Shine

122
Ronshine China Holdings Limited 2022 Annual Report
INDEPENDENT AUDITOR’S REPORT

To the Shareholders of Ronshine China Holdings Limited
(incorporated in Cayman Islands with limited liability)
Opinion
We have audited the consolidated financial statements of Ronshine China Holdings Limited (the “Company”) and
its subsidiaries (collectively referred to as the“Group”) set out on pages 127 to 227, which comprise the
consolidated balance sheet as at 31 December 2022, and the consolidated income statement, consolidated
statement of comprehensive income, consolidated statement of change in equity and consolidated statement of
cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position
of the Group as at 31 December 2022, and of its consolidated financial performance and its consolidated cash flows
for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong
Kong Institute of Certified Public Accountants (“HKICPA”) and have been properly prepared in compliance with the
disclosure requirements of the Hong Kong Companies Ordinance.
Basis for opinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the
HKICPA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with the HKICPA’s Code of Ethics for Professional Accountants (the“Code”), and we have
fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern

We draw attention to Note 2. 1 to the consolidated financial statements that the Group incurred a loss of
RMB12,439,950,000 for the year ended 31 December 2022 and as of that date, the Group had net current
assets of RMB34,070,283,000 and the Group’s current portion of borrowings amounted to RMB19,785,112,000,
while its current portion of cash and cash equivalents (excluding restricted cash) amounted to RMB5,569,429,000.
Further, as at 31 December 2022, the Group had not repaid certain borrowings in aggregate principal amount
according to their scheduled repayment dates. These conditions, along with the current situation as set forth in
Note 2.1, which indicate the existence of a material uncertainty that may cast significant doubt about the Group’s
ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to
Going Concern section, we have determined the matters described below to be the key audit matters to be
communicated in our report.
iOne Financial Press Limited

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Independent Auditor’s Report

Key audit matters (continued)
Provisions for properties under How our audit addressed the Key Audit
development (“PUD”) and completed Matter
properties held for sale (“PHS”)
Refer to Note 4(a) and Note 20 to the consolidated Our key procedures in relation to management’s
financial statements. assessment on the provision for PUD and PHS included:
The total of PUD and PHS of the Group amounted
to approximately RMB116,960 million as at 31 1. We obtained an understanding of
December 2022, accounting for approximately 62% management’s internal control and assessment
of the total assets of the Group against which, a process of the NRV of PUD and PHS, and assessed
provision of RMB7,464 million, was provided. During the inherent risk of material misstatement by
the year ended 31 December 2022, an additional considering the degree of estimation uncertainty
provision of RMB7,239 million was made. and level of other inherent risk factors such as
complexity of assessment and subjectivity of
significant assumptions and data used.
The carrying amounts of PUD and PHS are stated at

the lower of cost or net realisable value (“NRV”). As a 2. We evaluated and tested management’s key
result, provisions for PUD and PHS involve critical internal controls over the Group’s process in
accounting estimates on the future selling prices and determining the costs to completion of PUD and
direct related selling expenses for the properties, as the net realisable values of PUD and PHS based
well as the costs to completion for PUD. The on prevailing market conditions.
judgements and estimations are subject to high
degree of estimation uncertainty. The inherent risk 3. We assessed management’s key estimates for:
in relation to the assessment of net realisable value
of PUD and PHS is considered relatively higher due to • Selling prices which were estimated based on
uncertainty of significant assumptions used. the prevailing market conditions. We selected
PUD and PHS on a sample basis to compare their
We focused on this area due to the significance of estimated selling prices to the recent market
the PUD and PHS balances and the involvement of transactions, making reference to the Group’s
critical accounting estimates. selling prices of the sold units in the same project
or the prevailing market prices of comparable
properties with similar sizes, usages and
locations.
• Direct related selling expenses were estimated

based on certain percentages of selling prices.
We compared the above estimated percentages
with the actual average selling expenses to
revenue ratio of the Group in recent years, and
reviewed the sales commission contracts on a
sample basis; and
• For the estimated costs to completion for
PUD, we reconciled them to the budgets
approved by management, examined the
signed construction contacts on a sample
basis, and compared the anticipated
completion costs to the actual costs of
comparable properties with similar sizes,
usages and locations of the Group in recent
years.
We found that the key estimates used in

management’s assessment on the provision for
PUD and PHS were properly supported by the
available evidence.

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124
Other information
The directors of the Company are responsible for the other information. The other information comprises all of
the information included in the annual report other than the consolidated financial statements and our auditor’s
report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of directors and those charged with governance for

the consolidated financial statements
The directors of the Company are responsible for the preparation of the consolidated financial statements that give
a true and fair view in accordance with HKFRSs issued by the HKICPA and the disclosure requirements of the Hong
Kong Companies Ordinance, and for such internal control as the directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have
no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.

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125
Auditor’s responsibilities for the audit of the consolidated

financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. We report our opinion solely to you, as a body, in accordance with our agreed terms of
engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other
person for the contents of this report. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.

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126
Auditor’s responsibilities for the audit of the consolidated financial

statements (continued)
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible for
our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
The engagement director on the audit resulting in this independent auditor’s report is Mr. Leung Man Kin with
Practising Certificate number P07174.
Elite Partners CPA Limited

Certified Public Accountants
10/F, 8 Observatory Road

Tsim Sha Tsui
Kowloon, Hong Kong
31 March 2023

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127
CONSOLIDATED INCOME STATEMENT

Year ended 31 December
Note 2 2021
s
Revenue
6 30,059,292 33,284,014
Cost of sales
7 (36,178,859) (29,655,775)
Gross (loss)/profit
(6,119,567) 3,628,239
Selling and marketing costs (1,289,729)
7 (971,652)
Administrative expenses (1,198,308)
7 (1,009,598)
Net impairment (losses)/gains on financial assets 4,600
7 (788,322)
Fair value losses on investment properties (32,252)
17
(739,009) 450,284
Other income 9
164,249 707,308
Other gains or losses 9
(1,151,352)
Operating (loss)/profit
(10,615,251) 2,270,142
Finance income
Finance costs 278,389 736,492

1
0 (2,089,479) (636,274
Finance (costs)/income — net )
110 (1,811,090) 100,218
Share of net profit of investments
accounted for using the equity method
12(a)(ii) 514,223 102,240
(Loss)/profit before income tax (11,912,1 2,472,6

00
18)
Income tax expenses 13 (527,832) (745,8
68)
(Loss)/profit for the year (12,439,950) 1,726,7

32
(Loss)/profit for the year attributable to:
— Owners of the Company 1,295,0

(11,234,8
— Non-controlling interests 36) 49
(1,205,1 431,6
14) 83
(12,439,950) 1,726,7
32
( Loss)/earnings per share for (loss)/profit attributable to

owners of the Company (expressed in RMB per share)
— Basic (loss)/earnings per share

14 (6.67) 0.
77
— Diluted (loss)/earnings per share 14 (6.67) 0.

77
The above consolidated income statement should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Year ended December

31
20 20
22 21
RMB’0
RMB’0 00
00
(Loss)/profit for the year (12,439,950) 1,726,7

32
Other comprehensive income — —
Total comprehensive (loss)/income for the year (12,439,950) 1,726,7

32
Total comprehensive (loss)/income for the year attributable to:
— Owners of the Company 1,295,0

(11,234,83
49
— Non-controlling interests 6)
(1,205,11 431,6
83
4)
(12,439,950) 1,726,7
32
The above consolidated statement of comprehensive income should be read in conjunction with the
accompanying notes.
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As at 31 December
129
CONSOLIDATED BALANCE SHEET
Note 202 20
s
2 21
RMB’0
RMB’0 00
00
ASSETS
Non-current assets
Property, plant and equipment 15 1,106,78 1,189,2

1 19
Investment properties 17 12,320,10 12,718,6

0 17
Right-of-use assets 16 406,30 436,9

4 49
Intangible assets 1,77 3,1

4 54
Investments accounted for using the equity method 12 5,453,87 11,855,0

4 96
Financial assets at fair value through profit or loss 18 488,00 689,6

5 68
Deferred tax assets 27 698,41 679,5

5 27
Total non-current assets 20,475,25 27,572,2

3 30
Current assets
Properties under development 20 94,305,79 127,448,6

2 10
Completed properties held for sale 20 22,654,41 18,887,1

7 13
Contract assets 22 1,321,92 1,227,2

6 44
Trade and other receivables and prepayments 23 27,465,76 32,650,9

5 53
Amounts due from related parties 35 8,340,90 11,285,0

3 65
Prepaid taxation 4,698,48 3,864,3

6 24

4 54
Term deposits 21 781,00 3,852,8

0 74
Restricted cash 21 3,974,50 6,482,8

7 27
Cash and cash equivalents 21 4,788,42 11,719,7

9 45
Total current assets 168,757,09 217,867,6

9 09
Total assets 189,232,35 245,439,8

2 39
EQUITY
Share capital 24 1 1
5 5
Share premium 24
3,082,68 3,082,6
Other reserves 25 1 81
3,104,26 15,221,9
6 02
Equity attributable to owners of the Company 6,186,96 18,304,5

2 98
Non-controlling interests
24,447,55 33,976,3
7 52
Total equity 30,634,51 52,280,9

9 50

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As at 31 December
130
Consolidated Balance Sheet
Note 202 20
s
2 21
RMB’0
RMB’0 00
00
LIABILITIES
Non- current liabilities

Borrowings
26 34,044,2
Lease liabilities 22,618,55 22
16 6
20,6
Deferred tax liabilities 27 5,77 43
7
1,813,1
1,286,68 46
4
Total non- current liabilities 23,911,01 35,878,0

7 11
Current liabilities
Borrowings 26 19,785,11 22,733,6

2 99
Lease liabilities 16 14,18 13,1

9 75
Contract liabilities 22 80,638,09 90,094,2

7 26
Trade and other payables 29 21,713,79 29,594,1

6 52
Amounts due to related parties 35 7,075,54 9,087,5

4 30
Current tax liabilities 5,460,07 5,758,0

8 96
Total current liabilities 134,686,81 157,280,8

6 78
193,158,8
Total liabilities 158,597,83 89
3
Total equity and liabilities 189,232,35 245,439,8

2 39
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
The financial statements on pages 127 to 227 were approved and authorised for issue by the board of directors of
the Company on 31 March 2023 and were signed on its behalf by:
Ou Zonghong
Zhang Lixin
Director
Director

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CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Attributable to owners of the Company
Share- N
o
based n-
S S Capi Statut Retai T
tal ory compensa
ha hare ned control otal
tion T
re prem rese rese earni ling
ca ium rese otal
rves rves ngs inter equi
pit rves RMB RMB ests ty
RMB’ RMB RMB
al ’000 ’000 RMB RMB
000 ’000 ’000 RMB
RMB’ ’000 ’000 ’000
(Note (Note (Note
000 25(a)) 25(b))
24) (Note
25(c))
(Note
24)
Balance at 1 January 1 3,082,6 851,5 2,026,4 82,0 12,261,8 18,304,5 33,976,3 52,280,9
5 81 83 41 76 02 98 52 50
2022 Comprehensive
income
— Loss for the year — — — — — (11,234,8 (11,234,8 (1,205,1 (12,439,9

26) 26) 14) 50)
— Other comprehensive — — — — —
income — — — —
Total comprehensive income — — — — — (11,234,826) (11,234,826) (1,205,114)

(12,439,950)
Disposal of subsidiaries — — (892,7 (128,3 — — (1,021,0 (1,262, (2,283,

00) 25) 25)
Acquisition of subsidiaries — — — — 82 85
— — —
9) 4)
Acquisition of additional
interests in subsidiaries 38 38,
from non-controlling ,0 04
interests
41 1
— — — —
Capital injections from non- 138,2 — 138,2
30 30
controlling interests
Capital reduction of the — — — —
— (140,2 (1,9
— — 10) 80)
subsidiaries
Dividends distribution to — — — —
—
non-controlling interests — — 519,1 519,1
58 58
Lapse of share options
— — — —
Transfer to statutory — — (82,0 —
— — 82,
reserves — —
76)
—
— — 076
(67, (6,058,2 (6,058,2
— 67,4 — — 88) 88)
04 404
)
(1,419,5 (1,419,5
53) 53)
— —
— —
Balance at 31 December 2022 15 3,082,681 97,113 1,965,520 — 1,041,638 6,186,967 24,447,557

30,634,519

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132
Consolidated Statement of Changes in Equity
Attributable to owners of the Company
Share- N
based o
S S Cap Statut n-
compens Reta
ital ory
h hare ation ined contr
ar pre res earn T Total
res ollin
e miu res ings otal
erve erv g equi
ca m erve RMB
s es RMB inte ty
pi s ’00
ta RMB RMB RMB ’00 rest RMB
RMB 0
l ’000 ’00 ’00 0 s ’00
’00 RMB
0 0 0
RMB (Note 0 ’00
24) (Note (Note
’000 25(a)) (Note 0
25(b))
25(c))
(Note
24)
Balance at 1 January 1 3,786, 851, 1,921, 82, 11,071, 17,713, 32,945, 50,659,
5 195 583 846 076 348 063 940 003
2021 Comprehensive
income
— Profit for the year 1,295, 1,295, 431, 1,726,

— — — — — 049 049 683 732
— Other comprehensive — — — — — — — — —
income
Total comprehensive income — — — — — 1,295,049 1,295,049 431,683

1,726,732
Buy-back and cancellation of
shares (Note 24) (8, (8,

— 34 — — — — 34 — (8
Disposal of subsidiaries 1) 1) ,341
— — — — — (694 )
Acquisition of subsidiaries — — ,98
— — — — — (694
Capital injections from — — 0) ,980
330 )
non-controlling interests
— — — — — ,00 330
Capital reduction of the
subsidiaries Dividends — — 0 ,00
— — — — —
distribution to 0
— — 1,971
non-controlling ,35 1,971
interests Final — — — — — 6 ,35
dividend of 2020 (Note — — (16
— — — — — 6
28) Transfer to statutory
(695, (695, ,50 (16
reserves — — 104, — (104,
173) 173) 0) ,50
595 595)
— — (991, 0)
147)
— (991
,147
—
)
(695
,173
)
—
Balance at 31 December 2021 15 3,082,681 851,583 2,026,441 82,076 12,261,802 18,304,598 33,976,352
52,280,950
The above consolidated statement of changes of equity should be read in conjunction with the accompanying notes.

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133
CONSOLIDATED STATEMENT OF CASH FLOWS
Note 20 20
s
22 21
RMB’0
RMB’0 00
00
Cash flows from operating activities
Cash generated from operations 30(a) 12,096,623 8,983,4

18
PRC corporate income tax paid (642,586) (1,203,3

53)
PRC land appreciation tax paid (329,541) (1,189,5

54)
Net cash generated from operating activities 11,124,496 6,591,0

11
Cash flows from investing activities
Payments for purchase of property, plant and equipment and
investment properties (470,236) (786,6

40)
Proceeds from disposal of intangible assets 171 —
Payments for purchase of intangible assets — (

2
1
)
Proceeds from disposal of property, plant and equipment 27,406 352,3

11
Capital injections to joint ventures and associates (896,693) (918,7

20)
Payments for acquisition of financial assets at fair value through
profit and loss (475,000) (531,1

05)
Proceeds from disposal of financial assets at fair value through
profit and loss 685,027 777,6

56
Acquisition of additional interests in subsidiaries from
non-controlling interests (1,980) —
Interest received 379,575 688,9

12
Cash advances to related parties (1,835,227) (7,960,4
42)
Repayments from related parties 4,779,389 2,659,6

65
Decrease in term deposits 3,071,874 3,136,5

42
Proceeds from disposal of an associate 1,169,479 28,2

43
Payments for acquisition of subsidiaries, net of cash acquired 34 (75,336) (80,9

38)
Net cash outflow from disposal of subsidiaries (1,502,789) (121,0

65)
Net cash generated from/(used in) investing activities 4,855,660 (2,755,6

02)

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Consolidated Statement of Cash Flows
Note 20 20
s
22 21
RMB’0
RMB’0 00
00
Cash flows from financing activities
Proceeds from borrowings 30(b) 7,398,870 18,608,9

73
Repayments of borrowings 30(b) (21,509,923) (27,157,2

43)
Cash advances from related parties 30(b) 179,269 5,523,9

92
Repayments to related parties 30(b) (2,191,255) (1,845,1

44)
Payments for buy-back and cancellation of shares 24 — (8,3

41)
Capital injection from non-controlling interests 519,158 1,971,3

56
Capital reduction of the subsidiaries (6,058,288) (16,5

00)
Interest paid (1,897,520) (5,869,8

15)
Dividends paid to the Company’s shareholders — (695,1

73)
Dividends paid to non-controlling interests in subsidiaries (1,419,553) (991,1

47)
Principal elements of lease payments (19,595) (21,0

18)
Restricted cash pledged for borrowings 2,100,000 (1,484,8

56)
Net cash used in financing activities (22,898,837) (11,984,9

16)
Net decrease in cash and cash equivalents (6,918,681) (8,149,5

07)
Cash and cash equivalents at beginning of the year 11,719,745 19,854,8

76
Exchange (losses)/gains on cash and cash equivalents (12,635) 14,3

76
Cash and cash equivalents at end of the year 4,788,429 11,719,7

45
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS
1 General information
Ronshine China Holdings Limited (the “Company”) was incorporated in the Cayman Islands on 11 September
2014 as an exempted company with limited liability under the Companies Act, Cap.22 of the Cayman
Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman,
KY1-1111, Cayman Islands. The Company’s principal activity is investment holding. The Company and its
subsidiaries (together the “Group”) are principally engaged in property development business in the People’s
Republic of China (the “PRC”).
The ultimate holding company of the Company is TMF (Cayman) Limited and the ultimate controlling
shareholder of the Company is Mr. Ou Zonghong (“Mr. Ou”).
The Company’s shares were listed on the The Stock Exchange of Hong Kong Limited (the“Stock Exchange”) on
13 January 2016.
These consolidated financial statements are presented in thousand Renminbi (“RMB’000”) which is also
the functional currency of the Company.
2 Summary of significant accounting policies

The principal accounting policies in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation

( a) Compliance with Hong Kong Financial Reporting Standards ( “ HKFRSs” ) and Hong Kong
Companies Ordinance (Cap. 622 of the Laws of Hong Kong) (“HKCO”) issued by the
Hong Kong Institute of Certified Public Accountants (“HKICPA”)
The consolidated financial statements of the Group have been prepared in accordance with
HKFRSs and disclosure requirements of the HKCO.
(b) Historical cost convention
The consolidated financial statements have been prepared on a historical cost basis, except
for financial assets at fair value through profit or loss and investment properties, which are
measured at fair value.
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Notes to the Consolidated Financial Statements
2 Summary of significant accounting policies (continued)

