Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Stock code: 000011, 200011 Stock abbreviation: SWYA, SWYB Announcement No.:2013-2
Abstract of the 2012 Annual Report of Shenzhen Properties & Resources
Development (Group) Ltd.
1. Important notes
This abstract is based on the full text of the annual report. For more details, investors are suggested to read the full text disclosed at
the same time with this abstract on the website of Shenzhen Stock Exchange or any other website designated by CSRC.
Company profile:
Stock abbreviation SWYA, SWYB Stock code 000011, 200011
Stock exchange listed with Shenzhen Stock Exchange
For contact Company Secretary Securities Affairs Representative
Name Fan Weiping
Qian Zhong, Huang Fengchun
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610, 82212043 0755-82210610, 82212043
E-mail 000011touzizhe@163.com 000011touzizhe@163.com
2. Financial highlights and change of shareholders
（1）Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
Increase or
decrease of this
2011 2010
year over last
2012 year (%)
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Operating revenues (RMB 1,861,298,830. 1,408,565,307. 1,430,211,933. 1,016,389,026.
30.14% 993,175,350.38
Yuan) 99 32 75 19
Net profit attributable to
shareholders of the Company 375,422,129.64 257,461,077.54 261,108,340.62 43.78% 174,998,534.79 176,701,254.63
(RMB Yuan)
Net profit attributable to
shareholders of the Company
337,545,206.86 257,538,768.66 257,538,768.66 31.07% 160,273,095.99 160,273,095.99
after extraordinary gains and
losses (RMB Yuan)
Net cash flows from operating -361,467,587.7 -354,083,921.1 -101,778,470.6
805,714,197.38 327.55% -92,901,678.94
activities (RMB Yuan) 0 3 4
Basic EPS (RMB Yuan/share) 0.6299 0.432 0.4381 43.78% 0.2936 0.2965
Diluted EPS (RMB Yuan/share) 0.6299 0.432 0.4381 43.78% 0.2936 0.2965
Weighted average ROE (%) 28.43% 25.67% 25.79% 2.64% 23.27% 23.28%
Increase or
As at 31 Dec. decrease of this
As at 31 Dec. 2011 As at 31 Dec. 2010
2012 year-end than
last year-end
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Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(%)
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
4,006,705,938. 3,499,608,314. 3,552,025,374. 2,913,281,353. 2,982,006,967.
Total assets (RMB Yuan) 12.8%
73 21 73 84 39
Net assets attributable to
1,502,852,915. 1,130,243,873. 1,141,460,658.
shareholders of the Company 31.66% 874,185,621.88 881,777,845.08
53 92 78
(RMB Yuan)
（2） Shareholdings of the top 10 shareholders
Total number of shareholders at
Total number of shareholders at the end of the fifth trading day
45,928
the end of the reporting period before the disclosure date of the
annual report
Shareholdings of the top 10 shareholders
Total shares Pledged or frozen shares
Name of Nature of Shareholding
held at the Number of restricted shares held Status of Number of
shareholder shareholder percentage (%)
period-end shares shares
SHENZHEN
CONSTRUC
TION
State-owned
INVESTME 54.33% 323,783,371 323,783,371 0
corporation
NT
HOLDINGS
COMPANY
SHENZHEN
INVESTME
NT
State-owned
MANAGEM 9.49% 56,582,573 56,582,573 0
corporation
ENT
CORPORATI
ON
SHENZHEN
GUO MAO
CENTER
State-owned
PROPERTY 0.42% 2,514,781 0
corporation
MANAGER
MENT
COMPANY
Non-state-ow
SHENZHEN
ned
DUTY-FREE
corporation 0.29% 1,730,300 1,730,300 0
COMMODIT
from inside
Y CO., LTD.
China
GUOSEN
SECURITIES
-CLIENT Non-state-ow
CREDIT ned
COLLATER corporation 0.23% 1,387,000 0
AL from inside
SECURITIES China
TRADING
ACCOUNT
2
Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Domestic
WU
natural 0.2% 1,193,300 0
XUELING
person
CHINA
MERCHANT
S
SECURITIES
-CLIENT Non-state-ow
CREDIT ned
COLLATER corporation 0.19% 1,164,604 0
AL from inside
SECURITIES China
TRADING
ACCOUNT
Domestic
CHEN
natural 0.17% 1,007,151 0
LIYING
person
Domestic
LONG KEYI natural 0.17% 1,000,011 0
person
GUOTAI
JUNAN
Foreign legal
SECURITIES 0.16% 932,304 0
person
(HONGKON
G) LIMITED
（3）Relation between the Company and its actual controller in the form of diagram
State-owned Assets Supervision and
Administration Commission of Shenzhen
100%
100%
Shenzhen Investment Holdings Co., Ltd.
