Nowthetwoloanshaveexpired,butJianbangcompanyhasnotrepaidthem,whichconstitutesadefault.Asastate-controlledlistedcompany,thecompanyfiledthislawsuitinordertoprotectstate-ownedassetsfromlosses.ThecasewasjudgedinthefirstinstanceinDecember2023.InJanuary2024,thecompanyreceivedtheciviljudgmentmadebythepeople'sCourtofLuohuDistrict,ShenzhenCity,GuangdongProvince:itwasjudgedthatJianbangcompanywouldrepaytheprincipaloftheloanof344696200.26yuanandpayinteresttothecompanywithin10daysfromthedateofentryintoforceofthejudgment;JudgmentJianbangcompanyshallpayliquidateddamagestothecompanywithin10daysfromtheeffectivedateofthejudgment.Thecompanyhasappliedforcompulsoryexecution,andreceivedtheexecutionrulingonDecember2,2025,rulingtoterminatetheexecutionprocedure.InviewofthefactthatJianbangcompanyhasenteredthebankruptcyliquidationproceedings,thecompanyhasdeclareditscreditor'srightstothemanager.[Note5]in2021,thecompanyacquiredGuangzhoubobitohold51%ofthesharesofJianbangcompany,andagreedtoprovideinterestbearingloanstoJianbangcompanyaccordingtotheproportionofshares.ThelatterfivepartiessignedanagreementtostipulatethatthecompanywillprovideloanstoJianbangcompany,andJianbangcompanywillprovidecorrespondingcollateral.Atthesametime,Guangzhoubobi,HengdaPearlRiverDeltaandShenzhenQiarejointlyandseverallyliablefor49%ofthetotalamountofloans,interestandliquidated

damages.Afterthesigningoftheagreement,thecompanyprovidedloanstoJianbangcompanyinaccordancewiththecontractandfulfilleditslendingobligations,butJianbangcompanywasunabletorepaytheloans.Asastate-controlledlistedcompany,thecompanyfiledalawsuitinthiscaseinordertoprotectstate-ownedassetsfromlosses.OnJune7,2024,thecompanyreceivedthejudgmentofvictoryinthefirstinstance.OnJune24,2024,Guangzhoubobiappealed,butfailedtopaythecaseacceptancefeeontime.InOctober2024,Huizhouintermediatepeople'sCourtissuedthecivilruling,whichwashandledaswithdrawalofthelawsuit,andthejudgmentofthefirstinstancetookeffect.ThecompanyappliedtothecourtforenforcementinJanuary2025.InviewofthefactthatJianbangcompanyandHengdaPearlRiverDeltacompanyhaveenteredthebankruptcyliquidationprocedures,thecompanyhasdeclaredcreditor'srightstothemanagerrespectively,whileGuangzhoubobiandShenzhenQijinarehandlingliquidationcancellation,andthecompanyhasdeclaredcreditor'srightstotheliquidationgrouprespectively.

2.Contingentliabilitiesformedbyprovidingdebtguaranteesforotherunitsandtheirfinancialimpact

AsofDecember31,2025,thecompanyprovidedmortgageloanguaranteesandsubsidiaryloanguaranteesforcommercialhousingofftakersinaccordancewithrealestatebusinesspractices,totaling181.6769millionyuan.Guaranteedentity

LoanFinancialinstitutions

GuaranteedloanPaymentamount(10000

yuan)

guaranteeDuedate

Note

BuyerChinaConstructionBank38.85

Aftercompletingthemortgageregistrationoftherealestatecertificateandhandingitovertothe

yuan)bank

ShangLinyuan

Buyeragriculturalbank151.43

Aftercompletingthemortgageregistrationoftherealestatecertificateandhandingitovertothe

TsuiLamYuen

Buyeragriculturalbank631.55

Aftercompletingthemortgageregistrationoftherealestatecertificateandhandingitovertothe

ChuanqiDonghuMingyuanBuyer

ChinaConstructionBank,Bankofcommunications,industrialandCommercialBankofChina,BankofChina,EverbrightBankand

1,787.98

Aftercompletingthemortgageregistrationoftherealestatecertificateandhandingitovertothebankforsafekeeping

