Financial Report
I. Auditor’s Report
Whether the semi-annual report has been audited?
□Yes √ No
The semi-annual report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
June 30, 2017
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 2,259,441,557.08 2,869,755,216.85
Settlement reserve
Interbank lendings
Financial assets at fair value through
profit/loss
Derivative financial assets
Notes receivable
Accounts receivable 40,558,549.40 31,564,219.86
Accounts paid in advance 104,188,676.90 120,532,275.38
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserve
Interest receivable
Dividends receivable
Other accounts receivable 12,144,073.81 9,542,311.30
Financial assets purchased under
agreements to resell
1
Inventories 2,466,473,592.96 2,585,658,521.65
Assets held for sale
Non-current assets due within one
year
Other current assets 26,450,414.00 10,977,557.15
Total current assets 4,909,256,864.15 5,628,030,102.19
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 18,113,241.23 17,503,714.14
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 38,164,704.03 36,751,891.12
Investment property 418,528,217.82 427,800,613.03
Fixed assets 74,177,948.81 73,932,007.89
Construction in progress
Engineering materials
Disposal of fixed assets 85,726.84 85,556.34
Productive living assets
Oil-gas assets
Intangible assets 81,911,329.43 85,487,580.95
R&D expenses
Goodwill
Long-term deferred expense 1,232,225.63 1,496,391.11
Deferred income tax assets 395,789,839.43 375,997,063.33
Other non-current assets 7,271,224.00
Total non-current assets 1,028,003,233.22 1,026,326,041.91
Total assets 5,937,260,097.37 6,654,356,144.10
Current liabilities:
Short-term borrowings
Borrowings from the Central Bank
Money deposits accepted and
inter-bank deposits
Interbank borrowings
Financial liabilities at fair value
through profit/loss
2
Derivative financial liabilities
Notes payable
Accounts payable 353,291,549.78 419,926,139.39
Accounts received in advance 1,517,598,186.69 2,231,321,227.65
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 49,356,426.53 67,340,897.51
Taxes payable 1,073,157,332.64 1,254,999,384.73
Interest payable
Dividends payable 29,642.40
Other accounts payable 146,694,948.33 132,082,174.54
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
year
Other current liabilities
Total current liabilities 3,140,128,086.37 4,105,669,823.82
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Special payables
Provisions 5,201,315.32
Deferred income 15,032,796.59 16,379,403.41
Deferred income tax liabilities 11,109.20 14,487.51
Other non-current liabilities 115,269,607.09 115,794,291.23
Total non-current liabilities 130,313,512.88 137,389,497.47
3
Total liabilities 3,270,441,599.25 4,243,059,321.29
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 -2,255,407.26 -697,548.70
Special reserve
Surplus reserve 253,569,569.96 253,569,569.96
Provisions for general risks
Retained earnings 1,698,711,622.43 1,441,632,088.56
Equity attributable to owners of the
2,665,956,411.06 2,410,434,735.75
Company
Minority interests 862,087.06 862,087.06
Total owners’ equity 2,666,818,498.12 2,411,296,822.81
Total liabilities and owners’ equity 5,937,260,097.37 6,654,356,144.10
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
2. Balance Sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,567,677,561.92 1,566,655,340.88
Financial assets at fair value through
profit/loss
Derivative financial assets
Notes receivable
Accounts receivable 1,467,089.48 554,834.29
Accounts paid in advance 496,729.09 34,080,739.67
Interest receivable
Dividends receivable 350,000,000.00
4
Other accounts receivable 1,110,718,544.09 1,387,640,781.32
Inventories 303,713,408.60 473,719,042.17
Assets held for sale
Non-current assets due within one
year
Other current assets 85,558.19 1,241,108.66
Total current assets 2,984,158,891.37 3,813,891,846.99
Non-current assets:
Available-for-sale financial assets 3,843,741.23 3,234,214.14
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 284,721,966.01 283,309,153.10
Investment property 346,164,934.07 352,884,137.98
Fixed assets 8,215,844.12 8,696,554.63
Construction in progress
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets
R&D expenses
Goodwill
Long-term deferred expense 1,037,856.99 1,124,345.13
Deferred income tax assets 191,087,501.74 163,663,557.65
Other non-current assets
Total non-current assets 835,071,844.16 812,911,962.63
Total assets 3,819,230,735.53 4,626,803,809.62
Current liabilities:
Short-term borrowings
Financial liabilities at fair value
through profit/loss
Derivative financial liabilities
Notes payable
Accounts payable 121,769,059.23 162,541,223.07
Accounts received in advance 5,246,313.11 931,886,153.43
5
Payroll payable 8,713,843.39 9,532,230.14
Taxes payable 683,161,515.00 551,593,062.41
Interest payable
Dividends payable 29,642.40
Other accounts payable 155,052,046.58 758,082,233.48
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 973,972,419.71 2,413,634,902.53
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions 5,201,315.32
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 5,201,315.32
Total liabilities 973,972,419.71 2,418,836,217.85
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 252,912,759.52 252,912,759.52
Retained earnings 1,902,308,604.62 1,265,017,880.57
6
Total owners’ equity 2,845,258,315.82 2,207,967,591.77
Total liabilities and owners’ equity 3,819,230,735.53 4,626,803,809.62
3. Consolidated Income Statement
Unit: RMB
Item January-June 2017 January-June 2016
1. Operating revenues 1,317,146,732.43 372,057,479.96
Including: Sales income 1,317,146,732.43 372,057,479.96
Interest income
Premium income
Fee and commission income
2. Operating costs 845,284,867.98 376,637,158.32
Including: Cost of sales 498,581,168.93 295,007,821.86
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 357,170,022.95 23,744,962.40
Selling expenses 10,856,348.95 16,539,759.59
Administrative expenses 52,072,280.85 44,572,155.45
Finance costs -17,763,773.52 -7,038,438.94
Asset impairment loss -55,631,180.18 3,810,897.96
Add: Profit on fair value changes (“-”
means loss)
Investment income (“-” means loss) 1,412,812.91 1,158,576.32
Including: Share of profit/loss of
1,412,812.91 1,158,576.32
associates and joint ventures
Exchange gains (“-” means loss)
Other gains
3. Operating profit (“-” means loss) 473,274,677.36 -3,421,102.04
Add: Non-operating income 608,155.97 1,083,100.40
7
Including: Profit on disposal of
23,539.00
non-current assets
Less: Non-operating expense 5,903,749.22 298,722.50
Including: Loss on disposal of
13,282.17 6,300.00
non-current assets
4. Total profit (“-” means loss) 467,979,084.11 -2,636,724.14
Less: Corporate income tax 103,623,313.68 2,611,980.49
5. Net profit (“-” means loss) 364,355,770.43 -5,248,704.63
Net profit attributable to owners of
364,355,770.43 -5,248,704.63
the Company
Minority interests’ income
6. Other comprehensive income net of tax -1,557,858.56 1,000,816.76
Other comprehensive income net of
tax attributable to owners of the -1,557,858.56 1,000,816.76
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 -1,557,858.56 1,000,816.76
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
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 -1,557,858.56 1,000,816.76
8
differences
6.2.6 Other
Other comprehensive income net of
tax attributable to minority interests
7. Total comprehensive income 362,797,911.87 -4,247,887.87
Attributable to owners of the
362,797,911.87 -4,247,887.87
Company
Attributable to minority interests
8. Earnings per share
8.1 Basic earnings per share 0.6114 -0.0088
8.2 Diluted earnings per share 0.6114 -0.0088
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 Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
4. Income Statement of the Company
Unit: RMB
Item January-June 2017 January-June 2016
1. Operating revenues 940,995,898.09 32,157,014.88
Less: Operating costs 178,852,582.93 7,594,195.01
Taxes and surtaxes 353,391,182.19 2,899,233.08
Selling expenses 2,010,949.91 6,136,543.02
Administrative expenses 18,830,274.59 14,880,235.70
Finance costs -9,769,289.38 -4,131,129.54
Asset impairment loss -654,008.70 -1,191,328.44
Add: profit on fair value changes (“-”
means loss)
Investment income (“-” means
449,788,115.18 1,158,576.32
loss)
Including: Share of profit/loss of
1,412,812.91 1,158,576.32
associates and joint ventures
Other gains
2. Operating profit (“-” means loss) 848,122,321.73 7,127,842.37
Add: Non-operating income 137,354.81 437,769.89
Including: Profit on disposal of
9
non-current assets
Less: Non-operating expense 5,530,004.77 19,444.98
Including: Loss on disposal of
776.25
non-current assets
3. Total profit (“-” means loss) 842,729,671.77 7,546,167.28
Less: Corporate income tax 98,162,711.16 2,233,667.81
4. Net profit (“-” means loss) 744,566,960.61 5,312,499.47
5. Other comprehensive income net of
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
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
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 744,566,960.61 5,312,499.47
7. Earnings per share
7.1 Basic earnings per share 1.2493 0.0089
7.2 Diluted earnings per share 1.2493 0.0089
10
5. Consolidated Cash Flow Statement
Unit: RMB
Item January-June 2017 January-June 2016
1. Cash flows associated with operating
activities:
Cash received from sale of
654,313,106.92 2,343,478,998.38
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 generated by other operating
22,545,465.74 21,560,365.45
activities
Subtotal of cash generated by operating
676,858,572.66 2,365,039,363.83
activities
Cash paid for goods and services 266,068,343.54 310,221,091.98
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 172,144,904.82 171,546,331.67
11
Taxes paid 694,201,173.52 336,887,702.10
Cash used in other operating
44,981,839.31 37,127,743.29
activities
Subtotal of cash used in operating
1,177,396,261.19 855,782,869.04
activities
Net cash generated by operating
-500,537,688.53 1,509,256,494.79
activities
2. Cash flows associated with investing
activities:
Cash received from retraction of
investments
Cash received as investment income
Net cash received from disposal of
fixed assets, intangible assets and other 2,978.00 132,000.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
2,978.00 132,000.00
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 921,803.49 1,377,993.48
assets
Cash paid for investment
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
921,803.49 1,377,993.48
activities
Net cash generated by investing
-918,825.49 -1,245,993.48
activities
3. Cash flows associated with financing
activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings 15,441,282.23
12
Cash received from issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
15,441,282.23
activities
Repayment of borrowings 289,524,641.06
Cash paid for interest expenses and
107,246,594.16 52,096,691.04
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority interests
Cash used in other financing
96,000.00
activities
Sub-total of cash used in financing
107,246,594.16 341,717,332.10
activities
Net cash generated by financing
-107,246,594.16 -326,276,049.87
activities
4. Effect of foreign exchange rate
-1,610,551.59 983,708.47
changes on cash and cash equivalents
5. Net increase in cash and cash
-610,313,659.77 1,182,718,159.91
equivalents
Add: Opening balance of cash and
2,857,353,056.85 933,337,815.77
cash equivalents
6. Closing balance of cash and cash
2,247,039,397.08 2,116,055,975.68
equivalents
6. Cash Flow Statement of the Company
Unit: RMB
Item January-June 2017 January-June 2016
1. Cash flows associated with operating
activities:
Cash received from sale of
29,690,910.90 1,367,709,105.57
commodities and rendering of service
Tax refunds received
Cash generated by other operating
701,712,992.57 1,221,576,035.84
activities
Subtotal of cash generated by operating
731,403,903.47 2,589,285,141.41
activities
Cash paid for goods and services 40,558,204.30 76,068,523.48
Cash paid to and for employees 10,970,470.99 11,613,157.13
Taxes paid 331,025,759.51 180,302,568.05
13
Cash used in other operating
1,038,887,842.64 1,239,239,191.25
activities
Subtotal of cash used in operating
1,421,442,277.44 1,507,223,439.91
activities
Net cash generated by operating
-690,038,373.97 1,082,061,701.50
activities
2. Cash flows associated with investing
activities:
Cash received from retraction of
investments
Cash received as investment income 798,375,302.27
Net cash received from disposal of
fixed assets, intangible assets and other 1,320.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
798,376,622.27
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 65,194.99 15,072.00
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
65,194.99 15,072.00
activities
Net cash generated by investing
798,311,427.28 -15,072.00
activities
3. Cash flows associated with financing
activities:
Cash received from capital
contributions
Cash received as borrowings 15,441,282.23
Cash received from issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
15,441,282.23
activities
14
Repayment of borrowings 422,491,189.06
Cash paid for interest expenses and
107,246,594.16 54,721,045.91
distribution of dividends or profit
Cash used in other financing
activities
Sub-total of cash used in financing
107,246,594.16 477,212,234.97
activities
Net cash generated by financing
-107,246,594.16 -461,770,952.74
activities
4. Effect of foreign exchange rate
-4,238.11 -35,796.93
changes on cash and cash equivalents
5. Net increase in cash and cash
1,022,221.04 620,239,879.83
equivalents
Add: Opening balance of cash and
1,566,655,340.88 296,196,656.86
cash equivalents
6. Closing balance of cash and cash
1,567,677,561.92 916,436,536.69
equivalents
7. Consolidated Statement of Changes in Owners’ Equity
January-June 2017
Unit: RMB
January-June 2017
Equity attributable to owners of the Company
Other equity
Item Other Retaine Minorit Total
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 1,441,6 2,411,2
119,951 -697,54 253,569 862,087
end of the prior 9,092. 32,088. 96,822.
,533.93 8.70 ,569.96 .06
year 00 56 81
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Business
mergers under the
same control
Other
15
2. Balance at the 595,97 1,441,6 2,411,2
119,951 -697,54 253,569 862,087
beginning of the 9,092. 32,088. 96,822.
