ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ANNUAL REPORT 2017
（Announcement No. 2018-4）
March 2018
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report, and shall be jointly and severally liable for any misrepresentations,
misleading statements or material omissions in this Report.
Chen Yugang, the Company’s legal representative, Wang Hangjun, the Company’s head of
financial affairs, and Shen Xueying, head of the Company’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual, accurate and complete.
All the Company’s Directors have attended the Board meeting for the review of this Report.
The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on
Information Disclosure by Industry—for Listed Companies Engaging in Real Estate, for
which it is required to include in this Report the changes in the country’s real estate policy
and the related financial policy, as well as the supply and demand changes in the real estate
sector.
The Board has considered and approved the following dividend payout proposal for common
shareholders for the Reporting Period: based on the total shares of 595,979,092, a cash
dividend of RMB3.00 (tax inclusive) per 10 shares would be distributed to all the common
shareholders, with no share dividend in any form.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Company Profile and Key Financial Information .............................................................. 5
Part III Business Summary ............................................................................................................. 10
Part IV Company Performance Discussion and Analysis ............................................................ 15
Part V Significant Events ................................................................................................................ 36
Part VI Share Changes and Shareholder Information ................................................................. 46
Part VII Preferred Shares ............................................................................................................... 56
Part VIII Directors, Supervisors, Senior Management and Staff................................................ 57
Part IX Corporate Governance ...................................................................................................... 65
Part X Corporate Bonds .................................................................................................................. 72
Part XI Financial Statements .......................................................................................................... 73
Part XII Documents Available for Reference .............................................................................. 234
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Definitions
Term Definition
ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
consolidated subsidiaries, except where the context otherwise requires
ShenZhen Properties & Resources Development (Group) Ltd. exclusive of
Parent, Parent Company
subsidiaries, except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co., Ltd.
SCIHC Shenzhen Construction Investment Holdings Corporation
SIM Shenzhen Investment Management Co., Ltd.
The “Reporting Period” or “Current Period” The period from January 1, 2017 to December 31, 2017
RMB, RMB’0,000 In RMB yuan, in RMB ten thousand yuan
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part II Company Profile and Key Financial Information
I Corporate Information
Stock name SZPRD A, SZPRD B Stock symbol 000011, 200011
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. 深物业集团
Company name in English (if
ShenZhen Properties & Resources Development (Group) Ltd.
any)
Abbr. (if any) SZPRD
Legal representative Chen Yugang
39/F and 42/F, International Trade Center, Renmin South Road, Shenzhen, Guangdong Province,
Registered address
P.R.China
Zip code 518014
39/F and 42/F, International Trade Center, Renmin South Road, Shenzhen, Guangdong Province,
Office address
P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email address 000011touzizhe@szwuye.com.cn
II Contact Information
Board Secretary Securities Representative
Name Fan Weiping
Qian Zhong, Ding Minghua
42/F, International Trade Center, Renmin 42/F, International Trade Center, Renmin
Address South Road, Shenzhen, Guangdong South Road, Shenzhen, Guangdong
Province, P.R.China Province, P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610 82212043 0755-82210610 82212043
Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
III Media for Information Disclosure and Place where this Report Is Kept
Newspapers designated by the Company for For A-stock investors: Securities Times
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
information disclosure For B-stock investors: Ta Kung Pao (HK)
Website designated by CSRC for publication of this
www.cninfo.com.cn
Report
Board Office, 42/F, International Trade Center, Renmin South Road,
Place where this Report is kept
Shenzhen, Guangdong Province, P.R.China
IV Registered Company Information and Alterations
Organization code No change
Change in main business scope of the
No change
Company since going public (if any)
Change of controlling shareholder (if any) No change
V Other Information
Independent certified public accounting (or “CPA”) firm hired by the Company:
Name Union Power CPAs Co., Ltd. (LLP)
2~9/F, Union Power Building, 169 Donghu Road, Wuchang District, Wuhan, Hubei Province,
Office address
P.R.China
Accountants writing signatures Tang Jiajun, Fang Zheng
Independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
Independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2017-over-2016
2017 2016 2015
change
Operating revenue (RMB) 2,904,690,690.53 2,059,204,077.18 41.06% 1,077,418,500.93
Net income attributable to
shareholders of the listed company 622,962,734.37 354,857,241.74 75.55% 156,819,966.71
(RMB)
Net income attributable to
shareholders of the listed company 559,625,850.90 357,519,344.14 56.53% 18,480,611.70
before nonrecurring gains and
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
losses (RMB)
Net cash flows from operating
-346,269,760.94 2,252,041,183.42 -115.38% 309,767,629.66
activities (RMB)
Basic earnings per share
1.0453 0.5954 75.56% 0.2631
(RMB/share)
Diluted earnings per share
1.0453 0.5954 75.56% 0.2631
(RMB/share)
Weighted average return on equity
26.64% 15.79% 10.85% 7.59%
(%)
Change of December
December 31, 2017 December 31, 2016 31, 2017 over December 31, 2015
December 31, 2016
Total assets (RMB) 5,393,331,548.87 6,654,356,144.10 -18.95% 4,379,763,486.10
Equity attributable to shareholders
2,921,693,794.08 2,410,434,735.75 21.21% 2,099,906,766.61
of the listed company (RMB)
VII Accounting Data Differences under Chinese Accounting Standards (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 1,038,683,462.42 278,463,270.01 1,335,581,077.17 251,962,880.93
Net income attributable to
301,597,814.36 62,757,956.07 211,810,876.32 46,796,087.62
shareholders of the listed company
Net income attributable to
shareholders of the listed company
301,333,394.74 66,488,669.29 211,069,206.23 -19,265,419.36
before nonrecurring gains and
losses
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Net cash flows from operating
-252,974,419.19 -247,563,269.34 145,754,841.16 8,513,086.43
activities
Indicate by tick mark whether any of the financial data in the table above or their summations differs materially from what have been
disclosed in the Company’s quarterly or semi-annual reports.
□ Yes √ No
IX Nonrecurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2017 2016 2015 Note
2017-over-2016
change is primarily
driven by income
Gains and losses on disposal of non-current
from disposal of two
assets (inclusive of offset allowance for 104,883,756.37 -182,886.11 -175,931.40
subsidiaries. For more,
asset impairments)
see “Part XI Financial
Statements”, VIII, 4
herein.
Government subsidies charged to current
profit and loss (exclusive of government
subsidies given in the Company’s ordinary
153,795.84
course of business at fixed quotas or
amounts as per government’s uniform
standards )
2017-over-2016
change is primarily
driven by
Gains and losses on contingencies that do
compensation for legal
not arise in the Company’s ordinary course -5,491,792.67 -4,366,315.82 168,991,971.80
matters. For more, see
of business
“Part XI Financial
Statements”, XIV, 2
herein.
Gains and losses on changes in fair value of
trading financial assets and liabilities &
investment income from disposal of trading
financial assets and liabilities and 5,709,098.20
available-for-sale financial assets (exclusive
of effective portion of hedges that arise in
the Company’s ordinary course of business)
Reversed portion of impairment allowance
8,374,421.28
for accounts receivable which are tested
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
individually for impairment
Non-operating income and expense other
-466,062.66 1,010,733.64 164,576.21
than above
Less: Income tax effects 35,589,017.57 -876,365.89 44,878,576.92
Total 63,336,883.47 -2,662,102.40 138,339,355.01 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Nonrecurring Gains and
Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part III Business Summary
I Main Business Scope of the Company in Reporting Period
Is the Company subject to any disclosure requirements for special industries?
Yes, because the Company engages in real estate.
(I) Main Business Overview
The Company has 10 functioning subsidiaries in total, including 4 real estate subsidiaries (Shenzhen Huangcheng Real Estate Co.,
Ltd., Dongguan ITC Changsheng Real Estate Development Co., Ltd., SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.
and SZPRD Yangzhou Real Estate Development Co., Ltd.), 2 property management subsidiaries (Shenzhen International Trade
Center Property Management Co., Ltd. and Shenzhen Huangcheng Property Management Co., Ltd.), 2 joint ventures (SZPRD Jifa
Warehouse Co., Ltd. and Shenzhen Tian’an International Building Property Management Co., Ltd., with the Company holding a 50%
stake in both), 1 catering subsidiary and 1 supervision subsidiary.
1. Real Estate
Real estate is the primary business of the Company, operated by 4 of its subsidiaries. The following 5 real estate development
projects are currently ongoing:
(1) Xuzhou Banshan Yujing: Won against competition on February 10, 2010, floor space 96,900 ㎡, plot ratio 0.8, total land price
RMB192 million, open for sale in December 2016.
(2) Dongguan Songhu Langyuan: Won on July 15, 2010, floor space 66,900 ㎡, plot ratio 2.2, total land price RMB214 million, open
for sale at the end of July 2015.
(3) Yangzhou Hupan Yujing: Won on January 28, 2011, floor space 66,600 ㎡, plot ratio 1.4, total land price RMB610 million, Phase
II currently open for sale.
(4) Shenzhen Qianhai Gangwan Garden: Obtained in Jul. 2011 in an asset swap promised in the share reform, floor space 19,900 ㎡,
plot ratio 3.2, total land price RMB270 million, open for sale in November 2015.
(5) Shenzhen Golden Collar’s Resort: Located at Huanggang Port, historical land, floor space 12,600 ㎡, plot ratio 10.5, total
construction area 130,000 ㎡.
The 5 ongoing projects above combined cover a floor space of 262,800 ㎡ and a total construction area of 743,100 ㎡, with the
plot-ratio-counted and available-for sale area reaching 560,200 ㎡.
2. Property Management
The Company currently has 2 property management subsidiaries, namely Shenzhen International Trade Center Property Management
Co., Ltd. and Shenzhen Huangcheng Property Management Co., Ltd.
3. Property Rental
The Company has now a total area of 81,406.36 ㎡ available for rental, with the letting rate up to 96%.
4. Warehousing Service
The warehousing service is mainly provided by SZPRD Jifa Warehouse Co., Ltd., a joint venture where the Company holds a 50%
stake, with the total area of the warehouses reaching 35,000 ㎡.
5. Catering Service
Operated by Shenzhen International Trade Center Catering Co., Ltd., with a total business area of 1,892 ㎡.
(II) Changes in Main Business
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
In order to optimize the Company’s business and asset structures, to respond to the call for integration of resources of municipal
state-owned taxi enterprises for better strategic, synergic development of state-owned enterprises, as well as to join the reform in the
industry, the Company is transferring its 100% stakes in subordinates Shenzhen International Trade Center Car Industry Co., Ltd. and
Shenzhen Shenxin Taxi Co., Ltd. to Shenzhen Bus Group Co., Ltd., at a price not lower than the assessed value of these two
subordinates (Shenzhen International Trade Center Car Industry Co., Ltd. assessed at RMB169.6307 million and Shenzhen Shenxin
Taxi Co., Ltd. at RMB19.9023 million, together, RMB189.533 million).
This equity transfer has been approved unanimously at the 17th Meeting of the Company’s 8th Board of Directors on June 30, 2017.
The Company’s independent directors have also issued their professional, independent opinion on this matter. This equity transfer
was later approved at the Company’s First Special Meeting of Shareholders in 2017, as well as approved by the Shenzhen branch of
the State-owned Assets Supervision and Administration Commission (SASAC Shenzhen) in a reply. The assessment report on these
two target companies has been filed with SASAC Shenzhen. Currently, this equity transfer is well underway.
(III) Development stage and cyclical characteristics of the industry to which the Company belongs during the reporting
period and industry status of the Company
1. Real estate
In terms of policies, after the 19th National Congress of the Communist Party of China, the idea that “housing is for living in, not for
speculation” has been imposed and put into effort in China’s real estate sector and a multi-tier housing supply system has taken shape,
which will gradually bring the sector into a “Bronze Age”. At the Central Economic Work Conference at the end of 2017, it is put
forward that China will move faster to put in place a housing system that ensures supply through multiple sources, provides housing
support through multiple channels and encourages both housing purchase and renting so that high-income people can purchase
commercial housing entirely on their own, middle-income people can get limited government support in housing purchase, and
low-income people can get access to indemnificatory housing. A series of long-standing corresponding policies are being planned,
which will produce profound effects on the future development of the real estate sector. A new housing concept will be promoted to
emphasize that housing is for living in and discourage use of housing as a means of investment. Stricter regulatory policies, measures
and enforcement could hit real estate sales again and gradually bring the sector into a “Bronze Age” characterized by smaller margins
per house sold. And real estate developers would have to focus on selling more houses.
In terms of industry structure, it is in the direction of acceleration development of industry leaders and greater differentiation of small
and medium-sized real estate enterprises. In 2017, sales thresholds for top 10 and top 100 of the industry jumped to RMB 140 billion
and RMB 15 billion respectively, and the number of housing enterprises with capitals over RMB 100 billion reached 17. The market
concentration of the top 100 housing enterprises reached 55%, while the market concentration of the top 10 housing enterprises was
as high as 24%, and may exceed 35% in 2018. All kinds of resources were gathered more quickly by real estate companies with big
brands. Competitive is becoming severe, and the market share of leading real estate enterprises is getting higher. The industry is
entering the an era of oligarch competition. At the same time, both real estate sales and land sales set new highs in 2017, and
purchasing power was overdrawn ahead of schedule. The supply of new houses in the next two or three years may increase
significantly. According to the National Bureau of Statistics, in 2017, the entire real estate industry sold an area of nearly 1.7 billion
square meters, sales exceeded RMB 13 trillion, and land transfer revenue was RMB 5.2 trillion, all of which hit a record high.
2. Property management
In the respect of corporate background, most property management companies were established by developers with an original
intention of supporting the residential development business. Recently, the potential of property management market was found by
developers, who separated the property management sector to focused on property management services.
As for the charging model, at present, the domestic mainstream is lump-sum charging, and about 95% of the property management
companies adopt this charging model, while the remaining 5% adopt a remuneration-based system. On the contrary, in developed
countries market represented by the United States, 70% use the remuneration-based system and the remaining 30% use the lump-sum
system. The main reason for this contrary is that a sound policy and legal mechanism has not yet formed in China to support
mandatory information disclosure under the remuneration-based system. In the long run, the proportion of remuneration-based
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
system will further increase, as the accounting is becoming more transparent and it is easier to promote the improvement of property
management services.
In terms of service provision, basic services are still the most important. From the income structure of the top 100 property
management companies, more than 80% of the revenue comes from basic services. Value-added services such as community services
and consulting services started relatively late. Although the profitability of value-added services is relatively strong, the proportion is
still relatively low.
When it comes to difficulties and challenges, the first problem is the shortage of talents. There are fewer professional managers
within the industry, and grassroots employees are more mobile. The second one is the lack of specialization. There is a lack of
unified national quality certification standards for professional services, and industry access is relatively easy. Although the number
of employees has increased rapidly, there is a shortage of professionals with sufficient professional skills. Finally, the market-based
pricing is slow. Although in 2015 the National Development and Reform Commission has clearly released the pricing of property
management services for non-guaranteed housing, property owners in communities, especially the ones in middle and low-end
communities, have a general resistance to price increases, which makes it difficult to implement market-oriented pricing.
3. Industry status
(1) Shenzhen Construction Association announced the list of “Double-First Civilized Construction Sites” for enterprises that carry
out safe production and civilized construction in the first half of 2017. The project of SZPRD-Golden Collar’s Resort was awarded
this honor with achievement of zero accidents due to safe production, neat and beautiful environment on site and environmental
protection, achieving the Company goal of "Be the First and the Excellent" set at the beginning of the year. As a key construction
project of the Company, the management of Golden Collar’s Resort takes safe and civilized construction as the top priority of the
project construction, and ensures safe production and civilized construction of the project by active deployment, real practice and
hard work, scientific management and many other measures.
(2) At the 2017 Shenzhen Real Estate Ceremony held by Shenzhen Real Estate Association, the top 20 companies in overall strength
of real estate development industry in Shenzhen were announced. The Group Company ranked 16 among more than 800 peers in the
city.
(3) In the “Guangdong Enterprises Top 500 in 2017, Excellent Independent Brand Launching Conference and Enterprise
Development Summit Forum” held by Guangdong Enterprise Federation and Guangdong Entrepreneurs Association, the Group
Company won the honor of “Guangdong Enterprises Top 500 in 2017” for the seventh consecutive year.
(4) International Trade Center Property Management Co., Ltd. is a wholly-owned subsidiary of the Company as well as the first
office building property management company in the country. In 2017, International Trade Center Property Management ranked the
36th of the “National Top 100”. So far, the service of International Trade Center covers an area of 13 million square meters, in which
park management service covers an area of 2.7 million square meters, and won the fourth place in the comprehensive ranking of
outstanding enterprises in property management of industrial parks in China in 2017.
II Material Change in Main Assets
1. Material Change in Main Assets
Main assets Reason for material change in the period
Up 5.38% from opening amount mainly because of gains on joint ventures recognized at
Equity assets
equity method
Down 60.31% from opening amount mainly because of sale of two taxi service
Property, plant and equipment
subsidiaries
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Down 100.00% from opening amount mainly because of sale of two taxi service
Intangible assets
subsidiaries
Up 46.60% from opening amount mainly because of increased accounts receivable by
Accounts receivable
property management subsidiaries from house owners
Down 76.65% from opening amount mainly because of reclassification of previously
Prepayments
prepaid taxes due to settlement on real estate project
Up 857.27% from opening amount mainly because of receivable for sale of stakes in two
Other receivables
taxi service subsidiaries
Down 28.43% from opening amount mainly because of settlement on real estate project
Inventories
in Reporting Period
Down 79.48% from opening amount mainly because of sale of two taxi service
Available-for-sale financial assets
subsidiaries
Down 76.83% from opening amount mainly because of settlement on real estate project
Advances from customers
in Reporting Period
Down 100.00% from opening amount mainly because of sale of two taxi service
Deferred income
subsidiaries
2. Main Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any disclosure requirements for special industries?
Yes. For the Company engages in real estate, it is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information
Disclosure by Industry—for Listed Companies Engaging in Real Estate.
In the recent years, the Company has maintained stability in its entire business operations, especially in its main business—real estate.
Its asset size, revenue and income have kept hitting new records, which is mainly attributed to the Company’s accurate market
positioning and unique core competitiveness advantages:
First, the Company has a stable operation team, which persists in the corporate development strategy, continuously making the 12th
Five-Year Strategic Plan and the 13th Five-Year Strategic Plan and pioneering with the strategic plans as the guideline and road map,
thus ensuring the continuity of the Company’s principal policy.
Second, the Company is currently adopting a mode of two levels, Group Headquarters - City Companies for controlling its property
development projects. At the headquarters level, the group mainly manages issues such as land investment, planned operation, key
marketing nodes, above-norm plan and design and cost control, while companies in the cities are engaged in project management,
on-site marketing, under-norm on-site design and cost control. Thus, the project companies are given sufficient independence. The
group focuses on systematic management, currently having established a standardized internal operation system such as Real Estate
Handbook for the comprehensive management policy for real estate, and Target Cost - Compliance Planning and Management
System for cost specific management. The Company’s property control mode is being improved and matured.
Third, the Company’s development areas are mainly in Shenzhen and its neighboring cities, thanks to the price advantage of land
obtainment costs and the rapid development of Shenzhen’s real estate market. The Company’s regional projects in Shenzhen will
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
bring itself with good economic profits.
Fourth, the Company has an advantage in brand and culture condensation. Over more than 30 years of development and
accumulation, the Company is highly recognized in the market by virtue of its brand value of “Shenzhen Properties & Resources”
that carries the spirit of international trade in the reform and opening up and comprehensive competence. The Company has won
multiple honor titles such as “Best 500 of China Real Estate Developers” and “Guangdong Top 500 Enterprises”. At the 2017
Shenzhen Real Estate Ceremony held by the Shenzhen Real Estate Association in July 2017, a list of “Shenzhen’s Top 20 Real Estate
Developers” was unveiled and the Company stood out among over 800 fellow companies across the city, ranking No. 16.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part IV Company Performance Discussion and Analysis
I Overview
After the 19th National Congress of the Communist Party of China, the idea that “housing is for living in, not for speculation” has
been imposed and put into effort in China’s real estate sector and a multi-tier housing supply system has taken shape, which will
gradually bring the sector into a “Bronze Age”. At the Central Economic Work Conference at the end of 2017, it is put forward that
China will move faster to put in place a housing system that ensures supply through multiple sources, provides housing support
through multiple channels and encourages both housing purchase and renting so that high-income people can purchase commercial
housing entirely on their own, middle-income people can get limited government support in housing purchase, and low-income
people can get access to indemnificatory housing. A series of long-standing corresponding policies are being planned, which will
produce profound effects on the future development of the real estate sector. A new housing concept will be promoted to emphasize
that housing is for living in and discourage use of housing as a means of investment. Stricter regulatory policies, measures and
enforcement could hit real estate sales again and gradually bring the sector into a “Bronze Age” characterized by smaller margins per
house sold. And real estate developers would have to focus on selling more houses.
(I) Highlights of Major Operating Divisions
1. Main business in real estate exceeded the annual budget target
All the real estate projects under sale, especially the projects in Xuzhou and Yangzhou, are closely following the market opportunities
and in good sales. During the year, all real estate projects are carried out as scheduled. The Yangzhou Hupan Yujing Project was
completed successfully and became the benchmark of high-end house communities in Yangzhou. The Xuzhou Banshan Yujing
Project closely focused on the core target of the second sales round of pure villa project and finally achieved a good performance of
RMB 421 million in revenue. In addition, the main structure construction of the Golden Collar’s Resort project was fully capped in
advance in mid-October, creating a quality project with the bay area concept.
2. Prominent development potential of property management companies
International Trade Center Property Management Co., Ltd. successfully signed agreements on Alibaba Xixi and Binjiang Park, and
the newly added projects such as Chongqing Jingdong Asia No. 1, achieving an annual operating revenue of approximately RMB 364
million. Huangcheng Property Management Co., Ltd successfully completed the management indexes in the responsibility
documents of project management, and keeps exploring and practicing the application of “Internet+” in property management
services to steadily promote the transformation and upgrading of modern service-oriented enterprise. The property leasing revenue
reached about RMB 66.83 million, and the housing rental rate reached 96%, exceeding the annual budget target.
3. Focus on promoting the integration of the Company subsidiary taxi company and Shenzhen Bus Group
In order to continuously optimize industrial layout and asset structure of the Company, actively respond to the call for resource
integration of municipal state-owned taxi enterprises and strengthening of strategic coordinated development of state-owned
enterprises, and follow the industry reform trend, the Company transferred 100% equity of its subsidiaries Shenzhen International
Trade Center Car Industry Co., Ltd. and Shenzhen Shenxin Taxi Co., Ltd. to Shenzhen Bus Group. Co., Ltd. at a price of not less than
RMB 189.53 million. The after-tax investment income generated after the equity transfer was approximately RMB 75 million. This
transfer has already been examined and passed in the Board of Directors held on June 30, 2017 and the general meeting of
shareholders held on July 17, 2017, and the transfer agreement was signed. On December 7, 2017, the Company issued the No.
2017-47 document “The Progress of the Transfer of 100% Equity of Two Subordinate Taxi Companies to Shenzhen Bus Group Co.,
Ltd.”, and all work is under progress.
(II) Progress of Key Projects in Construction
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
1. SZPRD-Golden Collar’s Resort (located in the Shenzhen city): The project has been orderly carried forward on the basis of the
schedule of construction contract. The construction of the major structure was accomplished 5 days in advance. All the major
structures had been capped by October 2017, and interior and exterior decoration is underway.
2. SZPRD-Qianhai Gangwan (located in the Shenzhen city): House owners started to move in in December 2016.
3. SZPRD-Songhu Langyuan (located in the Dongguan city): In the 1st half of Y2017, we mainly finished the construction of
landscape architectures and preliminary inspection. Move-in of the project was smoothly conducted on July 28, 2017.
4. SZPRD-Hupan Yujing (located in the Yangzhou city): The 2nd-phase project progressed well. Engineering related to water and
electricity, landscaping, and municipal administration were implemented on schedule. The second phase was completed and ready for
move-in in early November 2017.
5. SZPRD-Banshan Yujing (located in the Xuzhou city): We expanded yard for the 1st-phase project, and optimized and improved
landscape plants in the main landscape zone. The first phase saw smooth move-in in the first half of 2017.
More details are given as follows:
Space
Space sold
Sellable Opening settled in The
Floor Building in Current Status quo Time of
Project Location space sellable Current Company’s
space（m2）space（m2） Period of project completion
2
（m ） space（m2） Period stake (%)
（m2） 2
（m ）
Qianhai Nanshan 19,894 98,545 63,325 21,437 170 14,445 Completed October 100
Gangwan District in and 2016
Shenzhen commerciall
city y available
Yangzhou Weiyang 25,228 50,948 48,871 13,994 3,628 1,560 Completed June 2015 100
Hupan District in and
Yujing Phase Yangzhou commerciall
I city y available
Yangzhou Weiyang 41,331 74,267 73,019 47,400 22,644 ------- Completed November 100
Hupan District in and 2017
Yujing Phase Yangzhou commerciall
II city y available
Xuzhou Tongshan 65,332 100,774 85,653 60,038 43,490 62,959 Completed November 100
Banshan District in and 2016
Yujing Phase Xuzhou commerciall
I city y available
Xuzhou Tongshan 31,537 28,300 ------- ------- ------- ------- In December 100
Banshan District in preparation 2019
Yujing Phase Xuzhou for
II city construction
Songhu Dalang 66,882 207,459 140,911 21 ,074 364 120,122 Completed July 2017 100
Langyuan Town in and
Dongguan commerciall
city y available
16
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Golden Futian 12,598 182,829 ------- ------- ------- ------- Under March 2019 100
Collar’s District in construction
Resort Shenzhen
Apartment city
Building
Fuchang Futian 4,574 30,500 ------- ------- ------- ------- In June 2021 100
Phase II District in preparation
Shenzhen for
city construction
Huiyang Huiyang 17,700 61,950 ------- ------- ------- ------- In In 100
Danshui District in preparation preparation
Huizhou for for
city construction construction
Note: The space of the Yangzhou Hupan Yujing project includes the parking area.
(III) Properties for Rent
Type of property Space available for rent (m2) The Company’s stake (%) Annual revenue (RMB’0,000)
Offices 60579.89 100% 5533.04
Plants 7342.62 100% 647.30
Residential housing 3578.04 100% 152.22
Hotels 8322.56 100% 417.14
Complexes 1583.25 100% 85.00
Total 81406.36 100% 6834.7（tax inclusive）
The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
Companies Engaging in Real Estate.
See “Part IV Company Performance Discussion and Analysis”, “I Overview” herein.
II Analysis of Main Business
1. Summary
See “Part IV Company Performance Discussion and Analysis”, “I Overview” herein.
17
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
2. Revenue and Cost
(1) Breakdown of Operating Revenue
Unit: RMB
2017 2016
Percentage of total Percentage of total
Change
Revenue operating revenue Revenue operating revenue
(%) (%)
Total 2,904,690,690.53 100% 2,059,204,077.18 100% 41.06%
By operating division
Real estate
2,340,233,648.93 80.57% 1,512,673,490.89 73.46% 54.71%
development
Property rental 79,236,389.91 2.73% 75,269,443.10 3.66% 5.27%
Property
344,226,703.95 11.85% 322,241,780.02 15.65% 6.82%
management
Transport service 48,573,142.33 1.67% 56,896,623.70 2.76% -14.63%
Catering service 30,898,120.01 1.06% 31,177,527.67 1.51% -0.90%
Other 61,522,685.40 2.12% 60,945,211.80 2.96% 0.95%
By product category
Real estate
2,340,233,648.93 80.57% 1,512,673,490.89 73.46% 54.71%
development
Property rental 79,236,389.91 2.73% 75,269,443.10 3.66% 5.27%
Property
344,226,703.95 11.85% 322,241,780.02 15.65% 6.82%
management
Transport service 48,573,142.33 1.67% 56,896,623.70 2.76% -14.63%
Catering service 30,898,120.01 1.06% 31,177,527.67 1.51% -0.90%
Other 61,522,685.40 2.12% 60,945,211.80 2.96% 0.95%
By operating segment
Shenzhen city 1,227,064,851.69 42.24% 1,669,008,443.18 81.05% -26.48%
Dongguan city 1,036,257,611.02 35.68% 0.00 0.00% 100.00%
Other 641,368,227.82 22.08% 390,195,634.00 18.95% 64.37%
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Income
√ Applicable □ Not applicable
Is the Company subject to any disclosure requirements for special industries?
18
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Yes, because the Company engages in real estate.
Unit: RMB
YoY change in YoY change in
Operating Cost of operating Gross margin YoY change in
cost of operating gross margin
revenue revenue percentage operating revenue
revenue percentage
By operating division
Real estate
2,340,233,648.93 1,182,884,514.58 49.45% 54.71% 157.15% -20.14%
development
Property rental 344,226,703.95 335,567,577.69 2.52% 6.82% 7.79% -0.88%
By product category
Real estate
2,340,233,648.93 1,182,884,514.58 49.45% 54.71% 157.15% -20.14%
development
Property rental 344,226,703.95 335,567,577.69 2.52% 6.82% 7.79% -0.88%
Main business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2017 2016 Change
Unit sales ㎡ 73,537.76 147,757.95 -50.23%
Real estate
Output ㎡ 338,090.49 502,525.29 -32.72%
development
Inventory ㎡ 82,069.42 155,607.18 -47.26%
Reason for any over 30% YoY movements in the data above:
√ Applicable □ Not applicable
Unit sales, output and inventory decreased due to, among other factors, the real estate sector’s periodic changes and land reserve.
(4) Execution Progress of Major Signed Sales Contracts in Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Operating Revenue
By operating division
Unit: RMB
2017 2016
Operating division Cost of operating Percentage of total Cost of operating Percentage of total Change
revenue cost of operating revenue cost of operating
19
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
revenue (%) revenue (%)
Real estate
1,182,884,514.58 72.66% 459,994,703.42 52.72% 157.15%
development
Property rental 22,951,930.77 1.41% 16,467,645.80 1.89% 39.38%
Property
335,567,577.69 20.61% 311,316,025.73 35.68% 7.79%
management
Transport service 29,669,816.38 1.82% 33,739,246.05 3.87% -12.06%
Catering service 26,763,583.26 1.64% 26,572,645.61 3.05% 0.72%
Other 30,030,482.96 1.84% 24,443,956.82 2.80% 22.85%
Notes:
N/A.
(6) Change in Scope of Consolidated Financial Statements for Reporting Period
√ Yes □ No
The Company sold its 100% stakes in two of its subsidiaries during the Reporting Period, which caused change to the consolidation
scope. For details, see Part XI Financial Statements, VIII herein.
(7) Major Change in Business Scope or Product or Service Range in Reporting Period
□ Applicable √ Not applicable
(8) Main Customers and Suppliers
Main customers:
Total sales to top five customers (RMB) 86,199,701.23
Total sales to top five customers as a percentage of total
2.97%
sales of Reporting Period (%)
Total sales to related parties among top five customers as
0.00%
a percentage of total sales of Reporting Period (%)
Information about top five customers:
Sales revenue generated Percentage of total sales of Reporting
No. Customer
(RMB) Period (%)
1 Alibaba (China) Co., Ltd. 46,328,962.18 1.59%
2 Huawei Technologies Co., Ltd. 21,698,719.54 0.75%
ChongQing Municipal Public Security
3 6,346,517.60 0.22%
Bureau
4 Individual A 5,922,327.62 0.20%
5 Individual B 5,903,174.29 0.20%
20
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Total -- 86,199,701.23 2.97%
Other information about the main customers:
□ Applicable √ Not applicable
Main suppliers:
Total purchases from top five suppliers (RMB) 53,850,669.00
Total purchases from top five suppliers as a percentage of
70.80%
total purchases of Reporting Period (%)
Total purchases from related parties among top five
suppliers as a percentage of total purchases of Reporting 0.00%
Period (%)
Information about top five suppliers:
Percentage of total purchases of Reporting
No. Supplier Payment for purchases (RMB)
Period (%)
1 Hitachi Elevator (China) Co., Ltd. 39,800,000.00 52.32%
Yangzhou Yijiangxuan Landscape &
2 Classic Architecture Construction Co., 7,458,571.00 9.81%
Ltd.
Shenzhen Huanliang Environmental
3 3,035,520.00 3.99%
Engineering Co., Ltd.
Xuzhou Rongxiang Construction
4 1,787,578.00 2.35%
Engineering Co., Ltd.
5 Jiangsu Gangning Decoration Co., Ltd. 1,769,000.00 2.33%
Total -- 53,850,669.00 70.80%
Other information about the main suppliers:
□ Applicable √ Not applicable
3. Expense
Unit: RMB
2017 2016 Change Reason for material change
Decreases in commissions for sales
Selling expenses 31,179,193.33 47,306,701.76 -34.09%
agents and advertising expenditure
Decreased in capitalized employee
compensation and other expense,
Administrative expenses 137,028,655.69 99,528,601.79 37.68%
driven by fewer real estate projects
under construction
Finance costs -24,407,456.38 -22,407,438.75 8.93% Increase in interest revenue
Income tax expenses 203,784,886.40 136,350,415.59 49.46% Increase in income
21
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
4. Research and Development Expense
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2017 2016 Change
Subtotal of cash generated by
1,337,537,854.19 3,770,054,410.63 -64.52%
operating activities
Subtotal of cash used in
1,683,807,615.13 1,518,013,227.21 10.92%
operating activities
Net cash flows from operating
-346,269,760.94 2,252,041,183.42 -115.38%
activities
Subtotal of cash generated by
68,062,071.40 139,247.90 48,778.35%
investing activities
Subtotal of cash used in
3,721,869.38 4,654,746.40 -20.04%
investing activities
Net cash flows from investing
64,340,202.02 -4,515,498.50 -1,524.87%
activities
Subtotal of cash generated by
15,441,282.23 -100.00%
financing activities
Subtotal of cash used in
107,246,594.16 342,355,581.91 -68.67%
financing activities
Net cash flows from financing
-107,246,594.16 -326,914,299.68 -67.19%
activities
Net increase in cash and cash
-392,726,401.64 1,924,015,241.08 -120.41%
equivalents
Explanation of why any of the data above varies materially:
√ Applicable □ Not applicable
① Cash generated by and net cash flows from operating activities decreased from last year, primarily driven by the decrease in
house payments received.
② Cash generated by investing activities increased and net cash flows from investing activities changed from last year, primarily
driven by the sale of two taxi service subsidiaries in the Reporting Period.
③ Cash used in financing activities decreased and net cash flows from financing activities changed from last year, primarily driven
by loan repayment in large amount during last year.
④ Net increase in cash and cash equivalents decreased from last year, primarily driven by the decrease in house payments received.
Reason for any material difference between the net operating cash flows and the net income of the Reporting Period:
22
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
√ Applicable □ Not applicable
For the Reporting Period, the net cash flows from operating activities stood at RMB-346,269,760.94, representing a big difference
with the net income of RMB622,962,734.37, which was mainly because most of the sales and payment collection for the Qianhai
Gangwan and Songhu Langyuan real estate projects settled in the Reporting Period had occurred prior to the Reporting Period.
III Non-Core Business Analysis
√ Applicable □ Not applicable
Unit: RMB
Percentage of pretax
Amount Source/Reason Recurring or not
income (%)
Mostly income from
disposal of two subsidiaries. Not (except for share of
Investment income 106,874,030.32 12.93% See “Part XI Financial income of joint venture of
Statements”, VIII, 4 herein RMB1,978,501.84)
for more
Mostly reversed portion of
valuation allowance for
Banshan Yujing (located in
Xuzhou city) and Hupan
Asset impairments -56,696,940.86 -6.86% Not
Yujing (located in Yangzhou
city) real estate projects
resulted from rising real
estate prices
Non-operating
1,759,894.83 0.21% Mostly penalty income Not
income
Mostly compensation for
Non-operating legal matters. See “Part XI
7,717,750.16 0.93% Not
expense Financial Statements”, XIV,
2 herein for more
Mostly income from
Asset disposal
-11,772.11 0.00% disposal of miscellaneous Not
income
assets
IV Analysis of Assets and Liabilities
1. Material Change in Assets and Liabilities
Unit: RMB
23
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
December 31, 2017 December 31, 2016
Change in
Percentage of Percentage of
percentag Reason for material change
Value total assets Value total assets
e (%)
(%) (%)
Change in percentage was driven by
decreased total assets, and decrease in
2,477,028,815. 2,869,755,216.
Monetary assets 45.93% 43.13% 2.80% value was because of higher real estate
21 85
development expenditure and higher
taxes paid
Increase in property management
Accounts
46,272,600.86 0.86% 31,564,219.86 0.47% 0.39% subsidiary’s accounts receivable from
receivable
house owners
1,850,672,044. 2,585,658,521. Settlement of real estate project in
Inventories 34.31% 38.86% -4.55%
36 65 Reporting Period
Change in percentage was driven by
Investment 426,849,558.0
7.91% 427,800,613.03 6.43% 1.48% decreased total assets, and decrease in
property 5
value was because of depreciation
Long-term equity
38,730,392.96 0.72% 36,751,891.12 0.55% 0.17% increase in income from joint ventures
investments
Property, plant
29,346,901.33 0.54% 73,932,007.89 1.11% -0.57% Sale of two taxi service subsidiaries
and equipment
Reclassification of prepaid taxes due to
Prepayments 28,149,956.60 0.52% 120,532,275.38 1.81% -1.29%
settlement of real estate project
Other receivables 91,345,782.84 1.69% 9,542,311.30 0.14% 1.55% Sale of two taxi service subsidiaries
Intangible assets 85,487,580.95 1.28% -1.28% Sale of two taxi service subsidiaries
Advances from 516,984,711.1 2,231,321,227. Settlement of real estate project in
9.59% 33.53% -23.94%
customers 1 65 Reporting Period
Other non-current
54,543,253.27 1.01% 115,794,291.23 1.74% -0.73% Sale of two taxi service subsidiaries
liabilities
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gains/losses on
Cumulative fair Allowance for
fair value Purchased in Sold in
Opening value changes impairment for Closing
Item changes in Reporting Reporting
amount charged to Reporting amount
Reporting Period Period
equity Period
Period
24
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Financial assets
3.
