SHENZHENSPECIALECONOMICZONEREALESTATE

&PROPERTIES(GROUP)CO.,LTD.

INTERIMREPORT2025

2025-023

[28August2025]

PartIImportantNotes,TableofContentsandDefinitionsTheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofShenZhenSpecialEconomicZoneRealEstate&Properties(Group)Co.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.TangXiaoping,theCompany’sGeneralManager,WangJianfei,theCompany’sChiefFinancialOfficer,andZhouHongpu,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.CertaindescriptionsabouttheCompany’soperatingplansorworkarrangementsforthefuturementionedinthisReportanditssummary,theimplementationofwhichissubjecttovariousfactors,shallNOTbeconsideredaspromisestoinvestors.Therefore,investorsandinterestedpartiesareremindedtobesufficientlyawareoftherisksinvolvedandunderstandthedifferencesbetweenplans,forecastsandpromises.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.

TableofContents

PartIImportantNotes,TableofContentsandDefinitions ...... 2

PartIICorporateInformationandKeyFinancialInformation ...... 6

PartIIIManagementDiscussionandAnalysis ...... 9

PartIVCorporateGovernance,EnvironmentandSociety ...... 23

PartVSignificantEvents ...... 24

PartVIShareChangesandShareholderInformation ...... 29

PartVIIBonds ...... 33

PartVIIIFinancialStatements ...... 34

PartIXOtherReportedData ...... 165

DocumentsAvailableforReference

1.ThefinancialstatementswiththepersonalsignaturesandstampsoftheCompany’slegalrepresentative,ChiefFinancialOfficerandheadofthefinancialdepartment;and

2.TheoriginalsofallthedocumentsandannouncementsdisclosedbytheCompanyonSecuritiesTimes,ChinaSecuritiesJournalandTaKungPaoduringtheReportingPeriod.

Definitions

PartIICorporateInformationandKeyFinancialInformationICorporateInformation

IIContactInformation

IIIOtherInformation

1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddress,emailaddressandothercontactinformationoftheCompanyintheReportingPeriod.

□Applicable?NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2024AnnualReport.

2.MediaforInformationDisclosureandPlacewherethisReportisKeptIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforkeepingtheCompany’speriodicreportsintheReportingPeriod.

□Applicable?NotapplicableThewebsiteofthestockexchange,themediaandotherwebsiteswheretheCompany’speriodicreportsaredisclosed,aswellastheplaceforkeepingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2024AnnualReport.

3.OtherInformation

IndicatebytickmarkwhetheranychangeoccurredtootherinformationintheReportingPeriod.

□Applicable?Notapplicable

IVKeyFinancialInformation

Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.

□Yes?No

VAccountingDataDifferencesunderChineseAccountingStandards(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards

1.NetProfitandEquityDifferencesunderCASandIFRS

□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.

2.NetProfitandEquityDifferencesunderCASandForeignAccountingStandards

□Applicable?NotapplicableNosuchdifferencesfortheReportingPeriod.VIExceptionalGainsandLosses

?Applicable□Notapplicable

Unit:RMB

Detailsofothergainsandlossesthatmeetthedefinitionofexceptionalgain/loss:

□Applicable?NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:

?Applicable□Notapplicable

PartIIIManagementDiscussionandAnalysisIPrincipalActivityoftheCompanyintheReportingPeriod

(I)IndustryreviewfortheReportingPeriodOnJuly15,theNationalBureauofStatisticsreleasedthenationaleconomicperformancedataforthefirsthalfof2025.Thedatashowedthat,despiteacomplexlandscapemarkedbygrowingexternalshocksandoverlappingdomesticdifficultiesandchallenges,thenationaleconomyresistedpressureandforgedahead,achievingoverallstableperformancewithprogressandimprovement.Intermsoftheindustry,divergencepersistedacrosscitiesandprojectsinthenewhousemarket,whilethesecond-handhousemarketcontinueditsstrategyofincreasingtradingvolumebyfavorableprice.Overall,therealestatemarketcontinuedtomovetowardsstabilizingandhaltingthedeclineamidfluctuations.(II)ReviewoftheCompany’soperationsintheReportingPeriodInthefirsthalfoftheyear,theCompanyfocusedonthegoalsof“stabilizingmainbusinessoperations,enhancingmanagementandcontrolcapabilities,anddeepeningreformanddevelopment”,activelytookmeasuresandachievedtangibleresults.Themainworkcarriedoutfellintothefollowingfiveaspects:

i.Anchoringobjectivesforstableandorderlyoperationofmainbusiness.First,comprehensiveeffortsweremadeinprojectmarketing.ThejointpartnershipoftheSPGGuangmingliprogressedinanorderlymanner.ThecumulativesoldareaoftheShantouTianyuewanincreasedby120%year-on-year,andexistinglow-efficiencypropertieshavebeenlistedforsaleonthestockexchange.Second,theoperationofself-ownedpropertieswasdeepened.Theoverallpropertyrentalratereached90.15%.Meanwhile,theCompanycompletedthecommercialentrustmentoperationforSPGGuangmingli,andthetenderforselectingapartnerfortherenovationprojectofthehelicopterpadonthetopfloorofSPGPlaza.ii.Holdingthebottomlineforsteadyprogressinriskmitigation.First,continuouseffortsweremadetomitigateprojectrisks.TheCompanyactivelypromotedtheenforcementoftherelevantcourtjudgmentforJianbangGrouptoensurethesecurityofstate-ownedassets,whileproperlyhandlingtheemployeeco-investmentmattersoftheSPGLinxinyuan.Second,safetyriskswereeffectivelyprevented.TheCompanyconducted36safetyinspections,identifying172potentialhazards,allofwhichwereurgedtoberemedied.Third,operationalriskswerecontrolledonallfrontsbystrengtheningfundandaccountmanagementtoensureliquiditysecurity,whilecontinuouslypromotinglossreductionandturnaroundeffortsinaffiliatedenterprises.Fourth,stabilitymaintenanceriskswereproperlyhandled.NomajorpetitioningorpublicopinionincidentsoccurredduringtheReportingPeriod.iii.Consolidatingthefoundationforcontinuousimprovementincomprehensivecapabilities.First,organizationalcapabilitieswereenhanced.TheCompanycompletedtheimplementationofthenewcompensationsystemforheadquartersemployees,achievingasmoothtransitionfromtheoldtothenewsystem.

Second,professionalcapabilitieswereimproved.TheCompanycontinuedthedevelopmentofthe“GoodHouse”informationdatabaseandthedatabaseofhousetypesoftypicalrealestateinthemarket,organizedrelevantthematictraining,andenhancedemployees’overallqualityandprofessionalproficiency.Third,theoperationalcapabilitiesofaffiliatedenterpriseswereboosted.Inthefirsthalfoftheyear,PetrelHotelachieved55%ofitsannualprofittarget;ZhentongEngineeringandHuazhanConstructionSupervisionactivelycarriedoutprojectinvestmentandexpansion;andtheZhongshanEasternMarketofShantouBranchachieveda100%rentcollectionrate.iv.Raisingstanceforcontinuousexplorationofnewbusiness.TheCompanymaintainedahighlevelofattentiontolistingregulatoryrequirementsandcapitalmarketpolicydynamics,activelystrengthenedcommunicationwiththecontrollingshareholder,capitalplatformswithinthesystem,andprofessionalintermediaries,tooktheinitiativetoseekpremiumprojectresourceswithfeasibilityandhighpotentialinthemarket,andstrivedtoseizeopportunitiesinthecomplexandever-changingmarketenvironmenttopromotethehigh-qualitydevelopmentoftheenterprise.v.StrengtheningguidanceforconstantdeepeningofPartybuildingintegration.First,Partybuildingwasintegratedintothegovernancemechanism.TheCompanydynamicallyoptimizedthelistofdecision-makingitemsfor“majorissues,majorappointmentsanddismissals,majorprojectinvestment,anduseoflargeamountoffunds”andstrictlyimplementedthedecision-makingprocedureof“intra-Partydiscussionbeforesubmission”.Second,educationandworkstyledevelopmentwereadvancedsynergistically.TheCompanyconducted25warningeducationsessions,significantlyenhancingthedisciplineandruleawarenessofPartymembersandcadres.Third,theeffortstoexercisestrictgovernanceoverthePartyinallrespectsweredeepened.TheCompanyconductedremindertalkswith32person-timesandsupervised4person-timesinpersonnelselectionandappointment,continuouslyfosteringacleananduprightpoliticalecosystem.

TheCompanyissubjecttotheinformationdisclosurerequirementsfortherealestateindustryintheDisciplinaryandRegulatoryGuidelineNo.3oftheShenzhenStockExchangeforListedCompanies—Industry-specificInformationDisclosure.Newadditionstothelandbank:

Cumulativelandbank:

Developmentstatusofmajorprojects:

Salesstatusofmajorprojects:

Rentalstatusofmajorprojects:

Primarylanddevelopment:

□Applicable?NotapplicableFinancingchannels:

Developmentstrategyandoperatingplanforthecomingyear:

Inthesecondhalfoftheyear,theCompanywillfocusonkeytasks,rigorouslyadvanceworkprogress,andstrengthenaccountabilitytoensurenewbreakthroughsinallareasofwork.i.Strengthenstableoperationofthemainbusiness.First,theCompanywillfocusonprojectmarketingtostriveforthecompletionoftheannualsalestarget.Second,theCompanywillemphasizeassetoperationtocomprehensivelyimprovepropertyrentalandrentcollectionrates,whileworkingtodevelopSPGPlazaintoadual-industrybuildingintegrating“BigHealth”and“Low-altitudeEconomy”.Third,theCompanywill

intensifythemanagementofaffiliatedenterprisesbyoptimizingoperationalcontrolsandstrivingtoachieveannualtargets.ii.Focusonriskpreventionandmitigation.First,theCompanywillmitigateprojectrisksbyacceleratingtheprogressionoftheseriesoflawsuitsregardingtheLinxinyuanproject,whilecontinuingtotakeeffectivemeasurestomaintainsafetyatprojectsites.Second,theCompanywillpreventsafetyrisksbyincreasingtheappraisalofsafetyproductiontargetsandon-siteinspectionstoensurenosafetyproductionliabilityaccidentsthroughouttheyear.Third,theCompanywillcontroloperationalrisksbystrengtheningthemanagementofaccountsreceivable,investments,andotheroperationalrisks,andproperlyhandlingexistingrisks.Fourth,theCompanywillmanagestabilitymaintenancerisksbyenhancingpetitioningstabilitymaintenanceandpublicopinioncontroltopreventideologicalissuesandmajorinstabilityincidents.iii.Strivetobuildanewdevelopmentpattern.First,theCompanywillstrengthenstrategicguidancebymaintainingclosecommunicationwiththecontrollingshareholderandadvancingthehigh-qualityformulationofthe“15thFive-Year”strategicplantoprovideprogrammaticguidancefordeepeningreformandinnovativedevelopment.Second,basedonSIHC’sstrategy,theCompanywillidentifythefootholdsandfocalpointsfordevelopment,andacceleratethefulfillmentofSIHC’scommitmenttoavoidhorizontalcompetition.Third,theCompanywillactivelyexplorenewfuturedevelopmentpaths,deeplyexcavatepremiuminvestmentopportunities,andexpandnewspaceforcorporatedevelopment.iv.Consolidatemanagementforbetterqualityandempowerment.First,theCompanywillsolidifybasicmanagementbycontinuouslyimprovingthecorporategovernancesystem,anddeepeningESGgovernanceandsustainabledevelopmentpractices.Wewillstrengthentheconstructionofthecompliancemanagementsystemanddeepeninternalauditandinternalcontrolwork.The“establishment,revision,andabolition”ofsystemswillbepromotedtoensurethepolicysystemhighlyalignswithsuperiorpoliciesandindustryregulatoryrequirements.Second,theCompanyenhancemanagementefficiencybypromotingtheoptimizationoforganizationalstructure,definingpostsandstaffing,andpersonneloptimizationadjustmentstobuildanorganizationalsystemthatis“rationallylayered,clearinauthorityandresponsibility,andleanandefficient”.v.DeepenandadvancePartybuilding.First,theCompanywillensurethatstudyandeducationarethoroughlyunderstoodanddeeplyimplemented.Second,theCompanywillcontinuetoadvancetheimplementationofannualkeyplansincludingtheresponsibilitysystemforideologicalwork,theconstructionofcorporateleadership,thestandardizationandnormalizationofgrassrootsPartyorganizationsandthedevelopmentofPartymembers,andthecreationofthe“OneBrandforOneEnterprise”Partybuildingbrandinitiative.Third,theCompanywillstrengthendisciplineinspectionandsupervisionwork,enhancepoliticalregulation,andconsolidatethepoliticalresponsibilityforexercisingfullandrigorousPartyself-governance.Basedonthemainresponsibilityofsupervisionanddisciplineenforcement,weutilizethe“fourforms”toachieveearlyinterventionandpreventionofminorissues.

