ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
Stock Code: 000011, 200011 Stock Name: PRD, PRD-B Announcement No. 2018-35
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
THIRD QUARTER REPORT 2018 (SUMMARY)
1
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (together with its consolidated subsidiaries, the “Company”, except where the
context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Shengxiang, the Company’s legal representative, Cai Lili, 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.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
2
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2018 31 December 2017 Change (%)
Total assets (RMB) 4,884,498,981.18 5,393,331,548.87 -9.43%
Equity attributable to the listed
2,885,240,065.59 2,921,693,794.08 -1.25%
company’s shareholders (RMB)
Q3 2018 YoY change (%) Q1-Q3 2018 YoY change (%)
Operating revenue (RMB) 373,989,694.46 -72.00% 1,199,003,679.43 -54.80%
Net profit attributable to the listed
61,216,163.81 -71.10% 144,188,691.40 -74.97%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 61,962,097.63 -70.64% 143,925,231.95 -75.14%
exceptional items (RMB)
Net cash generated from/used in
-- -- 49,981,030.19 114.09%
operating activities (RMB)
Basic earnings per share
0.1027 -71.10% 0.2419 -74.98%
(RMB/share)
Diluted earnings per share
0.1027 -71.10% 0.2419 -74.98%
(RMB/share)
Weighted average return on equity
2.09% -5.94% 4.92% -16.92%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2018 Note
Gain or loss on disposal of non-current assets (inclusive of
551,874.00
impairment allowance write-offs)
Non-operating income and expense other than above 274,942.21
Less: Income tax effects 563,356.76
Total 263,459.45 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
3
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders 44,868 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Name of Nature of Shareholding Shares in pledge or frozen
Number of shares Restricted shares
shareholder shareholder percentage Status Shares
Shenzhen
Construction
State-owned legal
Investment 54.33% 323,796,324 293,997,370
person
Holdings
Corporation
Shenzhen
Investment State-owned legal
9.49% 56,582,573 56,582,573
Management person
Corporation
Domestic natural
Du Xinye 0.65% 3,880,800
person
Domestic natural
Zhou Qun 0.52% 3,115,450
person
Domestic natural
Du Yunfeng 0.39% 2,323,000
person
Shenzhen
Duty-Free Domestic
Commodity non-state-owned 0.29% 1,730,300 1,730,300
Enterprises Co., legal person
Ltd.
Domestic natural
Gao Wenren 0.25% 1,506,000
person
4
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
Domestic natural
Yang Yaochu 0.24% 1,410,620
person
Domestic natural
Li Jing 0.20% 1,176,740
person
Domestic natural
Su Zhifen 0.19% 1,150,000
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
Shenzhen Construction Investment RMB-denominate
29,798,954 29,798,954
Holdings Corporation d ordinary stock
RMB-denominate
Du Xinye 3,880,800 3,880,800
d ordinary stock
RMB-denominate
Zhou Qun 3,115,450 3,115,450
d ordinary stock
RMB-denominate
Du Yunfeng 2,323,000 2,323,000
d ordinary stock
RMB-denominate
Gao Wenren 1,506,000 1,506,000
d ordinary stock
Domestically
Yang Yaochu 1,410,620 listed foreign 1,410,620
stock
Domestically
Li Jing 1,176,740 listed foreign 1,176,740
stock
RMB-denominate
Su Zhifen 1,150,000 1,150,000
d ordinary stock
Domestically
Mai Furong 1,130,500 listed foreign 1,130,500
stock
Wuhan Xingkaiyuan Electric Power RMB-denominate
1,100,000 1,100,000
Engineering Co., Ltd d ordinary stock
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 shareholders above Company does not know whether there are any connected parties or acting-in-concert parties
among the other 8 shareholders.
Top 10 ordinary shareholders
involved in securities margin trading N/A
(if any)
5
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
6
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
Part III Significant Events
I Changes in Key Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Accounts receivable rose 90.37% from the amount as at 31 December 2017 to RMB88,089,246.66 as at 30
September 2018, primarily driven by larger amounts due from homeowners to property management subsidiaries.