Available-for-sa
3,003,714.14 587,495.06 3,591,209.20
le financial
assets
Subtotal of
3,003,714.14 587,495.06 3,591,209.20
financial assets
Total of above 3,003,714.14 587,495.06 3,591,209.20
Financial
0.00 0.00
liabilities
Material change in the measurement attributes of the main assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as of End of Reporting Period
(1) As at the end of the Reporting Period, the restricted L/G deposits used by the Company amounted to RMB12,402,160.00, which
were the cash deposits paid by the subsidiary of the Company-Dongguan International Trade Center Changsheng Property
Development Co., Ltd. by entrusting the commercial bank to issue the Commercial Housing Quality Guarantee Letter. Because the
subsidiary of the Company-Dongguan International Trade Center Changsheng Property Development Co., Ltd. was the real estate
development enterprise with provisional qualification, when handling the application of the pre-sale permit of the commercial
residential housing, it should submit the quality guarantee letter of the commercial residential housing after the liquidation situation
such as the enterprise bankruptcy and dissolution. The guarantee letter was the irrevocable commercial residential quality guarantee
letter, of which the guarantee period of RMB1,468,870.00 was from June 30, 2015 to December 31, 2020 and the guarantee period of
the remaining RMB10,933,290.00 was from July 1, 2015 to December 31, 2020.
(2) During the civil action between the Company and Shenzhen Meisi Industrial Co., Ltd. (see “Part XI Financial Statements”, XIV, 2
herein for more details), in order to protect the plants and multipurpose building in Meilin, as well as the related land use rights, in
dispute, the Company requested, on December 19, 2012, the Shenzhen Intermediate People’s Court to seal the land and the housing
properties on it stated on the original property ownership certificates SFDZ No. 0103139 and 0103142. The Company also provided,
as per the Civil Procedure Law, its own properties—a total of 41 houses in ITC Center—as a property preservation guarantee for this
case. These houses are of a combined floor space of 8,342.24 ㎡, with the total book value being RMB49.1379 million dated
December 31, 2017.
V Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
2. Material Equity Investments Made in Reporting Period
□ Applicable √ Not applicable
25
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
3. Material Non-Equity Investments Ongoing in Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Investmen Reason for
Total actual
t in Total earnings falling behind
Way of Investment investment Source of
property, Project as of end of schedule or
Project investme Industry in Reporting as of end of investment
plant and progress Reporting not achieving
nt Period Reporting capital
equipment Period projected
Period
or not earnings
Shenzhen
Under
Golden Built by
construction. Has not yet Has not yet
Collar’s the Self-raised
Not Real estate 18,019.00 43,858.00 Investment carried forwar carried forwar
Resort Compan funds
progress so d d
Apartment y
far: 41%
Building
Shenzhen
Built by
Qianhai Partially
the Self-raised Commercial
Gangwan Not Real estate 4,153.00 67,329.00 225,454.00 carried
Compan funds + loan ly available
real estate forward
y
project
Dongguan
Built by
Songhu Partially
the Self-raised Commercial
Langyuan Not Real estate 6,627.00 77,187.00 103,626.00 carried
Compan funds + loan ly available
real estate forward
y
project
Yangzhou
Built by
Hupan Partially
the Self-raised Commercial
Yujing real Not Real estate 5,601.00 98,737.00 32,699.00 carried
Compan funds ly available
estate forward
y
project
Phase I is
Xuzhou
Built by commerciall
Banshan Partially
the Self-raised y available
Yujing real Not Real estate 2,439.00 63,488.00 38,025.00 carried
Compan funds and Phase II
estate forward
y is being
project
planned
Total -- -- -- 36,839.00 350,599.00 -- -- 399,804.00 --
26
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Lo
Accumu
ss on Source
lated
Account fair Purchas Gain/los
Variety Symbol Initial fair Sold in of
Name of ing Opening value ed in s in Closing Account
value Reporti
of of investm measure carrying changes Reporti Reporti carrying investm
security changes ng
ment value in ng ng value ing title
security security ent cost charged Period ent
method Reporti Period Period
to
ng funds
equity
Period
Obtaine
Availabl
Gintian d in
Domesti 400016, Fair e-for-sal
A, 3,565,8 3,003,7 587,495 3,591,2 Gintian’
c/Foreig 42001 value e
Gintian 56.06 14.14 .06 09.20 s debt
n stock 6 method financia
B restructu
l asset
ring
3,565,8 3,003,7 587,495 3,591,2
Total -- 0.00 0.00 0.00 0.00 -- --
56.06 14.14 .06 09.20
Disclosure date of
announcement on Board’s
consent for securities
investment
Disclosure date of
announcement on
shareholders’ meeting’s
consent for securities
investment (if any)
(2) Investment in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period.
27
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
√ Applicable □ Not applicable
Net
Ratio of
profit
the net Execute
contribu Owners
profit Relation d as
ted to hip of
contribu ship schedul
the the
Transact ted by Related- between ed or Index to
Compan Effect equity
Transact ion the sale Pricing party the not; if disclose
Equity Date of y from on the involve Disclos
ion price of the principl transacti transacti not, d
sold sale the Compan d has ure date
party (RMB’0 equity e on or on party give informat
period-b y been all
,000) to the not and the reasons ion
egin to transferr
Compan Compan and
the date ed or
y’s total y measure
of sale not
profit s taken
(RMB’0
(%)
,000)
Announ
Shenzhe cement
n about
Internati 100%
100%
onal Equity
equity
Trade Transfer
of
Center of Two
Shenzhe
Car Taxi
n
Shenzhe Industry Subsidia
Internati Market No
n Bus 06/30/2 15,496. Co., 06/30/’2 ry of the
onal 145.34 11.27% valuatio No relations Yes Yes
Group 017 5 Ltd. 017 Compan
Trade n hip
Co., Ltd would y to
Center
be no Shenzhe
Car
longer n Bus
Industry
the Group
Co.,
subsidia Co., Ltd
Ltd.
ry of the (Annou
Compan ncement
y No.:
2017-30
28
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
)
disclose
d on
http//w
ww.cnin
fo.com.
cn
Announ
cement
about
100%
Equity
Transfer
of Two
Shenzhe Taxi
n Subsidia
Shenxin ry of the
100%
Taxi Compan
equity
Co., Ltd y to
Shenzhe of
Would Market No Shenzhe
n Bus Shenzhe 06/30/2 2,097.8 06/30/’2
96.26 be no 0.22% valuatio No relations Yes Yes n Bus
Group n 017 3 017
longer n hip Group
Co., Ltd Shenxin
the Co., Ltd
Taxi
subsidia (Annou
Co., Ltd
ry of the ncement
Compan No.:
y 2017-30
)
disclose
d on
http//w
ww.cnin
fo.com.
cn
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship Main
Company business Registered Operating Operating
with the Total assets Net assets Net profit
name scope capital revenues profit
Company
29
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Shenzhen
Development
Huangcheng 30,000,000.0 1,159,333,39 159,521,387. 15,539,634.8 14,238,096.0
Subsidiary and sales of 7,097,683.67
Real Estate 0 8.86 23 5 4
real estate
Co., Ltd.
SZPRD Real
Development
Estate 30,950,000.0 50,115,395.2 47,760,001.6
Subsidiary and sales of 1,264,783.43 -635,648.53 -676,765.47
Development 0 2 3
real estate
Co., Ltd.
Shenzhen
International
Management
Trade Center 20,000,000.0 439,823,254. 60,583,315.9 418,579,366. 35,536,888.9 24,540,325.5
Subsidiary and leasing
Property 0 89 2 91 0 4
of property
Management
Co., Ltd.
SZPRD
Yangzhou Development
50,000,000.0 919,693,759. 14,413,482.8
Real Estate Subsidiary and sales of 1,986,271.18 8,901,115.72 4,081,819.96
0 13 2
Development real estate
Co., Ltd.
SZPRD
Xuzhou
Development
Dapeng Real 50,000,000.0 480,513,622. -130,770,052 380,251,536. 50,460,310.6 50,460,310.6
Subsidiary and sales of
Estate 0 49 .64 20 4 4
real estate
Development
Co., Ltd.
Dongguan
ITC
Development
Changsheng 20,000,000.0 400,218,101. 181,973,505. 1,036,257,61 260,798,954. 195,423,454.
Subsidiary and sales of
Real Estate 0 72 18 1.02 31 16
real estate
Development
Co., Ltd.
Subsidiaries obtained or disposed in this Reporting Period
√ Applicable □ Not applicable
Influence on overall production and
Company Name Method
management and performance
Shenzhen International Trade Center Car
100% equity transfer of Shenzhen Industry Co., Ltd. would be no longer the
Shenzhen International Trade Center Car
International Trade Center Car Industry subsidiary of the Company. The transferred
Industry Co., Ltd.
Co., Ltd. to Shenzhen Bus Group Co., Ltd net income was RMB70.2236 million in
the Reporting Period.
Shenzhen Shenxin Taxi Co., Ltd 00% equity transfer of Shenzhen Shenxin Shenzhen Shenxin Taxi Co., Ltd Would be
30
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Taxi Co., Ltd to Shenzhen Bus Group Co., no longer the subsidiary of the Company.
Ltd The transferred net income was
RMB1,389,500 in the Reporting Period.
Description on the main holding and joint stock company
VIII Structured Bodies Controlled by the Company
√ Applicable □ Not applicable
For details, see IX 1. Equity interests in subsidiaries in Section XI Financial Report herein.
IX Outlook for the Future Development of the Company
(I) Analysis ondevelopment environment
The year 2018 is the key year for the Company to implement the "13th Five-Year Plan" strategic planningand make a full-scale plan.
From the end of the third quarter of 2016 to the present, the regulation and control of real estate market continued to escalate, and the
regulation and control gradually became effective. The overall market cooled down and kept stable. The report of the "19th National
Congress" pointed out that the positioning should adhere to the principle of “Houses are for living, but not for speculation”, and the
establishment of a housing system with multi-subject supply, multi-channel guarantees and co-development of renting and
purchasing should be accelerated, so that houses can be available to all people for living, setting the keynote for the real estate market
in the next five to ten years. Policies will be maintained steady and tight, and the market will gradually return to rationality. Under
the influence of this general direction, the profitability of real estate companies may be further narrowed, the difficulty of obtaining
land plots will continue to increase, and the market share of leading enterprises will increase rapidly. Housing enterprises, especially
small and medium-sized enterprises, will face even greater challenges.
According to the “13th Five-Year Plan” of Shenzhen City, the establishment of “10 cities” named innovative city, city of national
economic center, smart city, modern megacity, ecological and civilized city and international city will be deployed. The city GDP
will increase to RMB 2.6 trillion from RMB 1.75 trillion. The regional cooperation of Guangdong-Hong Kong-Macao Bay Area and
Pan-Pearl River Delta will be promoted, and the construction of Shenzhen-GuihuiheHeyuan and Shanwei "3+2" economic circles
will be speed up to give full play to the role of radiation ties in Shenzhen. With the construction of Shenzhen-Zhongshan Channel
and the opening of Pearl River Estuary Bay Area, the Shenzhen hinterland is further expanding from Dongguan and Huizhou to
Pan-PRD. According to the "Shenzhen Housing Construction Plan (2016-2020)", in the "13th Five-Year Plan" period, the city plans
to achieve an effective supply of 650,000 sets of new housing, among which, 300,000 sets of newly-built commercial housing will be
approved for pre-sale and cash sale, and 350,000 sets of guaranteed housing and talent housing will be supplied as possible.
The Shenzhen State-owned Assets Supervision and Administration Commission identified 2018 as the “year of SOE reforms”, and
fully implemented the “1+12” reform documents. Key difficulties of the reform focus on the specific implementation of “five
comprehensiveness”: 1. Comprehensively advance mixed ownership reforms, insisting that “no limit on level and change all that
need to be changed”, finish the three-year work plan for the reform of mixed ownership system, promote the reform of mixed
ownership enterprises in an all-round way by introduction of strategic investors, external mergers and acquisitions and employee
shareholdings, etc. to achieve full coverage of commercial enterprises reform within 3 years. 2. Comprehensively promote the reform
of market-based personnel selection and employment and explore the implementation of a professional manager system build a
national leading professional manager system within 3 to 5 years. 3. Comprehensively promote long-term incentive and restraint
reform, complete 8 to 9 municipal direct-managed enterprises throughout the year and achieve full coverage of long-term incentives
for direct-managed enterprises in 2019. 4. Comprehensively improve corporate governance in an all-round way. 5. Comprehensively
enhance the ability and level of capital management. In 2018, the total profit growth target of municipal state-owned economy is
expected to be more than 9%, which is higher than the city economic growth target of 8%. Industrial groups will be further
31
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
strengthened and enlarged, the implementation of the “1+N” plan for the integration and reorganization of state-owned assets will be
speed up, and the implementation of integrated plans for financial control platforms, “one district for multiple parks”, ground
transportation, factor transactions and environmental water services will be promoted. Meanwhile, capital operations will also be
increased and the "listed company +" strategy will be implemented.
(II) Industry structure and trends
For details, please refer to "Section III Overview of the Company business"
(III) Risks faced by the Company and countermeasures
(1) Risks in the market
In 2018, the national real estate policy will continue to follow the clear keynote of “Houses are for living, but not for speculation”,
and insist on unfettered control and unremitting efforts to maintain the continuity and stability of the control policies. Stabilizing the
real estate market and defusing the risk of bubbles will be the top priority, and the implementation and refinement of relevant
long-term mechanism policies will be further accelerated. With the landing of long-term mechanism of the property market in China,
the policy adjustments such as housing guarantees will be more permanent, and co-development of renting and purchasing will
become a new pattern in the new era. The size of new housing market will remain relatively high. The determination of the
government to stabilize prices will not change, and there will be follow-up control measures aiming at stabilizing prices, which may
include the existence of control policies on purchase and loan restrictions, land transfer and other aspects.
the Company paid close attention to market trends, studied control policies in depth, timely seized market opportunities and launched
the second phase of the Yangzhou project, the first phase of the Xuzhou project, etc.. Through the frequent promotion of the
Dongguan project and other measures, the real estate projects for sale are in smooth sales. the Company will continue to focus on
project management, further strengthen and improve real estate project operation and management capabilities, and grasp the
implementation of real estate project development plans in a timely manner to ensure that each of the under-construction real estate
development project of the Company meet the intended target successfully. At the same time, according to the actual situation of
different markets, the Company will timely adjust marketing strategies to promote project sales.
(2) Risks in the industry
With the increase of market concentration in first- and second-tier cities, regional competition will become more intense, and the
differentiation and transformation of housing enterprises will accelerate. Real estate companies will further close to leading
enterprises and the probability of mergers and acquisitions will continue to increase, presenting a situation of "the stronger becomes
more stronger". In the past year and a half, the property markets of most cities in the first and second tiers have tended to freeze
under stringent control. The real estate markets in first-tier such as Shenzhen have faced unprecedented tightening measures, and a
large number of real estate companies and speculative investment demand have been squeezed into third and fourth-tier cities. After
destocking in 2016 and rising prices in the third and fourth tier markets in 2017, basic housing needs and demands for improvement
and investment have been greatly relieved. The history of housing shortages has basically ended, and the “relatively weak”
investment in the real estate industry is declining. The external environment and industrial situation are complex and grim. Uncertain
factors have increased, the incremental market scale has further contracted, and market competition has intensified.
(3) Resources of the Company
The shortages of land reserves and development potential of the Company still remain. In the past two years, the fiery heat of the real
estate market was transmitted to the land market. The competition of residential land in first-tier cities and second-tier core cities was
fierce. The prices repeatedly hit new heights. The bidding costs and risks of real estate companies increased greatly, while the third-
and fourth-tier cities have faced insufficient demand for subsequent new purchases after market demand was digested to a certain
extent, and investment risks rose significantly. With current good sales of real estate projects for sale and sufficient capital, the
Company will increase its resource input in land investment. In addition to paying attention to land auction information in target
cities, it will also strengthen studies on cooperative development models such as mergers and acquisitions to supplement land
reserves.
In the face of a variety of factors such as the detailed control policies, intensified industry competition and lack of resources, the
32
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Company will deepen internal reforms, strengthen market operations, and take countermeasures in business development models and
internal management. Firstly, the Company will take project expansion as the most important. It will focus on the key development
projects such as the project in Dinghu District in Zhaoqing, renewal of plants in Huiyang and Meilin. The Company will continue to
expand the market share of intensive building clusters such as the construction and operation of industrial parks, urban complex
buildings and specialty towns, and try to get more land reserves. Secondly, the Company will get involved in the long-term rental
apartment market. It will cooperate with the renovation, transformation and transfer of stock assets such as the ONE39 Building,
Longhua Complex Building and Golden Collar’s Resort, try to start market-oriented operation projects and complete the organization,
brand introduction and formal operation of leasing company of the Group. Thirdly, the Company will expand various forms of
external cooperation. It will continue to strengthen in-depth cooperation with related companies such as state-funded companies in
Dinghu District and Etop to break the bottleneck of development and create more room for development.
(IV) Operating plan of the Company for 2018
In 2018, the Company will adhere to the development pace of steady progress, comprehend the development orientation of “Houses
are for living, but not for speculation”, continue to focus on the progress of real estate projects, promote project work according to
plans, and further optimize project development and industrial structure strengthen n the basis of strengthening management,
capital operation and system reform, so as to achieve objectives of all the real estate development projects of the Company. The
Company will formulate marketing programs for the market according to the actual conditions and development trends of different
cities. It will keep tracking and analyzing market reactions and changes to adjust sales strategies quickly and promote project sales.
Moreover, the Company will also actively develop a variety of cooperation ways for more quality project resources.
The Company will comprehensively improve management and control level, take into account the development of auxiliary
businesses such as property management and house leasing, continuously optimize the integration of internal management resources,
seek out expansions, reduce labor costs, increase work efficiency, and expand the profits of auxiliary businesses.
Key work in 2018:
1. Make every effort to ensure the completion of annual business objectives
In 2018, the Company will focus on decomposing budget targets and strengthening rigid constraint of budgets. It will increase
revenues and reduce expenditures, reduce costs and increase efficiency, strictly regulate and control various expenditures, and further
reduce various expenditures. It will make every effort to promote project marketing, implement the "2018 Sales Plan for the Group
Inventory of Real Estate Projects" and timely adjust marketing strategies in light of the actual market conditions. The Company will
also actively promote the development of stock projects to ensure the completion of projects as scheduled. It will adjust marketing
strategies in a timely manner in response to actual market conditions to minimize the negative impact of government policies, and
promote the sales of remaining houses while ensuring the maximization of the Company interests.
2. Focus on quality and efficiency, build a new pattern for development
The Company will concentrate superior forces and make great efforts to solve the problems of shortages of current land reserve and
sustainable development. It will continue to expand land resources for industrial parks, featured towns and other types of projects by
all means for more land reserves during the year. It will strictly follow up the requirements of the Investment Guidelines for Real
Estate Projects, focus on key development projects such as the project in Dinghu District in Zhaoqing, renewal of plants in Huiyang
and Meilin, and expand land resources for industrial parks, featured towns and other types of projects. Furthermore, the Company
will implement the keynote of "Houses are for living, but not for speculation" that set out in "The 19th National Congress", get
involved in long-term rental apartment market, and complete the renovation and marketing of ONE39 Building and Glory Complex
within the year.
3. Improve basic management and lay stress on safety production and petitions
The Company will continue to make improvement in corporate governance of listed companies, comprehensive budget management,
compensation management, financial management, post-investment evaluation, property management, benchmarking management,
corporate culture construction, party conduct and clean governance, audit rectification, comprehensive risk management and internal
control, etc.. It will complete safety management according to the plan, improve production safety management system, carry out
33
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
in-depth inspections of safety production and promote the resolution of major safety hazards. The Company will also lay stress on
petitions and visits to prevent problems in production safety or petitions in the year.
X Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
1. In this Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor Index to main inquiry information
Inquired of why cancelled related
04/16/2017 By phone Individual
transactions
Inquired of the progress of Front Sea
05/08/2017 By phone Individual
Harbor Garden Project
05/10/2017 By phone Individual Inquired of the resumption of SPG
Inquired of the progress of the
05/11/2017 By phone Individual
Company’s projects
05/11/2017 By phone Individual Inquired of the resumption of SPG
05/12/2017 By phone Individual Inquired of the resumption of SPG
Inquired of the survey of Xiong’an
05/15/2017 By phone Institution
special zone
05/15/2017 By phone Institution Inquired of the projects’ clearing
Inquired of the progress of the
05/16/2017 By phone Individual
Company’s projects
05/16/2017 By phone Individual Inquired of the resumption of SPG
Inquired of whether the Company went
05/18/2017 By phone Individual to Xiong’an new district to inspect
along with executive deputy mayor
Inquired of the income of semi-annual
05/22/2017 By phone Institution
report
Inquired of the ban lifting for restricted
05/23/2017 By phone Individual
shares of controlling shareholders
05/25/2017 By phone Individual Inquired of the resumption of SPG
Inquired of the time of dividend payout
05/26/2017 By phone Individual
for B share
Inquired of the progress of the
06/06/2017 By phone Individual
Company’s projects
06/13/2017 By phone Individual Inquired of the resumption of SPG
Inquired of the performance of the
06/14/2017 By phone Individual
Company
34
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Inquired of the share transfer of the
07/03/2017 By phone Individual
Company
Inquired of the earnings forecast of the
07/03/2017 By phone Individual
Company
Inquired of the performance in the first
07/11/2017 By phone Individual
half year of 2017
07/17/2017 By phone Individual Inquired of the resumption of SPG
Inquired of the progress of sales of taxi
07/18/2017 By phone Individual
company
07/20/2017 By phone Individual Inquired of the semi-annual performance
07/20/2017 By phone Individual Inquired of the semi-annual performance
Inquired of the future development
08/04/2017 By phone Individual
strategy
10/16/2017 By phone Individual Inquired of the performance growth
Inquired of the performance of the third
quarter and the annual performance,
10/26/2017 By phone Individual
and the participation of shareholders’
meeting
Inquired of the performance of the third
11/01/2017 By phone Individual
quarter and the annual performance
Inquired of the sales of projects, annual
11/03/2017 By phone Individual performance, and the change of Board
of Directors
Inquired of the ban lifting for restricted
11/16/2017 By phone Individual
shares
Inquired of the exemption of tender offer
11/23/2017 By phone Individual and the dramatic decrease of the
Company’s stock
Times of visit 32
Number of visiting institutions 3
Number of visiting individuals 29
Number of other visitors 0
Significant undisclosed information disclosed,
None
revealed or leaked
35
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part V Significant Events
I Profit Distribution and Converting Capital Reserve into Share Capital for Common
Shareholders
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy, for common shareholders in this
Reporting Period
□ Applicable √ Not applicable
Plans/proposals for profit distribution and converting capital reserve into share capital for common shareholders for the past three
years (including this Reporting Period):
Year Plans/proposals for profit distribution and converting capital reserve into share capital
2017 A cash dividend of RMB3.00 (tax included) per 10 shares and no share capital increase
from capital reserve
2016 A cash dividend of RMB1.80 (tax included) per 10 shares and no share capital increase
from capital reserve
2015 A cash dividend of RMB0.80 (tax included) per 10 shares and no share capital increase
from capital reserve
Cash dividend distribution of the Company to common shareholders over the past three years (including this Reporting Period)
Unit: RMB
Net profit Proportion in net
attributable to profit attributable to
common common
Cash dividends shareholders of the shareholders of the Ratio of cash
Cash dividends in
Year dividends in other
(tax included) Company in the Company in the other forms
forms
consolidated consolidated
statements for the statements for the
year year (%)
2017 178,793,727.60 622,962,734.37 28.70% 0.00 0.00%
2016 107,276,236.56 354,857,241.74 30.23% 0.00 0.00%
2015 47,678,327.36 156,819,966.71 30.40% 0.00 0.00%
Indicate by tick mark whether the Company made profit in this Reporting Period and the profit distributable to common shareholders
of the Company was positive, but it did not put forward a proposal for cash dividend distribution to its common shareholders
□ Applicable √ Not applicable
II Proposal for Profit Distribution and Converting Capital Reserve into Share Capital for this
Reporting Period
√ Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
36
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Dividend for every 10 shares (RMB) (tax included) 3.00
Total shares as the basis for the profit distribution 595,979,092.00
proposal (share)
Total cash dividends (RMB) (tax included) 178,793,727.60
Distributable profit (RMB) 1,911,318,586.37
Percentage of cash dividends in the total profit to 100%
be distributed (%)
Cash dividend policy
If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
According to the Company’s Articles of Association as well as the actual situation of its development and operation, the proposal of
the Company for 2017 annual profit distribution is as follows: Based on the total 595,979,092 shares of the Company as at
December 31, 2017, a cash dividend of RMB3.00 (tax included) will be distributed to all its shareholders for every 10 shares they
hold, with the total cash dividends to be distributed amounting to RMB178,793,727.60. And the retained profits will be carried over
for distribution in the future. No capital reserves will be turned into share capital for 2017.
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirer, as well
as the Company and Other Commitment Makers, Fulfilled in this Reporting Period or Ongoing at the
Period-end
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Where there had been an Earnings Forecast for an Asset or Project and this Reporting Period was still
within the Forecast Period, Explain why the Forecast has been Reached for this Reporting Period.
□Applicable √ Not applicable
IV Occupation of the Company’s Funds by the Controlling Shareholder or its Related Parties
for Non-operating Purposes
□ Applicable √ Not applicable
No such cases in this Reporting Period.
37
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) regarding the “Modified Auditor’s Report” Issued by the CPAs Firm for
this Reporting Period
□ Applicable √ Not applicable
VI YoY changes in accounting policies, estimations and methods
√ Applicable □ Not applicable
(1) Changes of accounting policy
On April 28, 2017, the Ministry of Finance issued the Circular on Issuing of Accounting Standards for Business Enterprises No. 42 -
Non-current Assets and Disposal Groups Held for Sale and Termination of Operations (hereinafter referred to as Accounting
Standards for Business Enterprises No. 42), which is required to be implemented from the date of May 28, 2017.
The Company implemented the above newly issued Accounting Standards for Business Enterprises No. 42 from the date of May 28,
2017, which resulted in the changes of corresponding accounting policy of the Company. The detailed contents were the change into
the list and presentation as gains and losses of continuing operation and gains and losses of determination operation separately in the
consolidated income statement and income statement.
Accounting Standards for Business Enterprises No. 42 stipulated that it was implemented from the date of May 28, 2017; the
non-current assets and disposal groups held for sale and termination of operation existed on the date of implementation need to be
treated with prospective application method. So, the aboved changes of accounting policy weren’t involved in retroactive adjustment
for comparative data, and they also didn’t have influences on the net profits of the Company in the Reporting Period.
According to the requirements of Notice of the Ministry of Finance on Revision and Issuance of Format of General Financial
Statements of Enterprises (CaiKuai [2017] No. 30), the Company listed and presented the item of “assets disposal income” separately
based on the item of “operating profit” in consolidated income statement and income statement. Part of gains and losses of
non-current assets disposal in “non-operating income” and “non-operating expenditure” were changed into being listed and disclosed
in “assets disposal income”; the Company retroactively restated the comparative statement correspondingly. The influences on
consolidated income statement and income statement of the Company are as follows:
Consolidated income statement Parent Company income statement
Income statement item affected
Effect for 2017 Effect for 2016 Effect for 2017 Effect for 2016
Assets disposal income -11,772.11 -182,886.11 -7,343.52
Non-operating income -23,539.00
Of which: gains of non-current assets disposal -23,539.00
Non-operating expenditure -35,311.11 -182,886.11 -7,343.52
Of which: losses of non-current assets disposal -35,311.11 -182,886.11 -7,343.52
Influences on income statement
(2) Changes of accounting estimation and accounting method
No such cases in this Reporting Period.
VII Retroactive Restatement due to Correction of Material Accounting Errors in this
Reporting Period
□ Applicable √ Not applicable
38
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
No such cases in this Reporting Period.
VIII YoY Changes in the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
For details of changes of the Company’s consolidated statement in the Reporting Period, see
VIII in the XI Financial Report herein.
IX Engagement and Disengagement of CPAs Firm
Current CPAs firm
Name of the domestic CPAs firm Union Power CPAs Co., Ltd. (LLP)
The Company’s payment for the domestic CPAs firm
62
(RMB’0,000)
Consecutive years of the audit service provided by the domestic
15
CPAs firm
Names of the certified public accountants from the domestic
Tang Jiajun, and Fang Zheng
CPAs firm
Consecutive years of the audit service provided by certified
2
public accountants from the domestic CPAs firm
Indicate by tick mark whether the CPAs firm was changed in this Reporting Period.
□ Yes √ No
CPAs firm, financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
In this Reporting Period, the Company engaged Union Power CPAs Co., Ltd. (LLP) for its internal control audit and paid an internal
control audit fee of RMB260,000 to it for the year.
X Possibility of Listing Suspension or Termination after Disclosure of this Report
□ Applicable √ Not applicable
XI Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XII Significant Litigations and Arbitrations
□ Applicable √ Not applicable
No such cases in this Reporting Period.
39
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XIV Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XV Implementation of any Equity Incentive Plan, Employee Stock Ownership Plan or other
Incentive Measures for Employees
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVI Significant Related-party Transactions
1. Related-party Transactions Relevant to Routine Operation
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Related Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.
√ Yes □ No
Receivable from related parties
Capital Opening Increase in Recovered Interest for Closing
Relationshi
Related occupation balance this amount in this balance
p with the Reason Interest rate
party for (RMB’0,00 Reporting this Reporting (RMB’0,000
Company
non-operati 0) Period Reporting Period )
40
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
ng purposes (RMB’0,00 Period (RMB’0,00
(yes/no) 0) (RMB’0,00 0)
0)
Anhui 30%
Business
Nanpeng equities
circulating No 890 77 813
Papermakin held by the
funds
g Co., Ltd. Company
Shenzhen
Wufang 26%
Business
Pottery & equities
circulating No 175 175
Porcelain held by the
funds
Industrial Company
Co., Ltd.
Controlled
by the
Shenzhen parent Intercourse
No 91 91 0
Guesthouse company of funds
the
Company
Influence on the Were all within the risks control of the Company and not influenced the operating results and the
Company’s operating financial conditions. The changes of Anhui Nanpeng Papermaking Co., Ltd. during this Reporting Period
results and financial were due to the translation of the foreign currency exchange rate. The changes of Shenzhen Guesthouse
condition during this Reporting Period were due to the changes of the scope of consolidation.
Payable to related parties
Repaid
Increase in Interest for
amount in
Relationship Opening this this Closing
this
Related party with the Reason balance Reporting Interest rate Reporting balance
Reporting
Company (RMB’0,000) Period Period (RMB’0,000)
Period
(RMB’0,000) (RMB’0,000)
(RMB’0,000)
Shenzhen Jifa
Intercourse
Warehouse Joint venture 2,630 2,630
funds
Co., Ltd.
Shenzhen
Tian’an
International Intercourse
Joint venture 521 521
Building funds
Property
Management
41
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Co., Ltd.
Influence on the Company’s
Were all within the risks control of the Company and not influenced the operating results and the
operating results and
financial conditions.
financial condition
5. Other Significant Related Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVII Significant Contracts and Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Entrusted Cash Management
(1) Entrusted Cash Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
42
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in this Reporting Period.
4. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVIII Social Responsibilities
1. Social Responsibilities Taken
Since its inception, SZPRD has been adhering to the concept of honesty, responsibility and win-win cooperation for the benefit of
society. The Company actively fulfills its social responsibilities and always takes repaying the society as an important development
concept. It actively fulfills its statutory social responsibilities and ethical social obligations, and unifies the realization of economic
and social benefits to create an excellent corporate image. The Company carried out the following activities to perform its social
responsibility in 2017:
I. Volunteer services
The Party Committee of the Group organized volunteers to participate in the activity of "Learn from Lei Feng" in Fengrun
Community. Volunteers used their professional expertise to provide community residents with free computer repairs and mobile
phone debugging as well as advice on preventing telecommunications and network fraud. The Group Company organized volunteers
to participate in the activities held by volunteer coalition of investment and control company to serve the China Talent Exchange
Conference. The Youth League Committee of the Group actively responded to the donation activity for poverty alleviation and
environmental protection which was initiated by the Youth League Committee of investment and control company, and launched the
"Warmth and Love Delivery" activity for clothing and book donation. Volunteers of this activity collected 336 pieces of clothing and
135 books to send to designated locations.
II. Free drive services
1. In order to carry forward the “Lei Feng Spirit”, practice the core values of socialism and show the charisma of the taxi industry, on
March 5th, the Love Team of International Trade Center Car Industry Co., Ltd. launched the event of “Learn from Lei Feng and
Deliver Love” at Shenzhen Gangda Hospital and provided free drives for the public. On the day of the event, the Love Team of
International Trade Center Car Industry Co., Ltd. organized 46 taxis to participate in the event to offer free drives for 180 persons
times. This event is part of the activities the Love Team of Shenzhen taxi industry in the "Month for Learning from Lei Feng". There
were a total of 36 Love Teams participated in the event. They provided free drives for citizens in need and won praises from all
walks of life. On June 7th and 8th, the Love Team of International Trade Center Car Industry Co., Ltd. organized 66 taxis to set up
pick-up points at Shenzhen Hongling Middle School and Shenzhen No. 2 Experimental School to provide free drive services for the
college entrance examination candidates for 6 consecutive years. Within two days, the Love Team offered a total of nearly 600 free
pick-ups. The Love in Examination Activity won praises from the majority of candidates and parents, and was reported by the “First
Scene” programme of the Shenzhen City Channel.
2. Shenzhen Shenxin Taxi Co., Ltd. actively organized Love Teams to carry out appointments for free drives to exams to deliver love
and give back to society, providing one-to-one reserved free drive services for students. During the college entrance examination
days, the Love Team of Shenzhen Shenxin Taxi Co., Ltd. offered a total of more than 50 pick-ups for students and won praises from
students and parents.
43
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
III. Blood donation
On the occasion of the 96th anniversary of the founding of Communist Party of China, on June 27th, the Party Committee of
International Trade Center Property Management Co., Ltd. held the blood donation activity name “Red Flag, Red Action” jointed
with Jiabei Station of NanhuSubdistrict Office in Luohu District and of the Bank of China International Trade Center Branch in
Shenzhen. A total of 83 caring people donated blood on the date and the amount of blood donated was up to a total of 29,600 ml.
Since 2011, the Party Committee of International Trade Center Property Management Co., Ltd.carried out the “Red Flag, Red
Action” public service activities to commemorate the Party’s birthday every year to let volunteers and party members play their
exemplary roles. The activities got positive responds from owners and tenants of the International Trade Center, as well as party
organizations and people from all walks of life in Commercial District of Renmin South Road and Jiabei Community. The number of
volunteers participating in the activity over the past years has reached 450, and the amount of blood donated was up to 150,000 ml.
IV. Caring for employees and money returned
The Group cares for employees. On January 6, the leaders of the group companies Chen Yugang, Wei Zhi and Liu Guangxin visited
five employees of three directly-affiliated enterprises who or whose family members suffered from illnesses. They sent them gifts
and financial aids to convey care from the Group and express New Year blessings. On August 12th, the Group subsidiary
International Trade Center Car Industry Co., Ltd. organized a “Summer Cooling” event and distributed nearly 2,000 cool drinks to
more than 900 taxi drivers of the Company, delivering caring to taxi drivers in hot summer.
Speaking of the money returned, at two o'clock in the morning on August 18th, Yang Huilong, the driver of the Yue B4C6R8 electric
vehicle of the Group subsidiary Shenxin Taxi Co., Ltd., was about to end his work day and preparing to recharge the car before the
shift. He had good work habits. During the inspection for safe driving, he suddenly found out that there were two black plastic bags
in the car trunk. There were 15 Apple 5S mobile phones and 1 Apple 4S mobile phone in the bag with an estimated value about RMB
40,000. He immediately called the staff on duty in the Company and quickly returned the mobile phones to the reception desk of the
Company. At the first time, the staff on-duty reported the lost and found information to the Information Center of Municipal
Communications Commission, and promptly contacted Mr. Chen, the lost owner, through the Information Center. Mr. Chen retrieved
the lost phones at 8:55 in the morning.
V. Social honor awarded
1. Shenzhen Construction Association announced the list of “Double-First Civilized Construction Sites” for enterprises that carry out
safe production and civilized construction in the first half of 2017. The project of SZPRD-Golden Collar’s Resort was awarded this
honor with achievement of zero accidents due to safe production, neat and beautiful environment on site and environmental
protection, achieving the Company goal of "Be the First and the Excellent" set at the beginning of the year. As a key construction
project of the Company, the management of Golden Collar’s Resort takes safe and civilized construction as the top priority of the
project construction, and ensures safe production and civilized construction of the project by active deployment, real practice and
hard work, scientific management and many other measures.
