Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 903,972,985.55 797,724,311.37
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable
Accounts receivable 83,326,211.14 76,584,008.68
Accounts paid in advance 19,649,514.13 64,714,990.11
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 10,601,734.63 6,371,689.34
Financial assets purchased under
agreements to resell
Inventories 2,005,114,496.86 2,300,674,551.14
Non-current assets due within 1 year
Other current assets
Total current assets 3,022,664,942.31 3,246,069,550.64
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 77,639,473.34 84,249,349.70
Investing property 282,199,583.51 285,258,604.17
Fixed assets 75,070,345.32 78,821,168.21
Construction in progress 57,000.00 57,000.00
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 110,521,341.59 114,098,153.11
R&D expense
Goodwill
Long-term deferred expenses 3,591,862.02 3,644,288.40
Deferred income tax assets 204,042,407.91 194,507,824.50
Other non-current assets
Total of non-current assets 753,122,013.69 760,636,388.09
Total assets 3,775,786,956.00 4,006,705,938.73
Current liabilities:
Short-term borrowings 300,000,000.00 360,000,000.00
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable
Accounts payable 270,583,152.07 298,525,752.32
Accounts received in advance 41,284,037.14 678,075,291.01
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 41,199,918.17 54,721,616.91
Tax payable 858,036,524.91 733,659,679.71
Interest payable
Dividend payable
Other accounts payable 175,239,314.62 195,045,649.98
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Non-current liabilities due within 1
16,109,888.32 14,909,888.32
year
Other current liabilities
Total current liabilities 1,702,452,835.23 2,334,937,878.25
Non-current liabilities:
Long-term borrowings 73,476,685.30 19,316,666.64
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 2,739,089.94
Other non-current liabilities 143,245,719.78 145,997,301.31
Total non-current liabilities 216,722,405.08 168,053,057.89
Total liabilities 1,919,175,240.31 2,502,990,936.14
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 595,979,092.00 595,979,092.00
Capital reserves 63,783,019.03 63,783,019.03
Less: Treasury stock
Specific reserves
Surplus reserves 102,882,532.15 102,882,532.15
Provisions for general risks
Retained profits 1,099,692,167.61 746,091,174.80
Foreign exchange difference -6,587,182.16 -5,882,902.45
Total equity attributable to owners of
1,855,749,628.63 1,502,852,915.53
the Company
Minority interests 862,087.06 862,087.06
Total owners’ (or shareholders’) equity 1,856,611,715.69 1,503,715,002.59
Total liabilities and owners’ (or
3,775,786,956.00 4,006,705,938.73
shareholders’) equity
2. Balance sheet of the Company
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 393,487,265.01 399,641,751.92
Transactional financial assets
Notes receivable
Accounts receivable 56,636,658.34 56,779,588.68
Accounts paid in advance 413,696.00 138,000.00
Interest receivable
Dividend receivable
Other accounts receivable 1,056,409,184.42 793,063,936.59
Inventories 324,769,088.59 324,442,304.42
Non-current assets due within 1 year 280,000,000.00 475,000,000.00
Other current assets
Total current assets 2,111,715,892.36 2,049,065,581.61
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 309,927,234.32 316,537,110.68
Investing property 188,201,125.10 193,719,444.41
Fixed assets 17,073,849.37 18,999,543.38
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets
R&D expense
Goodwill
Long-term deferred expenses 1,729,762.11 1,816,250.25
Deferred income tax assets
Other non-current assets
Total of non-current assets 516,931,970.90 531,072,348.72
Total assets 2,628,647,863.26 2,580,137,930.33
Current liabilities:
Short-term borrowings 240,000,000.00
Transactional financial liabilities
Notes payable
Accounts payable 27,591,677.61 33,814,746.89
Accounts received in advance 12,352,200.00 426,641.50
Employee’s compensation payable 11,214,044.96 10,017,975.02
Tax payable 1,934,499.12 2,092,132.57
Interest payable
Dividend payable
Other accounts payable 1,266,814,212.93 1,503,352,751.63
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 1,559,906,634.62 1,549,704,247.61
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 1,851,595.90
Total non-current liabilities 1,851,595.90
Total liabilities 1,559,906,634.62 1,551,555,843.51
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 595,979,092.00 595,979,092.00
Capital reserves 37,754,232.28 37,754,232.28
Less: Treasury stock
Specific reserves
Surplus reserves 102,225,721.71 102,225,721.71
Provisions for general risks
Retained profits 332,782,182.65 292,623,040.83
Foreign exchange difference
Total owners’ (or shareholders’) equity 1,068,741,228.64 1,028,582,086.82
Total liabilities and owners’ (or
2,628,647,863.26 2,580,137,930.33
shareholders’) equity
3. Consolidated income statement
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Total operating revenues 1,348,194,107.29 624,520,270.29
Including: Sales income 1,348,194,107.29 624,520,270.29
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 893,486,628.19 499,699,889.91
Including: Cost of sales 553,178,605.80 392,039,759.24
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 283,964,714.90 58,377,586.79
Selling and distribution expenses 7,367,804.79 8,202,034.38
Administrative expenses 51,339,858.73 48,359,986.73
Financial expenses -3,595,065.02 -1,321,536.27
Asset impairment loss 1,230,708.99 -5,957,940.96
Add: Gain/(loss) from change in fair
value (―-‖ means loss)
Gain/(loss) from investment (―-‖
4,390,123.64 1,501,509.12
means loss)
Including: share of profits in associates
4,390,123.64 1,501,509.12
and joint ventures
Foreign exchange gains (―-‖ means
loss)
III. Business profit (―-‖ means loss) 459,097,602.74 126,321,889.50
Add: non-operating income 2,510,882.84 1,180,679.74
Less: non-operating expense 1,921,568.67 1,674,452.36
Including: loss from non-current asset
75,632.69 29,700.92
disposal
IV. Total profit (―-‖ means loss) 459,686,916.91 125,828,116.88
Less: Income tax expense 106,085,924.10 27,741,808.89
V. Net profit (―-‖ means loss) 353,600,992.81 98,086,307.99
Including: Net profit achieved by
combined parties before the 1,312,539.70
combinations
Attributable to owners of the
353,600,992.81 98,686,285.22
Company
Minority shareholders’ income -599,977.23
VI. Earnings per share -- --
(I) Basic earnings per share 0.5933 0.1656
(II) Diluted earnings per share 0.5933 0.1656
Ⅶ. Other comprehensive incomes -704,279.71 154,895.92
Ⅷ. Total comprehensive incomes 352,896,713.10 98,241,203.91
Attributable to owners of the
352,896,713.10 98,841,181.14
Company
Attributable to minority
-599,977.23
shareholders
4. Income statement of the Company
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Total sales 25,454,166.48 23,449,864.94
Less: cost of sales 4,623,847.30 9,757,305.26
Business taxes and surcharges 3,908,440.40 4,950,968.55
Distribution expenses
Administrative expenses 19,491,245.37 18,102,272.04
Financial costs 317,053.85 -970,153.92
Impairment loss -22,145,321.63 -5,066,959.74
Add: gain/(loss) from change in fair
value (―-‖ means loss)
Gain/(loss) from investment (―-‖ means
19,329,723.64 20,458,700.89
loss)
Including: income form investment on
4,390,123.64 1,501,509.12
associates and joint ventures
II. Business profit (―-‖ means loss) 38,588,624.83 17,135,133.64
Add: non-business income 1,572,704.00 291,568.93
Less: non-business expense 2,187.01 1,472,336.76
Including: loss from non-current asset
2,187.01
disposal
III. Total profit (―-‖ means loss) 40,159,141.82 15,954,365.81
Less: income tax expense
IV. Net profit (―-‖ means loss) 40,159,141.82 15,954,365.81
V. Earnings per share -- --
(I) Basic earnings per share 0.0674 0.0268
(II) Diluted earnings per share 0.0674 0.0268
VI. Other comprehensive income
VII. Total comprehensive income 40,159,141.82 15,954,365.81
5. Consolidated cash flow statement
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Cash flows from operating activities:
Cash received from sale of
737,191,531.68 888,510,640.24
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received
Other cash received relating to
17,912,189.23 10,288,147.54
operating activities
Subtotal of cash inflows from operating
755,103,720.91 898,798,787.78
activities
Cash paid for goods and services 201,716,265.91 203,210,115.92
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 134,835,672.23 120,898,709.87
Various taxes paid 237,091,124.67 172,861,855.64
Other cash payment relating to
54,823,702.02 65,716,619.75
operating activities
Subtotal of cash outflows from
628,466,764.83 562,687,301.18
operating activities
Net cash flows from operating activities 126,636,956.08 336,111,486.60
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
5,000,000.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 406,198.00 735,231.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
406,198.00 5,735,231.00
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 5,248,764.40 1,573,784.61
assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
5,248,764.40 1,573,784.61
investing activities
Net cash flows from investing activities -4,842,566.40 4,161,446.39
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 361,243,352.00 146,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
361,243,352.00 146,000,000.00
activities
Repayment of borrowings 365,883,333.34 275,328,545.34
Cash paid for interest expenses and
10,539,475.19 25,661,311.58
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
282,000.00 1,432,000.00
financing activities
Sub-total of cash outflows from
376,704,808.53 302,421,856.92
financing activities
Net cash flows from financing activities -15,461,456.53 -156,421,856.92
IV. Effect of foreign exchange rate
-84,258.97 24,827.92
changes on cash and cash equivalents
V. Net increase in cash and cash
106,248,674.18 183,875,903.99
equivalents
Add: Opening balance of cash and
797,724,311.37 469,313,741.57
cash equivalents
VI. Closing balance of cash and cash
903,972,985.55 653,189,645.56
equivalents
6. Cash flow statement of the Company
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Cash flows from operating activities:
Cash received from sale of
24,902,565.48 23,126,901.86
commodities and rendering of service
Tax refunds received
Other cash received relating to
450,266,959.21 538,743,468.02
operating activities
Subtotal of cash inflows from operating
475,169,524.69 561,870,369.88
activities
Cash paid for goods and services 1,348,197.67 4,276,469.83
Cash paid to and for employees 9,743,795.96 8,017,547.04
Various taxes paid 6,125,642.41 6,928,992.60
Other cash payment relating to
912,265,600.56 457,934,134.85
operating activities
Subtotal of cash outflows from
929,483,236.60 477,157,144.32
operating activities
Net cash flows from operating activities -454,313,711.91 84,713,225.56
II. Cash flows from investing activities:
Cash received from retraction of
195,000,000.00
investments
Cash received from return on
14,939,600.00 23,957,250.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 4,198.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
209,943,798.00 23,957,250.00
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 102,573.00 9,532,623.61
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from 102,573.00 9,532,623.61
investing activities
Net cash flows from investing activities 209,841,225.00 14,424,626.39
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 240,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
240,000,000.00
activities
Repayment of borrowings
Cash paid for interest expenses and
1,400,000.00
distribution of dividends or profit
Other cash payments relating to
282,000.00
financing activities
Sub-total of cash outflows from
1,682,000.00
financing activities
Net cash flows from financing activities 238,318,000.00
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-6,154,486.91 99,137,851.95
equivalents
Add: Opening balance of cash and
399,641,751.92 83,846,009.34
cash equivalents
VI. Closing balance of cash and cash
393,487,265.01 182,983,861.29
equivalents
7. Consolidated Statement of Changes in Owners’ Equity
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Jan.-Jun. 2013
Unit: RMB Yuan
Jan.-Jun. 2013
Equity attributable to owners of the Company Total
Item Minority
owners’
Paid-up Capital Less: Specific Surplus General Retaine Others interests
equity
capital reserve treasury reserve reserve risk d profit
(or stock reserve
share
capital)
I. Balance at the end of the 595,979 63,783,0 102,882 746,091, -5,882,9 862,087.0 1,503,715,
previous year ,092.00 19.03 ,532.15 174.80 02.45 6 002.59
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 595,979 63,783,0 102,882 746,091, -5,882,9 862,087.0 1,503,715,
the year ,092.00 19.03 ,532.15 174.80 02.45 6 002.59
III. Increase/ decrease in the 353,600, -704,27 352,896,71
period (―-‖ means decrease) 992.81 9.71 3.10
353,600, 353,600,99
(I) Net profit
992.81 2.81
(II) Other comprehensive -704,27 -704,279.7
incomes 9.71 1
353,600, -704,27 352,896,71
Subtotal of (I) and (II)
992.81 9.71 3.10
(III) Capital paid in and
reduced by owners
1. Capital paid in by
owners
2. Amounts of share-based
payments recognized in
owners’ equity
3. Others
(IV) Profit distribution
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to
owners (or shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
595,979 63,783,0 102,882 1,099,69 -6,587,1 862,087.0 1,856,611,
IV. Closing balance
,092.00 19.03 ,532.15 2,167.61 82.16 6 715.69
Jan.-Jun. 2012
Unit: RMB Yuan
Jan.-Jun. 2013
Equity attributable to owners of the Company
Paid-up
Total
Item capital Minority
Less: General
Capital Specific Surplus Retaine owners’
(or treasury risk Others interests
reserve reserve reserve d profit equity
share stock reserve
capital)
I. Balance at the end of the 595,979 64,020,2 69,712, 406,422, -5,890,2 862,087.0 1,131,105,
previous year ,092.00 75.72 050.51 741.94 86.25 6 960.98
Add: retrospective
adjustment due to business 13,800,0 656,810 -3,240,0 11,216,784
combination under the same 00.00 .44 25.58 .86
control
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 595,979 77,820,2 70,368, 403,182, -5,890,2 862,087.0 1,142,322,
the year ,092.00 75.72 860.95 716.36 86.25 6 745.84
III. Increase/ decrease in the -14,037, 98,686,2 154,895. 84,803,924
period (―-‖ means decrease) 256.69 85.22 92 .45
98,686,2 98,686,285
(I) Net profit
85.22 .22
(II) Other comprehensive 154,895.