TianYueWan

Buyer

IndustrialandCommercialBankofChina,HuaxiaBank,agriculturalandCommercialBankofChina,AgriculturalBankofChina,postalsavingsbank,ChinaMerchantsBankandBank

15,557.88

Aftercompletingthemortgageregistrationoftherealestatecertificateandhandingitovertothebankforsafekeeping

GuangmingLi

Subtotal18,167.69

12、Eventsafterbalancesheetdate

Profitdistributionafterbalancesheetdate

Basedonthetotalsharecapitalof1,011,660,000sharesasofDecember31,2025,thecompanyintendstodistributeacashdividendof0.35yuan(includingtax)per10sharestoallshareholders,totaling35,408,100.00yuan.

13、Otherimportantmatters

Segmentinformation

Thecompany'smainbusinessistocollectrentalfeesandmanagementfeesforthedevelopment,constructionandsaleofrealestateproductsandtherentalofproperties.Thecompanyregardsthisbusinessasawholetoimplementmanagementandevaluatebusinessresults.Therefore,thecompanydoesnotneedtodisclosesegmentinformation.Detailsofthecompany'srevenuebreakdownaresetoutinnote5(2)1tothefinancialstatements.

14、Notestomajoritemsinthefinancialstatementsoftheparentcompany

（1）Notestobalancesheetitemsofparentcompany

1.Accountsreceivable

(1)Aging

AgingClosingbalanceBeginningbalanceWithin1year8,724,709.9413,309,107.411-2years1,992,924.09Morethan5years4,450,138.624,450,138.62Totalbookbalance15,167,772.6517,759,246.03Less:baddebtprovision10,324,219.8910,559,107.12Totalbookvalue4,843,552.767,200,138.91

(2)Provisionforbaddebts

1)Categorybreakdown

Types

ClosingbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportio

n

money

Provisionratio

Singleprovisionforbaddebts

10,069,296.0666.3910,069,296.06100.00Provisionforbaddebtsbyportfolio

5,098,476.5933.61254,923.835.004,843,552.76Total15,167,772.65100.0010,324,219.8968.074,843,552.76

(Continued)

Types

BeginningbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportio

(%)n

money

Provisionratio

Singleprovisionforbaddebts

10,084,109.6056.7810,084,109.60100.00

Types

BeginningbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportio

n

money

Provisionratio

Provisionforbaddebtsbyportfolio

7,675,136.4343.22474,997.526.197,200,138.91Total17,759,246.03100.0010,559,107.1259.467,200,138.91

2)ImportantaccountsreceivablewithsingleprovisionforbaddebtsCompanyname

BeginningbalanceClosingbalanceBook

(%)balance

Baddebt

Book

Baddebt

Provision

Basisof

Longtermuncollectedhousesales

10,084,109.6010,084,109.6010,069,296.0610,069,296.06100.00

Notexpectedtobe

provisionrecovered

Subtotal

10,084,109.6010,084,109.6010,069,296.0610,069,296.06100.00

3)Accountsreceivablewithportfolioprovisionforbaddebts

Projects

ClosingbalanceBookbalance

Baddebt

recoveredprovision

Provisionratio

Portfolioofrealestatesales

5,098,476.59254,923.835.00Portfolioofrelatedpartieswithinthescopeofreceivables

receivablesconsolidation

Subtotal5,098,476.59254,923.835.00

(3)Changesinbaddebtreserves

Projects

Beginningbalance

Currentchangeamount

ClosingbalanceProvision

Withdrawal

consolidationor

Writ

otherSingleprovisionfor

10,084,109.60110,856.389,973,253.22Provisionforbaddebtsby

474,997.52124,030.85350,966.67Total10,559,107.12234,887.2310,324,219.89

(4)Top5accountsreceivableandcontractassets

Companyname

Bookbalanceattheendoftheperiod

Proportioninthetotalbalanceofaccountsreceivableandcontractassetsattheendof

portfoliothe

ProvisionforbaddebtsofaccountsreceivableandprovisionforimpairmentofcontractassetsAccountsreceivable

