Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Semi-annual Report 2016
2016-021
August 2016
1
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section I Important Statements, Contents and Terms
The board of directors (the “Board”), the board of supervisors (the “Board of Supervisors”) as well
as the directors, supervisors and senior management of Shenzhen Special Economic Zone Real
Estate & Properties (Group) Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy
and completeness of the contents of the Report, and shall be jointly and severally liable for any false
representation, misleading statements or material omissions in the Report.
All the directors attended the board meeting for the review of the Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into
share capital.
Zhou Jianguo, Board Chairman, Chen Maozheng, GM, Tang Xiaoping, accounting head for the
Report, and Qiao Yanjun, head of the accounting organ (head of accounting), hereby guarantee that
the Financial Report carried in the Report is factual, accurate and complete.
The 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.
2
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Contents
Semi-annual Report 2016 .................................................................................................................. 1
Section I Important Statements, Contents and Terms .................................................................... 2
Section II Corporate Profile .............................................................................................................. 5
Section III Highlights of Accounting Data and Financial Indicators ............................................ 7
Section IV Report by the Board of Directors .................................................................................. 9
Section V Significant Events ........................................................................................................... 16
Section VI Share Changes and Shareholders’ Profile ................................................................... 22
Section VII Preference Shares......................................................................................................... 26
Section VIII Directors, Supervisors and Senior Management ..................................................... 27
Section IX Financial Report ............................................................................................................ 29
Section X Documents Available for Reference ............................................................................ 112
3
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Terms
Term Meaning
Shenzhen Special Economic Zone Real Estate & Properties (Group)
Company, the Company, the Group
Co., Ltd.
The holding company Shenzhen Investment Holdings Co., Ltd.
4
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section II Corporate Profile
I Corporate information
Stock name SPG A（SPG B） Stock code 000029（200029）
Changed stock name (if
---
any)
Stock exchange Shenzhen Stock Exchange
Company name in
深圳经济特区房地产(集团)股份有限公司
Chinese
Abbr. (if any) 深房集团
Company name in
ShenZhen Special Economic Zone Real Estate&Properties (Group).co.，Ltd．
English (if any)
Abbr. (if any) SPG
Legal representative Zhou Jianguo
II Contact information
Board Secretary Securities Representative
Name Mr. Chen Ji Mr. Luo Yi
47/F, SPG Plaza, Renmin South 47/F, SPG Plaza, Renmin South
Address Road, Shenzhen, Guangdong Road, Shenzhen, Guangdong
Province, P.R.China Province, P.R.China
Tel. (86 755) 82293000-4718 (86 755) 82293000-4715
Fax (86 755) 82294024 (86 755) 82294024
E-mail spg@163.net spg@163.net
III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email
address of the Company during the Reporting Period?
□ Applicable √ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
2. About information disclosure and the place where the Report is kept
Did any change occur to information disclosure media and the place where the Report is kept during the Reporting
Period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for
disclosing the Report and the location where the Report is placed did not change during the Reporting Period. The
said information can be found in the 2015 Annual Report.
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Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable √ Not applicable
The registration date and place of the Company, its business license No., taxation registration No. and
organizational code did not change during the Reporting Period. The said information can be found in the 2015
Annual Report.
6
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section III Highlights of Accounting Data and Financial Indicators
I Major accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year
due to change in accounting policies or correction of accounting errors
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 1,097,886,969.68 1,147,552,773.96 -4.33%
Net profit attributable to
134,761,121.51 186,407,824.38 -27.71%
shareholders of the Company (RMB)
Net profit attributable to
shareholders of the Company
127,321,586.10 186,128,156.90 -31.59%
excluding exceptional profit and loss
(RMB)
Net cash flows from operating
426,167,980.76 455,886,943.95 -6.52%
activities (RMB)
Basic earnings per share
0.1332 0.1843 -27.73%
(RMB/share)
Diluted earnings per share
0.1332 0.1843 -27.73%
(RMB/share)
Weighted average return on equity
5.62% 8.27% -2.65%
(%)
As at the end of the As at the end of last
+/- (%)
Reporting Period year
Total assets (RMB) 4,476,971,687.18 4,179,937,120.75 7.11%
Net assets attributable to
2,464,895,851.04 2,331,704,116.07 5.71%
shareholders of the Company (RMB)
II Differences in accounting data under domestic and overseas accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under
international and Chinese accounting standards
√ Applicable □ Not applicable
Unit: RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
the Company the Company
Same period of last
Reporting Period Closing amount Opening amount
year
According to Chinese
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
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Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under overseas
and Chinese accounting standards
√ Applicable □ Not applicable
Unit: RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
the Company the Company
Same period of last
Reporting Period Closing amount Opening amount
year
According to Chinese
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
Items and amounts adjusted according to overseas accounting standards
According to overseas
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
3. Reason for any differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
III Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Profit/loss on disposal of non-current assets (including
-2,647.50
offset asset impairment provisions)
We have recovered the
amount involved in the
lawsuit with Luofu
Impairment provision reversal for accounts receivable
4,800,000.00 Mountain Travel Corp., and
on which the impairment test is carried out separately
the relevant bad-debt
provision has thus been
reversed
Compensation from the
Non-operating revenue and expense other than the
5,115,528.04 lawsuit with Luofu
above
Mountain Travel Corp.
Less: Corporate income tax 2,473,345.13
Total 7,439,535.41 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the
said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section IV Report by the Board of Directors
I Overview
2016 marked the opening of China’s 13th Five-Year Plan for National Economy and Social
Development, which included a macro-economic policy of steady growth. However, the downward
pressure on economy was mounting and the real estate market polarized. To deal with that, we
carefully drew up our development strategies, properly ran our main business, strictly controlled
costs and constantly improved our management capability. Meanwhile, we beefed up project
construction and marketing and tried to increase our professionalism and brand influence for a
stable growth.
II Analysis of main business
Overview
For the Reporting Period, we achieved operating revenues of RMB1,097.89 million, down 4.33%
from the same period of last year; operating profit of RMB175.90 million, a 29.48% decrease on a
year-on-year basis; total profit of RMB181.01 million, decreasing 27.55% from a year earlier; and
net profit attributable to our shareholders of RMB134.76 million, down 27.71% from the same
period of last year, mainly because our real estate revenue fell from a year earlier.
YoY movements in major financial data
Unit: RMB
Reporting Same period of
YoY +/-% Main reason for movement
Period last year
1,097,886,969.6 1,147,552,773.9
Operating revenues -4.33%
8 6
Operating costs 816,027,244.11 697,645,876.15 16.97% Decreased gross profit margin
Decrease in sales agency fees and
Selling expenses 5,107,741.43 17,246,176.75 -70.38%
commissions
Administrative
26,957,331.77 28,705,983.90 -6.09%
expenses
Construction of new real estate project started
Finance costs -7,048,153.64 24,955,931.85 -128.24% in the Reporting Period and the relevant
interest was thus capitalized
Corporate income tax 46,284,687.48 63,426,291.44 -27.03% Decreased total profit
Net cash flows from
426,167,980.76 455,886,943.95 -6.52%
operating activities
Increase in cash received as return on
Net cash flows from investment and decrease in cash paid to
-20,267.34 -972,035.99 97.91%
investing activities acquire fixed assets, intangible assets and
other long-term assets
Net cash flows from
-99,464,268.41 -158,399,191.80 37.21% Decrease in loan repayments
financing activities
Net increase in cash
326,931,012.56 296,509,736.30 10.26%
and cash equivalents
Business tax and
86,368,209.71 129,612,334.64 -33.36% Decreased real estate revenue
surtaxes
Non-operating 5,213,457.94 461,705.12 1,029.17% Compensation from the lawsuit with Luofu
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Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
revenue Mountain Travel Corp.
Asset impairment
-4,800,000.00 159,351.00 -3,112.22% Reversal of bad-debt provision
loss
Major changes in the profit structure or sources of the Company during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Reporting Period progress of the future development planning in the disclosed documents of the Company such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Review the progress of any previously disclosed business plan in the Reporting Period:
Not applicable.
III Breakdown of main business
Unit: RMB
Increase/decrea Increase/decrea
Increase/decrea
se of operating se of gross
se of operating
Operating Gross profit revenue over profit rate over
Operating cost cost over the
revenue rate the same the same
same period of
period of last period of last
last year
year year
Classified by industry
Real estate 531,354,186.0 302,088,298.9
43.15% -31.73% -19.17% -8.84%
0 8
450,003,730.3
Construction 472,256,586.11 4.71% 63.66% 64.15% -0.28%
5
Leasing 39,640,195.52 17,884,231.72 54.88% -1.73% 14.02% -6.24%
Property
54,794,063.91 50,959,546.17 7.00% 1.87% 3.29% -1.28%
management
1,098,045,031. 820,935,807.2
Subtotal 25.24% -5.42% 13.58% -12.51%
54 2
Less: offset
internal 15,370,384.42 14,869,496.49 3.26% -37.91% -39.34% 2.28%
transactions
1,082,674,647. 806,066,310.7
Total 25.55% -4.72% 17.09% -13.87%
12 3
Classified by product
472,173,003.0 274,265,737.3
Housing units 41.91% -20.77% -5.26% -9.51%
0 6
Shops 59,181,183.00 27,822,561.62 52.99% 242.73% 330.34% -9.57%
566,690,845.5 546,670,069.8
Other products 3.53% 0.29% 61.18% -7.84%
4 6
1,098,045,031. 566,690,845.5
Subtotal 48.39% -5.42% 15.15% -13.36%
54 4
Offset internal
15,714,975.42 14,869,496.49 5.38% -36.52% -39.34% 4.40%
transactions
1,082,674,647. 806,066,310.7
Total 25.55% -4.72% 17.09% -13.87%
12 3
Classified by region
Guangdong 1,035,923,706. 762,496,486.3
26.39% -7.63% 12.84% -13.35%
Province 97 5
Other regions 61,835,121.24 58,439,320.87 5.49% 57.52% 57.24% 0.17%
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Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
in China
Overseas 286,203.33 100.00% 8.60% 0.00% 0.00%
1,098,045,031. 820,935,807.2
Subtotal 25.24% -5.42% 15.15% -13.36%
54 2
Less: offset
internal 15,370,384.42 14,869,496.49 3.26% -37.91% -39.34% 2.28%
transactions
1,082,674,647. 806,066,310.7
Total 25.55% -4.72% 17.09% -13.87%
12 3
IV Core competitiveness analysis
As one of the earliest real estate listed companies in Shenzhen, the Company has a history over 30
years in real estate development in Shenzhen and rich experience in the main business of real estate
development. In recent years, through the forging and the baptism from Guangming SPG Chuanqi
Hill, Longgang SPG Shanglin Garden and the Shantou Project, the Company accelerated the
construction of the modern enterprise human resources management mechanism, made great effort
to forge the professional and high-quality development team; continuously perfect the projects
development management system as well as the control process, which led the professional level
and the control capacity improved obviously, the planning, construction, cost management and
control, sales ability and the brand image enhanced efficiently, the service power of the real estate
major business strengthened constantly with the core competitiveness improving all the time. The
Company executed the profits distribution of the half year of Y2015 and up to the end of Y2015,
the operating income and the profits had realized the increase for seven years in succession with the
third quarter be included in the component stocks such as the “Hang Seng index of Shenzhen and
Hong Kong” and “Hang Seng Shenzhen and Hong Kong Real Estate Index”; in Y2015, the
Company also granted multiple prizes such as the “Best Credit Enterprise in Guangdong Province”
and “Five-star Civilized Law-abiding Rental Enterprise”.
V Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
□ Applicable √ Not applicable
The Company did not invest in any external party in the Reporting Period.
(2) Equity-holdings in financial enterprises
□ Applicable √ Not applicable
The Company did not hold any equity in any financial enterprise in the Reporting Period.
(3) Investment in securities
□ Applicable √ Not applicable
The Company did not invest in any securities in the Reporting Period.
11
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
(4) Shareholdings in other listed companies
□ Applicable √ Not applicable
There was no such situation of the Company in the Reporting Period.
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
□ Applicable √ Not applicable
There was no such situation of the Company in the Reporting Period.
(2) Derivative investments
□ Applicable √ Not applicable
There was no such situation of the Company in the Reporting Period.
(3) Entrustment loans
□ Applicable √ Not applicable
There was no such situation of the Company in the Reporting Period.
3. Use of raised funds
□ Applicable √ Not applicable
There was no such situation of the Company in the Reporting Period.
4. Analysis to main subsidiaries and stock-participating companies
√ Applicable □ Not applicable
Main subsidiaries and stock-participating companies:
Unit: RMB
Compa Main
Company Registered Operating Operating
ny Industry products/s Total assets Net assets Net profit
name capital revenues profit
variety ervices
Shenzhen
Petrel Subsidi Hotel RMB30 38,376,857.6 13,619,083.3 1,023,013.3
Service 44,220,340.54 760,473.32
Hotel Co., ary Service million 0 7 8
Ltd.
Shenzhen
Property
Property Subsidi RMB7.25 18,987,330.9 61,669,453.7 1,132,460.8
Service manageme 83,500,969.11 944,467.29
Manageme ary million 2 9 9
nt
nt Co., Ltd.
Shenzhen Fixing and
Zhentong Subsidi maintenan RMB10 379,268,361.2 20,163,761.1 472,821,787. 2,801,149.6 2,579,548.5
Service
Engineerin ary ce of million 5 0 01 1 4
g Co., Ltd. projects
Shenzhen Subsidi Service Constructi RMB8 8,463,308.30 7,773,234.03 1,009,577.66 -618,814.39 -618,814.39
12
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Huazhan ary on million
Constructi supervisio
on n
Supervisio
n Co., Ltd.
Shenzhen
SPG
Subsidi RMB10.29 13,292,400.6
Mini-bus Service 17,381,491.14 1,872,459.87 260,419.45 195,314.59
ary million 4
Rent Co., Rent of
Ltd. mini-bus
Investm Investment
Xin Feng
Subsidi ent , HKD1 291,756,977.9 34,680,002.9 27,753,254.0
Real Estate 42,519.15 -184,862.63
ary manage manageme million 4 5 0
Co., Ltd.
ment nt
Great Wall Developm
Subsidi Real USD0.5 -83,837,963.8
Estate Co., ent of real 19,131,282.00 286,203.33 -110,409.13 -110,409.13
ary estate million 8
Inc. (U.S.) estate
Investm Investment
Xin Feng
Subsidi ent and HKD1 152,493,666.0 -412,506,860. -4,206,208. -4,208,630.0
Enterprise 123,500.00
ary manage manageme million 7 34 89 6
Co., Ltd.
ment nt
Shenzhen
SPG Developm
Subsidi Real RMB30 793,657,280.0 138,571,426. 222,309,042. 77,784,597. 58,315,947.
Longgang ent of real
ary estate million 5 58 00 03 77
Developme estate
nt Co., Ltd.
Shantou
Huafeng Developm
Subsidi Real RMB30 497,608,951.2 13,449,885.4
Real Estate ent of real
ary estate million 9 7
Developme estate
nt Co., Ltd.
5. Significant projects invested with non-raised funds
√ Applicable □ Not applicable
Unit: RMB’0,000
Cumulative
Disclosure
Total planed Input for this actual input Project Project Disclosure
Project name index (if
investment period as at the progress earnings date (if any)
any)
period-end
Chuanqi Donghu
Mingyuan
(originally as 44,600 1,034.2 10,764.31 24.00%
Donghu Dijing
Mingyuan)
Jingtian Tianju
International 20,000 423.89 5,352.41 27.00%
Apartment
SPG Cuilinyuan
(South Part of
50,000 3,237.76 17,989.29 35.00%
SPG Shanglin
Garden)
Phase I of
73,200 7,737.01 30,486.27 41.00%
Tianyuewan
Total 187,800 12,432.86 64,592.28 -- -- -- --
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Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
VI Predict the operating results of January-September 2016
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin
to the end of the next Reporting Period according to prediction, as well as explanations on the reasons:
□ Applicable √ Not applicable
VII Explanation by the Board of Directors and the Supervisory Committee about the
“non-standard audit report” issued by the CPAs firm for the Reporting Period
□ Applicable √ Not applicable
VIII Explanation by the Board of Directors about the “non-standard audit report” for last
year
□ Applicable √ Not applicable
IX Implementation of profit allocation during the Reporting Period
Profit allocation plan implemented during the Reporting Period, especially execution and adjustment of the cash
dividend plan and the plan for turning capital reserve into share capital:
□ Applicable √ Not applicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital of
the profits distribution plan of last year.
X Preplan for profit distribution and turning capital reserve into share capital for the
Reporting Period
Applicable √ Not applicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital of
the profits distribution plan of the half year.
XI Researches, visits and interviews received in the Reporting Period
√ Applicable □ Not applicable
Way of Main discussion and materials provided by
Time Place Visitor type Visitor
reception the Company
Inquire of the situation such as the
By Individual development progress of the projects and the
29 Jan. 2016 Office Individual
telephone investor number of the shareholders of the Company,
didn’t offer written materials
Inquire of the appointed disclosure time of
By Individual the annual report and the development as
9 Mar. 2016 Office Individual
telephone investor well as sales situation of the 2015 projects of
the Company, didn’t offer written materials
Inquire of the situation such as the
By Individual development progress of the projects and the
13 May 2016 Office Individual
telephone investor influences on the Company of the Shenzhen
state-owned assets reform of state-owned
14
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
enterprises, didn’t offer written materials
Inquire of the appointed disclosure time of
By Individual the semi-annual report and the number of the
28 Jun. 2016 Office Individual
telephone investor shareholders of the Company, didn’t offer
written materials
15
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section V Significant Events
I Information about corporate governance
The actual situation of the corporate governance had no difference with the Company Law and the
requirements of the relevant regulations of the CSRC.
For initiative implementing and Executing the requirements of the Notice on Developing the
Special Project of Protecting the “ACTION BLUE SKY” by the Investors issued by Shenzhen
Securities Regulatory Bureau (SZJF[2016] No. 15), and for practically improve the quality of the
information disclosure of the Company, guide the investors to build up the concept of long-term
investment and rational investment as well as to put the protection of the legal equities of the
investors in practice, the Company had formulated the special work proposal of the “ACTION
BLUE SKY”. And according to the requirements of the proposal, the Company had executed the
special bulletin on the notice spirit and the special work proposal on the Board of Directors with
corresponding promotion among the inter network of the Company, which led the management staff
all levels and the general employees to fully know of the obligations of the listed companies as well
as to build up the responsibility of the investors’ equities protection. Besides, the Company also
disclosed the management situation of the investor relations during the disclosure period of the
periodic report according to the requirements of the proposal and promoted the investors’ protection
concept through various channels for a long time to do best in the investors service work.
II Lawsuits
Significant lawsuit or arbitration
□ Applicable √ Not applicable
No such situation of the Company during the Reporting Period.
Other lawsuits
√ Applicable □ Not applicable
Involved Date
Basic Projected
amount of Disclosure
informatio liability Progress Ruling and influence Execution of ruling
(RMB’0, disclos index
n or not
000) ure
① Business Tourism
Company had to pay for
the compensation The applicant has received
RMB36,620 thousand and RMB15.20 million. Now
the relevant interest (from Business Tourism www.cninf
Xi’an In 14 September 1998 to the Company has no
29
o.com.cn
Project 2,100 No executio payment day) to Xi’an executable properties and Aug. Text of the
Lawsuit n Fresh Peak Company Xi’an Joint Commission on 2015 2015
within one month after Commerce has been Semi-annua
the judgment entering refusing to execute the l Report
into force. If the Business ruling. It is difficult to
Tourism Company failed recover the rest.
to pay in time, it had to
pay double debt interests
16
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
to Xi’an Fresh Peak
Company for the overdue
period; ② Xi’an Joint
Commission on
Commerce had jointly
and severally obligation
of the interests of the
compensation; .③
Business Tourism
Company shall bear
RMB227,500 of the
acceptance fee and the
security fee.
On 21 April. 2016, the
Company had signed the
Pacification Agreement on
① Luofu Hill Tourism Enforcement with the
Company has paid back Guangdong Luofu Hill
RMB9.6 million; ② Tourism Development
Luofushan Administration Corporation, www.cninf
Committee had to Administration Committee o.com.cn
Executio
Luofu Hill undertake one third of the of Guangdong Luofu Hill 7 May Announce
n
project 960 No Scenic Area. According to ment on the
complete debts which Luofushan 2016
Lawsuit Tourism was unable to the agreement, Guangdong Progress of
d
repay; ③ Luofu Hill Luofu Hill Tourism the
Tourism Company shall Development Corporation Lawsuits
bear RMB167,700 of the had transferred the
case acceptance fee and settlement agreement
the security fee. amount of RMB18 million
in the appointed account of
the Company and the case
had closed since then.
III Media’s queries
□Applicable √Not applicable
There was no media’s common query during the Reporting Period.
IV Bankruptcy reorganization
□ Applicable √ Not applicable
No event involving bankruptcy reorganization occurred to the Company during the Reporting Period.
V Asset transactions
1. Purchase of assets
□ Applicable √ Not applicable
There was no purchase of asset by the Company during the Reporting Period.
17
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Sale of assets
□ Applicable √ Not applicable
There was no sale of assets by the Company during the Reporting Period.
3. Business combination
□ Applicable √ Not applicable
No business combination occurred to the Company during the Reporting Period.
VI Implementation of equity incentive and its influence
□ Applicable √ Not applicable
The Company did not make or carry out any equity incentive plan during the Reporting Period.
VII Significant related-party transactions
1. Related-party transactions concerning routine operation
√ Applicable □ Not applicable
Obtain
As a able
Appro
percent market
Relatio Transa ved Over Index to
Type Conten age of Mode price
n with Pricing Transa ction transac the Disclos the
Relate of ts of transac of for
the princip ction amount tion approv ure disclosed
d party transac transac tions of settlem transac
Compa le price (RMB’ line ed line date informati
tion tion the ent tions of
ny 0,000) (RMB’ or not on
same the
0,000)
kind same
kind
Shenzh
Shenzh en 2015
en Zhento Annual
Open Bank 30
Jianan ng Constr 1 Jun. Report
biddin - 244.32 0.52% 244.32 No transfe - Mar.
Group Engine uction 2012 www.cni
g r 2016
Co., ering nfo.com.
Ltd. Co., cn
Ltd.
Total -- -- 244.32 -- 244.32 -- -- -- -- --
Details about return of
Naught
large-amount sales
Where the Company classifies
and estimates the total amount
of routine related-party
transactions for the Reporting Naught
Period, explain the actual
implementation during the
Reporting Period (if any)
Explain why the transaction
price is greatly different from Not applicable
the market price (if any)
18
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Related-party transactions arising from acquisition and sale of assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-party transactions arising from joint investment in external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other related transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX. Significant contracts and their execution
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contract
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Lease
□ Applicable √ Not applicable
No such cases in the Reporting Period.
19
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Guarantees provided by the Company
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other significant contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other significant related-party transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the Reporting Period or such commitments carried down into the Reporting Period
□ Applicable √ Not applicable
No such case in Reporting Period.
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
This semi-annual report is un-audited.
XII. Punishment and rectification
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV. Other significant events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XV. Corporation bonds
Whether existing corporation bonds public issued and listed in Stock Exchange and maturity or maturity but not
20
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
fully paid on the approval report date of semi-annual report
Naught
21
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section VI Share Changes and Shareholders’ Profile
I. Changes in shares
Unit: share
Before the change Increase/decrease (+/-) After the change
Capitaliz
Newly
Proporti Bonus ed Proporti
Amount issue Others Subtotal Amount
on shares Capital on
share
reserves
I. Restricted shares 0 0.00% 0 0 0 0 0 0 0.00%
1.Shares held by the
0 0.00% 0 0 0 0 0 0 0.00%
state
2. Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
state-own Legal-person
3. Shares held by other
0 0.00% 0 0 0 0 0 0 0.00%
domestic investors
Among which: shares
held by domestic legal 0 0.00% 0 0 0 0 0 0.00%
person
Shares held by
domestic natural 0 0.00% 0 0 0 0 0 0 0.00%
person
4.Oversea
0 0.00% 0 0 0 0 0 0.00%
shareholdings
Among which: shares
held by oversea legal 0 0.00% 0 0 0 0 0 0 0.00%
person
Shares held by oversea
0 0.00% 0 0 0 0 0 0 0.00%
natural person
II. Shares not subject 1,011,66 1,011,66
100.00% 0 0 0 0 0 100.00%
to trading moratorium 0,000 0,000
1. RMB ordinary 891,660, 891,660,
88.14% 0 0 0 0 0 88.14%
shares 000 000
2. Domestically listed 120,000, 120,000,
11.86% 0 0 0 0 0 11.86%
foreign shares 000 000
3. Oversea listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
1,011,66 1,011,66
III. Total shares 100.00% 0 0 0 0 0 100.00%
0,000 0,000
Reason for the change in shares
□ Applicable √ Not applicable
Approval of the change in shares
□ Applicable √ Not applicable
Reason for the change in shares
□ Applicable √ Not applicable
Effects of the change in shares on the basic EPS, diluted EPS, net assets per share attributable to common
shareholders of the Company and other financial indexes over the last year and last period
□ Applicable √ Not applicable
22
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Other contents that the Company considered necessary or were required by the securities regulatory authorities to
disclose
□ Applicable √ Not applicable
Explanation on changes in share capital & the structure of shareholders, the structure of assets and liabilities
□ Applicable √ Not applicable
II. Total number of shareholders and their shareholding
Unit: share
Total number of Total number of preferred
shareholders at the 70,920 stockholder with vote right 0
Reporting Period restored (if any)
Shareholding of common shareholders holding more than 5% shares or the top 10 of common shareholders
Number Pledged or frozen shares
Number Increase
of shares Number of
of and
held shares held
Holding shareholdi decrease
Name of Nature of subject subject to
percentag ng at the of shares Status of
shareholder shareholder to trading Amount
e (%) end of the during shares
trading moratoriu
Reporting Reporting
moratori m
Period Period
um
Shenzhen
Investment State-owned 642,884,2 642,884,26
63.55%
Holdings Co., corporation 62 2
Ltd
Shanjin
Jinkong
Capital
Management Domestic
11,000,05
Co., Ltd. － non-state-owne 1.09% 11,000,050
0
Shanjin d corporation
Jinkong
Wenjian No.
1 Fund
Bank of
China- E
Fund Active Domestic
Growth non-state-owne 0.39% 3,999,862 3,999,862
Securities d corporation
Investment
Fund
Century Domestic
Securities non-state-owne 0.39% 3,891,700 3,891,700
Co., Ltd. d corporation
Domestic
Lu Zhigao 0.37% 3,736,949 3,736,949 Pledged 1,219,177
individual
Rongtong
Capital
Management-
Domestic
CGB-Rongto
non-state-owne 0.13% 1,356,200 1,356,200
ng Capital
d corporation
Golden
sunflower
No. 1 Asset
23
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Management
Plan
Domestic
Ni Haichun 0.13% 1,312,600 1,312,600
individual
Yang Domestic
0.13% 1,266,000 1,266,000
Shuilian individual
Central
Huijin Asset State-owned
0.12% 1,165,500 1,165,500
Management corporation
Co., Ltd.
Yang Domestic
0.11% 1,115,750 1,115,750
Jianxiong individual
Strategic investors or the general legal
person due to the placement of new shares
N/A
become the top 10 common shareholders
(if any) (note 3)
The Company has found no related parties or act-in-concert parties as
Explanation on associated relationship
defined in the Administrative Measures for Shareholding Changes in
or/and persons
Listed Companies among the shareholders above.