154,895.92
incomes 92
98,686,2 154,895. 98,841,181
Subtotal of (I) and (II)
85.22 92 .14
(III) Capital paid in and
reduced by owners
1. Capital paid in by
owners
2. Amounts of share-based
payments recognized in
owners’ equity
3. Others
(IV) Profit distribution
1. Appropriations to
surplus reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
-14,037, -14,037,25
(Ⅶ) Other
256.69 6.69
595,979 63,783,0 70,368, 501,869, -5,735,3 862,087.0 1,227,126,
IV. Closing balance
,092.00 19.03 860.95 001.58 90.33 6 670.29
8. Statement of Changes in Owners’ Equity of the Company
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Jan.-Jun. 2013
Unit: RMB Yuan
Jan.-Jun. 2013
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 595,979,09 37,754,232 102,225,72 292,623,04 1,028,582,
previous year 2.00 .28 1.71 0.83 086.82
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 595,979,09 37,754,232 102,225,72 292,623,04 1,028,582,
the year 2.00 .28 1.71 0.83 086.82
III. Increase/ decrease in the 40,159,141 40,159,141
period (―-‖ means decrease) .82 .82
40,159,141 40,159,141
(I) Net profit
.82 .82
(II) Other comprehensive
incomes
40,159,141 40,159,141
Subtotal of (I) and (II)
.82 .82
(III) Capital paid in and
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
(IV) Profit distribution
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
(or shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
595,979,09 37,754,232 102,225,72 332,782,18 1,068,741,
IV. Closing balance
2.00 .28 1.71 2.65 228.64
Jan.-Jun. 2012
Unit: RMB Yuan
Jan.-Jun. 2012
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 595,979,09 38,914,227 69,712,050 -50,242,14 654,363,22
previous year 2.00 .99 .51 6.85 3.65
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 595,979,09 38,914,227 69,712,050 -50,242,14 654,363,22
the year 2.00 .99 .51 6.85 3.65
III. Increase/ decrease in the -1,159,995. 15,954,365 14,794,370
period (―-‖ means decrease) 71 .81 .10
15,954,365 15,954,365
(I) Net profit
.81 .81
(II) Other comprehensive
incomes
15,954,365 15,954,365
Subtotal of (I) and (II)
.81 .81
(III) Capital paid in and
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
(IV) Profit distribution
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
(or shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
-1,159,995. -1,159,995.
(Ⅶ) Other
71 71
595,979,09 37,754,232 69,712,050 -34,287,78 669,157,59
IV. Closing balance
2.00 .28 .51 1.04 3.75
(III) Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as
―company ‖ or ―the Company‖) was incorporated based on the reconstruction of Shenzhen
Properties & Resources Development Co., Ltd. after obtaining approval of ZFBF [1991] No. 831
from People’s Government of Shenzhen Municipality. The registration number of Business
License for Enterprises as Legal Person is ZQFZ No. 440301103570124.
1. Registered capital of the Company
The registered capital of the Company was RMB 541, 799,175 after bonus issue of shares on the
basis of one share for every existing 10 shares based on existing paid-in capital of the Company in
1996 and it changes to RMB 595,979,092 after bonus issue of shares on the basis of one share for
every existing 10 shares based on previous paid-in capital of RMB 541,799,175 in 2009.
2. Registered office, organization form and headquarter address of the Company
Registered office: Shenzhen Municipal, Guangdong Province, PRC
Organization form: joint-stock company with limited liability
Headquarter address: 39th and 42nd Floor, International Trade Center, Renmin South Road,
Shenzhen.
3. Nature of the business and main business scope of the Company
The business scope of the Company and its subsidiaries includes development and sale of
commodity premises, construction and management of buildings, lease of properties, supervision
of construction, domestic trading and materials supply and marketing (excluding exclusive dealing
and monopoly sold products and commodities under special control to purchase).
4. About the controlling shareholder of the Company and the Group
By the end of the reporting period, the controlling shareholder of the Company is still Shenzhen
Construction Investment Holdings in register book. In 2004, People’s Government of Shenzhen
Municipality incorporated Shenzhen Construction Investment Holdings with the other two
municipal asset management companies, namely Shenzhen Investment Management Corporation
and Shenzhen Trade and Business Holding Company, and established Shenzhen Investment
Holdings Co., Ltd. Thus, the Company’s actual controlling shareholder is Shenzhen Investment
Holdings Co., Ltd., a sole state-funded limited company, who was established in Oct. 13, 2004; its
legal representative is Mr. Chen Hongbo and the registered capital is RMB 5.6 billion. Its main
business scope is providing guarantee to municipal state-owned enterprises, management of
state-owned equity, assets reorganization, reformation, capital operation, and equity investment of
enterprises and etc. As a government department, Shenzhen State-owned Assets Supervision and
Administration Bureau manage Shenzhen Investment Holdings Co., Ltd. on behalf of People’s
Government of Shenzhen Municipality. Thus, the final controller of the Company is Shenzhen
State-owned Assets Supervision and Administration Bureau.
5. Authorization and date of issuing the financial statements
The financial statements were approved and authorized for issue by the 10th session of the 7th
board of directors of the Company on 22 Aug. 2012.
( Ⅳ ) Main accounting policies, accounting estimates and corrections of prior
accounting errors
1. Basis for preparation of financial statements
The company recognizes and measures transactions occurred according to Chinese Accounting
Standards – Basic standard and other related accounting standards, prepares the financial statements
based on accrual accounting and the underlying assumption of going concern.
2. Statement of compliance with Enterprise accounting standards
The company's financial statements comply with the requirements of Accounting Standards; the
company's financial position, operating results, changes in shareholder's equity and cash flow, and
other relevant information are truly and completely disclosed in financial statements.
3. Fiscal year
The Company adopts the Gregorian calendar for its accounting period, starting on January 1 and
ending on December 31 of the year.
4. Recording currency
Renminbi (RMB) is used as the recording currency.
Recording currency of overseas subsidiaries:
The overseas subsidiaries adopt the currency in its main operating environment as the recording
currency, and then translated it into RMB while preparing the financial statements.
5. Accounting method of business combination under the common control and not under the
common control
(1) Business combination under the same control
The Company adopts equity method for business combination under common control. The assets
and liabilities that the combining party obtained in a business combination shall be measured on
their carrying amount in the combined party on the combining date. The difference between the
carrying amount of net assets acquired by the combining party and the carrying amount of the
consideration paid by it (or the total par value of the shares issued) shall be adjusted to capital
surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
respectively. The business combination costs that are directly attributable to the combination, such
as audit fees, valuation fees, and legal service fees and so on are recognized in profit or loss during
the current period when they occurred. The bonds issued for a business combination or the
handling fees, commissions and other expenses for bearing other liabilities shall be recorded in the
amount of initial measurement of the bonds or other debts. The handling fees, commissions and
other expenses for the issuance of equity securities for the business combination shall be credited
against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall
be offset. Where a relationship between a parent company and a subsidiary company is formed
due to a business combination, the parent company shall, on the combining date, prepare
consolidated financial statements according to the accounting policy of the Company.
(2) Business combination not under the same control
The Company adopts acquisition method for business combination not under common control.
The acquirer shall recognize the initial cost of combination under the following principles:
①When business combination is achieved through a single exchange transaction, the cost of a
business combination is the aggregate of the fair values, at the date of exchange, of assets given,
liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquiree;
②For the business combination involved more than one exchange transaction, accounting
treatments will be carried out separately on individual and consolidated financial statements as the
followings:
A. In the individual financial statements, the initial investment cost of the particular project will be
the sum of book value of equity in the entity before the date of acquisition and the newly added
investment cost; When the share equity before the date of acquisition involves with other
integrated gains, such gains (such as the part of fair value of the sellable financial assets accounted
into capital reserves, same for the followings) are transferred into current investment income
account.
B. In the consolidated financial statements, the share equity in the acquired entity before the date
of acquisition is recalculated upon the fair value of the equity at the date of acquisition. The
balance between the fair value and book value shall be accounted into current investment income
account; when the share equity before the date of acquisition involves with other integrated gains,
such gains are transferred into investment income account of the period when it occurred. Within
the notes of financial statement, the acquirer shall be disclosed the fair value (on the merger date)
of the shareholdings of the bargainer hold and profits or losses recognized by the revaluation.
③Agency expenses and other administrative expenses such as auditing, legal consulting, or
appraisal services occurred relating to the merger of entities are accounted into current income
account when occurred; The transaction fees of equity certificates or liability certificates issued by
the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
④Where a business combination contract or agreement provides for a future event which may
adjust the cost of combination, the Company shall include the amount of the adjustment in the cost
of the combination at the acquisition date if the future event leading to the adjustment is probable
and the amount of the adjustment can be measured reliably.
The acquirer shall, on the acquisition date, measure the assets given and liabilities incurred or
assumed by an enterprise for a business combination in light of their fair value, and shall record
the balances between them and their carrying amounts into the profits and losses at the current
period.
The acquirer shall distribute the combination costs on the acquisition date, and shall recognize all
identifiable assets, liabilities and contingent liabilities it obtains from the acquiree. (1) the acquirer
shall recognize the difference that the combination costs are over the fair value of the identifiable
net assets obtained from acquiree as goodwill; (2) if the combination costs are less than the fair
value of the identifiable net assets obtained from acquiree, the acquirer shall reexamine the
measurement of the fair values of the identifiable assets, liabilities and contingent liabilities
obtained from the acquiree as well as the combination costs; and then after the reexamination, the
result is still the same, the difference shall be recorded in the profit and loss of the current period.
Where a relationship between a parent company and a subsidiary company is formed due to a
business combination, the parent company shall prepare accounting books for future reference,
which shall record the fair value of the identifiable assets, liabilities and contingent liabilities
obtained from the subsidiary company on the acquisition date. When preparing consolidated
financial statements, it shall adjust the financial statements of the subsidiary company on the basis
of the fair values of the identifiable assets, liabilities and contingent liabilities determined on the
acquisition date according to the Company’s accounting policy of ―Consolidated financial
statement‖.
6. Preparation methods for consolidated financial statements
(1) Preparation methods for consolidated financial statements
1) Consolidated scope
Consolidated financial statements are included all subsidiaries of the parent.
When the parent owns, directly or indirectly through subsidiaries, more than half of the voting
power of the investee company, the investee company is regarding as subsidiary and included in the
consolidated financial statements. If the parent owns half or less of the voting power of an entity
when there is any following condition incurred, the investee company is regarding as subsidiary and
included consolidated financial statements.
A. power over more than half of the voting rights by virtue of an agreement with other investors;
B. power to govern the financial and operating policies of the entity under a statute or an agreement;
C. power to appoint or remove the majority of the members of the board of directors or equivalent
governing body;
D. power to cast the majority of votes at meetings of the board of directors or equivalent governing
body and control of the entity is by that board or body.
If there is evidence suggesting that no control of the investee company exists, the investee company
does not be included in the consolidated financial statements.
2）Preparation methods for consolidated financial statements
The consolidated financial statements are based on the financial statements of individual
subsidiaries which are included in the consolidation scope and prepared after adjustment of
long-term equity investment under equity method and elimination effect of intragroup transaction.
3）Statement of minority interests and profits or losses
The portion of the equity of the subsidiaries that are not owned by the parent is presented as minority
interest in the consolidated balance sheet.
The portion of the profit or loss of the subsidiaries that are not owned by the parent is presented as
minority interest in the consolidated income statement.
