ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ANNUAL REPORT 2016
2017-3
March 2017
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section I Important Statements, Contents and Definitions
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”), as
well as the directors, supervisors and executive officers of ShenZhen Properties & Resources
Development (Group) Ltd. (the “Company”) hereby guarantee the factuality, accuracy and
completeness of the contents of this Report, and shall be jointly and severally liable for any
false representation, misleading statements or material omissions in this Report.
Chen Yugang, head of the Company, Wang Hangjun, accounting head for this Report, and
Shen Xueying, head of the accounting department (head of accounting), hereby guarantee
that the Financial Report carried in this Report is factual, accurate and complete.
All directors attended the board meeting for the review of this Report.
The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on
Information Disclosure by Industry—for Listed Companies Engaging in Real Estate, for
which it is required to include in this Report the changes in the country’s real estate policy
and the related financial policy, as well as the supply and demand changes in the real estate
sector.
The Board has considered and approved the following proposal for profit distribution: Based
on the total shares of 595,979,092, a cash dividend of RMB1.80 (tax inclusive) per 10 shares
will be distributed to all shareholders of the Company. No bonus shares will be granted, nor
will any capital reserve be converted into share capital.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Table of Contents
Section I Important Statements, Contents and Definitions............................................................2
Section II Corporate Profile and Financial Results ........................................................................5
Section III Business Profile .............................................................................................................10
Section IV Performance Discussion and Analysis.........................................................................15
Section V Significant Events ...........................................................................................................32
Section VI Share Changes and Shareholders’ Profile...................................................................41
Section VII Preference Shares ........................................................................................................51
Section VIII Directors, Supervisors, Executive Officers and Staff..............................................52
Section IX Corporate Governance .................................................................................................61
Section X Corporate Bonds.............................................................................................................68
Section XI Financial Report............................................................................................................69
Section XII Documents Available for Reference .........................................................................221
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Definitions
Term Definition
Company, the Company ShenZhen Properties & Resources Development (Group) Ltd.
SIHC Shenzhen Investment Holdings Co., Ltd.
SCIHC Shenzhen Construction Investment Holdings Corporation
SIM Shenzhen Investment Management Co., Ltd.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section II Corporate Profile and Financial Results
I Corporate information
Stock name SZPRD A, SZPRD B Stock code 000011, 200011
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. 深物业集团
Company name in English (if
ShenZhen Properties & Resources Development (Group) Ltd.
any)
Abbr. (if any) SZPRD
Legal representative Chen Yugang
39/F and 42/F, International Trade Center, Renmin South Road, Shenzhen, Guangdong Province,
Registered address
P.R.China
Zip code 518014
39/F and 42/F, International Trade Center, Renmin South Road, Shenzhen, Guangdong Province,
Office address
P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email 000011touzizhe@szwuye.com.cn
II Contact information
Board Secretary Securities Representative
Name Fan Weiping
Qian Zhong, Ding Minghua
42/F, International Trade Center, Renmin 42/F, International Trade Center, Renmin
Address South Road, Shenzhen, Guangdong South Road, Shenzhen, Guangdong
Province, P.R.China Province, P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610 82212043 0755-82210610 82212043
E-mail 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
III Information disclosure and place where this Report is kept
Newspapers designated by the Company for A-share: Securities Times
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
information disclosure B-share: Ta Kung Pao (HK)
Website designated by the China Securities
Regulatory Commission (CSRC) for the publication www.cninfo.com.cn
of this Report
Board Office, 42/F, International Trade Center, Renmin South Road,
Place where this Report is kept
Shenzhen, Guangdong Province, P.R.China
IV Company registration and alteration
Credibility code No changes
Changes in main business activities of the
No changes
Company after going public (if any)
Changes of controlling shareholder (if any) No changes
V Other information
The CPAs firm hired by the Company
Name Union Power CPAs Co., Ltd. (LLP)
2~9/F, Union Power Building, 169 Donghu Road, Wuchang District, Wuhan, Hubei Province,
Office address
P.R.China
Accountants writing signatures Fan Guiming, Tang Jiajun
Sponsor engaged by the Company to continuously perform its supervisory function during this Reporting Period
□ Applicable √ Not applicable
Financial advisor engaged by the Company to continuously perform its supervisory function during this Reporting
Period
□ Applicable √ Not applicable
VI Accounting and financial results
Indicate by tick mark whether the Company performed any retroactive adjustments to or restatement of its
accounting data due to changes of accounting policies or correction of accounting errors
□ Yes √ No
2016 2015 +/-% 2014
Operating revenues (RMB) 2,059,204,077.18 1,077,418,500.93 91.12% 1,268,451,451.86
Net profit attributable to
shareholders of the Company 354,857,241.74 156,819,966.71 126.28% 417,498,679.91
(RMB)
Net profit attributable to
shareholders of the Company
357,519,344.14 18,480,611.70 1,834.56% 253,778,668.88
before exceptional profit and loss
(RMB)
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Net cash flows from operating
2,252,041,183.42 309,767,629.66 627.01% -14,627,057.08
activities (RMB)
Basic earnings per share
0.5954 0.2631 126.30% 0.7005
(RMB/share)
Diluted earnings per share
0.5954 0.2631 126.30% 0.7005
(RMB/share)
Weighted average return on equity
15.79% 7.59% 8.20% 21.82%
(%)
December 31, 2016 December 31, 2015 +/-% December 31, 2014
Total assets (RMB) 6,654,356,144.10 4,379,763,486.10 51.93% 3,883,288,145.46
Net assets attributable to
shareholders of the Company 2,410,434,735.75 2,099,906,766.61 14.79% 2,074,242,662.07
(RMB)
VII Differences in accounting data under domestic and foreign accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under Chinese
and international accounting standards
√ Applicable □ Not applicable
Unit: RMB
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
2016 2015 Closing amount Opening amount
According to Chinese
354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
accounting standards
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under Chinese
and foreign accounting standards
√ Applicable □ Not applicable
Unit: RMB
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
2016 2015 Closing amount Opening amount
According to Chinese
354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
accounting standards
Items and amounts adjusted according to overseas accounting standards
According to overseas
354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
accounting standards
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3. Reasons for the differences in accounting data under domestic and foreign accounting standards
√ Applicable □ Not applicable
No differences.
VIII Financial results by quarter
Unit: RMB
1Q 2Q 3Q 4Q
Operating revenues 196,079,291.87 175,978,188.09 157,661,237.17 1,529,485,360.05
Net profit attributable to
577,026.01 -5,825,730.64 -1,953,780.96 362,059,727.33
shareholders of the Company
Net profit attributable to
shareholders of the Company 193,418.02 -6,058,699.93 -2,164,014.76 365,548,640.81
before exceptional profit and loss
Net cash flows from operating
877,544,687.88 631,711,806.91 591,805,045.13 150,979,643.50
activities
Indicate by tick mark whether there are any material differences between the financial indicators above or their
summations and those which have been disclosed in quarterly or semi-annual reports
□ Yes √ No
IX Exceptional profit/loss
√ Applicable □ Not applicable
Unit: RMB
Item 2016 2015 2014 Note
Profit/loss on disposal of non-current assets
(including offset asset impairment -182,886.11 -175,931.40 219,223,848.63
provisions)
Government grants charged to the profit/loss
for this Reporting Period (except for the
government grants closely related to the
153,795.84 4,500.00
business of the Company and given at a
fixed quota or amount in accordance with
the State’s uniform standards)
See XIV 2 (1) in
Profit/loss on contingencies irrelevant to the
-4,366,315.82 168,991,971.80 “Section XI Financial
Company’s normal business activities
Report” for details
Profit/loss on fair value changes of
transactional financial assets and liabilities 5,709,098.20
& investment income from disposal of
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
transactional financial assets and liabilities
as well as financial assets available for sale,
except for effective hedges related to routine
operations of the Company
Impairment provision reversal for accounts
receivable on which the impairment test is 8,374,421.28 429,994.49
carried out separately
Non-operating income and expense other
1,010,733.64 164,576.21 -22,799,362.40
than the above
Other profit/loss that meet the definition of
5,895,627.11
exceptional profit/loss
Less: Corporate income tax -876,365.89 44,878,576.92 39,034,596.80
Total -2,662,102.40 138,339,355.01 163,720,011.03 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the
said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in this Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section III Business Profile
I Main business scope for this Reporting Period
Is the Company subject to any disclosure requirements for special industries?
Yes. For the Company engages in real estate, it is subject to the Guideline No. 3 of the Shenzhen Stock Exchange
on Information Disclosure by Industry—for Listed Companies Engaging in Real Estate.
(I) Main business overview
The Company has 12 functioning subsidiaries in total, including 4 real estate subsidiaries (Shenzhen Huangcheng
Real Estate Co., Ltd., Dongguan ITC Changsheng Real Estate Development Co., Ltd., SZPRD Xuzhou Dapeng
Real Estate Development Co., Ltd. and SZPRD Yangzhou Real Estate Development Co., Ltd.), 2 property
management subsidiaries (Shenzhen International Trade Center Property Management Co., Ltd. and Shenzhen
Huangcheng Property Management Co., Ltd.), 2 taxi service subsidiaries (Shenzhen International Trade Center
Car Industry Co., Ltd. and Shenzhen Shenxin Taxi Co., Ltd.), 2 joint ventures (SZPRD Jifa Warehouse Co., Ltd.
and Shenzhen Tian’an International Building Property Management Co., Ltd., with the Company holding a 50%
stake in both), 1 catering subsidiary and 1 supervision subsidiary.
The main business of the Company is as follows:
1. Real estate
Real estate is the primary business of the Company, operated by 4 of its subsidiaries. The following 5 real estate
development projects are currently ongoing:
(1) Xuzhou Banshanyujing: Won against competition on 10 Feb. 2010, floor space 96,900 ㎡, plot ratio 0.8, total
land price RMB192 million, open for sale in December 2016.
(2) Dongguan Songhulangyuan: Won on 15 Jul. 2010, floor space 66,900 ㎡, plot ratio 2.2, total land price
RMB214 million, open for sale at the end of July 2015.
(3) Yangzhou Hupanyujing: Won on 28 Jan. 2011, floor space 66,600 ㎡, plot ratio 1.4, total land price RMB610
million, Phase II currently open for sale.
(4) Shenzhen Qianhai project: Obtained in Jul. 2011 in an asset swap promised in the share reform, floor space
19,900 ㎡, plot ratio 3.2, total land price RMB270 million, open for sale in November 2015.
(5) Shenzhen Golden Collar Holiday: Located at Huanggang Port, historical land, floor space 12,600 ㎡, plot
ratio 10.5, total construction area 130,000 ㎡.
The 5 ongoing projects above combined cover a floor space of 231,300 ㎡ and a total construction area of
716,100 ㎡, with the plot-ratio-counted and available-for sale area reaching 474,700 ㎡.
2. Property management
The Company currently has 2 property management subsidiaries, namely Shenzhen International Trade Center
Property Management Co., Ltd. and Shenzhen Huangcheng Property Management Co., Ltd.
3. Taxi service
The Company currently has 2 taxi service subsidiaries, namely Shenzhen International Trade Center Car Industry
Co., Ltd. and Shenzhen Shenxin Taxi Co., Ltd., holding a total of 530 red taxi licenses.
4. Property rental
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
The Company has now a total area of 86,200 ㎡ available for rental, with the letting rate up to 96%.
5. Warehousing service
The warehousing service is mainly provided by SZPRD Jifa Warehouse Co., Ltd., a joint venture where the
Company holds a 50% stake, with the total area of the warehouses reaching 35,000 ㎡.
6. Catering service
Operated by Shenzhen International Trade Center Catering Co., Ltd., with a total business area of 1,892 ㎡.
(II) Stage of development and periodicity of the industry the Company engages in and its position in the
industry in this Reporting Period
1. Real estate industry
In 2016, the real estate industry went through a process from relaxation to continuous tightening in hot spot cities:
the Two Sessions proposed de-inventory through different policies tailored to different cities, but with the rapid
increase in house and land prices in hot spot cities, the policy division was becoming more marked. On one hand,
regulatory policies in hot spot cities were constantly tightening, with stricter restrictions on purchase and loans
and tougher regulatory measures, to contain investment and speculation demands and prevent market risks; on the
other hand, the third and fourth tier cities still stuck to the strategy of de-inventory, improving the market
environment from both supply and demand. Meanwhile, the Central Government strengthened the long-acting
mechanism construction for the real estate industry, and regional integration and new urbanization continued to
move forward, actively creating a good environment for the long-term development of the industry.
It is fair to say that the policy of de-inventory in real estate has brought positive effects over the past year. As the
market trade rebounds, the inventory pressure in the third and fourth tier cities has been eased. However, it is
notable that the sensibility and complexity of the real estate market in hot spot cities cause it to go far beyond the
anticipated ranges, and unreasonable increase in house and land prices will further increase the market and
financial risks. Consequently, it is pointed out at the Central Economic Work Conference that management of
financial risks should be placed at a more important position, and the residential positioning of houses should be
made clearer. It can be anticipated that under the general background of real estate market division, local
regulations will continue the characteristics of different policies tailored to different cities, which will focus more
on containing investment and speculation demands while supporting residents in purchasing houses for their own
living to prevent risks of bubble and big fluctuations in the market in hot spot cities. The power of short-term
policies will focus on the “stabilization” of market environment through various measures, while medium- and
long-term policies will encourage the development of leasing market and reforms in finance and taxation, laying a
more steady foundation for the establishment of the long-acting mechanism for the real estate industry.
In summary, the first tier and hot spot second tier cities are faced with the pressure from policy regulations, while
the third and fourth tier cities still stick to the strategy of de-inventory, and market policy division is growing
more marked. Concentration in the real estate industry is speeding up with a significant increase in corporate
merger and acquisition and enhanced Matthew effect, and as a result, small and medium sized enterprises are
facing bigger challenges.
In 2016, the investment on property development reached 10.2581 trillion yuan nationwide, a nominal increase of
6.9% compared to that in the previous year; the investment on residential housing was 6.8704 trillion yuan, an
increase of 6.4% and a proportion of 67.0% of the investment on property development. The area of commercial
housing sold reached 1,573,490,000 square meters, an increase of 22.5% compared to that in the previous year.
The sales of commercial housing was 11.7627 trillion yuan, an increase of 34.8%, of which the sales of residential
housing increased by 36.1%.
2. Property management industry
In 2016, the Ministry of Housing and Urban-Rural Development of the People’s Republic of China published
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Guidelines for the 13th Five-Year Plan of Housing and Urban-Rural Development, proposing to further expand
property management coverage, improve property services, and promote regional coordination for property
management and urban-rural overall development by making use of the strategy of new urbanization; to improve
the market mechanism for property services, price mechanism and taxation policy, optimize property service
standards and strengthen the construction of integrity system; to establish the guaranteeing mechanism for
property services, intensify the construction of owner conference system, develop a diverse conflict-resolution
mechanism, and build a comprehensive management system for residential communities; to improve the fund
system for residence-specific maintenance, simplify the utilization process, increase the utilization efficiency and
raise the value added returns; to transform the development mode of property services, make innovations in
commercial mode, increase the intelligent and networked level of property services, constructing a modern
property service system that takes care of both life and productivity.
According to the Research Report on the Top 100 Companies in China’s Property Services 2016 from China
Property Management Institute, the top 100 companies in the industry managed an area of 4.959 billion square
meters in 2016, accounting for 28.42% of the total property management area nationwide, indicating a further
growth on industrial concentration; those companies achieved a total business revenue of 113.561 billion yuan, a
year-on-year increase of 27.24%.
3. Small car rental business
Since 2015, the traditional taxi services, challenged by online car hire such as Didi Dache, Uber, etc., have been
experiencing great difficulties, leading to the decrease in taxi drivers’ income, sharp increase of conflicts and
numerous plans for strikes, which makes it increasingly tough to tackle the situation. In 2016, the taxi service
industry in Shenzhen entered a period of “cold winter” and the uncontrolled joining of “online car hire” brought
the most direct and serious effects ever since, which, on one hand, caused the big loss of passengers for taxis, and
on the other hand, poached a large number of taxi drivers, severely affecting the stability of the industry. The
phenomenon has gradually improved since the adoption of driver subsidy policy.
4. Industrial position
On 9 July 2016, the Company was granted “Shenzhen Top 10 Real Estate Brands” and “Shenzhen Top 50 Real
Estate Development Enterprises” for the year 2016 at the Annual Conference of Real Estate in Shenzhen cum
Release Conference of Industrial Comprehensive Evaluation.
On 3 August 2016, the company was granted once again “Guangdong Top 500 Enterprises” at the “2016 Top 500
Enterprises of Guangdong Release Conference” hosted by Guangdong Provincial Enterprise Confederation and
Guangdong Provincial Association of Entrepreneurs.
On 21 June 2016, the 2016 Release Conference of Research Report on China Top 100 Property Management
Companies was held in Beijing. International Trade Property Management Company, the Company’s subsidiary,
stood out from 422 excellent property management enterprises nationwide by virtue of its industrial leading
comprehensive competence and service standard and won “China Top 100 Property Management Companies”,
ranking the 38th.
II Significant changes in main assets
1. Significant changes in main assets
Main assets Reason for any significant change
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Up 6.45% from opening amount, mainly because of gains on joint ventures recognized at
Equity assets
equity method
Fixed assets Down 13.96% from opening amount, mainly due to depreciation in current period
Intangible assets Down 7.72% from opening amount, mainly because of amortization in current period
Up 203.44% from opening amount, mainly because of increase in house payments
Monetary funds
received
Accounts paid in advance Up 324.17% from opening amount, mainly because of increase in prepayment of taxes
Up 4.84% from opening amount, mainly because of increase in project input in current
Inventories
period
Down 93.70% from opening amount, mainly because of actual receiving of assets on
Other current assets 14/F and 15/F of Longyuan Chuangzhan Building, which were rented out and included
into investment property
Up 80.31% from opening amount, mainly because of the shift of calculation from other
Investment property
current assets
Up 56.45% from opening amount, mainly because of deferred income tax assets on
Deferred income tax assets anticipated profit growth on pre-sale revenue of real estate subsidiaries, as well as the
increase of accrued land VAT
Up 119.25% from opening amount, mainly because of increase of project funds meeting
Accounts payable
the terms of settlement
Accounts received in advance Up 242.03% from opening amount, mainly because of increase in house pre-sale revenue
Up 50.52% from opening amount, mainly due to increase of corporate income tax and
Taxes payable
land VTA caused by more projects for settlement in current period
2. Main assets overseas
□ Applicable √ Not applicable
III Core competitiveness analysis
Is the Company subject to any disclosure requirements for special industries?
Yes. For the Company engages in real estate, it is subject to the Guideline No. 3 of the Shenzhen Stock Exchange
on Information Disclosure by Industry—for Listed Companies Engaging in Real Estate.
In recent years, the Company has maintained steady operation in its main property business, with continuous
records made in asset and income scale, which is mainly attributed to the Company’s unique core competitiveness
advantages:
First, the Company has a stable operation team, which persists in the corporate development strategy,
continuously making the 12th Five-Year Strategic Plan and the 13th Five-Year Strategic Plan and pioneering with
the strategic plans as the guideline and road map, thus ensuring the continuity of the Company’s principal policy.
Second, the Company is currently adopting a mode of two levels, Group Headquarters - City Companies for
controlling its property development projects. At the headquarters level, the group mainly manages issues such as
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
land investment, planned operation, key marketing nodes, above-norm plan and design and cost control, while
companies in the cities are engaged in project management, on-site marketing, under-norm on-site design and cost
control. Thus, the project companies are given sufficient independence. The group focuses on systematic
management, currently having established a standardized internal operation system such as Real Estate Handbook
for the comprehensive management policy for real estate, and Target Cost - Compliance Planning and
Management System for cost specific management. The Company’s property control mode is being improved and
matured.
Third, the Company’s development areas are mainly in Shenzhen and its neighboring cities, thanks to the price
advantage of land obtainment costs and the rapid development of Shenzhen’s real estate market. The Company’s
regional projects in Shenzhen will bring itself with good economic profits.
Fourth, the Company has an advantage in brand and culture condensation. Over more than 30 years of
development and accumulation, the Company is highly recognized in the market by virtue of its brand value of
“Shenzhen Properties & Resources” that carries the spirit of international trade in the reform and opening up and
comprehensive competence. The Company has won multiple honor titles such as “Best 500 of China Real Estate
Developers” and “Guangdong Top 500 Enterprises”.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section IV Performance Discussion and Analysis
I Overview
(I) Review of industry development in this Reporting Period
1. Analysis on market environment
In 2016, the macro-economy was stable, the supply-side structural reform produced partial results, the positive
factors for economic growth increased, resulting in a new pattern of “dual improvement”. The formation process
of new structure, new economy, and new energy accelerated, the adjustment in traditional industry deepened, and
the supporting role of innovation to development strengthened. The national GDP in the past year reached RMB
74.41 trillion, representing a year-on-year increase of 6.7% based on calculation at comparable prices. However,
due to the mutual contradiction between currency policies of the USA’s raise of interest rate, and Europe and
Japan’s continuous quantitative easing, the strong dollar rose sharply, causing more anticipation for foreign
exchange outflow and RMB devaluation.
2. Analysis on industry structure and trend
For details, please refer to “Section III Business Profile”.
The Company should follow the disclosure requirements in the Index of Disclosing Industry Information (NO.3)
Issued by Shenzhen Stock Exchange – Listed Companies Which Engage in Real Estate Business.
(II) Overall review of the Company in 2016
Y2016 is the outset of the Company’s 13th Five Year Plan. In this Reporting Period, while facing the complicated
macro and micro environment and being led by the management team of the Company, all cadres and staffs of the
Group and the Company made concerted efforts, focused on accomplishing assignments for the full year, firmly
grasped the initiative for development, achieved remarkable performance for all businesses, reached to a
brand-new height in aspects such as business performance, management system, as well as the cohesive force in
the enterprise, realized a good start for the 13th Five Year Plan, and laid a firm foundation for the Company’s
better and larger development.
1. The operating revenue broke through RMB 2 billion, realizing a good beginning for the 13th Five Year
Plan
In 2016, the Company achieved operating revenue of RMB 2,059,200,000, bringing about a net profit of RMB
354,860,000 (attributable to owners of the Company). As at the end of 2016, the total assets was RMB 6.654
billion, the equity attributable to owners of the Company amounted to RMB 2.41 billion, the weighted average
ROE was 15.79%, the earning per share was RMB 0.595, and the net assets per share was RMB 4.04. Both the
operating revenue and assets scale marked record high, and realized a good beginning for the 13th Five Year Plan,
laying a firm foundation for the Company’s further leaping development.
2. All projects in construction were sold out well with sparkling highlights
In 2016, the Company paid close attention to market trend, deeply researched and judged on regulatory policies,
captured market opportunities in time, launched Yangzhou Project Phase II, Xuzhou Project Phase I, and so on in
due time in respect of sales, and achieved smooth sales of real estate projects. In 2016, the two projects in
Shenzhen and Dongguan generated sales revenue of approximately RMB1 billion, Yangzhou Project Phase I and
II altogether generated around RMB360 million, and Xuzhou Project Phase I saw a flying start by generating
about RMB141 million. The accumulative sales revenue generated by the two projects in Shenzhen and Dongguan
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
reached about RMB3.3 billion, setting a record high for the Company.
3. The project management level was increasingly improved, and the engineering progress was pushed
forward in order
In 2016, as for the Company’s 5 projects in construction, all engineering construction assignments were
successfully accomplished, and safety production with zero accident in the whole year was realized. As for
Qianhai Project, house owners were allowed to move in 9 months in advance, and all progress targets for project
development were successfully accomplished. As for Golden Collar’s Holiday Flat, the construction of podium
building was accomplished 43 days earlier. As for Dongguan Project, the completion and verification was
accomplished on 30 Nov 2016, and all engineering work was developed sustainably and in order. As for
Yangzhou Project Phase II, the check and acceptance of the individual building was finished, and all supporting
engineering work was carried forward as scheduled. As for Xuzhou Project, the completion, check, acceptance,
and recording processes were accomplished, and was smoothly opened for sale.
4. The property management business was expanded and enlarged, and other supplementary businesses
were in firm operation
In 2016, Shenzhen International Trade Center Property Management Co., Ltd. achieved operating revenue of RMB
348 million, showing an increase as compared with the budget target. Huangcheng Property Management Co., Ltd.
achieved operating revenue of RMB 49.8 million, basically reaching the budget target. The property area of the
two property management companies totaled to over 11 million square meters, covering regions including
Shenzhen, Hangzhou, Chongqing, Inner Mongolia, and Shandong. Supplementary businesses such as cars,
supervision, and leasing were in firm operation and reached the annual targets as planned.
II Analysis of main business
1. Overview
See “I Overview” in “Performance Discussion and Analysis”.
2. Revenues and costs
(1) Breakdown of operating revenues
Unit: RMB
2016 2015
As a percentage of As a percentage of
+/-%
Amount operating revenues Amount operating revenues
(%) (%)
Operating revenues 2,059,204,077.18 100% 1,077,418,500.93 100% 91.12%
By business segment
Real estate
1,512,673,490.89 73.46% 515,974,918.00 47.89% 193.17%
development
House rental 75,269,443.10 3.66% 73,908,002.27 6.86% 1.84%
Property 322,241,780.02 15.65% 333,400,952.67 30.94% -3.35%
16
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
management
Transport service 56,896,623.70 2.76% 60,550,541.42 5.62% -6.03%
Catering service 31,177,527.67 1.51% 31,014,702.89 2.88% 0.52%
Other 60,945,211.80 2.96% 62,569,383.68 5.81% -2.60%
By product
Real estate
1,512,673,490.89 73.46% 515,974,918.00 47.89% 193.17%
development
House rental 75,269,443.10 3.66% 73,908,002.27 6.86% 1.84%
Property
322,241,780.02 15.65% 333,400,952.67 30.94% -3.35%
management
Transport service 56,896,623.70 2.76% 60,550,541.42 5.62% -6.03%
Catering service 31,177,527.67 1.51% 31,014,702.89 2.88% 0.52%
Other 60,945,211.80 2.96% 62,569,383.68 5.81% -2.60%
By geographical segment
Shenzhen 1,669,008,443.18 81.05% 719,268,398.39 67.00% 132.04%
Outside Shenzhen 390,195,634.00 18.95% 358,150,102.54 33.00% 8.95%
(2) Business segments, products or geographical segments contributing over 10% of the operating revenues
or profit
√ Applicable □ Not applicable
Is the Company subject to any disclosure requirements for special industries?
Yes, for the Company engages in real estate.
Unit: RMB
Operating Gross profit
Operating Gross profit Operating cost:
Operating cost revenue: YoY margin: YoY
revenue margin YoY +/-%
+/-% +/-%
By business segment
Real estate
1,512,673,490.89 459,994,703.42 69.59% 193.17% 96.57% 14.94%
development
Property
322,241,780.02 311,316,025.73 3.39% -3.35% -1.55% -1.76%
management
By product
By geographical segment
Main business data of the prior year restated according to the changed statistical caliber for this Reporting Period
□ Applicable √ Not applicable
17
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(3) Whether revenue from physical sales is higher than service revenue
√ Yes □ No
Business segment Item Unit 2016 2015 +/-%
Sales volume ㎡ 147,757.95 88,771.38 66.45%
Real estate
Output volume ㎡ 502,525.29 538,666.29 -6.71%
development
Inventory ㎡ 248,242.4 293,030.34 -15.28%
Reason for any over 30% YoY movements in the data above
√ Applicable □ Not applicable
The sales volume increased due to the new projects open for sale.
(4) Execution progress of major signed sales contracts in this Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of operating costs
By business segment and product
Unit: RMB
2016 2015
As a percentage As a percentage
Business segment Item +/-%
Amount of operating costs Amount of operating costs
(%) (%)
Real estate
459,994,703.42 52.72% 234,013,337.05 36.08% 96.57%
development
House rental 16,467,645.80 1.89% 14,849,363.82 2.29% 10.90%
Property
311,316,025.73 35.68% 316,217,676.81 48.76% -1.55%
management
Transport service 33,739,246.05 3.87% 29,112,504.33 4.49% 15.89%
Catering service 26,572,645.61 3.05% 25,527,473.13 3.94% 4.09%
Other 24,443,956.82 2.80% 28,852,538.96 4.45% -15.28%
Total 872,534,223.43 100.00% 648,572,894.10 100.00% 34.53%
Notes:
N/A
(6) Changes in the scope of the consolidated financial statements for this Reporting Period
□ Yes √ No
18
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(7) Major changes in the business, products or services in this Reporting Period
□ Applicable √ Not applicable
(8) Main customers and suppliers
Main customers
Total sales to top five customers (RMB) 74,294,534.31
Total sales to top five customers as a percentage of the
3.61%
total sales for this Reporting Period (%)
Total sales to related parties among top five customers as
a percentage of the total sales for this Reporting Period 0.00%
(%)
Information about top five customers
As a percentage of the total sales for this
No. Customer Sales amount (RMB)
Reporting Period (%)
1 Alibaba (China) Co., Ltd. 37,043,649.10 1.80%
2 Huawei Technologies Co., Ltd. 18,613,565.21 0.90%
3 Individual A 6,220,563.00 0.30%
4 Individual B 6,218,444.00 0.30%
5 Individual C 6,198,313.00 0.30%
Total -- 74,294,534.31 3.60%
Other information about the main customers
□ Applicable √ Not applicable
Main suppliers
Total purchases from top five suppliers (RMB) 12,404,848.06
Total purchases from top five suppliers as a percentage of
42.68%
the total purchases for this Reporting Period (%)
Total purchases from related parties among top five
suppliers as a percentage of the total purchases for this 11.65%
Reporting Period (%)
Information about top five suppliers
As a percentage of the total purchases for
No. Supplier Purchase amount (RMB)
this Reporting Period (%)
Shenzhen SZPRD Construction
1 3,474,600.00 11.65%
Supervision Co., Ltd.
Shenzhen Huanliang Environmental
2 3,292,560.00 11.05%
Engineering Co., Ltd.
19
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Shenzhen Junjue Auto Sales Service Co.,
3 2,958,000.00 9.92%
Ltd.
Jiangsu Zhuhui Municipal Construction
4 1,610,000.00 5.40%
Co., Ltd.
Shenzhen Yuanpeng Decoration Group
5 1,388,888.06 4.66%
Co., Ltd.
Total -- 12,724,048.06 42.68%
Other information about the main suppliers
√ Applicable □ Not applicable
The biggest supplier Shenzhen SZPRD Construction Supervision Co., Ltd. is a wholly-owned subsidiary of the
Company.
3. Expense
Unit: RMB
2016 2015 +/-% Reason for any significant change
Sales service and agency costs
Selling expenses 47,306,701.76 41,941,165.94 12.79%
increased as marketing was enhanced
Administrative expenses 99,528,601.79 102,968,126.79 -3.34% Cost control was tightened
Finance costs -22,407,438.75 -7,514,689.31 198.18% Increase in interest revenue
Corporate income tax 136,350,415.59 59,571,725.42 128.88% Increase in profits
4. R&D input
□ Applicable √ Not applicable
5. Cash flows
Unit: RMB
Item 2016 2015 +/-%
Subtotal of cash inflows from
3,770,054,410.63 1,711,116,833.24 120.33%
operating activities
Subtotal of cash outflows due to
1,518,013,227.21 1,401,349,203.58 8.33%
operating activities
Net cash flows from operating
2,252,041,183.42 309,767,629.66 627.01%
activities
Subtotal of cash inflows from
139,247.90 8,058,358.89 -98.27%
investing activities
Subtotal of cash outflows due to 4,654,746.40 38,285,548.55 -87.84%
20
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
investing activities
Net cash flows from investing
-4,515,498.50 -30,227,189.66 -85.06%
activities
Subtotal of cash inflows from
15,441,282.23 216,470,006.83 -92.87%
financing activities
Subtotal of cash outflows due to
342,355,581.91 374,393,615.57 -8.56%
financing activities
Net cash flows from financing
-326,914,299.68 -157,923,608.74 107.01%
activities
Net increase in cash and cash
1,924,015,241.08 124,374,439.09 1,446.95%
equivalents
Explanation of why the data above varied significantly
√ Applicable □ Not applicable
① The subtotal of the cash inflows from operating activities and the net cash flows from operating activities
increased from last year mainly because of the increase in the house payments received.
② The subtotals of the cash inflows from and the cash outflows due to investing activities, as well as the net cash
flows from investing activities, decreased from last year mainly because of the decreased funds paid for taxi
renewal in this Reporting Period and the retraction of investments last year.
③ The subtotal of cash inflows from financing activities decreased from last year mainly because of the
decreased in new borrowings.
④ The net cash flows from (net outflows due to) financing activities increased from last year mainly because the
Company secured less loans and repaid more loans.
⑤ The net increase in cash and cash equivalents increased from last year mainly because of the increase in the
house payments received.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
√ Applicable □ Not applicable
For this Reporting Period, the net cash flows from operating activities stood at RMB2,252,041,183.42,
representing a big difference with the net profits of RMB354,857,241.74, which was mainly because the pre-sale
revenue had not yet met the condition for settlement.
III Analysis of non-core business
√ Applicable □ Not applicable
Unit: RMB
As a percentage of
Amount Source/reason Recurring or not
total profit (%)
Investment income 2,225,713.71 0.45% Earnings on joint ventures Yes
Falling price provisions for
Asset impairment 98,635,337.28 20.08% No
SZPRD-Banshanyujing
21
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
project and Phase I & II of
SZPRD-Hupanyujing project
Non-operating
1,476,298.90 0.30% Penalty income No
revenue
Non-operating Losses on penalties, overdue
4,968,073.06 1.01% No
expense fines and provisions
IV Analysis of assets and liabilities
1. Significant changes in the asset composition
Unit: RMB
December 31, 2016 December 31, 2015
As a As a Change in
percentage of percentage of percentag Reason for any significant change
Amount Amount
total assets total assets e (%)
(%) (%)
2,869,755,216.
Monetary funds 43.13% 945,739,975.77 21.59% 21.54% Increase in project sales revenue
85
Accounts
31,564,219.86 0.47% 38,772,146.41 0.89% -0.42% Recovery of accounts receivable
receivable
Closing change in proportion due to
2,585,658,521. 2,466,342,278. increased total assets, closing amount
Inventories 38.86% 56.31% -17.45%
65 85 higher than opening amount due to
increase in project development input
The transfer of assets of Dragon
Investing real 427,800,613.0 Garden Development Building F14,
6.43% 237,260,788.82 5.42% 1.01%
estate 3 F15from other liquidity assets to
account
Closing change in proportion due to
Long-term equity increased total assets, closing amount
36,751,891.12 0.55% 34,526,177.41 0.79% -0.24%
investment higher than opening amount due to
increase in gains on joint ventures
Fixed assets 73,932,007.89 1.11% 85,929,516.37 1.96% -0.85% Depreciation
Short-term
8,000,000.00 0.18% -0.18% Due short-term borrowings repaid
borrowings
Long-term
144,840,006.83 3.31% -3.31% Due short-term borrowings repaid
borrowings
Other current The transfer of assets of Dragon
10,977,557.15 0.16% 174,382,120.00 3.98% -3.82%
assets Garden Development Building F14,
22
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
F15 to the account of investing
property
Intangible assets 85,487,580.95 1.28% 92,640,083.99 2.12% -0.84% Amortization
Income tax assets on anticipated profit
Deferred income 375,997,063.3 growth on pre-sale revenue of real
5.65% 240,335,370.51 5.49% 0.16%
tax assets 3 estate subsidiaries and accrued land
VAT increase
Increase in unsettled payment for
419,926,139.3
Accounts payable 6.31% 191,524,938.54 4.37% 1.94% projects that meet the settlement
9
requirements
Accounts
2,231,321,227.
received in 33.53% 652,369,778.20 14.90% 18.63% Increase in real estate pre-sale revenue
65
advance
Closing change in proportion due to
increased total assets, closing amount
Taxes and fares 1,254,999,384. higher than opening amount due to
18.86% 833,797,372.43 19.04% -0.18%
payable 73 increase in corporate income tax and
land VAT caused by increase in income
from settlement projects
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Profit/loss on
Cumulative fair Impairment
fair value Purchased in Sold in this
Opening value changes provided in this Closing
Item changes in this this Reporting Reporting
balance charged to Reporting balance
Reporting Period Period
equity Period
Period
Financial assets
3.
Available-for-sa
3,003,714.14 3,003,714.14
le financial
assets
Total of the
0.00 3,003,714.14 3,003,714.14
above
Financial
0.00 0.00
liabilities
Significant changes in the measurement attributes of the main assets in this Reporting Period
□ Yes √ No
23
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3. Restricted asset rights as of the end of this Reporting Period
As at the end of this Reporting Period, the restricted L/G deposits used by the Company amounted to
12,402,160.00 yuan, which were the cash deposits paid by the subsidiary of the Company-Dongguan International
Trade Center Changsheng Property Development Co., Ltd. by entrusting the commercial bank to issue the
Commercial Housing Quality Guarantee Letter. Because the subsidiary of the Company-Dongguan International
Trade Center Changsheng Property Development Co., Ltd. was the real estate development enterprise with
provisional qualification, when handling the application of the pre-sale permit of the commercial residential
housing, it should submit the quality guarantee letter of the commercial residential housing after the liquidation
situation such as the enterprise bankruptcy and dissolution. The guarantee letter was the irrepealably commercial
residential quality guarantee letter, of which the guarantee period of 1,468,870.00yuan was from 30 June 2015 to
31 December 2020 and the guarantee period of the remaining10,933,290.00 yuan was from 1 July 2015 to 31
December 2020.
V Investments made
1. Total investments made
□ Applicable √ Not applicable
2. Significant equity investments made in this Reporting Period
□ Applicable √ Not applicable
3. Significant non-equity investments ongoing in this Reporting Period
□ Applicable √ Not applicable
4. Financial investments
(1) Securities investments
√ Applicable □ Not applicable
Unit: RMB
Profit/lo
ss on Cumulat Source
Variety Purchas Profit/lo
Account fair ive fair Sold in
Code of Name of Initial ed in ss in of
of ing Opening value value this Closing Account
this this
securitie securitie investm measure book changes changes Reporti book investm
securitie Reporti Reporti
ment value in this charged ng value ing title
s s ent cost ng ng ent
s model Reporti to Period
Period Period
ng equity funds
Period
Domesti 400016, Gintian Fair Availabl Obtaine
2,941,4 3,003,7 3,003,7
c/overse 42001 A, value e-for-sal d in
21.28 14.14 14.14
as stock 6 Gintian method e Gintian’
24
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
B financia s debt
l asset restructu
ring
2,941,4 3,003,7 3,003,7
Total -- 0.00 0.00 0.00 0.00 0.00 -- --
21.28 14.14 14.14
Disclosure date of the
announcement about the
board’s consent for the
securities investment
Disclosure date of the
announcement about the
general meeting’s consent
for the securities
investment (if any)
(2) Investment in derivative financial instruments
□ Applicable √ Not applicable
No such cases in this Reporting Period
5. Use of funds raised
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VI Sale of major assets and equity interests
1. Sale of major assets
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Sale of major equity interests
□ Applicable √ Not applicable
VII Main controlled and joint stock companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Company Relationship Main Registered Total assets Net assets Operating Operating Net profit
25
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
name with the business capital revenues profit
Company scope
Shenzhen
Huangcheng 2,007,287,14 501,242,529. 49,590,318.5 -14,588,932. -11,247,576.
Subsidiary Real estate 30,000,000.0
Real Estate 5.39 27 7 67 51
0
Co., Ltd.
SZPRD Real
Estate 59,034,821.2 56,970,127.6
Subsidiary Real estate 30,950,000.0 1,155,797.24 2,307,034.18 1,722,250.14
Development 0 5
0
Co., Ltd.
Shenzhen
International Motor
149,771,924. 67,120,732.7 43,521,778.3
Trade Center Subsidiary transportatio 29,850,000.0 7,743,900.34 5,817,066.27
10 3 3
Car Industry n 0
Co., Ltd.
Shenzhen
International
Property
Trade Center 314,172,635. 104,487,810. 350,296,989. 23,786,278.1 17,002,789.1
Subsidiary management 20,000,000.0
Property 14 48 92 5 1
and leasing 0
Management
Co., Ltd.
SZPRD
Yangzhou
780,756,692. -2,095,548.7 167,491,992. -25,807,731. -25,727,131.
Real Estate Subsidiary Real estate 50,000,000.0
18 8 20 67 67
Development 0
Co., Ltd.
SZPRD
Xuzhou
Dapeng Real 575,474,213. -181,230,363 -88,185,105. -88,185,105.
Subsidiary Real estate 50,000,000.0
Estate 79 .28 64 64
0
Development
Co., Ltd.
Dongguan
ITC
Changsheng 1,500,377,57 -13,449,948. -2,940,245.0 -2,046,249.1
Subsidiary Real estate 20,000,000.0
Real Estate 7.25 98 1 9
0
Development
Co., Ltd.
Subsidiaries obtained or disposed in this Reporting Period
□ Applicable √ Not applicable
26
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Information about the main controlled and joint stock companies
VIII Structured bodies controlled by the Company
√ Applicable □ Not applicable
For details, see IX 1. Equity interests in subsidiaries in Section XI Financial Report herein.
