ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE
& PROPERTIES (GROUP) CO., LTD.
THIRD QUARTER REPORT 2019
2019-075
October 2019
1
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Shenzhen Special Economic Zone Real Estate &
Properties (Group) Co., Ltd. (together with its consolidated subsidiaries, the “Company”,
except where the context otherwise requires) hereby guarantee the factuality, accuracy and
completeness of the contents of this Report and its summary, and shall be jointly and severally
liable for any misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Zhou Jianguo, chairman of the Company’s Board, Chen Maozheng, the Company’s General
Manager, Tang Xiaoping, the Company’s head for financial affairs, and Qiao Yanjun, head of
the Company’s financial department (equivalent to financial manager) hereby guarantee that
the Financial Statements carried in this Report are factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2019 31 December 2018 Change (%)
Total assets (RMB) 5,356,733,785.86 4,665,891,514.25 14.81%
Equity attributable to the listed
3,567,776,133.53 3,332,259,641.39 7.07%
company’s shareholders (RMB)
Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue (RMB) 652,161,755.98 130.78% 1,903,499,558.55 18.96%
Net profit attributable to the listed
106,361,655.99 136.70% 439,517,499.40 17.52%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 105,876,740.20 136.54% 438,722,772.58 17.34%
exceptional items (RMB)
Net cash generated from/used in
-- -- 1,041,915,679.29 56.73%
operating activities (RMB)
Basic earnings per share
0.1051 136.71% 0.4345 17.53%
(RMB/share)
Diluted earnings per share
0.1051 136.71% 0.4345 17.53%
(RMB/share)
Weighted average return on equity
3.08% 1.59% 12.74% 0.33%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of
-8,109.05
impairment allowance write-offs)
Non-operating income and expense other than above 1,067,744.81
Less: Income tax effects 264,908.94
Total 794,726.82 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders 76,443 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Name of Nature of Shareholding Shares in pledge or frozen
Number of shares Restricted shares
shareholder shareholder percentage Status Shares
Shenzhen
State-owned legal
Investment 63.55% 642,884,262
person
Holdings Co., Ltd
Shandong Gold
Financial Holding
Capital
Management Co., Domestic
Ltd. － Shandong non-state-owned 1.02% 10,300,000
Gold Financial legal person
Holding
Sustaining Fund
1
Domestic natural
Lu Zhigao 0.32% 3,246,949
person
Domestic natural
Tan Shiqing 0.13% 1,286,701
person
Domestic natural
Yang Shuilian 0.13% 1,273,700
person
Domestic natural
Yang Jianxiong 0.12% 1,255,750
person
Central Huijin
Asset State-owned legal
0.12% 1,165,500
Management Co., person
Ltd.
Domestic natural
Peng Wei 0.11% 1,129,082
person
4
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Foreign natural
Wu Haoyuan 0.11% 1,109,300
person
Guotai Junan
Foreign legal
Securities (Hong 0.10% 1,015,683
person
Kong) Limited
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
Shenzhen Investment Holdings Co., RMB-denominated
642,884,262 642,884,262
Ltd ordinary stock
Shandong Gold Financial Holding
Capital Management Co., Ltd. － RMB-denominated
10,300,000 10,300,000
Shandong Gold Financial Holding ordinary stock
Sustaining Fund 1
RMB-denominated
Lu Zhigao 3,246,949 3,246,949
ordinary stock
RMB-denominated
Tan Shiqing 1,286,701 1,286,701
ordinary stock
RMB-denominated
Yang Shuilian 1,273,700 1,273,700
ordinary stock
Domestically listed
Yang Jianxiong 1,255,750 1,255,750
foreign stock
Central Huijin Asset Management RMB-denominated
1,165,500 1,165,500
Co., Ltd. ordinary stock
RMB-denominated
Peng Wei 1,129,082 1,129,082
ordinary stock
Domestically listed
Wu Haoyuan 1,109,300 1,109,300
foreign stock
Guotai Junan Securities (Hong Domestically listed
1,015,683 1,015,683
Kong) Limited foreign stock
The Company has found no related parties or acting-in-concert parties as defined in the
Related or acting-in-concert parties
Administrative Measures for Shareholding Changes in Listed Companies among the
among shareholders above
shareholders above.
