ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
THIRD QUARTER REPORT 2017
2017-075
October 2017
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) 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 this Report, and shall be jointly and
severally liable for any false representation, misleading statements or material omissions in
this Report.
All the directors of the Company attended the board meeting for the review of this Report.
Zhou Jianguo, Board Chairman, Chen Maozheng, GM, Tang Xiaoping, accounting head for
this 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.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
September 30, 2017 December 31, 2016 Change
Total assets (RMB) 3,820,236,889.03 3,785,600,783.23 0.91%
Equity attributable to owners of the
2,796,350,633.17 2,643,860,443.09 5.77%
parent (RMB)
July-September January-September
YoY change YoY change
2017 2017
Net sales (RMB) 233,287,425.63 -63.92% 964,594,407.66 -44.71%
Net margin attributable to owners of the
12,356,333.26 -87.90% 149,582,935.10 -36.85%
parent (RMB)
Net margin attributable to owners of the
parent before exceptional gains and 12,359,686.56 -87.86% 149,439,732.67 -34.78%
losses (RMB)
Net cash from operating activities
-- -- -200,649,011.12 -136.41%
(RMB)
Basic earnings per share (RMB/share) 0.0122 -87.91% 0.1479 -36.82%
Diluted earnings per share (RMB/share) 0.0122 -87.91% 0.1479 -36.82%
Weighted average return on equity (%) 0.45% -3.61% 5.50% -4.17%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Gains/Losses on disposal of non-current assets (inclusive of offset
-61,706.41
asset impairment provisions)
Non-operating income and expense other than above 252,642.99
Less: Income tax effects 47,734.15
Total 143,202.43 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gains and
Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of common shareholders at Total number of preference shareholders with
76,443 0
period-end resumed voting rights at period-end (if any)
Top 10 shareholders
Total shares Pledged or frozen shares
Nature of Shareholding Restricted shares
Name of shareholder held at
shareholder percentage held at period-end Status Number
period-end
Shenzhen Investment State-owned
63.55% 642,884,262
Holdings 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
Domestic
Lu Zhigao 0.32% 3,246,949
individual
Domestic
Tan Shiqing 0.13% 1,286,701
individual
Domestic
Yang Shuilian 0.13% 1,273,700
individual
Domestic
Yang Jianxiong 0.12% 1,255,750
individual
Central Huijin Asset State-owned
0.12% 1,165,500
Management Co., Ltd. corporation
Domestic
Peng Wei 0.11% 1,129,082
individual
Foreign
Wu Haoyuan 0.11% 1,109,300
individual
Guotai Junan Securities Foreign
0.10% 1,015,683
(Hong Kong) Limited corporation
Top 10 non-restricted shareholders
Name of shareholder Non-restricted shares Type of stock
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
held at period-end Type Number
Shenzhen Investment Holdings Co., Ltd 642,884,262 RMB ordinary shares 642,884,262
Shandong Gold Financial Holding Capital Management Co.,
10,300,000 RMB ordinary shares 10,300,000
Ltd.－Shandong Gold Financial Holding Sustaining Fund 1
Lu Zhigao 3,246,949 RMB ordinary shares 3,246,949
Tan Shiqing 1,286,701 RMB ordinary shares 1,286,701
Yang Shuilian 1,273,700 RMB ordinary shares 1,273,700
Domestically listed stock
Yang Jianxiong 1,255,750 1,255,750
for foreign investors
Central Huijin Asset Management Co., Ltd. 1,165,500 RMB ordinary shares 1,165,500
Peng Wei 1,129,082 RMB ordinary shares 1,129,082
Domestically listed stock
Wu Haoyuan 1,109,300 1,109,300
for foreign investors
Domestically listed stock
Guotai Junan Securities (Hong Kong) Limited 1,015,683 1,015,683
for foreign investors
The Company has found no related parties or act-in-concert parties
Related or acting-in-concert parties among shareholders
as defined in the Administrative Measures for Shareholding Changes
above
in Listed Companies among the shareholders above.
Shareholder No. 4 holds all his shares in the Company in his account
Top 10 common shareholders conducting securities margin
of collateral securities for margin trading. Shareholder No.3 holds
trading (if any)
some of his shares in the Company in such an account.