Provisionofguaranteesforhomebuyersonbankmortgages:

?Applicable□Notapplicable

Jointinvestmentsbydirectors,supervisorsandseniormanagementandthelistedcompany(applicableforsuchinvestmentswherethedirectors,supervisorsandseniormanagementarethemajorsourceofinvestment):

?Applicable□Notapplicable

IICoreCompetitivenessAnalysis

AstheearliestrealestatedeveloperfoundedintheShenzhenSpecialEconomicZone,theCompanyhelpedbuildtheearlycity,andhascreatedanumberof“firstplaces”inthehistoryofrealestatedevelopmentinChina.Forexample,thefirsttousethepaidstate-ownedland,thefirsttointroducetheforeigninvestmentforthecooperativelanddevelopment,thefirsttoraisedevelopmentfundsbymeansofpre-saleofbuildings,thefirsttocarryoutpublicbiddingforconstructionprojectsinaccordancewithinternationalpractices,thefirsttosetupapropertymanagementcompanytothebuildingsandresidencesdevelopedinanall-roundedmanner,aswellaswinningthebidinthenewChina’sfirstauctionoflanduserightsheldintheShenzhenSpecialEconomicZone.Aftermorethan40yearsofdevelopment,theCompanyhasgrownintoabusinessgroupwithrealestatedevelopmentandoperationasitsmainbusiness,integratingengineeringandconstruction,projectsupervision,assetmanagementandotherdiversifiedoperations.IthaspaidgreateffortstotheestablishmentofamodernenterpriseHRmanagementsystemandworkshardinbuildingaprofessionalandhigh-qualitydevelopmentteam.Italsokeepsimprovingthemanagementmechanismandprocessesforprojectdevelopment.Asaresult,itsplanning,construction,costcontrol,marketingabilityandbrandimagehavebeeneffectivelyimproved.Moreimportantly,itsmainbusinessoperationabilityandcorecompetitivenesshavebeengreatlyenhanced.DuringtheReportingPeriod,theCompanyreceivedan“A”ESGratingfromSino-SecuritiesIndexInformationService(Shanghai)Co.,Ltd.andwasincludedinthe“2025TOP20ESGPerformersintheRealEstateIndustryamongA-ShareListedCompanies”listpublishedbySino-SecuritiesIndexESGRatings.IIICoreBusinessAnalysisOverview:

Seecontentsundertheheading“IPrincipalActivityoftheCompanyintheReportingPeriod”above.Year-on-yearchangesinkeyfinancialdata:

Unit:RMB

theCompanyH12025

MajorchangesintheprofitstructureorsourcesoftheCompanyintheReportingPeriod:

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.Breakdownofoperatingrevenue:

Unit:RMB

Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:

?Applicable□Notapplicable

Unit:RMB

MainbusinessdataofthemostrecentperiodrestatedaccordingtochangedstatisticalcaliberfortheReportingPeriod

□Applicable?NotapplicableIVNon-CoreBusinessAnalysis

□Applicable?Notapplicable

VAnalysisofAssetsandLiabilities

1.SignificantChangesinAssetComposition

Unit:RMB

2.MajorAssetsOverseas

□Applicable?Notapplicable

3.AssetsandLiabilitiesatFairValue

?Applicable□Notapplicable

Unit:RMB

OtherchangeSignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:

□Yes?No

4.RestrictedAssetRightsasatthePeriod-End

VIInvestmentAnalysis

1.TotalInvestmentsMade

□Applicable?Notapplicable

2.SignificantEquityInvestmentsMadeintheReportingPeriod

□Applicable?Notapplicable

3.SignificantNon-equityInvestmentsOngoingintheReportingPeriod

□Applicable?Notapplicable

4.FinancialInvestments

(1)SecuritiesInvestments

□Applicable?NotapplicableNosuchcasesinthisReportingPeriod

(2)InvestmentinDerivativeFinancialInstruments

□Applicable?NotapplicableNosuchcasesinthisReportingPeriod

5.UseofFundsRaised

□Applicable?NotapplicableNosuchcasesinthisReportingPeriod

VIISaleofMajorAssetsandEquityInterests

1.SaleofMajorAssets

□Applicable?NotapplicableNosuchcasesinthisReportingPeriod

2.SaleofMajorEquityInterests

□Applicable?NotapplicableVIIIPrincipalSubsidiariesandJointStockCompanies

?Applicable□NotapplicablePrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:

Unit:RMB

SubsidiariesobtainedordisposedintheReportingPeriod:

□Applicable?NotapplicableInformationaboutmajormajority-andminority-ownedsubsidiaries:

1.InMay2021,throughthepaymentofconsiderationofRMB450million,theGroupacquired51%equityinterestinGuangdongJianbangGroup(Huiyang)IndustrialCo.,Ltd.TheprojectcompanywilldeveloptheLinxinyuanProjectwithagrosssiteareaof200,000squaremetersandatotalcapacitybuildingareaof0.4millionsquaremeters,whichwillbedevelopedinfourphases.TheGrouphascontrolovertheprojectcompany,whichwillbeincludedinthescopeofconsolidationinMay2021.AsofJune30,2025,eightresidentialbuildingsofPhaseIhavebeencapped,thebasementofPhaseIIhasbeencompleted,thedevelopmentofPhaseIIIandPhaseIVaretobeinitiated,andconstructionpermithasnotbeengrantedfortheschool.Therewerenosalesinthefirsthalfof2025.

2.InOctober2021,theCompanywonthebidforalandplotinGuangmingDistrictandestablishedtheprojectcompanyShenzhenSPGChuanqiRealEstateDevelopmentCo.,Ltd.toberesponsibleforthedevelopmentandconstructionoftheland.InNovember2024,theCompanycompletedtheacceptanceoftheconstructionproject,withacumulativesalesrateof99%forresidentialbuildings.Inthefirsthalfof2025,thecarryoverrevenuereachedRMB539,880,200,accountingfor95.1%revenuefromtheGroup’srealestatesectorand84.7%oftheGroup’soperatingincome.

3.Thesubordinatesubsidiariesengagedinrealestatedevelopmentalsoinclude:ShenzhenSPGLonggangDevelopmentCo.,Ltd.,ShantouSEZ,WellamFTY,BuildingDevelopment,Co.,Ltd.,ShantouHuafengRealEstateDevelopmentCo.,Ltd.TheCuilinyuanprojectdevelopedbyShenzhenSPGLonggangDevelopmentCo.,Ltd.recordednosalesinthefirsthalfof2025.JinyedaoandYuejingDongfangdevelopedbyShantouSEZ,WellamFTY,BuildingDevelopment,Co.,Ltd.leftafewamountofremainingbuildingsforsale.AndShantouHuafengRealEstateDevelopmentCo.,Ltd.wasresponsibleforthedevelopmentofTianyuewanproject(dividedintoPhaseIandPhaseII).TianyuewanPhaseIwasopenforsaleinOctober2016andcompletedinDecember2019.ThePhaseIIstartedconstructioninNovember2018andwascompletedattheendofJune2021.Theoverallsalesprogressisrelativelyslowwithanaccumulatedsalesrateofabout75.63%forPhaseIand33.9%forPhaseII.

4.ShenzhenZhentongEngineeringCo.,Ltd.wasengagedinthebusinessofbuildinginstallationandmaintenancewiththeH12025operatingrevenuesofRMB38.65millionandof6.1%totheoperatingrevenuesoftheCompany.

5.TheH12025netprofitofXinFengEnterpriseCo.,Ltd.wasofRMB-0.86millionwhichmainlyduetothedepreciationandamortizationofinvestmentproperty.

IXStructuredBodiesControlledbytheCompany

□Applicable?Notapplicable

XRisksFacingtheCompanyandCountermeasures

i.MacroeconomicrisksandcountermeasuresSincethebeginningofthisyear,China’seconomyhasbeenoperatingsteadilywithprogress,achievingnewresultsinhigh-qualitydevelopment.Majoreconomicindicatorshaveperformedwell,newqualityproductiveforceshavebeenactivelydeveloped,reformandopeninguphavecontinuedtodeepen,andrisksinkeyareashavebeeneffectivelypreventedandmitigated.However,therearestillmanyrisksandchallengesinthecurrentoperationofthenationaleconomy.Therealestateindustryhasagreatercorrelationwiththemacroeconomyandismoreinfluencedbythemacroeconomiccycle.TheCompanywillcontinuepayingcloseattentiontotheinternationalanddomesticmacroeconomicsituationsandproactivelyadjustitsoperationstrategies.ii.IndustrydevelopmentrisksandcountermeasuresAtthisstage,asexistingpoliciescontinuetoshoweffects,newpoliciesareeffectivelyimplemented,andthecombinedimpactofpoliciesiscontinuouslyreleased,therealestatemarketcontinuestomovetowardstabilizingandhaltingthedeclineamidfluctuations.Nevertheless,forsometimetocome,therealestateindustrywillstillfacemanyrisksandpotentialhiddendangers,andthemarketcompetitionpatternwillpresentanewsituation.TheCompanywillcloselymonitorindustrypolicies,follownationalstrategicdirection,continuouslyoptimizethebusinessdevelopmentpath,andactivelyexploreinnovativeoperatingmodelstobetteradapttochangesintheexternalenvironment.iii.BusinessoperatingrisksandcountermeasuresAgainstthebackdropofincreasinglyfiercecompetitionintherealestatemarket,theCompanyisfacingchallengessuchasinsufficientreservesofdevelopmentlandresources,difficultiesinsellinginventoryprojects,andalackofsubstantialresultsinnewbusinessexpansion,allofwhichareputtingpressureoncorporateoperationanddevelopment.TheCompanywillcloselymonitormarketdynamicsandindustrypolicytrends,intensifyeffortstoimprovethequalityandefficiencyofexistingassets,consolidatethefoundationofthecorebusiness,andactivelyseekinnovativemodelsandpathsthatalignwithitsactualdevelopmentneedstoflexiblyrespondtomarketchallengesandexplorebroaderdevelopmentspace.

XITheFormulationandImplementationoftheMarketValueManagementSystemandValuationImprovementPlan

HastheCompanyestablishedamarketvaluemanagementsystem?

□Yes?NoHastheCompanydisclosedavaluationimprovementplan?

□Yes?No

XIIImplementationoftheActionPlanfor“DualEnhancementofQualityandProfitability”

HastheCompanydiscloseditsActionPlanfor“DualEnhancementofQualityandProfitability”

□Yes?No

PartIVCorporateGovernance,EnvironmentandSocietyIChangeofDirectors,SupervisorsandSeniorManagement

□Applicable?NotapplicableNochangesoccurredtodirectors,supervisorsandseniormanagementintheReportingPeriod.Seethe2024AnnualReportformoredetails.

IIInterimDividendPlan

□Applicable?NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.

IIIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

IVEnvironmentalInformationDisclosureWhetherthelistedcompanyanditsprincipalsubsidiariesareincludedinthelistofenterpriseslegallyrequiredtodiscloseenvironmentalinformation

□Yes?No

VSocialResponsibility

Whilepursuingeconomicbenefitsandprotectingtheinterestsofshareholders,theCompanyproactivelyfulfilleditssocialresponsibilitiesdemonstratingtheCompany’ssocialvalueandresponsibilities.DuringtheReportingPeriod,theCompanyintensivelycarriedoutconsumerassistanceinitiativestosupportShenzhen’sconsumerassistanceandruralrevitalizationwork,continueditsassistanceprojectinLongduTown,ChenghaiDistrict,ShantouCity,andorganizedcomprehensivefireemergencydrillsforcommercialtenantsinthepropertiesunderitsmanagementtoenhancepublicawarenessoffiresafetyprevention.

PartVSignificantEventsICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesintheProvisionofGuarantees

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

IVEngagementandDisengagementofIndependentAuditor

Aretheinterimfinancialstatementsaudited?

□Yes?NoTheinterimfinancialstatementshavenotbeenaudited.

VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor’s“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod

□Applicable?Notapplicable

VIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor’s“ModifiedOpinion”ontheFinancialStatementsofLastYear

□Applicable?Notapplicable

VIIInsolvencyandReorganization

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.VIIILegalMattersSignificantlawsuitsandarbitrations:

?Applicable□Notapplicable

Otherlegalmatters:

□Applicable?NotapplicableIXPunishmentsandRectifications

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

XCreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController

□Applicable?Notapplicable

XIMajorRelated-PartyTransactions

1.ContinuingRelated-PartyTransactions

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

3.RelatedTransactionsRegardingJointInvestmentsinThirdParties

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

4.AmountsDuetoandfromRelatedParties

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

5.TransactionswithRelatedFinanceCompanies

□Applicable?NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.

6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany

□Applicable?NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.

7.OtherMajorRelated-PartyTransactions

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

XIIMajorContractsandExecutionthereof

1.Entrustment,ContractingandLeases

(1)Entrustment

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

(2)Contracting

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

(3)Leases

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

2.MajorGuarantees

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

3.CashEntrustedforWealthManagement?Applicable□Notapplicable

Unit:RMB’0,000

High-riskentrustedwealthmanagementwithsignificantsingleamountorlowsecurityandpoorliquidity:

□Applicable?NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedwealthmanagement

□Applicable?Notapplicable

4.OtherSignificantContracts

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

XIIIOtherSignificantEvents

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

XIVSignificantEventsofSubsidiaries

□Applicable?Notapplicable

PartVIShareChangesandShareholderInformationIShareChanges

1.ShareChanges

Unit:share

Reasonsforsharechanges:

□Applicable?NotapplicableApprovalofsharechanges:

□Applicable?NotapplicableTransferofshareownership:

□Applicable?NotapplicableProgressonanysharerepurchase:

□Applicable?NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:

□Applicable?NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:

□Applicable?NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:

□Applicable?Notapplicable

2.ChangesinRestrictedShares

□Applicable?NotapplicableIIIssuanceandListingofSecurities

□Applicable?NotapplicableIIITotalNumberofShareholdersandTheirShareholdings

Unit:share

5%orgreatershareholders,top10shareholdersandTop10unrestrictedshareholdersinvolvedinrefinancingshareslending

□Applicable?NotapplicableChangesintop10shareholdersandtop10unrestrictedshareholdersduetorefinancingshareslending/returncomparedwiththepriorperiod

□Applicable?NotapplicableIndicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.

□Yes?NoNosuchcasesintheReportingPeriod.

IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement

□Applicable?NotapplicableNochangesoccurredtotheshareholdingsofthedirectors,supervisorsandseniormanagementintheReportingPeriod.Seethe2024AnnualReportformoredetails.VChangeoftheControllingShareholderortheDeFactoController

ChangeofthecontrollingshareholderintheReportingPeriod

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod

□Applicable?NotapplicableNosuchcasesintheReportingPeriod.

VIPreferenceShares

□Applicable?NotapplicableNopreferencesharesintheReportingPeriod.

PartVIIBonds

□Applicable?Notapplicable

PartVIIIFinancialStatements

1、Auditreport

Hasthesemiannualreportbeenaudited

□Yes?NoThecompany'ssemiannualfinancialreporthasnotbeenaudited.