Contractassets

SubtotalShenzhenHuatangfamouswineCity

3,080,162.003,080,162.0020.31154,008.10

Companyname

Bookbalanceattheendoftheperiod

Proportionin

thetotalbalanceofaccountsreceivableandcontractassetsattheendof

the

ProvisionforbaddebtsofaccountsreceivableandprovisionforimpairmentofcontractassetsAccountsreceivable

Contractassets

SubtotalLtdDaxingautoparts

2,052,228.462,052,228.4613.532,052,228.46ShenzhenLuohu

1,240,986.001,240,986.008.1862,049.30ShenzhenXinfengRealEstateConsulting

1,212,232.731,212,232.737.991,212,232.73WangWeidong1,200,000.001,200,000.007.911,200,000.00

Subtotal8,785,609.198,785,609.1957.924,680,518.59

2.Otherreceivables

(1)Details

ProjectsClosingbalanceBeginningbalanceDividendsreceivable24,222,722.8829,222,722.88Otherreceivables1,856,205,185.251,722,328,667.65

Total1,880,427,908.131,751,551,390.53

(2)Dividendsreceivable

1)Details

ProjectsClosingbalanceBeginningbalanceShenzhenshenfanggroupLonggangDevelopment

24,222,722.8829,222,722.88

Subtotal24,222,722.8829,222,722.88

2)Importantdividendsreceivablewithanaccountageofmorethan1year

ProjectsClosingbalanceAging

Reasonsforuncollection

Whetherthereisimpairmentanditsjudgment

ShenzhenshenfanggroupLonggangDevelopment

basisCo.,

24,222,722.88

3-4years

Deferredpayment

no

Subtotal24,222,722.88

(3)Otherreceivables

1)Natureandclassificationofpayments

NatureofpaymentClosingbalanceBeginningbalance

NatureofpaymentClosingbalanceBeginningbalancePortfolioofreceivablesfromrelatedparties2,633,214,641.392,403,869,206.91Portfolioofreceivablesfromgovernment

departments

165,460.00165,460.00Employeereserveportfolioreceivable93,900.00

departmentsCollection

Otherreceivablesportfolio144,601,238.67142,474,366.82Subtotalbookbalance2,778,481,358.212,547,605,656.04Less:baddebtprovision922,276,172.96825,276,988.39Subtotalbookvalue1,856,205,185.251,722,328,667.65

2)Aging

AgingClosingbalanceBeginningbalance

258,963,768.91452,103,220.231-2years424,416,517.526,102,884.222-3years6,100,266.94642,158.283-4years243,411.53456,845,625.714-5years456,845,625.71104,875,297.41

1,631,911,767.601,527,036,470.19Subtotalbookbalance2,778,481,358.212,547,605,656.04Less:baddebtprovision922,276,172.96825,276,988.39Subtotalbookvalue1,856,205,185.251,722,328,667.65

3)Provisionforbaddebts

①Categorybreakdown

Types

ClosingbalanceBookbalanceBaddebtprovision

bookvaluemoney

Proportion(%)

money

ProvisionProportion(%)Singleprovisionforbaddebts

1,662,432,598.5959.83922,101,083.9755.47740,331,514.62Provisionforbaddebtsbyportfolio

1,116,048,759.6240.17175,088.990.021,115,873,670.63Subtotal2,778,481,358.21100.00922,276,172.9633.191,856,205,185.25

(Continued)Types

BeginningbalanceBookbalanceBaddebtprovisionbookvalue

money

Proportion(%)

money

Provisi

onProportion

(%)

Singleprovisionforbaddebts

825,174,418.5632.39825,174,418.56100.00Provisionforbaddebtsbyportfolio

1,722,431,237.4867.61102,569.830.011,722,328,667.65Subtotal2,547,605,656.04100.00825,276,988.3932.391,722,328,667.65

②Otherreceivableswithportfolioprovisionforbaddebts

Portfolioname

ClosingbalanceBookbalanceBaddebtprovisionProvisionratio(%)Portfolioofreceivables

(%)from

1,111,796,074.26Portfolioofreceivablesfromgovernment

165,460.00Collectionandpayment

departmentsportfolio

500,018.1525,000.915.00Otherreceivablesportfolio3,587,207.21

4.18

Subtotal1,116,048,759.62

175,088.99

0.02

4)Changesinbaddebtreserves

Projects

Stage1.Stage2.Stage3.