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
Unit: RMB
January-September January-September
Income statement item Change Main reason for change
2017 2016
Decreases in spot housing sales
Net sales 964,594,407.66 1,744,462,098.00 -44.71% carryforwards and in provision of
construction services
Decreases in spot housing sales
Cost of sales 686,017,275.92 1,266,493,613.92 -45.83% carryforwards and in provision of
construction services
Taxes and surtaxes 30,671,236.84 135,398,032.24 -77.35% Decreased real estate income
Increases in sales agency costs and
Selling expense 12,382,407.96 8,844,726.66 40.00% commission expenditure caused by
projects newly open for sale
Decreases in interest and capitalized
Finance costs -2,414,867.29 -11,918,313.56 -79.74% interest associated with real estate
projects
Reversal of bad-debt provision for
compensation in Luofu Mountain
Asset impairment losses 0.00 -4,800,000.00 -100.00%
lawsuit case in period January through
September 2016
Return of compensation in Luofu
Non-operating income 320,231.95 5,639,605.16 -94.32% Mountain lawsuit case in period January
through September 2016
January-September January-September
Cash flow statement item Change Main reason for change
2017 2016
Net cash flows from operating Decrease in cash generated by sale of
-200,649,011.12 551,101,766.41 -136.41%
activities goods
Net cash flows from investing Receipt of downpayment for transfer of
8,643,770.86 -141,856.79 6193.31%
activities car rental subsidiary
Net cash flows from financing Repayment of bank loans in period
-18,576,803.21 -397,151,521.05 95.32%
activities January through September 2016
Balance sheet item September 30, 2017 December 31, 2016 Change Main reason for change
Decrease in receivables arising from
Notes receivable 14,453,488.81 20,606,778.91 -29.86%
provision of construction services
Accounts receivable 165,767,740.97 108,298,050.40 53.07% Receivables arising from sale of housing
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
and provision of construction services
Other current assets 31,220,302.17 13,358,714.45 133.71% Reclassification of prepaid taxes
Settlement of balance payment for
Accounts payable 88,556,436.28 168,614,299.95 -47.48%
finished product
Non-current liabilities due within Increase in bank loans due within one
54,000,000.00 37,234,933.67 45.03%
one year year
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Because Shenzhen Investment Holdings Co., Ltd., the controlling shareholder of ShenZhen Special
Economic Zone Real Estate & Properties (Group) Co., Ltd. (“SPG” or the “Company”), were
planning a significant event that involved the Company, the Company’s stock (A-stock: stock name:
SPG A, stock code: 000029; B-stock: stock name: SPG B, stock code: 200029) has been suspended
since the opening of September 14, 2016. On September 30, 2016, the Company disclosed the
Announcement on Share Trading Suspension Due to Significant Asset Reorganization (No.
2016-025), and continued the suspension due to major assets reorganization since the market
opening on September 30, 2016.
The Company is organizing relevant intermediaries to conduct supplementary due diligence on the
parties to the reorganization of assets and trading, carry out supplementary audit and evaluation
work, and update the major asset restructuring plan or report (draft) and other relevant documents.
The major assets reorganization of the Company involves state-owned enterprise reform in
Shenzhen with a complex transaction structure. Because the target assets to be acquired are
associated with an industry-leading enterprise of a large size, the intended transaction is considered
a significant, unprecedented event. Thus, it is necessary to communicate with the regulatory
authorities for further discussions, demonstrations and improvement concerning the reorganization
plan. Additionally, due to expiry, the audit report and evaluation report of the target assets need to
be renewed, and the renewed evaluation report also needs to be filed with the state-owned assets
administration, which altogether requires some time. For more information, please see the
Company's subsequent announcements.
During the continued suspension, the Company will keep promoting the work of this major asset
reorganization with parties concerned, paying full attention to the progress of the issue and fulfilling
the obligation of timely information disclosure in strict accordance with the provisions and
requirements of relevant laws and regulations, that is, the Company will disclose the progress of
related matters at least every five trading days.
There is considerable uncertainty for the major assets restructuring prepared by the Company.
Investors are kindly reminded to pay attention to investment risk.