2. At the 2017 Shenzhen Real Estate Ceremony held by Shenzhen Real Estate Association, the top 20 companies in overall strength
of real estate development industry in Shenzhen were announced. The Group Company ranked 16 among more than 800 peers in the
city.
3. In the “Guangdong Enterprises Top 500 in 2017, Excellent Independent Brand Launching Conference and Enterprise Development
Summit Forum” held by Guangdong Enterprise Federation and Guangdong Entrepreneurs Association, the Group Company won the
honor of “Guangdong Enterprises Top 500 in 2017” for the seventh consecutive year.
2. Targeted Measures Taken to Help People Lift themselves out of Poverty
The Company didn’t take any targeted measures to help people lift themselves out of poverty during the Reporting Period, no
targeted poverty alleviation plan temporarily too.
44
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
3. Particulars Relevant to Environmental Protection
Is the Company or any of its subsidiaries a heavily polluting business identified by the environmental protection authorities of China?
No.
No such cases in the Reporting Period.
XIX Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
45
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Increase
Percentag New Bonus from Percentag
Number Other Subtotal Number
e (%) issues shares capital e (%)
reserve
352,511,2 352,511,2
59.15% 0 0 0 0 59.15%
I. Restricted shares 23 23
1. Shares held by State 0 0 0 0
2. Shares held by state-owned 350,579,9 350,579,9
58.82% 0 0 0 0 58.82%
corporations 43 43
3. Shares held by other
1,931,280 0.33% 1,931,280 0.33%
domestic investors
Among which: Shares held
1,894,980 0.32% 0 0 0 0 1,894,980 0.32%
by domestic corporations
Shares held by
36,300 0.01% 0 0 0 0 36,300 0.01%
domestic individuals
4. Shares held by other
0
foreign investors
243,467,8 243,467,8
40.85% 0 0 0 0 40.85%
II. Non-restricted shares 69 69
175,862,6 175,862,6
1. RMB common shares 29.51% 0 0 0 0 29.51%
26 26
2. Domestically listed foreign 67,605,24 67,605,24
11.34% 0 0 0 0 11.34%
shares 3 3
595,979,0 595,979,0
III. Total shares 100.00% 100.00%
92 92
Reasons for any share changes
□ Applicable √ Not applicable
Approval of share changes
46
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the Company and
other financial indexes over the prior year and the prior period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II Issuance and Listing of Securities
1. Securities (Excluding Preference Shares) Issued in this Reporting Period
□ Applicable √ Not applicable
2. Changes in Total Shares of the Company and the Shareholder Structure, as well as the Asset and
Liability Structures
□ Applicable √ Not applicable
3. Existing Employee-held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and their Shareholdings
Unit: share
Total number Total number of Total number of Total number of
of common common preference preference
47,368 47,237 0 0
shareholders at shareholders at shareholders with shareholders with
the period-end the prior resumed voting resumed voting
47
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
month-end rights at the rights at the prior
before the period-end (if any) month-end
disclosure of this (see note 8) before the
Report disclosure of this
Report (if any)
(see note 8)
5% or greater shareholders or the top 10 shareholders
Increase/d Pledged or frozen shares
Shareholdi
Total shares ecrease Number of Number of
Name of Nature of ng
held at the during this restricted non-restricted
shareholder shareholder percentage Status Number
period-end Reporting shares held shares held
(%)
Period
Shenzhen
Construction
State-owned
Investment 54.33% 323,796,324 293,997,370 29,798,954
corporation
Holdings
Corporation
Shenzhen
Investment State-owned
9.49% 56,582,573 56,582,573 0
Management corporation
Corporation
Domestic
Du Xinye 0.65% 3,880,800 0 3,880,800
individual
Domestic
Zhou Qun 0.52% 3,115,450 0 3,115,450
individual
Domestic
Du Yunfeng 0.39% 2,323,000 0 2,323,000
individual
Shenzhen
Duty-Free Domestic
Commodity non-state-owne 0.29% 1,730,300 1,730,300 0
Enterprises Co., d corporation
Ltd.
Domestic
Yang Yaochu 0.24% 1,410,620 0 1,410,620
individual
Domestic
Mai Furong 0.19% 1,130,500 0 1,130,500
individual
Domestic
Chen Liying 0.18% 1,102,051 0 1,102,051
individual
Domestic
Li Jing 0.16% 962,440 0 962,440
individual
48
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Strategic investors or general
corporations becoming top-ten
N/A
shareholders due to placing of new
shares (if any) (see Note 3)
The first and second principal shareholders of the Company are managed by Shenzhen
Related or acting-in-concert parties Investment Holding Corporation, the actual controlling shareholder of the Company. And the
among the shareholders above Company does not know whether there are related parties or acting-in-concert parties among the
other 8 shareholders.
Shareholdings of the top ten non-restricted shareholders
Number of non-restricted shares held at the Type of shares
Name of shareholder
period-end Type Number
Shenzhen Construction Investment RMB common
29,798,954 29,798,954
Holdings Corporation share
RMB common
Du Xinye 3,880,800 3,880,800
share
RMB common
Zhou Qun 3,115,450 3,115,450
share
RMB common
Du Yunfeng 2,323,000 2,323,000
share
Domestically
Yang Yaochu 1,410,620 listed foreign 1,410,620
share
Domestically
Mai Furong 1,130,500 listed foreign 1,130,500
share
Domestically
Chen Liying 1,102,051 listed foreign 1,102,051
share
Domestically
Li Jing 962,440 listed foreign 962,440
share
RMB common
Gao Yuanxiong 810,601 810,601
share
Domestically
Cao Yifan 760,000 listed foreign 760,000
share
Related or acting-in-concert parties The first principal shareholder of the Company is managed by Shenzhen Investment Holding
among the top ten non-restrictedly Corporation, the actual controlling shareholder of the Company. Other than that, the Company
tradable share holders and between the does not know whether there are related parties or acting-in-concert parties among the other 9
top ten non-restrictedly tradable share shareholders.
49
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
holders and the top ten shareholders
Top ten common shareholders
conducting securities margin trading N/A
(if any) (see Note 4)
Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common shareholders of the
Company conducted any promissory repo during this Reporting Period.
□ Yea √ No
No such cases in this Reporting Period.
2. Information about the Controlling Shareholder
Nature of the controlling shareholder: Controlled by the local government
Type of the controlling shareholder: Corporation
Legal
Name of controlling
representative/person Date of establishment Credibility code Main business scope
shareholder
in charge
To execute the investment,
operating and management
of the state-owned equities
of the wholly-owned,
controlling and
stock-participating
enterprises through the
methods such as the
restructuring integration,
capital operation and assets
disposal; to engage in the
Shenzhen Investment property development and
Wang Yongjian 10/13/2004 914403007675664218
Holdings Corporation operation business within
the scale of legally acquire
the land use right; to
execute the policy-based
and strategic investment
according to the
requirements of the
SASAC; to provide the
guarantee of the municipal
state-owned enterprises;
other business developed
with the authority from the
50
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Municipal State-owned
Assets Supervision and
Administration
Commission.
SZPRD A (000011) holds 380.38 million shares, accounting for 63.82%; Shenzhen Textile (000045)
holds 234.06 million shares, accounting for 46.21%; Shenzhen Shenbao A (000019) holds 72.25
Shareholdings of the million shares, accounting for 16.00%; SPG A (000029) holds 642.88 million shares, accounting
controlling shareholder in for 63.55%; Shenzhen Universe A (000023) holds 14.44 million shares, accounting for 10.41%;
other listed companies at Ping’an (601318) holds 962.72 million shares, accounting for 5.27%; Guosen Securities (002736)
home or abroad in this holds 2,749.52million shares, accounting for 33.53%; Guotai Jun’an (601211) holds 624.07
Reporting Period million shares, accounting for 8.18%; Telling Telecommunication (000829) holds 131,917,569
shares, accounting for 13.76%; Emap Information (834386) holds 42.00 million shares, accounting
for 60.00%; CCIC-Testing (836325) holds 20.00million shares, accounting for 40.00%.
Change of the controlling shareholder during this Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
3. Information about the Actual Controller
Nature of the actual controller: Local administrator for state-owned assets
Type of the actual controller: Corporation
Legal
Date of
Name of actual controller representative/per Credibility code Main business scope
establishment
son in charge
(I) Implementing and practicing
state, provincial and municipal
laws and regulations related to
management on state-owned
assets, drafting local laws,
regulations, and policies about
management on state-owned
Shenzhen Municipal assets, and organizing
State-owned Assets Supervision Peng Haibin N/A implementation activities upon
and Administration Commission approvals. Intending to draft
supervision systems and
methods about operational
state-owned assets, and
organizing implementation
activities.
(II) On the basis of authorization
from municipal government,
51
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
fulfilling duties of investors
according to laws and
regulations, and protecting the
rights and interests of investors
for state-owned assets according
to laws
(III) Taking charge of
Party-building work for
enterprises in its supervision and
organs entrusted
(IV) Undertaking the
supervision over state-owned
assets of municipal enterprises,
strengthening management on
state-owned assets, further
perfecting the management
mechanism for state-owned
assets with the unification of
power, obligation, and duties, as
well as the combination of
managing assets, people, and
affairs
(V) Being responsible for
hedging and appreciation of the
value of state-owned assets of
enterprises in its supervision,
establishing and perfecting the
index system for hedging and
appreciation of the value of
state-owned assets, setting out
assessment standards,
supervising on hedging and
appreciation of the value of
state-owned assets of enterprises
in its supervision by statistics,
audit, and check, and urging
enterprises in its supervision to
fulfill social duties
(VI) In charge of researching
and preparing the general
planning for transformation and
development of state-owned
enterprise in its supervision,
guiding and boosting
52
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
transformation and
re-organization of state-owned
enterprises, prompting the
construction of modern
enterprise system, carrying
forward operation of
state-owned capital, pushing the
strategic adjustment on
state-owned economy layout and
structure, and making
state-owned capital play the role
in significant industries and key
fields including national
security, national economy
lifeline, etc.
(VII) Directing and propelling
enterprises in its supervision to
perfect company governance
structure, intensifying
construction of Board and
Supervision Committees of
enterprises in its supervision,
and forming the governance
mechanism with specific duties,
coordinating operation, and
effective counterbalance
(VIII) Assuming the
management work of income
distribution for enterprises in its
supervision, and standardizing
the income distribution and
position-related consumption
over people in charge of
enterprises in its supervision
(IX) In line with rules of
municipal Party committee,
appointing and dismissing,
appraising, as well as, in
accordance with business
performance, rewarding and
punishing people in charge of
enterprises in its supervision by
applying legal procedures,
establishing the mechanism of
53
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
selecting and choosing
candidates meeting the
requirements of socialist market
economy system and modern
enterprise system, and perfecting
the incentive and control system
for operators
(X) Being responsible for
appointing or recommending
board directors, supervisors,
CFOs to enterprises in its
supervision, and auditing on
economic duties of people in
charge of enterprises in its
supervision according to rules
about management authorization
to people in charge of
enterprises
(XI) In charge of preparing the
draft of budgets and final
accounts of annual state-owned
capital of enterprises in its
supervision, including it to the
government budget system,
organizing the execution upon
approvals, and collecting
earnings of state-owned capital
handed in by enterprises in its
supervision
(XII) In charge of strategy
research, policy formulation,
and guidance for transformation,
development, and asset
management related to
collectively-owned enterprises
(XIII) Assuming other
assignments assigned by
municipal government and
superior departments
Shareholdings of the actual
controller in other listed Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen Zhenye,
companies at home or abroad in Shenzhen Tagen, Agricultural Products and SDGI.
this Reporting Period
Change of the actual controller during this Reporting Period
54
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
□ Applicable √ Not applicable
No such cases in this Reporting Period.
Ownership and control relations between the actual controller and the Company
State-owned Assets Supervision and
Administration Commission of Shenzhen
100%
Shenzhen Investment Holdings Co., Ltd
63.82%
The Company
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. 10% or Greater Corporate Shareholders
□ Applicable √ Not applicable
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
55
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
56
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part VIII Directors, Supervisors, Senior Management and Staff
I Changes in Shareholdings of Directors, Supervisors and Executive Officers
Increase Decrease
Opening Other Closing
in this in this
Office Incumben Starting Ending sharehold increase/d sharehold
Name Gender Age date of date of Reporting Reporting
title t/former tenure tenure ing ecrease ing
Period Period
(share) (share) (share)
(share) (share)
Chen Board Incumben 06/30/200
Male 61 0 0 0 0 0
Yugang Chairman t 6
Director Incumben 07/15/200
Wei Zhi Male 61 0 0 0 0 0
and GM t 8
Director,
Chairman
Liu Incumben 12/22/200
of the Male 60 0 0 0 0 0
Guangxin t 7
Labor
Union
Guo Director Incumben 06/30/200
Male 45 0 0 0 0 0
Liwei t 6
Director Incumben 12/01/200
Wen Li Female 49 0 0 0 0 0
t 7
Independ
Incumben 10/22/201
Li Jianxin ent Male 64 0 0 0 0 0
t 4
Director
Independ
Liu 10/22/201 02/09/201
ent Former Male 56 0 0 0 0 0
Ninghua 4 7
Director
Independ
Incumben 10/22/201
Zhang Qi ent Male 40 0 0 0 0 0
t 4
Director
Yuan Independ
Incumben 04/14/201
Hongchan ent Male 47 0 0 0 0 0
t 7
g Director
Chairman
Dai of the Incumben 06/03/201
Male 56 0 0 0 0 0
Xianhua Superviso t 1
ry Board
Wang Superviso Incumben Female 48 06/03/201 0 0 0 0 0
57
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Qiuping r t 1
Zhang Superviso Incumben 06/03/201
Male 43 0 0 0 0 0
Gejian r t 1
Zhang Superviso Incumben 10/22/201
Male 43 0 0 0 0 0
Manhua r t 4
Wang Superviso Incumben 06/03/201
Female 56 0 0 0 0 0
Xiuyan r t 1
Fan Incumben 02/08/201
Vice GM Male 53 0 0 0 0 0
Weiping t 2
Gong 06/01/201 04/14/201
CFO Former Male 50 0 0 0 0 0
Sixin 1 7
Wang Incumben 10/22/200
Vice GM Male 52 0 0 0 0 0
Hangjun t 7
Deng Incumben 04/28/201
CFO Male 40 0 0 0 0 0
Shaowu t 7
Total -- -- -- -- -- -- 0 0 0 0
II Changes in Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Independent
Liu Ninghua Left 02/09/2017 Personal reasons
Director
Nominated by Board of Directors, reviewed and
Independent Appointed and
Yuan Hongchang 04/14/2017 approved by Annual General Meeting of
Director dismissed
Shareholders for 2016
Gong Sixin Director, CFO Left 04/14/2017 Job transfer
Appointed and
Deng Shaowu CFO 04/28/2017 Nominated by Board of Directors
dismissed
III Brief Biographies
Professional backgrounds, main working experience and current responsibilities in the Company of the incumbent directors,
supervisors and executive officers
Members of the Board of Directors:
Mr. Chen Yugang, born in Sep. 1957, Postgraduate degree, is senior Political Worker. He gains rich experience in
government administrative management and enterprise management over 20 years. He held some important posts
in many municipal departments. He served as GM and Secretary of the CPC in Shenzhen Shenhua Group
Company. Also, he served as GM and Vice Secretary of the CPC in Shenzhen Xianke Enterprise Group, and
Deputy General Manager of Shenzhen Investment Holdings Co., Ltd. From May 2006, he has served as Secretary
of CPC in the Company. And in June 2006, he was elected as Chairman of the Board of the Company. Now he
58
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
acts as Secretary of CPC and Chairman of the Board in the Company.
Mr. Wei Zhi, born in Nov. 1957, Bachelor Degree, senior economist, holds the title of interpreter/translator. He
gains rich experience in enterprise management for over 30 years. He ever worked in Shenzhen International
Engineering Co., Ltd. as Deputy Manager of Overseas Department, in Shenzhen Zhongshen Overseas
Development Company as Manager of Labor Affairs Department and Deputy General Manager, in China
Shenzhen International Cooperation (Group) Co., Ltd. in Hong Kong Liyuan Company as Director and General
Manager; in Shenzhen Construction Investment Holdings Corporation as Deputy Manager of Overseas
Department, in Shenzhen Construction Investment Holdings Corporation as Deputy Manager of Contract
Department, in Shenzhen Tonge (Group) Co., Ltd. as Assistant General Manager and Deputy General Manager, in
Tonge Real Estates Development Company as Chairman of the Board and General Manager. Since October 2007,
he took the posts of the Vice Secretary of CPC and Standing Deputy General Manager in the Company. Since 20
Dec. 2007, he held the posts of Director, Vice Secretary of CPC and GM of the Company. Since 15 Jul. 2008 to
present, he acts as Vice Secretary of CPC, Director and GM of the Company.
Mr. Liu Guangxin, born in May 1958, College Diploma, is an Economist. He gains experience in enterprise
management over 20 years. Since May 1989, he held a job in the Company as Director of the Office in Properties
Engineering Development Company, General Manager of International Trade Center Industrial Development
Company, General Manager of International Trade Center Food Company, Deputy Director and Director of the
GM Office of the Company, as well as Manager of Operation and Management Department of the Company.
Since October 2007, he took the posts of Vice Secretary of CPC and Secretary of Discipline Inspection Committee
in the Company. Since November 2007, he was appointed as Chairman of the Labor Union of the Company. Now
he acts as Vice Secretary of CPC, Director, Secretary of Discipline Inspection Committee as well as Chairman of
Labor Union in the Company.
Mr. Deng Shaowu, was born in Dec. 1978, bachelor of economics, is a Chinese CPA and CTA. He worked on
finance management in many companies. He has been being the Director and CFO of Shenzhen Small & Medium
Enterprises Credit Financing Guarantee Group Co., Ltd from Sep. 2010, and the CFO of the Company from Apr.
2017.
Ms. Wen Li, born in Dec. 1969, Postgraduate Degree, Master Degree, is an Economist as well as Engineer. She
gains experience in enterprise management over 10 years. She ever worked in Shenzhen Fantasia Investment
Development as Assistant of Standing Deputy General Manger, Manager of Project Department, as well as
Manager of Market Planning Department. Since July 2005, she worked in Shenzhen Investment Holdings Co., Ltd.
She was ever appointed as Deputy Director of Investment Department of Shenzhen Investment Holdings Co., Ltd.
Now she acts as Minister of Department I of Shenzhen Investment Holdings Co., Ltd., GM of Shenzhen Bay
Technology Development Co., Ltd, Director of ShenZhen Special Economic Zone Real Estate & Properties
(Group) Co., Ltd and the Company.
Mr. Guo Liwei, born in Apr. 1973, Postgraduate Degree, is a master of Law. He once successively held the posts
in General Department of Ping An Insurance (Group) Company of China as legal consultant, and Shenzhen
Investment Management Corporation as Business Manager of Legal Affairs Department. Since October 2004, he
worked in Shenzhen Investment Holdings Co., Ltd as Deputy GM of Legal Affairs Department. He now acts as
Manager of the First Enterprise Management Department in Shenzhen Investment Holdings Co., Ltd. and Director
of the Company.
Independent Directors:
Mr. Li Jianxin, born in Sep. 1954, University Degree, is a member of Communist Party of China. He graduated
from Zhongnan University of Economics and Law in 1978; Once held the post in Wuhan Bureau of Statistics;
59
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Engaged in the scientific research in Hubei Academy of Social Sciences, Institute of Economics in 1980; Acted as
Deputy Director of Hubei Academy of Social Sciences， Institute of Agricultural Economics in 1988; Acted as
Standing Deputy Director, Associate Professor and Postgraduate Tutor in 1992; Transferred into Shenzhen
Newrand Securities Investment Consulting Co., Ltd. and acted as Marketing Manager in 1995; Transferred into
Shenzhen Academy of Social Sciences in 1996, and had served successively as Deputy Director, Director,
Associate Professor in Institute of Economics. He acted as Independent Director of Shenzhen Kondarl (Group)
Co., Ltd. from 2001 to 2006; Acted as Independent Director of Shenzhen Tagen Group Co., Ltd. from 2003 to
2009; Acted as Independent Director of Shenzhen Kondarl (Group) Co., Ltd. from 2009 to present. He recently
acted as Chairman and Associate Professor in Shenzhen Academy of Social Sciences, Center of Open Economics,
and the Independent Director of the Company.
Mr. Yuan Hongchang, born in Mar. 1971, Chinese nationality without overseas residency, is a undergraduate and
postgraduate of Tsinghua University, EMBA of Central Europe. He holds professional qualification of registered
land appraiser of China and registered real estate broker. He joined in Shenzhen WorldUnion Properties
Consultancy Incorporated in 2001, and acted as Vice GM in East China Region, GM of Shanghai WorldUnion,
GM in East China Region. Now he works as Vice GM and Secretary of Board in Shenzhen WorldUnion
Properties Consultancy Incorporated. Mr. Yuan Hongchang has attended the 80th phase of independent directors’
training class of Shenzhen Stock Exchange with qualification certificate of independent director.
Mr. Zhang Qi, born in Jan. 1978, graduated from the Accounting Faculty in Zhongnan University of Economics
and Law, professor, doctor, doctoral supervisor, superintendent of a governmental accounting institution, deputy
head of the accounting department, China’s leading talent in accounting honored by the Ministry of Finance,
registered accountant in China, Hubei New Century High Level Engineering Talent (level 2), correspondence
commentator in the National Natural Science Foundation of China, anonymous checker in the Magazine, vice chairman of the Government and NPO Accounting Specialized Committee in the
Accounting Society of China, director in the National Budget and Accounting Research Institute of China,
consultant expert in the Government Accounting Standards Committee under the Ministry of Finance, deputy head
of the accounting department and associate professor in Zhongnan University of Economics and Law from 2009
to 2012, and doctor and doctoral supervisor in that university and superintendent of a governmental accounting
institution from 2012 till now.
Members of the Supervisory Board:
Mr. Dai Xianhua, was born in April 1962, doctor degree, Party member of CPC. He gains adequate work
experience of over 20 years. He worked as a lecturer in School of Business and Economy of Zhongnan University
of Economics and Law from 1986 to 1989. He took posts of editor of department of theory and review, assistant
director, vice director in Shenzhen Economic Daily from 1992 to 1997; worked in Shenzhen State Assets
Administration Committee (hereinafter referred as “Shenzhen SAC”) as Vice Section Chief of Assets Department,
and Assets Management Department, Vice Director, investigator of Office, and investigator of Appraisal and
Distribution Department from 1997 to 2011. Now he is Chairman of the Supervisory Board of the Company.
Ms. Wang Xiuyan, born in Aug. 1962, MBA degree, is an accountant. From May 1997 to Sep. 2004, she worked
in Shenzhen Investment Management Corporation, once acted as secretary of the Supervisory Board Office,
Business Manager of Audit Department, Director of Women’s Labor Union, Senior Business Manager of Audit
Department and Supervision Department; from Oct. 2004 to Dec. 2007, she acted as manager of Supervision and
Inspection Department in Shenzhen Investment Holding Co., Ltd.; from Dec. 2007 to present, she is manager of
Audit Department (the Supervisory Board Office) in Shenzhen Investment Holding Co., Ltd. Currently, she is the
Deputy Head of the Audit & Risk Management Department (Office of the Supervisory Board) in Shenzhen
60
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Investment Holding Co., Ltd. as well as a supervisor of the Company.
Mr. Zhang Manhua, born in Feb. 1975, master’s degree, studied and taught in Central South University from
1992 to 2004; Business Manager, Senior Manager in the Investment Center of Konka Group and concurrently
worked as the Company Secretary for Shenzhen Jvlong Optoelectronic Co., Ltd. from 2004 to 2010; Vice
Investment Manager and Investment Manager in Shenchao Technological Investment Co., Ltd. from 2010 to 2013;
and Senior Supervisor in the Enterprise Department I in Shenzhen Investment Holding Co., Ltd. since 2013. He is
now the Vice Strategy & Development Manager of Shenzhen Investment Holdings Co., Ltd.
Ms. Wang Qiuping, born in Jan. 1970, Bachelor degree, is a senior economist. Since 1992, she worked for the
Company, she ever took post in GM office, Plan and Finance Department and Operation and Management
Department for comprehensive operation and management as well as planning and management as the
Development Manager. Now she is a supervisor of the Company and the Party Committee Secretary of Shenzhen
International Trade Center Property Management Co., Ltd.
Mr. Zhang Gejian, born in September 1975, Bachelor Degree, is an Accountant as well as Auditor. He was
engaged in internal auditing work in Audit Department of the Company since July 1997. Now he acts as
Supervisor of the Company and concurrently the Cost Control Manager.
Executive officers:
Mr. Wang Hangjun, born in Nov. 1966, graduated from Zhongnan University of Economics with a master degree
of economy. He is a senior auditor and has over 20 years corporate management experience. He ever took post of
Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; of Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; of Vice Minister, Minister of Supervision Department of
Shenzhen Investment and Management Company; of Minister of Audit and Inspection Department of Shenzhen
Investment Holding Co., Ltd. He has been Deputy GM of the Company since Oct. 2007.
Mr. Fan Weiping, born in Apr. 1965, graduated from Southwest University of Political Science & Law in 1988,
postgraduate degree. He used to work in Shenhua Group successively as the Chief of the Legal Affairs Section in
the Supervisory and Audit Department; the Vice Manager and Manager of the Legal Affairs Department; the GM
Assistant; and the Chief Legal Adviser. Since Jan. 2009, he has become the Company Secretary and the Chief
Legal Adviser for the Company. And he has been a Vice GM, the Company Secretary and the Chief Legal Adviser
for the Company since Feb. 2012.
Posts concurrently held in shareholding entities
√ Applicable □ Not applicable
Allowance from
Starting date of Ending date
Name Shareholding entity Post in shareholding entity the shareholding
tenure of tenure
entity (yes/no)
GM of Shenzhen Bay
Shenzhen Investment
Wen Li Technology Development 07/01/2005 Yes
Holdings Co., Ltd.
Co., Ltd
Vice GM of Shenzhen
Shenzhen Investment
Guo Liwei International Tendering Co., 10/01/2004 Yes
Holdings Co., Ltd.
Ltd
Shenzhen Investment
Wang Xiuyan Retired 10/01/2004 Yes
Holdings Co., Ltd.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Shenzhen Investment Deputy director of Capital
Zhang Manhua 03/01/2013 Yes
Holdings Co., Ltd. Operation Department
Posts held concurrently in other entities
√ Applicable □ Not applicable
Starting date of Ending date Allowance from
Name Other entity Post in other entity
tenure of tenure the entity (yes/no)
Shenzhen Academy of Social
Li Jianxin Research scholar 01/01/1996 Yes
Sciences
Zhongnan University of Economics Professor, doctoral
Zhang Qi 01/01/2012 Yes
and Law supervisor
Yuan Shenzhen WorldUnion Properties Vice Gm and
09/01/2013 Yes
Hongchang Consultancy Incorporated Secretary of Board
Punishments imposed in the recent three years by the securities regulators on the incumbent directors, supervisors and executive
officers as well as those who left in this Reporting Period
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Executive Officers
Decision-making procedure, determination basis and actual remuneration payment of directors, supervisors and executive officers
During this Reporting Period, the board and the management of the Company signed statement of operation objectives responsibility
for 2017, conducted appraisal system integrating operation indicators, classification indicators with management objectives. After the
end of this Reporting Period, assessment was implemented by the board. Remuneration of senior executives, according to
“Management Method of Annual salary System of Directors, Supervisors and Senior Executives”, adopted annual salary system, and
need to be implemented after assessment of the board.
Remuneration of directors, supervisors and executive officers in this Reporting Period
Unit: RMB'0,000
Remuneration
Total before-tax
from related
remuneration
Name Office title Gender Age Incumbent/former parties of the
from the
Company
Company
(yes/no)
Chen Yugang Board Chairman Male 61 Incumbent 44.03 No
Wei Zhi Director and GM Male 61 Incumbent 46.83 No
Director, Chairman of
Liu Guangxin Male 60 Incumbent 39.6 No
the Labor Union
Guo Liwei Director Male 45 Incumbent Yes
Wen Li Director Female 49 Incumbent Yes
Li Jianxin Independent Director Male 64 Incumbent 8 No
Liu Ninghua Independent Director Male 56 Former 2.6 No
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Zhang Qi Independent Director Male 40 Incumbent 8 No
Yuan Hongchang Independent Director Male 47 Incumbent 5.4 No
Chairman of the
Dai Xianhua Male 56 Incumbent 24 No
Supervisory Board
Wang Qiuping Supervisor Female 48 Incumbent 21.32 No
Zhang Gejian Supervisor Male 43 Incumbent 25.09 No
Zhang Manhua Supervisor Male 43 Incumbent Yes
Wang Xiuyan Supervisor Female 56 Incumbent Yes
Fan Weiping Vice GM Male 53 Incumbent 39.6 No
Gong Sixin CFO Male 50 Former 6 No
Wang Hangjun Vice GM Male 52 Incumbent 41 No
Total -- -- -- -- 311.47 --
Equity incentives for directors, supervisors and executive officers in this Reporting Period
□ Applicable √ Not applicable
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company 64
Number of in-service employees of main subsidiaries 5,132
Total number of in-service employees 5,196
Total number of employees with remuneration in this Reporting
5,196
Period
Number of retirees to whom the Company or its main
0
subsidiaries need to pay retirement pension
Functions
Function Number of employees
Production 3,626
Sales 202
Technical 867
Financial 177
Administrative 324
Total 5,196
Educational backgrounds
Educational background Number of employees
63
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
College and Technical secondary school graduates and above 2,395
High school graduates and below 2,801
Retired workers who need to pay retirement pension 0
Total 5,196
2. Employee Remuneration Policy
As required by corporate development strategy, based on actual situation to insist the internal industrialization and the marketization
among the industry of the remuneration principles of the Group and our Company adopts a differentiated management on different
industries to satisfy market demands by appropriately increasing the remuneration distance to better attract and retain talents. In HQ
and real estate enterprises, position type management idea is introduced, with all positions divided into Leader Group, Management
Group, Professional Group, Business Group and Service Group at different remuneration levels. Meanwhile, the remuneration for
professional technicians and that for medium-level management are kept overlapped. In this way, remuneration and career
development are provided at the same time. To some extent, the remuneration is a little bit favorable for professionals in real estate
development industry. With regard to other enterprises under the Company group, market reference is applied, but the key is to
appropriately adjust remuneration for key positions or some positions with lower remuneration than market level.
3. Employee Training Plans
In 2018, based on the overall requirements of the Company to establish a learning organization and carry out business development,
as well as the survey on training needs, the Company is going to reinforce training in specialized real estate courses, comprehensive
caliber, expertise knowledge and team building with an aim of further increasing the comprehensive knowledge and improving the
professional competence and skills of the team, seeking synchronized development between the Company and its employees and
achieving the sustainable and sound development of the Company. The major contents of the training will include specialized real
estate courses, comprehensive management capabilities, team development, professional skills, etc, with a combination of internal
and external training to be conducted in a planned way, and all the employees will attend the training in different groups throughout
the year.
4. Labor outsourcing
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part IX Corporate Governance
I Basic Situation of Corporate Governance
During this Reporting Period, in accordance with the requirement of the Company Law, Securities Law, Code of Corporate
Governance for Listed Companies in China and Stock Listing Rules of Shenzhen Stock Exchange as well as relevant laws and
statutes of CSRC, the Company continuously regulated and perfected corporate governance structure, established and perfected
internal management and control system and investigated in management activities of the Company, which promoted the Company’s
standard management level.
As to the end of this Reporting Period, the internal control system of the Company is complete, accomplished and defined that in
accordance with Company Law, Articles of Association and other laws and regulations as well as requirements of regulatory
documents. The convene of Shareholders’ General Meeting, the Board of Directors and Supervisory Board are strictly in accordance
with relevant rules and regulations, all directors and supervisors earnestly and diligently commit their responsibilities. Corporate
structure of the Company is complete and the operation of the Company is standardized.
With the goal of constructing a standard management structure, the Company has established related regulations on Shareholders’
Meeting, Board of Directors and Board of Supervisors, to ensure effective rights to decision-making, execution and supervision
respectively.
The Shareholders’ Meeting shall have the highest right to review and make decision on major issues, including the Company’s
business idea, investment plan, major trading items, capital changes, appointment and dismissal of directors and supervisors, within
the legal scope as defined by laws, regulations and rules like the Company Law and Articles of Corporation. The Company has
established and strictly followed various regulations, including Rules of Procedure of Shareholders’ Meeting, to ensure all
shareholders’ rights.
The Board of Directors has the right to business decision-making, responsible for the establishment and effective execution of the
Company’s internal control as well. Besides, it further sets up four special committees, namely, Strategic Development & Investment
Committee, Remuneration and Assessment Committee, Audit Committee and Nomination Committee, to improve its operating
efficiency based on corresponding work rules.
The Board of Supervisors acts as a supervising organ for the Company. It checks the Company’s finance, and supervises all jobs of
the Company’s directors and senior management. Also, it is responsible for and reports to the Shareholders’ Meeting.
The business management have the right to execution. They are appointed by the Board of Directors, and responsible for daily
running of business management and internal control.
Based on the principle of science, simplicity and efficiency, the Company has established such functional departments as Office for
Board of Directors, General Manager’s Office, Cost Control Department, Planning Design Department, Human Resources
Department, Development Management Department, Financial Management Department, Audit Department (Office for Board of
Supervisors), Law and Risk Control Department, Lease Center, and Party Work Office. These departments perform their specific
functions and carry out work in accordance with regulations on internal control, to ensure the Company’s healthy running.
The Company always pays attention to standardize the management for inside information, such as promulgating the Management
Rules for Insiders, making clear about the contents of inside information, making the scope of insiders and accountability system for
inside dealings. After reporting and submitting non-published information to the controlling shareholders, the Company all registered
the relevant information of insiders and then submitted to securities regulatory authorities, as well as strictly controlled the
transmission scope of inside information, further strengthened the security work of inside information. Upon Self-inspection, during
this Reporting Period, there were no particulars about insiders took advantages of inside information to purchase or sell shares of the
Company before the disclosure of major sensitive information that shall have an impact on the share price of the Company, nor any
investigation and punishment as well as rectification from the regulatory authority. From now on, the Company will continuously
strengthen to learn relevant rules and laws, scrupulously execute the Management Rules for Insider Information and Insiders,
65
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
standardize the corporate governance of the Company, do well the work of preventing inside dealings.
Any significant incompliance with the regulatory documents issued by the CSRC governing the governance of listed companies
□ Yes √ No
No such cases in this Reporting Period.
II Independence of Businesses, Personnel, Asset, Organizations and Finance which are
Separate from the Controlling Shareholder
The Company was independent from the controlling shareholder in business, personnel, assets, organization and finance to realize
that independent personnel, independent finance, complete assets, independent organization and independent business.
1. In aspect of business: The Company was independent from the controlling shareholder with independent and complete business
and independent operation capability. There was no business which was same or competitive with the controlling shareholder.
2. In aspect of personnel: The Company was complete independent from the controlling shareholder in terms of labor and personnel,
management on remuneration. All Senior Executives drew the remuneration from the Company, and none held a post concurrently in
shareholders’ company. Personnel of the Company are independent, all ones signed labor contract with the Company. The Company
was independent from the shareholders or other related parties in personnel management, social security, salary etc.
3. In aspect of asset: The Company’s assets were complete and independent, the property relationship was clear. There was no capital
occupation by controlling shareholder, and assets of the Company were completely independent from controlling shareholder.
4. In aspect of organization: The Company’s organization was independent, and the Company implemented rules and regulations as
well as responsibilities for all departments, formed independent responsibilities and rights, scientific and rational internal control
system. Independence of the Company on operation and management is free from impact from controlling shareholders and other
subordinated units. There were no controlling shareholders intervene organization of the Company.
5. In aspect of finance: The Company’s finance was independent with independent finance department. The Company established the
independent finance settling system and financial management system, had its own finance account and paid the tax in line with laws,
run finance decision-making independently.
The controlling shareholder of the Company performed normatively with no conduct that intervened with the operation
decision-making and operation activities directly or indirectly over the shareholders’ general meeting, however, the controlling
shareholder could influence on the significant decision-making through the shares holding.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Special Meetings of Shareholders Convened during this Reporting Period
1. Meetings of Shareholders Convened during this Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
The 1st Meeting of Announcement No.
Annual 63.85% 04/21/2017 04/21/2017
Shareholders in 2017 2017-19 on the
66
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Resolutions of the
2016 Annual
Meeting of
Shareholders
disclosed on
www.cninfo.com.cn,
Securities News and
Ta Kung
Announcement No.