63.82%
The Company
（（
70.2%
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Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
3. Discussion and analysis by the management
I. Overview
In 2012, the central government made clearer the real estate macro-control concept of “protect rational demand for
residence purpose and restrain demand for speculative investment purpose”. It continued to carry out policies such
as differential credit and limited housing purchase in a strict manner. Many cities in the country adjusted their
housing reserve funds mechanisms and increased the first house credit line to meet rational demands. In the year,
the central bank decreased the deposit reserve rate and the interest rate twice. The said policies resulted in an
obvious “down and then up” trend in the real estate market. The first-hand commercial house turnover of major
cities in China picked up in the second half of the year from both the same period of last year and the first half of
the year. De-inventory of real estate enterprises accelerated and major enterprises excellently fulfilled their sales
amount and area goals, with their capital status improving significantly. As a result, the second half of the year
saw a heat-up of the land market, with investment growth in real estate development gradually picking up.
In view of the heat-up in some regional real estate markets at the end of 2012 and in the beginning of 2013, the
central government unveiled in Feb. 2013 the “new five real estate macro-control measures of the State Council”,
fully indicating its determination to maintain stability of house prices through policy. As local governments unveil
their specific implementation measures, new effects will take place in the market. The Company will pay close
attention to the effects of relevant policies on the market, attach importance to the ability to manage multiple real
estate projects and focus on improving the project development and management capability. At the same time, it
will also emphasize building of the “SZPRD” brand and effectively enhance its ability to resist risks.
II. Main business analysis
1. Overview
For the reporting year, the Company achieved operating revenues of RMB 1,861,298,800, up 30.14% over last
year; operating profit of RMB 485,398,200, up 41.07% on a year-on-year basis; total profit of RMB 487,048,100,
up 42.01% from last year; and net profit of RMB 374,822,200, up 44.14% over last year.
The operating revenues, operating profit, total profit and net profit increased considerably mainly because the real
estate income rose significantly.
2. Revenues, costs and expense
(1) Revenues
The Company specializes in real estate development, with taxi transportation service, property management,
house leasing, etc. as its sidelines. In 2012, the revenue generated from the main business reached RMB
1,827,263,100, representing a year-on-year growth of 30.59%; and gross profit of the main business reached RMB
993,371,300.
The sales income from the top five customers reached RMB 326,371,800, accounting for 17.86% of the main
business income.
(2) Costs
Real estate development and operation is the core business of the Company. When developing a project, the
Company chooses the general contractor or the design institution in the form of open bidding in the government’s
relevant construction engineering trading service center according to bidding laws and regulations of China and
the project location. For general contracting, the contractor shall purchase main construction materials, and the
Company is responsible for procurement for the marketing center on site, sample house decoration, external
landscaping, some engineering design, etc. The above-mentioned bidding or procurement projects shall be carried
out and the contractors shall be determined according to the bidding administrative rules of the Company. The
procurement from the top five suppliers totaled RMB 50.55 million for the year, accounting for 53.8% of the total
procurement.
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Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3) Expense
Selling expenses:
Unit: RMB’000
Name of expenses 2012 2011 YoY +/-%
Selling expenses 43,951.17 32,792.29 34.03%
The projects for sale increased, causing a considerable growth of the selling expenses, but the sales expenses/sales
income ratio remained basically unchanged.
III. Breakdown of main business
(1) Breakdown of the operating revenues and profit classified by industry and product
Unit: RMB’000
Operating revenues Operating costs Gross profit rate
Industry Profit rate
Amount YoY +/-% Amount YoY +/-% YoY +/-%
(%)
Real estate development 1,429,818.41 37.48 529,936.88 86.91 62.94 -9.80
Property management and 284,730.88 13.96 240,033.56 7.26 15.70 5.26
house leasing
Taxi service 71,332.14 -1.58 36,881.84 14.03 48.30 -7.08
Catering service 25,909.85 16.43 21,782.44 21.08 15.93 -3.23
Other 15,471.78 5.62 5,257.05 45.43 66.02 -9.30
Note: “Other” refers to engineering supervision, car repair, elevator maintenance, etc.
The real estate operating revenue increased by 37.48% over last year, which was mainly because the
carried-forward income from real estate increased. The gross profit rate of real estate development went down by
9.8% over last year, which was mainly because the carried-forward gross profit rate of some real estate projects
decreased. The gross profit rate of property management and house leasing went up mainly because the house
leasing rate and rents both increased. Due to rising costs, the gross profit rate of taxi service decreased to some
extent.