4) Accounting treatment of excess losses
When the share of losses attributable to the minor shareholders has exceeded their shares in the
shareholders’ equity at the beginning of term, the shareholders’ equity shall be deducted thereof.
5) Accounting treatment on increase or decrease of the subsidiaries during the reporting period
For any subsidiary acquired by the Company through business combination under the common
control, when the consolidated balance sheet for the current period are being prepared, the amount at
the beginning of the period in the consolidated balance sheet is made corresponding modification.
For addition business combination not under common control during the reporting period, the
Company makes no adjustment for the amount at the beginning of the period in the consolidated
balance sheet. When disposing subsidiary during the reporting period, the Company makes no
adjustment for the amount at the beginning of the period in the consolidated balance sheet.
For any subsidiary acquired by the Company through business combination under the common
control, when the consolidated income statement for the current period are being prepared, revenue,
expense and profit for the period from the beginning of the consolidated period to the year end of the
reporting period are included in the consolidated income statement. For addition business
combination not under common control during the reporting period, revenue, expense and profit for
the period from acquisition date to the year end of the reporting period is included in the
consolidated income statement. When disposing subsidiary during the reporting period, revenue,
expense and profit for the period from the beginning to the disposal date are included in the
consolidated income statement.
For any subsidiary acquired by the Company through business combination under the common
control, when the consolidated cash flow statement for the current period are being prepared, cash
flow for the period from the beginning of the consolidated period to the year end of the reporting
period is included in the consolidated cash flow statement. For addition business combination not
under common control during the reporting period, cash flow for the period from acquisition date to
the year end of the reporting period is included in the consolidated cash flow statement. When
disposing subsidiary during the reporting period, cash flow for the period from the beginning to the
disposal date is included in the consolidated cash flow statement.
(2) As for the event about purchasing and then selling (or selling and then purchasing) equities of
the same subsidiary, the Company shall disclose relevant accounting treatment methods.
7. Recognition standards for cash and cash equivalents
Cash equivalent is defined as the short-term (normally matured within three months after purchased
date), highly-liquid investment which is easily transferred into cash and has low risk of change of
value.
8. Foreign currency and accounting method for foreign currency
(1) Foreign currency business
Any transaction is converted into the accounting standard currency according to the approximate
exchange rate of the sight rate on the occurrence date of the transaction. The Company adopts the
middle exchange rate announced by the People's Bank of China at last year end as current
exchange rate.
Treatment of foreign currency exchange difference: On balance sheet date, the Company accounts
for monetary and non-monetary items denominated in foreign currencies as follows: a) monetary
items denominated in foreign currencies are translated at the foreign exchange rates ruling at the
balance sheet date. Foreign exchange gains and losses arising from the difference between the
balance sheet date exchange rate and the exchange rate ruling at the time of initial recognition or
the exchange rate ruling at the last balance sheet date are recognized in income statement; b)
Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the current exchange rates ruling at the transaction dates. Non-monetary items
denominated in foreign currencies that are stated at fair value are translated using the current
exchange rates ruling at the dates the fair value was determined, the difference between the
amount of functional currency after translation and the original amount of functional currency is
treated as part of change in fair value (including change in exchange rate) and recognized in
income statement. During the capitalization period, exchange differences arising from foreign
currency borrowings are capitalized as part of the cost of the capitalized assets.
(2) Translations of financial statements in foreign currencies
The Company translates the financial statements of its foreign operation in accordance with the
following provisions: a) the asset and liability items in the balance sheets shall be translated at a
spot exchange rate ruling at the balance sheet date. Among the owner's equity items, except the
ones as "retained earnings", others shall be translated at the spot exchange rate ruling at the time
when they occurred; b) The income and expense items in the income statements shall be translated
at an exchange rate which is determined in a systematic and reasonable way and is approximate to
the spot exchange rate (calculated by the average of starting rate and closing rate on the reporting
period) ruling at the transaction date. The foreign exchange difference arisen from the translation
of foreign currency financial statements shall be presented separately under the owner's equity in
the balance sheet. The translation of comparative financial statements shall be subject to the
aforesaid provisions.
9. Financial instruments
(1) Category of financial instruments
The Company recognizes a financial asset or financial liability on its balance sheet when, and only
when, the Company becomes a party to the contractual provisions of the instrument.
The Company classifies the financial assets into the following four categories: a) financial assets
at fair value through profit or loss; b) held-to-maturity investments; c) loans and receivables; and d)
available-for-sale financial assets.
The Company's financial liabilities are classified as financial liabilities at fair value through profit
or loss, and other financial liabilities.
(2) Recognition and measurement of financial liabilities
The Company recognizes a financial asset or financial liability on its balance sheet when, and only
when, the Company becomes a party to the contractual provisions of the instrument.
The financial assets are initially recognized at fair value. Gains or losses arising from a change in
the fair value of a financial asset at fair value through profit or loss is recognized in profit or loss
when it incurred and relevant transaction costs are recognized as expense when it incurred. For
other financial assets, the transaction costs are recognized as costs of the financial assets.
Subsequent measurement of financial assets
A. A financial asset at fair value through profit or loss includes financial assets held for trading
and financial assets designated by the Company as at fair value through profit or loss. The
Company subsequently measures the financial asset at fair value through profit or loss at fair value
and recognizes the gain or loss arising from a change in the fair value of a financial asset at fair
value through profit or loss as profit or loss in the current period.
B. Held-to-maturity investments are measured at amortized cost using the effective interest
method. A gain or loss is recognized in profit or loss during the current period when the financial
asset is derecognized or impaired and through the amortization process.
C. Loans and receivables are measured at amortized cost using the effective interest method. A
gain or loss is recognized in profit or loss during the current period when the financial asset is
derecognized or impaired and through the amortization process.
D. Available-for-sale financial assets are measured at fair value and the gain or loss arising from a
change in the fair value of available-for-sale financial assets is recognized as capital reserve which
is transferred into profit or loss when it is impaired or derecognized. Interests or cash dividends
during the holding period are recognized in profit or loss for the current period.
Financial liabilities are initially measured at fair value. For the financial liability at fair value
through profit or loss at its fair value, relevant transaction costs are recognized as expense when it
incurred. For the other financial liabilities, relevant transaction costs are recognized as costs.
Subsequent measurement of financial liabilities
A. Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial assets designated by the Company as at fair value through profit or loss. The
Company recognizes a financial liability at fair value through profit or loss at its fair value. A gain
or loss of change in fair value is recognized in the profit or loss of the current period.
B. Other financial liabilities are measured by amortized cost using effective interest rate.
(3) Recognition and accounting method for transfer of financial assets
The Company derecognizes financial assets when the Company transfers substantially all the risks
and rewards of ownership of the financial assets. On derecognizing of a financial asset in its
entirety, the difference between the follows is recognized in profit or loss of the current period.
①the carrying amount of transferring financial assets;
②the sum of the consideration received and any cumulative gain or loss that had been recognized
directly in equity (including financial assets transferred to available for sale category).
If the transferred asset is part of a larger financial asset and the part transferred qualifies for
derecognizing in its entirety, the previous carrying amount of the larger financial asset is allocated
between the part that continues to be recognized and the part that is derecognized, based on the
relative fair values of those parts on the date of the transfer. The difference between the follows is
recognized in profit or loss of the current period.
①the carrying amount allocated to the part derecognized;
②the sum of the consideration received for the part derecognized and any cumulative gain or loss
allocated to it that had been recognized directly in equity (including financial assets transferred to
available for sale category).
A cumulative gain or loss that had been recognized in equity is allocated between the part that
continues to be recognized and the part that is derecognized, based on the relative fair values of
those parts.
If a transfer does not qualify for derecognizing, the Company continues to recognize the
transferred asset in its entirety and shall recognize a financial liability for the consideration
received.
When the Company continues to recognize a financial asset to the extent of its continuing
involvement, the Company also recognizes an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations that the
Company has retained.
(4) Derecognizing conditions of financial liabilities
The derecognizing of financial liabilities refers to the financial liabilities are written off in the
company account and balance sheet. When the prevailing obligations of a financial liability are
relieved in all or in part may the recognition of the financial liability be terminated in all or partly.
(5) Recognition method for fair value of financial assets and financial liabilities
If there is an active market for the financial instrument, the fair value is quoted prices in the active
market.
If the market for a financial instrument is not active, the Company establishes fair value by using a
valuation technique.
(6) Withdrawal of impairment provision for financial assets (excluding accounts receivable)
A. The Company assesses the carrying amount of the financial assets except the financial asset
at fair value through profit or loss at each balance sheet date, if there is any objective evidence that
a financial asset or group of financial assets is impaired, the Company shall recognize impairment
loss.
B. The objective evidences that the Company uses to determine the impairment are as follows:
a）significant financial difficulty of the issuer or obligor;
b）a breach of contract, such as a default or delinquency in interest or principal payments;
c）the lender, for economic or legal reasons relating to the borrower's financial difficulty, granting
to the borrower a concession that the lender would not otherwise consider;
d）it becoming probable that the borrower will enter bankruptcy or other financial reorganization;
e）the disappearance of an active market for that financial asset because of financial difficulties;
f）observable data indicating that there is a measurable decrease in the estimated future cash flows
from a group of financial assets since the initial recognition of those assets, although the decrease
cannot yet be identified with the individual financial assets in the group, including: (I) Adverse
changes in the payment status of borrowers in the group or (ii) an increase in the unemployment
rate in the geographical area of the borrowers, a decrease in property prices for mortgages in the
relevant area, or adverse changes in industry conditions that affect the borrowers.
g）significant changes with an adverse effect that have taken place in the technological, market,
economic or legal environment in which the borrower operates, and indicates that the cost of the
investment in the equity instrument may not be recovered;
h）a significant or non-temporary decrease in fair value of equity investment instruments;
I）other objective evidences showing the impairment of the financial assets.
C. Measurement of impairment loss of financial assets
a）held-to-maturity investments, loans and receivables
If there is objective evidence that an impairment loss on loans and receivables or held-to-maturity
investments carried at amortized cost has been incurred, the amount of the loss is measured as the
difference between the asset's carrying amount and the present value of estimated future cash
flows. The amount of the loss is recognized in profit or loss of the current period.
The Company assesses whether objective evidence of impairment exists individually for financial
assets that are individually significant, and individually or collectively for financial assets that are
not individually significant. If the Company determines that no objective evidence of impairment
exists for an individually assessed financial asset, whether significant or not, it includes the asset
in a group of financial assets with similar credit risk characteristics and collectively assesses them
for impairment. Assets that are individually assessed for impairment and for which an impairment
loss is or continues to be recognized are not included in a collective assessment of impairment.
The Company performs impairment test for receivables and provide bad debt provisions at the
balance sheet date. For the individually significant receivables and not individually significant
receivables, the impairment tests are both carried on individually. If there is objective evidence
that an impairment loss on loans and receivables, the Company provides provision for impairment
loss for the amount which is measured as the difference between the asset's carrying amount and
the present value of estimated future cash flows.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss of financial asset measured at amortized cost is be reversed. The
amount of the reversal is recognized in profit or loss of the current period.
b）Available-for-sale financial assets
When a decline in the fair value of an available-for-sale financial asset has been recognized
directly in equity, the cumulative loss that had been recognized directly in equity is removed from
equity and recognized in profit or loss even though the financial asset has not been derecognized.
If there is objective evidence that an impairment loss has been incurred on an unquoted equity
instrument that is not carried at fair value because its fair value cannot be reliably measured, or on
a derivative asset that is linked to and must be settled by delivery of such an unquoted equity
instrument, the amount of the impairment loss is measured as the difference between the carrying
amount of the financial asset and the present value of estimated future cash flows discounted at the
current market rate of return for a similar financial asset. Such impairment losses are recognized in
the profit or loss of the current period.
If, in a subsequent period, the fair value of a debt instrument classified as available for sale
increases and the increase can be objectively related to an event occurring after the impairment
loss was recognized in profit or loss, the impairment loss is reversed, with the amount of the
reversal recognized in profit or loss of the current period.
Impairment losses recognized in profit or loss for an investment in an equity instrument classified
as available for sale is not reversed through profit or loss. For impairment loss has been incurred
on an unquoted equity instrument that is not carried at fair value because its fair value cannot be
reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such
an unquoted equity instrument, the impairment loss is not reversed through profit or loss.
(7) As for event about reclassifying the undue held-to-maturity investment into available-for-sale
financial assets, the Company shall state the basis of changes in holding purpose or ability
1. No available financial resources continuously providing the funds support for the financial
assets to make them hold to maturity;
2. it’s hard for the Company to hold the financial assets to maturity due to the restriction of laws
and administrative regulations;
3. Other situations showing that the Company has not the ability to hold the financial assets with
fixed term to maturity.
