Abstract of the 2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Stock code: 000011, 200011 Stock abbreviation: SWYA, SWYB Announcement No.:
Shenzhen Properties & Resources Development (Group) Ltd.
Abstract of the 2013 Semi-annual Report
1. Important reminders
（1）
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text
disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Sazhen Stock Exchange or any other
website designated by CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version
shall prevail.
（2）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?
□ Yes √ No
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB Yuan) 1,348,194,107.29 624,520,270.29 115.88%
Net profit attributable to shareholders of
353,600,992.81 98,686,285.22 258.31%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 352,385,400.43 59,483,485.20 492.41%
losses (RMB Yuan)
Net cash flows from operating activities
126,636,956.08 336,111,486.60 -62.32%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.5933 0.1656 258.27%
Diluted EPS (RMB Yuan/share) 0.5933 0.1656 258.27%
Weighted average ROE (%) 21.06% 8.33% 12.73%
As at the end of the
As at the end of last year YoY +/-（％）
reporting period
Total assets (RMB Yuan) 3,775,786,956.00 4,006,705,938.73 -5.76%
Net assets attributable to shareholders of
1,855,749,628.63 1,502,852,915.53 23.48%
the Company (RMB Yuan)
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Abstract of the 2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
（2） Shareholdings of the top 10 shareholders
Total number of shareholders at
44,213
the end of the reporting period
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
CONSTRUCTI
ON
State-owned
INVESTMENT 54.33% 323,783,371 293,984,417
corporation
HOLDINGS
CORPORATIO
N
SHENZHEN
INVESTMENT
MANAGEMEN State-owned
9.49% 56,582,573 56,582,573
T corporation
CORPORATIO
N
SHENZHEN
GUOMAO
State-owned
PROPERTY 0.42% 2,514,781 0
corporation
MANAGERME
NT CO., LTD.
SHENZHEN
DUTY-FREE Domestic
COMMODITY non-state-owne 0.29% 1,730,300 1,730,300
ENTERPRISES d corporation
CO., LTD.
Domestic
YU XILIN 0.28% 1,678,522 0
natural person
Domestic
XU YIHONG 0.25% 1,516,480 0
natural person
CLIENT
CREDIT
COLLATERAL
SECURITIES Domestic
TRADING non-state-owne 0.23% 1,398,345 0
ACCOUNT OF d corporation
GUOSEN
SECURITIES
CO., LTD.
Domestic
LONG KEYI 0.22% 1,301,700 0
natural person
BQ DE A/C
REYL (LUX)
GLOBAL Foreign
0.2% 1,215,176 0
FUNDS corporation
EMERGING
MARKETS EQ
Domestic
CHEN LIYING 0.17% 1,036,051 0
natural person
Explanation on associated The first and second principal shareholders of the Company are managed by Shenzhen
relationship or/and persons acting Investment Holding Corporation, the actual controlling shareholder of the Company. And the
in concert among the third principal shareholder is a wholly-funded subsidiary of the Company. Other than that, it is
above-mentioned shareholders: unknown whether the remaining 7 shareholders are related parties or acting-in-concert parties.
Shareholders taking part in Naught
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Abstract of the 2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
margin financing and securities
lending (if any)
（3）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
3. Discussion and analysis by the management
I. Main business analysis
1. Overview
The Company specializes in real estate development, with property management, house leasing, taxi
transportation service, catering service, etc. as its sidelines. For the reporting period, the Company achieved
operating revenues of RMB 1,348.19 million, operating profit of RMB 459.10 million and net profit of RMB
353.60 million, up 115.88%, 263.43% and 258.31% respectively on the year-on-year basis. And the net profit
attributable to shareholders of the Company (with subsidiaries) stood at RMB 353.60 million.
2. Revenues
The main business income stood at RMB 1,333.14 million, up 131.69% over the same period of last year, with the
main business cost being RMB 547.75 million, up 47.93% on the year-on-year basis, of which the real estate
income stood at RMB 1,141.14 million, with the corresponding cost being RMB 408.04 million.
Operating revenues, operating profit and net profit all registered considerable growth mainly because the first half
of the year saw the completion of a real estate project, from which a lot of house presale amounts met the
conditions to be carried over into income, and the house sales of other projects also increased.
Major customers:
Total sales to the top 5 customers (RMB Yuan): 15,737.23
Ratio of the total sales to the top 5 customers to the annual total sales (%):11.67%
Information about the top 5 customers:
Serial No. Name of customer Sales (RMB Yuan) Proportion in semi-annual total sales (%)
1 Natural person 76,060,000.00 5.64%
2 Natural person 42,601,400.00 3.16%
3 Huawei Technologies Co., 21,361,243.06 1.58%
Ltd.
4 Natural person 9,872,798.00 0.73%
5 Natural person 7,476,898.00 0.55%
Total 157,372,239.06 11.67%
3. Costs
Real estate development and operation is the core business of the Company. When developing a project, the
Company chooses the general contractor and the architectural design institution in the form of open bidding in the
government’s relevant construction engineering trading service center according to the administrative regulations
of China and the project location. The Company is responsible for procurement for the marketing center on site,
sample house decoration, external landscaping, fire protection, gas and some other professional engineering
projects and 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 and the
project location. A market competition mechanism is brought in via bidding to lower the construction costs,
rationally control the project costs and realize better business results.