Particulars about shares held by top 10 common shareholders not subject to trading moratorium
Number of shares held not subject to trading Type of share
Name of shareholder
moratorium at the end of the period Type of share Amount
Shenzhen Investment Holdings RMB ordinary
642,884,262 642,884,262
Co., Ltd shares
Shanjin Jinkong Capital
Management Co., Ltd. － RMB ordinary
11,000,050 11,000,050
Shanjin Jinkong Wenjian No. 1 shares
Fund
Bank of China- E Fund Active
RMB ordinary
Growth Securities Investment 3,999,862 3,999,862
shares
Fund
RMB ordinary
Century Securities Co., Ltd. 3,891,700 3,891,700
shares
RMB ordinary
Lu Zhigao 3,736,949 3,736,949
shares
Rongtong Capital
Management-CGB-Rongtong RMB ordinary
1,356,200 1,356,200
Capital Golden sunflower No. shares
1 Asset Management Plan
RMB ordinary
Ni Haichun 1,312,600 1,312,600
shares
RMB ordinary
Yang Shuilian 1,266,000 1,266,000
shares
Central Huijin Asset RMB ordinary
1,165,500 1,165,500
Management Co., Ltd. shares
Domestically
Yang Jianxiong 1,115,750 listed foreign 1,115,750
shares
Explanation on associated relationship
among the top ten shareholders of tradable
share not subject to trading moratorium, The Company has found no related parties or act-in-concert parties as
as well as among the top ten shareholders defined in the Administrative Measures for Shareholding Changes in
of tradable share not subject to trading Listed Companies among the shareholders above.
moratorium and top ten shareholders, or
explanation on acting-in-concert
Particular about shareholder participate in Shareholder No. 5 and No. 7 among the top 10 shareholders hold some
24
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
the securities lending and borrowing of their shares in the Company in their credit accounts.
business (if any) (note 4)
Whether the shareholders of a company conducted the transaction of repurchase under the agreement during the
Reporting Period
□ Yes √ No
There was no shareholder of a company conduct the transaction of repurchase under the agreement during the
Reporting Period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder during the Reporting Period
□ Applicable √ Not applicable
The controlling shareholder did not change during the Reporting Period.
Change of the actual controller during the Reporting Period
□ Applicable √ Not applicable
The actual controller did not change during the Reporting Period.
IV. Particulars on shareholding increase scheme during the Reporting Period proposed or
implemented by the shareholders and act-in-concert persons
□ Applicable √ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the Reporting
Period proposed or implemented by the shareholders and act-in-concert persons.
25
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section VII Preferred Shares
□ Applicable √ Not applicable
There was no preferred stock during Reporting Period.
26
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section VIII Directors, Supervisors, Senior Management
I. Changes in shareholding of Directors, Supervisors and Senior Management Staff
√ Applicable □ Not applicable
Number of
Amount Amount Number of
Shares restricted Number of
of shares of shares Number restricted
held at shares restricted
increased decrease of shares shares
Current/f the authorized shares
Name Position at the d at the held at authorized
ormer period-be at the authorized at
Reportin Reportin period-en at the
gin Reporting the period-end
g Period g Period d (share) period-begi
(share) Period (share)
(share) (share) n (share)
(share)
Chairma
Zhou
n of the Current 0 0 0 0 0 0 0
Jianguo
Board
General
Chen
Manager
Maozhen Current 0 0 0 0 0 0 0
and
g
Director
Zhuang Supervis
Current 80,000 0 0 80,000 0 80,000 0
Quan or
Deng
Kangche Director Current 10,000 0 0 10,000 0 10,000 0
ng
Wen Li Director Current 0 0 0 0 0 0 0
Jiang
Director Current 0 0 0 0 0 0 0
Lihua
Zhang CFO and
Current 0 0 0 0 0 0 0
Lei Director
Independ
Liu
ent Current 0 0 0 0 0 0 0
Quanmin
director
Independ
Song
ent Current 0 0 0 0 0 0 0
Botong
director
Independ
Zhang
ent Current 0 0 0 0 0 0 0
Shunwen
director
Wang Supervis
Current 0 0 0 0 0 0 0
Xiuyan or
Supervis
Li Yufei Current 0 0 0 0 0 0 0
or
Xiong
Supervis
Xingnon Current 0 0 0 0 0 0 0
or
g
Supervis
Lin Jun Current 0 0 0 0 0 0 0
or
Teng
Vice GM Current 0 0 0 0 0 0 0
Xianyou
Wei
Vice GM Current 0 0 0 0 0 0 0
Hanping
Tang Vice GM Current 0 0 0 0 0 0 0
27
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Xiaoping
Chairma
Chen Ji n Current 0 0 0 0 0 0 0
Secretary
Shi
Supervis
Chunron Former 0 0 0 0 0 0 0
or
g
Total -- -- 90,000 0 0 90,000 0 90,000 0
II. Particulars about changes of Directors, Supervisors and Senior Executives
√ Applicable □ Not applicable
Name Position Type Date Reason
Lin Jun Supervisor Elected 27 April 2016 Elected by the congress of workers and staff
Shi Chunrong Supervisor Former 27 April 2016 Left for retirement
28
Section IX Financial Report
Ⅰ. Audit report
Has this semi-report been audited?
□ Yes √ No
Ⅱ.Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
As of 30 Jun 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd
Currency: RMB Yuan
Items Closing balance Opening balance
Current asset：
Monetary fund 1,502,687,318.92 1,175,756,306.36
Financial assets at fair value
through profit or loss
Note receivables 18,153,767.30 18,663,872.02
Account receivables 158,963,445.82 112,543,908.66
Prepayments 45,513,420.79 22,952,379.40
Interest receivable
Dividend receivable 1,052,192.76 1,052,192.76
Other receivables 63,357,207.23 61,673,343.42
Inventories 2,031,681,084.13 2,146,223,895.61
Non-current asset due in 1
year
Other current asset 69,522,405.70 40,315,831.06
Total current assets 3,890,930,842.65 3,579,181,729.29
Non-current assets：
Available-for-sale financial
17,464,240.74 17,464,240.74
assets
Held-to-maturity investments
Long-term receivables
Long-term equity
57,705,013.77 57,768,804.36
investments
Investment property 425,276,998.07 435,058,564.20
Fixed assets 49,014,628.32 52,213,985.31
Construction in progress
Fixed assets pending for
disposal
Intangible assets 5,400,450.00 5,654,820.00
Development disbursements
Goodwill
Long-term Prepaid Expenses 670,991.27 397,608.64
Differed tax asset 30,508,522.36 32,197,368.21
Other non-current assets
Total non-current assets 586,040,844.53 600,755,391.46
Total assets 4,476,971,687.18 4,179,937,120.75
Current liabilities：
Short-term loans 122,284,378.21 143,418,286.29
29
Notes payable
Account payable 182,424,928.03 290,453,110.50
Advance Received from
853,930,943.57 475,620,347.35
Customers
Employee benefits payable 37,140,201.87 38,750,019.72
Tax payable 57,050,233.14 63,459,415.42
Interest payable 16,535,277.94 17,535,277.94
Dividend payable
Other payables 391,593,911.95 385,811,304.33
Non-current liability due in 1
144,239,634.08 168,727,608.54
year
Other current liability
Total current liability 1,805,199,508.79 1,583,775,370.09
Non-current liabilities：
Long-term loan 325,399,708.82 382,233,324.88
Bond payable
Long-term payable 10,438,655.14 10,480,629.35
Differed tax liability
Other non-current liabilities
Total non-current liabilities 335,838,363.96 392,713,954.23
Total liabilities 2,141,037,872.75 1,976,489,324.32
Owners’ equity：
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserve 978,244,910.11 978,244,910.11
Less：Treasury Share
Other comprehensive income 8,494,205.07 10,063,591.61
Special reserves
Surplus reserves 40,823,841.35 40,823,841.35
Common risk provision
Undistributed profit 425,672,894.51 290,911,773.00
Equity attributable to parent
2,464,895,851.04 2,331,704,116.07
company
Minority interests -128,962,036.61 -128,256,319.64
Total owners’ equity 2,335,933,814.43 2,203,447,796.43
Total liabilities and owner's equity 4,476,971,687.18 4,179,937,120.75
Legal representative: Zhou Jianguo Person in charge of accounting: Tang Xiaoping
Person in charge of accounting organ:Qiao Yanjun
2.Balance sheet of the Parent Company
As of 30 June 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Currency: RMB Yuan
Items Closing balance Opening balance
Current asset：
Monetary fund 1,104,538,762.64 858,492,165.42
Financial assets at fair value
through profit or loss
30
Note receivables
Account receivables 5,088,762.24 9,412,675.23
Prepayments 9,000,000.00
Interest receivable
Dividend receivable 140,763,284.58
Other receivables 751,476,965.47 682,468,446.16
Inventories 737,763,331.57 892,015,463.86
Non-current asset due in 1 year
Other current asset 35,434,857.87 24,782,301.67
Total current assets 2,643,302,679.79 2,607,934,336.92
Non-current assets：
Available-for-sale financial assets 12,000,000.00 12,000,000.00
Long-term receivable
Long-term equity investments 316,339,969.11 316,403,759.70
Property investment 370,045,113.83 379,377,363.53
Fixed assets 27,528,785.80 28,849,484.59
Construction in progress
Fixed assets pending for disposal
Intangible assets 496,800.00 662,400.00
Development disbursements
Goodwill
Long-term Prepaid Expenses 708,255.97 377,908.74
Differed tax asset 5,717,550.76 5,717,550.76
Other non-current asset
Total non-current assets 732,836,475.47 743,388,467.32
Total assets 3,376,139,155.26 3,351,322,804.24
Current liabilities：
Short-term loans
Financial liabilities at fair value
through profit or loss
Notes payable
Account payable 33,468,852.38 69,300,670.37
Advance Received from Customers 323,655,552.60 243,559,137.60
Employee benefits payable 16,210,334.71 13,579,802.91
Tax payable 29,017,872.51 37,099,690.34
Interest payable 16,535,277.94 17,535,277.94
Dividend payable
Other payable 282,938,377.35 292,391,556.70
31
Classified as held for sale debt
Non-current liability due in 1 year 144,239,634.08 168,727,608.54
Other current liability
Total current liability 846,065,901.57 842,193,744.40
Non-current liabilities：
Long-term loan 325,399,708.82 382,233,324.88
Bond payable
Long-term payable
Long-term employee benefits
payable
Special payable
Expected liabilities
Differed income
Differed tax liability
Other non-current liabilities
Total non-current liabilities 325,399,708.82 382,233,324.88
Total liabilities 1,171,465,610.39 1,224,427,069.28
Owners’ equity：
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 978,244,910.11 978,244,910.11
Less：Treasury Share
Other comprehensive income
Special reserves
Surplus reserves 17,694,227.94 17,694,227.94
Undistributed profit 197,074,406.82 119,296,596.91
Total owners’ equity 2,204,673,544.87 2,126,895,734.96
Total liabilities and owners’ equity 3,376,139,155.26 3,351,322,804.24
3.Consolidated Income Statement
For the Period Jan-Jun, 2016
Prepared by: SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) CO.LTD
Currency: RMB Yuan
Amount for the Amount for the
Item
current period prior period
Ⅰ. Total operating income 1,097,886,969.68 1,147,552,773.96
Including: Operating income 1,097,886,969.68 1,147,552,773.96
Ⅱ. Total operating Costs 922,612,373.38 898,325,654.29
Including: Operating costs 816,027,244.11 697,645,876.15
Business tax and surcharge 86,368,209.71 129,612,334.64
Selling expenses 5,107,741.43 17,246,176.75
Administrative expense 26,957,331.77 28,705,983.90
Financial expense -7,048,153.64 24,955,931.85
Impairment losses of assets -4,800,000.00 159,351.00
Add: Gain on fair-value changes（“-”for loss）
Investment income（“-”for loss） 625,209.41 220,307.27
Including: Investment income from associates and joint
-63,790.59 -129,692.73
venture
32
Gain or loss on foreign exchange ( "-"for loss)
Ⅲ .Operating profits（“－”for loss） 175,899,805.71 249,447,426.94
Add: Non-operating income 5,213,457.94 461,705.12
Including:Gains on disposal of non-current assets
Less: Non-operating expenses 100,577.40 78,815.15
Including: Loss on disposal of non-current assets 2,647.50 10,037.32
Ⅳ .Profit before tax（“－”for loss） 181,012,686.25 249,830,316.91
Less: Income tax expenses 46,284,687.48 63,426,291.44
Ⅴ .Net profit（“－”for loss） 134,727,998.77 186,404,025.47
Net profit attributable to owners of the Company 134,761,121.51 186,407,824.38
*Profit/loss attributable to minority shareholders -33,122.74 -3,798.91
Ⅵ . After-tax net of other comprehensive incomes -2,241,980.77 -19,916.59
After-tax net of other comprehensive incomes owned by owner of
-1,569,386.54 100,796.80
the parent company
(I)Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting period
1.1.Re-measurement of defined benefit plans of changes
in net debt or net assets
2Other comprehensive income under the equity method
investor can not be reclassified into profit or loss.
（Ⅱ）Other comprehensive income that will be reclassified into
-1,569,386.54 100,796.80
profit or loss.
1.Other comprehensive income under the equity method
investor can be reclassified into profit or loss.
2.Gains and losses from changes in fair value available
for sale financial assets
3.3.Held-to-maturity investments reclassified to gains
and losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements -1,569,386.54 100,796.80
6.Other
7.Net of profit of other comprehensive income attributable
-672,594.23 -120,713.39
to Minority shareholders’ equity
VII. Total comprehensive income 132,486,018.00 186,384,108.88
Total comprehensive income attributable to the owner of the
133,191,734.97 186,508,621.18
parent company
Total comprehensive income attributable minority shareholders -705,716.97 -124,512.30
VIII. Earnings per share
（I）Basic earnings per share 0.1332 0.1843
(II)Diluted earnings per share 0.1332 0.1843
The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0,
last period the combined party realized RMB 0.
Legal representative: Zhou Jianguo Person in charge of accounting: Tang Xiaoping
Person in charge of accounting organ:Qiao Yanjun
4.Income Statement of the Parent Company
For the Period Jan-Jun, 2016
33
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Currency: RMB Yuan
Amount for the current Amount for the
Item
period prior period
Ⅰ. Total operating income 312,137,584.07 528,924,692.46
Including: Operating income 180,246,091.18 240,739,406.51
Business tax and surcharge 33,549,009.04 74,580,945.46
Selling expenses 2,389,189.40 7,752,938.18
Administrative expense 13,326,156.37 14,842,902.99
Financial expense -10,461,577.56 4,376,058.31
Impairment losses of assets -4,800,000.00 159,351.00
Add: Gain on fair-value changes（“-”for
loss）
Investment income（“-”for loss） 625,209.41 163,042,176.21
Including：Investment income from
-63,790.59 -129,692.73
associates and joint ventures
Ⅱ.Operating profits （“ －”for loss ） 98,513,925.05 349,515,266.21
Add: Non-operating income 5,011,250.66 43,669.98
Including: Gains on disposal of
non-current assets
Less: Non-operating expenses 19,500.00 30,000.00
Including: Loss on disposal of
non-current assets
Ⅲ.Profit before tax （“ －”for loss ） 103,505,675.71 349,528,936.19
Less: Income tax expenses 25,727,865.80 46,757,390.29
Ⅳ. Net profit （“ －”for loss ） 77,777,809.91 302,771,545.90
V.Net of profit of other comprehensive income
（I）Other comprehensive income items that
will not be reclassified into gains/losses in the
subsequent accounting period
1.Re-measurement of defined
benefit plans of changes in net debt or net assets
2.Other comprehensive income
under the equity method investee can not be
reclassified into profit or loss.
（II） Other comprehensive income that will
be reclassified into profit or loss.
1.Other comprehensive income under
the equity method investee can be reclassified into
profit or loss.
2.Gains and losses from changes in
fair value available for sale financial assets
3.Held-to-maturity investments
reclassified to gains and losses of available for
sale financial assets
4.The effective portion of cash flow
34
hedges and losses
5.Translation differences in currency
financial statements
6.Other
VI. Total comprehensive income 77,777,809.91 302,771,545.90
VII. Earnings per share：
（I）Basic earnings per share 0.0768 0.2993
(II)Diluted earnings per share 0.0768 0.2993
5.Consolidated Cash Flow Statement
For the Period Jan-Jun, 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Ⅰ. Cash Flow from Operating
Activities：
Cash received from sales of
1,212,918,536.86 1,218,726,341.94
goods or rendering of services
Refund of taxes and levies
Cash received relating to
44,769,823.54 42,960,988.66
other operating activities
Sub-total of Cash Inflows 1,257,688,360.40 1,261,687,330.60
Cash paid for goods and
564,049,988.12 516,009,709.17
services
Cash paid to and on behalf of
72,485,115.73 65,846,388.78
employees
Cash paid on taxes and levies 157,912,370.17 161,674,127.90
Cash paid relating to other
37,072,905.62 62,270,160.80
operating activities
Sub-total of Cash Outflows 831,520,379.64 805,800,386.65
Net Cash Flows from Operating
426,167,980.76 455,886,943.95
Activities
Ⅱ. Cash Flows from Investing
Activities:
Cash received from return of
investments
Cash received investing
689,000.00 350,000.00
income
Net cash received from
disposal of fixed assets,
-2,100.00 1,250.00
intangible assets and other long
assets
Net cash flows from disposal
subsidiary and other operating
unite
Other cash received relating
to investing activities
Sub-total of Cash Inflows 686,900.00 351,250.00
Cash paid to acquire fixed
assets, intangible assets and other 707,167.34 1,323,285.99
long assets
Cash paid on investments
Net cash paid on obtain
subsidiary and other operating
unite
35
Cash paid on other investing
activities
Sub-total of Cash Outflows 707,167.34 1,323,285.99
Net Cash Flows from Investing
-20,267.34 -972,035.99
Activities
Ⅲ. Cash flow from Financing
Activities
Cash received from
investments
Including: Cash received
from investments by minority
interests of subsidiaries
Cash received from
12,000,000.00 304,034,573.83
borrowing
Cash received from issuing
bonds
Other cash received relating
2,785,000.00
to Financing activities
Sub-total of Cash Inflows 12,000,000.00 306,819,573.83
Cash repayments on
96,321,590.52 435,169,815.38
borrowed amounts
Cash payments for
15,142,677.89 30,048,950.25
distribution of dividends or profits
Including: Dividends or
profit paid to minority interests of
subsidiaries
Cash payments on other
financing activities
Sub-total of cash Outflows 111,464,268.41 465,218,765.63
Net cash flows from financing
-99,464,268.41 -158,399,191.80
activities
Ⅳ. Effect of foreign exchange
247,567.55 -5,979.86
rate on cash
Ⅴ. Net increase in cash and cash
326,931,012.56 296,509,736.30
equivalents
Add: cash equivalents at the
1,169,756,306.36 670,119,849.03
beginning of the period
Ⅵ. Cash equivalents at the end of
1,496,687,318.92 966,629,585.33
the period
6.Cash Flow Statement of the Parent Company
For the period Jan-Jun, 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Ⅰ. Cash Flow from Operating
Activities：
Cash received from sales of
397,674,177.93 604,452,678.51
goods or rendering of services
Refund of taxes and levies
Cash received relating to
192,943,696.66 7,833,744.75
other operating activities
Sub-total of cash inflows 590,617,874.59 612,286,423.26
Cash paid for goods and
55,812,480.05 90,969,965.24
services
Cash paid to and on behalf of 17,319,567.98 13,980,926.01
36
employees
Cash paid on taxes and levies 80,736,138.65 80,813,643.06
Cash paid relating to other
95,666,930.78 17,662,196.35
operating activities
Sub-total of Cash Outflows 249,535,117.46 203,426,730.66
Net Cash Flows from Operating
341,082,757.13 408,859,692.60
Activities
Ⅱ. Cash Flows from Investing
Activities:
Cash received from return of
investments
Cash received investing
689,000.00 350,000.00
income
Net cash retrieved from
disposal of fixed assets, intangible
assets, and other long-term assets
Net cash received from
disposal of subsidiaries or other
operational units
Other investment-related
7,270,611.12
cash received
Sub-total of cash inflow due to
689,000.00 7,620,611.12
investment activities
Cash paid for construction of
fixed assets, intangible assets and 21,395.00 11,050.00
other long-term assets
Cash paid as investment 7,500,000.00
Net cash received from
subsidiaries and other operational
units
Other cash paid for
investment activities
Sub-total of cash outflows 21,395.00 7,511,050.00
Net Cash Flows from Investing
667,605.00 109,561.12
Activities
Ⅲ. Cash flow from Financing
Activities
Cash received from
investments
Cash received from
200,000,000.00
borrowing
Cash received from issuing
bonds
Cash received from other
financing activities
Sub-total of cash inflows 200,000,000.00
Cash repayments on
81,321,590.52 217,018,135.71
borrowed amounts
Cash payments for
14,396,606.42 21,627,377.85
distribution of dividends or profits
Cash payments on other
financing activities
Sub-total of cash Outflows 95,718,196.94 238,645,513.56
Net cash flows from financing
-95,718,196.94 -38,645,513.56
activities
Ⅳ. Effect of foreign exchange
14,432.03 6.83
rate on cash
37
Ⅴ.Net increase in cash and cash
246,046,597.22 370,323,746.99
equivalents
Add: cash equivalents at the
852,492,165.42 326,170,340.34
beginning of the period
Ⅵ. Cash equivalents at the end of
1,098,538,762.64 696,494,087.33
the period
7、Consolidated Statement on Change in Owners’ Equity
For the period Jan-Jun, 2016
Prepared by ： SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Currency: RMB Yuan
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity Other Minor
instrument Less: Compr Surplu Total of
Items Share Capital Specia Specia shareho
Susta Treasu ehensi s Undistributed lders’ owners’
Capit prefe reserve lized l equity
inabl Othe ry ve reserve profit equity
al rred s reserve reserve
e r shares Incom s
stock s
debt e
1,011
978,24 10,063 40,823 -128,25
I.Balance at the ,660, 290,911,773.0 2,203,44
4,910. ,591.6 ,841.3 6,319.6
end of last year 000.0 0 7,796.43
11 1 5 4
0
Add: Change
of accounting
policy
Correcting of
previous errors
Merger of
entities under
common
control
Other
1,011
II.Balance at the 978,24 10,063 40,823 -128,25
,660, 290,911,773.0 2,203,44
beginning of 4,910. ,591.6 ,841.3 6,319.6
000.0 0 7,796.43
current year 11 1 5 4
0
III.Changed in -1,569, 134,761,121.5 -705,71 132,486,
the current year 386.54 1 6.97 018.00
（1）Total
-1,569, 134,761,121.5 -705,71 132,486,
comprehensive 386.54 1 6.97 018.00
income
（II）
Investment or
decreasing of
capital by
owners
1．Ordinary
Shares invested
by hareholders
2．Holders of
other equity
instruments
invested capital
3．Amount of
38
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to
the owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
1,011
IV. Balance at 978,24 40,823 -128,96
,660, 8,494, 425,672,894.5 2,335,93
the end of this 4,910. ,841.3 2,036.6
000.0 205.07 1 3,814.43
term 11 5 1
0
Amount in last year Currency: RMB Yuan
Amount in last year
Owners equity Attributable to the Parent Company
Other Equity Other Minor
instruments Less: Compr Surplu Total of
Items Share Capital Specia Specia shareho
Susta Treasu ehensi s Undistributed lders owners’
Capit prefe reserve lized l
inabl Othe ry ve reserve profit equity
al rred s reserve reserve equity
e r shares Incom s
stock s
debt e
1,011
978,24 -128,43
I.Balance at the ,660, 9,510, 4,974, 157,147,182.3 2,033,10
4,910. 2,405.6
end of last year 000.0 918.16 391.15 6 4,996.15
11 3
0
Add: Change
of accounting
39
policy
Correcting of
previous errors
Merger of
entities under
common
control
Other
1,011
II.Balance at 978,24 -128,43
,660, 9,510, 4,974, 157,147,182.3 2,033,10
the beginning of 4,910. 2,405.6
000.0 918.16 391.15 6 4,996.15
current year 11 3
0
37,200
III.Changed in 100,79 149,207,600.8 -124,51 186,384,
,223.5
the current year 6.80 6 2.30 108.88
2
（1）Total
100,79 186,407,824.3 -124,51 186,384,
comprehensive 6.80 8 2.30 108.88
income
（II）
Investment or
decreasing of
capital by
owners
1．Ordinary
Shares invested
by hareholders
2．Holders of
other equity
instruments
invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
37,200
（III）Profit -37,200,223.5
,223.5
allotment 2
2
37,200
1.Providing of -37,200,223.5
,223.5
surplus reserves 2
2
2.Providing of
common risk
provisions
3．Allotment to
the owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
40
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
1,011
IV. Balance at 978,24 42,174 -128,55
,660, 9,611, 306,354,783.2 2,219,48
the end of this 4,910. ,614.6 6,917.9
000.0 714.96 2 9,105.03
term 11 7 3
0
8、Statement of change in owner’s Equity of the Parent Company
For the period Jan-Jun, 2016
Prepared by ： SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Currency: RMB Yuan
Amount in this period
Other Equity
Other
instrument Less: Undist Total of
Items Share Capital Compre Special Surplus
preferr Sustai Treasury ributed owners’
Capital reserves hensive reserves reserves
ed nable Other shares profit equity
Income
stock debt
1,011,6 119,29 2,126,8
I.Balance at the 978,244, 17,694,2
60,000. 6,596. 95,734.
end of last year 910.11 27.94
00 91 96
Add:
Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the 1,011,6 119,29 2,126,8
978,244, 17,694,2
beginning of 60,000. 6,596. 95,734.
910.11 27.94
current year 00 91 96
77,777
III.Changed in 77,777,
,809.9
the current year 809.91
1
（I）Total 77,777
77,777,
comprehensive ,809.9
809.91
income 1
(II) Investment
or decreasing of
capital by
owners
1．Ordinary
Shares invested
by shareholders
41
2．Holders of
other equity
instruments
invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to
the owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 1,011,6 197,07 2,204,6
978,244, 17,694,2
the end of this 60,000. 4,406. 73,544.
910.11 27.94
term 00 82 87
Amount in last year
Currency: RMB Yuan
Amount in last year
Other Equity
Other
instrument Less: Undist Total
Items Share Capital Compre Special Surplus
preferr Sustai Treasury ributed owners'
Capital reserves hensive reserves reserves
ed nable Other shares profit equity
Income
stock debt
1,011,6 -125,8 1,864,0
I.Balance at the 978,244,
60,000. 29,266 75,643.
end of last year 910.11
00 .52 59
Add:
Change of
accounting
42
policy
Correcting of
previous errors
Other
II.Balance at the 1,011,6 -125,8 1,864,0
978,244,
beginning of 60,000. 29,266 75,643.
910.11
current year 00 .52 59
285,07
III.Changed in 17,694,2 302,771
7,317.
the current year 27.94 ,545.90
96
（I）Total 302,77
302,771
comprehensive 1,545.
,545.90
income 90
(II) Investment
or decreasing of
capital by
owners
1．Ordinary
Shares invested
by
s1hareholders
2．Holders of
other equity
instruments
invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
-17,69
（III）Profit 17,694,2
4,227.
allotment 27.94
94
-17,69
1.Providing of 17,694,2
4,227.
surplus reserves 27.94
94
2．Allotment to
the owners (or
shareholders)
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4. Other
(V) Special
43
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 1,011,6 159,24 2,166,8
978,244, 17,694,2
the end of this 60,000. 8,051. 47,189.