Summary of significant event Disclosure date Index to related announcement
Announcement on Postponed Share Trading Resumption
Significant asset reorganization 10/14/2017 Relating to Significant Asset Reorganization in Planning
disclosed on www.cninfo.com.cn
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of
the current year through the end of the next reporting period, as well as the reasons:
√ Applicable □ Not applicable
Forecast: Significant decrease at the same direction
Type of the forecast data: Interval data
2017 2016 Change
Forecast accumulative net
16,000 -- 21,800 31,150 Decrease 48.64% -- 30.02%
margin (RMB'0,000)
Basic earnings per share
0.1582 -- 0.2155 0.3080 Decrease 48.64% -- 30.03%
(RMB/share)
Note Real estate sales carryforwards decreased in Reporting Period compared to Q3 2016
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
07/18/2017 By phone Individual Inquired of semi-annual operating conditions of the Company, the
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
progress of assets reorganization and the expected relisting time, and
didn’t offer written materials
Inquired of the relisting time of assets reorganization, the estimated
07/28/2017 By phone Individual
disclosed time of semi-annual report, and didn’t offer written materials
Inquired of the progress of assets reorganization and the relisting time,
08/10/2017 By phone Individual
and didn’t offer written materials
Inquired of the progress of assets reorganization and the relisting time,
08/25/2017 By phone Individual
and didn’t offer written materials
Inquired of the progress of assets reorganization and the reason for the
09/13/2017 By phone Individual
postponement of relisting, and didn’t offer written materials
Inquired of the progress of assets reorganization, the operating
09/29/2017 By phone Individual conditions of the Company and the estimated disclosed time of third
quarter report, and didn’t offer written materials
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
1. Outline of Targeted Measures in the Reporting Period
2. List of Targeted Measures of Listed Companies in the Reporting Period
Measurement
Indicator Number/Progress
unit
I. General condition —— ——
II. Itemized investment —— ——
1. Out of poverty by industrial development —— ——
2. Out of poverty by transferring employment —— ——
3. Out of poverty by relocating —— ——
4. Out of poverty by education —— ——
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
5. Out of poverty by improving health —— ——
6. Out of poverty by protecting ecological environment —— ——
7. Subsidy for the poorest —— ——
8. Social poverty alleviation —— ——
9. Other items —— ——
III. Received awards(contents and rank) —— ——
3. Subsequent Targeted Measure Plans
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
September 30, 2017
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 1,057,942,554.74 1,266,057,324.40
Settlement reserve
Interbank lendings
Financial assets at fair value through gains/losses
Derivative financial assets
Notes receivable 14,453,488.81 20,606,778.91
Accounts receivable 165,767,740.97 108,298,050.40
Prepayments 13,703,629.69 15,865,139.33
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable
Dividends receivable 1,052,192.76 1,052,192.76
Other accounts receivable 88,021,593.80 67,514,794.65
Financial assets purchased under agreements to resell
Inventories 1,911,577,458.16 1,734,553,042.10
Assets held for sale
Non-current assets due within one year
Other current assets 31,220,302.17 13,358,714.45
Total current assets 3,283,738,961.10 3,227,306,037.00
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 17,464,240.74 17,464,240.74
Held-to-maturity investments
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Long-term accounts receivable
Long-term equity investments 37,447,267.61 37,447,267.61
Investment property 399,523,239.12 416,227,686.30
Fixed assets 40,967,984.94 45,531,813.41
Construction in progress
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 4,764,525.00 5,146,080.00
R&D expense
Goodwill
Long-term deferred expense 600,744.52 695,720.30
Deferred income tax assets 35,729,926.00 35,781,937.87
Other non-current assets
Total non-current assets 536,497,927.93 558,294,746.23
Total assets 3,820,236,889.03 3,785,600,783.23
Current liabilities:
Short-term borrowings 131,697,522.84 111,709,916.44
Borrowings from Central Bank
Money deposits accepted and inter-bank deposits
Interbank borrowings
Financial liabilities at fair value through gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 88,556,436.28 168,614,299.95
Advances received 278,808,406.35 325,851,112.54