IX Outlook for the future development of the Company
(I) Analysis of Development Environment
2017 is an important year for the implementation of the 13th Five-Year Plan and for deepening the reform of
supply lateral structure. The Central Economic Work Conference at the end of 2016 defined the main tone of
“Stable and Sound Development” for the real estate market in 2017, proposing to stick to the positioning of
“Housing for living, not for speculating”; establish a long-acting mechanism for the stable and sound development
of the real estate market; utilize methods of finance, land, fiscal taxation, investment and legislation in a combined
way; and accelerate the study and establishment of basic policies and long-term mechanism that are tailored to the
national development and adapt to market rules, thus containing real estate bubbles and preventing radical
fluctuations. The 13th Five-Year period is a decisive stage for the all-round construction of a well-off society, and
the year 2020 is the starting year for the first hundred-year goal of the “Two Hundred Years” defined by the
Communist Party. Since the Third Plenary Session of the 18th CPC Central Committee, overall deepening of
reforms have been accelerated, where supply structure is improved through supply lateral structure to adapt to the
demand structure and promote the comprehensive enhancement of supply efficiency; internal driving force is
released through reforms of state-owned enterprises, and future-oriented sustainable development of economy is
facilitated through changes in development mode and transformation upgrading.
The 13th Five-Year Plan guidelines of Shenzhen propose to establish a city with ten titles, including city of
innovation, city of the national economic center, city of intelligence, city of modernization and large size, city of
ecology and civilization, city of internationalization, etc.; increase the GDP from the current 1.75 trillion yuan to
2.6 trillion yuan; push the construction of Guangdong-Hong Kong-Macau Greater Bay Area and the regional
cooperation in the Pan Pearl River Delta; speed up the construction of Shenzhen-Dongguan-Huizhou and Heyuan,
and Shanwei “3+2” economic circles, fully playing Shenzhen’s radiation and leading role. Shenzhen SASAC has
defined 2017 as the “Year of Resource Integration” for deepening and mixing ownership reform, and promoting
resource integration and acquisition and reorganization to make a number of state-owned enterprisesoutstanding,
powerful and influential.
(II) Industrial Structure and Trend
Please refer to “Section III Summary of Company Business”
(III) Risks Facing the Company and Measures
(1) Market risks
In 2016, with the stabilization of the macro economy in slow growth and after the ragingly increased property
price in the first tier cities in 2015, the government took a series of regulatory measures to inhibit the property
price from increasing too fast and constantly stabilize market expectations. However, the second and third tier
27
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
cities were still faced with costly inventories and the de-inventory policy continued to be implemented;
concentration in the real estate industry sped up with a significant increase in corporate merger and acquisition
and enhanced Matthew effect, and as a result, small and medium sized enterprises faced bigger challenges.
The Company watched closely on the market trend, conducted an in-depth study and review of regulatory policies,
and grasped market opportunities, timely launching Yangzhou Project Phase II, Xuzhou Project Phase I, etc.
Through frequent additional launching of Dongguan Project, the Company made good achievements in the sales
of real estate projects. From the perspective of construction, the Company pushed the construction progress of
Front Sea Project and joined the partnership in December, ensuring the completion of the annual tasks. The
Company will continue to focus on project management, further intensifying and improving real estate project
operation and management capability, timely learning about the implementation of real estate project development
plans, and ensuring that the Company achieves the target for the developing real estate projects. Meanwhile, the
Company will adjust its marketing strategy based on the actual conditions of different markets to promote the
projects.
(2) Industry risks
For the real estate industry that has stepped into the silver age, market competitions have further intensified with
greater industry investment risks. First is the draconian regulatory policies after the raging increase of property
price in the first and second tier cities, especially in 2016. For such first tier cities as Shenzhen, they are faced
with the most and strictest regulatory measures after the radical price increase. The implementation of the
restricted purchase policy and the government’s all-round rectification of the industry have lead to fewer demands
and rapid cooling of transactions, making sales of projects more difficult. At the same time, due to the fierce
market competitions and soared increase of obtainment costs in the first tier cities, small and medium sized real
estate firms show obvious disadvantages in financial strength, management capability and project sources, namely,
it is difficult for them to obtain high quality lands in the first and second tier core cities. Second, the inventories in
the market in the third and fourth tier cities are still expensive. The market price of land remains at a high level,
where the phenomenon of “more costly flour than bread” still exists, leading to increasingly bigger investment
risks.
(3) Company’s Insufficient Land Reserves
The Company has generally commenced the development of the existing projects and urgently requires land
reserves. However, the real estate market heat in recent years has spread to the land market, resulting in fierce
competitions in residential lands in the first tier cities and core second tier cities, successive record highs in the
price and much higher costs and bigger risks for real estate enterprises to compete for lands; while the third and
fourth tier cities are still faced with de-inventory pressure, causing a relatively high investment risk. Currently
with the good sales of real estate projects and sufficient funds, the Company will allocate more resources to the
land investment by reinforcing the study of cooperative development modes such as acquisition in addition to its
focus on land bid invitation, auction and listing information, so as to timely supplement land reserves.
Having gained a profound understanding of the effects of industrial changes on business operation, the Company
will deal with related issues from the perspective of business development mode and internal managerial measures.
First, to expand the exploration of cooperative development modes, which can both increase the channels of
obtaining land and effectively spread risks. Second, to intensify the learning and introduction of the industrial
leading management philosophy and technology to improve business operation efficiency. Third, to develop
supporting businesses such as property management and house leasing, actively seeking expansion schemes and
28
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
increasing the profits from those businesses; property management companies continue to explore pilot areas for
decreasing loss and increasing profits from old houses, search for new income generation modes, learn from
industrial leading companies, promote corporate informationized construction to realize flat and transparent
management, actively undertake properties such as science park and constantly strengthen the momentum for
development.
(IV) Company Operation Plan for 2017
In 2017, the Company is going to continue its focus on the construction progress of the real estate projects, push
the implementation of the projects according to the plan, further strengthen and improve real estate project
operation and management capability, timely learning about the implementation of real estate project development
plans, and ensuring that the Company achieves the target for the developing real estate projects. Additionally,
based on the different conditions and development trends in different cities, the Company is going to make
marketing plans that are tailored to the market, continuously track and analyze market responses and changes,
rapidly adjust the sales strategy and promote the project sales. The Company will expand high quality project
resources through active engagement in diverse cooperative modes.
Meanwhile, the company will juggle the development of supporting businesses such as property management and
house leasing, the Company will actively seek expansion schemes and increase the profits from supporting
businesses, for example, property management companies constantly optimize and integrate internal management
resources, lower labor costs, improve work efficiency and continue to develop the pilot areas for reforms of
decreasing losses and increasing profits in old housing areas.
Key tasks in 2017:
1. To continue to grasp opportunities to promote sales, striving to outperform the annual target
In 2017, the Company will continue to aim at finishing the annual tasks, and starting from the sales strategy,
strengthen the construction of marketing and planning teams and capabilities, closely watch on the real estate
market changes and policy updates, make full use of new marketing channels to do precise positioning and
customer marketing, control contract performance risks, actively work on financial returns, and ensure to
complete the sales target, laying a good foundation for the business performance in 2017.
2. To strictly control quality and cost, ensuring the construction progress of developing projects as planned
The Company, in accordance with the refinement requirements in the Real Estate Handbook, will exert strict
control on the process and quality for the five projects under development, and based on the requirements of the
annual plan, work hard at the construction progress and quality of those projects. The site project department and
supervisory organizations need to strengthen the control on the construction process and establish a system of
unannounced inspections; to implement the system of monthly operation report, timely eliminate potential project
risks and ensure the construction process is as planned.
3. To aim at decreasing losses and increasing profits, which require supporting business companies to
actively seek development
Supporting business companies such as property management companies shall continue to actively participate in
market competitions and scale up themselves by making breakthroughs in internal management reform and
innovation; in addition, they shall focus on lowering human resource management costs, constantly adapt to
industrial and market changes and learn from the industrial leading companies by centering around the decrease in
29
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
losses and increase in profits; promote corporate informationized construction, reduce the span and level of
management and fully consider to seek alternative ways.
4. To accelerate land investigation, closely follow the planning of the municipal SASAC
In 2017, we still need to conduct a site investigation of key areas such as the Pearl River Delta and urban land
markets, actively consider the cooperative development opportunities with other municipal state-owned
enterprises, and work hard at the development and planning communication for historical sites; meanwhile, to
closely follow the planning of the municipal SASAC.
The Company has planned to invest an amount of 2,570,000,000 yuan for 2017, of which570,000,000 yuan will
be allocated to the development of projects under development and 2,000,000,000 yuan will be allocated to land
development projects.
The Company needs to guarantee sufficient funds for its existing businesses and for investment projects through
the effective combination of internal and external financing, namely, by integrating resources internally and
expanding financing channels externally.
X Visits paid to the Company for purposes of research, communication, interview, etc.
1. In this Reporting Period
√ Applicable □ Not applicable
Date Way of visit Type of visitor Main inquiry information
About the opening of the Front Sea
05/01/2016 By phone Individual
project.
10/01/2016 By phone Individual About the sales of the Front Sea project.
About abnormal changes of the
04/02/2016 By phone Individual
company’s stock.
About the date of the company’s annual
10/03/2016 By phone Individual
report.
About the distributed profits paid by the
12/04/2016 By phone Individual
company.
About the sales of projects in other
18/05/2016 By phone Individual
cities.
About the current progress of the
19/05/2016 By phone Individual
Xuzhou project.
07/06/2016 By phone Individual About the sales of the Dongguan project.
20/07/2016 By phone Individual About the sales of the Front Sea project.
17/08/2016 By phone Individual About the company’s stock performance.
About the progress of the Yangzhou
22/08/2016 By phone Individual
project phase II.
30
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
About the influence of Shenzhen’s real
07/09/2016 By phone Individual estate market volatility on the company’s
projects.
About the current construction progress
13/09/2016 By phone Individual
of the Jinling Holiday Apartment project.
27/09/2016 Other ways Individual About the progress of the Meisi case.
About the reforms of state-owned
11/10/2016 By phone Individual companies and the company’s stock
performance.
16/11/2016 By phone Individual About the company’s land reserve.
13/12/2016 By phone Individual About the company’s stock performance.
About the reforms of state-owned
22/12/2016 By phone Individual
companies.
About the opening date of the Jinling
28/12/2016 Other ways Individual
Holiday Apartment.
Times of visit 150
Number of visiting institutions 0
Number of visiting individuals 150
Number of other visiting entities 0
Significant undisclosed information disclosed,
No
revealed or leaked
31
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section V Significant Events
I Profit distribution and converting capital reserve into share capital for common
shareholders
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy, for common
shareholders in this Reporting Period
□ Applicable √ Not applicable
Plans/proposals for profit distribution and converting capital reserve into share capital for common shareholders
for the past three years (including this Reporting Period):
Year Plans/proposals for profit distribution and converting capital reserve into
share capital
2016 A cash dividend of RMB1.80 (tax inclusive) per 10 shares and no share
capital increase from capital reserve
2015 A cash dividend of RMB0.80 (tax inclusive) per 10 shares and no share
capital increase from capital reserve
2014 A cash dividend of RMB2.20 (tax inclusive) per 10 shares and no share
capital increase from capital reserve
Cash dividend distribution of the Company to common shareholders over the past three years (including this
Reporting Period)
Unit: RMB
Net profit Proportion in net
attributable to profit attributable to
common common
Cash dividends shareholders of the shareholders of the Ratio of cash
Cash dividends in
Year dividends in other
(tax included) Company in the Company in the other forms
forms
consolidated consolidated
statements for the statements for the
year year (%)
2016 107,276,236.56 354,857,241.74 30.23% 0.00 0.00%
2015 47,678,327.36 156,819,966.71 30.40% 0.00 0.00%
2014 131,115,400.24 417,498,679.91 31.40% 0.00 0.00%
Indicate by tick mark whether the Company made profit in this Reporting Period and the profit distributable to
common shareholders of the Company was positive, but it did not put forward a proposal for cash dividend
distribution to its common shareholders
□ Applicable √ Not applicable
32
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
II Proposal for profit distribution and converting capital reserve into share capital for this
Reporting Period
√ Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 1.80
Total shares as the basis for the profit distribution 595,979,092
proposal (share)
Total cash dividends (RMB) (tax included) 107,276,236.56
Distributable profit (RMB) 1,441,632,088.56
Percentage of cash dividends in the total profit to 100.00%
be distributed (%)
Cash dividend policy
If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
According to the Company’s Articles of Association as well as the actual situation of its development and operation, the proposal of
the Company for 2016 annual profit distribution is as follows: Based on the total 595,979,092 shares of the Company as at 31 Dec.
2016, a cash dividend of RMB1.80 (tax included) will be distributed to all its shareholders for every 10 shares they hold, with the
total cash dividends to be distributed amounting to RMB107,276,236.56. And the retained profits will be carried over for
distribution in the future. No capital reserves will be turned into share capital for 2016.
III Fulfillment of commitments
1. Commitments of the Company’s actual controller, shareholders, related parties and acquirer, as well as
the Company and other commitment makers, fulfilled in this Reporting Period or ongoing at the
period-end
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Where there had been an earnings forecast for an asset or project and this Reporting Period was still
within the forecast period, explain why the forecast has been reached for this Reporting Period.
□Applicable √ Not applicable
IV Occupation of the Company’s funds by the controlling shareholder or its related parties
for non-operating purposes
□ Applicable √ Not applicable
No such cases in this Reporting Period.
33
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
V Explanations given by the Board of Directors, the Supervisory Board and the independent
directors (if any) regarding the “auditor’s non-standard report” issued by the CPAs firm for
this Reporting Period
□ Applicable √ Not applicable
VI YoY changes in accounting policies, estimations and methods
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VII Retroactive restatement due to correction of material accounting errors in this Reporting
Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VIII YoY changes in the scope of the consolidated financial statements
□ Applicable √ Not applicable
No such cases in this Reporting Period.
IX Engagement and disengagement of CPAs firm
Current CPAs firm
Name of the domestic CPAs firm Union Power CPAs Co., Ltd. (LLP)
The Company’s payment for the domestic CPAs firm
52
(RMB’0,000)
Consecutive years of the audit service provided by
14
the domestic CPAs firm
Names of the certified public accountants from the
Tang Jiajun, Fan Guiming
domestic CPAs firm
Indicate by tick mark whether the CPAs firm was changed in this Reporting Period.
□ Yes √ No
CPAs firm, financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
In this Reporting Period, the Company engaged Union Power CPAs Co., Ltd. (LLP) for its internal control audit
and paid an internal control audit fee of RMB230,000 to it for the year.
34
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
X Possibility of listing suspension or termination after disclosure of this Report
□ Applicable √ Not applicable
XI Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XII Significant litigations and arbitrations
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XIII Punishments and rectifications
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XIV Credit conditions of the Company as well as its controlling shareholder and actual
controller
□ Applicable √ Not applicable
XV Implementation of any equity incentive plan, employee stock ownership plan or other
incentive measures for employees
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVI Significant related-party transactions
1. Related-party transactions relevant to routine operation
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Related-party transactions regarding purchase or sales of assets or equity interests
□ Applicable √ Not applicable
No such cases in this Reporting Period.
35
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3. Related-party transitions regarding joint investments
□ Applicable √ Not applicable
No such cases in this Reporting Period.
4. Credits and liabilities with related parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating
purposes.
√ Yes □ No
Receivable from related parties
Recovered
Capital Increase in Interest for
amount in
occupation Opening this this Closing
Relationshi this
Related for balance Reporting Reporting balance
p with the Reason Reporting Interest rate
party non-operati (RMB’0,00 Period Period (RMB’0,000
Company Period
ng purposes 0) (RMB’0,00 (RMB’0,00 )
(RMB’0,00
(yes/no) 0) 0)
0)
Anhui 30%
Business
Nanpeng equities
circulating No 805 890
Papermakin held by the
funds
g Co., Ltd. Company
Shenzhen
Wufang 26%
Business
Pottery & equities
circulating No 175 175
Porcelain held by the
funds
Industrial Company
Co., Ltd.
Controlled
by the
Shenzhen parent Intercourse
No 91 91
Guesthouse company of funds
the
Company
Influence on the
Were all within the risks control of the Company and not influenced the operating results and the
Company’s operating
financial conditions. The changes of Anhui Nanpeng Papermaking Co., Ltd. during this Reporting Period
results and financial
were due to the translation of the foreign currency exchange rate.
condition
Payable to related parties
Relationship Opening Increase in Repaid Interest for Closing
Related party Reason Interest rate
with the balance this amount in this balance
36
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Company (RMB’0,000) Reporting this Reporting (RMB’0,000)
Period Reporting Period
(RMB’0,000) Period (RMB’0,000)
(RMB’0,000)
Shenzhen Jifa
Intercourse
Warehouse Joint venture 2,630 2,630
funds
Co., Ltd.
Shenzhen
Tian’an
International
Intercourse
Building Joint venture 521 521
funds
Property
Management
Co., Ltd.
Influence on the Company’s
Were all within the risks control of the Company and not influenced the operating results and the
operating results and
financial conditions.
financial condition
5. Other significant related-party transactions
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVII Significant contracts and execution
1. Entrustment, contracting and leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in this Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in this Reporting Period.
(3) Leasing
□ Applicable √ Not applicable
37
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
No such cases in this Reporting Period.
2. Significant guarantees
□ Applicable √ Not applicable
No such cases in this Reporting Period.
3. Entrusted cash management
(1) Entrusted cash management
□ Applicable √ Not applicable
No such cases in this Reporting Period.
(2) Entrusted loans
□ Applicable √ Not applicable
No such cases in this Reporting Period.
4. Other significant contracts
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVIII Social responsibilities
1. Targeted measures taken to help people lift themselves out of poverty
□ Applicable √ Not applicable
2. Other social responsibilities taken
A. Actively help and care those with difficulties
In 2016, the Group visited six employees with difficulties and serious diseases; the head office visited seven
employees who had just delivered babies or were hospitalized, and sent condolence to three employees. SX
Company under the Group distributed 286,500 yuan from its Driver Subsidies to help the disabled drivers due to
traffic accidents; Shenzhen International Trade Center Car Industry Co., Ltd. under the Group distributed 115,900
yuan from its Driver Subsidies and Labor Union to help the drivers with serious diseases and families of drivers
lost due to diseases, and gave the consolation money of 10,000 yuan to the injured taxi driver attacked by
gangsters. Shenzhen International Trade Center Car Industry Co., Ltd. and SX Company paid 335 person-time
visits to the families of taxi drivers. During holidays, the Group visited 7 staff with difficulties, 6 suffering from
critical diseases including cancer and uremia. Besides, Shenzhen International Trade Center Car Industry Co., Ltd.
and SX Company also visited 910 and 270 taxi drivers respectively. SX Company even took special care for 4 taxi
drivers with difficulties.
38
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
B. Vigorously be engaged in public welfare
a. Passionately carry out blood donation
International Trade Center Management Office and Fumin Xincun Management Office of International Trade
Center Property Management Co., Ltd. under the Group, together with Huangcheng Property Company and
Shenzhen International Trade Center Car Industry Co., Ltd. carried out 4 times of blood donation by Party
members, their staff, taxi drivers and community residents through various themes including Party Member Plan
throughout the year, with 163 successfully donating 61,300ml blood in total.
b. Provide free ride service for patients around hospitals and students for National College Entrance
Examination
a) On 5 Mar., Shenzhen International Trade Center Car Industry Co., Ltd. launched a series of activities named
“Learn from Lei Feng to Show Your Love”. Its Caring Driver Team provided free ride for patients and their
families around Shenzhen First People’s Hospital and The University of Hong Kong – Shenzhen Hospital,
dispatching 98 times of service cars and offering free services to 196 person-time citizens.
b) On 7 and 8 Jun., the Caring Driver Team of Shenzhen International Trade Center Car Industry Co., Ltd. and SX
Company jointly assigned over 100 cars to offer free over 200 times of ride for more than 500 person-time
students attending National College Entrance Examination in Shenzhen No.2 Experimental School and Shenzhen
Hongling Middle School.
c) The Caring Driver Team of Shenzhen International Trade Center Car Industry Co., Ltd. worked jointly with
Futian Street Port Community Service Center to carry out the activity of caring the disabled in the community on
14 May. Shenzhen International Trade Center Car Industry Co., Ltd. dispatched 10 taxis on that morning, offering
free ride to 22 disabled people and their relatives attending the activity.
c. Energetically organize volunteers to offer handy service for the public
The Group organized volunteers led by the Party members to carry out the activity of serving passengers at Luohu
Coach Station and Futian Coach Station, energetically participate in the volunteering services for large-scale
social events such as the International Maker Week, and actively conduct activities such as learning from Lei
Feng to protect the environment by doing cleaning, repairing electrical appliances free of charge and promote on
civilized pet keeping, with over 80 volunteers and nearly 1,000 hours of volunteering services.
d. Volunteer in environmental protection
a) The Group organized all staff to launch a voluntary donation of the used clothing titled “Green Pioneer”. In this
activity, the volunteers sorted out and packed such clothing over 2200 pieces that were all donated to
environmental protection organ for donation and recycling.
b) The Group organized all the employees to actively undertake the activity of donating books to Guangdong
Heyuan City Longchuan County Beiling Town Mibei Primary School and Shima Library, located in the fixed
point poverty alleviation villages of Shenzhen SASAC. A total of 1,626 different kinds of books were collected
and entrusted to relevant organizations for the delivery.
e. Maintain social stability and harmony
In view of some taxi drivers’ neglect of duty and off-service during the New Year period in Shenzhen, Shenzhen
International Trade Center Car Industry Co., Ltd. vigorously responded to the call of the supervisory department
of passenger transportation and organized the Caring Driver Team and the Communist Party Member
Demonstration Car to engage in the task of providing fixed-point transportation guarantee in Huanggang Port. A
total of 82 taxis were dispatched for 136 times, offering rides to over 400 passengers, which was highly praised by
both the supervisory department of passenger transportation and passenger, and the task of providing fixed-point
transportation guarantee in Huanggang Port was successfully completed.
39
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
C. Win social honors
a. Mr. Li Qingping, a taxi driver from Shenzhen International Trade Center Car Industry Co., Ltd. won the title of
“2013-2015 Moving Transportation People – the Most Virtuous Diligent Transportation Person” granted by
Guangdong Communications Department, and was named “2015 Moving Transportation People” jointly by the
Ministry of Transport of the People’s Republic of China and All-China Federation of Trade Union.
b. Shenzhen International Trade Center Car Industry Co., Ltd., International Trade Center Management Office
and Fumin Xincun Management Office of International Trade Center Property Management Co., Ltd. under the
Group were granted the title of “Shenzhen Excellent Organization in Blood Donation” by Shenzhen Health and
Family Planning Commission and Red Cross of China Shenzhen Branch; Jiang Hao, Du Feng, Li Decai and Wang
Cheng won the national Gold Award for Blood Donation; Li Decheng and Wang Cheng were awarded with the
national Volunteering Service for Blood Donation.
c. Shenzhen International Trade Center Car Industry Co., Ltd. was granted “5A” Level Integrity Demonstration
Enterprise for the 10th consecutive year in the voting activity of 2015 “Guangdong Integrity Demonstration
Enterprise” jointly organized by Guangdong Provincial Enterprise Confederation and Guangdong Provincial
Association of Entrepreneurs.
d. Shenzhen International Center Building (“International Trade Center”), under the general contract of the Group,
was named “Shenzhen Cultural Name Card” by Shenzhen Municipal Propaganda Department and the City
Confederation of Social Science.
e. The International Trade Center Revolving Restaurant passed the Fourth “Shenzhen Time-Honored Brand”
review by SZ-GCC, Shenzhen Media Group and Shenzhen Economic Daily, and once again won the title of
“Shenzhen Time-Honored Brand”.
Is Company or any of its subsidiaries a heavily polluting business identified by the environmental protection
authorities of China?
No.
Indicate by tick mark whether a social responsibility report is released.
□ Yes √ No
XIX Other significant events
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XX Significant events of subsidiaries
□ Applicable √ Not applicable
40
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section VI Share Changes and Shareholders’ Profile
I Share changes
1. Share changes
Unit: share
Before Increase/decrease (+/-) After
Increase
Percentag New Bonus from Percentag
Number Other Subtotal Number
e (%) issues shares capital e (%)
reserve
Reasons for any share changes
□ Applicable √ Not applicable
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders
of the Company and other financial indexes over the prior year and the prior period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to
disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
□ Applicable √ Not applicable
41
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
II Issuance and listing of securities
1. Securities (excluding preference shares) issued in this Reporting Period
□ Applicable √ Not applicable
2. Changes in total shares of the Company and the shareholder structure, as well as the asset and liability
structures
□ Applicable √ Not applicable
3. Existing employee-held shares
□ Applicable √ Not applicable
III Shareholders and actual controller
1. Total number of shareholders and their shareholdings
Unit: share
Total number of
preference
Total number of
Total number of shareholders
common
preference with resumed
Total number shareholders at
shareholders with voting rights at
of common the prior
47,510 45,078 resumed voting 0 the prior 0
shareholders at month-end
rights at the month-end
the period-end before the
period-end (if any) before the
disclosure of this
(see note 8) disclosure of this
Report
Report (if any)
(see note 8)
5% or greater shareholders or the top 10 shareholders
Total Increase/ Pledged or frozen shares
Number Number
Sharehold shares decrease
of of
Name of Nature of ing held at during
restricted non-restric
shareholder shareholder percentag the this Status Number
shares ted shares
e (%) period-en Reporting
held held
d Period
Shenzhen
State-owned 323,796,3 293,997,3 29,798,95
Construction 54.33%
corporation 24 70 4
Investment
42
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Holdings
Corporation
Shenzhen
Investment State-owned 56,582,57 56,582,57
9.49% 0
Management corporation 3 3
Corporation
Domestic
Du Xinye 0.65% 3,880,800 0 3,880,800
individual
Domestic
Zhou Qun 0.52% 3,115,450 0 3,115,450
individual
Domestic
Du Yunfeng 0.39% 2,323,000 0 2,323,000
individual
Shenzhen
Duty-Free Domestic
Commodity non-state-owned 0.29% 1,730,300 0 1,730,300
Enterprises Co., corporation
Ltd.
Domestic
Mai Furong 0.25% 1,514,800 0 1,514,800
individual
Jason Offshore Domestic
Equipment Co., non-state-owned 0.23% 1,364,400 0 1,364,400
Ltd. corporation
Domestic
Yang Yaochu 0.22% 1,320,620 0 1,320,620
individual
Domestic
Chen Liying 0.18% 1,076,051 0 1,076,051
individual
Strategic investors or general
corporations becoming top-ten
N/A
shareholders due to placing of new
shares (if any) (see Note 3)
The first and second principal shareholders of the Company are managed by Shenzhen
Related or acting-in-concert parties Investment Holding Corporation, the actual controlling shareholder of the Company. And
among the shareholders above the Company does not know whether there are related parties or acting-in-concert parties
among the other 8 shareholders.
Shareholdings of the top ten non-restricted shareholders
Number of non-restricted shares held at the Type of shares
Name of shareholder
period-end Type Number
Shenzhen Construction Investment RMB common
29,798,954 29,798,954
Holdings Corporation share
43
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
RMB common
Du Xinye 3,880,800 3,880,800
share
RMB common
Zhou Qun 3,115,450 3,115,450
share
RMB common
Du Yunfeng 2,323,000 2,323,000
share
Domestically
Mai Furong 1,514,800 listed foreign 1,514,800
share
RMB common
Jason Offshore Equipment Co., Ltd. 1,364,400 1,364,400
share
Domestically
Yang Yaochu 1,320,620 listed foreign 1,320,620
share
Domestically
Chen Liying 1,076,051 listed foreign 1,076,051
share
Domestically
Li Jing 962,440 listed foreign 962,440
share
RMB common
Zhang Jie 894,988 894,988
share
Related or acting-in-concert parties
The first principal shareholder of the Company is managed by Shenzhen Investment
among the top ten non-restrictedly
Holding Corporation, the actual controlling shareholder of the Company. Other than that,
tradable share holders and between the
the Company does not know whether there are related parties or acting-in-concert parties
top ten non-restrictedly tradable share
among the other 9 shareholders.
holders and the top ten shareholders
Top ten common shareholders
conducting securities margin trading N/A
(if any) (see Note 4)
Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common
shareholders of the Company conducted any promissory repo during this Reporting Period.
□ Yea √ No
No such cases in this Reporting Period.
2. Information about the controlling shareholder
Nature of the controlling shareholder: Controlled by the local government
44
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Type of the controlling shareholder: Corporation
Legal
Name of controlling
representative/person Date of establishment Credibility code Main business scope
shareholder
in charge
To execute the investment,
operating and management
of the state-owned equities
of the wholly-owned,
controlling and
stock-participating
enterprises through the
methods such as the
restructuring integration,
capital operation and assets
disposal; to engage in the
property development and
operation business within
Shenzhen Investment the scale of legally acquire
Peng Haibin 10/13/2004 914403007675664218
Holdings Corporation the land use right; to
execute the policy-based
and strategic investment
according to the
requirements of the
SASAC; to provide the
guarantee of the municipal
state-owned enterprises;
other business developed
with the authority from the
Municipal State-owned
Assets Supervision and
Administration
Commission.
Major wholly-owned or controlled enterprises: 1. Guosen Securities Co., Ltd. 2. Shenzhen Century
Science and Technology Investment Co., Ltd. (SIHC) 3. Shenzhen Urban Construction Investment
& Development (Group) Co., Ltd 4. Shenzhen Special Economic Zone Real Estate & Propertiest
Shareholdings of the (Group) Co., Ltd 5. Shenzhen High-Tech Investment & Guaranty Co., Ltd. (HTI) 6. Shenzhen
controlling shareholder in Properties & Resources Development (Group) Ltd. (SZPRD) 7. Shenzhen Tongchan Group Co.,
other listed companies at Ltd. 8. Shenzhen Small & Medium Enterprises Credit Financing Guarantee Group Co., Ltd.
home or abroad in this (SZCGC) 9. Shenzhen Shenfubao (Group) Co., Ltd. 10. Shenzhen Yue Tong Construction
Reporting Period Engineering Co., Ltd. 11. Shenzhen Textile (Holdings) Co., Ltd. 12. Shenzhen Jian (Group) Co.,
Ltd. 13. Shenzhen Shentou Education Co., Ltd. 14. Shenzhen Investment Holdings Co., Ltd. 15.
Shenzhen General Institute of Architectural Design And Research Co., Ltd. (SADI) 16. Shenzhen
Convention & Exhibition Center Management Co., Ltd. (SZCEC) 17. China Academy of Science &
45
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Technology Development (AST) 18. Shenzhen Silver Lake Resort Hotel Limited 19. Shenzhen
International Tendering Co., Ltd. 20. Shenzhen Institute of Building Research Co., Ltd. 21.
Shenzhen Shentou Property Management Ltd. 22. Shenzhen Information Pipeline Co., Ltd. 23.
Shenzhen Environmental Engineering Science and Technology Center (EETC) 24. The Orchid
Conservation & Research Center of Shenzhen 25. Shenzhen 51emap Information Co., Ltd. 26.
Shenzhen Foreign Trade and Economic Investment Co., Ltd. 27. Shenzhen Yunhai Villa Hotel
Management Ltd. 28. Shenzhen Investment Holdings Co., Ltd Preschool Management Center 29. Li
Yuan Hotel Shenzhen 30. SZ Youth 31. Shenzhen Mangrove 32. Shenzhen Port Management
Service Center 33. Shenzhen Transportation Service Center 34. Shenzhen Comprehensive
Transportation Design Institute 35. Shenzhen Highway Traffic Engineering Inspection & Test
Center 36. Shenzhen Cantonese Opera Troupe 37. Shenzhen Grand Theater 38. Shenzhen Concert
Hall 40. Shenzhen Road & Bridge Construction Group Co., Ltd. 41. Wuzhou Guest House
Shenzhen 42. Shenzhen Sports Center Operating Co., Ltd. 43. Shenzhen Sports Fashion Magazine
44. Special Zone Economy 45. Special Zone Literature 46. Shenzhen Talent Exchange Service
Center 47. Shenzhen Municipal People's Congress Cadre Training Center 48. Shenzhen Justice
Training Center 49. PPSZ Investigative Techniques Training Base 50. Shenzhen Water Resources
Planning & Design Institute 51. Shenzhen Real Estate Management Training Center 52. Housing &
Real Estate 53. Shenzhen Shanshui Hotel 54. Shenzhen Urban Transport Planning Center 55.
Shenzhen Hazardous Waste Treatment Station 56. Shenzhen Guesthouse 57. Manger 58. China
Opening Journal 59. Shenzhen Local Taxation Bureau Dongpeng Printing Plant 60. Shenzhen
Foreign Economy & Trade Service Center (FETSC) 61. IT Times 62. Women Magazine 63.
Shenzhen Women & Children Development Center 64. Housing and Construction Bureau of
Shenzhen Municipality Training Center
Change of the controlling shareholder during this Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
3. Information about the actual controller
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: Corporation
Legal
Date of
Name of actual controller representative/per Credibility code Main business scope
establishment
son in charge
(I) Implementing and practicing
state, provincial and municipal
Shenzhen Municipal laws and regulations related to
State-owned Assets Supervision Peng Haibin N/A management on state-owned
and Administration Commission assets, drafting local laws,
regulations, and policies about
management on state-owned
46
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
assets, and organizing
implementation activities upon
approvals. Intending to draft
supervision systems and
methods about operational
state-owned assets, and
organizing implementation
activities.
(II) On the basis of authorization
from municipal government,
fulfilling duties of investors
according to laws and
regulations, and protecting the
rights and interests of investors
for state-owned assets according
to laws
(III) Taking charge of
Party-building work for
enterprises in its supervision and
organs entrusted
(IV) Undertaking the
supervision over state-owned
assets of municipal enterprises,
strengthening management on
state-owned assets, further
perfecting the management
mechanism for state-owned
assets with the unification of
power, obligation, and duties, as
well as the combination of
managing assets, people, and
affairs
(V) Being responsible for
hedging and appreciation of the
value of state-owned assets of
enterprises in its supervision,
establishing and perfecting the
index system for hedging and
appreciation of the value of
state-owned assets, setting out
assessment standards,
supervising on hedging and
appreciation of the value of
state-owned assets of enterprises
47
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
in its supervision by statistics,
audit, and check, and urging
enterprises in its supervision to
fulfill social duties
(VI) In charge of researching
and preparing the general
planning for transformation and
development of state-owned
enterprise in its supervision,
guiding and boosting
transformation and
re-organization of state-owned
enterprises, prompting the
construction of modern
enterprise system, carrying
forward operation of
state-owned capital, pushing the
strategic adjustment on
state-owned economy layout and
structure, and making
state-owned capital play the role
in significant industries and key
fields including national
security, national economy
lifeline, etc.
(VII) Directing and propelling
enterprises in its supervision to
perfect company governance
structure, intensifying
construction of Board and
Supervision Committees of
enterprises in its supervision,
and forming the governance
mechanism with specific duties,
coordinating operation, and
effective counterbalance
(VIII) Assuming the
management work of income
distribution for enterprises in its
supervision, and standardizing
the income distribution and
position-related consumption
over people in charge of
enterprises in its supervision
48
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(IX) In line with rules of
municipal Party committee,
appointing and dismissing,
appraising, as well as, in
accordance with business
performance, rewarding and
punishing people in charge of
enterprises in its supervision by
applying legal procedures,
establishing the mechanism of
selecting and choosing
candidates meeting the
requirements of socialist market
economy system and modern
enterprise system, and perfecting
the incentive and control system
for operators
(X) Being responsible for
appointing or recommending
board directors, supervisors,
CFOs to enterprises in its
supervision, and auditing on
economic duties of people in
charge of enterprises in its
supervision according to rules
about management authorization
to people in charge of
enterprises
(XI) In charge of preparing the
draft of budgets and final
accounts of annual state-owned
capital of enterprises in its
supervision, including it to the
government budget system,
organizing the execution upon
approvals, and collecting
earnings of state-owned capital
handed in by enterprises in its
supervision
(XII) In charge of strategy
research, policy formulation,
and guidance for transformation,
development, and asset
management related to
49
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
collectively-owned enterprises
(XIII) Assuming other
assignments assigned by
municipal government and
superior departments
Shareholdings of the actual
controller in other listed Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen Zhenye,
companies at home or abroad in Shenzhen Tagen, Agricultural Products and SDGI.
this Reporting Period
Change of the actual controller during this Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
Ownership and control relations between the actual controller and the Company
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset
management.
□ Applicable √ Not applicable
4. 10% or greater corporate shareholders
□ Applicable √ Not applicable
5. Limitations on shareholding decrease by the Company’s controlling shareholder, actual controller,
reorganizer and other commitment makers
□ Applicable √ Not applicable
50
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section VII Preference Shares
□ Applicable √ Not applicable
No preference shares in this Reporting Period.
51
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section VIII Directors, Supervisors, Executive Officers and Staff
I Changes in shareholdings of directors, supervisors and executive officers
Increase Decrease
Opening Other Closing
in this in this
Office Incumben Starting Ending sharehold increase/d sharehold
Name Gender Age date of date of Reporting Reporting
title t/former tenure tenure ing ecrease ing
Period Period
(share) (share) (share)
(share) (share)
Chen Board Incumben 06/30/200
Male 60 0 0 0 0 0
Yugang Chairman t 6
Incumben 07/15/200
Wei Zhi GM Male 60 0 0 0 0 0
t 8
Liu Incumben 12/22/200
Director Male 59 0 0 0 0 0
Guangxin t 7
Gong Director, Incumben 06/01/201
Male 49 0 0 0 0 0
Sixin CFO t 1
Incumben 12/01/200
Wen Li Director Female 48 0 0 0 0 0
t 7
Guo Incumben 06/30/200
Director Male 44 0 0 0 0 0
Liwei t 6
Independ
Incumben 10/22/201
Li Jianxin ent Male 63 0 0 0 0 0
t 4
Director
Independ
Liu Incumben 10/22/201
ent Male 55 0 0 0 0 0
Ninghua t 4
Director
Independ
Incumben 10/22/201
Zhang Qi ent Male 39 0 0 0 0 0
t 4
Director
Chairman
Dai of the Incumben 06/03/201
Male 55 0 0 0 0 0
Xianhua Superviso t 1
ry Board
Zhang Superviso Incumben 10/22/201
Male 42 0 0 0 0 0
Manhua r t 4
Wang Superviso Incumben 06/03/201
Female 55 0 0 0 0 0
Xiuyan r t 1
52
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Wang Superviso Incumben 06/03/201
Female 47 0 0 0 0 0
Qiuping r t 1
Superviso
r,
Manager
Zhang Incumben 06/03/201
of Cost Male 42 0 0 0 0 0
Gejian t 1
Control
Departme
nt
Vice GM,
Person-in
Wang Incumben 10/22/200
-charge of Male 51 0 0 0 0 0
Hangjun t 7
Financial
Affairs
Vice GM,
Fan Incumben 02/08/201
Board Male 52 0 0 0 0 0
Weiping t 2
Secretary
Total -- -- -- -- -- -- 0 0 0 0 0
II Changes in directors, supervisors and executive officers
Name Office title Type of change Date Reason
N/A
III Brief biographies
Professional backgrounds, main working experience and current responsibilities in the Company of the incumbent
directors, supervisors and executive officers
Members of the Board of Directors:
Mr. Chen Yugang, was born in Sep. 1957, Postgraduate degree, is senior Political Worker. He gains rich
experience in government administrative management and enterprise management over 30years. He held some
important posts in many municipal departments. He served as GM and Secretary of the CPC in Shenzhen Shenhua
Group Company. Also, he served as GM and Vice Secretary of the CPC in Shenzhen Xianke Enterprise Group,
and Deputy General Manager of Shenzhen Investment Holdings Co., Ltd. From May 2006, he has served as
Secretary of CPC in the Company. And in June 2006, he was elected as Chairman of the Board of the Company.
Now he acts as Secretary of CPC and Chairman of the Board in the Company.
Mr. Wei Zhi, was born in Nov. 1957, Bachelor Degree, senior economist, holds the title of interpreter/translator.
He gains rich experience in enterprise management for over 30 years. He ever worked in Shenzhen International
Engineering Co., Ltd. as Deputy Manager of Overseas Department, in Shenzhen Zhongshen Overseas
Development Company as Manage of Labor Affairs Department and Deputy General Manager, in China
Shenzhen International Cooperation (Group) Co., Ltd. in Hong Kong Liyuan Company as Director and General
Manager; in Shenzhen Construction Investment Holdings Corporation as Deputy Manager of Overseas
53
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Department, in Shenzhen Construction Investment Holdings Corporation as Deputy Manager of Contract
Department, in Shenzhen Tonge (Group) Co., Ltd. as Assistant General Manager and Deputy General Manager, in
Tonge Real Estates Development Company as Chairman of the Board and General Manager. Since October 2007,
he took the posts of the Vice Secretary of CPC and Standing Deputy General Manager in the Company. Since 20
Dec. 2007, he held the posts of Director, Vice Secretary of CPC and GM of the Company. Since 15 Jul. 2008 to
present, he acts as Vice Secretary of CPC, Director and GM of the Company.
Mr. Liu Guangxin, was born in May 1958, College Diploma, is an Economist. He gains experience in enterprise
management over 30 years. Since May 1989, he held a job in the Company as Director of the Office in Properties
Engineering Development Company, General Manager of International Trade Center Industrial Development
Company, General Manager of International Trade Center Food Company, Deputy Director and Director of the
GM Office of the Company, as well as Manager of Operation and Management Department of the Company.
Since October 2007, he took the posts of Vice Secretary of CPC and Secretary of Discipline Inspection Committee
in the Company. Since November 2007, he was appointed as Chairman of the Labor Union of the Company. Now
he acts as Vice Secretary of CPC, Director, Secretary of Discipline Inspection Committee as well as Chairman of
Labor Union in the Company.
Mr. Gong Sixin, was born in Feb. 1968, Master of Economics, Senior Accountant. He has profound experiences
in financial accounting management. He ever took posts of CFO of Shandong Weigao Medical Polymer Company
Limited, of CFO of Shenzhen 3Nod Technology Co., Ltd. as well as CFO of Shenzhen Jiehe Technology Co., Ltd.
Since Sep. 2010, he kept acting as CFO of the Company. Since June 2011, he is acting as director and CFO of the
Company.