910.11 27.94
term 00 44 49
III.General information of the Company：
Shenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Group” or “the Company”) was
established in July 1993, as approved by the Shenzhen Municipal Government with document SFBF (1993) 724. The Company
issued A shares on 15th September, 1993 and issued B shares on 10 January 1994. On 31 August 1994, B shares issued were
listed in New York Exchange market as class A recommendation. The total share capital are 1,011,660,000 shares, of which, A
shares are 891,660,000 shares, and the B shares are 120, 000,000 shares. The company business license registration number is
440301103225878, and the registered capital is RMB 1,011,660,000.00.
On 13 October 2004，according to the document No.(2004) 223 “Decision on establishing Shenzhen investment Holding Co.,
Ltd.” issued by State-Owned Assets Supervision and Administration Commission of Shenzhen Municipal Government, former
major shareholder – Shenzhen Construction Investment Holding Company with two other assets management companies
merged to form the Shenzhen Investment Holding Co., Ltd. By the State-owned Assets Supervision and Administration
Commission of the state council，and quasi-exempt obligations tender offer as approved by China Security Regulatory
Committee with document No.(2005)116, this issue of consolidated has been authorized and the registration changing had been
done on 15 February 2006. As at the end of the reporting period, Shenzhen Investment Holding Limited holds 642,884,262
shares of the Company (63.55% of the total share capital). The shares are all selling unrestricted shares.
Business scope: mainly engaged in real estate development and sales, property leasing and management, retail merchandising
and trade, hotel, equipment installation and maintenance, construction, interior decoration and so on.
The main products or services provided: commodity housing, property leasing and management, hotel service, construction and
installation service, renovation service.
The parent of the Company is Shenzhen Investment Holdings Co., Ltd.
The Financial statement published on Aug 27th, 2016, which approved by Group’s Board of Directors.
IV.The Basis of Preparation of Financial Statements
1.Basis for the preparation
The financial statements of the Group have been prepared on the basis of going concern in conformity with the Chinese
Accounting Standards for Business Enterprises –The basic standards(Issued by order No.33 of the Ministry of Finance,
Revised by order No.76 of the Ministry of Finance), the 41 specified Accounting Standards for Business Enterprise issued and
revised by the Ministry of Finance of People’s Republic of China on 15 February, 2006 and thereafter, the guidance for the
application of the Accounting Standards for Business Enterprise, the explanation for the Accounting Standards for Business
Enterprise and other relevant regulations( thereafter referred as “Accounting Standards for Business Enterprises”) and
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—General Provisions on
Financial Reports (2014 Revision) issued by the China Securities Regulatory Commission (CSRC).
According to the relevant accounting regulations of Chinese Accounting Standards for Business Enterprises, the Group has
adopted the accrual basis of accounting. The Group adopts the historical cost as the principle of measurement in the financial
statements except some financial instruments. Provision will be made if any assets impair in accordance with relevant
requirements.
The Company state: the financial statements prepared are in accordance with the requirements in enterprise accounting
standards in accordance with of system, and have truly and fully reflected of the financial status in June 30, 2016 , operational
results, cash flow, and other relevant information for half year of 2016.Besides，The financial statement prepared has compliance
with Companies Offering Securities to the Public No.15—General Provisions on Financial Reports (2014 Revision) issued by
the China Securities Regulatory Commission (CSRC) in all material aspect
44
2.Going-concern
There do not exist any significant suspicious events and conditions to the Group’s ability to operate as going concern within 12
months since the report date.
V. Important Accounting Principles and Accounting Estimates
The Group and its subsidiaries are engaged in the business of real estate development. The Group and its subsidiaries have
established several specified accounting policies and accounting estimations for its transactions and events, such as the revenue
recognition, according to the Group’s and its subsidiaries’ actual operating characters and relevant requirements of
Accounting Standards for Business Enterprises. Please refer to note 5.24- Revenue for details. 。For the significant accounting
judgments and estimates made by the management, please refer to note 5.30-Significant accounting judgments and estimates.
1. Statement on complying with corporate accounting standards
The Group and its subsidiaries are engaged in the business of real estate development. The Group and its subsidiaries have
established several specified accounting policies and accounting estimations for its transactions and events, such as the revenue
recognition, according to the Group’s and its subsidiaries’ actual operating characters and relevant requirements of
Accounting Standards for Business Enterprises. Please refer to note5.28- Revenue for details. 。For the significant accounting
judgments and estimates made by the management, please refer to note 5.33-Significant accounting judgments and estimates.
2.Accounting year
The accounting period of the Group is classified as interim period and annual period. Interim period refers to the reporting
period shorter than a complete annual period. The accounting period of the Group is the calendar year from January 1 to
December 31.
3.Operating cycle
The normal operating cycle refers to period from Group’s buying assets for manufacturing to realizing the cash or cash
equivalent .The Group chooses 12 months as an operating cycle. The assets and liabilities are classified as current and
non-current according to the operating cycle standards.
4.Recording currency
Renminbi (RMB) is the currency of the primary economic environment in either Group & its domestic subsidiaries or foreign
subsidiary in HK. Therefore, the Group, the domestic subsidiaries and foreign subsidiary in HK choose RMB as their functional
currency. While the Group’s foreign subsidiary in U.S.A. chooses USD dollar as its functional currency on the basis of the
primary economic environment it operates. The Group adopts RMB to prepare its functional statements.
5.Accounting treatment methods of the acquisition of enterprises under Common/Non-common control
A business combination is a transaction or event that brings together two or more separate entities into one reporting entity.
Business combinations involve enterprises under common control and non-common control.
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not
transitory.
For a business combination involving enterprises under common control, the party that, on the combination date, obtains control
of another enterprise participating in the combination is the absorbing party, while that other enterprise participating in the
combination is a party being absorbed. Combination date is the date on which the absorbing party effectively obtains control of
the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being absorbed at the
combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of
consideration paid for the combination (or the total face value of shares issued) is adjusted to the capital premium (or share
premium) in the capital reserve. If the balance of the capital premium (or share premium) is insufficient, any excess is adjusted
to retained earnings.
The cost of a combination incurred by the absorbing party, including any costs directly attributable to the combination, shall be
recognized as an expense through profit or loss for the current period when incurred.
(2) Business combination involving entities under non common control
A business combination involving enterprises under non common control happens if the combining enterprises are not
ultimately controlled by the same party or parties both before and after the business combination.
For a business combination not involving enterprises under common control, the party that, on the acquisition date, obtains
control of another enterprise participating in the combination is the acquirer, while the other enterprise participating in the
45
combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
For a business combination not involving enterprise under common control, the combination cost including the sum of fair value,
on the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer. The
intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services etc. and
other associated administrative expenses attributable to the business combination are recognized in profit or loss when they are
incurred.
The transaction cost arose from issuing of equity securities or liability securities should be initially recognized as cost of equity
securities or liability securities.
The contingent consideration related to the combination shall be booked as combination cost at the fair value on the acquisition
date. If, within the 12 months after acquisition, new or additional information can prove the existence of related information on
acquisition date and the contingent consideration need to be adjusted by relatively adjusting the combination goodwill.
Acquirer ‘s combination cost and the obtained identifiable net assets are measured with the fair value on the acquisition date.
The excess of the combination cost over the fair value of identifiable net assets on the acquisition date is recorded as goodwill.
When the fair value of identifiable assets exceeds the combination cost , first of all, the fair value of items of obtained
acquiree’s identifiable assets, liabilities or contingent liabilities and combination cost need to be reassessed. And then, when the
combination cost is still less than the fair value of identifiable net assets on the acquisition date after reassess, the difference
should be recorded in the current year’s profit and loss.
The deductible temporary differences obtained from the acquiree which cannot be recognized as deferred tax assets ,on the
acquisition date, because some conditions are not met. Within 12 months after the acquisition ,if new or additional information
indicate that the relevant information exist on the acquisition date and the economic benefits related with the deductible
temporary difference can be realized, the deferred tax assets should be recognized. The goodwill should be reduced and if the
goodwill is less than the deferred tax assets recognized, the rest part should be recorded in the current year profit and loss.
For a business combination achieved in stages that involves multiple exchange transactions, according to the “No.5 Inform of
Printing and Distributing the Explanation of Accounting Standards issued by the Finance of Ministry (Caikuai [2012] No.19)”
and Article 51of “Chinese Accounting Standards for Business Enterprises No.33- Consolidated financial statement”, relating
with the judgment standards of package deal( refer to note 4.5(2)), a judgment about whether it is package deal or not should be
made. If it is package deal, please refer to the note 4.13 - Long-term equity investment for accounting treatment; if it is not
package deal, distinguish them as individual financial statement and consolidated financial statement for accounting treatment.
For the individual financial statements, the book value of the long-term equity investment held before the acquisition date plus
the newly added equity investment on the acquisition date, and then sum should be recorded as the original investment cost; the
long-term equity investment involved with other comprehensive income held before the acquisition date, the way to deal with
the investment will be the same with the way the acquiree directly dispose the related assets and liabilities (i.e., under the equity
method, beside the portion caused by the acquiree’s recalculated defined benefit plan’s net assets and net liabilities, the rest
are transferred into investment income).
For the consolidated financial statements, for the shares in acquiree held before the acquisition date, the shares are recalculated
according to the fair value on the acquisition date. The difference between the fair value and book value should be recorded in
the current year investment income; For the shares in the acquiree held before the acquisition date involving other
comprehensive income. The way to deal with the other comprehensive income should be the same with the way the acquiree
directly dispose the relevant assets and liabilities(i.e., under the equity method, beside the portion of changes caused by the
acquiree’s recalculated defined benefit plan’s net assets and net liabilities, the rest are transferred into investment income ).
6.The method of preparation of consolidated financial statements
(1)The standards of determining the scope of consolidation
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control is the power to
govern the financial and operating policies of
an enterprise so as to obtain benefits from its operating activities. The scope of consolidation includes the Group and all of the
subsidiaries. Subsidiary is an enterprise or entity under the control of the Group.
Once the changes of relevant facts and conditions result in the factors involving with the above definition of the control, the
Group will proceed to reassess.
(2)The method of preparing the consolidated financial statements
The subsidiary of the Group is included in the consolidated financial statements from the date when the control over the net
assets and business decisions of the subsidiary is effectively obtained, and excluded from the date when the control ceases.
46
For a subsidiary being disposed of by the Group, the operating results and cash flows before the date of disposal (the date when
control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. For a
subsidiary disposed during the period, no adjustment is made to the opening balance of the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating results and cash flows from
the acquisition date (the date when the control is obtained) are included in the consolidated income statement and consolidated
statement of cash flows, as appropriate; no adjustment is made to the opening balance and comparative figures in the
consolidated financial statements.
Where a subsidiary was acquired during the reporting period, through a business combination involving enterprises under
common control, the financial statements of the subsidiary are included in the consolidated financial statements. The results of
operations and its cash flow are appropriately included in the consolidated balance sheet and the consolidated income statement,
respectively, from the beginning of the year to the date of acquisition and the comparative figures of the consolidated financial
statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the Group, the Group makes
necessary adjustments to the financial statements of the subsidiary based on the Group’s accounting period or accounting
policies. For the subsidiaries acquired through combination involving enterprises under non common control, the financial
statements should be adjusted based on the fair value of the indentified net assets on the acquisition date.
Intra-group balances and transactions, and any unrealized profit or loss arising from intra-group transactions, are eliminated
when preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Group are presented separately in the
consolidated balance sheet within shareholders’/ owners’ equity. Net profit or loss attributable to minority shareholders in the
subsidiaries is presented separately as minority interest in the consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the minority
shareholders’ portion of the opening balance of [shareholders’ [owners’ equity of the subsidiary, the excess is still allocated
against the minority interests.
When the Group loses control of a subsidiary due to the disposal of a portion of an equity investment or other reasons, the
remaining equity investment is re-measured at its fair value on the date when control is lost. The difference between 1) the total
amount of consideration received from the transaction that resulted in the loss of control and the fair value of the remaining
equity investment and 2) the carrying amounts of the interest in the former subsidiary’ net assets immediately before the loss of
the control is recognized as investment income for the current period when control is lost. The amount recognized in other
comprehensive income in relation to the former subsidiary’s equity investment is reclassified as investment income for the
current period when control is lost. The retained interest is subsequently measured according to the rules stipulated in the
“Chinese Accounting Standards for Business Enterprises No.2—Long-term equity investment” or “Chinese Accounting
Standards for Business Enterprises No.22 — Determination and measurement of financial instruments ” (see note
V.14-Long-term equity investment and V.10-Financial instruments).
The Group’s losing control of subsidiaries through multystep transactions of disposing of the long-term equity investment, need
to identify whether every transaction, involving with disposing of the investment in subsidiary until losing the control, is
belonging to package deal. Several transactions should be accounted for as a package deal if conditions and the economic
impact of disposal of investments in subsidiaries are in compliance with one or more of the following circumstances: ① These
transactions are considered simultaneously or ② these transactions as a whole in order to reach a complete business results;
another case of the occurrence of the impact of entering into a transaction depends ③ had at least one other transaction; ④
see a transaction alone is not economical, but, it is economical when other transactions are taken into account. If it is not
package deal, every transaction of the non-package deals is treated according to the applicable accounting standards of “partly
disposing of the long-term equity investment without losing control ” refer to V.14(2) ④ for detail) and “losing the control to
subsidiary due to partly disposing the equity investment or other reasons ” (see the former paragraph for details). When every
transaction involving with disposing of equity investment in subsidiary until losing control is a package deal, they will be treated
as a single deal of disposing of the investment in subsidiary until losing control for accounting treatment. But, before the control
are lost, the difference between each receipt of every transaction and the related shared proportion of identified net assets are
recognized as other comprehensive income. The other comprehensive income will be transferred into profit and loss in the
period when losing control.
7.Joint venture arrangement classification& mutual office account treatment
Joint venture arrangement is referred to the arrangement that are under common control of two or more participating parties.
47
The Group classifies the joint venture arrangement into mutual office and joint venture, according to the rights shared and
obligation undertaken in the joint venture arrangement. Mutual office represents the joint venture arrangement that the Group
shares the assets related with arrangement and undertakes the obligations related with the arrangement. Joint venture is referred
to the joint venture arrangement that the Group only have the right to the net assets of the arrangement.
The Group measures the joint venture investment using the equity method. Please refer to accounting policies listed on note
V.14(2) ②-long-term equity investment measured using the equity method.
As one party of the mutual office, the Group recognizes the separately owned assets and separately assumed obligations, and the
proportionate commonly held assets and commonly assumed obligations per the company’s percentage of share interest;
recognize the revenue from the selling of the Group’s shared output of the mutual office; recognize the common revenue
generated from the selling of the common output of the mutual office according to the Group’s share percentage; recognize the
expense separately incurred by the Group and the proportionate expense incurred by the mutual office according to the Group’s
share percentage.
When the Group sells invest or sell assets to the mutual office as one of the mutual office party( the assets do not constitute a
business, the same to below), or buys assets from the mutual office, before the assets are sold to the third party, the Group only
recognizes the portion of profit and loss attributable to the other participating parties. According to requirements of Chinese
Accounting Standards for Business Enterprises No.8- Asset impairment, when the assets are impaired , for the assets invested or
sold to the mutual office by the Group, the Group fully recognizes the impairment loss; for assets that the Group bought from
the mutual office, the impairment loss is recognized according to the share percentage by the Group.
8.Recognition Standard of Cash and Cash Equivalents
Cash and cash equivalents of the Group include cash on hand, ready usable deposits and investments having short holding term
(normally will be due within three months from the day of purchase), with strong liquidity and easy to be exchanged into certain
amount of cash that can be measured reliably and have low risks of change.
9. Foreign exchange
(1) Translation in foreign exchange transactions
The Group’s initial recognition of the foreign currency transactions is recorded by the functional currency translated by the spot
rate (commonly refer to the middle rate of the daily foreign currency rate publicly released by the People’s Bank of China)on
the transaction date. But the Group’s foreign currency exchange and foreign currency exchange relevant transactions, is
recorded by the functional currency translated by the exchange rate actually used.
(2)Translation method for foreign currency monetary items and non-monetary items.
On the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the balance sheet date.
All the exchange differences thus resulted are taken into profit or loss, except for ①those relating to foreign currency
borrowings specifically for construction and acquisition of qualifying assets, which are capitalized in accordance with the
principle of capitalization of borrowing costs; ②The exchange difference from changes of other account balance of foreign
currency monetary items available-for-trade is recorded into profit or loss except for amortization cost.
When preparing the consolidated financial statements involving with oversea operation, the foreign currency difference caused
by the foreign exchange rate changes should be recorded in other comprehensive income, if it substantially constitutes the
monetary items related to net investment to the oversea operation. When the oversea operation are disposed, the other
comprehensive income should be transferred into current year profit and loss.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spot exchange rate prevailing on
the transaction date, and the amount denominated in the functional currency is not changed. Non-monetary foreign currency
items measured at fair value are translated at the spot exchange rate prevailing at the date when the fair values are determined.
The exchange difference thus resulted are recognized in profit or loss for the current period or as other comprehensive income.(3)
The translation of financial statement in foreign currency
When the consolidated financial statements include foreign operations, if there is a foreign currency monetary item constituting
a net investment in a foreign operation, exchange difference arising from changes in exchange rates are recognized as
“exchange differences arising on translation of financial statements denominated in foreign currencies” in owner’ equity, and
in profit or loss for the period upon disposal of the foreign operation.
The Group translates the financial statements of its foreign operations into RMB by following rules;
1） Assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing on the balance sheet date; All
equity items except for retained earnings are translated at the spot exchange rates at the date on which such items occur;
2）Income and expenses in income statement are translated at the spot exchange rates at the date of transaction.
48
3）The opening undistributed profit is the closing undistributed profit of last period after translation of last year.
4）The closing balance of undistributed profit is calculates and presented in the basis of each translated income statements and
profit distribution item.
5）The difference between the assets and liabilities and shareholder’s equity shall be booked as translation difference of
translating foreign currency financial statements, and shall be presented as other comprehensive income in the separate
component of equity in the balance sheet.
6）When losing control over Group’ oversea operation due to disposal, the translation difference of translating foreign currency
financial statements related with the oversea operation which is separately presented under the shareholder’s equity section as
accumulated other comprehensive income, should be fully or proportionately transferred into the current period profit and loss
according to the disposal percentage.
7）Foreign currency cash flows and cash flow of oversea subsidiaries are translated at the spot exchange rates. The effect of
exchange rate changes on cash is separately presented as an adjustment item in the cash flow statement.
8）The opening balance and actual figures of last year are displayed as the figures translated last year.
9）When disposing the Group’s all shareholders’ equity of oversea operation or the Group losing control over the oversea
operation due to partial disposal of the oversea equity investment or other reasons, the translation difference caused by the
translating of foreign currency financial statement related with the oversea operation , which is presented under the equity
section on the balance sheet and is attributable to the parent company’s shareholders, should be transferred to the current period
profit and loss.
10)When the partial disposal of the equity investment of oversea operation and other reasons cause the share percentage of
oversea operation to decrease without making the power of control to disappear, the translation difference of translation foreign
currency financial statement related with the part of oversea operation disposed should be attributable to the minority interest
and do not transfer to the current period profit and loss. When the oversea operation disposing is a jointly run business or joint
venture, the translation difference of translating foreign currency financial statements should be transferred to the current period
profit and loss according to the percentage of oversea operation disposal.
10.Financial instruments
When the Group becomes one party of the financial instrument contract, a financial asset or financial liability should be
recognized. The initial measurement of the financial asset and financial liability is based on the fair value. For financial asset
and financial liability measured at fair value and designated its changes into current period profit and loss, the related trading
expense should be recorded in the profit and loss. For the financial asset and financial liability of other categories, the related
trading expense should be recorded as part of initial cost.
(1) The method of determining the fair value of financial assets and financial liabilities
Fair value is the price that the market participators can get when selling an assets or need to pay when transferring an obligation
incurred in an orderly transaction on the measurement date. When there is active market for the financial instruments, the
quotation in the active market is used as the fair value. Quotation in the active market means the price that can be easily and
periodically got from the exchange market, broker’s agency, Guild, pricing service organization etc. It represents the actually
happened trading price in the fair trading. When there is no active market for the financial instruments, the fair value is
determined by the valuation techniques. The valuation techniques include making a reference to the used price in recent market
trading among the parties who know the situations and is willing to trade, making a reference to the current fair value that is
used by the other substantially similar financial assets, discounting the future cash flow and option pricing model etc.
(2) Classification of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On initial
recognition, the Group’s financial assets are classified into one of the four categories, including financial assets at fair value
though profit or loss, held-to maturity investments, loans and receivables and available-for-sell financial assets.
①Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or loss.
Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. The financial asset is acquired for the purpose of selling it in a short term;
B. The financial asset is a part of a portfolio of identifiable financial instruments that are collectively managed, and there is
objective evidence indicating that the enterprise recently manages this portfolio for the purpose of short-term profits;
C. The financial asset is a derivative, except for a derivative that is designated and effective hedging instrument, or a financial
guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a
49
quoted price from an active market) whose fair value cannot be reliably measured. For such kind of financial assets, fair values
are adopted for subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it meets one of the following
conditions:
A. The designation eliminates or significantly reduces the inconsistency in the measurement or recognition of relevant gains or
losses that would otherwise arise from measuring the financial instruments on different bases.
B.A group of financial instruments is managed and its performance is evaluated on a fair value basis, and is reported to the
enterprise’ key management personnel. Formal documentation regarding risk management or investment strategy has prepared.
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any gains or losses arising from
changes in the fair value and any dividends or interest income earned on the financial assets are recognized in the profit or loss.
② Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an
entity has the positive intention and ability to hold to maturity. Such kind of financial assets are subsequently measured at
amortized cost using the effective interest method. Gains or losses arising from derecognition, impairment or amortization are
recognized in profit or loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the expected life of the financial
asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial
liability.
When calculating the effective interest rate, the Group shall estimate future cash flow considering all contractual terms of the
financial asset or financial liability without considering future credit losses, and also consider all fees paid or received between
the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest
rate, transaction costs, and premiums or discounts, etc.
③Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are not quoted in an active
market. Financial assets classified as loans and receivables by the Group include note receivables, account receivables, interest
receivable dividends receivable and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from
derecognition, impairment or amortization is recognized in profit or loss.
④ Financial assets available-for-sell
Financial assets available-for-sell include non-derivative financial assets that are designated on initial recognition as available
for trade, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables
or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses arising from changes in the fair
value are recognized as other comprehensive income and included in the capital reserve, except that impairment losses and
exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are recognized in
profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit
or loss.
Interests obtained and dividends declared by the investee during the period in which the financial assets available-for-trade are
held, are recognized in investment gains.
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or loss
and other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are
immediately recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are
included in the initial recognition amounts.
(3) Impairment of financial assets (not including account receivables
The Group assesses, at the balance sheet date, the carrying amount of every financial asset except for the financial assets that
measured by the fair value. If there is objective evidence indicating a financial asset may be impaired, provision for
impairment is recorded.
The Group makes an impairment test for a financial asset that is individually significant. For a financial asset that is not
individually significant, it is included in a group of financial assets with similar credit risk characteristics and collectively
assessed for impairment or individually assessed for impairment. If no objective evidence of impairment incurs for an
individually assessed financial asset (whether the financial asset is individually significant or not individually significant), it is
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included in a group of financial assets with similar credit risk characteristics and collectively assessed for impairment. Assets for
which an impairment loss is individually recognized is not included in a group of financial assets with similar credit risk
characteristics and collectively assessed for impairment.
① Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present value of future
cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate the recovery of value of
financial assets after impairment, and it is related with subsequent event after recognition of loss, the impairment loss recorded
originally can be reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the amortized
cost of the financial assets without provisions of impairment loss on the reserving date.
② Impairment loss on available-for-sell financial assets
When decision is made with all related factors on whether the fall of fair value investment of an equity instrument
available-for-trade is significant or non-transient, it indicates impairment of such equity instrument investment, in which,
Significant means over 20% of fall in fair value and Non-transient means over 12 months of subsequent fall.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in fair value that had been
recognized in capital reserve shall be removed and recognized in profit or loss. The amount of the cumulative loss that is
removed shall be difference between the acquisition cost with deduction of recoverable amount less amortized cost, current fair
value and any impairment loss on that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the financial asset is recovered, and
it is objectively related to an event occurring after the impairment loss was recognized, the initial impairment loss can be
reversed and the reserved impairment loss on available-for-trade equity instrument is recorded in the profit or loss, the reserved
impairment loss on available-for-trade debt instrument is recorded in the current profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably measured, or
impairment loss on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument
shall not be reversed.
(4) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
① The rights to receive cash flows from the asset have expired;
② The enterprise has transferred its rights to receive cash flows from the asset to a third party under a “pass-through”
arrangement; or
③ The enterprise has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the
risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the asset is
recognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence
refers the level of risk by the financial asset changes the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a). the carrying amount of the financial
asset transferred; and (b) the sum of the consideration received from the transfer and any cumulative gain or loss that had been
recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is
allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair value of
those parts. The difference between (a) the carrying amount allocated to the part derecognized; and (b) the sum of the
consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has
been previously recognized in other comprehensive income, is recognized in profit or loss.
For the financial assets sold with recourse and the endorsed, the Group should make a judgment whether the risks and rewards
related with the financial assets’ ownership have been almost all transferred. For the financial assets of which the risks and
rewards related with its ownership have been, in substantial, all transferred, it should be derecognized. For the financial assets of
which the risks and rewards have been, in substantial, all retained, it should be not be derecognized. For the financial assets, the
related ownership of which have not been neither ,in substantial, all transferred nor retained, the Group need to make a judgment
about whether the control over the financial assets have been kept or not and then deal with it according to the standards
mentioned in the previous paragraphs.
(5) Classification of the financial liabilities and measurement
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The financial liabilities are classified into financial liabilities measured at fair value with its changes into profit and loss and
other financial liabilities. The initial measurement is made at its fair value. For the financial liabilities measured at fair value
with its changes into profit and loss, the related trading expense are recorded into current period profit and loss; for other
financial liabilities, the related trading expenses are recorded in its initial cost.
① Financial liabilities measured by the fair value and the changes recorded in profit or loss The classification by which
financial liabilities held-for-trade and financial liabilities designated at the initial recognition to be measured by the fair value
follows the same criteria as the classification by which financial assets held-for-trade and financial assets designated at the
initial recognition to be measured by the fair value and their changes are recorded in the current profit or loss.
For the financial liabilities measured by the fair value and changes recorded in the profit or loss, fair values are adopted for
subsequent measurement. All the gains or losses on the change of fair value and the expenses on dividends or interests related to
these financial liabilities are recognized in profit or loss for the current period.
② Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price in an active market and
their fair value cannot be measured reliably, is subsequently measured by cost. Other financial liabilities are subsequently
measured at amortized cost using the effective interest method. Gains or losses arising from derecognition or amortization is
recognized in profit or loss for the current period.
③ Financial guarantee contracts
For financial guarantee contracts that are not designated as at fair value through profit or loss, or loan commitments not
designated as at fair value through profit or loss but to offer at the interest rate lower than market level they are, after initial
recognition, subsequently measured at the higher of: (i) the amount determined according to the principles of Accounting
Standards for Business Enterprises No. 13 - Contingencies, and (ii) the amount initially recognized less the accumulated
amortization determined according to the principles of Accounting Standards for Business Enterprises No. 14 - Revenue.
（6）Derecognition of financial liability
The Group derecognizes a financial liability (or part of it) when the underlying present obligation (or part of it) is discharged or
cancelled or has expired. An agreement between the Group (an existing borrower) and existing lender to replace original
financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the
original financial liability and the recognition of a new liability.