、Financialstatements

Theunitofthefinancialstatementsinthefinancialnotesis:yuan

1.ConsolidatedbalancesheetPreparedby:ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd

June30th,2025

Unit:Yuan

Legalrepresentative:TangXiaopinginchargeofaccountingwork:WangJianfeiinchargeofaccountingagency:ZhouHongpu

2.Parentcompanybalancesheet

Unit:Yuan

3.Consolidatedincomestatement

Unit:Yuan

Inthecurrentperiod,ifthereisamergerofenterprisesunderthesamecontrol,thenetprofitrealizedbythemergedpartybeforethemergeris:yuan,andthenetprofitrealizedbythemergedpartyinthepreviousperiodis:yuan.Legalrepresentative:TangXiaopinginchargeofaccountingwork:WangJianfeiinchargeofaccountingagency:ZhouHongpu

4.IncomeStatementoftheParentCompany

Unit:Yuan

5.Consolidatedcashflowstatement

Unit:Yuan

6.Parentcompanycashflowstatement

Unit:Yuan

7.ConsolidatedStatementofChangesinOwner'sEquity

CurrentAmount

Unit:Yuan

Lastyear'samount

Unit:Yuan

8.StatementofChangesinOwner'sEquityoftheParentCompany

CurrentAmount

Unit:Yuan

Lastyear'samount

Unit:Yuan

3、Basicinformationofthecompany

ShenzhenSpecialEconomicZoneRealEstate(Group)Co.,Ltd.(hereinafterreferredtoastheCompanyortheCompany)wasestablishedasajointstocklimitedcompanyonthebasisoftheoriginalShenzhenSpecialEconomicZoneRealEstateCorporationwiththeapprovaloftheShenzhenMunicipalPeople'sGovernmentOffice.ItwasregisteredwiththeShenzhenAdministrationforIndustryandCommerceinJuly1993andisheadquarteredinShenzhen,GuangdongProvince.Thecompany'sunifiedsocialcreditcodeis91440300192179585Nonitsbusinesslicense,witharegisteredcapitalof1011660000.00yuanandatotalof1011660000shares(withafacevalueof1yuanpershare).Amongthem,thereare891660000A-sharesand120000000B-shareswithunlimitedsalesconditions.Thecompany'sstockswerelistedandtradedontheShenzhenStockExchangeonSeptember15,1993andJanuary10,1994,respectively.

OnOctober13,2004,inaccordancewiththeDecisionoftheStateownedAssetsSupervisionandAdministrationCommissionofShenzhenMunicipalPeople'sGovernmentonEstablishingShenzhenInvestmentHoldingCo.,Ltd.(SZSASAC[2004]No.223),theoriginalmajorshareholderofourcompany,

ShenzhenConstructionInvestmentHoldingCo.,Ltd.,mergedwithtwoothermunicipalassetmanagementcompaniestoformShenzhenInvestmentHoldingCo.,Ltd.,whichisawhollystate-ownedlimitedliabilitycompany.Asaresult,theequitytransferofourcompanyhasbeenapprovedbytheStateownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(StateownedAssetsSupervisionandAdministrationCommission[2005]No.689)andexemptedfromthetenderofferobligationbytheChinaSecuritiesRegulatoryCommission(CSRC)withtheapprovalofCSRCLetterNo.[2005]116.ThetransferregistrationprocedureswerecompletedattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedonFebruary15,2006.Asoftheendofthereportingperiod,ShenzhenInvestmentHoldingCo.,Ltd.holds564353838sharesofthecompany'sstock(accountingfor55.78%ofthecompany'stotalsharecapital),allofwhichareunrestrictedshares.Ourcompanybelongstotherealestateindustry.Themainbusinessactivitiesincluderealestatedevelopmentandsalesofcommercialhousing,propertyleasingandmanagement,retailandtradeofcommodities,hotelbusiness,equipmentinstallationandmaintenance,construction,interiordecorationandotherbusinesses.Thisfinancialstatementhasbeenapprovedforexternalreportingbythe21stmeetingofthe8thBoardofDirectorsofthecompanyonAugust27,2025.

、Thebasisforpreparingfinancialstatements

1.FundamentalsofCompilationOurcompany'sfinancialstatementsarepreparedonagoingconcernbasis.

2.ContinuingoperationsOurcompanydoesnothaveanyissuesorcircumstancesthatraisesignificantdoubtsaboutitsabilitytocontinueasagoingconcernforthe12monthsfromtheendofthereportingperiod.

5、Importantaccountingpoliciesandaccountingestimates

Specificaccountingpoliciesandaccountingestimates:

Importantnotice:Ourcompanyhasformulatedspecificaccountingpoliciesandestimatesfortransactionsoreventssuchasimpairmentoffinancialinstruments,depreciationofinventory,fixedassets,constructioninprogress,intangibleassets,andrevenuerecognitionbasedonactualproductionandoperationcharacteristics.

1.DeclarationofCompliancewithEnterpriseAccountingStandards

ThefinancialstatementspreparedbyourcompanycomplywiththerequirementsoftheEnterpriseAccountingStandardsandtruthfullyandcompletelyreflectthecompany'sfinancialposition,operatingresults,cashflows,andotherrelevantinformation.

2.Accountingperiod

TheaccountingyearstartsfromJanuary1standendsonDecember31stoftheGregoriancalendar.

3.BusinesscycleTheoperatingcycleofthecompany'sbusinessisrelativelyshort,and12monthsisusedastheliquidityclassificationstandardforassetsandliabilities.Thebusinesscycleoftherealestateindustry,frompropertydevelopmenttosalesrealization,generallylastsformorethan12months.Thespecificcycleisdeterminedbasedonthedevelopmentprojectsituation,anditsbusinesscycleisusedastheliquidityclassificationstandardforassetsandliabilities.

4.Bookkeepingbasecurrency

Ourcompany'saccountingbasecurrencyandthecurrencyusedforpreparingthesefinancialstatementsarebothChineseyuan.Unlessotherwisespecified,allareexpressedinChineseyuan.Thesubsidiarycompaniesofourgroupdeterminetheiraccountingbasecurrencybasedonthemaineconomicenvironmentinwhichtheyoperate,andconvertitintoRMBwhenpreparingfinancialstatements.

5.Determinationmethodandselectioncriteriaforimportancestandards

?Applicable□Notapplicable

6.Accountingtreatmentmethodsformergersofenterprisesunderthesamecontrolandthosenotunderthesamecontrol

1.AccountingtreatmentmethodsforbusinesscombinationsunderthesamecontrolTheassetsandliabilitiesacquiredbythecompanyinabusinessmergershallbemeasuredatthebookvalueofthemergedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthemergerdate.Thecompanyadjustsitscapitalreservebasedonthedifferencebetweenthebookvalueoftheequityofthemergedpartyinthefinalcontrollingparty'sconsolidatedfinancialstatementsandthebookvalueofthemergerconsiderationpaidorthetotalfacevalueoftheissuedshares;Ifthecapitalreserveisinsufficienttooffset,adjusttheretainedearnings.

2.AccountingtreatmentmethodsforbusinesscombinationsnotunderthesamecontrolOntheacquisitiondate,thecompanyrecognizesthedifferencebetweenthemergercostandthefairvalueoftheidentifiablenetassetsacquiredfromtheacquiredpartyasgoodwill;Ifthecostofamergerislessthanthefairvalueoftheidentifiablenetassetsacquiredfromtheacquiredpartyinthemerger,thefairvalueoftheidentifiableassets,liabilities,andcontingentliabilitiesacquiredfromtheacquiredparty,aswellasthemeasurementofthemergercost,shallbereviewedfirst.Ifthemergercostisstilllessthanthefairvalueoftheidentifiablenetassetsacquiredfromtheacquiredpartyinthemergerafterreview,thedifferenceshallberecognizedinthecurrentperiod'sprofitorloss.

7.Judgmentcriteriaforcontrolandpreparationmethodsforconsolidatedfinancialstatements

1.JudgmentofcontrolHavingthepowerovertheinvestedparty,enjoyingvariablereturnsthroughparticipatinginrelatedactivitiesoftheinvestedparty,andhavingtheabilitytousethepowerovertheinvestedpartytoinfluenceitsvariablereturnamount,isrecognizedascontrol.

2.MethodforpreparingconsolidatedfinancialstatementsTheparentcompanyincludesallitscontrolledsubsidiariesintheconsolidationscopeoftheconsolidatedfinancialstatements.Theconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheparentcompanyanditssubsidiaries,andarepreparedbytheparentcompanyinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.33-ConsolidatedFinancialStatementsbasedonotherrelevantinformation.

8.ClassificationofJointVentureArrangementsandAccountingTreatmentMethodsforJointOperations

1.Jointventurearrangementsaredividedintojointoperationandjointventureenterprises.Whenthecompanyisajointventurepartnerinajointoperation,thefollowingitemsrelatedtotheshareofinterestsinthejointoperationshallbeconfirmed:

(1)Confirmtheassetsheldseparately,aswellastheassetsjointlyheldbasedontheirrespectiveholdings;

(2)Confirmindividualliabilitiesandjointlyassumeliabilitiesbasedonshareholding;

(3)Confirmtherevenuegeneratedfromthesaleofthejointoperatingoutputshareenjoyedbythecompany;

(4)Confirmtherevenuegeneratedfromthesaleofassetsinjointoperationsbasedonthecompany'sshareholding;

(5)Confirmtheexpensesincurredseparately,aswellastheexpensesincurredinjointoperationsbasedonthecompany'sshareholding.

9.Determinationcriteriaforcashandcashequivalents

Thecashlistedinthecashflowstatementreferstocashonhandanddepositsthatcanbeusedforpaymentatanytime.Cashequivalentsrefertoinvestmentsheldbyenterpriseswithshortmaturities,strongliquidity,easyconversionintoknownamountsofcash,andminimalriskofvaluechanges.

10.Foreigncurrencytransactionsandforeigncurrencystatementtranslation

1.Conversionofforeigncurrencytransactions

ForeigncurrencytransactionsareinitiallyrecognizedandconvertedintoRMBusingthespotexchangerateonthetransactiondate.Onthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedatthespotexchangerateonthebalancesheetdate.Exchangedifferencesarisingfromdifferentexchangerates,exceptfortheexchangedifferencesrelatedtotheprincipalandinterestofforeigncurrencyborrowingsforthepurchaseandconstructionofassetsthatmeetcapitalizationconditions,arerecognizedinthecurrentperiod'sprofitandloss;Foreigncurrencynonmonetaryitemsmeasuredathistoricalcostarestilltranslatedatthespotexchangerateonthetransactiondate,withoutchangingtheirRMBamount;Foreigncurrencynonmonetaryitemsmeasuredatfairvaluearetranslatedatthespotexchangerateonthedateoffairvaluedetermination,andthedifferenceisrecognizedinthecurrentperiod'sprofitorlossorothercomprehensiveincome.

2.Conversionofforeigncurrencyfinancialstatements

Theassetandliabilityitemsinthebalancesheetaretranslatedusingthespotexchangerateonthebalancesheetdate;Exceptforthe"undistributedprofits"item,allotherowner'sequityitemsareconvertedatthespotexchangerateonthetransactiondate;Theincomeandexpenseitemsintheincomestatementareconvertedusingtheapproximateexchangerateofthespotexchangerateonthetransactiondate.Theforeigncurrencyfinancialstatementtranslationdifferencegeneratedbytheaboveconversionshallbeincludedinothercomprehensiveincome.

11.FinancialInstruments

1.Classificationoffinancialassetsandfinancialliabilities

Financialassetsareclassifiedintothefollowingthreecategoriesuponinitialrecognition:(1)financialassetsmeasuredatamortizedcost;(2)Financialassetsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome;(3)Financialassetsmeasuredatfairvaluewithchangesrecognizedincurrentprofitorloss.

Financialliabilitiesareclassifiedintothefollowingfourcategoriesuponinitialrecognition:(1)financialliabilitiesmeasuredatfairvaluewithchangesrecognizedincurrentprofitorloss;(2)Thetransferoffinancialassetsdoesnotmeettheterminationrecognitioncriteriaorcontinuestobeinvolvedinthefinancialliabilitiesformedbythetransferredfinancialassets;(3)Financialguaranteecontractsthatdonotbelongto(1)or(2)above,aswellasloancommitmentsthatdonotbelongto(1)aboveandlendatlowerthanmarketinterestrates;(4)Financialliabilitiesmeasuredatamortizedcost.

2.Recognitioncriteria,measurementmethods,andterminationconditionsforfinancialassetsandfinancialliabilities

(1)Recognitionbasisandinitialmeasurementmethodforfinancialassetsandfinancialliabilities

Whenacompanybecomesapartytoafinancialinstrumentcontract,itrecognizesafinancialassetorfinancialliability.Wheninitiallyrecognizingfinancialassetsorfinancialliabilities,theyaremeasuredatfairvalue;Forfinancialassetsandfinancialliabilitiesmeasuredatfairvaluewithchangesrecognizedincurrentprofitorloss,therelatedtransactioncostsaredirectlyrecognizedincurrentprofitorloss;Forothercategoriesoffinancialassetsorfinancialliabilities,relevanttransactioncostsareincludedintheinitialrecognitionamount.However,iftheinitiallyrecognizedaccountsreceivableofthecompanydonotincludesignificantfinancingcomponentsorthecompanydoesnotconsiderfinancingcomponentsincontractsthathavenotexceededoneyear,theinitialmeasurementshallbebasedonthetransactionpricedefinedinEnterpriseAccountingStandardNo.14-Revenue.

(2)Subsequentmeasurementmethodsforfinancialassets

1)Financialassetsmeasuredatamortizedcost

Adoptingtheeffectiveinterestratemethod,subsequentmeasurementiscarriedoutbasedonamortizedcost.Gainsorlossesarisingfromfinancialassetsmeasuredatamortizedcostthatarenotpartofanyhedgingrelationshiparerecognizedinthecurrentperiod'sprofitorlosswhenderecognized,reclassified,amortizedusingtheeffectiveinterestmethod,orrecognizedforimpairment.

2)Debtinstrumentinvestmentsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome

Adoptfairvalueforsubsequentmeasurement.Interest,impairmentlossesorgains,andexchangegainsorlossescalculatedusingtheeffectiveinterestratemethodarerecognizedinthecurrentperiod'sincomestatement,whileothergainsorlossesarerecognizedinothercomprehensiveincome.Whenterminatingrecognition,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeshallbetransferredfromothercomprehensiveincomeandincludedinthecurrentperiod'sprofitorloss.

3)Equityinstrumentinvestmentsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome

Adoptfairvalueforsubsequentmeasurement.Thedividendsobtained(excludingthosethatbelongtotherecoveryofinvestmentcosts)arerecognizedinthecurrentperiod'sprofitandloss,whileothergainsorlosses

arerecognizedinothercomprehensiveincome.Whenterminatingrecognition,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeshallbetransferredfromothercomprehensiveincomeandrecordedinretainedearnings.

4)FinancialassetsmeasuredatfairvaluewithchangesrecognizedincurrentprofitorlossUsingfairvalueforsubsequentmeasurement,gainsorlosses(includinginterestanddividendincome)arerecognizedinthecurrentperiod'sprofitorloss,unlessthefinancialassetispartofahedgingrelationship.

(3)Subsequentmeasurementmethodsforfinancialliabilities

1)FinancialliabilitiesmeasuredatfairvaluewithchangesrecognizedincurrentprofitorlossThistypeoffinancialliabilityincludestradingfinancialliabilities(includingderivativeinstrumentsbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedtobemeasuredatfairvaluewithchangesrecognizedincurrentprofitorloss.Subsequentmeasurementofsuchfinancialliabilitiesshallbebasedonfairvalue.Thechangeinfairvalueoffinancialliabilitiesdesignatedasmeasuredatfairvaluethroughprofitorlossduetochangesinthecompany'sowncreditriskisrecognizedinothercomprehensiveincome,unlesssuchtreatmentwouldresultinorwidenaccountingmismatchesinprofitorloss.Othergainsorlossesarisingfromsuchfinancialliabilities(includinginterestexpenses,exceptforfairvaluechangescausedbychangesinthecompany'sowncreditrisk)arerecognizedinthecurrentperiod'sprofitorloss,unlessthefinancialliabilityispartofahedgingrelationship.Whenterminatingrecognition,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeshallbetransferredfromothercomprehensiveincomeandrecordedinretainedearnings.

2)Thetransferoffinancialassetsdoesnotmeettheterminationrecognitioncriteriaorcontinuestobeinvolvedinthefinancialliabilitiesformedbythetransferredfinancialassets

MeasurementshallbecarriedoutinaccordancewiththerelevantprovisionsofAccountingStandardsforEnterprisesNo.23-TransferofFinancialAssets.

3)Financialguaranteecontractsthatdonotbelongto1)or2)above,aswellasloancommitmentsthatdonotbelongto1)aboveandareborrowedatlowerthanmarketinterestrates

Afterinitialconfirmation,subsequentmeasurementsshallbemadebasedonthehigherofthefollowingtwoamounts:①Theamountoflossprovisiondeterminedinaccordancewiththeimpairmentprovisionsoffinancialinstruments;②ThebalanceafterdeductingtheaccumulatedamortizationamountdeterminedinaccordancewiththerelevantprovisionsofEnterpriseAccountingStandardNo.14-Revenuefromtheinitialrecognitionamount.

4)Financialliabilitiesmeasuredatamortizedcost

Measureatamortizedcostusingtheeffectiveinterestratemethod.Gainsorlossesarisingfromfinancialliabilitiesmeasuredatamortizedcostandnotpartofanyhedgingrelationshipshallberecognizedinthecurrentperiod'sprofitorlosswhenderecognizedandamortizedusingtheeffectiveinterestmethod.

(4)Terminationrecognitionoffinancialassetsandfinancialliabilities

1)Whenoneofthefollowingconditionsismet,therecognitionoffinancialassetsshallbeterminated:

①Thecontractualrighttoreceivecashflowsfromfinancialassetshasbeenterminated;

②Thefinancialassetshavebeentransferredandthetransfermeetstheprovisionsofthe"EnterpriseAccountingStandardNo.23-TransferofFinancialAssets"regardingtheterminationofrecognitionoffinancialassets.

2)Whenthecurrentobligationsofafinancialliability(oraportionthereof)havebeenreleased,therecognitionofthatfinancialliability(orthatportionofthefinancialliability)shallbeterminatedaccordingly.

3.Recognitioncriteriaandmeasurementmethodsforfinancialassettransfers

Ifthecompanytransfersalmostalltherisksandrewardsofownershipoffinancialassets,therecognitionofthefinancialassetsshallbeterminated,andtherightsandobligationsarisingorretainedinthetransfershallbeseparatelyrecognizedasassetsorliabilities;Retainalmostallrisksandrewardsofownershipoffinancialassets,andcontinuetorecognizethetransferredfinancialassets.Ifthecompanyneithertransfersnorretainsalmostalltherisksandrewardsofownershipoffinancialassets,thefollowingsituationsshallbehandled:(1)Ifthecompanydoesnotretaincontroloverthefinancialasset,therecognitionofthefinancialassetshallbeterminated,andtherightsandobligationsarisingfromorretainedinthetransfershallbeseparatelyrecognizedasassetsorliabilities;(2)Ifcontroloverthefinancialassetisretained,therelevantfinancialassetshallberecognizedbasedonthedegreeofcontinuedinvolvementinthetransferredfinancialasset,andthecorrespondingliabilityshallberecognizedaccordingly.

Iftheoveralltransferoffinancialassetsmeetstheconditionsforderecognition,thedifferencebetweenthefollowingtwoamountsshallberecognizedinthecurrentperiod'sprofitandloss:(1)thebookvalueofthetransferredfinancialassetsonthedateofderecognition;(2)Thesumoftheconsiderationreceivedforthetransferoffinancialassetsandtheamountcorrespondingtothederecognizedportionofthecumulativefairvaluechangesoriginallyrecognizedinothercomprehensiveincome(thefinancialassetsinvolvedinthetransferaredebtinstrumentinvestmentsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome).Ifaportionofafinancialassetistransferredandthetransferredportionmeetstheterminationrecognitioncriteriaasawhole,thebookvalueoftheentirefinancialassetbeforethetransfershallbeamortizedbetweentheterminationrecognitionportionandthecontinuedrecognitionportionbasedontheirrespectiverelativefairvaluesonthetransferdate,andthedifferencebetweenthefollowingtwoamountsshallberecognizedinthecurrentperiod'sprofitandloss:(1)thebookvalueoftheterminationrecognitionportion;(2)Theconsiderationforthederecognizedportionisthesumoftheamountcorrespondingtothederecognizedportioninthecumulativeamountoffairvaluechangesthatwereoriginallydirectlyrecognizedinothercomprehensiveincome(thefinancialassetsinvolvedinthetransferaredebtinstrumentinvestmentsmeasuredatfairvalueandwhosechangesarerecognizedinothercomprehensiveincome).

4.Fairvaluedeterminationmethodforfinancialassetsandfinancialliabilities

Thecompanyadoptsvaluationtechniquesthatareapplicableinthecurrentsituationandsupportedbysufficientavailabledataandotherinformationtodeterminethefairvalueofrelevantfinancialassetsandfinancialliabilities.Thecompanydividestheinputvaluesusedinvaluationtechniquesintothefollowinglevelsandusestheminsequence:

(1)Thefirstlevelinputvalueistheunadjustedquotedpriceofthesameassetorliabilitythatcanbeobtainedonthemeasurementdateinanactivemarket;

(2)Thesecondlevelinputvaluesaredirectlyorindirectlyobservableinputvaluesofrelatedassetsorliabilities,including:quotesofsimilarassetsorliabilitiesinactivemarkets;Quotationofidenticalorsimilarassetsorliabilitiesininactivemarkets;Otherobservableinputvaluesbesidesquotations,suchasinterestratesandyieldcurvesthatcanbeobservedduringnormalquotationintervals;Inputvaluesformarketvalidation,etc;

(3)Thethirdlevelinputvaluesareunobservableinputvaluesofrelatedassetsorliabilities,includinginterestratesthatcannotbedirectlyobservedorverifiedbyobservablemarketdata,stockvolatility,futurecashflowsfromabandonmentobligationsundertakeninbusinessmergers,financialforecastsmadeusingtheirowndata,etc.

5.Impairmentoffinancialinstruments

Basedonexpectedcreditlosses,thecompanyrecognizesimpairmentandrecognizeslossprovisionsforfinancialassetsmeasuredatamortizedcost,debtinstrumentinvestmentsmeasuredatfairvaluewithchangesinfairvaluerecognizedinothercomprehensiveincome,contractassets,leasereceivables,loancommitmentsclassifiedasfinancialliabilitiesmeasuredatfairvaluewithchangesinfairvaluerecognizedincurrentprofitorloss,financialliabilitiesnotmeasuredatfairvaluewithchangesinfairvaluerecognizedincurrentprofitorloss,orfinancialguaranteecontractsthatdonotmeettheterminationcriteriaforthetransferoffinancialassetsorcontinuetobeinvolvedinthetransferredfinancialassets.

Expectedcreditlossreferstotheweightedaverageofcreditlossesoffinancialinstrumentsweightedbytheriskofdefault.Creditlossreferstothedifferencebetweenallcontractcashflowsreceivablebyacompanybasedontheoriginalactualinterestrateandallexpectedcashflowsreceived,thatis,thepresentvalueofallcashshortages.Amongthem,forfinancialassetspurchasedorgeneratedbythecompanythathaveexperiencedcreditimpairment,theyshallbediscountedattheactualinterestrateadjustedforcreditofthefinancialasset.

Forfinancialassetsthathaveundergonecreditimpairmentduetopurchaseororigin,thecompanyonlyrecognizesthecumulativechangesinexpectedcreditlossesovertheentireperiodofexistencesinceinitialrecognitionaslossprovisionsonthebalancesheetdate.

Forleasereceivables,receivablesarisingfromtransactionsregulatedbyEnterpriseAccountingStandardNo.14-Revenue,andcontractassets,thecompanyusessimplifiedmeasurementmethodstomeasurelossprovisionsbasedontheexpectedcreditlossamountequivalenttotheentireduration.

Forfinancialassetsotherthanthosemeasuredusingtheaforementionedmethods,thecompanyevaluatesoneachbalancesheetdatewhethertheircreditriskhassignificantlyincreasedsinceinitialrecognition.Ifthecreditriskhassignificantlyincreasedsinceinitialrecognition,thecompanymeasuresthelossprovisionbasedontheexpectedcreditlossamountthroughouttheentireexistenceperiod;Ifthecreditriskhasnotsignificantlyincreasedsinceinitialrecognition,thecompanymeasuresthelossprovisionbasedontheexpectedcreditlossamountofthefinancialinstrumentinthenext12months.

Thecompanyutilizesavailableandreasonableinformation,includingforward-lookinginformation,todeterminewhetherthecreditriskoffinancialinstrumentshassignificantlyincreasedsinceinitialrecognitionbycomparingtheriskofdefaultonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondate.

Onthebalancesheetdate,ifthecompanydeterminesthatafinancialinstrumenthasonlylowcreditrisk,itisassumedthatthecreditriskofthefinancialinstrumenthasnotsignificantlyincreasedsinceinitialrecognition.

Thecompanyevaluatesexpectedcreditriskandmeasuresexpectedcreditlossesbasedonindividualfinancialinstrumentsorcombinationsoffinancialinstruments.Whenbasedonacombinationoffinancialinstruments,thecompanydividesfinancialinstrumentsintodifferentcombinationsbasedoncommonriskcharacteristics.

Thecompanyremeasuresexpectedcreditlossesoneachbalancesheetdate,andtheincreaseorreversaloflossprovisionsresultingfromthisisrecognizedasimpairmentlossesorgainsinthecurrentperiod'sincomestatement.Forfinancialassetsmeasuredatamortizedcost,theprovisionforlossesisoffsetagainstthecarryingamountofthefinancialassetasshowninthebalancesheet;Fordebtinvestmentsmeasuredatfairvaluewithchangesrecognizedinothercomprehensiveincome,thecompanyrecognizesitslossprovisioninothercomprehensiveincomeanddoesnotoffsetthecarryingamountofthefinancialasset.

6.Offsetoffinancialassetsandfinancialliabilities

Financialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetandarenotoffsetagainsteachother.Ifthefollowingconditionsaremetsimultaneously,thecompanyshallpresentthenetamountafteroffsettingeachotherinthebalancesheet:(1)thecompanyhasthelegalrighttooffsettheconfirmedamount,andthislegalrightiscurrentlyenforceable;(2)Thecompanyplanstosettleonanetbasisorsimultaneouslyrealizethefinancialassetandsettlethefinancialliability.Thecompanyshallnotoffsetthetransferredfinancialassetsandrelatedliabilitiesthatdonotmeettheconditionsforterminationofrecognition.

12.Recognitioncriteriaandprovisionmethodsforexpectedcreditlossesonaccountsreceivableandcontractassets

1.Accrualofexpectedcreditlossesforaccountsreceivableandcontractassetsbasedoncreditriskcharacteristics

2.RecognitioncriteriaforaccountsreceivableandcontractassetswithexpectedcreditlossesbasedonindividualprovisionsForaccountsreceivableandcontractassetswithsignificantlydifferentcreditrisksfromportfoliocreditrisks,thecompanyprovidesexpectedcreditlossesonasinglebasis.

13.Inventory

1.Classificationofinventory

Inventoryincludesdevelopmentlandheldforsaleorconsumptionduringthedevelopmentandoperationprocess,developmentproducts,developmentproductstemporarilyleasedforsale,anddevelopmentcostsincurredduringthedevelopmentprocess.

2.Valuationmethodforissuinginventory

(1)Theissuanceofmaterialsandequipmentadoptstheindividualpricingmethod.

(2)Duringprojectdevelopment,thedevelopmentlandisallocatedandincludedinthedevelopmentcostoftheprojectbasedonthelandareaoccupiedbythedevelopmentproductandthedifferentialcoefficientoftheoccupiedlandparcel.

(3)Developproductsandcalculatethemusingthecostcoefficientallocationmethod.

(4)Developmentproductsandtemporaryrentalpropertiesintendedforsaleshallbeamortizedevenlyovertheexpectedusefullifeofsimilarfixedassetsofthecompany.