For the first half of the year, the procurement from the top five suppliers totaled RMB 558.63 million, accounting
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Abstract of the 2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
for 98% of the total procurement.
Major Suppliers for the First Half of 2013
No. Procurement/bidding Supplier/successful tenderer Procurement amount
(RMB Yuan)
1 General contracting of the Henan First Construction Engineering 431,126,430.88
construction of Dongguan Group Co., Ltd.
Songhulangyuan
2 General contracting of the Jiangsu Hanjian Group Co., Ltd. 114,580,000.00
construction of Yangzhou
Hupanyujing Phase I
3 General construction supervision of Dongguan Dongyuan Construction 6,018,200.00
Dongguan Songhulangyuan Engineering Supervision Co., Ltd.
4 Construction supervision of SZPRD Engineering Construction 3,745,400.00
Yangzhou Hupanyujing Supervision Co., Ltd.
5 Intelligent system of SZPRD Shenzhen Feiling Intelligent System 3,168,220.00
Banshanyujing Integration Co., Ltd.
Total 558,638,250.88
II. Outlook of the Company’s future development
1. Countermeasures against risks
(1) About policy risks
In Feb. 2013, the central government made it clear that it would further tighten and specify the real estate
macro-control policy instead of loosening it. Subsequently, major cities at the first and second tiers unveiled their
specific rules to tighten the real estate macro-control. The house duty is thus more likely to expand. However,
with the larger picture of a stable macro-economy, the real estate macro-control policy is expected to become
stable.
The Company will find out in time the rules between the macro-control policy and market fluctuations, master the
regional development and sales cycles of projects and stabilize the main business (real estate) development.
(2) About financial risks
Since 20 Jul. 2013, the People’s Bank of China has totally unlocked the lending interest rates of financial
institutions by canceling the lower limit of the lending interest rate (70%). But commercial banks have a tighter
credit due to the cash crunch in the first half of the year, which creates new uncertainty to personal housing loans
and financing of real estate developers. Considering the fact that the macro-economy has not yet shown any
marked improvement despite less inflation pressure, the central government adopts a proactive fiscal policy and a
sound monetary policy. Therefore, the monetary policy is expected to loosen in stability.
The Company will carry out a close study of the monetary policy, step up capital inflows and formulate financial
plans boosting income so as to lay a solid foundation for further expansion of the market.
(3) About operating risks
① Operating risks
The Company’s projects are dispersed over cities at the first, second and third tiers. It is very difficult to operate
so many projects in different regions. Moreover, different regions have different policies and requirements, which
requires the Company to establish and adopt an effective operation system. In order to ensure sustained and
efficient operation, effectively manage all the projects and increase the internal coordination efficiency, the
Company will specify project development plans and design, operate and improve the main links and supporting
resources of projects so as to achieve added value in project development and increase the efficiency. Meanwhile,
taking the opportunity of implementation of the Real Estate Brochure, the Company will re-think the overall
planning and further specify the rules, standards and procedures of operation.
② Management risks
As a plural enterprise with real estate as its main business and house leasing, property management, vehicle
transportation service, etc. as its sidelines, the Company needs to have a great ability of overall management. With
unstable real estate markets, as well as rising labor cost and commodity prices, the Company will keep broadening
sources of income and reducing expenditure, reinforce lean management and increase the risk management
capability. It will also promote the awareness of crisis and increase the sideline management capability while
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Abstract of the 2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
ensuring the sustained and healthy development of the main business-real estate.
2. Major tasks and countermeasures against risks in the second half of 2013
(1) Continue to push forward development of the existing real estate projects as scheduled
It is a key task in the coming six months to push forward development of the existing real estate projects as
scheduled, including opening of Xuzhou Banshanyujing Phase I, normal construction and year-end partial
opening and trial sale of Yangzhou Hupanyujing Phase I, foundation construction of Dongguan Songhulangyuan,
and preparations for Qianhai Bay and Jinling Holiday.
(2) Continue to reinforce capital management
It will carry out a close study on possible effects of credit policy changes on financing of real estate enterprises
and proactively talk with financial institutions for external financings. Besides, it will try to increase capital
inflows from project sale, continue to make use of the “capital pool” scheme and gather capital to increase the
investment efficiency.
(3) Continue to promote lean management on various aspects
With trial implementation of the Real Estate Brochure as the key task, the Company will continue to promote lean
management measures. To be specific, the three sections (organizational management, operational management
and process management) of the Real Estate Brochure have been formulated, which will be put into full
implementation n the second half of the year. In other business sectors, advanced experience will be introduced
according to the corresponding management and work plan. The Company is trying to narrow the gap between its
main business management and the advanced management in the industry through lean management and
gradually establish a competitive basis. At the same time, it will enhance cost control to deal with the challenge of
soaring costs.
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
N/A
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPA's firm for the reporting period
N/A
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