[年报]深深房B:2021年年度报告(英文版)

时间:2022年03月17日 18:07:28 中财网

原标题:深深房B:2021年年度报告(英文版)










SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE &
PROPERTIES (GROUP) CO., LTD.

ANNUAL REPORT 2021

2022-006

March 2022


Part I Important Notes, Table of Contents and Definitions

The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Special Economic Zone Real Estate &
Properties (Group) Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the
factuality, accuracy and completeness of the contents of this Report and its summary, and
shall be jointly and severally liable for any misrepresentations, misleading statements or
material omissions therein.

Liu Zhengyu, chairman of the Company’s Board, Wang Jianfei, the Company’s Chief
Financial Officer, and Qiao Yanjun, head of the Company’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual, accurate and complete.

All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.

Certain descriptions about the Company’s operating plans or work arrangements for the
future mentioned in this Report and its summary, the implementation of which is subject to
various factors, shall NOT be considered as promises to investors. Therefore, investors are
reminded to exercise caution when making investment decisions.

The Company is subject to the information disclosure requirements for the real estate
industry in the Disciplinary and Regulatory Guideline No. 3 of the Shenzhen Stock Exchange
for Listed Companies—Industry-specific Information Disclosure.

Risks facing the Company have been explained in detail in “XI Prospects” in “Part III
Management Discussion and Analysis” herein.

The Board has approved a final dividend plan as follows: based on the total share capital of
1,011,660,000 shares, a cash dividend of RMB0.88 (tax inclusive) per 10 shares is to be
distributed to the shareholders, with no bonus issue from either profit or capital reserves.

This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.




Table of Contents

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

Part II Corporate Information and Key Financial Information ................................................... 6

Part III Management Discussion and Analysis ............................................................................. 11

Part IV Corporate Governance ...................................................................................................... 41

Part V Environmental and Social Responsibility .......................................................................... 66

Part VI Significant Events ............................................................................................................... 68

Part VII Share Changes and Shareholder Information ............................................................... 77

Part VIII Preferred Shares .............................................................................................................. 84

Part IX Bonds .................................................................................................................................. 85

Part X Financial Statements ........................................................................................................... 86






Documents Available for Reference

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

2. The original of the Auditor’s Report with the stamp of the CPA firm, as well as the personal
signatures and stamps of the CPAs; and

3. The originals of all the documents and announcements disclosed by the Company on Securities
Times, China Securities Journal and Ta Kung Pao during the Reporting Period.


Definitions

Term

Definition

“Shenzhen SASAC” or the “Municipal SASAC”

The State-owned Assets Supervision and Administration Commission of the
People’s Government of Shenzhen Municipal

SIHC

Shenzhen Investment Holdings Co., Ltd.

The “Company”, the “Group”, “SPG” or “we”

ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
and its consolidated subsidiaries, except where the context otherwise requires

Shenzhen Property Management

Shenzhen Property Management Co., Ltd.

Petrel Hotel

Shenzhen Petrel Hotel Co., Ltd.

Zhentong Engineering

Shenzhen Zhentong Engineering Co., Ltd.

Huazhan Construction Supervision

Shenzhen Huazhan Construction Supervision Co., Ltd.

Jianbang Group

Guangdong Jianbang Group (Huiyang) Industrial Co., Ltd.

Chuanqi Real Estate Development

Shenzhen SPG Chuanqi Real Estate Development Co., Ltd.




Part II Corporate Information and Key Financial Information

I Corporate Information

Stock name

SPG, SPG-B

Stock code

000029, 200029

Stock exchange for stock
listing

Shenzhen Stock Exchange

Company name in Chinese

深圳经济特区房地产(集团)股份有限公司

Abbr.

深房集团

Company name in English (if
any)

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

Abbr. (if any)

SPG

Legal representative

Liu Zhengyu

Registered address

45/F-48/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, P.R.China

Zip code

518001

Changes of the registered
address

N/A

Office address

47/F, SPG Plaza, Renmin South Road, Luohu District, Shenzhen, Guangdong, P.R.China

Zip code

518001

Company website

http://www.sfjt.com.cn

Email address

[email protected]



II Contact Information



Board Secretary

Securities Representative

Name

Luo Yi

Hong Lu

Address

47/F, SPG Plaza, Renmin South Road,
Luohu District, Shenzhen, Guangdong,
P.R.China

47/F, SPG Plaza, Renmin South Road,
Luohu District, Shenzhen, Guangdong,
P.R.China

Tel.