,533.93 8.70 ,569.96 .06
year 00 56 81
3. Increase/
decrease in the -1,557,8 257,079 255,521
period (“-” means 58.56 ,533.87 ,675.31
decrease)
3.1 Total
-1,557,8 364,355 362,797
comprehensive
58.56 ,770.43 ,911.87
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
-107,27 -107,27
3.3 Profit
6,236.5 6,236.5
distribution
6 6
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to
general risk
provisions
3.3.3
-107,27 -107,27
Appropriation to
6,236.5 6,236.5
owners (or
6 6
shareholders)
3.3.4 Other
16
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
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 1,698,7 2,666,8
119,951 -2,255,4 253,569 862,087
4. Closing balance 9,092. 11,622. 18,498.
,533.93 07.26 ,569.96 .06
00 43 12
January-June 2016
Unit: RMB
January-June 2016
Equity attributable to owners of the Company
Other equity Minorit
Other Total
Item instruments Less: General Retaine y
Share Capital compre Special Surplus owners’
Treasur risk d interest
Prefer Perpet equity
capital reserve hensive reserve reserve
y shares reserve earnings s
ence ual Other
income
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
17
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 1,000,8 -52,927, -51,926,
period (“-” means 16.76 031.99 215.23
decrease)
3.1 Total
1,000,8 -5,248,7 -4,247,8
comprehensive
16.76 04.63 87.87
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
3.3 Profit -47,678, -47,678,
distribution 327.36 327.36
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to
general risk
18
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
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 1,180,4 2,048,8
119,951 -3,045,7 154,664 862,087
4. Closing balance 9,092. 31,080. 42,638.
,533.93 86.70 ,631.59 .06
00 56 44
8. Statement of Changes in Owners’ Equity of the Company
January-June 2017
Unit: RMB
January-June 2017
Other equity instruments Less: Other Retaine Total
Item Share Capital Special Surplus
Prefere Perpetu Treasury comprehe d owners’
capital Other reserve reserve reserve
nce al bonds shares nsive earnings equity
19
shares income
1. Balance at the 1,265,0
595,979, 94,057,85 252,912,7 2,207,967
end of the prior 17,880.
092.00 9.68 59.52 ,591.77
year 57
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Other
2. Balance at the 1,265,0
595,979, 94,057,85 252,912,7 2,207,967
beginning of the 17,880.
092.00 9.68 59.52 ,591.77
year 57
3. Increase/
decrease in the 637,290 637,290,7
period (“-” means ,724.05 24.05
decrease)
3.1 Total
744,566 744,566,9
comprehensive
,960.61 60.61
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
-107,27
3.3 Profit -107,276,
6,236.5
distribution 236.56
6
3.3.1
20
Appropriation to
surplus reserve
3.3.2
-107,27
Appropriation to -107,276,
6,236.5
owners (or 236.56
6
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
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
1,902,3
595,979, 94,057,85 252,912,7 2,845,258
4. Closing balance 08,604.
092.00 9.68 59.52 ,315.82
62
January-June 2016
Unit: RMB
January-June 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
21
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/
decrease in the -42,365, -42,365,8
period (“-” means 827.89 27.89
decrease)
3.1 Total
5,312,4 5,312,499
comprehensive
99.47 .47
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
3.3 Profit -47,678, -47,678,3
distribution 327.36 27.36
3.3.1
Appropriation to
surplus reserve
3.3.2 -47,678, -47,678,3
22
Appropriation to 327.36 27.36
owners (or
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
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, 94,057,85 154,007,8 380,185 1,224,230
4. Closing balance
092.00 9.68 21.15 ,934.69 ,707.52
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.
23
Up to June 30, 2017, 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 maintenance, garden afforest and cleaning
service; houses and building leasing; passenger traffics 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
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 18th Session of the 8th Board of the
Directors on August 30, 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
Indication of specific accounting policies and estimations:
24
The company and subsidiary are mainly engaged in the real estate development and sales. They have formulated
several specific accounting policies and accounting estimation on the revenue confirmation and other transactions
and events according to the actual production and operation feature and related enterprise accounting principle
provisions, and it can be seen in the description in Note V. 28 “Revenue”
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.
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 earnings 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
25
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.
(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
26
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
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
policies.
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
27
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
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 earnings 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
28
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 joint arrangements
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 according to the portion; recognizes the jointly-held assets and jointly-borne liabilities
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 according 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 constituting business) to the
joint operation, before the assets are sold to a third party, the Group only recognizes the share of the other joint
29
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 constituting 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.
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 (usually 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
30
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
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
31
Available-for-sale financial assets refer to the non-derivative financial assets 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.
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
32
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;
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
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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
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.
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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
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 planned 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.
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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
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:
36
√ Applicable □ Not applicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Name of portfolios
receivable receivable
Portfolios 1 0.00% 0.00%
(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
Real estate industry
(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 wrap page: the low-value consumption goods and
wrap page 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.
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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
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 according 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 classified 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 standardized by No. 22 of
38
ASBE-Recognition and Measurement of Financial Instruments, investment property and biological assets
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
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 investment includes the equity investment on the subsidiaries, joint ventures and associated
enterprises.
(1) Initial measurement
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 earnings 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 earnings 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 earnings 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;
39
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
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 investment 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
40
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
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
policies 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 measured according to the enjoyed proportion from the unrealized internal
transactions 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 equity 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 corresponding
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
41
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
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 policies 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
42
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
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.
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17. Construction in progress
(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 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
44
capitalized; the exchange balance on foreign currency general borrowings shall be recorded into current profits
and losses.
19. Biological assets
Not applicable
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.
(1) 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.
(2) 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 policies of internal R & D expenses
Not applicable
22. Impairment of long-term assets
Following indications indicate that there occurs the impairment:
45
(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.
(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 recovery 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 asset 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.
46
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
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 benefit for the employees, and for those met with the defined
contribution plans, should be disposed according to the above accounting policies of the defined contribution plans;
the for the others except for the former, should be recognized according to above accounting policies of the defined
benefit plans and measure the net liabilities or net assets of other long-term employee benefits.
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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;
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 single 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
Real estate industry
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
48
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
occur 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
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
mortgage 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 related 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
49
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;
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 related 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
50
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.
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.
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(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;
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 cannot 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.
52
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.
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 active market of the same assets or liabilities that had not be adjusted; the second
input value is the input value could be directly or indirectly 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 transfers 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 transfers.
(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
53
the realty management area.
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%
54
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 Structer Adjustment (Y2011), the western industry met with 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
Item Closing balance Opening balance
Cash on hand 204,530.91 190,709.43
Bank deposits 2,246,678,453.69 2,856,051,614.77
Other monetary funds 12,558,572.48 13,512,892.65
Total 2,259,441,557.08 2,869,755,216.85
Of which: the total amount deposited
52,303,870.99 53,978,178.36
overseas
Other notes
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 June 30, 2015 to December 31, 2020 and the guarantee period of the remained RMB 10,933,290.00 was
55
from July 1, 2015 to December 31, 2020.
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Unit: RMB
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
Item Closing balance Opening balance
(2) Notes receivable pledged by the Company at the period-end
Unit: RMB
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
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
Amount of the notes transferred to accounts receivable at the
Item
period-end
Other notes:
56
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
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
102,216, 102,216, 102,216 102,216,1
single amount with 69.39% 100.00% 0.00 74.08% 100.00% 0.00
173.89 173.89 ,173.89 73.89
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
43,196,3 2,637,79 40,558,54 33,877, 2,312,840 31,564,219.
provision according 29.33% 6.11% 24.55% 6.83%
40.30 0.90 9.40 060.01 .15 86
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 1,884,02 1,884,02 1,884,0 1,884,022
1.28% 100.00% 0.00 1.37% 100.00% 0.00
which bad debt 2.38 2.38 22.38 .38
provision separately
accrued
147,296, 106,737, 40,558,54 137,977 106,413,0 31,564,219.
Total 100.00% 72.46% 100.00% 77.12%
536.57 987.17 9.40 ,256.28 36.42 86
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end：
√Applicable □ Not applicable
Unit: RMB
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 X
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
57
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 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Within 1 year (including 1 year) 36,563,824.25 1,096,914.74 3.00%
Subtotal within 1 year 36,563,824.25 1,096,914.74 3.00%
1 to 2 years 4,742,472.78 474,247.28 10.00%
2 to 3 years 485,817.91 145,745.37 30.00%
3 to 4 years 926,455.53 463,227.77 50.00%
4 to 5 years 100,570.44 80,456.35 80.00%
Over 5 years 377,199.39 377,199.39 100.00%
Total 43,196,340.30 2,637,790.90 6.11%
Notes of the basis of recognizing the group:
The basic of recognizing the group refers to Notes V. 11 of Section X 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 324,950.75; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Of which the significant reversed or collected amount of the bad debt provision during this Reporting Period:
Unit: RMB
Name of the units Reversed or collected amount Method
Total 0.00 --
58
(3) The actual write-off accounts receivable
Unit: RMB
Item Amount
Of which the significant actual write-off accounts receivable:
Unit: RMB
Whether occurred
Name of the units Nature Amount Reason Process 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 Closing balance of
end balance of the bad debt provision
accounts receivable (%)
Shenzhen Jiyong Properties & 93,811,328.05 63.69 93,811,328.05
Resources Development Company
Huawei Technologies Co Ltd 4,031,506.53 2.74 120,945.20
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 1.93 2,836,561.00
Shenzhen Lunan Industry 2,818,284.84 1.91 2,818,284.84
Development Co., Ltd.
Zhou Tanjin 2,750,000.00 1.87 2,750,000.00
Total 106,247,680.42 72.14 102,337,119.09
Note: Receivable Zhou Tanjin of Shenzhen Shenxin Taxi Co., Ltd. belongs to Shenzhen Investment Holding Co.,
Ltd., which are 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
59
6. Prepayment
(1) List by aging analysis:
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 76,373,880.25 73.30% 93,372,946.66 77.47%
1 to 2 years 20,329,274.63 19.51% 19,637,116.05 16.29%
2 to 3 years 106,567.62 0.10% 6,602,570.30 5.48%
Over 3 years 7,378,954.40 7.08% 919,642.37 0.76%
Total 104,188,676.90 -- 120,532,275.38 --
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 86,768,667.72 83.28
Prepayment construction social security fee 13,913,379.15 13.35
Shenzhen Yuanpeng Decoration Co., Ltd 897,976.61 0.86
State Grid Chongqing Electric Power Co., Ltd 475,000.00 0.46
Shenzhen Jianqiao Design Decoration 283,414.20 0.27
Engineering Co., Ltd
Total 102,338,437.68 98.22
Other notes:
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 rate ability 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.
60
7. Interest receivable
(1) Category of interest receivable
Unit: RMB
Item Closing balance Opening balance
(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
Item (or investees) Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
Unit: RMB
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
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Withdra
Proportio Proportio Withdrawal Book value
Amount Amount wal value Amount Amount
n n proportion
proportio
61
n
Accounts receivable
with significant
34,657,8 34,657,8 34,970, 34,970,06
single amount with 50.60% 100.00% 0.00 53.19% 100.00% 0.00
75.20 75.20 067.20 7.20
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
24,125,3 11,981,3 12,144,07 21,071, 11,528,71 9,542,311.3
provision according 35.22% 49.66% 32.05% 54.71%
79.32 05.51 3.81 030.28 8.98 0
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 9,709,53 9,709,53 9,709,5 9,709,533
14.18% 100.00% 0.00 14.77% 100.00% 0.00
which bad debt 3.34 3.34 33.34 .34
provision separately
accrued
68,492,7 56,348,7 12,144,07 65,750, 56,208,31 9,542,311.3
Total 100.00% 82.27% 100.00% 85.49%
87.86 14.05 3.81 630.82 9.52 0
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB
Other accounts Closing balance
receivable (classified by Other accounts
Bad debt provision Withdrawal proportion Reason
units) receivable
Anhui Nanpeng Unrecoverable for a long
8,586,848.00 8,586,848.00 100.00%
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
Elevated Train Project 2,542,332.43 2,542,332.43 100.00% Projects construction
62
ceased
Total 34,657,875.20 34,657,875.20 -- --
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Within 1 year (including 1 year) 6,430,749.56 192,922.50 3.00%
Subtotal within 1 year 6,430,749.56 192,922.50 3.00%
1 to 2 years 4,674,791.10 467,479.11 10.00%
2 to 3 years 1,289,843.00 386,952.90 30.00%
Over 3 years 1,491,662.00 745,831.00 50.00%
3 to 4 years 251,068.31 200,854.65 80.00%
4 to 5 years 9,987,265.35 9,987,265.35 100.00%
Total 24,125,379.32 11,981,305.51 49.66%
Notes of the basis of recognizing the group:
The basis recognizing the group refers to Notes V. 11 of Section X 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 452,027.49; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Of which the significant reversed or collected amount of the bad debt provision during this Reporting Period:
Unit: RMB
Name of units Reversed or collected amount Method
Total 0.00 --
The withdrawal amount of bad debt provision in current period is RMB 452,027.49; 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 311,632.96.
(3) The actual write-off other accounts receivable
Unit: RMB
63
Item Amount
Of which the significant write-off other accounts receivable:
Unit: RMB
Whether occurred
Name of units Nature Amount Reason Process from the related
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
Nature Closing book balance Opening book balance
Margin 12,830,545.46 12,050,550.05
Pretty cash borrowing 1,503,292.47 394,894.05
Accounts receivable of the related
11,244,072.65 11,556,264.65
companies
Accounts receivable of the non-related
42,914,877.28 41,748,922.07
companies
Total 68,492,787.86 65,750,630.82
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB
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 8,586,848.00 Over 5 years 12.54% 8,586,848.00
Ltd. companies
Shenzhen
Accounts receivable
Shengfenglu,
of the non-related 6,481,353.60 Over 5 years 9.46% 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 8.29% 5,676,000.00
development Co.,
companies
Ltd.