2. Prepayments rose 51.16% from the amount as at 31 December 2017 to RMB42,552,532.47 as at 30 September
2018, primarily driven by the increase in prepaid taxes.
3. Other receivables declined 79.28% from the amount as at 31 December 2017 to RMB18,925,116.21 as at 30
September 2018, primarily driven by the collection of the final payment from the share transfer of two taxi service
subsidiaries.
4. Inventories declined 24.18% from the amount as at 31 December 2017 to RMB1,403,219,359.96 as at 30
September 2018, primarily driven by the sale and settlement of properties.
5. Long-term prepaid expense rose 151.77% from the amount as at 31 December 2017 to RMB2,395,293.07 as at
30 September 2018, primarily driven by higher prepaid decoration expenses.
6. Taxes payable declined 35.99% from the amount as at 31 December 2017 to RMB763,324,955.45 as at 30
September 2018, primarily driven by the payment of land value added tax, corporate income tax and the like.
7. Other comprehensive income declined 44.96% from the amount as at 31 December 2017 to RMB-5,960,279.43
as at 30 September 2018, primarily driven by lower income from translation of foreign currency-denominated
financial statements caused by exchange rate fluctuations.
8. The year-on-year decreases of 72.00% and 54.80% in operating revenue to RMB373,989,694.46 and
RMB1,199,003,679.43 during Q3 2018 and Q1~Q3 2018, respectively, primarily resulted from lower property
sales revenue caused by a significantly smaller floor area sold and settled.
9. The year-on-year decreases of 72.00% and 54.80% in operating costs and expenses to RMB220,059,287.49 and
RMB909,246,628.59 during Q3 2018 and Q1~Q3 2018, respectively, primarily resulted from lower costs and
expenses in the property sales business caused by a significantly smaller floor area sold and settled.
10. The year-on-year decreases of 45.70% and 86.31% in taxes and surcharges to RMB55,644,770.75 and
RMB62,944,209.41 during Q3 2018 and Q1~Q3 2018, respectively, primarily resulted from lower land value
added tax and the like due to lower property sales revenue.
11. The year-on-year decreases of 38.54% and 25.30% in selling expense to RMB5,511,547.16 and
RMB14,808,076.92 during Q3 2018 and Q1~Q3 2018, respectively, primarily resulted from the decrease in sales
agent fees and service charges.
12. The year-on-year increases of 168.00% and 76.34% in finance costs (negative figures represent income) to
RMB-10,838,996.25 and RMB-38,456,220.90 during Q3 2018 and Q1~Q3 2018, respectively, primarily resulted
from higher interest income.
13. Asset impairment loss stood at RMB-4,797,271.69 during Q1~Q3 2018 with reversal down 91.36%
year-on-year, primarily resulted from the fact that certain previous valuation allowances on the Banshan Yujing
(Xuzhou) project and the Hupan Yujing (Yangzhou) project had been reversed in the same period of last year due
to rising prices, while the current period saw less such reversal.
7
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
14. Investment income stood at RMB1,348,773.97 during Q3 2018, up 181.29% year-on-year, and was
RMB1,398,021.17 during Q1~Q3 2018, down 26.13% year-on-year, primarily resulted from changes in
contributions from joint ventures.
15. The net amount of non-operating income and expense stood at RMB206,685.38 during Q1~Q3 2018 with such
net expense down 104.39% year-on-year, primarily resulted from higher confiscated income and fewer payments
for legal matters.
16. The year-on-year decreases of 72.95% and 73.79% in income tax expense to RMB18,351,487.77 and
RMB44,938,831.33 during Q3 2018 and Q1~Q3 2018, respectively, primarily resulted from a lower profit.
17. Operating profit, profit before tax and net profit (attributable to the Company as the parent) stood at
RMB80,582,782.78, RMB79,567,651.58 and RMB61,216,163.81 during Q3 2018, down 71.13%, 71.55% and
71.10% respectively year-on-year, and was RMB188,920,837.35, RMB189,127,522.73 and RMB144,188,691.40
during Q1~Q3 2018, down 74.89%, 74.70% and 74.97% respectively year-on-year, primarily resulted from less
property sales revenue and a lower gross profit margin of sold and settled floor areas.
