上坤地產集團有限公司 SUNK WAN PROPERTIES GROUP LIMITED (Incorporated in the Cayman Islands with limited liability) 於開曼群島註冊成立的有限公司 Stock Code 股份代號 : 6900 INTERIM

上坤地產集團有限公司 SUNK WAN PROPERTIES GROUP LIMITED (Incorporated in the Cayman Islands with limited liability) 於開曼群島註冊成立的有限公司 Stock Code 股份代號 : 6900 INTERIM REPORT 中期報告 2021

CONTENTS 2 Company Profile 3 Corporate Information 6 Chairwoman s Statement 10 Performance Highlights 12 Summary of Major Properties 19 Management Discussion and Analysis 42 Other Information 54 Independent Review Report 56 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 57 Interim Condensed Consolidated Statement of Financial Position 59 Interim Condensed Consolidated Statement of Changes in Equity 61 Interim Condensed Consolidated Statement of Cash Flows 66 Notes to Interim Condensed Consolidated Financial Information

Company Profile Sunkwan Properties Group Limited, (stock code: 6900.HK) (the Company, together with its subsidiaries, collectively referred to as the Group or We ), is a rising real estate developer with residential property development and sales as its core business. The Company focuses on the Yangtze River Delta Economic Region, and expands to other strategically selected areas, namely the Pearl River Delta Economic Zone and Mid-China Core Economic Region, striving to become a premium urban life service provider. Adhering to our mission of coming for livable, the Company, founded in 2010 in Shanghai, provides various residential properties with new technology and art design, caters to the different needs and preferences of different customer groups, and brings customers intelligent, convenient and satisfactory life experience, establishing a good brand image among the customers and in the industry. After years of exploration, development and accumulation, it was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited (the Stock Exchange ) on 17 November 2020. 6900.HK 2010 2020 11 17 As at 30 June 2021, the Group has further operated in over 20 core first-tier, second-tier and strong third-tier cities located in Yangtze River Delta Economic Region, Pearl River Delta Economic Zone and Mid-China Core Economic Region. With continuous good performance and strong comprehensive strength, the Company has been recognised as Top 100 Real Estate Developers in China for four consecutive years (ranked 78th in 2021 in terms of comprehensive strength), 2021 Top 10 Real Estate Developers in China by Business Performance, 2021 Top 5 Real Estate Enterprises in China by Growth Potential and 2021 TOP10 Newly Listed Companies in Performance of China s Real Estate Industry. 2021 6 30 20 2021 78 2021 10 2021 5 2021 TOP10 2 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Corporate Information NAME OF COMPANY Sunkwan Properties Group Limited EXECUTIVE DIRECTORS Ms. Zhu Jing (Chairwoman of the Board and chief executive officer) Ms. Sheng Jianjing Mr. Yang Zhandong NON-EXECUTIVE DIRECTORS Mr. Lin Jinfeng Ms. Lin Zhaohong INDEPENDENT NON-EXECUTIVE DIRECTORS Mr. Guo Shaomu Mr. Au Yeung Po Fung Mr. Zhou Zheren AUDIT COMMITTEE Mr. Au Yeung Po Fung (Chairman) Mr. Guo Shaomu Mr. Zhou Zheren REMUNERATION COMMITTEE Mr. Guo Shaomu (Chairman) Mr. Zhou Zheren Ms. Sheng Jianjing NOMINATION COMMITTEE Ms. Zhu Jing (Chairwoman) Mr. Guo Shaomu Mr. Zhou Zheren JOINT COMPANY SECRETARIES Ms. Lu Shiyuan Mr. Lee Leong Yin resigned on 31 May 2021) Ms. Lau Jeanie (ACS, ACG) (appointed on 31 May 2021) AUTHORIZED REPRESENTATIVES Ms. Zhu Jing Mr. Lee Leong Yin resigned on 31 May 2021) Ms. Lau Jeanie (appointed on 31 May 2021) 2021 5 31 (ACS ACG) 2021 5 31 2021 5 31 2021 5 31 2021 3

Corporate Information COMPANY S WEBSITE www.sunkwan.com.cn REGISTERED OFFICE Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands PRINCIPAL PLACE OF BUSINESS AND HEAD OFFICE IN THE PRC 8/F, Tower 5, No. 1399 Xinzhen Road, Minhang District Shanghai, PRC PRINCIPAL PLACE OF BUSINESS IN HONG KONG 40/F, Dah Sing Financial Centre 248 Queen s Road East Wanchai, Hong Kong LEGAL ADVISERS As to Hong Kong law: Sidley Austin www.sunkwan.com.cn Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands 1399 5 8 248 40 As to PRC law: Commerce & Finance Law Offices As to Cayman Islands law: Conyers Dill & Pearman AUDITOR Ernst & Young Certified Public Accountants Registered Public Interest Entity Auditor COMPLIANCE ADVISER Maxa Capital Limited Conyers Dill & Pearman 4 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Corporate Information HONG KONG SHARE REGISTRAR Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor, Hopewell Centre 183 Queen s Road East, Wanchai, Hong Kong STOCK CODE 6900 PRINCIPAL BANKS Hong Kong Industrial and Commercial Bank of China (Asia) Limited Bank of China (Hong Kong) Limited CMB Wing Lung Bank Limited 183 17 1712-1716 6900 PRC Industrial and Commercial Bank of China Limited Bank of China Limited China Construction Bank Corporation Bank of Communications Bank of Shanghai Co. Ltd. China Guangfa Bank Co., Ltd. Bank of Jiangsu Co., Ltd. China Zheshang Bank Co., Ltd. 2021 5