2.1 Basis of preparation (continued)
(c) Going concern basis
For the year ended 31 December 2022, the Group incurred a loss for the year of
approximately RMB12,439,950,000 . As of 31 December 2022, the Group recorded net
current assets of RMB34,070,283,000, and the Group’s current portion of borrowings amounted to
RMB19,785,112,000, while its cash and cash equivalents (excluding restricted cash) amounted to
RMB5,569,429,000.
Since the second half of 2021, the business environment of China’s real estate industry has
undergone major changes, with increased difficulties in financing confronted by real estate
companies. Under such circumstances, a number of real estate companies have successively
encountered debt repayment issues, indicating accelerated deterioration of the industry’s
business environment. At the same time, the outbreak of the COVID-19 pandemic in Shanghai
and other cities has brought enormous pressure on the Group’s operations. As a result of the
impact brought by the above factors, the Group takes longer time than expected to realise
cash from its properties and/or to obtain cash from external financing to meet its loan repayment
obligations. Although the Company has endeavoured to mitigate the impact of various
unfavourable factors on its operations, due to the prolonged duration of this situation, the Group’s
operation and cash position have been significantly affected, and its ability to perform future
obligations is subject to uncertainty.
As stipulated in the announcement of the Company dated 10 July 2022, interest in the amount
of US$12,798,000 under the 8.1% senior notes due June 2023 (the“June 2023 Notes”) and interest in
the amount of US$15,067,500 under the 7.35% senior notes due December 2023 (the “December
2023 Notes”) were due on 9 June 2022 and 15 June 2022, respectively. The Company had a 30-day
grace period to pay such interests. As of the date of approval of these consolidated financial
statements, the Company has not made such payments.
If such non-payment continues, holders of at least 25% of the aggregate principal amount of
the relevant outstanding senior notes at that time may, by written notice to the Company or the
trustee, require the Company to pay the principal and accrued interest of the relevant outstanding
senior notes immediately. As of the date of approval of these consolidated financial statements, the
Company has not received any notice regarding accelerated repayment from the holders of the
June 2023 Notes or the December 2023 Notes.
As stipulated in the announcements of the Company dated 25 October 2022 and 26 January
2023, respectively, the 8.75% senior notes due 2022 (the “October 2022 Notes”) in the aggregate
principal amount of US$688,000,000 and the 8.95% senior notes due 2023 (the “January 2023
Notes”) in the aggregate principal amount of US$413,000,000, issued by the Company and
listed on the Singapore Exchange Securities Trading Limited matured on 25 October 2022 and
22 January 2023, respectively. The principal amount and the accrued and unpaid interest
totalling US$718,100,000 and US$431,481,750, respectively, became due and payable. As of
the date of approval of these consolidated financial statements, the Company has not made such
payments.
iOne Financial Press Limited CS Hotline: 2879 8787 • Fax: 2802 0055
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(c) Going concern basis (continued)
If the Company fails to perform the obligations of repaying the debts due and cannot agree on
a consensual solution to the corresponding indebtedness with creditors in a timely manner, it
may cause the relevant creditors to demand accelerated repayment of the obligations of the
relevant debts or take enforcement actions.
In addition, as at 31 December 2022, the Group did not repay certain borrowings of
RMB6,248,911,000 according to their scheduled repayment dates. As a result, as at 31
December 2022, borrowings with the aggregate principal amount of RMB10,655,067,000 had
become default. Subsequent to 31 December 2022, the Group did not repay certain other bank
and other borrowings according to the scheduled repayment dates.
The above events or conditions indicate the existence of a material uncertainty which may
cast significant doubt on the Group’s ability to continue as a going concern.
In view of the aforesaid, the directors of the Company (the “Directors”) have given careful
consideration to the future liquidity and performance of the Group and its available sources
of financing in assessing whether the Group will have sufficient financial sources to continue as a
going concern. The following plans and measures are formulated with the objective to mitigate the
liquidity pressure and to improve the financial position of the Group:
(i) the Group is actively negotiating with several existing financial institutions on the renewal
of certain borrowings, and has been negotiating with various banks and financial
institutions to secure new sources of financing;
(ii) the Group will actively engage with its creditors and seek external financial advisers for various
feasible solutions to the relevant debts;
(iii) the Group will continue to implement measures to accelerate the pre-sales and sales of its
properties under development and completed properties, and to speed up the collection
of outstanding sales proceeds and other receivables. Recent relaxation of policies with
regards to pre-sale requirements have spurred buyers’ interests and stimulated demand.
The Group will also continue to actively adjust sales and pre-sale activities to better
respond to the changing market environment to achieve the latest budgeted sales and pre-
sales volumes and amounts; and
(iv) the Group will continue to take active measures to control administrative costs and unnecessary
capital expenditures to preserve liquidity.
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(c) Going concern basis (continued)
The directors of the Company have reviewed the Group’s cash flow projections prepared by
the management of the Company, which cover a period of not less than twelve months from 31
December 2022. They are of the opinion that, taking into account the above mentioned plans and
measures, the Group will have sufficient working capital to finance its operations and to meet its
financial obligations as and when they fall due within twelve months from 31 December 2022.
Accordingly, the directors are satisfied that it is appropriate to continue to adopt the going
concern basis of accounting in preparing these consolidated financial statements.
Notwithstanding the above, given the volatility of the property sector in China and the uncertainties
to obtain continuous support by the banks and the Group’s creditors, material uncertainties exist
as to whether the management of the Company will be able to achieve its plans and measures as
described above.
Should the going concern assumption be inappropriate, adjustments may have to be made to
write down the values of assets to their recoverable amounts, to provide for any further liabilities that
might arise, and to reclassify non-current assets and non-current liabilities as current assets
and current liabilities, respectively. The effects of these adjustments have not been reflected in
these consolidated financial statements.
( d) Amendments to HKFRSs that are mandatorily effective for the current year
In the current year, the Group has applied the following amendments to HKFRSs issued by the
HKICPA for the first time, which are mandatorily effective for the annual period beginning on 1
January 2022 for the preparation of the consolidated financial statements:
Amendments to HKFRS 3
Reference to the Conceptual Framework
Amendment to HKFRS 16
Covid-19-Related Rent Concessions beyond 30 June
Amendments to HKAS 16 2021
Property, Plant and Equipment – Proceeds before

Amendments to HKAS 37
Intended Use
Amendments to HKFRSs
Onerous Contracts – Cost of Fulfilling a Contract
Annual Improvements to HKFRSs 2018-2020
Save as described below, the application of the amendments to HKFRSs in the current year has
had no material impact on the Group’s financial positions and performance for the current and prior
years and/or on the disclosures set out in these consolidated financial statements.
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( d) Amendments to HKFRSs that are mandatorily effective for the current year (continued)
Impacts on application ofAmendments to HKFRS 3 Reference to the Conceptual Framework
The Group has applied the amendments to business combinations for which the acquisition date
was on or after 1 January 2022. The amendments update a reference in HKFRS 3 Business
Combinations so that it refers to the Conceptual Framework for Financial Reporting 2018
issued in June 2018 (the “Conceptual Framework”) instead of Framework for the Preparation
and Presentation of Financial Statements (replaced by the Conceptual Framework for Financial
Reporting 2010 issued in October 2010), add a requirement that, for transactions and events
within the scope of HKAS 37 Provisions, Contingent Liabilities and Contingent Assets or
HK(IFRIC)-Int 21 Levies, an acquirer applies HKAS 37 or HK(IFRIC)-Int 21 instead of the Conceptual
Framework to identify the liabilities it has assumed in a business combination and add an explicit
statement that an acquirer does not recognise contingent assets acquired in a business
combination.
The application of the amendments in the current year has had no impact on the Group’s
consolidated financial statements.
Impacts on application of Amendment to HKFRS 1 6 Covid- 1 9 - Related Rent

Concessions beyond 30 June 2021
The Group has applied the Amendment to HKFRS 16 Covid- 19-Related Rent Concessions beyond
30 June 2021 retrospectively for the first time in the current year. The amendment extends the
availability of the practical expedient in paragraph 46A of HKFRS 16 Leases (“HKFRS 16”) by one
year so that the practical expedient applies to rent concessions for which any reduction in lease
payments affects only payments originally due on or before 30 June 2022, provided the other
conditions for applying the practical expedient are met.
The application of this amendment has had no material impact on the Group’s financial positions
and performance for the current and prior years.
Impacts on application of Amendments to HKAS 1 6 Property, Plant and Equipment –

Proceeds before Intended Use
The Group has applied the amendments for the first time in the current year. The amendments
specify that the costs of any item that were produced while bringing an item of property, plant and
equipment to the location and condition necessary for it to be capable of operating in the manner
intended by management (such as samples produced when testing whether the relevant
property, plant and equipment is functioning properly) and the proceeds from selling such
items should be recognised and measured in the profit or loss in accordance with applicable
standards. The cost of the items are measured in accordance with HKAS 2 Inventories.

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( d) Amendments to HKFRSs that are mandatorily effective for the current year (continued)
Impacts on application of Amendments to HKAS 1 6 Property, Plant and Equipment –

Proceeds before Intended Use (continued)
In accordance with the transitional provisions, the Group has applied the new accounting
policy retrospectively to property, plant and equipment made available for use on or after the
beginning of 1 January 2021. The application of the amendments in the current year has had no
impact on the Group’s financial positions and performance.
( e) New and amendments to HKFRSs in issue but not yet effective
The Group has not early applied the following new and amendments to HKFRSs that have been
issued but are not yet effective:
HKFRS 17 (including the October 2020 Insurance Contracts1

and February 2022
Amendments to HKFRS 17)
Amendments to HKFRS 10 and

Sale or Contribution of Assets between an Investor and its
HKAS 28
Associate or Joint Venture2
Amendments to HKFRS
16 Amendments to HKAS Lease Liability in a Sale and Leaseback3
1 Classification of Liabilities as Current or Non-current and
related amendments to Hong Kong Interpretation 5 (2020)3
Amendments to HKAS 1
Amendments to HKAS 1 Non-current Liabilities with Covenants3
and
Disclosure of Accounting Policies1
HKFRS Practice Statement
2 Amendments to HKAS 8
Amendments to HKAS 12 Definition of Accounting Estimates1
Deferred Tax related to Assets and Liabilities arising from a

Single Transaction1
1
Effective for annual periods beginning on or after 1 January 2023.
2
Effective for annual periods beginning on or after a date to be determined.
3
Effective for annual periods beginning on or 1 January 2024.
The directors of the Company are in the process of assessing the potential impact of the new
and amendments to HKFRSs but are not yet in a position to determine whether the new and
amendments to HKFRSs will have a material impact on the Group’s performance and financial
position and on the disclosures. The new and amendments to HKFRSs may result in changes to
how the Group’s performance and financial position are prepared and presented in the future.

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2.2 Subsidiaries
2.2.1 Consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control.
The Group controls an entity when the Group is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date that control ceases.
(a) Business combinations
The Group applies the acquisition method to account for business combinations . The
consideration transferred for the acquisition of a subsidiary is the fair values of the
assets transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of any
asset or liability resulting from a contingent consideration arrangement. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date.
The Group recognises any non-controlling interest in the acquiree on an acquisition-

by- acquisition basis. Non-controlling interests in the acquiree that are present ownership
interest and entitle their holders to a proportionate share of the entity’s net assets in the
event of liquidation are measured at either fair value or the present ownership interest’s
proportionate share of the recognised amounts of acquiree’s identifiable net assets. All
other components of non-controlling interests are measured at their acquisition date fair
value, unless another measurement basis is required by HKFRSs. Acquisition-related costs
are expensed as incurred.
If the business combination is achieved in stages, the acquisition date carrying value of
the acquirer’s previously held equity interest in the acquiree is re-measured to fair value
at the acquisition date; any gains or losses arising from such re-measurement are recognised
in profit or loss.
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2.2 Subsidiaries (continued)
2.2.1 Consolidation (continued)
(a) Business combinations (continued)
The excess of the consideration transferred, the amount of any non-controlling interest in
the acquiree and the acquisition-date fair value of any previous equity interest in the
acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill.
If the total of consideration transferred, non-controlling interest recognised and previously
held interest measured is less than the fair value of the net assets of the subsidiary acquired
in the case of a bargain purchase, the difference is recognised directly in the consolidated
income statement.
Intra-group transactions, balances and unrealised gains on transactions between

Group companies are eliminated. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset. When necessary, amounts
reported by subsidiaries have been adjusted to conform with the Group’s accounting
policies.
(b) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are
accounted for as equity transactions – that is, as transactions with the owners of the
subsidiary in their capacity as owners. The difference between fair value of any
consideration paid and the relevant share acquired of the carrying value of net assets of the
subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are
also recorded in equity.
(c) Disposal of subsidiaries
When the Group ceases to have control, any retained interest in the entity is re-measured
to its fair value at the date when control is lost, with the change in carrying amount
recognised in profit or loss. The fair value is the initial carrying amount for the purposes of
subsequently accounting for the retained interest as an associate, joint venture or financial
asset. In addition, any amounts previously recognised in other comprehensive income in
respect of that entity are accounted for as if the Group had directly disposed of the related
assets or liabilities. This may mean that amounts previously recognised in other
comprehensive income are reclassified to profit or loss or transferred to another category of
equity as specified/permitted by applicable
HKFRSs.
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2.2 Subsidiaries (continued)
2.2.2 Separate financial statements
Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct
attributable costs of investment. The results of subsidiaries are accounted for by the Company on
the basis of dividend received and receivable.
Impairment testing of the investments in subsidiaries is required upon receiving a dividend

from these investments if the dividend exceeds the total comprehensive income of the
subsidiary in the period the dividend is declared or if the carrying amount of the investment in
the separate financial statements exceeds the carrying amount in the consolidated financial
statements of the investee’s net assets including goodwill.
2.3 Equity method, associates and joint arrangements

(a) Equity method
Under the equity method, the investment is initially recognised at cost, and the carrying amount
is increased or decreased to recognise the Group’s share of the profit or loss of the investee
after the date of acquisition. The Group’s investments in associates or joint ventures include goodwill
identified on acquisitions. Upon the acquisitions of the ownership interests in associates or
joint ventures, any differences between the cost of the associate or joint venture and the
Group’s share of the net fair value of the associate’s or joint ventures’ identifiable assets and
liabilities are accounted for as goodwill.
If the ownership interests in the associate or joint venture are reduced but significant influence
or joint control is retained, only a proportionate share of the amounts previously recognised in
other comprehensive income is reclassified to profit or loss where appropriate.
The Group’s share of post-acquisition profit or loss is recognised in the consolidated

income statement, and its share of post-acquisition movements in other comprehensive income is
recognised in other comprehensive income with a corresponding adjustment to the carrying
amount of the investments. When the Group’s share of losses in the associate or joint venture
equals or exceeds its interests in the associate or joint venture, including any other unsecured
receivables, the Group does not recognise further losses, unless it has incurred legal or constructive
obligations or made payments on behalf of the associate or joint venture.
The Group determines at each balance sheet date whether there is any objective evidence that
the investment in the associate or joint venture is impaired. If this is the case, the Group
calculates the amount of impairment as the difference between the recoverable amounts of the
associate or joint venture and their carrying values and recognises the amounts adjacent to
“share of net profit of investments accounted for using the equity method” in the consolidated
income statement.
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2.3 Equity method, associates and joint arrangements (continued)
(a) Equity method (continued)
Profits and losses resulting from upstream and downstream transactions between the Group
and its associate or joint venture are recognised in the Group’s consolidated financial
statements only to the extent of unrelated investor’s interests in the associate or joint venture.
Unrealised losses are eliminated unless the transaction provides evidence of an impairment of
the asset transferred. Accounting policies of the associate or joint venture have been changed
where necessary to ensure consistency with the policies adopted by the Group.
Gains and losses on dilution of equity interests in the associate or joint ventures are recognised in
the consolidated income statement.
(b) Associate
An associate is an entity over which the Group has significant influence but not control,
generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments
in associates are accounted for using the equity method of accounting after initially recognised at
cost.
(c) Joint arrangements
A joint arrangement is an arrangement of which two or more parties have joint control and over
which none of the participating parties has unilateral control. The Group has assessed the nature
of its joint arrangements and determined them to be joint ventures. Joint venture is accounted
for using the equity method.
2.4 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the executive directors of the
Company that makes strategic decisions.
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2.5 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured
using the currency of the primary economic environment in which the entity operates (the
“functional currency”). These consolidated financial statements are presented in RMB, which is
the Company’s functional and the Group’s presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions or valuations when items are re-measured .
Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the consolidated income statement except when deferred in other
comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
Foreign exchange gains and losses that relate to cash and bank balances and borrowings
are presented in the consolidated income statement, within “finance income/(costs) – net”. All
other foreign exchange gains and losses are presented in the consolidated income statement on a
net basis within“other gains – net”.
2.6 Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation and any impairment
loss. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Group and the cost of the item can be measured reliably. The carrying amount of the
replaced part is derecognised. All other repairs and maintenance are charged to the consolidated
income statement during the year in which they are incurred.
Depreciation on property, plant and equipment is calculated using the straight-line method to allocate
their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows:
Buildings
20 years
Office equipment 3-5
years
Motor vehicles
Leasehold improvements and furniture, fitting and equipment 4 years
2-13
years
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2.6 Property, plant and equipment (continued)
The assets’residual values and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount.
These are included in consolidated income statement.
2.7 Intangible assets

Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are amortised over their estimated useful lives of 4 to 10
years.
2 .8 Investment properties
Investment property, principally comprising leasehold land and buildings, is held for long-term rental
yields or for capital appreciation or both, and that is not occupied by the Group. It also includes
properties that are being constructed or developed for future use as investment properties. Land held
under operating leases are accounted for as investment properties when the rest of the definition of an
investment property is met. In such cases, the operating leases concerned are accounted for as if
they were finance leases. Investment property is initially measured at cost, including related transaction
costs and where applicable borrowing costs. After initial recognition, investment properties are carried
at fair value, representing open market value determined at each reporting date by external valuers.
Fair value is based on active market prices, adjusted, if necessary, for any difference in the nature,
location or condition of the specific asset. If the information is not available, the Group uses alternative
valuation methods such as recent prices on less active markets or discounted cash flow projections.
Changes in fair values are recorded in the consolidated income statement within“fair value gains/(losses)
on investment properties”.
2.9 Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to depreciation and amortisation and are
tested annually for impairment, or more frequently if events or changes in circumstances indicate that
they might be impaired. Other assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or groups of assets (“cash-generating units”). Non-financial assets other than goodwill that
suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting
period.
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2.10 Investments and other financial assets
Classification
The Group classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income,
or through profit or loss), and
• those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and
the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other
comprehensive income (“OCI”). For investments in equity instruments that are not held for trading, this
will depend on whether the Group has made an irrevocable election at the time of initial recognition to
account for the equity investment at fair value through other comprehensive income (“FVOCI”).
Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the
Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to
receive cash flows from the financial assets have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership.
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss (“FVPL”), transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair
value through profit or loss are expensed in consolidated income statement.
Debt instruments
Initial recognition and subsequent measurement of debt instruments depend on the Group’s
business model for managing the asset and the cash flow characteristics of the asset. There are three
measurement categories into which the Group classifies its debt instruments:
• Amortised cost: Assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at amortised cost. Interest
income from these financial assets is included in finance income using the effective interest rate
method. Any gain or loss arising on derecognition is recognised directly in profit or loss and
presented in “other gain-net”together with foreign exchange gains and losses.
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2.10 Investments and other financial assets (continued)
Debt instruments ( continued)
• FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial
assets, where the assets’ cash flows represent solely payments of principal and interest, are
measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the
recognition of impairment gains or losses, interest income and foreign exchange gains and
losses which are recognised in profit or loss. When the financial asset is derecognised, the
cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and
recognised in“other gains
– net”. Interest income from these financial assets is included in finance income using the
effective interest rate method. Foreign exchange gains and losses are presented in “other
gains – net”. Impairment losses are presented as separated line item in the statement of profit or
loss.
• FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A
gain or loss on a debt investment that is subsequently measured at FVPL is recognised in profit or
loss and presented in net basis within“other gains – net”in the period in which it arises.
Equity investments
The Group subsequently measures all equity investments at fair value. Where the Group’s management
has elected to present fair value gains and losses on equity investments in other comprehensive
income, there is no subsequent reclassification of fair value gains and losses to the consolidated
statement of comprehensive income. Dividends from such investments continue to be recognised in
the consolidated income statement when the Group’s right to receive payments is established.
Changes in the fair value of FVPL are recognised in the consolidated income statement as
applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at
FVPL are not reported separately from other changes in fair value.
Impairment of financial assets
The Group assesses on a forward looking basis the expected credit loss (“ECL”) associated with its
financial assets carried at amortised cost. The impairment methodology applied depends on whether there
has been a significant increase in credit risk.
ECL is a probability-weighted estimate of credit losses (i.e. the present value of all cash shortfalls) over
the expected life of the financial assets.
The Group applies the simplified approach permitted by HKFRS 9, which uses expected lifetime losses to
be recognised from initial recognition of the assets for trade receivables and contract assets.
Impairment on other financial assets including other receivables and amounts due from related
parties is measured as either 12-month ECL or lifetime ECL, depending on whether there has been a
significant increase in credit risk since initial recognition. If a significant increase in credit risk of a
receivable has occurred since initial recognition, then impairment is measured as lifetime expected credit
losses.
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2.11 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle
on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right
must not be contingent on future events and must be enforceable in the normal course of business
and in the event of default, insolvency or bankruptcy of the company or the counterparty.
2.12 Derivatives and hedging activities