(86 755)25108897

(86 755)25108837

Fax

(86 755)82294024

(86 755)82294024

Email address

[email protected]

[email protected]



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

Stock exchange website where this Report is disclosed

Shenzhen Stock Exchange (http://www.szse.cn/)




Newspaper and website where this Report is disclosed

Domestic: Securities Times, China Securities Journal, and
http://www.cninfo.com.cn

Overseas: Ta Kung Pao (HK)

Place where this Report is lodged

47/F, SPG Plaza, 3005 Renmin South Road, Luohu District, Shenzhen,
Guangdong, P.R.China



IV Change to Company Registered Information

Unified social credit code

91440300192179585N (unified social credit code)

Change to principal activity of the
Company since going public (if any)

No change

Every change of controlling shareholder
since incorporation (if any)

On 24 March 1999, the controlling shareholder was changed from Shenzhen
Investment Management Co., Ltd. to Shenzhen Construction Investment Holdings Co.,
Ltd. And on 14 February 2006, it was changed to Shenzhen Investment Holdings Co.,
Ltd.



V Other Information

The independent audit firm hired by the Company:

Name

Grant Thornton China

Office address

5/F, Sci-Tech Plaza, 22 Jianguomenwai Avenue, Chaoyang District, Beijing

Accountants writing signatures

Zhao Juanjuan and Jiang Xiaoming



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

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

VI Key Financial Information

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

□ Yes √ No



2021

2020

2021-over-2020
change (%)

2019

Operating revenue (RMB)

1,320,790,648.45

1,615,009,713.88

-18.22%

2,548,740,319.49

Net profit attributable to the listed
company’s shareholders (RMB)

220,836,309.93

290,229,772.23

-23.91%

552,452,307.59

Net profit attributable to the listed
company’s shareholders before
exceptional gains and losses (RMB)

208,306,710.37

253,595,334.11

-17.86%

524,204,812.66

Net cash generated from/used in

-1,205,952,107.94

285,164,013.17

-522.90%

603,607,724.75




operating activities (RMB)

Basic earnings per share (RMB/share)

0.2183

0.2869

-23.91%

0.5461

Diluted earnings per share
(RMB/share)

0.2183

0.2869

-23.91%

0.5461

Weighted average return on equity
(%)

5.72%

7.81%

-2.09%

15.90%



31 December 2021

31 December 2020

Change of 31
December 2021 over
31 December 2020
(%)

31 December 2019

Total assets (RMB)

6,182,498,050.43

4,936,916,746.74

25.23%

4,909,669,536.09

Equity attributable to the listed
company’s shareholders (RMB)

3,938,260,291.97

3,797,512,488.22

3.71%

3,666,874,569.99



Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was
uncertainty about the Company’s ability to continue as a going concern.

□ Yes √ No

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

□ Yes √ No

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

1. Net Profit and Equity under CAS and IFRS

√ Applicable □ Not applicable

Unit: RMB



Net profit attributable to the listed company’s
shareholders

Equity attributable to the listed company’s
shareholders

2021

2020

Ending amount

Beginning amount

Under CAS

220,836,309.93

290,229,772.23

3,938,260,291.97

3,797,512,488.22

Adjusted as per IFRS

Under IFRS

220,836,309.93

290,229,772.23

3,938,260,291.97

3,797,512,488.22




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

□ Applicable √ Not applicable

No difference for the Reporting Period.

3. Reasons for Accounting Data Differences Above

□ Applicable √ Not applicable

VIII Key Financial Information by Quarter

Unit: RMB



Q1

Q2

Q3

Q4

Operating revenue

415,282,352.53

279,315,865.94

272,065,605.11

354,126,824.87

Net profit attributable to the listed
company’s shareholders

88,040,167.60

44,406,954.54

29,640,906.70

58,748,281.09

Net profit attributable to the listed
company’s shareholders before
exceptional gains and losses

87,395,877.39

44,042,111.19

29,576,289.10

47,292,432.69

Net cash generated from/used in
operating activities

303,456,191.73

-588,996,943.19

-978,555,623.09

58,144,266.61



Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.