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 26,879,422.81 38,949,995.06
Taxes payable 66,343,322.90 65,765,997.90
Interest payable 16,535,277.94 17,142,210.94
Dividends payable
Other accounts payable 380,693,975.16 358,208,718.03
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year 54,000,000.00 37,234,933.67
Other current liabilities
Total current liabilities 1,043,514,364.28 1,123,477,184.53
Non-current liabilities:
Long-term borrowings 98,000,000.00 136,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable 8,996,594.99 10,156,728.82
Long-term payroll payable
Special payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 106,996,594.99 146,156,728.82
Total liabilities 1,150,510,959.27 1,269,633,913.35
Owners’ equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 978,244,910.11 978,244,910.11
Less: Treasury shares
Other comprehensive income 13,559,786.67 10,652,531.69
Special reserve
Surplus reserve 59,394,668.24 59,394,668.24
Provisions for general risks
Retained earnings 733,491,268.15 583,908,333.05
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Equity attributable to owners of the parent 2,796,350,633.17 2,643,860,443.09
Minority interests -126,624,703.41 -127,893,573.21
Total owners’ equity 2,669,725,929.76 2,515,966,869.88
Total liabilities and owners’ equity 3,820,236,889.03 3,785,600,783.23
Legal representative: Zhou Jianguo Accounting head for this Report: Tang Xiaoping
Head of the accounting department: Qiao Yanjun
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 717,104,701.43 818,261,250.52
Financial assets at fair value through gains/losses
Derivative financial assets
Notes receivable
Accounts receivable 44,515,071.91 7,327,250.98
Prepayments
Interest receivable
Dividends receivable 169,393,952.18
Other accounts receivable 905,005,607.04 844,149,690.07
Inventories 502,249,822.63 538,828,597.52
Assets held for sale
Non-current assets due within one year
Other current assets 18,973,760.44 1,884,516.01
Total current assets 2,357,242,915.63 2,210,451,305.10
Non-current assets:
Available-for-sale financial assets 12,000,000.00 12,000,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 297,461,748.63 297,461,748.63
Investment property 346,767,663.56 360,712,864.13
Fixed assets 24,996,251.06 26,785,752.21
Construction in progress
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 82,800.00 331,200.00
R&D expense
Goodwill
Long-term deferred expense 497,524.14 623,881.08
Deferred income tax assets 3,313,320.43 3,313,320.43
Other non-current assets
Total non-current assets 685,119,307.82 701,228,766.48
Total assets 3,042,362,223.45 2,911,680,071.58
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 17,427,447.26 32,687,289.94
Advances received 93,435.00 96,638,512.60
Payroll payable 12,783,415.49 16,433,909.11
Taxes payable 37,908,568.75 30,504,993.33
Interest payable 16,535,277.94 17,142,210.94
Dividends payable
Other accounts payable 235,859,067.86 232,434,218.15
Liabilities held for sale
Non-current liabilities due within one year 54,000,000.00 37,234,933.67
Other current liabilities
Total current liabilities 374,607,212.30 463,076,067.74
Non-current liabilities:
Long-term borrowings 98,000,000.00 136,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Long-term payroll payable
Special payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 98,000,000.00 136,000,000.00
Total liabilities 472,607,212.30 599,076,067.74
Owners’ equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 978,244,910.11 978,244,910.11
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 36,265,054.83 36,265,054.83
Retained earnings 543,585,046.21 286,434,038.90
Total owners’ equity 2,569,755,011.15 2,312,604,003.84
Total liabilities and owners’ equity 3,042,362,223.45 2,911,680,071.58
3. Consolidated Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 233,287,425.63 646,575,128.32
Including: Net sales 233,287,425.63 646,575,128.32
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 212,356,504.34 510,103,979.66
Including: Cost of sales 191,067,478.03 450,466,369.81
Interest expense
Fee and commission expense
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 6,757,925.61 49,029,822.53
Selling expense 5,549,604.20 3,736,985.23
Administrative expense 8,760,792.21 11,740,962.01
Finance costs 220,704.29 -4,870,159.92
Asset impairment losses
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for losses)
Including: Share of gains/losses of associates and
joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 20,930,921.29 136,471,148.66
Add: Non-operating income 3,210.52 426,147.22