Top 10 ordinary shareholders
The fourth shareholder holds all his shares in the Company in his accounts of credit. And the
involved in securities margin trading
third shareholder holds some of his shares in the Company in such accounts.
(if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
6
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Part III Significant Events
I Changes in Key Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Key income
Q1~Q3 2019 Q1~Q3 2018 Change (%) Explanation of why
statement items
Operating revenue 1,903,499,558.55 1,600,129,891.28 18.96% Rise in property sales
Taxes and surcharges 582,491,558.12 316,767,417.97 83.89% Withdrawal of taxes
49,974,829.49 41,241,971.51 21.17% Rise in sales agent fees and commissions for
Selling expense
sale
Investment income 13,914,978.88 827,100.00 1,582.38% Rise in wealth management income from
structured deposits
Key cash flow
Q1~Q3 2019 Q1~Q3 2018 Change (%) Explanation of why
statement items
Net cash generated 1,041,915,679.29 664,798,431.71 56.73% Rise in funds returned of property sales
from/used in
operating activities
Net cash generated -388,654,134.68 -599,463,465.47 35.17% Increase/decrease in purchase of six-month
from/used in bank structured deposit
investing activities
Net cash generated -204,332,000.00 -136,127,057.86 -50.10% Payment of 2018 annual dividend
from/used in
financing activities
Key balance sheet
30 September 2019 31 December 2018 Change (%) Explanation of why
items
1,376,743,413.84 6,780,999.56 20,202.96% Purchase of six-month bank structured
Other current assets
deposit of RMB1.3 billion
50,540,833.79 17,260,103.46 192.82% Rise in commercial acceptance bill
Short-term discounting and the use of such bills as
borrowings pledge for loans by Shenzhen Zhentong
Engineering Co., Ltd.
Advances from 409,595,478.21 156,426,152.86 161.85% Rise in property presales
customers
Taxes payable 650,486,840.43 300,547,372.98 116.43% Withdrawal of land VAT
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Since the controlling shareholder of the Company is planning a significant event that involves the
Company, upon the application to the Shenzhen Stock Exchange, trading in the stocks of the
Company (A-stock under the name of “SPG” and the code of “000029”; B-stock under the name of
“SPG-B” and the code of “200029”) was suspended starting from the opening of 14 September
2016. The Company disclosed the Announcement on Share Trading Suspension due to Planning of
Significant Event (No. 2016-022), the Announcement on Continued Share Trading Suspension due
to Planning of Significant Event (No. 2016-023) and the Announcement on Continued Share
Trading Suspension due to Planning of Significant Event (No. 2016-024) on 14 September 2016, 22
September 2016 and 29 September 2016, respectively. Upon ascertainment, the event constituted a
material asset restructuring. The Company disclosed the Announcement on Share Trading
Suspension due to Planning of Major Assets Restructuring (No. 2016-025) on 30 September 2016
and the Announcement on Signing Cooperation Agreement on Restructuring and Listing (No.
2016-027) on 10 October 2016.
The Company convened the 33rd Meeting of the 7th Board of the Directors on 11 November 2016,
which the Proposal on Continued Share Trading Suspension due to Planning of Major Assets
Restructuring was reviewed and approved. For details, see the Announcement on Continued Share
Trading Suspension after Expiration of Period of Share Trading Suspension due to Planning of
Major Assets Restructuring (No. 2016-039) disclosed on 14 November 2016.
The Company convened the 1st Extraordinary General Meeting of 2016 on 12 December 2016, on
which the Proposal on Continued Share Trading Suspension due to Planning of Major Assets
Restructuring was reviewed and approved. For details, see the Announcement on Application for
Continued Share Trading Suspension after Expiration of Period of Share Trading Suspension due
to Planning of Major Assets Restructuring (No. 2016-047) disclosed on 13 December 2016.