When the financial liabilities are fully and partially derecognized, the difference between the carrying value of the part
derecognized and consideration paid ( including the non-current assets transferred out or new financial liabilities assumed )
should be recorded in the current period profit and loss.
11、Account receivable
（1）Provision for bad debts of account receivable that are individually significant
The judgment basis for significant single-item amount The accounts receivable with single-item amount of
or standard for significant amount RMB 5 million and above
For an account receivable that is individually
significant, the asset is individually assessed for
impairment. If there is objective evidence indicating
The method of separate provision for bad debts for the that the asset is impaired. The impairment loss is
accounts receivable with significant single-item amount recognized in the profit and loss at the excess of
carrying value over its predicted future cash flow
(excluding the non-incurred future credit loss )
discounted with original actual interest rate.
（2）Provisions of bad debts for accounts receivables that is individually insignificant.
For the accounts receivables that is individually
insignificant, if there are signs indicating the
impairment, such as long-aging, having a dispute with
The reason for provision of bad debts individually
the obligator or obligator suffering serious financial
difficulties, it should be individually tested for
impairment.
Methods of provision for bad debts Assessment of impairment losses individualy
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12.Inventories
（1）Classification of inventory
Inventory was classified according to real estate development and non-development of products. The real estate development
products are the real estate developing products, real estate developed products and intended to develop products. The non-real
estate development products include raw materials, finished products and stocks, low-value consumable products and
construction in progress.
Real estate developed products means that have been completed and pending the sale of the property;The real estate developing
products means that property has not been completed and the purpose of property is to sell.The intended to develop products
means that the land has been bought and has has decided to develop for the sale or lease of property.The intended to develop
products in the overall development of the project all transferred to the construction in process.Part of the phased development
of the land transfer into the construction in process account and undeveloped land is still retained in the intended to develop
products account,when the project is developed in stage.
（2）Valuation method of inventories upon delivery
Inventories are initially carried at the actual cost. Cost of inventories comprises all costs of purchase, costs of conversion and
other costs. The actual cost of inventories transferred out is assigned by using weighted average method, and development
products by specific identification method.
（3）Basis for determining net realizable value of inventories and provision methods for decline in value of inventories
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the
estimated costs necessary to make the sale and relevant taxes. Net realizable value is determined on the basis of clear evidence
obtained, and takes into consideration the purpose of holding inventories and effect of post balance sheet events.
At the balance sheet date, inventories are measured at the lower of the cost and net realizable value. If the net realizable value is
below the cost of inventories, a provision for decline in value of inventories is made. The provision for inventories decline in
value is determined by the difference of the cost of individual item less its realizable value.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be
written down below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original
provision for decline in value is reversed and the reversal is included in profit or loss for the period.
(4) Inventory count system is based on the perpetual stock system.
(5) Amortization method for low cost and short-lived consumable items and packaging materials.
Low cost and short-lived consumable items are amortized using immediate write-off method; packaging materials are amortized
using immediate write-off method.
（6）The costing method of constitute land development
Cost of land constitutes land development costs for pure land development project.Together with the overall development of the
property, its cost is included in housing costs generally based on the actual area.
（7）Public Facilities Fee
The cost is the actual construction cost incurred. If several estate projects benefit from the same facility, they stay in the same
category. The cost of fee should be measured according to the allocation of sales area. If they got benefit but in different
categories, the cost was measured according to the allocation of the area covered.
（8）Utility reserve funds
Utility reserve funds were received by the Group and recorded in Long-term payables. The funds were used to maintain and
renew communal facilities.
（9）Quality Guarantees
Quality Guarantees was put into the account of real estate developing according to the contract amount and also recorded in the
accounts payable at the same time. The actual payment incurs after the expiry of guarantee.
13.Held-for-sale assets
The non-current assets which can be sold at its current conditions, the Group’s disposal decision have been made, an
un-revocable transferring agreement has been made and the transfer can be finished within one year, it should be recognized as
held-for-sale non-current assets. The amortization or depreciation will be ceased since the day it is reclassified as held-for-sale
assets. And it should be measured at the lower of carrying amount and its fair value less cost of disposal.
The held-for-sale non-current assets include the individual assets and asset group of disposal. If the asset group met the
definition regulated in the Chinese Accounting Standards for Business Enterprises No.8 –Asset impairment and it has been
allocated with the goodwill gained through the enterprises combination according to the provision of the regulation, or the asset
53
group of disposal is a business of the asset group, the asset group should include the goodwill resulted from the enterprise
combination.
The individual non-current assets classified as held-for-sale and assets within the asset group of disposal, should be represented
individually in the current assets section of the balance sheet; The liabilities which belong to the disposal group of held-for-sale
and is related with transferring the possession of assets, it should be individually represented in the current liability section of
the balance sheet.
Some assets or assets group of disposal that have been classified as held-for-sale but the conditions are not met for being
recognized as held-for-sale non-current assets thereafter. The assets should be stopped being classified as held-for-sale and
should be measured at the lower of: (1) The book value of assets and asset group of disposal before they are classified as
held-for-sale, being adjusted by the amortization, depreciation or impairment pretending that they were not initially classified as
held-for-sale; and (2) the recoverable amount on the day when decide not to sell.
14.Long-term equity investments
The long-term equity investment mentioned in this section is about the equity investment of which the Group has control,
common control or significant influences over the investee. For the investments that the Group has no control, common control
or significant influences over the investee, they will be recorded as available-for-sale or financial instrument assets measured at
fair value with its changes into profit and loss. Please refer to note 4.9-Financial instruments for detail.
Common control means the Group’s mutual control to the arrangement according to the related agreement and the
arrangement’s activities related decisions can be made only after getting the mutual agreement from other parties sharing the
control power. Significant influences represent that the Group has the right to participate in the decision of the financial and
operating policies, but cannot control or control together with other parties to make the policy related decision.
(1) Determination of investment cost
For a business combination involving enterprises under common control, the initial investment cost of the long-term equity
investment shall be carrying value of the absorbing party’s share of the shareholder’s of the party being absorbed at the date of
combination.
For a business combination not involving enterprise under common control, the combination cost including the sum of fair value,
at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer. The
intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services etc and
other associated administrative expenses attributable to the business combination are recognized in profit or loss when they are
incurred.
The transaction cost for the equity securities or liability securities issued by the acquirer in the business combination shall be
recognized as initial amount of equity security or liability.
The equity investments other than the long-term equity through combination shall be initially measured by cost. The cost shall
be recognized to the difference in the way of acquisition of long-term equity investment. Theses ways include the cash purchase
price the Group actually paid, the fair value of equity security issued by the Group, value specified in the investment contract or
agreement, the fair value or carrying value of the asset transferred out in the transaction of non-monetary asset exchanges, and
the fair value of the long-term equity investment. Expenses, taxes and other necessary expenditures directly attributable to the
acquisition of long-term equity investment are taken into investment cost. For the long-term equity investments that the Group
can have significant influence or common control on the investee, but cannot control the investee, because of the added
investments, the cost of the long-term equity investment should be the sum of original fair value of the investment and the cost
of newly added investment.
(2) Subsequent measurement
Where an investing enterprise can exercise common control or significant influence over the investee, a long-term investment
shall be accounted for using the equity method. Besides, the cost method shall be adopted in a long-term equity investment
when the Group can exercise control over the investee.
① Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits
declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity
investment, investment income is recognized in the period in accordance with the attributable share of cash dividends or profit
distributions declared by the investee.
② Equity method of accounting for long-term equity investments
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest in the fair values
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of the investee’s identifiable net assets at the time of acquisition, no adjustment shall be made to the initial investment cost.
Where the initial investment cost of a long-term equity investment is less than the investing enterprise’s interest in the fair
values of investee’s identifiable net assets at the time of acquisition, the difference shall be charged to profit or loss for the
current period, and the cost of the long-term equity investment shall adjusted accordingly.
Under the equity method，the Group recognizes its share of the net profit or loss and other comprehensive income of the investee
for the period as investment income or loss and other comprehensive income for the period and adjusts the book value of the
long-term equity investment simultaneously. The Group reduces the book value of the long-term equity investment, according to
the shared profit or cash dividends declared by the investee. For the changes of investee’s equity beside the net profit, other
comprehensive income and profit distribution, adjust the book value of the long-term equity investment and its capital surplus.
When determining the share percentage of investee’s net profit, it should be made based on the fair value of investee’s
identifiable assets after adjusting the investee’s net profit on the acquisition date. When the investee’s accounting period and
accounting policies are different with the Group’s, the subsidiary’s financial statements should be adjusted according to the
Group’s and recognize the investment income and other comprehensive income based on it. Unrealized profits or losses
resulting from the Group’s transactions with its associates and joint ventures are recognized as investment income or loss to the
extent that those attributable to the Group’s equity interest are eliminated. However, unrealized losses resulting from the
Group’s transactions with its investees on the transferred assets, in accordance with "Accounting Standards for Enterprises No.
8 - Impairment of Assets", are not eliminated. When the Group’s assets invested to joint venture and jointly run business are a
deal and the Group obtains the long-term equity investment without getting the power of control, the initial cost of the
investment is determined by fair value of the assets invested. The difference between the initial cost and the book value of the
assets invested should be fully taken into profit and loss. When the Group’s assets sold to joint venture and jointly run business
are a deal, the differences between the consideration received and the book value are fully taken into the profit and loss. When
the Group’s buying assets from joint venture and jointly run business are a deal, the gain and loss would be fully recognized
according to the Accounting Standards for Business Enterprises No.20 -Enterprises combination.
When the investee is recognized net losses, reduce the carrying value of long-term equity investments and long-term equity of
net investment (in substance) in investee to zero. In addition, the Group has the obligations on additional losses, then the
expected obligation as estimated liabilities and included in the current investment losses. Where the net profit from investee
units, restoration confirm the amount of revenue sharing after offset the amount of unrecognized loss sharing.
For long-term equity investments in associates and joint ventures which had been held by the Group before its first time
adoption of Accounting Standards for Business Enterprises, where the initial investment cost of a long-term equity investment
exceeds the Group’s interest in the investee’s net assets at the time of acquisition, the excess is amortized and is recognized in
profit or loss on a straight line basis over the original remaining life.
③ Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion of net asset
cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve is not sufficient to absorb
the difference, the excess are adjusted against retained earnings.
④ Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control, the difference in the net
asset between the amount of disposed long-term investment and the amount of the consideration paid or received is adjusted to
the owner’s equity. If the disposal of long-term investment in a subsidiary involves loss of control over the subsidiary, the
related accounting policies in 6.(2 applies.
(3) Accounting policies retailed on “the method of preparing consolidated financial statements”
On disposal of a long-term equity investment, the difference between the proceeds actually received and receivable and the
carrying amount is recognized in profit or loss for the period.
For long-term equity investment accounted for using the equity method, when the rest of the long-term equity investment is still
accounted for using the equity method after disposal, the other comprehensive income originally recorded into the equity should
be dealt with by the same way as the investee’s directly dealing with its assets or liabilities. The other investee equity changes
caused beside the net profit, other comprehensive income and profit distribution should be proportionately transferred into
current year profit and loss.
For long-term equity investment accounted for using the cost method, when the rest of the long-term equity investment is still
accounted for using the cost method after disposal, other comprehensive income recognized using the equity method or the
method of recognizing and measuring the financial instruments before obtaining the control over the investee should be dealt
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with as the same way with investee’s direct disposing of its assets and liabilities and be proportionately taken into profit and
loss; The other investee equity changes caused beside the net profit, other comprehensive income and profit distribution should
be proportionately transferred into current year profit and loss.
When the Group loses control over the investee but still can exercise the common control or significant influences over the
investee after partial disposal of the long-term equity investment, the equity method should be used to prepare individual
financial statements. The rest equity investment is treated as accounted using the equity method upon the acquisition and is
adjusted; If no control and significant influences cannot be exercised, the rest equity investments should be recognized and
measured by the accounting standards to financial instruments. The difference between the fair value and book value is taken
into current profit and loss.
For the other comprehensive income recognized under the equity method or the financial instrument related method before
obtain the control over investee, it will be treated as the same way with investee’ directly disposing its assets or liabilities when
losing the control over investee. The equity changes under equity method caused beside the net profit, other comprehensive
income and profit distribution should be transferred into the profit and loss when losing the control over investee. Including,
other comprehensive income and other owner’s equity should be proportionately transferred, when the rest equity investment is
accounted with equity method; Other comprehensive income and other owner’ equity should be fully transferred, when the rest
equity investment is accounted with accounting standards of financial instruments.
The Group loses the control and significant influences over the investee, because of disposing of part of long-term equity
investment. The difference between fair value and book value on the day when losing the control and significant influences over
the investee should be taken into profit and loss. Other comprehensive income recognized for the original equity investments
under equity method, would be dealt with as the same way with investee’s directly disposing of its assets and liabilities when
cease using the equity method. The equity changes caused beside the net profit, other comprehensive income and profit
distribution, should be transferred into investment income when cease using the equity method.
For the Group’s multiple-step dealing with its long-term equity investments until losing control, if the transactions are package
deal, each transaction should be treated as a transaction dealing with its long-term equity investments until losing control, the
difference between the consideration received and the book value of the equity investment should be firstly recognized as other
comprehensive income before losing control over investee and then all transferred into current profit and loss.
15.Investment properties
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is property held to earn rental or for capital appreciation or both. It includes a land use right that is leased
out, a land use right held for transfer upon capital appreciation, and a building that is leased out. Besides, the Group has
buildings empty for operating lease. If there is a written decision from the Board (or similar organization) with clear indication
for operating lease and intention that no change shall be made in the near future, the buildings shall be presented as investment
properties.
An investment property is measured initially at cost. Subsequent expenditures incurred for such investment property are
included in the cost of the investment property if it is probable that economic benefits associated with an investment property
will flow to the Group and the subsequent expenditures can be measured reliably. Other subsequent expenditures are recognized
in profit or loss in the period in which they are incurred.
The Group uses the cost method for subsequent measurement of investment property, and adopts a depreciation or amortization
policy for the investment property which consistent with that for building or land use rights.
Where self-occupied property or inventory converts into investment property, or investment property converts into self-occupied
property, the carrying amount before the change shall be accounted as the value after conversion.
When an investment property changes into self-occupied property, it should be converted into fixed asset or intangible asset on
the date of conversion. When the purpose of a self-occupied property changes into rental earning or capital increase, fixed asset
or intangible asset should be converted into an investment property from the date of conversion. Where the cost model is used in
the measurement of investment property during the conversion, the carrying amount before the conversion is accounted as the
value after conversion. Where the investment property is measured by the fair value after conversion, the fair value at the
conversion date is adopted as value after conversion.
Where an investment property is disposed or no longer in use permanently and no economic benefits shall be obtained from the
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disposal, derecognized the investment property. The income from sale, transfer or disposal of the investment property is
recorded in the profit or loss after deduction of its carrying amount and related tax.
16.Fixed assets
(1) The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities, rendering labor service, renting or
business management and their useful life is in excess of one fiscal year.
（2）Depreciation method
Estimated residual
Type Detail Estimated useful Life Depreciation rate
value rate
House and Building Straight-line method 30 5% 3.17%
Production
Straight-line method 7 5% 13.57%
equipment
Transportation
Straight-line method 6 5% 15.83%
equipment
Electronic equipment
Straight-line method 5 5% 19%
and others
Fixed assets are stated at cost and consider the impact of expected costs of abandoning the initial measurement. From the
following month of state of intended use, depreciation method of the straight-line method is used for different categories of
fixed assets to take depreciation. Expected net residual value of fixed assets is the balance of the Group currently obtained from
the disposal of the asset less the estimated costs of disposal amount, assuming the asset is out of useful life and state the
expected service life in the end.
1.Measurement and recognition of fixed assets impairment
The method of measurement and recognition of fixed assets impairment is detailed listed on the note Ⅴ.22-Lon00-term assets
impairment.
A fixed asset is recognized only when the economic benefits associated with the asset will probably flow to the Company and
the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria
shall be included in the cost of the fixed asset, and the carrying amount of the component of the fixed asset that is replaced shall
be derecognized. Otherwise, such expenditure shall be recognized in profit or loss in the period in which they are incurred.
The revenue from selling or transferring, or disposing a fixed asset is booked into profit and loss after deduction of carrying
value and related tax.
The Group conducts a review of useful life, expected net realizable value and depreciation methods of the fixed asset at least on
an annual base. Any change is regarded as change in accounting estimates.
（3）Recognition and measurement of financial lease
Finance leases which transfer substantially all the risks and rewards of ownership. The depreciation policy for assets held under
finance leases should be consistent with that for owned assets. If there is no reasonable certainty that the lessee will obtain
ownership at the end of the lease – the asset should be depreciated over the shorter of the lease term or the life of the asset
17.Construction in progress
(1) The types of construction in progress
Construction in progress includes preparation before construction, construction engineering in progress, installation engineering
in progress, technical improvement engineering, repair engineering etc. whose costs are determined by the actually incurred
expenditures.
（2）The standards and time of transferring the construction in progress to fixed assets.
When the constructions in progress reach the condition of available for use, it should be transferred to the fixed assets per the
full actually incurred costs.
（3）The method of testing the impairment and the provision for construction in progress
The method of measurement and recognition for construction in progress impairment is detailed listed on the note
5.22-Long-term assets impairment.
18.Borrowing costs
(1) The standards for capitalizing the borrowing cost
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in
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connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings.
The Company starts to capitalize the borrowing expenses in direct connection to purchase, construction or production of the
assets that meet capitalization conditions when there are assets expenditures and borrowing expenses incurred and/or the
Company starts all the necessary events to purchase, construct or produce such assets till the assets can be used and sold. Other
borrowing cost are recognized as costs when incurred.
(2) The period of capitalizing the borrowing costs
The period of borrowing costs capitalization is calculated from the point when borrowing costs beginning capitalizing to the
time stopping capitalizing. The period suspending capitalizing the borrowing costs are excluded.
(3) The period suspending capitalizing the borrowing costs
Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a
qualifying asset is interrupted by activities other than those necessary to prepare the asset for its intended use or sale, when the
interruption is for a continuous period of more than 3 months. Borrowing costs incurred during these periods recognized as an
expense for the current period until the acquisition, construction or production is resumed.
(4) The method for calculating the amount of borrowing cost capitalized
Where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred
on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset
or any investment income on the temporary investment of those funds.
Where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by
applying a weighted average interest rate to the weighted average of the excess amounts of accumulated expenditure on the asset
over and above the amounts of specific-purpose borrowings.
During the capitalization period, exchange differences related to a specific-purpose borrowing denominating in foreign currency
are all capitalized. Exchange differences in connection with general-purpose borrowings are recognized in profit or loss in the
period in which they are incurred.
19.Intangible assets
(1)Valuation method, service life and impairment test
(1) Recognition and calculation of intangible asset
The term“intangible asset”refers to the identifiable non-monetary assets without physical shape, possessed or controlled by
enterprises.
The intangible assets are initially measured by its cost. Expenses related to intangible assets, if the economic benefits related to
intangible assets are likely to flow into the enterprise and the cost of intangible assets can be measured reliably, shall be
recorded as cost of intangible assets. The expenses other than this shall be booked in the profit or loss when they occur.
Land use rights that are purchased by the Group are accounted for as intangible assets. Buildings, such as plants that are
developed and constructed by the Group, and relevant land use rights and buildings, are accounted for as intangible assets and
fixed assets, respectively. Payments for the land and buildings purchased are allocated between the land use rights and the
buildings; if they cannot be reasonably allocated, all of the land use rights and buildings are accounted for as fixed assets.
When an intangible asset with a definite useful life is available for use, its original cost less net residual value and any
accumulate impairment losses is amortized over its estimated useful life using the straight-line method. An intangible asset with
an indefinite useful life is not amortized.
For an intangible asset with a definite useful life, the Group reviews the useful life and amortization method at the end of the
period, and makes adjustment when necessary.. An additional review is also carried out for useful life of the intangible assets
with indefinite useful life. If there is evidence showing the foreseeable limit period of economic benefits generated to the
enterprise by the intangible assets, then estimate its useful life and amortize according to the policy of intangible assets with
definite useful life.
（2）The estimation of the useful life of the indefinite intangible assets
Item Estimated useful life Basement
Taxi license 38 years The recorded years of taxi license
Software 5 years Fixed assets, electronic and other
equipment useful lives
(3) The basis to judgment intangible assets whose useful lives are uncertainty
The periods of which the intangible assets can bring benefits to the Group cannot be reasonably determined, the intangible assets
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will be classified as indefinite intangible assets.
(4) Methods of impairment assessment and determining the provision for impairment losses of intangible assets
The testing method for intangible assets impairment and the calculation of the provision for impairment is detailed listed on the
note 5.22-Long-term assets impairment.
(5) The standards to distinguishing the research stage and development stage of internally developed intangible assets
Research stage: the stage when the creative planned investigation and research activities are carried on, in order to obtain and
understand the new sciences and technical knowledge;
Development stage: the stage of applying the research results and other knowledge to the specified plan or design so as to
produce new or substantially improved materials , equipment and products before commercial production or use.
（2）The accounting of expenditures of internally researched and developed project
Expenditure on the research phase of an internal research is recognized in profit & loss in the period in which it is incurred.
Expenditure during the development phase that meets all of the following conditions at the same time is recognized as intangible
asset. Expenditure during development phase that does not meet the following conditions is recognized in profit or loss for the
period.
① it is technical feasible to complete the intangible asset so that it will be available for use or sale;
② the Group has the intention to complete the intangible asset and use or sell it;
③ the Group can demonstrate the ways in which the intangible asset will generate economic benefits including the evidence of
the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the
usefulness of the intangible asset;
④ the availability of adequate technical, financial and other resources to complete the development and the ability to use or sell
the intangible asset;
⑤ he expenditure attributable to the intangible asset during its development phase can be reliably measured.
If the expenditures cannot be distinguished between the research phase and development phase, the Group recognizes all of
them in profit or loss for the period.
20.Long-term assets impairment
On each balance sheet date, the Group will make judgments to determine whether there are signs for impairment to the fixed
assets ,construction in progress, definite intangible assets, investment properties& equity investment in subsidiaries& joint
ventures& jointly run business measured using the cost method etc. non-current and non-financial assets. If there are signs for
impairment, the impairment should be tested by estimating the recoverable amount. Goodwill, indefinite intangible assets and
intangible assets having not reached the usable condition, should be yearly tested for impairment no matter whether there are
signs for impairment.
The result of impairment test demonstrates that the recoverable amount is less than its carrying amount, the difference will be
recorded as provision for impairment and debited as impairment loss. The recoverable amount equals to the greater of 1) fair
value less disposal expenses and 2) present value of the predicted future cash flows.The fair value of the assets is determined by
the sale contract price of fair trade; When there are no sale contracts but exist active market ,the fair value will be determined
with the quotation from the buyer; When there exist neither sale contracts nor active market, the assets fair value will be
determined by the best information available. The disposal expenses include the legal expenses, related taxes, delivery fees and
other direct fees incurred for making the assets reach the salable condition. The present value of the predicted future cash flows
is calculated according to the predicted future cash flows generated from the continuous use of the assets and final disposal
discounted with the applicable discounted rate. The provision for impairment test should be recognized based on the individual
asset. If it is hard to estimate the recoverable amount to individual asset, the recoverable amount of the assets group of which the
individual assets are included should be determined. Assets group is the smallest unit that can independently generate the cash
inflow.
For the goodwill separately displayed on the financial statement, when making the impairment test, the carry value of the
goodwill should be allocated to assets group or the group of assets group predicted to be benefit from the synergistic effect from
the enterprises combination. When the rest result shows that the recoverable of the assets group or the group of assets group
having been allocated with the relevant goodwill is less than the carrying amount, the related impairment loss should be
recognized. The impairment losses will firstly reduce the book value of the goodwill allocated and then reduce the book value of
each asset of the assets group or the group of assets group according to the percentage of each asset to the assets group or the
group of assets group beside the goodwill.
The impairment loss of the above assets would not be reversed back once they are recognized.
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21.Long-term Prepaid Expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over the current and subsequent
period (together of more than one year). Long-term prepaid expenses are amortized by using straight line method.
22.Employee Benefits
（1）Accounting methods for short-term benefits
The short-term benefits include the employees’ salary, bonus, allowance and compensation, employee welfare, medical
insurance, maternity insurance, employment injury insurance, housing fund, labor union expense and employee education
expense and non-currency welfare etc. The Group recognizes the actually incurred short-term employee benefits as liability
during the period when the employees’ services are rendered, the expenses are recorded into the current period profit and loss
or related asset costs according to the benefit object. For the non-currency welfare, it is recognized according to its fair value.
（2）Accounting methods for post-employment benefits
post-employment benefits mainly includes the defined contribution plan . The defined contribution plan mainly include the
basic endowment insurance premium, unemployment insurance expense and pension etc..For the defined contribution plan, the
sinking fund deposited to the an independent entity for the service provided by employee in the accounting period on the
balance sheet is recognized as the debt and included in the current profit and loss or related asset costs according to the benefit
object.
（3）Accounting methods for demission benefits
When the Group cannot unilaterally withdraw the dismissal benefits provided for the plan on the cancellation of labor
relationship or layoff proposal, or recognize the cost or expense involved with the recombination of dismissal benefits or
payment of such dismissal benefits (whichever is earlier), the employee’s remuneration incurred by dismissal benefits is
recognized as the debt and included in the current profits and losses or related assets cost. But when then dismissal is predicted
not to be paid in the following 12 months after the report date, it would be classified as other long-term benefits.
Employee internal retirement plan is treated as the same way with dismissal benefits mentioned above. The Group would record
the relevant salaries and social insurances provided to the employees under the plan into the profits and losses (dismissal
benefits) during the period from the day stopping providing the services to the legal retirement day, when the conditions for
recognizing the contingency liability are met.
（4）Accounting methods for other long-term employee benefits
Other long-term benefits provided by the Group is referred to as the welfare beside the short-term benefits, post-employment
benefits, demission benefits. It would be recognized as the requirements of defined contribution plan, when conditions are met.
Or else, it would be recorded as defined benefit plan.
23. Accrued liabilities
Accrued liabilities is expected to be in the category of liabilities，The accrued liabilities should to be recognized if the
condition of liability has been satisfied.The recognition and measurement of contingent liabilities usually refers to the
recognition and measurement of liabilities.
（1）The recognition criteria of accrued liabilities
Accrued liabilities (or Provisions) are recognized when following obligations related to a contingency are satisfied
simultaneously. ：（1）such obligation is the present obligation of the Group；（2）it is probable that an outflow of economic
benefits will be required to settle the obligation；（3）the amount of the obligation can be measured reliably.。
（2）The measurement method of accrued liabilities
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the
balance sheet date, taking into account factors pertaining to a contingency such as risks, uncertainties and time value of
money.Where all or some of the expenditure required to settle a provision is expected to be reimbursed by a third party, the
reimbursement is recognized as a separate asset only when it is virtually certain that reimbursement will be received, and the
amount of reimbursement recognized does not exceed the carrying amount of the provision.
① Onerous contracts
An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the
economic benefits expected to be received under it. The exceeding part over the assets in the contract shall be recognized as a
provision when an executor contract becomes an onerous contract and the obligation arising under the onerous contract satisfies
the requirements of provisions.
② Restructuring Obligation
The amount of a restructuring provision shall be recognized by the total direct expenditures arising from the restructuring when
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the enterprise has a detailed, formal plan for the restructuring, and a public announcement of the plan has been made for
restructuring and above requirements for the provision mentioned above are satisfied. (For the restructuring obligation carried
for the portion of business for sale, the obligation related to the restructuring can only be recognized when the Group has
committed for the sales of portion of the business (signing the selling agreement with termination)
24. Revenue
（1）Recognition time for sales of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group retains neither
continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the associated costs incurred or to be incurred can be measured reliably.