Chairwoman s Statement Zhu Jing Chairwoman of the Board 6 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Chairwoman s Statement Dear shareholders, I am hereby pleased to present to you the business review of the Group for the six months ended 30 June 2021 (the Period ) and its outlook for the second half of 2021. INTERIM RESULTS For the six months ended 30 June 2021, the total contracted sales (including the contracted sales obtained by the joint ventures and associates of the Group) of the Group were approximately RMB16,723 million. The contracted sales amount and contracted gross floor area ( GFA ) attributable to the Group amounted to RMB10,536 million and 796,076 sq.m.. 2021 6 30 2021 2021 6 30 16,723 10,536796,076 For the Period, the Group s recognised revenue was approximately RMB1,522.6 million (the first half of 2020: RMB1,955.2 million), representing a decrease of approximately 22.1% as compared with the corresponding period in 2020. Profit for the Period was approximately RMB262.1 million (the first half of 2020: RMB219.7 million), representing an increase of approximately 19.3% as compared with the corresponding period in 2020. 1,522.620201,955.2 202022.1% 262.12020 219.72020 19.3% As at 30 June 2021, total assets increased by approximately 38.5% to RMB42,265.3 million (as at 31 December 2020: RMB30,521.6 million). Cash and bank balances increased by approximately 37.0% to RMB7,307.9 million (as at 31 December 2020: RMB5,333.5 million). REVIEW OF THE FIRST HALF OF 2021 In the first half of 2021, despite the sophisticated domestic and international environment, China s economy saw growth in stability with increasing drivers by continuously strengthening the achievements in pandemic prevention and control as well as economic and social development. In the first half of 2021, the gross domestic product (GDP) reached RMB53,216.7 billion, representing a year-on-year increase of 12.7%. Although the growth of 7.9% of macro economy in the second quarter was relatively slower as compared with the first quarter due to the impact of higher base, the two-year compound average growth in the second quarter was 5.5%, faster than that of the first quarter, representing a stronger resilience of the economy as a whole. 2021 6 30 42,265.3 2020 12 31 30,521.6 38.5% 7,307.92020 12 31 5,333.537.0% 2021 2021 2021532,167 12.7% 7.9% 5.5% 2021 7

Chairwoman s Statement The overall situation in the real estate market was unchanged since the COVID-19 pandemic, and the national sales of commodity houses amounted to RMB6.5 trillion in the first half of the year, contributing around 9.2% to the economy. As the land premium of residential properties and premium rate were higher than that of last year, and the overall land market showed an upward trend, the deposits for land auction in 22 cities accounted for 48% of the total deposits for nationwide land auction. 6.5 9.2% 22 48% Meanwhile, the policy keynote of stabilising housing price, land premium and expectation remained unchanged. The financial environment was tightened on a continuing basis, Three Red Lines and Two Red Lines were hold firmly to deleverage and control financing, off-balance-sheet business was controlled by regulating commercial bills and demands were damped by increasing the interest rate and suspending loans for pre-owned houses. The growth of real estate sector is expected to slow down. Facing opportunities and challenges as well as the changing market and policies, the Group continued to dig into the three core economic circles and acquired high-quality land bank through diversified land acquisition methods and prudent investment strategies. In the first half of 2021, our land bank increased by 3.078 million sq.m., of which 48.5% was in the Yangtze River Delta, which further expanded our advantage in regional layout. 2021307.8 48.5% The Group not only achieved high-quality growth in performance but also extended its prudent financial strategies by continuously optimizing its liability structure and maintaining sufficient liquidity. As at 30 June 2021, the Group s bank loans increased to 42.9% with the long-term loans remained stable at 71.8%. At the same time, the net gearing ratio was approximately 66.7%, the unrestricted cash to current borrowings ratio was approximately 1.3 times and the assets to liabilities ratio after excluding receipts in advance was approximately 75.4%. Two indicators among the above three ones met the regulatory requirements of the limits for three financial ratios, same with the previous year. 2021 6 30 42.9% 71.8% 66.7% 1.3 75.4% 8 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Chairwoman s Statement The Group has been gaining market recognition since its debut in the capital market in November last year. In March 2021, the Group s ranking was lifted to TOP 78 of Top 100 real estate companies in China in 2021 and TOP 8 of real estate developers in China in 2021 in comprehensive strength. In May 2021, the Group was successfully admitted as a constituent of MSCI China Small Cap Index. During the Period, the Group achieved high-quality growth by leveraging on its strategic investment capability, quality and complete product capability, efficient and synergetic operation capability as well as repeatedly upgraded talent organisation. OUTLOOK FOR THE SECOND HALF OF 2021 Looking forward to the second half of the year, under the general trend of the global liquidity contraction, facing the emergence of centralised land supply, the regulatory of the Three Red Lines, and the instability of the capital market, the external environment presents squeezing and shocking in multiple dimensions. Housing without speculation and steady development of the real estate market will remain as the general principle of government policies. Deep penetrating and robust housing enterprises will have more development opportunities. In the second half of the year, the Group expects that financing channels will be further tightened, the centralised land supply policy will be further optimised, the differentiation and integration of the industry will be further intensified, and the real estate industry will fully enter a competition stage of integrated competence. The Group will continue to focus on steady operation, constantly improve their product capabilities, and actively adapt to the new policy and market environment. The Group will continue to make targeted investments, closely follow the market changes, adhere to the regional penetration strategy, and fully explore investment opportunities through diversified ways. The Group will continue to promote a stable and safe financial supervision system, optimise the financial structure and continue to improve financing capacity so as to reduce financing costs and build a sustainable competitive advantage. Meanwhile, with the deepening of policies according to different city conditions and the intensification of market differentiation in different locations, the Group will continue to optimise marketing strategies, actively supply products and launch precisely and improve turnover efficiency to achieve high-quality growth. 11 2021 3 2021 TOP78 2021 TOP8 2021 5 MSCI 2021 2021 Chairwoman ZHU Jing Hong Kong, 27 August 2021 2021 8 27 2021 9