Ms. Wen Li, born in Dec. 1969, Postgraduate Degree, Master Degree, is an Economist as well as Engineer. She
gains experience in enterprise management over 10 years. She ever worked in Shenzhen Fantasia Investment
Development as Assistant of Standing Deputy General Manger, Manager of Project Department, as well as
Manager of Market Planning Department. Since July 2005, she worked in Shenzhen Investment Holdings Co., Ltd.
She was ever appointed as Deputy Department Director of Investment Department of Shenzhen Investment
Holdings Co., Ltd. Now she acts as Vice Director of Management Center of Construction Project of Shenzhen
Investment Holdings Co., Ltd., Director of the Company.
Mr. Guo Liwei, was born in Apr. 1973, Postgraduate Degree, is a master of Law. He once successively held the
posts in General Department of Ping An Insurance (Group) Company of China as legal consultant, and Shenzhen
Investment Management Corporation as Business Manager of Legal Affairs Department. Since October 2004, he
worked in Shenzhen Investment Holdings Co., Ltd as Deputy GM of Legal Affairs Department. He now acts as
Manager of the First Enterprise Management Department in Shenzhen Investment Holdings Co., Ltd. and Director
of the Company.
Independent Directors:
Mr. Li Jianxin, was born in Sep. 1954, University Degree, member of Communist Party of China. He graduated
from Zhongnan University of Economics and Law in 1978; Once held the post in Wuhan Bureau of Statistics;
Engaged in the scientific research in Hubei Academy of Social Sciences, Institute of Economics in 1980; Acted as
Deputy Director of Hubei Academy of Social Sciences， Institute of Agricultural Economics in 1988; Acted as
Standing Deputy Director, Associate Professor and Postgraduate Tutor in 1992; Transferred into Shenzhen
Newrand Securities Investment Consulting Co., Ltd. and acted as Marketing Manager in 1995; Transferred into
Shenzhen Academy of Social Sciences in 1996, and had served successively as Deputy Director, Director,
Associate Professor in Institute of Economics. He acted as Independent Director of Shenzhen Kondarl (Group)
Co., Ltd. from 2001 to 2006; Acted as Independent Director of Shenzhen Tagen Group Co., Ltd. from 2003 to
54
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
2009; Acted as Independent Director of Shenzhen Kondarl (Group) Co., Ltd. from 2009 to present. He recently
acted as Chairman and Associate Professor in Shenzhen Academy of Social Sciences, Center of Open Economics,
and the Independent Director of the Company.
Mr. Liu Ninghua, born in Jun. 1962, bachelor’s degree, engineer, communist. He was once the Shenzhen
Investment Banking Vice GM and then GM in China Orient Trust Investment Co., Ltd. And he has been working
in the Law Compliance Department in China Galaxy Securities Co., Ltd. since Aug. 2013.
Mr. Zhang Qi, born in Jan. 1978, graduated from the Accounting Faculty in Zhongnan University of Economics
and Law, professor, doctor, doctoral supervisor, superintendent of a governmental accounting institution, deputy
head of the accounting department, China’s leading talent in accounting honored by the Ministry of Finance,
registered accountant in China, Hubei New Century High Level Engineering Talent (level 2), correspondence
commentator in the National Natural Science Foundation of China, anonymous checker in the Magazine, vice chairman of the Government and NPO Accounting Specialized Committee in the
Accounting Society of China, director in the National Budget and Accounting Research Institute of China,
consultant expert in the Government Accounting Standards Committee under the Ministry of Finance, deputy head
of the accounting department and associate professor in Zhongnan University of Economics and Law from 2009
to 2012, and doctor and doctoral supervisor in that university and superintendent of a governmental accounting
institution from 2012 till now.
Members of the Supervisory Board:
Mr. Dai Xianhua, was born in April 1962, doctor degree, Party member of CPC. He gains adequate work
experience of over 20 years. He worked as a lecturer in School of Business and Economy of Zhongnan University
of Economics and Law from 1986 to 1989. He took posts of editor of department of theory and review, assistant
director, vice director in Shenzhen Economic Daily from 1992 to 1997; worked in Shenzhen State Assets
Administration Committee (hereinafter referred as “Shenzhen SAC”) as Vice Section Chief of Assets Department,
and Assets Management Department, Vice Director, investigator of Office, and investigator of Appraisal and
Distribution Department from 1997 to 2011. Now he is Chairman of the Supervisory Board of the Company.
Ms. Wang Xiuyan, was born in Aug. 1962, MBA degree, is an accountant. From May 1997 to Sep. 2004, she
worked in Shenzhen Investment Management Corporation, once acted as secretary of the Supervisory Board
Office, Business Manager of Audit Department, Director of Women’s Labor Union, Senior Business Manager of
Audit Department and Supervision Department; from Oct. 2004 to Dec. 2007, she acted as manager of
Supervision and Inspection Department in Shenzhen Investment Holding Co., Ltd.; from Dec. 2007 to present, she
is manager of Audit Department (the Supervisory Board Office) in Shenzhen Investment Holding Co., Ltd.
Currently, she is the Deputy Head of the Audit & Risk Management Department (Office of the Supervisory Board)
in Shenzhen Investment Holding Co., Ltd. as well as a supervisor of the Company.
Mr. Zhang Manhua, born in Feb. 1975, master’s degree, studied and taught in Central South University from
1992 to 2004; Business Manager, Senior Manager in the Investment Center of Konka Group and concurrently
worked as the Company Secretary for Shenzhen Jvlong Optoelectronic Co., Ltd. from 2004 to 2010; Vice
Investment Manager and Investment Manager in Shenchao Technological Investment Co., Ltd. from 2010 to 2013;
and Senior Supervisor in the Enterprise Department I in Shenzhen Investment Holding Co., Ltd. since 2013. He is
now the Vice Strategy & Development Manager of Shenzhen Investment Holdings Co., Ltd.
Ms. Wang Qiuping, was born in Jan. 1970, Bachelor degree, is a senior economist. Since 1992, she worked for
the Company, she ever took post in GM office, Plan and Finance Department and Operation and Management
Department for comprehensive operation and management as well as planning and management as the
55
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Development Manager. Now she is a supervisor of the Company and the Party Committee Secretary of Shenzhen
International Trade Center Property Management Co., Ltd.
Mr. Zhang Gejian, was born in September 1975, Bachelor Degree, is an Accountant as well as Auditor. He was
engaged in internal auditing work in Audit Department of the Company since July 1997. Now he acts as
Supervisor of the Company and concurrently the Cost Control Manager.
Executive officers:
Mr. Wang Hangjun, was born in Nov. 1966, graduated from Zhongnan University of Economics with a master
degree of economy. He is a senior auditor and has over 20 years corporate management experience. He ever took
post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; of Vice Minister, Minister of Audit
Department of Shenzhen Investment and Management Company; of Vice Minister, Minister of Supervision
Department of Shenzhen Investment and Management Company; of Minister of Audit and Inspection Department
of Shenzhen Investment Holding Co., Ltd. He has been Deputy GM of the Company since Oct. 2007.
Mr. Fan Weiping, born in Apr. 1965, graduated from Southwest University of Political Science & Law in 1988,
postgraduate degree. He used to work in Shenhua Group successively as the Chief of the Legal Affairs Section in
the Supervisory and Audit Department; the Vice Manager and Manager of the Legal Affairs Department; the GM
Assistant; and the Chief Legal Adviser. Since Jan. 2009, he has become the Company Secretary and the Chief
Legal Adviser for the Company. And he has been a Vice GM, the Company Secretary and the Chief Legal Adviser
for the Company since Feb. 2012.
Posts concurrently held in shareholding entities
√ Applicable □ Not applicable
Post in Allowance from
Starting date of Ending date of
Name Shareholding entity shareholding the shareholding
tenure tenure
entity entity (yes/no)
Chief of the
Wen Li Shenzhen Investment Holdings Co., Ltd. Enterprise 1 Jul. 2005 Yes
Department I
Deputy Head
of the
Property
Ownership
Guo Liwei Shenzhen Investment Holdings Co., Ltd. 1 Oct. 2004 Yes
Management
& Legal
Affairs
Department
Deputy Head
of the Audit
& Risk
Wang Xiuyan Shenzhen Investment Holdings Co., Ltd. Management 1 Oct. 2004 Yes
Department
(Office of the
Supervisory
56
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Board)
Senior
Supervisor of
Zhang Manhua Shenzhen Investment Holdings Co., Ltd. 1 Mar. 2013 Yes
the Enterprise
Department I
Posts held concurrently in other entities
√ Applicable □ Not applicable
Post in other Starting date of Ending date of Allowance from
Name Other entity
entity tenure tenure the entity (yes/no)
Research
Li Jianxin Shenzhen Academy of Social Sciences 1 Jan. 1996 Yes
scholar
Law
Liu Ninghua China Galaxy Securities Co., Ltd. Compliance 1 Aug. 2013 Yes
Department
Professor,
Zhongnan University of Economics and
Zhang Qi doctoral 1 Jan. 2012 Yes
Law
supervisor
Punishments imposed in the recent three years by the securities regulators on the incumbent directors, supervisors
and executive officers as well as those who left in this Reporting Period
□ Applicable √ Not applicable
IV Remuneration of directors, supervisors and executive officers
Decision-making procedure, determination basis and actual remuneration payment of directors, supervisors and
executive officers
During this Reporting Period, the board and the management of the Company signed statement of operation
objectives responsibility for 2015, conducted appraisal system integrating operation indicators, classification
indicators with management objectives. After the end of this Reporting Period, assessment was implemented by
the board. Remuneration of senior executives, according to “Management Method of Annual salary System of
Directors, Supervisors and Senior Executives”, adopted annual salary system, and need to be implemented after
assessment of the board.
Remuneration of directors, supervisors and executive officers in this Reporting Period
Unit: RMB'0,000
Remuneration
Total before-tax
from related
remuneration
Name Office title Gender Age Incumbent/former parties of the
from the
Company
Company
(yes/no)
Chairman of the
Chen Yugang Male 60 Incumbent 63.87 No
Board
57
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Wei Zhi General Manager Male 60 Incumbent 78.51 No
Director,
Liu Guangxin Chairman of Male 59 Incumbent 65.1 No
Labor Union
Gong Sixin Director, CFO Male 49 Incumbent 41.88 No
Wen Li Director Female 48 Incumbent 0 Yes
Guo Liwei Director Male 44 Incumbent 0 Yes
Independent
Li Jianxin Male 63 Incumbent 8 No
Director
Independent
Liu Ninghua Male 55 Incumbent 8 No
director
Independent
Zhang Qi Male 39 Incumbent 8 No
director
Chairman of the
Dai Xianhua Supervisory Male 55 Incumbent 42.88 No
Board
Wang Xiuyan Supervisor Female 55 Incumbent 0 Yes
Zhang Manhua Supervisor Male 42 Incumbent 0 Yes
Wang Qiuping Supervisor Female 47 Incumbent 37.84 No
Supervisor,
Manager of Cost
Zhang Gejian Male 42 Incumbent 39.16 No
Control
Department
Vice GM,
Wang Hangjun Male 51 Incumbent 65.1 No
financial head
Vice GM, Board
Fan Weiping Male 52 Incumbent 65.1 No
Secretary
Total -- -- -- -- 523.44 --
Equity incentives for directors, supervisors and executive officers in this Reporting Period
□ Applicable √ Not applicable
V Employees
1. Number, functions and educational backgrounds of employees
Number of in-service employees of the Company 66
Number of in-service employees of main subsidiaries 2,714
Total number of in-service employees 2,780
58
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Total number of employees with remuneration in this Reporting
2,780
Period
Number of retirees to whom the Company or its main
265
subsidiaries need to pay retirement pension
Functions
Function Number of employees
Production 1,703
Sales 182
Technical 611
Financial 113
Administrative 171
Total 2,780
Educational backgrounds
Educational background Number of employees
Doctors 2
Masters 36
Bachelors 263
College graduates 402
Technical secondary school graduates 717
High school graduates and below 1,360
Total 2,780
2. Employee remuneration policy
As required by corporate development strategy, based on actual situation to insist the internal industrialization and
the marketization among the industry of the remuneration principles of the Group and our Company adopts a
differentiated management on different industries to satisfy market demands by appropriately increasing the
remuneration distance to better attract and retain talents. In HQ and real estate enterprises, position type
management idea is introduced, with all positions divided into Leader Group, Management Group, Professional
Group, Business Group and Service Group at different remuneration levels. Meanwhile, the remuneration for
professional technicians and that for medium-level management are kept overlapped. In this way, remuneration
and career development are provided at the same time. To some extent, the remuneration is a little bit favorable
for professionals in real estate development industry. With regard to other enterprises under the Company group,
market reference is applied, but the key is to appropriately adjust remuneration for key positions or some positions
with lower remuneration than market level.
3. Employee training plans
In 2017, based on the overall requirements of the Company to establish a learning organization and carry out
business development, as well as the survey on training needs, the Company is going to reinforce training in
specialized real estate courses, comprehensive caliber, expertise knowledge and team building with an aim of
59
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
further increasing the comprehensive knowledge and improving the professional competence and skills of the
team, seeking synchronized development between the Company and its employees and achieving the sustainable
and sound development of the Company. The major contents of the training will include specialized real estate
courses, comprehensive management capabilities, team development, professional skills, etc, with a combination
of internal and external training to be conducted in a planned way, and all the employees will attend the training in
different groups throughout the year.
4. Labor outsourcing
□ Applicable √ Not applicable
60
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section IX Corporate Governance
I Basic situation of corporate governance
During this Reporting Period, in accordance with the requirement of the Company Law, Securities Law, Code of
Corporate Governance for Listed Companies in China and Stock Listing Rules of Shenzhen Stock Exchange as
well as relevant laws and statutes of CSRC, the Company continuously regulated and perfected corporate
governance structure, established and perfected internal management and control system and investigated in
management activities of the Company, which promoted the Company’s standard management level.
As to the end of this Reporting Period, the internal control system of the Company is complete, accomplished and
defined that in accordance with Company Law, Articles of Association and other laws and regulations as well as
requirements of regulatory documents. The convene of Shareholders’ General Meeting, the Board of Directors and
Supervisory Board are strictly in accordance with relevant rules and regulations, all directors and supervisors
earnestly and diligently commit their responsibilities. Corporate structure of the Company is complete and the
operation of the Company is standardized.
With the goal of constructing a standard management structure, the Company has established related regulations
on Shareholders’ Meeting, Board of Directors and Board of Supervisors, to ensure effective rights to
decision-making, execution and supervision respectively.
The Shareholders’ Meeting shall have the highest right to review and make decision on major issues, including the
Company’s business idea, investment plan, major trading items, capital changes, appointment and dismissal of
directors and supervisors, within the legal scope as defined by laws, regulations and rules like the Company Law
and Articles of Corporation. The Company has established and strictly followed various regulations, including
Rules of Procedure of Shareholders’ Meeting, to ensure all shareholders’ rights.
The Board of Directors has the right to business decision-making, responsible for the establishment and effective
execution of the Company’s internal control as well. Besides, it further sets up four special committees, namely,
Strategic Development & Investment Committee, Remuneration and Assessment Committee, Audit Committee
and Nomination Committee, to improve its operating efficiency based on corresponding work rules.
The Board of Supervisors acts as a supervising organ for the Company. It checks the Company’s finance, and
supervises all jobs of the Company’s directors and senior management. Also, it is responsible for and reports to
the Shareholders’ Meeting.
The business management have the right to execution. They are appointed by the Board of Directors, and
responsible for daily running of business management and internal control.
Based on the principle of science, simplicity and efficiency, the Company has established such functional
departments as Office for Board of Directors, General Manager’s Office, Cost Control Department, Planning
Design Department, Human Resources Department, Development Management Department, Financial
Management Department, Audit Department (Office for Board of Supervisors), Law and Risk Control
Department, Lease Center, and Party Work Office. These departments perform their specific functions and carry
out work in accordance with regulations on internal control, to ensure the Company’s healthy running.
The Company always pays attention to standardize the management for inside information, such as promulgating
the Management Rules for Insiders, making clear about the contents of inside information, making the scope of
insiders and accountability system for inside dealings. After reporting and submitting non-published information
to the controlling shareholders, the Company all registered the relevant information of insiders and then submitted
61
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
to securities regulatory authorities, as well as strictly controlled the transmission scope of inside information,
further strengthened the security work of inside information. Upon Self-inspection, during this Reporting Period,
there were no particulars about insiders took advantages of inside information to purchase or sell shares of the
Company before the disclosure of major sensitive information that shall have an impact on the share price of the
Company, nor any investigation and punishment as well as rectification from the regulatory authority. From now
on, the Company will continuously strengthen to learn relevant rules and laws, scrupulously execute the
Management Rules for Insider Information and Insiders, standardize the corporate governance of the Company, do
well the work of preventing inside dealings.
Any significant incompliance with the regulatory documents issued by the CSRC governing the governance of
listed companies
□ Yes √ No
No such cases in this Reporting Period.
II Independence of businesses, personnel, asset, organizations and finance which are separate
from the controlling shareholder
The Company was independent from the controlling shareholder in business, personnel, assets, organization and
finance to realize that independent personnel, independent finance, complete assets, independent organization and
independent business.
1. In aspect of business: The Company was independent from the controlling shareholder with independent and
complete business and independent operation capability. There was no business which was same or competitive
with the controlling shareholder.
2. In aspect of personnel: The Company was complete independent from the controlling shareholder in terms of
labor and personnel, management on remuneration. All Senior Executives drew the remuneration from the
Company, and none held a post concurrently in shareholders’ company. Personnel of the Company are
independent, all ones signed labor contract with the Company. The Company was independent from the
shareholders or other related parties in personnel management, social security, salary etc.
3. In aspect of asset: The Company’s assets were complete and independent, the property relationship was clear.
There was no capital occupation by controlling shareholder, and assets of the Company were completely
independent from controlling shareholder.
4. In aspect of organization: The Company’s organization was independent, and the Company implemented rules
and regulations as well as responsibilities for all departments, formed independent responsibilities and rights,
scientific and rational internal control system. Independence of the Company on operation and management is free
from impact from controlling shareholders and other subordinated units. There were no controlling shareholders
intervene organization of the Company.
5. In aspect of finance: The Company’s finance was independent with independent finance department. The
Company established the independent finance settling system and financial management system, had its own
finance account and paid the tax in line with laws, run finance decision-making independently.
The controlling shareholder of the Company performed normatively with no conduct that intervened with the
operation decision-making and operation activities directly or indirectly over the shareholders’ general meeting,
however, the controlling shareholder could influence on the significant decision-making through the shares
62
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
holding.
III Horizontal competition
□ Applicable √ Not applicable
IV Annual and special meetings of shareholders convened during this Reporting Period
1. Meetings of shareholders convened during this Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
Announcement No.
2016-10 on the
Resolutions of the
2015 Annual
2015 Annual
Meeting of
Meeting of Annual 63.95% 04/22/2016 04/22/2016
Shareholders
Shareholders
disclosed on
www.cninfo.com.cn,
Securities News and
Ta Kung Pao
2. Special meetings of shareholders convened at the request of preference shareholders with resumed voting
rights
□ Applicable √ Not applicable
V Performance of independent directors in this Reporting Period
1. Attendance of independent directors in board meetings and meetings of shareholders
Attendance of independent directors in board meetings
Due presence in Presence by Absent for two
Presence on site Presence through
Independent director this Reporting telecommunicati Absence (times) consecutive
(times) a proxy (times)
Period (times) on (times) times
Li Jianxin 5 2 3 0 0 No
Liu Ninghua 5 2 3 0 0 No
Zhang Qi 5 2 3 0 0 No
Attendance of independent directors in
meetings of shareholders as non-voting 1
delegates (times)
Notes to any absence for two consecutive times:
N/A
63
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
2. Objections raised by independent directors on issues of the Company
Indicate by tick mark whether any independent directors raised any objections on issues of the Company.
□ Yes √ No
No such cases in this Reporting Period.
3. Other details about the performance of duties by independent directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the Company:
With attitude of credibility and diligence to the Company and all shareholders, independent directors was diligent
and responsible, reviewed all resolutions, and in line with their professional knowledge and capability, made
independent, objective and fair judgment away from influence from the Company and principal shareholders of
the Company. Also, independent directors expressed independent, objective and fair opinion on relevant events,
which made practical efforts to safeguard interests of the Company and minority shareholders.
VI Performance of duties by specialized committees under the Board during this Reporting
Period
The four special committees under the board—the Strategic Development and Investment Committee, the
Nomination Committee, the Remuneration and Appraisal Committee and the Audit Committee—according to
“Governance Principle of listed Company”, “Articles of Association”, “and Rules of Procedure of the Board of
Directors” and implementation rules of special committee, earnestly performed their duties.
1. Duty performance of strategic development and investment committee
During this Reporting Period, strategic development and investment committee paid attention to authorization of
the board to project development and financing, kept good contact with the management and had a good
knowledge of matters within their power.
2. Duty performance of remuneration and assessment committee
During this Reporting Period, remuneration and assessment committee earnestly performed their duties, kept good
contact with the management and conducted several communication with the management for relevant matters.
3. Duty performance of audit committee
During this Reporting Period, audit committee held on-the-spot working conference twice, listened to report of
Union Power CPAs Co., Ltd. (LLP) on audit work, deliberate preliminary audit opinion issued by Union Power
CPAs Co., Ltd. (LLP) and proposed their opinions about 2015 Financial Statement of the Company.
64
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
VII Performance of duties by the Supervisory Board
Indicate by tick mark whether the Supervisory Board found any risks to the Company during its supervision in
this Reporting Period.
□ Yes √ No
The Supervisory Board raised no objections in this Reporting Period.
VIII Appraisal and incentive for executive officers
Within this Reporting Period, the annual operating target plan 2016 was went forth to the management team by
the Board of Directors, of which the Company adopted appraisal method by the score combination of operation
index, category index and administrative goal. At the end of the fiscal year, the Board of Directors examined the
final score. For senior executives of the Company, the Company adopted annual salary system in accordance with
Management Measure for Annual Salary System of Directors, Supervisors and Senior Executives, which shall be
implemented after the Board of Directors completing fiscal examination.
IX Internal control
1. Serious internal control defects found in this Reporting Period
□ Yes √ No
2. Internal control self-evaluation report
Disclosure date of the internal control
03/31/2017
self-evaluation report
Index to the disclosed internal control
http://www.cninfo.com.cn
self-evaluation report
Total assets of the evaluated entities as a
99.00%
percentage in the consolidated total assets
Operating revenues of the evaluated
entities as a percentage in the consolidated 100.00%
operating revenues
Defect identification standards
Type Financial-report related Non-financial-report related
Indications of the serious defect of the If the following situation occurred, could
financial report were including: (1) to be recognized as the serious defect and
execute the misstatement correction of the other situation should be recognized as
Nature standard
great defect occurred on the reported and the important defect or the common
disclosed financial report by the Company; defect respectively according to the
(2) the audit institution discovered the influenced degree: (1) the
65
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
current financial report had great defect decision-making of the significant events
while the internal control of the Company of the Company lacked of the collective
didn’t found out during the operating democratic decision-making process or
process; (3) the supervision of the the collective democratic
Company’s Audit and Risk Committee and decision-making process was not
the internal audit department on the internal normative; (2) the decision-making of
control was invalid; (4) there was significant the Company was not scientific or the
corrupt practice among the Directors, decision-making occurred serious
Supervisors or Senior Management. mistakes; (3) the operating or the
Indications of the important defect of the decision-making seriously violated the
financial report were including: (1) didn’t national laws and regulations; (4) the
abide by the universally acknowledged Company occurred serious
accounting standard to choose and apply the environmental pollution or other events
accounting policies; (2) had not built up the seriously effected the social public
anti-fraud process and the control measures; interests; (5) the media frequently
(3) had not built up the corresponding occurred the significant negative news;
control mechanism or had not executed the (6) lacked of the important business
corresponding compensating control for the management system or the
accounting treatment which was systematicness of the system operation
unconventional or with special transaction; was invalid; (7) the constantly outflow of
(4) the control during the process of the the key management personnel and
financial report at the period-end existed one technical personnel of the Company; (8)
or multiple defects that could not guarantee the great or significant internal control
the compile of the financial report reach the defect of the Company could not be
goal of being real and complete. Common timely modified; (9) the Company
defect: refers to the other control defect constantly or plentifully occurred the
except for the above great defect and significant internal control defects; (10)
significant defect. other situation may lead the Company to
seriously deviate from the control target.
Serious defect: potential misstatement of the
The Company compared the magnitude
operating income≥1 % of the operating
of the direct property losses amount with
income of the consolidated statements of the
the net assets amount of the last fiscal
current year, potential misstatement of the
year to confirm the quantitative criteria
total assets amount≥0.25% of the total
of the internal control as the follows:
amount of the consolidated statements of the
serious defect: amount of the direct
current year. Important defect: 0.75% of the
property losses≥0.5% of the net assets
Quantitative standard operating income of the consolidated
amount of the last fiscal year; important
statements of the current
defect: 0.4% of the net assets amount of
year≤misstatement<1 % of the operating
the last fiscal year≤losses amount<0.5%
income of the consolidated statements of the
of the net assets amount of the last fiscal
current year; 0.2% of the total amount of the
year; common defect: losses
consolidated statements of the current
amount<0.4% of the net assets amount of
year≤misstatement<0.25 of the total amount
the last fiscal year
of the consolidated statements of the current
66
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
year. Common defect: misstatement of the
operating income<0.75% of the operating
income of the consolidated statements of the
current year, misstatement of the total assets
amount<0.2 of the total assets amount of the
consolidated statements of the current year
Number of serious financial-report-related
0
defects
Number of serious
0
non-financial-report-related defects
Number of important
0
financial-report-related defects
Number of important
0
non-financial-report-related defects
X Auditor’s report on internal control
√ Applicable □ Not applicable
Opinion paragraph in the auditor’s report on internal control
We believe that Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Auditor’s report on internal control
Disclosed
disclosed or not
Disclosure date 03/31/2017
Index to the disclosed auditor’s
http://www.cninfo.com.cn
report on internal control
Type of the auditor’s opinion Standard unqualified opinion
Serious non-financial-report-related
None
defects
Indicate by tick mark whether any modified opinions are expressed by the CPAs firm in its auditor’s report on the
Company’s internal control.
□ Yes √ No
Indicate by tick mark whether the auditor’s report on the Company’s internal control issued by the CPAs firm is
consistent with the self-evaluation report of the Board.
√ Yes □ No
67
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section X Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the
approval date of this Report or were due but could not be redeemed in full?
No.
68
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section XI Financial Report
I Auditor’s report
Type of auditor’s opinion Standard unqualified opinion
Date of signing the auditor’s report 03/30/2017
Name of the auditor Union Power CPAs Co., Ltd. (LLP)
No. of the auditor’s report Union Power Audit Report（2017）No. 010526
Name of CPA Tang Jiajun, Fan Guiming
Text of the Auditor’s Report
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.,
We have audited the accompanying financial statements of ShenZhen Properties & Resources Development
(Group) Ltd. (the “Company”), which comprise the Company’s and consolidated balance sheets as at December
31, 2016, the Company’s and consolidated income statements, the Company’s and consolidated cash flow
statements, the Company’s and consolidated statements of changes in shareholders’ equity for the year then ended,
as well as the notes to the financial statements.
1. The management’s responsibility for the financial statements
The management of the Company is responsible for the preparation and fair presentation of these financial
statements. Such a responsibility includes: (1) preparing financial statements according to the Accounting
Standards for Business Enterprises and make them a fair presentation; and (2) designing, implementing and
maintaining internal control relevant to the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
2. Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted
our audit in accordance with the Audit Standards for Chinese Registered Accountants, which require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks
69
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
assessments, the auditor considers the internal control related to the preparation of the financial statements so as to
design proper audit procedures. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for us to
express auditing opinion.
3. Auditor’s opinion
In our opinion, the financial statements of the Company have been prepared according to the Accounting
Standards for Business Enterprises in all material aspects, which give a fair view of the Company’s and
consolidated financial positions as at December 31, 2016 and the Company’s and consolidated operating results
and cash flows for the year then ended.
II Financial statements
Currency unit for the financial statements: RMB
1. Consolidated balance sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
December 31, 2016
Unit: RMB
Item December 31, 2016 December 31, 2015
Current assets:
Monetary funds 2,869,755,216.85 945,739,975.77
Settlement reserve
Interbank lendings
Financial assets at fair value through
profit/loss
Derivative financial assets
Notes receivable
Accounts receivable 31,564,219.86 38,772,146.41
Accounts paid in advance 120,532,275.38 28,415,733.43
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserve
Interest receivable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Dividends receivable
Other accounts receivable 9,542,311.30 11,619,503.47
Financial assets purchased under
agreements to resell
Inventories 2,585,658,521.65 2,466,342,278.85
Assets held for sale
Non-current assets due within one
year
Other current assets 10,977,557.15 174,382,120.00
Total current assets 5,628,030,102.19 3,665,271,757.93
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 17,503,714.14 14,500,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 36,751,891.12 34,526,177.41
Investment property 427,800,613.03 237,260,788.82
Fixed assets 73,932,007.89 85,929,516.37
Construction in progress
Engineering materials
Disposal of fixed assets 85,556.34
Productive living assets
Oil-gas assets
Intangible assets 85,487,580.95 92,640,083.99
R&D expenses
Goodwill
Long-term deferred expenses 1,496,391.11 2,024,722.07
Deferred tax assets 375,997,063.33 240,335,370.51
Other non-current assets 7,271,224.00 7,275,069.00
Total non-current assets 1,026,326,041.91 714,491,728.17
Total assets 6,654,356,144.10 4,379,763,486.10
Current liabilities:
Short-term borrowings 8,000,000.00
Borrowings from the Central Bank
Money deposits accepted and
71
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
inter-bank deposits
Interbank borrowings
Financial liabilities at fair value
through profit/loss
Derivative financial liabilities
Notes payable
Accounts payable 419,926,139.39 191,524,938.54
Accounts received in advance 2,231,321,227.65 652,369,778.20
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 67,340,897.51 63,791,816.49
Taxes payable 1,254,999,384.73 833,797,372.43
Interest payable 479,413.09
Dividends payable
Other accounts payable 132,082,174.54 128,243,079.68
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within one
121,243,352.00
year
Other current liabilities
Total current liabilities 4,105,669,823.82 1,999,449,750.43
Non-current liabilities:
Long-term borrowings 144,840,006.83
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Special payables
Provisions 5,201,315.32 834,999.50
Deferred income 16,379,403.41 19,072,625.05
72
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Deferred tax liabilities 14,487.51 23,985.24
Other non-current liabilities 115,794,291.23 114,773,265.38
Total non-current liabilities 137,389,497.47 279,544,882.00
Total liabilities 4,243,059,321.29 2,278,994,632.43
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 119,951,533.93 119,951,533.93
Less: Treasury shares
Other comprehensive income -697,548.70 -4,046,603.46
Special reserve
Surplus reserve 253,569,569.96 154,664,631.59
Provisions for general risks
Retained earnings 1,441,632,088.56 1,233,358,112.55
Equity attributable to owners of the
2,410,434,735.75 2,099,906,766.61
Company
Minority interests 862,087.06 862,087.06
Total owners’ equity 2,411,296,822.81 2,100,768,853.67
Total liabilities and owners’ equity 6,654,356,144.10 4,379,763,486.10
Legal representative: Chen Yugang Accounting head for this Report: Wang Hangjun
Head of the accounting department: Shen Xueying
2. Balance sheet of the Company
Unit: RMB
Item December 31, 2016 December 31, 2015
Current assets:
Monetary funds 1,566,655,340.88 296,196,656.86
Financial assets at fair value through
profit/loss
Derivative financial assets
Notes receivable
Accounts receivable 554,834.29 979,569.49
Accounts paid in advance 34,080,739.67
Interest receivable
73
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Dividends receivable 350,000,000.00
Other accounts receivable 1,387,640,781.32 1,766,392,354.21
Inventories 473,719,042.17 530,588,344.24
Assets held for sale
Non-current assets due within one
year
Other current assets 1,241,108.66 174,382,120.00
Total current assets 3,813,891,846.99 2,768,539,044.80
Non-current assets:
Available-for-sale financial assets 3,234,214.14 230,500.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 283,309,153.10 281,083,438.39
Investment property 352,884,137.98 157,390,561.34
Fixed assets 8,696,554.63 9,828,388.19
Construction in progress
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets
R&D expenses
Goodwill
Long-term deferred expenses 1,124,345.13 1,297,321.41
Deferred tax assets 163,663,557.65 29,561,006.63
Other non-current assets
Total non-current assets 812,911,962.63 479,391,215.96
Total assets 4,626,803,809.62 3,247,930,260.76
Current liabilities:
Short-term borrowings
Financial liabilities at fair value
through profit/loss
Derivative financial liabilities
Notes payable
Accounts payable 162,541,223.07 25,436,021.13
74
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Accounts received in advance 931,886,153.43 311,717,646.30
Payroll payable 9,532,230.14 11,467,533.06
Taxes payable 551,593,062.41 62,939,128.44
Interest payable 858,385.21
Dividends payable
Other accounts payable 758,082,233.48 1,163,240,004.88
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 2,413,634,902.53 1,575,658,719.02
Non-current liabilities:
Long-term borrowings 404,840,006.83
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions 5,201,315.32 834,999.50
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 5,201,315.32 405,675,006.33
Total liabilities 2,418,836,217.85 1,981,333,725.35
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 94,057,859.68 94,057,859.68
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 252,912,759.52 154,007,821.15
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Retained earnings 1,265,017,880.57 422,551,762.58
Total owners’ equity 2,207,967,591.77 1,266,596,535.41
Total liabilities and owners’ equity 4,626,803,809.62 3,247,930,260.76
3. Consolidated income statement
Unit: RMB
Item 2016 2015
1. Operating revenues 2,059,204,077.18 1,077,418,500.93
Including: Sales income 2,059,204,077.18 1,077,418,500.93
Interest income
Premium income
Fee and commission income
2. Operating costs 1,566,730,359.40 1,037,507,557.45
Including: Cost of sales 872,534,223.43 648,572,894.10
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and surtaxes 471,132,933.89 159,676,120.22
Selling expenses 47,306,701.76 41,941,165.94
Administrative expenses 99,528,601.79 102,968,126.79
Finance costs -22,407,438.75 -7,514,689.31
Asset impairment loss 98,635,337.28 91,863,939.71
Add: Profit on fair value changes (“-”
means loss)
Investment income (“-” means loss) 2,225,713.71 7,738,371.09
Including: Share of profit/loss of
2,225,713.71 1,637,238.00
associates and joint ventures
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) 494,699,431.49 47,649,314.57
Add: Non-operating income 1,476,298.90 171,619,115.05
Including: Profit on disposal of
33,279.06
non-current assets
76
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Less: Non-operating expense 4,968,073.06 2,876,737.49
Including: Loss on disposal of
182,886.11 601,245.35
non-current assets
4. Total profit (“-” means loss) 491,207,657.33 216,391,692.13
Less: Corporate income tax 136,350,415.59 59,571,725.42
5. Net profit (“-” means loss) 354,857,241.74 156,819,966.71
Net profit attributable to owners of
354,857,241.74 156,819,966.71
the Company
Minority interests’ income
6. Other comprehensive income net of tax 3,349,054.76 -40,461.93
Other comprehensive income net of
tax attributable to owners of the 3,349,054.76 -40,461.93
Company
6.1 Other comprehensive income
that will not be reclassified into
profit/loss
6.1.1 Changes in net liabilities
or assets with a defined benefit plan upon
re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
6.2 Other comprehensive income
to be subsequently reclassified into 3,349,054.76 -40,461.93
profit/loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss under
the equity method
6.2.2 Profit/loss on fair value
changes of available-for-sale financial -2,933,175.45
assets
6.2.3 Profit/loss on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective profit/loss on
cash flow hedges
6.2.5 Currency translation
3,349,054.76 2,892,713.52
differences
6.2.6 Other
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Other comprehensive income net of
tax attributable to minority interests
7. Total comprehensive income 358,206,296.50 156,779,504.78
Attributable to owners of the
358,206,296.50 156,779,504.78
Company
Attributable to minority interests
8. Earnings per share
8.1 Basic earnings per share 0.5954 0.2631
8.2 Diluted earnings per share 0.5954 0.2631
Where business mergers under the same control occurred in this Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB0.00.
Legal representative: Chen Yugang Accounting head for this Report: Wang Hangjun
Head of the accounting department: Shen Xueying
4. Income statement of the Company
Unit: RMB
Item 2016 2015
1. Operating revenues 1,409,651,839.78 61,440,361.37
Less: Operating costs 331,649,548.84 14,568,381.71
Taxes and surtaxes 446,918,517.54 7,657,509.70
Selling expenses 20,375,728.55 917,956.69
Administrative expenses 34,668,653.91 41,050,329.06
Finance costs -15,516,555.93 -7,854,726.72
Asset impairment loss -753,026.41 -31,370,041.72
Add: profit on fair value changes (“-”
means loss)
Investment income (“-” means
531,825,713.71 7,571,676.55
loss)
Including: Share of profit/loss of
2,225,713.71 1,637,238.00
associates and joint ventures
2. Operating profit (“-” means loss) 1,124,134,686.99 44,042,629.20
Add: Non-operating income 400,181.78 169,812,889.47
Including: Profit on disposal of
non-current assets
Less: Non-operating expense 4,385,760.80 1,323,166.82
Including: Loss on disposal of
103,611.83
non-current assets
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3. Total profit (“-” means loss) 1,120,149,107.97 212,532,351.85
Less: Corporate income tax 131,099,724.25 31,798,364.35
4. Net profit (“-” means loss) 989,049,383.72 180,733,987.50
5. Other comprehensive income net of
-2,933,175.45
tax
5.1 Other comprehensive income that
will not be reclassified into profit and
loss
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
5.2 Other comprehensive income to
be subsequently reclassified into -2,933,175.45
profit/loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss
under the equity method
5.2.2 Profit/loss on fair value
changes of available-for-sale financial -2,933,175.45
assets
5.2.3 Profit/loss on reclassifying
held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective profit/loss on cash
flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 989,049,383.72 177,800,812.05
7. Earnings per share
7.1 Basic earnings per share 1.6595 0.3033
7.2 Diluted earnings per share 1.6595 0.3033
5. Consolidated cash flow statement
Unit: RMB
Item 2016 2015
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
1. Cash flows from operating activities:
Cash received from sale of
3,738,338,252.83 1,696,592,242.82
commodities and rendering of service
Net increase in money deposits from
customers and interbank placements
Net increase in loans from the
Central Bank
Net increase in funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of financial
assets at fair value through profit/loss
Interest, fees and commissions
received
Net increase in interbank borrowings
Net increase in funds in repurchase
business
Tax refunds received
Cash received from other operating
31,716,157.80 14,524,590.42
activities
Subtotal of cash inflows from operating
3,770,054,410.63 1,711,116,833.24
activities
Cash paid for goods and services 624,777,127.52 574,324,242.80
Net increase in loans and advances to
customers
Net increase in funds deposited in the
Central Bank and interbank placements
Cash paid for claims of original
insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 314,804,865.42 308,224,325.62
Taxes paid 497,236,549.74 450,753,009.58
Cash paid for other operating
81,194,684.53 68,047,625.58
activities
Subtotal of cash outflows due to 1,518,013,227.21 1,401,349,203.58
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
operating activities
Net cash flows from operating activities 2,252,041,183.42 309,767,629.66
2. Cash flows from investing activities:
Cash received from retraction of
7,091,672.64
investments
Cash received as investment income
Net cash received from disposal of
fixed assets, intangible assets and other 139,247.90 966,686.25
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash received from other investing
activities
Subtotal of cash inflows from investing
139,247.90 8,058,358.89
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 4,654,746.40 38,285,548.55
assets
Cash paid for investment
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows due to
4,654,746.40 38,285,548.55
investing activities
Net cash flows from investing activities -4,515,498.50 -30,227,189.66
3. Cash flows from financing activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings 15,441,282.23 216,470,006.83
Cash received from issuance of
bonds
Cash received from other financing
activities
Subtotal of cash inflows from financing
15,441,282.23 216,470,006.83
activities
Repayment of borrowings 289,524,641.06 225,000,000.00
81
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Cash paid for interest expenses and
52,830,940.85 149,289,115.57
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority interests
Cash paid for other financing
104,500.00
activities
Sub-total of cash outflows due to
342,355,581.91 374,393,615.57
financing activities
Net cash flows from financing activities -326,914,299.68 -157,923,608.74
4. Effect of foreign exchange rate
3,403,855.84 2,757,607.83
changes on cash and cash equivalents
5. Net increase in cash and cash
1,924,015,241.08 124,374,439.09
equivalents
Add: Opening balance of cash and
933,337,815.77 808,963,376.68
cash equivalents
6. Closing balance of cash and cash
2,857,353,056.85 933,337,815.77
equivalents
6. Cash flow statement of the Company
Unit: RMB
Item 2016 2015
1. Cash flows from operating activities:
Cash received from sale of
2,063,440,554.67 334,263,329.67
commodities and rendering of service
Tax refunds received
Cash received from other operating
10,669,811.91 6,463,891.82
activities
Subtotal of cash inflows from operating
2,074,110,366.58 340,727,221.49
activities
Cash paid for goods and services 144,727,665.19 124,296,158.78
Cash paid to and for employees 23,303,772.00 22,684,201.36
Taxes paid 292,134,706.66 51,447,302.07
Cash paid for other operating
60,900,433.58 164,209,242.83
activities
Subtotal of cash outflows due to
521,066,577.43 362,636,905.04
operating activities
Net cash flows from operating activities 1,553,043,789.15 -21,909,683.55
2. Cash flows from investing activities:
Cash received from retraction of
6,736,638.10
investments
Cash received as investment income 179,600,000.00
82
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Net cash received from disposal of
fixed assets, intangible assets and other 4,980.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash received from other investing
activities
Subtotal of cash inflows from investing
179,600,000.00 6,741,618.10
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 464,355.20 82,194.00
assets
Cash paid for investment 1.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
activities
Subtotal of cash outflows due to
464,356.20 82,194.00
investing activities
Net cash flows from investing activities 179,135,643.80 6,659,424.10
3. Cash flows from financing activities:
Cash received from capital
contributions
Cash received as borrowings 15,441,282.23 128,470,006.83
Cash received from issuance of
bonds
Cash received from other financing
activities
Subtotal of cash inflows from financing
15,441,282.23 128,470,006.83
activities
Repayment of borrowings 420,281,289.06
Cash paid for interest expenses and
56,862,943.75 154,883,075.03
distribution of dividends or profit
Cash paid for other financing
activities
Sub-total of cash outflows due to
477,144,232.81 154,883,075.03
financing activities
Net cash flows from financing activities -461,702,950.58 -26,413,068.20
4. Effect of foreign exchange rate
-17,798.35 -176,125.01
changes on cash and cash equivalents
5. Net increase in cash and cash
1,270,458,684.02 -41,839,452.66
equivalents
83
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Add: Opening balance of cash and
296,196,656.86 338,036,109.52
cash equivalents
6. Closing balance of cash and cash
1,566,655,340.88 296,196,656.86
equivalents
7. Consolidated statement of changes in owners’ equity
2016
Unit: RMB
2016
Equity attributable to owners of the Company
Other equity
Other Retaine Minorit Total
Item instruments Less: General
Share Capital compre Special Surplus d y owners’
Prefer Perpet Treasur risk
capital reserve hensive reserve reserve earning interests equity
ence ual Other y shares reserve
income s
shares bonds
1. Balance at the 595,97 1,233,3 2,100,7
119,951 -4,046,6 154,664 862,087
end of the prior 9,092. 58,112. 68,853.