Including: Gains on disposal of non-current assets
Less: Non-operating expense 7,681.58 14,709.01
Including: Losses on disposal of non-current
3,518.85 2,374.95
assets
4. Gross margin (“-” for losses) 20,926,450.23 136,882,586.87
Less: Income tax expense 8,520,281.69 34,747,273.16
5. Net margin (“-” for losses) 12,406,168.54 102,135,313.71
Attributable to owners of the parent 12,356,333.26 102,114,004.00
Attributable to minority interests 49,835.28 21,309.71
6. Other comprehensive income, net of tax 2,101,707.56 -475,668.34
Other comprehensive income, net of tax attributable
1,471,195.30 -332,967.84
to owners of the parent
6.1 Other comprehensive income that will not be
reclassified into gains/losses
6.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of
investees that cannot be reclassified into gains/losses
under equity method
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
6.2 Other comprehensive income to be
1,471,195.30 -332,967.84
subsequently reclassified into gains/losses
6.2.1 Share of other comprehensive income of
investees that will be reclassified into gains/losses under
equity method
6.2.2 Gains/Losses on fair value changes of
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying
held-to-maturity investments into available-for-sale
financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences 1,471,195.30 -332,967.84
6.2.6 Other
Other comprehensive income, net of tax attributable
630,512.26 -142,700.50
to minority interests
7. Total comprehensive income 14,507,876.10 101,659,645.37
Attributable to owners of the parent 13,827,528.56 101,781,036.16
Attributable to minority interests 680,347.54 -121,390.79
8. Earnings per share
8.1 Basic earnings per share 0.0122 0.1009
8.2 Diluted earnings per share 0.0122 0.1009
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Zhou Jianguo Accounting head for this Report: Tang Xiaoping
Head of the accounting department: Qiao Yanjun
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 13,471,349.96 266,626,675.90
Less: Operating expenses 6,307,313.70 155,326,755.18
Taxes and surtaxes 1,612,856.89 29,125,547.39
Selling expense 266,196.50 1,675,287.56
Administrative expense 3,272,107.52 5,434,083.01
Finance costs -2,381,767.73 -4,659,769.98
Asset impairment losses
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for loss)
Including: Share of gains/losses of associates and
joint ventures
Other income
2. Operating margin (“-” for losses) 4,394,643.08 79,724,772.74
Add: Non-operating income
Including: Gains on disposal of non-current assets
Less: Non-operating expense 12,234.00
Including: Losses on disposal of non-current assets
3. Gross margin (“-” for losses) 4,394,643.08 79,712,538.74
Less: Income tax expense 1,873,814.49 19,931,610.08
4. Net margin (“-” for losses) 2,520,828.59 59,780,928.66
5. Other comprehensive income, net of tax
5.1 Other comprehensive income that will not be
reclassified into gains and losses
5.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
5.1.2 Share of other comprehensive income of
investees that cannot be reclassified into gains/losses
under equity method
5.2 Other comprehensive income to be subsequently
reclassified into gains/losses
5.2.1 Share of other comprehensive income of
investees that will be reclassified into gains/losses under
equity method
5.2.2 Gains/Losses on fair value changes of
available-for-sale financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 2,520,828.59 59,780,928.66
7. Earnings per share
7.1 Basic earnings per share 0.0025 0.0591
7.2 Diluted earnings per share 0.0025 0.0591
19
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
5. Consolidated Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 964,594,407.66 1,744,462,098.00
Including: Net sales 964,594,407.66 1,744,462,098.00
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 760,136,084.33 1,432,716,353.04
Including: Cost of sales 686,017,275.92 1,266,493,613.92
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 30,671,236.84 135,398,032.24
Selling expense 12,382,407.96 8,844,726.66
Administrative expense 33,480,030.90 38,698,293.78
Finance costs -2,414,867.29 -11,918,313.56
Asset impairment losses -4,800,000.00
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for losses) 650,000.00 625,209.41
Including: Share of gains/losses of associates and
-63,790.59
joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 205,108,323.33 312,370,954.37
Add: Non-operating income 320,231.95 5,639,605.16
Including: Gains on disposal of non-current assets
Less: Non-operating expense 129,295.37 115,286.41
Including: Losses on disposal of non-current