The Company held an online illustration meeting to investors on 10 March 2017, communicating
this major assets restructuring with them and answering questions that they were generally
concerned about with the information allowed to be disclosed. For details, see the Announcement on
Online Illustration Meeting to Investors (No. 2017-012) disclosed on 11 March 2017.
To ensure the smooth progress of this major assets restructuring, prevent abnormal fluctuations in
the prices of its stocks and protect the rights and interests of its non-controlling interests, the
Company has applied to the Shenzhen Stock Exchange for continued share trading suspension for
no more than 1 month as of 14 October 2019. For details, see the Announcement on Delay of Share
Trading Resumption due to the Major Assets Restructuring in Planning (No. 2019-069) disclosed
on 14 October 2019.
During the share trading suspension period, the Company shall disclose the progress of this major
assets restructuring at least every five trading days in strict accordance with the requirements of
applicable laws and regulations. At present, this major assets restructuring is proceeding smoothly.
This major assets restructuring is subject to great uncertainty. Therefore, investors are kindly
reminded to pay attention to possible investment risk.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Summary of the significant event Disclosure date Index to the related announcement
Announcement on Delay of Share Trading
Delay of share trading resumption due to Resumption due to the Major Assets
14 October 2019
the major assets restructuring Restructuring in Planning disclosed on
www.cninfo.com.cn
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Type of wealth Outstanding amount
Funding source Principal Overdue amount
management before maturity
Wealth management
product purchased from Idly self-funded 130,000 130,000 0
bank
Total 130,000 130,000 0
High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no
protection of the principal:
□ Applicable √ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Way of Type of
Date communicat communication Index to main information communicated
ion party
Inquired of semi-annual operating conditions of the Company, the
4 July 2019 By phone Individual progress of assets restructuring and the expected time for share trading
resumption, and didn’t offer written materials
Inquired of the progress of assets restructuring and the time for share
24 July 2019 By phone Individual
trading resumption, and didn’t offer written materials
Inquired of the progress of assets restructuring, time for share trading
5 August 2019 By phone Individual resumption, the estimated disclosed time of interim report, and didn’t
offer written materials
Inquired of the progress of assets restructuring and the time for share
12 September 2019 By phone Individual
trading resumption, and didn’t offer written materials
Inquired of the progress of assets restructuring and the time for share
18 September 2019 By phone Individual
trading resumption, and didn’t offer written materials
Inquired of the progress of assets restructuring, the operating conditions
30 September 2019 By phone Individual of the Company and the estimated disclosed time of third quarter report,
and didn’t offer written materials
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
30 September 2019
Unit: RMB
Item 30 September 2019 31 December 2018
Current assets:
Monetary capital 1,596,992,324.87 2,048,522,435.93
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 4,617,431.10 18,166,888.19
Accounts receivable financing 50,540,833.79 15,260,103.46
Prepayments 4,258,825.79 4,177,767.88
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 48,847,322.80 45,018,027.61
Including: Interests receivable 2,453,067.78
Dividends receivable 1,052,192.76 1,052,192.76
Financial assets purchased under
resale agreements
Inventories 1,535,048,270.34 1,685,152,051.26
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Other current assets 1,376,743,413.84 6,780,999.56
Total current assets 4,617,048,422.53 3,823,078,273.89
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 12,561,107.24 12,561,107.24
Investments in other equity
17,464,240.74 17,464,240.74
instruments
Other non-current financial assets
Investment property 606,216,103.06 623,930,838.15
Fixed assets 30,722,640.76 33,926,198.52