SubtotalNext12monthsExpectedcreditloss

Expectedcreditlossforthewholeduration(nocreditimpairment)

Expectedcreditlossforthewholeduration(creditimpairmenthas

150,088.08occurred)

Beginningbalance102,289.83825,174,698.56825,276,988.39Beginningbalance

occurred)in

——————--Movetophase2--Movetophase3--Backtophase2--Backtophase1Currentprovision19,877.9352,921.2372,799.16Recoveredorreversedinthe

CurrentwriteoffOtherchanges96,926,385.4196,926,385.41

5)Top5otherreceivables

Companyname

Nature

ofpayment

Bookbalanceattheendoftheperiod

Aging

Proportioninbalanceofotherreceivables

(%)

Baddebtprovisionattheendoftheperiod

Jianbang

Currentaccountofsubsidiary

843,296,961.67

Within1year,1-2years,2-3yearsandmorethan5

(%)years

thirtypointthreefive

102965447.05ShantouHuafengRealEstateDevelopment

yearsCo.,

Currentaccountofsubsidi

734,160,642.87

1-2years,morethan5years

30.35102,965,447.05

XinfengEnterpriseCo.,Ltd

Currentaccountofsubsidi

aryary

535,292,823.86

1-2years,morethan5years

26.42

ShenzhenshenfangChuanqiRealEstateDevelopment

aryCo.,

Currentaccountofsubsidiary

262,695,711.25

Within1year,1-2yearsandmorethan5

19.26535,292,823.86

Greatwallproperties

Currentaccountofsubsidi

yearsary

104,182,848.13

Morethan5years

9.45

Subtotal2,479,628,987.783.75104,182,848.13

3.Long-termequityinvestments

(1)Details

Projects

ClosingbalanceBeginningbalanceBookbalance

Provisionfor

aryimpairment

bookvalueBookbalance

Provisionfor

bookvalueInvestmentsinsubsidiaries

1,265,520,833.00133,339,271.151,132,181,561.851,715,520,833.00554,754,168.861,160,766,664.14

Closingbalance122,167.7652,921.23922,101,083.97922,276,172.96Provisionratioforbaddebtreservesattheendoftheperiod(%)

0.050.4155.4732.48

Investmentinassociatesandjointventures

11,977,845.5811,977,845.5811,977,845.5811,977,845.58

Total1,277,498,678.58145,317,116.731,132,181,561.851,727,498,678.58566,732,014.441,160,766,664.14

(2)Investmentsinsubsidiaries

Investee

BeginningbalanceIncreaseanddecreaseinthecurrentperiodClosingbalanceBookvalue

value

Impairment

ready

AddInvestmentreduceInvest

ment

Provisionforimpairment

other

Bookvaluevalue

ImpairmentreadyShenzhenHaiyanHotelCo.,Ltd

20,605,047.5020,605,047.50ShenzhenShenfangInvestment

mentCo.,

9,000,000.009,000,000.00XinfengEnterpriseCo.,Ltd

556,500.00556,500.00XinfengRealEstateCo.,Ltd

22,717,697.7322,717,697.73ShenzhenZhentongEngineering

11,332,321.4511,332,321.45Greatwallproperties

1,435,802.001,435,802.00Shenzhenshenfangbondedtrade

4,750,000.004,750,000.00ShenzhenhuazhanConstructionSupervision

6,000,000.006,000,000.00ShenzhenLianhuaEnterpriseCo.,

13,458,217.0513,458,217.05ShenzhenshenfanggroupLonggangDevelopmentCo.,Ltd

30,850,000.0030,850,000.00BeijingXinfengrealestatedevelopmentandOperation

LtdCo.,

64,183,888.9064,183,888.90ShantouHuafengRealEstateDevelopment

16,467,021.0216,467,021.02BailiCo.,Ltd201,100.00201,100.00BurktonAustralia

906,630.00906,630.00

Investee

BeginningbalanceIncreaseanddecreaseinthecurrentperiodClosingbalanceBookvalue

value

Impairment

ready

AddInvestmentreduceInvest

ment

Provisionforimpairment

other

Bookvaluevalue

ImpairmentreadyShenzhenshenfangDepartment

mentStore

9,500,000.009,500,000.00ShantouXinfengtower

58,547,652.2558,547,652.25Jianbang28,585,102.29421,414,897.7128,585,102.29450,000,000.00ShenzhenshenfangChuanqiRealEstateDevelopment