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently remeasured to their fair value at the end of each reporting period. The
accounting for subsequent changes in fair value depends on whether the derivative is designated as a
hedging instrument, and if so, the nature of the item being hedged. The Group designates derivatives as
either:
• hedges of the fair value of recognised assets or liabilities (fair value hedges).
• hedges of a particular risk associated with the cash flows of recognised assets and liabilities and
highly probable forecast transactions (cash flow hedges).
• hedges of a net investment in a foreign operation (net investment hedges).
At the inception of the hedging, The Group documents the economic, relationship between
hedging instruments and hedged items, including whether changes in the cash flows of the hedging
instruments are expected to offset changes in the cash flows of hedged items. The Group documents
its risk management objective and strategy for undertaking its hedge transactions.
Derivatives held by the Group are only used for economic hedging purposes and not as
speculative investments. If the derivative instruments do not qualify for hedge accounting, Changes in
the fair value of any derivative instrument that does not qualify for hedge accounting are recognised
immediately in profit or loss and are included in other gains/(losses).
The fair values of derivative financial instruments designated in hedge relationships are disclosed in
Note 3.3(a).
ione883 • P.149
150

2.13 Leases
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the
leased asset is available for use by the Group.
The Group leases only offices for long-term contracts. Rental contracts are typically made for fixed
periods of 2 to 4 years. Lease terms are negotiated on an individual basis and contain a wide range of
different terms and conditions. The lease agreements do not impose any covenants, but leased assets
may not be used as security for borrowing purposes.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payment that are based on an index or a rate;
• amounts expected to be payable by the lessee under residual value guarantees;
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the Group exercising
that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot
be determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing
rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain
an asset of similar value in a similar economic environment with similar terms and conditions.
To determine the incremental borrowing rate, the Group uses recent third-party financing received by
the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third
party financing was received.
Lease payments are allocated between the liability and finance cost. The finance cost is charged to profit
or loss over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period. The right-of-use assets are generally depreciated over the shorter
of the asset’s useful life and the lease term on a straight-line basis.
ione883 • P.150
151

2.13 Leases (continued)
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs
Right-of-use assets consist of properties and land use rights.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-
line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or
less.
The Group applies the short-term lease recognition exemption to leases that have a lease term of 12
months or less from the commencement date and do not contain a purchase option. It also applies the
recognition exemption for lease of low-value assets. Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight-line basis or another systematic basis over the
lease term.
Lease income from operating leases where the Group is a lessor is recognised in income on a
straightline basis over the lease term. Initial direct costs incurred in obtaining an operating lease are
added to the carrying amount of the underlying asset and recognised as expense over the lease term
on the same basis as lease income. The respective leased assets are included in the balance sheet
based on their nature. The Group did not need to make any adjustments to the accounting for assets
held as lessor as a result of adopting the new leasing standard.
2.14 Land use rights

All land in the PRC is state-owned or collectively-owned and no individual ownership right exists. Land
use rights are acquired by the Group for development of properties. Land use rights held for
development for sale are inventories and included in properties under development or completed
properties held for sale and measured at lower of cost and net realisable value, of which those within
normal operating cycle are classified as current assets, while those out of the normal operating cycle are
classified as non-current assets. Land use rights to be developed for hotel properties and self-use
buildings, are non-current assets, which are stated at cost and subsequently amortised in the consolidated
income statement on a straight-line basis over the operating lease periods. Land use rights to be
developed for investment properties are accounted for as part of investment properties.
ione883 • P.151
152

2 .15 Properties under development and completed properties held for sale
Properties under development and held for sale are stated at the lower of cost and net realisable
value. Development cost of properties comprises cost of land use rights, construction costs and
borrowing costs incurred during the construction period. Upon completion, the properties are
transferred to completed properties held for sale.
Net realisable value takes into account the price ultimately expected to be realised, less applicable
variable selling expenses and the anticipated costs to completion.
Properties under development and held for sale are classified as current assets unless the
construction period of the relevant property development project is expected to complete beyond
normal operating cycle.
2.16 Trade and other receivables and amounts due from related parties
Trade receivables are amounts due from customers for properties sold and services provided in the
ordinary course of business. If collection of trade and other receivables and amounts due from related
parties is expected in one year or less (or in the normal operating cycle of the business if longer), they are
classified as current assets. If not, they are presented as non-current assets.
Trade and other receivables and amounts due from related parties are recognised initially at fair value
and subsequently measured at amortised cost using the effective interest method, less provision for
impairment.
2.17 Cash and bank balances

Cash and bank balances includes cash and equivalents, term deposits and restricted cash. Cash and
cash equivalents includes cash on hand and deposits held at call with banks and other short-term highly
liquid investments with original maturities of three months or less. Term deposits mainly refers to
the bank deposits with initial term of over three months but within one year. Restricted cash is the
bank deposits which are restricted to use. Restricted cash are excluded from cash and cash equivalents
in consolidated statement of cash flows.
2.18 Trade and other payables and amounts due to related parties
Trade payables are obligations to pay for construction costs or services that have been acquired in
the ordinary course of business from suppliers. Trade and other payables and amounts due to related
parties are classified as current liabilities if payment is due within one year or less (or in the normal
operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade and other payables and amounts due to related parties are recognised initially at fair value
and subsequently measured at amortised cost using the effective interest method.
ione883 • P.152
153

2.19 Borrowings and borrowing costs
Borrowings are recognised initially at fair value, net of transaction costs incurred . Borrowings are
subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs)
and the redemption value is recognised in the consolidated income statement over the period of the
borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and
amortised over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months after the end of the reporting period.
General and specific borrowing costs directly attributable to the acquisition, construction or production
of qualifying assets, like properties under development, assets under construction and investment
properties under construction, which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are added to the cost of those assets, until such time as the assets
are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are expensed in the period in which they are incurred.
2.20 Current and deferred income tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit or
loss, except to the extent that it relates to items recognised in other comprehensive income or directly in
equity. In this case the tax is also recognised in other comprehensive income or directly in equity,
respectively.
(a) Current income tax
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period in the countries where the Group
operates and generates taxable income. Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
ione883 • P.153
154

2.20 Current and deferred income tax (continued)
(b) Deferred income tax
Inside basis differences
Deferred income tax is recognised, using the liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the
consolidated financial statements. However, the deferred income tax is not accounted for if it
arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or
loss. Deferred income tax is determined using the tax rates that have been enacted or
substantially enacted by the balance sheet date and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be utilised.
Outside basis differences
Deferred income tax liabilities are provided on taxable temporary differences arising from
investments in subsidiaries, associate and joint ventures, except for deferred income tax
liability where the timing of the reversal of the temporary difference is controlled by the Group
and it is probable that the temporary difference will not reverse in the foreseeable future.
Generally the Group is unable to control the reversal of the temporary difference for its associate,
only where there is an agreement in place that gives the Group the ability to control the
reversal of the temporary difference not recognised.
Deferred income tax assets are recognised on deductible temporary differences arising from
investments in subsidiaries, associates and joint ventures only to the extent that it is probable
the temporary difference will reverse in the future and there is sufficient taxable profit available
against which the temporary difference can be utilised.
(c) Offsetting
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets against current tax liabilities and when the deferred income tax assets and
liabilities relate to income taxes levied by the same taxation authority on either the taxable entity
or different taxable entities where there is an intention to settle the balances on a net basis.
ione883 • P.154
155

2.21 Employee benefits
(a) Pension obligations
The Group companies incorporated in the PRC contribute based on certain percentage of the
salaries of the employees to a defined contribution retirement benefit plan organised by relevant
government authorities in the PRC on a monthly basis. The government authorities undertake
to assume the retirement benefit obligations payable to all existing and future retired employees
under these plans and the Group has no further obligation for post-retirement benefits beyond the
contributions made.
Contributions to these defined contribution plans are expensed as incurred.
(b) Housing benefits
PRC employees of the Group are entitled to participate in government-sponsored housing funds.
The Group contributes to these funds based on certain percentages of the salaries of these
employees on a monthly basis. The Group’s liability in respect of these funds is limited to the
contribution payable in each period. Contributions to the housing funds are expensed as incurred.
(c) Employee leave entitlements
Employee entitlements to annual leave are recognised when they accrue to employees. A provision
is made for the estimated liability for annual leave as a result of services rendered by employees up
to the balance sheet date.
2.22 Share-based payments

Share-based compensation benefits are provided to directors and employees via the Group.
Information relating to these schemes is set out in Note 25(c).
Share options
The fair value of options granted by the Group is recognised as a director and employee benefits
expense with a corresponding increase in equity. The total amount to be expensed is determined by
reference to the fair value of the options granted:
— including any market performance conditions
— excluding the impact of any service and non-market performance vesting conditions; and
— including the impact of any non-vesting conditions
The total expense is recognised over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied. At the end of each period, the entity revises its
estimates of the number of options that are expected to vest based on the non-market vesting and
service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss,
with a corresponding adjustment to equity.
ione883 • P.155
156

2.23 Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive obligation as a result of
past events; it is probable that an outflow of resources will be required to settle the obligation; and the
amount has been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of obligations
may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle
the obligation using a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the obligation. The increase in the provision due to passage of time is
recognised as interest expense.
A contingent liability is a possible obligation that arises from past events and whose existence will only
be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Group. It can also be a present obligation arising from past events that is not
recognised because it is not probable that outflow of economic resources will be required or the amount
of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the financial statements. When
a change in the probability of an outflow occurs so that outflow is probable, it will then be recognised
as a provision.
2.24 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for the sales of
properties and services in the ordinary course of the Group’s activities. Revenue is shown, net of
discounts and after eliminating sales with the Group companies. The Group recognises revenue when
the amount of revenue can be reliably measured; when it is probable that future economic benefits will
flow to the entity; and when specific criteria have been met for each of the Group’s activities, as
described below.
(a) Sales of properties
Revenues are recognised when or as the control of the asset is transferred to the customer .
Depending on the terms of the contract and the laws that apply to the contract, control of the
asset may transfer over time or at a point in time. Control of the asset is transferred over time if the
Group’s performance does not create an asset with an alternative use to the Group and the
Group has an enforceable right to payment for performance completed to date. If control of
the asset transfers over time, revenue is recognised over the period of the contract by reference to
the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is
recognised at a point in time when the customer obtains control of the asset.
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157

2.24 Revenue recognition (continued)
(a) Sales of properties (continued)
In determining the transaction price, the Group adjusts the promised amount of consideration for
the effect of a financing component if it is significant.
For property development and sales contract for which the control of the property is transferred
at a point in time, revenue is recognised when the customer obtains the physical possession or the
legal title of the completed property and the Group has present right to payment and the collection
of the consideration is probable.
(b) Construction services
For construction services, the Group’s performance creates or enhances an asset or work in
progress that the customer controls as the asset is created or enhanced, thus the Group
satisfies a performance obligation and recognises revenue over time based on the progress
towards complete satisfaction of construction services, by reference to the Group’s efforts or
inputs to the satisfaction of construction services relative to the total expected efforts or input.
(c) Rental income
Rental income from investment property is recognised in the consolidated income statement on
a straight-line basis over the term of the lease.
(d) Service income
Service income is recognised when the related services are rendered.
(e) Financing components
The Group does not expect to have any contracts where the period between the transfer of
the promised goods or services to the customer and payment by the customer exceeds one year.
As a consequence, the Group does not adjust any of the transaction prices for the time value of
money.
(f) Contract assets and contract liabilities
Upon entering into a contract with a customer, the Group obtains rights to receive
consideration from the customer and assumes performance obligations to transfer goods or
provide services to the customer. The combination of those rights and performance obligations
gives rise to a net asset or a net liability depending on the relationship between the remaining
rights and the performance obligations. The contract is an asset and recognised as contract assets if
the measure of the remaining rights exceeds the measure of the remaining performance
obligations. Conversely, the contract is a liability and recognised as contract liabilities if the
measure of the remaining performance obligations exceeds the measure of the remaining rights.
ione883 • P.157
158

2.25 Interest income
Interest income is presented as finance income where it is earned from bank deposits and is recognised
using the effective interest method.
2.26 Dividend income

Dividends are received from FVPL. Dividends are recognised as other income in profit or loss when the
right to receive payment is established. This applies even if they are paid out of pre-acquisition profits,
unless the dividend clearly represents a recovery of part of the cost of an investment. However, the
investment may need to be tested for impairment as a consequence.
2.27 Dividend distribution

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the reporting period but not distributed at the end
of the reporting period.
2.28 Financial guarantee contracts

Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued.
The liability is initially measured at fair value and subsequently at the higher of:
• the amount determined in accordance with the expected credit loss model under HKFRS 9
Financial Instruments; and
• the amount initially recognised less, where appropriate, the cumulative amount of income
recognised in accordance with the principles of HKFRS 15 Revenue from Contracts with Customers.
The fair value of financial guarantees is determined based on the present value of the difference in
cash flows between the contractual payments required under the debt instrument and the payments
that would be required without the guarantee, or the estimated amount that would be payable to a
third party for assuming the obligations.
Where guarantees in relation to loans or other payables of associates and joint ventures are provided for
no compensation, the fair values are accounted for as contributions and recognised as part of the cost
of the investment.
ione883 • P.158
159

2.29 Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company
by the weighted average number of ordinary shares outstanding during the financial year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account the weighted average number of additional ordinary shares that would have
been outstanding assuming the conversion of all dilutive potential ordinary shares.
2.30 Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance
that the grant will be received and the Group will comply with all attached conditions.
ione883 • P.159
160
3 Financial risk management

The Group’s activities expose it to a variety of financial risks: market risk (include foreign exchange risk
and interest rate risk), credit risk, and liquidity risk. The Group’s overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s
financial performance.
3.1 Financial risk factors

(a) Market risk
(i) Foreign exchange risk
The Group operates in the PRC with most transactions being settled in RMB, which is
the functional currency of the Group companies, except for certain transactions which are
settled in foreign currencies. As at 31 December 2022, major non-RMB assets and liabilities
are cash and bank balances, senior notes and bank borrowings denominated in United State
Dollars (“US$”) or Hong Kong Dollars (“HK$”). Fluctuation of the exchange rates of RMB
against foreign currency could affect the Group’s results of operations. As at 31 December
2022, the Group has not entered into any forward exchange contract to hedge its exposure to
foreign exchange risk.
The Group’s foreign currency denominated monetary assets and liabilities as at 31

December 2022 amounted to approximately RMB444,813,000 and RMB15,591,453,000,
respectively. (31 December 2021: RMB912,060,000 and RMB18,905,384,000, respectively).
The following table shows the sensitivity analysis in RMB against relevant foreign
currencies. The sensitivity analysis includes only foreign currency denominated monetary
items and adjusts their translation at the year-end for a 5% change in foreign currency
rates. If there is a 5% appreciation/depreciation in RMB against the relevant currencies,
respectively, the effect of increase/(decrease) on the profit for the year is:
202 20
2 21
RMB’0
RMB’0 00
00
5% appreciation in RMB against:
— US$ 108,79 97,6

3 99
— HK$
1,33 43,9
4 25
5% depreciation in RMB against:
— US$ (108,7 (97,

93) 699)
— HK$ (1,334) (43,
925)

ione883 • P.160
161
3 Financial risk management (continued)

3.1 Financial risk factors (continued)
(a) Market risk (continued)
(ii) Interest rate risk
The Group’s interest rate risk arises from long-term borrowings. Borrowings obtained at
variable rates expose the Group to cash flow interest rate risk which is partially offset by
cash held at variable rates. Borrowings obtained at fixed rates expose the Group to fair
value interest rate risk. The Group closely monitors the trend of interest rate and its impact on
the Group’s interest rate risk exposure. The Group currently has not used any interest rate
swap arrangements but will consider hedging interest rate risk should the need arise.
As at 31 December 2022, if interest rates on borrowings at floating rates had been 100
basis points higher or lower with all other variables held constant, interest charges for the
year ended 31 December 2022 would increase/decrease RMB162,978,000 (2021:
RMB144,053,000), most of which would have been capitalised in qualified assets.
(b) Credit risk
The Group is exposed to credit risk in the event of the counterparties’failure to perform their
obligation in relation to its contract assets, amounts due from related parties, trade and other
receivables and cash deposits with banks and financial guarantee contracts. The Group’s
maximum exposure to credit risk in relation to financial assets is the carrying amounts of cash
and bank balances, trade and other receivables, amounts due from related parties and contract
assets shown in the consolidated balance sheet, and the maximum outstanding amount of financial
guarantee provided by the Group as disclosed in Note 31.
The Group considers the probability of default upon initial recognition of asset and whether
there has been a significant increase in credit risk on an ongoing basis throughout each
reporting period. To assess whether there is a significant increase in credit risk the Group
compares the risk of a default occurring on the asset as at the reporting date with the risk of
default as at the date of initial recognition. It considers available reasonable and supportive
forwarding-looking information. Especially the following indicators are incorporated:
• internal credit rating
• external credit rating
• actual or expected significant adverse changes in business, financial or economic

conditions that are expected to cause a significant change to the debtor’s ability to meet its
obligations
• actual or expected significant changes in the financial situation of individual property owner
or the debtor
• significant changes in the expected performance and behaviour of the debtor, including
changes in the payment status and operating results of debtor and individual property owner
Financial assets are written off when there is no reasonable expectation of recovery, such as a
debtor failing to engage in a repayment plan with the Company.
CS Hotline: 2879 8787 • Fax: 2802 0055

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162

(b) Credit risk (continued)
(i) Cash deposits at banks
As at 31 December 2022, substantially all the Group’s bank deposits included in cash
and bank balances were deposited with major financial institutions incorporated in the PRC,
which management believes are of high credit quality without significant credit risk. The
Group’s bank deposits as at 31 December 2022 were as follows:
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Big four commercial banks of the PRC (Note (i)) 4,209,09 5,654,0
4 76
Other listed banks in the PRC 4,874,17 13,115,2