2017-32 on the
Resolutions of The
st
The 1 Special 1st Special Meeting
Meeting of Special 63.82% 07/17/2017 07/17/2017 of Shareholders in
Shareholders in 2017 2017disclosed on
www.cninfo.com.cn,
Securities News and
Ta Kung
2. Special Meetings of Shareholders Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
V Performance of Independent Directors in this Reporting Period
1. Attendance of Independent Directors in Board Meetings and Meetings of Shareholders
Attendance of independent directors in Board meetings and Shareholders’ meeting
Absent for
Due presence Presence for Presence for
Presence for Absence for Board Presence for
for Board Board Board
Independent Board Board meetings for Shareholders’
meetings in meetings by meetings
director meetings on meetings two meeting
this Reporting telecommunica through a
site (times) (times) consecutive (times)
Period (times) tion (times) proxy (times)
times
Li Jianxin 7 1 6 0 0 No 2
Liu Ninghua 2 1 1 0 0 No 1
Zhang Qi 7 1 6 0 0 No 2
Yuan Hongchang 5 0 5 0 0 No 1
Notes to any absence for two consecutive times:
N/A
2. Objections Raised by Independent Directors on Issues of the Company
Indicate by tick mark whether any independent directors raised any objections on issues of the Company.
67
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
□ Yes √ No
No such cases in this Reporting Period.
3. Other Details about the Performance of Duties by Independent Directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the Company:
With attitude of credibility and diligence to the Company and all shareholders, independent directors was diligent and responsible,
reviewed all resolutions, and in line with their professional knowledge and capability, made independent, objective and fair judgment
away from influence from the Company and principal shareholders of the Company. Also, independent directors expressed
independent, objective and fair opinion on relevant events, which made practical efforts to safeguard interests of the Company and
minority shareholders.
VI Performance of Duties by Specialized Committees under the Board during this Reporting
Period
The four special committees under the board—the Strategic Development and Investment Committee, the Nomination Committee,
the Remuneration and Appraisal Committee and the Audit Committee—according to “Governance Principle of listed Company”,
“Articles of Association”, “and Rules of Procedure of the Board of Directors” and implementation rules of special committee,
earnestly performed their duties.
1. Duty Performance of Strategic Development and Investment Committee
During this Reporting Period, strategic development and investment committee paid attention to authorization of the board to project
development and financing, kept good contact with the management and had a good knowledge of matters within their power.
2. Duty Performance of Remuneration and Assessment Committee
During this Reporting Period, remuneration and assessment committee earnestly performed their duties, kept good contact with the
management and conducted several communication with the management for relevant matters.
3. Duty Performance of Audit Committee
During this Reporting Period, audit committee held on-the-spot working conference twice, listened to report of Union Power CPAs
Co., Ltd. (LLP) on audit work, deliberate preliminary audit opinion issued by Union Power CPAs Co., Ltd. (LLP) and proposed their
opinions about 2016 Financial Statement of the Company.
VII Performance of Duties by the Supervisory Board
Did the Supervisory Board find any risks to the Company during its supervision in this Reporting Period?
□ Yes √ No
The Supervisory Board raised no objections in this Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
VIII Appraisal and Incentive for Executive Officers
Within this Reporting Period, the annual operating target plan 2017 was went forth to the management team by the Board of
Directors, of which the Company adopted appraisal method by the score combination of operation index, category index and
administrative goal. At the end of the fiscal year, the Board of Directors examined the final score. For senior executives of the
Company, the Company adopted annual salary system in accordance with Management Measure for Annual Salary System of
Directors, Supervisors and Senior Executives, which shall be implemented after the Board of Directors completing fiscal
examination.
IX Internal Control
1. Serious Internal Control Defects Found in this Reporting Period
□ Yes √ No
2. Internal Control Self-evaluation Report
Disclosure date of the internal control
03/30/2018
self-evaluation report
Index to the disclosed internal control
http://www.cninfo.com.cn
self-evaluation report
Total assets of the evaluated entities as a
99.00%
percentage in the consolidated total assets
Operating revenues of the evaluated
entities as a percentage in the consolidated 100.00%
operating revenues
Defect identification standards
Type Financial-report related Non-financial-report related
Indications of the serious defect of the If the following situation occurred, could
financial report were including: (1) to be recognized as the serious defect and
execute the misstatement correction of the other situation should be recognized as
great defect occurred on the reported and the important defect or the common
disclosed financial report by the Company; defect respectively according to the
(2) the audit institution discovered the influenced degree: (1) the
current financial report had great defect decision-making of the significant events
Nature standard
while the internal control of the Company of the Company lacked of the collective
didn’t found out during the operating democratic decision-making process or
process; (3) the supervision of the the collective democratic
Company’s Audit and Risk Committee and decision-making process was not
the internal audit department on the internal normative; (2) the decision-making of
control was invalid; (4) there was significant the Company was not scientific or the
corrupt practice among the Directors, decision-making occurred serious
69
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Supervisors or Senior Management. mistakes; (3) the operating or the
Indications of the important defect of the decision-making seriously violated the
financial report were including: (1) didn’t national laws and regulations; (4) the
abide by the universally acknowledged Company occurred serious
accounting standard to choose and apply the environmental pollution or other events
accounting policies; (2) had not built up the seriously effected the social public
anti-fraud process and the control measures; interests; (5) the media frequently
(3) had not built up the corresponding occurred the significant negative news;
control mechanism or had not executed the (6) lacked of the important business
corresponding compensating control for the management system or the
accounting treatment which was systematicness of the system operation
unconventional or with special transaction; was invalid; (7) the constantly outflow of
(4) the control during the process of the the key management personnel and
financial report at the period-end existed one technical personnel of the Company; (8)
or multiple defects that could not guarantee the great or significant internal control
the compile of the financial report reach the defect of the Company could not be
goal of being real and complete. Common timely modified; (9) the Company
defect: refers to the other control defect constantly or plentifully occurred the
except for the above great defect and significant internal control defects; (10)
significant defect. other situation may lead the Company to
seriously deviate from the control target.
Serious defect: potential misstatement of the
operating income≥1 % of the operating
income of the consolidated statements of the
current year, potential misstatement of the
The Company compared the magnitude
total assets amount≥0.25% of the total
of the direct property losses amount with
amount of the consolidated statements of the
the net assets amount of the last fiscal
current year. Important defect: 0.75% of the
year to confirm the quantitative criteria
operating income of the consolidated
of the internal control as the follows:
statements of the current year
serious defect: amount of the direct
≤misstatement<1 % of the operating income
property losses≥0.5% of the net assets
Quantitative standard of the consolidated statements of the current
amount of the last fiscal year; important
year; 0.2% of the total amount of the
defect: 0.4% of the net assets amount of
consolidated statements of the current year
the last fiscal year ≤losses amount<0.5%
≤misstatement<0.25 of the total amount of
of the net assets amount of the last fiscal
the consolidated statements of the current
year; common defect: losses
year. Common defect: misstatement of the
amount<0.4% of the net assets amount of
operating income<0.75% of the operating
the last fiscal year
income of the consolidated statements of the
current year, misstatement of the total assets
amount<0.2 of the total assets amount of the
consolidated statements of the current year
Number of serious financial-report-related
0
defects
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Number of serious
0
non-financial-report-related defects
Number of important
0
financial-report-related defects
Number of important
0
non-financial-report-related defects
X Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the auditor’s report on internal control
We believe that Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Auditor’s report on internal control
Disclosed
disclosed or not
Disclosure date 03/30/2018
Index to the disclosed auditor’s
http://www.cninfo.com.cn
report on internal control
Type of the auditor’s opinion Standard unqualified opinion
Serious non-financial-report-related
None
defects
Indicate by tick mark whether any modified opinions are expressed by the CPAs firm in its auditor’s report on the Company’s
internal control.
□ Yes √ No
Indicate by tick mark whether the auditor’s report on the Company’s internal control issued by the CPAs firm is consistent with the
self-evaluation report of the Board.
√ Yes □ No
71
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part X Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full?
No.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part XI Financial Statements
I Independent Auditor’s Report
Type of auditor’s opinion Standard unqualified opinion
Date of signing the auditor’s report 03/30/2018
Name of the auditor Union Power CPAs Co., Ltd. (LLP)
No. of the auditor’s report Union Power Audit Report (2018) No. 010302
Name of CPA Tang Jiajun, Fang Zheng
Text of the Auditor’s Report
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
1. Opinion
We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Ltd. (the
“Company”), which comprise the consolidated and parent company balance sheets as of December 31, 2017, the
consolidated and parent company statements of income, cash flows and changes in owners’ equity for the year
then ended, as well as the notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated
and parent company financial position of the Company at December 31, 2017, and the consolidated and parent
company operating results and cash flows for the year then ended, in conformity with the Chinese Accounting
Standards (CAS).
2. Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance with
the said Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
3. Key audit items
Key audit items are the items that are considered most important for the audit of the current financial statements
based on our professional judgment. The response to these items is based on the audit of the financial statements
as a whole and the formation of audit opinions. We do not comment on these items separately.
I. Provision of land value-added tax
Refer to the financial statements notes “(VI) Taxes 1. Major taxes and tax rates” and “(VII) 20. Taxes and
expenses payable Note 2”.
One of the major taxes of SZPRD is the land value-added tax. Real estate projects sold and developed by SZPRD
are required to pay the land value-added tax at an ultra progressive tax rate of 30% to 60% for land appreciation.
At the end of each financial reporting period, the management needs to estimate the amount of land value-added
tax for the real estate projects that have already carried over revenue but does not meet the land value-added tax
73
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
liquidation conditions. The main considerations for the estimation include stipulations and explanations of
relevant tax laws and regulations, deductible land costs, real estate development costs, interest costs and
development costs, etc. In the liquidation of the land value-added tax, the actual tax payable may be different from
the amount estimated by SZPRD.
Due to the importance of the provision of land value-added tax to the consolidated financial statements, and the
considerations of relevant tax laws, regulations and practices, etc. included into the judgments of estimate by the
management, we identify the land value-added tax of SZPRD as a key audit item.
The following procedures are included in the audit procedures related to the evaluation of provision of land
value-added tax:
(1) Evaluate the design rationality and the effectiveness of test run of key internal controls related to land
value-added tax which are carried out by the management.
(2) Evaluate the assumptions and judgments relied on by the management to estimate deductible items according
to our experience and understanding of the corresponding practical operations of local taxation authorities.
(3) Recalculate the land value-added tax provided by SZPRD during the reporting period and compare our
calculation results with the amount recorded by SZPRD.
4. Other Information
The Company’s management is responsible for the other information. The other information comprises all of the
information included in the Company’s 2017 Annual Report other than the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
5. Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair view in
accordance with CAS, and for designing, implementing and maintaining such internal control as the management
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the management either intends to liquidate the Company or to cease operations,
or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
6. Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by CAS to draw users’ attention in our auditor’s report to the related
disclosures in the financial statements or. if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements. We are responsible for the
direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of the audit and
significant audit findings, including any noteworthy deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Union Power CPAs Co., Ltd. (LLP) Chinese CPA
(Engagement Partner)
Chinese CPA
Wu Han China March 30, 2018
75
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
II Financial Statements
Currency unit for the statements in the notes to the financial statements: RMB
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
December 31, 2017
Unit: RMB
Item December 31, 2017 December 31, 2016
Current assets:
Monetary assets 2,477,028,815.21 2,869,755,216.85
Settlement reserve
Interbank loans granted
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 46,272,600.86 31,564,219.86
Prepayments 28,149,956.60 120,532,275.38
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Interest receivable
Dividends receivable
Other receivables 91,345,782.84 9,542,311.30
Financial assets purchased under
resale agreements
Inventories 1,850,672,044.36 2,585,658,521.65
Assets classified as held for sale
Current portion of non-current assets
Other current assets 12,370,820.97 10,977,557.15
Total current assets 4,505,840,020.84 5,628,030,102.19
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 3,591,209.20 17,503,714.14
76
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Held-to-maturity investments
Long-term receivables
Long-term equity investments 38,730,392.96 36,751,891.12
Investment property 426,849,558.05 427,800,613.03
Property, plant and equipment 29,346,901.33 73,932,007.89
Construction in progress
Construction materials
Proceeds from disposal of property,
85,556.34
plant and equipment
Productive living assets
Oil and gas assets
Intangible assets 85,487,580.95
R&D expense
Goodwill
Long-term prepaid expense 951,368.85 1,496,391.11
Deferred income tax assets 388,022,097.64 375,997,063.33
Other non-current assets 7,271,224.00
Total non-current assets 887,491,528.03 1,026,326,041.91
Total assets 5,393,331,548.87 6,654,356,144.10
Current liabilities:
Short-term borrowings
Borrowings from central bank
Customer deposits and deposits from
banks and other financial institutions
Interbank loans obtained
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 491,963,303.62 419,926,139.39
Advances from customers 516,984,711.11 2,231,321,227.65
Financial assets sold under
repurchase agreements
Handling charges and commissions
payable
Payroll payable 92,066,474.54 67,340,897.51
77
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Taxes payable 1,192,587,256.66 1,254,999,384.73
Interest payable
Dividends payable 29,642.40
Other payables 122,592,357.98 132,082,174.54
Reinsurance payables
Insurance contract reserve
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 2,416,223,746.31 4,105,669,823.82
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions 5,201,315.32
Deferred revenue 16,379,403.41
Deferred income tax liabilities 8,668.15 14,487.51
Other non-current liabilities 54,543,253.27 115,794,291.23
Total non-current liabilities 54,551,921.42 137,389,497.47
Total liabilities 2,470,775,667.73 4,243,059,321.29
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 118,938,132.89 119,951,533.93
78
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Less: Treasury shares
Other comprehensive income -4,111,587.14 -697,548.70
Specific reserve
Surplus reserves 299,569,569.96 253,569,569.96
General reserve
Retained earnings 1,911,318,586.37 1,441,632,088.56
Total equity attributable to owners of
2,921,693,794.08 2,410,434,735.75
Parent Company
Non-controlling interests 862,087.06 862,087.06
Total owners’ equity 2,922,555,881.14 2,411,296,822.81
Total liabilities and owners’ equity 5,393,331,548.87 6,654,356,144.10
Legal representative: Chen Yugang Head of financial affairs: Wang Hangjun
Head of the financial department: Shen Xueying
2. Parent Company Balance Sheet
Unit: RMB
Item December 31, 2017 December 31, 2016
Current assets:
Monetary assets 1,754,272,751.45 1,566,655,340.88
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 479,462.50 554,834.29
Prepayments 496,729.09 34,080,739.67
Interest receivable
Dividends receivable 350,000,000.00
Other receivables 1,128,977,669.02 1,387,640,781.32
Inventories 303,797,408.60 473,719,042.17
Assets classified as held for sale
Current portion of non-current assets
Other current assets 85,558.19 1,241,108.66
Total current assets 3,188,109,578.85 3,813,891,846.99
Non-current assets:
79
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Available-for-sale financial assets 3,821,709.20 3,234,214.14
Held-to-maturity investments
Long-term receivables
Long-term equity investments 250,613,065.89 283,309,153.10
Investment property 336,964,573.31 352,884,137.98
Property, plant and equipment 8,163,838.55 8,696,554.63
Construction in progress
Construction materials
Proceeds from disposal of property,
plant and equipment
Productive living assets
Oil and gas assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 951,368.85 1,124,345.13
Deferred income tax assets 191,632,218.83 163,663,557.65
Other non-current assets
Total non-current assets 792,146,774.63 812,911,962.63
Total assets 3,980,256,353.48 4,626,803,809.62
Current liabilities:
Short-term borrowings
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 119,489,366.28 162,541,223.07
Advances from customers 5,127,871.19 931,886,153.43
Payroll payable 34,296,032.66 9,532,230.14
Taxes payable 704,897,740.79 551,593,062.41
Interest payable
Dividends payable 29,642.40
Other payables 206,876,957.12 758,082,233.48
Liabilities directly associated with
assets classified as held for sale
80
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,070,717,610.44 2,413,634,902.53
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions 5,201,315.32
Deferred revenue
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 5,201,315.32
Total liabilities 1,070,717,610.44 2,418,836,217.85
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 94,057,859.68 94,057,859.68
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 298,912,759.52 252,912,759.52
Retained earnings 1,920,589,031.84 1,265,017,880.57
Total owners’ equity 2,909,538,743.04 2,207,967,591.77
Total liabilities and owners’ equity 3,980,256,353.48 4,626,803,809.62
3. Consolidated Income Statement
Unit: RMB
81
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Item 2017 2016
1. Revenue 2,904,690,690.53 2,059,204,077.18
Including: Operating revenue 2,904,690,690.53 2,059,204,077.18
Interest revenue
Premium revenue
Handling charge and commission
revenue
2. Cost of revenue 2,178,847,472.64 1,566,730,359.40
Including: Cost of operating revenue 1,627,867,905.64 872,534,223.43
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 463,876,115.22 471,132,933.89
Selling expense 31,179,193.33 47,306,701.76
Administrative expense 137,028,655.69 99,528,601.79
Finance costs -24,407,456.38 -22,407,438.75
Asset impairment losses -56,696,940.86 98,635,337.28
Add: Gains on changes in fair value (“-”
for losses)
Investment income (“-” for loss) 106,874,030.32 2,225,713.71
Including: Share of profit or loss of
1,978,501.84 2,225,713.71
joint ventures and associates
Foreign exchange gains (“-” for losses)
Asset disposal income (“-” for loss) -11,772.11 -182,886.11
Other income
3. Operating income (“-” for loss) 832,705,476.10 494,516,545.38
Add: Non-operating income 1,759,894.83 1,476,298.90
Less: Non-operating expense 7,717,750.16 4,785,186.95
4. Pretax income (“-” for loss) 826,747,620.77 491,207,657.33
Less: Income tax expense 203,784,886.40 136,350,415.59
82
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
5. Net income (“-” for net loss) 622,962,734.37 354,857,241.74
5.1 Net income from continuing
548,933,658.73 348,352,822.45
operations (“-” for net loss)
5.2 Net income from discontinued
74,029,075.64 6,504,419.29
operations (“-” for net loss)
Attributable to owners of Parent
622,962,734.37 354,857,241.74
Company
Attributable to non-controlling
interests
6. Other comprehensive income, net of
-3,414,038.44 3,349,054.76
tax
Attributable to owners of Parent
-3,414,038.44 3,349,054.76
Company
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
6.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
6.2 Items that may subsequently be
-3,414,038.44 3,349,054.76
reclassified to profit or loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
6.2.2 Gains/Losses on changes in
fair value of available-for-sale financial
assets
6.2.3 Gains/Losses arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.4 Effective gains/losses on
cash flow hedges
6.2.5 Differences arising from
translation of foreign
-3,414,038.44 3,349,054.76
currency-denominated financial
statements
6.2.6 Other
83
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Attributable to non-controlling
interests
7. Total comprehensive income 619,548,695.93 358,206,296.50
Attributable to owners of Parent
619,548,695.93 358,206,296.50
Company
Attributable to non-controlling
interests
8. Earnings per share
8.1 Basic earnings per share 1.0453 0.5954
8.2 Diluted earnings per share 1.0453 0.5954
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 Head of financial affairs: Wang Hangjun
Head of the financial department: Shen Xueying
4. Parent Company Income Statement
Unit: RMB
Item 2017 2016
1. Operating revenue 974,400,482.05 1,409,651,839.78
Less: Cost of operating revenue 191,844,816.06 331,649,548.84
Taxes and surtaxes 355,615,402.19 446,918,517.54
Selling expense 4,602,356.70 20,375,728.55
Administrative expense 67,072,041.58 34,668,653.91
Finance costs -10,220,836.89 -15,516,555.93
Asset impairment losses 1,250,188.43 -753,026.41
Add: Gains on changes in fair value
(“-” for losses)
Investment income (“-” for loss) 570,972,139.28 531,825,713.71
Including: Share of profit or loss
1,978,501.84 2,225,713.71
of joint ventures and associates
Asset disposal income (“-” for
-7,343.52
loss)
Other income
2. Operating income (“-” for loss) 935,201,309.74 1,124,134,686.99
Add: Non-operating income 222,418.81 400,181.78
Less: Non-operating expense 7,023,013.36 4,385,760.80
84
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
3. Pretax income (“-” for loss) 928,400,715.19 1,120,149,107.97
Less: Income tax expense 119,553,327.36 131,099,724.25
4. Net income (“-” for net loss) 808,847,387.83 989,049,383.72
4.1 Net income from continuing
718,383,636.46 820,049,383.72
operations (“-” for net loss)
4.2 Net income from discontinued
90,463,751.37 169,000,000.00
operations (“-” for net loss)
5. Other comprehensive income, net of
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
5.1.2 Share of other
comprehensive income of investees that
will not be reclassified into profit or
loss under equity method
5.2 Items that may subsequently be
reclassified to profit or loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit or loss
under equity method
5.2.2 Gains/Losses on changes in
fair value of available-for-sale financial
assets
5.2.3 Gains/Losses arising from
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Differences arising from
translation of foreign
currency-denominated financial
statements
5.2.6 Other
6. Total comprehensive income 808,847,387.83 989,049,383.72
7. Earnings per share
7.1 Basic earnings per share 1.3572 1.6595
85
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
7.2 Diluted earnings per share 1.3572 1.6595
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2017 2016
1. Cash generated by or used in
operating activities:
Proceeds from sale of commodities
1,298,880,512.56 3,738,338,252.83
and rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Tax rebates received
Cash generated by other operating
38,657,341.63 31,716,157.80
activities
Subtotal of cash generated by operating
1,337,537,854.19 3,770,054,410.63
activities
Payments for goods and services 515,987,168.02 624,777,127.52
Net increase in loans and advances to
customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
86
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
insurance contracts
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 331,180,621.68 314,804,865.42
Taxes paid 746,485,110.50 497,236,549.74
Cash used in other operating
90,154,714.93 81,194,684.53
activities
Subtotal of cash used in operating
1,683,807,615.13 1,518,013,227.21
activities
Net cash flows from operating activities -346,269,760.94 2,252,041,183.42
2. Cash generated by or used in
investing activities:
Proceeds from disinvestments
Investment income received
Net proceeds from disposal of
property, plant and equipment,
11,700.85 139,247.90
intangible assets and other long-lived
assets
Net proceeds from disposal of
68,050,370.55
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
68,062,071.40 139,247.90
activities
Payments for acquisition of property,
plant and equipment, intangible assets 3,721,869.38 4,654,746.40
and other long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
3,721,869.38 4,654,746.40
activities
Net cash flows from investing activities 64,340,202.02 -4,515,498.50
3. Cash generated by or used in
financing activities:
Capital contributions received
Including: Capital contributions by
87
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
non-controlling interests to subsidiaries
Increase in borrowings 15,441,282.23
Net proceeds 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
Payments for interest and dividends 107,246,594.16 52,830,940.85
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
107,246,594.16 342,355,581.91
activities
Net cash flows from financing activities -107,246,594.16 -326,914,299.68
4. Effect of foreign exchange rate
-3,550,248.56 3,403,855.84
changes on cash and cash equivalents
5. Net increase in cash and cash
-392,726,401.64 1,924,015,241.08
equivalents
Add: Cash and cash equivalents,
2,857,353,056.85 933,337,815.77
beginning of the period
6. Cash and cash equivalents, end of the
2,464,626,655.21 2,857,353,056.85
period
6. Parent Company Cash Flow Statement
Unit: RMB
Item 2017 2016
1. Cash generated by or used in
operating activities:
Proceeds from sale of commodities
65,757,450.31 2,063,440,554.67
and rendering of services
Tax rebates received
Cash generated by other operating
21,716,848.94 10,669,811.91
activities
Subtotal of cash generated by operating
87,474,299.25 2,074,110,366.58
activities
Payments for goods and services 44,735,175.71 144,727,665.19
Cash paid to and for employees 21,174,100.46 23,303,772.00
Taxes paid 339,287,204.18 292,134,706.66
88
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Cash used in other operating
272,205,006.82 60,900,433.58
activities
Subtotal of cash used in operating
677,401,487.17 521,066,577.43
activities
Net cash flows from operating activities -589,927,187.92 1,553,043,789.15
2. Cash generated by or used in
investing activities:
Proceeds from disinvestments
Investment income received 798,375,302.27 179,600,000.00
Net proceeds from disposal of
property, plant and equipment,
8,377.85
intangible assets and other long-lived
assets
Net proceeds from disposal of
88,010,664.30
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
886,394,344.42 179,600,000.00
activities
Payments for acquisition of property,
plant and equipment, intangible assets 585,878.55 464,355.20
and other long-lived assets
Payments for investments 1,000,000.00 1.00
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
1,585,878.55 464,356.20
activities
Net cash flows from investing activities 884,808,465.87 179,135,643.80
3. Cash generated by or used in
financing activities:
Capital contributions received
Increase in borrowings 15,441,282.23
Net proceeds from issuance of bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
15,441,282.23
activities
Repayment of borrowings 420,281,289.06
Payments for interest and dividends 107,246,594.16 56,862,943.75
89
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Cash used in other financing
activities
Sub-total of cash used in financing
107,246,594.16 477,144,232.81
activities
Net cash flows from financing activities -107,246,594.16 -461,702,950.58
4. Effect of foreign exchange rate
-17,273.22 -17,798.35
changes on cash and cash equivalents
5. Net increase in cash and cash
187,617,410.57 1,270,458,684.02
equivalents
Add: Cash and cash equivalents,
1,566,655,340.88 296,196,656.86
beginning of the period
6. Cash and cash equivalents, end of the
1,754,272,751.45 1,566,655,340.88
period
7. Consolidated Statements of Changes in Owners’ Equity
2017
Unit: RMB
2017
Equity attributable to owners of Parent Company
Other equity Non-co
Other Retaine Total
Item instruments ntrollin
Less:
Share Capital compre Specific Surplus General d owners’
Prefer Perpet Treasur g
capital reserves hensive reserve reserves reserve earning equity
red ual Other y shares interests
income s
shares bonds
595,97 1,441,6 2,411,2
1. Balances as of 119,951 -697,54 253,569 862,087
9,092. 32,088. 96,822.
end of prior year ,533.93 8.70 ,569.96 .06
00 56 81
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Adjustments for
business mergers
under same control
Other
adjustments
2. Balances as of 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
90
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
3. Increase/
decrease in the -1,013,4 -3,414,0 46,000, 469,686 511,259
period (“-” for 01.04 38.44 000.00 ,497.81 ,058.33
decrease)
3.1 Total
-3,414,0 622,962 619,548
comprehensive
38.44 ,734.37 ,695.93
income
3.2 Capital
increased and
reduced by owners
3.2.1
Common shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-153,27 -107,27
3.3 Profit 46,000,
6,236.5 6,236.5
distribution 000.00
6 6
3.3.1
46,000, -46,000,
Appropriation to
000.00 000.00
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
-107,27 -107,27
Appropriation to
6,236.5 6,236.5
owners (or
6 6
shareholders)
3.3.4 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
91
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
-1,013,4 -1,013,4
3.6 Other
01.04 01.04
595,97 1,911,3 2,922,5
4. Balances as of 118,938 -4,111,5 299,569 862,087
9,092. 18,586. 55,881.
end of the period ,132.89 87.14 ,569.96 .06
00 37 14
2016
Unit: RMB
2016
Equity attributable to owners of Parent Company
Non-co
Other equity
Other ntrollin Total
Item instruments Less: Retaine
Share Capital compre Specific Surplus General g owners’
Prefer Perpet Treasur d
capital reserves hensive reserve reserves reserve interest equity
red ual Other y shares earnings
income s
shares bonds
595,97 1,233,3 2,100,7
1. Balances as of 119,951 -4,046,6 154,664 862,087
9,092. 58,112. 68,853.
end of prior year ,533.93 03.46 ,631.59 .06
00 55 67
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
92
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Adjustments for
business mergers
under same control
Other
adjustments
2. Balances as of 595,97 1,233,3 2,100,7
119,951 -4,046,6 154,664 862,087
beginning of the 9,092. 58,112. 68,853.
,533.93 03.46 ,631.59 .06
year 00 55 67
3. Increase/
decrease in the 3,349,0 98,904, 208,273 310,527
period (“-” for 54.76 938.37 ,976.01 ,969.14
decrease)
3.1 Total
3,349,0 354,857 358,206
comprehensive
54.76 ,241.74 ,296.50
income
3.2 Capital
increased and
reduced by owners
3.2.1
Common shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-146,58
3.3 Profit 98,904, -47,678,
3,265.7
distribution 938.37 327.36
3
3.3.1
98,904, -98,904,
Appropriation to
938.37 938.37
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
-47,678, -47,678,
Appropriation to
327.36 327.36
owners (or
93
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
shareholders)
3.3.4 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
595,97 1,441,6 2,411,2
4. Balances as of 119,951 -697,54 253,569 862,087
9,092. 32,088. 96,822.
end of the period ,533.93 8.70 ,569.96 .06
00 56 81
8. Parent Company Statements of Changes in Owners’ Equity
2017
Unit: RMB
2017
Other equity instruments Other
Less: Retaine Total
Item Share Capital comprehe Specific Surplus
Preferre Perpetu Treasury d owners’
capital Other reserves nsive reserve reserves
d shares al bonds shares earnings equity
income
1,265,0
1. Balances as of 595,979, 94,057,85 252,912,7 2,207,967
17,880.
end of prior year 092.00 9.68 59.52 ,591.77
57
Add: Adjustments
94
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of 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 46,000,00 655,571 701,571,1
period (“-” for 0.00 ,151.27 51.27
decrease)
3.1 Total
808,847 808,847,3
comprehensive
,387.83 87.83
income
3.2 Capital
increased and
reduced by owners
3.2.1
Common shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-153,27
3.3 Profit 46,000,00 -107,276,
6,236.5
distribution 0.00 236.56
6
3.3.1
46,000,00 -46,000,
Appropriation to
0.00 000.00
surplus reserves
3.3.2 -107,27
-107,276,
Appropriation to 6,236.5
236.56
owners (or 6
95
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
shareholders)
3.3.3 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
1,920,5
4. Balances as of 595,979, 94,057,85 298,912,7 2,909,538
89,031.
end of the period 092.00 9.68 59.52 ,743.04
84
2016
Unit: RMB
2016
Other equity instruments Other
Less: Retaine Total
Item Share Capital comprehe Specific Surplus
Preferre Perpetu Treasury d owners’
capital Other reserves nsive reserve reserves
d shares al bonds shares earnings equity
income
1. Balances as of 595,979, 94,057,85 154,007,8 422,551 1,266,596
end of prior year 092.00 9.68 21.15 ,762.58 ,535.41
Add: Adjustments
for changed
accounting
policies
96
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of
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 98,904,93 842,466 941,371,0
period (“-” for 8.37 ,117.99 56.36
decrease)
3.1 Total
989,049 989,049,3
comprehensive
,383.72 83.72
income
3.2 Capital
increased and
reduced by owners
3.2.1
Common shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-146,58
3.3 Profit 98,904,93 -47,678,3
3,265.7
distribution 8.37 27.36
3
3.3.1
98,904,93 -98,904,
Appropriation to
8.37 938.37
surplus reserves
3.3.2
Appropriation to -47,678, -47,678,3
owners (or 327.36 27.36
shareholders)
3.3.3 Other
3.4
97
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
1,265,0
4. Balances as of 595,979, 94,057,85 252,912,7 2,207,967
17,880.
end of the period 092.00 9.68 59.52 ,591.77
57
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “Company” or “the
Company”) was incorporated based on the reconstruction of Shenzhen Properties & Resources Development Co.,
Ltd. after obtaining approval of ZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. The
registration number of Business License for Enterprises as Legal Person is ZQFZ No. 440301103570124. And the
credibility code for the Company after the business license reform is 91440300192174135N.
The registered capital of the Company was RMB541, 799,175 after bonus issue of shares on the basis of one share
for every existing 10 shares based on existing paid-in capital of the Company in 1996 and it changes to
RMB595,979,092 after bonus issue of shares on the basis of one share for every existing 10 shares based on
previous paid-in capital of RMB541,799,175 in 2009.
Up to Dec. 31, 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
98
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 21st Session of the 8th Board of the
Directors on March 29, 2018.
Up to the end of this Reporting Period, there were 20 subsidiaries included in the consolidation financial statement,
and for the details, please refer to Note (IX) 1 herein.
For the changes of consolidation financial statement scope of this Reporting Period, please refer to Note (VIII)
herein.
IV Basis for the Preparation of Financial Statements
1. Preparation Basis
The Company recognizes and measures transactions occurred according to Chinese Accounting Standards – Basic
standard and other related accounting standards, prepares the financial statements based on accrual accounting and
the underlying assumption of going concern.
2. Continuation
There will be no such events or situations in the 12 months from the end of this Reporting Period that will cause
material doubts as to the continuation capability of the Company.
V Important Accounting Policies and Estimations
Is the Company subject to any disclosure requirements for special industries?
Yes, for the Company engages in real estate.
Indication of specific accounting policies and estimations:
99
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 earning is adjusted
respectively. The business combination costs that are directly attributable to the combination, such as audit fees,
valuation fees, and legal service fees and so on are recognized in profit or loss during the current period when they
occurred. The bonds issued for a business combination or the handling fees, commissions and other expenses for
bearing other liabilities shall be recorded in the amount of initial measurement of the bonds or other debts. The
handling fees, commissions and other expenses for the issuance of equity securities for the business combination
shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be
offset. Where a relationship between a parent company and a subsidiary company is formed due to a business
combination, the parent company shall, on the combining date, prepare consolidated financial statements according
100
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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.
③ Agency 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. ④ Where 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. 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; if the combination costs are less than the fair value of the identifiable net assets obtained from
acquiree, the acquirer shall reexamine the measurement of the fair values of the identifiable assets, liabilities and
contingent liabilities obtained from the acquiree as well as the combination costs; and then after the reexamination,
the result is still the same, the difference shall be recorded in the profit and loss of the current period.
Where a relationship between a parent company and a subsidiary company is formed due to a business
101
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 December 31, 2017 of the Company and whole subsidiaries. The consolidated financial
statements comprise the financial statements of the Group and its subsidiaries. A subsidiary is an enterprise or
entity controlled by the Group (including the segmental part among the enterprises and investees as well as the
structuralized main bodies etc.) The term “control” is the power of the Group upon an investee, with which it can
take part in relevant activities of the investee to obtain variable returns and is able to influence the amount of
returns.
(2) Methods for preparing the consolidated financial statements
The Company compiles the consolidation financial statement according to other relevant materials based on the
financial statement of itself and its subsidiaries.
The Company regards the whole enterprise group as an accounting main body when compiling the consolidation
financial statement to reflect the whole financial conditions, operation results and cash flows according to the
requirements of the recognition, measurement and presentation of the relevant ASBE and the unitize accounting
polices.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting
period of the Group during the preparation of the consolidated financial statements, where the accounting policies
and the accounting periods are inconsistent between the Group and subsidiaries. For a subsidiary acquired from a
business combination not under the same control, the individual financial statements of the subsidiary are adjusted
based on the fair value of the identifiable net assets at the acquisition date.
(3) Statement of minority interests and profits or losses
The portion of the equity of the subsidiaries that are not owned by the parent is presented as minority interest in
the consolidated balance sheet.
The portion of the profit or loss of the subsidiaries that are not owned by the parent is presented as minority
interest in the consolidated income statement.
(4) Accounting treatment of excess losses
When the share of losses attributable to the minor shareholders has exceeded their shares in the shareholders’
equity at the beginning of term, the shareholders’ equity shall be deducted thereof.
(5) Accounting treatment on increase or decrease of the subsidiaries during this Reporting Period
For any subsidiary acquired by the Company through business combination under the common control, when the
consolidated balance sheet for the current period are being prepared, the amount at the beginning of the period in
the consolidated balance sheet is made corresponding modification. For addition business combination not under
common control during this Reporting Period, the Company makes no adjustment for the amount at the beginning
of the period in the consolidated balance sheet. When disposing subsidiary during this Reporting Period, the
Company makes no adjustment for the amount at the beginning of the period in the consolidated balance sheet.
102
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 earning is adjusted respectively.
(6) Disposal on consolidation statement of disposing the equity step by step till lose the control right
If the each transaction of disposing the equity investment of the subsidiaries till lose the control right which
belongs to package deal, each transaction would be executed accounting treatment as a transaction of disposing
the subsidiaries that lose the control right; however, before losing the control right, for the balance between each
disposal of the remuneration and the corresponding shares of net assets of investing the subsidiary, would be
confirmed as other comprehensive benefits in the consolidate financial statement and would be transferred into the
current gains and losses of losing the control right when losing it. If not belongs to the package deal, before losing
the control right, or when losing it, should execute the accounting treatment according to the aforesaid situation of
not losing the control right to dispose party equity investment of the subsidiaries as well as according to the
accounting policy of losing the control right of the original subsidiaries.
If the regulations, conditions and its economic influences of each deal of disposing the equity investment of the
subsidiary met with following one or more kinds of situations, it indicated that the multiple transactions would
consolidate as package deal for accounting treatment: ①these transactions are formatted under the situation of
contemporary or considering of the mutual influences; ②only the entirety of these transactions could achieve a
complete commercial result; ③the happen of one transaction depends on at least the happen of other one
transaction; ④to see independently of one transaction is not economic while to considered with other transactions
are economic.
Execute the accounting treatment of the several financial statements of disposing the equity step by step till lose
the control right according to the accounting policy of disposing the long-term equity investment.
103
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
operators in the gains and losses arising from the sale. Where impairment occurs to the assets as prescribed in The
Accounting Standard No. 8 for Business Enterprises—Asset Impairment, 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
104
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
operators in the gains and losses arising from the sale. Where impairment occurs to the assets as prescribed in The
Accounting Standard No. 8 for Business Enterprises—Asset Impairment, 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
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.