Performance Highlights PERFORMANCE HIGHLIGHTS For the six months ended 30 June 6 30 2021 2020 2021 2020 Contracted sales (1) attributable to the Group (in RMB million) Contracted gross floor area (GFA) sold attributable to the Group (sq.m.) Contracted average selling price (ASP) attributable to the Group (RMB/sq.m.) (1) 10,536 8,119 796,076 340,370 13,235 23,853 Revenue (in RMB million) 1,523 1,955 Gross profit (in RMB million) 340 920 Profit for the period Including non-controlling interests (in RMB million) 262 220 Attributable to owner of the parent (in RMB million) 54 26 Core net profit (2) (2) Including non-controlling interests (in RMB million) 252 207 Attributable to owner of the parent (in RMB million) 46 17 Gross profit margin (%) (3) (%) (3) 22.3 47.0 Net profit margin (%) (%) 17.2 11.2 As at 30 June 2021 2021 6 30 As at 31 December 2020 2020 12 31 Current ratio (times) (4) (4) 1.4 1.4 Net gearing ratio (%) (5) (%) (5) 66.7 54.3 The unrestricted cash to current borrowings ratio (times) (6) (6) 1.3 1.5 Assets to liabilities ratio after excluding receipts in advance (%) (7) (%) (7) 75.4 72.1 10 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Performance Highlights Notes: (1) Contracted sales data is unaudited and is prepared based on internal information of the Group. In view of various uncertainties during the collection of such sales information, such contracted sales data is provided for investors reference only. (2) Equal to the profit for the Period less fair value gains on investment properties and fair value gains on financial assets at fair value through profit or loss. (3) Equal to gross profit for the Period divided by revenue and multiplied by 100. (4) Equal to total current assets divided by total current liabilities as at the respective dates. (5) Equal to interest bearing bank loans, other borrowings and senior notes less cash and bank balances divided by total equity at the end of the Period and multiplied by 100. (6) Equal to unrestricted cash (cash and cash balances less restricted cash) divided by current portion of interest bearing bank loans, other borrowings and senior notes. (7) Equal to total liabilities less contract liabilities divided by total assets less contract liabilities and multiplied by 100. (1) (2) (3) 100 (4) (5) 100 (6) (7) 100 2021 11

Summary of Major Properties Summary of Major Properties 12 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Summary of Major Properties Zhengzhou South China Sea Islands Shangqiu Xinyang Tianmen Fuyang Suzhou Bengbu Hefei Wuhan Nanjing Changzhou Suzhou Wuxi Wuhu Hangzhou Shaoxing Nantong Shanghai Jiaxing Ningbo Shangrao Jinhua Wenzhou Headquarter Foshan Guangzhou Dongguan Shantou Cities with Our Projects Yangtze River Delta Economic Region Mid-China Core Economic Region Pearl River Delta Economic Zone 2021 13

Summary of Major Properties SUMMARY OF LAND BANK As at 30 June 2021, the total planned GFA of land bank of the Group, together with its joint ventures and associates, was approximately 7,770,794 sq.m., and the GFA attributable to the Group was approximately 5,971,482 sq.m., involving 72 property development projects, 26 of which have been participated in through joint ventures and associates. 2021 6 30 7,770,794 5,971,482 72 26 Land Bank by City Level 6% Land Bank by Economic Region 32% 36% 59% 9% 30% 28% First-tier cities New first-tier cities Second-tier cities Third-tier cities Yangtze River Delta Economic Region Pearl River Delta Economic Zone Mid-China Core Economic Region Distribution of Land Bank by Project Status Pearl River Delta Economic Zone Mid-China Core Economic Region Yangtze River Delta Economic Region Completed saleable area GFA Under Development Leasable GFA Estimated GFA for future development 14 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

1 Summary of Major Properties The following table sets forth the breakdown of land bank of the Group together with its joint ventures and associates as at 30 June 2021: Name of Projects City 2021 6 30 Interest Attributable to the Group GFA Available for Sale (1) Leasable GFA GFA Under Development Estimated GFA for Future Development Total Land Bank Attributable to the Group (2)(3) % in sq.m in sq.m. in sq.m. in sq.m. in sq.m. (1) (2) (3) % Property Projects Developed by our Subsidiaries Residential Property Projects Yangtze River Delta Economic Region Shanghai Flourish Neighbourhood Shanghai 50.0 11,254 11,254 Hangzhou Sunkwan Majestic Seasons Hangzhou 100.0 166,964 166,964 Hangzhou Mindcloud Imperial Garden Hangzhou 52.0 163,813 163,813 Ningbo Cixi Cloud Mansion Ningbo 33.3 7,770 7,770 Ningbo Cixi Phoenix Mansion Ningbo 30.0 2,932 2,932 Ningbo Cixi Gracious Mansion Ningbo 25.0 63,883 63,883 Jinhua Dongyang Metropolis Jinhua 51.0 249 249 Jinhua Dongyang Metropolis Seasons Jinhua 38.3 76,928 76,928 Suzhou Lakeview Seasons Suzhou 35.0 125,152 125,152 Changzhou Mindcloud Peakview Changzhou 40.0 199,902 199,902 Nantong Hai an Changhong Waterfront City Nantong 49.9 79,883 79,883 Fuyang Baolong Stone Art Town Fuyang 50.0 82,799 82,799 Fuyang Majestic Mansion Fuyang 51.0 204,848 204,848 Wuhu Joy Seasons Wuhu 49.0 185,255 185,255 Jinhua Dongyang Mindcloud Mansion Jinhua 51.0 98,621 98,621 Ningbo Cixi Crystal Seasons Ningbo 53.6 96,728 96,728 Nanjing Mindcloud Garden Nanjing 100.0 51,802 51,802 Hefei Mindcloud Mountainview Hefei 51.0 107,549 107,549 Shaoxing Majestic Mansion Shaoxing 51.0 72,726 72,726 Suzhou Mindcloud Garden Suzhou 51.0 130,465 130,465 Suzhou Kunshan Metropolis Seasons Suzhou 70.0 171,315 171,315 Jiaxing Meili New Garden Jiaxing 51.0 11,481 11,481 Block B4, Wuzhen B4 Jiaxing 30.0 113,494 113,494 Wenzhou Yueqing Yunqi Fenghua Wenzhou 50.0 71,745 71,745 Hefei Crystal Seasons Hefei 51.0 108,460 108,460 Jinhua Lanxi Mindcloud Garden Jinhua 45.9 131,778 131,778 Wenzhou Yueqing Mindcloud Mountainview Wenzhou 50.0 118,010 118,010 Sub-total 266,324 2,271,472 118,010 2,655,806 2021 15