61,706.41 5,022.45
assets
4. Gross margin (“-” for losses) 205,299,259.91 317,895,273.12
20
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Less: Income tax expense 55,693,421.41 81,031,960.64
5. Net margin (“-” for losses) 149,605,838.50 236,863,312.48
Attributable to owners of the parent 149,582,935.10 236,875,125.51
Attributable to minority interests 22,903.40 -11,813.03
6. Other comprehensive income, net of tax 4,153,221.38 -2,717,649.11
Other comprehensive income, net of tax attributable
2,907,254.98 -1,902,354.38
to owners of the parent
6.1 Other comprehensive income that will not be
reclassified into gains/losses
6.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of
investees that cannot be reclassified into gains/losses
under equity method
6.2 Other comprehensive income to be
2,907,254.98 -1,902,354.38
subsequently reclassified into gains/losses
6.2.1 Share of other comprehensive income of
investees that will be reclassified into gains/losses under
equity method
6.2.2 Gains/Losses on fair value changes of
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying
held-to-maturity investments into available-for-sale
financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences 2,907,254.98 -1,902,354.38
6.2.6 Other
Other comprehensive income, net of tax attributable
1,245,966.40 -815,294.73
to minority interests
7. Total comprehensive income 153,759,059.88 234,145,663.37
Attributable to owners of the parent 152,490,190.08 234,972,771.13
Attributable to minority interests 1,268,869.80 -827,107.76
8. Earnings per share
8.1 Basic earnings per share 0.1479 0.2341
8.2 Diluted earnings per share 0.1479 0.2341
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
6. Parent Company Income Statement for January-September
Unit: RMB
21
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Item January-September 2017 January-September 2016
1. Operating revenue 243,028,509.35 578,764,259.97
Less: Operating expenses 117,577,476.14 335,572,846.36
Taxes and surtaxes 7,458,223.71 62,674,556.43
Selling expense 1,230,781.87 4,064,476.96
Administrative expense 14,566,751.21 18,760,239.38
Finance costs -15,001,382.11 -15,121,347.54
Asset impairment losses -4,800,000.00
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for loss) 170,043,952.18 625,209.41
Including: Share of gains/losses of associates and
-63,790.59
joint ventures
Other income
2. Operating margin (“-” for losses) 287,240,610.71 178,238,697.79
Add: Non-operating income 2.69 5,011,250.72
Including: Gains on disposal of non-current assets
Less: Non-operating expense 12,574.69 31,734.06
Including: Losses on disposal of non-current assets
3. Gross margin (“-” for losses) 287,228,038.71 183,218,214.45
Less: Income tax expense 30,077,031.40 45,659,475.88
4. Net margin (“-” for losses) 257,151,007.31 137,558,738.57
5. Other comprehensive income, net of tax
5.1 Other comprehensive income that will not be
reclassified into gains and losses
5.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
5.1.2 Share of other comprehensive income of
investees that cannot be reclassified into gains/losses
under equity method
5.2 Other comprehensive income to be subsequently
reclassified into gains/losses
5.2.1 Share of other comprehensive income of
investees that will be reclassified into gains/losses under
equity method
5.2.2 Gains/Losses on fair value changes of
available-for-sale financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
22
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 257,151,007.31 137,558,738.57
7. Earnings per share
7.1 Basic earnings per share 0.2542 0.1360
7.2 Diluted earnings per share 0.2542 0.1360
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering
952,036,798.69 1,697,750,778.39
of service
Net increase in money deposits from customers and
interbank placements
Net increase in loans from Central Bank
Net increase in funds borrowed from other financial
institutions
Cash received as premiums of original insurance
contracts
Net cash generated by reinsurance business
Net increase in deposits of policy holders and
investment fund
Net increase in disposal of financial assets at fair value
through gains/losses
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax rebates received
Cash generated by other operating activities 63,746,128.65 141,397,167.24
Subtotal of cash generated by operating activities 1,015,782,927.34 1,839,147,945.63
Cash paid for goods and services 851,439,343.84 829,026,819.30
Net increase in loans and advances to customers
Net increase in funds deposited in Central Bank and
interbank placements