□ Yes √ No

IX Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item

2021

2020

2019

Note

Gain or loss on disposal of non-current
assets (inclusive of impairment allowance
write-offs)

-13,451.61

11,429.23





Government subsidies charged to current
profit or loss (exclusive of government
subsidies consistently given in the
Company’s ordinary course of business at
fixed quotas or amounts as per government
policies or standards)

1,669,479.40

3,370,769.21

1,168,127.90



Gain or loss on assets entrusted to other

13,024,710.91

15,217,058.60

31,425,651.98

Purchase of currency




entities for investment or management

fund

Reversed portions of impairment allowances
for receivables which are tested individually
for impairment

482,790.04







Non-operating income and expense other
than the above

1,542,604.01

29,009,657.60

1,118,861.69



Other gains and losses that meet the
definition of exceptional gain/loss



1,237,002.86





Interest income from undue structured
deposits





3,950,685.00



Less: Income tax effects

4,176,533.19

12,211,479.38

9,415,831.64



Total

12,529,599.56

36,634,438.12

28,247,494.93

--



Details of other gains and losses that meet the definition of exceptional gain/loss:

□ Applicable √ Not applicable

No such cases for the Reporting Period.

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

No such cases for the Reporting Period.


Part III Management Discussion and Analysis

I Industry Overview for the Reporting Period

The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.

In order to achieve the central government's target of stabilizing land and housing prices as well as market
expectations, real estate regulators have successfully implemented a series of policies, including "three red lines",
real estate loan concentration management mechanism in 2020 and "concentrated supply of land" in 2021. These
policies resulted in a significant difference between different districts in the same city and an overall stable and
slow trend in nationwide real estate market.

II Principal Activity of the Company in the Reporting Period

The Company is subject to the information disclosure requirements for the real estate industry in the Disciplinary and Regulatory
Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.

The Company primarily develops residential properties, with its available-for-sale projects mainly located in
Shenzhen and Shantou during the Reporting Period. Meanwhile, two new projects have been launched, one in
Huizhou, which is close to Shenzhen, and another in Guangming District, Shenzhen. In Shenzhen, the Chuanqi
Donghu Mingyuan project and the Cuilinyuan project both completed construction and have started the hand-over
and move-in process, with some remnant units still available for sale. In Shantou, the Tianyuewan project
completed construction in June 2021, with Phase I around 80% sold cumulatively and Phase II around 20%. In
mid May 2021, the Company completed the acquisition of a controlling stake in the Linxinyuan project (located in
Huizhou, close to Shenzhen), which resumed construction in late June 2021 and has kicked off pre-sale for Phase
I in mid December 2021. Additionally, the Company won the bid for the right to use the state-owned Land Lot No.
A511-0039 in Guangming District, Shenzhen in late September 2021, with construction kicking off in mid
January 2022.



New additions to the land bank:

Name of land
lot or project

Location

Planned use
of land

Site area(㎡)

Floor area
with plot
ratio (㎡)

How the land
is obtained

The
Company’s
interest

Total land
price
(RMB’0,000)

Consideration of the
Company’s
interest
(RMB’0,000)

Linxinyuan
(previously
the
“Linxijun”
project)

Changbu
Village,
Xinxu Town,
Huiyang
District,
Huizhou
City,

Commercial
and
residential

198,676.60

397,353.20

Acquisition

51.00%

60,667

45,000




Guangdong
Province

SPG
Guangmingli

Southeast
corner of the
junction of
Mingzheng
Road and
Deya Road,
Guangming
Street,
Guangming
District,
Shenzhen

Commercial
and
residential,
type 2

10,721.07

53,605.00

Bidding at an
auction

100.00%

96,500





Cumulative land bank:

Name of project/area

Site area(0,000 ㎡)

Floor area(0,000 ㎡)

Floor area available for
development(0,000 ㎡)

Xinfeng Building in Shantou

0.59

2.66

2.66

Linxinyuan Phase II

2.57

7.72

7.72

Linxinyuan Phase III

4.31

9.57

9.57

Linxinyuan Phase IV

3.23

6.45

6.45

SPG Guangmingli

1.07

5.36

5.36

Total

11.77

31.76

31.76



Development status of major projects:

