[年报]深深房Ｂ:2021年年度报告（英文版）
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）  |