2 91
Other non-listed banks in the PRC 460,67 3,286,0

0 79
9,543,93 22,055,4
6 46
Note (i): Big four commercial banks include Industrial and Commercial Bank of China, China Construction Bank, Agricultural
Bank of China and Bank of China.
(ii) Trade receivables and contract assets
The Group applies the HKFRS 9 simplified approach to measuring expected credit losses
which uses a lifetime expected loss allowance for all trade receivables and contract assets. To
measure the expected credit losses, trade receivables and contract assets have been grouped
based on shared credit risk characteristics and the days of initial recognition.
Meanwhile, the Group has the right to cancel the contracts once repayment from the
customers is in default; it also has monitoring procedures to ensure that follow-up actions
are taken to recover overdue balances. The Group has no significant concentrations of
credit risk, with exposure spread over a number of counterparties and customers.
The Group has arranged bank financing for certain purchasers of the Group’s property
units and provided guarantees to secure obligations of such purchasers for repayments.
Detailed disclosure of such guarantees is made in Note 31. If a purchaser defaults on the
payment of its mortgage loan during the guarantee period, the bank holding the guarantee
may demand the Group to repay the outstanding principal of the loan and any interest
accrued thereon. Under such circumstances, the Group is able to forfeit the customer’s
deposit and resell the property to recover any amounts paid by the Group to the bank. In this
regard, the directors of the Company consider that the Group’s credit risk is significantly
reduced and immaterial.

ione883 • P.162
163

(b) Credit risk (continued)
(iii) Other receivables and amounts due from related parties
Other financial assets at amortised cost include other receivables and amounts due from
related parties. The Group uses the expected credit loss model to determine the expected loss
provision for other receivables and amounts due from related parties. The Group has assessed
that there is no significant increase of credit risk for other receivables since initial recognition.
Thus the Group used the 12 months expected credit losses model to assess credit loss of
other receivables and amounts due from related parties.
For other receivables and amounts due from related parties, the Group assessed the credit
quality of the counter parties by taking into account their financial position, credit history
and other factors. The other receivables are mainly amounts due from minority interests,
deposits for acquisition of the land use rights and property development projects.
Management considered these receivables to be low credit risk as they have a low risk of
default and the counterparty has a strong capacity to meet its contractual cash flow
obligations in the near term. Besides, management also regularly reviews the recoverability
of these receivables and follow up the disputes or amounts overdue, if any. Therefore, the
Group considered them to have low credit risk, and thus the loss allowance is immaterial.
(iv) Financial guarantee contracts
The Group has policies in place to ensure that sales are made to purchasers with an
appropriate financial strength and appropriate percentage of down payments. The Group
has arranged bank financing for certain purchasers of the Group’s property units and
provided guarantees to secure obligations of such purchasers for repayments. Detailed
disclosure of such guarantees is included in Note 31. If a purchaser defaults on the
payment of its mortgage loan during the guarantee period, the bank holding the
guarantee may demand the Group to repay the outstanding principal of the loan and any
interest accrued thereon. Under such circumstances, the Group is entitled to take over the
legal title and possession of the related parties so that the Group can resell the property to
recover any amounts paid by the Group to the bank. In this regard, the directors of the
Company consider that the Group’s credit risk is significantly reduced.
The Group also provides guarantees to certain related parties of the Group to obtain
borrowings after assessing the credit history of these related parties. The Group closely
monitors the repayment progress of the relevant borrowings by these related parties. In
the opinion of the directors of the Company, the related party transactions were carried out
in the normal course of business and at terms mutually negotiated between the Group and
the respective related parties. The directors of the Company consider that the fair value of
these financial guarantee contracts for related parties at the date of inception was minimal, the
risk of default in payments is remote, and therefore no provision has been made in the
consolidated financial statements.
CS Hotline: 2879 8787 • Fax: 2802 0055

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164

(c) Liquidity risk
Management of the Group aims to maintain sufficient cash and bank balances or have
available funding through proceeds from pre-sale of properties and an adequate amount of
available financing including short-term and long-term borrowings and obtaining additional
funding from shareholders. Due to the dynamic nature of the underlying businesses, the Group
maintains flexibility in funding by maintaining adequate amount of cash and bank balances and
through having available sources of financing.
In addition, as disclosed in Note 31 to the consolidated financial statements, the Group might
be required to make payments in respect of the financial guarantee contracts entered into by the
Group. The maximum liabilities guaranteed by the Group were principal amounts together with
the accrued interests and other charges.
The table below sets out the Group’s financial liabilities by relevant maturity grouping at each
balance sheet date. The amounts disclosed in the table are the contractual undiscounted cash
flows.
ione883 • P.164
165

(c) Liquidity risk (continued)
Betwe Betwe
en en
Less Ov
1 2 er
tha
an an To
n 5
d d tal
1 year
2 5 s RMB’
ye 000
ye ye RMB’
ar
ar ar 000
RMB’ s s
000
RMB’ RMB’
000 000
As at 31 December 2022
Non-derivatives
Borrowings
24,911,8 15,605,6 7,317,2 — 47,834,8
Trade and other payables, 86 73 91 50
excluding accrual for staff
costs and other taxes
payable
Lease liabilities
—
7,525,9 6,185,6 — 13,711,5
Amounts due to related parties 54 06 — 60
Financial guarantee contacts (Note 1,2
31) 14,7 2,5 91 — 18,5
04 95 90
— —
7,075,5 — 7,075,5
44 299,8 44
2,170,1 00
22,409,6 78 24,879,6
00 38
61,937,748 23,964,052 7,618,382 — 93,520,182

As at 31 December 2021
Non-derivatives
Borrowings
Trade and other payables, 25,444,0 34,192,4 4,959,2 64,595,7

45 27 88 — 60
excluding accrual for staff
costs and other taxes
payable
Lease liabilities
Amounts due to related parties 20,898,7 — 20,898,7
24 — — 24
9
Financial guarantee contacts (Note 31) 14,8 12,5 2,7 3 31,0
54 68 05 4 61
9,087,5 — — — 9,087,5
30 30
1,913,3 1,992,6 —
25,050,4 29 74 28,956,4
17 20
80,495,570 36,118,324 6,954,667 934 123,569,495
Note: Interests on borrowings were calculated on borrowings held as at 31 December 2022 (2021: same). Floating-rate interests
were estimated using the current interest rate as at 31 December 2022 (2021: same).

ione883 • P.165
166

3.2 Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for the owners and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid
to the owners, issue new shares or sell assets to reduce debts.
The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net
borrowings divided by total equity as shown in the consolidated balance sheet. Net borrowings are
calculated as total borrowings (including current and non-current borrowings as shown in the
consolidated balance sheet) less cash and bank balances.
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Total borrowings (Note 26) 42,403,66 56,777,9

8 21
Less: Cash and bank balances (Note 21) (9,543,93 (22,055,4

6) 46)
Net borrowings 32,859,73 34,722,4

2 75
Total equity 30,634,51 52,280,9

9 50
Gearing ratio 107.26 66.4

% %
(Z:\00. AR\152666 Ronshine China AR22\02N E_Ronshine China\17b
ione883 • P.166
167

3.3 Fair value estimation
(a) Financial assets and liabilities
(i) Fair value hierarchy
The Group’s financial assets include cash and bank balances, trade and other
receivables, amounts due from related parties and FVPL. The Group’s financial liabilities
include trade and other payables, amounts due to related parties, and borrowings. The fair
value for financial assets and liabilities with maturities of less than one year are assumed to
approximate their carrying amounts due to their short term maturities.
Level 1: The fair value of financial instruments traded in active markets (such as publicly
traded derivatives, and trading and available-for-sale securities) is based on

quoted market prices at the end of the reporting period. The quoted market price
used for financial assets held by the Group is the current bid price. These
instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market is
determined using valuation techniques which maximise the use of

observable market data and rely as little as possible on entity-specific estimates. If
all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3. This is the case for unlisted equity securities.
(ii) Valuation techniques used to determined fair values
Specific valuation techniques used to value financial instruments include:
• The use of quoted market prices or dealer quotes for similar instruments.
• The fair value of foreign currency forwards is determined using forward exchange rates
at the balance sheet date.
• The fair value of the remaining financial instruments is determined using discounted
cash flow analysis.
ione883 • P.167
168

3.3 Fair value estimation (continued)
(a) Financial assets and liabilities (continued)
(ii) Valuation techniques used to determined fair values (continued)
The following table presents the Group’s FVPL were measured at fair value at 31 December
2022.
Note Level 2 Level 3 Total
Recurring fair value measurements RMB’0 RMB’0 RMB

Financial assets 00 00 ’000
Financial assets at fair value through profit or loss 18 70,096 843,783 913,879
The following table presents the Group’s FVPL were measured at fair value at 31
December
2021.
Leve Leve To
l2 l3 tal
Recurring fair value measurements Note
RMB’ RMB’ RMB’
000 000 000
Financial assets
1,138,522
(iii) Fair value measurements using significant unobservable inputs (level 3)
The following table presents the changes in level 3 items for the periods ended 31
December 2022 and 2021.
Year end 31 December
2022 2021
RMB’000 RMB’000
Financial assets at fair value through profit or loss
Opening balance 909,043 351,968
Additions 435,460 531,105

Disposals (500,720) —
Fair value gains — 25,970
Closing balance 843,783 909,043
Unrealised fair value gains recognised for the year — 25,970

ione883 • P.168
169

(a) Financial assets and liabilities (continued)
(iii) Fair value measurements using significant unobservable inputs (level 3) (continued)
The FVPL were measured at fair value, which was grouped into level 3 fair value
measurements, subsequent to initial recognition. Techniques, such as discounted cash flow
analysis, were used to determine fair value for the financial assets.
The Group’s policy was to recognise transfers into and transfers out of fair value
hierarchy levels as at the end of the reporting period. There were no transfers among levels 1,
2 and 3 for recurring fair value measurements.
There were no changes in valuation technique during the year.
(b) Non-financial assets
The non-financial assets of the Group are mainly investment properties measured at fair value.
(i) Fair value hierarchy
This note explains the judgements and estimates made in determining the fair values of the
non- financial assets that are recognised and measured at fair value in the consolidated
financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Group has classified its non-financial assets into the three levels
prescribed under the accounting standards. An explanation of each level is provided in Note
3.3(a).
The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels
as at the end of the reporting period.
There were no transfers among levels 1, 2 and 3 for recurring fair value measurements
during the year.
ione883 • P.169
170

(b) Non-financial assets (continued)
(ii) Valuation techniques used to determine level 3 fair values
The directors determine a property’s value within a range of reasonable fair value
estimates. Fair values of the Group’s completed investment properties are derived using
the income capitalisation approach. This valuation method takes into account the net
rental income of a property derived from its existing leases and/or achievable in the
existing market with due allowance for the reversionary income potential of the leases, which
have been then capitalised to determine the fair value at an appropriate capitalisation rate.
Fair values of the Group’s investment properties under development are derived using
the direct comparison approach and residual approach. The direct comparison approach
involves the analysis of recent market sales evidence of similar properties to compare with
the premises under valuation. Each comparable is analysed on the basis of its unit rate; each
attribute of the comparable is then compared with the subject and where there is a
difference, the unit rate is adjusted in order to arrive at the appropriate unit rate for the
subject. The residual approach takes into account the residual value on the completed gross
development value (“GDV”) after deduction of the outstanding construction costs and
expenses as well as profit element. It first assesses the GDV or estimated value of the
proposed developments as if completed at the date of valuation. Estimated cost of the
development includes construction costs, marketing, professional fees, finance charges, and
associated costs, plus an allowance for the developer’s risk and profit. The development
costs are deducted from the GDV. The resultant figure is the residual value of the subject
property.
All resulting fair value estimates for investment properties are included in level 3.
(iii) Fair value measurements using significant unobservable inputs (level 3)
Detailed disclosures of the changes in level 3 items for the years ended 31 December 2022
and 31 December 2021 for recurring fair value measurements are disclosed in Note 17.
ione883 • P.170
171

(iv) Valuation inputs and relationships to fair value
The following table summarises the quantitative information about the significant
unobservable inputs used in recurring level 3 fair value measurements . See (ii) above for
the valuation techniques adopted.
Fair value at 31 December Range of inputs in
Properties status 2023 2022 Unobservable 2023 2022

inputs
RMB’000 RMB’000
Market rents2 [….] [34-1,700]

(RMB/square meter/month)
Under development
[…] 1,590,100 [….] 362-6,288
Market
prices2 (RMB/square
meter)
Market
[….] [27-544]
rents2 (RMB/square
meter/month)
Anticipated
developer’s
profit [5%-20%]
margins3 [….]
Total
[…..] 12,320,100
ione883 • P.171
172

(iv) Valuation inputs and relationships to fair value (continued)
Relationship of unobservable inputs to fair value:
— 1 The higher the capitalisation rate, the lower the fair value;
— 2 The higher the market rents and market prices, the higher the fair value;
— 3 The higher the anticipated developer’s profit margins, the lower the fair value.
(v) Valuation processes
The Group’s investment properties were valued at 31 December 2022 by independent

professionally qualified valuer, Savills Real Estate Valuation (Guangzhou) Ltd. Beijing Branch
(2021: same), who has recent experience in the locations and segments of the investment
properties valued. For all investment properties, their current use equates to the highest and
best use.
The Group’s finance department includes a team that reviews the valuations performed by
the independent valuer for financial reporting purposes. This team reports directly to the
executive directors . Discussion of valuation processes and results are held amongst the
executive directors, the valuation team and valuer at least once every six months, in line with
the Group’s interim and annual reporting process.
At each reporting period end, the finance department:
• Verifies all major inputs to the independent valuation report;
• Assess property valuations movements when compared to the prior period

valuation report; and
• Holds discussions with the independent valuer.
As part of this discussion, the team presents a report that explains the reasons for the fair
value movements.
ione883 • P.172
173
4 Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs to exercise judgement in applying the Group’s
accounting policies.
Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the entity and that are
believed to be reasonable under the circumstances.
( a) Provisions for properties under development, completed properties held for

sale and prepayment for acquisition of land use rights
The Group assesses the carrying amounts of properties under development, completed properties held
for sale and prepayments for acquisition of land use rights according to their net realisable values based on
the reliability of these properties and prepayments. As a result, provisions for properties under
development, completed properties held for sale and prepayment for acquisition of land use rights
involve critical accounting estimates on the future selling prices and variable selling expenses for the
properties, as well as the costs to completion for properties under development and prepayments for
acquisition of land use rights.
(b) Classification of subsidiaries, joint ventures and associates

The classification of an investment as a subsidiary, a joint venture or an associate is based on whether
the Group is determined to have control, joint control or significant influence over the investee, which
involves judgements through the analysis of various factors, including the Group’s representation on
the chief decision making authorities of an investee, such as board of directors’ meetings and
shareholders’ meetings, as well as other facts and circumstances.
Subsidiaries are consolidated, which means each of their assets, liabilities and transactions are
included line-by-line in the Group’s consolidated financial statements, whereas the interests in joint
ventures and associates are equity accounted for as investments on the consolidated balance sheet.
Accordingly, any inappropriate classification as a result of recognition or derecognition of the

investments could have a material and pervasive impact on the consolidated financial statements.
ione883 • P.173
174
4 Critical estimates and judgements (continued)

(c) Corporate income tax, land appreciation tax and deferred taxation
The Group is subject to corporate income tax and land appreciation tax (“LAT”) in the PRC. Judgement
is required in determining the provision for corporate income tax and LAT. There are many transactions
and calculations for which the ultimate determination is uncertain during the ordinary course of
business. The Group has not finalised its corporate income tax and LAT calculations and payments with
certain local tax authorities in charge of certain of the Group’s projects in the PRC. The Group
recognised the corporate income tax and LAT based on management’s best estimates according to the
interpretation of the applicable tax rules. Where the final tax outcome of these matters is different from
the amounts that were initially recorded, such difference will impact the corporate income tax and LAT
provision in the year in which such determination is made.
Deferred income tax assets relating to certain temporary differences and tax losses are
recognised when management considers to be probable that future taxable profit will be available
against which the temporary differences or tax losses can be utilised. The outcome of their actual
utilisation may be different.
Deferred income tax liabilities are provided to the taxable temporary differences arising from the
Group’s investments in subsidiaries, joint ventures and associates unless the Group can control the
timing of the reversal of the temporary differences and it is probable that the temporary differences will
not reverse in the foreseeable future. Provisions for deferred land appreciation tax liabilities relating to the
taxable temporary difference of investment properties are provided unless management determines that
the expected manner of recovery of the properties is through rental income from the lease of the
properties only. All these involve management’s judgements and estimations and the actual outcome may
be different.
ione883 • P.174
175
5 Segment information
The executive directors have been identified as the CODM. Management has determined the operating
segments based on the reports reviewed by the executive directors, which are used to allocate resources
and assess performance.
The Group is principally engaged in the property development in the PRC. Management reviews the
operating results of the business as one segment to make decisions about resources to be allocated.
Therefore, the executive directors regard that there is only one segment which is used to make strategic
decisions. Revenue and profit after income tax are the measures reported to the executive directors for the
purpose of resources allocation and performance assessment.
The major operating entities of the Group are domiciled in the PRC. All of the Group’s revenue are derived in
the PRC for the year ended 31 December 2022 (2021: same).
(a) As at 31 December 2022, except for parts of term deposits and financial assets at fair value through profit or
loss, other assets of the Group were located in the PRC (2021: same).
(b) There was no revenue derived from a single external customer accounting for 10% or more of the Group’s
revenue for the year ended 31 December 2022 (2021: same).
6 Revenue
202 20
2 21
RMB’0
RMB’0 00
00
Disaggregation of revenue from contracts with customers:

Revenue from sales of properties
— Recognised at point in time
28,640,29 31,703,6
0 28
Revenue from construction services, hotel operations and

others: — Recognised at a point in time
— Recognised over time
481,5
596,84 07
5
646,43 934,5
77
4
29,883,569 33,119,712
Revenue from other source:
— Rental income
175,723 164,302
30,059,292 33,284,014

ione883 • P.175
176
7 Expenses by nature
202 20
2 21
RMB’0
RMB’0 00
00
Cost of properties sold (excluding staff costs)

35,889,113 29,250,399
Staff costs (including directors’emoluments) (Note 8)
751,334 1,011,731
Advertising costs 500,826 595,204
Taxes and other levies 189,263 303,827
Consulting fees 211,770 247,288
Property management fees 234,224 263,662

106,094 46,176
Depreciation of property, plant and equipment
79,686 84,729
Office and travelling expenses
24,679 60,780
Expenses relating to short-term leases and low-value assets
86,440 54,269
Entertainment expenses 610 2,232
Amortisation of intangible assets 36,388 36,739
Amortisation of right-of-use assets
Auditors’ remuneration
4,500 14,438
— Annual audit and interim review —
—
— Non-audit services 788,322 (4,600)
Net impairment losses/(gains) on financial assets 45,182 172,338
Others
Total
38,948,431 32,139,212
8 Staff costs – including directors’ emoluments

20 20
22 21
RMB’0
RMB’0 00
00
Fees, salaries and other benefits 708,306 934,0

46
Discretionary bonuses — —
Pension costs 43,028 77,6

85
751,334 1,011,7
31
Employees in the Group’s PRC subsidiaries are required to participate in a defined contribution
retirement scheme administrated and operated by the local municipal government. The Group’s PRC
subsidiaries contribute funds which are calculated on certain percentage of the prior year employee salary as
agreed by local municipal government to the scheme to fund the retirement benefits of the employees.

ione883 • P.176
177
8 Staff costs – including directors’ emoluments (continued)

(a) Directors’ emoluments
The directors’emoluments paid/payable by the Group are as follows:

1
20 20
22 21
RMB’0
RMB’0 00
00
Fees, salaries and other benefits 13,5

13,780 72
Pension costs 2
0
23
13,803 13,5
92
(i) For the year ended 31 December 2022
Salar
ies
Discretion Pens
and
ary ion
Name of directors Fe other T
bonu
es otal
ses costs
benefit RMB’
RMB’0 RMB’ RMB’
s 000
00 000 000
RMB’0
00
Executive directors:
— Mr. Ou — 2,3 — 4 2,3
32 36
— Mr. Yu Lijuan — — 4
3,0 3,0
— Ms. Zeng Feiyan — 24 — 4 28
— Mr. Ruan Youzhi (resigned on 2,4 2,4

24 28
15 August 2022) — — 3
— Mr. Zhang Lixin — — 4
1,6 1,6
— Mr. Wu Jianxing (appointed on 15 18
15 August 2022) — 2,0 — 4 2,0
24 28
Non-executive director:
— Mr. Li Shupei
1,5 1,5
(appointed on 4 November 57 61
2022) — Ms. Chen Shucui
— — —
(resigned on 4 November 2022)
Independent non-executive directors:

— — —
— Mr. He Jiarong
(appointed on 15 August 2022) — —
— Mr. Qu Wenzhou
(resigned on 22 July 2022) — —
— Mr. Ren Yunan 1 — —
0
— Mr. Ruan Weifeng 0
— —
1 — —
6 — 1
8 — — 0
0
2
6
8 —
2 — 1
6 6
— 8
8
2
6
8
2
6
8
804 12,976 — 23 13,803

ione883 • P.177
178

(a) Directors’ emoluments (continued)
(ii) For the year ended 31 December 2021
Salari
es
and Discretion Pensi

other ary on
Name of directors Fees ben bon c To

efits uses osts tal
RMB’000 RMB RMB RMB
’000 ’000 ’000 RMB’
000
Executive directors:
— Mr. Ou 2,3 — 4 2,3
32 36
— Mr. Yu Lijuan — — 4
3,0 3,0
— Ms. Zeng Feiyan — 24 — 4 28
— Mr. Ruan Youzhi — 2,4 2,4

24 28
— Mr. Zhang Lixin —
— 3
— — 4
1,6 1,6
15 18
Non-executive director:
2,0 2,0
24 — 4 28
— Ms. Chen Shucui
—
Independent non-executive 1,5 1,5

57 61
directors:
— Mr. Ren Yunan

100 — —
— Mr. Qu Wenzhou
— Mr. Ruan Weifeng
168 — —
— —
268
268
— —
— —
— — — 1
0
— — 0
— —
—
— 1
6
— 8
2
6
8
2
6
8
804 12,976 — 23 13,803
During the year ended 31 December 2022, two (2021: one) of the directors of the Company,
including Ms. Chen Shucui and Mr. Li Shupei were not entitled to any emoluments. None of the
directors of the Company have waived their emolument or agreed to waive their emoluments.
During the year ended 31 December 2022, no retirement benefits, payments or benefits in respect
of termination of directors’ services were paid or made, directly or indirectly, to the directors,
nor are any payable (2021: same). No consideration was provided to or receivable by third parties
for making available directors’services (2021: same).

ione883 • P.178
179

(a) Directors’ emoluments (continued)
There were no loans, quasi-loans or other dealings in favour of the directors, their controlled
bodies corporate and connected entities as at 31 December 2022 (2021: same).
Other than those disclosed in Note 35(e), there were no significant transactions, arrangements and
contracts in relation to the Group’s business to which the Company was a party and in which a director
of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year
or at any time during the year (2021: same).
(b) Five highest paid individuals

For the year ended 31 December 2022, the five individuals whose emoluments were the highest in
the Group included five (2021: four) directors, whose emoluments are reflected in the analysis presented
above. For the year ended 31 December 2021, the emoluments payable to the remaining one
individual are as follows:

1
20 20
22 21
RMB’0
RMB’0 00
00
Fees, salaries and other benefits N/A 2,1

82
Discretionary bonuses N/A —
Pension costs N/A 4
N/A 2,1
86
The emoluments payable to the remaining one (2022: none) individual for the year ended 31 December
2021 falls within the following band:
20 20
22 21
Annual emolument band:

— HK$2,000,000 – HK$3,000,000 N/A
1
During the year ended 31 December 2022, no emolument was paid by the Group to any of the
above directors or the five highest paid individuals as an inducement to join or upon joining the
Group or as compensation for loss of office (2021: none).

ione883 • P.179
180
9 Other income and other gains or losses
20 20
22 21
RMB’0
RMB’0 00
00
Other income:
Interest income 101,186 373,6

61
Forfeited deposits from customer 38,947 42,4

71
Government grants (note i) 15,686 27,5

80
Miscellaneous 8,430 6,5

72
164,249 450,2
84
Other gains or losses
Gain from bond repurchase 327,041 —
(Loss)/gain on disposal of subsidiaries (860,445) 633,3

28
Fair value (losses)/gains on financial assets at FVPL (14,616) 25,9

70
Net foreign exchange gains/(losses) (note ii) 292 (32,4

38)
Loss from disposal of associates and joint ventures (628,932) (67,1

35)
Gain from disposal of property, plant and equipment 25,308 147,5

83
(1,151,352) 707,3
08
(i) Government grants consisted mainly of financial subsidies granted by the local governments. There are no unfulfilled conditions or
other conditions attached to the government grant recognised during the year ended 31 December 2022 (2021: same).
(ii) Amount mainly represents the net losses on translation of foreign currency financial assets and liabilities from foreign currency into RMB at
the prevailing year-end exchange rate. It does not include the exchange gain or loss of translation of borrowings which are included in
the “finance (costs)/income – net”(Note 10).

ione883 • P.180
181
10 Finance (costs)/income – net
20 20
22 21
RMB’0
RMB’0 00
00
Finance income
— Interest income from bank deposits 278,389 315,2

51
— Net foreign exchange gain —
421,2
41
278,389 736,4
92
Finance costs
— Interest expenses of borrowings (1,896,245) (5,867,0

57)
— Interest expenses of lease liabilities (1,315) (2,7

58)
— Net foreign exchange loss (1,222,643) —
— Less: capitalised interest (Note (i)) 1,030,724 5,233,5

41
(2,089,479) (636,2
74)
Finance (costs)/income – net (1,811,090) 100,2

18
(i) The capitalisation rate used to determine the amount of borrowing costs to be capitalised, which is the weighted average interest
rate applicable to the Group’s borrowings for the year ended 31 December 2022, was 6.67% (2021: 6.73%).
ione883 • P.181
182
11 Subsidiaries
(a) The Group’s principal subsidiaries
The Group’s principal subsidiaries at 31 December 2022 are set out below. The proportion of
ownership interests held equals the voting rights held by the Group. The country of incorporation or
registration is also their principal place of business.
Owne
Authorised/ Ownership rship
interest held interest
Place of registered/paid up
by the Group held
Type operation/ % by
capital and debt
Name of companies of Principal non-
legal establishment securities
Indirectly held by the controlli
status activities ng
Company:
interest
融信(福建)投資集團有限公司 Rongxin (Fujian) Investment Limited PRC Property Registered and paid up 100 —
Group Co., Ltd. liability develop capital of
comp ment RMB4,025,000,000
any
福州融信雙杭投資發展有限公 Fuzhou Rongxin Shuanghang Limited PRC Property Registered capital of 100 —
司 Investment Development liability develop RMB200,000,000 and
Co., Ltd comp ment paid up capital of
any RMB100,000,000
福建世歐投資發展有限公司 Fujian Shiou Investment Limited PRC Investment Registered and paid up 100 —
Development Co., Ltd liability holdings capital of
comp RMB500,000,000
any
杭州融信愷昇房地產開發有限 Hangzhou Rongxin Limited PRC Property Registered and paid up 100 —
公司 Kaisheng Real Estate liability develop capital of
Development Co., Ltd comp ment RMB1,000,000,000
any
上海愷冠臻房地產開發有限公 Shanghai Kaiguanzhen Real Limited PRC Property Registered and paid up 50 50
司 liability develop capital of
Estate Development Co., Ltd any
上海愷珩房地產開發有限公司 Shanghai Kaiheng Real Limited PRC Property Registered and paid up 50 50
liability develop capital of
昆山融信愷庭房地產開發有限 Kunshan Rongxin Kaiting Real Limited PRC Property Registered and paid up 50 50
公司 liability develop capital of
浙江德盛置業有限公司 Zhejiang Desheng Property Co., Limited PRC Property Registered and paid up 74
Ltd liability develop capital of 26Note (i)
comp ment RMB50,000,000
any
杭州金昇房地產開發有限公司 Hangzhou Jinsheng Real Limited PRC Property Registered and paid up 75
liability develop capital of 25Note (i)
鄭州融信朗悅置業有限公司 Zhengzhou Rongxin Langyue Limited PRC Property Registered and paid up 49
Property Co., Ltd liability develop capital of 51Note (i)
any
上海興美置業有限公司 Shanghai Xingmei Property Co., Limited PRC Property Registered and paid up 66
Ltd liability develop capital of 34Note (i)
any
廣州市融佳企業管理有限公司 Guangzhou Rongjia Enterprise Limited PRC Property Registered and paid up 51 49
liability develop capital of
Management Co., Ltd any
福建融光錦置業有限公司 Fujian Rongguangjin Real Limited PRC Property Registered capital of 51 49

liability develop RMB2,000,000,000 and
comp ment paid up capital of
Estate Co., Ltd RMB4,000,000,000
any
安徽海亮房地產有限公司 Anhui Hailiang Real Estate Co., Limited PRC Property Registered capital of 55 45
Ltd liability develop RMB3,150,000,000 and
comp ment paid up capital of
any RMB2,162,500,000
*
The English names of PRC companies above represent management’s best effort in translating their Chinese names as no
English names have been registered or available.

ione883 • P.182
183
11 Subsidiaries (continued)
(a) The Group’s principal subsidiaries (continued)
(i) In accordance with the cooperation agreements with co-developers and articles of
associations of these companies, the Group has controlling power in the shareholders’
meetings and board of directors’ meetings in decision on the relevant operational activities.
Accordingly, the Group has exposure or rights to variable returns from its involvement with these
companies, and has the ability to affect those returns through its majority voting position and the
existing rights to direct the relevant activities. Accordingly, these companies are accounted for as
subsidiaries of the Group.
(ii) The conversion of RMB denominated balances of cash and bank balances into foreign currencies
and the remittance of such foreign currencies out of the PRC are subject to relevant rules
and regulations of foreign exchange control promulgated by the PRC government. These
regulations provide for restrictions on exporting capital from the PRC, other than through normal
dividends. As at 31 December 2022, the carrying amount of the cash and bank balances included in
the consolidated financial statements to which these restrictions applied was denominated in
RMB(2021: same).
Certain equity interests in the subsidiaries of the Company were pledged for financing
arrangements of the Group as at 31 December 2022 and 2021 (Note 33).
The above table lists the principal subsidiaries of the Group which, in the opinion of the directors,
principally affect the results and net assets of the Group. To give full details of subsidiaries would, in the
opinion of the directors, result in particulars of excessive length.
( b) Summarised financial information on subsidiaries with material non-
controlling interests
Set out below are the combined summarised financial information for the Anhui Hailiang Real Estate Co,
Ltd and its subsidiaries (the “Hailiang Group”) that has non-controlling interests that are material to the
Group. Hailiang Group was acquired from a third party on 31 July 2017. The amounts disclosed for the
Hailiang Group are before inter-company eliminations.
Summarised balance sheet as at 31 December 2022 and 2021
As at 3 1 December
20 2
22 021
RMB’
RMB’0 000
00
Non-current assets 971,97 1,069,3

5 87
Non-current liabilities (1,483,03 (644,3

9) 84)
Non-current net assets (511,06 425,0

4) 03
Current assets 14,934,93 14,193,0

3 50
Current liabilities (7,294,65 (3,877,8
8) 41)
Current net assets 7,640,27 10,315,2

5 09
Net assets 7,129,21 10,740,2

1 12
Proportionate share of the net assets attributable to

non-controlling interests 5,125,7
3,448,81
1 46

ione883 • P.183
184
11 Subsidiaries (continued)
( b) Summarised financial information on subsidiaries with material non-
controlling interests (continued)
Summarised income statement and statement of comprehensive income for the years
ended 31 December 2022 and 2021
Year Year
ended 31 ended 31
December
December
20
2022 21
RMB’0 RMB’0
00 00
Profit before income tax 346,997 436,2

17
Income tax expense (93,028) (60,7

32)
Profit for the year 253,969 375,4

85
Total comprehensive income for the year 253,969 375,4

85
Total profit and comprehensive income for the year

allocated to non-controlling interests 269,4
122,147
72
Summarised statement of cash flows for the years ended December 2022 and
31 2021
Year ended Year ended
31 December 31 December
2022 20
21
RMB’0 RMB’0
00 00
Net cash used in operating activities (847,765)

(969,213)
Net cash used in investing activities (355,302)

(406,201)
Net cash generated from financing activities 64,66 57,1

4 18
Net decrease in cash and cash equivalents (1,138,403)

(1,318,296)
Cash and cash equivalents at beginning of the year 1,994,839

3,313,135
Cash and cash equivalents at end of the year 856,436

1,994,839

ione883 • P.184
185
12 Investments accounted for using the equity method

(a) Investments accounted for using the equity method
The Group considers that none of the joint ventures or associates as at 31 December 2022 was significant
to the Group and thus the individual financial information of the joint ventures or associates was not
disclosed (2021: same). The summarised financial information of individually immaterial joint ventures and
associates on an aggregate basis is as follows:
(i) Amounts recognised in the consolidated balance sheet are as follows:
As at 31 December
202 20
Investments accounted for using the equity

method: — Joint ventures
— Associates 3,825,573 5,972,032

1,628,301 5,883,064
5,453,874 11,855,096
( ii) The amounts recognised in the consolidated income statement are as follows:
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Share of net profit/(loss) of associates and joint

ventures accounted for using the equity method:
— Joint ventures
407,89 194,2
— Associates 4 32
106,32 (91,
9 992)
514,223 102,240
(iii) During the year ended 31 December 2021, the Group made equity investments with total consideration
of RMB1,469,190,000 (2022: nil) in certain real estate project companies where the Group
has significant influence or jointly controls. The Group accounted for these equity investments
using the equity method.

ione883 • P.185
186
12 Investments accounted for using the equity method (continued)

( b) Set out below are material joint ventures and associates of the Group as at
3 1 December 2 0 2 2 . The place of incorporation or registration is also their

principal place of business.
Plac %
e of of
Measurement Princ
incorpora owner
ipal
Name of entity method
Joint ventures
杭州融晅房地產開發有限公 Hangzhou Rongxun Real Estate PRC 82% Equit Pro

司 y perty
Development Co., Ltd. develop
ment
保定智泰房地產開發有限公 Baoding Zhitai Real Estate PRC 50% Equit Pro

司 y perty
ment
杭州融幸商業發展有限公司 Hangzhou Rongxing PRC 66% Equit Pro

Commercial Development y perty
Co., Ltd. develop
ment
海融(漳州)房地產有限公司 Hairong (Zhangzhou) Real Estate PRC 50% Equit Pro

y perty
Co., Ltd. develop
ment
福州裕百川房地產開發有限 Fuzhou Yubaichuan Real Estate PRC 34% Equit Pro

公司 y perty
ment
杭州眾旭置業有限公司 Hangzhou Zhongxu Property PRC 30% Equit Pro

y perty
Co., Ltd. develop
ment
東台市新碧房地產開發有限 Dongtai Xinbi Real Estate PRC 11% Equit Pro

公司 y perty
ment
阜陽綠地置業有限公司 Fuyang Greenland Property PRC 18% Equit Pro

y perty
Co., Ltd. develop
ment
金華市瑞盈房地產有限公司 Jinhua Ruiying Real Estate PRC 50% Equit Pro

Co., Ltd. y perty
develop
ment
慈溪市金桂置業有限公司 Cixi Jingui Property Co., Ltd. PRC 21% Equit Pro
y perty
develop
ment
杭州乾唐房地產開發有限公 Hanzhou Qiantang Real Estate PRC 34% Equit Pro

司 y perty
ment
杭州星榮置業有限公司 Hanzhou Xingrong Property PRC 20% Equit Pro

y perty
Co., Ltd. develop
ment

ione883 • P.186
187
12 Investments accounted for using the equity method (continued)

(b) Set out below are material major joint ventures and associates of the Group as
at 3 1 December 2 0 2 2 . The place of incorporation or registration is also their

principal place of business. (continued)
Plac %
e of of
Measurement Princ
incorpora owner
ipal
Name of entity method
Associates
杭州銘昱房地產開發有限公 Hangzhou Mingyu Real PRC 49% Equity Property
司 Estate Development
Co., Ltd. development
Nantong Jianghe 50% Equity Property

PRC
南通江河置業有限公司 Property
development
Co., Ltd.
Property
Hangzhou Longyi Real PRC 49% Equity
杭州龍毅房地產開發有限公 development
Co., Ltd. Property
Hangzhou Rongqia PRC 49% Equity development

杭州融洽實業有限公司 Industrial
Property
Co., Ltd. PRC 15% Equity development
青島西海岸科創投資開發有限公司 Qingdao West Coast

Kechuang Investment
Development Co., Ltd. Property
鎮江億騰房地產開發有限公 development
Zhenjiang Yiteng Real PRC 18% Equity
司
Estate Development Property
Co., Ltd.
development
杭州錦虹房地產開發有限公 Hanzhou Jinhong Real PRC 25% Equity Property
Co., Ltd. development
Hangzhou Binxing PRC 20% Equity

杭州濱興實業有限公司 Industrial Co., Ltd.
The English names of PRC companies above represent management’s best effort in translating their Chinese names as no English
names have been registered or available.
ione883 • P.187
188
13 Income tax expenses
2022 20
21
RMB’000
RMB’0
00
Current income tax:

PRC corporate income tax 571,934 738,7
17
PRC LAT 102,175
120,8
59
674,109 859,5
76
Deferred income tax:
PRC corporate income tax (note 27) (146,277) (113,7

08)
Income tax expenses 527,832 745,8

68
The income tax on the Group’s (loss)/profit before income tax differs from the theoretical amount that
would arise using the tax rate applicable to profit/loss of the consolidated entities as follows:
20 20
22 21
RMB’0
RMB’0 00
00
(Loss)/profit before income tax (11,912,1 2,472,

18) 600
Less: share of net profits of associates and joint ventures (102,
(514,223)
240)
(12,426,341) 2,370,3
60
Tax calculated at applicable corporate income tax rates (3,176,519) 541,5
22
Effect of income not taxable for tax purpose (11,436) (13,3

88)
Effect of expenses not deductible for tax purpose 126,767 60,4

25
Effect of tax losses not recognised as deferred tax assets 3,512,389 66,6
65
PRC LAT deductible for income tax purpose (25,544) (30,2

15)
PRC corporate income tax 425,657 625,0

09
PRC LAT 102,175 120,8

59
527,832 745,8
68
Deferred tax liabilities of RMB797,274,700 (2021: RMB1,920,758,300) have not been recognised for the
withholding tax that would be payable on the unremitted earnings of certain subsidiaries amounting to
RMB7,972,747,000 as at 31 December 2022 (31 December 2021: RMB19,207,583,000). The Group does not
have a plan to distribute these earnings out of the PRC in the foreseeable future.

ione883 • P.188
189
13 Income tax expense (continued)

PRC corporate income tax
The income tax provision of the Group in respect of operations in Mainland China has been calculated at
the applicable tax rate on the estimated assessable profits for the years ended 31 December 2022 and 2021,
based on the existing legislation, interpretations and practices in respect thereof.
The corporate income tax rate applicable to the group entities located in Mainland China is 25% according to
the Corporate Income Tax Law of the PRC (the“CIT Law”) effective on 1 January 2008.
PRC LAT
Pursuant to the requirements of the Provisional Regulations of the PRC on LAT effective on 1 January 1994,
and the Detailed Implementation Rules on the Provisional Regulations of the PRC on LAT effective on 27
January 1995, all income from the sale or transfer of state-owned land use rights, buildings and their
attached facilities in the PRC is subject to LAT at progressive rates ranging from 30% to 60% of the
appreciation value, with an exemption provided for sales of ordinary residential properties if their appreciation
values do not exceed 20% of the sum of the total deductible items.
The Group has made provision of LAT for sales of properties according to the aforementioned progressive rates.
PRC dividend withholding income tax

Pursuant to the Detailed Implementation Regulations for implementation of the CIT Law issued on 6
December 2007, dividends distributed from the profits generated by the PRC companies after 1 January 2008 to
their foreign investors shall be subject to this withholding income tax of 10%, a lower 5% withholding income
tax rate may be applied when the immediate holding companies of the PRC subsidiaries are incorporated in
Hong Kong and fulfil the requirements to the tax treaty arrangements between the PRC and Hong Kong. The
Group has not accrued any withholding income tax for these undistributed earnings of its PRC subsidiaries as
the Group does not have a plan to distribute these earnings from its PRC subsidiaries.
Hong Kong profits tax

The applicable Hong Kong profits tax rate was 16.5% for the year ended 31 December 2022 (2021: 16.5%).
Hong Kong profits tax was not been provided as the Group did not have any assessable profit subject to
Hong Kong profits tax for the year ended 31 December 2022 (2021: nil).
Overseas income tax

The Company was incorporated in the Cayman Islands as an exempted company with limited liability under
the Companies Act Cap.22 of the Cayman Islands and, is exempted from Cayman Islands income tax. The
Company’s direct subsidiary in the British Virgin Islands (the“BVI”) was incorporated under the Business
Companies Act of the British Virgin Islands and is exempted from British Virgin Islands income tax.
AR22\02N E_Ronshine
China\17b E_Notes.indd)
2023 • 01:24 22/04/2023
• (Q01) • ione883 • P.189
190
14 (Loss)/earnings per share

(a) Basic (loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to owners of
the Company by the weighted average number of ordinary shares in issue during the financial year.
(Loss)/profit attributable to owners of the Company (RMB’000) 2022 (11,234,836) 2021

1,295,049
Weighted average number of ordinary shares in issue 1,683,431,41 1,683,782,3

7 76
Basic (loss)/earnings per share (RMB per share) (6.6 0.