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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：
The purpose to acquire the said financial assets is mainly for selling them in the near future; 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; Being a derivative instrument, excluding the designated derivative instruments which are
effective hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative
instruments which are connected with the equity instrument investments for which there is no quoted price in the
active market, whose fair value cannot be reliably measured, and which shall be settled by delivering the said
equity instruments.
The financial assets meeting any of the following requirements shall be designated as financial assets which are
measured at their fair values and the variation of which is recorded into the profits and losses of the current period
for initial recognition: A. the designation can eliminate or significantly reduce the difference of relevant gains and
losses between recognition and measurement causing from different bases for measurement of financial assets; B.
The official written documents for risk management and investment strategies of the enterprise have clearly stated
that it shall, manage, evaluate and report to important management personnel based on the fair value, about the
financial assets group or the group of financial assets which the financial assets are belong to.
For the equity instruments investment without quotation in the active market and the fair value could not be
reliable measured, should not be appointed as the financial assets measured by the fair value with its changes
included in the current gains and losses.
B. Held-to-maturity investment
The term "held-to-maturity investment" refers to a non-derivative financial asset with a fixed date of maturity, a
fixed or determinable amount of repo price and which the enterprise holds for a definite purpose or the enterprise
is able to hold until its maturity.
C. Loans and the accounts receivables
Loans and the accounts receivables refer to non-derivative financial assets, which there is no quotation in the
active market, with fixed recovery cost or recognizable.
D. Available-for-sale financial assets
Available-for-sale financial assets refer to the non-derivative financial assts which appointed available for sale
when initially recognizes and the financial assets except for the above category of the financial assets.
After the Group classifies certain financial assets as the financial assets measured by fair value and included its
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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
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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 planed to settle by net amount or at
the same time discounted the financial assets and liquidated the financial liabilities. For the transfer of the
financial assets not satisfy the de-recognition conditions, the transfer-out party should not offset the transfer
financial assets and the relevant liabilities.
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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 analysis method
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
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In the groups, adopting other methods to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Name of portfolios
receivable receivable
Portfolios 1 0.00% 0.00%
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is Made
Independently
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. Assets Held for Sale
(1) Confirmation criteria for assets held for sale
The Group classifies an asset into held-for-sale when its book value is mainly recovered by selling (including the
exchanges of non-monetary assets with commercial substance) instead of a non-current asset or disposal group. A
non-current asset or disposal group is classified as asset held-for-sale when it satisfies the following conditions:
① It can be sold immediately under current conditions based on the practice of selling such assets or disposal
groups in similar transactions.
② The sale is highly likely to occur, that is, the Group has already made a resolution on a sale plan and obtained
a confirmed purchase commitment, and the sale is expected to will be completed within one year. Moreover, the
sale has been approved if relevant regulations require relevant authority or regulatory authority of the Group to
approve it. A confirmed purchase commitment refers to a legally binding purchase agreement signed between the
Group and other parties. The agreement includes important terms such as transaction price, time and severe
penalties for breach of contract that make it unlikely that the agreement will be substantially adjusted or revoked.
Non-current assets or disposal groups specifically obtained by the Group for resale will be classified as
held-for-sale on the acquisition date when they meet the stipulated conditions of “expected to be sold within one
year” on the acquisition date, and may well satisfy the category of held-for-sale within a short time (which is
usually 3 months).
A disposal group refers to a group of assets that are disposed of together as a whole by sale or other means in a
transaction and the liabilities directly related to these assets transferred in the transaction. Where the asset group
or combination of asset groups to which a disposal group belongs apportions the goodwill acquired in the business
combination in accordance with the "Accounting Standards for Enterprises No. 8 - Asset Impairment", the
disposal group shall include the goodwill allocated to it.
(2) Accounting methods for assets held-for-sale
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For non-current assets and disposal groups classified as held-for-sale, the Group initially measures or re-measures
the lower net amount from the book value and the fair value less the disposal expenses. If the book value is higher
than the fair value minus the net amount of the sale costs, the book value will be written down to the net amount
of fair value minus the sale costs, and the amount written down will be recognized as impairment loss of assets
and included in the current profit and loss, and provision for impairment of held-for-sale assets will be made. For
the confirmed amount of impairment loss of assets of the disposal groups held for sale, the book value of goodwill
of the disposal groups will be offset first, and then the book value of various non-current assets in the disposal
groups will be offset according to the proportions. If the net amount that the fair value of the non-current assets
held for sale on the follow-up balance sheet date minus the sale costs increases, the previous written-down amount
will be restored, and reversed to the asset impairment loss confirmed after the assets being classified as
held-for-sale. The reversed amount will be included in the current profit or loss. Impairment losses on assets
recognized prior to classification as held for sale are not reversed. If the net amount that the fair value of the
disposal groups held for sale on the follow-up balance sheet date minus the sale costs increases, the previous
written-down amount will be restored, and reversed to the asset impairment loss confirmed after the assets being
classified as held-for-sale. The reversed amount will be included in the current profit or loss. The book value of
deducted goodwill and the non-current assets applicable to the measurement of held-for-sale categories will not be
reversed if the asset impairment loss is recognized before it is classified as held for sale. For the subsequent
reversal amount of the asset impairment loss recognized by the disposal group held for sale, its book value shall
be increased proportionately to the proportion of the book value of various non-current assets measured by the
disposal group in addition to goodwill. Non-current assets held for sale or non-current assets in the disposal group
are not subject to depreciation or amortization. Interest and other expenses of liabilities in the disposal group held
for sale will be confirmed as before.
Deferred income tax assets, financial assets regulated by the “Accounting Standards for Enterprises No. 22 -
Recognition and Measurement of Financial Instruments”, investment real estate and biological assets measured at
fair value, contractual rights arising from insurance contracts, and assets generated from the employee benefits do
not apply the measurement method of the category held-for-sale. Instead, they are measured according to the
relevant standards or the corresponding accounting policies formulated by the Group. Where a disposal group
contains non-current assets that apply the measurement method of the held-for-sale category, the measurement
method for the category held-for-sale shall apply to the whole disposal group. The measurement of liabilities in
the disposal group applies relevant accounting standards.
When a non-current asset or disposal group ceases be classified as held-for-sale or a non-current asset is removed
out from the held-for-sale disposal group due to failure in meeting the classification conditions for the category of
held-for-sale, it will be measured by one of the followings whichever is lower: ① The book value before being
classified as held for sale will be adjusted according to the depreciation, amortization or impairment that would
have been recognized under the assumption that it was not classified as held for sale; ② The recoverable
amount.
14. Long-term Equity Investments
Long-term equity investments include 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
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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 are adjusted respectively. The business combination costs that are
directly attributable to the combination, such as audit fees, valuation fees, legal service fees and so on are
recognized in profit or loss during the current period when they occurred.
If the acquirer issuing equity securities as consideration, the initial cost is the carrying amount of the proportion of
the acquiree’s owner’s equity at the acquisition date. Amount of share capital equal to the par value of the shares
issued. The difference between initial cost of the long-term equity investment and the par value of shares issued is
adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
respectively. The costs of issuing equity securities occurred in business combination such as charges of security
issuing and commissions are deducted from the premium of equity securities. If the premium is not sufficient for
deducting, retained earning is adjusted respectively.
B. If the business combination is not under the common control, the acquirer recognizes the initial cost of
combination under the following principles.
a) When business combination is achieved through a single exchange transaction, the cost of a business
combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree;
b) For a business combination that involves more than one exchange transaction, the initial investment cost is the
summation of the book value of the equity interests of the acquiree held by the Company before the acquisition
date and the new investment cost on the acquisition date;
c) The fees incurred for audit, legal consultation, valuation services and other management expenses are to be
recognized in profit or loss at the time such costs incurred. The transaction costs incurred by the acquirer for
issuing equity securities or debt securities as the consideration of the acquisition are to be recognized as the initial
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
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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
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
polices adopted by the investees is not accord with that of the Group, should be adjusted according to the
accounting policies of the Group and the financial statement of the investees during the accounting period and
according which to recognize the investment income as well as other comprehensive income. The Group shall
recognize the net losses of the invested enterprise until the book value of the long-term equity investment and
other long-term rights and interests which substantially form the net investment made to the invested entity are
reduced to zero. However, if the Group has the obligation to undertake extra losses, it shall be recognized as the
estimated liabilities in accordance with the estimated duties and then recorded into investment losses at current
period. If the invested entity realizes any net profits later, the Group shall, after the amount of its attributable share
of profits offsets against its attributable share of the un-recognized losses, resume recognizing its attributable
share of profits.
For equity investments of the Group in associates, some of which are indirectly held by the Group through venture
capital institutions, mutual funds, trust companies, investment-linked insurance funds or other similar subjects,
whether or not these subjects have significant influence over such investments, the Group measures these
indirectly held investments at their fair value and records the changes in their fair value into profits and losses, and
measures other investments adopting the equity method as per the Accounting Standards for Business Enterprises
No. 22-Recognition and Measurement of Financial Instruments.
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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
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 polices of “Long-term assets impairment” formulated by the Group.
15. Investment Real Estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
(1) Investment properties of the Company are properties held to earn rentals or for capital appreciation or both,
mainly comprising:
①Land use right which has already been rented;
②Land use right which is held for transfer out after appreciation;
③Property that has already been rented.
(2) Investment property shall be recognized as an asset when the following conditions are satisfied:
①It is probable that the future economic benefits that are associated with the investment property will flow to the
Company;
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②The cost of the investment property can be measured reliably.
(3) Initial measurement
An investment property is measured initially at its cost.
①The cost of a purchased investment property comprises its purchase price, related tax expenses and any directly
attributable expenditure.
②The cost of a self-constructed investment property comprises all necessary construction expenditures incurred
before the property is ready for its intended use.
③The cost of a property acquired by other means shall be recognized according to relevant accounting standards.
(4) Subsequent measurement
After initial recognition, the Company adopts the cost model to measure its investment properties. The Company
amortizes or depreciates its investment properties measured using cost model in the same way as fixed assets and
intangible assets
If the Group had definite evidence indicated the usage of the property had changed, when transferring the
self-used real estate or the inventories as the investment real estate or transferring the investment real estate as the
self-used real estate, the book value before the transfer should be regarded as the entry value after transfer.
The Group values the investment property measured using cost model at the lower of its cost and its recoverable
amount at the end of the period. Where the cost exceeds the recoverable amount, the difference shall be
recognized as impairment loss. Once a provision for impairment loss is made, it cannot be reversed.
16. Fixed Assets
(1) Recognition Conditions
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 Method
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
The depreciation method of the Company’s fixed assets is straight-line depreciation. 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
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and the original estimated number, should adjust the estimated net salvage; if there were significant changes of the
realization method of the economic benefits related to the fixed assets, should changes the depreciation method of
the fixed assets. The changes of the useful life, estimated net salvage and the depreciation method of the fixed
assets should be regarded as the accounting estimate changes.
Impairment of fixed asset refers to accounting policy “Long-term assets impairment” of the Group.
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
The "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards related to the
ownership of an asset. Its ownership may or may not eventually be transferred. The fixed assets by finance lease
shall adopt the same depreciation policy for self-owned fixed assets. If it is reasonable to be certain that the lessee
will obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully
depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the
leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the
lease term or its useful life.
17. Construction in Progress
Is the Company subject to any disclosure requirements for special industries?
Yes
Real estate industry
(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
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interrupted abnormally, and the interruption period is three months or longer. These borrowing costs should be
recognized directly in profit or loss during the current period. However, capitalization of borrowing costs during
the suspended periods should continue when the interruption is a necessary part of the process of bringing the
asset to working condition for its intended use.
Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed is substantially
ready for its intended use. Subsequent borrowing costs should be expensed off during the period in which they are
incurred.
The term “assets eligible for capitalization” refers to the fixed assets, investment real estate, inventories and other
assets, of which the acquisition and construction or production may take quite a long time to get ready for its
intended use or for sale.
(2) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset,
the amount of borrowing costs eligible for capitalization on that asset is determined as the actual borrowing costs
incurred on that borrowing during the period less any investment income on the temporary investment of the
borrowing.
To the extent that funds are borrowed generally and used for the purpose of acquiring or constructing a qualifying
asset, the amount of borrowing costs eligible for capitalization shall be determined by applying a capitalization
rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific
purpose borrowing. The capitalization rate is the weighted average rate of the general borrowings.
During the period of capitalization, the exchange balance on foreign currency special borrowings shall be
capitalized; the exchange balance on foreign currency general borrowings shall be recorded into current profits
and losses.
19. Biological Assets
Not applicable
20. Oil-gas Assets
Not applicable
21. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
The term "intangible asset" refers to the identifiable non-monetary assets possessed or controlled by enterprises
which have no physical shape.
Recognition of intangible asset:
The Company recognizes an intangible asset when that intangible asset fulfills both of the following conditions:
①It is probable that the economic benefits associated with that asset will flow to the Company;
②The cost of that asset can be measured reliably.
Measurement of intangible assets
①An intangible asset is measured initially at its cost.
②Subsequent measurement of intangible assets
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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.
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:
(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 recover by impairment test-estimations when there are impairment
indications. The recoverable amount is recognized through the fair value of the assets which minus the higher one
between the net amount after disposal and the current value of the assets estimated future cash flow. If the
recoverable amount lower than the book value of the assets, the book value should be written down as the
recoverable amount with the written-down amount be recognized as the assets impairment losses and included in
the current gains and losses and at the same time withdraw the assets impairment provision.
If there are indications indicate any asset occur impairment, the Group usually estimates its recoverable amount
base on the individual asset. If it is difficult to estimate the recoverable amount of the individual asset, which asset
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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.
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
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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 benefits 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.
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 singe item, the best estimate should
be determined according to the most likely outcome;
②Where the contingency involves several items; The best estimate should be determined by weighting all
possible outcomes by their associated probabilities of occurrence.
To determine the best estimate, it should be considered with factors such as: related contingency risks, uncertain
matters and time value of currency. If time value of currency has a significant impact, the best estimate should be
measured at its converted present value through the relevant future cash outflows.
Where some or all of the expenditures are expected to be reimbursed by a third party, the reimbursement should
be separately recognized as an asset only when it is virtually received. The amount of the reimbursement should
not exceed the carrying amount of the liability recognized.
At balance sheet date, the Group should review book value of provision for liabilities. If there is strong evidence
that the book value does not truly indicate the current best estimate, it should be adjusted in accordance with the
current best estimate.
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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
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.
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Interest income: the interest income is recognized by the duration you use the Company’s cash and the applicable
interest rate. The fee income is recognized by the charging time and method as regulated in related contract or
agreement.
Income from other use right: the income from transferring asset use right is recognized when the income amount
is able to be reliably measured and related economic interest is possible to flow into the enterprise.
29. Government Subsidies
(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to Assets
The government subsidies divides into the government subsidies related to the assets and the government
subsidies realted to the profits. The government subsidies pertinent to assets mean the government assets that are
obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways. The
government subsidies pertinent to income refer to all the government subsides except those pertinent to assets. If
the government subsidies documents had not definitely confirm the subsidy targets, based on the basic
requirements necessary for the subsidies, the government subsidies based on long-term assets formed through
purchase and construction and other methods are regarded as government subsidies related to assets. Beyond that,
the rest are divided as the government subsidies related to income.
(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 recognized into gains and losses
by stage through reasonable and systematic methods during asset’s using period. If related assets were disposed
before using period ended, balance of undistributed deferred income shall be shifted to current gains and losses.
The Income approach for government grants, to retrieve cost 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 cost
expense or loss occurred. To retrieve cost expense or loss of the Company in current period, the government
grants shall be recorded directly in current profit and loss.
Government subsidies related to daily activities shall be recorded into other income; government subsidies that
have nothing to do with daily activities shall be recorded into non-operating income and expenses.
Policy-based discounted loan discounts are distinguished by the following two methods for accounting::
A. The government finance department allocates the discounted funds to the lending bank. If the lending bank
provides loans to the Group at a policy-based preferential interest rate, the fair value of the loan is used as the
entry value of the loan and the borrowing costs are calculated according to the actual interest rate. The difference
between the actual amount received and the fair value of the loan is confirmed as deferred income. Deferred
income is amortized by the actual interest rate in the duration of the loan to reduce the related borrowing costs.
B. When the government finance department directly allocates the interest-subsidy funds to the Group, the
corresponding discount will be used to offset the relevant borrowing costs.
④ As for the confirmed repayment of government grants should be handled respectively according to the
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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 under other conditions, the repayment shall be recognized directly in current profit and loss.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Pertinent to Incomes
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, based on the basic
requirements necessary for the subsidies, the government subsidies based on long-term assets formed through
purchase and construction and other methods are regarded as government subsidies related to assets. Beyond that,
the rest are divided as the government subsidies related to income.
(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 recognized into gains and losses
by stage through reasonable and systematic methods during asset’s using period. If related assets were disposed
before using period ended, balance of undistributed deferred income shall be shifted to current gains and losses.
The Income approach for government grants, to retrieve cost 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 cost
expense or loss occurred. To retrieve cost expense or loss of the Company in current period, the government
grants shall be recorded directly in current profit and loss.
Government subsidies related to daily activities shall be recorded into other income; government subsidies that
have nothing to do with daily activities shall be recorded into non-operating income and expenses.
Policy-based discounted loan discounts are distinguished by the following two methods for accounting::
A. The government finance department allocates the discounted funds to the lending bank. If the lending bank
provides loans to the Group at a policy-based preferential interest rate, the fair value of the loan is used as the
entry value of the loan and the borrowing costs are calculated according to the actual interest rate. The difference
between the actual amount received and the fair value of the loan is confirmed as deferred income. Deferred
income is amortized by the actual interest rate in the duration of the loan to reduce the related borrowing costs.
B. When the government finance department directly allocates the interest-subsidy funds to the Group, the
corresponding discount will be used to offset the relevant borrowing costs.
④ As for the confirmed repayment of government grants should be handled respectively according to the
following situation:
A. When deferred income exists, the repayment write-downs closing balance of deferred income, and the exceed
part shall be recognized in current profit and loss;
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
B. When under other conditions, the repayment shall be recognized directly in current profit and loss.
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Company executes the accounting treatments of the income tax by adopting the balance sheet liability method.
(1) Deferred income tax assets
① Where there are deductible temporary differences between the carrying amount of assets or liabilities in the
balance sheet and their tax bases, a deferred tax asset shall be recognized for all those deductible temporary
differences to the extent that it is probable that taxable profit will be available against which the deductible
temporary difference can be utilized. Deferred tax assets arising from deductible temporary differences should be
measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is
settled.
② At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in
prior period shall be recognized.
③ The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that
sufficient taxable profit will not be available against which the deductible temporary difference can be utilized,
the Company shall write down the carrying amount of deferred tax asset, or reverse the amount written down later
when it’s probable that sufficient taxable profit will be available.
(2) Deferred income tax liabilities
A deferred tax liability shall be recognized for all taxable temporary differences, which are differences between
the carrying amount of an asset or liability in the balance sheet and its tax base, and measured at the tax rates that
are expected to apply to the period when the asset is realized or the liability is settled.
31. Lease
(1) Accounting Treatment of Operating Lease
Lessee in an operating lease shall treat the lease payment under an operating lease as a relevant asset cost or the
current profit or loss on a straight-line basis over the lease term. The initial direct costs incurred shall be
recognized as the current profit or loss; Contingent rents shall be charged as expenses in the periods in which they
are incurred.
Lessors in an operating lease shall present the assets subject to operating leases in the relevant items of their
balance sheet according to the nature of the asset. Lease income from operating leases shall be recognized as the
current profit or loss on a straight-line basis over the lease term; Initial direct costs incurred by lessors shall be
recognized as the current profit or loss; Lessors shall apply the depreciation policy for the similar assets to
depreciate the fixed assets in the operating lease; For other assets in the operating lease , lessors shall adopt a
reasonable systematical method to amortize; Contingent rents shall be charged as expenses in the periods in which
they are incurred.
(2) Accounting Treatments of Financial Lease
For the lessee, a fixed asset acquired under finance lease shall be valued at the lower of the fair value of the leased
asset and the present value of the minimum lease payments at the inception of lease. The minimum lease
payments as the entering value in long-term account payable, the difference as unrecognized financing charges;
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
The initial direct costs identified as directly attributable to activities performed by the lessee during the
negotiation and signing of the finance lease such as handling fees, legal fees, travel expenses, stamp tax shall be
counted as lease asset value; the unrecognized financing charges shall be apportioned at each period during the
lease term and adopt the effective interest rate method to calculate and confirm the current financing charge;
Contingent rents shall be charged as expenses in the periods in which they are incurred.
When the lessee calculates the present value of the minimum lease payments, for that lessee who can obtain the
interest rate implicit in the lease, the discount rate shall be the interest rate implicit in the lease; otherwise the
discount rate shall adopt the interest rate specified in the lease agreement. If the lessee can not get the interest rate
implicit in the lease and there is no specified interest rate in the lease agreement, the discount rate shall adopt the
current bank loan interest rate.
Lessees shall depreciate the leased assets with the depreciation policy which is consistent with the normal
depreciation policy for similar assets. If there is reasonable certainty that the lessee will obtain ownership by the
end of the lease term, the depreciation shall be allocated to the useful life of the asset. If there is no reasonably
certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be depreciated over the
shorter of the lease term and its useful life.
On the initial date of financial lease, lessee of the financial lease shall record the sum of the minimum lease
payments and initial direct costs as the financing lease accounts receivable, and also record the non-guaranteed
residual value; recognize the difference between the total minimum lease payments , initial direct costs,
non-guaranteed residual value and sum of the present value as the unrealized financing income; the unrealized
financing income shall be distributed to each period over the lease term; adopt the actual interest rate to calculate
the current financial income; Contingent rents shall be charged as expenses in the periods in which they are
incurred.
32. Other Significant Accounting Policies and Estimates
(1) Measurement of fair value
Fair value refers to the price received from selling any asset or paid for transferring any liability in the orderly
transactions that occur on the measurement date of the market participants. The Group should consider the
characteristics of the assets or liabilities when measuring the relevant assets or liabilities by fair value; to suppose
the transactions of selling or transferring the assets on the measurement date by the market participants is the
orderly transactions under the conditions of the current market; to suppose the orderly transaction of selling or
transferring the assets is executing in the market of the relevant assets or liabilities; to suppose the transaction is
executing in the most favorable market of the relevant assets or liabilities if there is no any main market. The
Group adopts the advice used when pricing the assets or liabilities for realizing the maximum of the economy
benefits by the market participants.
The Group judges the fair value of initial recognition whether is equal to the transaction price according to the
characteristics of the relevant assets or liabilities with transaction nature etc.; if the transaction price and fair value
is not equal, should include the relevant gains or losses in the current gains and losses except for those stipulated
by other relevant ASBE.
The Group adopts the assessment technology which adapt to the current conditions with sufficient available data
and other information support, and the assessment technology mainly including the market method, equity method
and cost method. In the application of the assessment technology, the Group should prefer the relevant observable
input value and only when the relevant observable input value could not be required or required the not feasible
value, could use the not observable input value.
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The input value used for the fair value measurement is divided into three levels and the first level of the input
value is initially used, then come to the second level and the third one the last. The first level input value is the
quotation acquired from the 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 transferees 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 transferees as to acquire the relevant rights and to undertake the relevant obligations as
the market participants of the s.
(2) Termination of operation
Termination of operation refers to a separately identifiable constituent part that satisfies one of the following
conditions that has been disposed of by the Company or is classified as held-for-sale:
A. This constituent part represents an independent main business or a separate main business area.
B. This constituent part is part of an associated plan that is intended to be disposed of in an independent main
business or a separate major business area.
C. This constituent part is a subsidiary that is specifically acquired for resale.
The Group lists profit and loss from continuing operations and profit and loss from terminated operations in the
consolidated income statement and profit statement respectively. For non-current assets or disposal groups held
for sale that do not meet the definition of terminated operations, the impairment loss, reversal amount and disposal
profit or loss are presented as continuing profits and losses. The operating profit or loss and disposal profit or loss
such as impairment loss and reversal amount from the terminated business is reported as operation profit or loss.
For the terminated operations for the current period, in the current financial statements, the information previously
presented as a profit or loss from continuing operations is reclassified as the profit or loss from terminated
operations of the comparable accounting period. If a non-selling disposal group that will no longer be used
satisfies the conditions for relevant components of the definition of terminated operation, it shall be reported as a
terminated operation from the date of cessation of use. If the Group loses control of a subsidiary due to the sale of
investment to the subsidiary or other reasons, and the subsidiary meets the definition of terminated operation, the
related profit and loss from the termination shall be reported in the consolidated income statement.
(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: A. the compose part could cause revenues and expenses in the daily activities; B. the management layer
could periodically evaluate the operation results of the compose part and base which to distribute the resources
and evaluate the performance; C. 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.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(4) Quality margin
According to the regulations of the construction contact, the Group should execute the retention of the quality
margin for construction organizations and should include which into the “accounts payable” and to pay according
to the actual situation and the contacts agreement after the guarantee period.
(5) Maintenance funds
The received public maintenance funds for the entrusted management of the owner from the property management
company of the Group should be included in the “non-current liabilities”, which were specially used for the
maintenance and updating for the residential common areas, common equipments and the communal facilities of
the realty management area.
33. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
√ Applicable □ Not applicable
Content and reason for changes Approval procedures Note
On April 28, 2017, the Ministry of Finance issued the Circular on Issuing of Accounting Standards for Business
Enterprises No. 42 - Non-current Assets and Disposal Groups Held for Sale and Termination of Operations
(hereinafter referred to as “Accounting Standards for Business Enterprises No. 42”), which is required to be
implemented from the date of May 28, 2017.
The Company implemented the above newly issued Accounting Standards for Business Enterprises No. 42 from
the date of May 28, 2017, which resulted in the changes of corresponding accounting policy of the Company. The
detailed contents were the change into the list and presentation as gains and losses of continuing operation and
gains and losses of determination operation separately in the consolidated income statement and income
statement.
Accounting Standards for Business Enterprises No. 42 stipulated that it was implemented from the date of May 28,
2017; the non-current assets and disposal groups held for sale and termination of operation existed on the date of
implementation need to be treated with prospective application method. So, the aboved changes of accounting
policy weren’t involved in retroactive adjustment for comparative data, and they also didn’t have influences on
the net profits of the Company in the Reporting Period.
According to the requirements of Notice of the Ministry of Finance on Revision and Issuance of Format of
General Financial Statements of Enterprises (CaiKuai [2017] No. 30), the Company listed and presented the item
of “assets disposal income” separately based on the item of “operating profit” in consolidated income statement
and income statement. Part of gains and losses of non-current assets disposal in “non-operating income” and
“non-operating expenditure” were changed into being listed and disclosed in “assets disposal income”; the
Company retroactively restated the comparative statement correspondingly. The influences on consolidated
income statement and income statement of the Company are as follows:
Parent Company income
Consolidated income statement
Income statement item affected statement
Effect for 2017 Effect for 2016 Effect for 2017 Effect for 2016
Assets disposal income -11,772.11 -182,886.11 -7,343.52
Non-operating income -23,539.00
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Of which: gains of non-current assets -23,539.00
disposal
Non-operating expenditure -35,311.11 -182,886.11 -7,343.52
Of which: losses of non-current assets -35,311.11 -182,886.11 -7,343.52
disposal
Influences on income statement
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
34. Other
Not applicable
VI Taxes
1. Main Taxes and Tax Rates
Category of tax Taxable amount 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%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Levee fee Operating revenue 0.01%
Added amount from transfer of real Four progressive levels with the tax rate
Land value appreciation tax
property ranging from 30% to 60%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Chongqing Aobo Elevator Co., Ltd. 20%
Subsidiaries registered in Hong Kong area 16.5%
Other taxpaying bodies within the consolidated scope 25%
2. Tax Preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging
category of the Guidance Catalogue of Industry Constructure Adjustment (Y2011), the western industry met with
131
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 May 4,
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 January 1, 2015 to December 31, 2017, as for those small
low-profit enterprises with the annual after-tax amount lower than RMB0.2 million (including RMB0.2 million),
of which 50% of the revenues should be included into the taxable income and should be collected the corporate
income tax according to 20% of the tax rate.
3. Other
None
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Funds
Unit: RMB
Item Closing balance Opening balance
Cash on hand 164,502.21 190,709.43
Bank deposits 2,463,348,038.01 2,856,051,614.77
Other monetary funds 13,516,274.99 13,512,892.65
Total 2,477,028,815.21 2,869,755,216.85
Of which: the total amount deposited
50,317,518.31 53,978,178.36
overseas
Other notes
RMB 12,402,160.00 of the restricted L/G deposits used at the period-end was the cash deposits paid by the
subsidiary of the Company-Dongguan International Trade Center Changsheng Property Development Co., Ltd. by
entrusting the commercial bank to issue the Commercial Housing Quality Guarantee Letter. Owning the
subsidiary of the Company-Dongguan International Trade Center Changsheng Property Development Co., Ltd.
was the real estate development enterprise with provisional qualification, when handling the application of the
pre-sale permit of the commercial residential housing should submit the quality guarantee letter of the commercial
residential housing after the liquidation situation such as the enterprise bankruptcy and dissolution. The guarantee
letter was the irrepealably commercial residential quality guarantee letter, of which the guarantee period of RMB
1,468,870.00 was from June 30, 2015 to December 31, 2020 and the guarantee period of the remained RMB
10,933,290.00 was 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
132
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
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 Book
Proportio Withdra Proportio Withdrawal Book value
Amount Amount value Amount Amount
n wal n proportion
133
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
proportio
n
Accounts receivable
with significant
99,466,1 99,466,1 102,216 102,216,1
single amount with 66.53% 100.00% 74.08% 100.00%
73.89 73.89 ,173.89 73.89
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
49,088,7 2,816,17 46,272,60 33,877, 2,312,840 31,564,219.
provision according 32.84% 5.74% 24.55% 6.83%
78.72 7.86 0.86 060.01 .15 86
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 942,824. 942,824. 1,884,0 1,884,022
0.63% 100.00% 1.37% 100.00%
which bad debt 55 55 22.38 .38
provision separately
accrued
149,497, 103,225, 46,272,60 137,977 106,413,0 31,564,219.
Total 100.00% 69.05% 100.00% 77.12%
777.16 176.30 0.86 ,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 XI
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
Poor operating
Lunan Industry
2,818,284.84 2,818,284.84 100.00% conditions, uncollectible
Corporation
for a long period
Total 99,466,173.89 99,466,173.89 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Aging Closing balance
134
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Within 1 year (including 1 year) 44,382,961.84 1,331,488.84 3.00%
Subtotal within 1 year 44,382,961.84 1,331,488.84 3.00%
1 to 2 years 2,707,060.93 270,706.10 10.00%
2 to 3 years 845,633.73 253,690.12 30.00%
3 to 4 years 142,348.28 71,174.14 50.00%
4 to 5 years 608,276.40 486,621.12 80.00%
Over 5 years 402,497.54 402,497.54 100.00%
Total 49,088,778.72 2,816,177.86 5.74%
Notes of the basis of recognizing the group:
The basic of recognizing the group refers to Notes V. 11 of Section XI of the report.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
Not applicable
(2) Accounts Receivable Withdraw, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during this Reporting Period was of RMB 518,457.62; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Of which significant amount of the reversed or collected:
Unit: RMB
Name of the units Reversed or collected amount Method
Total 0.00 --
(3) The Actual Write-off Accounts Receivable
Unit: RMB
Item Amount
Clearing and write-off of subsidiaries 670,608.53
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
Notes of the write-off the accounts receivable:
135
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
The Company Cleared subsidiaries under the liquidation procedure and wrote-off external accounts receivable during the Reporting
Period, for details, see Notes (VIII) 5.
(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 bad
end balance of the debt provision
accounts receivable (%)
Shenzhen Jiyong Properties & Resources 93,811,328.05 62.75 93,811,328.05
Development Company
Taobao (China) Software Co., Ltd 3,562,704.57 2.38 106,881.14
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 1.90 2,836,561.00
Shenzhen Lunan Industry Development 2,818,284.84 1.89 2,818,284.84
Co., Ltd.
Shenzhen Branch of Aramark 1,414,479.14 0.95 42,434.37
Customer Service Industry Co., Ltd
Total 104,443,357.60 69.87 99,615,489.40
(5) Account Receivable which Terminate the Recognition owning to the Transfer of the Financial Assets
Not applicable
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Accounts Receivable
Not applicable
Other notes:
Not applicable
6. Prepayment
(1) Listed by Aging Analysis
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 16,414,273.12 58.31% 93,372,946.66 77.47%
1 to 2 years 11,704,985.06 41.58% 19,637,116.05 16.29%
2 to 3 years 20,656.62 0.07% 6,602,570.30 5.48%
Over 3 years 10,041.80 0.04% 919,642.37 0.76%
136
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Total 28,149,956.60 -- 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
Name of the unit Closing balance Proportion of the total end balance of
the accounts receivable (%)
Prepayment of taxes 26,836,297.20 95.33
State Grid Chongqing Electric Power Co., Ltd 475,000.00 1.69
Shenzhen Tianfu Fire Engineering Co., Ltd 266,000.00 0.94
Yangzhou Zhongyou Construction Projects 147,087.38 0.52
Co., Ltd
Shenzhen Jian’an (Group) Co., Ltd 116,000.00 0.41
Total 27,840,384.58 98.89
Other notes:
The balance of prepayment of taxes of the Company still didn’t reach the prepaid various taxes, like business taxes, Urban
construction tax, and educational surtax of prepayment of real estate projects with according the recognition of income conditionsto
tax law
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:
8. Dividend Receivable
(1) Dividend Receivable
Unit: RMB
Item (or investees) Closing balance Opening balance
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(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:
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 Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with significant
21,046,8 21,046,8 34,970, 34,970,06
single amount with 15.94% 100.00% 53.19% 100.00%
88.91 88.91 067.20 7.20
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
105,826, 14,481,0 91,345,78 21,071, 11,528,71 9,542,311.3
provision according 80.16% 13.68% 32.05% 54.71%
852.42 69.58 2.84 030.28 8.98 0
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 5,144,05 5,144,05 9,709,5 9,709,533
3.90% 100.00% 14.76% 100.00%
which bad debt 9.49 9.49 33.34 .34
provision separately
accrued
132,017, 40,672,0 91,345,78 65,750, 56,208,31 9,542,311.3
Total 100.00% 30.81% 100.00% 85.49%
800.82 17.98 2.84 630.82 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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
receivable (classified by Other accounts
Bad debt provision Withdrawal proportion Reason
units) receivable
Shenzhen Shengfenglu,
No executable finance
Guomao Jewel & Gold 6,980,273.01 6,980,273.01 100.00%
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.
Hong Kong Yueheng Unrecoverable for a long
3,271,837.78 3,271,837.78 100.00%
Development Co., Ltd. term
Dameisha Tourism Projects construction ce
2,576,445.69 2,576,445.69 100.00%
Center ased
Projects construction
Elevated Train Project 2,542,332.43 2,542,332.43 100.00%
ceased
Total 21,046,888.91 21,046,888.91 -- --
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) 88,732,307.99 2,661,969.23 3.00%
Subtotal within 1 year 88,732,307.99 2,661,969.23 3.00%
1 to 2 years 3,711,862.45 371,186.25 10.00%
2 to 3 years 1,975,834.13 592,750.25 30.00%
3 to 4 years 738,912.00 369,456.00 50.00%
4 to 5 years 911,140.00 728,912.00 80.00%
Over 5 years 9,756,795.85 9,756,795.85 100.00%
Total 105,826,852.42 14,481,069.58 13.68%
Notes of the basis of recognizing the group:
The basis recognizing the group refers to Notes V. 11 of Section XI of the report.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
139
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during this Reporting Period was of RMB 3,434,274.27; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Of which significant amount of the reversed or collected:
Unit: RMB
Name of units Reversed or collected amount Method
Total 0.00 --
(3) Particulars of the Actual Write-off Other Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
Clearing of subsidiaries 9,360.00
Of which the significant write-off other accounts receivable:
Unit: RMB
Whether occurred
Name of units Nature Amount Reason Process from the related
transactions
Notes of write-off other accounts receivable:
In the Reporting Period, The provision for bad debt was RMB3,434,274.27; the claimable assets in foreign
currency receivable, provision for bad debt, translation of exchange rate, and translation of foreign currency
statement decreased RMB323,683.97 of bad debt provision; converting bad debt provision RMB8,586,848.00 in
original value into other current assets (see (VII) 6. Note 2) because the court concluded the procedure for
bankruptcy of Anhui Nanpeng Papermaking Co., Ltd; write-off accounts receivable decreased RMB9,360.00 of
bad debt provision; changes of consolidated scope decreased RMB10,050,683.84 of bad debt provision.
(4) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Closing book balance Opening book balance
Margin 12,215,257.47 12,050,550.05
Pretty cash borrowing 1,546,769.34 394,894.05
Accounts receivable of the related
1,747,264.25 11,556,264.65
companies
Accounts receivable of the non-related
116,508,509.76 41,748,922.07
companies
Total 132,017,800.82 65,750,630.82
140
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(5) The Top Five Other Account Receivable Classified by Debtor at Period-end
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 (%)
Accounts receivable
Shenzhen Bus Group
of the non-related 79,416,489.83 Within 1 year 60.16% 2,382,494.69
Co., Ltd
companies
Shenzhen
Accounts receivable
Shengfenglu,
of the non-related 6,980,273.01 Over 5 years 5.29% 6,980,273.01
Guomao Jewel &
companies
Gold Co., Ltd.