1 Summary of Major Properties Name of Projects City Interest Attributable to the Group GFA Available for Sale (1) Leasable GFA GFA Under Development Estimated GFA for Future Development Total Land Bank Attributable to the Group (2)(3) % in sq.m in sq.m. in sq.m. in sq.m. in sq.m. (1) (2) (3) % Mid-China Core Economic Region Shangrao Sunkwan Riverside Seasons Shangrao 100.0 271,815 271,815 Shangrao Metropolis Seasons Shangrao 65.0 152,683 152,683 Tianmen Sunkwan Northlake Seasons Tianmen 100.0 29,411 29,411 Wuhan Metropolis Wuhan 100.0 558,674 558,674 Wuhan Yunqi Metropolis Wuhan 51.0 58,458 58,458 Xinyang Tianyue Xinyang 38.5 254,720 254,720 Xinyang Tianjing Xinyang 38.5 103,822 103,822 Xinyang Tianxi Xinyang 38.5 154,889 154,889 Sub-total 29,411 1,555,061 1,584,472 Pearl River Delta Economic Zone Dongguan Champagne Garden Dongguan 25.0 14,558 14,558 Foshan Sunkwan Lakeview Seasons Foshan 100.0 13,717 13,717 Foshan Mindcloud Mansion Foshan 100.0 43,880 43,880 Foshan Sunkwan Mindcloud Peakview Foshan 100.0 133,288 133,288 Guangzhou Yunjing Fenghua Guangzhou 51.0 72,665 72,665 Sub-total 28,275 249,833 278,108 Commercial Property Projects Shanghai Sunkwan Red Commercial Plaza Shanghai 100.0 5,952 5,952 Shanghai Sunkwan Upper Commercial Plaza Shanghai 100.0 3,561 21,932 25,493 Shanghai Flourish projects 08-06/08 08-06/08 Shanghai 50.0 158,060 158,060 Shanghai Sunkwan Flourish Peninsula (Basement Shanghai 50.0 1,725 1,725 Clubhouse) Shanghai Sunkwan International Plaza T3 T3 Shanghai 100.0 14,727 14,727 Shanghai Sunkwan International Plaza T4 T4 Shanghai 100.0 14,805 14,805 Shanghai Sunkwan International Plaza T5 T5 Shanghai 100.0 11,484 11,484 Sub-total 3,561 70,625 158,060 232,246 16 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

1 Summary of Major Properties Name of Projects City Interest Attributable to the Group GFA Available for Sale (1) Leasable GFA GFA Under Development Estimated GFA for Future Development Total Land Bank Attributable to the Group (2)(3) % in sq.m in sq.m. in sq.m. in sq.m. in sq.m. (1) (2) (3) % Property Projects Developed by Our Associates and Joint Ventures Residential Property Projects Yangtze River Delta Economic Region Shanghai Mindcloud Mountainview Shanghai 35.0 25,176 25,176 Wenzhou Prosperous Seasons Wenzhou 50.0 49,850 49,850 Wenzhou West Lakeside Seasons Wenzhou 50.0 42,105 42,105 Suzhou Mindcloud Timeview Suzhou 70.0 115,730 115,730 Suzhou Jade Seasons Suzhou 24.5 1,355 1,355 Jiaxing Red Star Fashion Plaza Jiaxing 3.5 4,068 4,068 Jiaxing Mindcloud Garden Jiaxing 50.0 40,980 40,980 Shaoxing Zhuji Mindcloud Mansion Shaoxing 49.0 30,437 30,437 Block B5, Wuzhen B5 Jiaxing 30.0 38,253 38,253 Lishui Chongwenli Lishui 50.0 64,256 64,256 Nantong Chenxing Garden Nantong 15.6 14,261 14,261 Hangzhou Yuezhen Mansion Hangzhou 24.9 21,895 21,895 Suzhou Taicang Mindcloud Mountainview Suzhou 33.0 15,812 15,812 Plot XDG-2020-77, Huishan District, Wuxi XDG-2020-77 Wuxi 15.0 31,266 31,266 Jinhua Yiwu Yunqifengjing Jinhua 49.0 68,901 68,901 Bengbu Yunqi Metropolis Bengbu 51.0 40,850 40,850 Jinhua Dongyang Yunzhuxiyu Jinhua 34.0 23,262 23,262 Sub-total 1,355 558,201 68,901 628,457 Mid-China Core Economic Region Wuhan Yangluo P (2020) Lot 186 P(2020)186 Wuhan 51.0 152,051 152,051 Wuhan Sunkwan Sumptuous Skyview Wuhan 70.0 24,912 24,912 Jiangxia Project Wuhan 30.0 30,359 30,359 Shangqiu Sky Platinum Shangqiu 50.0 116,244 116,244 Zhengzhou Seasons Fenghua Zhengzhou 49.0 99,594 99,594 Sub-total 423,160 423,160 2021 17

1 Summary of Major Properties Name of Projects City Interest Attributable to the Group GFA Available for Sale (1) Leasable GFA GFA Under Development Estimated GFA for Future Development Total Land Bank Attributable to the Group (2)(3) % in sq.m in sq.m. in sq.m. in sq.m. in sq.m. (1) (2) (3) % Pearl River Delta Economic Zone Foshan Jinping Mountain No. 1 Foshan 49.0 37,570 37,570 Shantou Tanyue Mansion Shantou 24.1 80,993 80,993 Sub-total 118,563 118,563 Commercial Property Projects Shanghai Sunkwan Center Shanghai 50.0 49,162 49,162 Wuzhen No.B3 Land Parcel B3 Jiaxing 6.9 1,508 1,508 Sub-total 49,162 1,508 50,670 Land Reserves Attributable to the Group 328,926 70,625 5,383,512 188,419 5,971,482 Total Land Reserves 333,100 70,625 7,086,468 280,601 7,770,794 Notes: (1) Includes (i) completed GFA pre-sold but yet delivered, and (ii) completed GFA unsold and available for sale. (2) Total land bank attributable to the Group equals to the sum of (i) total GFA available for sale and total leasable GFA for completed properties, (ii) total GFA for properties under development, and (iii) total GFA for properties held for future development. (3) For projects held by joint ventures or associates, total GFA attributable to the Group will be adjusted by the Group s equity interest in the respective project. (1) (i) (ii) (2) (i) (ii) (iii) (3) 18 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis BUSINESS REVIEW For the Period, the principal business activity of the Group is property development. Contracted Sales The property development business of the Group originated from Shanghai and is deeply rooted in the Yangtze River Delta Economic Region, and gradually expanded to other first-, second and strong third-tier cities in the Pearl River Delta Economic Zone and the Mid-China Core Economic Region. For the Period, the contracted sales attributable to the Group were approximately RMB10,536 million, representing an increase of approximately 29.8% as compared with the corresponding period in 2020. Such increase was mainly due to the fact that the Group, together with its joint ventures and associates, has been intensively penetrating into regional development, resulting in an increase of its accumulated saleable GFA. 10,536 202029.8% 2021 19