7) 77
(b) Diluted (loss)/earnings per share

Diluted (loss)/earnings per share was calculated by adjusting the weighted average number of
ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The
Company’s dilutive potential ordinary shares consist of share options. For the share options, a
calculation is done to determine the number of shares that could have been acquired at fair value
(determined as the average annual market share price of the Company’s shares) based on the
monetary value of the subscription rights attached to outstanding share options.
Year ended December

31
20 20
22 21
(Loss)/profit attributable to owners of the Company (RMB’000) (11,234,836) 1,295,0

49
Weighted average number of ordinary shares in issue 1,683,431,417 1,683,782,3

76
Adjustments – share options and awarded shares —
—
Weighted average number of ordinary shares for

diluted (loss)/earnings per share
1,683,431,417 1,683,782,3
76
Diluted (loss)/earnings per share (RMB per share) (6.67) 0.
77
The Company repurchased and cancelled 1,830,000 of its own ordinary shares of the Company during the
year ended 31 December 2021 (2022: nil).

ione883 • P.190
191
15 Property, plant and equipment
Lease
hold
improveme
nts and
Of Mot furniture,
fice or fitting
Buildin and To
gs equipm vehicl tal
ent equipment
es
RMB’ RMB’
000 RMB’ RMB’ 000
RMB’ 000
000 000
As at 1 January 2021
Cost 1,656,330 53,277 60,364 129,516 1,899,
487
Accumulated depreciation (277,883) (42,861) (45,224) (108,580) (474,
548)
Net book amount 1,378,447 10,416 15,140 20,936 1,424,9

39
Year ended 31 December 2021
Opening net book amount 10,416 15,140 20,936 1,424,9

1,378,447 39
Acquisition of subsidiaries 15 110 1

— —
2
5
Disposal of subsidiaries (131) (947) (744) (1,8
— 22)
Additions — 1,803 3,907 11,171 16,8

81
Disposals (146,426) (5,906) (820) (16,783) (169,9

35)
Depreciation charges (68,922) (3,026) (4,525) (4,496) (80,9

69)
Closing net book amount 1,163,099

3,171 12,755 10,194 1,189,2
19
At 31 December 2021
Cost 1,370,072 52,957 50,147 129,623 1,602,
799
Accumulated depreciation (206,973) (49,786) (37,392) (119,429)
(413,
580)
Net book amount 1,163,099 3,171 12,755 10,194 1,189,2

19
Year ended 31 December 2022
Opening net book amount 1,163,099 3,171 12,755 10,194 1,189,2

19
Acquisition of subsidiaries (Note 34) 10,527 — 8 259 10,7

94
Disposal of subsidiaries (555) (304) (568) (57) (1,4

84)
Additions — 95 43 16,306 16,4

44
Disposals — (287) (667) (1,144 (2,0

) 98)
Depreciation charges (77,853) (1,339) (2,638) (24,264 (106,0

) 94)
Closing net book amount 1,095,218

1,336 8,933 1,294 1,106,7
81
At 31 December 2022
Cost 1,380,044 52,461 48,963 144, 1,626,
Accumulated depreciation 987 455
(284,826) (51,125) (40,030)
(143, (519,
693) 674)
Net book amount

1,095,218 1,336 8,933 1,294 1,106,7
81

ione883 • P.191
192
15 Property, plant and equipment (continued)

As at 31 December 2022 and 2021, certain properties, plant and equipment of the Group are pledged as
security for the borrowings of the Group (Note 33).
16 Leases
(i) Amounts recognised in the balance sheet:
31 Decem 31
b D
e
er c
2 e
0 m
2 b
e
2 r
2
0
2
1
RMB’0 RMB’0
00 00
Right-of-use assets
Land use rights (a) 388,85 403,9

7 63
Properties 17,44 32,9

7 86
406,30 436,9
4 49
Lease liabilities
Current 14,18 13,1

9 75
Non-current 5,77 20,6

7 43
19,96 33,8
6 18
Additions to the right-of- use assets during the 2022 financial year were RMB7,463,000 (2021:
RMB29,505,000).
(a) As at 31 December 2022 and 2021, certain land use rights of the Group are pledged as security for the
borrowings of the Group (Note 33).

ione883 • P.192
193
16 Leases (continued)
(ii) Amounts recognised in the statement of profit or loss
Year ended Year ended
31 December 31
December
202 20
2 21
RMB’0 RMB’0
00 00
Depreciation charge of right-of-use assets:

Land use rights 15,10 15,1
5 11
Properties 21,28 21,6
3 28
36,38 36,7
8 39
Interest expense (included in finance costs) 1,31 2,7

5 58
Expense relating to short-term leases and low-value assets
(included in administrative expenses) (Note 7)
60,7
24,67 80
9
25,99 63,5
4 38
Cash outflow for leases payments 45,588

108,334
(iii) The Group’s leasing activities and how these are accounted for
The Group mainly leases various offices. Rental contracts are typically made for fixed periods of 2 to 4
years, but may have extension options as described below.
Lease terms are negotiated on an individual basis and contain a wide range of different terms
and conditions. The lease agreements do not impose any covenants other than the security interests
in the leased assets that are held by the lessor.

ione883 • P.193
194
17 Investment properties
Year ended December

3 1
20 2
22 021
RMB’
RMB’
000
000
Non-current assets – at fair value:
Opening balance at 1 January 12,718,617 14,487,7

30
Additions 453,792 769,7

59
Disposal of subsidiaries (113,300) (2,506,6

20)
Fair value loss (739,009) (32,2

52)
Closing balance at 31 December

12,320,100 12,718,6
17
Total loss for the year recognised in profit or loss and

included in“fair value losses on investment
properties” of the consolidated income statement
– unrealised
(739,009) (32,2
52)
Rental income (Note 6) 175,723 164,3

02
(a) As at 31 December 2022, the Group had no contractual obligations for repairs, maintenance or
enhancements (2021: same).
(b) As at 31 December 2022 and 2021, certain investment properties of the Group are pledged as security for
the borrowings of the Group (Note 33).
(c) The capitalisation rate of borrowing costs to be capitalised is the weighted average interest rate
applicable to the Group’s borrowings during the year ended 31 December 2022, which is 6.67% (2021:
6.73%).
(d) The investment properties are leased to tenants under operating leases with rentals payable monthly.
Lease payments for some contracts include no variable lease payments that depend on a rate. Although
the Group is exposed to changes in the residual value at the end of the current leases, the Group
typically enters into new operating leases and therefore will not immediately realise any reduction in
residual value at the end of these leases. Expectations about the future residual values are reflected in the
fair value of the properties.
(e) The future aggregate minimum rental receivables under non-cancellable operating lease are as follows:
As at 3 1 December
20 2
22 021
RMB’
RMB’0
000
00
— Not later than one year 135,84 118,9

9 61
— Later than one year and not later than five years 484,45 447,5
7 75
— Later than five years 758,83 774,2

6 16
1,379,14 1,340,7
2 52

ione883 • P.194
195
18 Financial assets at fair value through profit or loss

2022 2021
RMB’000
RMB’000
Non-current assets
— Unlisted equity securities
488,005 689,668
Current assets
— Trusts and wealth management products
425,874 448,8
54
913,879 1,138,5
22
The investments represented mainly unlisted equity investments in various real estate entities which
the Group holds less than 20% equity interest and various funds, trusts and wealth management products.
These investments were not traded in active markets. The fair value of investment funds and trusts were
determined in accordance with observable market data, which were categorised within level 2 of the fair
value hierarchy. The fair value of the equity of unlisted real estate entities and wealth management products
were determined based on unobservable market data, which were categorised within level 3 of the fair value
hierarchy. Fair value losses on financial assets at FVPL recognised in“other gains or losses”was
RMB14,616,000 for the year ended 31 December 2022 (2021: fair value gains on financial assets at FVPL of
RMB25,970,000) (Note 9).
19 Financial instruments by category
As at 3 1 December
20 2
22 021
RMB’
RMB’0 000
00
Financial assets:
Financial assets at amortised cost

Trade receivables and other receivables 21,020,53 21,178,6
8 57
Amounts due from related parties
8,340,90 11,285,0
Cash and bank balances 3 65
Financial assets at fair value through profit or loss 9,543,93 22,055,4

6 46
913,87 1,138,5
9 22
39,819,25 55,657,6
6 90
Financial liabilities:
Liabilities at amortised cost

Trade and other payables, excluding accrual for staff costs and
allowances and other taxes payable
13,711,56 20,898,7
Amounts due to related parties 0 24
Borrowings 7,075,54 9,087,5
4 30
42,403,66 56,777,9
8 21
63,190,77 86,764,1
2 75
The Group’s exposure to various risks associated with the financial instruments is discussed in Note 3.
The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each
class of financial assets mentioned above.

(Z:\00. AR\152666 Ronshine China AR22\02N E_Ronshine China\17c
ione883 • P.195
196
20 Properties under development and completed properties held for sale

Properties under development and completed properties held for sale of the Group are all located in the PRC
and expected to be completed and available for sale within one operating cycle. The relevant land use rights
are on leases of 40 to 70 years.
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Properties under development expected to be completed

Within normal operating cycle included under current assets 94,305,792
127,448,610
The normal operating cycle of the Group’s property development generally ranges from one to three years.
The amounts of RMB37,773,591,000 as at 31 December 2022 (2021: RMB45,305,531,000) under normal

operating
Land use
rights

ione883 • P.196
197
20 Properties under development and completed properties held for

sale (continued)
( a) Assigning costs to properties under development and completed properties
held for sale

The costs of individual items of properties under development are determined where costs are assigned
by specific identification and include the cost of acquisition, development and borrowing costs incurred
during the development. See Note 2.15 for the Group’s accounting policies for properties under
development and completed properties held for sale.
The capitalisation rate of borrowing costs to be capitalised is the weighted average interest rate
applicable to the Group’s borrowings during the year ended 31 December 2022, which is 6.67% per annum
(2021: 6.73% per annum).
(b) Amounts recognised in profit or loss

Completed properties held for sale recognised as costs of sales during the year ended 31 December
2022 amounted to RMB30,085,680,000 (2021: RMB28,346,729,000).
Write-downs of the properties under development and completed properties held for sale to net
realisable value amounted to RMB7,239,244,000 (2021: RMB225,109,000), which were recognised as
costs of sales during the year ended 31 December 2022.
(c) Pledge information

As at 31 December 2022 and 2021, certain properties under development and completed properties held
for sale of the Group are pledged as security for the borrowings of the Group (Note 33).
21 Cash and bank balances
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Cash and cash equivalents 4,788,42 11,719,7

9 45
Term deposits (Note (a)) 781,00 3,852,8

0 74
Restricted cash (Note (b)) 3,974,50 6,482,8

7 27
9,543,93 22,055,4
6 46
(a) The weighted average effective interest rate of the Group’s term deposits as at 31 December 2022 was 2.02%
per annum (31 December 2021: 3.26% per annum). The carrying amounts of the Group’s term
deposits approximate their fair values, as the impact of discounting is not significant.

ione883 • P.197
198
21 Cash and bank balances (continued)

(b) Amounts mainly represent cash deposits with designated banks as guarantee deposits for construction of
properties, securities for borrowings and for issuance of commercial bills.
In accordance with relevant documents issued by local State-Owned Land and Resource Bureau,
certain property development companies of the Group were required to place certain amount of
properties presale proceeds at designated bank accounts as guarantee deposits for constructions of
related properties. The deposits can only be used for purchases of construction materials and
payments of construction fee of the relevant property projects when approval from the PRC local
State-Owned Land and Resource Bureau is obtained. The remaining balances of the deposits will be
released after completion of related pre-sold properties or issuance of the real estate ownership
certificate of the properties, whichever is the earlier.
22 Contract assets and liabilities

The Group has recognised following assets and liabilities related to contracts with customer:
20 20
22 21
RMB’0
RMB’0 00
00
Current contract assets:
Contract cost – sales commission 580,571 963,2

64
Contract assets – provision of construction service 741,355
263,9
80
1,321,926 1,227,2
44
Current contract liabilities – sales of properties 80,638,097 90,094,2

26
(i) Revenue recognised in relation to contract liabilities

(a) The following table set out the amount of the revenue recognised in the current reporting period
relates to carried-forward contract liabilities.

202 20
2 21
RMB’0
RMB’0 00
00
Revenue recognised that was included in the contract

liability balance at the beginning of the period
— sales of properties 23,252,680
24,242,908
(b) The amount of unsatisfied performance obligation is approximately the same as the balance of
contract liabilities, which are expected to be recognised in 1 to 3 years as of 31 December 2022

and 31 December 2021.

ione883 • P.198
199
23 Trade and other receivables and prepayments
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Trade receivables (Note (a)) 45,39 798,9

5 41
Other receivables:
— Amounts due from minority interests 11,198,31 8,594,5

4 04
— Deposits for acquisition of land use rights and
property development projects 8,359,43 8,832,8

1 87
— Other amounts due from third parties 1,884,78 2,496,0

1 70
— Deposits for construction contracts 291,80 436,8

1 42
— Others 54,41 44,6

7 92
Less: loss allowance (813,60 (25,2

1) 79)
20,975,14 20,379,7
3 16
Prepayments:
— Prepayments for acquisition of land use rights 1,230,59 6,897,0

0 82
— Prepaid value added tax, business taxes and other taxes 5,051,47 4,440,4
1 30
— Others 163,16 134,7

6 84
6,445,227 11,472,296
Current portion of trade and other receivables and prepayments 27,465,765 32,650,953

ione883 • P.199
200
23 Trade and other receivables and prepayments (continued)

(a) Trade receivables mainly arose from sales of properties. Proceeds in respect of sale of properties is settled
in accordance with the terms stipulated in the sale and purchase agreements.
Ageing analysis of the trade receivables is as follows:
As at 31 December
2022 2021
RMB’000 RMB’000
Within one year 9,333 798,941
Over one year 36,062 —
45,395 798,941
These trade receivables relate to a number of independent customers for whom there is no
significant financial difficulty. Management does not expect any credit loss for these trade receivables.
(b) As at 31 December 2022, the Group’s trade and other receivables were mainly denominated in RMB (2021:
same). As at 31 December 2022, the Group’s maximum exposure to credit risk was the carrying value
of each class of receivables mentioned above (2021: same).
24 Share capital and share premium
Equival
ent
Nomi
nom
nal
Numbe inal
valu
r of valu
e of Sh
ordin e of
ordin are
ary ordin Tot
ary premi al
shar ary
shar um
es shar RMB’
es 000
es RMB’
H 000
K RMB’
$ 000
At 1 January 2021 1,685,261,417 16,823 15 3,786,195 3,786,2

10
Buy-back and cancellation of shares (Note (b)) (1,830,000) (18) (8,341) (8,3
— 41)
Final dividend of 2020 (Note 28) — — — (695,173) (695,1

73)
At 31 December 2021, 1 January

2022 and 31 December 2022
1,683,431,417 16,805 15 3,082,681 3,082,6
96
(a) The authorised share capital of the Company as at 31 December 2022 was HK$380,000 (2021: same) divided
into 38,000,000,000 shares (2021: same).
(b) The Company acquired 1,830,000 of its own shares through purchases from the stock market during the
year ended 31 December 2021 for cash totalling HK$9,968,000 (equivalent to RMB8,341,000) and which
was deducted from the share premium account. The shares were cancelled after the repurchase.

ione883 • P.200
201
25 Other reserves
(a) Capital reserves
Capital reserves mainly represented accumulated capital contribution from the then shareholders of
the Group companies.
(b) Statutory reserves

In accordance with relevant rules and regulations in the PRC, when declaring dividend, the Group’s
PRC subsidiaries are required to appropriate not less than 10% of their profit after taxation calculated
under PRC accounting rules and regulations to the statutory reserve fund, until the accumulated total of
the fund reaches 50% of the registered capital of the respective companies. The statutory reserve
fund can only be used, upon approval by the relevant authority, to offset losses brought forward from
prior years or to increase the paid up capital of respective companies.
(c) Share-based compensation reserves

The Company approved and adopted a share option scheme on 28 December 2015 (the “Share
Option Scheme”). Share options under the Share Option Scheme (the“Option”) are granted to eligible
participant (the “Eligibles”) including directors and other employees. Options are conditional on the
Eligibles have served the Group for certain periods (the vesting period). Share Options are granted for no
consideration and carry no dividend or voting rights. When exercisable, each Option is convertible into
one ordinary share. The Group has no legal or constructive obligation to repurchase or settle the Options
in cash.
On 5 January 2017, approximately 62,469,000 Options (the“2017 Options”) were granted to Eligibles with
an exercise price of HK$5.96 per share. The expiry date of the Options will be 4 January 2022.
On 30 April 2019, approximately 26,571,973 share options (the“2019 Options”) were granted to Eligibles
with an exercise price of HK$10.80 per share. The expiry date of the 2019 Options will be 4 January 2022.
There were two types of vesting schedule for above share options, which are: i) 30% of the options will
be vested after 12 months of the grant date; 30% of the options will be vested after 24 months of the
grant date and the remaining 40% will be vested after 36 months of the grant date, ii) options will be
vested after 8 months of the grant date. Particulars of Options are as follows:
ione883 • P.201
202
25 Other reserves (continued)