10. Recognition criteria and withdrawal methods for bad debts provision of accounts
receivable
(1) Bad debt provision for individually significant accounts receivable
Judgement basis or monetary standards of provision for bad debts of Amount of individual receivable is greater than RMB 2
the individually significant accounts receivable millions (and including 2 millions)
On balance sheet day, the impairment test is carried on
individually for the individually significant receivables; if it
is impaired after the impairment test, the Company provides
Method of individual provision for bad debts of the individually
provision for impairment loss for the amount which is
significant accounts receivable
measured as the difference between the asset's carrying
amount and the present value of estimated future cash flows,
and withdraws relevant bad debt provision.
(2) Accounts receivable for which bad debt provisions are made on the group basis
Withdrawal method of bad
Name of group debt provision on the group Recognition basis of group
basis
Receivables among the Company and its subsidiaries within the
Group 1 Other methods consolidation scope which prove not impaired after individual
tests
As for other receivables which prove not impaired after
individual tests than those in Portfolio 1, considering the current
situation, the Company determines the bad-debt provisions ratio
Group 2 Aging analysis method
for them based on the actual loss ratio of the receivable portfolio
in previous years with the same or similar account age or the
similar credit risk.
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts receivable
Age
receivable (%) (%)
Within 1 year (including 1 year) 3% 3%
1-2 years 10% 10%
2-3 years 30% 30%
Over 3 years 50% 50%
3-4 years 80% 80%
4-5 years 100% 100%
In the groups, adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
In the groups, adopting other methods to withdraw bad debt provision
√ Applicable □Inapplicable
Name of group Note of method
Receivables among the Company and its subsidiaries within the
Group 1 consolidation scope which prove not impaired after individual tests. Such
group shall not be withdrawn bad debts provision.
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision
is made individually
Reason of individually withdrawing The receivable which is individually insignificant but the credit risk is
bad debt provision: high, objective evidence to indicate impairment.
The impairment test is carries out individually, the Company recognizes
Withdrawal method for bad debt provision for impairment loss for the amount which is measured as the
provision: difference between the asset's carrying amount and the present value of
estimated future cash flows, and withdraws relevant bad debts provision.
11. Inventory
(1) Classification
Inventories of the Company include raw materials, finished goods, and low-value consumption
goods, land use right held for real estate development, properties under development and
completed properties for sale.
(2) Pricing method for outgoing inventories
Method: Specific identification method
Property inventories are measured at actual cost incurred, comprising the borrowing cost
designated for real estate development before completion of developing properties. Completed
saleable property inventories are measured using average unit area cost method. Other kinds of
inventories are measured at actual cost incurred, and when the inventories are transferred out or
issued for use, cost of the inventories is determined using weighted average cost method.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for
inventories
(1) Inventories shall be measured at the lower of cost and net realizable value at the balance sheet
date. Where the net realizable value is lower than the cost, the difference shall be recognized as
provision for impairment of inventories and charged to profit or loss.
①Estimation of net realizable value
Estimates of net realizable value are based on the most reliable evidence available at the time the
estimates are made, of the amount the inventories are expected to realize. These estimates take
into consideration the purpose for which the inventory is held and the influence of post balance
sheet events.
Materials and other supplies held for use in the production are measured at cost if the net
realizable value of the finished goods in which they will be incorporated is higher than their cost.
However, when a decline in the price of materials indicates that the cost of the finished products
will exceed their net realizable value, the materials are measured at net realizable value.
The net realizable value of inventories held to satisfy sales or service contracts is generally based
on the contract price.
If the quantity specified in sales contracts is less than the inventory quantities held by the
Company, the net realizable value of the excess shall be based on general selling prices.
②The Company generally provides provision for impairment of inventory individually. For large
quantity and low value items of inventories, cost and net realizable value are determined based on
categories of inventories.
Where certain items of inventory have similar purposes or end uses and relate to the same product
line produced and marketed in the same geographical area, and therefore cannot be practicably
evaluated separately from other items in that product line, costs and net realizable values of those
items may be determined on an aggregate basis.
(4) Inventory system for inventories:
√ Perpetual inventory system □ Periodic inventory system □ other
The inventory system for inventories is perpetual inventory system.
(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods
Amortization method: one-off amortization method
Packing articles
Amortization method: inapplicable
12. Long-term equity investment
(1) Recognition of initial investment cost
The Company initially measures long-term equity investments under two conditions:
① For long-term equity investment arising from business combination, the initial cost is
recognized under the following principles.
A. If the business combination is under the common control and the acquirer obtains long-term
equity investment in the consideration of cash, non-monetary asset exchange or bearing acquiree’s
liabilities, the initial cost is the carrying amount of the proportion of the acquiree’s owner’s equity
at the acquisition date. The difference between cash paid, the carrying amount of the
non-monetary asset exchanged and the acquiree’s liabilities beard and the initial cost of the
long-term equity investment should be adjusted to capital surplus. If the capital surplus is not
sufficient for adjustment, retained earning is adjusted respectively. The business combination costs
that are directly attributable to the combination, such as audit fees, valuation fees, and legal
service fees and so on are recognized in profit or loss during the current period when they
occurred.
If the acquirer issuing equity securities as consideration, the initial cost is the carrying amount of
the proportion of the acquiree’s owner’s equity at the acquisition date. Amount of share capital
equal to the par value of the shares issued. The difference between initial cost of the long-term
equity investment and the par value of shares issued is adjusted to capital surplus. If the capital
surplus is not sufficient for adjustment, retained earning is adjusted respectively. The costs of
issuing equity securities occurred in business combination such as charges of security issuing and
commissions are deducted from the premium of equity securities. If the premium is not sufficient
for deducting, retained earning is adjusted respectively.
B. If the business combination is not under the common control, the acquirer recognizes the initial
cost of combination under the following principles.
a) When business combination is achieved through a single exchange transaction, the cost of a
business combination is the aggregate of the fair values, at the date of exchange, of assets given,
liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquiree;
b) For a business combination that involves more than one exchange transaction, the initial
investment cost is the summation of the book value of the equity interests of the acquiree held by
the Company before the acquisition date and the new investment cost on the acquisition date;
c) The fees incurred for audit, legal consultation, valuation services and other management
expenses are to be recognized in profit or loss at the time such costs incurred. The transaction
costs incurred by the acquirer for issuing equity securities or debt securities as the consideration of
the acquisition are to be recognized as the initial amount of such equity security or debt security.
d) Where a business combination contract or agreement provides for a future event which may
adjust the cost of combination, the Company shall include the amount of the adjustment in the cost
of the combination at the acquisition date if the future event leading to the adjustment is probable
and the amount of the adjustment can be measured reliably.
②For long-term equity investment obtained in any method other than business combination, the
initial cost is recognized under the following principles.
A. If the long-term equity investment is acquired in cash consideration, the initial cost is the
actual payment which includes direct expenses paid to acquire the long-term equity investment,
taxes and other necessary expense.
B. If the long-term equity investment is acquired by issuing equity securities, the initial cost is
the fair value of the equity securities issued. However, cash dividends or profits that are declared
but unpaid shall not be included in the initial cost. Direct costs attributed to issue equity securities
such as handling charges and commissions paid to securities underwriting agencies are deducted
from premium of equity securities. If the premium is not sufficient for deduction, reserved fund
and retained earnings is adjusted respectively.
C. For the long-term equity investment invested by investors, the initial cost is the agreed value
prescribed in the investment contract or agreement unless the agreed value is not fair.
D. For the long-term equity investment acquired through non-monetary asset exchange, the
initial cost is recognized according to ―Accounting Standards for Business Enterprises No.
7-Non-monetary transactions‖.
E. For the long-term equity investment acquired through debt restructuring, the initial cost is
recognized according to ―Accounting Standards for Business Enterprises No. 12-Debt
restructuring‖.
③If there are cash dividends or profits that are declared but unpaid included in the consideration
paid, the cash dividends or profits declared but unpaid shall be recognized as receivables
separately rather than as part of initial cost of long-term equity instruments no matter through
which method the long-term equity investment is acquired.
(2) Subsequent measurement and recognition of profits or losses
The Company adopts either cost method or equity method for the long-term equity investment
hold according to the extent of influence, existence of active market and availability of fair value.
The equity method is used when the Company has joint control or significant influence over the
investee enterprise. The cost method is used when the Company has the control or does not have
joint control or significant influence over the investee enterprise and there is no quote price in
active market or there is no reliable fair value.
①For the long-term equity investment under cost method, and except from cash dividends or
profits distributed are declared but unpaid included in the consideration paid, the other declared
cash dividends or profits are normally recognized as investment income for the current period
when it incurred. The net profits are no longer divided into the pre-investment profits and
after-investment profits.
The Company recognizes the receivable cash dividends or profits according to above regulations,
and the impairment test is needed to be concerned. To indicate the evidence of impairments, it
should be concerned about whether the carrying amount of the long-term equity investments is
greater than the book value of net assets that have been acquired (including the related goodwill)
or other similar situations. When these situations occur, the impairment test of long-term equity
investments should be performed according to ―Chinese Accounting Standard No.8 - Impairment
of assets‖, Where the carrying amount of long-term equity investment exceeds the recoverable
amount, the difference shall be recognized as impairment loss, and a provision for impairment loss
should be made.
②For long-term equity investment under equity method, the Company adjusts carrying amount of
the long-term equity investment and recognizes investment income according to the proportion of
net profit or loss realized by the investee enterprise after acquisition. The Company reduces
carrying amount of the long-term equity investment by the proportion of declared cash dividend or
profit which shall be distributed to the Company.
For long-term equity investment under equity method, the Company recognizes net losses
incurred by the investee enterprise to the extent that the carrying amount of the long-term equity
investment and other long-term equities that are in substance treated as net investment in the
investee enterprise is reduced to zero except there is further obligation of the excess losses. If the
investee enterprise makes net profits in subsequent periods, the Company shall continue to
recognize investment income after using its share of net profits of the investee enterprise to cover
its unrecognized losses.
③The Company adopts the same manner of financial instrument for the impairment of long-term
equity investment which is measured under cost method and there is no quote price in active
market or there is no reliable fair value. Impairment of long-term equity investments other than
above refers to accounting policy ―Impairment of assets‖ of the Company.
④On disposal of a long-term equity investment, the difference between the carrying amount of
the investment and the sale proceeds actually received is recognized as an investment gain or loss
for the current period. Where the equity method is adopted, when a long-term equity investment is
disposed, the amount of change in owner’s equity of the investee enterprise other than net profit or
loss which is previously recorded in owner’s equity of the Company shall be transferred to profit
or loss for the current period according to corresponding proportion.
(3) The basis for determination of joint control or significant influence over investee enterprise
Joint control over investee enterprise is established when the investment of the Company satisfied
the following conditions:
①Any Joint ventures party cannot control the operating activities of Joint ventures individually;
②Decisions regarding the basic operating activities of Joint ventures shall be agreed by all Joint
ventures parties;
③All Joint ventures parties may appoint one of them to manage the operating activities of Joint
ventures, and the management over the financial and operating policies exercised by the Joint
ventures party appointed shall be limited to the extent agreed by all Joint ventures parties.
Significant influence over investee enterprise is established when the investment of the Company
satisfied the following conditions:
①The Company has representation on the board of directors or equivalent governing body of the
investee.
②The Company participates in policy-making processes, including participation in decisions
about dividends or other distributions.
③Material transactions occur between the Company and the investee enterprise.
④The Company dispatches managerial personnel to the investee enterprise.
⑤The Company provides essential technical information to the investee enterprise. If the
Company holds, directly or indirectly (e.g. through subsidiaries), 20 percent or more but less than
50 percent of the voting power of the investee enterprise, it is presumed that the Company has
significant influence over the investee enterprise.
(4) Impairment test and method of provision for impairment loss
The Company adopts the same manner of financial instrument for the impairment of long-term
equity investment which is measured under cost method and there is no quoted price in active
market or there is no reliable fair value. Impairment of long-term equity investments other than
above refers to accounting policy ―Impairment of assets‖ of the Company.
13. Recognition and measurement of investment properties
(1) Investment properties of the Company are properties held to earn rentals or for capital
appreciation or both, mainly comprising:
①Land use right which has already been rented;
②Land use right which is held for transfer out after appreciation;
③Property that has already been rented.
(2) Investment property shall be recognized as an asset when the following conditions are
satisfied:
①It is probable that the future economic benefits that are associated with the investment property
will flow to the Company;
②The cost of the investment property can be measured reliably.
(3) Initial measurement
An investment property is measured initially at its cost.