According to the principles above, the Group established real estate sales revenue is recognized, must satisfied the following
four conditions at the same time:
A. Real estate is completed, and is completed checking and accepting;
B. Signed a contract of sale and make recording in land department
C. Installment, if it is deferred for receiving money with financing, the cost should be measured in present value according to the
contract price. Mortgage, has been received, and have completed the first phase of the mortgage loan approval procedures;
D. Agreed in the contract of sale and transfer the property to buyers.
（2） Recognition basis for revenue from alienation of assets use right
When the relevant economic benefits are likely to flow into the company and the amount of revenues can be measured in a
reliable way,the revenue from alienation of assets use right may be recognized, if:
① Interest revenue: it is measured and confirmed in accordance with the length of time for which the company's cash is used
by others and the actual interest rate;
② Revenue from property lease: it is measured by using straight line method within the effective release period according to
the contract or agreement signed between the company with the lessee.
（3） Recognition basis and method of revenue from labor
In the case of the result of providing labour service that can be reliable estimate ,The labour service revenue is recognised based
on percentage of completion method at balance sheet date.Contract or agreement entered into with other companies, including
the sale of goods when providing services, the sale of goods and rendering of services can be measured in part to distinguish and
separate, should be part of the sale of goods as sale of goods, the provision of services and as part of the provision of services
deal with. Sales of goods and rendering of services can not be distinguished,or can be distinguished but can not be measured
separately, should be part of the sale of goods and provision of services as part of the total sales of goods.
（4） The base and method is used to measure the completion progress of service contract
The measurement of completion progress is based on the proportion of the costs incurred to the total。
The reliable estimation of the results of labor deal means satisfying the following conditions:：① The relevant amount of
revenue can be measured in a reliable way；② The relevant economic benefits may flow into the enterprise；③ The schedule of
completion under the transaction can be confirmed in a reliable way；④ The costs incurred or to be incurred in the transaction
can be measured in a reliable way。
If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services is
recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried
forward at the same amount。 If the cost of labor services incurred is not expected to compensate, the cost incurred are included
in the current profits and losses, and no revenue from the providing of labor services may be recognized。
25.Government Grants
（1） Accounting method and recognition basis for grant related to the assets
（1）Type
Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at no
consideration, excluding the capital invested by the government as equity owner. Government grant can be classified as grant
related to the assets and grants related to the income.
（2）Accounting policy
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a
government grant is in the form of a non-monetary asset, it is measured at fair value. If the fair value cannot be reliably
determined, it is measured at a nominal amount. A government grant measured at a nominal amount is recognized immediately
in profit or loss for the period.
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A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful
life of the related asset. For a government grant related to income, if the grant is a compensation for related expenses or losses to
be incurred in subsequent period, the grant is recognized as deferred income, and recognized in profit or loss over the periods in
which the related costs are recognized. If the grant is a compensation for related expenses or losses already incurred, the grant is
recognized immediately in profit or loss for the period.
For repayment of a government grant already recognized, if there is a related deferred income, the repayment is offset against
the carrying amount of the deferred income, and any excess is recognized in profit or loss for the period. If there is no related
deferred income, the repayment is recognized immediately in profit or loss for the period.
（2）Accounting method and recognition basis for grant related to the income
The government grants related to incomes shall be accounted into the current profit or loss if they are used to compensate for the
correlative expenses or losses occurred, and shall be recognized as the deferred income and accounted into the current profit or
loss during the expense confirmation period if they are used to compensate for the correlative expenses or losses occurred in the
subsequent period. The government grants measured at the nominal amount shall be directly accounted into the current profit or
loss.
26.Deferred income tax assets and deferred income tax liabilities
（1）Income tax for current period
The recognition on which current income tax liabilities (or asset)for the current and prior periods is based on the measurement
of the amount of income tax payable(or return) in the calculation of the provisions of the tax law in balance sheet date.The
income tax expense is recognized based on calculated result of adjusted income benefit before tax by provisions of tax law.
（2）Deferred income tax assets and deferred income tax liabilities
For temporary differences between the carrying amount of certain assets or liabilities and their tax base, or between the nil
carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according
to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
For temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability
arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or
deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.Besides,For taxable temporary
differences associated with investments in subsidiaries and associates, and interests in joint ventures, no deferred income tax
liability related is recognized except where the Group is able to control the timing of reversal of the temporary difference and it
is probable that the temporary difference will not reverse in the foreseeable future.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an asset or
liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or
deductible loss)when it happens, the relevant deferred income tax liabilities shall not be recognized. 。 In addition, as for
taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, if the Company could
control the reverse time of such differences and such differences cannot be reversed in the foreseeable future, the relevant
deferred income tax liabilities also shall not be recognized. Apart from the above-mentioned exceptional cases, the Company
recognizes all other deferred income tax liabilities caused by taxable temporary differences.
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during subsequent years
shall be recognized within the limit of likely obtained future taxable income that can be used to deduct the deductible loss and
tax reduction.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of the deferred
income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the future to deduct the benefit of
the deferred tax assets and the written-down amount shall be carried forward if it is likely to obtain sufficient taxable income.
（3）Income tax expense
The income tax include current income tax and deffered income tax.
In addition to confirm other comprehensive income or directly recorded in the owner's equity transactions and events related to
the current income tax and deferred income tax is recognized in other comprehensive income or the owner's rights and interests,
the book value of deferred income tax adjustments for goodwill in business combination, the rest of the current the tax and
deferred income tax expense or income is recognized in the profits and losses of the current period.
（4）Income tax offset
When the company have the legal right to net settlement , intent to acquire assets or net settlement,settle the liability
62
simultaneously，The way presentation is by means of offsetting current tax assets against current tax liabilities.
When the company have the legal right to net settlement for current income tax assets and current income tax liabilities，And
deferred tax assets and deferred tax liabilities are related to the same taxation authority on the same taxable income subject
levied by or related to different taxable entities,But in each future period significant deferred tax assets and liabilities are
reversed, the tax payer intends to offset current tax assets and liabilities or simultaneously acquire assets and settle liabilities,The
group.The way presentation is by means of offsetting current tax assets against current tax liabilities.
27.Leases
（1）Accounting method of operating Lease
① The Group as Lessee under Operating Lease
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and either
included in the cost of the related asset or charged to profit or loss for the current period. The contingent rents shall be recorded
in the profit or loss of the period in which they actually arise.
② The Group as Leaser under Operating Lease
Lease income from operating leases shall be recognized by the leaser in profit or loss on a straight-line basis over the lease term.
Initial direct cost of significance in amount shall be capitalized when incurred. If another basis is more systematic and rational,
that basis may be used. Contingent rents are credited to profit or loss in the period in which they actually arise.
（2）Accounting method of financing Lease
① The Group as Lessee under Operating Lease
For an asset that is held under a finance lease, at the lease commencement, the leased asset is recorded at the lower of its fair
value at the lease commencement and the present value of the minimum lease payments, and the minimum lease payment is
recorded as the carrying amount of the long-term payables; the difference between the recorded amount of the leased asset and
the recorded amount of the payable is accounted for as unrecognized finance charge, Initial direct costs incurred by the lessee
during the process of negotiating and securing the lease agreement shall be added to the amount recognized for the leased asset.
The net amount of minimum lease payment deducted by the unrecognized finance shall be separated into long-term liabilities
and long-term liability within one year for presentation.
Unrecognized finance charge shall be computed by the effective interest method during the lease term. Contingent rent shall be
booked into profit or loss when actually incurred.
② The Group as Leaser under Operating Lease
For an asset that is leased out under a finance lease, the aggregate of the minimum lease receipts at the inception of the lease and
the initial direct costs is recorded as a finance lease receivable, and unguaranteed residual value is recorded at the same time; the
difference between the aggregate of the minimum lease receipt, initial direct costs, and unguaranteed residual value, and the
aggregate of their present values, is recognized as unearned finance income, which is amortized using the effective interest rate
method over each period during the lease term.
Finance lease receivable less unearned finance income shall be separated into long-term liabilities and long-term liability within
one year for presentation.
Unearned finance income shall be computed by the effective interest method during the lease term. Contingent rent shall be
credited into profit or loss in which actually incurred.
28.Material accounting judgments and accounting estimations
Because of the inherent uncertainties of the operating activities, the Group need to make judgments, estimations and
assumptions to the financial statement items whose carrying amount cannot be accurately measured. Those judgments,
estimations and assumptions are made based on the management’s historical experience and taking other relevant factors into
account. Those judgments, estimations and assumptions would influence the reported amount of revenue, expense, asset and
liability and disclosure of the contingency liability on the balance sheet date. However, the actual result caused by the
uncertainty of these estimations may be different with the present estimation made by the management, which may cause
significant adjustments to the carrying amount of the influenced assets and liabilities in the future.
The Group are making periodical review on the judgments, estimations and assumptions mentioned above based on the premise
of going concern. For the changes of estimations that only influence the current period, the influenced amount will be
recognized in the current period. For the changes of estimations that not only influence the current period ,but also affect the
future periods, the influenced amount will be recognized in the current period and future period.
As of the balance sheet date, the material areas that need to be judged ,estimated and assumed are listed below:
（1）The classification of lease
63
The lease are classified into operating lease and finance lease, according to the “Accounting Standards for Business Enterprise
No.21-Lease” .When making the classification, the management need to make analysis and judgment about whether all risk and
reward related with the ownership of assets leased out have been substantially transferred to the lessee or not ,or whether all risk
and reward related with the ownership of the assets leased have substantially assumed by the Group.
（2）The provision for allowance for bad debt
The Group applies the allowance method to estimate the bad debt, according to the policy of accounts receivable. The
impairment of accounts receivable is based on the evaluation of accounts receivable’s possibility of collection. The difference
between the actual result and the original estimation would influence the accounts receivable’s carrying value and cause the
balance of allowance for bad debt to increase or reverse back during the period when the estimation is changed.
（3）Provision for inventory
According to inventory accounting policy, the ending inventory is measured by the lower of cost and net realizable value. When
the cost is greater than the net realizable value and the obsolete and unsalable inventory, the inventory falling price reserve shall
be withdrawn. Reduce the inventory to the net realizable value is based on the evaluation the salable of the inventory and its net
realizable value. Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are
made and take into consideration the purpose for which the inventory is held and the influences of events occurring after the
balance sheet date. The difference between the actual result and original estimation will influence the carrying amount of the
inventory and cause the provision for inventory to increase or reverse back during the period when the estimation is changed.
（4）The fair value of financial instrument
For the financial instrument lacking active trading market, the Group will use several valuation methods to make sure the fair
value. The methods include the model to analyze the discounted cash flow etc. The Group will evaluate the following aspects,
such as the future cash flow, credit risk, market volatility and the relativity etc. and then choose the applicable discounted rate,
when making the evaluation. There are uncertainties for the relevant assumptions whose changes will influence the fair value of
financial instrument.
（5）Provision for non-financial and non-current assets
The Group will make judgment on the non-current assets beside the financial assets about whether there are signs for
impairment on the balance sheet date. For the intangible assets whose life is uncertain, when there are signs for impairment, it
should be tested for impairment, beside the yearly impairment test. Other non-current assets beside the financial statement, when
there are signs indicating that the carrying value are unrecoverable, it should be tested for impairment.
When the carrying value of the asset or asset group is greater than the recoverable amount (i.e., the net value of fair value less
the cost of disposal and present value of the predicted future cash flow whichever is higher), it indicates impairment.
The net value of fair value less the cost of disposal, is referred to the agreed sale price of similar assets under fair trade or the
observable market price, less the incremental cost directly related with the disposal of the assets.
The Group need to make significant judgment to the output of assets (or assets group), sale price, relevant operating cost and the
discounted rate when estimating the present value of future cash flows. The Group will make use of any relevant material
available when estimating the recoverable amount , including the prediction of the output, sale price and relevant operating cost
according to reasonable and supportable assumptions.
The Group will test the goodwill for impairment at least once a year, which requires to estimate the present value of the future
cash flows of the assets and assets group allocated with the goodwill . When estimating the present value to the future cash flow,
the Group need to estimate the cash flows generating from the assets and assets group, and choose the applicable discount rate to
determine the present value.
（6）Depreciation and amortization
The Group use the straight-line method to depreciate and amortize the investment real estate, fixed assets and intangible assets
within the useful life after taking into the consideration of the residual value. By the way, the amount of depreciation and
amortization during the report period are determined. The useful life is determined based on past experience and the predicted
technical changes of similar assets. If there are significant changes of previous estimations, the depreciation and amortization
would be adjusted in the future periods.
（7）Deferred tax asset
To the degree that there are sufficient taxable profit to make up the deductible losses, the Group will recognize the deferred tax
assets for the un-used deductible losses. It requires the management to apply massive judgments to estimate the time and amount
the taxable profits will generate in the future period combining with the strategic of tax planning to determine the amount of
deferred tax asset.
64
（8）Income tax
There are some uncertainties for some trades’ ultimate tax treatment and calculation. Some items need the determination from
the tax authorities about whether they are deductible before tax or not. If the ultimate tax determination are different with the
originally estimated amount, the difference will influence the current period income tax and the deferred income tax when the
tax determination are finally made.
29.Changes in major accounting policies and accounting estimates
(1) Changes of accounting policies
There were no changes of main accounting policies during this period.
(2)Changes of accounting estimates
There were no changes of main accounting estimations during this period.
30.Material accounting judgments and accounting estimations
Because of the inherent uncertainties of the operating activities, the Group need to make judgments, estimations and
assumptions to the financial statement items whose carrying amount cannot be accurately measured. Those judgments,
estimations and assumptions are made based on the management’s historical experience and taking other relevant factors into
account. Those judgments, estimations and assumptions would influence the reported amount of revenue, expense, asset and
liability and disclosure of the contingency liability on the balance sheet date. However, the actual result caused by the
uncertainty of these estimations may be different with the present estimation made by the management, which may cause
significant adjustments to the carrying amount of the influenced assets and liabilities in the future.
The Group are making periodical review on the judgments, estimations and assumptions mentioned above based on the premise
of going concern. For the changes of estimations that only influence the current period, the influenced amount will be
recognized in the current period. For the changes of estimations that not only influence the current period ,but also affect the
future periods, the influenced amount will be recognized in the current period and future period.
As of the balance sheet date, the material areas that need to be judged ,estimated and assumed are listed below:
（1）The classification of lease
The lease are classified into operating lease and finance lease, according to the “Accounting Standards for Business Enterprise
No.21-Lease” .When making the classification, the management need to make analysis and judgment about whether all risk and
reward related with the ownership of assets leased out have been substantially transferred to the lessee or not ,or whether all risk
and reward related with the ownership of the assets leased have substantially assumed by the Group.
（2）The provision for allowance for bad debt
The Group applies the allowance method to estimate the bad debt, according to the policy of accounts receivable. The
impairment of accounts receivable is based on the evaluation of accounts receivable’s possibility of collection. The difference
between the actual result and the original estimation would influence the accounts receivable’s carrying value and cause the
balance of allowance for bad debt to increase or reverse back during the period when the estimation is changed.
（3）Provision for inventory
According to inventory accounting policy, the ending inventory is measured by the lower of cost and net realizable value. When
the cost is greater than the net realizable value and the obsolete and unsalable inventory, the inventory falling price reserve shall
be withdrawn. Reduce the inventory to the net realizable value is based on the evaluation the salable of the inventory and its net
realizable value. Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are
made and take into consideration the purpose for which the inventory is held and the influences of events occurring after the
balance sheet date. The difference between the actual result and original estimation will influence the carrying amount of the
inventory and cause the provision for inventory to increase or reverse back during the period when the estimation is changed.
（4）The fair value of financial instrument
For the financial instrument lacking active trading market, the Group will use several valuation methods to make sure the fair
value. The methods include the model to analyze the discounted cash flow etc. The Group will evaluate the following aspects,
such as the future cash flow, credit risk, market volatility and the relativity etc. and then choose the applicable discounted rate,
when making the evaluation. There are uncertainties for the relevant assumptions whose changes will influence the fair value of
financial instrument.
（5）Provision for non-financial and non-current assets
The Group will make judgment on the non-current assets beside the financial assets about whether there are signs for
impairment on the balance sheet date. For the intangible assets whose life is uncertain, when there are signs for impairment, it
should be tested for impairment, beside the yearly impairment test. Other non-current assets beside the financial statement, when
65
there are signs indicating that the carrying value are unrecoverable, it should be tested for impairment.
When the carrying value of the asset or asset group is greater than the recoverable amount (i.e., the net value of fair value less
the cost of disposal and present value of the predicted future cash flow whichever is higher), it indicates impairment.
The net value of fair value less the cost of disposal, is referred to the agreed sale price of similar assets under fair trade or the
observable market price, less the incremental cost directly related with the disposal of the assets.
The Group need to make significant judgment to the output of assets (or assets group), sale price, relevant operating cost and the
discounted rate when estimating the present value of future cash flows. The Group will make use of any relevant material
available when estimating the recoverable amount , including the prediction of the output, sale price and relevant operating cost
according to reasonable and supportable assumptions.
The Group will test the goodwill for impairment at least once a year, which requires to estimate the present value of the future
cash flows of the assets and assets group allocated with the goodwill . When estimating the present value to the future cash flow,
the Group need to estimate the cash flows generating from the assets and assets group, and choose the applicable discount rate to
determine the present value.
（6）Depreciation and amortization
The Group use the straight-line method to depreciate and amortize the investment real estate, fixed assets and intangible assets
within the useful life after taking into the consideration of the residual value. By the way, the amount of depreciation and
amortization during the report period are determined. The useful life is determined based on past experience and the predicted
technical changes of similar assets. If there are significant changes of previous estimations, the depreciation and amortization
would be adjusted in the future periods.
（7）Deferred tax asset
To the degree that there are sufficient taxable profit to make up the deductible losses, the Group will recognize the deferred tax
assets for the un-used deductible losses. It requires the management to apply massive judgments to estimate the time and amount
the taxable profits will generate in the future period combining with the strategic of tax planning to determine the amount of
deferred tax asset.
（8）Income tax
There are some uncertainties for some trades’ ultimate tax treatment and calculation. Some items need the determination from
the tax authorities about whether they are deductible before tax or not. If the ultimate tax determination are different with the
originally estimated amount, the difference will influence the current period income tax and the deferred income tax when the
tax determination are finally made.
Ⅵ.Taxation
1.Taxes and their rates
Category Taxable basis Tax rate
Goods sales income, taxi operating
Value added tax (“VAT”) 17%、3%
income
Proceeds from sales of properties,
Business tax leasing-income,property management 5%，3%
income
Construction tax Turnover tax 7%
Income tax Income tax payable 25%
Income tax* Income tax payable 16.5%
Education surcharge(Local
Turnover tax 5%
Education surcharge)
Progressive rates ranging
Land appreciation tax Sales revenue of properties
from 30%-60%
Note*：1、The rate of domestic enterprises is 25%, and the rate of HK enterprises is 16.5%.
2、Reffered as No.〔2016〕36’Notice of a comprehensive expansion of the pilot scope of business tax VAT’，From
May,1,2016As a general taxpayer of the value-added tax, sales the Self development real estate project,application of the general
tax method tax rate of 11%,Simple collection of the old project levy rate of 5%,Real estate operating lease for general caculating
tax method tax rate11%,old project for simple collection method tax rate 5%,Providing construction services for general
66
caculating method tax rate 11%,old project for simple collection method tax rate 3%,Business assistance services for general
caculating method tax rate 6%,Catering accommodation service for general caculating method tax rate 6%.
Ⅶ.Notes to the Consolidated Financial Statements
1.Monetary funds
Currency: yuan
Item Closing balance Opening balance
Cash on hand 48,194.52 54,487.37
Cash in bank 1,496,639,124.40 1,169,701,818.99
Other monetary funds 6,000,000.00 6,000,000.00
Total 1,502,687,318.92 1,175,756,306.36
Including amount deposited in the
9,175,418.72 9,096,056.99
foreign countries
Note:
As of Jun.30,2016, for the funds that the Group’ ownership are restricted they are classified in Other monetary funds and RMB
6,000,000.00 deposited in the Company's rent escrow account for the Company's borrowings.
The closing balance of monetary fund is 1,502,687,318.92(Yuan).An increase of 27.81% compared with opening balance.The
main reason is due to increased sales floor section
2.Note receivables
(1)Note receivables by types
Currency： yuan
Item Closing balance Opening balance
Trade acceptance 18,153,767.30 18,663,872.02
Total 18,153,767.30 18,663,872.02
(2)Note receivables pledged at year end
Note receibables pledged has not exist in closing balance.
(3)Note receivables endorsed or discounted at year end and not matured yet on the balance sheet date
Currency： yuan
Item Amt. derecognized at year end Amt. not derecognized at year end
Trade acceptance 18,153,767.30
Total 18,153,767.30
Note:
As of Jun.30, 2016, the trade acceptance discounted but not matured is RMB 18,153,767.30, the balance of related pledged
borrowing is 18,153,767.30（referring to the note 7.16)。When the trade acceptance cannot be honored when it is mature, the
bank has the power to ask the Group to repay the amount un-settled. The Group continues to recognize the carrying amount of
the trade acceptance and records the amount received as pledged borrowing because of the transfer, due to the Group’s still
undertaking the main risk, such as credit risk relating with the trade acceptance etc..
3.Account receivables
（1） Accounts receivables by categories
Currency： yuan
Closing balance Opening balance
Bad debt Carrying
Carrying amount Bad debt provision
Category provision Book amount Book
value Amou value
Amount (%) Amount (%) (%) Amount (%)
nt
Accounts 131,78
178,152 100.00 19,189, 158,963 100.00 19,243,6 112,543,9
receivable of 10.77% 7,566. 14.60%
,760.98 % 315.16 ,445.82 % 57.51 08.66
which provision 17
67
for bad debts is of
individually
insignificant
131,78
178,152 19,189, 158,963 100.00 19,243,6 112,543,9
Total 100% 10.77% 7,566. 14.60%
,760.98 315.16 ,445.82 % 57.51 08.66
17
（2） Bad debt provision, recovery or reverse
The provision amount of bad debt is RMB 0.00 Yuan.;Recovery or reverse for bad debts Amount is RMB
0.00.
（3）op 5 entities with the largest balances of accounts receivable
Currency： yuan
Proportion of the
Name of Relationship with amount to the total Bad debt
entity the Group Amount Age AR (%) provision
Individual Within 1
4,845,251.67
No.1 Un-related party year 2.72% 0
Individual Within 1
3,847,455.99
No.2 Un-related party year 2.16% 0
Individual Within 1
3,100,000.00
No.3 Un-related party year 1.74% 0
Individual Within 1
2,655,000.00
No.4 Un-related party year 1.49% 0
Individual Within 1
1,780,000.00
No.5 Un-related party year 1.00% 0
Total 16,227,707.66 9.11%
Note：
The closing balance of account receivables is 158,963,445.82(yuan) in June 30, 2016.An increase of .An increase of 41.25%
compared with opening balance.The main reason is due to increased accounts for projects.
4.Prepayments
(1) Aging analysis
Currency： yuan
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 45,512,659.34 100.00% 20,002,413.22 87.15%
1-2 years 2,949,204.73 12.85%
Over 3 years 761.45 0.00% 761.45 0.00%
Total 45,513,420.79 100% 22,952,379.40 100%
（2）Top 5 entities with the largest balances of prepayments
Currency： yuan
Relationship
Name of Proporti
with the Amount(yuan) Timing Reasons for unsettlement
entities on (%)
Group
Individual Un-related Within 1
9,000,000.00 19.77% Unsettled
No.1 party year
Did not handle the settlement
Un-related Within 1
Individual 5,788,995.24 12.72% and materials warehousing
party year
No.2 procedures
Individual Un-related Within 1 Did not handle the settlement
3,450,693.43 7.58%
No.3 party year and materials warehousing
68
procedures
Did not handle the settlement
Un-related Within 1
Individual 2,918,549.58 6.41% and materials warehousing
party year
No.4 procedures
Did not handle the settlement
Un-related Within 1
Individual 2,546,696.75 5.60% and materials warehousing
party year
No.5 procedures
合计 23,704,935.00 52.08%
Note：
The closing balance of prepayments is 45,513,420.79(Yuan).An increase of 98.30% compared with opening balance.The main
reason is due to increased prepaid for project and material.
5.Dividend receivables
（1）dividend receivable
Currency： yuan
Item(Or name of investee) Closing balance Opening balance
Yunnan KunPeng Flight service Co.,
1,052,192.76 1,052,192.76
Ltd
Total 1,052,192.76 1,052,192.76
（2）Dividends receivable aging over 1year
Currency：yuan
Whether the amount
Item(Or name of Reasons for is impaired
Closing balance Aging
investee) uncollected amounts and the base of
judgment
Yunnan KunPeng
Flight service Co., 1,052,192.76 3-4 年 Delay to pay No
Ltd
Total 1,052,192.76 -- -- --
6.Other receivables
（1） Other receivables by categories
Currency： yuan
Closing balance Opening balance
Bad debt Carrying
Carrying amount Bad debt provision
Category provision Book amount Book
value Amou value
Amount (%) Amount (%) (%) Amount (%)
nt
Other receivables
of which
162,68
provision for bad 153,268 152,929 339,302 157,552, 5,135,646
62.03% 99.78% 7,688. 65.17% 96.84%
debts is of ,970.17 ,667.19 .98 042.76 .12
88
individually
significant
Other receivables
of which
86,943
provision for bad 93,821, 30,803, 63,017, 30,406,1 56,537,69
37.97% 32.83% ,815.9 34.83% 34.97%
debts is of 801.63 897.38 904.25 18.69 7.30
9
individually
insignificant
247,090 183,733 63,357, 249,63 100.00 187,958, 61,673,34
Total 100% 74.36% 75.29%
,771.80 ,564.57 207.23 1,504. % 161.45 3.42
69
87
Bad debt provision of other receivables which is of individually significant
Currency： yuan
Closing balance
Content of accounts
Proportion of Reasons for the
receivable Other receivables Amount of bad debt
provision provision
A separate provision
Other receivables due is established
from subsidiaries that according to the
are not included in 129,109,401.68 129,109,401.68 100.00% recoverability of each
the consolidated receivables with long
financial statements aging and little
retrievability.
A separate provision
is established
according to the
Others 24,159,568.49 23,820,265.51 98.60% recoverability of each
receivables with long
aging and little
retrievability.
Total 153,268,970.17 152,929,667.19 99.78% --
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00；the amount of the reversed or
collected part during the reporting period was of RMB4,800,000.00.
Including the significant part of he amount of the reversed or collected part during the reporting period ：
Currency： yuan
Amount of the reversed or The means of reversed or
Name of entity
collected part collected
Luofu Hill Travelling Corporation 4,800,000.00 By meas of monetary fund
Total 4,800,000.00 --
Note :
The company cooperated with Luofu Hill Tourism Company on Luofu Hill Tourism project in early years.The company
instituted legal proceedings against Tourism Company because the Tourism Company failed to carry out the contract which is
return of investment funds for many years.According to the operating conditions of the time,the company has made provision
for investment fund 50% of bad debts for 4.8 million yuan.In the case of Luofu Hill Tourism Company had repeated breach of
the contract.The company has filed a lawsuit to the intermediate people's Court of Huizhou City in April 17, 2006.The lawsuit
has lasted for ten years.Signed the in April 21, 2016.According to the
agreement,Luofu Hill Tourism Company has deposit the liquidated damages to the designated account.So far the case has been
processed end.