(c) Share-based compensation reserves (continued)
Set out below are movements of Options granted under the Share Option Scheme:
Average
Number
exercise
of Options
price in HK$
Per share
under option
As at 1 January 2021
8.23 42,670,000
Lapsed during the year
7.24 (6,231,000)
As at 31 December 2021 and 1 January 2022

8.53 36,439,000
Lapsed during the year
8.53 (36,439,000)
At 31 December 2022
— —
The share options above are fully vested and exercisable.
The fair values of Options were determined by reference to valuation prepared by an independent valuer.
The significant inputs in the model were as follows:
2017 Options 2019 Options
Fair value per Option at measurement

HK$1.88 to HK$2.38 to HK$2.41
date (a) expected maturity date:
HK$1.99 4 January
(b) stock price at grant date and exercise 2022 HK$5.96 4 January 2022
price: (c) volatility: per share 34.41% HK$10.80 per share
(d) annual risk-free interest rate: 2.09% 41.56%
(e) dividend yield nil 2.04%
(f) suboptimal factors: 2 or 3 2.80%
1.69 to 1.77
No expense was recognised in consolidated income statement for share options granted to directors
and employees for the year ended 31 December 2022 (2021: nil).

ione883 • P.202
203
26 Borrowings
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Borrowings included in non-current liabilities:
Senior notes – unsecured (Note (a)) 15,563,48 18,373,9

6 58
Asset backed securities (“ABS”) – secured (Note (b)) 2,160,10 4,029,3

0 10
Corporate bonds – unsecured 8,599,12 8,597,0

4 29
Borrowings from financial institutions – secured (Note (c)) 15,197,98 24,992,8

3 49
Less: current portion of non-current borrowings (18,902,13 (21,948,9

7) 24)
22,618,55 34,044,2
6 22
Borrowings included in current liabilities:
Borrowings from financial institutions – secured (Note (c)) 882,97 784,7

5 75
Current portion of non-current borrowings
18,902,13 21,948,9
7 24
19,785,11 22,733,6
2 99
Total borrowings 42,403,66 56,777,9

8 21
(a) The senior notes are guaranteed and secured by equity interests of certain non-PRC subsidiaries.
(b) The ABS was pledged by the right of receipt of proceeds arising from the Group’s sales of certain properties
or rental income.
(c) The carrying amounts of financial and non-financial assets pledged as security for current and non-
current borrowings are disclosed in Note 33.

ione883 • P.203
204
26 Borrowings (continued)
(d) At 31 December, the Group’s borrowings were repayable as follows:
As at 31 December
2023 2022
On demand or within 1 year

[..] 19,785,112
Between 1 and 2 years [..] 17,301,277
Between 2 and 5 years [..] 5,317,279
Over 5 years — —
Total
[..] 42,403,668
(e) The weighted average effective interest rates are as follows:
As at 31 December
2023 2022
Senior notes
[..] 8.11%
Asset backed securities [..] 5.20%
Corporate bonds [..] 6.41%
Borrowings from financial institutions [..] 6.12%
(f) The Group’s borrowings were denominated:
As at 31 December
2023 2022
RMB’000 RMB’000
— RMB [..] 26,829,821
— US$ [..] 15,563,486
— HKD [..] 10,361
[..] 42,403,668
(g) The fair value of senior notes as at 31 December 2022 was RMB1,195,882,000 (2021: RMB8,312,116,000),
which was quoted in Singapore Exchange Ltd. and within level 1 of the fair value hierarchy. The
carrying amounts of borrowings other than senior notes approximate their fair values as at 31 December
2022 (2021: same) as either the impact of discounting were not significant or the borrowings carry
floating rates of interests.
Details of the Group’s exposure to risks arising from current and non-current borrowings are set out in Note
3.1.

ione883 • P.204
205
27 Deferred tax assets and liabilities

(i) The analysis of deferred tax assets and deferred tax liabilities is as follows:
20 20
22 21
RMB’0
RMB’0 00
00
Deferred tax assets
— to be recovered within 12 months 345,667 113,5

51
— to be recovered after 12 months 824,517
775,7
77
Total deferred tax assets before net off 1,170,184 889,3

28
Net of deferred tax liabilities (471,769) (209,8

01)
698,415 679,5
27
Deferred tax liabilities
— to be recovered within 12 months (279,

(305,8
76) 406)
— to be recovered after 12 months
(1,743,
(1,452,5
541)
77)
Total deferred tax liabilities before net off (1,758,453) (2,022,9

47)
Net of deferred tax assets 471,769 209,8

01
(1,286,684) (1,813,1
46)
(588,269) (1,133,6
19)
The net movement on the deferred tax accounts before set-off is as follows:
20 20
22 21
RMB’0
RMB’0 00
00
At 1 January (1,133,619) (1,247,3

27)
Credited to the consolidated income statement (Note 146,277 113,7

13) 08
Business combination 297,727 —
Disposal of subsidiaries 101,346 —
At 31 December (588,269) (1,133,6

19)

ione883 • P.205
206
27 Deferred tax assets and liabilities (continued)

(ii) The movement in deferred tax assets and liabilities before set-off during the years are as follows:
Deferred
tax
liabilities
–
excess
of
carryin
g
Deferred Deferred amou

tax tax nt
assets liabilities of PUD

– – and
tax fair PHS

losses value over
and gai the tax

others ns bases
RMB’0 RMB’0 RMB’0

00 00 00
At 1 January 2021 781,423 (911,640 (1,117,1

) 10)
Credited to the consolidated income statement 107,905 5,803 —
At 31 December 2021 889,328 (905,837 (1,117,1

) 10)
At 1 January 2022 889,328 (905,837) (1,117,11

0)
Acquisition of subsidiaries 297,727 — —
Disposal of subsidiaries (183,887) 11,343 273,89

0
Credited to the consolidated income statement 167,016 (20,739) —

At 31 December 2022 1,170,184 (915,233) (843,22
0)
28 Dividend
The directors of the Company do not recommend payment of any final dividend for the year ended 31
December 2022 (2021: nil).

ione883 • P.206
207
29 Trade and other payables
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Trade payables (Note (a)) 6,902,76 12,983,5

0 51
Notes payable 485,72 491,6

1 84
Other payables:
— Amounts due to minority interests (Note (b)) 3,410,85 5,425,1

2 08
— Deposits received for sales of properties 572,11 204,7

8 26
— Other taxes payable 7,877,07 8,519,4

9 42
— Interests payable 1,244,43 632,8

7 57
— Deposits from contractors and suppliers 960,42 916,7

3 70
— Accrued payroll 125,15 175,9

2 86
— Dividend payable 42,28 4,7

8 24
— Others 92,96 239,3

6 04
21,713,79 29,594,1
6 52
(a) The ageing analysis of the trade payables is as follows:
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
Within one year 5,412,04 9,873,8

6 30
Over one year 1,490,71 3,109,7

4 21
6,902,76 12,983,5
0 51
(b) Included in amounts due to minority interests of approximately RMB162,800,000 are interest bearing and
repayable within one year from 31 December 2022 (2021: RMB116,500,000).
(c) The carrying amounts of trade and other payables were considered to be approximate to their fair values.

ione883 • P.207
208
30 Cash flow information

( a) Net cash (used in)/generated from operating activities:
Year ended December

31
20 20
22 21
RMB’0
RMB’0 00
00
Profit before income tax (11,912,118) 2,472,6

00
Adjustments for:
– Depreciation charges 106,094 46,1

76
– Net impairment losses/(gains) on financial assets 788,322 (4,6

00)
– Finance costs/(income) 1,811,090 (100,2

18)
– Other income (101,186) (373,6

61)
– Amortisation of intangible assets 610 2,2

32
– Amortisation of right-of-use assets 36,388 36,7

39
– Provision for write-down of properties under development
and completed held for sale 7,014,135 225,1

09
– Gains from disposal of property, plant and equipment (25,308) (147,5

83)
– Fair value losses on investment properties 739,009 32,2

52
– Share of net profits of investments accounted for using the
equity method (514,223) (102,2

40)
– Fair value losses/(gains) on financial assets at FVPL 14,616 (25,9

70)
– Loss from disposal of associate and joint ventures 628,932 67,1

35
Changes in working capital:

– Properties under development and completed properties
held for sale 36,598,286 (13,853,4

74)
– Contract assets (94,682) (128,5

80)
– Trade and other receivables (12,413,788) (6,852,9

94)
– Prepayments 5,027,069 107,8

45
– Contract liabilities (11,206,556) 27,201,7

12
– Trade and other payables (4,808,387) 2,204,5

63
– Amounts due to related parties — 117,3

60
– Restricted cash 408,320 (1,940,4

85)
Cash generated from operations 12,096,623 8,983,9

18

ione883 • P.208
209
30 Cash flow information (continued)

(b) Non-cash financing activities
No major non-cash transactions incurred during the years ended 31 December 2022 and 2021.
(c) Reconciliation of liabilities arising from financing activities
Financi
n
1 Non- 31
g
Januar cash December
ca
y 2022 s 2022
items
h
RMB’0 RMB’0 RMB’0
00 00
flow – 00
net
RMB’0
00
Borrowings 56,777,9 (14,111,0 (263,2 42,403,66

21 8
Lease liabilities 53) 00)
33,8 19,96
Amounts due to related parties 18 5,7 6
(19,595)
9,087,5 43 7,075,54
30 (2,011,9 4
86) —
65,899,2 (16,142,63 (257,4 49,499,17

69 4) 57) 8
Financ
ing
1 cash Non- 31
Januar cash December
y flow – 2021
2021 net items
RMB’0 RMB’ RMB’0
RMB’0 00
00 000
00
Borrowings 71,859,7 (15,081,8 56,777,9

32 — 21
Lease liabilities 11)
25,3 29,5 33,8
(21,018) 05
Amounts due to related parties 31 18
3,796,2
5,164,3 08 126,9 9,087,5
59 63 30
77,409,4 18,857,0 156,4 65,899,2

22 01 68 69

ione883 • P.209
210
31 Financial guarantee
As at 3 1 December
20 2
22 021
RMB’
RMB’0
000
00
Guarantee in respect of mortgage facilities for certain purchasers (Note 20,412,67 24,933,4
(a)) 4 20
Guarantee provided for the borrowings of the joint ventures (Note (b)) 1,800,80 907,7
6 00
Guarantee provided for the borrowings of associates (Note (b)) 2,666,15 1,015,3
8 00
Guarantee provided for the borrowings of independent third parties — 2,100,0

00
24,879,63 28,956,4
8 20
(a) The Group has arranged bank financing for certain purchasers of the Group’s property units and provided guarantees to secure obligations
of such purchasers for repayments. Such guarantees terminate upon the earlier of (i) issuance of the real estate ownership
certificates which will generally be available within an average period of two to three years upon the completion of guarantee
registration; or (ii) the satisfaction of mortgage loan by the purchasers of properties.
Pursuant to the terms of the guarantees, upon default in mortgage payments by these purchasers, the Group is responsible to repay
the outstanding mortgage principals together with accrued interest and penalty owed by the defaulted purchasers to the banks and
the Group is entitled to take over the legal title and possession of the related properties. The Group’s guarantee period starts from
the dates of grant of the mortgages. The repayment was on schedule and the risk of default in payment was remote. The directors of the
Company consider that the fair value of these financial guarantee contracts at the date of inception was minimal. The directors
consider that the likelihood of loss of the Group resulting from the default in payments by purchasers is minimal and therefore no
provision has been made in the consolidated financial statements for the financial guarantee contracts.
(b) Amounts represented the maximum exposure of the guarantees provided by the Group. The repayment was on schedule and the risk of
default in payment was remote. The directors of the Company consider that the fair value of these financial guarantee contracts at
the date of inception was minimal. The directors consider that the likelihood of loss of the Group resulting from the default in
payments by joint ventures and associates is minimal and therefore no provision has been made in the consolidated financial
statements for the financial guarantee contracts.
32 Commitments
(a) Commitments for property development expenditures and equity investments as at 31 December 2022 and
2021 were as follows:
As at 3 1 December
20 2
22 021
RMB’
RMB’0
000
00
Contracted but not provided for

— Property development activities 13,756,88 21,175,7
4 41
— Land use rights
1,906,85 1,704,7
2 08
15,663,736 22,880,449
(b) Operating leases commitments – the Group as lessee

As at 31 December 2022, the Group did not have any material short-term and low-value lease
commitment (2021: same).

ione883 • P.210
211
33 Assets pledged as security
As at 31 December
Note 202 20
s
2 21
RMB’0
RMB’0 00
00
ASSETS
Non-current assets
Property, plant and equipment

15 908,7
1,053,34 14
Land use rights 16 8
243,6
Investment properties 17 155,19 95
1
4,104,0
4,186,50 00
4
Total non-current assets pledged as security 5,395,04 5,256,4

3 09
Current assets
Properties under development and completed

properties held for sale
20 47,404,42 36,418,1
Restricted cash 4 58
— 2,100,0
00
Total current assets pledged as security 47,404,42 38,518,1

4 58
Total assets pledged as security 52,799,46 43,774,5

7 67
All above assets of the Group are pledged as security for the borrowings from financial institutions of the
Group (Note 26).
Investments amounting to approximately RMB1,688,401,000 (2021: RMB7,065,799,000) in certain
subsidiaries directly or indirectly held by the Company were pledged as security for borrowings of the Group
at 31 December
2022.

ione883 • P.211
212
34 Acquisition of subsidiaries and disposal of subsidiaries

(a) Summary of acquisition of subsidiaries
During the year ended 31 December 2022, the Group acquired certain subsidiaries engaged in
property development in the PRC.
The following table summaries the considerations paid for acquisitions of these subsidiaries, the fair value
of assets acquired and liabilities assumed at the acquisition dates.
RMB’0
00
Purchase consideration – cash 222,3

38
The assets and liabilities recognised as a result of the acquisitions on the dates are as
acquisition follows:
Fair
value
RMB’
000
Property, plant and equipment 10,7

94
Properties under development 5,368,4

02
Investments accounted for using the equity method 5,009,2

73
Trade and other receivables and prepayments (Note (i)) 1,028,2

23
Deferred tax assets 297,7

27
Prepaid taxation 150,5

71
Cash and bank balances 147,0

01
Trade and other payables (6,499,6

19)
Borrowings (433,000)
Contract liabilities (4,818,9

93)
Net identifiable assets acquired 260,3
79
Less: non-controlling interests (38,041)
Net assets acquired 222,3

38
(i) Acquired receivables
The fair value of acquired trade and other receivables and prepayments was equal to its
gross contractual amounts receivable. At the acquisition dates, none of such balance was
expected to be uncollectible.

ione883 • P.212
213
34 Acquisition of subsidiaries and disposal of subsidiaries (continued)

(a) Summary of acquisition of subsidiaries (continued)
(ii) Accounting policy choice for non-controlling interests
The Group elected to recognise the non-controlling interests at its proportionate share of the fair
value of the acquired net identifiable assets.
(iii) Revenue and profit contribution
The acquired business contributed loss of RMB173,178,000 with no revenue to the Group for
the period from the respective acquisition dates to 31 December 2022. If the acquisitions had
occurred on 1 January 2022, consolidated revenue and consolidated profit after tax for the
year ended 31 December 2022 of the Group would have been RMB87,530,000 and loss of
RMB160,514,000, respectively.
(iv) Purchase consideration – cash outflow
The cash impact arising from acquisition in above transactions are summarised as follows:
202
1
RMB’0
00
Outflow of cash to acquire subsidiary, net of cash acquired:
Cash consideration 222,3

Less: cash and bank balance acquired 38
(147,0
01)
Net outflow of cash – investing activities 75,33

6
ione883 • P.213
214
34 Acquisition of subsidiaries and disposal of subsidiaries (continued)

(b) Summary of disposal of Subsidiaries
(i) During the year ended 31 December 2022, the Group disposed of certain subsidiaries engaged
in property development in the PRC. The financial impacts arising from the acquisition are
summarised as follows.
RMB’000
Cash considerations received or receivable

511,240
Total net assets disposed of 2,634,513
Non-controlling interest disposed of (1,262,829)
Loss on disposal of subsidiaries

860,445
(ii) The cash impact arising from the disposals in above transactions are summarised as follows:
RMB’0
00
Cash considerations received as of 31 December 2022 511,2

40
Cash and cash equivalents of the subsidiaries disposed of
(2,014,0
29)
Net cash outflow for disposal of subsidiaries

(1,502,789)
ione883 • P.214
215
35 Significant related party transactions

(a) Parent entities
The Group is controlled by the following entities:
Ownership
interest As at 31
December
Place of
Dingxin Company
Immediate parent BVI 66.77% 66.77%
Limited
(“Dingxin”) company of the
TMF (Cayman) Limited Company

Ultimate parent
entity The Cayman Islands 66.77%
66.77%
and controlling party
(b) Subsidiaries
Interests in subsidiaries are set out in Note 11(a).
( c) Major related parties that had significant transactions during the year with
the Group are as follows:
Related parties Relationship with the Group
Mr. Ou 杭州融浩置業
有限公司
歐先生
Nin
Ronshine Service Holding Co., Ltd. g
b
融信服務集團股份有限公司 o
F
Xiujing (Fujian) Landscape Engineering Co., Ltd. e
n
秀景(福建) 園林工程有限公司 g
h
Fujian Rongdaxin Investment Co., Ltd. u
a
福建融達信投資有限公司 H
e
Nanjing Kaijingsheng Real Estate Development Co., d
u
Ltd. 南京愷璟晟房地產開發有限公司 R
e
Hangzhou Ronghao Property Co., Ltd. al
E
state Development Co., Ltd. 寧波奉化和都房地產開發
有限公司 Controlling Shareholder and
Director of the Company

A Company Controlled by the
Controlling Shareholder
A Company Controlled by the
Controlling Shareholder
Joint Venture
Joint Venture
Joint Venture
Joint Venture

ione883 • P.215
216
35 Significant related party transactions (continued)

the Group are as follows: (continued)
Hangzhou Hexin Real Estate Development Co., Ltd. Zhoushan Kairong Real
Estate Development Co.,
杭州和昕房地產開發有限公司 Ltd.
Tianjin Jinrui Property Co., Ltd. 舟山愷融房地產開發有
限公司
天津金銳置業有限公司
Qiaocheng Real Estate Group Chongqing Kaizhou District Co.,

Ltd. 僑城地產集團重慶市開州區有限責任公司
Zhejiang Kunchuang Property Co., Ltd.
浙江坤創置業有限公司
Neijiang Wanwei Property Co., Ltd.
內江萬為置業有限公司
Huzhou Rongda Real Estate Development Co., Ltd.
湖州融達房地產開發有限公司
Hangzhou Rongxun Real Estate Development Co., Ltd.
杭州融晅房地產開發有限公司
Baoding Zhitai Real Estate Development Co., Ltd.
保定智泰房地產開發有限公司
Chongqing Yicheng Yugao Intelligent Technology Co., Ltd.
重慶頤城俞高智慧科技有限公司
Fuzhou Rongxinglan Real Estate Development Co., Ltd.
福州融興藍房地產開發有限公司
Mianyang Wanwei Jinxin Real Estate Development Co., Ltd.
綿陽萬為金心房地產開發有限公司
Hangzhou Kailian Property Co., Ltd.
杭州愷聯置業有限公司
Hangzhou Rongxing Commercial Development Co., Ltd.
杭州融幸商業發展有限公司
Nanjing Taiyi Hexin Enterprise Management Consulting Co.,