64
Accounts receivable
Shenzhen Wuliangye
of the non-related 5,523,057.70 Over 5 years 8.06% 5,523,057.70
Restaurant
companies
Hong Kong
Accounts receivable
Yueheng
of the non-related 3,271,837.78 Over 5 years 4.78% 3,271,837.78
Development Co.,
companies
Ltd.
Total -- 29,539,097.08 -- 43.13% 29,539,097.08
(6) Accounts receivable involved with government subsidies
Unit: RMB
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
Closing balance Opening balance
Category Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
65
Costs of
1,724,170,395.83 19,074,639.13 1,705,095,756.70 1,602,135,700.14 23,285,718.43 1,578,849,981.71
development
Developing
832,356,563.75 72,132,993.60 760,223,570.15 1,187,426,583.83 181,738,984.75 1,005,687,599.08
properties
Raw materials 1,278,034.51 504,283.76 773,750.75 1,230,918.63 484,743.69 746,174.94
Inventory good 55,542.67 55,542.67 64,935.50 64,935.50
Low-value
consumption 324,972.69 324,972.69 309,830.42 309,830.42
goods
Total 2,558,185,509.45 91,711,916.49 2,466,473,592.96 2,791,167,968.52 205,509,446.87 2,585,658,521.65
Classification of the “Costs of development” and the capitalization rate of the interests in the following format:
Unit: RMB
Shifted Increase Of which:
Other Accumula
Estimated Estimated developin (Costs of amount of
Date of decreased tive
Name of date of total Opening g developm Closing capitalize Capital
commenc sums for amount of
project completio investmen balance properties ent) for balance d interests resources
ement this capitalize
n t for this this for this
period d interests
period period period
Shenzhen
Properties
&
08/01/201 12/31/201 662,710,4 546,486,8 36,271,47 582,758,3
Resources Others
5 7 00.00 49.54 7.72 27.26
Hupanyu
jing
Phase II
Shenzhen
Properties
& 03/01/201 12/31/201 1,071,390 236,415,3 39,957,28 276,372,6 3,858,872
Others
Resources 4 8 ,000.00 19.90 7.05 06.95 .36
Jinling
Holiday
Shenzhen
Properties
Bank
& 01/01/201 09/30/201 851,570,0 698,021,2 45,780,23 743,801,4 30,539,39
loans;
Resources 2 7 00.00 32.73 4.37 67.10 2.65
others
Songhu
Langyuan
Hainan
12/01/202 6,648,404 6,648,404
Qiongsha Others
0 .13 .13
n Land
66
Fuchang
12/01/201 5,940,627 5,940,627
Phase II Others
9 .11 .11
Land
Shenhui
12/01/201 36,966,04 36,966,04
Garden Others
9 0.89 0.89
Land
Shenzhen
Properties
&
Resources 12/01/201 71,657,22 71,682,92
25,696.55 Others
Banshan 9 5.84 2.39
Yujing
Phase II
Land
2,585,670 1,602,135 122,034,6 1,724,170 34,398,26
Total -- -- --
,400.00 ,700.14 95.69 ,395.83 5.01
Classification of item disclosure “Developing properties” in the following format:
Unit: RMB
Date of
Name of project Opening balance Increase Decrease Closing balance
completion
International
Trade Center 12/31/1995 7,372,250.95 2,533,167.85 4,839,083.10
Plaza
Huangyuyuan A
06/30/2001 790,140.58 790,140.58
Area
Podium Building
of Fuchang 11/30//1999 645,532.65 645,532.65
Building
Shenzhen
Properties &
06/30/2010 692,134.84 692,134.84
ResourcesXihua
Town
Shenzhen
Properties &
12/31/2012 27,154,592.60 27,154,592.60
ResourcesLangq
iao International
Shenzhen
Properties &
06/30/2015 112,011,916.10 6,656,511.52 105,355,404.58
ResourcesHupa
n Yujing Phase I
67
Shenzhen
Properties &
ResourcesFront 10/31/2016 400,752,753.48 159,808,738.62 240,944,014.86
Sea Harbor
Garden
Shenzhen
Properties &
ResourcesBansh 11/30/2016 635,013,998.40 186,071,602.09 448,942,396.31
an Yujing Phase
I
Other projects 12/31/2004 2,993,264.23 2,993,264.23
Total -- 1,187,426,583.83 355,070,020.08 832,356,563.75
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
“Temporary Housing”:
Unit: RMB
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
Opening Increased amount Decreased amount Closing
Item Remarks
balance Withdrawal Others Write-off Others balance
Costs of 23,285,718
4,211,079.30 19,074,639.13
development .43
Developing 181,738,98
109,605,991.15 72,132,993.60
properties 4.75
Raw materials 484,743.69 19,540.07 504,283.76
205,509,44
Total 19,540.07 113,817,070.45 91,711,916.49 --
6.87
Classification by project:
Unit: RMB
Opening Increased amount Decreased amount Closing
Item Remarks
balance Withdrawal Others Write-off Others balance
Hainan 6,648,404.
6,648,404.13
Qiongshan Land 13
Shenzhen 179,635,70
107,502,711.45 72,132,993.60
Properties & 5.05
68
ResourcesBansh
an Yujing Phase I
Shenzhen
Properties & 2,103,279.
2,103,279.70 0.00
ResourcesHupan 70
Yujing Phase I
Shenzhen
Properties &
16,637,314
ResourcesBansh 4,211,079.30 12,426,235.00
.30
an Yujing Phase
II
205,024,70
Total 113,817,070.45 91,207,632.73 --
3.18
(3) Rate of borrowing capitalization in closing balance of the inventory
The total amount of closing balance of inventories including borrowing costs capitalization was
RMB66,170,313.51, details are as follows:
Category Item Accumulative Amount at Increased Decreased Closing balance
amount year-begin amount amount
Finished product Banshan Yujing 27,205,315.95 27,205,315.95 8,170,437.05 19,034,878.90
development Phase I
Finished product Front Sea Harbor 14,633,486.15 8,369,227.07 3,337,408.90 5,031,818.17
development
Finished product Hupan Yujing 10,446,911.43 3,230,742.76 180,650.85 3,050,091.91
development Phase I
Finished product Langqiao 83,077,702.96 4,655,259.52 4,655,259.52
development International
Product development Jinling Holiday 3,858,872.36 3,858,872.36 3,858,872.36
in progress
Product development Songhu Langyuan 30,539,392.65 30,539,392.65 30,539,392.65
in progress
Total 169,761,681.50 77,858,810.31 11,688,496.80 66,170,313.51
(4) Inventory Limit
Disclosure of inventory limit by project:
Unit: RMB
Name of project Opening balance Closing balance Reason for the Limit
Finished product development Guarantee for property
4,839,083.09 4,839,083.09
preservation, for details, see
69
Notes XIV. 2(1) of Section X of
the report.
Total 4,839,083.09 4,839,083.09 --
(5) Completed unsettled assets formed from the construction contact at the period end
Unit: RMB
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
No
11. Assets divided as held-to-sold
Unit: RMB
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
Item Closing balance Opening balance
Other notes:
Not applicable
13. Other current assets
Unit: RMB
Item Closing balance Opening balance
1. 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
2. Original value of the assets group held
to cancel after verification(investment and 6,034,625.03 6,034,625.03
accounts receivable of International
70
Industry)
Depreciation reserves of the assets group
held to cancel after verification(investment
-6,034,625.03 -6,034,625.03
and accounts receivable of International
Industry)
3. Original value of the assets group held
to cancel after verification(accounts 53,034,143.94 53,658,578.72
receivable of Jintian Industry)
Depreciation reserves of the assets group
held to cancel after verification(accounts -53,034,143.94 -53,658,578.72
receivable of Jintian Industry)
4. Pre-paid VAT 26,450,414.00 10,727,007.94
5. Deducted input tax 250,549.21
Total 26,450,414.00 10,977,557.15
Other notes:
Note 1: 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 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
On February 13, 2017, Hainan Xinda Development Corporation (hereinafter referred to as Hainan Xinda) was
declared as bankruptcy according to HZFPZ No.1-1 Ruling from Haikou Intermediate People’s Court (2014), the
company needs to cancel the long-term equity investment of RMB 20,000,000.00 and other receivables of RMB
49,437,140.28 for Hainan Xinda. For the above assets have withdrawn the bad debt provision, it will not influence
the company’s operating result. Until the end of the reporting period, the company’s cancellation procedure has
not been completed.
Note 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 April 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.,
71
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. The Company received the Jintian Industry stock of additional distribution with
RMB624,434.78 on April 20, 2017.
Note 4: Compared with the opening balance, the closing balance increased by RMB15,472,856.85, which was
mainly due to the increased VAT payable
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity
36,272,124.79 18,158,883.56 18,113,241.23 35,801,912.64 18,298,198.50 17,503,714.14
instruments
Measured by fair value 3,613,241.23 3,613,241.23 3,003,714.14 3,003,714.14
Measured by cost 32,658,883.56 18,158,883.56 14,500,000.00 32,798,198.50 18,298,198.50 14,500,000.00
Total 36,272,124.79 18,158,883.56 18,113,241.23 35,801,912.64 18,298,198.50 17,503,714.14
(2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB
Available-for-sale equity Available-for-sale debt
Category Total
instruments instruments
Cost of the equity
instruments/amortized
3,613,241.23 3,613,241.23
cost of the liabilities
instruments
Fair value 3,613,241.23 3,613,241.23
(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB
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 3,465,000. 3,465,000. 3,465,000. 3,465,000. 12.66%
72
Machinery 00 00 00 00
(Group)
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.
Travel 0.28%
00 00 00 00
Co., Ltd.
Shensan
17,695.09 17,695.09 17,695.09 17,695.09
Co., Ltd.
Macao
Huashen
86,844.66 2,582.52 84,262.14 86,844.66 2,582.52 84,262.14 10.00%
Enterprise
Co., Ltd.
Chongqing
Guangfa
Real estate 2,635,180. 2,556,817. 2,635,180. 2,556,817.
78,363.12 78,363.12 27.25%
developme 90 78 90 78
nt Co.,
Ltd.
Saipan 1,962,832. 1,904,463. 1,962,832. 1,904,463.
58,369.30 58,369.30 30.00%
Project 65 35 65 35
32,798,198 32,658,883 18,298,198 18,158,883
Total 139,314.94 139,314.94 --
.50 .56 .50 .56
73
(4) Changes of the impairment of the available-for-sale financial assets during this Reporting Period
Unit: RMB
Available-for-sale equity Available-for-sale debt
Category Total
instruments instruments
Balance of the withdrawn
impairment at the 18,298,198.50 18,298,198.50
period-begin
Decreased amount 139,314.94 139,314.94
Balance of the withdrawn
impairment at the 18,158,883.56 18,158,883.56
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
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
Notes 1: The Group measured the equity investment which had no quotation in the active market with the fair
value could not be reliable measured by cost as well as no any disposal plan on the relevant equity investment in
the foreseeable future.
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: 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 4: In January 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.,
74
and thus no more include it in the scope of the consolidation financial statement according to the regulations of
the ASBE
Notes 5: 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 total
936,205 tradable A shares, 495,362 non-tradable A shares and 539,455 B shares distributed by Gintian Industry
on January 26, 2016 and April 20, 2017. Counted on the price issued on the last trading date before the trading
suspension of Gintian Industry (December 10 2014), RMB 2.09 per A share and RMB 1.04 per B share (part of
them are RMB1.18 due to exchange rate changes on April 20, 2017 ), the initial costs shall be RMB3,565,856.06.
The closing book value of this share was RMB3,613,241.23, of which part of increased original book value
RMB624,434.78 was received in the Reporting Period. The decreased original book value due to changes in
exchange rate at the period end was RMB14,907.69 (cumulative increased original book value was
RMB47,385.17 due to changes in exchange rate).
15. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB
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
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
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Unit: RMB
Closing balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value range
provision provision
75
(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
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 32,263,24 726,291.2 32,989,53
e Co., 0.61 5 1.86
Ltd.
Shenzhen
Tian’an
Internatio
nal
4,488,650 686,521.6 5,175,172
Building
.51 6 .17
Property
Managem
ent Co.,
Ltd.
36,751,89 1,412,812 38,164,70
Subtotal
1.12 .91 4.03
76
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
69,559,50 1,412,812 70,972,31 32,807,61
Total
5.26 .91 8.17 4.14
Other notes:
18. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □ Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original book value
1. Opening balance 671,864,578.16 7,969,954.40 679,834,532.56
2. Increased amount
2,533,167.85 2,533,167.85
of the period
(1) Outsourcing
(2) Transfer of
inventory\fixed
2,533,167.85 2,533,167.85
assets\project under
construction
(3) Increased from
enterprise merger
77
3. Decreased
367,228.56 367,228.56
amount of the period
(1) Disposal
(2) Other transfer 367,228.56 367,228.56
4. Closing balance 674,030,517.45 7,969,954.40 682,000,471.85
II. Accumulative
depreciation and
accumulative
amortization
1.Opening balance 246,155,511.74 5,878,407.79 252,033,919.53
2. Increased amount
11,518,043.06 254,572.56 11,772,615.62
of the period
(1) Withdrawal or
11,518,043.06 254,572.56 11,772,615.62
amortization
3. Decreased
334,281.12 334,281.12
amount of the period
(1) Disposal
(2) Other transfer 334,281.12 334,281.12
4. Closing balance 257,339,273.68 6,132,980.35 263,472,254.03
III. Depreciation reserves
1.Opening balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal
(2) Other transfer
4. Closing balance
IV. Book value
1. Closing book 416,691,243.77 1,836,974.05 418,528,217.82
78
value
2. Opening book
425,709,066.42 2,091,546.61 427,800,613.03
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
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
□ Yes √ No
(3) Details of investment properties with unaccomplished certification of property
Unit: RMB
Project Book value Reason
Other notes:
The decrease of house and constructions value and depreciation was due to foreign currency statements translation. The restricted
investment real estate was mainly caused from the guarantee of property preservation. For details, see Note VII. 77 and XIV. 2(1) of
Section X. Financial Report.