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 237,604.04 387,066.91
Deferred income tax assets 72,483,667.49 154,543,788.80
Other non-current assets
Total non-current assets 739,685,363.33 842,813,240.36
Total assets 5,356,733,785.86 4,665,891,514.25
Current liabilities:
Short-term borrowings 50,540,833.79 17,260,103.46
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Notes payable
Accounts payable 102,124,885.10 216,758,906.71
Advances from customers 409,595,478.21 156,426,152.86
Contractual liabilities
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Payroll payable 50,007,436.05 45,836,830.05
Taxes payable 650,486,840.43 300,547,372.98
Other payables 651,191,058.48 721,819,898.48
Including: Interest payable 16,535,277.94 16,535,277.94
Dividends payable
Handling charges and commissions
payable
Reinsurance payable
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,913,946,532.06 1,458,649,264.54
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 7,228,924.42 6,507,139.20
Long-term payroll payable
Provisions
Deferred income
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 7,228,924.42 6,507,139.20
Total liabilities 1,921,175,456.48 1,465,156,403.74
Owners’ equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 978,244,910.11 978,244,910.11
Less: Treasury stock
Other comprehensive income 8,895,378.71 10,564,385.97
Specific reserve
Surplus reserves 95,906,222.59 95,906,222.59
General reserve
Retained earnings 1,473,069,622.12 1,235,884,122.72
Total equity attributable to owners of
3,567,776,133.53 3,332,259,641.39
the Company as the parent
Non-controlling interests -132,217,804.15 -131,524,530.88
Total owners’ equity 3,435,558,329.38 3,200,735,110.51
Total liabilities and owners’ equity 5,356,733,785.86 4,665,891,514.25
Legal representative: Zhou Jianguo Head for financial affairs: Tang Xiaoping
Head of the financial department: Qiao Yanjun
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 September 2019 31 December 2018
Current assets:
Monetary capital 1,115,908,985.50 1,344,486,378.53
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Accounts receivable 4,525,949.25 5,164,795.67
Accounts receivable financing
Prepayments 200,000.00 200,000.00
Other receivables 832,710,786.71 770,374,849.84
Including: Interests receivable 2,380,301.11
Dividends receivable
Inventories 459,920,302.31 543,912,100.37
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 1,300,411,933.22 215,745.41
Total current assets 3,713,677,956.99 2,664,353,869.82
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 235,284,776.57 235,284,776.57
Investments in other equity
12,000,000.00 12,000,000.00
instruments
Other non-current financial assets
Investment property 495,010,020.93 511,040,299.65
Fixed assets 20,120,995.57 21,942,842.11
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 208,098.37 346,015.72
Deferred income tax assets 16,699,980.23 16,699,980.23
Other non-current assets
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Total non-current assets 779,323,871.67 797,313,914.28
Total assets 4,493,001,828.66 3,461,667,784.10
Current liabilities:
Short-term borrowings
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 11,094,133.23 16,743,360.96
Advances from cu 233,432,577.05 22,035,608.45
Contractual liabilities
Payroll payable 27,646,915.84 19,687,728.50
Taxes payable 632,866,442.01 144,621,616.85
Other payables 197,866,802.45 594,392,900.98
Including: Interests payable 16,535,277.94 16,535,277.94
Dividends payable
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,102,906,870.58 797,481,215.74
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
16
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Total non-current liabilities
Total liabilities 1,102,906,870.58 797,481,215.74
Owners’ equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 964,711,931.13 964,711,931.13
Less: Treasury stock
Other comprehensive income
Specific reserve
Surplus reserves 72,776,609.18 72,776,609.18
Retained earnings 1,340,946,417.77 615,038,028.05
Total owners’ equity 3,390,094,958.08 2,664,186,568.36
Total liabilities and owners’ equity 4,493,001,828.66 3,461,667,784.10
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Revenue 652,161,755.98 282,588,259.93
Including: Operating revenue 652,161,755.98 282,588,259.93
Interest income 0.00 0.00
Premium income 0.00 0.00
Handling charge and
0.00 0.00
commission income
