ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
Stock Code: 000029, 200029 Stock Name: SPG A, SPG B Announcement No.: 2017-058
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES
(GROUP) CO., LTD.
SEMI-ANNUAL REPORT 2017 (ABSTRACT)
I Important Notes
This Abstract is based on the full text of the Semi-Annual Report. In order for a full understanding of the operating results, financial
condition and future development planning of the Company, investors are kindly reminded to read the full text carefully on the media
designated by the China Securities Regulatory Commission (the “CSRC”).
Objections against this Report raised by the directors, supervisors and senior management:
Name Office title Objection and reason
Statement:
Except for the following directors, all the other directors attended in person the board meeting for the review of this Report.
Reason for not attending in
Name Office title Proxy
person
Modified auditor’s opinion:
□ Applicable √ Not applicable
Proposal for profit distribution to or converting capital reserve into share capital for common shareholders for the Reporting Period,
which has been considered and approved by the Board:
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
Proposal for profit distribution to preference shareholders for the Reporting Period, which has been considered and approved by the
Board:
□ Applicable √ Not applicable
This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
II Company Profile
1. Stock Profile
Stock name SPG A, SPG B Stock code 000029, 200029
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Mr. Chen Ji Mr. Luo Yi
47/F, SPG Plaza, Renmin South Road, 47/F, SPG Plaza, Renmin South Road,
Office address
Shenzhen, Guangdong Province, P.R.China Shenzhen, Guangdong Province, P.R.China
Tel. （86 755）82293000-4718 （86 755）82293000-4715
E-mail spg@163.net spg@163.net
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
2. Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenue (RMB) 731,306,982.03 1,097,886,969.68 -33.39%
Net profit attributable to shareholders of
137,226,601.84 134,761,121.51 1.83%
the Company (RMB)
Net profit attributable to shareholders of
the Company before exceptional gains and 137,080,046.11 127,321,586.10 7.66%
losses (RMB)
Net cash from operating activities (RMB) -97,700,697.19 426,167,980.76 -122.93%
Basic earnings per share (RMB/share) 0.1356 0.1332 1.80%
Diluted earnings per share (RMB/share) 0.1356 0.1332 1.80%
Weighted average return on equity (%) 5.06% 5.62% -0.56%
End of Reporting Period End of last year +/- (%)
Total assets (RMB) 3,795,348,770.68 3,785,600,783.23 0.26%
Net assets attributable to shareholders of
2,782,523,104.61 2,643,860,443.09 5.24%
the Company (RMB)
3. Shareholders and Their Holdings at Period-End
Unit: share
Total number of preference
Total number of common shareholders with resumed
76,442 0
shareholders at period-end voting rights at period-end (if
any)
Top 10 shareholders
Nature of Shareholdin Total shares Restricted Pledged or frozen shares
Name of shareholder
shareholder g percentage held shares held Status Number
Shenzhen Investment Holdings State-owned
63.55% 642,884,262
Co., Ltd corporation
Shandong Gold Financial
Holding Capital Management Domestic
Co., Ltd. － Shandong Gold non-state-owned 1.02% 10,300,000
Financial Holding Sustaining corporation
Fund 1
Lu Zhigao Domestic individual 0.32% 3,246,949
Tan Shiqing Domestic individual 0.13% 1,286,701
Yang Shuilian Domestic individual 0.13% 1,273,700
Yang Jianxiong Domestic individual 0.12% 1,255,750
Central Huijin Asset State-owned
0.12% 1,165,500
Management Co., Ltd. corporation
Peng Wei Domestic individual 0.11% 1,129,082
Wu Haoyuan Foreign individual 0.11% 1,109,300
Guotai Junan Securities (Hong
Foreign corporation 0.10% 1,015,683
Kong) Limited
The Company has found no related parties or act-in-concert parties as
Related or acting-in-concert parties among
defined in the Administrative Measures for Shareholding Changes in Listed
shareholders above
Companies among the shareholders above.
Shareholders conducting securities margin trading (if Shareholder No. 4 holds all his shares in the Company in his account of
any) collateral securities for margin trading. Shareholder No.3 holds some of his
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
shares in the Company in such an account.