,533.93 03.46 ,631.59 .06
year 00 55 67
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Business
mergers under the
same control
Other
2. Balance at the 595,97 1,233,3 2,100,7
119,951 -4,046,6 154,664 862,087
beginning of the 9,092. 58,112. 68,853.
,533.93 03.46 ,631.59 .06
year 00 55 67
3. Increase/
decrease in the 3,349,0 98,904, 208,273 310,527
period (“-” means 54.76 938.37 ,976.01 ,969.14
decrease)
3.1 Total
3,349,0 354,857 358,206
comprehensive
54.76 ,241.74 ,296.50
income
3.2 Capital
increased and
reduced by owners
3.2.1
84
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
-146,58
3.3 Profit 98,904, -47,678,
3,265.7
distribution 938.37 327.36
3
3.3.1
98,904, -98,904,
Appropriation to
938.37 938.37
surplus reserve
3.3.2
Appropriation to
general risk
provisions
3.3.3
Appropriation to -47,678, -47,678,
owners (or 327.36 327.36
shareholders)
3.3.4 Other
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
85
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
595,97 1,441,6 2,411,2
119,951 -697,54 253,569 862,087
4. Closing balance 9,092. 32,088. 96,822.
,533.93 8.70 ,569.96 .06
00 56 81
2015
Unit: RMB
2015
Equity attributable to owners of the Company
Other equity Minorit
Other Total
Item instruments Less: General Retaine y
Share Capital compre Specific Surplus owners’
Prefer Perpet Treasur risk d interest
capital reserve hensive reserve reserve equity
ence ual Other y shares reserve earnings s
income
shares bonds
1. Balance at the 595,97 1,225,7 2,075,1
119,951 -4,006,1 136,591 862,087
end of the prior 9,092. 26,944. 04,749.
,533.93 41.53 ,232.84 .06
year 00 83 13
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Business
mergers under the
same control
Other
2. Balance at the 595,97 1,225,7 2,075,1
119,951 -4,006,1 136,591 862,087
beginning of the 9,092. 26,944. 04,749.
,533.93 41.53 ,232.84 .06
year 00 83 13
3. Increase/
decrease in the -40,461. 18,073, 7,631,1 25,664,
period (“-” means 93 398.75 67.72 104.54
decrease)
86
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3.1 Total
-40,461. 156,819 156,779
comprehensive
93 ,966.71 ,504.78
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
-149,18 -131,11
3.3 Profit 18,073,
8,798.9 5,400.2
distribution 398.75
9 4
3.3.1
18,073, -18,073,
Appropriation to
398.75 398.75
surplus reserve
3.3.2
Appropriation to
general risk
provisions
3.3.3
-131,11 -131,11
Appropriation to
5,400.2 5,400.2
owners (or
4 4
shareholders)
3.3.4 Other
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
87
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
595,97 1,233,3 2,100,7
119,951 -4,046,6 154,664 862,087
4. Closing balance 9,092. 58,112. 68,853.
,533.93 03.46 ,631.59 .06
00 55 67
8. Statement of changes in owners’ equity of the Company
2016
Unit: RMB
2016
Other equity instruments Other
Less: Retaine Total
Item Share Prefere Capital comprehe Special Surplus
Perpetu Treasury d owners’
capital nce Other reserve nsive reserve reserve
al bonds shares earnings equity
shares income
1. Balance at the
595,979, 94,057,85 154,007,8 422,551 1,266,596
end of the prior
092.00 9.68 21.15 ,762.58 ,535.41
year
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Other
2. Balance at the
595,979, 94,057,85 154,007,8 422,551 1,266,596
beginning of the
092.00 9.68 21.15 ,762.58 ,535.41
year
3. Increase/ 98,904,93 842,466 941,371,0
88
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
decrease in the 8.37 ,117.99 56.36
period (“-” means
decrease)
3.1 Total
989,049 989,049,3
comprehensive
,383.72 83.72
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
-146,58
3.3 Profit 98,904,93 -47,678,3
3,265.7
distribution 8.37 27.36
3
3.3.1
98,904,93 -98,904,
Appropriation to
8.37 938.37
surplus reserve
3.3.2
Appropriation to -47,678, -47,678,3
owners (or 327.36 27.36
shareholders)
3.3.3 Other
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
89
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
1,265,0
595,979, 94,057,85 252,912,7 2,207,967
4. Closing balance 17,880.
092.00 9.68 59.52 ,591.77
57
2015
Unit: RMB
2015
Other equity instruments Other
Less: Retaine Total
Item Share Prefere Capital comprehe Special Surplus
Perpetu Treasury d owners’
capital nce Other reserve nsive reserve reserve
al bonds shares earnings equity
shares income
1. Balance at the
595,979, 94,057,85 2,933,175 135,934,4 391,006 1,219,911
end of the prior
092.00 9.68 .45 22.40 ,574.07 ,123.60
year
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Other
2. Balance at the
595,979, 94,057,85 2,933,175 135,934,4 391,006 1,219,911
beginning of the
092.00 9.68 .45 22.40 ,574.07 ,123.60
year
3. Increase/
decrease in the -2,933,17 18,073,39 31,545, 46,685,41
period (“-” means 5.45 8.75 188.51 1.81
decrease)
90
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3.1 Total
-2,933,17 180,733 177,800,8
comprehensive
5.45 ,987.50 12.05
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
-149,18
3.3 Profit 18,073,39 -131,115,
8,798.9
distribution 8.75 400.24
9
3.3.1
18,073,39 -18,073,
Appropriation to
8.75 398.75
surplus reserve
3.3.2
-131,11
Appropriation to -131,115,
5,400.2
owners (or 400.24
4
shareholders)
3.3.3 Other
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
91
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
595,979, 94,057,85 154,007,8 422,551 1,266,596
4. Closing balance
092.00 9.68 21.15 ,762.58 ,535.41
III Company profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “Company” or “the
Company”) was incorporated based on the reconstruction of Shenzhen Properties & Resources Development Co.,
Ltd. after obtaining approval of ZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. The
registration number of Business License for Enterprises as Legal Person is ZQFZ No. 440301103570124. And the
credibility code for the Company after the business license reform is 91440300192174135N.
The registered capital of the Company was RMB541, 799,175 after bonus issue of shares on the basis of one share
for every existing 10 shares based on existing paid-in capital of the Company in 1996 and it changes to
RMB595,979,092 after bonus issue of shares on the basis of one share for every existing 10 shares based on
previous paid-in capital of RMB541,799,175 in 2009.
Up to 31 Dec. 2016, the registered capital of the Company was RMB595,979,092 and the paid-in capital was
RMB595,979,092.
1. Registered office, organization form and headquarter address of the Company
Organization form: joint-stock company with limited liability
Registered office: Shenzhen Municipal, Guangdong Province, PRC
Headquarter address: 39th and 42nd Floor, International Trade Center, Renmin South Road, Shenzhen.
2. Nature of the business and main business scope of the Company
The business scope of the Company and its subsidiaries includes development and sale of commodity premises,
construction and management of buildings, lease of properties, supervision of construction, domestic trading and
materials supply and marketing (excluding exclusive dealing and monopoly sold products and commodities under
special control to purchase).
The Company and the subsidiary (hereinafter referred to as “the Group” in total) mainly operates the development
of real estate; property management; buildings and the building devices maintainance, gargen afforest and
cleaning service; houses and building leasing; passenger traffits and leasing of motor vehicles; supervise and
management of the engineering; retails of the Chinese food, Western-style food and wines.
3. About the controlling shareholder of the Company and the Group
The parent company of the Company is Shenzhen Investment Holdings Co., Ltd., a solely state-funded limited
92
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
company. As a government department, Shenzhen State-owned Assets Supervision and Administration Bureau
manages Shenzhen Investment Holdings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality.
Thus, the final controller of the Company is Shenzhen State-owned Assets Supervision and Administration
Committee of Shenzhen Government.
4. Authorization and date of issuing the financial statements
The financial statements were approved and authorized for issue by the 13th Session of the 8th Board of the
Directors on 30 Mar. 2017.
Up to the end of this Reporting Period, there were 26 subsidiaries included in the consolidation financial statement,
and for the details, please refer to Note (IX) 1 herein.
For the changes of consolidation financial statement scope of this Reporting Period, please refer to Note (VIII)
herein.
IV Basis for the preparation of financial statements
1. Preparation basis
The Company recognizes and measures transactions occurred according to Chinese Accounting Standards – Basic
standard and other related accounting standards, prepares the financial statements based on accrual accounting and
the underlying assumption of going concern.
2. Continuation
There will be no such events or situations in the 12 months from the end of this Reporting Period that will cause
material doubts as to the continuation capability of the Company.
V Important accounting policies and estimations
Is the Company subject to any disclosure requirements for special industries?
Yes, for the Company engages in real estate.
Indication of specific accounting policies and estimations:
1. Statement of compliance with Enterprise accounting standards
The company's financial statements comply with the requirements of Accounting Standards; the company's
financial position, operating results, changes in shareholder's equity and cash flow, and other relevant information
are truly and completely disclosed in financial statements.
93
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
2. Fiscal period
The Group’s fiscal year starts on 1 Jan. and ends on 31 Dec. of every year according to the Gregorian calendar.
3. Operating cycle
A normal operating cycle refers to a period from the Group purchasing assets for processing to realizing cash or cash
equivalents. As for the construction of the real estate projects of the Group with rather long period, the normal
operating period more than 1 year owning to the industry characteristics, and although the relevant assets be
discounted, sold or consumed more than 1 year, should still be divided into the circulating assets; as for the
operating liabilities projects during the normal operation period even be liquidated over 1 year after the balance
sheet date, should be divided into the circulation liabilities. Besides, the normal operating period of other business of
the Group is shorter than 1 year. As for the normal operating period shorten than 1 year and the assets discounted
since the balance sheet date or the liabilities should be liquidated due within 1 year since the balance sheet date,
should be classified as the circulating assets or liabilities.
4. Recording currency
The Company and the domestic subsidiaries regard the Renminbi as the recording currency. The Hong Kong
subsidiary of the Company confirms the Hong Kong dollar as its recording currency according to the major
economic environment of the currency of its office place. When compiling the financial statements, the currency the
Company adopted was the Renminbi.
5. Accounting method of business combination under the common control and not under the common
control
(1) The Group adopts equity method for business combination under common control. The assets and liabilities that
the combining party obtained in a business combination shall be measured on their carrying amount in the combined
party on the combining date. The difference between the carrying amount of net assets acquired by the combining
party and the carrying amount of the consideration paid by it (or the total par value of the shares issued) shall be
adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
respectively. The business combination costs that are directly attributable to the combination, such as audit fees,
valuation fees, and legal service fees and so on are recognized in profit or loss during the current period when they
occurred. The bonds issued for a business combination or the handling fees, commissions and other expenses for
bearing other liabilities shall be recorded in the amount of initial measurement of the bonds or other debts. The
handling fees, commissions and other expenses for the issuance of equity securities for the business combination
shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be
offset. Where a relationship between a parent company and a subsidiary company is formed due to a business
combination, the parent company shall, on the combining date, prepare consolidated financial statements according
to the accounting policy of the Company; the period of the adjustment of the compared data of the consolidation
financial statement should earlier than the later time under the control of the ultimate control party of the combine
party and the combined party.
94
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(2) The Company adopts acquisition method for business combination not under common control. The acquirer
shall recognize the initial cost of combination under the following principles: ①When business combination is
achieved through a single exchange transaction, the cost of a business combination is the aggregate of the fair values,
at the date of exchange, of assets given, liabilities incurred or assumed, and equity securities issued by the acquirer,
in exchange for control of the acquiree; ②For the business combination involved more than one exchange
transaction, accounting treatments will be carried out separately on individual and consolidated financial statements
as the followings:
A. In the individual financial statements, the initial investment cost changed to be measured by the cost method of
the particular project will be the sum of book value of equity in the entity before the date of acquisition and the
newly added investment cost; the other comprehensive revenues recognized by adopting the equity method of the
equity investment before the purchase date, should be executed accounting treatments based on the same basic of
the relevant assets or liabilities directly disposed by the purchasers when disposing the investment. The equity
investment held before the purchase date which is executed the accounting treatments according to the relevant
regulations of No. 22 ASBE-Recognition and Measurement of the Financial Instruments, the accumulative fair
value changes originally included into the other comprehensive income should be transferred into the current gains
and losses by adopting the cost method.
B. In the consolidated financial statements, the share equity in the acquired entity before the date of acquisition is
recalculated upon the fair value of the equity at the date of acquisition. The balance between the fair value and book
value shall be accounted into current investment income account; when the share equity before the date of
acquisition involves with other integrated gains, such gains are transferred into investment income account of the
period when it occurred. Within the notes of financial statement, the Company shall be disclosed the fair value (on
the merger date) of the shareholdings of the bargainer hold and profits or losses recognized by the revaluation.
③Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
occurred relating to the merger of entities are accounted into current income account when occurred; the transaction
fees of equity certificates or liability certificates issued by the purchaser for payment for the acquisition are
accounted at the initial amount of the certificates. ④Where a business combination contract or agreement provides
for a future event which may adjust the cost of combination, the Group shall include the amount of the adjustment in
the cost of the combination at the acquisition date if the future event leading to the adjustment is probable and the
amount of the adjustment can be measured reliably.
The Group shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an
enterprise for a business combination in light of their fair value, and shall record the balances between them and
their carrying amounts into the profits and losses at the current period.
The acquirer shall distribute the combination costs on the acquisition date, and shall recognize all identifiable
assets, liabilities and contingent liabilities it obtains from the acquiree. (1) the acquirer shall recognize the
difference that the combination costs are over the fair value of the identifiable net assets obtained from acquiree as
goodwill; (2) if the combination costs are less than the fair value of the identifiable net assets obtained from
acquiree, the acquirer shall reexamine the measurement of the fair values of the identifiable assets, liabilities and
contingent liabilities obtained from the acquiree as well as the combination costs; and then after the reexamination,
the result is still the same, the difference shall be recorded in the profit and loss of the current period.
Where a relationship between a parent company and a subsidiary company is formed due to a business
combination, the parent company shall prepare accounting books for future reference, which shall record the fair
value of the identifiable assets, liabilities and contingent liabilities obtained from the subsidiary company on the
acquisition date. When preparing consolidated financial statements, it shall adjust the financial statements of the
subsidiary company on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities
95
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
determined on the acquisition date according to the Group’s accounting policy of “Consolidated financial
statement”.
6. Methods for preparing consolidated financial statements
(1) Consolidation scope
The consolidation scope for financial statements is determined on the basis of control, including the annual
financial statement up to 31 Dec. 2016 of the Company and whole subsidiaries. The consolidated financial
statements comprise the financial statements of the Group and its subsidiaries. A subsidiary is an enterprise or
entity controlled by the Group (including the segmental part among the enterprises and investees as well as the
structuralized main bodies etc.) The term “control” is the power of the Group upon an investee, with which it can
take part in relevant activities of the investee to obtain variable returns and is able to influence the amount of
returns.
(2) Methods for preparing the consolidated financial statements
The Company compiles the consolidation financial statement according to other relevant materials based on the
financial statement of itself and its subsidiaries.
The Company regards the whole enterprise group as an accounting main body when compiling the consolidation
financial statement to reflect the whole financial conditions, operation results and cash flows according to the
requirements of the recognition, measurement and presentation of the relevant ASBE and the unitize accounting
polices.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting
period of the Group during the preparation of the consolidated financial statements, where the accounting policies
and the accounting periods are inconsistent between the Group and subsidiaries. For a subsidiary acquired from a
business combination not under the same control, the individual financial statements of the subsidiary are adjusted
based on the fair value of the identifiable net assets at the acquisition date.
(3) Statement of minority interests and profits or losses
The portion of the equity of the subsidiaries that are not owned by the parent is presented as minority interest in
the consolidated balance sheet.
The portion of the profit or loss of the subsidiaries that are not owned by the parent is presented as minority
interest in the consolidated income statement.
(4) Accounting treatment of excess losses
When the share of losses attributable to the minor shareholders has exceeded their shares in the shareholders’
equity at the beginning of term, the shareholders’ equity shall be deducted thereof.
(5) Accounting treatment on increase or decrease of the subsidiaries during this Reporting Period
For any subsidiary acquired by the Company through business combination under the common control, when the
consolidated balance sheet for the current period are being prepared, the amount at the beginning of the period in
the consolidated balance sheet is made corresponding modification. For addition business combination not under
common control during this Reporting Period, the Company makes no adjustment for the amount at the beginning
of the period in the consolidated balance sheet. When disposing subsidiary during this Reporting Period, the
Company makes no adjustment for the amount at the beginning of the period in the consolidated balance sheet.
For any subsidiary acquired by the Company through business combination under the common control, when the
consolidated income statement for the current period are being prepared, revenue, expense and profit for the
period from the beginning of the consolidated period to the year end of this Reporting Period are included in the
consolidated income statement, and included the consolidate cash flow from the period-begin to the period-end of
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
the subsidiary into the consolidate cash flow statement. For addition business combination not under common
control during this Reporting Period, revenue, expense and profit for the period from acquisition date to the year
end of this Reporting Period is included in the consolidated income statement and included the consolidate cash
flow from the purchasing date to the period-end of the subsidiary into the consolidate cash flow statement. When
disposing subsidiary during this Reporting Period, revenue, expense and profit for the period from the beginning
to the disposal date are included in the consolidated income statement.
When losing the control right of the original subsidiary owing to the disposing of party equity investment or other
reasons, for the remaining equity investment after the disposing, should be remeasured according to the fair value
of the date of losing the control right. The amount of the sum between the consideration of disposing the equity
and the fair value of the remaining equity that minus the balance between the shares of net assets that gained from
the original subsidiaries by continuously calculation according the original shareholding ratio since the purchasing
date should accrued into the current investment benefits of losing the control right. The other comprehensive
benefits related to the equity investment of the original subsidiaries should be transferred into the current
investment benefits when losing the control right.
The balance between the newly gained long-term equity investment owning to the purchasing of the minority
equities and the net identifiable assets enjoyed from the subsidiaries according to the newly increased
shareholding ratio, and the balance between the dispose of remuneration which gained from the partly depose of
the equity investment of the subsidiaries under the situation of not losing the control right and the corresponding
shares of net assets from the subsidiaries when disposing the long-term equity investment, should both adjust the
share premium of the capital surplus of the consolidate balance sheet. If the share premium of the capital surplus
is not sufficient for adjustment, retained earning is adjusted respectively.
(6) Disposal on consolidation statement of disposing the equity step by step till lose the control right
If the each transaction of disposing the equity investment of the subsidiaries till lose the control right which
belongs to package deal, each transaction would be executed accounting treatment as a transaction of disposing
the subsidiaries that lose the control right; however, before losing the control right, for the balance between each
disposal of the remuneration and the corresponding shares of net assets of investing the subsidiary, would be
confirmed as other comprehensive benefits in the consolidate financial statement and would be transferred into the
current gains and losses of losing the control right when losing it. If not belongs to the package deal, before losing
the control right, or when losing it, should execute the accounting treatment according to the aforesaid situation of
not losing the control right to dispose party equity investment of the subsidiaries as well as according to the
accounting policy of losing the control right of the original subsidiaries.
If the regulations, conditions and its economic influences of each deal of disposing the equity investment of the
subsidiary met with following one or more kinds of situations, it indicated that the multiple transactions would
consolidate as package deal for accounting treatment: ①these transactions are formatted under the situation of
contemporary or considering of the mutual influences; ②only the entirety of these transactions could achieve a
complete commercial result; ③the happen of one transaction depends on at least the happen of other one
transaction; ④to see independently of one transaction is not economic while to considered with other transactions
are economic.
Execute the accounting treatment of the several financial statements of disposing the equity step by step till lose
the control right according to the accounting policy of disposing the long-term equity investment.
7. Classification of joint arrangements and accounting treatment of joint operations
(1) Category of joing arrangements
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A joint arrangement refers to an arrangement jointly controlled by two participants or above. The Group classifies
joint arrangements into joint operations and joint ventures according to its rights and duties in the joint
arrangements. A joint operation refers to a joint arrangement where the Group enjoys assets and has to bear
liabilities related to the arrangement. A joint venture refers to a joint arrangement where the Group is only entitled
to the net assets of the arrangement.
The joint arrangement achieves not through the individual main body should be divided as joint operation.
Individual main body refers to the entity owns individual distinguishable financial structure, including the
individual legal entities and the entities without legal entity qualification but gains the legal permits. The joint
arrangement achieves through individual main body is usually divided into the joint venture, but for the joint
arrangement with definite evidence indicants that meet with any condition of the followings and meet with the
regulations of the relevant laws and regulations should be divided into joint operation; the legal form of other joint
arrangement indicates that, the jointly owned party respectively enjoys the rights and burdens the obligations of
the relevant assets and liabilities among the arrangement; the clauses of the contacts of the joint arrangement
agrees that, the jointly owned party respectively enjoys the rights and burdens the obligations of the relevant
assets and liabilities among the arrangement; other relevant facts and situation indicates that, the jointly owned
party respectively enjoys the rights and burdens the obligations of the relevant assets and liabilities among the
arrangement, for example, the jointly owned party enjoys almost all of the output related to the joint arrangement
and the liquidation of the liabilities of the arrangement constantly depends on the support of the jointly owned
party. It’s forbidden to regard the jointly owned party which provides the liabilities for the joint arrangement as it
has the responsibility to bear the relevant liabilities. For the jointly owned party takes the responsibility to pay the
contributive obligations for the joint arrangement, not be considered to undertake the relevant liabilities related to
the arrangement. For the relevant facts and the changes of the situation leads the rights enjoyed and the liabilities
undertook amount the joint arrangement change, the Group should re-assess the category of the joint arrangement.
For the structure agreement setting various joint arrangements for achieving different activities, the Group
respectively recognizes each category of the joint arrangement.
For the details of the basis of recognizing the joint control and the accounting policies of the measurement of the
joint venture, please refer to Notes (V) 13.
(2) Accounting treatment of joint operations
The following projects related to the interests portion among the joint operation recognized by the Group and be
executed according to the regulations of the relevant ASBE: recognizes the assets held alone and the assets joint
held by recognizing accoridng to the portion; recognizes the jointly-held assets and jointly-borne liabilites
according to the Group’s stake in the joint operation; recognizes the income from sale of the Group’s share in the
output of the joint operation; recognizes the income from sale of the joint operation’s outputs accoridng to the
Group’s stake in it; and recognizes the expense solely incurred to the Group and the expense incurred to the joint
operation according to the Group’s stake in it.
When the Group, as a joint operator, transfers or sells assets (except for the assets constituing business) to the
joint operation, before the assets are sold to a third party, the Group only recognizes the share of the other joint
operators in the gains and losses arising from the sale. Where impairment occurs to the assets as prescribed in
, the Group shall fully recognizes
the loss. When the Group, purchases assets from the joint operation (except for the assets constituing business) to
the joint operation, before the assets are sold to a third party, the Group only recognizes the share of the other joint
operators in the gains and losses arising from the sale. Where impairment occurs to the assets as prescribed in
, the Group shall fully recognizes
the loss according to its stake in the joint operation for a purchase of assets from the joint operation.
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If the Group attributes to the participate party without joint control on the joint operation,if enjoys the relevant
assets and undertakes the relevant liabilities of the joint operation, should execute accounting treatment according
to the above principles; otherwise, should execute the accounting treatment according to the accounting policies of
the measurement of the financial instruments or the long-term equity investment formulated by the Group.
8. Recognition standard for cash and cash equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for
cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments,
which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign currency businesses and translation of foreign currency financial statements
The foreign currency transactions are both discounted as recording currency according to the spot rate on the
trading date (ususally refers to the middle price of the foreign exchange quotation on that very date issued by
People’s Bank of China, similarly hereinafter).
(1) Treatment of foreign currency exchange difference
On balance sheet date, the Group accounts for monetary and non-monetary items denominated in foreign
currencies as follows: a) monetary items denominated in foreign currencies are translated at the foreign exchange
rates ruling at the balance sheet date. Foreign exchange gains and losses arising from the difference between the
balance sheet date exchange rate and the exchange rate ruling at the time of initial recognition or the exchange rate
ruling at the last balance sheet date are recognized in income statement; b) Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the current exchange rates ruling at the
transaction dates. Non-monetary items denominated in foreign currencies that are stated at fair value are translated
using the current exchange rates ruling at the dates the fair value was determined, the difference between the
amount of functional currency after translation and the original amount of functional currency is treated as part of
change in fair value (including change in exchange rate) and recognized in income statement. During the
capitalization period, exchange differences arising from foreign currency borrowings are capitalized as part of the
cost of the capitalized assets.
(2) Translations of financial statements in foreign currencies
The Group translates the financial statements of its foreign operation in accordance with the following provisions:
a) the asset and liability items in the balance sheets shall be translated at a spot exchange rate ruling at the balance
sheet date. Among the owner's equity items, except the ones as “retained earnings”, others shall be translated at
the spot exchange rate ruling at the time when they occurred; b) The income and expense items in the income
statements shall be translated at an exchange rate which is determined in a systematic and reasonable way and is
approximate to the spot exchange rate (calculated by the average of starting rate and closing rate on this Reporting
Period) ruling at the transaction date. The foreign exchange difference arisen from the translation of foreign
currency financial statements shall be presented separately under the owner's equity in the balance sheet. The
translation of comparative financial statements shall be subject to the aforesaid provisions.
10. Financial instruments
(1) Recognition of the financial instruments
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The Group recognizes a financial asset or financial liability on its balance sheet when, and only when, the
Company becomes a party to the contractual provisions of the instrument.
(2) Category and measurement of the financial assets
① The Group based on the reasons such as risks management, investment strategies and objective of holding the
financial assets, classifies the financial assets into the following four categories: a) financial assets at fair value
through profit or loss; b) held-to-maturity investments; c) loans and receivables; and d) available-for-sale financial
assets.
A. Financial assets measured by fair value and its changes included in the current gains and losses
Financial assets measured by fair value and its changes included in the current gains and losses, including trading
financial assets and the financial assets appointed to be measured by fair value with its changes included in the
current gains and losses of the initial recognition.
The financial assets meeting any of the following requirements shall be classified as transactional financial assets：
A. The purpose to acquire the said financial assets is mainly for selling them in the near future; B. Forming a part
of the identifiable combination of financial instruments which are managed in a centralized way and for which
there are objective evidences proving that the enterprise may manage the combination by way of short-term profit
making in the near future; C. Being a derivative instrument, excluding the designated derivative instruments
which are effective hedging instruments, or derivative instruments to financial guarantee contracts, and the
derivative instruments which are connected with the equity instrument investments for which there is no quoted
price in the active market, whose fair value cannot be reliably measured, and which shall be settled by delivering
the said equity instruments.
The financial assets meeting any of the following requirements shall be designated as financial assets which are
measured at their fair values and the variation of which is recorded into the profits and losses of the current period
for initial recognition: A. the designation can eliminate or significantly reduce the difference of relevant gains and
losses between recognition and measurement causing from different bases for measurement of financial assets; B.
The official written documents for risk management and investment strategies of the enterprise have clearly stated
that it shall, manage, evaluate and report to important management personnel based on the fair value, about the
financial assets group or the group of financial assets which the financial assets are belong to.
For the equity instruments investment without quotation in the active market and the fair value could not be
reliable measured, should not be appointed as the financial assets measured by the fair value with its changes
included in the current gains and losses.
B. Held-to-maturity investment
The term "held-to-maturity investment" refers to a non-derivative financial asset with a fixed date of maturity, a
fixed or determinable amount of repo price and which the enterprise holds for a definite purpose or the enterprise
is able to hold until its maturity.
C. Loans and the accounts receivables
Loans and the accounts receivables refer to non-derivative financial assets, which there is no quotation in the
active market, with fixed recovery cost or recognizable.
D. Available-for-sale financial assets
Available-for-sale financial assets refer to the non-derivative financial assts which appointed available for sale
when initially recognizes and the financial assets except for the above category of the financial assets.
After the Group classifies certain financial assets as the financial assets measured by fair value and included its
changes in the current gains and losses when initially recognized, should not re-classified as other financial assets;
other financial assets also should not be re-classified as the financial assets measured by fair value with its
changes be included in the current gains and losses.
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② The financial assets are initially recognized at fair value. Gains or losses arising from a change in the fair
value of a financial asset at fair value through profit or loss is recognized in profit or loss when it incurred and
relevant transaction costs are recognized as expense when it incurred. For other financial assets, the transaction
costs are recognized as costs of the financial assets.
③ Subsequent measurement of financial assets
A. A financial asset at fair value through profit or loss includes financial assets held for trading and financial
assets designated by the Group as at fair value through profit or loss. The Group subsequently measures the
financial asset at fair value through profit or loss at fair value and recognizes the gain or loss arising from a
change in the fair value of a financial asset at fair value through profit or loss as profit or loss in the current
period.
B. Held-to-maturity investments are measured at amortized cost using the effective interest method. A gain or loss
is recognized in profit or loss during the current period when the financial asset is derecognized or impaired and
through the amortization process.
C. Loans and receivables are measured at amortized cost using the effective interest method. A gain or loss is
recognized in profit or loss during the current period when the financial asset is derecognized or impaired and
through the amortization process.
D. Available-for-sale financial assets are measured at fair value and the gain or loss arising from a change in the
fair value of available-for-sale financial assets is recognized as capital reserve which is transferred into profit or
loss when it is impaired or derecognized. Interests or cash dividends during the holding period are recognized in
profit or loss for the current period. For the equity instruments investment without quotation in the active market
and the fair value could not be reliable measured and the derivative financial assets linked up with the equity
instruments and should be settled through handing over to the equity instruments, should be measured according
to the cost.
④ Impairment provision of the financial assets
A. The Group assesses the carrying amount of the financial assets except the financial asset at fair value through
profit or loss at each balance sheet date, if there is any objective evidence that a financial asset or group of
financial assets is impaired, the Group shall recognize impairment loss.
B. The objective evidences that the Group uses to determine the impairment are as follows:
a) significant financial difficulty of the issuer or obligor;
b) a breach of contract, such as a default or delinquency in interest or principal payments;
c) the lender, for economic or legal reasons relating to the borrower's financial difficulty, granting to the borrower
a concession that the lender would not otherwise consider;
d) it becoming probable that the borrower will enter bankruptcy or other financial reorganization;
e) the disappearance of an active market for that financial asset because of financial difficulties;
f) observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of
financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the
individual financial assets in the group, including: (i) Adverse changes in the payment status of borrowers in the
group or (ii) an increase in the unemployment rate in the geographical area of the borrowers, a decrease in
property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the
borrowers.
g) significant changes with an adverse effect that have taken place in the technological, market, economic or legal
environment in which the borrower operates, and indicates that the cost of the investment in the equity instrument
may not be recovered;
h) a significant or non-temporary decrease in fair value of equity investment instruments;
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i) other objective evidences showing the impairment of the financial assets.
C. Measurement of impairment loss of financial assets
a) held-to-maturity investments, loans and receivables
If there is objective evidence that an impairment loss on loans and receivables or held-to-maturity investments
carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the
asset's carrying amount and the present value of estimated future cash flows. The amount of the loss is recognized
in profit or loss of the current period.
The Group assesses whether objective evidence of impairment exists individually for financial assets that are
individually significant, and individually or collectively for financial assets that are not individually significant. If
the Group determines that no objective evidence of impairment exists for an individually assessed financial asset,
whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics
and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which
an impairment loss is or continues to be recognized are not included in a collective assessment of impairment.
The Group performs impairment test for receivables and provide bad debt provisions at the balance sheet date. For
the individually significant receivables and not individually significant receivables, the impairment tests are both
carried on individually. If there is objective evidence that an impairment loss on loans and receivables, the Group
provides provision for impairment loss for the amount which is measured as the difference between the asset's
carrying amount and the present value of estimated future cash flows.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognized, the previously recognized impairment loss of financial
asset measured at amortized cost is be reversed. The amount of the reversal is recognized in profit or loss of the
current period.
b) Available-for-sale financial assets
The Group takes the individual investment of impairment test for available-for-sale financial assets. On the
balance sheet date, it could judge whether the fair value of available-for-sale financial assets are seriously or
non-temporary decline: if the decline of the fair value of the individual available-for-sale financial assets exceeds
50% of the cost, or had continuously declined for over 12 months, should be recognized the available-for-sale
financial assets had decreased and should recognized the impairment losses according to the impairment provision
for the balance between the cost and the fair value. The cost at the period-end of available-for-sale financial assets
is the amortized cost which is initially measured according to the investment cost when receiving and is calculated
by the weighted average method when selling.
When a decline in the fair value of an available-for-sale financial asset has been recognized directly in equity, the
cumulative loss that had been recognized directly in equity is removed from equity and recognized in profit or loss
even though the financial asset has not been derecognized.
If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is
not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to
and must be settled by delivery of such an unquoted equity instrument, the amount of the impairment loss is
measured as the difference between the carrying amount of the financial asset and the present value of estimated
future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment
losses are recognized in the profit or loss of the current period.
If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the
increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss,
the impairment loss is reversed, with the amount of the reversal recognized in profit or loss of the current period.
Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available for
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sale is not reversed through profit or loss. For impairment loss has been incurred on an unquoted equity
instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative
asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the impairment loss
is not reversed through profit or loss.
(3) Classification and measurement of financial liabilities
① The financial liabilities held by the Group are divided into the financial liabilities measured at fair values and
whose changes are recorded in current gains and losses and other financial liabilities.
Financial liabilities measured by fair value and its changes included in the current gains and losses, including
trading financial liabilities and the financial liabilities appointed to be measured by fair value with its changes
included in the current gains and losses of the initial recognition.
The financial liabilities meeting any of the following requirements shall be classified as transactional financial
liabilities：A. The purpose to acquire the said financial liabilities is mainly for selling them in the near future; B.
Forming a part of the identifiable combination of financial instruments which are managed in a centralized way
and for which there are objective evidences proving that the enterprise may manage the combination by way of
short-term profit making in the near future; C. Being a derivative instrument, excluding the designated derivative
instruments which are effective hedging instruments, or derivative instruments to financial guarantee contracts,
and the derivative instruments which are connected with the equity instrument investments for which there is no
quoted price in the active market, whose fair value cannot be reliably measured, and which shall be settled by
delivering the said equity instruments.
The financial liabilities meeting any of the following requirements shall be designated as financial liabilities
which are measured at their fair values and the variation of which is recorded into the profits and losses of the
current period for initial recognition: A. the designation can eliminate or significantly reduce the difference of
relevant gains and losses between recognition and measurement causing from different bases for measurement of
financial assets; B. The official written documents for risk management and investment strategies of the enterprise
have clearly stated that it shall, manage, evaluate and report to important management personnel based on the fair
value, about the financial liabilities group or the group of financial liabilities which the financial liabilities are
belong to; for the blender instruments including one or more items of derivative instruments, unless there no
significant changes of the cash flow of the blender instruments by the embedded derivatives, or the embedded
derivative instruments parentally should be stripped off from the relevant blender instruments; including the
blender instruments that embedded into the derivative instruments needed to be stripped out but failed to execute
individual measurement when acquired or on the follow-up balance sheet date.
After the Group classifies certain financial liabilities as the financial liabilities measured by fair value and
included its changes in the current gains and losses when initially recognized, should not re-classified as other
financial liabilities; other financial liabilities also should not be re-classified as the financial liabilities measured
by fair value with its changes be included in the current gains and losses.
② Financial liabilities are initially measured at fair value. For the financial liability at fair value through profit or
loss at its fair value, relevant transaction costs are recognized as expense when it incurred. For the other financial
liabilities, relevant transaction costs are recognized as costs.
③ Subsequent measurement of financial liabilities
A. The Group recognizes a financial liability at fair value through profit or loss at its fair value. A gain or loss of
change in fair value is recognized in the profit or loss of the current period.
B. Other financial liabilities are measured by amortized cost using effective interest rate.
(4) Recognition and measurement for transfer of financial assets
The Group derecognizes financial assets when the Group transfers substantially all the risks and rewards of
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ownership of the financial assets. On derecognizing of a financial asset in its entirety, the difference between the
follows is recognized in profit or loss of the current period.
① the carrying amount of transferring financial assets;
② the sum of the consideration received and any cumulative gain or loss that had been recognized directly in
equity (including financial assets transferred to available for sale category).
If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognizing in its
entirety, the previous carrying amount of the larger financial asset is allocated between the part that continues to
be recognized and the part that is derecognized, based on the relative fair values of those parts on the date of the
transfer. The difference between the follows is recognized in profit or loss of the current period.
① the carrying amount allocated to the part derecognized;
② the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to it
that had been recognized directly in equity (including financial assets transferred to available for sale category).
A cumulative gain or loss that had been recognized in equity is allocated between the part that continues to be
recognized and the part that is derecognized, based on the relative fair values of those parts.
If a transfer does not qualify for derecognizing, the Group continues to recognize the transferred asset in its
entirety and shall recognize a financial liability for the consideration received.
When the Group continues to recognize a financial asset to the extent of its continuing involvement, the Group
also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis
that reflects the rights and obligations that the Group has retained.
(5) De-recognition of financial liabilities
If the whole or partly of the current obligation of the financial liabilities of the Group is relieved, should
derecognize the financial liabilities or partly of it. The Group signs an agreement with the creditors is of the
method by undertaking the new financial liabilities to replace the current financial liabilities. if the new financial
liabilities are different from the current one on the essence of contract terms, should derecognize the current
financial liabilities and recognize the new one at the same time.
If the whole or partly of the financial liabilities had derecognized, should derecognize balance between partly of
the book value and the paid consideration (including the turned out non-cash assets or the new financial liabilities)
and accrued into the current gains and losses.
(6) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
As for the financial assets and financial liabilities satisfy the following conditions at the same time, should be
listed as the net amount within the balance sheet after the mutual offset: the Group had the legal right of the offset
recognized amount and the right was executable for the moment; the Group planed to settle by net amount or at
the same time discounted the financial assets and liquidated the financial liabilities. For the transfer of the
financial assets not satisfy the de-recognition conditions, the transfer-out party should not offset the transfer
financial assets and the relevant liabilities.
11. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made
individually
Judgement basis or monetary standards of provision for bad Accounts receivable with individual amount of more than 2
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debts of the individually significant accounts receivable million (including 2 million).
The Group made an independent impairment test on receivables
with significant single amounts; if there was objective evidence
indicated that the impairment had occurred should recognize the
Method of individual provision for bad debts of the individually
impairment losses and should withdraw the bad debt provision.
significant accounts receivable
The financial assets without impairment by independent
impairment test should be included in financial assets portfolio
with similar credit risk to take the impairment test.
(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
Name of portfolios Bad debt provision method
Portfolios 1 (accounts receivable among the companies within
Other method
the consolidated scope of the Group)
Portfolios 2 (accounts receivable except for the portfolios 1
which had not been impaired after the independent test, and the
Company analyzed and recognized the ratio of the withdrawal of
the bad debt provision combined with the current situation and
Aging of accounts
based on the actual losses rate of the accounts receivable group
which possessed the similar credit risk characteristics divided
according to the aging phase that were the same as or similar to
the previous years)
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Age
receivable receivable
Within 1 year (including 1 year) 3.00% 3.00%
1-2 years 10.00% 10.00%
2-3 years 30.00% 30.00%
3-4 years 50.00% 50.00%
4-5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
In the groups, adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, adopting other methods to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Name of portfolios
receivable receivable
Portfolios 1 0.00% 0.00%
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(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
individually
The Group made independent impairment test on receivables
Reason of individually withdrawing bad debt provision with insignificant amount but with special impairment indicated
by objective evidence.
The impairment test is carries out individually, the Company
recognizes provision for impairment loss for the amount which is
Withdrawal method for bad debt provision measured as the difference between the asset's carrying amount
and the present value of estimated future cash flows, and
withdraws relevant bad debts provision.
12. Inventory
Is the Company subject to any disclosure requirements for special industries?
Yes, for the Company engages in real estate.