2. Operating costs and expenses 508,167,839.25 220,922,105.26
Including: Cost of sales 225,926,024.78 166,327,629.97
Interest expense 0.00 0.00
Handling charge and
0.00 0.00
commission expense
Surrenders 0.00 0.00
Net claims paid 0.00 0.00
Net amount provided as
0.00 0.00
insurance contract reserve
Expenditure on policy
0.00 0.00
dividends
17
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Reinsurance premium
0.00 0.00
expense
Taxes and surcharges 242,162,059.26 39,426,927.21
Selling expense 31,500,769.16 4,074,837.74
Administrative expense 12,335,872.01 12,770,414.32
R&D expense 0.00 0.00
Finance costs -3,756,885.96 -1,677,703.98
Including: Interest
799,841.10
expense
Interest
3,166,663.05 2,555,154.36
income
Add: Other income 0.00 0.00
Investment income (“-” for loss) -373,119.67 0.00
Including: Share of profit or loss
0.00 0.00
of joint ventures and associates
Derecognition income of financial
0.00 0.00
assets measured at amortized cost
Foreign exchange gain (“-” for
-351,902.84 521,899.87
loss)
Net gain on exposure hedges (“-”
0.00 0.00
for loss)
Gain on changes in fair value (“-”
0.00 0.00
for loss)
Credit impairment loss (“-” for
0.00 0.00
loss)
Assets impairment loss (“-” for
0.00 0.00
loss)
Asset disposal income (“-” for
-8,109.05 -19,206.48
loss)
3. Operating profit (“-” for loss) 143,260,785.17 62,168,848.06
Add: Non-operating income 815,092.19 421,906.22
Less: Non-operating expense 107,300.67 151,583.73
4. Profit before tax (“-” for loss) 143,968,576.69 62,439,170.55
Less: Income tax expense 37,567,074.64 17,457,900.83
5. Net profit (“-” for net loss) 106,401,502.05 44,981,269.72
5.1 By operating continuity
5.1.1 Net profit from continuing
106,401,502.05 44,981,269.72
operations (“-” for net loss)
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
5.1.2 Net profit from discontinued
0.00 0.00
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
106,361,655.99 44,934,281.00
owners of the Company as the parent
5.2.2 Net profit attributable to
39,846.06 46,988.72
non-controlling interests
6. Other comprehensive income, net of
-2,506,066.59 -3,127,250.66
tax
Attributable to owners of the Company
-1,754,246.62 -2,189,075.46
as the parent
6.1 Items that will not be
0.00 0.00
reclassified to profit or loss
6.1.1 Changes in net liabilities or
assets caused by remeasurements on 0.00 0.00
defined benefit pension schemes
6.1.2 Share of other
comprehensive income of investees that
0.00 0.00
will not be reclassified to profit or loss
under equity method
6.1.3 Changes in the fair value of
0.00 0.00
investments in other equity instruments
6.1.4 Changes in the fair value of
0.00 0.00
the company’s credit risks
6.1.5 Other 0.00 0.00
6.2 Items that may subsequently be
-1,754,246.62 -2,189,075.46
reclassified to profit or loss
6.2.1 Share of other
comprehensive income of investees that
0.00 0.00
will be reclassified to profit or loss under
equity method
6.2.2 Changes in the fair value of
0.00 0.00
investments in other debt obligations
6.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial 0.00 0.00
assets
6.2.4 Other comprehensive
income arising from the reclassification 0.00 0.00
of financial assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
0.00 0.00
investments to available-for-sale financial
assets
19
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
6.2.6 Allowance for credit
impairments in investments in other debt 0.00 0.00
obligations
6.2.7 Reserve for cash flow
0.00 0.00
hedges
6.2.8 Differences arising from the
translation of foreign
-1,754,246.62 -2,189,075.46
currency-denominated financial
statements
6.2.9 Other 0.00 0.00
Attributable to non-controlling
-751,819.97 -938,175.20
interests
7. Total comprehensive income 103,895,435.46 41,854,019.06
Attributable to owners of the Company
104,607,409.37 42,745,205.54
as the parent
Attributable to non-controlling
-711,973.91 -891,186.48
interests
8. Earnings per share
8.1 Basic earnings per share 0.1051 0.0444
8.2 Diluted earnings per share 0.1051 0.0444
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Zhou Jianguo Head for financial affairs: Tang Xiaoping
Head of the financial department: Qiao Yanjun
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Operating revenue 457,189,896.78 14,863,056.88
Less: Cost of sales 68,196,735.27 6,069,598.33
Taxes and surcharges 230,200,579.16 1,897,242.49
Selling expense 24,802,601.53 456,770.95