18. The year-on-year decreases of 304.04% and 312.41% in other comprehensive income, net of tax to
RMB-2,264,052.37 and RMB-1,848,692.29 during Q3 2018 and Q1~Q3 2018, respectively, primarily resulted
from changes in income from translation of foreign currency-denominated financial statements caused by
exchange rate fluctuations.
19. The year-on-year increase of 114.09% in net cash generated from/used in operating activities to
RMB49,981,030.19 during Q1~Q3 2018 primarily resulted from more payments collected from homebuyers and
the decrease in taxes paid during the current period.
20. The year-on-year decrease of 19.86% in net cash generated from/used in investing activities to
RMB76,167,830.64 during Q1~Q3 2018 primarily resulted from a lower payment received in the current period
for the share transfer of two taxi service subsidiaries.
21. Net cash generated from/used in financing activities stood at RMB-177,787,631.06 during Q1~Q3 2018, with
such net cash used up 65.77% from the same period of last year, primarily resulted from the increase in dividends
paid during the current period.
22. Net increase in cash and cash equivalents stood at RMB-48,981,405.13 during Q1~Q3 2018, with such net
decrease down 86.75% from the same period of last year, primarily resulted from more payments collected from
homebuyers and the decrease in taxes paid during the current period.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
In order to continuously optimize the Company's industrial layout and asset structure, actively respond to the call for the resource
integration of municipal state-owned taxi enterprises and for strengthening strategic synergetic development of state-owned
enterprises and follow the trend of the industrial reform, the Company intended to transfer the whole shares in its subsidiaries
Shenzhen International Trade Center Car Industry Co., Ltd. and Shenzhen Shenxin Taxi Co., Ltd. to Shenzhen Bus Group Co., Ltd.
(hereinafter referred to as “Shenzhen Bus”) with price not less than the asset evaluation result of RMB189.533 million. This share
transfer was approved by the 17th Meeting of the 8th Board of Directors held on 30 June 2017 and the 1st Extraordinary General
Meeting of 2017 held on 17 July 2017 with independent and professional opinions from independent directors. In addition, the share
transfer was also approved by the Shenzhen State-owned Assets Supervision and Administration Commission (hereinafter referred to
as “Shenzhen SASAC”), and the evaluation report of the target company regarding this equity transfer has completed the filing
8
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
procedure of Shenzhen SASAC. Under the share transfer agreement, the Company received the basic transfer price of the share
transfer from Shenzhen Bus respectively on 30 August 2017 and 29 March 2018. During the Reporting Period, the Company
obtained the profit or loss of relevant period paid by Shenzhen Bus. So far, the rights and obligations involved in the
above-mentioned transaction have been totally performed, and this share transfer deal was closed.
Under the general deployment by the government in Shenzhen for the adjustment of state-owned assets management system,
Shenzhen SASAC issued SZSASAC [2004] No. 223 on 29 September 2004 in which it decided to set up Shenzhen Investment
Holdings Co., Ltd (hereinafter referred to as “SZIH”) taking the form of merger by new establishment. The merged parties involved
in are Shenzhen Investment Management Co., Ltd. (hereinafter referred to as “SIM”), Shenzhen Construction Investment Holdings
Corporation (hereinafter referred to as “SCIHC”) and Shenzhen Business Investment Holdings Corporation (hereinafter referred to as
“SBIHC”). SCIHC held 323,796,324 shares of SZPRD and SIM held 56,582,573 shares of SZPRD, which totally accounted for
63.82% of the total shares of SZPRD. After the issuing of the decision by Shenzhen SASAC on setting up SZIH taking the form of
merger by new establishment, the Company keeps introducing this situation under the item of Shareholders’ Profile in annual reports
since 2004 (including 2004) and showed investors that the Company’s actual controlling shareholder is SZIH and that the Company’s
actual controller is Shenzhen SASAC. SZIH received the Reply on the Consent for the Exemption of Shenzhen Investment Holdings
Co., Ltd. from the Tender Offer of Shenzhen Properties & Resources Development (Group) Ltd. (ZJXK <2018>No. 1408) issued by
China Securities Regulatory Commission on 5 September 2018. For more details, please refer to the Company’s relevant
announcements.