(5)Ifthepublicsupportingfacilitiesarecompletedearlierthantherelevantdevelopmentproducts,afterthecompletionsettlementofthepublicsupportingfacilities,theyshallbeallocatedaccordingtothebuildingareaoftherelevantdevelopmentprojectandincludedinthedevelopmentcostoftherelevantdevelopmentproject;Ifthecompletionofpublicsupportingfacilitiesislaterthanthecompletionoftherelevantdevelopmentproducts,therelevantdevelopmentproductsshallfirstprepaythepublicsupportingfacilityfees.Afterthecompletionofthepublicsupportingfacilitiesissettled,therelevantdevelopmentproductcostsshallbeadjustedbasedonthedifferencebetweentheactualamountincurredandtheprovisionedamount.

3.Inventorysystemforinventory

Theinventorysystemforinventoryisperpetualinventorysystem.

4.Amortizationmethodforlowvalueconsumablesandpackagingmaterials

(1)LowvalueconsumablesAmortizeaccordingtothenumberofuses.

(2)PackagingmaterialsAmortizeaccordingtothenumberofuses.

5.ProvisionforinventorydepreciationOnthebalancesheetdate,inventoryismeasuredatthelowerofcostandnetrealizablevalue,andprovisionsforinventoryimpairmentaremadebasedonthedifferencebetweencostandnetrealizablevalue.Thenetrealizablevalueofinventorydirectlyusedforsaleisdeterminedbysubtractingestimatedsalesexpensesandrelatedtaxesfromtheestimatedsellingpriceoftheinventoryinthenormalproductionandoperationprocess;Thenetrealizablevalueofinventorythatneedstobeprocessedisdeterminedbysubtractingtheestimatedcosttobeincurreduntilcompletion,estimatedsalesexpenses,andrelatedtaxesfromtheestimatedsellingpriceofthefinishedproductsproducedinthenormalproductionandoperationprocess;Onthebalancesheetdate,ifaportionofthesameinventoryhasacontractpriceagreementandtheotherportiondoesnothaveacontractprice,itsnetrealizablevalueshallbedeterminedseparatelyandcomparedwithitscorrespondingcosttodeterminetheamountofprovisionorreversalforinventoryimpairment.

14.Longtermequityinvestment

1.Determinationofjointcontrolandsignificantinfluence

Accordingtorelevantagreements,thereiscommoncontroloveracertainarrangement,andtherelatedactivitiesofthearrangementmustbeunanimouslyagreeduponbytheparticipatingpartieswhosharecontrolrightsbeforemakingdecisions,whichisrecognizedasjointcontrol.Havingthepowertoparticipateindecision-makingonthefinancialandoperationalpoliciesoftheinvestedentity,butnotbeingabletocontrolorjointlycontroltheformulationofthesepolicieswithotherparties,isconsideredsignificantinfluence.

2.Determinationofinvestmentcost

(1)Forthemergerofenterprisesunderthesamecontrol,ifthemergingpartypayscash,transfersnoncashassets,assumesdebts,orissuesequitysecuritiesasthemergerconsideration,theinitialinvestmentcostshallbebasedontheshareofthebookvalueoftheacquiredowner'sequityinthefinalcontrollingparty'sconsolidatedfinancialstatementsonthemergerdate.Adjustthecapitalreservebysubtractingtheinitialinvestmentcostoflong-termequityinvestmentfromthebookvalueofthemergerconsiderationpaidorthetotalfacevalueoftheissuedshares;Ifthecapitalreserveisinsufficienttooffset,adjusttheretainedearnings.

Thecompanydetermineswhetherthelong-termequityinvestmentformedbythemergerofenterprisesunderthesamecontrolthroughmultipletransactionsisa"packagedeal".Belongingtoa'packagedeal',alltransactionsareaccountedforasonetransactiontoobtaincontrol.Fortransactionsthatdonotbelongtothe"packagedeal",theinitialinvestmentcostshallbedeterminedonthemergerdatebasedontheshareofthenetassetsofthemergedpartythatshouldbeenjoyedinthefinalcontrollingparty'sconsolidatedfinancialstatementsafterthemerger.Thedifferencebetweentheinitialinvestmentcostofthelong-termequity

investmentonthemergerdateandthebookvalueofthelong-termequityinvestmentbeforethemergerplusthebookvalueoftheconsiderationpaidforfurtheracquisitionofsharesonthemergerdateshallbeadjustedtothecapitalreserve;Ifthecapitalreserveisinsufficienttooffset,adjusttheretainedearnings.

(2)Formergersofenterprisesnotunderthesamecontrol,theinitialinvestmentcostshallbebasedonthefairvalueofthemergerconsiderationpaidonthepurchasedate.Thecompanyrealizeslong-termequityinvestmentsformedbymergersofenterprisesnotunderthesamecontrolthroughmultipletransactions,anddistinguishesbetweenindividualfinancialstatementsandconsolidatedfinancialstatementsforrelevantaccountingtreatment:

1)Insomefinancialstatements,theinitialinvestmentcostiscalculatedusingthecostmethodbasedonthebookvalueoftheequityinvestmentoriginallyheldplustheadditionalinvestmentcost.

2)Intheconsolidatedfinancialstatements,determinewhetheritbelongstoa'packagedeal'.Belongingtoa'packagedeal',alltransactionsareaccountedforasonetransactiontoobtaincontrol.Ifitdoesnotbelongtoa"packagedeal",theequityheldbythepurchasedpartybeforethepurchasedateshallberemeasuredbasedonthefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueshallbeincludedinthecurrentinvestmentincome;Iftheequityofthepurchasedpartyheldbeforethepurchasedateinvolvesothercomprehensiveincomeaccountedforundertheequitymethod,therelatedothercomprehensiveincomeshallbeconvertedintothecurrentincomeonthepurchasedate.Exceptforothercomprehensiveincomearisingfromchangesinnetliabilitiesornetassetsduetotheremeasurementofthebenefitplanbytheinvestee.

(3)Exceptforthoseformedbycorporatemergers:forthoseobtainedbypayingcash,theinitialinvestmentcostshallbebasedontheactualpurchasepricepaid;Forthoseobtainedthroughtheissuanceofequitysecurities,theinitialinvestmentcostshallbebasedonthefairvalueoftheissuedequitysecurities;Ifobtainedthroughdebtrestructuring,theinitialinvestmentcostshallbedeterminedinaccordancewiththeAccountingStandardsforEnterprisesNo.12-DebtRestructuring;Fornonmonetaryassetexchanges,theinitialinvestmentcostshallbedeterminedinaccordancewiththeAccountingStandardsforEnterprisesNo.7-NonmonetaryAssetExchanges.

3.Subsequentmeasurementandprofitandlossrecognitionmethods

Longtermequityinvestmentsthatexercisecontrolovertheinvestedentityareaccountedforusingthecostmethod;Longtermequityinvestmentsinjointventuresandassociatesareaccountedforusingtheequitymethod.

4.Themethodofgraduallydisposingofinvestmentsinsubsidiariesthroughmultipletransactionsuntilthelossofcontrolisachieved

(1)Theprincipleofdeterminingwhetheritbelongstoa"packagedeal"

Ifthecompanydisposesofitsequityinvestmentinasubsidiarythroughmultipletransactionsuntilitlosescontrol,itwilldeterminewhetherthetransactionisa"packagedeal"basedonthetermsofthetransactionagreementforeachstepofthetransaction,thedisposalconsiderationobtained,thetargetoftheequitysale,thedisposalmethod,andthedisposaltimepoint.Iftheterms,conditions,andeconomicimpactofeachtransactionmeetoneormoreofthefollowingsituations,itusuallyindicatesthatmultipletransactionsbelongtoa"packagedeal":

1)Thesetransactionswereenteredintosimultaneouslyortakingintoaccounttheirmutualinfluence;

2)Thesetransactionsasawholearenecessarytoachieveacompletebusinessoutcome;

3)Theoccurrenceofatransactiondependsontheoccurrenceofatleastoneothertransaction;

4)Atransactionalonemaynotbeeconomical,butwhenconsideredtogetherwithothertransactions,itiseconomical.

(2)Accountingtreatmentthatdoesnotbelongtoa'packagedeal'

1)Individualfinancialstatements

Thedifferencebetweenthebookvalueandtheactualacquisitionpriceofthedisposedequityshallberecognizedinthecurrentperiod'sprofitandloss.Fortheremainingequitythatstillhasasignificantimpactontheinvestedentityorisjointlycontrolledwithotherparties,itshallbeaccountedforusingtheequitymethod;Ifitisnolongerpossibletoexercisecontrol,jointcontrol,orsignificantinfluenceovertheinvestedentity,accountingshallbeconductedinaccordancewiththerelevantprovisionsofEnterpriseAccountingStandardNo.22-RecognitionandMeasurementofFinancialInstruments.

2)Consolidatedfinancialstatements

Beforelosingcontrol,thedifferencebetweenthedisposalpriceandthenetassetshareofthesubsidiarythatcorrespondstothedisposaloflong-termequityinvestments,calculatedcontinuouslyfromthedateofpurchaseormerger,shallbeadjustedforcapitalreserves(capitalpremium).Ifthecapitalpremiumisinsufficienttooffset,itshallbeoffsetagainstretainedearnings.

Whenlosingcontroloverasubsidiary,theremainingequityshallberemeasuredatitsfairvalueonthedateoflossofcontrol.Thedifferencebetweentheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequity,minustheshareofnetassetsoftheoriginalsubsidiarythatshouldbecontinuouslycalculatedfromthedateofpurchaseormergerbasedontheoriginalshareholdingratio,shallbeincludedintheinvestmentincomeoftheperiodwhencontrolislost,andatthesametimeoffsetagainstgoodwill.Othercomprehensiveincomerelatedtoequityinvestmentsinexistingsubsidiariesshouldbeconvertedintocurrentinvestmentincomeuponlossofcontrol.

(3)Accountingtreatmentfor'packagedeal'

1)Individualfinancialstatements

Accountingtreatmentofeachtransactionasadisposalofsubsidiaryandlossofcontrol.However,beforelosingcontrol,thedifferencebetweenthedisposalpriceandthebookvalueofthelong-termequityinvestmentcorrespondingtothedisposalinvestmentisrecognizedasothercomprehensiveincomeinindividualfinancialstatementsandtransferredtothecurrentperiod'sprofitorlosswhenlosingcontrol.

2)Consolidatedfinancialstatements

Accountingtreatmentofeachtransactionasadisposalofsubsidiaryandlossofcontrol.However,beforelosingcontrol,thedifferencebetweenthedisposalpriceandthecorrespondingshareofthesubsidiary'snetassetsfromthedisposalinvestmentisrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandtransferredtothecurrentperiod'sprofitorlossuponlossofcontrol.

15.InvestmentorientedrealestateMeasurementModelforInvestmentRealEstateCostbasedmeasurementDepreciationoramortizationmethod

1.Investmentrealestateincludesleasedlanduserights,landuserightsheldandpreparedfortransferafterappreciation,andleasedbuildings.

2.Investmentrealestateisinitiallymeasuredatcostandsubsequentlymeasuredusingthecostmodel.Depreciationoramortizationiscalculatedusingthesamemethodasfixedassetsandintangibleassets.

16.Fixedassets

(1)ConfirmconditionsFixedassetsrefertotangibleassetsheldfortheproductionofgoods,provisionofservices,rentalorbusinessmanagement,withausefullifeexceedingoneaccountingyear.Fixedassetsarerecognizedwhentheyarelikelytogenerateeconomicbenefitsandtheircostscanbereliablymeasured.

(2)Depreciationmethod

17.Constructioninprogress

1.Iftheongoingconstructionprojectislikelytogenerateeconomicbenefitsandthecostcanbereliablymeasured,itshallberecognized.Constructioninprogressismeasuredattheactualcostincurredbeforetheassetreachesitsintendedusablestate.

Whentheconstructioninprogressreachesthepredeterminedusablestate,itshallbetransferredtofixedassetsaccordingtotheactualcostoftheproject.Forthosethathavereachedtheexpectedusablestatebuthavenotyetcompletedthefinalsettlement,theyshallbetransferredtofixedassetsbasedontheirestimatedvalue.Afterthefinalsettlementiscompleted,theoriginalestimatedvalueshallbeadjustedbasedontheactualcost,butthedepreciationalreadyaccruedshallnotbeadjusted.

18.Borrowingcosts

1.RecognitionprincipleforcapitalizationofborrowingcostsTheborrowingcostsincurredbythecompany,whichcanbedirectlyattributedtotheacquisition,constructionorproductionofassetsthatmeetthecapitalizationcriteria,shallbecapitalizedandincludedintherelevantassetcosts;Otherborrowingcostsarerecognizedasexpenseswhenincurredandincludedinthecurrentperiod'sprofitandloss.

2.Capitalizationperiodofborrowingcosts

(1)Whentheborrowingcostsmeetthefollowingconditionssimultaneously,capitalizationbegins:1)Assetexpenditureshavealreadyoccurred;2)Theborrowingcosthasalreadybeenincurred;3)Thenecessarypurchasing,construction,orproductionactivitiestobringtheassetstotheirintendedusableorsaleablestatehavealreadybegun.

(2)Ifassetsthatmeetthecapitalizationcriteriaexperienceabnormalinterruptionsduringtheacquisition,construction,orproductionprocess,andtheinterruptionlastsformorethan3consecutivemonths,thecapitalizationofborrowingcostsshallbesuspended;Theborrowingcostsincurredduringtheinterruptionperiodarerecognizedascurrentexpensesuntiltheacquisitionorproductionactivitiesoftheassetresume.

(3)Whentheassetspurchased,constructedorproducedthatmeetthecapitalizationcriteriareachthepredeterminedusableorsaleablestate,thecapitalizationofborrowingcostsshallcease.

3.CapitalizationrateandamountofborrowingcostsForthosewhoborrowspecialloansforthepurchase,constructionorproductionofassetsthatmeetthecapitalizationcriteria,theamountofinterestthatshouldbecapitalizedshallbedeterminedbysubtractingtheinterestincomeobtainedbydepositingunusedloanfundsintothebankortheinvestmentincomeobtainedfromtemporaryinvestmentsfromtheactualinterestexpensesincurredinthecurrentperiodofthespecialloan(includingtheamortizationofdiscountsorpremiumsdeterminedbytheactualinterestratemethod);Ifageneralloanisusedforthepurchase,construction,orproductionofassetsthatmeetthecapitalizationcriteria,theinterestamountthatshouldbecapitalizedforthegeneralloanshallbecalculatedbymultiplyingtheweightedaverageoftheaccumulatedassetexpendituresexceedingthespecialloanbythecapitalizationrateofthegeneralloanused.