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preference shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue before the
approval date of this Report or were due but could not be redeemed in full?
No.
III Performance Discussion and Analysis
1. Performance Review for Reporting Period
Is the Company subject to any disclosure requirements for special industries?
Yes, because the Company engages in real estate.
(1) Business Review for Reporting Period
2017 marks the second year of the Company’s 13th five-year plan for development, as well as a key
year for the Company to carry out its significant asset reorganization program. In the first half of the
year, the growth slowdown in the macro economy and continued government controls weighed on
the real estate sector. Under such circumstances, in addition to proactively and carefully carrying
forward its significant asset reorganization program, the Company adhered to the thinking of
“Carefully Draw up Development Strategies, Particularly Focus on Main Business, Strictly Control
Costs and Continuously Improve Management Capability” and put greater efforts into promoting
project construction and marketing, so as to achieve stable development.
In the Reporting Period, the Company made a concerted effort to overcome difficulties and steadily
promote project construction. As a result, for this period, the Company achieved, on a consolidated
basis, operating revenue of RMB731 million, down 33.39% compared to the same period of last
year; a gross profit of RMB184 million, representing a year-on-year growth of 1.86%; and a net
profit attributable to shareholders of the Company of RMB137 million, increasing 1.83% from a
year earlier. As of June 30, 2017, net assets attributable to shareholders of the Company were equal
to RMB2.783 billion, a 5.24% rise compared to the corresponding figure as of the end of last year.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
① 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, thanks to the experience learned from the SPG Chuanqishan
project in Guangming, Shenzhen, the SPG Shanglin Garden project in Longgang, Shenzhen and the
project in Shantou, the Company accelerates the establishment of a modern enterprise HR
management system and works hard in building a professional and high-quality development team.
It also keeps improving the management mechanism and processes for project development. As a
result, the professionalism and management capability of the Company have improved significantly;
planning, construction, cost control, marketing capability and brand image have been effectively
enhanced; and the operational capability in the main business of real estate keeps increasing, along
with the core competitiveness. During the reporting period, the key projects of the Company
focused on Shenzhen and Shantou, and the construction of projects basically meets expectation. The
Company pays close attention to product quality and progress, and timely adjusts marketing
strategies. The development and sales of projects are under smooth progress, and the development
and operation of the main industry are in good order.
② The Company further improves the development and management system, focuses on
management of safety in production and tightens cost control. For projects in Shenzhen area, roof
capping of main structure of the Cuilinyuan project and the Tianju Jingtian Apartment Block project
has been completed, and basement of the Chuanqi Donghu Mingyuan project is under construction.
Roof capping of main structure of Shantou Tianyuewan Phase I has been completed, and acceptance
of the project is expected to be completed by the end of the year; while planning and design of the
second phase will be completed before the end of the year.
During the Reporting Period, the main real estate projects under construction of the Company
include the Cuilinyuan project (south section of the SPG Shanglin project), the Tianju Jingtian
Apartment Block project, the Chuanqi Donghu Mingyuan project, the Shantou Tianyuewan project,
etc. The details are as follows:
Building Total
The Completed Accumulated
Type of Covering area with expected
Project Location Status Company’s building investment
project area（㎡） plot ratio investment
stake area（㎡） (RMB’0,000)
（㎡） (RMB’0,000)
Cuilinyuan Shenzhen Housing Under 100% 16,424.29 60,450 0 57,000 33,890
construction
Tianju Shenzhen Apartment Under 49% 4,243.34 42,412 0 24,865 9,969
Jingtian block construction
Apartment
Block
Shantou Shantou Housing Under 100% 31,167.50 153,578.51 0 79,801 49,386
Tianyuewan construction
Phase I
Chuanqi Shenzhen Housing Under 100% 5,889.7 45,043.72 0 73,200 14,923
Donghu construction
Mingyuan
③ Land reserves for future development by the end of the Reporting Period:
Building area with plot ratio
Project Location Land area（㎡）
（㎡）
Shantou Tianyuewan Phase II Shantou 33,362 127,661
Shantou Xinfeng Building Shantou 5,920 26,640
Total 39,282 154,301
Note: The Company's real estate projects do not involve primary land development.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
(2) Management Review for First Half of 2017
① The Company fundamentals remain stable and healthy with reasonable debt structure, good
financial condition and ample cash flow. During the reporting period, macro-economy is facing
downward pressure, and sustained control of real estate forces the industry to continue to face the
pressure of destocking on a national scale. The Company's real estate development and sales mainly
concentrate in Shenzhen and Shantou. The sales revenue and profit in the region of Shenzhen,
where overall sales are good, accounted for more than 90%. Thus the future destocking pressure
mainly exists in Shantou region, of which sales revenue and profit account for a much smaller
proportion. Therefore, the future business performance and profitability of the Company are less
affected.