19. Fixed assets
(1) List of fixed assets
Unit: RMB
Houses and Transportation Electronic and Decoration of the
Item Total
buildings equipment other equipment fixed assets
I. Original book
value
1. Opening
111,380,625.29 63,034,062.37 34,939,140.97 6,451,403.79 215,805,232.42
balance
2. Increased
7,323,528.95 3,500.00 591,485.89 0.00 7,918,514.84
amount of the period
79
(1) Purchase 7,493,476.22 3,500.00 591,485.89 0.00 8,088,462.11
(2) Transfer of
project under
construction
(3) Increased
from enterprise
merger
3. Decreased
169,947.27 105,559.38 306,388.79 0.00 581,895.44
amount of the period
(1) Disposal or
0.00 105,559.38 306,388.79 0.00 411,948.17
scrap
(2) Influence from
foreign currency 169,947.27 0.00 0.00 0.00 169,947.27
statement translation
4. Closing balance 118,704,154.24 62,932,002.99 35,224,238.07 6,451,403.79 223,311,799.09
II. Accumulative
depreciation
1.Opening balance 80,567,001.77 26,013,952.25 29,505,914.48 5,710,638.87 141,797,507.37
2. Increased
1,332,814.65 5,494,283.39 774,407.31 168,726.72 7,770,232.07
amount of the period
(1) Withdrawal 1,332,814.65 5,494,283.39 774,407.31 168,726.72 7,770,232.07
3. Decreased
146,236.47 105,559.38 257,810.47 0.00 509,606.32
amount of the period
(1) Disposal or
0.00 105,559.38 257,810.47 0.00 363,369.85
scrap
(2) Influence from
foreign currency 146,236.47 0.00 0.00 0.00 146,236.47
statement translation
4. Closing balance 81,753,579.95 31,402,676.26 30,022,511.32 5,879,365.59 149,058,133.12
III. Depreciation
reserves
1.Opening balance 75,717.16 75,717.16
2. Increased
amount of the period
(1) Withdrawal
80
3. Decreased
amount of the period
(1) Disposal or
scrap
4. Closing balance 75,717.16 75,717.16
IV. Book value
1. Closing book
36,950,574.29 31,529,326.73 5,126,009.59 572,038.20 74,177,948.81
value
2. Opening book
30,813,623.52 37,020,110.12 5,357,509.33 740,764.92 73,932,007.89
value
(2) List of temporarily idle fixed assets
Unit: RMB
Accumulative Impairment
Item Original book value Book value Notes
depreciation provision
Houses and
4,059,207.77 2,361,712.49 1,697,495.28
buildings
(3) Fixed assets leased in from financing lease
Unit: RMB
Accumulative
Item Original book value Impairment provision Book value
depreciation
(4) Fixed assets leased out from operation lease
Unit: RMB
Item Closing book value
(5) Details of fixed assets failed to accomplish certification of property
Unit: RMB
Item Book value Reason
Other notes:
The restricted investment real estate was mainly caused from the guarantee of property preservation. For details, see Note VII. 77 and
XIV. 2(1) of Section X. Financial Report
81
20. Construction in progress
(1) List of construction in progress
Unit: RMB
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
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
Item Amount of provision Reason of provision
Other notes
Not applicable
21. Engineering Material
Unit: RMB
Item Closing balance Opening balance
Other notes
Not applicable
22. Liquidation of Fixed Assets
Unit: RMB
82
Item Closing balance Opening balance
Liquidation of transportation equipment 85,726.84 85,556.34
Total 85,726.84 85,556.34
Other 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
Taxi operating
Item Land use right Patent right Non-patent right Total
license plate
I. Total original
book value
1. Opening balance 170,866,146.80 170,866,146.80
2. Increase in the
Reporting Period
(1) Purchase
(2) Internal R &D
(3) Increase from
enterprise
combination
3. Decrease in the
Reporting Period
(1) Purchase
83
4. Closing balance 170,866,146.80 170,866,146.80
II. Total accrued
amortization
1. Opening balance 85,378,565.85 85,378,565.85
2. Increase in the
3,576,251.52 3,576,251.52
Reporting Period
(1) Withdrawal 3,576,251.52 3,576,251.52
3. Decrease in
the Reporting Period
(1) Disposal
4. Closing balance 88,954,817.37 88,954,817.37
III. Total impairment
provision
1. Opening balance
2. Increase in the
Reporting Period
(1) Withdrawal
3. Decrease in the
Reporting Period
(1) Disposal
4. Closing balance
IV. Total book value
of intangible assets
1. Book value
81,911,329.43 81,911,329.43
of the period-end
2. Book value
85,487,580.95 85,487,580.95
of the period-begin
The proportion 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
84
Item Book value Reason
Other notes:
26. R&D Expenses
Unit: RMB
Opening Closing
Item Current increased amount Current decreased amount
balance balance
Other notes
Not applicable
27. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB
Name of the
invested units or
Opening balance Increase Decrease Closing balance
events generating
goodwill
(2) Impairment Provision of Goodwill
Unit: RMB
Name of the
invested units or
Opening balance Increase Decrease Closing balance
events generating
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
Amortization
Item Opening balance Increase Decrease Closing balance
amount
85
Facilities
reconstruction 1,124,345.13 0.00 86,488.14 0.00 1,037,856.99
expenses
Renovation costs 372,045.98 0.00 177,677.34 0.00 194,368.64
Total 1,496,391.11 264,165.48 1,232,225.63
Other notes
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
125,373,939.07 31,274,644.00 125,379,771.44 31,287,140.16
provision
Unrealized internal sales
47,275,584.43 11,818,896.11 49,673,467.80 12,418,366.95
gain and loss
Deductible losses 334,958,789.35 83,739,697.34 29,134,805.61 7,283,701.41
Accrued land VAT 970,952,877.80 242,738,219.45 1,004,734,891.74 251,183,722.93
Estimated profit
calculated at pre-sale
104,752,784.36 26,188,196.09 289,951,359.60 72,487,839.90
revenue of property
enterprises
Payroll payable unpaid
120,745.76 30,186.44 143,852.61 35,963.15
but withdrawn
Estimated liabilities 0.00 0.00 5,201,315.32 1,300,328.83
Total 1,583,434,720.77 395,789,839.43 1,504,219,464.12 375,997,063.33
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Book value of the fixed
assets larger than the tax 44,436.80 11,109.20 57,950.04 14,487.51
basis
86
Total 44,436.80 11,109.20 57,950.04 14,487.51
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
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
395,789,839.43 375,997,063.33
assets
Deferred income tax
11,109.20 14,487.51
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 335,403,967.11 449,991,008.56
Deductible losses 210,908,969.70 146,287,359.19
Total 546,312,936.81 596,278,367.75
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Will Due the Following Years
Unit: RMB
Years Closing balance Opening balance Notes
Y 2017 6,311,349.73 6,311,349.73 The deductible losses of 2012
Y 2018 10,672,025.10 10,672,025.10 The deductible losses of 2013
Y 2019 9,167,690.00 9,167,690.00 The deductible losses of 2014
Y 2020 100,639,142.29 100,639,142.29 The deductible losses of 2015
Y 2021 19,497,152.07 19,497,152.07 The deductible losses of 2016
Y 2022 64,621,610.51 The deductible losses of 2017
Total 210,908,969.70 146,287,359.19 --
Other notes:
30. Other Non-current Assets
Unit: RMB
Item Closing balance Opening balance
87
Housing purchase prepayment 0.00 7,271,224.00
Total 7,271,224.00
Other notes:
The decrease of other non-current assets was generated from the transfer of non-current assets into fixed assets to account which
meet the requirements of admission of partner during the Reporting Period.
31. Short-term Loans
(1) Category of Short-term Loans
Unit: RMB
Item Closing balance Opening balance
Notes of short-term loans category:
Not applicable
(2) List of the Short-term Loans Overdue but Not Return
The amount of the overdue unpaid short-term loans at the period-end was of RMB000, of which the significant overdue unpaid
short-term loans are as follows:
Unit: RMB
Borrower Closing balance Lending rate Overdue time Overdue rate
Total 0.00 -- -- --
Other notes:
Not applicable
32. Financial Liabilities Measured by Fair Value and the Changes Included in the Current Gains and Losses
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
33. Derivative Financial Liabilities
□ Applicable √ Not applicable
88
34. Notes Payable
Unit: RMB
Category Closing balance Opening balance
The total amount of the due but not pay notes payable at the period-end was of RMB000.
35. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Closing balance Opening balance
Within 1 year (including 1 year) 238,285,887.99 298,389,610.44
1 to 2 years (including 2 years) 45,240,523.62 44,826,093.11
2 to 3 years (including 3 years) 9,913,969.80 9,793,533.80
3 to 4 years (including 4 years) 6,430,167.09 12,899,987.95
4 to 5 years (including 5 years) 25,776,334.10 26,356,677.30
Over 5 years 27,644,667.18 27,660,236.79
Total 353,291,549.78 419,926,139.39
(2) Notes of the Accounts Payable Aging over One Year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Bureau
Jiangsu Hanjian Group 20,025,581.03 Unsettled
Hunan Construction Engineering Group 12,887,087.00 Unsettled
Shenzhen Yuanpeng Decoration Group
3,763,729.00 Unsettled
Co., Ltd.
Lvmeiyi Environmental Construction
2,691,496.08 Unsettled
Group Co., Ltd.
Total 64,367,893.11 --
Other notes:
89
36. Advance from Customers
(1) List of Advance from Customers
Unit: RMB
Item Closing balance Opening balance
Within 1 year (including 1 year) 1,198,813,898.99 1,828,477,521.99
1 to 2 years (including 2 years) 317,763,545.00 401,822,962.96
2 to 3 years (including 3 years) 663,372.58 663,372.58
3 to 4 years (including 4 years) 36,216.10 36,216.10
4 to 5 years (including 5 years) 950.00 950.00
Over 5 years 320,204.02 320,204.02
Total 1,517,598,186.69 2,231,321,227.65
(2) Significant Advance from Customers Aging over One Year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
SZPRD-Dongguan Songhulangyuan The project has not met the term of
304,579,451.00
Project settlement.
The project has not met the term of
SZPRD-Hupanyujing Phase II 13,094,094.00
settlement.
Total 317,673,545.00 --
(3) Particulars of Settled but Unfinished Projects Formed by Construction Contract at Period-end.
Unit: RMB
Item Amount
Other notes:
The closing balance of advance from customers decreased 31.99%, which was mainly generated from the
decrease of prepayment of house.
The significant advance receipts aging over 1 year were generated from the not meeting the term of settlement of
house purchase prepayment from SZPRD-Dongguan Songhulangyuan Project and SZPRD-Hupanyujing Phase
II.
Prepayment of sale of real estate projects were as follows:
Item Aging Closing balance Estimate finished time
SZPRD-Dongguan Within 1 year, 1 to 2 1,048,723,829.00 September 2017
Songhulangyuan Project years
SZPRD-Hupanyujing Phase Within 1 year, 1 to 2 387,036,936.00 December 2017
90
II years
SZPRD-Banshanyujing Within 1 year 50,052,684.00 Completed
Phase I
Total 1,485,813,449.00
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 66,366,751.10 139,243,169.45 156,917,648.53 48,692,272.02
II. Post-employment
benefit-defined 571,072.41 14,018,567.29 14,369,799.19 219,840.51
contribution plans
III. Termination benefits 403,074.00 166,142.00 124,902.00 444,314.00
Total 67,340,897.51 153,427,878.74 171,412,349.72 49,356,426.53
(2) List of Short-term Salary
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus,
59,732,357.24 121,385,755.13 139,682,794.04 41,435,318.33
allowance, subsidy
2. Employee welfare 2,197,917.17 2,197,917.17 0.00
3. Social insurance 65,535.92 5,438,802.27 5,504,338.19 0.00
Of which: 1. Medical
56,896.26 4,355,517.61 4,412,413.87 0.00
insurance premiums
Work-related injury
2,395.63 384,194.30 386,589.93 0.00
insurance
Maternity insurance 6,244.03 415,595.16 421,839.19 0.00
Other social security
283,495.20 283,495.20
charges
4. Housing fund 879,155.76 4,691,452.58 5,066,392.22 504,216.12
5. Labor union budget
and employee education 5,689,702.18 3,790,503.59 2,727,468.20 6,752,737.57
budget
8. Non-monetary benefits 1,738,738.71 1,738,738.71
91
Total 66,366,751.10 139,243,169.45 156,917,648.53 48,692,272.02
(3) List of Drawing Scheme
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 565,083.33 11,487,033.79 11,832,276.61 219,840.51
2. Unemployment
5,989.08 857,091.58 863,080.66 0.00
insurance
3. Annuity 1,674,441.92 1,674,441.92 0.00
Total 571,072.41 14,018,567.29 14,369,799.19 219,840.51
Other notes:
The current termination benefits withdrawn for severing labor relation were RMB166,142.00, the amount payable
but unpaid at the end of the reporting period was RMB444,314.00.