19.Intangibleassets

(1)Servicelifeanditsdeterminationbasis,estimationsituation,amortizationmethodorreviewprocedure

1.Intangibleassetsincludesoftware,landuserights,etc.,whichareinitiallymeasuredatcost.

2.Intangibleassetswithlimitedusefullifeshallbesystematicallyandreasonablyamortizedovertheirusefullifebasedontheexpectedrealizationofeconomicbenefitsrelatedtotheintangibleasset.Iftheexpectedrealizationcannotbereliablydetermined,thestraight-linemethodshallbeusedforamortization.asfollows:

3.Intangibleassetswithuncertainusefullivesarenotamortized,andthecompanyreviewstheusefullifeofsuchintangibleassetsineachaccountingperiod.

(2)ScopeofR&DexpenditurecollectionandrelatedaccountingtreatmentmethodsTheexpensesincurredduringtheresearchphaseofinternalresearchanddevelopmentprojectsarerecognizedinthecurrentperiod'sprofitandloss.Expensesincurredduringthedevelopmentphaseofinternalresearchanddevelopmentprojectsthatmeetthefollowingconditionsarerecognizedasintangibleassets:(1)completionoftheintangibleassettomakeittechnicallyfeasibleforuseorsale;(2)Havingtheintentiontocompletetheintangibleassetanduseorsellit;(3)Thewaysinwhichintangibleassetsgenerateeconomicbenefitsincludebeingabletoprovetheexistenceofamarketfortheproductsproducedusingtheintangibleassetsortheexistenceofamarketfortheintangibleassetsthemselves.Iftheintangibleassetswillbeusedinternally,theirusefulnesscanbeproven;(4)Havingsufficienttechnical,financial,andotherresourcestosupportthedevelopmentoftheintangibleasset,andhavingtheabilitytouseorselltheintangibleasset;(5)Theexpensesattributabletothedevelopmentstageoftheintangibleassetcanbereliablymeasured.

20.Impairmentoflong-termassets

Forlong-termequityinvestments,investmentpropertiesmeasuredusingthecostmodel,fixedassets,constructioninprogress,rightofuseassets,intangibleassetswithlimitedusefullives,andotherlong-termassets,ifthereareindicationsofimpairmentonthebalancesheetdate,estimatetheirrecoverableamount.Forintangibleassetswithuncertaingoodwillandusefulliferesultingfrombusinessmergers,impairmenttestsareconductedannually,regardlessofwhethertherearesignsofimpairment.Conductimpairmenttestingongoodwillincombinationwithitsrelatedassetgroupsorcombinationsofassetgroups.

Iftherecoverableamountoftheabove-mentionedlong-termassetsislowerthantheirbookvalue,theimpairmentprovisionforassetsshallberecognizedbasedonthedifferenceandincludedinthecurrentperiod'sprofitandloss.

21.LongtermdeferredexpensesLongtermdeferredexpenseshavebeenaccountedforandamortizedoveraperiodofmorethanoneyear(excludingoneyear).Longtermdeferredexpensesarerecordedbasedontheactualamountincurredandamortizedevenlyoverthebenefitperiodorspecifiedperiod.Ifthelong-termdeferredexpenseitemcannotbenefitfutureaccountingperiods,theamortizedvalueoftheitemthathasnotbeenamortizedwillbefullytransferredtothecurrentperiod'sprofitandloss.

22.Employeecompensation

(1)Accountingtreatmentmethodsforshort-termcompensationDuringtheaccountingperiodwhenemployeesprovideservicestothecompany,theactualshort-termcompensationincurredisrecognizedasaliabilityandincludedinthecurrentperiod'sprofitorlossorrelatedassetcosts.

(2)Accountingtreatmentmethodforpostemploymentbenefits

Postemploymentbenefitsaredividedintodefinedcontributionplansanddefinedbenefitplans.

(1)Duringtheaccountingperiodwhenemployeesprovideservicestothecompany,thepayableamountcalculatedbasedontheestablisheddepositplanisrecognizedasaliabilityandincludedinthecurrentperiod'sprofitorlossorrelatedassetcosts.

(2)Theaccountingtreatmentforsettingbenefitplansusuallyincludesthefollowingsteps:

1)Accordingtotheexpectedcumulativewelfareunitmethod,unbiasedandmutuallyconsistentactuarialassumptionsareusedtoestimatedemographicandfinancialvariables,measuretheobligationsarisingfromthedefinedbenefitplan,anddeterminetheperiodtowhichtherelevantobligationsbelong.Atthesametime,theobligationsarisingfromthedefinedbenefitplanarediscountedtodeterminethepresentvalueandcurrentservicecostsofthedefinedbenefitplanobligations;

2)Ifthereareassetsinthedefinedbenefitplan,thedeficitorsurplusformedbysubtractingthefairvalueofthedefinedbenefitplanassetsfromthepresentvalueofthedefinedbenefitplanobligationsshallberecognizedasanetliabilityornetassetofthedefinedbenefitplan.Ifthereisasurplusinthedefinedbenefitplan,thenetassetsofthedefinedbenefitplanshallbemeasuredbythelowerofthesurplusandtheassetlimitofthedefinedbenefitplan;

3)Attheendoftheperiod,theemployeecompensationcostsgeneratedbythedefinedbenefitplanwillberecognizedasthreeparts:servicecosts,netinterestonnetliabilitiesorassetsofthedefinedbenefitplan,andchangesarisingfromtheremeasurementofnetliabilitiesorassetsofthedefinedbenefitplan.Theservicecostsandnetinterestonnetliabilitiesorassetsofthedefinedbenefitplanwillbeincludedinthecurrentperiod'sprofitorlossorrelatedassetcosts,whilechangesarisingfromtheremeasurementofnetliabilitiesorassetsofthedefinedbenefitplanwillbeincludedinothercomprehensiveincomeandwillnotbeallowedtobereversedtoprofitorlossinsubsequentaccountingperiods.However,theseamountsrecognizedinothercomprehensiveincomecanbetransferredwithinthescopeofequity.

(3)Accountingtreatmentmethodsforterminationbenefits

Theterminationbenefitsprovidedtoemployeesshallberecognizedasemployeecompensationliabilitiesandincludedinthecurrentperiod'sprofitandlossattheearlierofthefollowingtwodates:(1)Whenthecompanycannotunilaterallywithdrawtheterminationbenefitsprovidedduetotheterminationoflabor

relationsplanorlayoffproposal;(2)Whenthecompanyconfirmsthecostsorexpensesrelatedtotherestructuringinvolvingthepaymentofterminationbenefits.

(4)Accountingtreatmentmethodsforotherlong-termemployeebenefits

Otherlong-termbenefitsprovidedtoemployeesthatmeettheconditionsofthedesignatedcontributionplanshallbeaccountedforinaccordancewiththerelevantprovisionsofthedesignatedcontributionplan;Otherlong-termbenefitsshallbeaccountedforinaccordancewiththerelevantprovisionsofthedefinedbenefitplan.Inordertosimplifytherelevantaccountingtreatment,theemployeecompensationcostsincurredshallberecognizedasservicecosts,netinterestonotherlong-termemployeebenefitsnetliabilitiesornetassets,andthetotalnetamountofchangesarisingfromtheremeasurementofotherlong-termemployeebenefitsnetliabilitiesornetassetsshallbeincludedinthecurrentperiod'sprofitandlossorrelatedassetcosts.

23.AccountingmethodformaintenancefundAccordingtotherelevantregulationsofthelocationwherethedevelopmentprojectislocated,themaintenancefundshallbecollectedfromthebuyerorincludedinthedevelopmentcostofthedevelopmentproductbythecompanyduringthesales(pre-sale)ofthedevelopmentproduct,andshallbeuniformlyhandedovertothemaintenancefundmanagementdepartment.

24.AccountingmethodforqualityguaranteedepositThequalityguaranteedepositshallbereservedfromtheconstructionunit'sprojectfundsinaccordancewiththeprovisionsoftheconstructioncontract.Themaintenancecostsincurredduringthewarrantyperiodofthedevelopedproductshallbeoffsetagainstthequalityguaranteedeposit;Upontheexpirationofthewarrantyperiodagreeduponforproductdevelopment,thebalanceofthequalityguaranteedepositshallberefundedtotheconstructionunit.

25.IncomeDiscloseaccountingpoliciesusedforrevenuerecognitionandmeasurementbasedonbusinesstype

1.Principleofrevenuerecognition

Onthecommencementdateofthecontract,thecompanyevaluatesthecontract,identifieseachindividualperformanceobligationincludedinthecontract,anddetermineswhethereachindividualperformanceobligationistobefulfilledduringacertainperiodoftimeoratacertainpointintime.

Whenoneofthefollowingconditionsismet,itisconsideredtohavefulfilledtheperformanceobligationwithinacertainperiodoftime;otherwise,itisconsideredtohavefulfilledtheperformanceobligationatacertainpointintime:(1)Thecustomerobtainsandconsumestheeconomicbenefitsbroughtbythecompany'sperformanceatthesametimeasthecompany'sperformance;(2)Customersareabletocontrolthegoodsunderconstructionduringthecompany'sperformanceprocess;(3)Thegoodsproducedbythecompanyduringtheperformanceprocesshaveirreplaceableuses,andthecompanyhastherighttocollectpaymentsforthecompletedperformanceportionthroughouttheentirecontractperiod.

Forperformanceobligationsfulfilledduringacertainperiodoftime,thecompanyrecognizesrevenuebasedontheprogressofperformanceduringthatperiod.Whentheprogressofperformancecannotbereasonablydeterminedandthecostsalreadyincurredareexpectedtobecompensated,revenueshallberecognizedbasedontheamountofcostsalreadyincurreduntiltheprogressofperformancecanbereasonablydetermined.Forperformanceobligationsfulfilledatacertainpointintime,revenueisrecognizedatthepointwhenthecustomerobtainscontroloftherelevantgoodsorservices.Whendeterminingwhetherthecustomerhasobtainedcontroloftheproduct,thecompanyconsidersthefollowingsigns:(1)thecompanyhastherighttoreceivepaymentfortheproductatpresent,thatis,thecustomerhasacurrentpaymentobligationfortheproduct;(2)Thecompanyhastransferredthelegalownershipoftheproducttothecustomer,meaningthatthecustomeralreadyownsthelegalownershipoftheproduct;(3)Thecompanyhastransferredthephysicalitemtothecustomer,meaningthatthecustomerhastakenpossessionoftheitem;(4)Thecompanyhastransferredthemainrisksandrewardsofownershipoftheproducttothecustomer,meaningthatthecustomerhasacquiredthemainrisksandrewardsofownershipoftheproduct;(5)Thecustomerhasacceptedtheproduct;(6)Othersignsindicatingthatthecustomerhasgainedcontroloftheproduct.

2.Principlesofincomemeasurement

(1)Thecompanymeasuresrevenuebasedonthetransactionpriceallocatedtoeachindividualperformanceobligation.Thetransactionpriceistheexpectedamountofconsiderationthatthecompanyisentitledtoreceivefortransferringgoodsorservicestocustomers,excludingpaymentscollectedonbehalfofthirdpartiesandexpectedrefundstocustomers.

(2)Ifthereisavariableconsiderationinthecontract,thecompanyshalldeterminethebestestimateofthevariableconsiderationbasedontheexpectedvalueorthemostlikelyamounttooccur,butthetransactionpriceincludingthevariableconsiderationshallnotexceedtheamountthatisunlikelytobesignificantlyreversedwhentherelevantuncertaintyiseliminated.

(3)Ifthereisasignificantfinancingcomponentinthecontract,thecompanydeterminesthetransactionpricebasedontheassumedpayableamountpaidincashbythecustomeruponobtainingcontrolofthegoodsorservices.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedusingtheeffectiveinterestmethodduringthecontractperiod.

(4)Ifthecontractcontainstwoormoreperformanceobligations,thecompanyshall,onthecommencementdateofthecontract,allocatethetransactionpricetoeachindividualperformanceobligationbasedontherelativeproportionoftheindividualsellingpriceofthepromisedgoodsforeachindividualperformanceobligation.

3.Specificmethodsforrevenuerecognition

(1)Specificmethodsforrecognizingsalesrevenuefromrealestatedevelopment

Thecompany'srealestatesalesbusinessisacontractualobligationtobefulfilledatacertainpointintime.Whenthedevelopmentoftheproducthasbeencompletedandacceptedasqualified,asalescontracthasbeensignedandtheobligationsstipulatedinthecontracthavebeenfulfilled,anoticeorannouncementofoccupancyhasbeenissuedtotheowner,andtheactualdeliveryofthepropertyortheagreeddeliverydateinthecontracthasexpired,fullpaymenthasbeenreceived,andtherelevantcostsincurredortobeincurredcanbereliablymeasured,therealizationofsalesrevenueisrecognized.

(2)ProvidespecificmethodsforrecognizingpropertyservicerevenueTheprovisionofpropertymanagementservicesbythecompanyisacontractualobligationtobefulfilledwithinacertainperiodoftime,andrevenueisrecognizedbasedontheprogressoftheperformance.Thecompanydeterminestheperformancescheduleofprovidingservicesaccordingtothetimeschedule.

(3)MethodforrecognizingconstructionrevenueThecompanyprovidesconstructionengineeringservices,andasthecustomerobtainsandconsumestheeconomicbenefitsbroughtbythecompany'sperformanceatthesametimeasthecompany'sperformance,andthecompanyhastherighttocollectpaymentsforthecompletedperformanceportionthroughoutthecontractperiod,thecompanyconsidersitasaperformanceobligationtobefulfilledduringacertainperiodoftime,andrecognizesrevenueaccordingtotheperformanceprogress,exceptforsituationswheretheperformanceprogresscannotbereasonablydetermined.Thecompanydeterminestheperformanceprogressofprovidingservicesaccordingtotheinvestmentmethod.Whentheperformanceschedulecannotbereasonablydetermined,ifthecompany'sincurredcostsareexpectedtobecompensated,revenueshallberecognizedbasedontheamountofincurredcostsuntiltheperformanceschedulecanbereasonablydetermined.