City/region

Name of
project

Location

Status

The
Company’s
interest

Time
for
commencement
of
construction

%
developed

%
constructed

Site area(㎡)

Planned
floor
area
with
plot
ratio
(㎡)

Floor
area
completed in the
Current
Period(㎡)

Cumulatively
completed floor
area
(㎡)

Expected total
investment
(RMB’0,000)

Cumulative
investment
(RMB’0,000)

Shantou

Tianyuewan
Phase II

Chaoyang
District

Completed

100.00%

1
October
2018

100%

100.00%

33,362

127,770

127,770

127,770

65,485

64,597

Huizhou

Linxinyuan
Phase I

Huiyang

Framework in
construction

51.00%

11 June
2021

77%

77.00%

64,278

159,761

0

0

115,750

89,044

Shenzhen

SPG
Guangmingli

Guangming
District

Foundation pit
being

100.00%

19
January
2022

-



10,721

53,605

-

-

151,758

99,395




built



Sales status of major projects:

City/region

Name of
project

Location

Status

The
Company’s
interest

Floor
area with
plot ratio
(㎡)

Floor
area
available
for sale
(㎡)

Cumulatively
pre-sold/
sold
floor
area
(㎡)

Floor
area
pre-sold/
sold in
the
Current
Period(㎡)

Pre-sale/
sales
revenue
generate
in the
Current
Period
(RMB’0,000)

Cumulatively
settled
floor
area (㎡)

Floor
area
settled in
the
Current
Period(㎡)

Pre-sale/
sales
revenue
settled in
the
Current
Period
(RMB’0,000)

Shenzhen

Chuanqi
Donghu
Mingyuan

Luohu
District

Ready
for sale

100.00%

55,727

32,857

32,440

7,160

48,361

30,012

14,169

70,662

Shenzhen

Cuilinyuan

Longgang District

Ready
for sale

100.00%

60,111

56,137

51,969

35

161

51,969

338

1,148

Shantou

Tianyuewan
Phase I

Chaoyang District

Ready
for sale

100.00%

153,470

160,372

114,462

14,951

7,967

92,524

15,531

8,008

Shantou

Tianyuewan
Phase II

Chaoyang District

On
pre-sale

100.00%

127,770

137,059

17,004

15,829

9,174

11,517

11,517

6,159

Huizhou

Linxinyuan Phase
I

Huiyang
District

On
pre-sale

51.00%

159,761

159,761

844

844

1,018









Rental status of major projects:

Name of project

Location

Use

The Company’s
interest

Rentable area
(㎡)

Cumulative
rented area (㎡)

Average
occupancy rate

Real Estate
Mansion

Shenzhen

Commercial

100.00%

3,413.88

3,413.88

100.00%

North Block of
Guoshang
Mansion

Shenzhen

Commercial

100.00%

4,819.71

4752.98

98.62%

Petrel Building

Shenzhen

Commercial

100.00%

22,475.47

22,475.47

100.00%

SPG Plaza

Shenzhen

Office building

100.00%

61015.82

36667.96

60.09%

SPG Plaza
Podium

Shenzhen

Commercial

100.00%

19886.3

16123.49

81.08%

Wenjin Garden

Shenzhen

Commercial

100.00%

3,531.60

3,531.60

100.00%



Primary land development:


□ Applicable √ Not applicable

Financing channels:

Financing channel

Ending balance of
financings

Financing cost
range/average
financing cost

Maturity structure

Within 1 year

1-2 years

2-3 years

Over 3 years



Development strategy and operating plan for the coming year:

Please refer to “XI Prospects” in this part of the Report.