(1) Classification of inventory: inventory of the Group including the finished products or commodities held in the
daily activities for sales, the unfinished products in the production process, the materials consumed in the
production process or the process of providing the labor etc. Which are specific divided as: raw materials, finished
goods, and low-value consumption goods, land use right held for real estate development, properties under
development and completed properties for sale.
(2) Reorganization of inventory: the Company confirms the inventory when meeting the following conditions at
the same time:
① the economic benefits related to the inventory possibility would flow into the enterprise;
② the cost of the inventory could be reliably calculated.
(3) Valuation method of inventories acquiring and issuing: Property inventories are measured at actual cost
incurred, comprising the borrowing cost designated for real estate development before completion of developing
properties. Completed saleable property inventories are measured using average unit area cost method. Other
kinds of inventories are measured at actual cost incurred, and when the inventories are transferred out or issued
for use, cost of the inventories is determined using weighted average cost method.
(4) Amortization method of low-value consumption goods and wrappage: the low-value consumption goods and
wrappage should adopt the one time amortization according to the actual situation when requiring.
(5) Measurement of the inventories at the period-end: on the balance sheet date, the inventory should be measured
according to the lower one between the cost and the net realizable value, if the inventory cost higher than the net
realizable value, should withdraw the falling provision of the inventory and include in the current gains and
losses.
① Estimation of net realizable value:
Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are
made, of the amount the inventories are expected to realize. These estimates take into consideration the purpose
for which the inventory is held and the influence of post balance sheet events.
Materials and other supplies held for use in the production are measured at cost if the net realizable value of the
finished goods in which they will be incorporated is higher than their cost. However, when a decline in the price
of materials indicates that the cost of the finished products will exceed their net realizable value, the materials are
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measured at net realizable value.
The net realizable value of inventories held to satisfy sales or service contracts is generally based on the contract
price.
If the quantity specified in sales contracts is less than the inventory quantities held by the Company, the net
realizable value of the excess shall be based on general selling prices.
②The Company generally provides provision for impairment of inventory individually.
For large quantity and low value items of inventories, cost and net realizable value are determined based on
categories of inventories.
Where certain items of inventory have similar purposes or end uses and relate to the same product line produced
and marketed in the same geographical area, and therefore cannot be practicably evaluated separately from other
items in that product line, costs and net realizable values of those items may be determined on an aggregate basis.
(6) The perpetual inventory system is maintained for stock system.
13. Divided as assets held for sale
(1) Recognition criteria of the assets held for sale
The Group recognizes the enterprise compose part (or the non-current assets, similarly hereinafter) that
simultaneously meets with the following conditions as assets held for sale:
① The compose part must be immediately sold only according to the usual terms of selling the compose part of
this kind under the current conditions;
② The relevant power institutions of the Group had made agreement on disposing the compose part, if receive
the approval from the shareholders accoridng to the rules, which equals to had received the approved of the
Annual General Meeting or the corresponding power institution;
③ The Group has signed the irrevocable transfer agreement with the assignee;
④ The sale transaction is highly probable to be completed within one year
(2) Accounting treatments of the assets held for sale
Non-current assets held for sale include single-item assets and disposal groups. Where a disposal group is an asset
group and the goodwill obtained in the business combination is apportioned to the asset group according to the
“Accounting Standard No. 8 for Business Enterprises—Asset Impairment”, or a disposal group is an operation in
such an asset group, the disposal group shall include the goodwill in the business combination.
As for the non-current assets and disposal group which be classiied held for sale by the Group, shall be measured
at the lower one of the net amounts of the book value and the fair value after deducting the disposal expense. If
the net amount the fair value minuses the disposal expenses is lower than the original book value, the difference
should be included in the current gains and losses as the assets impairment losses; if the held for sale is the
disposal group, the assets impairment losses should be firstly distributed to the goodwill and then included in the
current gains and losses by amortized according to the proportion and attributed to the other non-current assets
within the held for sale assets scope. The deferred income tax assets, the financial assets standarized by No. 22 of
ASBE-Recognition and Measurement of Financial Instruments, investment property and biological asstes
measured by fair value, contacts rights occurred from the insurance contacts and the assets occurred from the
employee benefits are not suit for the held for sale measurement, but be individually measured or be measured by
being regarding as part of certain disposal group according to the relevant criterion or the relevant accounting
policies formulated by the Group.
An asset or an disposal group was classified as held for sale before, but if it couldn’t meet the recognition
conditions for held-for-sale non-current asset later, the Company shall cease to classify it as held for sale, and
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measure it by the lower amount of the followings: (1) its carrying amount before the asset (or disposal group) was
classified as held for sale, adjusted for any depreciation, amortization or impairment before the asset (or disposal
group) being classified as held for sale; or (2) its recoverable amount on the date of the subsequent decision not to
sell.
14. Long-term equity investments
Long-term equity investement including the equity investment on the subsidiaries, joint ventures and associated
enterprises.
(1) Initial measument
The Group initially measures long-term equity investments under two conditions:
①For long-term equity investment arising from business combination, the initial cost is recognized under the
following principles.
A. If the business combination is under the common control and the acquirer obtains long-term equity investment
in the consideration of cash, non-monetary asset exchange or bearing acquiree’s liabilities, the initial cost is the
carrying amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between
cash paid, the carrying amount of the non-monetary asset exchanged and the acquiree’s liabilities beard and the
initial cost of the long-term equity investment should be adjusted to capital surplus. If the capital surplus is not
sufficient for adjustment, retained earning is adjusted respectively. The business combination costs that are
directly attributable to the combination, such as audit fees, valuation fees, legal service fees and so on are
recognized in profit or loss during the current period when they occurred.
If the acquirer issuing equity securities as consideration, the initial cost is the carrying amount of the proportion of
the acquiree’s owner’s equity at the acquisition date. Amount of share capital equal to the par value of the shares
issued. The difference between initial cost of the long-term equity investment and the par value of shares issued is
adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
respectively. The costs of issuing equity securities occurred in business combination such as charges of security
issuing and commissions are deducted from the premium of equity securities. If the premium is not sufficient for
deducting, retained earning is adjusted respectively.
B. If the business combination is not under the common control, the acquirer recognizes the initial cost of
combination under the following principles.
a) When business combination is achieved through a single exchange transaction, the cost of a business
combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree;
b) For a business combination that involves more than one exchange transaction, the initial investment cost is the
summation of the book value of the equity interests of the acquiree held by the Company before the acquisition
date and the new investment cost on the acquisition date;
c) The fees incurred for audit, legal consultation, valuation services and other management expenses are to be
recognized in profit or loss at the time such costs incurred. The transaction costs incurred by the acquirer for
issuing equity securities or debt securities as the consideration of the acquisition are to be recognized as the initial
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amount of such equity security or debt security.
d) Where a business combination contract or agreement provides for a future event which may adjust the cost of
combination, the Company shall include the amount of the adjustment in the cost of the combination at the
acquisition date if the future event leading to the adjustment is probable and the amount of the adjustment can be
measured reliably.
② For long-term equity investment obtained in any method other than business combination, the initial cost is
recognized under the following principles.
A. If the long-term equity investment is acquired in cash consideration, the initial cost is the actual payment which
includes direct expenses paid to acquire the long-term equity investment, taxes and other necessary expense.
B. If the long-term equity investment is acquired by issuing equity securities, the initial cost is the fair value of the
equity securities issued. However, cash dividends or profits that are declared but unpaid shall not be included in
the initial cost. Transaction costs arising from issuing or obtaining the Company’s own equity instruments, if
directly attributable to equity transactions, are deducted from equities.
C. For the long-term equity investment acquired through non-monetary asset exchange, the initial cost is
recognized according to “Accounting Standards for Business Enterprises No. 7-Non-monetary transactions”.
D. For the long-term equity investment acquired through debt restructuring, the initial cost is recognized
according to “Accounting Standards for Business Enterprises No. 12-Debt restructuring”.
③ If there are cash dividends or profits that are declared but unpaid included in the consideration paid, the cash
dividends or profits declared but unpaid shall be recognized as receivables separately rather than as part of initial
cost of long-term equity instruments no matter through which method the long-term equity investment is acquired.
(2) Subsequent measurement
The cost method is used among the individual financial statement when the long-term equity invetsment could
execute control on the investees.The equity method is used when the Company has joint control or significant
influence over the investee enterprise.
① The price of a long-term equity investment measured by adopting the cost method shall be included at its
initial investment cost and append as well as withdraw the cost of investing and adjusting the long-term equity
investment. As for the cash bonus or the profits be declared for distribution by the investees should be recognized
as the current investment income.
② If the initial cost of a long-term equity investment is more than the Company's attributable share of the fair
value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity
investment may not be adjusted. If the initial cost of a long-term equity investment is less than the Company's
attributable share of the fair value of the invested entity's identifiable net assets for the investment, the difference
shall be included in the current profits and losses and the cost of the long-term equity investment shall be adjusted
simultaneously.
After acquired the long-term equity investment, respectively recognize investment income and other
comprehensive income according to the net gains and losses as well as the portion of other comprehensive income
which should be enjoyed or be shared, and at the same time adjust the book value of the long-term equity
investment; corresponding reduce the book value of the long-term equity investment according to profits which be
declared to distribute by the investees or the portion of the calculation of cash dividends which should be enjoyed;
for the other changes except for the net gains and losses, other comprehensive income and the owners’ equity
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except for the profits distribution of the investees, should adjust the book value of the long-term equity investment
as well as include in the owners’ equities. The investing enterprise shall, on the ground of the fair value of all
identifiable assets of the invested entity when it obtains the investment, recognize the attributable share of the net
profits and losses of the invested entity after it adjusts the net profits of the invested entity. If the accounting
polices adopted by the investees is not accord with that of the Group, should be adjusted according to the
accounting policies of the Group and the financial statement of the investees during the accounting period and
according which to recognize the investment income as well as other comprehensive income. The Group shall
recognize the net losses of the invested enterprise until the book value of the long-term equity investment and
other long-term rights and interests which substantially form the net investment made to the invested entity are
reduced to zero. However, if the Group has the obligation to undertake extra losses, it shall be recognized as the
estimated liabilities in accordance with the estimated duties and then recorded into investment losses at current
period. If the invested entity realizes any net profits later, the Group shall, after the amount of its attributable share
of profits offsets against its attributable share of the un-recognized losses, resume recognizing its attributable
share of profits.
For equity investments of the Group in associates, some of which are indirectly held by the Group through venture
capital institutions, mutual funds, trust companies, investment-linked insurance funds or other similar subjects,
whether or not these subjects have significant influence over such investments, the Group measures these
indirectly held investments at their fair value and records the changes in their fair value into profits and losses, and
measures other investments adopting the equity method as per the “Accounting Standards for Business Enterprises
No. 22-Recognition and Measurement of Financial Instruments”.
When calculating and recognizing the net gains and losses enjoyed or be burdened by the investees, the part
attributed to the Group which meausred according to the enjoyed proportion from the unrealized internal
transactoins with the joint ventures and associated enterprises should be written off and be recognized as
investment income on the basis. As for the unrealized internal transactions losses attributed to the assets
impairment losses occurred between the Group and the investees, should be recognized in full amount.
③ When the Group disposing the long-term equity investment, as for the difference between the book value and
the actual required price, should be included in the current gains and losses.As for the long-term equity investment
measured by equith method, when disposing the investment, should execute the accounting treatment on the part
which be originally included in the other comprehensive income according to the correspoding proportion based
on the same basic of the relevant assets or liabilities be directly disposed by the investees.
④ Where any other investor increases its investment in a subsidiary of the Group, causing a decreased
shareholding of the Group in the subsidiary and the cease of the Group’s control over the subsidiary, but the
Group is still able to execute joint control or have significant influence over the subsidiary, the measurement
method of the said long-term equity investment of the Group in the subsidiary shall change from the cost method
to the equity method in the individual financial statements. Firstly, the difference between the share of the Group
in the increment in the subsidiary’s net assets as per the Group’s new shareholding percentage in the subsidiary
and the former book value of the said long-term equity investment associated with the shareholding decrease that
should be carried forward shall be recorded into the current profits and losses; and then the said long-term equity
investment shall be restated as per the Group’s new shareholding percentage in the subsidiary as if the equity
method had been adopted in the measurement of the said long-term equity investment since it was obtained by the
Group.
(3) Basic of recognizing the joint control and significant influences on the investees
Joint control, refers to the control jointly owned according to the relevant agreement on an arrangement by the
Group and the relevant activities of the arrangement should be decided only after the participants which share the
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control right make consensus. Significant influence refers to the power of the Group which could anticipate in the
finance and the operation polices of the investees, but could not control or jointly control the formulation of the
policies with the other parties.
(4) Impairment test method and withdrawal method of impairment provision
The impairment test method and the withdrawal method of impairment provision of long-term equity investment
are executed according to the accounting polices of “Long-term assets impairment” formulated by the Group.
15. Investment real estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
(1) Investment properties of the Company are properties held to earn rentals or for capital appreciation or both,
mainly comprising:
①Land use right which has already been rented;
②Land use right which is held for transfer out after appreciation;
③Property that has already been rented.
(2) Investment property shall be recognized as an asset when the following conditions are satisfied:
①It is probable that the future economic benefits that are associated with the investment property will flow to the
Company;
②The cost of the investment property can be measured reliably.
(3) Initial measurement
An investment property is measured initially at its cost.
①The cost of a purchased investment property comprises its purchase price, related tax expenses and any directly
attributable expenditure.
②The cost of a self-constructed investment property comprises all necessary construction expenditures incurred
before the property is ready for its intended use.
③The cost of a property acquired by other means shall be recognized according to relevant accounting standards.
(4) Subsequent measurement
After initial recognition, the Company adopts the cost model to measure its investment properties. The Company
amortizes or depreciates its investment properties measured using cost model in the same way as fixed assets and
intangible assets
If the Group had definite evidence indicated the usage of the property had changed, when transferring the
self-used real estate or the inventories as the investment real estate or transferring the investment real estate as the
self-used real estate, the book value before the transfer should be regarded as the entry value after transfer.
The Group values the investment property measured using cost model at the lower of its cost and its recoverable
amount at the end of the period. Where the cost exceeds the recoverable amount, the difference shall be
recognized as impairment loss. Once a provision for impairment loss is made, it cannot be reversed.
16. Fixed assets
(1) Recognized standard
Fixed assets are tangible assets that: 1) are held for use in the production or supply of goods or services, for rental
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to others, or for administrative purposes; and 2) have useful life more than one year. A fixed asset shall be initially
recognized at cost when the following conditions are satisfied: ① It is probable that future economic benefits
associated with the assets will flow to the Company; ② The cost of the assets can be measured reliably.
(2) Depreciation methods
Category of fixed assets Depreciation method Depreciation year Salvage ratio Annual deprecation ratio
Housing and building Straight-line depreciation 20-25 5-10% 3.8-4.5%
Transportation vehicle Straight-line depreciation 5 5% 19%
Electronic and other
Straight-line depreciation 5 5% 19%
equipments
Decoration of fixed
Straight-line depreciation 5 0% 20%
assets
Subsequent expenditure related to the fixed assets should accrued into the cost of fixed assets if met with the
stipulated reorganization conditions of fixed assets; if not, should accrued directly into the current gains and losses
when occurred.
The Group will execute reexamine for the service life, estimated net salvage and the depreciation method of the
fixed assets after each accounting year. If there was difference between the service life and the original estimated
number, should adjust the useful life of the fixed assets; if there was difference between the estimated net salvage
and the original estimated number, should adjust the estimated net salvage; if there were significant changes of the
realization method of the economic benefits related to the fixed assets, should changes the depreciation method of
the fixed assets. The changes of the useful life, estimated net salvage and the depreciation method of the fixed
assets should be regarded as the accounting estimate changes.
Impairment of fixed asset refers to accounting policy “Long-term assets impairment” of the Group.
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
The "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards related to the
ownership of an asset. Its ownership may or may not eventually be transferred. The fixed assets by finance lease
shall adopt the same depreciation policy for self-owned fixed assets. If it is reasonable to be certain that the lessee
will obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully
depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the
leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the
lease term or its useful life.
17. Construction in progress
Is the Company subject to any disclosure requirements for special industries?
Yes, for the Company engages in real estate.
(1) The valuation of the construction in progress: recognizes the engineering cost according to the cost actual
occurred. The cost of construction in progress also includes the borrowing expenses and exchange gains and
losses which should be capitalized.
(2) The Company should transfer the construction in progress into fixes assets when the construction in progress is
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ready for their intended use. If the built construction had reached the state ready for intended use but had not
settled the fixed assets of completion settlement, should recognized as fixed assets according to the estimated
value as well withdrew and depreciated; after execute the completion settlement procedure, it should adjust the
original provisional estimate value according to the actual cost but not the original withdrew depreciation amount.
(3) Impairment of construction in progress refers to accounting policy “Long-term assets impairment” of the
Group.
18. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs and capitalization period
The costs of borrowings designated for acquisition or construction of qualifying assets should be capitalized as
part of the cost of the assets. Capitalization of borrowing costs starts when
① The capital expenditures have incurred;
② The borrowing costs have incurred;
③ The acquisition and construction activities that are necessary to bring the asset to its expected usable condition
have commenced.
Other borrowing costs that do not qualify for capitalization should be expensed off during current period.
Capitalization of borrowing costs should be suspended during periods in which the acquisition or construction is
interrupted abnormally, and the interruption period is three months or longer. These borrowing costs should be
recognized directly in profit or loss during the current period. However, capitalization of borrowing costs during
the suspended periods should continue when the interruption is a necessary part of the process of bringing the
asset to working condition for its intended use.
Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed is substantially
ready for its intended use. Subsequent borrowing costs should be expensed off during the period in which they are
incurred.
The term “assets eligible for capitalization” refers to the fixed assets, investment real estate, inventories and other
assets, of which the acquisition and construction or production may take quite a long time to get ready for its
intended use or for sale.
(2) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset,
the amount of borrowing costs eligible for capitalization on that asset is determined as the actual borrowing costs
incurred on that borrowing during the period less any investment income on the temporary investment of the
borrowing.
To the extent that funds are borrowed generally and used for the purpose of acquiring or constructing a qualifying
asset, the amount of borrowing costs eligible for capitalization shall be determined by applying a capitalization
rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific
purpose borrowing. The capitalization rate is the weighted average rate of the general borrowings.
During the period of capitalization, the exchange balance on foreign currency special borrowings shall be
capitalized; the exchange balance on foreign currency general borrowings shall be recorded into current profits
and losses.
19. Biological assets
Not applicable
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20. Oil-gas assets
Not applicable
21. Intangible assets
(1) Pricing method, useful life and impairment test
The term "intangible asset" refers to the identifiable non-monetary assets possessed or controlled by enterprises
which have no physical shape.
Recognition of intangible asset:
The Company recognizes an intangible asset when that intangible asset fulfills both of the following conditions:
①It is probable that the economic benefits associated with that asset will flow to the Company;
②The cost of that asset can be measured reliably.
Measurement of intangible assets
①An intangible asset is measured initially at its cost.
②Subsequent measurement of intangible assets
A. For an intangible asset with finite useful life, the Company estimates its useful life at the time of acquisition
and amortizes it during its useful life in a reasonable and systematic way. The amount of amortization is allocated
to relevant costs and expenses according to the nature of beneficial items. The Company does not amortize
intangible asset with infinite useful life.
At the end of period, the Group shall check the service life and amortization method of intangible assets with
finite service life, if there is any change, it shall be regarded as a change of the accounting estimates. Besides, the
Group shall check the service life of intangible assets without certain service life, if there is any evidence showing
that the period of intangible assets to bring the economic benefits to the enterprise can be prospected, it shall be
estimated the service life and amortized in accordance with the amortization policies for intangible assets with
finite service life.
B. Impairment of the intangible assets should be executed according to the accounting policies of “Long-term
assets impairment” formulated by the Group.
(2) Accounting polices of internal R & D expenses
Not applicable
22. Impairment of long-term assets
Following indications indicate that there occurs the impairment:
(1) The current market price of the assets greatly decreased with the range of a price drop obviously higher than
the estimated decline owning to the passage of time or the normal employ.
(2) The environment the economy, technology and laws of the Group involved, and the market the assets involved,
if there are significant changes occur in the current period or in recent period, would cause harmful influences on
the Group.
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(3) The market interests rate or other market investment return rate had improved in the current period, thus
influenced and the discount rate for calculating the estimated current value of the future cash flow of the assets by
the enterprises, which would led to the sharply decrease of the recoverable amount.
(4) There are evidences indicate the assets are of obsolescence or the entity had been damaged.
(5) The assets had been or will be left unused, cease using or planed to dispose in advance.
(6) The evidence of the internal report of the Group indicant that the economy performance had been lower or
would be lower than estimations, for example, the net cash flow or the operation profits (or losses) realized were
far lower than the estimated amount etc.
(7) Other assets indicate there are indications there occurs the impairment.
The Group judges each assets such as the long-term equity investment, fixed assets, engineering materials,
intangible assets (except for those with uncertain usage life) which adapt to the No. 8 of ASBE-Assets Impairment
on the balance sheet date and executes the recover by impairment test-estimations when there are impairment
indications. The recoverable amount is recognized through the fair value of the assets which minus the higher one
between the net amount after disposal and the current value of the assets estimated future cash flow. If the
recoverable amount lower than the book value of the assets, the book value should be written down as the
recoverable amount with the written-down amount be recognized as the assets impairment losses and included in
the current gains and losses and at the same time withdraw the assets impairment provision.
If there are indications indicate any asset occur impairment, the Group usually estimates its recoverable amount
base on the individual asset. If it is difficult to estimate the recoverable amount of the individual asset, which asset
group it belongs to should be recognized the recoverable amount base on the asset group.
The asset group is the smallest asset group that could be recognized by the Group, and its cash inflow is basically
independent of other asset or asset group. The asset group is composed by the relevant assets which create the
cash inflow. The recognition of the asset group is based on whether the main cash inflow caused by the asset
group is independent of the cash inflow of the other assets or the asset group.
The Group executes the impairment test every year on the goodwill formed by the enterprise combination and the
intangible assets with uncertain service life no mater there are impairment indications or not. The impairment test
of the goodwill is executed by combining with the relevant asset group or the asset group combination.
Once the assert impairment losses had been recognized, should not be reversed in the accounting period
afterwards.
23. Amortization method of long-term deferred expenses
The Company recognizes all expenses which have occurred during the period but shall be amortized beyond one
year, such as improvement expenditures of operating leased fixed assets, as long-term deferred expenses. The
Company amortizes long-term deferred expenses using straight-line method according to relevant beneficial
periods.
24. Payroll
(1) Accounting treatment of short-term compensation
Employee compensation refers to the reward or compensation of various modes provided by the Group which
wants to receive the service offering by the employees or to execute the release of the labor relationship. The
employee compensation including the short-term salary, departure benefits, demission benefits and other
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long-term employee benefits. The Group provides the benefits for the spouses, children, supported families of the
employees, the members of the deceased's employees and other beneficiaries, which are also employee
compensations.
The short-term compensation actually happened during the accounting period when the active staff offering the
service for the Group should be recognized as liabilities and is included in the current gains and losses or relevant
assets cost except for those be required or permitted to included in the assets cost by other ASBE.
(2) Accounting treatment of the welfare after demission
The Group divides the departure benefits plan into defined contribution plans and defined benefit plans. Benefits
plan of after demission refer to the agreement between the Group and employees on the departure benefits, or the
regulations or methods formulated by the Group for providing welfares after demission for the employees. Of
which, defined contribution plans refers to the departure benefits plan that the Group no more undertake the
further payment obligations after the payment and deposit of the fixed expenses for the independent funds;
defined benefit plans refers to the departure benefits plan except for the defined contribution plans.
A. Defined contribution plans
During the accounting period when providing the service for the employees, the Group will recognize the deposited
amount as the liabilities which measured by defined contribution plans and include in the current gains and losses or
the relevant assets cost.
B.Defined benefit plans
Other long-term employee benefits the Group had not executed the defined contribution plans or met with the
conditions of defined benefit plans.
(3) Accounting treatment of the demission welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff
proposal, or when recognizing the costs or expenses (the earlier one between the two) related to the reorganization
of paying the demission welfare, should recognize the payroll liabilities from the demission welfare and include in
the current gains and losses.
(4) Accounting treatment of the welfare of the long-term employees
The Group provides the other long-term employee benefist for the employess, and for those met with the defined
contribution plans, should be disposed according to the above accounting polices of the defined contribution plans;
the for the others except for the former, should be recognized according to above accounting polices of the defined
benefit plans and measure the net liabiilties or net assets of other long-term employee benefits.
25. Estimated liabilities
(1) Recognition criteria of estimated liabilities
The Group should recognize the related obligation as a provision for liability when the obligation meets the
following conditions:
①That obligation is a present obligation of the enterprise;
②It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
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③A reliable estimate can be made of the amount of the obligation.
(2) Measurement of estimated liabilities
To fulfill the present obligations, which initially measured by the best estimate of the expenditure required to
settle the liability. Where there is a continuous range of possible amounts of the expenditure required to settle the
liability, as all kinds of possibilities are at same level, the best estimate should be determined according to the
average of the lower and upper limit of the range. In other cases, the best estimate should be determined in
accordance with the following methods:
①Where the contingency involves a single item, the best estimate involves a singe item, the best estimate should
be determined according to the most likely outcome;
②Where the contingency involves several items; The best estimate should be determined by weighting all
possible outcomes by their associated probabilities of occurrence.
To determine the best estimate, it should be considered with factors such as: related contingency risks, uncertain
matters and time value of currency. If time value of currency has a significant impact, the best estimate should be
measured at its converted present value through the relevant future cash outflows.
Where some or all of the expenditures are expected to be reimbursed by a third party, the reimbursement should
be separately recognized as an asset only when it is virtually received. The amount of the reimbursement should
not exceed the carrying amount of the liability recognized.
At balance sheet date, the Group should review book value of provision for liabilities. If there is strong evidence
that the book value does not truly indicate the current best estimate, it should be adjusted in accordance with the
current best estimate.
26. Share-based payment
Not applicable
27. Other financial instruments such as preferred shares and perpetual capital securities
Not applicable
28. Revenue
Is the Company subject to any disclosure requirements for special industries?
Yes, for the Company engages in real estate.
The revenue of the Group including the commodities sales revenue, real estate sales revenues, property leasing
revenues, labor revenues and the revenues from the using of the assets of the Company by others.
(1) Commodities sales revenues
The Group had transferred the major risks and the remunerations of the ownership of the commodities to the
buyers and neither remained the continuous management right that usually related to the ownership nor executed
the efficient control of the sold commodities. As for the revenues amount and the relevant costs occurred or will
occurr which could be reliable measured, should confirm the revenues of the sales of the commodities when the
relevant economic benefits would probably flow into the enterprise.
The revenues of the sales of the commodities of the Group were mainly the sales revenues of the commercial
residential buildings. The sales of the properties of the Group had executed completion acceptance that had
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transferred to the buyers or be regarded as had transferred to the buyers according to the sales contacts as well as
confirmed the realization of the revenues when executing the liquidation of the sales amount of the commercial
residential buildings (the mortgage purchase way of the buildings were the receipted down payment and the bank
mortage amount).
(2) Provide labor income
The labor income provided by the Group mainly comes from property management income, project supervision
service income and catering service income.
Property management income: the property management income is realized when the property management
service has been provided and the service fee as agreed with the owner is able to flow into the enterprise.
Other labor income: the labor income is realized when the labor service has been provided and the related
economic interest is able to flow into the enterprise and related cost is able to be reliably measured.
(3) Income from transferring asset use right
The income from transferring asset use right includes property lease income, taxi income, interest income and
other use right income.
Property lease income: the property lease income is realized by the method of straight line as agreed in the lease
contract or agreement signed with the leasee. If there are lease periods free of any rent, the lessor shall distribute
the total rent, not deducting the rent during those periods free of any rent, within the entire lease period by the
method of straight line or other reasonable means. During the periods free of any rent, the lessor shall recognize
the lease income.
Taxi income: the taxi income is recognized as the contract amount agreed under the contracting contract or
agreement signed with the contractor.
Interest income: the interest income is recognized by the duration you use the Company’s cash and the applicable
interest rate. The fee income is recognized by the charging time and method as regulated in related contract or
agreement.
Income from other use right: the income from transferring asset use right is recognized when the income amount
is able to be reliably measured and related economic interest is possible to flow into the enterprise.
29. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government subsidies divides into the government subsidies related to the assets and the government
subsidies realted to the profits. The government subsidies pertinent to assets mean the government assets that are
obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways. The
government subsidies pertinent to income refer to all the government subsides except those pertinent to assets. If
the government subsidies documents had not definitely confirm the subsidy targets, the Group should divide them
as the government subsidies related to profits except for those be indicated by the clear evidence that belongs to
the government subsidies related to assets.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
② The grants will be received from government.
(2) Measurement of the government subsidies:
① If monetary grants are received, it recognized at actual received or receivable amount. If non-monetary grants
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
are received, it recognized at fair value, replacing with nominal amount while fair value is not reliable.
② The Capital approach for government grants, the grant is recognized as deferred income when it is acquired.
Since the related assets achieve its intended using status, the deferred income is amortized and recognized in profit
and loss during asset’s using period. If related assets were disposed before using period ended, undistributed
deferred income shall be shift to current profit and loss at once.
The Income approach for government grants, to retrieve expense or loss of the Company in further period, the
government grants is recognized as deferred income, and shall be recorded in profit and loss when that expense or
loss occurred. To retrieve expense or loss of the Company in current period, the government grants shall be
recorded directly in current profit and loss.
③ As for the confirmed repayment of government grants should be handled respectively according to the
following situation:
A. When deferred income exists, the repayment write-downs closing balance of deferred income, and the exceed
part shall be recognized in current profit and loss;
B. When no deferred income exists, the repayment shall be recognized directly in current profit and loss.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The government subsidies divides into the government subsidies related to the assets and the government
subsidies realted to the profits. The government subsidies pertinent to assets mean the government assets that are
obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways. The
government subsidies pertinent to income refer to all the government subsides except those pertinent to assets. If
the government subsidies documents had not definitely confirm the subsidy targets, the Group should divide them
as the government subsidies related to profits except for those be indicated by the clear evidence that belongs to
the government subsidies related to assets.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
② The grants will be received from government.
(2) Measurement of the government subsidies:
① If monetary grants are received, it recognized at actual received or receivable amount. If non-monetary grants
are received, it recognized at fair value, replacing with nominal amount while fair value is not reliable.
② The Capital approach for government grants, the grant is recognized as deferred income when it is acquired.
Since the related assets achieve its intended using status, the deferred income is amortized and recognized in profit
and loss during asset’s using period. If related assets were disposed before using period ended, undistributed
deferred income shall be shift to current profit and loss at once.
The Income approach for government grants, to retrieve expense or loss of the Company in further period, the
government grants is recognized as deferred income, and shall be recorded in profit and loss when that expense or
loss occurred. To retrieve expense or loss of the Company in current period, the government grants shall be
recorded directly in current profit and loss.
③ As for the confirmed repayment of government grants should be handled respectively according to the
following situation:
A. When deferred income exists, the repayment write-downs closing balance of deferred income, and the exceed
part shall be recognized in current profit and loss;
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B. When no deferred income exists, the repayment shall be recognized directly in current profit and loss.
30. Deferred income tax assets/deferred income tax liabilities
The Company executes the accounting treatments of the income tax by adopting the balance sheet liability method.
(1) Deferred income tax assets
① Where there are deductible temporary differences between the carrying amount of assets or liabilities in the
balance sheet and their tax bases, a deferred tax asset shall be recognized for all those deductible temporary
differences to the extent that it is probable that taxable profit will be available against which the deductible
temporary difference can be utilized. Deferred tax assets arising from deductible temporary differences should be
measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is
settled.
② At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in
prior period shall be recognized.
③ The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that
sufficient taxable profit will not be available against which the deductible temporary difference can be utilized,
the Company shall write down the carrying amount of deferred tax asset, or reverse the amount written down later
when it’s probable that sufficient taxable profit will be available.
(2) Deferred income tax liabilities
A deferred tax liability shall be recognized for all taxable temporary differences, which are differences between
the carrying amount of an asset or liability in the balance sheet and its tax base, and measured at the tax rates that
are expected to apply to the period when the asset is realized or the liability is settled.
31. Lease
(1) Accounting treatment of operating lease
Lessee in an operating lease shall treat the lease payment under an operating lease as a relevant asset cost or the
current profit or loss on a straight-line basis over the lease term. The initial direct costs incurred shall be
recognized as the current profit or loss; Contingent rents shall be charged as expenses in the periods in which they
are incurred.
Lessors in an operating lease shall present the assets subject to operating leases in the relevant items of their
balance sheet according to the nature of the asset. Lease income from operating leases shall be recognized as the
current profit or loss on a straight-line basis over the lease term; Initial direct costs incurred by lessors shall be
recognized as the current profit or loss; Lessors shall apply the depreciation policy for the similar assets to
depreciate the fixed assets in the operating lease; For other assets in the operating lease , lessors shall adopt a
reasonable systematical method to amortize; Contingent rents shall be charged as expenses in the periods in which
they are incurred.
(2) Accounting treatments of financial lease
For the lessee, a fixed asset acquired under finance lease shall be valued at the lower of the fair value of the leased
asset and the present value of the minimum lease payments at the inception of lease. The minimum lease
payments as the entering value in long-term account payable, the difference as unrecognized financing charges;
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The initial direct costs identified as directly attributable to activities performed by the lessee during the
negotiation and signing of the finance lease such as handling fees, legal fees, travel expenses, stamp tax shall be
counted as lease asset value; the unrecognized financing charges shall be apportioned at each period during the
lease term and adopt the effective interest rate method to calculate and confirm the current financing charge;
Contingent rents shall be charged as expenses in the periods in which they are incurred.
When the lessee calculates the present value of the minimum lease payments, for that lessee who can obtain the
interest rate implicit in the lease, the discount rate shall be the interest rate implicit in the lease; otherwise the
discount rate shall adopt the interest rate specified in the lease agreement. If the lessee can not get the interest rate
implicit in the lease and there is no specified interest rate in the lease agreement, the discount rate shall adopt the
current bank loan interest rate.
Lessees shall depreciate the leased assets with the depreciation policy which is consistent with the normal
depreciation policy for similar assets. If there is reasonable certainty that the lessee will obtain ownership by the
end of the lease term, the depreciation shall be allocated to the useful life of the asset. If there is no reasonably
certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be depreciated over the
shorter of the lease term and its useful life.
On the initial date of financial lease, lessee of the financial lease shall record the sum of the minimum lease
payments and initial direct costs as the financing lease accounts receivable, and also record the non-guaranteed
residual value; recognize the difference between the total minimum lease payments , initial direct costs,
non-guaranteed residual value and sum of the present value as the unrealized financing income; the unrealized
financing income shall be distributed to each period over the lease term; adopt the actual interest rate to calculate
the current financial income; Contingent rents shall be charged as expenses in the periods in which they are
incurred.
32. Other significant accounting policies and estimates
(1) Measurement of fair value
Fair value refers to the price received from selling any asset or paid for transferring any liability in the orderly
transactions that occur on the measurement date of the market participants. The Group should consider the
characteristics of the assets or liabilities when measuring the relevant assets or liabilities by fair value; to suppose
the transactions of selling or transferring the assets on the measurement date by the market participants is the
orderly transactions under the conditions of the current market; to suppose the orderly transaction of selling or
transferring the assets is executing in the market of the relevant assets or liabilities; to suppose the transaction is
executing in the most favorable market of the relevant assets or liabilities if there is no any main market. The
Group adopts the advice used when pricing the assets or liabilities for realizing the maximum of the economy
benefits by the market participants.
The Group judges the fair value of initial recognition whether is equal to the transaction price according to the
characteristics of the relevant assets or liabilities with transaction nature etc.; if the transaction price and fair value
is not equal, should include the relevant gains or losses in the current gains and losses except for those stipulated
by other relevant ASBE.
The Group adopts the assessment technology which adapt to the current conditions with sufficient available data
and other information support, and the assessment technology mainly including the market method, equity method
and cost method. In the application of the assessment technology, the Group should prefer the relevant observable
input value and only when the relevant observable input value could not be required or required the not feasible
value, could use the not observable input value.
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The input value used for the fair value measurement is divided into three levels and the first level of the input
value is initially used, then come to the second level and the third one the last. The first level input value is the
quotation acquired from the activa market of the same assets or liabilities that had not be adjusted; the second
input value is the input value could be directly or indirecly observed of the relevant assets or liabilities except for
the first level input value; the third level input value is the not observable input value of the relevant assets or
liabilities.
The Group measures the non-financial assets by fair value by considering the ability of the market participants
when using the assets for the best purpose for causing the economy benefits or the ability to sell the assets to the
other market participants which can use them with the best purpose for causing the economy benefits. The Group
supposes to transfer the liabilities to other market participants on the measurement date and the liabilities would
be continue to exist after the transfer as well as to be as the market participants of the transfees to execute the
obligation when measuring the liabilities by fair value. The Group supposes to transfer the self equity instruments
to other market participants on the measurement date and the self equity instruments would be continue to exist
after the transfer as well as to acquire the relevant rights and to undertake the relevant obligations as the market
participants of the transfees.
(2) Operation termination
Operation termination refers to the compose part that meet with one of the following conditions which had been
disposed by the Group or be classified to held-to-sold as well as could be individually distinguished in operating
and compiling the financial statement: ① the compose part represents an individual main business or a main
operation area; ② the compose part is a part intends to dispose and plan an individual main business or a main
operation area; ③ the compose part is a subsidiary which be acquired only for resold.
(3) Segmental report
The Group recognizes the operating segments according to the internal organization structure, the management
requirements and the internal report system and recognizes the reporting segments and discloses the segmental
information according base on the operating segments.
Operating segments refer to the compose parts of the Group which meet with the following conditions at the same
time: (1) the compose part could cause revenues and expenses in the daily activities; (2) the management layer
could periodically evaluate the operation results of the compose part and base which to distribute the resources
and evaluate the performance;(3) the Group could acquire the relevant accounting information of the financial
conditions, operation results and the cash flows of the compose part. If two or more operating segments own the
similar economy characteristics and meet with certain conditions, could be combining as an operating segment.
(4) Quality margin
According to the regulations of the construction contact, the Group should execute the retention of the quality
margin for construction organizations and should include which into the “accounts payable” and to pay according
to the actual situation and the contacts agreement after the guarantee period.
(5) Maintenance funds
The received public maintenance funds for the entrusted management of the owner from the property management
company of the Group should be included in the “non-current liabilities”, which were specially used for the
maintenance and updating for the residential common areas, common equipments and the communal facilities of
the realty management area.
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33. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable √ Not applicable
(2) Change of main accounting estimates
□ Applicable √ Not applicable
34. Other
Not applicable
VI. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
VAT Operating revenue 3%, 5%, 6%, 11%, 17%
Urban maintenance and construction tax Turnover tax payable 1%, 7%
Enterprise income tax Taxable income 15%, 16.5%, 20%, 25%
Business tax Operating revenue 3%, 5%
Education surtax Turnover tax payable 3%
Local education surtax Turnover tax payable 2%
Levee fee Operating revenue 0.01%
Added amount from transfer of real Four progressive levels with the tax rate
Land value appreciation tax
property ranging from 30% to 60%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Chongqing Aobo Elevator Co., Ltd. 20%
Subsidiaries registered in Hong Kong area 16.5%
Other taxpaying bodies within the consolidated scope 25%
2. Tax preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging
category of the Guidance Catalogue of Industry Constructure Adjustment (Y2011), the western industry met with
123
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
the conditions should be collected the corporate income tax according to 15% of the tax rate. The subsidiary of the
Group Chongqing Shenzhen International Trade Center Property Management Co., Ltd. had be regarded as the
western enterprise of the property service by Local Taxation Bureau of Chongqing Jiulong District on 4 May 2014,
and had be collected the corporate income tax according to 15% of the tax rate.
According to the regulations of the notice of the income tax preferential policies of the small low-profit
enterprises issued by SAT of CS [2015] No. 34, from 1 Jan. 2015 to 31 Dec. 2017, as for those small
low-profit enterprises with the annual after-tax amount lower than RMB0.2 million (including RMB0.2 m
illion), of which 50% of the revenues should be included into the taxable income and should be collecte
d the corporate income tax according to 20% of the tax rate.
3. Other
As per the Notice on Implementing the Pilot Program of Replacing Business Tax with Value-Added Tax in an
All-round Manner, the said replacement took place on May 1, 2016. Since then, the business tax that had been
levied on the Group’s operating revenue from real estate has been replaced with the VAT.
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Item Closing balance Opening balance
Cash on hand 190,709.43 208,170.99
Bank deposits 2,856,051,614.77 930,987,796.17
Other monetary funds 13,512,892.65 14,544,008.61
Total 2,869,755,216.85 945,739,975.77
Of which: the total amount deposited
53,978,178.36 50,515,270.67
overseas
Other notes
RMB 12,402,160.00 of the restricted L/G deposits used at the period-end was the cash deposits paid by the subsidiary of the
Company-Dongguan International Trade Center Changsheng Property Development Co., Ltd. by entrusting the commercial bank to
issue the Commercial Housing Quality Guarantee Letter. Owning the subsidiary of the Company-Dongguan International Trade
Center Changsheng Property Development Co., Ltd. was the real estate development enterprise with provisional qualification, when
handling the application of the pre-sale permit of the commercial residential housing should submit the quality guarantee letter of the
commercial residential housing after the liquidation situation such as the enterprise bankruptcy and dissolution. The guarantee letter
was the irrepealably commercial residential quality guarantee letter, of which the guarantee period of RMB 1,468,870.00 was from
30 Jun. 2015 to 31 Dec. 2020 and the guarantee period of the remained RMB 10,933,290.00 was from 1 Jul. 2015 to 31 Dec. 2020.