Administrative expense 5,178,201.72 3,578,442.56
R&D expense 0.00 0.00
Finance costs -13,883,609.15 -14,104,390.04
Including: Interest expense 434,797.18
Interest income 9,068,023.21 7,303,315.43
20
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Add: Other income 0.00 0.00
Investment income (“-” for loss) -373,119.67 0.00
Including: Share of profit or loss
0.00 0.00
of joint ventures and associates
Derecognition income of
financial assets measured at amortized 0.00 0.00
cost
Net gain on exposure hedges (“-”
0.00 0.00
for loss)
Gain on changes in fair value (“-”
0.00 0.00
for loss)
Credit impairment loss (“-” for
0.00 0.00
loss)
Assets impairment loss (“-” for
0.00 0.00
loss)
Asset disposal income (“-” for
0.00 -13,299.25
loss)
2. Operating profit (“-” for loss) 142,322,268.58 16,952,093.34
Add: Non-operating income 418,858.34 0.04
Less: Non-operating expense 30,000.00 86,700.75
3. Profit before tax (“-” for loss) 142,711,126.92 16,865,392.63
Less: Income tax expense 35,721,721.55 4,252,167.10
4. Net profit (“-” for net loss) 106,989,405.37 12,613,225.53
4.1 Net profit from continuing
106,989,405.37 12,613,225.53
operations (“-” for net loss)
4.2 Net profit from discontinued
0.00 0.00
operations (“-” for net loss)
5. Other comprehensive income, net of
0.00 0.00
tax
5.1 Items that will not be reclassified
0.00 0.00
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by remeasurements on 0.00 0.00
defined benefit pension schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or 0.00 0.00
loss under the equity method
5.1.3 Changes in the fair value of
0.00 0.00
investments in other equity instruments
21
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
5.1.4 Changes in the fair value of
0.00 0.00
the company’s credit risks
5.1.5 Other 0.00 0.00
5.2 Items that may subsequently be
0.00 0.00
reclassified to profit or loss
5.2.1 Share of other
comprehensive income of investees that
0.00 0.00
will be reclassified to profit or loss
under equity method
5.2.2 Changes in the fair value of
0.00 0.00
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial 0.00 0.00
assets
5.2.4 Other comprehensive income
arising from the reclassification of 0.00 0.00
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
0.00 0.00
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other 0.00 0.00
debt obligations
5.2.7 Reserve for cash flow hedges 0.00 0.00
5.2.8 Differences arising from the
translation of foreign
0.00 0.00
currency-denominated financial
statements
5.2.9 Other 0.00 0.00
6. Total comprehensive income 106,989,405.37 12,613,225.53
7. Earnings per share
7.1 Basic earnings per share 0.1058 0.0125
7.2 Diluted earnings per share 0.1058 0.0125
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Revenue 1,903,499,558.55 1,600,129,891.28
Including: Operating revenue 1,903,499,558.55 1,600,129,891.28
22
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Interest income
Premium income
Handling charge and
commission income
2. Operating costs and expenses 1,328,285,886.90 1,098,971,752.95
Including: Cost of sales 663,054,001.03 706,745,121.38
Interest expense
Handling charge and
commission expense
Surrenders
Net claims paid
Net amount provided as
policy reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 582,491,558.12 316,767,417.97
Selling expense 49,974,829.49 41,241,971.51
Administrative expense 43,148,643.34 44,506,615.17
R&D expense
Finance costs -10,383,145.08 -10,289,373.08
Including: Interest
3,817,172.20
expense
Interest
10,790,216.10 14,324,520.82
income
Add: Other income
Investment income (“-” for loss) 13,914,978.88 827,100.00
Including: Share of profit or loss
of joint ventures and associates
Derecognition income of
financial assets measured at amortized
cost
Foreign exchange gain (“-” for
-351,902.84 521,899.87
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
23
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
for loss)
Credit impairment loss (“-” for
loss)
Assets impairment loss (“-” for
loss)
Asset disposal income (“-” for
-8,109.05 -19,206.48
loss)
3. Operating profit (“-” for loss) 588,768,638.64 502,487,931.72
Add: Non-operating income 1,178,801.30 517,741.45
Less: Non-operating expense 111,056.49 351,137.06
4. Profit before tax (“-” for loss) 589,836,383.45 502,654,536.11
Less: Income tax expense 150,296,868.50 128,627,618.11
5. Net profit (“-” for net loss) 439,539,514.95 374,026,918.00
5.1 By operating continuity (“-” for net