Management Discussion and Analysis For the Period, the contracted GFA sold attributable to the Group of approximately 796,076 sq.m., representing an increase of approximately 133.9% as compared with the corresponding period in 2020 and the contracted ASP attributable to the Group of approximately RMB13,235 per sq.m. 796,076 2020133.9% 13,235 The following table sets forth the summary of the contracted sales attributable to the Group by economic regions for the Period: Economic Regions Contracted sales attributable to the Group Percentage of contracted sales attributable to the Group Contracted GFA sold attributable to the Group Contracted ASP attributable to the Group in RMB million % sq.m. RMB/sq.m. % Yangtze River Delta Economic Region 8,306 78.8 563,520 14,739 Pearl River Delta Economic Zone 794 7.6 58,834 13,496 Mid-China Core Economic Region 1,436 13.6 173,722 8,266 Total 10,536 100.0 796,076 13,235 20 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis The following table sets forth the summary of the contracted sales attributable to the Group by cities for the Period: City Contracted sales attributable to the Group Percentage of contracted sales attributable to the Group Contracted GFA sold attributable to the Group Contracted ASP attributable to the Group in RMB million % sq.m. RMB/sq.m. % Hangzhou 2,125 20.2 91,927 23,116 Wuhu 1,534 14.6 134,084 11,441 Ningbo 878 8.3 57,098 15,377 Hefei 856 8.1 57,032 15,009 Jinhua 838 8.0 43,106 19,440 Foshan 776 7.4 56,976 13,620 Suzhou 761 7.2 60,129 12,656 Wuhan 591 5.6 57,644 10,253 Shangqiu 510 4.8 76,450 6,671 Nanjing 368 3.5 13,311 27,646 Shangrao 335 3.2 39,628 8,454 Fuyang 389 3.7 64,159 6,063 Lishui 168 1.6 13,139 12,786 Zhuji 159 1.5 7,983 19,917 Suzhou 140 1.3 16,317 8,580 Others 108 1.0 7,093 15,226 Total 10,536 100.0 796,076 13,235 Note: Contracted sales data is unaudited and is prepared based on internal information of the Group. In view of various uncertainties during the collection of such sales information, such contracted sales data is provided for investors reference only. 2021 21

Management Discussion and Analysis Properties under Development Properties under development are intended to be held for sale after completion. Properties under development are stated at the lower of cost comprising land costs, construction costs, borrowing costs, professional fees and other costs directly attributable to such properties incurred during the development period and net realisable value. Properties under development are classified as current assets unless those will not be realised in normal operating cycle. On completion, the properties are transferred to completed properties held for sale. The Group s properties under development increased by approximately 62.0% from approximately RMB12,495.2 million as at 31 December 2020 to approximately RMB20,247.5 million as at 30 June 2021. The increase was mainly due to the increased number of properties under development projects held as at 30 June 2021. 2021 6 30 20,247.52020 12 3112,495.2 62.0%2021 6 30 Completed Properties Held for Sale Completed properties held for sale are stated in the statements of financial position at the lower of cost and net realisable value. Cost is determined by an apportionment of the total costs of land and buildings attributable to the unsold properties. Net realizable value is determined by reference to the sale proceeds of properties sold in the ordinary course of business, less applicable variable selling expenses, or estimates based on prevailing marketing conditions. The Group s completed properties held for sale decreased by approximately 61.4% from approximately RMB1,562.9 million as at 31 December 2020 to approximately RMB602.9 million as at 30 June 2021. The decrease was mainly due to part of those properties were sold and delivered to the customers for the Period. 2021 6 30 602.92020 12 31 1,562.9 61.4% 22 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis Investment Properties While the Group focused on residential property development as the Group s core business, the Group s business gradually expanded to the development of all types of commercial and mixed-use properties. Currently, the Group holds certain commercial spaces (primarily include retail spaces adjacent to the Group s residential properties, commercial district shopping plazas and office buildings) as investment properties, for example, Shanghai Sunkwan Center, a joint venture project of the Group, is a large multi-purpose commercial complex with office buildings, shopping plazas and hotel facility. As at 30 June 2021, the Group had investment interests in a commercial property portfolio of eight projects under various stages of development, including six projects developed by the Group s subsidiaries and two projects developed by its joint venture, and seven of which were located in Shanghai. These projects included three completed office buildings, two completed commercial district shopping plazas, one completed mixed-use commercial complex, and two mixed-use commercial property projects under development or held for future development with a total GFA attributable to the Group of 282,916 sq.m. The Group intends to leverage its existing human and capital resources to increase its commercial property holdings and gradually expand its commercial property investments in the future. 2021 6 30 282,916 Land Bank During the Period, the Group further defined the 3+X regional layout system based on the guidance of the regional deep cultivation strategy of urban agglomeration in combination with the Company s development demands and industry trends. Relying on Shanghai, the Group continued to deepen its penetration into the Yangtze River Delta Economic Region, the Pearl River Delta Economic Zone and the Mid- China Core Economic Region, continuously improved the Group s market position and brand awareness in cities that the Group had entered into in selected areas and gradually expanded the new first-, second and strong third-tier cities with high growth potential that the Group had not entered into so as to reasonably protect the sustainable development of the Group s land bank. 3+X 2021 23