The balance at the end of period increased by 203.44% compared with that at the beginning of the period, which was mainly due to
the increase in sales expenses.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Unit: RMB Yuan
Item Closing balance Opening balance
Other notes:
3. Derivative financial assets
□ Applicable √ Not applicable
4. Notes receivable
(1) Notes receivable listed by category
Unit: RMB Yuan
Item Closing balance Opening balance
(2) Notes receivable pledged by the Company at the period-end
Unit: RMB Yuan
Item Amount
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the
period-end
Unit: RMB Yuan
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
Unit: RMB Yuan
Amount of the notes transferred to accounts receivable at the
Item
period-end
Other notes
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB Yuan
Category Closing balance Opening balance
125
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Book balance Bad debt provision Book balance Bad debt provision
Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with significant
102,216, 102,216, 102,216 102,216,1
single amount with 74.08% 100.00% 70.30% 100.00%
173.89 173.89 ,173.89 73.89
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
33,877,0 2,312,84 31,564,21 41,288, 2,516,360 38,772,146.
provision according 24.55% 6.83% 28.40% 6.09%
60.01 0.15 9.86 506.76 .35 41
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 1,884,02 1,884,02 1,884,0 1,884,022
1.37% 100.00% 1.30% 100.00%
which bad debt 2.38 2.38 22.38 .38
provision separately
accrued
137,977, 106,413, 31,564,21 145,388 106,616,5 38,772,146.
Total 100.00% 77.12% 100.00% 73.33%
256.28 036.42 9.86 ,703.03 56.62 41
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end：
√Applicable □ Not applicable
Unit: RMB Yuan
Accounts receivable Closing balance
(classified by units) Accounts receivable Bad debt provision Proportion Reason
Involved in lawsuit and
Shenzhen Jiyong
no executable property,
Properties & Resources 93,811,328.05 93,811,328.05 100.00%
and see details in Notes
Development Company
XIV. 2 of Section XI
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
Poor operating
Shenzhen Lunan Industry
2,818,284.84 2,818,284.84 100.00% conditions, uncollectible
Development Co., Ltd.
for a long period
Uncollectible for a long
Zhou Tanjin 2,750,000.00 2,750,000.00 100.00%
period
Total 102,216,173.89 102,216,173.89 -- --
126
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB Yuan
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Within 1 year 29,347,371.60 880,421.15 3.00%
Subtotal within 1 year 29,347,371.60 880,421.15 3.00%
1 to 2 years 2,719,495.98 271,949.60 10.00%
2 to 3 years 166,766.15 50,029.85 30.00%
3 to 4 years 1,020,565.62 510,282.81 50.00%
4 to 5 years 113,519.59 90,815.67 80.00%
Over 5 years 509,341.07 509,341.07 100.00%
Total 33,877,060.01 2,312,840.15 6.83%
Notes of the basis of recognizing the group:
The basic of recognizing the group refers to Notes V. 11 of Section XI of the report.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
Not applicable
(2) Accounts receivable withdraw, reversed or collected during this Reporting Period
The withdrawal amount of the bad debt provision during this Reporting Period was of RMB -201,094.25; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Unit: RMB Yuan
Name of the units Reversed or collected amount Method
Total 0.00 --
(3) The actual write-off accounts receivable
Unit: RMB Yuan
Item Amount
Receivables property management fee 2,425.95
Of which the significant actual write-off accounts receivable:
Unit: RMB Yuan
Name of the units Nature Amount Reason Process Whether occurred
127
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
from the related
transactions
Total -- 0.00 -- -- --
Notes of the write-off the accounts receivable:
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Name of units Closing balance Proportion of the total end Closing balance of bad
balance of the accounts debt provision
receivable (%)
Shenzhen Jiyong Properties & Resources 93,811,328.05 67.99 93,811,328.05
Development Company
Huawei Technologies Co Ltd 3,145,682.28 2.28 94,370.47
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.06 2,836,561.00
Shenzhen Lunan Industry Development 2,818,284.84 2.04 2,818,284.84
Co., Ltd.
Zhou Tanjin 2,750,000.00 1.99 2,750,000.00
Total 105,361,856.17 76.36 102,310,544.36
Receivable Zhou Tanjin of Shenzhen Shenxin Taxi Co., Ltd. belongs to Shenzhen Investment Holding Co., Ltd., which is the
divestiture assets.
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Not applicable
Other notes:
Not applicable
6. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 93,372,946.66 77.47% 20,734,383.56 72.97%
128
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
1 to 2 years 19,637,116.05 16.29% 6,602,570.30 23.24%
2 to 3 years 6,602,570.30 5.48% 1,070,523.28 3.77%
Over 3 years 919,642.37 0.76% 8,256.29 0.02%
Total 120,532,275.38 -- 28,415,733.43 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Top 5 of the closing balance of the prepayment were as follows:
Name of the unit Closing balance Proportion of the total end balance of the
accounts receivable (%)
Prepayment of taxes 110,574,294.77 91.74
Prepayment construction social security fee 7,537,235.95 6.25
State Grid Chongqing Electric Power Co., Ltd 475,000.00 0.39
Shenzhen Jianqiao Design Decoration Engineering 283,414.20 0.24
Co., Ltd
Shenzhen Tianfu Fire Engineering Co., Ltd 266,000.00 0.22
Total 119,135,944.92 98.84
Notes 1: According to the regulations of the Enforcement Regulation of the Provisional Regulations of the Business Tax to transfer
the land use right or to sell the real estate, and for those adopting the prepayment (including receiving the deposits in advance)
method, the occurrence time of the rateability was the date receiving the prepayments. The surplus prepay taxes of the Company was
the taxes such as the property prepayments had not reached the revenue recognition conditions and the business taxes, urban
construction taxes, education surtaxes that paid in advance.
Notes 2: Social security charges in building industry refer to the social security expenses the construction enterprises pay for the
employees such as the endowment insurance, medical insurance, unemployment insurance, work-related injury insurance and
maternity insurance (including Individual pay part). Take the engineering project as unit, to execute the unified payment standard, to
collect uniformly from the construction units and uniformly settled by the construction enterprises.
Note 3: Compared with the opening balance, the closing balance increased by RMB 92,116,541.95, an increase of 324.17%, mainly
caused by the increased prepayment of taxes.
7. Interest receivable
(1) Category of interest receivable
Unit: RMB Yuan
Item Closing balance Opening balance
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason impairment and its
judgment basis
Other notes:
Not applicable
8. Dividend receivable
(1) Dividend receivable
Unit: RMB Yuan
Item (or investees) Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
Unit: RMB Yuan
Whether occurred
Item (or investees) Closing balance Aging Reason impairment and its
judgment basis
Other notes:
Not applicable
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with significant
34,970,0 34,970,0 90,718, 87,150,31 3,568,421.2
single amount with 53.19% 100.00% 75.46% 96.07%
67.20 67.20 739.20 7.92 8
bad debt provision
separately accrued
Accounts receivable 21,071,0 32.05% 11,528,7 54.71% 9,542,311 19,789, 16.46% 11,738,34 59.32% 8,051,082.1
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
withdrawn bad debt 30.28 18.98 .30 422.31 0.12 9
provision according
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 9,709,53 9,709,53 9,711,2 9,711,262
14.76% 100.00% 8.08% 100.00%
which bad debt 3.34 3.34 62.51 .51
provision separately
accrued
65,750,6 56,208,3 9,542,311 120,219 108,599,9 11,619,503.
Total 100.00% 85.49% 100.00% 90.33%
30.82 19.52 .30 ,424.02 20.55 47
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB Yuan
Other accounts Closing balance
receivable (classified by Other accounts
Bad debt provision Withdrawal proportion Reason
units) receivable
Anhui Nanpeng Unrecoverable for a long
8,899,040.00 8,899,040.00 100.00%
Papermaking Co., Ltd. term
Shenzhen Shengfenglu,
No executable finance
Guomao Jewel & Gold 6,481,353.60 6,481,353.60 100.00%
and difficult to recover
Co., Ltd.
Shanghai Yutong Real
Difficult to recover the
estate development Co., 5,676,000.00 5,676,000.00 100.00%
lawsuit judgment
Ltd.
Unrecoverable for a long
Wuliangye Restaurant 5,523,057.70 5,523,057.70 100.00%
term
Hong Kong Yueheng Unrecoverable for a long
3,271,837.78 3,271,837.78 100.00%
Development Co., Ltd. term
Dameisha Tourism Projects construction ce
2,576,445.69 2,576,445.69 100.00%
Center ased
Projects construction
Elevated Train Project 2,542,332.43 2,542,332.43 100.00%
ceased
Total 34,970,067.20 34,970,067.20 -- --
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
Unit: RMB Yuan
Aging Closing balance
131
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Other accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Within 1 year (including 1 year) 6,314,022.00 189,420.65 3.00%
Subtotal within 1 year 6,314,022.00 189,420.65 3.00%
1 to 2 years 2,174,698.83 217,469.88 10.00%
2 to 3 years 1,183,850.00 355,155.01 30.00%
Over 3 years 1,069,422.02 534,711.01 50.00%
3 to 4 years 95,380.55 76,304.44 80.00%
4 to 5 years 10,715,458.05 10,715,458.05 100.00%
Over 5 years 19,789,422.31 11,738,340.12 59.32%
Notes of the basis of recognizing the group:
The basis recognizing the group refers to Notes V. 11 of Section XI of the report.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during this Reporting Period
The withdrawal amount of the bad debt provision during this Reporting Period was of RMB 401,956.68; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Unit: RMB Yuan
Name of units Reversed or collected amount Method
Total 0.00 --
The withdrawal amount of bad debt provision in current period is RMB 401,956.68; the exchange rate translation for the
foreign-currency loans withdrawal amount of bad debt provision receivable and foreign-currency financial statement translation
increased bad debt provision is RMB 865,021.01. As the reorganization plan of Shenzhen Gintian Industry (Group) Co., Ltd., ruled
by the court, was executed in February 2016, an amount of RMB 53,658,578.72 together with the original value was transferred to
other current assets.
(3) The actual write-off other accounts receivable
Unit: RMB Yuan
Item Amount
Of which the significant write-off other accounts receivable:
Unit: RMB Yuan
Whether occurred
Name of units Nature Amount Reason Process
from the related
132
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
transactions
Total -- 0.00 -- -- --
Notes of write-off other accounts receivable:
There was no write-off other accounts receivable.
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB Yuan
Nature Closing book balance Opening book balance
Margin 12,050,550.05 12,540,024.90
Pretty cash borrowing 394,894.05 772,557.45
Accounts receivable of the related
11,556,264.65 10,704,936.65
companies
Accounts receivable of the non-related
41,748,922.07 96,201,905.02
companies
Total 65,750,630.82 120,219,424.02
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB Yuan
Proportion of the
total end balance of Closing balance of
Name of units Nature Closing balance Aging
the accounts bad debt provision
receivable (%)
Anhui Nanpeng Accounts receivable
Papermaking Co., of the related 8,899,040.00 Over 5 years 13.53% 8,899,040.00
Ltd. companies
Shenzhen
Accounts receivable
Shengfenglu,
of the non-related 6,481,353.60 Over 5 years 9.86% 6,481,353.60
Guomao Jewel &
companies
Gold Co., Ltd.
Shanghai Yutong
Accounts receivable
Real estate
of the non-related 5,676,000.00 Over 5 years 8.63% 5,676,000.00
development Co.,
companies
Ltd.
Accounts receivable
Shenzhen Wuliangye
of the non-related 5,523,057.70 Over 5 years 8.40% 5,523,057.70
Restaurant
companies
Hong Kong Yueheng Accounts receivable 3,271,837.78 Over 5 years 4.98% 3,271,837.78
133
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Development Co., of the non-related
Ltd. companies
Total -- 29,851,289.08 -- 45.40% 29,851,289.08
(6) Accounts receivable involved with government subsidies
Unit: RMB Yuan
Project of government Estimated received time,
Name of units Closing balance Closing age
subsidies amount and basis
Total -- 0.00 -- --
Not applicable
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
Not applicable
Other notes:
Not applicable
10. Inventory
Whether the Company needs to comply with the disclosure requirements of the real estate industry
Yes
(1) Classification of Inventory
The Company needs to comply with the disclosure requirements of Guideline No. 3 of the Shenzhen Stock Exchange on the Industrial
Information Disclosure about Listed Companies’ Engagement in Real Estate Business
Classified by nature:
Unit: RMB Yuan
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Costs of
1,602,135,700.14 23,285,718.43 1,578,849,981.71 2,256,190,243.28 106,545,780.63 2,149,644,462.65
development
Developing
1,187,426,583.83 181,738,984.75 1,005,687,599.08 315,453,876.53 315,453,876.53
properties
134
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Raw materials 1,230,918.63 484,743.69 746,174.94 1,602,571.24 529,191.39 1,073,379.85
Inventory good 64,935.50 64,935.50 54,087.62 54,087.62
Low-value
consumption 309,830.42 309,830.42 116,472.20 116,472.20
goods
Total 2,791,167,968.52 205,509,446.87 2,585,658,521.65 2,573,417,250.87 107,074,972.02 2,466,342,278.85
Classification of the “Costs of development” and the capitalization rate of the interests in the following format:
Unit: RMB Yuan
Of which:
Shifted Accumulat
Other amount of
Date of Estimated Estimated developing ive amount
Name of Opening decreased Closing capitalized Capital
commence date of total properties of
project balance sums for balance interests resources
ment completion investment for this capitalized
this period for this
period interests
period
Shenzhen
Properties
&
31/12/201 660,150,00 498,973,61 635,013,99 27,205,315
Resources 01/09/2011 0.00 0.00 0.00 Others
6 0.00 3.05 8.40 .95
Banshanyu
jing Phase
I
Shenzhen
Properties
&
01/08/201 31/12/201 662,710,40 440,834,28 546,486,84
Resources 0 0.00 0.00 0.00 Others
5 7 0.00 2.15 9.54
Hupanyuji
ng Phase
II
Shenzhen
Properties
Bank
& 01/02/201 31/10/201 767,310,00 448,310,25 744,009,96 14,633,486 3,689,131.
0.00 0.00 loans;
Resources 4 6 0.00 2.81 8.18 .15 18
others
Front Sea
Harbor
Shenzhen
Properties
& 01/03/201 31/12/201 1,071,390, 146,379,98 236,415,31 3,858,872.
0 0.00 0.00 Others
Resources 4 8 000.00 2.82 9.90 36
Jinling
Holiday
Shenzhen 01/01/201 30/09/201 851,570,00 600,621,41 0 0.00 698,021,23 30,539,392 0.00 Bank
135
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Properties 2 7 0.00 4.48 2.73 .65 loans;
& others
Resources
Songhu
Langyuan
Hainan
6,648,404. 6,648,404.
Qiongshan 0 0.00 Others
13 13
Land
Fuchang
01/12/201 5,940,627. 5,940,627.
Phase II 0 0.00 Others
9 11 11
Land
Shenhui
01/12/202 36,824,440 36,966,040
Garden 0 0.00 Others
0 .89 .89
Land
Shenzhen
Properties
&
Resources 01/12/202 71,657,225 71,657,225
0 0.00 Others
Banshan 0 .84 .84
Yujing
Phase II
Land
4,013,130, 2,256,190, 1,379,023, 1,602,135, 76,237,067 3,689,131.
Total -- -- 0.00 --
400.00 243.28 966.58 700.14 .11 18
Classification of item disclosure “Developing properties” in the following format:
Unit: RMB Yuan
Date of
Name of project Opening balance Increase Decrease Closing balance
completion
International
Trade Center 31/12/1995 7,372,250.95 7,372,250.95
Plaza
Huangyuyuan A
30/06/2001 790,140.58 790,140.58
Area
Podium Building
of Fuchang 30/11/1999 645,532.65 645,532.65
Building
Shenzhen
Properties &
30/06/2010 692,134.84 692,134.84
ResourcesXihua
Town
136
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Shenzhen
Properties &
31/12/2012 27,154,592.60 27,154,592.60
ResourcesLangq
iao International
Shenzhen
Properties &
30/06/2015 276,048,491.88 192,950,853.75 83,097,638.13
ResourcesHupa
n Yujing Phase I
Shenzhen
Properties &
ResourcesFront 31/10/2016 744,009,968.18 314,342,936.73 429,667,031.45
Sea Harbor
Garden
Shenzhen
Properties &
ResourcesBansh 30/11/2016 635,013,998.40 635,013,998.40
an Yujing Phase
I
Other projects 31/12/2004 2,750,733.03 242,531.20 2,993,264.23
Total -- 315,453,876.53 1,379,266,497.78 507,293,790.48 1,187,426,583.83
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
“Temporary Housing”:
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
(2) Falling provision of Inventory
Disclosure of falling provision withdrawal of inventory in the following format:
Classified by nature:
Unit: RMB Yuan
Opening Increased amount Decreased amount Closing
Item Remarks
balance Withdrawal Others Write-off Others balance
Costs of 106,545,78
16,637,314.30 99,897,376.50 23,285,718.43
development 0.63
Developing 99,897,376.5
81,841,608.25 181,738,984.75
properties 0
Raw materials 529,191.39 -44,447.70 484,743.69
107,074,97 99,897,376.5
Total 98,434,474.85 99,897,376.50 205,509,446.87 --
2.02 0
Classification by project:
137
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Unit: Yuan
Opening Increased amount Decreased amount Closing
Name of project Remarks
balance Withdrawal Others Write-off Others balance
Hainan 6,648,404.
6,648,404.13
Qiongshan Land 13
Shenzhen
Properties & 99,897,376
79,738,328.55 179,635,705.05
ResourcesBansh .50
an Yujing Phase I
Shenzhen
Properties &
2,103,279.70 2,103,279.70
ResourcesHupan
Yujing Phase I
Shenzhen
Properties &
ResourcesBansh 16,637,314.30 16,637,314.30
an Yujing Phase
II
106,545,78
Total 98,478,922.55 205,024,703.18 --
0.63
(3) Rate of borrowing capitalization in closing balance of the inventory
The closing balance of the inventory included a total amount of the capitalized borrowings of 68,306,133.41 yuan.
(4) Inventory Limit
Disclosure of inventory limit by project:
Unit: RMB Yuan
Name of project Opening balance Closing balance Reason for the Limit
Total 0.00 0.00 --
(5) Completed unsettled assets formed from the construction contact at the period end
Unit: RMB Yuan
Project Amount
Other notes:
Whether the Company needs to comply with the disclosure requirements of Guideline No. 4 of the Shenzhen Stock Exchange on the
Industrial Information Disclosure about Listed Companies’ Engagement in Seed Industry and Planting Industry
138
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
11. Assets divided as held-to-sold
Unit: RMB Yuan
Estimated disposal
Item Closing book value Fair value Estimated disposal time
expense
Other notes:
Not applicable
12. Non-current assets due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Other notes:
Not applicable
13. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
1. Property receivable of F14, F15 of
174,382,120.00
Longyuan Chuangzhan Building
2. Original value of the assets group held
69,437,140.28 69,437,140.28
to distribute to the owners-Hainan Xinda
Impairment provision of the assets group
held to distribute to the owners-Hainan -69,437,140.28 -69,437,140.28
Xinda
3. Original value of the assets group held
6,034,625.03 6,034,625.03
to cancel after verification
Depreciation reserves of the assets group
-6,034,625.03 -6,034,625.03
held to cancel after verification
4. Original value of the assets group held
53,658,578.72
to cancel after verification
Depreciation reserves of the assets group
-53,658,578.72
held to cancel after verification
5. Pre-paid VAT 10,727,007.94
6. Deducted input tax 250,549.21
Total 10,977,557.15 174,382,120.00
Other notes:
Assets group held to distribute to the owners-Hainan Xinda were the assets from the calculation of the original long-term equity
investment and the other accounts receivable of the Company after the 2014 bankruptcy liquidation process of the original subsidiary
139
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
of the Company-Hainan Xinda Development Corporation and had reported as the other current assets since 2014 with the specific
assets list as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 20,000,000.00 20,000,000.00
Other accounts receivable 49,437,140.28 49,437,140.28
Total 69,437,140.28 69,437,140.28
In 13 Feb. 2017, Hainan Xinda Development Corporation ruled bankruptcy according to law, see (XIV) 2, the company write-off
procedures have not yet completed.
Notes 2: Assets group held to cancel after verification were the long-term equity investment and the other accounts receivable of the
original associated enterprise-Shenzhen International Trade Center Industrial Development Co., Ltd. The enterprise had been written
off by the bankruptcy and liquidation administrator in Apr. 2015 and owning to the cancellation and verification process had not been
complete, the above assets were reported as the other current assets since 2015 with the specific assets list as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 3,682,972.55 3,682,972.55
Other accounts receivable 2,351,652.48 2,351,652.48
Total 6,034,625.03 6,034,625.03
Note 3: Assets held to cancel were the Company’s other receivables from Shenzhen Gintian Industry (Group) Co., Ltd. As the
reorganization plan of Shenzhen Gintian Industry (Group) Co., Ltd., ruled by the court, was executed in February 2016 and as the
Company did not complete the procedure for cancelling the assets, they were reported as other liquidity assets.
Note 4: Compared with the opening balance, the closing balance decreased by RMB 163,404,562.85, which was mainly from the
actual receipt of assets of Dragon Garden Development Building F14, F15, caused by the Company’s leasing of the assets that was
counted into investment properties.
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB Yuan
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity
35,801,912.64 18,298,198.50 17,503,714.14 32,501,237.68 18,001,237.68 14,500,000.00
instruments
Measured by fair value 3,003,714.14 3,003,714.14
Measured by cost 32,798,198.50 18,298,198.50 14,500,000.00 32,501,237.68 18,001,237.68 14,500,000.00
Total 35,801,912.64 18,298,198.50 17,503,714.14 32,501,237.68 18,001,237.68 14,500,000.00
140
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB Yuan
Available-for-sale equity Available-for-sale debt
Category Total
instruments instruments
Cost of the equity
instruments/amortized
3,003,714.14 3,003,714.14
cost of the liabilities
instruments
Fair value 3,003,714.14 3,003,714.14
(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB Yuan
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion this
Increase Decrease Period-end Increase Decrease Period-end
in in among the Reporting
investees Period
North
Machinery 3,465,000. 3,465,000. 3,465,000. 3,465,000.
12.66%
(Group) 00 00 00 00
Co., Ltd.
Guangdon
g Huayue
8,780,645. 8,780,645. 8,780,645. 8,780,645.
Real 8.47%
20 20 20 20
Estate Co.,
Ltd.
Shenzhen
Internation
al Trade
8,500,000. 8,500,000.
Center 100.00%
00 00
Petroleum
Company
Limited
Guangzho
u
6,000,000. 6,000,000.
Lishifeng 30.00%
00 00
Automobil
e Co., Ltd.
Sanya East
1,350,000. 1,350,000. 1,350,000. 1,350,000. 0.28%
Travel
141
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Co., Ltd. 00 00 00 00
Shensan
17,695.09 17,695.09 17,695.09 17,695.09
Co., Ltd.
Macao
Huashen
81,339.81 5,504.85 86,844.66 81,339.81 5,504.85 86,844.66 10.00%
Enterprise
Co., Ltd.
Chongqing
Guangfa
Real estate 2,468,143. 2,635,180. 2,468,143. 2,635,180.
167,037.18 167,037.18 27.25%
developme 72 90 72 90
nt Co.,
Ltd.
Saipan 1,838,413. 1,962,832. 1,838,413. 1,962,832.
124,418.79 124,418.79 30.00%
Project 86 65 86 65
32,501,237 32,798,198 18,001,237 18,298,198
Total 296,960.82 296,960.82 --
.68 .50 .68 .50
(4) Changes of the impairment of the available-for-sale financial assets during this Reporting Period
Unit: RMB Yuan
Available-for-sale equity Available-for-sale debt Foreign currency
Category Total
instruments instruments statement translation
Balance of the withdrawn
impairment at the 18,001,237.68 18,001,237.68
period-begin
Withdrawal amount 296,960.82 296,960.82
Balance of the withdrawn
impairment at the 18,298,198.50 18,298,198.50
period-end
(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or temporarily fell but not
withdrawn the impairment provision
Unit: RMB Yuan
Item of
Falling range of Withdrawn Reason of not
available-for-sale Fair value of the Continued falling
Investment cost the fair value amount of withdrawn the
equity period-end time (month)
against the cost impairment impairment
instruments
Total 0.00 0.00 -- -- 0.00 --
Other notes
142
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Notes 1: The reason of the changes of the long-term equity investment of Macau Huashen Investment Co., Ltd., Saipan Project and
Chongqing Guangfa Housing Development Co., Ltd. and the impairment provision was occurred owing to the discount of the foreign
currency statement.
Notes 2: The Company had not dispatched any personnel to serve in Guangzhou Lishifeng Automobile Co., Ltd., Chongqing
Guangfa Housing development Co., Ltd. and Saipan Company, although the share holding proportion was more than 20% but lower
than 50%, it had no any significant influence and be recognized as the available for sale financial assets according to the cost
measurement.
Notes 3: In Jan. 2008, Shenzhen International Trade Center Automobile Industry Co., Ltd. and Shenzhen Guanghong Investment Co.,
Ltd. signed the Operation Contacts of the Gas Station Leasing, which agreed to the leasing the assets and equity as well as the
operating management power such as the land of the gas station, refueling tent, operating houses, dormitory and facility instrument of
gas station of the Shenzhen International Trade Center Petroleum Co., Ltd. (Shenzhen International Trade Center Automobile
Industry Co., Ltd. held 100% equity of it) by Shenzhen Guanghong Investment Co., Ltd. and be operated by the later with the leasing
period of 15 years. Since the starting date of the operating and leasing, the Company no more execute the control on Shenzhen
International Trade Center Petroleum Co., Ltd., and thus no more include it in the scope of the consolidation financial statement
according to the regulations of the ASBE.
Notes 4: The available-for-sale financial assets measured in fair value held by the Company were based on the final execution of The
Reorganization Plan of Gintian Industry (Group) Co., Ltd, the Company received 772,717 tradable A shares, 412,123 non-tradable A
shares and 447,217 B shares distributed by Gintian Industry on 26 January 2016. Counted on the price issued on the last trading date
before the trading suspension of Gintian Industry (10 Dec. 2014), RMB 2.09 per A share and RMB 1.04 per B share, the initial costs
shall be RMB 2,941,421.28. The increased original book value due to changes in exchange rate at the period end was RMB
62,292.86.
15. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
(2) Significant held-to-maturity investment at the period-end
Unit: RMB Yuan
Bond item Par value Nominal interest rate Actual interest rate Due date
(3) Re-classified held-to-maturity investment during this Reporting Period
Not applicable
Other notes
Not applicable
143
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value range
provision provision
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term accounts
receivable
Not applicable
Other notes
Not applicable
17. Long-term equity investment
Unit: RMB Yuan
Increase/decrease
Closing
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Opening Reduced Changes bonus or al of Closing of
Investees l recognize other
balance investmen of other profits impairme Other balance impairme
investmen d under comprehe
t equity announce nt nt
t the equity nsive
d to issue provision provision
method income
I. Joint ventures
Jifa
Warehous 30,789,34 1,473,898 32,263,24
e Co., 1.98 .63 0.61
Ltd.
Shenzhen
Tian’an
3,736,835 751,815.0 4,488,650
Internatio
.43 8 .51
nal
Building
144
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Property
Managem
ent Co.,
Ltd.
34,526,17 2,225,713 36,751,89
Subtotal
7.41 .71 1.12
II. Associated enterprises
Shenzhen
Wufang
Pottery & 18,983,61 18,983,61 18,983,61
Porcelain 4.14 4.14 4.14
Industrial
Co., Ltd.
Anhui
Nanpeng
13,824,00 13,824,00 13,824,00
Papermak
0.00 0.00 0.00
ing Co.,
Ltd.
32,807,61 32,807,61 32,807,61
Subtotal
4.14 4.14 4.14
67,333,79 2,225,713 69,559,50 32,807,61
Total
1.55 .71 5.26 4.14
Other notes
18. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □ Not applicable
Unit: RMB Yuan
Item Houses and buildings Land use right Construction in progress Total
I. Original book value
1. Opening balance 463,309,590.49 7,969,954.40 471,279,544.89
2. Increased amount
208,554,987.67 208,554,987.67
of the period
145
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(1) Outsourcing
(2) Transfer of
inventory\fixed
32,999,398.81 32,999,398.81
assets\project under
construction
(3) Increased from
enterprise merger
(4) Other disposal 175,555,588.86 175,555,588.86
3. Decreased
amount of the period
(1) Disposal
(2) Other transfer
4. Closing balance 671,864,578.16 7,969,954.40 679,834,532.56
II. Accumulative
depreciation and
accumulative
amortization
1.Opening balance 228,649,493.40 5,369,262.67 234,018,756.07
2. Increased amount
17,506,018.34 509,145.12 18,015,163.46
of the period
(1) Withdrawal or
17,506,018.34 509,145.12 18,015,163.46
amortization
3. Decreased
amount of the period
(1) Disposal
(2) Other transfer
4. Closing balance 246,155,511.74 5,878,407.79 252,033,919.53
III. Depreciation reserves
1.Opening balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased
146
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
amount of the period
(1) Disposal
(2) Other transfer
4. Closing balance
IV. Book value
1. Closing book
425,709,066.42 2,091,546.61 427,800,613.03
value
2. Opening book
234,660,097.09 2,600,691.73 237,260,788.82
value
(2) Investment property adopted fair value measurement mode
□ Applicable √ Not applicable
The Company needs to comply with the disclosure requirements of Guideline No. 3 of the Shenzhen Stock Exchange on the Industrial
Information Disclosure about Listed Companies’ Engagement in Real Estate Business
Investment properties measured in fair value by project disclosure:
Unit: RMB Yuan
Lease
Geographi income Reason for fair value
Building Opening Closing fair Range of fair
Name of project cal during this changes and report
area fair value value value changes
location Reporting index
Period
Whether the Company has new investment properties measured in fair value
(3) Details of investment properties with unaccomplished certification of property
Unit: RMB Yuan
Project Book value Reason
Other notes
Compared with the balance at the beginning of the year, the closing balance increased by 80.31%, which was mainly caused by the
receipt of assets of Dragon Garden Development Building F14, F15 for leasing and leasing properties, caused by the Company’s
leasing of the assets that was counted into investment properties. Please refer to Supplementary Note VII 13 Note 4 for the property
shift of assets of Dragon Garden Development Building F14, F15 in other liquidity assets.
19. Fixed assets
(1) List of fixed assets
Unit: RMB Yuan
147
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Houses and Transportation Electronic and Decoration of the
Item Total
buildings equipment other equipment fixed assets
1. Opening
balance
2. Increased
111,018,369.27 63,389,075.59 34,408,787.73 6,451,403.79 215,267,636.38
amount of the period
(1) Purchase 362,256.02 3,358,149.40 905,062.06 4,625,467.48
(2) Transfer of
project under 3,358,149.40 905,062.06 4,263,211.46
construction
3. Decreased
amount of the period
4. Closing
balance
1.Opening
362,256.02 362,256.02
balance
2. Increased
3,713,162.62 374,708.82 4,087,871.44
amount of the period
(1) Withdrawal 3,713,162.62 374,708.82 4,087,871.44
3. Decreased
amount of the period
(1) Disposal or
111,380,625.29 63,034,062.37 34,939,140.97 6,451,403.79 215,805,232.42
Scrap
4. Closing
balance
1.Opening
77,541,162.76 18,170,689.23 28,226,688.96 5,323,861.90 129,262,402.85
balance
4. Closing
3,025,839.01 11,176,397.24 1,631,701.18 386,776.97 16,220,714.40
balance
1. Closing book
2,728,454.47 11,176,397.24 1,631,701.18 386,776.97 15,923,329.86
value
2. Opening
297,384.54 297,384.54
book value
1. Opening
3,333,134.22 352,475.66 3,685,609.88
balance
2. Increased
3,333,134.22 352,475.66 3,685,609.88
amount of the period
(1) Purchase
148
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(2) Transfer of
project under 80,567,001.77 26,013,952.25 29,505,914.48 5,710,638.87 141,797,507.37
construction
3. Decreased
amount of the period
4. Closing
75,717.16 75,717.16
balance
1.Opening
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal or
Scrap
4. Closing
balance
1.Opening
75,717.16 75,717.16
balance
4. Closing
balance
1. Closing book
30,813,623.52 37,020,110.12 5,357,509.33 740,764.92 73,932,007.89
value
2. Opening
33,477,206.51 45,218,386.36 6,106,381.61 1,127,541.89 85,929,516.37
book value
(2) List of temporarily idle fixed assets
Unit: RMB Yuan
Accumulative Impairment
Item Original book value Book value Notes
depreciation provision
Houses and
4,059,207.77 2,308,114.25 1,751,093.52
buildings
(3) Fixed assets leased in from financing lease
Unit: RMB Yuan
Item Original book value Accumulative Impairment provision Book value
149
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
depreciation
(4) Fixed assets leased out from operation lease
Unit: RMB Yuan
Item Closing book value
(5) Details of fixed assets failed to accomplish certification of property
Unit: RMB Yuan
Item Book value Reason
Other notes:
20. Construction in progress
(1) List of construction in progress
Unit: RMB Yuan
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
(2) Changes of significant construction in progress
Unit: RMB Yuan
Of
Amount Proporti which:
Accumul
that on the Capitaliz
Other ative
transferr estimate amount ation rate
Estimate decrease amount
Name of Opening Increase ed to Closing d of the Project of the of the Capital
d d amount of
item balance d amount fixed balance project progress capitaliz interests resources
number of the capitaliz
assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
(3) List of the withdrawal of the impairment provision of the construction in progress
Unit: RMB Yuan
Item Withdrawn amount Reason
Other notes:
Not applicable
150
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
21. Engineering material
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
Not applicable
22. Liquidation of fixed assets
Unit: RMB Yuan
Item Closing balance Opening balance
Transportation equipment cleaning 85,556.34
Total 85,556.34
Notes:
23. Productive biological assets
(1) Productive biological assets adopted cost measurement mode
□ Applicable √ Not applicable
(2) Productive biological assets adopted fair value measurement mode
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) List of intangible assets
Unit: RMB Yuan
Business license
Item Land use right Patent right Non-patent right Software Total
of the taxies
I. Original book
value
1. Opening 170,866,146.80 18,260.00 170,884,406.80
151
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
balance
2. Increased
amount of the
period
(1) Purchase
(2) Internal
R&D
(3) Enterprise
combination
increase
3. Decreased
amount of the 18,260.00 18,260.00
period
(1) Disposal 18,260.00 18,260.00
4. Closing
170,866,146.80 170,866,146.80
balance
II. Accumulated
amortization
1. Opening
78,226,062.81 18,260.00 78,244,322.81
balance
2. Increased
amount of the 7,152,503.04 7,152,503.04
period
(1) Withdrawal 7,152,503.04 7,152,503.04
3. Decreased
amount of the 18,260.00 18,260.00
period
(1) Disposal 18,260.00 18,260.00
4. Closing
85,378,565.85 85,378,565.85
balance
III. Depreciation
reserves
1. Opening
balance
152
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Closing
balance
IV. Book value
1. Closing
85,487,580.95 85,487,580.95
book value
2. Opening
92,640,083.99 92,640,083.99
book value
The proportion of the intangible assets formed from the internal R&D through the Company amount the balance of the intangible
assets at the period-end was 0.00%.
(2) Details of fixed assets failed to accomplish certification of land use right
Unit: RMB Yuan
Item Book value Reason
Notes:
26. R&D expenses
Unit: RMB Yuan
Opening Closing
Item Increased amount Decrease
balance balance
Other notes:
Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB Yuan
153
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
(2) Impairment provision of goodwill
Unit: RMB Yuan
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses:
Not applicable
Other notes:
Not applicable
28. Long-term unamortized expenses
Unit: RMB Yuan
Amortization
Item Opening balance Increased amount Decrease Closing balance
amount
Facilities
reconstruction 1,297,321.41 172,976.28 1,124,345.13
expense
Renovation costs 727,400.66 355,354.68 372,045.98
Total 2,024,722.07 528,330.96 1,496,391.11
Other notes:
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment 125,379,771.44 31,287,140.16 57,759,280.17 14,401,252.75
154
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
provision
Unrealized internal sales
49,673,467.80 12,418,366.95 39,385,119.40 9,846,279.85
gain and loss
Deductible losses 29,134,805.61 7,283,701.41 30,376,338.54 7,594,084.64
Accrued land VAT 1,004,734,891.74 251,183,722.93 738,683,130.69 184,670,782.67
Estimated profit
calculated at pre-sale
289,951,359.60 72,487,839.90 93,163,091.00 23,290,772.75
revenue of property
enterprises
Payroll payable unpaid
143,852.61 35,963.15 1,293,791.92 323,447.97
but withdrawn
Accrued liabilities 5,201,315.32 1,300,328.83 834,999.50 208,749.88
Total 1,504,219,464.12 375,997,063.33 961,495,751.22 240,335,370.51
(2) Deferred income tax liabilities had not been off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
The book value of fixed
assets is larger than tax 57,950.04 14,487.51 95,940.98 23,985.24
basis
Total 57,950.04 14,487.51 95,940.98 23,985.24
(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB Yuan
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax
375,997,063.33 240,335,370.51 375,997,063.33
assets
Deferred income tax
14,487.51 23,985.24 14,487.51
liabilities
(4) List of unrecognized deferred income tax assets
Unit: RMB Yuan
155
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Item Closing balance Opening balance
Deductible loss 146,287,359.19 136,744,244.51
Impairment of assets 423,062,905.20 390,888,503.31
Expected profit of the real estate business
3,948,406.50 45,000.00
pre sale income calculation
Unrealized profit of internal transaction 22,979,696.86 29,202,247.96
Total 596,278,367.75 556,879,995.78
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB Yuan
Years Closing amount Opening amount Notes
2016 9,954,037.39 2011 deductible loss
2017 6,311,349.73 6,311,349.73 2012 deductible loss
2018 10,672,025.10 10,672,025.10 2013 deductible loss
2019 9,167,690.00 9,167,690.00 2014 deductible loss
2020 100,639,142.29 100,639,142.29 2015 deductible loss
2021 19,497,152.07 2016 deductible loss
Total 146,287,359.19 136,744,244.51 --
Notes:
30. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Housing purchase prepayment 7,271,224.00 7,275,069.00
Total 7,271,224.00 7,275,069.00
Notes:
31. Short-term loans
(1) Category of short-term loans
Unit: RMB Yuan
Item Closing balance Opening balance
Mortgage and guaranteed loan 8,000,000.00
Total 8,000,000.00
156
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Notes of short-term loans category
(2) List of the short-term loans overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 0.00, of which the situation of
the significant overdue but not return short-term borrowings as follows:
Unit: RMB Yuan
Entity Closing balance Borrowing rate Overdue time Overdue rate
Total 0.00 -- -- --
Notes:
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
Not applicable
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
The total amount of the due but not pay notes payable at the period-end was of RMB0.00.
35. Accounts payable
(1) List of accounts payable
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year (including 1 year) 298,389,610.44 102,357,186.61
1 to 2 years (including 2 years) 44,826,093.11 10,999,069.54
2 to 3 years (including 3 years) 9,793,533.80 20,968,866.58
3 to 4 years (including 4 years) 12,899,987.95 29,208,688.99
4 to 5 years (including 5 years) 26,356,677.30 1,054,522.02
157
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Over 5 years 27,660,236.79 26,936,604.80
Total 419,926,139.39 191,524,938.54
(2) Notes of the accounts payable aging over one year
Unit: RMB Yuan
Item Closing balance Unpaid/ Un-carry-over reason
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Bureau
Jiangsu Hanjian Group Co., Ltd 20,025,581.03 Unsettled
Hunan Construction Engineering Group 12,887,087.00 Unsettled
Zhanjiang West Guangdong Construction
6,900,257.48 Unsettled
Engineering Co., Ltd.
Shenzhen Yuanpeng Decoration Group
3,763,729.00 Unsettled
Co., Ltd.
Total 68,576,654.51 --
Other notes:
Compared with opening balance, the closing balance increased 119.25%, mainly caused by the increase of project payments that met
the settlement conditions in the period.
36. Advance from customers
(1) List of advance from customers
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year (including 1 year) 1,828,477,521.99 650,027,894.78
1 to 2 years (including 2 years) 401,822,962.96 1,802,283.71
2 to 3 years (including 3 years) 663,372.58 218,445.69
3 to 4 years (including 4 years) 36,216.10 950.00
4 to 5 years (including 5 years) 950.00
Over 5 years 320,204.02 320,204.02
Total 2,231,321,227.65 652,369,778.20
(2) Significant advance from customers aging over one year
Unit: RMB Yuan
Item Closing balance Unpaid/ Un-carry-over reason
158
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
SZPRD-Qianhai Gangwan Garden 95,068,490.00 Unsettled
SZPRD-Songhu Langyuan 304,579,451.00 Unsettled
Total 399,647,941.00 --
(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
Unit: RMB Yuan
Item Amount
Other notes:
Compared with the opening balance, the closing balance of advance increased by 242.03%, it mainly caused by the increase of
prepayment of houses.
The significant advance aging over one year in the Company was due to the fact that the prepayment of houses from the
Songhulangyuan Project and the Front Sea Harbor Garden Project was not counted into the income.