Cash paid for claims of original insurance contracts
23
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 111,403,737.30 110,555,686.90
Taxes paid 137,641,963.40 212,631,127.12
Cash used in other operating activities 115,946,893.92 135,832,545.90
Subtotal of cash used in operating activities 1,216,431,938.46 1,288,046,179.22
Net cash from operating activities -200,649,011.12 551,101,766.41
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 1,376,616.35
Cash received as investment income 650,000.00 689,000.00
Net cash generated by disposal of fixed assets,
14,976.00 5,900.00
intangible assets and other long-term assets
Net cash generated by disposal of subsidiaries or other
7,286,982.00
business units
Cash generated by other investing activities
Subtotal of cash generated by investing activities 9,328,574.35 694,900.00
Cash paid to acquire fixed assets, intangible assets and
684,803.49 836,756.79
other long-term assets
Cash paid for investments
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business
units
Cash used in other investing activities
Subtotal of cash used in investing activities 684,803.49 836,756.79
Net cash from investing activities 8,643,770.86 -141,856.79
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received as borrowings 20,900,000.00 18,000,000.00
Cash generated by issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities 20,900,000.00 18,000,000.00
Repayment of borrowings 32,216,016.22 394,180,434.67
Cash paid for interest expenses and distribution of
7,260,786.99 20,971,086.38
dividends or profit
Including: dividends or profit paid by subsidiaries to
24
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
minority interests
Cash used in other financing activities
Sub-total of cash used in financing activities 39,476,803.21 415,151,521.05
Net cash from financing activities -18,576,803.21 -397,151,521.05
4. Effect of foreign exchange rate changes on cash and
-532,868.23 275,526.59
cash equivalents
5. Net increase in cash and cash equivalents -211,114,911.70 154,083,915.16
Add: Opening balance of cash and cash equivalents 1,265,767,290.57 1,169,756,306.36
6. Closing balance of cash and cash equivalents 1,054,652,378.87 1,323,840,221.52
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering
122,602,887.22 564,947,718.21
of service
Tax rebates received
Cash generated by other operating activities 17,886,514.26 200,849,272.34
Subtotal of cash generated by operating activities 140,489,401.48 765,796,990.55
Cash paid for goods and services 68,730,205.88 79,393,857.65
Cash paid to and for employees 29,550,117.76 28,900,972.17
Taxes paid 61,804,843.80 103,944,998.09
Cash used in other operating activities 61,639,460.72 99,666,579.67
Subtotal of cash used in operating activities 221,724,628.16 311,906,407.58
Net cash from operating activities -81,235,226.68 453,890,582.97
2. Cash generated by or used in investing activities:
Cash generated by disinvestments
Cash received as investment income 650,000.00 689,000.00
Net cash generated by disposal of fixed assets,
intangible assets and other long-term assets
Net cash generated by disposal of subsidiaries or other
7,286,982.00
business units
Cash generated by other investing activities
Subtotal of cash generated by investing activities 7,936,982.00 689,000.00
Cash paid to acquire fixed assets, intangible assets and
112,874.00 38,189.00
other long-term assets
25
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2017
Cash paid for investments
Net cash paid to acquire subsidiaries and other business
units
Cash used in other investing activities
Subtotal of cash used in investing activities 112,874.00 38,189.00
Net cash from investing activities 7,824,108.00 650,811.00
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Cash received as borrowings
Cash generated by issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities
Repayment of borrowings 21,216,016.22 369,180,434.67
Cash paid for interest expenses and distribution of
6,495,933.73 19,969,650.74
dividends or profit
Cash used in other financing activities
Sub-total of cash used in financing activities 27,711,949.95 389,150,085.41
Net cash from financing activities -27,711,949.95 -389,150,085.41
4. Effect of foreign exchange rate changes on cash and
-33,480.46 15,773.98
cash equivalents
5. Net increase in cash and cash equivalents -101,156,549.09 65,407,082.54
Add: Opening balance of cash and cash equivalents 818,261,250.52 852,492,165.42
6. Closing balance of cash and cash equivalents 717,104,701.43 917,899,247.96
II Auditor’s Report
Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.
26