Management Discussion and Analysis As at 30 June 2021, the planned GFA of land bank of the Group, together with its joint ventures and associates, was approximately 7,770,794 sq.m., and the GFA attributable to the Group was approximately 5,971,482 sq.m.. 2021 6 30 7,770,794 5,971,482 During the Period, the Group, together with its joint ventures and associates, had added 24 new projects, with a planned GFA of approximately 3,078,137 sq.m., and an average acquisition cost (calculated according to the estimated total GFA) of RMB3,729 per sq.m., of which 13 projects were acquired through public tender, auction or listing-for-sale held by the government, and 11 projects were cooperated with third-party business partners through joint ventures and associates, or acquiring equity interests in companies that possess land use rights. 24 3,078,137 3,72913 11 The following table sets forth the details of additional property projects of the Group together with its joint ventures and associates for the Period: Interest Attributable to Land Parcels Area Estimated GFA Average Acquisition Cost (Based on Estimated GFA) % in sq.m in sq.m RMB/sq.m. City Project/Land Parcel Project Type % Yangtze River Delta Economic Region Lishui Lishui Chongwenli Residential/ 50.0 54,837 128,513 2,665 Commercial Nantong Nantong Chenxing Residential/ 15.6 31,017 91,416 5,524 Garden Commercial Hangzhou Hangzhou Yuezhen Residential/ 24.9 25,998 87,933 2,697 Mansion Commercial Jiaxing Block B3, Wuzhen B3 Commercial 6.9 36,630 21,978 4,018 Jiaxing Block B4, Wuzhen B4 Residential/ Commercial 30.0 32,652 113,494 3,035 24 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis Interest Attributable to Land Parcels Area Estimated GFA Average Acquisition Cost (Based on Estimated GFA) % in sq.m in sq.m RMB/sq.m. City Project/Land Parcel Project Type % Jiaxing Block B5, Wuzhen B5 Residential/ 30.0 36,455 127,510 2,686 Commercial Wuxi Plot XDG-2020-77, Residential/ 15.0 53,937 156,330 6,580 Huishan District, Wuxi XDG-2020-77 Commercial Bengbu Bengbu Yunqi Metropolis Residential/ Commercial 51.0 35,708 80,114 3,458 Jinhua Jinhua Dongyang Yunzhuxiyu Residential 34.0 16,169 68,418 4,429 Wenzhou Wenzhou Yueqing Yunqi Fenghua Residential/ Commercial 50.0 21,570 71,745 2,899 Suzhou Suzhou TaicangMindcloud Residential 33.0 16,999 47,915 6,307 Mountainview Hefei Hefei Jingcui Four Seasons Residential/ Commercial 51.0 46,487 108,460 5,272 Jinhua Jinhua Yiwu Yunqifengjing Residential/ 49.0 38,951 140,613 6,258 Commercial Jinhua Jinhua Lanxi Yunqitaoyuan Residential 45.9 46,690 131,778 5,446 Wenzhou Wenzhou Yueqing Mindcloud Mountainview Residential 50.0 35,882 118,010 3,288 2021 25

Management Discussion and Analysis Interest Attributable to Land Parcels Area Estimated GFA Average Acquisition Cost (Based on Estimated GFA) % in sq.m in sq.m RMB/sq.m. City Project/Land Parcel Project Type % Pearl River Delta Economic Zone Shantou Shantou Joy Mansion Residential/ Commercial Guangzhou Guangzhou Yunjing Residential/ Fenghua Commercial 24.1 62,413 336,768 3,062 51.0 17,258 72,665 10,613 Mid-China Core Economic Region Xinyang Xinyang Tianyue Residential/ 38.5 84,176 254,720 2,403 Commercial Xinyang Xinyang Tianjing Residential/ 38.5 40,839 103,822 2,590 Commercial Xinyang Xinyang Tianxi Residential/ 38.5 60,433 154,889 2,572 Commercial Wuhan Wuhan Yunqi Metropolis Residential/ 51.0 13,155 58,458 4,297 Commercial Wuhan Wuhan Yangluo P (2020) P(2020) Residential/ 51.0 104,832 298,139 2,131 No. 186 Land Parcel 186 Commercial Zhengzhou Zhengzhou Seasons Residential 49.0 60,690 203,252 2,696 Fenghua Wuhan Jiangxia Project Residential 30.0 39,197 101,197 4,201 Total 1,012,975 3,078,137 3,729 26 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis FINANCIAL REVIEW Revenue The revenue of the Group consists of revenue derived from: (i) sales of properties; (ii) property lease income; and (iii) project management services. For the Period, approximately 95.1% (2020: 98.1%) of the Group s revenue was derived from sales of properties and approximately 4.9% (2020: 1.9%) was derived from property lease income and project management services. (i) (ii)(iii) 95.1% 202098.1%) 4.9% 20201.9% For the Period, The Group s revenue decreased by approximately 22.1% to approximately RMB1,522.6 million as compared with the last corresponding period. The decrease was mainly due to the reduction in revenue from sales of properties during the Period. 22.1% 1,522.6 The table below sets forth a summary of the recognised revenue by business for the periods indicated: For the six months ended 30 June 6 30 2021 2020 2021 2020 Percentage of total Percentage of total Revenue revenue Revenue revenue in RMB million % in RMB million % % % Sale of properties 1,448 95.1 1,919 98.1 Property lease income 28 1.8 20 1.0 Project management services 47 3.1 16 0.9 Total 1,523 100.0 1,955 100.0 2021 27