①The cost of a purchased investment property comprises its purchase price, related tax expenses
and any directly attributable expenditure.
②The cost of a self-constructed investment property comprises all necessary construction
expenditures incurred before the property is ready for its intended use.
③The cost of a property acquired by other means shall be recognized according to relevant
accounting standards.
(4) Subsequent measurement
After initial recognition, the Company adopts the cost model to measure its investment properties.
The Company amortizes or depreciates its investment properties measured using cost model in the
same way as fixed assets and intangible assets.
The Company values the investment property measured using cost model at the lower of its cost
and its recoverable amount at the end of the period. Where the cost exceeds the recoverable
amount, the difference shall be recognized as impairment loss. Once a provision for impairment
loss is made, it cannot be reversed.
14. Fixed assets
(1)Recognized standard of fixed assets
Fixed assets are tangible assets that: 1) are held for use in the production or supply of goods or
services, for rental to others, or for administrative purposes; and 2) have useful life more than one
year.
Fixed asset shall be initially recognized at cost when the following conditions are satisfied:
① It is probable that future economic benefits associated with the assets will flow to the
Company;
② The cost of the assets can be measured reliably.
(2) Recognition basis and pricing method of fixed assets by finance lease
The Company identifies a lease of asset as finance lease when substantially all the risks and
rewards incidental to legal ownership of the asset are transferred.
A fixed asset acquired under finance lease shall be valued at the lower of the fair value of the
leased asset and the present value of the minimum lease payments at the inception of lease.
The depreciation method of fixed assets acquired under finance lease is consistent with that for
depreciable assets owned by the Company. If the Company can reasonably confirm that it will
obtain the ownership of leased asset at the end of lease term, the leased asset shall be depreciated
during the useful life of the leased asset. If the Company cannot reasonably confirm that it will
obtain the ownership of leased asset at the end of lease term, the leased asset shall be depreciated
during shorter of the useful life of the leased asset and the lease term.
(3) Depreciation methods of fixed assets
The depreciation method adopted by the Company is straight-line method.
The estimated useful lives, residual value and annual depreciation rate of fixed assets are shown as
follows:
Category of fixed assets Useful life (Y) Expected net salvage value Annual deprecation
Housing and building 25 10% 4.5%
Machinery equipments 10 5% 9.5%
Electronic equipments and other 5 5% 19%
Transportation vehicle 5 5% 19%
Other equipments 5 5% 19%
Decoration for fixed assets 5 20%
(4) Testing method of impairment and withdrawal method of provision for impairment on fixed
assets
Impairment of fixed asset refers to accounting policy ―Impairment of assets‖ of the Company.
(5) Other explanations
Subsequent expenditure relating to a fixed asset shall be added to the carrying amount of the asset
when the expenditure qualifies for capitalization. Subsequent expenditure that does not qualify for
capitalization shall be recognized as an expense for the current period.
The Company reviews the useful life, estimated residual value and depreciation method of a fixed
asset at the end of each financial year. If expectations are significantly different from previous
estimates, the useful life shall be revised accordingly. If expectations are significantly different
from previous estimates, the estimated residual value also shall be revised accordingly. If there has
been a significant change in the expected realization pattern of economic benefits from those
assets, the depreciation method shall be changed accordingly. The changes in useful life, estimated
residual value and depreciation method shall be treated as change in accounting estimates.
The depreciation life of the Company housings is 20---25 years, ratio of remaining value is
5%---10%, annual depreciation rate is 3.8%---4.5%.
15. Construction in progress
(1) Categories of construction in progress
The construction in progress includes the construction work, installation work, technical
reformation work, overhaul work during the preparation period and the construction period.
Relevant construction costs are recognized with the total expenses actually occurred.
(2) Standards and time of transferring construction in progress into fixed asset
Construction in process is transferred to fixed assets with the total expenses actually occurred
when the construction in progress are ready for their intended use.
(3) Impairment test method and withdrawal method for impairment provision of construction in
progress
Impairment of construction in progress refers to accounting policy ―Impairment of assets‖ of the
Company.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
The costs of borrowings designated for acquisition or construction of qualifying assets should be
capitalized as part of the cost of the assets. Capitalization of borrowing costs starts when
① The capital expenditures have incurred;
② The borrowing costs have incurred;
③ The acquisition and construction activities that are necessary to bring the asset to its expected
usable condition have commenced.
Other borrowing costs that do not qualify for capitalization should be expensed off during current
period.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation of
capitalization of the borrowing costs, excluding the period of suspension of capitalization of the
borrowing costs.
(3) Period of suspension of capitalization of borrowing costs
Capitalization of borrowing costs should be suspended during periods in which the acquisition or
construction is interrupted abnormally, and the interruption period is three months or longer.
These borrowing costs should be recognized directly in profit or loss during the current period.
However, capitalization of borrowing costs during the suspended periods should continue when
the interruption is a necessary part of the process of bringing the asset to working condition for its
intended use.
Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed
is substantially ready for its intended use. Subsequent borrowing costs should be expensed off
during the period in which they are incurred.
(4) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a
qualifying asset, the amount of borrowing costs eligible for capitalization on that asset is
determined as the actual borrowing costs incurred on that borrowing during the period less any
investment income on the temporary investment of the borrowing.
To the extent that funds are borrowed generally and used for the purpose of acquiring or
constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be
determined by applying a capitalization rate to the weighted average of excess of accumulated
expenditures on qualifying asset over that on specific purpose borrowing. The capitalization rate is
the weighted average rate of the general borrowings.
17. Biological assets
Inapplicable
18. Oil-gas assets
Inapplicable
19. Intangible assets
(1) Pricing method of intangible assets
Intangible assets are identifiable non-monetary asset that are owned or controlled by the Company
and are without physical substance.
The Company recognizes an intangible asset when that intangible asset fulfills both of the
following conditions:
①It is probable that the economic benefits associated with that asset will flow to the Company;
And
②The cost of that asset can be measured reliably.
Measurement of intangible assets
①An intangible asset is measured initially at its cost.
②Subsequent measurement of intangible assets: For an intangible asset with finite useful life, the
Company estimates its useful life at the time of acquisition and amortizes it during its useful life in
a reasonable and systematic way. The amount of amortization is allocated to relevant costs and
expenses according to the nature of beneficial items. The Company does not amortize intangible
asset with infinite useful life.
(2) Estimated useful life of intangible assets with limited useful life
If an intangible asset is gained from contractual rights or other legal rights, its useful life shall not
exceed the power limit of contractual rights or other legal rights. If the estimated useful life of an
intangible asset is shorter than the period stipulated under the contractual rights or other legal
rights, it shall use the estimated useful life to determine the useful life of intangible assets.
Item Estimated useful life Basis
Taxi operating license
50 years, 12 years Period stipulated in the contractual rights
plate
(3) Judgment basis of intangible assets with uncertain useful life
If it is unable to forecast the period when the intangible asset can bring economic benefits to the
enterprise, it shall be regarded as an intangible asset with uncertain service life, which shall not be
amortized.
(4) Withdrawal of impairment provision of intangible assets
Impairment of intangible assets refers to accounting policy ―Impairment of assets‖ of the
Company.
(5) Criteria of separating the research phase and development phase of internal R&D project
The term "research" refers to the creative and planned investigation to acquire and understand new
scientific or technological knowledge.
The term "development" refers to the application of research achievements and other knowledge
to a certain plan or design, prior to the commercial production or use, so as to produce any new
material, device or product, or substantially improved material, device and product.
(6) Calculation of the expenditures of internal R&D project
Expenditures incurred during the research phase of an internal project shall be recognized as
expenses in the period in which they are incurred. If expenditures of internal R&D project in
developing stage meet the condition of following at the same time, it shall be affirmed as
intangible assets:
① Finishing the intangible assets to make it useful or salable, technically feasible:
② Having the intention to finish, use and sell the intangible assets:
③ The way intangible assets generating its economic benefits, including ability to prove the
existence in the market of the products from the intangible assets or the intangible assets itself, if
the intangible assets shall be used internally, its feasibility must can be proved.
④ Having enough supports of technology, financial resources and other resources to finish the
development of the intangible assets, and having the ability to use and sell the intangible assets;
⑤ Expenditures belonging to developing stage of the intangible assets shall be reliably
calculated.
20. Amortization method of long-term deferred expenses
The Company recognizes all expenses which have occurred during the period but shall be
amortized beyond one year, such as improvement expenditures of operating leased fixed assets, as
long-term deferred expenses. The Company amortizes long-term deferred expenses using
straight-line method according to relevant beneficial periods.
21. Assets transfer with repurchasing conditions
Buy-back after the sale: It is a sale means which the seller during selling goods agrees to buy back
the same or similar goods at the later date. Under such mode, the seller shall make judgment in
whether selling goods satisfies the recognition of revenue in accordance to the contract or
agreement. Normally, the transaction of repurchase after sale belongs to a financial transaction,
the main risk and rewards of the goods ownership has not been transferred. The enterprise shall
not recognize the revenue. For the amount which the repurchase price greater than the original sale
price, the enterprise shall accrue the interest fees to the financial fees within the repurchase period.
For the property transfer with repurchase conditions, in consideration of the economic substance
of transactions, the accounting method shall be disclosed.
22. Estimated liabilities
(1) Recognition criteria of estimated liabilities
The company should recognize the related obligation as a provision for liability when the
obligation meets the following conditions:
①That obligation is a present obligation of the enterprise;
②It is probable that an outflow of economic benefits from the enterprise will be required to settle
the obligation;
③A reliable estimate can be made of the amount of the obligation.
(2) Measurement of estimated liabilities
To fulfill the present obligations, which initially measured by the best estimate of the expenditure
required to settle the liability. Where there is a continuous range of possible amounts of the
expenditure required to settle the liability, as all kinds of possibilities are at same level, the best
estimate should be determined according to the average of the lower and upper limit of the range.
In other cases, the best estimate should be determined in accordance with the following methods:
①Where the contingency involves a single item, the best estimate involves a singe item, the best
estimate should be determined according to the most likely outcome;
②Where the contingency involves several items; The best estimate should be determined by
weighting all possible outcomes by their associated probabilities of occurrence.
To determine the best estimate, it should be considered with factors such as: related contingency
risks, uncertain matters and time value of currency. If time value of currency has a significant
impact, the best estimate should be measured at its converted present value through the relevant
future cash outflows.
Where some or all of the expenditures are expected to be reimbursed by a third party, the
reimbursement should be separately recognized as an asset only when it is virtually received. The
amount of the reimbursement should not exceed the carrying amount of the liability recognized.
At balance sheet date, the Company should review book value of provision for liabilities. If there
is strong evidence that the book value does not truly indicate the current best estimate, it should be
adjusted in accordance with the current best estimate.
23. Share-based payment and equity instruments
(1) Categories of share-based payment
Recognition and measurement of share-based payment are based on true, complete and valid
share-based payment agreement. Share-based payment transaction comprises equity-settled
share-based payment transactions and cash-settled share-based payment transactions.
(2) The measures for the recognition of the fair value of the equity instrument
For the shares granted to the employees, its fair value shall be measured in accordance to the
market price of the entity stocks, and at the same time it shall make adjustment in the
consideration of the relative terms and conditions which the stocks are granted (excluding the
vesting conditions besides the market conditions). If the entity is not traded publicly, it should be
measured in accordance to the estimated market prices and it shall make adjustment in the
consideration of the relative terms and conditions which the stocks are granted.
For the stock options granted to the employees, if there is no similar terms and conditions for the
option trade, it shall estimate the fair value of the granted option through option pricing model.
When the enterprise determines the fair value on the granting date of the equity instruments, it
shall consider the influence by the market conditions of the vesting conditions and the non vesting
condition in the share-based payment agreement. For the share-based payment containing non
vesting conditions, as long as the employees or other party satisfy all the non-marketing
conditions of the vesting conditions (such as service period, etc.), the enterprise shall confirm the
relevant costs of the received service.
(3) Basis for the recognition of the best estimation of the vested equity instruments
On the balance sheet date during the waiting period, the company shall make the best estimate
based on the subsequence information regarding the number of employees who newly obtains the
vest; revise the quantity of the predicted vested equity instruments in order to make the best
estimate of vested equity instruments.
(4) Relevant accounting treatment on the implementation, revision and termination of share-based
payment plan
Equity-settled share-based payment transactions in which the Company receives employee’s
services as consideration for equity instruments of the Company are measured as fair value of the
equity instrument granted to the employees. As to an equity-settled share-based payment in return
for services of employees, if the right may be exercised immediately after the grant, the fair value
of the equity instruments shall, on the date of the grant, be included in the relevant cost or expense
and the capital surplus shall be increased accordingly. As to a equity-settled share-based payment
in return for employee services, if the right cannot be exercised until the vesting period comes to
an end or until the prescribed performance conditions are met, then on each balance sheet date
within the vesting period, the services obtained during the current period shall, based on the best
estimate of the number of vested equity instruments, be included in the relevant costs or expenses
and capital surplus at the fair value of the equity instruments on the date of the grant.