995,000,000.00995,000,000.00HualinCo.,Ltd8,955.108,955.10Subtotal1,160,766,664.14554,754,168.8628,585,102.29450,000,000.001,132,181,561.85133,339,271.15

(3)Investmentinassociatesandjointventures

Investee

BeginningbalanceIncreaseanddecreaseinthecurrentperiodbookvalue

Provisionforimpairment

Additionalinvestments

Reduceinvestment

Investmentgainsandlossesrecognizedundertheequity

OthercomprehensiveEarningsadjustmentJointventureFengkaiXinghua

methodHotel

9,455,465.38Subtotal9,455,465.38AssociatesShenzhenronghuaElectromechanicalEngineering

HotelCo.,

1,076,954.64ShenzhenRunhuaAutoTrading

1,445,425.56Subtotal2,522,380.20Total11,977,845.58(Continued)InvesteeIncreaseanddecreaseinthecurrentperiodClosingbalance

Otherequitychanges

Declarationofcashdividendsor

profits

Provisionforimpairment

other

bookvalue

ProvisionforimpairmentJointventureFengkaiXinghua

profitsHotel

9,455,465.38Subtotal9,455,465.38AssociatesShenzhenronghuaElectromechanicalEngineeringCo.,

HotelLtd

1,076,954.64ShenzhenRunhuaAutoTrading

LtdCompany

1,445,425.56Subtotal2,522,380.20Total11,977,845.58

(4)Impairmenttestoflong-termequityinvestment

1)Therecoverableamountisdeterminedatthenetamountoffairvalueminusdisposalexpenses

ProjectsbookvalueRecoverableamount

Provisionforimpairmentinthe

Companycurrent

Jianbang28,585,102.2928,585,102.29Subtotal28,585,102.2928,585,102.29

(Continued)Projects

Determinationoffairvalueand

Keyparametersandtheir

Jianbang

Thefairvalueisdeterminedbytheassetbasedmethod,andtherelevantdisposalexpensesaredeterminedby

Estimatedsellingprice,salesvolume,productioncostandotherrelatedexpensesofthe

Subtotal

2)Otherinstructions

Attheendofthereportingperiod,thecompanymadeanprovisionimpairmenttestonitsinvestmenttoJianbangcompanyaccordingtoitsnetrecoverableamount,asJianbangcompanywasintobankruptcyinNovemberof2025.

（2）Notestoitemsintheprofitstatementoftheparentcompany

1.Operatingincome/operatingcost

(1)Details

Projects

CurrentperiodSameperiodlastyearincomecostincomecost

Projects

CurrentperiodSameperiodlastyearincomecostincomecostMainbusiness55,192,364.3832,158,574.3766,692,989.0835,527,944.94Otherbusiness226,373.11225,325.4755,199.50Total55,418,737.4932,383,899.8466,748,188.5835,527,944.94Amongthem:revenuefromcontractswithcustomers

5,371,428.57161,228.708,980,139.711,396,009.16

(2)Revenuebreakdown

1)RevenuefromcontractswithcustomersisbrokendownbytypeofgoodsorservicesProjects

CurrentperiodSameperiodlastyearincomecostincomecostrealestate5,371,428.57161,228.708,980,139.711,396,009.16

Subtotal5,371,428.57161,228.708,980,139.711,396,009.16

2)RevenuefromcontractswithcustomersisbrokendownbyregionofoperationProjects

CurrentperiodSameperiodlastyearincomecostincomecostGuangdongProvince5,371,428.57161,228.708,980,139.711,396,009.16

Subtotal5,371,428.57161,228.708,980,139.711,396,009.16

3)Revenuefromcontractswithcustomersisbrokendownbythetimegoodsorservicesaretransferred

ProjectsCurrentperiod

Sameperiodlast

year

Revenuerecognizedatacertainpoint5,371,428.578,980,139.71Subtotal5,371,428.578,980,139.71