A. Financing of the Company:
a. Trade acceptance
Item Closing balance (RMB’0,000)
Trade acceptance 1,640.59
Pledged loan 11,666.00
As of June 30, 2017, the trade acceptance discounted but not matured is RMB16,405,900, and the
balance of related pledged borrowing is RMB16,405,900. When the trade acceptance cannot be
honored when it is mature, the bank has the power to ask the Company to repay the amount
un-settled. The Company continues to recognize the carrying amount of the trade acceptance and
records the amount of RMB116.66 million received as pledged borrowing because of the transfer,
due to the Company’s undertaking the main risk, such as credit risk, relating with the trade
acceptance.
b. Bank borrowing
Amount (RMB’0,000)
Interest
Financing Remaining Principal
No. Term Currency Purpose Rate
Category Credit Drawing at End of Reporting Range (%)
Period
1 Bank borrowing 1 year RMB 2,960 2,960 2,960 Short-term credit 4.79-5.44
borrowing
2 Bank borrowing 3-5 years RMB 32,000 32,000 15,800 Medium and 5.235
long-term borrowing
Total RMB 34,690 34,690 18,490
② The main industry develops in a good order. The Company further improves the development
and management system, focuses on management of safety in production and tightens cost control.
During the Reporting Period, construction of real estate projects of the Company are under order
progress. As for Shenzhen region, external scaffolding of the Cuilinyuan project has been removed;
Foundation pit excavation of the Chuanqi Donghu Mingyuan project has been finished, and main
structure of basement is under construction; the Tianju Jingtian Apartment Block is currently in the
construction phase of installation engineering. As for the Shantou Tianyuewan Phase I project, roof
capping has been finished, and acceptance is expected to be completed before the end of the year.
Industry, product or regional situation accounting for more than 10% of the Company's operation
revenue or operation profit:
Unit: RMB’0,000
Operation
Operation Cost Gross Margin
Revenue
Increased or Increased or
Operation Operation Gross Increased or
Decreased over the Decreased over
Revenue Cost Margin Decreased over
Same Period of the Same Period
the Same Period
Last Year Last Year
of Last Year
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
By industry
Real estate 39,519 19,799 49.90% -25.63% -34.46% 6.75%
Engineering 23,007 22,354 2.84% -51.28% -50.33% -1.87%
construction
By product
House 37,388 19,217 48.60% -20.82% -29.93% 6.69%
Shop 2,130 582 72.69% -64.00% 79.09% 19.70%
By region
Guangdong 70,495 46,869 33.51% -32.96% -39.32% 6.98%
province
③ Real estate sales basically meet expectations. The Company is concerned about policy and
market dynamics, and adjusts marketing strategies based on regulatory policies and market changes.
Project sales basically meet the early year plan. Opening sales of the Cuilinyuan project began in
June in accordance with the schedule of early year plan; the Jinyedao project’s remaining suites and
the Chuanqi Shanglin project’s villas basically achieve the sales target, while sales of the Shantou
Yuejing Dongfang project and the Shantou Tianyuewan project is slightly behind schedule.