Management Discussion and Analysis Revenue from sales of properties Revenue from sales of properties has constituted, and is expected to continue to constitute, a substantial portion of the Group s total revenue and approximately 95.1% of the total revenue during the Period. 95.1% The Group s operating results for any given period depend on the GFA and selling price of the properties delivered by the Group in the relevant period and the market demand for such properties. According to industry practice, the Group typically enters into purchase contracts with customers when the properties are still under development but have already satisfied the conditions for pre-sale in accordance with the PRC laws and regulations. In general, it takes it at least one year from commencement of the pre-sale of the properties under development to the construction completion of such properties. The Group does not recognise revenue from any pre-sold properties until the construction completion of such properties and the ownership of the properties having been transferred to the customers. Revenue from sales of properties decreased by approximately 24.5% from approximately RMB1,918.6 million for the six months ended 30 June 2020 to approximately RMB1,448.2 million for the Period, mainly due to the lower ASP of the completed and delivered properties in Tianmen and Foshan as compared with the corresponding period in 2020. 2020 6 30 1,918.624.5% 1,448.2 2020 Revenue from property lease Rental income from the investment properties increased by approximately 36.7% from RMB20.4 million for the six months ended 30 June 2020 to RMB27.8 million for the Period, mainly due to the easing of the novel coronavirus epidemic in China. 2020 6 30 20.436.7% 27.8 Revenue from project management services Revenue from the provision of project management services increased by approximately 185.8% from RMB16.3 million for the six months ended 30 June 2020 to RMB46.5 million for the Period, mainly due to an increase in the number of property projects that require project management services from us compared with the corresponding period in 2020. 2020 6 30 16.3185.8% 46.5 2020 28 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis Cost of Sales The Group s cost of sales primarily represents the costs the Group incurs directly for the property development activities as well as property lease and project management services. The principal components of cost of sales for the Group s property development include cost of properties sold, which represents land use right costs, direct construction costs and capitalised interest costs on related borrowings for the purpose of property development during the period of construction. The Group s cost of sales increased by approximately 14.2% from RMB1,035.7 million for the six months ended 30 June 2020 to RMB1,182.6 million for the Period, mainly due to an increase in the GFA of the delivered property projects. 2020 6 30 1,035.714.2% 1,182.6 Gross Profit and Gross Profit Margin The gross profit of the Group decreased by approximately 63.0% from RMB919.5 million for the six months ended 30 June 2020 to RMB340.0 million for the Period. 2020 6 30 919.563.0% 340.0 The gross profit margin decreased from approximately 47.0% for the six months ended 30 June 2020 to approximately 22.3% for the Period, primarily due to the geographical difference and higher gross profit margin of the delivered properties in the previous period. 2020 6 30 47.0%22.3% Finance Income Finance income mainly refers to the interest income of bank deposits. The finance income of the Group increased by approximately 197.3% from RMB9.2 million for the six months ended 30 June 2020 to RMB27.4 million for the Period, mainly due to an increase in the total bank deposits. 2020 6 30 9.2197.3% 27.4 Other Income and Gains Other income and gains of the Group increased from RMB6.0 million for the six months ended 30 June 2020 to RMB33.1 million for the Period, mainly due to the gain on the disposal of subsidiaries. 2020 6 30 6.0 33.1 2021 29

Management Discussion and Analysis Selling and Distribution Expenses The selling and distribution expenses primarily consist of (i) sales commissions; (ii) advertising and marketing expenses, (iii) staff costs; (iv) property management fees; and (v) office expenses. The Group s selling and distribution expenses increased by approximately 24.7% from RMB95.6 million for the six months ended 30 June 2020 to RMB119.3 million for the Period mainly due to an increase in the number of projects on sale incurring additional sales commissions and advertising activities. (i) (ii) (iii) (iv) (v) 2020 6 30 95.6 24.7%119.3 Administrative Expenses Administrative expenses primarily consist of staff costs, traveling and office expenses, professional fees, entertainment expenses, depreciation and amortization, tax charges. The administrative expenses of the Group increased by approximately 27.7% from RMB121.3 million for the six months ended 30 June 2020 to RMB155.0 million for the Period, mainly due to increase in staff costs and office expenses as the Group further scaled up and accelerated its expansion. 2020 6 30 121.327.7% 155.0 Impairment Losses on Financial Assets Impairment losses on financial assets presents that the Group made prudent general provisions for losses arising from potential bad debts in respect of the financial assets. The Group recognised impairment losses of RMB1.2 million for the Period, and reversed impairment losses of RMB0.3 million for the six months ended 30 June 2020. 1.2 2020 6 30 0.3 Other Expenses Other expenses of the Group increased from RMB0.5 million for the six months ended 30 June 2020 to RMB0.6 million for the Period. 2020 6 30 0.5 0.6 Fair Value Gains on Investment Properties Fair value gains on investment properties represent the changes in the fair value of investment properties of certain commercial areas developed and held by the Group for the purpose of earning rental income or capital appreciation. Fair value gains on investment properties of the Group decreased by approximately 49.3% from RMB16.4 million for the six months ended 30 June 2020 to RMB8.3 million for the Period, mainly because the valuation of commercial properties have tend to be steady. 2020 6 30 16.4 49.3%8.3 30 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis Fair Value Gains on Financial Assets at Fair Value through Profit or Loss Fair Value Gains on financial assets at fair value through profit or loss of the Group increased from RMB0.3 million for the six months ended 30 June 2020 to RMB4.9 million for the Period, mainly due to the purchase of an additional financial product during the Period and the subsequent increase in its fair value. 2020 6 30 0.3 4.9 Finance Costs Finance costs primarily consist of (i) interest expenses for bank and other borrowings net of capitalised interest relating to properties under development; and (ii) interest expenses arising from contract liabilities, which is related to the pre-sale proceeds of the Group s properties received from customers. Finance costs of the Group increased by approximately 2.6% from RMB126.5 million for the six month ended 30 June 2020 to RMB129.8 million for the Period, mainly due to an increase in the scale of interest-bearing debt. (i) (ii) 2020 6 30 126.5 2.6%129.8 Share of Profits and Losses of Joint Ventures and Associates The Group recorded share of losses of joint ventures and associates of RMB45.9 million for the Period and share of profits of joint ventures and associates of RMB1.9 million the corresponding period in 2020. Such change was mainly due to the absence of the delivery of property projects held by the Group s joint ventures and associates during the Period. 45.9 1.9 Income Tax Credit/(Expense) The income tax expense of the Group mainly includes provisions for PRC corporate income tax and land appreciation tax ( LAT ), net of deferred tax. The income tax expense of the Group decreased from RMB390.2 million for the six months ended 30 June 2020 to income tax credit of RMB300.1 million for the Period, mainly due to (i) the lower gross profit of the delivered property projects during the Period; and (ii) the final clearance of LAT for three projects, which were lower than the provision estimated and deducted from the LAT in current period. 2020 6 30 390.2 300.1 (i) (ii) 2021 31