(3)Informationonperformanceobligations

Projects

Timeforperformance

Importantpaymentterms

Thenatureofthegoodsthecompanyundertakestotransfer

Isitthemainresponsibleperson

Paymentsassumedbythecompanythatareexpectedtoberefundedto

yearcustomers

Typesofqualityassuranceprovidedbythecompanyandrelated

Sellinggoods

Whengoodsaredelivered

Afterthecontractissigned,thecontractpriceshallbecollectedin

Commercialhousing

yesnothing

Qualityassurance

Provisionofservices

Whenservicesareprovided

Whenthegeneralserviceiscompleted,itshallbechargedaccordingto

Leasingservices

yesnothingnothing

Projects

Timeforperformance

Importantpaymentterms

Thenatureofthegoodsthecompanyundertakesto

transfer

Isitthemainresponsibleperson

Paymentsassumedbythecompanythatareexpectedtobe

refundedto

customers

Typesofqualityassuranceprovidedbythecompanyandrelated

thecontract

(4)Therevenuerecognizedinthecurrentperiodincludedinthebookvalueofcontractliabilitiesatthebeginningoftheperiodis6857.14yuan.

2.Investmentincome

ProjectsCurrentperiod

Sameperiodlast

Investmentincomefromdisposaloflong-term

yearequity

136,518.90568,863.59Dividendincomefrominvestmentinotherequity

778,495.00777,600.00Total915,013.901,346,463.59

15、Othersupplementaryinformation

（1）Nonrecurringgainsandlosses

1.Detailedstatementofnonrecurringgainsandlosses

ProjectsmoneyexplainGainsandlossesondisposalofnoncurrentassets,includingthewriteoffpartoftheprovisionforassetimpairment

-151,762,085.94Governmentsubsidiesincludedinthecurrentprofitandloss,exceptforgovernmentsubsidiescloselyrelatedtothenormalbusinessofthecompany,inlinewithnationalpoliciesandregulations,enjoyedinaccordancewithdeterminedstandards,andhavingasustainedimpactonthecompany's

Inadditiontotheeffectivehedgingbusinessrelatedtothenormalbusinessofthecompany,thegainsandlossesfromchangesinfairvaluearisingfromtheholdingoffinancialassetsandfinancialliabilitiesbynon-financialenterprisesandthegainsandlossesarisingfromthedisposaloffinancial

16,621,332.22Capitaloccupancyfeeschargedtonon-financialenterprisesincludedincurrentprofitsandlossesGainsandlossesfromentrustingotherstoinvestormanageassetsGainsandlossesfromentrustedloansLossofassetsduetoforcemajeure,suchasnaturaldisastersReversalofprovisionforimpairmentofreceivablessubjecttoseparateimpairmenttestTheinvestmentcostofsubsidiaries,associatesandjointventuresobtainedbytheenterpriseislessthantheincomefromthefairvalueoftheidentifiablenetassetsofthe

Currentnetprofitandlossofsubsidiariesarisingfrombusinesscombinationunderthesamecontrolfromthebeginningoftheperiodtothemergerdate

GainsandlossesonnonmonetaryassetexchangeGainsandlossesondebtrestructuringOne-timeexpensesincurredbytheenterprisebecausetherelevantbusinessactivitiesarenolongersustainable,suchasexpensesforresettlingemployees,etcOne-timeimpactoncurrentprofitandlossduetotheadjustmentoftax,accountingandotherlawsandregulationsSharebasedpaymentexpensesconfirmedatonetimeduetocancellationandmodificationofequityincentiveplanForcashsettledsharebasedpayments,gainsandlossesarisingfromchangesinthefairvalueofemployeesalaries

payable

Gainsandlossesarisingfromchangesinthefairvalueofinvestmentrealestatemeasuredsubsequentlyusingthefair

GainsfromtransactionswithsignificantlyunfairtransactionpricesGainsandlossesarisingfromcontingenciesunrelatedtothenormalbusinessoperationofthecompanyCustodyfeeincomefromentrustedoperationOthernonoperatingincomeandexpensesotherthantheaboveitems

940,511.89Otherprofitandlossitemsthatmeetthedefinitionofnonrecurringprofitandloss

Subtotal-134,200,241.83Less:impactofenterpriseincometax(thedecreaseofincometaxisexpressedby"-")