Provision of guarantees for homebuyers on bank mortgages:

√ Applicable □ Not applicable

Project

Guarantee period

Guarantee amount (RMB’0,000)

Note

Cuilinyuan

Until the property ownership certificate is
registered as collateral and handed over to bank for
keeping

2,802.31



Chuanqi Donghu
Mingyuan

Until the property ownership certificate is
registered as collateral and handed over to bank for
keeping

2,924.43



Tianyuewan

Until the property ownership certificate is
registered as collateral and handed over to bank for
keeping

33,511.08



Total



39,237.82







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

√ Applicable □ Not applicable

Project

Type of
investor

Investment
amount (RMB)

As % of total
investment

As % of the
peak of project
funds

Cumulative
returns

Disinvestment

Compatibility of
actual investment
and returns

Linxinyuan
(previously the
“Linxijun”
project)

Director,
supervisor or
senior
management of
the Company

8,950,000.00

39.25%

0.90%

0.00

N/A

N/A



III Core Competitiveness Analysis

As a pioneer of real estate development enterprises in Shenzhen, the Company has created a number of "first
places" in the history of real estate development in China. For example, the first to use the paid state-owned land,
the first to introduce the foreign investment for the cooperative land development, the first to raise development
funds by means of pre-sale of buildings, the first to carry out public bidding for construction projects in


accordance with international practices, the first to set up a property management company to the buildings and
residences developed in an all-rounded manner, the first to win the bid in the auction of land use rights held in the
Shenzhen Special Economic Zone, etc.

Over the past 40 years, the company has developed more than 100 high-rise buildings, 500 multi-storey residential
buildings, and 400 garden villas, with a cumulative building area of more than 4 million square meters. It has paid
great efforts to the establishment of a modern enterprise HR management system and works hard in building a
professional and high-quality development team. It also keeps improving the management mechanism and
processes for project development. As a result, its planning, construction, cost control, sales ability and brand
image have been effectively improved. More importantly, its main business operation ability and core
competitiveness have been greatly enhanced.

In 2021, the Company were granted the titles of “Socially Responsible Company” and “Honest Company” in
the real estate world of Shenzhen.

IV Core Business Analysis

1. Overview

In 2021, in the face of many challenges such as the ever-changing environment, the pandemic, the economic
downturn and the intensifying market competition, the Company’s management team conscientiously
implemented the decisions and deployment of the controlling shareholder, the CPC Committee of the Group and
the Board of Directors, led the working staff to unite as one, stay determined and focus on operation and
management, and completed all tasks in an all-round way, achieving a good start for the “14th Five-Year Plan”.
The development of the Company became more stable, more high-quality and more resilient. The main
achievements in the past year are as follows:

(I) Impressive results in major corporate events by seizing opportunities and preventing risks

1. New breakthroughs in project expansion

The Company actively promoted the expansion of main business projects. In mid-May, it successfully completed
the acquisition of Linxinyuan Project in Huizhou. On 28 September, it participated in the second-round auction of
Shenzhen’s “concentrated supply of land” for 2021 and successfully won the bid for No. A511-0039 land in
Guangming District, Shenzhen at the reserved price. Throughout the year, the new capacity development area
totaled 450,000 square meters, injecting new momentum for the Company’s sustainable development.

2. New progress in project construction

First, the Company completed the completion acceptance for Longgang Project and Shantou Tianyuewan Phase II
Project in April and June, respectively. Second, in Huizhou, the Company recovered the construction for
Linxinyuan Project at the end of June and the project was opened for sale in early December. Third, the land of
SPG Guangmingli Project was acquired at the end of September and the construction started smoothly in
mid-January 2022.

3. New achievements in real estate sales


In 2021, 307 units of the Company’s main business projects were sold in initial subscription, with a sales area of
38,729 square meters and a sales amount of RMB676 million, including 69 units in Shenzhen (with a sales area of
7,923 square meters and a sales amount of RMB504 million) and 238 units in Shantou (with a sales area of 30,806
square meters and a sales amount of RMB172 million).

4. New actions in quality and efficiency improvement

First, the Company successfully completed the tourism transformation of Petrel Hotel. Second, the Company
completed the signing of the equity transfer agreement for Shenzhen Property Management. Third, the Company
introduced high-end pharmaceutical, medical and medical aesthetic companies such as Shenzhen Luohu Hospital
Group, and actively made a plan for creating an SPG Plaza-centric “comprehensive health eco-economic industry
complex”. Fourth, the equity transfer of Yunnan Kunpeng Air Service Co., LTD. was listed on The Stock
Exchange of Hong Kong Limited. Fifth, steady progress was made in clearing out zombie companies and
disposing of and reducing losses.