Management Discussion and Analysis Profit for the Period Profit for the Period of the Group increased by approximately 19.3% from RMB219.7 million for six month ended 30 June 2020 to RMB262.1 million for the Period. The profit attributable to the owners of the parent was RMB53.9 million, with an increase of approximately 104.1% from RMB26.4 million compared with the corresponding period of last year. LIQUIDITY, FINANCIAL AND CAPITAL RESOURCES The Group operates in a capital-intensive industry and has financed its working capital, capital expenditure and other capital requirements primarily through (i) internally generated cash flows including proceeds from the pre-sales and sales of its properties and (ii) external financings, such as borrowings from commercial banks, asset management, trust financing, and other financing arrangements. The Group may also look for additional financing opportunities, such as the issuance of corporate bonds, asset-backed securities programs and other debt offerings when needed, to fund the Group property development operations. 2020 6 30 219.719.3% 262.1 53.9 26.4 104.1% (i) (ii) Cash Position As at 30 June 2021, the Group s cash and bank balances (including restricted cash and pledged deposits and cash and cash equivalents) were approximately RMB7,307.9 million (31 December 2020: approximately RMB5,333.5 million). Restricted cash, pledged deposits and most of cash and cash equivalents are denominated in RMB, and part of cash and cash equivalents are denominated in the U.S. dollar and Hong Kong dollar. 2021 6 30 7,307.92020 12 315,333.5 Interest-bearing bank and other borrowings As at 30 June 2021, the Group s interest-bearing bank and other borrowings amounted to approximately RMB11,078.6 million (31 December 2020: approximately RMB8,745.4 million). The Group s total secured borrowings are secured by the pledges of one or more of the following categories: properties under development, completed properties held for sale, investment properties, property, plant and equipment, interests in subsidiaries of the Group, pledged deposits and/or guarantees provided by subsidiaries of the Group as collateral or security. 2021 6 30 11,078.62020 12 31 8,745.4 32 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis Senior notes On 22 January 2021, the Group issued the 2022 Notes at a coupon rate of 12.75% due within 2022 with an aggregate principal amount of US$185,000,000. The Group raised net proceeds of US$181,612,000 (after deduction of underwriting commissions and other expenses). At any time prior to 21 January 2022, the Group may redeem the 2022 Notes at a predetermined redemption price. The details of the redemption price are disclosed in the relevant offering memorandum of the Group dated 22 January 2021. The 2022 Notes are guaranteed by certain of the Group s existing subsidiaries. 2021 1 22 12.75%185,000,000 2022 2022 181,612,000 2022 1 21 2022 2021 1 22 2022 Total Indebtedness As at 30 June 2021, the Group s total outstanding borrowings (including interest-bearing bank and other borrowings and senior notes) amounted to approximately RMB12,315.7 million (31 December 2020: approximately RMB8,745.4 million). 2021 6 30 12,315.72020 12 31 8,745.4 The following table sets forth the Group s total borrowings as at the dates indicated: 30 June 2021 2021 6 30 RMB 000 (Unaudited) 31 December 2020 2020 12 31 RMB 000 (Audited) Current Other loans secured 1,587,512 1,568,525 Other loans unsecured 44,410 43,400 Current portion of long-term bank loans secured 405,145 202,000 Current portion of long-term other loans secured 192,800 515,695 Senior notes 1,237,164 - Total current 3,467,031 2,329,620 Non-current Bank loans secured 4,874,604 2,386,000 Other loans secured 3,974,097 4,029,748 Total non-current 8,848,701 6,415,748 Total 12,315,732 8,745,368 2021 33

Management Discussion and Analysis The following table sets forth the maturity profiles of the Group s total borrowings as at the dates indicated: 30 June 2021 2021 6 30 RMB 000 (Unaudited) 31 December 2020 2020 12 31 RMB 000 (Audited) Bank loans repayable: Within one year 405,145 202,000 In the second year 2,173,255 295,000 In the third to the fifth year, inclusive 2,082,350 1,420,000 Beyond five years 618,999 671,000 5,279,749 2,588,000 Other loans repayable: Within one year 1,824,722 2,127,620 In the second year 2,767,885 2,313,511 In the third to the fifth year, inclusive 1,206,212 1,716,237 5,798,819 6,157,368 Senior notes: Within one year 1,237,164 Total 12,315,732 8,745,368 Pledge of Assets As at 30 June 2021, the Group s borrowings were secured by the Group s assets of RMB15,368.9 million (2020: RMB9,508.0 million), including (i) property, plant and equipment; (ii) investment properties; (iii) properties under development; (iv) completed properties held for sale; and (v) pledged deposits. Net Gearing Ratio The net gearing ratio of the Group increased from 54.3% as at 31 December 2020 to 66.7% as at 30 June 2021. 2021 6 30 15,368.92020 9,508.0 (i) (ii) (iii)(iv) (v) 2020 12 31 54.3% 2021 6 3066.7% 34 SUNKWAN PROPERTIES GROUP LIMITED INTERIM REPORT 2021

Management Discussion and Analysis Financial Risk The Group s businesses exposed it to various financial risks, including interest rate risk, foreign exchange risk, credit risk and liquidity risk. In order to minimise such risk exposures of the Group, the Group do not use any derivatives and other instruments for hedging. The Group does not hold or issue financial derivatives for trading purpose. Interest rate risk The Group s exposure to changes in market interest rates is primarily related to its interest-bearing bank and other borrowings. The Group does not use derivative financial instruments to hedge interest rate risk and manages its interest cost by using variable rate bank borrowings and other borrowings. Foreign currency risk The Group operates its business primarily in China and the majority of its revenues and expenses are denominated in RMB, while the net proceeds from the listing are paid in Hong Kong dollar. As at 30 June 2021, RMB9.9 million of the Group s cash and bank balances were denominated in Hong Kong dollar and the U.S. dollar, and both of them were subject to exchange rate fluctuation. The Group has no foreign currency hedging policy. However, the Group will closely monitor its exchange rate risk in an effort to maintain the Group s cash value. 2021 6 30 9.9 2021 35