Shanghai Yutong
Accounts receivable
Real estate
of the non-related 5,676,000.00 Over 5 years 4.30% 5,676,000.00
development Co.,
companies
Ltd.
Shenzhen
Accounts receivable
International Trade
of the non-related 3,800,000.00 Within 1 year 2.88% 114,000.00
Centre Car Industry
companies
Co., Ltd
Hong Kong Yueheng Accounts receivable
Development Co., of the non-related 3,271,837.78 Over 5 years 2.48% 3,271,837.78
Ltd. companies
Total -- 99,144,600.62 -- 75.11% 18,424,605.48
(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
Not applicable
(7) Other Account Receivable which Terminate the Recognition owning to the Transfer of the Financial
Assets
Not applicable
141
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(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
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Costs of
522,188,965.52 6,648,404.13 515,540,561.39 1,602,135,700.14 23,285,718.43 1,578,849,981.71
development
Developing
1,365,998,591.00 31,737,353.10 1,334,261,237.90 1,187,426,583.83 181,738,984.75 1,005,687,599.08
properties
Raw materials 1,157,601.08 506,000.68 651,600.40 1,230,918.63 484,743.69 746,174.94
Inventory good 37,870.66 37,870.66 64,935.50 64,935.50
Low-value
consumption 180,774.01 180,774.01 309,830.42 309,830.42
goods
Total 1,889,563,802.27 38,891,757.91 1,850,672,044.36 2,791,167,968.52 205,509,446.87 2,585,658,521.65
Disclosing main items of “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 08/01/201 11/30/201 658,439,0 546,486,8 652,374,5 105,887,6 Others
142
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Properties 5 7 00.00 49.54 45.06 95.52
&
Resources
Hupanyu
jing
Phase II
Shenzhen
Properties
Bank
& 01/01/201 07/31/201 861,590,0 698,021,2 823,606,4 125,585,2 30,539,39
loans;
Resources 2 7 00.00 32.73 99.60 66.87 2.65
others
Songhu
Langyuan
Shenzhen
Properties
& 03/01/201 03/31/201 1,071,390 236,415,3 164,476,3 400,891,6 3,858,872
Others
Resources 4 9 ,000.00 19.90 47.65 67.55 .36
Jinling
Holiday
Hainan
6,648,404 6,648,404
Qiongsha Others
.13 .13
n Land
Fuchang
12/01/201 06/30/202 904,390,0 5,940,627 6,024,627
Phase II 84,000.00 Others
8 1 00.00 .11 .11
Land
Shenhui
36,966,04 36,966,04
Garden Others
0.89 0.89
Land
Shenzhen
Properties
&
170,000,0 71,657,22 71,658,22
Resources 1,000.00 Others
00.00 5.84 5.84
Banshan
yujing
Phase II
3,665,809 1,602,135 1,475,981 396,034,3 522,188,9 34,398,26
Total -- -- --
,000.00 ,700.14 ,044.66 10.04 65.52 5.01
Disclosing main items of “Developing properties” in the following format:
Unit: RMB
Accumulative Of which: amount
Name of Date of Opening
Increase Decrease Closing balance amount of of capitalized
project completion balance
capitalized interests for this
143
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
interests period
Internationa
l Trade
12/31/1995 7,372,250.95 2,533,167.85 4,839,083.10
Center
Plaza
Huangyuyu
06/30/2001 790,140.58 790,140.58
an A Area
Podium
Building of
11/30/1999 645,532.65 645,532.65
Fuchang
Building
Shenzhen
Properties
&
06/30/2010 692,134.84 692,134.84
Resources
Xihua
Town
Shenzhen
Properties
&
Resources 12/31/2012 27,154,592.60 27,154,592.60 83,077,702.96
Langqiao
Internationa
l
Shenzhen
Properties
&
112,011,916.1
Resources 06/30/2015 12,986,211.12 99,025,705.00 10,446,911.43
2
Hupan
Yujing
Phase I
Shenzhen
Properties
&
400,752,753.4 159,808,738.6
Resources 10/31/2016 240,944,014.85 14,633,486.15
6 1
Front Sea
Harbor
Garden
Shenzhen
Properties 635,013,998.4 455,275,160.3
11/30/2016 179,738,838.08 27,205,315.95
& 0 2
Resources
144
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Banshan
Yujing
Phase I
Shenzhen
Properties
& 823,606,499.6 666,805,759.5
07/31/2017 156,800,740.01 30,539,392.65
Resources 0 9
Songhu
Langyuan
Shenzhen
Properties
& 652,374,545.0
11/30/2017 652,374,545.06
Resources 6
Hupanyujin
g Phase II
Other
12/31/2004 2,993,264.23 2,993,264.23
projects
1,187,426,583. 1,475,981,044. 1,297,409,037.
Total -- 1,365,998,591.00 165,902,809.14
83 66 49
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
Other
decrease of
provision for
falling price
Costs of 23,285,718 of products in
-6,739,651.30 9,897,663.00 6,648,404.13
development .43 development
was because
the products
in
development
145
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
converted
into the
finished
products after
being
completed
and checked
in the
Reporting
Period.
Provisions of
inventory
falling price
for original
products in
development
Developing 181,738,98 have
-52,845,659.66 9,897,663.00 107,053,634.99 31,737,353.10
properties 4.75 converted
into
provisions of
falling price
for finished
development
products.
Raw materials 484,743.69 21,256.99 506,000.68
205,509,44
Total -59,564,053.97 9,897,663.00 107,053,634.99 9,897,663.00 38,891,757.91 --
6.87
Classification by main project:
Unit: RMB
Opening Increased amount Decreased amount Closing
Name of project Remarks
balance Withdrawal Others Write-off Others balance
Hainan 6,648,404.
6,648,404.13
Qiongshan Land 13
Shenzhen
Properties & 179,635,70
-50,829,722.96 106,966,291.99 21,839,690.10
ResourcesBansh 5.05
an Yujing Phase I
Shenzhen
Properties & 2,103,280.
-2,015,937.00 87,343.00 0.00
ResourcesHupan 00
Yujing Phase I
146
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Other
increase or
decrease was
because the
Shenzhen products in
Properties & development
16,637,314
ResourcesBansh -6,739,651.00 9,897,663.00 9,897,663.00 9,897,663.00 converted
.00
an Yujing Phase into the
II finished
products after
being
completed
and checked.
205,024,70
Total -59,585,310.96 9,897,663.00 107,053,634.99 9,897,663.00 38,385,757.23 --
3.18
(3) Rate of Borrowing Capitalization in Closing Balance of the Inventory
The closing balance of the inventory included a total amount of the capitalized borrowings of RMB28,155,802.27,
details were listed as follows:
Category Item Accumulative Period-begin Increase Decrease Period-end
amount
Completed Banshan Yujing I 27,205,315.95 27,205,315.95 19,997,561.00 7,207,754.95
development
product
Completed Qianhai Gangwan 14,633,486.15 8,369,227.07 3,337,408.90 5,031,818.17
development
product
Development Golden Collar’s 3,858,872.36 3,858,872.36 3,858,872.36
product in progress Resort
Completed Songhu Langyuan 30,539,392.65 30,539,392.65 26,034,502.41 4,504,890.24
development
product
Completed Langqiao 83,077,702.96 4,655,259.52 4,655,259.52
development International
product
Completed Hupan Yujing I 10,446,911.43 3,230,742.76 333,535.73 2,897,207.03
development
product
Total 169,761,681.50 77,858,810.31 49,703,008.04 28,155,802.27
147
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(4) Inventory Limit
Disclosed by project
Unit: RMB
Name of project Opening balance Closing balance Reason for the Limit
Guarantee for property
conservation, refer to Part XI
Completed development product 4,839,083.09 4,839,083.09
Financial Statement-XIV-2-(1)
for details
Total 4,839,083.09 4,839,083.09 --
(5) Completed Unsettled Assets Formed from the Construction Contact at the Period-end
Unit: RMB
Item Amount
Other notes:
Not applicable
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. Held-for-sale Assets
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
148
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
1. Original value of the assets group held
69,437,140.28
to distribute to the owners-Hainan Xinda
Impairment provision of the assets
group held to distribute to the -69,437,140.28
owners-Hainan Xinda
2. Original value of the assets group
(investment to Hainan Xinda and accounts 69,437,140.28
receivable) held to cancel after verification
Depreciation reserves of the assets
group (investment in Hainan Xinda and
-69,437,140.28
accounts receivable) held to cancel after
verification
3. Original value of the assets group
(investment to Nanpeng Papermaking
21,949,664.00
and accounts receivable) held to cancel
after verification
Depreciation reserves of the assets
group (investment in Nanpeng
-21,949,664.00
Papermaking and accounts receivable)
held to cancel after verification
4. Original value of the assets group
(investment to International Trade Industry
6,034,625.03 6,034,625.03
and accounts receivable) held to cancel
after verification
Depreciation reserves of the assets
group (investment in International Trade
-6,034,625.03 -6,034,625.03
Industry and accounts receivable) held to
cancel after verification
5. Original book value of the assets group
(accounts receivable from Jintian Industry)
53,034,143.94 53,658,578.72
held to cancel after verification and other
accounts receivable
Bad-debt provision for assets (accounts
receivable from Jintian Industry) held to
-53,034,143.94 -53,658,578.72
cancel after verification and other accounts
receivable
6. Pre-paid VAT 12,301,387.50 10,727,007.94
7. Deducted input tax 69,433.47 250,549.21
Total 12,370,820.97 10,977,557.15
Other notes:
149
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Note 1: The asset group to be written off (investment and receivables for Hainan Xinda), which was reported as
long-term equity and other receivables, is a asset group that was reported as other current asset - held to be
allocated to the owners of Hainan Xinda since 2014 after the bankruptcy liquidation procedures of the Company
subsidiary Hainan Xinda Development Corporation (hereinafter referred to as Hainan Xinda) were started in 2014.
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 and other receivables for Hainan Xinda. As the
verification process of the Company has not been completed, the asset group was reported as other current assets -
to be written off, and the list of specific assets is 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
Notes 2: Assets group held to cancel after verification (investment in Nanpeng Papermaking and accounts
receivable) were the long-term equity investment and the other accounts receivable of the original associated
enterprise-Anhui Nanpeng Papermaking Co., Ltd. which was judged by Anhui Huinan Intermediate People’s
Court that its bankruptcy proceedings were terminated in August 2017 and owning to the cancellation and
verification process had not been complete, the above assets were reported as the other current assets-assets group
held to cancel after verification. The specific assets were listed as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 13,824,000.00 13,824,000.00
Other accounts receivable 8,125,664.00 8,125,664.00
Total 21,949,664.00 21,949,664.00
Notes 3: Assets group held to cancel after verification (investment in International Trade Industry and accounts
receivable) 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 liquidation administrator in Apr. 2015 and owning to the cancellation and verification
process had not been complete, the above assets were reported as the other current assets-assets group held to
cancel after verification. The specific assets were listed 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
Notes 4: Assets group held to cancel after verification (accounts receivable from Jintian Industry) were the other
accounts receivable from Shenzhen Jintian Industry (Group) Co., Ltd. which was judged by the court that its
reforming were planned to be completed in Feb. 2016 and owning to the cancellation and verification process had
not been complete, the above assets were reported as the other current assets-assets group held to cancel after
verification.
150
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
20,462,995.80 16,871,786.60 3,591,209.20 35,801,912.64 18,298,198.50 17,503,714.14
instruments
Measured by fair
3,591,209.20 3,591,209.20 3,003,714.14 3,003,714.14
value
Measured by cost 16,871,786.60 16,871,786.60 32,798,198.50 18,298,198.50 14,500,000.00
Total 20,462,995.80 16,871,786.60 3,591,209.20 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
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
Cost of the equity
instruments/amortized
3,591,209.20 3,591,209.20
cost of the debt
instruments
Fair value 3,591,209.20 3,591,209.20
(3) Available-for-sale Financial Assets Measured by Cost at the Period-end
Unit: RMB
Book balance Depreciation reserves Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
in in among the Reporting
investees Period
North
Machinery 3,465,000. 3,465,000. 3,465,000. 3,465,000.
12.66%
(Group) 00 00 00 00
Co., Ltd.
Guangdon 8,780,645. 8,780,645. 8,780,645. 8,780,645.
8.47%
g Huayue 20 20 20 20
151
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Real
Estate Co.,
Ltd.
Shenzhen
Internation
al Trade
8,500,000. 8,500,000.
Center
00 00
Petroleum
Company
Limited
Guangzho
u
6,000,000. 6,000,000.
Lishifeng
00 00
Automobil
e Co., Ltd.
Sanya East
1,350,000. 1,119,500. 1,350,000. 1,119,500.
Travel 230,500.00 230,500.00 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 5,689.32 81,155.34 86,844.66 5,689.32 81,155.34 10.00%
Enterprise
Co., Ltd.
Chongqing
Guangfa
Real estate 2,635,180. 2,462,546. 2,635,180. 2,462,546.
172,634.55 172,634.55 27.25%
developme 90 35 90 35
nt Co.,
Ltd.
Saipan 1,962,832. 1,834,244. 1,962,832. 1,834,244.
128,588.03 128,588.03 30.00%
Project 65 62 65 62
32,798,198 15,926,411 16,871,786 18,298,198 1,426,411. 16,871,786
Total --
.50 .90 .60 .50 90 .60
(4) Changes of the Impairment of the Available-for-sale Financial Assets during the Reporting Period
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
152
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Withdrawn impairment
balance at the 18,298,198.50 18,298,198.50
period-begin
Decrease in the
1,426,411.90 1,426,411.90
Reporting Period
Withdrawn impairment
16,871,786.60 16,871,786.60
balance at the 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
Note 1: The Company measured the equity investment without quote in active market and fair value measured
reliably by cost. Besides, there’s no disposal planning of equity investment in the foreseeable future.
Notes 2: The reason of the changes of the long-term equity investment of Macau Huashen Investment Co., Ltd.,
Saipan Project and Chongqing Guangfa Housing Development Co., Ltd. and the impairment provision was
occurred owing to the discount of the foreign currency statement.
Note 3: The decrease of the cost of equity instrument and impairment in Shenzhen International Trade Center
Petroleum Company Limited, Guangzhou Lishifeng Automobile Co., Ltd. and Sanya East Travel Co., Ltd. was
caused by the change of consolidation scope.
Notes 4: The available-for-sale financial assets measured in fair value held by the Company were based on the
final execution of The Reorganization Plan of Gintian Industry (Group) Co., Ltd, the Company received 772,717
tradable A shares, 412,123 non-tradable A shares and 447,217 B shares distributed by Gintian Industry on January
26, 2016, received 163,488 tradable A shares, 83,239 non-tradable A shares and 92,238 B shares additionally
distributed on Mar. 15, 2017. The cost of available-for-sale financial assets was recognized based on the price
issued on the last trading date before the trading suspension of Gintian Industry (Dec. 10, 2014), RMB2.09 per A
share and USD0.17 per B share.
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
153
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(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 as 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
(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
Investee 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
154
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
I. Joint ventures
Jifa
Warehous 32,263,24 1,235,372 33,498,61
e Co., 0.61 .15 2.76
Ltd.
Shenzhen
Tian’an
Internatio
nal
4,488,650 743,129.6 5,231,780
Building
.51 9 .20
Property
Managem
ent Co.,
Ltd.
36,751,89 1,978,501 38,730,39
Subtotal
1.12 .84 2.96
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
Papermak 13,824,00
ing 0.00
making
Co., Ltd.
32,807,61 18,983,61 18,983,61
Subtotal
4.14 4.14 4.14
69,559,50 1,978,501 57,714,00 18,983,61
Total
5.26 .84 7.10 4.14
Other notes
For details about the long-term equity investment transferred out currently from associated enterprises and the
depreciation reserves, please refer to (VII) 13, Note2.
155
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
37,071,113.95 37,071,113.95
of the period
(1) Outsourcing
(2) Transfer of
inventory\fixed
37,071,113.95 37,071,113.95
assets\project under
construction
(3) Increased from
enterprise merger
3. Decreased amount
26,873,150.87 4,084,485.00 30,957,635.87
of the period
(1) Disposal
(2) Other transfer
Decrease of changes in
26,136,144.39 4,084,485.00 30,220,629.39
consolidation scope
Influence of foreign
currency statement 133,914.18 133,914.18
translation
Other decrease 603,092.30 603,092.30
4. Closing balance 682,062,541.24 3,885,469.40 685,948,010.64
II. Accumulative
depreciation and
accumulative
amortization
1.Opening balance 246,155,511.74 5,878,407.79 252,033,919.53
2. Increased amount
23,406,879.76 497,800.12 23,904,679.88
of the period
(1) Withdrawal or
23,406,879.76 497,800.12 23,904,679.88
amortization
156
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
3. Decreased
13,811,019.17 3,029,127.65 16,840,146.82
amount of the period
(1) Disposal
(2) Other transfer
Decrease of changes in
13,560,358.97 3,029,127.65 16,589,486.62
consolidation scope
Other decrease 250,660.20 250,660.20
4. Closing balance 255,751,372.33 3,347,080.26 259,098,452.59
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
426,311,168.91 538,389.14 426,849,558.05
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 Reason for fair value
Building income Opening Closing fair Range of fair
Name of project cal changes and report
area during this fair value value value changes
location index
Reporting
157
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
Note 1: The current other decrease of original value and accumulative depreciation and amortization was
generated from the transfer of houses from lease to self using. In addition, the original value and accumulative
depreciation and amortization were transferred to fixed assets to measure.
Note 2: The investment property restricted was caused by the guarantee for property conservation. For details,
please refer to Part XI Financial Statement-VII-78 and XIV-2-(1) Events.
19. Fixed Assets
(1) List of Fixed Assets
Unit: RMB
Electronic
Houses and Transportation Decoration of the
Item equipment and other Total
buildings equipment fixed assets
equipment
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
8,096,568.52 432,070.17 1,637,655.34 10,166,294.03
amount of the period
(1) Purchase 7,493,476.22 432,070.17 1,637,655.34 9,563,201.73
(2) Transfer of
project under
construction
(3) Enterprises
combination increase
Transfer of investment
603,092.30 603,092.30
properties
3. Decreased
26,701,283.07 54,407,338.20 20,805,386.85 2,287,676.31 104,201,684.43
amount of the period
(1) Disposal or
105,559.38 643,408.70 748,968.08
scrap
158
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Decrease of changes
in consolidation scope
and influence of 26,701,283.07 54,301,778.82 20,161,978.15 2,287,676.31 103,452,716.35
foreign currency
statement translation
4. Closing balance 92,775,910.74 9,058,794.34 15,771,409.46 4,163,727.48 121,769,842.02
II. Accumulated
desperation
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 amount
2,963,957.11 10,122,170.88 1,526,727.62 331,728.90 14,944,584.51
of the period
(1) Withdrawal 2,713,296.91 10,122,170.88 1,526,727.62 331,728.90 14,693,924.31
Transfer of investment
250,660.20 250,660.20
properties
3. Decreased
14,462,107.03 28,675,679.61 19,083,896.00 2,173,185.71 64,394,868.35
amount of the period
(1) Disposal or
105,559.38 559,854.81 665,414.19
scrap
Decrease of changes
in consolidation scope
and influence of 14,462,107.03 28,570,120.23 18,524,041.19 2,173,185.71 63,729,454.16
foreign currency
statement translation
4. Closing balance 69,068,851.85 7,460,443.52 11,948,746.10 3,869,182.06 92,347,223.53
III. Depreciation
reserves
1. Opening balance 75,717.16 75,717.16
2. Increased amount
of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal or
scrap
4. Closing balance 75,717.16 75,717.16
IV. Book value
159
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
1. Closing book
23,707,058.89 1,598,350.82 3,746,946.20 294,545.42 29,346,901.33
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
Accumulated Depreciation
Item Original book value Book value Remark
depreciation reserves
Houses and
4,059,207.77 2,415,310.73 1,643,897.04
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 Certificate of Property
Unit: RMB
Item Book value Reason
Other notes
The fixed assets restricted were caused by the guarantee for properties. For details, please refer to Part XI Financial Statement-78 and
XIV-2-(1) Events.
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
160
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(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 Withdrawn amount Reason
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
Item Closing balance Opening balance
Transportation equipment cleaning 85,556.34
Total 85,556.34
Other notes:
23. Productive Biological Assets
(1) Productive Biological Assets Adopted Cost Measurement Mode
□ Applicable √ Not applicable
161
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(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
Business license of
Item Land use right Patent Non-patents Total
the taxies
I. Original book
value
1. Opening
170,866,146.80 170,866,146.80
balance
2. Increased
amount of the period
(1) Purchase
(2) Internal R &D
(3) Increase from
enterprise
combination
3. Decrease in the
170,866,146.80 170,866,146.80
Reporting Period
(1) Disposal
Decrease of changes
in consolidation 170,866,146.80 170,866,146.80
scope
4. Closing balance
II. Total accrued
amortization
1. Opening
85,378,565.85 85,378,565.85
balance
2. Increased
6,556,461.12 6,556,461.12
amount of the period
162
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(1) Withdrawal 6,556,461.12 6,556,461.12
3. Decrease in the
91,935,026.97 91,935,026.97
Reporting Period
(1) Disposal
Decrease of changes
in consolidation 91,935,026.97 91,935,026.97
scope
4. Closing balance
III. Depreciation
reserves
1. Opening
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decrease in the
Reporting Period
(1) Disposal
4. Closing balance
IV. Book value
1. Book value of the
period-end
2. Book value of the
85,487,580.95 85,487,580.95
period-begin
The proportion of the intangible assets formed from the internal R&D through the Company to the balance of the intangible assets at
the period-end was 0.00%.
(2) Details of Land Use Right Failed to Accomplish Certificate of Title
Unit: RMB
Item Book value Reason
Other notes:
26. R&D Expenses
Unit: RMB
163
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Opening Closing
Item Increased amount Decrease
balance balance
Other notes:
Not applicable
27. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
(2) Impairment Provision of Goodwill
Unit: RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses:
Not applicable
Other notes
28. Long-term Unamortized Expenses
Unit: RMB
Amortization
Item Opening balance Increased amount Decrease Closing balance
amount
Facilities
reconstruction 1,124,345.13 172,976.28 951,368.85
expense
Renovation costs 372,045.98 325,741.79 46,304.19
Total 1,496,391.11 498,718.07 46,304.19 951,368.85
Other notes
Other decrease was caused by the change of consolidation scope.
164
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
127,814,574.78 31,824,813.21 125,379,771.44 31,287,140.16
provision
Unrealized profits of
50,232,811.52 12,558,202.88 49,673,467.80 12,418,366.95
internal transactions
Deductible losses 325,096,396.59 81,274,099.15 29,134,805.61 7,283,701.41
Accrued land VAT 1,048,229,108.99 262,057,277.25 1,004,734,891.74 251,183,722.93
Estimated profit
calculated at pre-sale
1,158,823.50 289,705.88 289,951,359.60 72,487,839.90
revenue of property
enterprises
Payroll payable unpaid
71,997.16 17,999.27 143,852.61 35,963.15
but withdrawn
Accrued liabilities 5,201,315.32 1,300,328.83
Total 1,552,603,712.54 388,022,097.64 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 Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
The book value of fixed
assets is larger than tax 34,664.60 8,668.15 57,950.04 14,487.51
basis
Total 34,664.60 8,668.15 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
Item deferred income tax income tax assets or deferred income tax income tax assets or
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
165
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
the period-end the period-end the period-begin the period-begin
Deferred income tax
388,022,097.64 375,997,063.33
assets
Deferred income tax
8,668.15 14,487.51
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Closing balance Opening balance
Deductible loss 264,391,115.35 146,287,359.19
Impairment of assets 241,361,068.56 423,062,905.20
Expected profit of the real estate business
72,335,705.85 3,948,406.50
pre sale income calculation
Unrealized profit of internal transaction 15,134,932.80 22,979,696.86
Total 593,222,822.56 596,278,367.75
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Years Closing amount Opening amount Remark
2017 6,311,349.73 2012 deductible loss
2018 8,320,354.75 10,672,025.10 2013 deductible loss
2019 4,766,878.24 9,167,690.00 2014 deductible loss
2020 4,461,538.13 100,639,142.29 2015 deductible loss
2021 6,158,740.02 19,497,152.07 2016 deductible loss
2022 240,683,604.21 2017 deductible loss
Total 264,391,115.35 146,287,359.19 --
Other notes:
30. Other Non-current Assets
Unit: RMB
Item Closing balance Opening balance
Housing purchase prepayment 7,271,224.00
Total 7,271,224.00
Other notes:
166
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 total amount of the overdue but not return short-term borrowings at the period-end was of RMBXXX, of which the situation of
the significant overdue but not return short-term borrowings was as follows:
Unit: RMB
Entity Closing balance Borrowing rate Overdue time Overdue rate
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
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 RMB0.00.
35. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Closing balance Opening balance
167
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Within 1 year (including 1 year) 210,969,598.73 298,389,610.44
1 to 2 years (including 2 years) 197,803,229.69 44,826,093.11
2 to 3 years (including 3 years) 17,921,262.66 9,793,533.80
3 to 4 years (including 4 years) 5,988,339.85 12,899,987.95
4 to 5 years (including 5 years) 5,508,792.28 26,356,677.30
Over 5 years 53,772,080.41 27,660,236.79
Total 491,963,303.62 419,926,139.39
(2) Notes of the Accounts Payable Aging Over One Year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
The Second Construction Co., Ltd. of
China Construction Third Engineering 81,258,600.00 Unsettled
Bureau
Jinchen Group Limited Company 58,057,084.80 Unsettled
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Bureau
Hunan Construction Engineering Group 12,107,087.00 Unsettled
Shenzhen Risheng Gardening Co., Ltd. 7,418,373.63 Unsettled
Total 183,841,145.43 --
Other notes:
36. Advance from Customers
(1) List of Advance from Customers
Unit: RMB
Item Closing balance Opening balance
Within 1 year (including 1 year) 278,516,155.14 1,828,477,521.99
1 to 2 years (including 2 years) 236,833,304.63 401,822,962.96
2 to 3 years (including 3 years) 898,707.77 663,372.58
3 to 4 years (including 4 years) 379,173.45 36,216.10
4 to 5 years (including 5 years) 36,216.10 950.00
Over 5 years 321,154.02 320,204.02
Total 516,984,711.11 2,231,321,227.65
168
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(2) Significant Advance from Customers Aging Over One Year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
SZPRD-Hupan Yujing II 206,946,357.00 Unsettled
Total 206,946,357.00 --
(3) Particulars of Settled but Unfinished Projects Formed by Construction Contract at Period-end
Unit: RMB
Item Amount
Other notes:
Not applicable
The Company is required to comply with the disclosure requirements stipulated in Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 3-Listed Company Engaged in Property Development
Prepayment of the top 5 sale of real estate projects:
Unit: RMB
Estimate finished
No. Item Opening balance Closing balance Presale proportion
time
SZPRD –Hupan
1 206,946,357.00 455,923,289.00 11/30/2017 65.84%
Yujing II
SZPRD –Banshan
2 26,622,710.00 18,346,748.00 11/30/2016 80.68%
Yujing I
SZPRD -Hupan
3 4,692,359.00 7,968,002.00 06/30/2015 78.79%
Yujing I
SZPRD –Qianhai
4 931,748,242.00 4,981,735.00 10/31/2016 66.42%
Gangwan
SZPRD –Songhu
5 1,034,997,112.00 604,765.00 07/31/2017 85.31%
Langyuan
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 66,366,751.10 334,163,796.70 309,033,985.41 91,496,562.39
II. Post-employment
571,072.41 29,131,201.89 29,225,162.15 477,112.15
benefit-defined
169
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
contribution plans
III. Termination benefits 403,074.00 883,380.12 1,193,654.12 92,800.00
Total 67,340,897.51 364,178,378.71 339,452,801.68 92,066,474.54
(2) List of Short-term Salary
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus,
59,732,357.24 292,797,780.36 269,081,063.88 83,449,073.72
allowance, subsidy
2. Employee welfare 9,936,991.18 9,936,991.18
3. Social insurance 65,535.92 11,073,081.96 11,138,362.93 254.95
Including: 1. Medical
56,896.26 9,150,323.51 9,207,219.77
insurance premiums
Work-related injury
2,395.63 802,960.18 805,355.81
insurance
Maternity insurance 6,244.03 816,714.64 822,703.72 254.95
Other social insurance 303,083.63 303,083.63
4. Housing fund 879,155.76 9,512,676.38 9,887,616.02 504,216.12
5. Labor union budget
and employee education 5,689,702.18 8,946,964.05 7,093,648.63 7,543,017.60
budget
8. Non-monetary benefits 1,896,302.77 1,896,302.77
Total 66,366,751.10 334,163,796.70 309,033,985.41 91,496,562.39
(3) List of Drawing Scheme
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Basic pension benefits 565,083.33 23,734,039.40 23,822,010.58 477,112.15
Unemployment insurance 5,989.08 868,558.23 874,547.31
Annuity 4,528,604.26 4,528,604.26
Total 571,072.41 29,131,201.89 29,225,162.15 477,112.15
Other notes:
The demission welfare withdrawn by relieving the labor relationship was of RMB883,380.12 and the unpaid
amount at the period-end was of RMB92,800.00.
170
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
38. Taxes Payable
Unit: RMB
Item Closing balance Opening balance
VAT 6,311,231.88 4,222,996.14
Corporate income tax 135,064,846.34 222,564,198.00
Personal income tax 829,379.86 748,140.79
Urban maintenance and construction tax 317,880.65 75,644.46
Stamp tax 36,803.91
Education Surcharge 144,949.71 39,326.29
Local education surtax 105,286.00 25,127.18
Land VAT 1,048,229,108.99 1,025,601,114.80
Property tax 1,097,050.21 1,153,374.78
Levee fee 1,462.07 2,534.58
Other 449,257.04 566,927.71
Total 1,192,587,256.66 1,254,999,384.73
Other notes:
Note 1: Some of the Company projects did not meet the land value-added tax liquidation requirements, but the
Company has provided for a land value-added tax of RMB 1,048,229,108.99 to reflect the Company operation
performance in comply with the relevant requirements of accounting standards and GSF [2006] No. 187 document
“Notice of the State Administration of Taxation on Issues Related to Liquidation Management of Land
Value-added Tax in Real Estate Development Enterprises”.
Note 2: The Company reports accumulative realized sales revenue of real estate development projects as income
from land tax increase, and calculated estimates deductible cost of accumulative sales area as a proportion of the
saleable area as the deductible cost of land tax increment, so as estimate the land appreciation value and the
appreciation rate of projects. Taking into account that land value-added tax may be affected by the local tax
bureau, the actual amount of payment may be higher or lower than the amount estimated on the balance sheet
date.
The estimated land value-added tax is a reasonable estimate of the land value-added tax that may be paid in the
future, which is made according to the requirements of accounting standards, the matching principle and the
principle of prudence. The estimate is the Company accounting process and has nothing to do with the Company
current tax liability.
39. Interest Payable
Unit: RMB
Item Closing balance Opening balance
Particulars of significant overdue unpaid interest:
Unit: RMB
171
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Entity Overdue amount Overdue reason
Other notes:
Not applicable
40. Dividends Payable
Unit: RMB
Item Closing balance Opening balance
Common stock dividends 29,642.40
Total 29,642.40
Other notes: 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 35,896,553.11 34,768,894.12
Accounts receivable of the related
34,511,011.04 31,511,011.04
companies
Accounts receivable of the non-related
40,077,862.40 49,280,571.06
companies
Other 12,106,931.43 16,521,698.32
Total 122,592,357.98 132,082,174.54
(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. 26,296,665.14
payment period
Tianan International Building Property Come-and-go accounts without specific
5,214,345.90
Management Company of Shenzhen payment period
Retail deposit from lease 4,568,481.08 Margin within the leasing period
Rainbow Department Store Co., Ltd 2,380,000.00 Margin within the leasing period
Shenzhen Branch of CPIC 1,022,842.00 Margin within the leasing period
Total 39,482,334.12 --
Other notes
172
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
42. Held-for-sale Liabilities
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
43. Non-current Liabilities Due within 1 Year
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
44. Other Current Liabilities
Unit: RMB
Item Closing balance Opening balance
Changes on short term bonds payable:
Unit: RMB
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Closing
Issue date Period current interest at current
the bond value amount balance amortizati balance
issue par period
on
Other notes:
Not applicable
45. Long-term Loan
(1) Category of Long-term Loan
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
Other notes including interest rate range:
Not applicable
173
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes on Bonds Payable (Not Including Other Financial Instrument Classified as Preferred Stock
and Perpetual Capital Securities of Financial Liabilities)
Unit: RMB
(3) Note to Conditions and Time of Share Transfer of Convertible Bonds
Not applicable
(4) Note to Other Financial Instrument Classified as Financial Liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end
Not applicable
Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end
Unit: RMB
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Notes to the basis of other financial instrument classified as financial liabilities
Not applicable
Other notes
Not applicable
47. Long-term Payable
(1) Long-term Payable Listed by Nature of the Account
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
174
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
48. Long-term Payroll Payable
(1) List of Long Term Payroll Payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes of Defined Benefit Plans
Present worth of defined benefit plans obligation:
Unit: RMB
Item Reporting period Same period of last year
Plan assets:
Unit: RMB
Item Reporting period Same period of last year
Net liabilities (net assets) of defined benefit plans
Unit: RMB
Item Reporting period Same period of last year
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and uncertainty of the
Company:
Not applicable
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans:
Not applicable
Other notes:
Not applicable
49. Special Payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance Formation reasons
Other notes:
Not applicable
50. Accrued Liabilities
Unit: RMB
Item Closing balance Opening balance Formation reasons
For details, please refer to Part
Pending litigation 5,201,315.32 XI Financial
Statement-(XIV)-2-(2)-B and
175
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
C
Total 5,201,315.32 --
Other notes, including related important assumptions and estimates of accrued liabilities:
51. Deferred Income
Unit: RMB
Item Opening balance Increase Decrease Closing balance Formation reasons
Operating license
Lease of operating
plate rental income 7,509,403.41 7,509,403.41
license plate
held to carry forward
International Trade
Lease of
Center petroleum
8,870,000.00 8,870,000.00 International Trade
rental income held to
Petroleum Company
carry forward
Total 16,379,403.41 16,379,403.41 --
Items involved in government subsidies:
Unit: RMB
Amount
Amount of Amount Related to the
Opening accrued in Amount Other Closing
Item newly accrued in assets/
balance non-business offset cost changes balance
subsidy other income income
income
Other notes:
The decrease in the Reporting Period was caused by the change of consolidation scope.
52. Other Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Utility specific fund 237,163.63 237,163.45
Housing principle fund 14,107,346.01 17,767,077.97
House warming deposit 7,220,523.83 7,135,649.65
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 27,687,597.11 27,308,410.05
Taxi Deposit 41,667,813.07
Equity of stripping the assets 16,736,122.98
Other 1,271,207.25 922,638.62
Total 54,543,253.27 115,794,291.23
176
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Other notes:
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Opening Capitalization Closing
Newly issue
balance Bonus shares of public Other Subtotal balance
share
reserves
The sum of
595,979,092.00 595,979,092.00
shares
Other notes:
54. Other Equity Instruments
(1) Basic Information of Preferred Stock, Perpetual Capital Securities and Other Financial Instruments
Outstanding Issued at Period-end
Not applicable
(2) Change List of Preferred Stock, Perpetual Capital Securities and Other Financial Instruments
Outstanding Issued at Period-end
Unit: RMB
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting period:
Not applicable
Other notes:
Not applicable
55. Capital Reserves
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 1,013,401.04 80,488,045.38
Total 119,951,533.93 1,013,401.04 118,938,132.89
Other notes, including changes and reason of change:
177
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
The decrease of other capital reserves in the Reporting Report was caused by the change of consolidation scope.
56. Treasury Stock
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
Not applicable
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: Amount
transferred
into profit and
loss in the
Amount After-tax After-tax
Opening current period Less: Closing
Item incurred attribute to attribute to
balance that income tax balance
before the parent minority
recognized expense
income tax company shareholder
into other
comprehensive
income in
prior period
II. Other comprehensive income -3,414,038. -3,414,038. -4,111,58
-697,548.70
reclassify into profits and losses 44 44 7.14
Balance arising from
-3,414,038. -3,414,038. -4,111,58
translation of foreign currency -697,548.70
44 44 7.14
financial statements
-3,414,038. -3,414,038. -4,111,58
Total of other comprehensive income -697,548.70
44 44 7.14
Other notes, including the adjustment of initial recognized amount of arbitraged item transferred from the effective part of arbitrage
profits and losses of cash flow:
58. Special Reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
Not applicable
178
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
59. Surplus Reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
253,569,569.96 46,000,000.00 299,569,569.96
reserves
Total 253,569,569.96 46,000,000.00 299,569,569.96
Notes to the surplus reserves including the notes to the increase/decrease during the Reporting Period as well as the reasons:
The increase of surplus reserves in the Reporting Period was due to the withdrawal.