5. New explorations for future development

First, the Company actively conducted research on its future development and formulated the Quality
Improvement Action Plan to provide action guidelines for the Company’s future development. Second, the
Company made studies and demonstrations of new industry markets, and actively sought target projects with
strategic synergies in the industry. Third, the Company enhanced communication with capital platforms in the
SASAC system to solicit support in aspects such as strategic consulting and project expansion, and explore
industry fund cooperation.

6. New guarantees for safety and stability

First, the Company thoroughly implemented safe production accountability, established sound policies of safety
management, and intensified efforts on checking and rectifying potential safety hazards, thereby maintaining
stable production safety throughout the year. Second, the Company adhered to regular pandemic prevention and
control with targeted measures, fulfilled all work requirements of the CPC Shenzhen Municipal Committee, the
Shenzhen Municipal People’s Government, the Municipal SASAC and the controlling shareholder, and saw
responsibilities were fulfilled by all the stakeholders. As a result, a steady situation of pandemic prevention and
control was guaranteed. Third, the Company coordinately focused on stability maintenance of petitioning and
public opinion monitoring to create a harmonious and stable environment for business operation and development.

(II) Gratifying achievements in business management by strengthening the foundation and making up for
deficiencies

1. Continuous improvement of corporate governance

The Company fully revised and improved policies including the Rules of Procedure of the CPC Committee and
the List of Major Business Operation and Management Matters for the CPC Committee to Study and Discuss. By
making the CPC Committee’s studies and discussions a prerequisite for the decision-making of major issues by
the Board of Directors and the management team, the Company strictly controlled its major decision-making
processes. Additionally, the Company revised/formulated 42 policies related to corporate governance and internal
management, and compiled them into a book to build a more scientific and sounder policy system, constantly
improving the level of corporate governance. It continued to promote the development of a comprehensive risk
management system and organized all units to carry out internal control self-assessment, which consolidated the
foundation for the steady development of the Company.

2. Practical effectiveness of financial management

First, the Company successfully completed the distribution of profits for 2020 and paid cash dividends to all
shareholders, achieving normal cash dividends for three consecutive fiscal years. Second, the Company attained
capital gains of more than RMB40 million through negotiated deposits, monetary funds and other means


throughout the year. Third, the Company thoroughly cleaned up its receivables and recovered nearly RMB20
million of overdue receivables. Fourth, the Company was active in coordination and communication. It completed
the land appreciation tax refund process for Longgang Project and received a tax refund of more than RMB70
million. Fifth, the Company overcame difficulties and completed the mortgage bank cooperation negotiations for
Linxinyuan Project in Huizhou, obtaining a mortgage of RMB800 million to provide support for project sales.

3. Breakthroughs in addressing issues left over from history

The Company actively took measures to speed up the execution of cases such as those involving Fresh Peak
Property, Sandao and Golden Times, with more than RMB1.7 million recovered. It also kept promoting the
special work of historical housing payment collection. A total of more than RMB1.5 million in arrears was
recovered throughout the year.

4. Good results in cost control

The Company continued to strictly control project development costs. It implemented full cost, whole process,
and penetration management, and paid close attention to the budget and final accounting of major projects.
Throughout the year, the Company prepared 32 budgets and the reduction rate of budget amount was 2.08%; 27
settlement audits were completed and the reduction rate of settlement amount was 5.34%.

5. Steady growth in lease business

The Company promoted lease property through multiple channels. Throughout the year, a total of 109 lease
contracts were newly signed or renewed, covering an area of 33,000 square meters; the Company’s cumulative
lease revenue reached 107.6% of the annual target, a year-on-year increase of 33%.

6. Orderly development of human resources work

The Company explored the establishment of a sound incentive/constraint mechanism, and organized employee
co-investment in Linxinyuan Project in Huizhou, so as to stimulate employees’ enthusiasm and creativity. It
actively carried out human resources management and enriched the cadre and staff teams. It also completed the
work for full coverage of special review of personnel files efficiently with quality and quantity assured in
accordance with the requirements of the Organization Department of the CPC Shenzhen Municipal Committee
and SIHC.

7. Solid progress in audit supervision

The Company actively carried out internal audit supervision. It completed the audit and assessment filing for the
capital verification based on physical inventory of Linxinyuan Project in Huizhou and Yunnan Kunpeng Air
Service Co., LTD., conducted special inspections of the capital safety management of subordinated enterprises,
and organized and coordinated the investment control audit team to complete the special audit of Tianyuewan
Project in Shantou, empowering the stable and healthy development of the Company.