38. Taxes Payable
Unit: RMB
Item Closing balance Opening balance
VAT 10,528,624.50 4,222,996.14
Corporate income tax 43,524,625.95 222,564,198.00
Personal income tax 1,000,908.01 748,140.79
Urban maintenance and construction tax 156,150.68 75,644.46
Stamp tax 175.90
Education Surcharge 545,190.85 39,326.29
Local education surtax 394,652.24 25,127.18
Land VAT 1,015,300,095.48 1,025,601,114.80
Property tax 1,156,883.32 1,153,374.78
Levee fee 788.60 2,534.58
Others 549,237.11 566,927.71
Total 1,073,157,332.64 1,254,999,384.73
Other notes:
39. Interest Payable
Unit: RMB
Item Closing balance Opening balance
92
List of the significant overdue unpaid interest:
Unit: RMB
Borrower Overdue amount Overdue reasons
Total 0.00 --
Other notes:
40. Dividends Payable
Unit: RMB
Item Closing balance Opening balance
Common stock dividends 29,642.40
Total 29,642.40
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
41. Other Accounts Payable
(1) Other Accounts Payable Listed by Nature of the Account
Unit: RMB
Item Closing balance Opening balance
Margin 34,776,926.67 34,768,894.12
Accounts receivable of the related
34,511,011.04 31,511,011.04
companies
Accounts receivable of the non-related
54,775,622.10 49,280,571.06
companies
Others 22,631,388.52 16,521,698.32
Total 146,694,948.33 132,082,174.54
(2) Other Significant Accounts Payable with Aging over One Year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Come-and-go accounts without specific
Shenzhen Jifa Warehouse Co., Ltd. 29,296,665.14
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 5,214,345.90 Come-and-go accounts without specific
93
Management Company of Shenzhen amortization period
RAINBOW DEPARTMENT STORE CO.,
2,380,000.00 Margin within the leasing period
LTD
Total 59,431,797.79 --
Other notes
42. Liabilities Classified as Holding for Sale
Unit: RMB
Item Closing balance Opening balance
Other notes:
43. Non-current Liabilities Due within 1 Year
Unit: RMB
Item Closing balance Opening balance
Other notes:
44. Other Current Liabilities
Unit: RMB
Item Closing balance Opening balance
Increase/decrease of the short-term bonds payable:
Unit: RMB
Withdraw Overflow
The Pay in
Bonds Face Issuing Bonds Opening interest discount Closing
Amount current current
name value date maturity balance by face amortizati balance
issue period
value on
Other notes:
45. Long-term Loan
(1) Category of Long-term Loan
Unit: RMB
Item Closing balance Opening balance
Notes of long-term loans category:
Other notes including interest rate range:
94
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Closing balance Opening balance
(2) Increase/Decrease of Bonds Payable (Excluding the Other Financial Instruments Classified as the Preference
Shares, Perpetual Capital Securities of the Financial Liabilities)
Unit: RMB
(3) Notes to the Conditions and Time of the Shares Transfer of the Convertible Corporate Bonds
(4) Notes to the Other Financial Instruments Classified as Financial Liabilities
Basic situation of outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
Change in outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
Unit: RMB
Outstanding Opening period Increase Decrease Closing period
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Notes to judgment of other financial instrument classified as financial liabilities
Other notes:
47. Long-term Payable
(1) Long-term Payable
Unit: RMB
Item Closing balance Opening balance
Other notes:
48. Long-term Payroll Payable
(1) Long-term Payroll Payable Chart
Unit: RMB
Item Closing balance Opening balance
(2) List of the Changes of Defined Benefit Plans
Obligation present value of defined benefit plans:
95
Unit: RMB
Item Reporting period Same period of last year
Plan assets:
Unit: RMB
Item Reporting period Same period of last year
Liabilities (net assets) of defined benefit plans:
Unit: RMB
Item Reporting period Same period of last year
Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow, time and uncertainty of the
Company:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
49. Special Payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance Reasons
Other notes:
50. Accrued Liabilities
Unit: RMB
Item Closing balance Opening balance Reasons
Pending litigation 5,201,315.32
Total 5,201,315.32 --
Other notes, including significant assumptions, valuation explanation related to significant estimated liabilities:
51. Deferred Revenue
Unit: RMB
Item Opening balance Increase Decrease Closing balance Reason
Operating license
Operating license
plate rental income 7,509,403.41 0.00 646,606.82 6,862,796.59
plate rental
held to carry forward
International Trade Rental of
Center petroleum International Trade
8,870,000.00 0.00 700,000.00 8,170,000.00
rental income held to Center Petroleum
carry forward Co., Ltd.
Total 16,379,403.41 1,346,606.82 15,032,796.59 --
96
Item involving government subsidies:
Unit: RMB
Amount recorded
into Related to
Amount of newly
Item Opening balance non-operating Other changes Closing balance assets/related
subsidy
income in report income
period
Total 0.00 0.00 0.00 --
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Utility specific fund 237,163.45 237,163.45
Housing principle fund 18,455,575.89 17,767,077.97
House warming deposit 7,093,351.68 7,135,649.65
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 27,113,992.60 27,308,410.05
Taxi Deposit 41,528,967.07 41,667,813.07
Divestiture Assets. 15,977,012.70 16,736,122.98
Others 844,128.26 922,638.62
Total 115,269,607.09 115,794,291.23
Other notes:
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Opening Capitalized Closing
New shares
balance Bonus shares Capital Others Subtotal balance
issued
reserves
The sum of
595,979,092.00 595,979,092.00
shares
Other notes:
97
54. Other Equity Instruments
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual Bond
Outstanding at the End of the Period
(2) The Statement of Changes in Financial Instruments such as Preferred Stock and Perpetual Bond
Outstanding at the End of the Period
Unit: RMB
Outstanding The beginning of the
Increase Decrease The end of the period
financial period
instruments Amount Book value Amount Book value Amount Book value Amount Book value
The current changes in other equity instruments and the corresponding reasons and the basis of the relevant accounting treatment
Other notes:
55. Capital Surplus
Unit: RMB
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
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other Comprehensive Income
Unit: RMB
Reporting period
Less: recorded
Amount in other Attributable
Opening before Less: to owners Attributable Closing
Item comprehensive
balance income tax Income tax of the to minority balance
income in
in current prior period expense Company shareholder
period and transferred after tax s after tax
to profit or
98
loss in current
period
II. Other comprehensive income -1,557,858. -1,557,858. -2,255,40
-697,548.70
reclassify into profits and losses 56 56 7.26
Balance arising from the translation
-1,557,858. -1,557,858. -2,255,40
of foreign currency financial -697,548.70
56 56 7.26
statements
-1,557,858. -1,557,858. -2,255,40
Total -697,548.70
56 56 7.26
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:
58. Special Reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
59. Surplus Reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
253,569,569.96 253,569,569.96
reserves
Total 253,569,569.96 253,569,569.96
Notes of surplus reserves, including changes and reason of change
60. Retained Earnings
Unit: RMB
Item Reporting Period Last period
Opening balance of retained profits before
1,441,632,088.56 1,233,358,112.55
adjustments
Opening balance of retained profits after
1,441,632,088.56 1,233,358,112.55
adjustments
Add: Net profit attributable to owners of the
364,355,770.43 -5,248,704.63
Company
Dividend of common stock payable 107,276,236.56 47,678,327.36
Closing retained profits 1,698,711,622.43 1,180,431,080.56
99
List of adjustment of opening retained profits:
1) RMB000 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB000 opening retained profits was affected by changes on accounting policies.
3) RMB000 opening retained profits was affected by correction of significant accounting errors.
4) RMB000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB000 opening retained profits was affected totally by other adjustments.
61. Revenues and Operating Costs
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 1,292,726,904.41 488,359,574.96 345,547,471.22 287,490,422.42
Other operations 24,419,828.02 10,221,593.97 26,510,008.74 7,517,399.44
Total 1,317,146,732.43 498,581,168.93 372,057,479.96 295,007,821.86
62. Business Tax and Surcharges
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 4,710,083.18 1,239,360.30
Education Surcharge 2,014,580.53 532,180.88
Property tax 2,437,151.74 1,451,965.74
Land use tax 711,891.87 291,904.46
Business tax 29,954,387.90 14,203,065.56
Local education surtax 1,343,214.98 353,463.79
Levee fee 789.40 -37.58
Land VAT 315,690,830.48 5,661,386.67
Others 307,092.87 11,672.58
Total 357,170,022.95 23,744,962.40
Other notes:
The current tax and surcharges increased 1404.19% compared to that of last period, which was mainly generated
from the dramatic increase of relevant taxes such as withdrawn land VAT caused by the increase of realized
income and high value-added rate of carry-over income projects.
The business tax of the Reporting Period was generated from the withdrawing business tax in the Reporting
Period of advance house payment before the Translation from Business Tax to Value-Added Tax.
100
63. Sales Expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 2,099,178.56 2,025,984.36
Office expenses of operating institutions 1,315,902.76 1,773,152.88
Sales agency fee, advertising expense and
5,111,763.25 10,539,707.09
general publicity expense
Others 2,329,504.38 2,200,915.26
Total 10,856,348.95 16,539,759.59
Other notes:
The current sales expenses decreased 34.36% compared to that of last period, which was mainly generated from the decrease of sales
agency fee and advertising expenses of the reporting period.
64. Administration Expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 34,585,361.42 29,331,379.85
Administrative office cost 9,101,588.30 7,460,528.60
Assets amortization and depreciation
1,739,356.66 1,808,062.26
expense
Litigation costs 1,042,032.19 235,352.87
Taxes 0.00 878,783.59
Others 5,603,942.28 4,858,048.28
Total 52,072,280.85 44,572,155.45
Other notes:
65. Financial Expenses
Unit: RMB
Item Reporting Period Same period of last year
Interest expenses 0.00 0.00
Less: Interest income 18,393,351.08 7,499,149.56
Net losses of exchange 144,567.09 -32,303.30
Others 485,010.47 493,013.92
Total -17,763,773.52 -7,038,438.94
Other notes:
101
The current interest income of financial expenses increased compared to that of last period, which was mainly
generated from the increase of fixed term deposit and seven-day notice deposit.
66. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 776,978.24 -539,137.85
II. Inventory falling price loss -55,783,723.64 4,350,035.81
XIV. Others -624,434.78
Total -55,631,180.18 3,810,897.96
Other notes:
The asset impairment loss decreased 1559.79% compared to that of last period, which was mainly generated from the write-back of
parts of original provision for impairment in the Reporting Period since the price rising of Banshan Yujing (Xuzhou) Project and
Hupan Yujing (Yangzhou) Project.
Others were generated from the write-back of original provision for impairment of Jintian accounts receivable to be verified
accounted under the item of other current assets due to the receipt of Jintian Shares in the Reporting Period. For more details, please
refer to Note VII 13.
67. Gains and Losses from Changes in Fair Value
Unit: RMB
Sources of changes in fair value gains Reporting period Same period of last year
Other notes:
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
1,412,812.91 1,158,576.32
accounted by equity method
Total 1,412,812.91 1,158,576.32
Other notes:
69. Other Income
Unit: RMB
Sources of other income Reporting period Same period of last year
102
70. Non-operating Gains
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Total gains from disposal of
23,539.00 23,539.00
non-current assets
Including: Gains from disposal
23,539.00 23,539.00
of fixed assets
Confiscated income 189,865.57 713,423.41 189,865.57
Others 394,751.40 369,676.99 394,751.40
Total 608,155.97 1,083,100.40 608,155.97
Government subsidies recorded into current profits and losses
Unit: RMB
Whether
subsidies
Special Related to
Distribution Distribution influence the Reporting Same period
Item Nature subsidy or assets/related
entity reason current Period of last year
not income
profits and
losses or not
Other notes:
The current non-operating gains decreased 43.85% compared to that of last period, which was mainly generated from the decrease of
confiscated income during the reporting period.
71. Non-operating Expenses
Unit: RMB
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
13,282.17 6,300.00 13,282.17
assets
Including: Loss on disposal of
13,282.17 6,300.00 13,282.17
fixed assets
Taxes overdue payment fines
20,007.28 19,444.98 20,007.28
and other fines
Litigation indemnity 5,819,228.52 5,819,228.52
Others 51,231.25 272,977.52 51,231.25
Total 5,903,749.22 298,722.50 5,903,749.22
Other notes:
103
The current non-operating expenses increased 1876.33% compared to that of last period, which was mainly generated from the
litigation indemnity of the reporting period. For more details, please refer to Section X Financial Report XIV 2. Events.
72. Income Tax Expense
(1) Lists of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 123,419,468.08 680,299.69
Deferred income tax expense -19,796,154.40 1,931,680.80
Total 103,623,313.68 2,611,980.49
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Total profits 467,979,084.11
Current income tax expense accounted by tax and relevant
116,994,771.03
regulations
Influence of different tax rate suitable to subsidiary -47,537.13
Influence of income tax before adjustment 1,353,552.71
Influence of non taxable income 0.00
Influence of not deductible costs, expenses and losses 27,356,993.91
Influence of deductible losses of deferred income tax assets
-40,637,684.53
derecognized used in previous period
Influence of deductible temporary difference or deductible losses
-1,396,782.31
of deferred income tax assets derecognized in Reporting Period.
Income tax expense 103,623,313.68
Other notes
The current income tax expense increased 3867.23% compared to that of last period, which was mainly generated from the increase
of profits realized in Reporting Period.
73. Other Comprehensive Income
Refer to the Note (VII) 57.