(2) Classified by region, 93.8% main operating revenues came from Shenzhen.
Unit: RMB’000
Region Operating revenue YoY +/-%
Shenzhen 1,714,040.96 32.32%
Other regions 113,222.11 9.08%
Total 1,827,263.07 30.59%
IV. Core competitiveness analysis
In face of a complex and changeable real estate market, the Company was honored as one of the “Top 100 Real
Estate Listed Companies of China for 2012” in the year. Meanwhile, Building No. 21 of SZPRDShengang No. 1
and SZPRDLangqiao International helped the Company win the best project award in the first “Golden Building
Awards” of Shenzhen and some other honors. The size and profitability of the Company keep increasing because
the existing Shenzhen projects have a great value due to low costs for land and the position in the core of the city;
and the Company has been carrying out the fine product strategy in recent years with highly-positioned
development projects, excellent product quality and an increasingly recognized brand image. In the coming future,
the Company will continue to adhere to the development philosophy of “Quality Property, Quality Life”, keep
increasing the management and operation capability, build up high-end products, better the brand, and cultivate
and improve the core competitiveness.
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Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
V. Investment analysis
1. Analysis to main subsidiaries and stock-participating companies
Unit: RMB Yuan
Operating Operating
Main Total assets Net assets
Company Company Registered revenues profit Net profit
Industry products/ser (RMB (RMB
name variety capital (RMB (RMB (RMB Yuan)
vices Yuan) Yuan)
Yuan) Yuan)
Constructio
n, operation
and
Shenzhen
managemen
Huangchen
t of 1,937,161,3 490,463,07 1,375,285,5 458,707,1 345,045,448.
g Real Subsidiary Real estate 30,000
developmen 66.63 1.30 06.24 50.73 06
Estate Co.,
t facilities
Ltd.
at
Huanggang
Port
SZPRD
Developme
Real Estates 697,633,47 99,418,957. 99,259,652. 28,239,58 21,116,343.1
Subsidiary Real estate nt of real 30,950
Developme 4.81 23 00 6.14 0
estate
nt Co., Ltd.
The operating profit and net profit of Shenzhen Huangcheng Real Estate Co., Ltd. increased significantly due to
the considerable growth of the real estate sales income. And the profit was turned in, so net assets remained
almost the same.
2. Significant projects invested with non-raised funds
The Company did not raise funds in the reporting period or used funds raised previously. Significant projects
invested with non-raised funds, as well as their progress and earnings, are as follows:
Unit: RMB’000
Estimated total Input for this Cumulative actual
Project name Project progress Project earnings
investment year input
SZPRD-Langqiao
Construction has
International (Langqiao 514,170 174,290.67 578,370.68 ——
been completed.
Residence)
SZPRD-Caitianyise Construction was
170,000 65,946.53 176,094.49 about to come to ——
an end.
SZPRD-Banshanyujing
(first and second phases) 793,000 118,824.78 346,397.12 In construction ——
SZPRD-Songhulangyuan
(previously land in 687,110 10,741.25 234,982.86 In construction ——
Dalang, Dongguan)
SZPRD-Jinling Holiday
(previously land in 3,494.63 65,492.62 In preparation ——
Huanggang Port)
SZPRD-West Lake
Wonder (land in 185,849.14 621,738.94 In preparation ——
Yangzhou)
SZPRD-Blue Bay (land
906.38 272,210.75 In preparation ——
in the Moon Bay)
Total 560,053.38 2,295,287.46 ——
Note: All the above were real estate development projects.
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Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
VI. Outlook of the Company’s future development
1. Countermeasures against risks
(1) About policy risks
In 2013, the macro-control policies such as “limited purchase” will carry on and be further enhanced. Local
governments’ specific implementation rules of the “five real estate macro-control measures of the State Council”
will impose more requirements on differential credit, real estate tax, pre-sale management of commercial houses,
etc. This round of real estate macro-control will extend to the trading of second-hand houses, producing both
short-term and long-term effects on the market. As such, the market in 2013 is full of uncertainties.
The Company will attach great importance to studying the policy trend, enhance analysis on the specified policies
for the project locations, analyze possible market changes in depth and formulate development and marketing
strategies for all projects with the big picture in mind and within the framework of the annual goals.
(2) About financial risks
In the year, the central bank decreased the deposit reserve rate and the interest rate twice, giving some credit relief.
Despite a market recovery at the end of 2012, the policy of “limited purchase and credit” is still strict in 2013 and
the financing channels of real estate enterprises are greatly restrained. As such, the market uncertainties in 2013
may impose risks on the sales and capital inflow of the Company.