Announcement of significant
Disclosure date Disclosure website
event
No. 2017-28 Announcement on Resolution of the 17th Meeting of the 8th
1 July 2017
Board Directors on www.cninfo.com.cn
No. 2017-30 Announcement on Transfer of Total Shares in Two Taxi
1 July 2017 Companies under the Control of the Company to Shenzhen Bus Group
Co., Ltd. on www.cninfo.com.cn
The total share transfer of two
No. 2017-32 Announcement on Resolution of the 1st Extraordinary
taxi companies under the 18 July 2017
General Meeting of 2017 on www.cninfo.com.cn
control of the Company
No. 2017-47 Announcement on the Progress of the Transfer of Total
8 December 2017 Shares in Two Taxi Companies under the Control of the Company to
Shenzhen Bus Group Co., Ltd. on www.cninfo.com.cn
No. 2018-26 Announcement on the Progress of the Transfer of Total
27 July 2018 Shares in Two Taxi Companies under the Control of the Company to
Shenzhen Bus Group Co., Ltd. on www.cninfo.com.cn
No. 2004-15 Indicative Announcement on the Company’s State-owned
4 November 2004
Equity Management on www.cninfo.com.cn
No. 2016-20 Announcement on the Progress of the Company’s
15 October 2016
Management of state-owned State-owned Equity Management on www.cninfo.com.cn
shares held by the Company No. 2018-32 Announcement on Reception of Reply on Consent for the
Exemption of Shenzhen Investment Holdings Co., Ltd. from the Tender
5 September 2018
Offer Obligation Issued by China Securities Regulatory Commission on
www.cninfo.com.cn
9
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as explanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Lo
Accumu
ss on
lated
fair-valu Purchas Gain/los
Initial Beginni fair-valu Sold in
Security Security Security Measure e ed in s in Ending Account Funding
ng e Reporti
investm ment changes Reporti Reporti carrying
type code name carrying changes ng
method in ng ng amount ing title source
ent cost amount charged Period
Reporti Period Period
to
ng
equity
Period
Obtaine
Domesti Availabl
Gintian d in
cally/Ov 400016 Fair e-for-sal
A, 3,565,8 3,591,2 3,598,7 Gintian’
erseas 、 value e
Gintian 56.06 09.20 65.93 s debt
listed 420016 method financia
B restructu
stock l assets
ring
3,565,8 3,591,2 3,598,7
Total -- 0.00 0.00 0.00 0.00 0.00 -- --
56.06 09.20 65.93
Disclosure date of
announcement on Board’s
consent for securities
investments
Disclosure date of
announcement on general
meeting’s consent for
securities investments (if
any)
10
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
VI Wealth Management Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Inquired of the progress of Golden
2 July 2018 SZSE EasyIR Individual
Collar’s Resort Project
Inquired of situations of shareholders of
3 July 2018 SZSE EasyIR Individual
the Company
Inquired of the following operation of
17 July 2018 SZSE EasyIR Individual
Golden Collar’s Resort Project
Inquired of the profile of Golden
20 July 2018 SZSE EasyIR Individual
Collar’s Resort Project
Inquired of the presale of Golden
20 July 2018 SZSE EasyIR Individual
Collar’s Resort Project
Inquired of the situation of pilot
14 August 2018 SZSE EasyIR Individual
State-owned enterprises in Shenzhen
Inquired of the disclosure of the Interim
21 August 2018 SZSE EasyIR Individual
Report
Inquired of the cooperation with foreign
4 September 2018 SZSE EasyIR Individual
counterparts
Inquired of the key corporate
4 September 2018 SZSE EasyIR Individual
information
Inquired of the performance of the
4 September 2018 SZSE EasyIR Individual Company in Guangdong-Hong
Kong-Macao Bay Area
Inquired of the Company’s leasing
4 September 2018 SZSE EasyIR Individual
business
Inquired of situations of shareholders of
8 September 2018 SZSE EasyIR Individual
the Company
11
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2018 (Summary)
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
12