60. Retained Profits
Unit: RMB
Item Reporting Period Same period of last year
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
622,962,734.37 354,857,241.74
Company
Less: Withdrawal of statutory surplus reserves 46,000,000.00 98,904,938.37
Dividend of common stock payable 107,276,236.56 47,678,327.36
Closing retained profits 1,911,318,586.37 1,441,632,088.56
List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
61. Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 2,851,768,386.62 1,609,336,288.38 2,007,281,361.26 859,628,761.18
Other operations 52,922,303.91 18,531,617.26 51,922,715.92 12,905,462.25
Total 2,904,690,690.53 1,627,867,905.64 2,059,204,077.18 872,534,223.43
179
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
The Company is required to comply with the disclosure requirements stipulated in Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 3-Listed Company Engaged in Property Development
The top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
No. Name of project Income balance
1 SZPRD-Songhu Langyuan 1,036,257,611.02
2 SZPRD-Qianhai Gangwan 909,333,541.41
3 SZPRD-Banshan Yujing I 380,251,536.20
4 SZPRD-Hupan Yujing I 14,390,960.30
62. Business Tax and Surcharges
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 9,234,208.58 7,015,709.80
Education Surcharge 4,403,393.23 3,005,932.21
Property tax 5,121,683.05 4,219,993.35
Land use tax 1,879,238.55 791,671.61
Business tax 68,915,815.45 51,018,681.65
Local education surtax 2,936,020.80 2,003,032.54
Levee fee 569,151.91
Land VAT 370,146,447.34 401,830,883.57
Other 670,156.31 1,247,029.16
Total 463,876,115.22 471,132,933.89
Other notes:
63. Sales Expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 4,790,260.31 4,610,951.37
Office expenses of operating institutions 4,911,576.76 5,916,032.75
Sales agency fee, advertising expense and
19,650,941.85 34,623,514.58
general publicity expense
Other 1,826,414.41 2,156,203.06
Total 31,179,193.33 47,306,701.76
Other notes:
180
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
64. Administration Expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 95,553,096.76 61,868,797.26
Administrative office cost 21,621,558.85 24,229,550.40
Assets amortization and depreciation
5,174,960.73 5,346,052.13
expense
Litigation costs 6,374,637.65 271,461.06
Taxes 477,624.60
Other 8,304,401.70 7,335,116.34
Total 137,028,655.69 99,528,601.79
Other notes:
65. Financial Expenses
Unit: RMB
Item Reporting Period Same period of last year
Interest expenses
Less: Interest income 25,827,011.83 22,856,495.15
Net losses of exchange 734,047.30 -205,761.64
Other 685,508.15 654,818.04
Total -24,407,456.38 -22,407,438.75
Other notes:
66. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 3,952,731.89 200,862.43
II. Inventory falling price loss -59,564,053.97 98,434,474.85
XIV. Other -1,085,618.78
Total -56,696,940.86 98,635,337.28
Other notes:
Other was generated from the impairment loss on other current assets.
181
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
67. Gains and Losses from Changes in Fair Value
Unit: RMB
Source Reporting period Same period of last year
Other notes:
Not applicable
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
1,978,501.84 2,225,713.71
accounted by equity method
Investment income received from disposal of
104,895,528.48
Long-term equity investment
Total 106,874,030.32 2,225,713.71
Other notes:
69. Return on Disposal of Assets
Unit: RMB
Resources Reporting Period Same period of last year
Return on disposal of non-current assets -11,772.11 -182,886.11
70. Other Income
Unit: RMB
Resources Reporting Period Same period of last year
71. Non-operating Gains
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Confiscated income 295,947.51 253,480.41 295,947.51
Others 1,463,947.32 1,222,818.49 1,463,947.32
Total 1,759,894.83 1,476,298.90 1,759,894.83
Government subsidies recorded into current profits and losses:
Unit: RMB
182
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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:
72. Non-operating Expenses
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Fines and fine for delaying
92,327.19 394,408.71 92,327.19
payment
Accrued liabilities losses 4,366,315.82
Other 7,625,422.97 24,462.42 7,625,422.97
Total 7,717,750.16 4,785,186.95 7,717,750.16
Other notes:
73. Income Tax Expense
(1) Lists of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 217,802,226.43 272,021,606.14
Deferred income tax expense -14,017,340.03 -135,671,190.55
Total 203,784,886.40 136,350,415.59
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Total profits 826,747,620.77
Current income tax expense accounted by tax and relevant
206,686,905.19
regulations
Influence of different tax rate suitable to subsidiary -241,068.39
Influence of income tax before adjustment -398,350.71
183
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Influence of non taxable income -494,625.46
Influence of not deductible costs, expenses and losses 2,226,043.08
Influence of deductible losses of deferred income tax assets
-12,974,319.40
derecognized used in previous period
Influence of deductible temporary difference or deductible losses
8,980,302.09
of deferred income tax assets derecognized in reporting period.
Income tax expense 203,784,886.40
Other notes
74. Other Comprehensive Income
For details, please refer to Note (VII)-57.
75. Cash Flow Statement
(1) Other Cash Received Relevant to Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Large current funds received 3,000,000.00
Interest income 25,827,011.83 22,856,495.15
Net margins, security deposit and various
2,838,483.50 3,735,622.19
special funds received
Net amount of utilities, miscellaneous
fees and accident fee and other receivables 3,585,295.28
on behalf
Other retail accounts received 6,991,846.30 1,538,745.18
Total 38,657,341.63 31,716,157.80
Notes:
(2) Other Cash Paid Relevant to Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Paying administration expenses in cash 38,821,683.72 32,688,077.92
Paying sales expenses in cash 24,407,136.09 48,106,186.66
Net margins, security deposit and various
20,314,557.26
special funds paid
Other retail accounts paid 6,611,337.86 400,419.95
184
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Total 90,154,714.93 81,194,684.53
Notes:
(3) Other Cash Received Relevant to Investment Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
(4) Other Cash Paid Relevant to Investment Activity
Unit: RMB
Item Reporting Period Same period of last year
Notes:
Not applicable
(5) Other Cash Received Relevant to Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
Not applicable
(6) Other Cash Paid Relevant to Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
Not applicable
76. 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 622,962,734.37 354,857,241.74
Add: Provision for impairment of assets -56,696,940.86 98,635,337.28
185
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Depreciation of fixed assets, of oil-gas
38,598,604.19 34,235,877.86
assets, of productive biological assets
Amortization of intangible assets 6,556,461.12 7,152,503.04
Long-term unamortized expenses 498,718.07 528,330.96
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: 11,772.11 182,886.11
negative)
Financial cost (gains: negative) 36,939.72 -62,292.86
Investment loss (gains: negative) -106,874,030.32 -2,225,713.71
Decrease in deferred income tax assets
-10,038,547.95 -135,661,692.82
(gains: negative)
Increase in deferred income tax liabilities
-5,819.36 -9,497.73
(“-” means decrease)
Decrease in inventory (gains: negative) 770,702,729.75 -250,568,299.21
Decrease in accounts receivable from
68,508,132.92 -91,868,723.73
operating activities (gains: negative)
Increase in payables from operating
-1,680,530,514.70 2,236,845,226.49
activities (decrease: negative)
Net cash flows generated from operating
-346,269,760.94 2,252,041,183.42
activities
2. Investing and financing activities that do
-- --
not involving cash receipts and payment:
3. Net increase in cash and cash equivalents -- --
Closing balance of cash 2,464,626,655.21 2,857,353,056.85
Less: Opening balance of cash 2,857,353,056.85 933,337,815.77
Net increase in cash and cash equivalents -392,726,401.64 1,924,015,241.08
(2) Net Cash Paid of Obtaining the Subsidiary
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
Not applicable
186
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(3) Net Cash Receive from Disposal of the Subsidiary
Unit: RMB
Amount
Cash or cash equivalents received currently from the disposal of the
96,661,830.00
subsidiary
Of which: --
Shenzhen International Trade Center Car Industry Co., Ltd. 86,511,657.00
Shenzhen Shenxin Taxi Co., Ltd. 10,150,173.00
Less: cash and cash equivalents held by the subsidiary on the date
28,611,459.45
of losing the controlling rights
Of which: --
Shenzhen International Trade Center Car Industry Co., Ltd. 22,864,053.76
Shenzhen Shenxin Taxi Co., Ltd. 5,747,405.69
Of which: --
Net cash received from the disposal of the subsidiary 68,050,370.55
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2,464,626,655.21 2,857,353,056.85
Including: Cash on hand 164,502.21 190,709.43
Bank deposit on demand 2,463,348,038.01 2,856,051,614.77
Other monetary funds on demand 1,114,114.99 1,110,732.65
III. Closing balance of cash and cash
2,464,626,655.21 2,857,353,056.85
equivalents
Other notes:
Cash and cash equivalents do not include the cash and cash equivalents with restricted use in the parent company
or the subsidiaries in the group.
77. Notes to Items of Changes in Owner's Equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
Not applicable
187
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
78. The Assets with the Ownership or Use Right Restricted
Unit: RMB
Item Closing book value Restricted reason
Monetary capital 12,402,160.00 Note 1
Guarantee for property conservation, refer
Inventories 4,839,083.09 to Part XI Financial Statement-XIV-2-(1)
for details
Guarantee for property conservation, refer
Fixed assets 991,135.24 to Part XI Financial Statement-XIV-2-(1)
for details
Guarantee for property conservation, refer
Investment property 43,307,641.98 to Part XI Financial Statement-XIV-2-(1)
for details
Total 61,540,020.31 --
Other notes:
Note 1: At the end of the reporting period, the restricted L/G deposits used by the Company amounted to
RMB12,402,160.00, which were the cash deposits paid by the subsidiary of the Company-Dongguan International
Trade Center Changsheng Property Development Co., Ltd. by entrusting the commercial bank to issue the
Commercial Housing Quality Guarantee Letter. Because the subsidiary of the Company - Dongguan International
Trade Center Changsheng Property Development Co., Ltd. was the real estate development enterprise with
provisional qualification, when handling the application of the pre-sale permit of the commercial residential
housing, it should submit the quality guarantee letter of the commercial residential housing after the liquidation
situation such as the enterprise bankruptcy and dissolution. The guarantee letter was the irrevocable commercial
residential quality guarantee letter, of which the guarantee period of RMB1,468,870.00 was from June 30, 2015 to
December 31, 2020 and the guarantee period of the remaining RMB10,933,290.00 was from July 1, 2015 to
December 31, 2020.
79. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Closing foreign currency Closing balance of converting
Item Exchange rate
balance to RMB
Monetary capital -- -- 50,659,691.68
HKD 60,604,966.72 0.8359 50,659,691.68
Other accounts receivable 599,237.96
Of which: HKD 91,707.93 6.5342 599,237.96
Available-for-sale financial assets 298,084.66
188
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Of which: USD 356,603.25 0.8359 298,084.66
Accounts payable 46,810.40
Of which: HKD 56,000.00 0.8359 46,810.40
Other notes:
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes into Recording Currency, Relevant
Reasons Shall Be Disclosed.
√ Applicable □ Not applicable
Item Main Recording Basis for selection
operating currency
place
Shum Yip Properties Development Co., Ltd. Hong Kong HKD Located in HK, settled by HKD
and its subsidiary
80. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Not applicable
81. Others
(1) Net profits from Discontinued Operation
As stated in Note (VIII)-1, the Company sold out the subsidiary engaged in taxies. The operating result from
discontinued business during the Reporting Period was presented as follows:
Item Reporting period Same period of last
year
I. Operating income 55,225,135.17 62,144,512.78
Less: costs and expenses 51,453,089.23 57,614,987.93
Less: withdrawal and reversal of provisions for 148,211.52 23,178.80
impairment
Add: investment income 4,091,273.59
Add: income from assets disposal 22,720.00 -165,035.16
Add: net non-operating income -123,155.82 39,535.58
II. Total profits from discontinued business 3,523,398.60 8,472,120.06
Less: income tax expenses 1,107,391.48 1,967,700.77
III. Net profits of discontinued operation 2,416,007.12 6,504,419.29
Of which: net profits from discontinued operation 2,416,007.12 6,504,419.29
attributable to owners of the Parent Company
Add: net revenues from sale of businesses (after taxes) 71,613,068.52
189
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(Note)
IV. Total net profits from discontinued business 74,029,075.64 6,504,419.29
Of which: total net profits from discontinued business 74,029,075.64 6,504,419.29
attributable to owners of the Parent Company
Note: The total income from the sale of businesses was RMB104,895,528.48, and the income tax expense was
RMB33,282,459.96.
The cash flow from discontinued businesses during the Reporting Period was listed as follows:
Item Reporting Period Same period of last
year
Net cash flow generated from operating activities 16,707,303.60 162,696,113.54
Net cash flow generated from investment activities -1,319,377.04 1,288,425.32
Net cash flow generated from financing activities -15,077,965.92 -169,000,000.00
As for the above current discontinued operation, the Company presented again the information listed as profits
and losses of going-concern as profits and losses of discontinued operation for the comparable accounting period
in the current financial statements of the Company.
(2) Accounting Process of Basic EPS and Diluted EPS
(A) Basic EPS
Item Reporting Period Same period of last
year
Consolidated net profits attributable to common shareholders of 622,962,734.37 354,857,241.74
the Parent Company
Weighted average of common shares outstanding 595,979,092.00 595,979,092.00
Basic EPS (RMB/per share) 1.05 0.60
Of which: going-concern 0.92 0.59
Discontinued operation 0.13 0.01
The basic EPS was accounted based on the current net profits attributable to common shareholders of the
Company divided by the weighted average of common shares outstanding.
The accounting process of the weighted average of common shares outstanding was as follows:
Item Reporting Period Same period of last
year
Number of common shares outstanding at period-begin 595,979,092.00 595,979,092.00
Weighted average common shares outstanding 595,979,092.00 595,979,092.00
(B) Diluted EPS
There were no potential diluted common shares.
VIII. Changes of Merger scope
1. Business Merger not under Same Control
(1) Business Merger not under Same Control in Reporting Period
Unit: RMB
190
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
Name of place of Proportion of
gaining the the stock Purchase date basis of during the during the
acquiree gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock rights
to period-end to period-end
Other notes:
Not applicable
(2) Combined Cost and Goodwill
Unit: RMB
Combination cost
Note to determination method, consideration and changes of fair value of combined cost:
Not applicable
The main formation reason for the large goodwill:
Not applicable
Other notes:
Not applicable
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Not applicable
Contingent liability of acquiree undertaken by business merger
Not applicable
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
191
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(5) Notes to Reasonable Consideration or Identifiable Assets, Fair Value of Liabilities of the Acquiree that
Cannot Be Determined on the Acquisition Date or during the Closing Period of the Merge
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 from Net profits
the from this
Recognition Income Net profits
period-begin Reporting
Combined Proportion of Combination basis of during the during the
Basis to the Period to the
party the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Other notes:
Not applicable
(2) Combination Cost
Unit: RMB
Combination cost
Note 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 on Combining Date
Unit: RMB
Combination date Period-end of last period
Contingent liabilities of the combined party undertaken in combination
Not applicable
Other notes:
192
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 the subsidiary and lost control?
√ Yes □ No
Unit: RMB
Balance
of net Amount
assets of transferr
the ed into
Determin
subsidiar investme
ation
y nt profits
Profits or method
enjoyed and
Proporti Book Fair losses of fair
Recogni by losses
on of value of value of generate value of
zed basis disposal from
Proporti Time of residual residual residual from residual
Price of Way of for the price and other
Subsidia on of losing stock on stock on stock on residual stock on
stock stock time of disposal compreh
ry stock controlli the date the date the date stock the date
disposal disposal losing investme ensive
disposal ng rights of losing of losing of measure of losing
controlli nt in the income
controlli controlli controlli d again controlli
ng rights level of related to
ng rights ng rights ng rights at fair ng rights
correspo equity
value and main
nding investme
assumpti
consolid nt of the
ons
ated original
financial subsidiar
statemen y
ts
Shenzhe The time
n when
Internati the
onal 154,965, 11/30/20 stock 101,468, 90,662.0
100.00% Sale 0.00% 0.00 0.00 0.00 N/A
Trade 046.19 17 transfer 912.56 2
Center agreem
Car ent
Industry came
193
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Co., Ltd. into
effect
The time
when the
Shenzhe
stock
n
20,978,3 11/30/20 transfer 2,499,49 922,739.
Shenxin 100.00% Sale 0.00% 0.00 0.00 0.00 N/A
39.55 17 agreeme 9.85 02
Taxi Co.,
nt came
Ltd.
into
effect
Other notes:
On June 30, 2017, the Company transferred the 100% shares held by it of Shenzhen International Trade Center
Car Industry Co., Ltd. and Shenzhen Shenxin Taxi Co., Ltd. to Shenzhen Bus Group Co., Ltd. received in cash.
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
5. Other Reasons for the Changes in Combination Scope
Note to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant
information:
Entities that caused the changes in consolidation scope due to liquidation were listed as follows:
Entity Time no longer included into the combination scope
Shenzhen International Trade Market Co., Ltd. 12/14/2017
Sichuan Tianhe Industry Co., Ltd. 06/19/2017
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 100.00% Set-up
development
Estate Co., Ltd.
Szprd Real Estate Property
Shenzhen Shenzhen 95.00% 5.00% Set-up
Development Co., development
194
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
International
Trade Center Property
Shenzhen Shenzhen 100.00% Set-up
Property management
Management Co.,
Ltd.
Shenzhen
Huangcheng Real
Property
Estate Shenzhen Shenzhen 100.00% Set-up
management
Management Co.,
Ltd.
Shandong
Shenzhen
International
Property
Trade Center Jinan Jinan 100.00% Set-up
management
Property
Management Co.,
Ltd.
Chongqing
Shenzhen
International
Property
Trade Center Chongqing Chongqing 100.00% Set-up
management
Property
Management Co.,
Ltd.
195
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Chongqing
Ao’Bo Elevator Chongqing Chongqing Service 100.00% Set-up
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
Property
Project
Construction Shenzhen Shenzhen 100.00% Set-up
supervision
Supervision Co.,
Ltd.
Shenzhen Real
Shenzhen Shenzhen Service 100.00% Set-up
Estate Exchange
Zhanjiang
Shenzhen Real
Property
Estate Zhanjiang Zhanjiang 100.00% Set-up
development
Development Co.,
Ltd.
Shum Yip
Properties Property
Hong Kong Hong Kong 100.00% Set-up
Development Co., development
Ltd.
Wayhang
Property
Development Co., Hong Kong Hong Kong 100.00% Set-up
development
Ltd.
Chief Link
Property
Properties Co., Hong Kong Hong Kong 70.00% Set-up
development
Ltd.
196
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Business
Syndis
Property combination not
Investment Co., Hong Kong Hong Kong 70.00%
development under the same
Ltd.
control
Notes: holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been
controlled investee:
Naught
Significant structure entities and controlling basis in the scope of combination:
The Company and controlling shareholders in Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as
“SIH”) entered into Asset Replacement Agreement in Sep. 2010, agreeing that the Company replaces Moon Bay
T102-0237 land and 100% equity of Shenzhen Shenxin Taxi Co., Ltd. (hereinafter referred to as “SX Company”)
possessed by SIH with parts of house property owned by the Company and wholly-owned subsidiary Shenzhen
Huangcheng Real Estate Co., Ltd. In order to optimize structure of replaced asset, SIH agrees that assets and
liabilities which are not suitable to be included into the listed company such as non-market commodity house and
non-performing loans and debts owned by SX Company and shown in No. [2010] 103 file of SIH (hereinafter
referred to as “Divestiture Assets of SX Company” or “Divestiture Assets”) will not be incorporated into scope of
replacement and will be divested. In principle, Divestiture Assets shall handle procedures of registration of
transfer and transfer of credit and debt.
SIH, Shenzhen Foreign Economy & Trade Investment Co., Ltd. (hereinafter referred to as FET Company”) and
SX Company signed Contract on Transfer of Divestiture Assets in Jun. 2012. According to agreement of the
Contract, SIH requires SX Company to transfer Divestiture Assets to FET Company for management.
Since there are legal impediments in partial transfer of Divestiture Assets, FET Company and SX Company
concluded and signed Contract on Entrusted Management of Divestiture Assets and Liabilities, promising that
FET Company has entrusted SX Company to liquidate, manage and dispose of Divestiture Assets. The entrusted
period ends on Dec. 31, 2014. Since there are legal impediments in partial transfer of Divestiture Assets, FET
Company and SX Company concluded and signed Supplement Contract on Entrusted Management of Divestiture
Assets and Liabilities, promising that FET Company has entrusted SX Company to liquidate, manage and dispose
of Divestiture Assets. The entrusted period ends on Sept. 30, 2016. SX Company paid for FET Company with
RMB313,000 income obtained from assets operation from Jun. 1, 2012 to Dec. 31, 2012. Since then SX Company
will pay RMB626,000 to FET Company each year and the remaining incomes gained from assets operation will
be possessed by SX Company.
In June 2017, the Company signed the stock transfer agreement with Shenzhen Bus Group Co., Ltd. to transfer its
100% of shares in SX Company (refer to (VIII)-1), at the same time, SIH, FET Company and SX Company
signed Agreement on Transferring the equity of original shareholders in Shenzhen Shenxin Taxi Co., Ltd. in
which the whole equity generated from the above mentioned divestiture assets by the end of November 30, 2017
was transferred to Shenzhen Bus Group Co., Ltd., the operating profits and losses of the said divestiture assets
from Jan. 1, 2017 to Nov. 30, 2017 were attributable to the Company and SX Company no longer paid the income
obtained from the operation of assets to FET Company. Since then, there is no equity of structural entity for the
Company that is recorded into the scope of consolidated financial statements.
Basis of determine whether the Company is the agent or the principal:
Naught
197
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Other notes:
As of the end of reporting period, the balance of minority shareholders was RMB862,087.06, and there was no
significant non-wholly owned subsidiary in the Company.
(2) Significant Non-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 liability assets liability
Unit: RMB
Reporting Period Same period of last year
Total Total
Name Operation Operating Operation Operating
Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Other notes:
Naught
(4) Significant Restrictions of Using the Enterprise’s Group Assets and Paying off the Enterprise’s Group
Debt
Naught
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Naught
Other notes:
Naught
198
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
Naught
(2) The Transaction’s Influence on the Equity of Minority Shareholders and the Owner's Equity
Attributable to the Parent Company
Unit: RMB
Other notes
Naught
3. Equity in Joint Venture Arrangement or Associated Enterprise
(1) Significant Joint Venture Arrangement or Associated Enterprise
Holding percentage (%) Accounting
treatment of the
Main operating Nature of investment of
Name Registration place
place business Directly Indirectly joint venture or
associated
enterprise
Shenzhen Jifa
Warehouse Co., Shenzhen Shenzhen Warehouse serve 50.00% Equity method
Ltd.
Tianan
International
Building Property Property
Shenzhen Shenzhen 50.00% Equity method
Management management
Company of
Shenzhen
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
The Company’s long term equity investment had withdrawn bad debt provision for the associate enterprise of
Shenzhen Wufang Pottery & Porcelain Industrial Co., Ltd. Now the aforesaid company’ financial statement
cannot be obtained, thus, the Company believed that it was 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
199
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(2) Main Financial Information of Significant Joint Venture
Unit: RMB
Closing balance/ reporting period Opening balance /last period
Tianan International Tianan International
Building Property Shenzhen Jifa Warehouse Building Property Shenzhen Jifa Warehouse
Management Company Co., Ltd. Management Company Co., Ltd.
of Shenzhen of Shenzhen
Current Assets 47,958,558.83 6,879,862.65 42,814,855.50 9,064,341.43
Of Which: Cash And
34,268,115.61 5,890,362.65 31,101,797.08 8,288,829.43
Cash Equivalence
Non-Current Assets 29,349.24 63,528,043.92 42,161.35 58,400,619.41
Total Assets 47,987,908.07 70,407,906.57 42,857,016.85 67,464,960.84
Current Liabilities 21,253,083.10 3,410,681.06 17,556,069.50 2,938,479.66
Non-Current Liability 16,271,264.57 16,323,646.35
Total Liabilities 37,524,347.67 3,410,681.06 33,879,715.85 2,938,479.66
Equity Attributable To
Owners Of Parent 10,463,560.40 66,997,225.51 8,977,301.00 64,526,481.18
Company
Portion Of Net Assets
Calculated According To
5,231,780.20 33,498,612.76 4,488,650.50 32,263,240.61
Proportion Of
Shareholdings
Book Value Of Equity
Investment To Joint 5,231,780.20 33,498,612.76 4,488,650.51 32,263,240.61
Venture
Operation Revenue 17,581,422.94 7,504,631.18 17,250,530.88 7,200,424.80
Financial Expenses -724,727.16 -12,400.09 101,183.88 -18,780.31
Income Tax Expense 495,714.73 836,613.87 502,951.30 717,183.63
Net Profit 1,486,259.40 2,470,744.33 1,503,630.15 2,947,797.24
Total Comprehensive
1,486,259.40 2,470,744.33 1,503,630.15 2,947,797.24
Income
Other notes
Naught
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
Closing balance/ reporting period Opening balance /last period
200
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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. Now the aforesaid company’ financial statement
cannot be obtained, thus, the Company believed that it was insignificant associate enterprises.
(4) Summary Financial Information of Insignificant Joint Venture or Associated Enterprise
Unit: RMB
Closing balance/ Reporting Period Opening balance /last period
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes
Naught
(5) Note to the Significant Restrictions in the Ability of Joint Venture or Associated Enterprise to Transfer
Funds to the Company
Naught
(6) The Excess Loss of Joint Venture or Associated Enterprise
Unit: RMB
The cumulative recognized The derecognized losses (or the The noncumulative
Name losses in previous share of net profit) in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes
Naught
(7) The Unrecognized Commitment Related to Joint Venture Investment
Naught
(8) Contingent Liabilities Related to Joint Venture or Associated Enterprise Investment
Naught
201
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
4. Significant Common Operation
Proportion /share portion
Name Main operating place Registration place Nature of business
Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
Naught
Basis of common operation as a single entity, classify as common operation
Naught
Other notes
Naught
5. Equity in the Structured Entity not Included in the Scope of Consolidated Financial Statements
Notes of the structured entity not included in the scope of consolidated financial statements:
Naught
6. Others
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
RMB91.3458 million except the aforesaid had withdrawn bad debt provision, mainly was the account receivable
of property management, of which was account receivable RMB3.5627 million of Taobao (China) Software Co.,
Ltd. was the total property management costs of several serve district of Taobao (China) Software Co., Ltd. Other
client receivables were widely dispersed owners and tenants. The Group conducted continuous supervisor to the
account receivables to ensure the Group not facing significant bad debt risk.
For the quantized data of credit risk exposure incurred by account receivables and other account receivables, see 2,
Note (VII) and 4, Note (VII).
202
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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 itself, the headquarters of the finance
department combine the cash flow of each subsidiary, continue to monitor the short term or long term capital
needs to ensure maintain plenty of cash flow. Besides, according to the actual capital need of the Group, provided
commitment of adequate emergency capital to meet the short term and long term capital need.
All financial liabilities of the Company were expected to 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 follows, which reflected the influence of changes in monetary
assets and monetary liabilities on net profits and shareholders’ equity when the following listed foreign exchanges
showed reasonable and possible changes under the hypothesis of other variables constant.
Item Reporting period Last year
Influence to the Influence to equity Influence to the Influence to equity
profits of shareholders profits of shareholders
RMB down 2% against HKD -28.41 -1,017,872.15 4,178.87 -1,074,320.99
RMB up 2% against HKD 28.41 1,017,872.15 -4,178.87 1,074,320.99
RMB down 2% against -8,988.57 -8,988.57 -10,547.97 -10,547.97
USDD
RMB up 2% against USD 8,988.57 8,988.57 10,547.97 10,547.97
Notes 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Notes 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
(2) Interest rate risk
Interest rate risk was referred to risk of the fair value or future cash flow of financial instrument changed due to
the change of market interest risk.
The interest risk of the Group incurred from bank loan, interest rate risk of a floating interest rate of financial
liabilities that lead to the group facing cash flow interest rate risk, financial liabilities with a fixed interest rate lead
to the group facing cash flow interest rate risk. Besides, the Company had no interest-bearing debts.
4. Fair Value
Refer to Note (XI) for details.
XI. The Disclosure of the Fair Value
1. Closing Fair Value of Assets and Liabilities Calculated by Fair Value
Unit: RMB
Item Closing fair value
203
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(II)Available-for-sale
3,591,209.20 3,591,209.20
financial assets
(2) equity instrument
3,591,209.20 3,591,209.20
investment
The total amount of assets
3,591,209.20 3,591,209.20
measured at fair value
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 the national stock transfer system for small and medium sized enterprises on Dec. 31, 2017.
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
Not applicable
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
Not applicable
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Opening and
Closing Book Value of Consistent Fair Value Measurement Items at Level 3
Not applicable
6. Explain the Reason for Conversion and the Policy Governing when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Not applicable
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Change
Not applicable
204
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
8. Fair Value of Financial Assets and Liabilities not Measured at Fair Value
Not applicable
9. Others
Not applicable
XII. Related Party and Related Transaction
1. Information Related to the Parent Company
Proportion of voting
Proportion of share
rights owned by
Name of parent held by parent
Registration place Nature of business Registered capital parent company
company company against the
against the Company
Company (%)
(%)
Shenzhen
Managing
Investment Holdings Shenzhen RMB23,149 million 63.82% 63.82%
state-owned assets
Co., Ltd
Notes: Information on the Parent Company:
The Company’s actual controlling shareholder is Shenzhen Investment Holdings Co., Ltd., and also is a sole
state-funded limited company. As a government department, Shenzhen State-owned Assets Supervision and
Administration Bureau manage Shenzhen Investment Holdings Co., Ltd. on behalf of People’s Government of
Shenzhen Municipality. Thus, the final controller of the Company is Shenzhen State-owned Assets Supervision
and Administration Committee of Shenzhen Government.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.
Other notes:
Naught
2. Subsidiaries of the Company
Refer to Note (IX)-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note (IX)-3 for details of significant joint ventures or associated enterprises of the Company.
Information on other joint venture or associated enterprise of occurring related party transactions with the Company in Reporting
Period, or forming balance due to related party transactions in previous period:
Name Relationship
Other notes:
205
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Naught
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:
Naught
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
Whether exceed trade
The approval trade credit or not Whether Same period of last
Related party Content Reporting Period
credit exceed trade credit or year
not
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Notes of information on acquisition of goods and reception of labor service
Not applicable
(2) Related Trusteeship/Contract
Lists of related trusteeship/contract:
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in this
ee contractor Reporting Period
Notes:
Not applicable
Lists of entrust/contractee
Unit: RMB
Name of the Name of the Charge
Type Initial date Due date Pricing basis
entruster/contract entrustee/ recognized in this
206
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
ee contractor Reporting Period
Notes:
Not applicable
(3) Information of Related Lease
The Company was lessor:
Unit: RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
The Company was lessee:
Unit: RMB
The lease fee confirmed in this The lease fee confirmed in last
Name of lessor Category of leased assets
year year
Shenzhen Investment Holdings
Rental 358,700.40 351,692.04
Co., Ltd.
Notes:
Not applicable
(4) Related-party Guarantee
The Company was guarantor:
Unit: RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was Secured party
Unit: RMB
Execution accomplished
Guarantor: Guarantee amount Start date End date
or not
Notes:
Not applicable
(5) Inter-bank Lending of Capital of Related Parties
Unit: RMB
Amount borrowed and
Related-party Initial date Due date Explanation
loaned
Borrowed
Loaned
207
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
(6) Related Party Asset Transfer and Debt Restructuring
Unit: RMB
Related-party Content Reporting period Same period of last year
(7) Rewards for the Key Management Personnel
Unit: RMB
Item Reporting Period Same period of last year
Total rewards for the key management
6,426,500.00 5,823,200.00
personnel( tax included)
(8) Other Related-party Transactions
Related party entrusted operating
In June 2017, the Company signed the stock transfer agreement with Shenzhen Bus Group Co., Ltd. to transfer its
100% of shares in SX Company (refer to (VIII)-1), at the same time, SIH, FET Company and SX Company signed
Agreement on Transferring the equity of original shareholders in Shenzhen Shenxin Taxi Co., Ltd. in which the
operating profits and losses of the said divestiture assets from Jan. 1, 2017 to Nov. 30, 2017 were attributable to the
Company and SX Company no longer paid the income obtained from the operation of assets to FET Company. For
details, please refer to Note (IX)-1-(2) Events.
The business condition of divestiture assets from Jan. to Nov. in 2017 was listed as follows:
Item Amount
Operation revenue 4,133,416.46
Operation cost 3,434,449.39
Business tax and surcharges 592,765.21
Administrative expenses 302,509.82
Total profits -196,307.96
Income tax expense
Net profit -196,307.96
6. Receivables and Payables of Related Parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Name of item Related party
Book balance Bad debt provision Book balance Bad debt provision
Other accounts Anhui Nanpeng 8,899,040.00 8,899,040.00
208
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
receivable Papermaking Co.,
Ltd.
Shenzhen Wufang
Other accounts
Pottery & Porcelain 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
receivable
Industrial Co., Ltd.
Shenzhen
Other accounts
Guesthouse 909,960.40 909,960.40
receivable
Restaurant
(2) Payables
Unit: RMB
Name of 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. Others
Not applicable
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□ Applicable □ Not applicable
2. The Stock Payment Settled by Equity
□ Applicable □ Not applicable
3. The Stock Payment Settled by Cash
□ Applicable □ Not applicable
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4. Modification and Termination of the Stock Payment
Naught
5. Others
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Item Closing amount
Large amount contract of real estate development project signed but derecognized in financial 414,958,289.09
statements.
Total 414,958,289.09
2. Contingency
(1) Significant Contingency on Balance Sheet Date
(1) Pending Action
A. About transferring Jiabin Building contentious matter ( Now rename as: Longyuan Development
Building; former name Jinlihua Commercial Plaza）
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building (name of Jiabin Building
has been changed to Jinlihua Commercial Plaza) with Shenzhen Haibin Property Development Co., Ltd. (name of
which has been changed to Shenzhen Jiyong Property Development Co., Ltd., hereinafter referred to as Jiyong
Company). In January 1999, Jiyong Company sued the company to Guangdong Higher People’s Court (hereinafter
referred to as “Guangdong Higher Court”) for termination of the transfer contract and refund of the transfer
consideration and construction payment paid on the ground that the area of premises was in discrepancy with the
contract. With respect to this, the Company counterclaimed the opposing party to pay back the rest transfer
consideration and applied for sealing up their property with an area of 28,000 square meters.
On July 29, 2001, Guangdong Higher Court issued Civil Court Judgment YGFM (1999) No. 3 (hereinafter referred
to as Judgment No. 3) to judge that ① the Company should transfer the title of land use right specified in the
transfer contract to Jiyong Company within 30 days from the date the judgment taking into effect and ②Jiyong
Company should pay off the transfer consideration amounting to RMB143, 860,000.00 within 60 days from the date
the Company transferred the title of land use right. On November 27, 2001, the Company applied to Guangdong
Higher Court for forcible execution, however Guangdong Higher Court adjudicated to release the sealing property
of Jiyong Company approximately 10,000 square meters since Industrial & Commercial Bank of China Zhejiang
Branch disagree to seal the properties.
The Company thought the applicable law of the decision was error, and raised an objection to High Court of
Guangdong province.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
In Sep.2005, the High Court of Guangdong province delivered unlocked decision to the Departments of Land and
House Property Registers of Shenzhen. The aforesaid about ten thousand square meters of real estate was officially
unlocked.
In January 2006, Guangdong Higher Court issued Civil Court Judgment YGFZ (2002) No. 1 and adjudicated
because that ① the Company has not yet transferred the title of land use right specified in the transfer contract to
Jiyong Company and ② Jiyong Company cannot provide other properties available for execution and the
Company also cannot provide the property available for execution, the second judgment of the Judgment No. 3 -
“Jiyong Company should pay off the transfer consideration amounted RMB143,860,000 within 60 days from the
date the Company transferred the title of land use right” is terminated for execution. When the conditions causing
termination for execution of the second judgment are eliminated, the second judgment should still be executed.
In March 2006, according to the ordain of Guangdong Higher People’s Court, the properties in Jiabin Building that
have been sealed up in this case have been released automatically. On September 2009, company received YGFZ
(2002) No. 1-1 Resume Execution Notice from Guangdong Province Higher Court claimed to resume execution the
case that the transfer money owed by Jiyong company about Jiabin building project.
In October 2009, the Company received (Verdict YGFZ (2002) No. 1-2) from Guangdong Higher Court. The
verdict claimed: The resume execution of this case is according to the "The requirements for the Guangdong Higher
Court to concentrate the implementation of accumulated cases" Through the investigation conducted by Guangdong
Higher Court to Shenzhen department of motor vehicles, Shenzhen Securities Registration and Settlement
Organizations, Shenzhen Land resources and real estate administration and the opening bank of the executed party,
the executed party – Jiyong Company does not have any executable property. For these, Guangdong Higher Court
adjudicated: ① Terminate the executive procedure of Verdict YGFZ (2002) No. 1② When the execution
conditions are satisfied, the applicant can apply for resume execution.
According to note (VII) 3, Shenzhen Longyuan-Kaili-Hengfeng Real Estate Co., Ltd. (hereinafter as the
“Longyuan-Kaili”) and Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter as the “Huaneng Property”) plan to
conduct reconstructions to the plaza, On 3 mar. 2011, the Company, The First Administration Under Shenzhen
Planning And Land Resources Committee Directly and Longyuan-Kaili had registered the land of Jin Lihua
Building to its name according to SDHZ (1992) No. 0228 Second Supplementary Agreement of Shenzhen Grant
Contract of Land Use Right signed in 2011 and Meeting Summery about Research of Dealing with Problem
Building Issued (No. 481) by Shenzhen Municipal Government.