(4)OtherrevenuerecognitionmethodsOtherincomeincludeshoteloperatingincome,etc.Forhotelroomincome,ascustomersobtainandconsumetheeconomicbenefitsbroughtbythecompany'sperformanceatthesametimeasthecompany'sperformance,thecompanyconsidersitasaperformanceobligationtobefulfilledduringacertainperiodoftime,andrecognizesincomeaccordingtotheperformanceprogressduringtheaccountingperiodinwhichtheserviceisprovided.Forotherincome,accordingtotheprovisionsofrelevantcontractsandagreements,therealizationofincomeisrecognizedwhenthecustomerobtainscontroloftherelevantgoods,therelevantpaymentshavebeenreceivedortherighttoreceivepaymentshasbeenobtained.

ThesituationwheresimilarbusinessesadoptdifferentbusinessmodelsinvolvingdifferentrevenuerecognitionandmeasurementmethodsNotapplicable.

26.Contractcost

Theincrementalcostsincurredbythecompanytoobtaincontractsthatareexpectedtoberecoveredarerecognizedascontractacquisitioncostsasanasset.

Ifthecostincurredbythecompanyinfulfillingacontractdoesnotfallwithinthescopeofrelevantstandardssuchasinventory,fixedassets,orintangibleassets,andmeetsthefollowingconditionssimultaneously,itshallberecognizedasanassetascontractperformancecost:

1.Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingcosts(orsimilarcosts),costsexplicitlybornebythecustomer,andothercostsincurredsolelyduetothecontract;

2.Thiscostincreasestheresourcesthatthecompanywillhavetofulfillitscontractualobligationsinthefuture;

3.Thecostisexpectedtoberecovered.

Thecompanyamortizesassetsrelatedtocontractcostsonthesamebasisastherecognitionofrevenuefromgoodsorservicesrelatedtotheasset,andrecordsitinthecurrentperiod'sprofitorloss.Ifthebookvalueofassetsrelatedtocontractcostsishigherthantheremainingconsiderationexpectedtobeobtainedfromthetransferofgoodsorservicesrelatedtotheassetminustheestimatedcoststobeincurred,thecompanyshallmakeanimpairmentprovisionfortheexcessandrecognizeitasanassetimpairmentloss.Ifthefactorsthatcausedimpairmentinpreviousperiodschange,resultingintheexpectedremainingconsiderationforthegoodsorservicesrelatedtothetransferoftheassetminustheestimatedcoststobeincurredbeinghigherthanthecarryingamountoftheasset,theoriginalprovisionforimpairmentoftheassetshallbereversedandincludedinthecurrentperiod'sprofitandloss,butthereversedcarryingamountoftheassetshallnotexceedthecarryingamountoftheassetonthereversaldateassumingnoprovisionforimpairment.

27.Contractassetsandcontractliabilities

Thecompanylistscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweenfulfillingperformanceobligationsandcustomerpayments.Thecompanywilloffsetthecontractassetsandcontractliabilitiesunderthesamecontractandpresentthemasanetamount.

Thecompanywilllisttheunconditional(i.e.,onlydependentonthepassageoftime)righttoreceiveconsiderationfromcustomersasaccountsreceivable,andtherighttoreceiveconsiderationforgoodstransferredtocustomers(whichdependsonfactorsotherthanthepassageoftime)ascontractassets.Thecompanypresentstheobligationtotransfergoodstocustomersforconsiderationreceivedorreceivableasacontractualliability.

28.Governmentsubsidies

1.Governmentsubsidiesarerecognizedwhenthefollowingconditionsaremetsimultaneously:(1)thecompanyisabletomeettheconditionsattachedtothegovernmentsubsidy;(2)Thecompanycanreceivegovernmentsubsidies.Ifgovernmentsubsidiesaremonetaryassets,theyshallbemeasuredbasedontheamountreceivedorreceivable.Ifgovernmentsubsidiesarenonmonetaryassets,theyshallbemeasuredatfairvalue;Iffairvaluecannotbereliablyobtained,itshallbemeasuredatnominalamount.

2.Basisfordetermininggovernmentsubsidiesrelatedtoassetsandaccountingtreatmentmethods

Governmentdocumentsstipulatethatgovernmentsubsidiesusedforthepurchase,construction,orotherformationoflong-termassetsareclassifiedasassetrelatedgovernmentsubsidies.Ifthegovernmentdocumentsareunclear,thejudgmentshallbebasedonthebasicconditionsthatmustbemettoobtainthesubsidy,andifthebasicconditionistheformationoflong-termassetsthroughpurchase,constructionorothermeans,itshallberegardedasagovernmentsubsidyrelatedtoassets.Governmentsubsidiesrelatedtoassetsareoffsetagainstthebookvalueoftherelevantassetsorrecognizedasdeferredincome.Ifgovernmentsubsidiesrelatedtoassetsarerecognizedasdeferredincome,theyshallberecognizedinprofitorlossinareasonableandsystematicmannerovertheusefullifeoftherelevantassets.Governmentsubsidiesmeasuredinnominalamountsaredirectlyrecognizedinthecurrentperiod'sprofitandloss.Iftherelevantassetsaresold,transferred,scrappedordamagedbeforetheendoftheirusefullife,theundistributeddeferredincomebalanceshallbetransferredtothecurrentprofitandlossofassetdisposal.

3.BasisfordetermininggovernmentsubsidiesrelatedtoincomeandaccountingtreatmentmethodsGovernmentsubsidiesotherthanthoserelatedtoassetsareclassifiedasincomerelatedgovernmentsubsidies.Forgovernmentsubsidiesthatincludebothassetrelatedandincomerelatedparts,itisdifficulttodistinguishbetweenthoserelatedtoassetsorincome,andtheyaregenerallyclassifiedasincomerelatedgovernmentsubsidies.Governmentsubsidiesrelatedtoincome,usedtocompensateforrelatedcosts,expensesorlossesinfutureperiods,arerecognizedasdeferredincome.Duringtheperiodinwhichrelatedcosts,expensesorlossesarerecognized,theyareincludedinthecurrentperiod'sprofitorlossoroffsetagainstrelatedcosts;Forcompensationofrelatedcostsorlossesthathavealreadyoccurred,theyshallbedirectlyrecordedinthecurrentperiod'sprofitandlossoroffsetagainstrelatedcosts.

4.Governmentsubsidiesrelatedtothedailybusinessactivitiesofthecompanyshallbeincludedinotherincomeoroffsetagainstrelatedcostsandexpensesaccordingtotheessenceofeconomicbusiness.Governmentsubsidiesunrelatedtothedailyactivitiesofthecompanyshallbeincludedinnonoperatingincomeandexpenses.

5.Accountingtreatmentmethodsforpolicybasedpreferentialloaninterestsubsidies

(1)Thefinancedepartmentwillallocatetheinterestsubsidyfundstothelendingbank.Ifthelendingbankprovidesloanstothecompanyatapolicypreferentialinterestrate,theactualreceivedloanamountwillbeusedastheentryvalueoftheloan,andtherelevantloancostswillbecalculatedbasedontheloanprincipalandthepolicypreferentialinterestrate.

(2)Ifthefinancedepartmentdirectlydisbursestheinterestsubsidyfundstothecompany,thecorrespondinginterestsubsidywillbeoffsetagainsttherelevantborrowingcosts.

29.Deferredtaxassets/deferredtaxliabilities

1.Basedonthedifferencebetweenthebookvalueofassetsandliabilitiesandtheirtaxbase(foritemsthatarenotrecognizedasassetsorliabilitiesandwhosetaxbasecanbedeterminedaccordingtotaxlaws,thedifferencebetweenthetaxbaseandtheirbookvalue),deferredincometaxassetsordeferredincometaxliabilitiesarerecognizedbycalculatingtheapplicabletaxrateduringtheexpectedperiodofassetrecoveryorliabilitysettlement.

2.Therecognitionofdeferredtaxassetsislimitedtothetaxableincomethatislikelytobeobtainedtooffsetdeductibletemporarydifferences.Onthebalancesheetdate,ifthereisconclusiveevidenceindicatingthatsufficienttaxableincomeislikelytobeobtainedinfutureperiodstooffsetdeductibletemporarydifferences,deferredtaxassetsnotrecognizedinpreviousaccountingperiodsshallberecognized.

Onthebalancesheetdate,thecarryingamountofdeferredtaxassetsshallbereviewed.Ifitislikelythatsufficienttaxableincomewillnotbeobtainedinthefuturetooffsetthebenefitsofdeferredtaxassets,thecarryingamountofdeferredtaxassetsshallbereduced.Whenitislikelytoobtainsufficienttaxableincome,reversetheamountofwritedown.

4.Thecurrentincometaxanddeferredincometaxofthecompanyarerecognizedasincometaxexpensesorgainsinthecurrentperiod'sprofitandloss,butdonotincludeincometaxarisingfromthefollowingsituations:(1)businesscombination;(2)Transactionsoreventsdirectlyrecognizedinowner'sequity.Whenthefollowingconditionsaremetsimultaneously,thecompanywillpresentthenetamountofdeferredincometaxassetsanddeferredincometaxliabilitiesafteroffsetting:(1)ithasthelegalrighttosettlecurrentincometaxassetsandcurrentincometaxliabilitiesonanetbasis;(2)Deferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtoincometaxleviedbythesametaxcollectionandmanagementdepartmentonthesametaxpayerorondifferenttaxpayers,butinthefuture,duringeachsignificantperiodofreversalofdeferredincometaxassetsanddeferredincometaxliabilities,thetaxpayersinvolvedintendtosettlethecurrentincometaxassetsandcurrentincometaxliabilitiesonanetbasisorsimultaneouslyacquireassetsandsettledebts.

30.Leasing

(1)Accountingtreatmentmethodforleasingasalessee

Onthecommencementdateoftheleaseterm,thecompanyrecognizesleasesthatdonotexceed12monthsanddonotincludepurchaseoptionsasshort-termleases;Leaseswithlowervaluewhenasingleleasedassetisabrandnewassetarerecognizedaslowvalueassetleases.Ifacompanysubleasesoranticipatessubleasingleasedassets,theoriginalleaseshallnotberecognizedasalowvalueassetlease.

Forallshort-termleasesandleasesoflowvalueassets,thecompanywillincludetheleasepaymentsintherelevantassetcostsorcurrentprofitandlossusingthestraight-linemethodduringeachperiodoftheleaseterm.

Exceptfortheshort-termleasesandlowvalueassetleasesthatadoptsimplifiedtreatmentasmentionedabove,thecompanyrecognizestherightofuseassetsandleaseliabilitiesforleasesontheleasecommencementdate.

(1)RightofUseAssets

Theinitialmeasurementofrightofuseassetsisbasedoncost,whichincludes:1)theinitialmeasurementamountofleaseliabilities;2)Ifthereisaleaseincentivefortheleasepaymentmadeonorbeforethestartdateoftheleaseterm,therelevantamountoftheleaseincentivealreadyenjoyedshallbededucted;3)Theinitialdirectexpensesincurredbythelessee;4)Thelesseeisexpectedtoincurthecostofdismantlingandremovingtheleasedasset,restoringtheleasedasset'slocation,orrestoringtheleasedassettothestatespecifiedintheleaseterms.

Thecompanydepreciatestherightofuseassetsusingthestraight-linemethod.Iftheownershipoftheleasedassetcanbereasonablydeterminedupontheexpirationoftheleaseterm,thecompanyshalldepreciatetheleasedassetoveritsremainingusefullife.Ifitcannotbereasonablydeterminedthatownershipoftheleasedassetwillbeobtainedupontheexpirationoftheleaseterm,thecompanyshalldepreciatetheleasedassetduringtheshorteroftheleasetermandtheremainingusefullifeoftheleasedasset.

(2)Leaseliabilities

Onthecommencementdateoftheleaseterm,thecompanyrecognizesthepresentvalueofunpaidleasepaymentsasaleaseliability.Whencalculatingthepresentvalueofleasepayments,theimplicitinterestrateoftheleaseisusedasthediscountrate.Iftheimplicitinterestrateoftheleasecannotbedetermined,theincrementalborrowingrateofthecompanyisusedasthediscountrate.Thedifferencebetweentheleasepaymentamountanditspresentvalueisrecognizedasunrecognizedfinancingexpenses,andinterestexpensesarerecognizedatthediscountrateoftherecognizedpresentvalueoftheleasepaymentamountduringeachperiodoftheleasetermandincludedinthecurrentperiod'sprofitandloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesarerecognizedinthecurrentperiod'sincomestatementwhentheyactuallyoccur.

Afterthecommencementdateoftheleaseterm,whenthereisachangeintheactualfixedpaymentamount,achangeintheexpectedpayableamountoftheguaranteeresidualvalue,achangeintheindexorratiousedtodeterminetheleasepaymentamount,achangeintheevaluationresultsoractualexerciseofthepurchaseoption,renewaloptionorterminationoption,thecompanyshallremeasuretheleaseliabilitybasedonthepresentvalueofthechangedleasepaymentamountandadjustthebookvalueoftherightofuseassetaccordingly.Ifthebookvalueoftherightofuseassethasbeenreducedtozero,buttheleaseliabilitystillneedstobefurtherreduced,theremainingamountshallbeincludedinthecurrentprofitandloss.

(2)Accountingtreatmentmethodforleasingasalessor

Onthecommencementdateofthelease,thecompanyclassifiesleasesthathaveessentiallytransferredalmostallrisksandrewardsrelatedtotheownershipoftheleasedassetasfinanceleases,whileallotherleasesareoperatingleases.

(1)Operatinglease

Thecompanyrecognizestheleasereceiptsasrentalincomeusingthestraight-linemethodduringeachperiodoftheleaseterm.Theinitialdirectexpensesincurredarecapitalizedandamortizedonthesamebasisastherecognitionofrentalincome,andarerecordedinthecurrentperiod'sprofitandlossininstallments.Variableleasepaymentsrelatedtooperatingleasesobtainedbythecompanythatarenotincludedinleasereceiptsarerecognizedinthecurrentperiod'sprofitandlosswhentheyactuallyoccur.