104
74. Information of Cash Flow Statement
(1) Other Cash Received Relevant to Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Interest income 18,393,351.08 7,499,149.56
Net margins, security deposit and various
0.00 1,103,118.08
special funds received
Net amount of utilities, miscellaneous
fees and accident fee and other receivables 0.00 3,548,734.20
on behalf
Other small receivables 4,152,114.66 9,409,363.61
Total 22,545,465.74 21,560,365.45
Note to other cash received relevant to operating activities
(2) Other Cash Paid Relevant to Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Paying administration expenses in cash 13,129,786.98 10,781,780.30
Paying sales expenses in cash 10,355,626.60 19,956,361.04
Net margins, security deposit and various
1,325,019.39 0.00
special funds paid
Net amount of utilities, miscellaneous
fees and accident fee and other payments 4,055,467.35 0.00
on behalf
Payment for litigation execution 10,750,093.41 0.00
Other small payments 5,365,845.58 6,389,601.95
Total 44,981,839.31 37,127,743.29
Note to other cash paid relevant to operating activities
(3) Other Cash Received Relevant to Investment Activities
Unit: RMB
Item Reporting Period Same period of last year
Note to other cash received relevant to investment activities：
105
(4) Other Cash Paid Relevant to Investment Activity
Unit: RMB
Item Reporting Period Same period of last year
Note to other cash paid relevant to investment activities：
(5) Other Cash Received Relevant to Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Note to other cash received relevant to financing activities：
(6) Other Cash Paid Relevant to Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Handling charges of significant loans 96,000.00
Total 96,000.00
Note to other cash paid relevant to financing activities：
75. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 364,355,770.43 -5,248,704.63
Add: Provision for impairment of assets -55,631,180.18 3,810,897.96
Depreciation of fixed assets, of oil-gas
19,542,847.69 16,066,627.54
assets, of productive biological assets
Amortization of intangible assets 3,576,251.52 3,576,251.52
Long-term unamortized expenses 264,165.48 264,165.48
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: -10,256.83 6,300.00
negative)
Losses on retirement of fixed assets (gains:
0.00 0.00
negative)
106
Losses on changes in fair value (gains:
0.00 0.00
negative)
Financial cost (gains: negative) 14,907.69 96,000.00
Investment loss (gains: negative) -1,412,812.91 -1,158,576.32
Decrease in deferred income tax assets
-19,792,776.10 -57,116,432.29
(gains: negative)
Increase in deferred income tax liabilities
-3,378.31 -4,970.93
(“-” means decrease)
Decrease in inventory (gains: negative) 172,080,653.00 -139,623,701.04
Decrease in accounts receivable from
-10,877,893.88 -169,294,375.39
operating activities (gains: negative)
Increase in payables from operating
-972,643,986.13 1,857,883,012.89
activities (decrease: negative)
Net cash flows generated from operating
-500,537,688.53 1,509,256,494.79
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Net increase in cash and cash equivalents: -- --
Closing balance of cash 2,247,039,397.08 2,116,055,975.68
Less: Opening balance of cash 2,857,353,056.85 933,337,815.77
Net increase in cash and cash equivalents -610,313,659.77 1,182,718,159.91
(2) Net Cash Paid of Obtaining the Subsidiary
Unit: RMB
Amount
Including: --
Including: --
Including: --
Other notes:
(3) Net Cash Receive from Disposal of the Subsidiary
Unit: RMB
Amount
Including: --
Including: --
107
Including: --
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2,247,039,397.08 2,857,353,056.85
Including: Cash on hand 204,530.91 299,819.32
Bank deposit on demand 2,246,678,453.69 2,114,647,115.64
Other monetary funds on demand 156,412.48 1,109,040.72
III. Closing balance of cash and cash
2,247,039,397.08 2,857,353,056.85
equivalents
Other notes:
The cash and cash equivalents excluded the restricted cash and cash equivalents with amount of
RMB12,402,160.00 of the Company or its subsidiaries. Refer to Note VII. 1.
76. Note to Items in the Statement of Change in Owner’s Equity
Notes to name of "other" item adjusted closing balance and the adjustment amount:
Not applicable
77. Assets with Restricted Ownership and Right to Use
Unit: RMB
Item Closing book value Restricted reason
Guarantee deposit, for details, please refer
Monetary capital 12,402,160.00
to Section X. Financial Report XIV. 2. (1)
Property preservation guarantee, for
Inventory 4,839,083.09 details, please refer to Section X. Financial
Report XIV. 2. (1)
Property preservation guarantee, for
Fixed assets 1,017,948.16 details, please refer to Section X. Financial
Report XIV. 2. (1)
Property preservation guarantee, for
Property investment 44,486,536.92 details, please refer to Section X. Financial
Report XIV. 2. (1)
Total 62,745,728.17 --
108
Other notes:
78. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary capital -- -- 52,497,775.76
HKD 60,488,277.17 0.8679 52,497,775.76
Other account payable 302,552.76
Of which: HKD 348,603.25 0.8679 302,552.76
Accounts payable 48,602.40
Of which: HKD 56,000.00 0.8679 48,602.40
Available-for-sale financial
621,266.20
assets
Of which: USD 91,707.93 6.7744 621,266.20
Other 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., Hong HKD Located in HK, settled by HKD
Ltd. and its subsidiary Kong
79. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Not applicable
80. Other
Not applicable
109
VIII. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Unit: RMB
The income The net profit
of the of the
The
Proportion of acquiree from acquiree from
Time of the Cost of the Way of the determination
Name of the the Date of the the
acquisition of acquisition of acquisition of basis of
acquiree acquisition of acquisition acquisition acquisition
the stock the stock the stock acquisition
the stock date to the date to the
date
end of the end of the
period period
Other notes:
Not applicable
(2) Combination Cost and Goodwill
Unit: RMB
Cost of business combination
The explanations on the contingent consideration and its changes as well as the determination method of the fair value of the cost of
business combination:
Not applicable
The main reason for the formation of large goodwill:
Not applicable
Other notes:
Not applicable
(3) The Identifiable Assets and Liabilities of Acquiree at Purchase Date
Unit: RMB
The fair value of the Purchase date The book value of the purchase date
Recognition methods of identifiable assets and liabilities:
Not applicable
110
Contingent liabilities of acquiree bared in enterprises merger:
Not applicable
Other 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 the Reporting Period
□ Yes √ No
(5) The Explanations on the Situation in which the Merger Price Cannot Be determined Rationally at the Date of
Acquisition or the End of the Period of Merger and Explanations on the Fair Value of the Acquiree’s
Recognizable Assets and Liabilities
Not applicable
(6) Other Notes
Not applicable
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
Income of the Net profits of
merged party the merged
Proportion of Basis of the Income of the Net profits of
Determinatio from the party from
equity enterprise merged party the merged
Name of the Date of n basis of the beginning of the beginning
acquired in merger under during the party during
merged party merger date of the period of of the period
business the same period of the period of
merger merger to the of merger to
combination control comparison comparison
date of the date of
merger merger
Other notes:
Not applicable
111
(2) Combination Cost
Unit: RMB
Combination cost
Notes to contingent consideration or other changes:
Not applicable
Other notes:
Not applicable
(3) The Book Value of the Assets and Liabilities of the Combined Party at Combining Date
Unit: RMB
At combining date At the end of last period
Contingent liabilities of the combined party undertaken in combination
Not applicable
Other 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.
Not applicable
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:
112
Not applicable
6. Other
Not applicable
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) The Structure of the Enterprise Group
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Shenzhen
Property
Huangcheng Real Shenzhen Shenzhen 95.00% 5.00% Set-up
development
Estate Co., Ltd.
SZPRD Real
Estate Property
Shenzhen Shenzhen 95.00% 5.00% Set-up
Development Co., development
Ltd.
PRD Group
Xuzhou Dapeng
Property
Real Estate Xuzhou Xuzhou 100.00% Set-up
development
Development 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
Property
INTERNATION Shenzhen Shenzhen 95.00% 5.00% Set-up
management
AL TRADE
113
CENTER
PROPERTY
MANAGERMEN
T 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
Chongqing Chongqing Service 100.00% Set-up
Elevator Co., Ltd.
Shenzhen
Tianque Elevator
Shenzhen Shenzhen Service 100.00% Set-up
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 Shenzhen Shenzhen Project 100.00% Set-up
114
Property supervision
Construction
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
Shenzhen Real
Property
Estate Zhanjiang Zhanjiang 100.00% Set-up
development
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.
115
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 June 2012. According to agreement of the
Contract, SIH requires SX Company to transfer Divestiture Assets to FET Company for management.
Since there are legal impediments in partial transfer of Divestiture Assets, FET Company and SX Company
concluded and signed Contract in November 2012 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 December 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 December 31, 2016. As of the
end of the Reporting Period, the mentioned assets are still operated and managed by SX Company. SX Company
paid for FET Company with 313,000 Yuan income obtained from assets operation from Jun. 1, 2012 to December
31, 2012. Since then SX Company will pay 626,000 Yuan 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 June 30, 2017 in consolidated statements is as follows:
Item Amount Item Amount
Other accounts receivable 50.00 Other account payable 682,423.08
116
Investment property 8,291,278.93 Other non-current liabilities 15,977,012.70
Fixed assets 8,298,026.95
Long-term unamortized 70,079.90
expenses
Total assets 16,659,435.78 Total liabilities and owners’ 16,659,435.78
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
Other notes:
As of the end of the Reporting Period, the balance of minority equity of the Company was RMB862,087.06. The
Company has no significant non-wholly owned subsidiary.
(2) Significant Not Wholly Owned Subsidiary
Unit: RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name 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
Other notes:
Naught
(3) The Main Financial Information of Significant Not Wholly Owned Subsidiary
Unit: RMB
Closing balance Opening balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Unit: RMB
Reporting period The same period of last year
Name Total Cash flow Total Cash flow
Operation Net profit Operation Net profit
consolidated from consolidated from
117
revenue income operating revenue income operating
activities activities
Other notes:
Naught
(4) Significant Restrictions of Using Enterprise Group Assets and Paying Off Enterprise Group Debt
Naught
(5) Provide Financial Support or Other Support for Structure Entities Incorporate into the Scope of
Consolidated Financial Statements
Naught
Other notes:
Naught
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the Subsidiary
(1) Explanations on Changes of Owner’s Equity in the Subsidiary
Naught
(2) The Effects of Transactions on Minority Equity and Owner’s Equity Attributable to the Parent Company
Unit: RMB
Other notes
Naught
3. Equity in Joint Venture Arrangement or Associated Enterprise
(1) List of Significant Joint Ventures or Associated Enterprises
Proportion of shareholding (%) Accounting
Name of the joint
treatment method
venture or Main place of Place of Nature of
of the investment
associated business registration business Directly Indirectly
to the joint
enterprise
venture or
118
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) The Main Financial Information of Significant Joint Ventures
Unit: RMB
Closing balance/amount incurred in the current
Opening balance/amount incurred in last period
period
Tianan International Tianan International
Building Property Shenzhen Jifa Building Property Shenzhen Jifa
Management Company Warehouse Co., Ltd. Management Company Warehouse Co., Ltd.
of Shenzhen of Shenzhen
Current assets 45,838,718.22 5,077,835.49 42,814,855.50 9,064,341.43
Of which: cash and cash
33,356,388.81 4,508,432.99 31,101,797.08 8,288,829.43
equivalence
Non-current assets 36,819.91 63,964,189.02 42,161.35 58,400,619.41
Total assets 45,875,538.13 69,042,024.51 42,857,016.85 67,464,960.84
Current liabilities 19,226,608.41 3,062,960.84 17,556,069.50 2,938,479.66
Non-current liability 16,298,585.41 16,323,646.35
Total liabilities 35,525,193.82 3,062,960.84 33,879,715.85 2,938,479.66
119
Equity attribute to the
10,350,344.31 65,979,063.67 8,977,301.00 64,526,481.18
parent company
Portion of net assets
calculated according to
5,175,172.16 32,989,531.84 4,488,650.50 32,263,240.59
proportion of
shareholdings
Book value of equity
investment to joint 5,175,172.16 32,989,531.84 4,488,650.50 32,263,240.59
venture
Operation revenue 9,006,071.80 4,169,092.56 8,671,772.39 3,580,486.62
Financial expenses -504,717.70 -4,625.32 29,837.17 -7,667.06
Income tax expense 457,681.11 484,194.16 186,291.45 290,916.24
Net profit 1,373,043.31 1,452,582.49 558,874.35 1,758,278.26
Total comprehensive
1,373,043.31 1,452,582.49 558,874.35 1,758,278.26
income
Other notes
Naught
(3) The Main Financial Information of Significant Associated Enterprises
Unit: RMB
Closing balance/amount incurred in the Opening balance/amount incurred in last
current period 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.
(4) The Summarized Financial Information of Unimportant Joint Ventures and Associated Enterprises
Unit: RMB
Closing balance/amount incurred in the Opening balance/amount incurred in last
current period period
Joint venture: -- --
The total of following items according to the -- --
120
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes
Naught
(5) Explanations on Great Limitation of the Ability to Transfer Funds to the Company by Joint Ventures or
Associated Enterprises
Naught
(6) Excess Loss Incurred in Joint Ventures or Associated Enterprises
Unit: RMB
The unconfirmed losses of the The accumulated unconfirmed
Name of joint venture of The accumulated unconfirmed
report period (or the net profits losses at the end of the report
associated enterprise losses before the report period
shared by the current period) period
Other notes
Naught
(7) The Unrecognized Commitment Related to the Investment of Joint Ventures
Naught
(8) The Contingent Liabilities Related to the Investment of Joint Ventures or Associated Enterprises
Naught
4. Significant Joint Operation
Proportion of shareholding/shares
Name of joint Main places of
Registration Nature of business possessed (%)
operation business
Directly Indirectly
Note 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
121
5. Equity of Structure Entity Not Including in the Scope of Consolidated Financial Statements
Explanations on the structured entity not included in the scope of the 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
RMB43.1963 million except the aforesaid had withdrawn bad debt provision, mainly was the account receivable
of property management, of which was account receivable RMB4.0315 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. 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 5,
Note VII and 9, Note VII.