Ltd. 南京泰熠和信企業管理諮詢有限公司
Dazhou Qiangyu Real Estate Development Co., Ltd.
達州強譽房地產開發有限公司
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture

ione883 • P.216
217

Fuzhou Hongbailong Real Estate Development Co., Ltd. Shanghai Kaidai

Real Estate
福州泓百隆房地產開發有限公司 Development
Co., Ltd.
Rong Rui Co., Ltd.
上海愷岱房地
融瑞有限公司產開發有限公
司
Fujian Rongteng Property Co., Ltd.
福建融騰置業有限公司
Hangzhou Xinchen Property Co., Ltd.
杭州信辰置業有限公司
Cixi Jingui Property Co., Ltd.
慈溪市金桂置業有限公司
Jiangmen Rongchang Real Estate Development Co., Ltd.
江門市融昌房地產開發有限公司
Hangzhou Zhongxu Property Co., Ltd.
杭州眾旭置業有限公司
Qidong Bilian Property Co., Ltd.
啟東碧聯置業有限公司
Anji Rongshang Real Estate Co., Ltd.
安吉融尚房地產有限公司
Hangzhou Lin’an Longxing Real Estate Development Co.,

Ltd. 杭州臨安龍興房地產開發有限公司
Jinhua Tianxi Property Co., Ltd.
金華天璽置業有限公司
Hefei Hailiang Property Co., Ltd.
合肥海亮置業有限公司
Kunshan Xingwei Property Co., Ltd.
昆山興未置業有限公司
Jinhua Ruiying Real Estate Co., Ltd.
金華市瑞盈房地產有限公司
Fuzhou Libo Shuntai Real Estate Development Co., Ltd.
福州利博順泰房地產開發有限公司
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture

ione883 • P.217
218

Jiujiang Rongxi Real Estate Development Co., Ltd. 南京錦泰房地產開發

有限公司
九江融璽房地產開發有限公司
Hangzhou Rongcha
Hangzhou Jinguan Property Co., Ltd. Industrial Co., Ltd.
杭州錦官置業有限公司杭州融洽實業有限公司
Hairong (Zhangzhou) Real Estate Co., Ltd.
海融(漳州) 房地產有限公司
Hangzhou Tengyi Real Estate Development Co., Ltd.
杭州騰翼房地產開發有限責任公司
Hangzhou Wanjing Property Co., Ltd.
杭州萬璟置業有限公司
Fuzhou Yubaichuan Real Estate Development Co., Ltd.
福州裕百川房地產開發有限公司
Nanjing Huihe Property Co., Ltd.
南京薈合置業有限公司
Qingdao West Coast Tianze Construction Development Co.,

Ltd. 青島西海岸天澤建設發展有限公司
Fuyang Shangjun Real Estate Co., Ltd.
阜陽上郡房地產有限公司
Dongtai Xinbi Real Estate Development Co., Ltd.
東台市新碧房地產開發有限公司
Bengbu Bicheng Real Estate Development Co., Ltd.
蚌埠市碧誠房地產開發有限公司
Fuyang Greenland Property Co., Ltd.
阜陽綠地置業有限公司
Hangzhou Zhehan Real Estate Development Co., Ltd.
杭州哲瀚房地產開發有限公司
Hangzhou Mingyu Real Estate Development Co., Ltd.
杭州銘昱房地產開發有限公司
Nanjing Jintai Real Estate Development Co., Ltd.
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Associate
Joint Venture
Associate
Joint Venture
Associate
Joint Venture
Associate

ione883 • P.218
219

Yongtai Baolong Real Estate Development Co., Ltd.

Associate
永泰寶龍房地產開發有限公司
Zhangzhou Vanke Binjiang Property Co., Ltd.
漳州市萬科濱江置業有限公司 Associate
Hangzhou Ronglang Real Estate Development Co., Ltd.

杭州融朗房地產開發有限公司 Associate
Hangzhou Rongxin Real Estate Development Co., Ltd.
杭州融歆房地產開發有限公司
Associate
Nantong Jianghe Property Co., Ltd.
南通江河置業有限公司
Zhenjiang Yiteng Real Estate Development Co., Ltd. Associate
鎮江億騰房地產開發有限公司
Jiangmen Hongshun Real Estate Development Co., Ltd. Associate
江門市弘順房地產開發有限公司
Jiaxing Zhenyue Property Co., Ltd.
Associate
嘉興臻嶽置業有限公司
Hangzhou Meishengmei Property Co., Ltd.
杭州美生美置業有限公司 Associate
Hangzhou Xuanlu Industrial Co., Ltd.
杭州宣祿實業有限公司
Associate
Hangzhou Yuqian Real Estate Development Co., Ltd.
杭州譽乾房地產開發有限公司
Associate
Qingdao West Coast Kechuang Investment Development Co.,
Ltd. 青島西海岸科創投資開發有限公司
Chengdu Jinfenghua Property Co., Ltd. Associate
成都金灃華置業有限公司
Fuzhou Wanxi Real Estate Co., Ltd.
Associate
福州市萬曦房地產有限公司
Hangzhou Lvcheng Wangxi Real Estate Development Co., Ltd.
杭州綠城望溪房地產開發有限公司 Associate
Associate Associate

ione883 • P.219
220

Fuzhou Yuxiang Real Estate Co., Ltd.

Associate
福州市禹翔房地產有限公司
Yinchuan Shihai Real Estate Co., Ltd.
銀川世海房地產有限公司 Associate
Yinchuan Haimao Real Estate Co., Ltd.

銀川海茂房地產有限公司 Associate
Shaanxi Shengshi Haihong Real Estate Development Co.,
Ltd. 陜西盛世海宏房地產開發有限公司
Associate
Shaanxi Haihe Real Estate Development Co., Ltd.
陜西海和房地產開發有限公司
Hangzhou Binming Enterprise Management Co., Ltd Associate
杭州濱銘企業管理有限公司
Hangzhou Longyi Real Estate Development Co., Ltd Associate
杭州龍毅房地產開發有限公司
Hangzhou Wanfeng Real Estate Development Co., Ltd
Associate
杭州萬楓房地產開發有限公司
Yueqing Rongliang Real Estate Development Co., Ltd
樂清市融梁房地產開發有限公司 Associate
Suzhou Baojing Real Estate Co., Ltd
蘇州保璟置業有限公司
Associate
Suzhou Kaixingyu Real Estate Development Co., Ltd
蘇州愷星鈺房地產開發有限公司
Associate
Nanjing Jintai Real Estate Development Co., Ltd
南京錦泰房地產開發有限公司
Associate
Associate
ione883 • P.220
221

Chengdu Jinfenghua Real Estate Co., Ltd

Associate
成都金灃華置業有限公司
Yongtai Baolong Real Estate Development Co., Ltd
永泰寶龍房地產開發有限公司 Associate
Jiangmen Hongshun Real Estate Development Co.,

Ltd 江門市弘順房地產開發有限公司
Associate
The English names of the PRC companies referred to above in this note represent management’s best efforts in translating the
Chinese names of those companies as no English names have been registered or were available.
(d) Compensation of Key management personnel

Compensation of key management personnel other than those for directors as disclosed in Note 8(a) is
set out below.
202 20
2 21
RMB’0
RMB’0 00
00
Compensation of Key management personnel:

Salaries and other employee benefits 28 4,0
1 06
Pension costs
2 8
283 4,014
ione883 • P.221
222

(e) Transactions with related parties
Save as disclosed elsewhere in these consolidated financial statements, during the year ended 31
December 2022 and 2021, the Group had the following transactions with related parties.
Services provided by related parties
20 20
22 21
RMB’0
RMB’0 00
00
Property management services

Other related party [147,7 331,2
85] 28
– Ronshine Service Holding Co., Ltd.
[147,78 331,2
5] 28
Landscape engineering services

Other related party
– Xiujing (Fujian) Landscape Engineering Co., Ltd
[220,0 315,1
96] 09
[220,09 315,1
6] 09
Services provided to related parties
Year ended December

31
20 20
22 21
RMB’0
RMB’0
00 00
Interest income
– Joint ventures 165,3 148,3

58 86
– Associates
18,9
84
—
165,3 167,3
58 70
Consultation services
– Joint ventures 57,2 89,6

90 10
– Associates
20,8 6,9
65 07
78,1 96,5
55 17
The directors of the Company are of the opinion that the above related party transactions were
conducted on normal commercial terms and in the ordinary course of business.
Refer to Note 31 for information on guarantee provided for the borrowings of the [joint ventures] by
the Group.

ione883 • P.222
223

(f) Balances with related parties
As at 31 December
20 20
22 21
RMB’0
RMB’0 00
00
Amounts due from related parties

Joint ventures 6,747,673 9,612,9
57
Associates 1,586,844
1,660,1
6,386 17
Other related parties
11,9
91
– Xiujing (Fujian) Landscape Engineering Co., Ltd. 268 –
– Ronshine Service Holding Co., Ltd. 6,118 11,9

91
8,430,903 11,285,0
65
Amounts due to related parties
Joint ventures 4,389,099 6,557,9

25
Associates 2,308,406 2,203,2

73
Other related parties 378,039 326,3

32
– Mr. Ou
76,703 82,0
09
– Ronshine Service Holding Co., Ltd. 215,894 159,1

58
– Xiujing (Fujian) Landscape Engineering Co., Ltd. 85,442 85,1

65
7,075,544 9,087,5
30
Amounts due from related parties mainly represented the cash advances made to related parties which
are unsecured, repayable on demand and denominated in RMB.
Amounts due to Ronshine Service Holding Co ., Ltd . mainly represented the payables of property
management fees which were unsecured, interest-free, to be settled according to agreed terms and
were denominated in RMB.
Amounts due to Xiujing (Fujian) Landscape Engineering Co., Ltd. mainly represented the payables
of landscape engineering services fee which were unsecured, interest free, to be settled according to
agreed terms and were denominated in RMB.
Other amounts due to related parties mainly represented cash advances from related parties of
which approximately RMB162,800,000 (2021: RMB116,500,000) are interest bearing and repayable within
one year from 31 December 2022.

ione883 • P.223
224

(g) Guarantees provided by related parties
During the year ended 31 December 2021, Jiangsu Ronghua Property Development Co., Ltd
(“Jiangsu Ronghua Property”), a non-wholly-owned subsidiary of the Company, and the minority
shareholder of Jiangsu Ronghua Property, entered into a loan agreement with Rongxin (Fujian)
Investment Group Co., Ltd (“Rongxin (Fujian) Investment”), a wholly-owned subsidiary of
the Company. Pursuant to which Jiangsu Ronghua Property and its minority shareholder would provide a
loan in the total principal amount of RMB185 million to Rongxin (Fujian) Investment, of which RMB130
million would be provided by Jiangsu Ronghua Property, and RMB55 million would be provided by the
minority shareholder of Jiangsu Ronghua Property (the “Intra-Group Loan”).
The Intra-Group Loan was guaranteed by Mr. Ou, and was secured by a pledge of 103,500,000 shares of
the Company owned by Dingxin, which represent approximately 6.15% of the total issued share capital
of the Company as at 31 December 2021. This amount was also guaranteed by Mr. Ruan Youzhi.
The Intra Group Loan was settled by Rongxin (Fujian) Investment during the year ended 31 December 2022.
36 Balance sheet and reserve movements of the Company

Balance sheet of the Company
As at 3 1 December
Not 20 2
e 021
22
RMB’
RMB’0 000
00
ASSETS
Non-current assets
Investments in subsidiaries 2,032,98 2,032,9
6 86
Financial assets at fair value through profit or loss
70,09 229,4
6 79
2,262,4
2,103,08 65
2
Current assets
Amounts due from subsidiaries 18,294,9
17,762,72 75
Amounts due from related parties 4
—
Cash and bank balances 338,75
0 232,8
32
2,23
2
Total current assets 18,527,8

18,103,70
6
07
Total assets 20,790,2

20,206,78 72
8
EQUITY
Equity attributable to owners of the Company
Share capital 1 1
(a) 5 5
Share premium
(a) 3,082,6 3,082,6
Other reserves 81
81 (2,299,4
(2,857,9 51)
07)
Total equity 783,2

224,78 45
9

ione883 • P.224
225
36 Balance sheet and reserve movements of the Company (continued)

Balance sheet of the Company (continued)
As at 31 December
202 20
2 21
RMB’0
RMB’0 00
00
LIABILITIES
Non- current liabilities

Borrowings
9,882,3
2,846,35 85
8
Current liabilities
Borrowings 12,727,48 8,882,8

8 70
Other payables 312,69 310,0

4 03
Amounts due to subsidiaries 4,095,45 921,8

9 09
Amounts due to related parties — 9,9

60
Total current liabilities 17,135,64 10,124,6

1 42
Total liabilities 19,981,99 20,007,0

9 27
Total equity and liabilities 20,206,78 20,790,2

8 72
The balance sheet of the Company was approved and authorised for issue by the Board of Directors on 31
March 2023 and was signed on its behalf by:
Ou Zonghong
Zhang Lixin
Director
Director

ione883 • P.225
226
36 Balance sheet and reserve movements of the Company (continued)

(a) Reserve movements of the Company
Other reserves
Share-
based
Sh Accumulat
compensati
are ed
on reserves Tot
premi los al
um RMB’0 ses
00 RMB’0
00
RMB’0 RMB’0
00 00
For the year ended
31 December 2021
At 1 January 2021 3,786,195 82,076 (2,263,674)
1,604,597
Loss for the year (117,8 (117,8

— — 53) 53)
Buy-back and
cancellation of shares (8,
(Note 24) 341)
(695, — (8,
—
Final dividend of 2020 173) 341)
— (695,
—
173)
At 31 December 2021 3,082,681 82,076 (2,381,527)

783,230
For the year ended
31 December 2022
At 1 January 2022 3,082,681 82,076 (2,381,527)
783,230
Loss for the year — — (558,441) (558,441)

224,789

ione883 • P.226
227
37 Events After the Reporting Period

January 2023 Notes
Reference is made to the announcements of the Company dated 26 January 2023.
The 8 .95% senior notes due 2023 (the“January 2023 Notes”) in the aggregate principal amount of
US$413,000,000 issued by the Company and listed on the Singapore Exchange Securities Trading Limited
matured on 22 January 2023. The principal amount and the accrued and unpaid interest totalling
US$431,481,750 became due and payable. As of the date of approval of the consolidated financial statements,
the Company has not made such payment.
ione883 • P.227
228
FIVE YEARS’ FINANCIAL SUMMARY
CONSOLIDATED RESULTS
For the year ended 31 December
20 20 20 20 20
22 21 20 19 18
RMB’0 RMB’0 RMB’ RMB’0
RMB’0 00 00 000 00
00
Revenue 30,059,2 33,284,0 48,302,5 51,462,5 34,366,5

92 14 05 02 00
Profit for the year attributable to
owners of the Company
(11,234,8 1,295,0 2,428,1 3,154,0 2,149,6

36) 49 23 64 60
CONSOLIDATED IABILITI AND ITY

ASSETS, L ES EQU
A at 31 ber
s Decem
20 20 20 20 20
22 21 20 19 18
RMB’0 RMB’0 RMB’ RMB’0
RMB’0 00 00 000 00
00
Non-current assets 20,475,2 27,572,2 28,889,6 22,718,0 22,975,3

53 30 51 69 26
Current assets 168,757,0 217,867,6 204,359,1 191,489,9 180,468,5
99 09 36 69 52
Total assets 189,232,3 245,439,8 233,248,7 214,208,0 203,443,8

52 39 87 38 78
Non-current liabilities 23,911,0 35,878,0 48,852,0 46,512,8 40,155,0

17 11 73 47 88
Current liabilities 157,280,8 133,737,7 126,406,9 127,670,4
134,686,8
16 78 11 61 32
Total liabilities 158,597,8 193,158,8 182,589,7 172,919,8 167,825,5

33 89 84 08 20
Total equity 30,634,5 52,280,9 50,659,0 41,288,2 35,618,3
19 50 03 30 58
Total equity attributable to

shareholders of the Company
6,186,9 18,304,5 17,713,0 16,405,8 12,754,8
62 98 63 65 28

(Z:\00. AR\152666 Ronshine China AR22\02N E_Ronshine China\18 E_Five
CS Hotline: 2879 8787 • Fax: 2802 0055 Years.indd) 1st Proof • 20th April, 2023 • 00:11 22/04/2023 • (Q01) •
ione883 • P.228

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122

Ronshine China Holdings Limited 2022 Annual Report

INDEPENDENT AUDITOR’S REPORT

(incorporated in Cayman Islands with limited liability)

Basis for opinion

Material uncertainty related to going concern

Key audit matters

iOne Financial Press Limited

Independent Auditor’s Report

The carrying amounts of PUD and PHS are stated at

• Direct related selling expenses were estimated

We found that the key estimates used in

iOne Financial Press Limited

Independent Auditor’s Report

Responsibilities of directors and those charged with governance for

iOne Financial Press Limited

Independent Auditor’s Report

Auditor’s responsibilities for the audit of the consolidated

iOne Financial Press Limited

Independent Auditor’s Report

Auditor’s responsibilities for the audit of the consolidated financial

Elite Partners CPA Limited

10/F, 8 Observatory Road

iOne Financial Press Limited

CONSOLIDATED INCOME STATEMENT

Finance costs 278,389 736,492

12(a)(ii) 514,223 102,240

(Loss)/profit before income tax (11,912,1 2,472,6

(Loss)/profit for the year (12,439,950) 1,726,7

(Loss)/profit for the year attributable to:

— Owners of the Company 1,295,0

( Loss)/earnings per share for (loss)/profit attributable to

— Basic (loss)/earnings per share

— Diluted (loss)/earnings per share 14 (6.67) 0.

iOne Financial Press Limited

Year ended December

(Loss)/profit for the year (12,439,950) 1,726,7

Other comprehensive income — —

Total comprehensive (loss)/income for the year (12,439,950) 1,726,7

Total comprehensive (loss)/income for the year attributable to:

— Owners of the Company 1,295,0

CONSOLIDATED BALANCE SHEET

Property, plant and equipment 15 1,106,78 1,189,2

Investment properties 17 12,320,10 12,718,6

Right-of-use assets 16 406,30 436,9

Intangible assets 1,77 3,1

Investments accounted for using the equity method 12 5,453,87 11,855,0

Financial assets at fair value through profit or loss 18 488,00 689,6

Deferred tax assets 27 698,41 679,5

Total non-current assets 20,475,25 27,572,2

Properties under development 20 94,305,79 127,448,6

Completed properties held for sale 20 22,654,41 18,887,1

Contract assets 22 1,321,92 1,227,2

Trade and other receivables and prepayments 23 27,465,76 32,650,9

Amounts due from related parties 35 8,340,90 11,285,0

Prepaid taxation 4,698,48 3,864,3

Financial assets at fair value through profit or loss 18 425,87 448,8

Term deposits 21 781,00 3,852,8

Restricted cash 21 3,974,50 6,482,8