Cash-settled share-based payment is measured in accordance with the fair value of liability
undertaken by the Company that is calculated based on the shares or other equity instruments. As
to a cash-settled share-based payment, if the right may be exercised immediately after the grant,
the fair value of the liability undertaken by the Company, on the date of the grant, is included in
the relevant costs or expenses, and the liabilities shall be increased accordingly. As to a
cash-settled share-based payment, if the right may not be exercised until the vesting period comes
to an end or until the specified performance conditions are met, on each balance sheet date within
the vesting period, the services obtained during the current period shall, based on the best estimate
of the information about the exercisable right, be included in the relevant costs or expenses and
the corresponding liabilities at the fair value of the liability undertaken by the enterprise.
If the modification increases the fair value of the equity instruments granted, the entity shall
include the incremental fair value granted in the measurement of the amount recognized for
services received as consideration for the equity instruments granted; similarly, if the modification
increases the number of equity instruments granted, the entity shall include the fair value of the
additional equity instruments granted, measured at the date of the modification, in the
measurement of the amount recognized for services received as consideration for the equity
instruments granted; if the entity modifies the vesting conditions in a manner that is beneficial to
the employee, the entity shall take the modified vesting conditions into account when applying the
requirements of a vesting condition.
If the modification reduces the fair value of the equity instruments granted, the entity shall not
take into account that decrease in fair value and shall continue to measure the amount recognized
for services received as consideration for the equity instruments based on the grant date fair value
of the equity instruments granted; if the modification reduces the number of equity instruments
granted to an employee, that reduction shall be accounted for as a cancellation of that portion of
the grant; if the entity modifies the vesting conditions in a manner that is not beneficial to the
employee, the entity shall not take the modified vesting conditions into account when applying the
requirements of a vesting condition.
If a grant of equity instruments is cancelled or settled during the vesting period (other than a grant
cancelled by forfeiture when the vesting conditions are not satisfied): as an acceleration of vesting,
and shall therefore recognize immediately the amount that otherwise would have been recognized
for services received over the remainder of the vesting period.
24. Repurchase of shares of the Company
Following the legally approved procedures, the company reduces its capital by repurchasing the
company’s stocks. The owners’ equity shall be adjusted by the difference between the total of the
cancelled share equity and capital stock, the cost to repurchase the stocks (including trading fees)
and stock equity. For the amount exceed the total of the par value of shares, it shall reduce the
capital reserve (capital premium), surplus reserve, and undistributed profits; for the amount less
than the total of the par value of shares, the capital reserve (capital premium) should be increased
for the amount less than corresponding equity cost.
The repurchasing shares shall be managed as treasury shares before they are cancelled or
transferred. The total cost to repurchase shares shall be transferred to the cost of the treasury
shares.
During the transfer of the treasury shares, when the transfer income is greater than the cost of
treasury shares, the capital reserve (capital premium) should be increased; when the transfer
income is less than the cost of treasury shares, capital reserve (capital premium), surplus reserve,
and undistributed profits should be written-down in turns.
Repurchasing stocks in purpose of equity incentives, the value of treasury stocks is measured at all
the actual cost relating to repurchasing stocks, and the details should be taken reference to the
registration.
25. Revenue
(1) Criteria for recognition time of revenue from selling goods
Revenue from the sale of goods is recognized when all of the following conditions have been
satisfied: The Company has transferred to the buyer the significant risks and rewards of ownership
of the goods; The Company retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold; The economic
benefits associated with the transaction will flow to the Company; and the relevant amount of
revenue and costs can be measured reliably.
Revenue from the sale of properties is recognized upon a) final acceptance of the construction of
property is completed and the property is transferred to buyer, b) buyer receives and accepts the
settlement billing and c) the Company receives all considerations of sale of property (down
payment and mortgage received from bank for property purchasing by installments) and the
conditions for obtaining certificate of title to house property are satisfied.
Revenue from leasing of property is recognized when a) the economic benefits associated with
leasing of property will flow to the Company and b) the amount of revenue can be measured
reliably. If lesser provides rent-free period, lesser shall allocate total rental by straight-line method
or other reasonable method during entire lease term without deducting rent-free period. Lesser
shall recognize rental income during rent-free period.
(2) Recognition basis of revenue from transferring use right of asset
Revenue arising from the Company’s assets used by others is recognized when (a) it is probable
that the economic benefits associated with the transaction will flow to the Company and (b) the
amount of the revenue can be measured reliably. Interest revenue should be measured based on the
length of time for which the Company's cash is used by others and the applicable interest rate.
Royalty revenue should be measured in accordance with the period and method of charging as
stipulated in the relevant contract or agreement.
(3) Basis of affirmation of revenue form rendering services
Revenue from rendering of services (excluding long-term contract) is by reference to the
percentage of completion of the service at closing date when the outcome of transaction can be
reliably estimated. The outcome of transaction can be reliably estimated when a) the total revenue
and cost can be reliably measured, b) the percentage of completion can be determined reliably and
c) the economic benefit pertaining to the service will flow to the Company. If the outcome of
transaction cannot be reliably estimated, the Company shall recognize revenue to the extent of
costs incurred that are expected to be recoverable and charge an equivalent amount of cost to
profit or loss.
(4) Recognition basis and method for the schedule of contracted project when recognizing the
revenue from providing labour services and construction contract by percentage-of-completion
method
Revenue from rendering of services (excluding long-term contract) is by reference to the
percentage of completion of the service at closing date when the outcome of transaction can be
reliably estimated. The outcome of transaction can be reliably estimated when a) the total revenue
and cost can be reliably measured, b) the percentage of completion can be determined reliably and
c) the economic benefit pertaining to the service will flow to the Company. If the outcome of
transaction cannot be reliably estimated, the Company shall recognize revenue to the extent of
costs incurred that are expected to be recoverable and charge an equivalent amount of cost to
profit or loss.
Recognition of construction contract revenue
A. When the outcome of a construction contract can be reliably estimated, construction contract
revenue is recognized by reference to the percentage of completion of the contract activity at
closing date. The outcome of a construction contract can be reliably estimated when a) total
contract revenue and contract costs incurred can be measured reliably, b) both the contract costs to
complete the contract and the percentage of completion can be measured reliably and c) it is
probable that the economic benefits associated with the contract will flow to the Company. The
percentage of completion of a contract is determined as the proportion that actual contract costs
incurred to date bears to the estimated total contract costs.
B. When the outcome of a construction contract cannot be estimated reliably, contract revenue
should be recognized to the extent of contract costs that can be recovered and contract costs
should be recognized as expense in the period in which they are incurred?
C. If total estimated contract costs will exceed total contract revenue, the estimated loss should be
recognized immediately as an expense during the current period.
26. Government subsidies
(1) Types
The Company’s government grants which including monetary assistance or non-monetary grants
at fair value, shall not be recognized until there is reasonable assurance that:
①The entity will comply with the condition attaching to them;
②The grants will be received from government.
(2) Accounting treatment method
① If monetary grants are received, it recognized at actual received or receivable amount. If
non-monetary grants are received, it recognized at fair value, replacing with nominal amount
while fair value is not reliable.
② The Capital approach for government grants, the grant is recognized as deferred income when
it is acquired. Since the related assets achieve its intended using status, the deferred income is
amortized and recognized in profit and loss during asset’s using period. If related assets were
disposed before using period ended, undistributed deferred income shall be shift to current profit
and loss at once.
The Income approach for government grants, to retrieve expense or loss of the Company in further
period, the government grants is recognized as deferred income, and shall be recorded in profit
and loss when that expense or loss occurred. To retrieve expense or loss of the Company in
current period, the government grants shall be recorded directly in current profit and loss.
③ Confirmed repayment of government grants
A. When deferred income exists, the repayment write-downs closing balance of deferred income,
and the exceed part shall be recognized in current profit and loss;
B. When no deferred income exists, the repayment shall be recognized directly in current profit
and loss.
27. deferred income tax assets and deferred income tax liabilities
(1) Recognition basis of deferred income tax assets
The Company adopts the balance sheet liability method for income tax expenses.
Where there are deductible temporary differences between the carrying amount of assets or
liabilities in the balance sheet and their tax bases, a deferred tax asset shall be recognized for all
those deductible temporary differences to the extent that it is probable that taxable profit will be
available against which the deductible temporary difference can be utilized. Deferred tax assets
arising from deductible temporary differences should be measured at the tax rates that are
expected to apply to the period when the asset is realized or the liability is settled.
At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will
be available against which the deductible temporary difference can be utilized, the deferred tax
asset unrecognized in prior period shall be recognized.
The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s
probable that sufficient taxable profit will not be available against which the deductible temporary
difference can be utilized, the Company shall write down the carrying amount of deferred tax asset,
or reverse the amount written down later when it’s probable that sufficient taxable profit will be
available.
(2) Recognition basis of deferred income tax liabilities
A deferred tax liability shall be recognized for all taxable temporary differences, which are
differences between the carrying amount of an asset or liability in the balance sheet and its tax
base, and measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled.
28. Operating lease and financial lease
(1) Accounting treatments of operating lease
Lessee in an operating lease shall treat the lease payment under an operating lease as a relevant
asset cost or the current profit or loss on a straight-line basis over the lease term. The initial direct
costs incurred shall be recognized as the current profit or loss; Contingent rents shall be charged as
expenses in the periods in which they are incurred.
Lessors in an operating lease shall present the assets subject to operating leases in the relevant
items of their balance sheet according to the nature of the asset. Lease income from operating
leases shall be recognized as the current profit or loss on a straight-line basis over the lease term;
Initial direct costs incurred by lessors shall be recognized as the current profit or loss; Lessors
shall apply the depreciation policy for the similar assets to depreciate the fixed assets in the
operating lease; For other assets in the operating lease , lessors shall adopt a reasonable
systematical method to amortize; Contingent rents shall be charged as expenses in the periods in
which they are incurred.
(2) Accounting treatments of financial lease
For the lessee, a fixed asset acquired under finance lease shall be valued at the lower of the fair
value of the leased asset and the present value of the minimum lease payments at the inception of
lease. The minimum lease payments as the entering value in long-term account payable, the
difference as unrecognized financing charges; The initial direct costs identified as directly
attributable to activities performed by the lessee during the negotiation and signing of the finance
lease such as handling fees, legal fees, travel expenses, stamp tax shall be counted as lease asset
value; the unrecognized financing charges shall be apportioned at each period during the lease
term and adopt the effective interest rate method to calculate and confirm the current financing
charge; Contingent rents shall be charged as expenses in the periods in which they are incurred.
When the lessee calculates the present value of the minimum lease payments, for that lessee who
can obtain the interest rate implicit in the lease, the discount rate shall be the interest rate implicit
in the lease; otherwise the discount rate shall adopt the interest rate specified in the lease
agreement. If the lessee can not get the interest rate implicit in the lease and there is no specified
interest rate in the lease agreement, the discount rate shall adopt the current bank loan interest rate.
Lessees shall depreciate the leased assets with the depreciation policy which is consistent with the
normal depreciation policy for similar assets. If there is reasonable certainty that the lessee will
obtain ownership by the end of the lease term, the depreciation shall be allocated to the useful life
of the asset. If there is no reasonably certainty that the lessee will obtain ownership by the end of
the lease term, the asset shall be depreciated over the shorter of the lease term and its useful life.
On the initial date of financial lease, lessee of the financial lease shall record the sum of the
minimum lease payments and initial direct costs as the financing lease accounts receivable, and
also record the non-guaranteed residual value; recognize the difference between the total
minimum lease payments , initial direct costs, non-guaranteed residual value and sum of the
present value as the unrealized financing income; the unrealized financing income shall be
distributed to each period over the lease term; adopt the actual interest rate to calculate the current
financial income; Contingent rents shall be charged as expenses in the periods in which they are
incurred.
(3) Accounting treatment of leaseback
Inapplicable
29. Assets held for sale
(1) Recognition criteria of the assets held for sale
The Non-Current Assets which meet the following conditions will be classified as assets held for
sales by the company:
①The entity has made the resolution in disposing the non-current assets.
②The entity has signed the irrevocable transfer agreement with the assignee.
③The sale transaction is highly probable to be completed within one year.