（3）No any other receivables that have been actual write-off in reporting period.
（4）Details of the other receivables displayed by nature
Currency： yuan
Nature of the other receivables Closing balance Beginning balance
The other receivable from
130,433,537.72 130,433,537.72
subsidiaries not consolidated
Other 116,657,234.08 119,197,967.15
Total 247,090,771.80 249,631,504.87
（5）Top 5 entities with the largest balances of other receivables
Currency： yuan
Name of entity Relationship with Amount Age Proportion of the Provision for bad
70
the Group amount to the debt at year end
total OR (%)
Canada Great
Subsidiaries not
Wall( Vancouver) 89,035,748.07 Above 3 years 36.03% 89,035,748.07
consolidated
Co.,Ltd *
Bekaton property Subsidiaries not
12,559,290.58 Above 3 years 5.08% 12,559,290.58
Limited * consolidated
Subsidiaries not
Paklid Limited * 18,997,984.22 Above 3 years 7.69% 18,997,984.22
consolidated
Guangdong
province Huizhou
Luofu Hill Others 10,465,168.81 Above 3 years 4.24% 10,465,168.81
Mineral Water
Co.,Ltd
Xi’an New peak
property and Joint venture 8,419,205.19 Above 3 years 3.41% 8,419,205.19
trading company
Total -- 139,477,396.87 -- 56.45% 139,477,396.87
7.Inventory
(1)Categories of inventory
Currency： yuan
Closing balance Opening balance
Item Carrying Provision for Net carrying Carrying Provision for Net carrying
amount inventories amount amount inventories amount
Raw materials 325,036.58 325,036.58 525,723.92 525,723.92
Finished
877,739.69 278,891.91 598,847.78 673,786.32 278,891.91 394,894.41
products
Real estate
670,319,570.8 670,319,570.8 545,991,041.3 545,991,041.3
developing
3 3 2 2
products
Real estate
1,088,352,944. 1,079,396,457. 1,391,791,237. 1,378,799,885.
developed 8,956,487.12 12,991,351.75
39 27 50 75
products
Real estate
which are 159,653,497.7 159,653,497.7 159,653,497.7 159,653,497.7
going to be 5 5 5 5
developed
Construction in 121,387,673.9 121,387,673.9
60,858,852.46 60,858,852.46
progress 2 2
2,040,916,463. 2,031,681,084. 2,159,494,139. 2,146,223,895.
Total 9,235,379.03 13,270,243.66
16 13 27 61
(2)Detail of developing real estate products
Currency： yuan
Item Starting Estimated Closing balance Opening
time total balance
investment
（ million
yuan）
Chuanqi Tianju Building Year 446.00 107,643,144.59 97,301,146.79
71
2016
Jingtian Tianju Year 200.00 49,285,247.15
53,524,102.57
international Apartment 2015
Shengfang Cuilin Year 500.00 147,515,288.9
179,892,884.31
Building 2015 8
ShanTou Fresh Peak 24,396,781.61
24,576,738.38
Building
Phase one of Tianyue Year 787.30 227,492,576.7
304,682,700.98
harbor 2015 9
Total 545,991,041.3
670,319,570.83
2
（3）Developed real estate products
Currency： yuan
Name of project Finished Opening Additions Reductions Closing balance
time balance
Jinye Island Year 1997 38,933,768.09 0 0 38,933,768.09
Multi-tier villa
Phase six of Jinye Year 2007 2,961,996.22 0 0 2,961,996.22
Island villa
Phase ten of Jinye Year 2010 23,598,779.44 0 2,291,961.63
21,306,817.81
Island villa
Phase eleven of Year 2008 13,078,603.54 0 699,788.89
12,378,814.65
Jinye Island villa
Shantou Yuejing Year 2014 95,018,036.91 0 16,434,141.81
78,583,895.10
Dongfang
Wenjing Garden 3,818,939.87 0 0 3,818,939.87
Real Estate building 11,025,444.77 0 0 11,025,444.77
HuaFeng Building 1,631,743.64 0 0 1,631,743.64
HuangPuXinChun 289,802.88 0 0 289,802.88
XingHu Garden 156,848.69 0 0
156,848.69
Multi-tier
Shenfang Year 2013 727,220,152.74 0 169,993,504.4
557,226,648.28
Chuanqishan 6
Shenfang Shanglin Year 2014 473,752,563.66 0 114,018,896.3
359,733,667.34
Garden 2
BeiJing Fresh Peak 304,557.05 0 0
304,557.05
Buliding
Total 1,391,791,237.5 0 303,438,293.1
1,088,352,944.39
0 1
(4)Real estate which are going to be developed
Name of project Opening Additions Reductions Closing
balance balance
Phase two of Tianyue 159,653,497.75 0 0 159,653,497.7
harbor （ Shantou 5
Jingzaiwan）
Total 159,653,497.75 0 0 159,653,497.7
5
（5）Movement of Provision of inventories
72
Currency： yuan
Increase Decrease
Opening Closing
Item Reversals or
balance Accrual Others Others balance
Write-off
Finished
278,891.91 278,891.91
products
Real estate
developed 12,991,351.75 4,034,864.63 8,956,487.12
products
Total 13,270,243.66 4,034,864.63 9,235,379.03
（6）The illustration of capitalized borrowing cost in closing balance of inventory.
Capitalized borrowing cost in closing balance of inventory at year end is RMB52,892,792.40 .
Note：
As of June 30, 2016，Book value of 7,492,175.18 yuan inventory has been used in long-term loans mortgage(including
long-term loans due in 1 year).See notes 7.23
8.Other current assets
Currency： yuan
Item Closing balance Opening balance
Value added tax 7,696,941.78 4,747,581.57
Business tax 32,710,389.33 12,721,511.78
City construction surcharge 2,647,261.14 991,440.88
Education surcharge 1,066,550.09 300,938.18
Local education surcharge 698,446.33 214,188.54
Embankment Protection Fee 55,749.43 5,737.34
Land appreciation tax 23,242,070.29 18,334,432.77
Financial Products of Trust 3,000,000.00
Income tax 1,404,997.31
Total 69,522,405.70 40,315,831.06
Note：
The closing balance of monetary fund is 69,522,405.70Yuan.An increase of 72.44% compared with opening balance.The main
reason is due to increased prepaid taxes.
9.Available-for-sale financial assets
(1)Details of available-for-sale financial assets
Currency： yuan
Closing balance Opening balance
Item Book
Impairment Book value Book balance Impairment Book value
balance
Available-for-sale 17,464,240.7 17,464,240.7 17,464,240.7
17,464,240.74
equity instrument ： 4 4 4
Including ： Measured 17,464,240.7 17,464,240.7 17,464,240.7
17,464,240.74
by fair value 4 4 4
17,464,240.7 17,464,240.7 17,464,240.7
Total 17,464,240.74
4 4 4
(2)Available-for-sale financial assets measured by cost at year end
Currency： yuan
73
Book balance Provision for impairment Proportio
Curr.
n rate in
Investee Opening Decre Closing Opening Closing year cash
Increase. increase decrease investee
bal. ase bal. bal bal. div.
（%）
Shantou
Small
&Medium
12,000,0 12,000,0 689,000.
Enterprises 10.00%
00.00 00.00 00
Financing
Guarantee
Co., Ltd
Yunnan
KunPeng 5,464,24 5,464,24
25.00%
Flight service 0.74 0.74
Co.,Ltd
17,464,2 17,464,2 689,000.
Total --
40.74 40.74 00
10.Long-term equity investments
Currency： yuan
Change amount of this year
Profit and
loss on Other Closing
Cash
Invested Additi Negativ investment compre balance
Opening Other bonus or Closing
compan onal e s hensive impairment of
balance equity profits Other balance
y invest investm confirmed income provision impairment
change announce
ment ent with adjust provision
d to issue
equity ment
method
I. Joint ventures
Guangd
ong
province
Huizhou
9,969,20 9,969,20
Luofu 9,969,206.09
6.09 6.09
Hill
Mineral
Water
Co.,Ltd
Fengkai
9,455,46 9,455,46
Xinhua 9,455,465.38
5.38 5.38
Hotel
Jiangme
n
Xinjiang 9,037,07 9,037,07
912,537.16
Real 0.89 0.89
Estate
Co., Ltd
Xi ’ an
32,840,7 32,840,7
Fresh 20,673,831.77
29.61 29.61
Peak
74
Property
Trading
Co., Ltd
Dongyi
Real 30,376,0 30,376,0
21,225,715.87
Estate 84.89 84.89
Co., Ltd
91,678,5 91,678,5
Subtotal 62,236,756.27
56.86 56.86
II.Associate
Shenzhen
Ronghua 1,410, -63,790. 1,347,13
1,076,954.64
JiDian 924.77 59 4.18
Co.,ltd
Shenzhen
Runhua
1,445, 1,445,42
Automobi 1,445,425.56
425.56 5.56
le trading
Co.,Ltd
2,856, -63,790. 2,792,55
Subtotal 2,522,380.20
350.33 59 9.74
94,534
-63,790. 94,471,1
Total ,907.1 64,759,136.47
59 16.60
9
Ⅲ.Other long-term equity investment
Currency： yuan
Invested company Opening balance Change in period Closing balance Closing balance of
Impairment provision
Shenzhen Shen Fang 4,500,000.00 4,500,000.00 4,500,000.00
Industrial
Development Co., Ltd
Shenzhen ZhongGang 12,940,900.00 12,940,900.00 12,940,900.00
Haiyan Enterprise Ltd
Shenzhen Real Estate 5,958,305.26 5,958,305.26 5,958,305.26
Consolidated Service
Co., Ltd.
Paklid Limited 201,100.00 201,100.00 201,100.00
Bekaton Property 906,630.00 906,630.00 906,630.00
Shenzhen Tefa Real 8,180,003.63 8,180,003.63 8,180,003.63
Estate Consolidated
Service Co., Ltd
Shenzhen Xin 18,500,000.00 18,500,000.00 18,500,000.00
Dongfang Store Ltd
Shenzhen City 2,680,000.00 2,680,000.00 2,680,000.00
75
Shenfang
Construction and
Decoration Materials
Ltd
Shenzhen Shenfang 10,000,000.00 10,000,000.00 10,000,000.00
Department Store Co.
Ltd
Shenzhen CyberPort 7,613,507.96 7,613,507.96 --
Co., Ltd
Shenzhen City SPG 20,379,525.68 20,379,525.68 --
Bao An Development
Ltd.
Shantou xinfeng 58,547,652.25 58,547,652.25 58,547,652.25
building
Guangdong Province 56,228,381.64 56,228,381.64 56,228,381.64
Fengkai Lian Feng
Cement
Manufacturing Co.,
Ltd
Total 203,636,006.42 203,636,006.42 178,642,972.78
11. Investment properties
Investment properties measured at cost.
Currency： yuan
Item House& building Land-use right Construction in progress Total
Ⅰ.Original carrying
value
1.Opening balance 757,560,363.04 99,803,519.73 857,363,882.77
2.Increase in the year 2,740,550.70 2,740,550.70
（1）Outsourcing
（2）Carried over
from inventory,fix
asset,construction in
progress
（3）Increase of
corporate
combination
3.Decrease in the
year
（1）Disposal
（2）Other write
down
4.Closing balance 757,560,363.04 102,544,070.43 860,104,433.47
Ⅱ.Accumulative
depreciation&
amortization
76
1.Opening balance 326,263,368.42 326,263,368.42
2.Increase in the year 10,272,819.00 10,272,819.00
（1）accrued or
10,272,819.00 10,272,819.00
amortization
3.Decrease in the
year
（1）Disposal
（2）Other write
down
4. Closing balance 336,536,187.42 336,536,187.42
Ⅲ.Provision for
impairment
1.Opening balance 14,128,544.62 81,913,405.53 96,041,950.15
2.Increase in the year 2,249,297.83 2,249,297.83
（1）accrued
3.Decrease in the
year
（1）Disposal
（2）Other write
down
4.Closing balance 14,128,544.62 84,162,703.36 98,291,247.98
Ⅳ.Book value
1.Closing book value 406,895,631.00 18,381,367.07 425,276,998.07
2.Opening book
417,168,450.00 17,890,114.20 435,058,564.20
value
Note:
① Current period depreciation and amortization is RMB10,272,819.00.
②The decrease of original carrying value and provision for impairment of land-use right is caused by the fluctuation of foreign
exchange rate when translating the foreign currency financial statements;
③Among the investment properties, there were house &building with carrying value RMB368,381,573.15 that were used as
mortgage of long-term loans(including the long-term loans that will mature within one year), referring to note 7.44 for details.
12.Fixed assets
Currency： yuan
Transportation Electronic equipment
Item Houses& Buildings Total
equipment and others
Ⅰ.Original carrying
value
1.Opening balance 107,110,751.42 17,264,767.82 14,228,328.28 138,603,847.52
2. Increase in the
360,224.96 576,320.70 936,545.66
year
（1）Purchasing 360,224.96 576,320.70 936,545.66
（2）Transferred
from the construction
in progress
（3）Increase of
corporate
77
combination
3. Decrease in the
58,331.89 58,331.89
year
（1）Disposal or
58,331.89 58,331.89
discard as useless
4. Closing balance 107,110,751.42 17,624,992.78 14,746,317.09 139,482,061.29
Ⅱ.Accumulated
depreciation
1.Opening balance 63,435,651.90 11,865,140.43 11,089,069.88 86,389,862.21
2. Increase in the
2,531,478.89 1,020,523.42 580,472.35 4,132,474.66
year
（1）accrued 2,531,478.89 1,020,523.42 580,472.35 4,132,474.66
3. Decrease in the
54,903.90 54,903.90
year
（1）Disposal or
54,903.90 54,903.90
discard as useless
4. Closing balance 65,967,130.79 12,885,663.85 11,614,638.33 90,467,432.97
Ⅲ .Provision for
Impairment
1.Opening balance
2. Increase in the
year
（1）accrued
3. Decrease in the
year
（1）Disposal or
discard as useless
4. Closing balance
Ⅳ.Book value
1.Closing value 41,143,620.63 4,739,328.93 3,429,176.16 49,014,628.32
2.Opening Value 43,675,099.52 5,399,627.39 3,139,258.40 52,213,985.31
Note:
The depreciation for the current year is RMB 4,132,474.66 There were no constructions in progress transferred to fixed assets
during the period.
As of 30 Jun 2016, amounting to RMB21,236,886.33of houses& buildings were used as mortgage for the long-term loans
(including long-term loans that would mature within one year). Refer to Note 7.44).
13.Intangible assets
Currency： yuan
Non-Patents
项目 Land Use Rights Patent Right Taxi license Total
Right
Ⅰ.Carrying value
1. Opening
6,368,000.00 2,241,800.00 8,609,800.00
balance
2.Increase in
78
the year
（1）Purchased
（2）Internally
developed
（3）Increase of
corporate
combination
3. Decrease in the
year
（1）Disposal
4.Closing balance 6,368,000.00 2,241,800.00 8,609,800.00
Ⅱ.Accumulated
amortization
1.Opening
1,606,746.83 1,348,233.17 2,954,980.00
balance
2. Increase in the
170,580.00 83,790.00 254,370.00
year
（1）accrued
3. Decrease in the
year
（1）Disposal
4. Closing
1,777,326.83 1,432,023.17 3,208,350.00
balance
Ⅲ .Provision for
Impairment
1.Opening
balance
2. Increase
in the year
（1）
accrued
3. Decrease
in the year
（1）Disposal
4.Closing
balance
Ⅳ.Book value
1.Closing
4,590,673.17 809,776.83 5,400,450.00
value
2.Opening
4,761,253.17 893,566.83 5,654,820.00
Value
15.Long-term Prepaid Expenses
Currency： yuan
Item Opening balance Increase Amortization Other reductions Reason for other
79
reductions
Renovation costs 391,691.74 400,905.06 121,605.53 670,991.27
Others 5,916.90 5,916.90 0.00
Total 397,608.64 400,905.06 127,522.43 670,991.27
Note:
.Long-term Prepaid Expenses
The closing balance of long-term Prepaid Expenses is 1670,991.27Yuan.An increase of 68.76% compared with opening
balance.The main reason is due to increased office decoration fee.
15.Deferred tax asset and deferred tax liability
（1） Deferred tax assets that are presented at the net amount after offset and correspondingly deductible or
taxable temporary differences
Currency： yuan
Closing balance Opening balance
Item Deductible or taxable Deductible or taxable
Deferred tax assets Deferred tax assets
temporary differences temporary differences
Provision for
impairment losses of 9,013,961.84 2,253,490.46 12,991,351.75 3,247,837.94
assets
Eliminated unrealized
profit when
2,720,518.78 680,129.70
consolidating
financial statement
Deductible loss 22,066,819.40 5,516,704.85 22,066,819.40 5,516,704.85
Expected profit for
advances received 35,692,801.56 8,923,200.39 35,750,276.24 8,937,569.06
from customers
Provision for
settlement of land 55,260,506.64 13,815,126.66 55,260,506.64 13,815,126.66
appreciation tax
Total 122,034,089.44 30,508,522.36 128,789,472.81 32,197,368.21
（2） Details of offsetting deferred tax assets and deferred tax liabilitie
Currency： yuan
Closing amount Opening amount
which offset amount Closing amount of which offset amount Opening amount
Item of deferred deferred tax assets or of deferred deferred tax assets or
tax assets and liabilities tax assets and liabilities
liabilities liabilities
Deferred tax assets 30,508,522.36 32,197,368.21
（3） (2)Details of unrecognized deferred tax assets
Currency： yuan
Item Closing balance Opening balance
Deductible operating losses 3,374,340.71 3,374,340.71
Bad debt provision 49,490,244.69 49,490,244.69
Provision for decline in value of
69,722.98 69,722.98
inventories
Provision for impairment of
60,850,527.31 60,850,527.31
long-term investments
Provision for impairment of
22,895,326.66 22,895,326.66
investment properties
Total 136,680,162.35 136,680,162.35
80
（4） Deductible losses for which no deferred tax assets are recognized will expire in the following years.
Currency： yuan
Year Closing balance Opening balance Notes
2016 1,008,640.93 1,008,640.93
2017 138,864.68 138,864.68
2018 1,665,661.89 1,665,661.89
2019 124,125.69 124,125.69
2020 17,615,495.00 17,615,495.00
2021
Total 20,552,788.19 20,552,788.19 --
16.Short-term loans
（1）The detail of short-term loan by type
Currency： yuan
Item Closing balance Opening balance
Pledged Loan 100,284,378.21 118,418,286.29
Credit Loan 22,000,000.00 25,000,000.00
Total 122,284,378.21 143,418,286.29
Note：
Pledge loan see noteⅦ.2andⅦ.23
17. Accounts payable
Details of accounts payable
Currency： yuan
Item Closing balance Opening balance
Within 1 year 18,059,433.29 23,462,580.29
Over 1 year 164,365,494.74 266,990,530.21
Total 182,424,928.03 290,453,110.50
Note：
Significant accounts payable aged more than one year is for the unsettled project at the end of the period.
The closing balance of accounts payable is182,424,928.03Yuan.An increase of 37.19% compared with opening balance.The
main reason is due to increased payment of the due Settlement of completed product development.
18.Advance received from Customers
（1）Details of advances received from customers
Currency： yuan
Item Closing balance Opening balance
Within one year 845,213,368.57 469,766,020.08
Over one year 8,717,575.00 5,854,327.27
Total 853,930,943.57 475,620,347.35
（2）Detail of advances received from customers aged more than one year
Currency： yuan
Reason of not yet repaid or
Item Closing balance
transferred into income
advanced received from housing Unconditioned to transferred into
8,717,575.00
buyers income
Note：
Significant advances from customers aged more than one year is the advanced received from housing buyers, as such receipts
have not been transferred into income at the end of the period.
The closing balance of advance received from Customers is 853,930,943.57Yuan.An increase of 79.54% compared with opening
balance.The main reason is due to increased collect in advance from selling house and construction cost.
19.Employee benefits payable
81
(1)Details of employee benefits payable
Currency： yuan
Item Opening balance Increase Decrease Closing balance
Ⅰ.Short-term
37,472,374.35 63,256,023.05 64,843,021.58 35,885,375.82
remuneration
Ⅱ .Post-employment-
Defined contribution 1,277,645.37 7,456,462.40 7,479,281.72 1,254,826.05
plans payable
Total 38,750,019.72 70,712,485.45 72,322,303.30 37,140,201.87
(2)Details of short-term remuneration
Currency： yuan
Item Opening balance Increase Decrease Closing balance
1.Salary, bonus,
allowance and 35,629,727.54 55,382,825.14 56,958,012.39 34,054,540.29
subsidies
2.Employee welfare 1,877,563.00 1,877,563.00
3.Social insurance
1,094,679.31 1,962,385.40 1,961,602.60 1,095,462.11
premium
Including: Medical
1,093,804.76 1,731,384.80 1,730,520.80 1,094,668.76
insurance insurance
Employment injury
672.12 62,735.24 62,735.24 672.12
insurance
Maternity
202.43 168,265.36 168,346.56 121.23
insurance
4.Housing fund 699,806.64 2,889,576.48 2,892,742.08 44,995.26
5.Labor union fees&
Employee 48,160.86 1,143,673.03 1,153,101.51 690,378.16
education fees
Total 37,472,374.35 63,256,023.05 64,843,021.58 35,885,375.82
（3） Defined contribution plans payable
Currency： yuan
Item Opening balance Increase Decrease Closing balance
1.Basic endowment
1,250,798.81 4,521,486.64 4,520,286.64 1,251,998.81
insurance
2.Unemployment
114.92 159,487.48 159,406.28 196.12
insurance
3.Company annuity
26,731.64 2,775,488.28 2,799,588.80 2,631.12
payment
Total 1,277,645.37 7,456,462.40 7,479,281.72 1,254,826.05
20.Taxes payable
Currency： yuan
Item Closing balance Opening balance
VAT 377,107.82
Business tax 622,001.65 2,066,816.91
Corporate income tax 45,027,212.68 52,363,258.82
Individual income tax 918,243.88 923,572.01
City construction and maintenance
51,294.43 106,889.20
tax
Property tax 1,688,886.04 1,715,996.96
Land appreciation tax 6,373,750.90 5,708,711.22
82
Education surcharge 32,803.59 72,990.50
Others 1,958,932.15 501,179.80
Total 57,050,233.14 63,459,415.42
21、 Interest payable
Currency： yuan
Item Closing balance Opening balance
Interest of long-term loans with
interest payable by installments and 1,000,000.00
principle payable on maturity
Others 16,535,277.94 16,535,277.94
Total 16,535,277.94 17,535,277.94
Note: The balance of “Other” refers to the interest payable to Shenzhen Investment Holdings Co.，Ltd., being accrued for the
loans. Please refer refer to note 10.6 (2).
22.Other payables
(1)Details of other payables
Currency： yuan
Item Closing balance Opening balance
Land appreciation tax accrued 144,848,928.01 146,838,995.86
Payable to related parties 63,340,761.01 63,340,761.01
Deposit 81,894,330.63 82,194,532.63
Others 101,509,892.30 93,437,014.83
Total 391,593,911.95 385,811,304.33
（2）Description of significant other payables aged more than one year
Currency： yuan
Reason of not yet repaid or
Name of entity Amount
transferred into income
Tax accrued- land appreciation tax 43,347,446.23 Unsettled
Shenzhen Investment Holdings Co.，
28,848,819.24 Unsettled
Ltd.
Total 72,196,265.47 --
Note:
The Group made provision for LAT, according to Guo Shui Fa [2006] No. 187 "LAT liquidation management issues of real
estate development enterprises made by the State Administration of Taxation ". As at Jun 30, 2016, the closing balance is RMB
144,848,928.01.
23.Non-current liability due in 1 year
Currency： yuan
Item Closing balance Opening balance
Long-term loans due in one year 144,239,634.08 168,727,608.54
Total 144,239,634.08 168,727,608.54
24. Long-term loans
(1)Long-term loans categories
Currency： yuan
Item Closing balance Opening balance
Loan with mortgage 325,399,708.82 382,233,324.88
Total 325,399,708.82 382,233,324.88
Other note，including the range of interest rate：
Top 5 significant long-term loans(including non-current liability due in 1 year) Currency： yuan
Lender The inception Maturity Currenc Closing balance Opening balance
of loans date y
83
Chinese Mercantile 2015.4.1 2025.4.1 RMB
Bank Shenzhen 160,000,000 180,000,000
Branch
China Zheshang 2013.8.23 2018.8.16 RMB
Bank Shenzhen 83,000,000 73,000,000
Branch
Shenzhen Rural 2014.11.27 2019.11.27 RMB 82,000,000
Commercial Bank 94,000,000
Shenzhen Rural 2013.8.29 2018.8.29 RMB
Commercial Bank 72,600,000 79,200,000
Beijing Bank 2014.12.9 2017.12.9 RMB
35,000,000
Shenzhen Branch 30,000,000
Total 432,600,000 456,200,000
Note: The rates of above loans depend on the benchmark interest rate of the People's Bank of China for the
same period adding a certain floating proportion of the benchmark interest rate.
25.Long-term payables
（1）Details of long-term payables
Currency： yuan
Item Closing balance Opening balance
Maintenance fund 10,438,655.14 10,480,629.35
Total 10,438,655.14 10,480,629.35
26.Share capital
Currency： yuan
Changes for the period（+ 、-）
Newly
Item Opening balance Bonus Surplus Closing balance
issued Other Subtotal
issue converted
shares
1,011,660,000.0 1,011,660,000.0
Total shares
0 0
27.Capital surplus
Currency： yuan
Item Opening balance Increase Decrease Closing balance
Capital premium 557,433,036.93 557,433,036.93
Other capital reserve 420,811,873.18 420,811,873.18
Total 978,244,910.11 978,244,910.11
28.Other comprehensive income
Currency： yuan
Amount incurred this year
Less:
previous
Accrual Attributable Attributable
Opening years‘ OCI Less: Closing
Item before to parent to minority
balance transferred income balance
income tax company shareholde
to P&L in tax
this year after tax rs after tax
current.
period
Ⅰ.Other comprehensive income
10,063,591. -2,241,980. -1,569,386. -672,594. 8,494,205.
that would be classified into
61 77 54 23 07
profit and loss in the future
including：the difference 10,063,591. -2,241,980. -1,569,386. -672,594. 8,494,205.
of foreign currency financial 61 77 54 23 07
84
statement translation
10,063,591. -2,241,980. -1,569,386. -672,594. 8,494,205.