210,384.02Impactonminorityshareholders'equity(aftertax)-13,705.11

Netnonrecurringgainsandlossesattributabletoownersoftheparentcompany

-134,396,920.74

2.Accordingtothedefinitionsandprinciples,thenonrecurringgainsandlosseslistedintheexplanatoryannouncementoninformationdisclosureofcompaniesofferingsecuritiestothepublicNo.1-nonrecurringgainsandlosses(revisedin2023)aredefinedasrecurringgainsandlossesProjectsmoneyreasonRefundofhandlingfeeforwithholdingindividualincometax

31,652.46

Continuousoccurrenceineachyear,notaccidental,isrecognizedasrecurringgainsandlosses

（2）Returnonequityandearningspershare

1.Details

Profitduringthereportingperiod

Weightedaveragenet

assetsYield(%)

Earningspershare(yuan/share)Basicearningsper

Dilutedearningsper

Netprofitattributabletoordinaryshareholdersofthecompany

2.810.09880.0988Netprofitattributabletoordinaryshareholdersofthecompanyafterdeductingnonrecurringgainsandlosses

6.580.23170.2317

2.Calculationprocessofweightedaveragereturnonnetassets

ProjectsSerialnumberCurrentperiod

ProjectsSerialnumberCurrentperiodNetprofitattributabletoordinaryshareholdersofthecompanyA99,956,003.75NonrecurringgainsandlossesB-134,396,920.74Netprofitattributabletoordinaryshareholdersofthecompanyafterdeductingnonrecurringgainsandlosses

C=A-B234,352,924.49Netassetsatthebeginningoftheperiodattributabletoordinaryshareholdersofthecompany

D3,512,112,493.42Newnetassetsattributabletoordinaryshareholdersofthecompanysuchasissuanceofnewsharesordebttoequityswap

ECumulativemonthsfromthenextmonthofnewnetassetstotheendofthereportingperiod

FNetassetsattributabletoordinaryshareholdersofthecompanyreducedbyrepurchaseorcashdividend

GCumulativemonthsfromthenextmonthofnetassetsreductiontotheendofthereportingperiod

Hother

otherI254,699.21Cumulativemonthsfromthenextmonthofincreaseordecreaseinnetassetstotheendofthe

reporting

J6MonthsduringthereportingperiodK12Weightedaveragenetassets

L=D+A/2+exf/K-GxH/K+IxJ/K

3,562,217,844.90WeightedaveragereturnonequityM=A/L2.81%Weightedaveragereturnonnetassetsafterdeductingnonrecurringgainsandlosses

N=C/L6.58%

3.Calculationprocessofbasicearningspershareanddilutedearningspershare

(1)Calculationprocessofbasicearningspershare

ProjectsSerialnumberCurrentperiodNetprofitattributabletoordinaryshareholdersofthecompany

A99,956,003.75NonrecurringgainsandlossesB-134,396,920.74Netprofitattributabletoordinaryshareholdersofthecompanyafterdeductingnonrecurringgainsandlosses

C=A-B234,352,924.49TotalnumberofsharesatthebeginningoftheperiodD1,011,660,000.00Increaseinthenumberofsharesduetotheconversionofprovidentfundintosharecapitalorstockdividend

EIssuanceofnewsharesordebttoequityswaptoincreasethenumberofshares

FCumulativemonthsfromthenextmonthaftertheincreaseofsharestotheendofthereportingperiod

GDecreaseinthenumberofsharesduetorepurchaseHCumulativemonthsfromthenextmonthafterthereductionofsharestotheendofthereportingperiod

INumberofsharewithdrawalsduringthereportingperiodJMonthsduringthereportingperiodK12

ProjectsSerialnumberCurrentperiodWeightedaveragenumberofordinarysharesoutstanding

L=D+e+FXG/K-Hx

I/K-J

1,011,660,000.00BasicearningspershareM=A/L0.0988Basicearningspershareafterdeductingnonrecurringgainsandlosses

N=C/L0.2317

(2)Calculationprocessofdilutedearningspershare

Thecalculationprocessofdilutedearningspershareisthesameasthatofbasicearningspershare.

ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd

March18,2026