Prepayment of sale of real estate projects
Item Aging Closing balance Estimate finished time
SZPRD-Front Sea Harbour Within 1 year, 1-2 931,748,242.00 Completed
Garden Project years
SZPRD-Dongguang Within 1 year, 1-2 1,034,997,112.00 Sept. 2017
Songhulangyuan Project years
SZPRD-Hupan Yujing (II) Within 1 year 206,946,357.00 Dec. 2017
Total 2,173,691,711.00
37. Payroll payable
(1) List of Payroll payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 63,264,379.19 289,729,712.71 286,627,340.80 66,366,751.10
II. Post-employment
benefit-defined 424,363.30 27,983,599.03 27,836,889.92 571,072.41
contribution plans
III. Termination benefits 103,074.00 773,937.78 473,937.78 403,074.00
Total 63,791,816.49 318,487,249.52 314,938,168.50 67,340,897.51
159
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(2) List of Short-term salary
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus,
57,289,492.04 252,563,278.96 250,120,413.76 59,732,357.24
allowance, subsidy
2. Employee welfare 9,521,678.21 9,521,678.21
3. Social insurance 50,673.60 9,972,099.41 9,957,237.09 65,535.92
Including: 1. Medical
42,228.00 8,339,296.66 8,324,628.40 56,896.26
insurance premiums
Work-related injury
2,484.00 617,583.84 617,672.21 2,395.63
insurance
Maternity insurance 5,961.60 802,472.56 802,190.13 6,244.03
Other social insurance 212,746.35 212,746.35
4. Housing fund 1,124,577.90 9,541,150.66 9,786,572.80 879,155.76
5. Labor union budget
and employee education 4,799,635.65 7,912,784.99 7,022,718.46 5,689,702.18
budget
8. Non-monetary benefits 218,720.48 218,720.48
Total 63,264,379.19 289,729,712.71 286,627,340.80 66,366,751.10
(3) List of drawing scheme
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Basic pension benefits 414,427.30 22,335,657.34 22,185,001.31 565,083.33
Unemployment insurance 933,826.10 927,837.02 5,989.08
Annuity 9,936.00 4,714,115.59 4,724,051.59
Total 424,363.30 27,983,599.03 27,836,889.92 571,072.41
Notes:
The demission welfare withdrawn by relieving the labor relationship was of RMB 773,937.78 and the unpaid amount at the
period-end was of RMB 403,074.00.
38. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT 4,222,996.14 684,049.71
160
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Corporate income tax 222,564,198.00 78,927,414.58
Personal income tax 748,140.79 742,060.64
Urban maintenance and construction tax 75,644.46 576,383.19
Business tax 8,092,058.86
Stamp tax 24,807.75
Education Surcharge 39,326.29 250,010.86
Local education surtax 25,127.18 167,498.25
Land VAT 1,025,601,114.80 742,704,599.09
Property tax 1,153,374.78 1,125,407.71
Levee fee 2,534.58 451.42
Other 566,927.71 502,630.37
Total 1,254,999,384.73 833,797,372.43
Notes:
Compared to the opening balance, the closing balance increased by 50.52%, which was mainly from the increase of corporate income
tax and land value increment tax caused by the income from the Front Sea Harbor Garden Project with high transferred gross profits.
39. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term loan interest of installment
payment of interest and repay the due 467,184.76
capital
Interest paid for short-term loans 12,228.33
Total 479,413.09
Particulars of significant overdue unpaid interest:
Unit: RMB Yuan
Entity Overdue amount Overdue reason
Notes:
40. Dividends payable
Unit: RMB Yuan
Item Closing balance Opening balance
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
161
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB Yuan
Item Closing balance Opening balance
Margin 34,768,894.12 35,877,241.66
Accounts receivable of the related
31,511,011.04 31,511,011.04
companies
Accounts receivable of the non-related
49,280,571.06 44,937,756.84
companies
Other 16,521,698.32 15,917,070.14
Total 132,082,174.54 128,243,079.68
(2) Other significant accounts payable with aging over one year
Unit: RMB Yuan
Item Closing balance Unpaid/ Un-carry-over reason
Come-and-go accounts without specific
Shenzhen Jifa Warehouse Co., Ltd. 26,296,665.14
amortization period
Guangzhou Lishifeng Automobile Co., Come-and-go accounts without specific
15,344,017.08
Ltd. amortization period
Shenzhen International Trade Center Come-and-go accounts without specific
7,196,769.67
Petroleum Company Limited amortization period
Tianan International Building Property Come-and-go accounts without specific
5,214,345.90
Management Company of Shenzhen amortization period
Rainbow Department Store Co., Ltd 2,380,000.00 Margin within the leasing period
Total 56,431,797.79 --
Other notes:
42. Liabilities classified as holding for sale
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
43. Non-current liabilities due within 1 year
Unit: RMB Yuan
162
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Item Closing balance Opening balance
Long-term loans due within 1 year 121,243,352.00
Total 121,243,352.00
Notes:
44. Other current-liabilities
Unit: RMB Yuan
Item Closing balance Opening balance
Changes on short term bonds payable:
Unit: RMB Yuan
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Closing
Issue date Period current interest at current
the bond value amount balance amortizati balance
issue par period
on
Notes:
45. Long-term loan
(1) Category of long-term loan
Unit: RMB Yuan
Item Closing balance Opening balance
Guaranteed loan 144,840,006.83
Total 144,840,006.83
Notes of short-term loans category:
Other notes including interest rate range:
46. Bonds payable
(1) Bonds payable
Unit: RMB Yuan
Item Closing balance Opening balance
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual capital
securities of financial liabilities)
Unit: RMB Yuan
163
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end
Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end
Unit: RMB Yuan
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Notes to the basis of other financial instrument classified as financial liabilities
Other notes:
47. Long-term payable
(1) Long-term payable listed by nature of the account
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
48. Long term payroll payable
(1) List of long term payroll payable
Unit: RMB Yuan
Item Closing balance Opening balance
(2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
Unit: RMB Yuan
Item Reporting period Same period of last year
Plan assets:
Unit: RMB Yuan
Item Reporting period Same period of last year
Net liabilities (net assets) of defined benefit plans
Unit: RMB Yuan
Item Reporting period Same period of last year
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and uncertainty of the
164
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Notes:
49. Special payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance Formation reasons
Notes:
50. Accrued liabilities
Unit: RMB Yuan
Item Closing balance Opening balance Formation reasons
For details, please refer to
Pending litigation 5,201,315.32 834,999.50 Section XI. Financial Report
XIV. 2
Total 5,201,315.32 834,999.50 --
Other notes, including related important assumptions and estimates of accrued liabilities:
51. Deferred income
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance Formation reasons
Operating license
Operating license
plate rental income 8,802,625.05 1,293,221.64 7,509,403.41
plate rental
held to carry forward
International Trade Rental of
Center petroleum International Trade
10,270,000.00 1,400,000.00 8,870,000.00
rental income held to Center Petroleum
carry forward Co., Ltd.
Total 19,072,625.05 2,693,221.64 16,379,403.41 --
Items involved in government subsidies:
Unit: RMB Yuan
Amount accrued
Amount of newly Related to the
Item Opening balance in non-business Other changes Closing balance
subsidy assets/ income
income
Total 0.00 0.00 0.00 --
Notes:
165
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
52. Other non-current liabilities
Unit: RMB Yuan
Item Closing balance Opening balance
Utility specific fund 237,163.45 237,163.45
Housing principle fund 15,096,884.76 13,764,771.61
House warming deposit 7,770,164.12 7,784,938.18
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 27,476,957.21 26,667,849.33
Taxi Deposit 41,606,566.60 41,042,500.00
Equity of stripping the assets 18,253,188.54 19,771,409.10
Other 312,925.26 1,418,615.65
Total 114,773,265.38 114,706,662.76
Notes:
53. Share capital
Unit: RMB Yuan
Increase/decrease (+/-)
Opening Capitalization Closing
Newly issue
balance Bonus shares of public Other Subtotal balance
share
reserves
The sum of
595,979,092.00 595,979,092.00
shares
Notes:
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at
period-begin
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at
period-begin
Unit: RMB Yuan
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting period:
166
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Notes:
55. Capital reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium 38,450,087.51 38,450,087.51
Other capital reserves 81,501,446.42 81,501,446.42
Total 119,951,533.93 119,951,533.93
Other notes, including changes and reason of change:
56. Treasury stock
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other comprehensive income
Unit: RMB Yuan
Reporting period
Less: Amount
transferred
into profit and
loss in the
Amount After-tax After-tax
Opening current period Less: Closing
Item incurred attribute to attribute to
balance that income tax balance
before the parent minority
recognized expense
income tax company shareholder
into other
comprehensive
income in
prior period
II. Other comprehensive reclassified 3,349,054.7 3,349,054.7 -697,548.
-4,046,603.46
into profits or losses 6 6 70
Converted difference of the 3,349,054.7 3,349,054.7 -697,548.
-4,046,603.46
foreign currency financial statement 6 6 70
3,349,054.7 3,349,054.7 -697,548.
total -4,046,603.46
6 6 70
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses
transfer into arbitraged items:
167
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
58. Special reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
59. Surplus reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus
154,664,631.59 98,904,938.37 253,569,569.96
reserves
Total 154,664,631.59 98,904,938.37 253,569,569.96
Other note, including changes and reason of change:
The increase of the surplus reserves of this Reporting Period was due to the 10% withdrawal of the net profits of the parent company.
60. Retained profits
Unit: RMB Yuan
Item Reporting period Last period
Opening balance of retained profits before
1,233,358,112.55 1,225,726,944.83
adjustments
Opening balance of retained profits after
1,233,358,112.55 1,225,726,944.83
adjustments
Add: Net profit attributable to owners of the
354,857,241.74 156,819,966.71
Company
Less: Withdrawal of statutory surplus reserves 98,904,938.37 18,073,398.75
Dividend of common stock payable 47,678,327.36 131,115,400.24
Closing retained profits 1,441,632,088.56 1,233,358,112.55
List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
168
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
61. Revenues and operating costs
Unit: RMB Yuan
Reporting period Same period of last year
Item
Revenue Operating costs Revenue Operating costs
Main operations 2,007,281,361.26 859,628,761.18 1,025,534,654.51 631,134,598.38
Other operations 51,922,715.92 12,905,462.25 51,883,846.42 17,438,295.72
Total 2,059,204,077.18 872,534,223.43 1,077,418,500.93 648,572,894.10
62. Business tax and surcharges
Unit: RMB Yuan
Item Reporting period Same period of last year
Urban maintenance and construction tax 7,015,709.80 3,835,248.14
Education Surcharge 3,005,932.21 1,710,450.62
Property tax 4,219,993.35 3,531,389.54
Land use tax 791,671.61 726,610.67
Business tax 51,018,681.65 52,898,669.75
Local education surtax 2,003,032.54 1,035,781.13
Levee fee 1,034.51
Land VAT 401,830,883.57 95,776,519.92
Other 1,247,029.16 160,415.94
Total 471,132,933.89 159,676,120.22
Notes:
The taxes and associated charges for this period increased by 195.06% compared to those for the last period, which was caused by
the increase in the withdrawal of land value increment tax of transferred projects with high value increment ratio.
63. Sales expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee’s remuneration 4,610,951.37 4,562,356.24
Office expenses of operating institutions 5,916,032.75 6,755,310.83
Sales agency fee, advertising expense and
34,623,514.58 28,521,950.60
general publicity expense
Other 2,156,203.06 2,101,548.27
Total 47,306,701.76 41,941,165.94
169
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Notes:
64. Administrative expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee’s remuneration 61,868,797.26 62,531,485.31
Administrative office cost 24,229,550.40 21,137,197.32
Assets amortization and depreciation
5,346,052.13 4,717,738.87
expense
Litigation costs 271,461.06 2,497,654.50
Taxes 477,624.60 2,867,555.63
Other 7,335,116.34 9,216,495.16
Total 99,528,601.79 102,968,126.79
Notes:
65. Financial expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Interest expenses
Less: Interest income 22,856,495.15 8,509,056.15
Net losses of exchange -205,761.64 591.36
Other 654,818.04 993,775.48
Total -22,407,438.75 -7,514,689.31
Notes:
The amount of the financial expenses of the period decrease over the last period was mainly due to the decrease of the agreement
deposit and the 7-days notice deposit.
66. Asset impairment loss
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Bad debt loss 200,862.43 -8,020,498.14
II. Inventory falling price loss 98,434,474.85 99,884,437.85
Total 98,635,337.28 91,863,939.71
Notes:
170
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
67. Gains on the changes in the fair value
Unit: RMB Yuan
Source Reporting period Same period of last year
Notes:
68. Investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income
2,225,713.71 1,637,238.00
accounted by equity method
Investment income received from disposal of
5,709,098.20
available-for-sale financial assets
Others 392,034.89
Total 2,225,713.71 7,738,371.09
Notes:
69. Non-operating gains
Unit: RMB Yuan
Recorded in the amount of the
Item Reporting period Same period of last year
non-recurring gains and losses
Total gains from disposal of
33,279.06
non-current assets
Including: Gains from disposal
33,279.06
of fixed assets
Government subsidies 153,795.84
Confiscated income 253,480.41 153,231.52 253,480.41
Other 1,222,818.49 171,278,808.63 1,176,124.36
Total 1,476,298.90 171,619,115.05 1,429,604.77
Government subsidies recorded into current profits and losses
Unit: RMB Yuan
Whether
Whether
influence the Related to the
Distribution Distribution Special Reporting Same period
Item Nature/type profits or assets/
entity reason subsidy or period of last year
losses of the income
not
year or not
Note:
171
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
70. Non-operating expenses
Unit: RMB Yuan
Recorded in the amount of the
Item Reporting period Same period of last year
non-recurring gains and losses
Loss on disposal of non-current
182,886.11 601,245.35
assets
Including: Loss on disposal of
182,886.11 601,245.35 182,886.11
fixed assets
Taxes overdue payment fines
394,408.71 1,410,492.64 394,408.71
and other fines
Accrued liabilities losses 4,366,315.82 834,999.50 4,366,315.82
Other 24,462.42 30,000.00 24,462.42
Total 4,968,073.06 2,876,737.49 4,968,073.06
Notes:
71. Income tax expense
(1) Lists of income tax expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Current income tax expense 272,021,606.14 83,330,320.09
Deferred income tax expense -135,671,190.55 -23,758,594.67
Total 136,350,415.59 59,571,725.42
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB Yuan
Item Reporting period
Total profits 491,207,657.33
Current income tax expense accounted by tax and relevant
122,801,914.33
regulations
Influence of different tax rate suitable to subsidiary -81,519.52
Influence of income tax before adjustment 1,030,482.40
Influence of non taxable income -556,428.43
Influence of not deductible costs, expenses and losses 1,558,146.06
Influence of deductible losses of deferred income tax assets -17,132,127.59
172
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
derecognized used in previous period
Influence of deductible temporary difference or deductible losses
28,729,948.34
of deferred income tax assets derecognized in reporting period.
Income tax expense 136,350,415.59
Other notes:
72. Other comprehensive income
Refer to the Note. 57
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Large current funds received 1,100,000.00
Interest income 22,856,495.15 8,509,056.15
Net margins, security deposit and various
3,735,622.19
special funds received
Net amount of utilities, miscellaneous
fees and accident fee and other receivables 3,585,295.28 3,881,747.21
on behalf
Other small receivables 1,538,745.18 1,033,787.06
Total 31,716,157.80 14,524,590.42
Notes:
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Paying administration expenses in cash 32,688,077.92 30,726,090.13
Paying sales expenses in cash 48,106,186.66 26,398,187.28
Net margins, security deposit and various
9,405,053.02
special funds paid
Other small payments 400,419.95 1,518,295.15
Total 81,194,684.53 68,047,625.58
Notes:
173
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(3) Other cash received relevant to investment activity
Unit: RMB Yuan
Item Reporting period Same period of last year
Notes:
(4) Other cash paid relevant to investment activity
Unit: RMB Yuan
Item Reporting period Same period of last year
Notes:
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Notes:
(6) Other cash paid relevant to financing activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Handling charges of significant loans 104,500.00
Total 104,500.00
Notes:
74. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB Yuan
Supplementary materials Reporting period Last period
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 354,857,241.74 156,819,966.71
Add: Provision for impairment of assets 98,635,337.28 91,863,939.71
Depreciation of fixed assets, of oil-gas
34,235,877.86 31,793,964.69
assets, of productive biological assets
Amortization of intangible assets 7,152,503.04 7,152,503.04
Long-term unamortized expenses 528,330.96 528,330.96
174
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: 182,886.11 567,966.29
negative)
Financial cost (gains: negative) -62,292.86 275,874.59
Investment loss (gains: negative) -2,225,713.71 -7,738,371.09
Decrease in deferred income tax assets
-135,661,692.82 -23,782,579.91
(gains: negative)
Increase in deferred income tax liabilities
-9,497.73 23,985.24
(“-” means decrease)
Decrease in inventory (gains: negative) -250,568,299.21 -230,356,245.15
Decrease in accounts receivable from
-91,868,723.73 -12,169,078.01
operating activities (gains: negative)
Increase in payables from operating
2,236,845,226.49 484,005,911.67
activities (decrease: negative)
Other -189,218,539.08
Net cash flows generated from operating
2,252,041,183.42 309,767,629.66
activities
2. Investing and financing activities that do
-- --
not involving cash receipts and payment:
3. Net increase in cash and cash equivalents -- --
Closing balance of cash 2,857,353,056.85 933,337,815.77
Less: Opening balance of cash 933,337,815.77 808,963,376.68
Net increase in cash and cash equivalents 1,924,015,241.08 124,374,439.09
(2) Net Cash paid of obtaining the subsidiary
Unit: RMB Yuan
Amount
Of which: --
Of which: --
Of which: --
Notes:
(3) Net Cash receive of disposal of the subsidiary
Unit: RMB Yuan
Amount
Of which: --
175
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Of which: --
Of which: --
Notes:
(4) Cash and cash equivalents
Unit: RMB Yuan
Item Closing balance Opening balance
I. Cash 2,857,353,056.85 933,337,815.77
Including: Cash on hand 190,709.43 208,170.99
Bank deposit on demand 2,856,051,614.77 930,987,796.17
Other monetary funds on demand 1,110,732.65 2,141,848.61
III. Closing balance of cash and cash
2,857,353,056.85 933,337,815.77
equivalents
Notes:
Cash and cash equivalents do not include the cash and cash equivalents of RMB 12,402,160.00 with restricted use in the parent
company or the subsidiaries in the group. Please refer to Supplementary Note VII 1 for more details.
75. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
Not applicable
76. The assets with the ownership or use right restricted
Unit: RMB Yuan
Item Closing book value Restricted reason
Guarantee deposit, for details, please refer
Monetary capital 12,402,160.00
to Section XI Financial Report XIV. 2
Total 12,402,160.00 --
Notes:
77. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB Yuan
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary capital -- -- 54,131,152.52
176
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
HKD 60,515,542.22 0.8945 54,131,152.52
Other accounts receivable 527,398.54
Of which: HKD 76,026.89 6.9370 527,398.54
Available-for-sale financial assets 311,825.61
Of which: USD 348,603.25 0.8945 311,825.61
Accounts payable 50,092.00
Of which: HKD 56,000.00 0.8945 50,092.00
Notes:
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place, recording currency
and selection basis, if there are changes into recording currency, shall also disclose the reason.
√ Applicable □ Not applicable
Item Main Recording Basis for selection
operating currency
place
Shum Yip Properties Development Co., Ltd. Hong Kong HKD Located in HK, settled by HKD
and its subsidiary
78. Arbitrage
According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and been arbitraged risk qualitative and
quantitative information:
Not applicable
79. Other
Not applicable
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Unit: RMB Yuan
Name of Time and Cost of Proportion of Way to gain Purchase date Recognition Income of Net profits of
177
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
acquiree place of gaining the stock rights the stock basis of acquiree acquiree
gaining the stock rights rights purchase date during the during the
stock rights purchase date purchase date
to period-end to period-end
Notes:
Not applicable
(2) Combined cost and goodwill
Unit: RMB Yuan
Combination cost
Note to determination method, consideration and changes of fair value of combined cost:
Not applicable
The main formation reason for the large goodwill:
Not applicable
Notes:
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Unit: RMB Yuan
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Not applicable
Contingent liability of acquiree undertaken by business merger
Not applicable
Notes:
Not applicable
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and gaining the control
during this Reporting Period
178
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities of the
acquiree at acquisition date or closing period of the merge
Not applicable
(6) Other notes
There was no change in this Reporting Period.
2. Business combination under the same control
(1) Business combination under the same control during this Reporting Period
Unit: RMB Yuan
Income from Net profits
the from this
Recognition Income Net profits
period-begin Reporting
Combined Proportion of Combination basis of during the during the
Basis to the Period to the
party the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Notes:
Not applicable
(2) Combination cost
Unit: RMB Yuan
Combination cost
Note to contingent consideration or other changes:
Not applicable
Notes:
Not applicable
(3) The book value of the assets and liabilities of the combined party at combining date
Unit: RMB Yuan
Combination date Period-end of last period
179
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Contingent liabilities of the combined party undertaken in combination
Not applicable
Notes:
Not applicable
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies
whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights
and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant
information:
6. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Name of the Main operating Nature of Holding percentage (%)
Registration place Way of gaining
subsidiary place business Directly Indirectly
Shenzhen
Property
Huangcheng Real Shenzhen Shenzhen 95.00% 5.00% Set-up
development
Estate Co., Ltd.
Szprd Real Estate
Property
Development Co., Shenzhen Shenzhen 95.00% 5.00% Set-up
development
Ltd.
Prd Group
Xuzhou Dapeng Property
Xuzhou Xuzhou 100.00% Set-up
Real Estate development
Development
180
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Co.,Ltd.
Dongguan
International
Trade Center
Property
Changsheng Real Dongguan Dongguan 100.00% Set-up
development
Estate
Development Co.,
Ltd.
Prd Yangzhou
Real Estate Property
Yangzhou Yangzhou 100.00% Set-up
Development Co., development
Ltd.
Shenzhen
International
Trade Center Property
Shenzhen Shenzhen 95.00% 5.00% Set-up
Property management
Management Co.,
Ltd.
Shenzhen
Huangcheng Real
Property
Estate Shenzhen Shenzhen 100.00% Set-up
management
Management Co.,
Ltd.
Shandong
Shenzhen
International
Property
Trade Center Jinan Jinan 100.00% Set-up
management
Property
Management Co.,
Ltd.
Chongqing
Shenzhen
International
Property
Trade Center Chongqing Chongqing 100.00% Set-up
management
Property
Management Co.,
Ltd.
Chongqing
Ao’Bo Elevator Chongqing Chongqing Service 100.00% Set-up
Co., Ltd.
Shenzhen
Shenzhen Shenzhen Service 100.00% Set-up
Tianque Elevator
181
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Technology Co.,
Ltd.
Shenzhen
International
Trade Center
Property
Shenzhen Shenzhen Service 100.00% Set-up
Management
Engineering
Equipment Co.,
Ltd.
Shenzhen
International
Shenzhen Shenzhen Catering service 100.00% Set-up
Trade Center
Food Co., Ltd.
Shenzhen
Property
Project
Construction Shenzhen Shenzhen 100.00% Set-up
supervision
Supervision Co.,
Ltd.
Shenzhen Real
Shenzhen Shenzhen Service 100.00% Set-up
Estate Exchange
Shenzhen
International
Trade Center Shenzhen Shenzhen Service 90.00% 10.00% Set-up
Vehicles Industry
Co., Ltd.
Shenzhen
International
Trade Center Shenzhen Shenzhen Service 100.00% Set-up
Motor Rent Co.,
Ltd.
Shenzhen Tesu
Vehicle Driver
Shenzhen Shenzhen Service 100.00% Set-up
Training Center
Co., Ltd.
Shenzhen
International Shenzhen Shenzhen Trading 95.00% 5.00% Set-up
Trade Plaza
Sichuan Tianhe
Chengdu Chengdu Trading 100.00% Set-up
Industry Co., Ltd.
Zhanjiang Zhanjiang Zhanjiang Property 100.00% Set-up
182
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Shenzhen Real development
Estate
Development Co.,
Ltd.
Business
Shenzhen
combination
Shenxin Taxi Co., Shenzhen Shenzhen Service 100.00%
under the same
Ltd.
control
Shum Yip
Properties Property
Hong Kong Hong Kong 100.00% Set-up
Development Co., development
Ltd.
Wayhang
Property
Development Co., Hong Kong Hong Kong 100.00% Set-up
development
Ltd.
Chief Link
Property
Properties Co., Hong Kong Hong Kong 70.00% Set-up
development
Ltd.
Business
Syndis
Property combination not
Investment Co., Hong Kong Hong Kong 100.00%
development under the same
Ltd.
control
Notes: holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been
controlled investee:
Naught
Significant structure entities and controlling basis in the scope of combination:
The Company and controlling shareholders in Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as “SIH”) entered into
Asset Replacement Agreement in Sep. 2010, agreeing that the Company replaces Moon Bay T102-0237 land and 100% equity of
Shenzhen Shenxin Taxi Co., Ltd. (hereinafter referred to as “SX Company”) possessed by SIH with parts of house property owned
by the Company and wholly-owned subsidiary Shenzhen Huangcheng Real Estate Co., Ltd. In order to optimize structure of
replaced asset, SIH agrees that assets and liabilities which are not suitable to be included into the listed company such as non-market
commodity house and non-performing loans and debts owned by SX Company and shown in No. [2010] 103 file of SIH (hereinafter
referred to as “Divestiture Assets of SX Company” or “Divestiture Assets”) will not be incorporated into scope of replacement and
will be divested. In principle, Divestiture Assets shall handle procedures of registration of transfer and transfer of credit and debt.
SIH, Shenzhen Foreign Economy & Trade Investment Co., Ltd. (hereinafter referred to as FET Company”) and SX Company signed
Contract on Transfer of Divestiture Assets in Jun. 2012.
According to agreement of the Contract, SIH requires SX Company to transfer Divestiture Assets to FET Company for management.
183
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Since there are legal impediments in partial transfer of Divestiture Assets, FET Company and SX Company concluded and signed
Contract on Entrusted Management of Divestiture Assets and Liabilities, promising that FET Company has entrusted SX Company to
liquidate, manage and dispose of Divestiture Assets. The entrusted period ends on Dec. 31, 2014. Since there are legal impediments
in partial transfer of Divestiture Assets, FET Company and SX Company concluded and signed Supplement Contract on Entrusted
Management of Divestiture Assets and Liabilities, promising that FET Company has entrusted SX Company to liquidate, manage
and dispose of Divestiture Assets. The entrusted period ends on Sept. 30, 2016. SX Company paid for FET Company with
RMB313,000 income obtained from assets operation from Jun. 1, 2012 to Dec. 31, 2012. Since then SX Company will pay
RMB626,000 to FET Company each year and the remaining incomes gained from assets operation will be possessed by SX
Company.
Balance of Divestiture Assets as of December 31, 2015 in consolidated statements is as follows:
Item Amount Item Amount
Other accounts receivable 50.00 Other account payable 682,423.08
Investment property 8,580,490.93 Other non-current liabilities 16,736,122.98
Fixed assets 8,709,125.23
Long-term unamortized expenses 128,879.90
Total assets 17,418,546.06 Total liabilities and owners’ 17,418,546.06
equity
Notes: other non-current liabilities shall belong to equity of SIH Divestiture Assets.
Through the above Contract on Entrusted Management of Divestiture Assets and Liabilities, the Company has actually controlled SX
Company’s Divestiture Assets which become a business entity with control rights by entrusted business mode.
Basis of determine whether the Company is the agent or the principal:
Naught
Notes:
As of the end of reporting period, the balance of minority shareholders was RMB 862,087.06; there was no significant non-wholly
owned subsidiary in the Company.
(2) Significant not wholly owned subsidiary
Unit: RMB Yuan
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name of the subsidiary arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Naught
Notes:
Naught
184
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB Yuan
Name of Closing balance Opening balance
the Non-curr Non-curr Non-curr Non-curr
current Total Current Total current Total Current Total
subsidiar ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
y assets liability assets liability
Unit: RMB Yuan
Reporting period Same period of last year
Name of the Total Total
Operation Operating Operation Operating
subsidiary Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Notes:
Naught
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Naught
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated financial
statements
Naught
Notes:
Naught
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
Naught
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the parent
company
Unit: RMB Yuan
185
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Other notes:
Naught
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Holding percentage (%) Accounting
treatment of the
Main operating Nature of investment of
Name Registration place
place business Directly Indirectly joint venture or
associated
enterprise
Shenzhen Jifa
Warehouse Co., Shenzhen Shenzhen Warehouse serve 50.00% Equity method
Ltd.
Tianan
International
Building Property Property
Shenzhen Shenzhen 50.00% Equity method
Management management
Company of
Shenzhen
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
The Company’s long term equity investment had withdrawn bad debt provision for the associate enterprise of Shenzhen Wufang
Pottery & Porcelain Industrial Co., Ltd., Shenzhen International Trade Center Industrial Development Co., Ltd. and Anhui Nanpeng
Papermaking Co., Ltd. Now the aforesaid companies’ financial statement cannot be obtained, thus, the Company believed that they
were insignificant associate enterprises.
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not
have a significant impact:
Naught
(2) Main financial information of significant joint venture
Unit: RMB Yuan
Closing balance/ reporting period Opening balance /last period
Tianan International Tianan International
Shenzhen Jifa Warehouse Shenzhen Jifa Warehouse
Building Property Building Property
Co., Ltd. Co., Ltd.
Management Company Management Company
186
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
of Shenzhen of Shenzhen
Current Assets 42,814,855.50 9,064,341.43 38,895,590.21 5,555,289.81
Of Which: Cash And
31,101,797.08 8,288,829.43 27,170,290.21 5,279,230.56
Cash Equivalence
Non-Current Assets 42,161.35 58,229,659.74 112,137.15 59,395,951.93
Total Assets 42,857,016.85 67,464,960.84 39,007,727.36 64,951,241.74
Current Liabilities 17,556,069.50 2,938,479.66 14,868,217.22 3,372,557.80
Non-Current Liability 16,323,646.35 16,665,839.28
Total Liabilities 33,879,715.85 2,938,479.66 31,534,056.50 3,372,557.80
Equity Attributable To
Owners Of Parent 8,977,301.00 64,526,481.18 7,473,670.86 61,578,683.94
Company
Portion Of Net Assets
Calculated According To
4,488,650.50 32,263,240.59 3,736,835.43 30,789,341.97
Proportion Of
Shareholdings
Book Value Of Equity
Investment To Joint 4,488,650.51 32,263,240.61 3,736,835.43 30,789,341.97
Venture
Operation Revenue 17,250,530.88 7,200,424.80 18,022,357.14 6,676,118.83
Financial Expenses 101,183.88 -18,780.31 87,226.94 -8,792.28
Income Tax Expense 502,951.30 717,183.63 494,157.26 599,795.60
Net Profit 1,503,630.15 2,947,797.24 1,457,548.83 1,816,927.18
Total Comprehensive
1,503,630.15 2,947,797.24 1,457,548.83 1,816,927.18
Income
Other notes:
Naught
(3) Main financial information of significant associated enterprise
Unit: RMB Yuan
Closing balance/ reporting period Opening balance /last period
Other notes:
The Company’s long term equity investment had withdrawn bad debt provision for the associate enterprise of Shenzhen Wufang
Pottery & Porcelain Industrial Co., Ltd., Shenzhen International Trade Center Industrial Development Co., Ltd. and Anhui Nanpeng
Papermaking Co., Ltd. Now the aforesaid companies’ financial statement cannot be obtained, thus, the Company believed that they
were insignificant associate enterprises.
187
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(4) Summary financial information of insignificant joint venture or associated enterprise
Unit: RMB Yuan
Closing balance/ reporting period Opening balance /last period
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes:
Naught
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the Company
Naught
(6) The excess loss of joint venture or associated enterprise
Unit: RMB Yuan
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in previous share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes:
Naught
(7) The unrecognized commitment related to joint venture investment
Naught
(8) Contingent liabilities related to joint venture or associated enterprise investment
Naught
4. Significant common operation
Name Main operating place Registration place Nature of business Proportion /share portion
188
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
Naught
Basis of common operation as a single entity, classify as common operation
Naught
Other notes:
Naught
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
Naught
6. Other
Naught
X. The risk related financial instruments
The financial instruments of the Group include: monetary fund, the available for sale financial assets, loan, accounts receivable and
notes receivable, accounts payable and notes payable, etc, for details, see disclosure in each note.
1. Credit risk
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the other party.
The Group manages the credit risk according to the combination of credit risk classification; the credit risk mainly occurred in bank
deposit, account receivable and other account receivables. The source of credit risk of financial assets was the default of the other
party. The biggest risk exposure was equivalent to book value of the instruments.
The Group’s working capital was in bank with higher credit rating, so there was no significant credit risk, nor significant losses due
to the default of other entity.
There were lots of account receivables withdrawn individually in the Group and had withdrawn bad debt provision, which fully
reveal the existence of credit risk. Amount of balance of account receivables was RMB 33.8771 million except the aforesaid had
withdrawn bad debt provision, mainly was the account receivable of property management, of which was account receivable RMB
3.1457 million of Huawei Technologies Co., Ltd. was the total property management costs of several serve district of Huawei
Technology Center. Other client receivables were widely dispersed owners and tenants. The Group conducted continuous supervisor
to the account receivables to ensure the Group not facing significant bad debt risk.
For the quantized data of credit risk exposure incurred by account receivables and other account receivables, see 2, Note (VII) and 4,
Note (VII).
2. Liquidity risk
189
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Liquidity risk was referred to the risk of incurring capital shortage when performing settlement obligation in the way of cash payment
or other financial assets.
The subsidiary of the Group monitor the cash flow and the need of itself, the headquarters of the finance department combine the
cash flow of each subsidiary, continue to monitor the short term or long term capital needs to ensure maintain plenty of cash flow.
Besides, according to the actual capital need of the Group, provided commitment of adequate emergency capital to meet the short
term and long term capital need.
The analysis of maturity term made by the Group’s financial liabilities in line with non discount cash flow of the contracts:
3. Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the change of market
price, including: exchange rate risk, interest rate risk and other price risk.
(1) Exchange rate risk
Exchange rate risk is referred to the fair value and future cash flow of financial instruments change due to the change of foreign
exchange rate.
Sensitive analysis of foreign exchange risk was as followed.
Reflecting under the hypothesis of other variables constant, listed the reasonable and possible change of foreign exchange, due to the
fair value of the monetary assets and monetary liabilities changes will impact on net income and shareholders' equity
Item Reporting period Last year
Influence to the profits Influence to equity of Influence to the profits Influence to equity of
shareholders shareholders
RMB down 2% against HKD 4,178.87 -1,074,320.99 17,907.03 -1,010,786.30
RMB up 2% against HKD -4,178.87 1,074,320.99 -17,907.03 999,629.25
RMB down 2% against USDD -10,547.97 -10,547.97
RMB up 2% against USD 10,547.97 10,547.97
Notes 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Notes 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
(2) Interest rate risk
Interest rate risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the change of market
interest risk.
The interest risk of the Group incurred from bank loan, interest rate risk of a floating interest rate of financial liabilities that lead to
the group facing cash flow interest rate risk, financial liabilities with a fixed interest rate lead to the group facing cash flow interest
rate risk. The Group’s interest-bearing debt situation was as followed:
Type Closing balance Opening balance
Interest-bearing debt from fixed interest rate 144,840,006.83 144,840,006.83
Of which: short term loan
Non-current liabilities due within one years
190
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Long-term borrowings 144,840,006.83 144,840,006.83
Interest-bearing debt from floating interest rate 129,243,352.00 129,243,352.00
Of which: short term loan 8,000,000.00 8,000,000.00
Non-current liabilities due within one years 121,243,352.00 121,243,352.00
Long-term borrowings
Total 274,083,358.83 274,083,358.83
The management conducting sensitive analysis, the change of 25 BP increase or decrease was considered as reasonable reflection of
possible range of interest rate. Base on the assumption of aforesaid floating interest rate of long-term borrowing paid by the due date,
and in a full accounting year will not be required to pay, under the situation of other variable remain constant, the influence of
interest rate increase / decrease 25 BP to net profits and shareholders:
Item Reporting period Last period
Influence to the Influence to equity Influence to the Influence to equity
profits of shareholders profits of shareholders
Increase 25 BP -6,314.76
Decrease 25 BP 6,314.76
Notes 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Notes 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
1. Fair value
See note (XI) for details.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Unit: RMB Yuan
Closing fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(II)Available-for-sale
3,003,714.14 3,003,714.14
financial assets
(2) equity instrument
3,003,714.14 3,003,714.14
investment
The total amount of assets
3,003,714.14 3,003,714.14
measured at fair value
II. Inconsistent fair value -- -- -- --
191
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
Transferred the systematic closing price among the stock of small and medium sized enterprises nationwide on 31 Dec.2016
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 2
Not applicable
4. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 3
Not applicable
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing book value of
consistent fair value measurement items at level 3
Not applicable
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens among
consistent fair value measurement items at different levels
Not applicable
7. Changes in the valuation technique in the current period and the reason for change
Not applicable
8. Fair value of financial assets and liabilities not measured at fair value
Not applicable
9. Other
Not applicable
192
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
XII. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of voting
Proportion of share
rights owned by
Name of parent held by parent
Registration place Nature of business Registered capital parent company
company company against the
against the Company
Company (%)
(%)
Shenzhen
Managing
Investment Holdings Shenzhen RMB 21.45 billion 63.82% 63.82%
state-owned assets
Co., Ltd
Notes: Information on the parent company:
The Company’s actual controlling shareholder is Shenzhen Investment Holdings Co., Ltd., and also is a sole state-funded limited
company. As a government department, Shenzhen State-owned Assets Supervision and Administration Bureau manage Shenzhen
Investment Holdings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality.
Thus, the final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.
Notes:
2. Subsidiaries of the Company
See details to Notes IX. 1
3. Information on the joint ventures and associated enterprises of the Company
See details to Notes IX. 3
Information on other joint venture and associated enterprise of occurring related party transactions with the Company in reporting
period, or form balance due to related party transactions in previous period:
Name Relationship
Other notes:
4. Information on other related parties of the Company
Name Relationship
Shenzhen Guesthouse Restaurant Under the same control of the parent company of the Company
Shenzhen Foreign Economy & Trade Investment Co., Ltd. Under the same control of the parent company of the Company
Shenzhen Investment Holdings Co., Ltd. Under the same control of the parent company of the Company
Other notes:
193
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Unit: RMB Yuan
The approval trade Whether exceed trade Same period of last
Related-party Content Reporting period
credit credit or not year
Information of sales of goods and provision of labor service
Unit: RMB Yuan
Related-party Content Reporting period Same period of last year
Shenzhen Investment Holdings
Provision of labor service 0.00 259,084.80
Co., Ltd.
Notes:
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
Unit: RMB Yuan
Name of the Name of the Income
entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in this
ee contractor Reporting Period
Notes:
Lists of entrust/contractee
Unit: RMB Yuan
Name of the Name of the Charge
entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in this
ee contractor Reporting Period
Notes:
(3) Information of related lease
The Company was lessor:
Unit: RMB Yuan
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
The Company was lessee:
Unit: RMB Yuan
The lease income confirmed in
lessor Category of leased assets Category of leased assets
this year
194
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Shenzhen Investment Holdings
Rental 351,692.04 344,842.92
Co., Ltd.
Notes:
(4) Related-party guarantee
The Company was guarantor:
Unit: RMB Yuan
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was Secured party
Unit: RMB Yuan
Execution accomplished
Guarantor: Guarantee amount Start date End date
or not
Notes:
(5) Inter-bank lending of capital of related parties：
Unit: RMB Yuan
Amount borrowed and
Related-party Initial date Due date Explanation
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
Unit: RMB Yuan
Related-party Content Reporting period Same period of last year
(7) Rewards for the key management personnel
Unit: RMB Yuan
Item Reporting period Same period of last year
Total rewards for the key management
5,823,200.00 5,985,900.00
personnel( tax included)
(8) Other related-party transactions
Related party entrusted operating
In Nov. 2012, Shenzhen Foreign Economy & Trade Investment Co., Ltd. (hereinafter referred to as FET Company”) and Shenzhen
Shenxin Taxi Co., Ltd. (hereinafter referred to as “SX Company”) concluded and signed Contract on Entrusted Management of
195
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Divestiture Assets and Liabilities, promising that FET Company has entrusted SX Company to liquidate, manage and dispose of
Divestiture Assets, see 2, Section X Financial Report, IX, 1. According to the Contract on Entrusted Management, during reporting
period, SX Company paid the assets operating income of RMB 626,000 to FET Company.
During the entrusted operating period in 2016, the situation of divestiture assets was as followed:
Item Amount
Operation revenue 2,654,689.17
Operation cost 2,285,299.11
Business tax and surcharges 141,071.76
Administrative expenses 809,871.73
Total profits -581,553.43
Income tax expense -145,388.36
Net profit -436,165.07
Notes: the management costs included paying operation income of RMB 626,000 to FET Company.
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB Yuan
Closing balance Opening balance
Name of item Related-party
Book balance Bad debt provision Book balance Bad debt provision
Anhui Nanpeng
Other accounts
Papermaking Co., 8,899,040.00 8,899,040.00 8,047,712.00 8,047,712.00
receivable
Ltd.
Shenzhen Wufang
Other accounts
Pottery & Porcelain 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
receivable
Industrial Co., Ltd.
Shenzhen
Other accounts
Guesthouse 909,960.40 909,960.40 909,960.40 909,960.40
receivable
Restaurant
(2) Payables
Unit: RMB Yuan
Name of item Related-party Closing book balance Opening book balance
Shenzhen Jifa Warehouse Co.,
Other account payable 26,296,665.14 26,296,665.14
Ltd.
196
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Tianan International Building
Other account payable Property Management 5,214,345.90 5,214,345.90
Company of Shenzhen
7. Related party commitment
No such case in reporting period.
8. Other
Not applicable
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Naught
5. Other
Naught
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
Item Closing amount
Large amount contract of real estate development project signed but derecognized in 732,120,001.81
197
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
financial statements.