In April 2012, the Company raised the subrogation right lawsuit to Shenzhen Luohu District People's Court, based
on the creditor’s right for Jiyong Company decided by the Civil Ruling Paper YGFMC (1999) No. 3, prosecuting
the obligor of Jiyong Company—Shenzhen Zongli Investment Co., Ltd. (hereinafter referred to as “Zongli
Company”), which was required to compensate for the Company within its debt range for Jiyong Company.
Meanwhile, due to it was highly similar in the management level of Shenzhen Huaneng-Jindi Property Co., Ltd.
(hereinafter referred to as “Huaneng-Jindi Company”) and Zongli Company, the Company believed that there was
significant related-party relationship between Huaneng-Jindi Company and Zongli Company, therefore, the
Company also prosecuted Huaneng-Jindi Company, which was required to undertake the joint liability for the debts
born by Zongli Company. On 11 Sep. 2013 Shenzhen Luohu District People's Court issued (2012) SLFMECZ No.
1150paper of civil judgment; the decision rejected the Company’s claims. The Company refused to accept the
verdict, has instituted an appeal to the Shenzhen Intermediate People's Court, In Mar. 2015, Shenzhen Intermediate
People's Court made Civil Judgment (2014) SZFSZZ No. 400, the decision to reject the appeal of the Company, and
maintain the original judgment.
As the executable property are not found in the case so far, the Company withdraw bad debt provision for Shenzhen
Jiyong Properties & Resources Development Company‘s transfer amount of Jin Lihua Commercial Plaza. In Aug.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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. And now the case is still under the review for
bankruptcy filing.
(2)Determined Actions
A. 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 Reconsideration SFFJ (2005) No. 294 and prosecuted
an administrative litigation to Shenzhen Intermediate Court on October 20, 2005. Shenzhen Intermediate Court
issued Administrative Judgment SZFXCZ (2005) No. 23 and adjudicated that Decision on Administrative
Reconsideration SFFJ (2005) No. 294 is sustained. The Company disagreed with this administrative judgment and
appealed to Guangdong Higher Court on August 2, 2006. Guangdong Higher Court issued Administrative Judgment
YGFXZZ (2006) No. 154 in which the appeal was rejected and Administrative Judgment SZFXCZ (2005) No. 23
was sustained. According to this Judgment, Shenzhen Municipal Bureau of Land Resources and Housing
Management would reconsider the request of Meisi Company to revoke the Property Ownership Certificates SFDZ
No. 3000320987 and No. 3000119899 of the Company.
On May 15, 2007, Registration Center for Property of Real Estate of Shenzhen Municipality issued Decision on
Revoking the Property Ownership Certificates SFDZ No. 3000320987 and No. 3000119899 (SFZ (2007) No. 27).
Registration Center for Property of Real Estate of Shenzhen Municipality decided to revoke property ownership
certificates SFDZ No. 3000320987 and No. 3000119899 owned by the Company that indicating the ownership of
occupied property of Meilin Workshop, Comprehensive Building and the land use right of 11,500 square meters and
restore the registration of the ownership of occupied property of Meilin Workshop, Comprehensive Building and
the land use right of certificates of SFDZ No. 0103142 and No. 0103139. The Company had the ownership of
occupied property of Meilin Workshop, Comprehensive Building and the land use right of 11,500 square meters
according to original property ownership certificates.
On July 9,2007, the Company applied the administrative reconsideration to the Administrative Reconsideration
Office of the People’s Government of Shenzhen Municipality, which considered that those action that Registration
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Center for Property and Real Estate of Shenzhen Municipality revoked property ownership certificate SFDZ No.
3000320987 and No. 3000119899 owned by the Company and restore the registration of Meilin Workshop,
Comprehensive Building and land use right violated the provisions of the Decision on Strengthening Land Market
Management and further Enlivening and Standardizing Real Estate Market (SF (2001) No. 94) promulgated by
People’s Government of Shenzhen Municipality, and requested People’s Government of Shenzhen Municipality to
rescind the Decision. On September 6, 2007, the People’s Government of Shenzhen Municipality issued Decision
on Administrative Reconsideration SFFJ (2007) No. 255 to sustain the administrative decision of Shenzhen
Municipal Bureau of Land Resources and Housing Management.
In November 2007, Shenzhen Municipal Bureau of Land Resources and Housing Management rejected the
application of Meisi Company for revoking Property Ownership Certificates SFDZ No. 0103142 and No. 0103139.
Meisi Company prosecuted an administrative litigation to Shenzhen Futian People’s Court (hereinafter referred as
to “Futian Court”) to ask for revoking the administrative decision of Shenzhen Municipal Bureau of Land Resources
and Housing Management. The Company was involved as third party. Court session started on January 8, 2008 with
litigation number of (2008) SFFXCZ No. 10 (hereinafter referred as to “No.10 Case”). On January 2008, Meisi
Company prosecuted an administrative litigation to Futian Court for revoking the above administrative decision of
Shenzhen Municipal Bureau of Land Resources and Housing Management, revoking Property Ownership
Certificates SFDZ No. 0103142 and No. 0103139, and restoring the land use right to Meisi Company with the
litigation number of SFFX (2008) No. 70 (hereinafter referred as to “No.70 Case”). On May 2008, the Futian Court
made adjudication to No. 70 Case in which the property ownership certificates SFDZ No. 0103142 and No.
0103139 owned by the Company were revoked and Shenzhen Municipal Bureau of Land Resources and Housing
Management were required to re-investigate the application of Meisi Company. The company, the Shenzhen
Municipal Bureau of Land Resources and Housing Management as well as Meisi Company refused to accept the
verdict and made an appeal. On July 2008, the Company has received the Administrative Ruling Paper from Futian
Court in which the trial of No. 10 Case was terminated.
On December 2008, Shenzhen Intermediate Court issued the Administrative Ruling Paper SZFXZZ (2008) No. 223,
in which the final adjudication of appeal No. 70 Case was made and the original verdict was sustained. Moreover,
the final adjudication stated that the controversy over the land use right in this case between Meisi Company and the
Company should be settled through civil procedures; the Bureau of Land Resources and Housing Management of
Shenzhen Municipality should not proceed the registration procedure until the controversy is final settled.
On Feb. 11, 2009, the Company received the Civil Complaint from Futian Court; Meisi Company has made a civil
prosecution against the Company and Shenzhen Luohu Commercial Development Co., Ltd. for the confirmation of
Meisi Company’s land use right and the buildings in original Property Ownership Certificates SFDZ No., 0103142
and No., 0103139. Furthermore, Meisi Company requests that return of related land use right and a compensation of
RMB7.5 Million. The Company has submitted an objection to jurisdiction. On March 4, 2009, Futian Court sent the
Notice to the Company to inform that this case has been transferred to Shenzhen Intermediate Court for
adjudication.
On 22 December 2009, the Company received court ruling delivered by the Guangdong Higher Court. After
investigated by Guangdong Higher Court, it is considered that the retrial application to Shenzhen Intermediate
Court Judgment SZFZ (2008) No. 223 by the company is compiled to the law, and adjudicated: ① Arraign by
Guangdong Highest People's Court ② suspended the execution of the original verdict during the retrial.
On 15 Aug. 2011, the Company received the Administrative Ruling Paper (YGFSJZZ (2010) No. 8) from the
Guangdong Higher Court, which maintained the Administrative Ruling Paper (SZFXZZ (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.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
The Company received the ruling of Shenzhen Medium People's Court in Oct. 2012, at which the court approved
legally Meisi Company’s application on canceling the lawsuit towards the Company. After receiving the above
ruling, due to the Administrative Ruling Paper SZFXZZ (2008) No. 223 had clearly ruled that the dispute on
Meilin land between the Company and Meisi Company should be settled through civil law procedures, therefore,
the Company raised the civil lawsuit to Meisi Company and Luojingfa Company, requiring to recognize the
ownership of the above involved land for the Company, and the court has accepted the above mentioned lawsuit.
At the same time, in order to protect the land rights in Meilin and the above-mentioned real estate from accidental
infringement, the Company applied for litigation preservation from Shenzhen Intermediate People's Court. The
Company has provided equal amount of property as a guarantee for litigation preservation and the court has
accepted the application of the Company. The land and property in Meiling were subject to litigation preservation
measures. Then, Meisi Company raised the counterclaim towards the Company, requiring recognizing its
ownership of the above involved land. And the two cases were combined for public trial on 1 Mar. 2013. On
December 10, 2014, the Company received the "Civil Judgment" (2012) SZFFCZ No. 53 served by Shenzhen
Intermediate People's Court. The Shenzhen Intermediate People's Court made a judgment of first instance verdict
on the Company’s lawsuit against Meisi Company and Shenzhen Luohu District Economic Development
Company. The judgment verifies that the Company has signed a "Cooperative Development Meishi Industrial
Zone Agreement" signed with the Luohu District Economic Development Corporation of Shenzhen, and
"Cooperative Development of Meisi Industrial Zone Supplementary Agreement" on the joint development of the
parcel number B405-7(4) of 11,500 square meters. The contents of the land were valid; the 11,500-square-meter
land use right and the above-ground building Merrill Lynch No. 1 plant and Merrill Lynch Complex located at
B405-7 (4) in Meilin Industrial Park, Beihuan Road, Shenzhen were confirmed to be owned by the Company
(originally Property title No.: SFDZ No. 0103139, 0103142); Meisi Company and Luohu District Economic
Development Company of Shenzhen shall assist the Company to handle 11,500 square meters of land and
buildings on the ground, Meilin No. 1 Plant within 15 days from the effective date of this judgment. , Merrill
Lynch comprehensive building property registration to the Company's real estate registration procedures; rejected
the Company's other lawsuit request and Meisi counter-claims. Shenzhen Meisi Industrial Co., Ltd. filed an appeal.
The court of second instance (Higher People's Court of Guangdong) held two hearings, and made a final judgment
in the (2015) YGF MYZZ No. 16 "Civil Judgment" of Higher People’s Court of Guangdong on December 21,
2017, which upheld the decision in (2012) SZF FCZ No. 53 "Civil Judgment" issued by Shenzhen Civil
Intermediate Court. At present, the land and building involved in the lawsuit are still registered in the registration
department in the documents SFDZ No. 0103139 and 0103142 (they have been sealed up for the litigation
preservation applied by the Company). As of December 31, 2017, the Company has not completed the unsealing
and re-certification of the aforementioned land and plant.
The Company believes that according to the above final judgment, it legally owns the land use right of 11,500
square meters in Meilin Industrial Zone of Beihuan Road, Shenzhen, and the ownership of the above-ground
building. The Company actively handles the re-certification of the above-mentioned land and plant, and the
financial statements will not be impacted by this issue.
B. Shenzhen Hetaiheng prosecuted the Company to undertake joint liability for the debts for Shenzhen
International Trade Center Industry Development Co., Ltd.
On 31 July 2015, Shenzhen Luohu District People's Court issued (2015) SLFMECZ No. 2499 paper of civil
judgment. It decided the Company and China (Shenzhen) Education Business Shares Co., Ltd. (“China Education
Company”) shall undertake the joint liability for the debts for Shenzhen International Trade Center Industry
Development Co., Ltd. (“International Trade Center Company”) declared under (2002) SLFJYCZ No. 582 paper of
civil judgment.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
According to (2002) SLFJYCZ No. 582 paper of civil judgment, Shenzhen Xinguang Industry Co., Ltd. (“Xinguang
Company”) shall, within ten days after the effectiveness of such paper, clean off 2.21 million of principal and
interest thereon (such interest shall be counted from 22 Dec. 2000 to the date when the debts are paid off based on
related regulations by the People’s Bank of China as agreed under Loan Contract) to Shenzhen Shendong Branch of
Industrial and Commercial Bank of China (“Shendong Branch of ICBC”); and International Trade Center Company
shall undertake joint liability for cleaning off such debts.
After the effectiveness of (2002) SLFJYCZ No. 582 paper of civil judgment, Shendong Branch of ICBC has only
been paid off 31,551, and then the creditor’s right has been transferred to Shenzhen Office of China Orient Asset
Management Corporation, who has applied for execution by force to the People’s Court, but received no more
payment. On 22 May 2008, Shenzhen Office of China Orient Asset Management Corporation further transferred the
creditor’s right to Dongfu Asset Management Corporation. On 24 Oct. 2010, Dongfu Asset Management
Corporation again transferred such right to Shenzhen Hetaiheng Investment Co., Ltd., which has been paid 700,000
during the execution of this paper.
In 2013, International Trade Center Company was under bankruptcy liquidation. On 17 Dec. 2014, Shenzhen
Intermediate People’s Court issued (2013) SZFPZ No. 24-3 paper of civil judgment to end the bankruptcy
proceeding on International Trade Center Company due to its liquidation failure since the Company’s address was
unknown and management failed to take over the Company’s property and financial data. On 1 Apr.2015, the
management of International Trade Center Company dissolved the company.
Under (2015) SLFMECZ No. 2499 paper of civil judgment, Shenzhen Hetaiheng Investment Co., Ltd. claimed that
the Company and China Education Company shall undertake the joint liability for paying off the debts under (2002)
SLFJYCZ No. 582 paper of civil judgment (By 31 Mar. 2015, 2,178,449.00 of principal, with the interest counted
from the date as regulated by the law to the date when the debts are paid off).
It is decided in the first-instance judgment by Shenzhen Luohu District People's Court that the two sharing
companies of International Trade Center Industry Company, namely the Company and China Education Company,
as well as Shicai Company though not involved in this case, shall undertake the joint liability for the debts of
International Trade Center Company under (2002) SLFJYCZ No. 582 paper of civil judgment since they failed to
perform the liquidation liability and to provide accounting books during bankruptcy proceedings of International
Trade Center Company, which led to the failure of an overall liquidation; as for the debt amount, this Court did not
make any decision since such amount may be changed with the performance of paying off the debts under (2002)
SLFJYCZ No. 582 paper of civil judgment by parties involved.
The Company refuses to accept the above judgment and has appealed against such decision.
During this Reporting Period, the Company estimated about 834,999.50 of debts based on (2015) SLFMECZ No.
2499 paper of civil judgment and its actual holding 38.33% of the shares of International Trade Center Company.
On 28 Nov. 2016, Shenzhen Intermediate People’s Court issued (2015) SZFSZZ No. 2837 paper of civil judgment,
changing (2015) SLFMECZ No. 2499 of civil judgment to: the Company and China Education Company shall
undertake the joint compensation liability for the debts for Shenzhen International Trade Center Industry
Development Co., Ltd. declared under (2002) SLFJYCZ No. 582 paper of civil judgment (the RMB 1,314,719.00
paid off to Shenzhen Hetaiheng Investment Co., Ltd. and Shendong Branch of Industrial and Commercial Bank of
China shall be deducted).
In 2016, the Company would need to pay off an estimated amount of RMB 6,009,255.74 based on (2015) SZFSZZ
No. 2837 paper of civil judgment and the estimated debt of RMB 2,303,948.65 was confirmed based on its actual
holding 38.34% of the shares of International Trade Center Company. After the confirmed estimated debt of RMB
834,999.50 in 2015 was deducted, the added estimated debt for this Reporting Period is RMB 1,468,949.15.
Shenzhen Hetaiheng Investment has applied for execution by force to the Court, demanding that the Company fulfil
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
the obligations stated in (2015) SZFSZZ No. 2837 paper of civil judgment.
The court of execution issued the (2016) Yue 0303 Zhi No. 11947-2 Executive Notice on April 12, 2017. The
company paid the executive amount of RMB 5,917,084.99 and executive fee of RMB 56,985.42 as stated on the
notice on April 19, 2017. On April 28, 2017, the court of execution issued (2016) Yue 0303 Zhi No. 11947 Notice
of Case Settlement and closed the case. The estimated liability amount of the Company was RMB 2,303,948.65
based on the actual amount of execution less the pre-provisions, and the non-operating expenses was confirmed to
be RMB 3,613,136.34 during the reporting period.
C. Huizhou Dongfang Lianhe Industry Co., Ltd. prosecuted the Company to undertake joint liability for the
debts for Shenzhen International Trade Center Industry Development Co., Ltd.
In Dec. 2016, Huizhou Dongfang Lianhe Industry Co., Ltd. prosecuted the Company on account of the liability of
shareholder’s infringement of creditor’s interests, demanding that the Company undertake joint settlement liability
for the debt of RMB 8,359,288.40 (as of 31 March 2015) under (2000) SFFJCZ No. 854 paper of civil judgment.
Based on (2000) SFFJCZ No. 854 paper of civil judgment: Shenzhen Shengping Industry Development Co., Ltd.
(“Shengping Company”) shall, within ten days after the effectiveness of such paper, pay 2.5 million of principal and
interests thereon (including penalty, which is RMB 310,100.00 counted until 20 Mar. 2000, and the interests
thereafter shall be counted based on the loan interest rate for the same period stipulated by the People’s Bank of
China, until the date payable confirmed by the judgment). In the case of overdue payments, debt interests shall be
paid in double for the period of deferred execution. Shenzhen International Trade Center Industry Development Co.,
Ltd. undertakes joint settlement liability for the debts of Shengping Company under the judgment.
Upon the effectiveness of (2000) SFFJCZ No. 854 paper of civil judgment, Shenzhen Development Bank
Changcheng Building Branch applied for execution by force, but did not receive payment. Then it transferred the
creditor’s right to China Huarong Asset Management Co., Ltd. Shenzhen Office (“Huarong Company”). Huarong
Company transferred the right to Huizhou Dongfang Lianhe Industry Co., Ltd. In December 2016, Huizhou
Dongfang Lianhe Industry Co., Ltd. prosecuted the Company.
In 2013, International Trade Center Company applied for bankruptcy liquidation. On 17 Dec. 2014, Shenzhen
Intermediate People’s Court issued (2013) SZFPZ No. 24-3 paper of civil judgment to end the bankruptcy
proceeding on International Trade Center Company due to its liquidation failure since the Company’s address was
unknown and management failed to take over the Company’s property and financial data. On 1 Apr. 2015, the
management of International Trade Center Company dissolved the company. The Company is preparing to respond
to the prosecution and the first trial was heard in Luohu District People's Court on 16 Mar. 2017.
Based on (2000) SFFJCZ No. 854 Paper of Civil Judgment and (2015) SZFSZZ No. 2837 Paper of Civil Judgment,
the Company deems that there is a greater possibility for the assumption of the joint liability for the debt under (2000)
SFFJCZ No. 854 Paper of Civil Judgment, and based on the estimated compensation of RMB 7,557,033.56 and the
38.34% of the shares of International Trade Center Company held by the Company, the withdrawal of estimated
debt is RMB 2,897,366.67.
In terms of the lawsuit filed by Huizhou Dongfang United Industrial Co., Ltd. against the Company on December
2016, the first trial was held in Luohu District People's Court on March 16, 2017. During the trial process, the
Company and Huizhou Dongfang United Industrial Co., Ltd. voluntarily reached an agreement: ①The Company
shall pay RMB 4,776,023.00 to Huizhou Dongfang United Industrial Co., Ltd. before April 20, 2017. ② If the
Company fails to fulfill its obligations, it shall follow the indictment amount of RMB 8,359,288.4 as well as the
interest from December 7th, 2016 to the date of actual settlement. ③ Huizhou Dongfang United Industrial Co.,
Ltd. voluntarily waived other lawsuit requests. ④ Huizhou Dongfang United Industrial Co., Ltd. voluntarily
gave up the right to claim recovery of debts against other two shareholders of International Trade Center Property
Management Co., Ltd., namely China Education Corporation and Hong Kong Shicai Company in this case. ⑤
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
The Company has the right to claim compensation from related parties after fulfilling its payment obligations. On
March 31, 2017, Shenzhen Luohu District People's Court made the civil mediation agreement (2016) Yue 0303
MC No. 20377, confirming the terms of the above agreement.
On April 13, the company paid RMB 4,776,023.00 to Huizhou Dongfang United Industrial Co., Ltd. according to
the agreement. The company has fulfilled its payment obligations, and the company deducted the estimated
RMB2,187,366.67 of accrued liabilities from the previous period based on the actual amount of compensation,
and confirmed non-operating expenses of RMB1,878,656.33 during the reporting period.
(3) Guarantee
A. The Company’s subsidiary Dongguan International Trade Center Changsheng Real Estate Development Co., Ltd.
belongs to provisional qualification real estate development enterprise, when dealing with the application of
approval of the presale of houses, the commercial housing quality guarantee after the liquidations of enterprise
bankruptcy, dissolution, Dongguan International Trade Center Changsheng Real Estate Development Co., Ltd.
submitted guarantee RMB12,402,160.00 to Bank of Communications, Duangguang, Dalang Branch, the bank issue
9 Guarantee Letter for irrevocable goods, of which one guarantee of RMB1,468,870.00, from 30Jun. 2015 to 31 Dec.
2020, and the remained were RMB10,933,290.00 from 1 Jul. 2015 to 31 Dec. 2020.
B. Guarantee for the owners: the Company and its subsidiaries are the purchasers providing mortgage guarantee for
the bank, As of 31 Dec. 2015, the unsettle guarantee amount was RMB220.91 million, the guarantee event was
provided by real estate developer for small owners’ purchases of commercial houses of the Company, which was the
common phenomenon in the industry.
C. During the civil proceedings of the Company and Shenzhen Meisi Industrial Co., Ltd. (refer to (XIII)2, (2)A,),
the to protect the plant and comprehensive building in Meilin as well as the corresponding the land use rights of the
dispute, On December 19, 2012, the Company applied to Shenzhen Intermediate People's Court for the sealing up of
the land and property specified in the original real estate certificate SFDZ No. 0103139 and No. 0103142, and
provided the Company self-owned property - 41 suites in International Trade Center Plaza as property preservation
in this case according to the provisions of the Civil Procedure Law. The total area of the properties is 8,342.24
square meters, and the book value was RMB 49,137,900 as of December 31, 2017.
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
3. Other
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Unit: RMB
Influence number to the
Reason of unable to estimate
Item Content financial position and operating
influence number
results
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
2. Profit Distribution
Unit: RMB
Profits or dividends planned to be allocated 178,793,727.60
Reviewed and approved Profits or dividends allocation 178,793,727.60
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) Retrospective Restatement
Unit: RMB
Name of the influenced report
Content Processing program Cumulative impact
items during comparison period
(2) Prospective Application
Content Processing program Reason of adopting prospective application
2. Debt Restructuring
Not applicable
3. Replacement of Assets
(1) Non-monetary assets exchange
Not applicable
(2) Other assets replacement
Not applicable
218
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
4. Pension Plan
Not applicable
5. Discontinuing Operation
Unit: RMB
Termination of
the business
Income tax profits
Item Revenue Expense Total profits Net profit
expense attributable to the
parent company
owner
The business
result of
discontinued
business in the
55,225,135.17 51,453,089.23 3,523,398.60 1,107,391.48 2,416,007.12 2,416,007.12
Reporting Period
for the sale of the
subsidiary
engaged in taxi
Revenue
generated from
the sale of the 104,895,528.48 33,282,459.96 71,613,068.52 71,613,068.52
subsidiary
engaged in taxi
Other notes
For details, please refer to Part XI Financial Statement-VII-81-VIII-4. Events.
6. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
The Group's business includes real estate business, housing lease management, transportation, catering services,
and other business (including: mechanical and electrical professional maintenance business, mechanics,
engineering supervision, parking lot, because of the above businesses income are small, approve them being
merged), etc. The Group separately organized and managed according to the business and the properties of
products and services provided. Each business division of the Group was a business group, provided the facing
risk and obtained rewards and products different from other division.
A. Real estate business divisions: real estate development, sales and rental
B. The property management business divisions: building management
C. Transportation business division: operating passenger car
D. Diet services: catering service
219
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
E. Other business: operating mechanical and electrical professional maintenance business, mechanics, engineering
supervision business, and parking lot
The management for the purpose of considering the decision of resources and evaluation of performance
separately managed the operating results of each unit of business.
(2) The Financial Information of Reportable Segment
Unit: RMB
Property Transportatio Catering Offset in
Item Real estate Others Undistributed Total
management n service segment
Operation 2,340,233,64 476,385,397. 49,005,268.8 30,898,120.0 2,904,690,69
8,168,255.00
revenue 8.93 77 2 1 0.53
Trading
revenues 12,194,135.9 -23,142,508.0
2,152,155.22 308,376.10 1,255,214.17 7,232,626.63
between 0 2
divisions
Sales 34,012,218.2 31,179,193.3
-2,833,024.95
expenses 8 3
Investments
in associated
companies 1,978,501.84 1,978,501.84
and joint
ventures
Asset
-59,772,928.0 -56,696,940.8
impairment 1,161,239.88 193,177.38 5,260.05 -38,453.20 1,754,763.03
0 6
loss
Depreciation
and 25,185,754.4 18,682,045.9 45,653,783.3
1,325,901.56 290,219.63 257,985.77 -88,124.04
amortization 8 8 8
charges
Total profits 1,262,824,73 36,008,085.7 60,444,377.8 -536,835,704. 827,404,431.
2,938,056.40 1,455,959.04 568,920.62
(losses) 6.43 1 2 81 21
8,212,029,08 473,106,698. 180,488,058. -3,489,035,20 5,393,331,54
Total assets 6,997,408.36 9,745,504.35
5.61 19 21 5.85 8.87
Total 5,103,507,09 390,850,800. 91,776,961.9 -3,128,155,57 2,470,775,66
4,797,246.16 7,999,141.80
liabilities 2.88 46 0 5.47 7.73
Leong term
equity
38,730,392.9 38,730,392.9
investments
6 6
in associated
companies
220
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
and joint
ventures
Increase
amount of
non-current
37,702,337.3 -131,887,229. -85,369,959.1
assets except 8,754,801.45 54,162.39 5,969.00
8 33 1
long term
equity
investment
(3) There Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Part of
Reportable Segment, shall Disclose the Reason.
Not applicable
(4) Other Notes
A. Income of foreign trade of production and labor serve
Item Reporting period Last period
Real estate 2,340,233,648.93 1,587,991,743.51
Property management 476,385,397.77 370,834,093.86
Transportation 49,005,268.82 57,409,314.27
Catering service 30,898,120.01 31,177,527.67
Other 8,168,255.00 11,791,397.87
Total 2,904,690,690.53 2,059,204,077.18
B. Geography information
Distribution of foreign trade income:
Item Reporting period Last period
Mainland of China 2,904,690,690.53 2,058,999,124.73
Countries and regions outside the Chinese mainland 204,952.45
Total 2,904,690,690.53 2,059,204,077.18
Distribution of total non-current assets:
Item Closing balance Opening balance
Mainland of China 456,036,976.47 630,919,971.30
Countries and regions outside the Chinese mainland 1,110,851.76 1,905,293.14
Total 457,147,828.23 632,825,264.44
C. Customers information
The customers of the Group were rather dispersed; there was no individual transaction over 10%.
221
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
7. Other Important Transactions and Events Having an Impact on Investors’ Decision-making
Not applicable
8. Others
Not applicable
XVII. Notes of Main Items in the Financial Statements of the Parent 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
99.03% 100.00% 98.81% 100.00%
which bad debt 89.05 89.05 889.05 9.05
provision separately
accrued
Accounts receivable
withdrawal of bad
893,820. 414,357. 479,462.5 1,111,4 556,593.4
debt provision of by 0.92% 46.36% 1.14% 50.08% 554,834.29
19 69 0 27.71 2
credit risks
characteristics:
Accounts receivable
with insignificant
single amount for 54,380.3 54,380.3 54,380.
0.05% 100.00% 0.05% 54,380.35 100.00%
which bad debt 5 5 35
provision separately
accrued
97,596,0 97,116,6 479,462.5 97,813, 97,258,86
Total 100.00% 99.51% 100.00% 99.43% 554,834.29
89.59 27.09 0 697.11 2.82
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end:
√ Applicable □ Not applicable
222
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Unit: RMB
Accounts receivable（by Closing balance
unit） Accounts 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 Part XI
Development Company Financial
Statement-(XIV)-2-(1)
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
Total 96,647,889.05 96,647,889.05 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 390,517.48 11,715.52 3.00%
Subtotal within 1 year 390,517.48 11,715.52 3.00%
4 to 5 years 503,302.71 402,642.17 80.00%
Total 893,820.19 414,357.69 46.36%
Notes of the determination basis for the group:
For details, please refer to Part Financial Statement-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) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-142,235.73; the amount of the reversed
or collected part during the Reporting Period was of RMB0.00.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of the entity Amount Method
Total 0.00 --
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-142,235.73; the
223
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
amount of the reversed or collected part during the Reporting Period was of RMB0.00.
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
Of which: significant actual verification of accounts receivable
Unit: RMB
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related
party transactions
Notes:
No such case in reporting period.
(4) Top Five of Account Receivable of Closing Balance Collected by Arrears Party
Name of the entity Closing balance Proportion (%) Closing balance of
bad debt provision
Shenzhen Jiyong Properties & Resources Development 93,811,328.05 96.12 93,811,328.05
Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.91 2,836,561.00
Rainbow Department Store Co., Ltd 503,302.71 0.52 402,642.17
Shenzhen K-Box Co., Ltd. 199,555.18 0.20 5,986.66
Luohu District Economic Development Co., Ltd. 54,380.35 0.05 54,380.35
Total 97,405,127.29 99.80 97,110,898.23
(5) Derecognition of Account Receivable Due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement of
Accounts Receivable
Naught
Other notes:
Naught
224
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
2. Other Accounts Receivable
(1) Other Account 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 123,873, 28,557,1 95,316,88 139,256 37,124,33 102,131,75
10.58% 23.05% 9.70% 26.66%
amount for which 986.03 01.98 4.05 ,094.17 9.53 4.64
bad debt provision
separately accrued
Other accounts
receivable withdrawn 1,294,3
1,044,66 11,008,8 1,033,660 8,866,593 1,285,509,0
bad debt provision 89.21% 1.05% 75,620. 90.14% 0.69%
9,585.77 00.80 ,784.97 .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
1,170,95 41,981,2 1,128,977 48,406,25 1,387,640,7
Total 100.00% 3.59% 47,041. 100.00% 3.37%
8,898.03 29.01 ,669.02 9.75 81.32
07
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Other accounts receivable
Other accounts
(unit） Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Shum Yip Properties Uncollectible for a long
102,827,097.12 7,510,213.07 7.30%
Development Co., Ltd. period
The Company was
Advances the shopping 6,980,273.01 6,980,273.01 100.00%
enforced to conduct,
225
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
mall gold business utilities irrecoverable
Shanghai Yutong Real
estate development Co., 5,676,000.00 5,676,000.00 100.00% Judgments, irrecoverable
Ltd.
Uncollectible for a long
Wuyao Company 3,271,837.78 3,271,837.78 100.00%
period
Dameisha Tourism Center 2,576,445.69 2,576,445.69 100.00% Suspend of projects
Elevated Train Project 2,542,332.43 2,542,332.43 100.00% Suspend of projects
Total 123,873,986.03 28,557,101.98 -- --
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) 73,218,530.80 2,196,555.92 3.00%
Subtotal of within 1 year 73,218,530.80 2,196,555.92 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 82,115,845.68 11,008,800.80 13.41%
Notes of determination basis for the Group:
For details, please refer to Part XI Financial Statement-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) Accounts Receivable Withdraw, Reversed or Collected during the Reporting Period
The amount of bad debt provision was RMB2,478,042.94, the amount of reversed or recovered bad debt provision in the Reporting
Period RMB0.00.
Significant amount of reversed or recovered bad debt provision
Unit: RMB
Name of the entity Reversed or collected amount Method
Total 0.00 --
The amount of bad debt provision was RMB2,478,042.94; the increase of bad-debt provision for reversed other
accounts receivable was RMB498,919.41. The decrease of amount of bad debt provision of foreign currency of
226
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
creditor's rights receivable after exchange was RMB815,145.09; the bad-debt provision transferred with the
original value to other current assets was RMB8,586,848.00 due to the termination of bankruptcy for Anhui
Nanpeng Papermaking Co., Ltd. judged by the court.
(3) Particulars of the Actual Verification of Other Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
Of which: significant actual verification of other accounts receivable
Unit: RMB
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related
party transactions
Notes of write-off other accounts receivable:
Naught
(4) Other Accounts Receivable Classified by the Nature
Unit: RMB
Nature Closing book balance Opening book balance
Margin 2,211,109.83 2,404,664.08
Pretty cash advance 86,342.50 85,500.00
Account receivable to subsidiary 1,065,434,315.98 1,394,246,757.56
Account receivable to affiliated company 1,747,264.25 10,646,304.25
Account receivable to non-affiliated company 101,479,865.47 28,663,815.18
Total 1,170,958,898.03 1,436,047,041.07
(5) Top 5 of the Closing Balance of the Other Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Closing balance of
Name of units Nature Closing balance Aging Proportion%
bad debt provision
PRD Yangzhou Real
Account receivable
Estate Development 499,838,221.77 Within 5 years 42.69%
to subsidiary
Co., Ltd.
PRD Group Xuzhou
Dapeng Real Estate Account receivable
369,589,836.60 Within 4 years 31.56%
Development Co., to subsidiary
Ltd.
Shum Yip Properties Account receivable 102,827,097.12 Over 5 years 8.78% 7,510,213.07
227
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Development Co., to subsidiary
Ltd.
Shenzhen
Huangcheng Real Account receivable
83,699,149.57 Within 4 years 7.15%
Estate Management to subsidiary
Co., Ltd.
Account receivable
Shenzhen Bus Group
to non-affiliated 72,436,216.82 Within 1 years 6.19% 2,173,086.50
Co., Ltd.
company
Total -- 1,128,390,521.88 -- 96.37% 9,683,299.57
(6) Account Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Closing balance Closing aging
subsidies time, amount and basis
Naught
(7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
Naught
(8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and Continued
Involvement
Naught
Other notes:
Naught
3. Long-term Equity Investment
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment to the
231,846,672.93 19,964,000.00 211,882,672.93 278,521,261.98 31,964,000.00 246,557,261.98
subsidiary
Investment to
joint ventures and
57,714,007.10 18,983,614.14 38,730,392.96 69,559,505.26 32,807,614.14 36,751,891.12
associated
enterprises
228
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Total 289,560,680.03 38,947,614.14 250,613,065.89 348,080,767.24 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 7,052,671.93 35,552,671.93
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
International Trade
29,850,000.00 29,850,000.00
Center Vehicles
Industry Co., Ltd.
Shenzhen
International Trade
Center Property 20,000,000.00 20,000,000.00
Management Co.,
Ltd.
Shenzhen Shenxin
Motor Rent Co., 12,877,260.98 12,877,260.98
Ltd.
Shenzhen
1,600,001.00 1,600,001.00 1,600,000.00
International Trade
229
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
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
Plaza
Shenzhen Real
1,380,000.00 1,000,000.00 2,380,000.00
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 8,052,671.93 54,727,260.98 231,846,672.93 19,964,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Closing
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Opening Reduced Changes bonus or al of Closing of
Investee 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
Shenzhen
32,263,24 1,235,372 33,498,61
Jifa
0.61 .15 2.76
Warehous
230
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
e Co.,
Ltd.
Tianan
Internatio
nal
Building
Property 4,488,650 743,129.6 5,231,780
Managem .51 9 .20
ent
Company
of
Shenzhen
36,751,89 1,978,501 38,730,39
Subtotal
1.12 .84 2.96
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 -13,824,0
Papermak
0.00 00.00
ing Co.,
Ltd.
32,807,61 -13,824,0 18,983,61 18,983,61
Subtotal
4.14 00.00 4.14 4.14
69,559,50 1,978,501 -13,824,0 57,714,00 18,983,61
Total
5.26 .84 00.00 7.10 4.14
(3)Other Notes
The decrease of long-term equity investment of Anhui Nanpeng Papermaking was stated in detail in Note VII-13.
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 974,400,482.05 191,844,816.06 1,409,651,839.78 331,649,548.84
231
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Total 974,400,482.05 191,844,816.06 1,409,651,839.78 331,649,548.84
Other notes:
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
433,297,336.35 529,600,000.00
accounted by cost method
Long-term equity investment income
1,978,501.84 2,225,713.71
accounted by equity method
Investment income arising from disposal of
135,696,301.09
long-term equity investments
Total 570,972,139.28 531,825,713.71
6. Others
Not applicable
XVIII. Supplementary Materials
1. Non-recurring Gains and Losses during this Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
The income arising from the disposal of
Gains/losses on the disposal of non-current
104,883,756.37 two subsidiaries. For details, please refer to
assets
Part XI Financial Statement-VIII-4 Events
Lawsuit compensation, for details, please
Profits or losses incurred from contingency
-5,491,792.67 refer to Part XI Financial Statement-XIV-2
of non-operating business.
Events
Other non-operating income and expenses
-466,062.66
other than the above
Less: Income tax effects 35,589,017.57
Total 63,336,883.47 --
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
232
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
2. Return on Equity (ROE) and Earnings Per Share (EPS)
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
26.64% 1.0453 1.0453
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
23.94% 0.9390 0.9390
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
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Not applicable
4. Others
Naught
233
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2017
Part XII Documents Available for Reference
I The financial statements with the signatures and seals of the legal representative and the
heads of financial affairs and the financial department;
II The original copy of the Independent Auditor’s Report with the seal of the CPA firm as
well as the signatures and seals of the certified public accountants; and
III The originals of all the Company’s announcements and documents disclosed on the
designated media during the Reporting Period.
234