loss)
5.1.1 Net profit from continuing
439,539,514.95 374,026,918.00
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
439,517,499.40 374,000,365.53
owners of the Company as the parent
5.2 2. Net profit attributable to
22,015.55 26,552.47
non-controlling interests
6. Other comprehensive income, net of
-2,384,296.08 -3,821,947.76
tax
Attributable to owners of the Company
-1,669,007.26 -2,675,363.43
as the parent
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
6.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
6.1.3 Changes in the fair value of
investments in other equity instruments
24
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
6.1.4 Changes in the fair value of
the company’s credit risks
6.1.5 Other
6.2 Items that may subsequently be
-1,669,007.26 -2,675,363.43
reclassified to profit or loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in fair
value of available-for-sale financial
assets
6.2.4. Other comprehensive
income arising from the reclassification
of financial assets
6.2.5 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.6 Allowance for credit
impairments in investments in other debt
obligations
6.2.7 Reserve for cash flow
hedges
6.2.8 Differences arising from
translation of foreign
-1,669,007.26 -2,675,363.43
currency-denominated financial
statements
6.2.9 Other
Attributable to non-controlling
-715,288.82 -1,146,584.33
interests
7. Total comprehensive income 437,155,218.87 370,204,970.24
Attributable to owners of the Company
437,848,492.14 371,325,002.10
as the parent
Attributable to non-controlling
-693,273.27 -1,120,031.86
interests
8. Earnings per share
8.1 Basic earnings per share 0.4345 0.3697
8.2 Diluted earnings per share 0.4345 0.3697
25
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Zhou Jianguo Head for financial affairs: Tang Xiaoping
Head of the financial department: Qiao Yanjun
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating revenue 1,285,592,972.89 44,850,524.39
Less: Cost of sales 193,563,436.58 18,653,268.07
Taxes and surcharges 535,792,470.89 5,552,046.60
Selling expense 37,021,750.96 1,364,929.87
Administrative expense 18,171,868.82 14,472,955.77
R&D expense
Finance costs -30,376,728.80 -37,598,949.66
Including: Interest expense 2,163,250.22
Interest income 26,525,418.74 31,630,411.09
Add: Other income
Investment income (“-” for loss) 532,615,110.52 827,100.00
Including: Share of profit or
loss of joint ventures and associates
Derecognition income of
financial assets measured at amortized
cost
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss)
Credit impairment loss (“-” for
loss)
Assets impairment loss (“-” for
loss)
Asset disposal income (“-” for
-13,299.25
loss)
2. Operating profit (“-” for loss) 1,064,035,284.96 43,220,074.49
26
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Add: Non-operating income 548,037.48 34,352.63
Less: Non-operating expense 30,000.00 230,000.00
3. Profit before tax (“-” for loss) 1,064,553,322.44 43,024,427.12
Less: Income tax expense 136,312,932.72 10,590,853.86
4. Net profit (“-” for net loss) 928,240,389.72 32,433,573.26
4.1 Net profit from continuing
928,240,389.72 32,433,573.26
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
5.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
5.1.3 Changes in the fair value of
investments in other debt obligations
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
5.2 Items that may subsequently be
reclassified to profit or loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified to profit or loss
under equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in fair
value of available-for-sale financial
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from
27
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 928,240,389.72 32,433,573.26
7. Earnings per share
7.1 Basic earnings per share 0.9175 0.0321
7.2 Diluted earnings per share 0.9175 0.0321
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
2,212,532,294.20 1,605,041,920.88
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
28
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
Net proceeds from acting trading of
securities
Tax rebates 39,473.00 76,431.00
Cash generated from other operating
62,546,726.84 59,337,154.87
activities
Subtotal of cash generated from
2,275,118,494.04 1,664,455,506.75
operating activities
Payments for commodities and
503,898,254.63 558,011,313.21