Total
61 77 54 23 07
29.Surplus reserve
Currency： yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus
40,823,841.35 40,823,841.35
reserve
Total 40,823,841.35 40,823,841.35
30.Undistributed profit
Currency： yuan
Item Amount for the current period Amount for the prior period
Before adjustment: Undistributed profits at
290,911,773.00 157,147,182.36
the end of prior year
After adjustment: Undistributed profits at
290,911,773.00 157,147,182.36
beginning of year
Plus: net profit attributable to the
shareholders of the parent company in the 134,761,121.51 186,407,824.38
period
Less: Appropriation to the statutory surplus
37,200,223.52
reserve
Undistributed profit at the end of the period 425,672,894.51 306,354,783.22
31.Operating income and costs
(1)Operating income and operating costs
Currency： yuan
Amount for the current period Amount for the prior period
Item
Operating income Operating costs Operating income Operating costs
Main operating
1,082,674,647.12 806,066,310.73 1,136,260,495.32 688,386,890.94
business income
Other operating
15,212,322.56 9,960,933.38 11,292,278.64 9,258,985.21
business income
Total 1,097,886,969.68 816,027,244.11 1,147,552,773.96 697,645,876.15
(2)Principal operating activities (classified by industries)
Currency： yuan \
Amount for the current period Amount for the prior period
Name of industry
Operating income Operating costs Operating income Operating costs
Real estate 531,354,186.00
302,088,298.98 778,325,116.00 373,731,699.64
Construction 472,256,586.11
450,003,730.35 288,560,669.29 274,146,245.43
Leasing 39,640,195.52
17,884,231.72 40,340,045.53 15,684,513.28
Property
54,794,063.91 53,788,728.05 49,335,954.47
management 50,959,546.17
Subtotal 1,098,045,031.54 1,161,014,558.87 712,898,412.82
820,935,807.22
Less: offset the
15,370,384.42 24,754,063.55 24,511,521.88
internal amount 14,869,496.49
85
Amount for the current period Amount for the prior period
Name of industry
Operating income Operating costs Operating income Operating costs
Total 1,082,674,647.12 806,066,310.73 1,136,260,495.32 688,386,890.94
(3) Principal operating activities (classified by geographical areas)
Currency： yuan
Name of Amount for the current period Amount for the prior period
geographical area Operating income Operating costs Operating income Operating costs
Domestic:
GuangDong
1,035,923,706.97 762,496,486.35 1,121,494,711.98 675,731,968.47
Province
Others 61,835,121.24 58,439,320.87 39,256,306.71 37,166,444.35
Overseas： 286,203.33 263,540.18 --
Subtotal 1,098,045,031.54 820,935,807.22 1,161,014,558.87 712,898,412.82
Less: offset the
15,370,384.42 14,869,496.49 24,754,063.55 24,511,521.88
internal amount
Total 1,082,674,647.12 806,066,310.73 1,136,260,495.32 688,386,890.94
（4）Operating income from the Company’s top 5 customers
Currency： yuan
Amount for the current period Amount for the prior period
Proportion to Proportion to
Total
Customer Total operating total operating Customer total operating
operating
name income income of the name income of the
income
Company (%) Company (%)
Corporation Corporation 10,723,075.4
15,951,238.36 1.45% 0.93%
unit No.1 unit No.1 2
Individual Individual 10,147,591.0
10,721,149.00 0.98% 0.88%
No.1 No.1 0
Individual Corporation
11,596,946.00 1.06% 8,765,196.00 0.76%
No.2 unit No.2
Individual Corporation
11,427,694.00 1.04% 7,970,000.00 0.69%
No.3 unit No.3
Individual Corporation
10,076,464.00 0.92% 7,776,000.00 0.68%
No.4 unit No.4
45,381,862.4
Total 59,773,491.36 5.44% Total 3.95%
2
32.Business taxes and surcharges
Currency： yuan
Item Amount for the current period Amount for the prior period
Business tax 44,633,179.90 52,611,770.88
City construction and maintenance
3,064,682.10 3,676,074.73
tax
Education surcharges 1,433,871.60 1,633,057.08
Property tax 3,067,735.56 3,147,535.56
Land appreciation tax 33,110,656.95 67,402,567.36
Local education surcharges 871,353.80 1,007,544.94
86
Embankment Protection Fee 186,729.80 133,784.09
Total 86,368,209.71 129,612,334.64
Note：
The amount of current business taxes and surcharges is 86,368,209.71 yuan.An decrease of 33.36% compared with prior
period.The main reason is due to decrease in real estate income.
33、Selling expenses
Currency： yuan
Item Amount for the current period Amount for the prior period
Employee benefits 1,949,636.81 2,185,633.42
Advertising expenses 873,616.00 859,282.31
Entertainment expenses 346,619.50 431,393.00
Sales agency fees and commissions 1,469,750.06 12,045,046.88
Others 468,119.06 1,724,821.14
Total 5,107,741.43 17,246,176.75
Note:
The amount of current selling expenses is 5,107,741.43yuan.An decrease of 70.38% compared with prior period.The main
reason is due to decreased sales agency fee and commission.
34. Administrative expenses
Currency： yuan
Item Amount for the current period Amount for the prior period
Employee benefits 13,493,611.11 16,438,072.85
Taxes 1,878,051.29 1,867,538.36
Depreciation 1,640,917.98 1,779,493.54
Entertainment expenses 1,234,043.90 1,503,771.42
Intermediary fee 1,606,081.53 1,408,255.95
Travel expense 268,286.15 294,564.16
Administrative expenses 611,089.04 624,088.54
Repair charge 394,372.96 353,534.20
Water and electricity charges 335,834.38 569,519.97
Other amortization 348,472.10 339,187.58
Others 5,146,571.33 3,527,957.33
Total 26,957,331.77 28,705,983.90
35 .Financial expenses
Currency： yuan
Item Amount for the current period Amount for the prior period
Interest expenses 26,540,177.38 33,090,502.72
Less: Interest income 18,885,542.00 6,925,211.14
Less: capitalized interest expenses 14,548,928.60 1,519,728.41
Exchange differences -334,107.73 6,742.52
Less: Capitalized exchange
differences
Others 180,247.31 303,626.16
Total -7,048,153.64 24,955,931.85
Note：
The amount of current financial expenses is -7,048,153.64Yuan.An decrease of 128.24% compared with prior period.The main
reason is due to that the interest capitalization has been started in new project.
36.Impairment losses of assets
Currency： yuan
Item Amount for the current period Amount for the prior period
87
Ⅰ.Bad debt loss -4,800,000.00 159,351.00
Total -4,800,000.00 159,351.00
Note：
The company cooperated with Luofu Hill Tourism Company on Luofu Hill Tourism project in early years.The company
instituted legal proceedings against Tourism Company because the Tourism Company failed to carry out the contract which is
return of investment funds for many years.According to the operating conditions of the time,the company has made provision
for investment fund 50% of bad debts for 4.8 million yuan.In the case of Luofu Hill Tourism Company had repeated breach of
the contract.The company has filed a lawsuit to the intermediate people's Court of Huizhou City in April 17, 2006.The lawsuit
has lasted for ten years.Signed the “implementation of the settlement agreement”in April 21, 2016.According to the
agreement,Luofu Hill Tourism Company has deposit the liquidated damages to the designated account.So far the case has been
processed end.Therefore, the provision for bad debts has reversed.
37.Investment income
Currency： yuan
Item Amount for the current period Amount for the prior period
Investment income from long-term
-63,790.59 -129,692.73
investments under cost method
Investment income from holding
689,000.00 350,000.00
trading financial assets
Total 625,209.41 220,307.27
Note：
The company has received 689,000 yuan cash dividends from Shantou SME Financing Guarantee Co., Ltd in current period.
38.Non-operating income
Currency： yuan
Amount included in
Amount for the current Amount for the prior
Item non-recurring profit or loss
period period
for the period
Gains on penalty 175,149.92 396,437.33 175,149.92
Others 5,038,308.02 65,267.79 5,038,308.02
Total 5,213,457.94 461,705.12 5,213,457.94
Note：
The amount of current non-operating income is 5,213,457.94Yuan.An increase of 71,029.17%compared with prior period.The
main reason is due to receive the litigation claims of lawsuit with Luofu Hill Tourism Company.
39.Non-operating expenses
Currency： yuan
Amount included in
Amount for the current Amount for the prior
Item non-recurring profit or loss
period period
for the period
Total losses on disposal of
2,647.50 10,037.32
non-current assets
Including: Losses on
2,647.50 10,037.32 2,647.50
disposal of fixed assets
Donations to third parties 19,500.00 44,000.00 19,500.00
Penalty expense
Compensation expense 6,115.17 50.00 6,115.17
Others 72,314.73 24,727.83 72,314.73
Total 100,577.40 78,815.15 100,577.40
40.Income tax expenses
(1)Details of income tax expenses
Currency： yuan
Item Amount for the current period Amount for the prior period
88
Current tax expense calculated
according to tax laws and relevant 47,293,403.64 68,703,538.14
requirements
Adjustments to deferred tax -1,008,716.16 -5,277,246.70
Total 46,284,687.48 63,426,291.44
（2）The process of calculating the income tax based on accounting profit
Currency： yuan
Item Incurred in the current year
Consolidated profit this year 181,012,686.25
Income tax calculated at legal or applicable tax rate 45,253,171.56
Impact of various tax rates applicable to subsidiaries 848,061.70
Impact of non-deductible cost, expense and loss 183,454.22
Income taxes 46,284,687.48
41.Other comprehensive income
Note: Please refer to note 28.
42.Notes to items in the cash flow statements
（1）Other cash receipts relating to operating activities
Currency： yuan
Item Amount for the current period Amount for the prior period
Interest income 11,295,056.29 3,702,703.58
Cash pledge and security deposits 10,370,363.90 13,400,587.78
Security deposit for mortgage 183,644.67 1,624,784.25
Others 22,920,758.68 24,232,913.05
Total 44,769,823.54 42,960,988.66
(2)Other cash payments relating to operating activities
Currency： yuan
Item Amount for the current period Amount for the prior period
Cash paid to general and
16,286,386.18 9,992,904.33
administrative expenses
Cash paid to operating expenses 3,080,233.10 16,924,176.59
Cash pledge and security deposits 10,701,125.01 15,151,522.32
Property license fee and survey fee 1,077,699.15 1,156,112.97
Others 5,927,462.18 19,045,444.59
Total 37,072,905.62 62,270,160.80
Note：
The amount of current other cash payments relating to operating activities is 37,072,905.62Yuan.An decrease of 40.46%
compared with prior period.The main reason is due to decreased fees paid cash sales,deposit, margin and other payment.
（3）Other cash receipts relating to financing activities
Currency： yuan
Item Amount for the current period Amount for the prior period
The guarantee deposit 2,785,000.00
Total 2,785,000.00
43.Supplementary information to the cash flow statement
(1)Supplementary information to the cash flow statement
Currency： yuan
Supplementary Item Amount for the current period Amount for the prior period
Ⅰ.Reconciliation of net profit to cash
-- --
flows from operating activities:
Net profit 134,727,998.77 186,404,025.47
89
Add：Provision for asset impairment -4,800,000.00 159,351.00
Depreciation of fixed assets,
13,626,249.37 13,952,957.67
bio-assets, and natural gas
Amortization of intangible assets 254,370.00 276,169.98
Amortization of long-term deferred
127,522.43 145,076.40
expense
Losses on disposal of fixed assets,
intangible assets and other long-term 9,932.32
assets(deduct: gains)
Losses on scrapping of fixed assets
1,934.79 105.00
(deduct: gains)
Financial expenses (deduct: gains) 18,699,884.75 28,205,431.12
Losses from investments (deduct:
-625,209.41 -220,307.27
gains)
Decrease in deferred tax assets
1,688,845.85 -5,277,246.70
(deduct: increase)）
Decrease in inventories (deduct:
298,465,327.85 342,132,988.01
increase)
Decrease in operating receivables
73,591,766.23 -152,329,521.97
(deduct: increase)
Increase in operating payables
-109,590,709.87 42,427,982.92
(deduct: decrease)
Net cash flows from operating
426,167,980.76 455,886,943.95
activities
Ⅱ.Investing and financing activities
that do not affect cash receipt and -- --
payment
Ⅲ .Net increase in cash and cash
-- --
equivalents:
Cash at the end of the period 1,496,687,318.92 966,629,585.33
Less: cash at the beginning of the
1,169,756,306.36 670,119,849.03
period
Net increase in cash and cash
326,931,012.56 296,509,736.30
equivalents
（2）Information of cash and cash equivalents
Currency： yuan
Item Amount for the current period Amount for the prior period
Ⅰ.Cash 1,496,687,318.92 1,169,756,306.36
Including: Cash on hand 48,194.52 54,487.37
Bank deposits 1,496,639,124.40 1,169,701,818.99
Ⅱ.Closing balance of cash and cash
1,496,687,318.92 1,169,756,306.36
equivalents
44.Ownership or use-right restricted assets
Currency： yuan
Item Closing balance The reasons for restriction
The minimum amount in the
Monetary fund 6,000,000.00 Company's rent escrow account for
the Company's borrowings.
Note receivables 18,153,767.30 mortgaged
Inventories 7,492,175.18 mortgaged
90
Fixed assets 21,236,886.33 mortgaged
Investment property 348,004,609.51 mortgaged
Account receivables 82,130,610.91 mortgaged
Total 483,018,049.23 --
45.The items of foreign currency
(1) Details of items of foreign currency
Currency： yuan
Closing balance of foreign Closing balance of RMB
Item Exchange rate
currency converted
Monetary fund
Including：USD 111,931.91 6.7023 750,196.72
HKD 10,433,775.15 0.8574 8,945,421.66
accounts receivable
HKD 4,905,150.10 0.8574 4,205,479.49
（2）The illustration of oversea operating entities，For the significant operating entities,Their should illustrate the significant
operating base,functional currency and its selecting base.If the functional currency has changed,illustrating the reason is needed.
The Group’s significant oversea operating entities are American Great Wall Co., Ltd and Fresh Peak Investment Co., Ltd.
American Great Wall Co., Ltd chooses the USD as the its functional currency, for its main operating activities are in the USA;
Fresh Peak Investment Co., Ltd. chooses the RMB as its functional currency, for it is a investment company and its main
operating activities are in the mainland of China.
Ⅷ.The changes of the scope of consolidation
There were no changes for the Group’s consolidation scope this year.
Ⅸ.Equities in other entities.
1.Equities in the subsidiaries
（1） The formation of the Group
Name of the Main operating Reg. Business Shareholding proportion（%） Method of
subsidiary area place nature Direct Indirect acquiring
Acquiring
Shenzhen
through
Petrel Hotel Shenzhen Shenzhen Services 68.10% 31.90%
establishment
Co. Ltd.
or investment
Shenzhen City Acquiring
Property through
Shenzhen Shenzhen Services 95.00% 5.00%
Management establishment
Ltd. or investment
Shenzhen Zhen Acquiring
Tung through
Shenzhen Shenzhen Services 73.00% 27.00%
Engineering establishment
Ltd. or investment
Shenzhen City
Acquiring
We Gen
through
Construction Shenzhen Shenzhen Services 75.00% 25.00%
establishment
Management
or investment
Ltd.
Acquiring
Shenzhen City through
Shenzhen Shenzhen Services 55.00% 45.00%
Car Rental Ltd. establishment
or investment
Shenzhen Shenzhen Shenzhen Services 70.00% 30.00% Acquiring
91
Shenfang Car through
Park Ltd establishment
or investment
Shenzhen City Acquiring
Shenfang through
Shenzhen Shenzhen Investment 90.00% 10.00%
Investment establishment
Ltd. or investment
Shenzhen City Acquiring
Shenfang Free Commecial through
Shenzhen Shenzhen 95.00% 5.00%
Trade Trading trade establishment
Ltd. or investment
Shenzhen City
Acquiring
SPG Long
through
Gang Shenzhen Shenzhen Real estate 95.00% 5.00%
establishment
Development
or investment
Ltd.
Shenzhen
Special
Economic Acquiring
Zone Real through
Guangzhou Guangzhou Real estate 100.00%
Estate (Group) establishment
Guangzhou or investment
Property and
Estate Co., Ltd.
Beijing fresh
peak property Acquiring
development through
Beijing Beijing Real estate 75.00% 25.00%
management establishment
limited or investment
company
Beijing SPG Acquiring
Property through
Beijing Beijing Services 10.00% 90.00%
Management establishment
Limited or investment
Shenzhen Acquiring
ShenWu through
Shenzhen Shenzhen Services 100.00%
Elebator establishment
Co.,Ltd or investment
Shenzhen Lain Acquiring
Hua Industry through
Shenzhen Shenzhen Services 95.00% 5.00%
and Trading establishment
Co. Ltd. or investment
Acquiring
Fresh Peak Investment and through
HongKong HongKong 100.00%
Holding Ltd. management establishment
or investment
Acquiring
Investment through
Wellam Ltd. HongKong HongKong 100.00%
holding establishment
or investment
92
Acquiring
Shantou SEZ
through
Wellam Fty ShanTou ShanTou Real estate 100.00%
establishment
Bldg., Dev. Co.
or investment
Acquiring
Shantou
through
Huafeng Estate ShanTou ShanTou Real estate 100.00%
establishment
Dev.Co
or investment
Acquiring
Great Wall through
USA USA Real estate 70.00%
Estate Co., Inc establishment
or investment
Acquiring
Fresh Peak Investment and through
HongKong HongKong 100.00%
Holdings Ltd. management establishment
or investment
Acquiring
Fresh Peak
Property through
Investment HongKong HongKong 55.00%
Investment establishment
Ltd.
or investment
Acquiring
Investment and through
Openice Ltd. HongKong HongKong 20.00% 80.00%
management establishment
or investment
Acquiring
Barenie Co. Property through
HongKong HongKong 80.00%
Ltd. Investment establishment
or investment
Acquiring
Keyear
through
Development HongKong HongKong Investment 100.00%
establishment
Ltd.
or investment
Guangzhou
Acquiring
Huangpu
through
Xizun real GuangZhou GuangZhou Real estate 100.00%
establishment
estate limited
or investment
company
Fresh Peak
Real Estate Acquiring
Dev. through
WuHan WuHan Real estate 100.00%
Construction establishment
(Wuhan) Co. or investment
Ltd.
Shantou
Subsidiary
Special
acquired
Economic
through
Zone Real Shantou Shantou Real estate 100.00%
emerge under
Estate (Group)
non-common
Songshan
control
Property and
93
Estate Co., Ltd.
Shenzhen
Acquiring
Shenfang
Commecial through
Department Shenzhen Shenzhen 95.00% 5.00%
trade establishment
Store Co. Ltd.*
or investment
①
Acquiring
Shenzhen
through
CyberPort Co., Shenzhen Shenzhen Consultant 70.00%
establishment
Ltd *②
or investment
Shenzhen City Acquiring
SPG Bao An through
Shenzhen Shenzhen Real estate 95.00% 5.00%
Development establishment
Ltd.* ③ or investment
Shenzhen Real
Acquiring
Estate
Integrated through
Consolidated Shenzhen Shenzhen 100.00%
Services establishment
Service Co.,
or investment
Ltd *④
Shenzhen Shen Acquiring
Fang Industrial through
Shenzhen Shenzhen Investment 100.00%
Development establishment
Co., Ltd.* ⑤ or investment
Shenzhen Tefa
Acquiring
Real Estate
through
Consolidated Shenzhen Shenzhen Services 100.00%
establishment
Service Co.,
or investment
Ltd.* ⑥
Acquiring
Bekaton
through
Property Australia Australia Real estate 60.00%
establishment
Limited *⑦
or investment
Canada Great Acquiring
Wall through
Canada Canada Real estate 60.00%
( Vancouver) * establishment
⑦ or investment
Acquiring
Paklid Limited Commecial through
HongKong HongKong 100.00%
*⑦ trade establishment
or investment
Shenzhen City
Shenfang Acquiring
Construction Commecial through
Shenzhen Shenzhen 100.00%
and Decoration trade establishment
Materials Ltd * or investment
⑧
Shenzhen Acquiring
ZhongGang Integrated through
Shenzhen Shenzhen 68.00%
Haiyan Services establishment
Enterprise Ltd. or investment
94
*⑨
Acquiring
Shenzhen Xing
Commecial through
Dongfang Shenzhen Shenzhen 100.00%
trade establishment
Store Ltd.* ⑩
or investment
Guangdong
Province Acquiring
Fengkai Lain Guangdongfen Guangdongfen through
Manufacture 90.00%
Feng Cement gkai gkai establishment
Manufacturing or investment
Co., Ltd *
The illustration the difference between the shareholding proportion and voting right in subsidiary.:
*① Shenzhen Shenfang Department Store Co. Ltd
The shareholders meeting held on 29 October 2007 passed the resolution to terminate business, liquidation and formed a group
to carry out the liquidation procedures. The liquidation group issued a notice of liquidation on 7 December 2007. According to
the principle of “Enterprise Accounting Standards No.33- the Consolidation Financial Statement”, the Store will not be
included in the Company’s consolidated financial statement. The book value of the investment account of the Company is zero.
*② Shenzhen CyberPort Co., Ltd
The shareholders meeting held on 12 May 2008 passed the resolution to terminate business, liquidation and formed a group to
carry out the liquidation procedures. The liquidation group issued a notice of liquidation on 5 December 2008. According to the
principle of “Enterprise Accounting Standards No.33- the Consolidation Financial Statement”, the corporation will not be
included in the Company’s consolidated financial statement. The book value of the investment account of the Company is zero.
*③ Shenzhen City SPG Bao An Development Ltd.
The shareholders meeting held on 18 September 2009 passed the resolution to terminate business, liquidation and formed a
group to carry out the liquidation procedures. According to the principle of “Enterprise Accounting Standards No.33- the
Consolidation Financial Statement”, the Store will not be included in the Company’s consolidated financial statements.
*④ Shenzhen Real Estate Consolidated Service Co., Ltd.
The operating period of this corporation is from 26 January 1983 to 28 August 1999. And this Company has ceased operations
for many years. And the corporation had been terminated its licenses by law on 8 February 2002 because of failing to take part
in annual inspection.
*⑤ Shenzhen Shen Fang Industrial Development Co., Ltd
The operating period of this corporation is from 3 October 1993 to 3 October 1998. And this Company has ceased operations for
many years. And the corporation had been terminated its licenses by law on 8 February 2002 because of failing to take part in
annual inspection.
*⑥ Shenzhen Tefa Real Estate Consolidated Service Co., Ltd
The operating period of this corporation is from 7 March 1983 to 10 April 1995. And this company has ceased operations for
many years. And the corporation had been terminated its licenses by law in 2004 because of failing to take part in annual
inspection.
*⑦ Bekaton Property Limited ,Canada Great Wall ( Vancouver)and Paklid Limited
These 3 subsidiaries were set up overseas in early times. The board of directors passed a resolution to terminate the
corporations’ business on Dec.13, 2000.
*⑧ Shenzhen City Shenfang Construction and Decoration Materials Ltd
The operating period of this corporation is from 1 January 1984 to 6 July 2004. And this company has ceased operations for
many years. And the corporation had been terminated its licenses by law on February 8, 2002 because of failing to take part in
annual inspection.
*⑨Shenzhen ZhongGang Haiyan Enterprise Ltd
The operating period of this corporation is from 16 October 1984 to 16 October 2004. And this company has ceased operations
for many years. And the corporation had been terminated its licenses by law in 1999 because of failing to take part in annual
inspection.
*⑩ Shenzhen Xin Dongfang Store Ltd
The operating period of this corporation is from 7 June 1983 to 7 June 1998. And this company has ceased operations for many
95
years. And the corporation had been terminated its licenses by law at 10 January 2001 because of failing to take part in annual
inspection.
* Guangdong Province Fengkai Lian Feng Cement Manufacturing Co., Ltd
The total assets (including tangible and intangible assets) of the corporation were auctioned for debt repayment at 22 January
2006. The Company's investment in the company's book value is zero.
Except for *①, *②, *③, the above subsidiaries which are not included the company’s consolidated financial statement had
ceased operations for many years. And the entities of the corporations didn’t exist. And the Company has no control over its
subsidiaries’ businesses. According to the principle of “Enterprise Accounting Standards No.33- the Consolidation Financial
Statement”, the corporation will not be included in the Company’s consolidated financial statement. The book value of the
investment account of the Company is zero. The following are the details.
Investee Accounting Investment Opening Changes Closing balance
Method cost balance
Shenzhen Shen Fang Industrial Cost 4,500,000.00 4,500,000.00 -- 4,500,000.00
Development Co., Ltd Method
Shenzhen ZhongGang Haiyan Cost 12,940,900.00 12,940,900.00 -- 12,940,900.00
Enterprise Ltd Method
Shenzhen Real Estate Consolidated Cost 5,958,305.26 5,958,305.26 -- 5,958,305.26
Service Co., Ltd Method
Paklid Limited Cost 201,100.00 201,100.00 -- 201,100.00
Method
Bekaton Property Limited Cost 906,630.00 906,630.00 -- 906,630.00
Method
Shenzhen Tefa Real Estate Cost 8,180,003.63 8,180,003.63 -- 8,180,003.63
Consolidated Service Co., Ltd Method
Shenzhen Xing Dongfang Store Ltd Cost 18,500,000.00 18,500,000.00 -- 18,500,000.00
Method
Shenzhen City Shenfang Construction Cost 2,680,000.00 2,680,000.00 -- 2,680,000.00
and Decoration Materials Ltd Method
Shenzhen Shenfang Department Store Cost 10,000,000.00 10,000,000.00 -- 10,000,000.00
Co. Ltd Method
Shenzhen CyberPort Co., Ltd Cost 14,000,000.00 7,613,507.96 -- 7,613,507.96
Method
Shenzhen City SPG Bao An Cost 20,000,000.00 20,379,525.68 -- 20,379,525.68
Development Ltd Method
Shantou Xinfeng Building Cost 68,731,560.43 58,547,652.25 -- 58,547,652.25
Method
Guangdong Province Fengkai Lain Cost 121,265,000.00 56,228,381.64 -- 56,228,381.64
Feng Cement Manufacturing Co., Ltd Method
Total 287,863,499.32 206,636,006.42 -- 206,636,006.42
(Continued)
Investee Provision for Increased current Current year cash Remarks
impairment year provision dividends
for impairment
Shenzhen Shen Fang Industrial 4,500,000.00 -- --
Development Co., Ltd
Shenzhen ZhongGang Haiyan 12,940,900.00 -- --
Enterprise Ltd
Shenzhen Real Estate Consolidated 5,958,305.26 -- --
Service Co., Ltd
96
Paklid Limited 201,100.00 -- --
Bekaton Property Limited 906,630.00 -- --
Shenzhen Tefa Real Estate 8,180,003.63 -- --
Consolidated Service Co., Ltd
Shenzhen Xing Dongfang Store Ltd 18,500,000.00 -- --
Shenzhen City Shenfang Construction 2,680,000.00 -- --
and Decoration Materials Ltd
Shenzhen Shenfang Department Store Co. 10,000,000.00 -- --
Ltd
Shenzhen CyberPort Co., Ltd -- -- --
Shenzhen City SPG Bao An -- -- --
Development Ltd
Sahntou Xinfeng Building 58,547,652.25 -- --
Guangdong Province Fengkai Lain 56,228,381.64 -- --
Feng Cement Manufacturing Co., Ltd
Total 178,642,972.78 -- --
（2）Significant non-wholly owned subsidiaries
Currency： yuan
Current year profit Current year
Minority interest
Minority interest and loss attributable dividends distributed
Name of subsidiary equity balance at the
share proportion (%) to minority interest to minority interest
end of the year
shareholders shareholders
Great Wall Estate
30.00% -33,122.74 -22,611,622.77
Co., Inc
Fresh Peak
45.00% -104,325,227.06
Investment Ltd
Barenie Co. Ltd. 20.00% -2,025,186.78
(3) The main financial information of significant non-wholly owned subsidiary
Currency： yuan
Closing balance Opening balance
Name
Non-cu Non-cu
of Non-cu Current Total Non-cu Current Total
Current Total rrent Current Total rrent
subsidi rrent liabiliti liabiliti rrent liabiliti liabiliti
assets Assets liabiliti assets Assets liabiliti
ary assets es es assets es es
es es
Great 102,96 102,96
749,91 18,381, 19,131, 100,21 100,21
Wall 9,245.8 9,245.8 841,64 17,890, 18,731,
4.93 367.07 282.00 7,332.1 7,332.1
Estate 8 8 3.94 114.20 758.14
2 2
Co., Inc
Fresh
220,03 244,82 254,71 254,71 220,03 244,82 254,69 254,69
Peak 24,793, 24,793,
0267.7 3,474.0 4,402.8 4,402.8 0,060.2 3,266.6 4,603.7 4,603.7
Investm 206.35 206.35
3 8 5 5 7 2 8 8
ent Ltd.