(2) Accounting treatments of the assets held for sale
For the fixed assets held for sales, the entity shall adjust the predicted net residual value of this
fixed asset to make the predicted net residual value of this fixed asset to reflect the amount of its
fair value less costs to sell, but it shall not exceed the original book value of fixed assets at the
time when it meets the conditions of held for sales. The difference between the original book
value and the adjusted predicted net residual value shall be treated as loss in assets and presented
in profit or loss of current period. The fixed assets held for sales shall not count the depreciation
but shall be measured at the lower of its carrying amount and the fair value less costs to sell.
The other non-current assets such as impairment assets which meet the conditions of held for sales
shall be treated in accordance to the above principles.
30. Capitalization of assets
Inapplicable
31. Hedging accounting
Inapplicable
32. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the report period?
□Yes √No
There existed not major change of accounting policy, accounting estimate in the reporting period.
(1) Change of accounting policies
Were the main accounting policies changed during the report period?
□Yes √No
(2) Change of accounting estimates
Were the main accounting estimates changed during the report period?
□Yes √No
33. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the report period?
□Yes √No
There existed not major previous accounting errors in the reporting period.
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the
report period?
□Yes √No
(2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the
report period?
□Yes √No
34. Other main accounting policies and estimates as well as compilation method of financial
statements
Accounting policy for impairment of assets of the Company:
It suggests that an asset may be impaired if there are any of the following indications
(1) In the period, an asset's market value has declined significantly more than it would be expected
as a result of the passage of time or normal use during the current period;
(2) significant changes with an adverse effect on the Company have taken place during the period,
or will take place in the near future, in the technological, market, economic or legal environment
in which the Company operates or in the market to which an asset is dedicated;
(3) market interest rates or other market rates of return on investments have increased during the
period, and those increases are likely to affect the discount rate used in calculating an asset's value
in use and decrease the asset's recoverable amount materially;
(4) Evidence is available of obsolescence or physical damage of an asset;
(5) The asset becomes idle, or the Company plans to discontinue or to dispose of an asset before
the previously expected date;
(6) evidence is available from internal reporting that indicates that the economic performance of
an asset is, or will be, worse than expected, for example, the net cash flow generated from assets
or the operating profit (or loss) realized by assets is lower (higher) than the excepted amount, etc.;
and
(7) Other evidence indicates that assets may be impaired.
The Company assesses long-term equity investment, fixed assets, construction materials,
constructions in progress and intangible assets (except for those with uncertain useful life) that
apply Accounting Standard for Business Enterprises No. 8 - Impairment of assets at the balance
sheet date. If there is any indication that an asset may be impaired, the Company should assess the
asset for impairment and estimate the recoverable amount of the impaired asset. Recoverable
amount is measured as the higher of an asset's fair value less costs to sell and the present value of
estimated future cash flows from continuing use of the asset. If carrying amount of an asset is
higher than its recoverable amount, the carrying amount of this asset should be written down to its
recoverable amount with the difference recognized as impairment loss and charged to profit or
loss accordingly. Simultaneously a provision for impairment loss should be made.
There is any indication that an asset may be impaired, the Company usually estimates its
recoverable amount on an individual item basis. However if it’s not possible to estimate
recoverable amount of the individual asset, the Company should determine the recoverable
amount of the cash-generating unit to which the asset belongs.
An asset's cash-generating unit is the smallest group of assets that includes the asset and generates
cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Identification of cash-generating unit is based on whether the cash inflows generated by the
cash-generating unit are largely independent of the cash inflows from other assets or groups of
assets.
The Company assesses goodwill acquired in a business combination and intangible assets with
uncertain useful life for impairment each year no matter whether indication that an asset may be
impaired exists or not. Impairment assessment of goodwill is carried together with the impairment
assessment of related cash-generating unit or group of cash-generating units.
Once impairment loss is recognized, it cannot be reversed in subsequent financial period.
(V) Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
VAT Operating revenue 3%、6%、17%
Business tax Operating revenue 3%、5%
Urban maintenance and construction tax Turnover tax payable 1%、7%
Enterprise income tax Taxable income 25%
Education surtax Turnover tax payable 3%
Local education surtax Turnover tax payable 2%
Levee fee Operating revenue 0.01%
Added amount from transfer of Four progressive levels with the tax rate
Land value appreciation tax
real property ranging from 30% to 60%.
The income tax rates adopted by each subsidiary and branch factory
Note: The applicable income tax rate of the subsidiaries located in main land China is 25%; the
applicable income tax rate of the subsidiaries located in Hong Kong is 16.5%.
2. Tax preference and approval
3. Other explanations
Pursuant to the stipulations of documents ―Notification about pilot taxpayer arranging business tax
as for the change of business tax into VAT‖ (SGSG [2012] No. 11) issuing by of Shenzhen State
Administration of Tax and Local Taxation Bureau and ―Notice about management ways of
renewal of VAT and consumption tax preference‖ issuing by Shenzhen State Administration of
Tax, subsidiaries of the Company Shenzhen ITC Vehicles Industry Co., Ltd., Shenzhen ITC
Motor Rent Co., Ltd., Shenzhen Shenxin Taxi Co., Ltd. changed pilot business tax into VAT from
1 November 2012 and imposed VAT with a simple tax charges of 3%.
(VI) Business combination and consolidated financial statement
1. Subsidiaries
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
Balance
of
parent
compan
y’s
equity
after
Actual
deductin
amount The The Include
g the
of Other proporti proporti d in Deducti
Register Minorit differen
Subsidia Register Busines Busines investm essential on of on of consolid ble
Type ed y ce that
ries ed place s nature s scope ents at investm holding voting ated minority
capital interest loss of
the ent shares rights stateme interests
minority
period-e （%） （%） nt
interests
nd
exceed
equity
obtained
by
minority
sharehol
ders
Shenzhe Wholly- Develop
n owned ment,
Huangc subsidia construc
heng ry tion,
Real operatio
Estate n and
Co., Real manage
Ltd. Shenzhe estate 300000 ment of 30,000,
100% 100% Yes
n develop 00.00 commer 000.00
ment cial
service
facilities
relevant
to
Huangg
ang port
Shenzhe Wholly- Real Land
n owned Shenzhe estate 309500 develop 30,950,
100% 100% Yes
Property subsidia n develop 00.00 ment, 000.00
and ry ment real
52
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Real estate
Estate manage
Develop ment;
ment construc
Co., tion
Ltd. supervis
ion;
property
manage
ment
PRD Wholly- Develop
Group owned ment
Xuzhou subsidia and sale
Dapeng ry of
Real real
Estate estate,
Develop Real construc
ment estate 500000 tion 50,000,
Xuzhou 100% 100% Yes
Co.,Ltd. develop 00.00 manage 000.00
ment ment,
lease of
properti
es,
commo
dity
sales
Donggu Wholly-
an owned Develop
Guomao subsidia ment
Changs ry and sale
Real
heng of
Donggu estate 200000 20,000,
Real real 100% 100% Yes
an develop 00.00 000.00
Estate estate,
ment
Develop lease of
ment properti
Co., es
Ltd.
PRD Wholly- Develop
Yangzh owned Real ment
ou Real subsidia Yangzh estate 500000 and sale 50,000,
100% 100% Yes
Estate ry ou develop 00.00 of 000.00
Develop ment real
ment estate,
53
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co., construc
Ltd. tion
manage
ment,
purchas
e of
material
s
Hainan Wholly- Real
Xinda owned estate
Develop subsidia develop
ment ry ment,
Co., Ltd decorati
Real
on
estate 200000 20,000,
Haikou engineer 100% 100% Yes
develop 00.00 000.00
ing,;
ment
planting
; import
&
export
practice
Shenzhe
n ITC
Wholly- Property
Property Property
owned Shenzhe 200000 rent and 20,000,
Manage manage 100% 100% Yes
subsidia n 00.00 manage 000.00
ment ment
ry ment
Co.,
Ltd.
Shenzhe
Property
n
manage
Huangc
ment;
heng Wholly-
Property court
Real owned Shenzhe 500000 5,000,0
manage virescen 100% 100% Yes
Estate subsidia n 0.00 00.00
ment ce and
Manage ry
cleansin
ment
g
Co.,
services
Ltd.
Shando Property
Wholly-
ng Property manage
owned 500000 5,000,0
Shenzhe Jinan manage ment; 100% 100% Yes
subsidia 0.00 00.00
n ITC ment houseke
ry
Property eping
54
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Manage services,
ment property
Co., sales
Ltd. and
agency
and
catering
services
Chongqi Chongqi
ng ng
Shenzhe Property
Wholly-
n ITC Property manage
owned 500000 5,000,0
Property manage ment 100% 100% Yes
subsidia 0.00 00.00
Manage ment and
ry
ment agency
Co.,
Ltd.
Chongqi Installin
ng g,
reconstr
ucting
Chongqi and
ng Wholly- repairin
Ao’bo owned 350000 g the 3,500,0
Service 100% 100% Yes
Elevator subsidia 0.00 elevator 00.00
Co., ry ; sales
Ltd. of
elevator
and
accessor
ies
Shenzhe
Mainten
n
Wholly- ance of
Tianque
owned Shenzhe 500000 elevator 5,000,0
Elevator Service 100% 100% Yes
subsidia n 0.00 and air 00.00
Technol
ry conditio
ogy Co.,
n
Ltd.
Shenzhe Domesti
Wholly-
n ITC c
owned Shenzhe 120000 1,200,0
Property Service commer 100% 100% Yes
subsidia n 0.00 00.00
Manage ce;
ry
ment material
55
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Enginee supply;
ring mainten
Equipm ance
ent Co., and
Ltd. repair of
electric
equipme
nt
Retail
sales of
Shenzhe Chinese
Wholly-
n ITC meal,
owned Shenzhe Catering 200000 2,000,0
Food western- 100% 100% Yes
subsidia n service 0.00 00.00
Co., style
ry
Ltd. food
and
wine
Supervi
Shenzhe
sion of
n
general
Property
Wholly- Constru industri
Constru
owned Shenzhe ction 300000 al and 3,000,0
ction 100% 100% Yes
subsidia n Supervi 0.00 civil 00.00
Supervi
ry sion construc
sion
tion
Co.,
engineer
Ltd.
ing
Providin
g
property
Shenzhe
Wholly- informat
n Real
owned Shenzhe 138000 ion, 1,380,0
Estate Service 100% 100% Yes
subsidia n 0.00 property 00.00
Exchan
ry agency
ge
and
evaluati
on
Shenzhe
Motor
n ITC Wholly-
transpor
Vehicles owned Shenzhe 298500 29,850,
Service t and 100% 100% Yes
Industry subsidia n 00.00 000.00
motor
Co., ry
rent
Ltd.
56
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhe Motor
n ITC Wholly- transpor
Motor owned Shenzhe 160000 t and 16,000,
Service 100% 100% Yes
Rent subsidia n 00.00 motor 000.00
Co., ry rent
Ltd.
Shenzhe
n Tesu
Vehicle Wholly-
Driver owned Shenzhe 200000 Driver 2,000,0
Service 100% 100% Yes
Training subsidia n 0.00 training 00.00
Center ry
Co.,
Ltd.
Shenzhe Investin
n g in
Internati commer
onal Wholly- cial,
Trade owned Shenzhe 120000 material 12,000,
Trading 100% 100% Yes
Plaza subsidia n 00.00 and 000.00
ry supplyin
g
compan
y
Sichuan Wholly- Wholes
Tianhe owned Chengd 800000 ale in 8,000,0
Trading 100% 100% Yes
Industry subsidia u 0.00 domesti 00.00
Co., Ltd ry c market
Zhanjia Real
ng estate
Shenzhe develop
n Real Wholly- Real ment
Estate owned Zhanjia estate 253000 and 2,530,0
100% 100% Yes
Develop subsidia ng develop 0.00 sales of 00.00
ment ry ment commo
Co., dity
Ltd. premise
s
Shum Wholly- Real Property
HKD20
Yip owned Hong estate agency 20,000, 98,099,
000000. 100% 100% Yes
Properti subsidia Kong develop and 000.00 637.90
00
es ry ment investm
57
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Develop ent
ment
Co.,
Ltd.
Wayhan Property
g Wholly- Real develop
Develop owned Hong estate ment
HKD2 2.00 100% 100% Yes
ment subsidia Kong develop
Co., ry ment
Ltd.
Chief Property
Wholly- Real
Link agency
owned Hong estate HKD10 862,087
Properti and 100.00 70% 70% Yes
subsidia Kong develop 0 .06
es Co., investm
ry ment
Ltd. ent
Syndics Wholly- Real Property
Investm owned Hong estate investm
HKD4 4.00 100% 100% Yes
ent Co., subsidia Kong develop ent
Ltd. ry ment
Other notes to subsidiaries obtained by establishment and investment:
Syndics Investment Co., Ltd. is the wholly owned subsidiary of Chief Link Properties Co., Ltd.