(III) New momentum to the development of subordinated enterprises by stabilizing operation and
overcoming difficulties

1. Business performance

Affected by factors such as the economic downturn, industry regulation and the pandemic, the Shantou branch of
the Company, Petrel Hotel and Zhentong Engineering operated under pressure. Shenzhen Property Management
and Huazhan Construction Supervision overcame many difficulties and adverse factors, paid close attention to
operation, and achieved their annual business objectives.

2. Business management

Shenzhen Property Management successfully completed the re-certification for its management system and
carried out the special action of garbage sorting in communities. Its management level was improved to a certain
extent. Petrel Hotel standardized its operating process and organized special training such as sales and etiquette,
promoting its services to a higher level. Zhentong Engineering successfully obtained the Grade B qualification for


curtain wall design, which created good hardware conditions for business expansion. Huazhan Construction
Supervision strengthened on-site supervision to effectively guarantee project safety and project quality. The
Shantou branch of the Company intensified efforts on project cost control, thereby effectively reducing project
costs. Jianbang Group coordinately advanced different tasks including development, construction, marketing, and
promotion, with practical results achieved.

3. Market expansion

Zhentong Engineering made great efforts to develop external markets and signed 57 projects. Petrel Hotel
introduced the internet-famous shop project and successfully leased out some properties that had been vacant for a
long time. Huazhan Construction Supervision successfully won the bid for the supervision project of the Tigo
Semiconductor Memory Industry Base.

(IV) A clean and righteous atmosphere that enables entrepreneurs to focus on business development by
working on Party building and fostering harmony

1. Solid progress in Party building

The CPC Committee of the Company created new methods to promote the provision and effectiveness of Party
history education. Party organizations at all levels in the system integrated the education of the Party history into
everyday life. Adhering to the problem-orientated concept, the Company continuously led the practice of “I do
practical things for the masses” in depth and donated property management equipment to support happy
community building. With a strict and pragmatic approach, it consolidated the development of community-level
Party organizations, normalized and institutionalized the study by the Theoretical Center Team of the CPC
Committee, and earnestly carried out all tasks of the “Five Ones” project in the education of Party members.

2. Furthering deepening of clean and honest Party conduct development

The Company fully implemented the joint deployment, implementation, inspection, and assessment of clean and
honest Party conduct development and business operation. It gave full play to the synergy of the big supervision
system, facilitated the integration of different supervision measures, focused on the main business and primary
responsibilities, and effectively ensured that all tasks in the annual list of tasks for development of clean and
honest Party conduct and anti-corruption work, as well as key points of annual supervision, were implemented.
On the occasion of the 100th anniversary of the founding of the Party, the Company enhanced honesty publicity
and education, solidly organized the discipline education and learning month, strengthened work style
development, promoted the positive energy of honesty, and created a clean and righteous atmosphere that enables
entrepreneurs to focus on business development.

3. Great vitality of corporate culture development

Throughout the year, the Company organized more than 150 football, tennis, badminton, table tennis, yoga and
other interest group and sports activities, enriching employees’ lifestyle after work. The Company successfully
held the “SPG Cup” Table Tennis Invitational Competition, and carried out the “Zouhongqiao”, “Employee
Collective Birthday Party”, visits to Linxinyuan Project in Huizhou, and other activities, creating a sound
environment where the Company builds platforms and the employees participate, enhancing corporate
cohesiveness.

2. Revenue and Cost Analysis

(1) Breakdown of Operating Revenue

Unit: RMB



2021

2020

Change (%)




Operating revenue

As % of total
operating revenue
(%)

Operating revenue

As % of total
operating revenue
(%)

Total

1,320,790,648.45

100%

1,615,009,713.88

100%

-18.22%

By operating division

Property sales

876,161,088.60

66.34%

1,158,411,393.81

71.73%

-24.37%

Engineering and
construction

200,259,571.16

15.16%

251,454,463.43

15.57%

-20.36%

Property
management

162,526,580.18

12.31%

151,968,675.51

9.41%

6.95% (未完)
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