The Company will strengthen financial risk control and beef up capital inflow from project sale; activate the
existing assets and expand financing channels for more capital support; and enhance financial management and
stick to the management mode of “capital pool” within the Group to maximize the capital effects.
(3) About operating risks
① Operation risks
The real estate macro-control measures such as limited purchase and credit, mass construction of houses for
low-income people, etc. in recent years have objectively and relatively narrowed the market space, causing a shift
from an extensive to an intensive competition in the sector. With a bigger size, leading enterprises are gaining
more and more advantages in terms of financing, investment, risk resistance, etc. while small-and medium-sized
enterprises are facing fiercer competition.
The Company has always kept a clear mind in dealing with pressure from competition. It enhances the main
operation capability of real estate, accelerates the turnover of project development and makes full use of
re-investment to achieve snowball-style development. In order to ensure a sustainable development, the Company
will keep an eye on Shenzhen and its surroundings, Xuzhou, Yangzhou and other target land. Upon in-depth study
and analysis, the Company will increase its land reserve properly so as to expand the development scale.
Meanwhile, development and accumulation over a long time has given the Company excellent fundamentals. And
it will enhance its study on the capital market under the current conditions to look for opportunities to increase its
overall strength.
② Management risks
A good corporate management is an important guarantee for performance stability and financial security. Affected
by the real estate macro-control, the current operating environment in the sector is complex and changeable.
Along with more and more development projects, projects outside Shenzhen in particular, it is increasingly
complicated for the Company to manage. In 2012, the Company achieved outstanding progress in improving and
standardizing real estate development management, internal control & risk management, corporate culture
management, etc. In 2013, the Company will continue to improve all the management mechanisms; focus on the
formulation and execution of a brochure for real estate development; optimize the organizational, operation and
process management of the main business of real estate; and effectively enhance control over all projects.
2. Plans for 2013
For 2013, the Company plans to achieve main operating revenues of RMB 1.58 billion with the period expense
and cost at RMB 870 million. The Company will stabilize the sideline operation with increasing profitability as
the core, enhance scientific management, and strengthen mechanisms for risk control and internal control. It will
also build a professional and competitive team, cultivate a corporate culture of “be the first and reform for
growth”, and try to achieve a quality and steady growth, as well as a sustained overall development. The
Company will focus on the following tasks in 2013:
(1) With the fine product strategy as the core, the Company will try to achieve a sustained and sound growth of
the main business of real estate. On the basis of standardizing real estate development mechanisms and processes,
the Company will work on high-quality buildings, promote the brand image of “Quality Property, Quality Life”,
beef up the construction progress of all projects, input great efforts for the engineering quality, and improve
customer service for projects on sale. Meanwhile, it will enhance study on the government’s macro-economic
policies, analyze the real estate market policies in a scientific way, optimize its real estate development strategies,
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Abstract of the 2012 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
improve the market-oriented operation of the main business of real estate, keep an eye on the land markets of the
second-and third-tier cities in the country, and increase its land reserve properly.
(2) The Company will improve management measures to enhance its scientific management capability. With the
“Real Estate Brochure” as the basis and project management as the core, the Company specifies the power &
responsibility mechanism and the management scope for real estate development, improves management
measures for all projects, specifies working standards and standardizes working processes. At the same time, it
completes the management mechanisms for financial affairs, personnel, business, etc. of its real estate subsidiaries
outside Shenzhen; builds up a data base of qualified suppliers; improves the post-project appraisal mechanism;
and keeps increasing its real estate development and management capability.
(3) The Company will promote and implement its cultural philosophy and make innovations of its corporate
culture. With its corporate culture brochure and employees’ brochure as the foundation, the Company standardizes
behaviors of its employees, promotes pragmatism and efficiency among them, and encourages reform and
innovation. These will bring the philosophy of modern corporate management into minds of the employees,
enable the spirit of “be the first and reform for growth” to enter all sectors of the Company, and thus enable the
Company to enter a new stage of corporate culture development.
3. Particulars about demand for capital, plan for capital use and capital source
In the year 2013, it is expected that over RMB 660 million is needed for the construction in-progress of the
Company. In order to ensure the capital supply and satisfy the need of the business development, the Company
intends to solve the capital issue by more bank loans, the payment by customers for the real estate sold, etc.
4. Matters related to financial reporting
(1) Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year
N/A
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
N/A
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
See “Section X. Financial Report; VI. Business Combination and Consolidated Financial Statements; 2, 3 and 4”
of the 2012 Annual Report.
8