A. Carryover and sales of major real estate projects in the Reporting Period
Unit: RMB’0,000
Region Operation Revenue Operation Cost Operation Margin Gross Margin (%)
SPG Chuanqishan Shenzhen 19,397 9,989 9,408 48.50
SPG Shanglin Garden Shenzhen 17,719 8,149 9,570 54.01
Shantou Jinyedao Shantou 578 215 363 62.80
Shantou Yuejing Dongfang Shantou 1,825 1,446 379 20.77
Total 39,519 19,799 19,720 49.90
B. Sales of real estate projects in the Reporting Period
Unit: square meters
Sales Area Available Current
Market Equity Current
No. Name of Project Region at the Beginning of Settlement
Opening Ratio Sold Area
the Year Area
1 SPG Chuanqishan November 2012 100% Shenzhen 625 279 3,969
2 SPG Shanglin Garden October 2013 100% Shenzhen 3,852 2,895 5,912
3 Yuejing Dongfang December 2013 100% Shantou 5,000 3,648 2,090
4 Jinyedao July 1996 100% Shantou 5,000 3,161 600
5 Tianyuewan Phase I October 2016 100% Shantou 40,000 2,257
6 SPG Cuilinyuan June 2017 100% Shenzhen 18,000
Total 72,477 12,240 12,571
④ Real estate rental of the Company is stable with steadily rising rental price as well as good
occupancy rate and rental recovery rate. The main rental items are as follows:
Unit: square meters
Rentable Rented Occupancy Type of Land Equity
Region Name of Building
Area Area Rate Operation Ownership Ratio
Shenzhen Real estate Mansion 3,413.88 3,413.88 100% Commercial The Company 100%
Building
Shenzhen North Block of 4,819.71 4752.98 98.62% Commercial The Company 100%
Guoshang Mansion Building
Shenzhen Petrel Building 22,475.47 22,475.47 100% Commercial The Company 100%
Building
Shenzhen SPG Plaza 59774.17 51344.7 86% Office The Company 100%
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
Building
Shenzhen SPG Plaza Podium 21456.72 21456.72 100% Commercial The Company 100%
Building
Shenzhen Wenjin Garden 3,531.60 3,531.60 100% Commercial The Company 100%
Building
Total 115,471.55 106,975.35
⑤ Enterprises affiliated strengthen their management and improve their service level to expand the
market. The operation management of the enterprises basically meet expected targets in the
reporting period.
(3) Outlook of the Company's Future Development
In the second half of 2017, the Company will work hard to overcome the sales pressure brought by
the macro-control and adjust the business strategies according to local conditions. Main items for
sales include the new buildings of the Cuilinyuan project, remaining villas of the Chuanqishan
project, remaining villas and shops of the Chuanqi Shanglin project, as well as Shantou Tianyuewan
Phase I, remaining suites of the Jinyedao project and the Yuejing Dongfang project. Working plan
of the second half of the year is as follows:
① Enhance project development, coordinate management and control capacity, promote project
construction according to plan, and push forward project construction on the premise of ensuring
safety and quality. Acceptance of the Shantou Tianyuewan Phase I project will be completed before
the end of year. Construction application and tender of the second phase will be accelerated, and
construction will begin according to actual situation. Acceptance of the Tianju Jingtian Apartment
Block will be completed before the end of the year. Adjust marketing strategies, strengthen
promotion and sales to achieve the expected real estate sales target.
② Promote the Company's major asset reorganization in accordance with regulatory requirements.
③ Carry out the special governance activities of "inaction", strengthen enterprise management and
cost control, and constantly enhance execution of the whole Company.
④ Strengthen financial management, reasonably balance debt structure, prevent and control
financial risks and tighten internal control.
⑤ Enhance rental management, constantly improve rental and platform leasing work, and focus on
raising occupancy rate and rental recovery rate.
2. Matters Related to Financial Report
(1) Changes in Accounting Policies, Accounting Estimations and Measurement Methods Compared to Last
Accounting Period
□ Applicable √ Not applicable
No such cases.
(2) Retroactive Restatements due to Correction of Significant Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-Annual Report 2017 (Abstract)
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
□ Applicable √ Not applicable
No such cases.
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