(2)Financialleasing

Onthecommencementdateoftheleaseterm,thecompanyrecognizesthereceivablefinancingleasepaymentsbasedonthenetamountoftheleaseinvestment(thesumoftheunsecuredresidualvalueandthepresentvalueoftheleasereceiptsnotyetreceivedonthecommencementdatediscountedattheleaseimplicitinterestrate),andterminatestherecognitionoffinancingleaseassets.Duringeachperiodoftheleaseterm,thecompanycalculatesandrecognizesinterestincomebasedontheimplicitinterestrateofthelease.Thevariableleasepaymentsobtainedbythecompanythatarenotincludedinthenetmeasurementofleaseinvestmentsarerecognizedinthecurrentperiod'sprofitandlosswhentheyactuallyoccur.

31.DivisionreportThecompanydeterminesitsoperatingdivisionsbasedoninternalorganizationalstructure,managementrequirements,andinternalreportingsystems.Theoperatingdivisionsofacompanyrefertothecomponentsthatsimultaneouslymeetthefollowingconditions:

1.Thiscomponentcangenerateincomeandincurexpensesindailyactivities;

2.Themanagementcanregularlyevaluatetheoperatingresultsofthiscomponenttodeterminetheallocationofresourcesandevaluateitsperformance;

3.Abletoobtainrelevantaccountinginformationsuchasfinancialstatus,operatingresults,andcashflowsofthecomponentthroughanalysis.

32.Changesinsignificantaccountingpoliciesandestimates

(1)Significantchangesinaccountingpolicies

□Applicable?NotApplicable

(2)Significantchangesinaccountingestimates

□Applicable?NotApplicable

(3)Startingfrom2025,thefirstimplementationofthenewaccountingstandardswilladjustthefinancialstatementsrelatedtotheitemsatthebeginningoftheyear

□Applicable?NotApplicable

、Taxation

1.Maintaxtypesandtaxrates

Disclosureexplanationfortaxpayerswithdifferentcorporateincometaxrates

2.Taxincentives

AccordingtotheAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherSupportingtheDevelopmentofSmallandMicroEnterprisesandIndividualIndustrialandCommercialHouseholdsRegardingTaxPolicies(AnnouncementNo.12of2023oftheMinistryofFinanceandtheStateAdministrationofTaxation),theportionofannualtaxableincomeofsmallandmicroprofitenterprisesthatdoesnotexceed1millionyuanshallbereducedby25%andincludedinthetaxableincome,andshallbesubjecttoenterpriseincometaxatarateof20%.TheexecutionperiodisfromJanuary1,2023toDecember31,2027.OursubsidiaryHuazhanSupervisionandShantouSongshanCompanyaresubjecttoapreferentialtaxrateof20%forsmallandmicroprofitenterprisesintermsofcorporateincometaxrate.

3.OtherNotapplicable.

7、AnnotationstoConsolidatedFinancialStatementItems

1.Monetaryfunds

Unit:Yuan

OtherinstructionsAttheendoftheperiod,therewererestrictedfundsof6,084,195.55yuaninbankdeposits,ofwhich58,428.69yuanwasfrozenfundsduetolitigation,158,549.08yuanwassuspendedfromaccountsandpayments,5,674,439.78yuanwasconstructionfundsforpublicfacilitiesprojectsinandaroundLonggangDistrict,Shenzhen,142,778.00yuanwaslandreclamationcostsfortheShenzhenGuangmingliproject,and50,000.00yuanwasafixed-termengineeringdeposit.Attheendoftheperiod,othermonetaryfundsof38,444,828.75yuanweresevendaynoticedeposits.

2.Tradingfinancialassets

Unit:Yuan

Otherinstructions

3.Notesreceivable

(1)Classificationandpresentationofaccountsreceivable

Unit:Yuan

(2)Classifieddisclosurebasedonbaddebtprovisionmethod

Unit:Yuan

Iftheprovisionforbaddebtsofaccountsreceivableismadeaccordingtothegeneralmodelofexpectedcreditlosses:

□Applicable?NotApplicable

(3)Provisionforbaddebtsaccrued,recoveredorreversedinthisperiod

Provisionforbaddebtsinthisperiod:

Unit:Yuan

Amongthem,theamountofbaddebtprovisionrecoveredorreversedinthisperiodissignificant:

□Applicable?NotApplicable

(4)Accountsreceivablepledgedbythecompanyattheendoftheperiod

Unit:Yuan

(5)Accountsreceivablethathavebeenendorsedordiscountedbythecompanyattheendoftheperiodandhavenotyetmaturedonthebalancesheetdate

Unit:Yuan

(6)Actualwriteoffofaccountsreceivableinthisperiod

Unit:Yuan

Importantaccountsreceivablewriteoffstatus:

Unit:Yuan

Explanationforwritingoffaccountsreceivable:

4.Accountsreceivable

(1)Disclosurebyaging

Unit:Yuan

(2)Classifieddisclosurebasedonbaddebtprovisionmethod

Unit:Yuan

Categorynameforsingleprovisionforbaddebts:Accountsreceivablewithsignificantsingleprovisionforbaddebts

Unit:Yuan

Categorynameforprovisionforbaddebtsbycombination:Accountsreceivablewithprovisionforbaddebtsbycombination

Unit:Yuan

Explanationfordeterminingthebasisofthiscombination:

Iftheprovisionforbaddebtsofaccountsreceivableismadeaccordingtothegeneralmodelofexpectedcreditlosses:

□Applicable?NotApplicable

(3)Provisionforbaddebtsaccrued,recoveredorreversedinthisperiodProvisionforbaddebtsinthisperiod:

Unit:Yuan

Amongthem,theamountofbaddebtprovisionrecoveredorreversedinthisperiodissignificant:

Unit:Yuan

(4)Accountsreceivableactuallywrittenoffinthisperiod

Unit:Yuan

Importantaccountsreceivablewriteoffsituationsinclude:

Unit:Yuan

Accountsreceivablewriteoffinstructions:

(5)Accountsreceivableandcontractassetsofthetopfiveendingbalancescollectedbydebtor

Unit:Yuan

5.Contractassets

(1)Contractassetsituation

Unit:Yuan

(2)Significantchangesinbookvalueandreasonsduringthereportingperiod

Unit:Yuan

(3)Classifieddisclosurebasedonbaddebtprovisionmethod

Unit:Yuan

Categorynameforprovisionforbaddebtsbycombination:Contractassetswithprovisionforbaddebtsbycombination

Unit:Yuan

Explanationfordeterminingthebasisofthiscombination:

Provisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses

□Applicable?NotApplicable

(4)Provisionforbaddebtsaccrued,recoveredorreversedinthisperiod

Unit:Yuan

Amongthem,theamountofbaddebtprovisionrecoveredorreversedinthisperiodissignificant:

Unit:Yuan

Otherinstructions

(5)Theactualwrittenoffcontractassetsinthisperiod

Unit:Yuan

Verificationofimportantcontractassets

Unit:Yuan

ExplanationofContractAssetVerification:

Otherinstructions:

6.Otherreceivables

Unit:Yuan

(1)Interestreceivable

1)Classificationofaccruedinterest

Unit:Yuan

2)Importantoverdueinterest

Unit:Yuan

Otherinstructions:

3)Classifieddisclosurebasedonbaddebtprovisionmethod

□Applicable?NotApplicable

4)Thesituationofbaddebtprovisionsprovisioned,recoveredorreversedinthisperiod

Unit:Yuan

Amongthem,theamountofbaddebtprovisionrecoveredorreversedinthisperiodissignificant:

Unit:Yuan

Otherinstructions:

5)Actualwriteoffofaccruedinterestinthisperiod

Unit:Yuan

Thesignificantwriteoffofaccruedinterestamongthem

Unit:Yuan

Verificationinstructions:

Otherinstructions:

(2)Dividendsreceivable

1)Classificationofdividendsreceivable

Unit:Yuan

2)Importantdividendsreceivablewithanagingofover1year

Unit:Yuan

3)Classifieddisclosurebasedonbaddebtprovisionmethod

□Applicable?NotApplicable

4)Thesituationofbaddebtprovisionsprovisioned,recoveredorreversedinthisperiod

Unit:Yuan

Amongthem,theamountofbaddebtprovisionrecoveredorreversedinthisperiodissignificant:

Unit:Yuan

Otherinstructions:

5)Actualwriteoffofreceivabledividendsinthisperiod

Unit:Yuan

Thewriteoffofimportantreceivabledividends

Unit:Yuan

Verificationinstructions:

Otherinstructions:

(3)Otherreceivables

1)Classificationofotherreceivablesbynatureofpayment

Unit:Yuan

2)Disclosurebyaging

Unit:Yuan

3)Classifieddisclosurebasedonbaddebtprovisionmethod?Applicable□Notapplicable

Unit:Yuan

total

Provisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses:

Unit:Yuan

BasisfordivisionofeachstageandprovisionratioforbaddebtreservesChangesinbookbalancewithsignificantchangesintheamountoflossprovisionforthecurrentperiod

□Applicable?NotApplicable

4)Provisionforbaddebtsaccrued,recoveredorreversedinthisperiodProvisionforbaddebtsinthisperiod:

Unit:Yuan

Amongthem,thesignificantamountsofbaddebtprovisionsreversedorrecoveredinthisperiodare:

Unit:Yuan

5)Otheraccountsreceivableactuallywrittenoffinthisperiod

Unit:Yuan

Importantotheraccountsreceivablewriteoffs:

Unit:Yuan

Explanationforwriteoffofotherreceivables:

6)Otherreceivableswiththetopfiveendingbalancescollectedbydebtor

Unit:Yuan

7)Reportedasotherreceivablesduetocentralizedfundmanagement

Unit:YuanOtherinstructions:

7.Advancepayment

(1)Prepaymentsarelistedbyaging

Unit:Yuan

Explanationofthereasonsforthedelayedsettlementofprepaymentswithanagingofover1yearandsignificantamounts:

(2)Prepaymentstatusofthetopfiveyear-endbalancescollectedbyprepaidobjects

Otherinstructions:

8.InventoryDoesthecompanyneedtocomplywithdisclosurerequirementsintherealestateindustryyes

(1)Inventoryclassification

Thecompanyisrequiredtocomplywiththedisclosurerequirementsforthe"realestateindustry"inthe"ShenzhenStockExchangeListedCompanySelfdisciplineSupervisionGuidelinesNo.3-IndustryInformationDisclosure"Classifiedbynature:

Unit:Yuan

Disclosethemainitemsof"developmentcosts"andtheircapitalizationofinterestinthefollowingformat:

Unit:Yuan

Disclosethemainprojectinformationofthe"developmentproduct"inthefollowingformat:

Unit:Yuan

Disclose"installmentpaymentdevelopmentproducts","rentaldevelopmentproducts",and"turnoverhousing"byprojectinthefollowingformat:

Unit:Yuan

(2)Confirmedasinventorydataresources

Unit:Yuan

(3)Provisionforinventorydepreciationandprovisionforimpairmentofcontractperformancecosts

Disclosetheprovisionforinventorydepreciationreserveinthefollowingformat:

Classifiedbynature:

Unit:Yuan

Classifiedbymajorprojects:

Unit:Yuan

accrue

(4)ThecapitalizationrateofinterestintheendingbalanceofinventoryAsofJune30,2025,theinventorybalanceoftheGroupincludescapitalizedborrowingcostsofRMB45,793,683.63.

(5)Restrictedinventorysituation

Disclosureofrestrictedinventorybyproject:

Unit:Yuan

(6)Otherdebtinvestmentsduewithinoneyear

□Applicable?NotApplicable

9.Othercurrentassets

Unit:Yuan

Otherinstructions:

10.Otherequityinstrumentinvestments

Unit:Yuan

Terminationconfirmationexistsinthisperiod

Unit:Yuan

Disclosenontradingequityinstrumentinvestmentsforthecurrentperiodbyitem

Unit:Yuan

Otherinstructions:

11.Longtermequityinvestment

Unit:Yuan

Therecoverableamountisdeterminedbasedonthenetamountoffairvalueminusdisposalexpenses

□Applicable?NotApplicableTherecoverableamountisdeterminedbasedonthepresentvalueofexpectedfuturecashflows

□Applicable?NotApplicableThereasonsforthesignificantdifferencesbetweentheaforementionedinformationandtheinformationusedinpreviousyears'impairmenttestsorexternalinformationThereasonforthesignificantdiscrepancybetweentheinformationusedinthepreviousyear'simpairmenttestandtheactualsituationofthecurrentyearbythecompanyOtherinstructions

12.Investmentorientedrealestate

(1)Investmentrealestateusingcostmeasurementmodel?Applicable□Notapplicable

Unit:Yuan

Therecoverableamountisdeterminedbasedonthenetamountoffairvalueminusdisposalexpenses

□Applicable?NotApplicableTherecoverableamountisdeterminedbasedonthepresentvalueofexpectedfuturecashflows

□Applicable?NotApplicableThereasonsforthesignificantdifferencesbetweentheaforementionedinformationandtheinformationusedinpreviousyears'impairmenttestsorexternalinformationThereasonforthesignificantdiscrepancybetweentheinformationusedinthepreviousyear'simpairmenttestandtheactualsituationofthecurrentyearbythecompanyOtherinstructions:

(2)Investmentpropertiesmeasuredusingfairvaluemeasurementmodel

□Applicable?NotApplicableThecompanyisrequiredtocomplywiththedisclosurerequirementsforthe"realestateindustry"inthe"ShenzhenStockExchangeListedCompanySelfdisciplineSupervisionGuidelinesNo.3-IndustryInformationDisclosure"Disclosureofinvestmentpropertiesmeasuredatfairvaluebyproject:

Unit:Yuan

Doesthecompanyhaveanyinvestmentpropertiescurrentlyunderconstruction

□Yes?NoDoesthecompanyhaveanynewlyaddedinvestmentpropertiesmeasuredatfairvalueinthecurrentperiod

□Yes?No

(3)Convertedtoinvestmentrealestateandmeasuredatfairvalue

Unit:Yuan

(4)Thesituationofinvestmentpropertieswithoutpropertyownershipcertificates

Unit:Yuan

Otherinstructions

13.Fixedassets

Unit:Yuan

(1)Fixedassetsituation

Unit:Yuan