Barenie
30,373, 30,374, 32,760, 32,760, 30,373, 30,374, 32,758, 32,758,
Co. 999.12 973.38
713.87 712.99 643.34 643.34 713.87 687.25 096.84 096.84
Ltd.
Currency： yuan
Name of Amount in current year Amount in previous year
subsidiary Operating Net profit Total of Cash flow Operating Net profit Total of Cash flow
97
income comprehen from income comprehen from
sive income operating sive operating
activities income activities
Great Wall -110,409.1 -63,790.59 -8,658.47 110,519.48 110,476.29
286,203.33 -2,352,389. -110,476.29
Estate Co., 3
90
Inc
Fresh Peak -762.09-76
-11-1,848.7
Investment 2.1-762.09
8,
Ltd. 762.09
Barenie Co. 11-2,520.7
-1,847.08
Ltd. 6
Other note：
（1）Insignificant joint ventures or associated enterprises
Currency： yuan
Item Closing balance/Incurred this year Opening balance/Incurred last year
Joint ventures： -- --
Total investment book value 29,441,800.59 29,441,800.59
Totals of the following items
calculated per respective shareholding -- --
proportion
Associated enterprises： -- --
Total investment book value 270,179.54 295,252.56
Totals of the following items
calculated per respective shareholding -- --
proportion
--Net profit -63,790.59 -129,692.73
*1All of the Group’s joint ventures are insignificant. For details of the joint ventures,including:
1）Guangdong province Huizhou Luofu Hill Mineral Water Co.,Ltd
The operting period of the company was form June 5, 1991 to June 4, 2001. And the company had ceased operations because of
operating loss for many years. And the Company had been terminated its licenses by law at July 6, 2001 because it failed to pass
the annual inspection. Besides, the corporation stopped preparing the financial statement. As of the end of the year, the book
value of the investment account of the Company is zero. According to the joint venture agreement, the Company didn’ have the
obligation to bear the additional loss.
2）Fengkai Xinghua Hotel
The FengKai XingHua Hotel was announced bankruptcy by the Guangdong Province Zhaoqing City second-middle
intermediate Peoples’ court with the document (2002) ZHFJPZ No.2. And the corporation had finished the bankruptcy
procedure. As of the end of the year, the book value of the investment account of the Company is zero. According to the joint
venture agreement, the Company didn’t have the obligation to bear the additional loss.
3）Jiangmen Xinjian Real Estate Co. Ltd., Xi’an Fresh Peak Building Co. Ltd, DongYi Property Co., Ltd
The above corporations were the joint ventures set up with the local partners for the properties developing projects. Consider the
projects had been stopped, and the joint ventures had closed operating activities for many years with no preparation of financial
statements. Already the corresponding provision for the investment of these joint ventures was accrued. Refer to Note 6.10 for
details.
*2All associated enterprises of the Group are insignificant. For details of associated enterprises, please refer to note 6.10,
including:
1）Shenzhen Runhua Automobile Trading Co., Ltd
The operating period of this corporation was form Feb 24, 1992 to Feb 24, 1997, and it had ceased operations because of
operating loss for many years. Besides, it had been terminated its licenses by law because it failed to pass the annual inspection
and no financial statement was prepared afterwards. As the end of the year, the book value of the investment account of the
company is zero. According to the associate agreement, the company didn’t have the obligation to bear the additional loss.
98
2）Shenzhen Dongfang New World Store Co., Ltd
The operating period of this corporation was from June 7, 1993 to June 7, 1998, and the company had ceased operations because
of operating loss for many years. And the company had been terminated its licenses by law at Jan 10, 2001 because it failed to
pass the annual inspection. Besides, the company stopped making the financial statement. At Dec 31, 2010, the book value of
the investment account of the company is zero. According to the associate agreement, the company didn’ have the obligation to
bear the additional loss.
（2）The excess losses of the joint ventures or associated enterprises incurred.
Currency： yuan
Accumulated unrecognized Unrecognized losses this Accumulated unrecognized
Name of the joint ventures
losses as of the end of last year (or shared net profit losses as of the end of this
or associated enterprises
year this period) period
Shenzhen Fresh Peak
581,211.71 581,211.71
property consultant Co. Ltd
Ⅹ.Related party relationships and transactions
1.Parent of the Company
Proportion of the
Proportion of the
Company ’ s
Name of the Place of Company ’ s
Business Nature Registered capital ownership
parent incorporation voting right held
interest held by
by the parent (%)
the parent
Shenzhen Investment, Real
Guangdong
Investment estate
province RMB 21.45 billion 63.55% 63.55%
Shareholding Co. development,
Shenzhen
Ltd Guarantee
Description of the parent company
The ultimate control of the enterprise is the Shenzhen SASAC.
2.Subsidiaries of the Company
Please refer to Note 9.1.
3.Associates and joint ventures of the entity
Please refer to Note 9.3 –Equities in joint venture or associated enterprises
The company's related party transactions in current period,or other joint ventures or associate with the balance of the company's
related party transactions in prior period.：
Relationship between other related parties and the
Name of other related party
Company
Shenzhen Jian'an Group Co., Ltd. The same controlling shareholders
4. Other related parties of the Company
Relationship between other related parties and the
Name of other related party
Company
Shenzhen Jian'an Group Co., Ltd. The same controlling shareholders
5.Related party transactions
（1）Association entrusted management / contracting and Commission Management / Outsourcing
Association entrusted management / contracting and Commission Management：
Currency： yuan
Contracting
Basis of
Name of main Type of assets Reception date Expiration date income
Name of pricing of
contract under of of recognized in
contractor contracting
issuing party contracting contracting contracting the current
income
period
Shenzhen Shenzhen Zhen
Construction 2012-6-1 Open bidding 2,443,171.86
Jian'an Group Tung
99
Co., Ltd. Engineering
Ltd
（2） Compensation for key management personal
Currency： yuan
Item Amount for the current period Amount for the prior period
The remuneration of the member of
board,supervisor,and high-ranking 2,380,000.00 2,440,000.00
executive
6.Amounts due from / to related parties
（1）Amounts due from related party
Currency： yuan
Closing balance Opening balance
Item Related party Carrying Bad debt Carrying Bad debt
amount provision amount provision
Accounts Accounts
receivable： receivable：
Shenzhen Fresh
Peak property
939,979.58 1,137,877.25
consultant
Co.,Ltd
Total 939,979.58 1,137,877.25
Other Other
receivables： receivables：
Guangdong
Province Huizhou
Luofu Hill 10,465,168.81 10,465,168.81 10,465,168.81
Mineral Water
Co., Ltd
Shenzhen Runhua
Automobile 3,072,764.42 3,072,764.42 3,072,764.42
Trading Co., Ltd
Canada
GreatWall
89,035,748.07 89,035,748.07 89,035,748.07
（ Vancouver ）
Co. ,Ltd
Bekaton Property
12,559,290.58 12,559,290.58 12,559,290.58
Limited
Paklid Limited 18,997,984.22 18,446,223.54 18,443,271.41
Shenzhen
Shenfang
237,648.82 237,648.82 189,179.82
Department Store
Co. Ltd.
Shenzhen Real
Estate
1,086,487.22 1,086,487.22 927,136.22
Consolidated
Service Co., Ltd.
Shenzhen City
Shenfang
8,327,180.71 8,327,180.71 8,327,180.71
Construction and
Decoration
100
Materials Ltd.
Shenzhen
RongHua JiDian 475,223.46 475,223.46
Co.,Ltd
Xi’an Fresh Peak
property
8,419,205.19 8,419,205.19
management&
Trading Co.,Ltd
Total 152,676,701.50 152,124,940.82 143,019,740.04
（2）Amounts due to related party
Currency： yuan
Item Related party Closing balance Opening balance
Other payables： Other payables：
Shenzhen Tefa Real Estate
Consolidated Service Co., 598,012.16 598,012.16
Ltd.
Shenzhen Shen Fang
Industrial Development 1,534,854.91 1,534,854.91
Co., Ltd
Shenzhen ZhongGang
135,853.52 135,853.52
Haiyan Enterprise Ltd.
Shenzhen Dongfang New
902,974.64 902,974.64
world store Co., Ltd
Shenzhen Xin Dongfang
1,394,704.21 1,394,704.21
Store Ltd.
Guangdong Province
Fengkai Lain Feng Cement 1,867,348.00 1,867,348.00
Manufacturing Co., Ltd
Shenzhen Cyber Port Co.,
7,964,749.26 7,964,749.26
Ltd
Shenzhen Shenfang Group
20,093,445.07 20,093,445.07
BaoAn Developing Co.,Ltd
Shenzhen Investment
28,848,819.24 28,848,819.24
Holding Co.,Ltd
Total 63,340,761.01 63,340,761.01
Interest payable: Interest payable:
Shenzhen Investment
16,535,277.94 16,535,277.94
Holding Co.,Ltd
Total 16,535,277.94 16,535,277.94
Ⅺ.Contingency and commitment
1、Significant commitment
Significant commitment affair at date of balance sheet.
1.Significant commitment
Item Closing balance(Currency ： Opening balance(Currency：
yuan) yuan)
Capital commitments that have been 697,895,950.68
entered into but have not been 953,295,908.98
recognized in the financial statements
Total 953,295,908.98 697895950.68
101
2.Fulfillment progress of previous commitments
The amount of significant outsourcing contracts is RMB78,317,065.18which was paid during the report period and has been
entered into the prior period but has not been recognized in the financial statements.
2.Contingencies
Contingencies arising from pending litigations or arbitrations and their financial effects
Xi’an project Lawsuit
Xi’an Fresh Peak Holding limited company (hereinafter referred to as “Fresh Peak
Company”) was sino-foreign joint venture set up in Xi’an city. The shareholder of the Fresh Peak Company – Hongkong
Fresh Peak Co., Ltd was the wholly owned subsidiary of the company. And the Hongkong Fresh Peak Co., Ltd contributed 84%
of the Fresh Peak Company’s share- capital in cash. And Xi’an trade building which was the enterprise under the Xi’an Joint
Commission on Commerce and Trade contributed 16% of the Fresh Peak Company’s share- capital with the land-use right. The
core business was property development. And the project was Xi’an Trade Building. The project was started on 1995-11-28. But
the project had been stopped in 1996 because of the two parties differences on the operating policy of the project. In 1997, the
Xi’an government withdrew the Xi'an Fresh Peak investment project compulsively and assigned the project to Xi’an Business
Tourism Co., Ltd (hereinafter referred to as “Business Tourism Company”). But the two parties had insulted a lawsuit on
compensation. The ShanXi Province High Peoples Court made a judgement “(2000) SJ-CZ No.25”. The judgement was as
follows: 1. Business Tourism Company had to pay for the compensation Rmb 36,620 thousand to Xi’an Fresh Peak Company
after the judgment entering into force. If the Business Tourism Company failed to pay in time, it had to pay double debt interests
to Xi’an Fresh Peak Company. 2. Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of
the compensation.
Until 31 December 2011, the amount of RMB 15,201,000.00 had been called back. Because of Fresh Peak Company’s
application, ShanXi Province High Peoples Court resumed the execution on September 5, 2011. Now the case is proceeding and
there was no any new substantive progress in the reporting period.
As at 30 Jun 2016, the book value of the investment of Xi’an Fresh Peak Company was RMB 12,166,897.84. The provision for
investment was RMB 20,673,831.77. And the amount of debt was RMB 8,419,205.19.
Ⅻ.Events after Balance Sheet Date
Profit distribution
Currency： yuan
Profits and dividends to be distributed 0
Profits and dividends declared and approved by the 0
review
Ⅷ.Others
The company cooperated with Luofu Hill Tourism Company (hereinafter referred to as “Tourism Company”) on Luofu Hill
Tourism project in early years. The company instituted legal proceedings against Tourism Company because the Tourism
Company failed to carry out the agreement. The basic situation of lawsuit See company "2015 Annual Report", "IX Financial
Reporting"10 contingency1 Liabilities and financial impact of pending litigation or arbitration ②the lawsuit of Luofu Hill
Tourism Company.
Since 2015，After repeated consultations with executed person.Sighed the in
April 21, 2016.The case execution has been terminate in the debtor to pay 18 million yuan.All the debts are fulfilled according
to (2007) No. 192 Yue Gao Fa Min Er Zhong Zi "Civil Judgment" after all payments of 18 million has received.So far the case
has been processed end.
XIV.Notes to Items in the Financial Statements of the Parent Company
1、Accounts receivable
（1） Accounts receivable by categories
Currency： yuan
Closing balance Opening balance
Category
Carrying amount Bad debt Book Carrying Bad debt provision Book
102
provision value amount value
Amou
Amount (%) Amount (%) (%) Amount (%)
nt
Accounts
receivable of
16,381
which provision 12,057, 100.00 6,968,6 5,088,7 100.00 6,968,69 9,412,675
57.80% ,369.2 42.54%
for bad debts is of 456.26 % 94.02 62.24 % 4.02 .23
5
individually
insignificant
16,381
12,057, 6,968,6 5,088,7 100.00 6,968,69 9,412,675
Total 57.80% ,369.2 42.54%
456.26 94.02 62.24 % 4.02 .23
5
（2）Bad debt provision, recovery or reverse
The provision amount of bad debt is RMB 0.00 Yuan.;Recovery or reverse for bad debts Amount is RMB0.00.
（3）Top 5 entities with the largest balances of accounts receivable
Proportion of
Relationship with the amount to
Name of entity Amount Age Provision amount
the Group the total AR
(%)
1,948,071.9 More than
Corporation No.1 Un-related party 16.16%
6 5 year
Individual No.1 1,200,000.0 More than
Un-related party 9.95% 1,200,000.00
0 5 year
1,161,975.3 More than
Related party 9.64%
Corporation No.2 5 5 year
More than
Individual No.2 Un-related party 7.27% 876,864.11
876,864.11 5 year
More than
Individual No.3 Un-related party 7.17% 791,467.78
864,550.68 5 year
6,051,462.1
Total 2,868,331.89
0
2.Other receivables
(1) Other receivables by categories
Currency： yuan
Closing balance Opening balance
Bad debt Carrying
Category Carrying amount Book Bad debt provision Book
provision amount
value value
Amount (%) Amount (%) Amount (%) Amount (%)
Other receivables
1,529,0
of which 794,718 734,331 1,473,14 98.55 802,518, 670,628,1
50,217. 98.08% 51.97% 54.48%
provision for bad ,692.30 ,525.69 6,864.58 % 692.30 72.28
99
debts is of
103
individually
significant
Other receivables
of which
provision for bad 29,933, 12,787, 17,145, 21,628,1 9,787,91 11,840,27
1.92% 42.72% 1.45% 45.26%
debts is of 356.72 916.94 439.78 90.82 6.94 3.88
individually
insignificant
1,558,9
100.00 807,506 751,476 1,494,77 100.0 812,306, 682,468,4
Total 83,574. 51.80% 54.34%
% ,609.24 ,965.47 5,055.40 0% 609.24 46.16
71
Other receivables of which provision for bad debts is of individually significant：
Currency： yuan
Closing balance
Other receivables By Reason for make
company Other receivables Bad debt provision proportion provision of bad
debts
For other receivables
Other receivables which the age is too
between subsidiaries long or less
1,392,126,337.04 658,127,505.34 47.27%
that are included in recoverable,provision
consolidated statement for bad debts is
accrued individually
For other receivables
Other receivables which the age is too
between subsidiaries long or less
112,667,138.84 112,667,138.84 100.00%
that are excluded in recoverable,provision
consolidated statement for bad debts is
accrued individually
For other receivables
which the age is too
long or less
Others 24,256,742.11 23,924,048.12 98.63%
recoverable,provision
for bad debts is
accrued individually
Total 1,529,050,217.99 794,718,692.30 51.97% --
（2）Bad debt provision, recovery or reverse
The provision amount of bad debt is RMB 0.00 Yuan.;Recovery or reverse for bad debts amount is RMB4,800,000.00.
Including the significant recovery or reverse for bad debts amount：
Currency： yuan
Name of Entity Recovery or reverse amount Means of Recovery
Luofu Hill Tourism Company 4,800,000.00 Monetary fund
Total 4,800,000.00 --
（3）Details of other accounts receivable classified by nature.
Currency： yuan
Nature Closing balance Opening balance
Other receivables between subsidiaries
that are included in consolidated 1,392,126,337.04 1,332,335,032.12
statement
Other receivables between subsidiaries
that are excluded in consolidated 117,216,795.88 122,318,455.59
statement
104
Others 49,640,441.79 40,121,567.69
Total 1,558,983,574.71 1,494,775,055.40
（5）Top 5 entities with the largest balances of other receivables
Currency： yuan
Proportion rate to
Closing balance
Relationship with the total balance
Name of Entity Amount Age of provision for
the Group of other
bad debt
receivable
Fresh Peak
Subsidiary 11,135,073.92 Within 1 year 0.71%
Enterprise Co., Ltd
Fresh Peak Subsidiary
423,758.43 1-2 years 0.03%
Enterprise Co., Ltd
Fresh Peak Subsidiary
1,351,583.43 2-3 years 0.09%
Enterprise Co., Ltd
Fresh Peak Subsidiary
514,090,700.20 Over 3years 32.98% 508,377,320.74
Enterprise Co., Ltd
Shantou Huafeng Subsidiary
Estate
116,224,064.63 Within 1 year 7.46%
Development Co.,
Ltd
Shantou Huafeng Subsidiary
Estate
31,300,510.98 1-2year 2.01%
Development Co.,
Ltd
Shantou Huafeng Subsidiary
Estate
267,670,000.00 2-3 years 17.17%
Development Co.,
Ltd
Shenzhen Subsidiary
ShenFang Group
LongGang 200,416,930.19 Within 1 year 12.86%
Development Co.,
Ltd
American Great Subsidiary
101,379,954.81 Over 3 years 6.50% 101,379,954.81
Wall Co., Ltd
Canada Great Subsidiary
Wall( Vancouver ) 89,035,748.07 Over 3 years 5.71% 89,035,748.07
Co., Ltd
Total -- 1,333,028,324.66 -- 85.51% 698,793,023.62
3.Long-term equity investments
Currency： yuan
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 437,984,380.7 121,914,591.1 316,069,789.5 437,984,380.7 121,914,591.1 316,069,789.5
subsidiaries 1 4 7 1 4 7
Investment in
associates and 22,217,231.21 21,947,051.67 270,179.54 22,281,021.80 21,947,051.67 333,970.13
joint ventures
143,861,642.8 460,265,402.5 143,861,642.8 316,403,759.7
Total 460,201,611.92 316,339,969.11
1 1 1 0
105
（1）Investment in subsidiaries
Currency： yuan
Closing
Curr. year
Name of Opening Curr. year Curr. year Closing balance of
impairment
investee balance Increase decrease balance impairment
provision
provision
Shenzhen City
Property
12,821,791.52 12,821,791.52
Management
Ltd.
Shenzhen Petrel
20,605,047.50 20,605,047.50
Hotel Co. Ltd.
Shenzhen City
Shenfang 9,000,000.00 9,000,000.00
Investment Ltd.
Fresh Peak
556,500.00 556,500.00
Enterprise Ltd.
Fresh Peak
22,717,697.73 22,717,697.73
Zhiye Co., Ltd.
Shenzhen
Special
Economic Zone
Real Estate
20,000,000.00 20,000,000.00
(Group)
Guangzhou
Property and
Estate Co., Ltd.
Shenzhen Zhen
Tung 11,332,321.45 11,332,321.45
Engineering Ltd
American Great
1,435,802.00 1,435,802.00
Wall Co., Ltd
Shenzhen City
Shenfang Free
4,750,000.00 4,750,000.00
Trade Trading
Ltd.
Shenzhen City
Hua Zhan
Construction 6,000,000.00 6,000,000.00
Management
Ltd.
Shenzhen City
6,495,225.00 6,495,225.00
Car Rental Ltd.
QiLu Co.,Ltd 212,280.00 212,280.00
Beijing
Shenfang
Property 500,000.00 500,000.00
Management
Co., Ltd.
Shenzhen Lain
Hua Industry
13,458,217.05 13,458,217.05
and Trading
Co., Ltd.
Shenzhen City
SPG Long Gang
30,850,000.00 30,850,000.00
Development
Ltd.
106
Beijing Fresh
Peak Property
Development
64,183,888.90 64,183,888.90
Management
Limited
Company
Shenzhen
Shenfang Car 29,750,000.00 29,750,000.00
Park Ltd.
Shantou City
Huafeng Real
Estate 30,000,000.00 30,000,000.00
Devepment Co.,
Ltd
Shenzhen Shen
Fang Industrial
4,500,000.00 4,500,000.00 4,500,000.00
Development
Co., Ltd
Shenzhen
ZhongGang
12,940,900.00 12,940,900.00 12,940,900.00
Haiyan
Enterprise Ltd.
Shenzhen Real
Estate
Consolidated 5,958,305.26 5,958,305.26 5,958,305.26
Service Co.,
Ltd.
Paklid Limited 201,100.00 201,100.00 201,100.00
Bekaton
Property 906,630.00 906,630.00 906,630.00
Limited
Shenzhen Tefa
Real Estate
Consolidated 8,180,003.63 8,180,003.63 8,180,003.63
Service Co.,
Ltd.
Shenzhen Xin
Dongfang Store 18,500,000.00 18,500,000.00 18,500,000.00
Ltd.
Shenzhen City
Shenfang
Construction 2,680,000.00 2,680,000.00 2,680,000.00
and Decoration
Materials Ltd.
Shenzhen
Shenfang
9,500,000.00 9,500,000.00 9,500,000.00
Department
Store Co. Ltd.
Shenzhen
CyberPort Co., 12,401,018.42 12,401,018.42
Ltd
ShenZhen
ShenFang
BaoAn 19,000,000.00 19,000,000.00
Development
Co., Ltd
Shantou Fresh
58,547,652.25 58,547,652.25 58,547,652.25
Peak Building
107
437,984,380.7 437,984,380.7
Total 121,914,591.14
1 1
（2）Investment in associates and joint ventures
Currency： yuan
Chang in current period
Investm Adjustm Closing
ent ents of Cash Provisi balance
Name of Opening Add Reduce Changes Closing
income other dividend on for of
investee balance investm investm of other Others balance
under compreh or profit impair provisio
ent ent equity
equity ensive declared ment n
method income
Ⅰ.Joint ventures
Guangd
ong
Huizhou
Luofu 9,969,20 9,969,20 9,969,20
Hill 6.09 6.09 6.09
Mineral
Water
Co., Ltd
Fengkai
9,455,46 9,455,46 9,455,46
Xinghua
5.38 5.38 5.38
Hotel
19,424,6 19,424,6 19,424,6
Subtotal
71.47 71.47 71.47
Ⅱ.Associates
Shenzhen
Runhua
Automobi 1,445, 1,445,42 1,445,42
le 425.56 5.56 5.56
Trading
Co., Ltd
Shenzhen
Ronghua 1,410, -63,790. 1,347,13 1,076,95
Jidian 924.77 59 4.18 4.64
Co., Ltd
2,856, -63,790. 2,792,55 2,522,38
Subtotal
350.33 59 9.74 0.20
22,281
-63,790. 22,217,2 21,947,0
Total ,021.8
59 31.21 51.67
0
4、Operating income and costs
(1) Operating income and operating costs
Currency： yuan
Amount for the current period Amount for the prior period
Item
Operating income Operating costs Operating income Operating costs
Principal operating
312,137,584.07 180,246,091.18 528,924,692.46 240,739,406.51
income
Total 312,137,584.07 180,246,091.18 528,924,692.46 240,739,406.51
(2)Principal operating activities (classified by industries)
108
Currency： yuan
Amount for the current period Amount for the prior period
Name of industry Operating Operating
Operating costs Operating costs
income income
Real estate 281,291,890.00 168,652,985.51 497,741,746.00 228,984,079.50
Leasing 30,845,694.07 11,593,105.67 31,182,946.46 11,755,327.01
312,137,584.0 180,246,091.1
Total 528,924,692.46 240,739,406.51
7 8
(3)Principal operating activities (classified by geographical areas)
Currency： yuan
Amount for the current period Amount for the prior period
Name of geographical area Operating Operating
Operating costs Operating costs
income income
Shenzhen 312,137,584.07 180,246,091.18 528,924,692.46 240,739,406.51
Total 312,137,584.07 180,246,091.18 528,924,692.46 240,739,406.51
（4） Operating income from the Company’s top 5 customers
Amount for the current period
Name of customers Proportion to total operating income
Operating income
of the Company (%)
Individual No.1 11,596,946 3.72%
Individual No.2 11,427,694 3.66%
Individual No.3 3.43%
10,721,149
Individual No.4 3.23%
10,076,464
Individual No.5 3.08%
9,618,414
Total 17.12%
53,440,667
(Continued)
Amount for the prior period
Name of customers Proportion to total operating income
Operating income
of the Company (%)
Individual No.1 10,147,591.00 1.92
Individual No.2 7,649,799.00 1.45
109
Individual No.3 7,126,376.00 1.35
Individual No.4 6,962,415.00 1.32
Individual No.5 6,646,532.00 1.26
Total 38,532,713.00 7.29
5.Investment income
Currency： yuan
Item Amount for the current period Amount for the prior period
Investment income from long-term
162,821,868.94
investments under cost method
Investment income from long-term
-63,790.59 -129,692.73
investments under equity method
Investment income from
689,000.00 350,000.00
Available-for-sale financial assets
Total 625,209.41 163,042,176.21
XV.Supplementary information
1.Breakdown non-recurring profit or loss
Currency： yuan
Items Amount Note
Profit or loss on disposal of
-2,647.50
non-current assets
The company and the Luofu
Reversal of provision for account Mountain Tourism Corporation
receivables that are tested for 4,800,000.00 litigation amount has been
impairment losses individually recovered.So the provision for bad
debts reversed.
The main reason is due to receive
Other non-operating income or the lawsuit claims payment from
5,115,528.04
expenses other than the above Luofu Mountain Tourism
Corporation
Less：Income tax effects 2,473,345.13
Total 7,439,535.41 --
2.Return rate of net assets and earning per share
Earning per share
Profit the in the reporting year Weighted return rate of net assets
Basic EPS(yuan / Diluted EPS(yuan /
110
stock) stock)
Net profit attributable to
5.62% 0.1332 0.1332
common shareholders
Less： Net profit attributable
to common shareholders after 5.31% 0.1259 0.1259
deducting non-recurring losses
3.Differences between amounts prepared under foreign accounting standards and China Accounting Standards (CAS)
（1）Differences in the net profit and net assets between those disclosed in the financial statements in compliance with
International Finance Reporting Standards and CAS
Currency： yuan
Net profit Net asset
Amount for the Amount for the prior Amount for the Amount for the prior
current period period current period period
In accordance with
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
CASs
Items and amounts adjusted according to international accounting standards：
In accordance with
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
IFRS
（2）Differences in the net profit and net assets between those disclosed in the financial statements in compliance with Overseas
accounting standards and CAS：
Currency： yuan
Net profit Net asset
Amount for the Amount for the prior Amount for the Amount for the prior
current period period current period period
In accordance with
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
CASs
Items and amounts adjusted according to overseas accounting standards：
In accordance with
overseas accounting 134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
standards
111
Section X Documents Available For Reference
1. The accounting statements with personal signatures and seals of Legal Representative, Chief Accountant and
the person in charge of the accounting agency.
2. The originals of all the documents and public notices disclosed on China Securities Journal and Ta Kung Pao
by the Company during the Reporting Period.
112