Total 732,120,001.81
2. Contingency
(1) Significant contingency at balance sheet date
A. About transferring Jiabin Building contentious matter ( Now rename as: Longyuan Development Building; former name
Jinlihua Commercial Plaza）
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building (name of Jiabin Building has been changed
to Jinlihua Commercial Plaza) with Shenzhen Haibin Property Development Co., Ltd. (name of which has been changed to Shenzhen
Jiyong Property Development Co., Ltd., hereinafter referred to as Jiyong Company). In January 1999, Jiyong Company sued the
company to Guangdong Higher People’s Court (hereinafter referred to as “Guangdong Higher Court”) for termination of the transfer
contract and refund of the transfer consideration and construction payment paid on the ground that the area of premises was in
discrepancy with the contract. With respect to this, the Company counterclaimed the opposing party to pay back the rest transfer
consideration and applied for sealing up their property with an area of 28,000 square meters.
On July 29, 2001, Guangdong Higher Court issued Civil Court Judgment YGFM (1999) No. 3 (hereinafter referred to as Judgment
No. 3) to judge that ① the Company should transfer the title of land use right specified in the transfer contract to Jiyong Company
within 30 days from the date the judgment taking into effect and ②Jiyong Company should pay off the transfer consideration
amounting to RMB143, 860,000.00 within 60 days from the date the Company transferred the title of land use right. On November
27, 2001, the Company applied to Guangdong Higher Court for forcible execution, however Guangdong Higher Court adjudicated to
release the sealing property of Jiyong Company approximately 10,000 square meters since Industrial & Commercial Bank of China
Zhejiang Branch disagree to seal the properties.
The Company thought the applicable law of the decision was error, and raised an objection to High Court of Guangdong province.
In Sep.2005, the High Court of Guangdong province delivered unlocked decision to the Departments of Land and House Property
Registers of Shenzhen. The aforesaid about ten thousand square meters of real estate was officially unlocked.
In January 2006, Guangdong Higher Court issued Civil Court Judgment YGFZ (2002) No. 1 and adjudicated because that ① the
Company has not yet transferred the title of land use right specified in the transfer contract to Jiyong Company and ② Jiyong
Company cannot provide other properties available for execution and the Company also cannot provide the property available for
execution, the second judgment of the Judgment No. 3 - “Jiyong Company should pay off the transfer consideration amounted
RMB143,860,000 within 60 days from the date the Company transferred the title of land use right” is terminated for execution. When
the conditions causing termination for execution of the second judgment are eliminated, the second judgment should still be
executed.
In March 2006, according to the ordain of Guangdong Higher People’s Court, the properties in Jiabin Building that have been sealed
up in this case have been released automatically. On September 2009, company received YGFZ (2002) No. 1-1 Resume Execution
Notice from Guangdong Province Higher Court claimed to resume execution the case that the transfer money owed by Jiyong
company about Jiabin building project.
In October 2009, the Company received (Verdict YGFZ (2002) No. 1-2) from Guangdong Higher Court. The verdict claimed: The
resume execution of this case is according to the "The requirements for the Guangdong Higher Court to concentrate the
implementation of accumulated cases" Through the investigation conducted by Guangdong Higher Court to Shenzhen department of
motor vehicles, Shenzhen Securities Registration and Settlement Organizations, Shenzhen Land resources and real estate
198
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
administration and the opening bank of the executed party, the executed party – Jiyong Company does not have any executable
property. For these, Guangdong Higher Court adjudicated: ① Terminate the executive procedure of Verdict YGFZ (2002) No. 1②
When the execution conditions are satisfied, the applicant can apply for resume execution.
According to note (VII) 3, Shenzhen Longyuan-Kaili-Hengfeng Real Estate Co., Ltd. (hereinafter as the “Longyuan-Kaili”) and
Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter as the “Huaneng Property”) plan to conduct reconstructions to the plaza, On
3 mar. 2011, the Company, The First Administration Under Shenzhen Planning And Land Resources Committee Directly and
Longyuan-Kaili had registered the land of Jin Lihua Building to its name according to SDHZ (1992) No. 0228 Second Supplementary
Agreement of Shenzhen Grant Contract of Land Use Right signed in 2011 and Meeting Summery about Research of Dealing with
Problem Building Issued (No. 481) by Shenzhen Municipal Government.
In April 2012, the Company raised the subrogation right lawsuit to Shenzhen Luohu District People's Court, based on the creditor’s
right for Jiyong Company decided by the Civil Ruling Paper YGFMC (1999) No. 3, prosecuting the obligor of Jiyong
Company—Shenzhen Zongli Investment Co., Ltd. (hereinafter referred to as “Zongli Company”), which was required to compensate
for the Company within its debt range for Jiyong Company. Meanwhile, due to it was highly similar in the management level of
Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter referred to as “Huaneng-Jindi Company”) and Zongli Company, the
Company believed that there was significant related-party relationship between Huaneng-Jindi Company and Zongli Company,
therefore, the Company also prosecuted Huaneng-Jindi Company, which was required to undertake the joint liability for the debts
born by Zongli Company. On 11 Sep. 2013 Shenzhen Luohu District People's Court issued (2012) SLFMECZ No. 1150paper of civil
judgment; the decision rejected the Company’s claims. The Company refused to accept the verdict, has instituted an appeal to the
Shenzhen Intermediate People's Court, In Mar. 2015, Shenzhen Intermediate People's Court made Civil Judgment (2014) SZFSZZ
No. 400, the decision to reject the appeal of the Company, and maintain the original judgment.
As the executable property are not found in the case so far, the Company withdraw bad debt provision for Shenzhen Jiyong
Properties & Resources Development Company‘s transfer amount of Jin Lihua Commercial Plaza. In Aug. 2015, the Company as a
creditor applied to Shenzhen Intermediate People's Court for the bankruptcy and insolvency of Shenzhen Jiyong Properties &
Resources Development Company, now the Company is waiting for acceptance and inspection.
B. Lawsuit item about land approval of Meisi Company
In June 2004, Shenzhen Meisi Industrial Co., Ltd. (hereinafter referred to as “Meisi Company”) prosecuted Shenzhen Luohu
Economic Development Co., Ltd and the Company to Shenzhen Intermediate People’s Court(hereinafter referred to as “Shenzhen
Intermediate Court”) for illegal use of land owned by Meisi Company and request for ceasing the infringing act and receiving a
compensation amounted RMB8 million. In March 2005, Shenzhen Intermediate Court issued Civil Ruling Paper SZFMCZ (2004)
No. 108 and adjudicated that the Company should return the land with an area of 4,782 square meters to Meisi Company within 3
months and other claims of Meisi Company were overruled. The Company refused to accept the verdict and appealed to Guangdong
Higher Court. On November 25, 2005, Guangdong Higher Court adjudicated that the Civil Ruling Paper SZFMCZ (2004) No. 108
issued by Shenzhen Intermediate Court should be cancelled and the prosecution of Meisi Company were overruled.
During the process of trial of second instance, Meisi Company applied to Registration Center for Property of Real Estate of Shenzhen
Municipality for revoking Property Ownership Certificates SFDZ No. 3000320987 and No. 300119899 owned by the Company. On
July 7, 2005, Registration Center for Property of Real Estate of Shenzhen Municipality issued the reply of SFDH (2005) No. 84 to
Meisi Company and judged that aforesaid certificates are legal and effective and should not be revoked. Meisi Company disagreed
with this judgment and applied the administrative reconsideration to the People's Government of Shenzhen Municipality. On October
8, 2005, the People's Government of Shenzhen Municipality issued Decision on Administrative Reconsideration SFFJ (2005) No.
294 and judged that aforesaid 2 certificates were registered illegally and should be revoked, reply of SFDH (2005) No. 84 was
canceled accordingly.
199
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
The Company refused to accept Decision on Administrative Reconsideration SFFJ (2005) No. 294 and prosecuted an administrative
litigation to Shenzhen Intermediate Court on October 20, 2005. Shenzhen Intermediate Court issued Administrative Judgment
SZFXCZ (2005) No. 23 and adjudicated that Decision on Administrative Reconsideration SFFJ (2005) No. 294 is sustained. The
Company disagreed with this administrative judgment and appealed to Guangdong Higher Court on August 2, 2006. Guangdong
Higher Court issued Administrative Judgment YGFXZZ (2006) No. 154 in which the appeal was rejected and Administrative
Judgment SZFXCZ (2005) No. 23 was sustained. According to this Judgment, Shenzhen Municipal Bureau of Land Resources and
Housing Management would reconsider the request of Meisi Company to revoke the Property Ownership Certificates SFDZ No.
3000320987 and No. 3000119899 of the Company.
On May 15, 2007, Registration Center for Property of Real Estate of Shenzhen Municipality issued Decision on Revoking the
Property Ownership Certificates SFDZ No. 3000320987 and No. 3000119899 (SFZ (2007) No. 27). Registration Center for Property
of Real Estate of Shenzhen Municipality decided to revoke property ownership certificates SFDZ No. 3000320987 and No.
3000119899 owned by the Company that indicating the ownership of occupied property of Meilin Workshop, Comprehensive
Building and the land use right of 11,500 square meters and restore the registration of the ownership of occupied property of Meilin
Workshop, Comprehensive Building and the land use right of certificates of SFDZ No. 0103142 and No. 0103139. The Company had
the ownership of occupied property of Meilin Workshop, Comprehensive Building and the land use right of 11,500 square meters
according to original property ownership certificates.
On July 9,2007, the Company applied the administrative reconsideration to the Administrative Reconsideration Office of the People’s
Government of Shenzhen Municipality, which considered that those action that Registration Center for Property and Real Estate of
Shenzhen Municipality revoked property ownership certificate SFDZ No. 3000320987 and No. 3000119899 owned by the Company
and restore the registration of Meilin Workshop, Comprehensive Building and land use right violated the provisions of the Decision
on Strengthening Land Market Management and further Enlivening and Standardizing Real Estate Market (SF (2001) No. 94)
promulgated by People’s Government of Shenzhen Municipality, and requested People’s Government of Shenzhen Municipality to
rescind the Decision. On September 6, 2007, the People’s Government of Shenzhen Municipality issued Decision on Administrative
Reconsideration SFFJ (2007) No. 255 to sustain the administrative decision of Shenzhen Municipal Bureau of Land Resources and
Housing Management.
In November 2007, Shenzhen Municipal Bureau of Land Resources and Housing Management rejected the application of Meisi
Company for revoking Property Ownership Certificates SFDZ No. 0103142 and No. 0103139. Meisi Company prosecuted an
administrative litigation to Shenzhen Futian People’s Court (hereinafter referred as to “Futian Court”) to ask for revoking the
administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing Management. The Company was involved as
third party. Court session started on January 8, 2008 with litigation number of (2008) SFFXCZ No. 10 (hereinafter referred as to
“No.10 Case”). On January 2008, Meisi Company prosecuted an administrative litigation to Futian Court for revoking the above
administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing Management, revoking Property Ownership
Certificates SFDZ No. 0103142 and No. 0103139, and restoring the land use right to Meisi Company with the litigation number of
SFFX (2008) No. 70 (hereinafter referred as to “No.70 Case”). On May 2008, the Futian Court made adjudication to No. 70 Case in
which the property ownership certificates SFDZ No. 0103142 and No. 0103139 owned by the Company were revoked and Shenzhen
Municipal Bureau of Land Resources and Housing Management were required to re-investigate the application of Meisi Company.
The company, the Shenzhen Municipal Bureau of Land Resources and Housing Management as well as Meisi Company refused to
accept the verdict and made an appeal. On July 2008, the Company has received the Administrative Ruling Paper from Futian Court
in which the trial of No. 10 Case was terminated.
On December 2008, Shenzhen Intermediate Court issued the Administrative Ruling Paper SZFXZZ (2008) No. 223, in which the
final adjudication of appeal No. 70 Case was made and the original verdict was sustained. Moreover, the final adjudication stated that
the controversy over the land use right in this case between Meisi Company and the Company should be settled through civil
procedures; the Bureau of Land Resources and Housing Management of Shenzhen Municipality should not proceed the registration
procedure until the controversy is final settled.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
On Feb. 11, 2009, the Company received the Civil Complaint from Futian Court; Meisi Company has made a civil prosecution
against the Company and Shenzhen Luohu Commercial Development Co., Ltd. for the confirmation of Meisi Company’s land use
right and the buildings in original Property Ownership Certificates SFDZ No., 0103142 and No., 0103139. Furthermore, Meisi
Company requests that return of related land use right and a compensation of RMB7.5 Million. The Company has submitted an
objection to jurisdiction. On March 4, 2009, Futian Court sent the Notice to the Company to inform that this case has been
transferred to Shenzhen Intermediate Court for adjudication.
On 22 December 2009, the Company received court ruling delivered by the Guangdong Higher Court. After investigated by
Guangdong Higher Court, it is considered that the retrial application to Shenzhen Intermediate Court Judgment SZFZ (2008) No. 223
by the company is compiled to the law, and adjudicated: ① Arraign by Guangdong Highest People's Court ② suspended the
execution of the original verdict during the retrial.
On 15 Aug. 2011, the Company received the Administrative Ruling Paper (YGFSJZ Zi (2010) No. 8) from the Guangdong Higher
Court, which maintained the Administrative Ruling Paper (SZFXZ Zi (2008) No. 223), and it believed that the dispute on the land
ownership for both parties was civil right confirmation, and both parties should find other legal way to solve.
The Company received the ruling of Shenzhen Medium People's Court in Oct. 2012, at which the court approved legally Meisi
Company’s application on canceling the lawsuit towards the Company. After receiving the above ruling, due to the Administrative
Ruling Paper SZFXZ Zi (2008) No. 223 had clearly ruled that the dispute on Meilin land between the Company and Meisi Company
should be settled through civil law procedures, therefore, the Company raised the civil lawsuit to Meisi Company and Luojingfa
Company, requiring to recognize the ownership of the above involved land for the Company, and the court has accepted the above
mentioned lawsuit. Then, Meisi Company raised the counterclaim towards the Company, requiring recognizing its ownership of the
above involved land. And the two cases were combined for public trial on 1 Mar. 2013, and now it’s waiting for ruling.
The Company believes that the land use right and ownership of above building should be legally confirmed to the Company. The
Company will secure its own legal rights through all legal means, and the above issues do not have significant impact on the
Company’s financial position.
C. Shenzhen Hetaiheng prosecuted the Company to undertake joint liability for the debts for Shenzhen International Trade
Center Industry Development Co., Ltd.
On 31 July 2015, Shenzhen Luohu District People's Court issued (2015) SLFMECZ No. 2499 paper of civil judgment. It decided the
Company and China (Shenzhen) Education Business Shares Co., Ltd. (“China Education Company”) shall undertake the joint
liability for the debts for Shenzhen International Trade Center Industry Development Co., Ltd. (“International Trade Center
Company”) declared under (2002) SLFJYCZ No. 582 paper of civil judgment.
According to (2002) SLFJYCZ No. 582 paper of civil judgment, Shenzhen Xinguang Industry Co., Ltd. (“Xinguang Company”)
shall, within ten days after the effectiveness of such paper, clean off 2.21 million of principal and interest thereon (such interest shall
be counted from 22 Dec. 2000 to the date when the debts are paid off based on related regulations by the People’s Bank of China as
agreed under Loan Contract) to Shenzhen Shendong Branch of Industrial and Commercial Bank of China (“Shendong Branch of
ICBC”); and International Trade Center Company shall undertake joint liability for cleaning off such debts.
After the effectiveness of (2002) SLFJYCZ No. 582 paper of civil judgment, Shendong Branch of ICBC has only been paid off
31,551, and then the creditor’s right has been transferred to Shenzhen Office of China Orient Asset Management Corporation, who
has applied for execution by force to the People’s Court, but received no more payment. On 22 May 2008, Shenzhen Office of China
Orient Asset Management Corporation further transferred the creditor’s right to Dongfu Asset Management Corporation. On 24 Oct.
2010, Dongfu Asset Management Corporation again transferred such right to Shenzhen Hetaiheng Investment Co., Ltd., which has
been paid 700,000 during the execution of this paper.
In 2013, International Trade Center Company was under bankruptcy liquidation. On 17 Dec. 2014, Shenzhen Intermediate People’s
Court issued (2013) SZFPZ No. 24-3 paper of civil judgment to end the bankruptcy proceeding on International Trade Center
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Company due to its liquidation failure since the Company’s address was unknown and management failed to take over the
Company’s property and financial data. On 1 Apr.2015, the management of International Trade Center Company dissolved the
company.
Under (2015) SLFMECZ No. 2499 paper of civil judgment, Shenzhen Hetaiheng Investment Co., Ltd. claimed that the Company and
China Education Company shall undertake the joint liability for paying off the debts under (2002) SLFJYCZ No. 582 paper of civil
judgment (By 31 Mar. 2015, 2,178,449.00 of principal, with the interest counted from the date as regulated by the law to the date
when the debts are paid off).
It is decided in the first-instance judgment by Shenzhen Luohu District People's Court that the two sharing companies of
International Trade Center Industry Company, namely the Company and China Education Company, as well as Shicai Company
though not involved in this case, shall undertake the joint liability for the debts of International Trade Center Company under (2002)
SLFJYCZ No. 582 paper of civil judgment since they failed to perform the liquidation liability and to provide accounting books
during bankruptcy proceedings of International Trade Center Company, which led to the failure of an overall liquidation; as for the
debt amount, this Court did not make any decision since such amount may be changed with the performance of paying off the debts
under (2002) SLFJYCZ No. 582 paper of civil judgment by parties involved.
The Company refuses to accept the above judgment and has appealed against such decision.
During this Reporting Period, the Company estimated about 834,999.50 of debts based on (2015) SLFMECZ No. 2499 paper of civil
judgment and its actual holding 38.33% of the shares of International Trade Center Company.
On 28 Nov. 2016, Shenzhen Intermediate People’s Court issued (2015) SZFSZZ No. 2837 paper of civil judgment, changing (2015)
SLFMECZ No. 2499 of civil judgment to: the Company and China Education Company shall undertake the joint compensation
liability for the debts for Shenzhen International Trade Center Industry Development Co., Ltd. declared under (2002) SLFJYCZ No.
582 paper of civil judgment (the RMB 1,314,719.00 paid off to Shenzhen Hetaiheng Investment Co., Ltd. and Shendong Branch of
Industrial and Commercial Bank of China shall be deducted).
In 2016, the Company would need to pay off an estimated amount of RMB 6,009,255.74 based on (2015) SZFSZZ No. 2837 paper of
civil judgment and the estimated debt of RMB 2,303,948.65 was confirmed based on its actual holding 38.34% of the shares of
International Trade Center Company. After the confirmed estimated debt of RMB 834,999.50 in 2015 was deducted, the added
estimated debt for this Reporting Period is RMB 1,468,949.15. Shenzhen Hetaiheng Investment has applied for execution by force to
the Court, demanding that the Company fulfil the obligations stated in (2015) SZFSZZ No. 2837 paper of civil judgment.
Currently, the Company is answering the issue of compensated amount to the execution court and communicating with relevant
parties on the execution of the paper.
D. Huizhou Dongfang Lianhe Industry Co., Ltd. prosecuted the Company to undertake joint liability for the debts for
Shenzhen International Trade Center Industry Development Co., Ltd.
In Dec. 2016, Huizhou Dongfang Lianhe Industry Co., Ltd. prosecuted the Company on account of the liability of shareholder’s
infringement of creditor’s interests, demanding that the Company undertake joint settlement liability for the debt of RMB
8,359,288.40 (as of 31 March 2015) under (2000) SFFJCZ No. 854 paper of civil judgment.
Based on (2000) SFFJCZ No. 854 paper of civil judgment: Shenzhen Shengping Industry Development Co., Ltd. (“Shengping
Company”) shall, within ten days after the effectiveness of such paper, pay 2.5 million of principal and interests thereon (including
penalty, which is RMB 310,100.00 counted until 20 Mar. 2000, and the interests thereafter shall be counted based on the loan interest
rate for the same period stipulated by the People’s Bank of China, until the date payable confirmed by the judgment). In the case of
overdue payments, debt interests shall be paid in double for the period of deferred execution. Shenzhen International Trade Center
Industry Development Co., Ltd. undertakes joint settlement liability for the debts of Shengping Company under the judgment.
Upon the effectiveness of (2000) SFFJCZ No. 854 paper of civil judgment, Shenzhen Development Bank Changcheng Building
Branch applied for execution by force, but did not receive payment. Then it transferred the creditor’s right to China Huarong Asset
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Management Co., Ltd. Shenzhen Office (“Huarong Company”). Huarong Company transferred the right to Huizhou Dongfang
Lianhe Industry Co., Ltd. In December 2016, Huizhou Dongfang Lianhe Industry Co., Ltd. prosecuted the Company.
In 2013, International Trade Center Company applied for bankruptcy liquidation. On 17 Dec. 2014, Shenzhen Intermediate People’s
Court issued (2013) SZFPZ No. 24-3 paper of civil judgment to end the bankruptcy proceeding on International Trade Center
Company due to its liquidation failure since the Company’s address was unknown and management failed to take over the
Company’s property and financial data. On 1 Apr. 2015, the management of International Trade Center Company dissolved the
company. The Company is preparing to respond to the prosecution and the first trial was heard in Luohu District People's Court on
16 Mar. 2017.
Based on (2000) SFFJCZ No. 854 Paper of Civil Judgment and (2015) SZFSZZ No. 2837 Paper of Civil Judgment, the Company
deems that there is a greater possibility for the assumption of the joint liability for the debt under (2000) SFFJCZ No. 854 Paper of
Civil Judgment, and based on the estimated compensation of RMB 7,557,033.56 and the 38.34% of the shares of International Trade
Center Company held by the Company, the withdrawal of estimated debt is RMB 2,897,366.67.
(2) Guarantee
A. The Company’s subsidiary Dongguan International Trade Center Changsheng Real Estate Development Co., Ltd. belongs to
provisional qualification real estate development enterprise, when dealing with the application of approval of the presale of houses,
the commercial housing quality guarantee after the liquidations of enterprise bankruptcy, dissolution, Dongguan International Trade
Center Changsheng Real Estate Development Co., Ltd. submitted guarantee RMB12,402,160.00 to Bank of Communications,
Duangguang, Dalang Branch, the bank issue 9 Guarantee Letter for irrevocable goods, of which one guarantee of RMB1,468,870.00,
from 30Jun. 2015 to 31 Dec. 2020, and the remained were RMB10,933,290.00 from 1 Jul. 2015 to 31 Dec. 2020.
B. Guarantee for the owners: the Company and its subsidiaries are the purchasers providing mortgage guarantee for the bank, As of
31 Dec. 2015, the unsettle guarantee amount was RMB220.91 million, the guarantee event was provided by real estate developer for
small owners’ purchases of commercial houses of the Company, which was the common phenomenon in the industry
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3. Other
Naught
XV. Events after balance sheet date
1. Significant events had not adjusted
Unit: RMB Yuan
Influence number to the
Reason of unable to estimate
Item Content financial position and operating
influence number
results
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2. Profit distribution
Unit: RMB Yuan
Planning allocation of profits or dividends 107,276,236.56
Profits or dividends approved, reviewed and issue by the 107,276,236.56
declaration
3. Sales return
Naught
4. Notes of other significant events
Assets held to cancel: on 13 Feb. 2017, based on Hainan Haikou Intermediate People’s Court (2014) HZFPZ No. 1-1 judgment:
Hainan Xinda Development Corporation (“Hainan Xinda) is declared bankrupt, and the Company shall cancel its long-term equity
investment of RMB 20,000,000.00 to Hainan Xinda after verification. Other receivables are RMB 49,437,140.28. As the withdrawal
of bad debt provision has been done for the above assets, there will be no effect on the Company’s business achievements.
XVI. Other significant events
1. The accounting errors correction in previous period
(1) Retrospective restatement
Unit: RMB Yuan
Name of the influenced report
Content Processing program Cumulative impact
items during comparison period
(2) Prospective application
Content Processing program Reason of adopting prospective application
2. Debt restructuring
Not applicable
3. Replacement of assets
(1) Non-monetary assets exchange
Not applicable
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(2) Other assets replacement
Not applicable
4. Pension plan
Not applicable
5. Discontinuing operation
Unit: RMB Yuan
Termination of
the business
Income tax profits
Item Revenue Expense Total profits Net profit
expense attributable to the
parent company
owner
Other notes:
Not applicable
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
The Group's business includes real estate business, housing lease management, transportation, catering services, and other business
(including: mechanical and electrical professional maintenance business, mechanics, engineering supervision, parking lot, because of
the above businesses income are small, approve them being merged), etc. The Group separately organized and managed according to
the business and the properties of products and services provided. Each business division of the Group was a business group,
provided the facing risk and obtained rewards and products different from other division.
A. Real estate business divisions: real estate development, sales and rental
B. The property management business divisions: building management
C. Transportation business division: operating passenger car
D. Diet services: catering service
E. Other business: operating mechanical and electrical professional maintenance business, mechanics, engineering supervision
business, and parking lot
The management considering the decision of resources and evaluation of performance separately
manage the operating results of each unit of business.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(2) The financial information of reportable segment
Unit: RMB Yuan
Property Transportatio Catering Offset in
Item Real estate Others Undistributed Total
management n service segment
Operation 1,587,991,74 370,834,093. 57,409,314.2 31,177,527.6 11,791,397.8 2,059,204,07
revenue 3.51 86 7 7 7 7.18
Trading
revenues 13,982,049.9 -24,441,372.1
3,455,723.25 205,500.01 1,162,441.49 5,635,657.43
between 8 6
divisions
Sales 47,971,052.1 47,306,701.7
-664,350.37
expenses 3 6
Investments
in associated
companies 2,225,713.71 2,225,713.71
and joint
ventures
Asset
101,295,883. 98,635,337.2
impairment 266,407.88 5,192.45 -1,701.64 18,882.87 -2,949,327.49
21 8
loss
Depreciation
and 20,198,662.6 20,460,993.3 41,916,711.8
1,289,163.82 336,256.83 41,715.54 -410,080.35
amortization 7 5 6
charges
Total profits 991,186,805. 31,621,883.7 41,022,596.5 -581,470,023. 491,207,657.
7,334,540.31 1,548,223.36 -36,368.78
(losses) 39 8 9 32 33
8,907,263,02 497,572,593. 219,302,530. 2,216,416,44 -5,200,674,46 6,654,356,14
Total assets 6,558,093.16 7,917,928.25
0.79 99 56 0.82 3.47 4.10
Total 6,958,757,29 348,642,615. 126,524,335. 1,635,901,49 -4,838,404,49 4,243,059,32
4,951,451.79 6,686,626.22
liabilities 4.72 17 46 0.13 2.19 1.29
Leong term
equity
investments
36,751,891.1 36,751,891.1
in associated
2 2
companies
and joint
ventures
Increase
208,192,275. 212,863,749.
amount of 1,481,863.83 3,146,845.40 42,764.91
79 93
non-current
206
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
assets except
long term
equity
investment
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable segment, shall
disclose the reason.
Not applicable
(4) Other notes
A. Income of foreign trade of production and labor serve
Item Reporting period Last period
Real estate 1,587,991,743.51 595,657,932.90
Property management 370,834,093.86 383,726,480.02
Transportation 57,409,314.27 60,914,047.94
Catering service 31,177,527.67 31,014,702.89
Other 11,791,397.87 6,105,337.18
Total 2,059,204,077.18 1,077,418,500.93
B. Geography information
Distribution of foreign trade income:
Item Reporting period Last period
Mainland of China 2,058,999,124.73 1,076,951,837.08
Countries and regions outside the Chinese mainland 204,952.45 466,663.85
Total 2,059,204,077.18 1,077,418,500.93
Distribution of total non-current assets liabilities:
Item Closing balance Opening balance
Mainland of China 630,919,971.30 457,200,691.14
Countries and regions outside the Chinese mainland 1,905,293.14 2,455,666.52
Total 632,825,264.44 459,656,357.66
C. Customers information
the customers of the Group were rather dispersed; there was no individual transaction over 10%.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
7. Other important transactions and events have an impact on investors decision-making
Not applicable
8. Other
Not applicable
XVII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with insignificant
single amount for 96,647,8 96,647,8 96,647, 96,647,88
98.81% 100.00% 98.08% 100.00%
which bad debt 89.05 89.05 889.05 9.05
provision separately
accrued
Accounts receivable
withdrawal of bad
1,111,427 556,593. 554,834.2 1,828,8 849,254.7
debt provision of by 1.14% 50.08% 1.86% 46.44% 979,569.49
.71 42 9 24.21 2
credit risks
characteristics:
Accounts receivable
with insignificant
single amount for 54,380.3 54,380.3 54,380.
0.05% 100.00% 0.06% 54,380.35 100.00%
which bad debt 5 5 35
provision separately
accrued
97,813,6 97,258,8 554,834.2 98,531, 97,551,52
Total 100.00% 99.43% 100.00% 99.01% 979,569.49
97.11 62.82 9 093.61 4.12
208
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB Yuan
Accounts receivable Closing balance
(entity) Account receivable Bad debt provision Withdrawal proportion Withdrawal reason
Involved in lawsuit and
Shenzhen Jiyong no executable property,
Properties & Resources 93,811,328.05 93,811,328.05 100.00% please refer to Section X.
Development Company Financial Report XIV. 2,
(1)
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
Total 96,647,889.05 96,647,889.05 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB Yuan
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 157,657.00 4,729.71 3.00%
Subtotal of within 1 year 157,657.00 4,729.71 3.00%
2 to 3 years 803,814.00 401,907.00 50.00%
Over 5 years 149,956.71 149,956.71 100.00%
Total 1,111,427.71 556,593.42 50.08%
Notes:
For details, please refer to Section X. Financial Report V. 11
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during this Reporting Period was of RMB-292,661.30; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB Yuan
Name of the entity Amount Method
209
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Total 0.00 --
(3) Particulars of the actual verification of accounts receivable during this Reporting Period
Unit: RMB Yuan
Item Amount
Of which: significant actual verification of accounts receivable
Unit: RMB Yuan
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related
party transactions
Total -- 0.00 -- -- --
Notes:
No such case in reporting period.
(4) Top five of account receivable of closing balance collected by arrears party
Name of the entity Closing balance Proportion (%) Closing balance of bad debt
provision
Shenzhen Jiyong Properties & 93,811,328.05 95.91 93,811,328.05
Resources Development Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.90 2,836,561.00
Rainbow Department Store Co., Ltd 953,770.71 0.97 551,863.71
Shenzhen Zhongmei QJH-S 157,611.00 0.16 4,728.33
International Art Exhibition Service
Co., Ltd
Luohu District Economic Development 54,380.35 0.06 54,380.35
Co., Ltd.
Total 97,813,651.11 100.00 97,258,861.44
(5) Derecogniziton of account receivable due to the transfer of financial assets
Naught
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Naught
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Notes:
Naught
2. Other accounts receivable
(1) Other account receivable classified by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Other accounts
receivable with
insignificant single 139,256, 37,124,3 102,131,7 188,204 89,137,84 99,066,314.
9.70% 26.66% 10.08% 47.36%
amount for which 094.17 39.53 54.64 ,157.06 2.62 44
bad debt provision
separately accrued
Other accounts
receivable withdrawn 1,676,9
1,294,37 8,866,59 1,285,509 9,623,906 1,667,326,0
bad debt provision 90.14% 0.69% 49,946. 89.79% 0.57%
5,620.67 3.99 ,026.68 .48 39.77
according to credit 25
risks characteristics
Other accounts
receivable with
insignificant single 2,415,32 2,415,32 2,415,3 2,415,326
0.16% 100.00% 0.13% 100.00%
amount for which 6.23 6.23 26.23 .23
bad debt provision
separately accrued
1,867,5
1,436,04 48,406,2 1,387,640 101,177,0 1,766,392,3
Total 100.00% 3.37% 69,429. 100.00% 5.42%
7,041.07 59.75 ,781.32 75.33 54.21
54
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB Yuan
Closing balance
Other accounts receivable
Other accounts
(unit） Bad debt provision Withdrawal proportion Withdrawal reason
receivable
211
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Shum Yip Properties Uncollectible for a long
109,809,084.67 7,677,330.03 6.99%
Development Co., Ltd. period
Anhui Nanpeng Irrecoverable for long
8,899,040.00 8,899,040.00 100.00%
Papermaking Co., Ltd. time
The Company was
Advances the shopping
6,481,353.60 6,481,353.60 100.00% enforced to conduct,
mall gold business utilities
irrecoverable
Shanghai Yutong Real
estate development Co., 5,676,000.00 5,676,000.00 100.00% Judgments, irrecoverable
Ltd.
Irrecoverable for long
Wuyao Company 3,271,837.78 3,271,837.78 100.00%
time
Dameisha Tourism Center 2,576,445.69 2,576,445.69 100.00% Suspend of projects
Project son hold
Elevated Train Project 2,542,332.43 2,542,332.43 100.00%
irrecoverable
Total 139,256,094.17 37,124,339.53 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB Yuan
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 58,637.08 1,759.11 3.00%
Subtotal of within 1 year 58,637.08 1,759.11 3.00%
1 to 2 years 9,600.00 960.00 10.00%
2 to 3 years 340,200.00 102,060.00 30.00%
Over 5 years 8,761,814.88 8,761,814.88 100.00%
Total 9,170,251.96 8,866,593.99 96.69%
Notes:
For details, please refer to Section X. Financial Report V. 11.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during this Reporting Period was of RMB -460,365.11; the amount of the reversed
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
or collected part during this Reporting Period was of RMB 0.00.
Significant amount of reversed or recovered bad debt provision
Unit: RMB Yuan
Name of the entity Reversed or collected amount Method
Total 0.00 --
The amount of bad debt provision was RMB-460,365.11; the increase of amount of bad debt provision of foreign currency of
creditor's rights receivable after exchange was RMB 1,348,128.25. In Feb. 2016, due to Gintian Industrial (Group) Co., Ltd.’s
original transfer of bad debt provision of RMB 53,658,578.72 to other current assets were canceled.
(3) Particulars of the actual verification of other accounts receivable during this Reporting Period
Unit: RMB Yuan
Item Amount
Of which: significant actual verification of other accounts receivable
Unit: RMB Yuan
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related
party transactions
Total -- 0.00 -- -- --
Notes of write-off other accounts receivable:
(4) Other account receivable classified by account nature
Unit: RMB Yuan
Nature Closing book balance Opening book balance
Margin 2,404,664.08 3,204,898.13
Pretty cash advance 85,500.00 47,200.00
Account receivable to subsidiary 1,394,246,757.56 1,769,778,048.64
Account receivable to affiliated company 10,646,304.25 9,794,976.25
Account receivable non-affiliated company 28,663,815.18 84,744,306.52
Total 1,436,047,041.07 1,867,569,429.54
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB Yuan
Closing balance of
Name of the entity Nature Closing balance Aging Proportion%
bad debt provision
PRD Yangzhou Real Account receivable
605,048,221.77 Within 4 years 42.13%
Estate Development to subsidiary
213
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Co., Ltd.
PRD Group Xuzhou
Dapeng Real Estate Account receivable
537,369,836.60 Within 4 years 37.42%
Development Co., to subsidiary
Ltd.
Shum Yip Properties
Account receivable
Development Co., 109,809,084.67 Over 5 years 7.65% 7,677,330.03
to subsidiary
Ltd.
Shenzhen
Huangcheng Real Account receivable
81,410,000.00 Within 3 years 5.67%
Estate Management to subsidiary
Co., Ltd.
Dongguan
International Trade
Center Changsheng Account receivable
56,541,793.00 Within 1 year 3.94%
Real Estate to subsidiary
Development Co.,
Ltd.
Total -- 1,390,178,936.04 -- 96.81% 7,677,330.03
(6) Account receivable involving government subsidies
Unit: RMB Yuan
Project of government Estimated recovering
Name of the entity Closing balance Closing aging
subsidies time, amount and basis
Total -- 0.00 -- --
Naught
(7) Other account receivable derecognized due to the transfer of financial assets
Naught
(8) Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement
Naught
Notes:
Naught
214
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
3. Long-term equity investment
Unit: RMB Yuan
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment to the
278,521,261.98 31,964,000.00 246,557,261.98 278,521,260.98 31,964,000.00 246,557,260.98
subsidiary
Investment to
joint ventures and
69,559,505.26 32,807,614.14 36,751,891.12 67,333,791.55 32,807,614.14 34,526,177.41
associated
enterprises
Total 348,080,767.24 64,771,614.14 283,309,153.10 345,855,052.53 64,771,614.14 281,083,438.39
(1) Investment to the subsidiary
Unit: RMB Yuan
Withdrawn
Closing balance
impairment
Investee Opening balance Increase Decrease Closing balance of impairment
provision in this
provision
Reporting Period
Shenzhen
Huangcheng Real 28,500,000.00 28,500,000.00
Estate Co., Ltd.
SZPRD Real
Estate
30,950,000.00 30,950,000.00
Development Co.,
Ltd.
PRD Yangzhou
Real Estate
50,000,000.00 50,000,000.00
Development Co.,
Ltd.
Dongguan
International Trade
Center
Changsheng Real 20,000,000.00 20,000,000.00
Estate
Development Co.,
Ltd.
Shenzhen
29,850,000.00 29,850,000.00
International Trade
215
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Center Vehicles
Industry Co., Ltd.
Shenzhen
International Trade
Center Property 20,000,000.00 20,000,000.00
Management Co.,
Ltd.
Shenzhen Shenxin
Motor Rent Co., 12,877,260.98 12,877,260.98
Ltd.
Shenzhen
International Trade
1,600,000.00 1.00 1,600,001.00 1,600,000.00
Center Food Co.,
Ltd.
Shenzhen Property
Construction
3,000,000.00 3,000,000.00
Supervision Co.,
Ltd.
Shenzhen
International Trade 12,000,000.00 12,000,000.00 12,000,000.00
Plaza
Shenzhen Real
1,380,000.00 1,380,000.00
Estate Exchange
Zhanjiang
Shenzhen Real
Estate 2,530,000.00 2,530,000.00 2,530,000.00
Development Co.,
Ltd.
Shum Yip
Properties
15,834,000.00 15,834,000.00 15,834,000.00
Development Co.,
Ltd.
PRD Group
Xuzhou Dapeng
Real Estate 50,000,000.00 50,000,000.00
Development Co.,
Ltd.
Total 278,521,260.98 1.00 278,521,261.98 31,964,000.00
216
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
(2) Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Increase/decrease in reporting period
Investme Closing
Adjustme
nt profit Withdraw balance
Additiona nt of Declarati
Opening Negative and loss Other n Closing of
Investee l other on of cash
balance investmen recognize equity impairme Other balance impairme
investmen comprehe dividends
t d under changes nt nt
t nsive or profits
the equity provision provision
income
method
I. Joint ventures
Shenzhen
Jifa
30,789,34 1,473,898 32,263,24
Warehous
1.98 .63 0.61
e Co.,
Ltd.
Tianan
Internatio
nal
Building
Property 3,736,835 751,815.0 4,488,650
Managem .43 8 .51
ent
Company
of
Shenzhen
34,526,17 2,225,713 36,751,89
Subtotal
7.41 .71 1.12
II. Associated enterprises
Shenzhen
Wufang
Pottery & 18,983,61 18,983,61 18,983,61
Porcelain 4.14 4.14 4.14
Industrial
Co., Ltd.
Anhui
Nanpeng
13,824,00 13,824,00 13,824,00
Papermak
0.00 0.00 0.00
ing Co.,
Ltd.
217
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
32,807,61 32,807,61 32,807,61
Subtotal
4.14 4.14 4.14
67,333,79 2,225,713 69,559,50 32,807,61
Total
1.55 .71 5.26 4.14
(3) Other notes
4. Revenues and operating costs
Unit: RMB Yuan
Reporting period Same period of last year
Item
Revenue Operating costs Revenue Operating costs
Main operations 1,409,651,839.78 331,649,548.84 61,440,361.37 14,568,381.71
Total 1,409,651,839.78 331,649,548.84 61,440,361.37 14,568,381.71
Notes:
5. Investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income
529,600,000.00
accounted by equity method
Investment income arising from disposal of
2,225,713.71 1,637,238.00
long-term equity investments
Investment income received from disposal of
5,709,098.20
available-for-sale financial assets
Others 225,340.35
Total 531,825,713.71 7,571,676.55
6. Other
Not applicable
XVIII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable □ Not applicable
Unit: RMB Yuan
218
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Item Amount Explanation
Gains/losses on the disposal of non-current
-182,886.11
assets
The non-operating revenue was increased
of 3363.25% over the last period was
mainly due to the recognition of assets of
Profits or losses incurred from contingency
-4,366,315.82 Dragon Garden Development Building
of non-operating business.
F14, F15, RMB174,382,120.00, For
details, please refer to Section X Financial
Report (XIV) 2, (2).
Other non-operating income and expenses
1,010,733.64
other than the above
Less: Income tax effects -876,365.89
Total -2,662,102.40 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
15.79% 0.5954 0.5954
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
15.91% 0.5999 0.5999
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting
standards
√ Applicable □ Not applicable
Unit: RMB Yuan
Net profit Net asset
Reporting period Same period of last year Closing balance Opening balance
According to Chinese 354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
219
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
accounting standards
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting
standards
√ Applicable □ Not applicable
Name of foreign accounting standard
Unit: RMB Yuan
Net profit Net asset
Reporting period Same period of last year Closing balance Opening balance
According to Chinese
354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
354,857,241.74 156,819,966.71 2,410,434,735.75 2,099,906,766.61
accounting standards
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting standards, for audit
data adjusting differences had been foreign audited, should indicate the name of the foreign institutions
No difference
4. Other
Naught
220
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2016
Section XII Documents Available for Reference
I. Accounting statements with the signatures and seals of the Legal Representative and the
Chief Financial Officer;
II. Original of the Auditor’s Report with the seal of the CPAs firm as well as the signatures
and seals of the certified public accountants; and
III. Originals of all the Company’s announcements and documents disclosed on the
designated media during this Reporting Period.
221