2. Liquidity Risk
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 it selves, 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.
122
The all financial liabilities of the Company shall be paid at maturity within one year.
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 period
Influence to the Influence to Influence to the Influence to
profits equity of profits equity of
shareholders shareholders
RMB down 2% against HKD 3,145.01 -1,053,537.12 5,630.49 -997,110.52
RMB up 2% against HKD -3,145.01 1,053,537.12 -5,630.49 997,110.52
RMB down 2% against USD -12,425.32 -12,425.32
RMB up 2% against USD 12,425.32 12,425.32
Note 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Note 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
(2) Interest Rate Risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due
to the change of market price.
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.
As of the end of Reporting Period, the Group had repaid all the bank loan, the debt with interest was RMB0
4. Fair Value
See Note (XI).
XI. The Disclosure of the Fair Value
1. Closing Fair Value of Assets and Liabilities Calculated by Fair Value
Unit: RMB
Fair value at the end of the reporting period
Item First level Second level Third level
Total
Fair value measurement Fair value measurement Fair value measurement
I. Consistent fair value
-- -- -- --
measurement
123
(II) Available-for-sale
3,613,241.23 3,613,241.23
financial assets
(2) Equity tool investment 3,613,241.23 3,613,241.23
Total assets of consistent
3,613,241.23 3,613,241.23
fair value measurement
II. Inconsistent fair value
-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level 1
The closing price in NEEQ on June 30, 2017
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted, the
Qualitative and Quantitative Information of Important Parameters
Not applicable
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted, the
Qualitative and Quantitative Information of Important Parameters
Not applicable
5. Consistent Fair Value Measurement Items at Level 3, the Adjustment Information of the Opening and Closing
Book Value, and the Sensitivity Analysis of Unobservable Parameters
Not applicable
6. Consistent Fair Value Measurement Items, Conversion between All Levels during the Reporting Period, the
Reasons for Conversion and Policies at the Time of Determination of Conversion
Not applicable
7. Change and Change Reason of Valuation Techniques in the Reporting Period
Not applicable
124
8. Particulars about the Fair Value of the Financial Assets and Financial Liabilities Not Measured at Fair Value
Not applicable
9. Other
Not applicable
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
INVESTMENT Managing
Shenzhen RMB21,480 million 63.82% 63.82%
HOLDINGS CO., state-owned assets
LTD
Notes: Information on the parent company:
The parent company of the Company is Shenzhen Investment Holdings Co., Ltd. which 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.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.
Other notes:
2. Subsidiaries of the Company
For more details, please refer to Note (IX) 1.
3. Information on the Joint Ventures and Associated Enterprises of the Company
For details, please refer to Note (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:
125
Name of the joint venture or associated enterprise Relationship with the Company
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
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: RMB
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
Related-party Content Reporting Period Same period of last year
Information on related-party transactions of sales of goods and provision and reception of labor service
(2) Relating Commissioned Management/Contract and Entrusted Management/Outsourcing
List of commissioned management/contract of the Company:
Unit: RMB
Pricing basis of Revenue from
Name of the Start date of End date of
Name of the Type of the commissioned commissioned
entrusting commissioned commissioned
commissioned commissioned/co management management/cont
party/contract-out management/cont management/cont
party/contractor ntracted assets revenue/contract ract confirmed in
party ract ract
revenue the report period
Explanations on relating commissioned management/contract
List of entrusted management/outsourcing:
Unit: RMB
Name of the Start date of End date of Pricing basis of Trustee
Name of the Type of the
entrusting entrusted entrusted trustee fee/expense on
commissioned entrusted/outsour
party/contract-out management/outs management/outs fee/expense on outsourcing
party/contractor ced assets
party ourcing ourcing outsourcing confirmed in the
126
report period
Explanations on relating management/outsourcing
(3) Information of Related Lease
The Company serves as the lessor:
Unit: RMB
Rental income confirmed in the Rental income confirmed in the
Name of leasee Type of leased assets
Report period same period of last year
The Company serves as the leasee:
Unit: RMB
Rental expense confirmed in the Rental expense confirmed in the
Name of lessor Type of leased assets
report period same period of last year
Shenzhen Investment Holdings
Rental 179,350.20 100,715.80
Co., Ltd.
Explanations on related-party lease
(4) Related-party Guarantee
The Company serves as the guarantee
Unit: RMB
Secured party Amount Start date Maturity date Fulfill or not
The Company serves as the secured party
Unit: RMB
Guarantee Amount Start date Maturity date Fulfill or not
Explanations on related-party guarantee
(5) Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related party Amount Start date Maturity date notes
Borrowed
Loaned
(6) Related Party Asset Transfer and Debt Restructuring
Unit: RMB
Contents of related-party
Related party Reporting period Same period of last year
transactions
127
(7) Rewards for the Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Total rewards for the key management
2,288,910.00 2,238,223.00
personnel (personal income tax included)
(8) Other Related-party Transactions
In November 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 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) .
During the entrusted operating period in January-June of 2017, the situation of divestiture assets was as followed:
Item Amount
Operation revenue 1,973,303.06
Operation cost 1,249,979.39
Business tax and surcharges 214,085.32
Administrative expenses 347,769.19
Total profits 161,469.16
Income tax expense 40,367.29
Net profit 121,101.87
Notes: The Company didn’t pay FET Company for income received from asset operation during the Reporting
Period.
6. Receivables and Payables of Related Parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Name o f item Related-party
Book balance Bad debt provision Book balance Bad debt provision
Anhui Nanpeng
Other accounts
Papermaking Co., 8,586,848.00 8,586,848.00 8,899,040.00 8,899,040.00
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.
Other accounts Shenzhen 909,960.40 909,960.40 909,960.40 909,960.40
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receivable Guesthouse
Restaurant
(2) Payables
Unit: RMB
Name o f item Related-party Closing book balance Opening book balance
Shenzhen Jifa Warehouse Co.,
Other account payable 29,296,665.14 26,296,665.14
Ltd.
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. Share-based Payment
1. General Share-based Payment
□ Applicable √ Not applicable
2. Shared-based Payment Settled by Equity
□ Applicable √ Not applicable
3. Shared-based Payment Settled by Cash
□ Applicable √ Not applicable
4. Modification and Termination on Share-based Payment
Not applicable
129
5. Other
Not applicable
XIV. Commitments and Contingencies
1. Significant Commitments
Significant commitments at balance sheet date
Item Closing amount
Large amount contract of real estate development project signed but 604,286,106.13
derecognized in financial statements.
Total 604,286,106.13
2. Contingencies
(1) Significant Contingencies at Balance Sheet Date
① Pending Litigation
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 ②
Jiyong 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 September 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.
130
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 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 March 3, 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 September 11, 2013 Shenzhen Luohu District People's Court issued (2012)
SLFMECZ No. 1150 paper 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 March 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 is not found in the case so far, the Company withdrew bad debt provision for Shenzhen
Jiyong Properties & Resources Development Company’s transfer amount of Jin Lihua Commercial Plaza. In
August 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.
131
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.
The Company refused to accept Decision on Administrative Reconsider Fation 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)
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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”). In 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.
In 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.
On February 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 December 22, 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 complied 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 Aug. 15, 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 October 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
133
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 March 1, 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 July 31, 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 RMB2.21 million of
principal and interest thereon (such interest shall be counted from Dec. 22, 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 RMB31,551, 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 May 22, 2008, Shenzhen Office of China Orient Asset Management Corporation further
transferred the creditor’s right to Dongfu Asset Management Corporation. On Oct. 24, 2010, Dongfu Asset
Management Corporation again transferred such right to Shenzhen Hetaiheng Investment Co., Ltd., which had
been paid 700,000 during the execution of this paper.
In 2013, International Trade Center Company was under bankruptcy liquidation. On Dec. 17, 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 Apr. 1, 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 Mar. 31, 2015, RMB2,178,449.00 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
134
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 the Reporting Period, the Company estimated about
RMB834,999.50 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 Nov. 28, 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 planned to compensate RMB 6,009,255.74 based on (2015) SZFSZZ No.2837 paper of civil
judgment and confirmed the estimated debt of RMB 2,303,948.65 based on the 38.34% of the shares of
International Trade Center Company held by the Company. After the confirmed 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 fulfill the obligations
stated in (2015) SZFSZZ No. 2837 paper of civil judgment.
On Apr. 13, 2017, the Company received the (2016) Y0303 No. 11947-2 Notice of Execution issued by Luohu
District People's Court. On Apr. 18, 2017, the Company paid the principal and interest confirmed by (2015)
SZFSZZ No. 2837 Paper of Civil Judgment, RMB 5,917,084.99 in total (until Apr. 12, 2017) and paid RMB
56,985.42 of execution fees. On May 8, 2017, the Company received (2016) Y0303 No. 11947-2 Notice of
Settlement issued by Luohu District People's Court.
The Company refuses to accept the (2015) SZFSZ No. 2837 civil of judgment and has appealed to Guangdong
Higher Court. On May 10, 2017, the Company received (2017) YMS No. 3079 Notice of Civil Application Retrial
Case Acceptance issued by Guangdong Higher Court. Guangdong Higher Court has confirmed case filing
investigation.
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 December 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 Mar. 31, 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 Mar. 20, 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 taking effect 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 Management Co., Ltd Shenzhen Office (“Huarong Company”). Huarong Company
transferred the right to Huizhou Dongfang Lianhe Industry Co., Ltd. In December 2016, Huizhou Dongfang
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Lianhe Industry Co., Ltd. prosecuted the Company.
In 2013, International Trade Center Company applied for bankruptcy liquidation. On Dec. 17, 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 Apr. 1, 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 March 16, 2017.
In 2016, 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.
On Mar. 31, 2017, the Company reached mediation agreement with Huizhou Dongfang Lianhe Industry Co., Ltd
after Luohu District People's Court’s mediation. Luohu District People's Court issued (2016) Y0303MC No.
20377 Paper of Civil Mediation, and the Company agreed to reconcile with the other party about creditor's right,
RMB 4,776,023.00. The right was declared by Huizhou Dongfang Lianhe Industry Co., Ltd from the bankruptcy
administrator of International Trade Center Industry Development Co., Ltd. The other party gives up the creditor's
right for the other two shareholders of International Trade Center Industry Development Co., Ltd. At the same
time, it was confirmed that the Company had the right to ask the relevant obligor for the compensation after
completing the above payment. On Apr.13, 2017, the Company paid RMB 4,776,023.00 confirmed on the
mediation agreement to Huizhou Dongfang Lianhe Industry Co., Ltd.
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 June 30, 2015
to December 31, 2020, and the remained were RMB10,933,290.00 from July 1, 2015 to December 31, 2020.
B. To protect the land use right of Meilin Workshop and Comprehensive Building, on Dec. 19, 2012, the
Company applied to Shenzhen Intermediate People’s Court for sealing up the land property of original SFDZ No.
0103139 and No. 0103142 during the civil action process (as detailed in item 2, article XIV, section X the financial
report) with Shenzhen Meisi Industrial Co., Ltd. In accordance with civil procedure act, the Company provided
the property-international plaza (41 houses in total) as the financial guarantee of the case. The real estate is
8,342.24 m2 in total. By June 30, the book value is RMB 5,0343,600.
C. Guarantee for the owners: the Company and its subsidiaries are the purchasers providing mortgage guarantee
for the bank. As of June 30, 2016, the unsettle guarantee amount was RMB1410.41 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) If the Company Has No Significant Contingency to Disclose, Relevant Explanations Should Also Be Given
The Company has no significant contingency to disclose.
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3. Other
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusting Events
Unit: RMB
Effects on financial condition Reason for inability to estimate
Item Content
and operating result the influence number
2. Profit Distribution
Unit: RMB
Planning allocation of profits or dividends 0.00
Profits or dividends approved, reviewed and issue by the
0.00
declaration
3. Sales Return
Naught
4. Notes of Other Events after Balance Sheet Date
Naught
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retroactive Restatement
Unit: RMB
Name of each affected item of
Contents of the correction of
Procedures of processing statement during the period of Cumulative effects
accounting errors
comparison
(2) Prospective Application
Contents of the correction of accounting Reason for adopting method of prospective
Procedures of approval
errors application
137
2. Debt Restructuring
Not applicable
3. Assets Replacement
(1) Exchange of Non-monetary Assets
Not applicable
(2) Replacement of Other Assets
Not applicable
4. Annuity Plan
Not applicable
5. Discontinued Operation
Unit: RMB
Profits generated
from
discontinued
Income tax
Item Income Expense Total profits Net profits operation
expense
attributable to
owners’ of the
Company
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
138
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.
(2) The Financial Information of Reportable Segment
Unit: RMB
Property Catering Offset in
Item Real estate Transportation Others Undistributed
management service segment
Operation 1,092,505,000. 1,317,146,732.
180,892,643.85 27,861,938.33 12,007,374.58 3,879,774.70
revenue 97 43
Trading
revenues
475,630.46 2,559,280.03 86,153.85 531,927.37 3,718,838.17 -7,371,829.88
between
divisions
Sales expenses 11,018,608.50 -162,259.55 10,856,348.95
Investment
income to
associated 1,412,812.91 1,412,812.91
enterprises and
joint ventures
Asset
impairment -58,383,295.58 804,489.17 72,281.81 1,112.99 233.82 1,873,997.61 -55,631,180.18
loss
Depreciation
and
12,378,761.19 577,156.06 10,290,579.40 142,258.49 38,571.57 -44,062.02 23,383,264.69
amortization
charges
Total profits -451,050,932.9
899,860,545.61 15,146,282.40 2,189,869.79 627,248.59 1,206,070.64 467,979,084.11
(losses) 3
7,358,780,286. -2,003,885,952. 5,937,260,097.