services
Net increase in loans and advances to
customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 106,766,698.72 97,813,296.51
Taxes paid 522,837,883.22 241,207,281.47
Cash used in other operating
99,699,978.18 102,625,183.85
activities
Subtotal of cash used in operating
1,233,202,814.75 999,657,075.04
activities
Net cash generated from/used in
1,041,915,679.29 664,798,431.71
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 900,000,000.00
Investment income 11,365,734.25 827,100.00
Net proceeds from disposal of fixed
assets, intangible assets and other 118,900.00
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
911,484,634.25 827,100.00
investing activities
Payments for acquisition of fixed 138,768.93 290,565.47
29
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
assets, intangible assets and other
long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
1,300,000,000.00 600,000,000.00
activities
Subtotal of cash used in investing
1,300,138,768.93 600,290,565.47
activities
Net cash generated from/used in
-388,654,134.68 -599,463,465.47
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Increase in borrowings obtained 2,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
0.00 2,000,000.00
financing activities
Repayment of borrowings 2,000,000.00 135,786,600.00
Payments for interest and dividends 202,332,000.00 2,340,457.86
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
204,332,000.00 138,127,057.86
activities
Net cash generated from/used in
-204,332,000.00 -136,127,057.86
financing activities
4. Effect of foreign exchange rate
-459,655.67 366,593.43
changes on cash and cash equivalents
5. Net increase in cash and cash
448,469,888.94 -70,425,498.19
equivalents
Add: Cash and cash equivalents,
1,148,522,435.93 1,265,767,290.57
beginning of the period
6. Cash and cash equivalents, end of the
1,596,992,324.87 1,195,341,792.38
period
30
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,469,696,209.60 50,519,310.84
and rendering of services
Tax rebates 39,473.00 76,431.00
Cash generated from other operating
29,139,180.19 558,131,067.59
activities
Subtotal of cash generated from
1,498,874,862.79 608,726,809.43
operating activities
Payments for commodities and
76,648,788.23 98,788,937.22
services
Cash paid to and for employees 27,909,601.83 23,664,067.51
Taxes paid 258,333,159.45 19,277,387.12
Cash used in other operating
4,324,652.42 49,597,541.55
activities
Subtotal of cash used in operating
367,216,201.93 191,327,933.40
activities
Net cash generated from/used in
1,131,658,660.86 417,398,876.03
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 900,000,000.00
Investment income 142,838,563.97 827,100.00
Net proceeds from disposal of fixed
assets, intangible assets and other
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
1,042,838,563.97 827,100.00
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 65,810.00 119,374.00
long-lived assets
Payments for investments
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing 1,300,000,000.00 600,000,000.00
31
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
activities
Subtotal of cash used in investing
1,300,065,810.00 600,119,374.00
activities
Net cash generated from/used in
-257,227,246.03 -599,292,274.00
investing activities
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings 114,886,600.00
Payments for interest and dividends 202,332,000.00 1,883,272.84
Cash used in other financing
activities
Subtotal of cash used in financing
202,332,000.00 116,769,872.84
activities
Net cash generated from/used in
-202,332,000.00 -116,769,872.84
financing activities
4. Effect of foreign exchange rate
-676,807.86 -13,487.07
changes on cash and cash equivalents
5. Net increase in cash and cash
671,422,606.97 -298,676,757.88
equivalents
Add: Cash and cash equivalents,
444,486,378.53 726,801,673.89
beginning of the period
6. Cash and cash equivalents, end of the
1,115,908,985.50 428,124,916.01
period
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Execution of any New Standards
Governing Financial Instruments, Revenue or Leases from 2019
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the Execution of any New Standards
Governing Financial Instruments or Leases from 2019
□ Applicable √ Not applicable
32
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2019
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
33