Total assets 380,522,147.26 146,456,843.46 5,248,218.70 50,138,554.18
00 23 37
4,545,128,252. -1,702,347,677. 3,270,441,599.
Total liabilities 338,256,394.08 80,000,104.90 4,120,168.32 5,284,357.57
24 87 25
139
Long term
equity
investments in
38,164,704.03 38,164,704.03
associated
companies and
joint ventures
Increase of
non-current
assets except
2,666,529.84 7,893,461.69 15,174.48 40,494.95 5,969.00 10,621,629.96
long term
equity
investment
(3) If There Is No Reportable Segment, or the Total Amount of Assets and Liabilities of Each Part of Reportable
Segment Cannot Be Disclosed, the Relevant Reasons Should Be Given
Not applicable
(4) Other Notes
A. Income of foreign trade of production and labor service
Item Reporting Period Same period of last year
Real estate 1,092,505,000.97 139,265,963.27
Property management 180,892,643.85 185,145,485.77
Transportation 27,861,938.33 29,370,584.42
Catering service 12,007,374.58 11,632,035.39
Others 3,879,774.70 6,643,411.11
Total 1,317,146,732.43 372,057,479.96
B. Geography information
Distribution of foreign trade income:
Item Reporting Period Same period of last year
Mainland of China 1,317,146,732.43 371,895,633.55
Countries and regions outside the Chinese mainland 161,846.41
Total 1,317,146,732.43 372,057,479.96
Distribution of total non-current assets liabilities:
Item Closing balance Opening balance
Mainland of China 1,026,502,227.03 1,024,420,748.77
Countries and regions outside the Chinese mainland 1,501,006.19 1,905,293.14
Total 1,028,003,233.22 1,026,326,041.91
C. Customers information
The customers of the Group were rather dispersed; there was no individual transaction over10%.
140
7. Other Important Transactions and Events that 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
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
single amount for 96,647,8 96,647,8 96,647, 96,647,88
98.05% 100.00% 0.00 98.81% 100.00% 0.00
which bad debt 89.05 89.05 889.05 9.05
provision separately
accrued
Accounts receivable
withdrawal of bad
1,865,46 398,376. 1,467,089 1,111,4 556,593.4
debt provision of by 1.89% 21.36% 1.14% 50.08% 554,834.29
5.71 23 .48 27.71 2
credit risks
characteristics:
Accounts receivable
with insignificant
single amount for 54,380.3 54,380.3 54,380.
0.06% 100.00% 0.00 0.06% 54,380.35 100.00% 0.00
which bad debt 5 5 35
provision separately
accrued
98,567,7 97,100,6 1,467,089 97,813, 97,258,86
Total 100.00% 98.51% 100.00% 99.43% 554,834.29
35.11 45.63 .48 697.11 2.82
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
141
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable Closing balance
(classified by units) 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.
Shenzhen Tewei Industry Irrecoverable for long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. time
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
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 1,136,929.00 34,107.87 3.00%
Subtotal within 1 year 1,136,929.00 34,107.87 3.00%
3 to 4 years 728,536.71 364,268.36 50.00%
Total 1,865,465.71 398,376.23 21.36%
Notes:
For more details about the basis of the determination of the group, 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:
Naught
(2) Accounts Receivable Withdraw, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-158,217.19; the amount of the reversed
or collected part during the Reporting Period was of RMB000.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of unit Collected or reversed amount Way
Total 0.00 --
142
(3) Particulars about Accounts Receivable Actually Verified during the Reporting Period
Unit: RMB
Item Amount of verification
The verification of significant accounts receivable:
Unit: RMB
Whether the
Procedures of accounts are
Nature of other Amount of Reason for
Name of unit verification generated from
accounts receivable verification verification
performed related-party
transactions or not
Total -- 0.00 -- -- --
Notes of the verification of other accounts receivable:
No such cases in the Reporting Period.
(4) Accounts Receivable of the Top 5 of the Closing Balance Collected According to the Arrears Party
Name of the entity Closing balance Proportion (%) Closing balance
of bad debt
provision
Shenzhen Jiyong Properties & Resources 93,811,328.05 95.17% 93,811,328.05
Development Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.88% 2,836,561.00
RAINBOW DEPARTMENT STORE CO., LTD 728,536.71 0.74% 364,268.36
BCHO Shenzhen Branch 184,056.00 0.19% 5,521.68
Luo Junhong 179,337.00 0.18% 5,380.11
Total 97,739,818.76 99.16% 97,023,059.20
(5) Accounts Receivable Derecognized for the Transfer of Financial Assets
Naught
(6) Amount of Assets and Liabilities Generated from the Transfer of Accounts Receivable and Continued
Involvement
Naught
Other notes:
Naught
143
2. Other Accounts Receivable
(1) Other Accounts Receivable Classified by Category
Unit: RMB
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
significant single 135,774, 36,748,9 99,025,70 139,256 37,124,33 102,131,75
11.72% 27.07% 9.70% 26.66%
amount for which 604.07 01.50 2.57 ,094.17 9.53 4.64
bad debt provision
separately accrued
Other accounts
receivable withdrawn 1,294,3
1,020,52 8,830,18 1,011,692 8,866,593 1,285,509,0
bad debt provision 88.07% 0.87% 75,620. 90.14% 0.69%
3,021.87 0.35 ,841.52 .99 26.68
according to credit 67
risks characteristics
Other accounts
receivable with
insignificant single 2,415,32 2,415,32 2,415,3 2,415,326
0.21% 100.00% 0.16% 100.00%
amount for which 6.23 6.23 26.23 .23
bad debt provision
separately accrued
1,436,0
1,158,71 47,994,4 1,110,718 48,406,25 1,387,640,7
Total 100.00% 4.14% 47,041. 100.00% 3.37%
2,952.17 08.08 ,544.09 9.75 81.32
07
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period：
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Other accounts receivable
Other accounts
(unit） Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Shum Yip Properties Irrecoverable for long
106,639,786.57 7,614,084.00 7.14%
Development Co., Ltd. time
144
Anhui Nanpeng Irrecoverable for long
8,586,848.00 8,586,848.00 100.00%
Papermaking Co., Ltd. time
Advances the shopping Irrecoverable for
6,481,353.60 6,481,353.60 100.00%
mall gold business utilities unenforceability
Shanghai Yutong Real
estate development Co., 5,676,000.00 5,676,000.00 100.00% Judgments, irrecoverable
Ltd.
Wuyao Company 3,271,837.78 3,271,837.78 100.00% Liquidated
The project has been
Dameisha Tourism Center 2,576,445.69 2,576,445.69 100.00%
suspended
The project has been
Elevated Train Project 2,542,332.43 2,542,332.43 100.00%
suspended
Total 135,774,604.07 36,748,901.50 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 597,848.89 17,935.47 3.00%
Subtotal within 1 year 597,848.89 17,935.47 3.00%
1 to 2 years 43,300.00 4,330.00 10.00%
3 to 4 years 92,200.00 46,100.00 50.00%
Over 5 years 8,761,814.88 8,761,814.88 100.00%
Total 9,495,163.77 8,830,180.35 93.00%
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) The Bad-debt Provision Withdrew, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-99,659.67; the amount of the reversed or
collected part during the Reporting Period was of RMB000.
Of which the significant amount of the reversed or collected part during the Reporting Period:
Unit: RMB
145
Name of unit Collected or reversed amount Way
Total 0.00 --
The amount of bad debt provision was RMB-99,659.67; the decrease of amount of bad debt provision of foreign
currency of creditor's rights receivable after exchange was RMB312,192.00.
(3) Other Accounts Receivable Actually Verified during the Reporting Period
Unit: RMB
Item Amount of verification
The verification of significant other accounts receivable:
Unit: RMB
Whether the
Procedures of accounts are
Nature of other Amount of Reason for
Name of unit verification generated from
accounts receivable verification verification
performed related-party
transactions or not
Total -- 0.00 -- -- --
Notes of the verification of other accounts receivable:
No such cases in the Reporting Period.
(4) Other Accounts Receivable Classified by Account Nature
Unit: RMB
Nature of accounts Closing book balance Opening book balance
Margin 2,211,109.83 2,404,664.08
Pretty cash advance 146,489.00 85,500.00
Account receivable to subsidiary 1,117,721,123.44 1,394,246,757.56
Account receivable to affiliated company 10,334,112.25 10,646,304.25
Account receivable non-affiliated company 28,300,117.65 28,663,815.18
Total 1,158,712,952.17 1,436,047,041.07
(5) The Top Five Other Accounts Receivable Classified by Debtor at Period-end
Unit: RMB
Proportion to the
Account-age at the total of closing Closing balance of
Name of unit Nature of accounts Closing balance
end of the period balance of other bad-debt provision
accounts receivable
PRD Group Xuzhou
Accounts receivable 499,838,221.77 Within 5 years 43.14%
Dapeng Real Estate
146
Development Co., to subsidiary
Ltd.
PRD Yangzhou Real
Accounts receivable
Estate Development 409,589,836.60 Within 4 years 35.35%
to subsidiary
Co., Ltd.
Shum Yip Properties
Accounts receivable
Development Co., 106,639,786.57 Over 5 years 9.20% 7,614,084.00
to subsidiary
Ltd.
Shenzhen
Huangcheng Real Accounts receivable
83,705,906.77 Within 3 years 7.22%
Estate Management to subsidiary
Co., Ltd.
Shenzhen Guomao
Accounts receivable
Real Estate 13,314,618.21 Within 1 year 1.15%
to subsidiary
Management Co., Ltd.
Total -- 1,113,088,369.92 -- 96.06% 7,614,084.00
(6) Account Receivable Involving Government Subsidies
Unit: RMB
Name of the government Account-age at the end Estimated time, amount
Name of unit Closing balance
subsidy item of the period and basis of charge
Total -- 0.00 -- --
Naught
(7) Other Account Receivable Derecognized Due To the Transfer of Financial Assets
Naught
(8) Amount of Assets and Liabilities Generated from the Transfer of Other Accounts Receivable and Continued
Involvement
Naught
Other notes:
Naught
147
3. Long-term Equity Investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment to the
278,521,261.98 31,964,000.00 246,557,261.98 278,521,261.98 31,964,000.00 246,557,261.98
subsidiary
Investment to
joint ventures and
70,972,318.17 32,807,614.14 38,164,704.03 69,559,505.26 32,807,614.14 36,751,891.12
associated
enterprises
Total 349,493,580.15 64,771,614.14 284,721,966.01 348,080,767.24 64,771,614.14 283,309,153.10
(1) Investment to the Subsidiary
Unit: RMB
Withdrawn
Closing balance
impairment
Investee Opening balance Increase Decrease Closing balance of impairment
provision in the
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
148
Center Vehicles
Industry Co., Ltd.
SHENZHEN
INTERNATIONA
L TRADE
CENTER 20,000,000.00 20,000,000.00
PROPERTY
MANAGERMEN
T CO., LTD.
Shenzhen Shenxin
Motor Rent Co., 12,877,260.98 12,877,260.98
Ltd.
Shenzhen
International Trade
1,600,001.00 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 278,521,261.98 278,521,261.98 31,964,000.00
149
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Profit and Closing
loss on Adjustme Cash, balance
Additiona investmen nt of dividends Impairme for
The Opening Reduced Changes Closing
l ts other and nt impairme
investor balance investmen in other Others balance
investmen confirmed comprehe profits provision nt
ts equity
ts according nsive declared s provision
to equity income to issue s
law
I. Joint ventures
Shenzhen
Jifa
32,263,24 726,291.2 32,989,53
Warehous
0.61 5 1.86
e Co.,
Ltd.
Tianan
Internatio
nal
Building
Property 4,488,650 686,521.6 5,175,172
Managem .51 6 .17
ent
Company
of
Shenzhen
36,751,89 1,412,812 38,164,70
Subtotal
1.12 .91 4.03
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.
150
32,807,61 32,807,61 32,807,61
Subtotal
4.14 4.14 4.14
69,559,50 1,412,812 70,972,31 32,807,61
Total
5.26 .91 8.17 4.14
(3) Other Notes
Naught
4. Revenues and Operating Costs
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 940,995,898.09 178,852,582.93 32,157,014.88 7,594,195.01
Total 940,995,898.09 178,852,582.93 32,157,014.88 7,594,195.01
Other notes:
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
448,375,302.27
accounted by cost method
Long-term equity investment income
1,412,812.91 1,158,576.32
accounted by equity method
Total 449,788,115.18 1,158,576.32
6. Other
Not applicable
XVIII. Supplementary Materials
1. Items and Amounts of Extraordinary Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
151
Gains/losses on the disposal of non-current
10,256.83
assets
Reverse of bad debt provision of account
Refer to Section X Financial Report VII
receivable individually conducting 624,434.78
13. Events
impairment test
Mainly generated from litigation
Other non-operating income and expenses
-5,305,850.08 indemnity. Refer to Section X Financial
other than the above
Report XIV 2. Events for details.
Less: Income tax effects -1,204,864.87
Total -3,466,293.60 --
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 Net Equity and Earnings Per Share
EPS（Yuan/share）
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
14.25% 0.6114 0.6114
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
14.39% 0.6172 0.6172
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
(2) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□ Applicable √ Not applicable
152
(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
Not applicable
4. Other
Naught
153