(2) Subsidiaries obtained by business combination under same control
Unit: RMB Yuan
Balance
of
parent
compan
Actual y’s
amount The The Include equity
of Other proporti proporti d in Deducti after
Register Minorit
Subsidia Register Busines Busines investm essential on of on of consolid ble deductin
Type ed y
ries ed place s nature s scope ents at investm holding voting ated minority g the
capital interest
the ent shares rights stateme interests differen
period-e （%） （%） nt ce that
nd loss of
minority
interests
exceed
equity
58
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
obtained
by
minority
sharehol
ders
Shenzhe Operati
n Wholly on of
Shenxin owned Shenzhe 138000 taxi and 33,195,
Service 100% 100% Yes
Taxi subsidia n 00.00 property 948.77
Co., ry manage
Ltd. ment
Other notes to subsidiaries obtained by business combination under same control:
(3) Subsidiaries obtained by business combination not under same control
Unit: RMB Yuan
Balance
of
parent
compan
y’s
equity
after
Actual
deductin
amount The The Include
g the
of Other proporti proporti d in Deducti
Register Minorit differen
Subsidia Register Busines Busines investm essential on of on of consolid ble
Type ed y ce that
ries ed place s nature s scope ents at investm holding voting ated minority
capital interest loss of
the ent shares rights stateme interests
minority
period-e （%） （%） nt
interests
nd
exceed
equity
obtained
by
minority
sharehol
ders
Other notes to subsidiaries obtained by business combination not under same control:
There are not subsidiaries obtained by business combination not under same control.
59
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Special purpose entities or operating entities with control right formed by entrusted
operation or lease
Unit: RMB Yuan
Business contact with the Closing balance of major assets and liabilities affirmed in
Name
Company consolidated statement
Other explanation on special purpose entities or operating entities with control right formed by
entrusted operation or lease:
In November 2012, Shenzhen Foreign Economic Trade and Investment Co., Ltd. (FETI) and
subsidiary of the Company Shenzhen Shenxin Taxi Co., Ltd. (SXT) signed the contract ―Stripping
Assets and Liabilities Consigned Operating Management Contract‖, agreeing that stripping assets
were delegated to FETI company in charge of liquidation, operating management and disposition.
The delegation is due on 31 December 2014. More details see the 2nd and 3rd notes of enterprise
combination (VI) in tenth chapter Financial Report in 2012 Annual Report. According to the
consigned operating management contract, from 1 June 2012 to 31 December 2012, SXT paid
FETI RMB 313,000 revenue from assets operation and RMB 626,000 every year later, the
remnants are possessed by SXT. In line with ―Stripping Assets and Liabilities Consigned
Operating Management Contract‖, the Company actually controlling the stripping assets of SXT is
an operating equity holding controlling right through consigned operating method.
By 30 June 2013, balances of stripping assets in consolidated statement are as following:
Item Amount Item Amount
Monetary capital 138,923.73 Other account payables 784,501.81
Other account receivables 50.00 Other illiquid assets 22,310,250.22
Investment real estate 10,604,974.93
Fixed assets 11,482,788.17
Project in progress 57,000.00
Long-term immortalized 811,015.20
expenses
Total 23,094,752.03 Total of liabilities and 23,094,752.03
equities
Notes: other illiquid liabilities belong to stripping assets equities invested and controlled by Shen.
3. Explanation on changes in consolidated scope
Explanation on changes in consolidated scope:
There was not change of consolidated scope in the reporting period.
□ Applicable √ Inapplicable
60
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
4. Subsidiaries that newly combined into consolidation scope in the reporting period
The subsidiaries, special purpose entities and operating entities with control right formed by
entrusted operation or lease that newly included in the consolidated scope
Unit: RMB Yuan
Name Closing net assets Net profit in current period
The subsidiaries, special purpose entities and operating entities with control right formed by
entrusted operation or lease that not longer included in the consolidated scope
Unit: RMB Yuan
Net profit from year-begin to
Name Net asset at the disposal date
disposal date
Other notes to changes in consolidated scope:
There existed not situation stated above in the reporting period.
5. Business combination under same control during the reporting period
Unit: RMB Yuan
Cash flow arising
Judgment basis of The consolidated The consolidated
from operating
business Actual controller of income from net profit from
The combined party activities between
combination under the same control period-begin to period-begin to
period-begin and
the same control combination date combination date
combination date
Other notes to business combination under same control:
There was not combination under the same control in the reporting period.
6. Business combination not under same control during the reporting period
Unit: RMB Yuan
The combined party Amount of goodwill Calculation method of goodwill
Other notes to business combination not under same control:
There was not combination not under the same control in the reporting period.
7. Subsidiaries reduced by selling equities without control right during the reporting period
Name of subsidiary Disposal date Recognition method of gains and losses
Other notes to subsidiaries reduced by selling equities without control right during the reporting
period:
Not existed in the reporting period.
61
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
8. The counter purchases in the reporting period
Calculation method of goodwill
Judgment basis of counter Recognition method of recognized or included into
The backdoor party
purchase combination costs current gains and losses in the
combination
Other notes to counter purchases:
Naught
9. Mergers in the reporting period
Unit: RMB Yuan
Type of merger Main assets merged in Main liabilities merged in
Mergers under the same control Item Amount Item Amount
Mergers not under the same control Item Amount Item Amount
Other notes to mergers:
Naught
10. Exchange rates of major items in financial statements for foreign entities
For Hong Kong registered subsidiaries included in consolidated scope, such as Shum Yip
Properties Development Co., Ltd., Wayhang Development Co., Ltd., Chief Link Properties Co.,
Ltd., and Syndics Investment Co., Ltd. The exchange rates of currencies are as follows:
(1) For assets and liabilities, using the spot exchange rate of HKD against RMB (1：0.7966)on the
balance sheet date;
(2) For the paid-in capital, using the spot exchange rate of HKD against RMB (1：0.7917) when
obtained;
(3) For the income statement, using the average exchange rate of HKD against RMB (1：0.8038)
when trade occurred.
(Ⅶ) Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Closing balance Opening balance
Item Amount in Exchange Amount in Exchange
Amount in RMB Amount in RMB
foreign currency rate foreign currency rate
Cash: -- -- 289,986.98 -- -- 197,165.38
RMB -- -- 288,168.98 -- -- 196,113.48
62
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
HKD 2,282.20 0.7966 1,818.00 1,297.20 0.8109 1,051.90
Bank deposit: -- -- 898,514,462.09 -- -- 793,456,036.83
RMB -- -- 852,052,668.99 -- -- 788,676,797.01
HKD 58,325,123.15 0.7966 46,461,793.10 5,893,747.47 0.8109 4,779,239.82
Other monetary funds: -- -- 5,168,536.48 -- -- 4,071,109.16
RMB -- -- 5,168,536.48 -- -- 4,071,109.16
Total -- -- 903,972,985.55 -- -- 797,724,311.37
Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen,
deposited overseas or with potential collecting risks:
The Company has no such accounts limited by being mortgaged, pledged or frozen, deposited
overseas or with potential collecting risks during the reporting period.
2. Trading financial assets
(1) Trading financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
(2) Trading financial assets with realizable limit
Unit: RMB Yuan
Trading restriction or other significant limits in
Item Closing balance
realization
(3) Hedging instruments and notes to relevant hedging transaction
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
(2) Notes receivable pledged at period-end
Unit: RMB Yuan
63
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Issuing entity Date of issuance Expiring date Amount Remark
(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the
contract or agreement, and undue notes endorsed to other parties at the end of the period
Notes transferred to accounts receivable because drawer of the notes fails to execute the contract
or agreement
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Notes:
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Note:
Notes of bank acceptance bill that already discounted or pledged
4. Dividends receivable
Unit: RMB Yuan
Whether relating
Reason for
Item Opening balance Increase Decrease Closing balance accounts occur
undeceived
impairment
Of which:： -- -- -- -- -- --
Of which:： -- -- -- -- -- --
Note:
5. Interest receivable
(1) Interest receivable
Unit: RMB Yuan
Increase in current Decrease in current
Item Opening balance Closing balance
period period
(2) Overdue interest
Unit: RMB Yuan
Borrowing entity Overdue days (day) Amount of overdue interest
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3) Notes to interest receivable
6. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance
Category
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable with
significant single amount
107,016,17 50,712,546. 107,016,1 51,016,173.8
and individually 76% 47.39% 80.31% 47.67%
3.89 49 73.89 9
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
30,251,877. 3,229,293.6 22,907,92
Group 2 21.48% 10.67% 17.19% 2,323,913.94 10.14%
40 6 2.62
30,251,877. 3,229,293.6 22,907,92
Subtotal of the groups 21.48% 10.67% 17.19% 2,323,913.94 10.14%
40 6 2.62
Accounts receivable with
insignificant single
3,541,246.0 3,541,246.0 3,328,980
amount and individually 2.51% 100% 2.5% 3,328,980.05 100%
7 7 .05
withdrawn bad debt
provision
140,809,29 57,483,086. 133,253,0 56,669,067.8
Total -- -- -- --
7.36 22 76.56 8
Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision
√ Applicable □ Inapplicable
Unit: RMB Yuan
Provision for bad Withdrawing
Content of accounts receivable Book balance Reason
debt proportion（%）
Involved in lawsuit,
Shenzhen Jiyong Properties & Resources
98,611,328.05 42,307,700.65 42.9% referring to Note Ⅶ
Development Company
-1(1), Note Ⅸ-2
Shenzhen Tewei Industry Co.,Ltd. 2,836,561.00 2,836,561.00 100% Uncollectible for a
65
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
long period
Shenzhen Lunan Industry Development Poor operational
2,818,284.84 2,818,284.84 100%
Co., Ltd. status
Uncollectible for a
Zhou Tangjin 2,750,000.00 2,750,000.00 100%
long period
Total 107,016,173.89 50,712,546.49 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt
provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging Book balance Provision for bad Book balance Provision for bad
Amount Proportion debts Amount Proportion debts
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
24,075,739.53 79.58% 722,272.19 18,822,782.16 82.17% 564,683.46
(including 1 year)
Subtotal of within
24,075,739.53 79.58% 722,272.19 18,822,782.16 82.17% 564,683.46
1 year
1-2 years 2,551,361.20 8.43% 255,136.12 1,626,810.61 7.1% 162,681.06
2-3 years 1,413,556.03 4.67% 424,066.81 70,733.43 0.31% 21,220.03
Over 3 years 2,211,220.64 7.31% 1,827,818.54 2,387,596.42 10.41% 1,575,329.39
3 to 4 years 61,159.60 0.2% 30,579.80 1,314,269.42 5.74% 657,134.71
4 to 5 years 1,764,111.58 5.83% 1,411,289.28 775,661.60 3.38% 620,529.28
Over 5 years 385,949.46 1.28% 385,949.46 297,665.40 1.3% 297,665.40
Total 30,251,877.40 -- 3,229,293.66 22,907,922.62 -- 2,323,913.94
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt
provision
□Applicable√ Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable√ Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts
receivable:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Content of accounts Withdrawing proportion
Book balance Provision for bad debt Reason
receivable （%）
66
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen Crown Prince Possible unrecoverable
1,460,905.54 1,460,905.54 100%
Restaurant because of dispute
Zhanjiang Haihu Real With a long age that was
700,000.00 700,000.00 100%
Estate Co., Ltd unrecoverable
Shenzhen Shengfenglu,
With a long age that was
ITC Jewel & Gold Co., 498,681.65 498,681.65 100%
unrecoverable
Ltd.
Huidong Automobile With a long age that was
250,000.00 250,000.00 100%
Co., Ltd. unrecoverable
Zhanjiang With a long age that was
135,972.00 135,972.00 100%
SpecialCement Plant unrecoverable
With a long age that was
Hainan Meijia Tea House 126,318.15 126,318.15 100%
unrecoverable
With a long age that was
Other 369,368.73 369,368.73 100%
unrecoverable
Total 3,541,246.07 3,541,246.07 -- --
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
Recognition basis of Reversed or collected
Content of accounts Reversed or collected Reversed or collected
original bad debt amount of the accrued
receivable reason amount
provision bad debt provision
Shenzhen Jiyong Real Estate
Reversed Litigation involved 42,611,328.05 303,627.40
Development Co., Ltd.
Total -- -- 42,611,328.05 --
The withdrawal of bad debt provision of accounts receivable with significant single amount or
insignificant single Unit: RMB Yuan
Withdrawing proportion
Content Book balance Bad debt amount Reason
（%）
Notes to accounts receivable with insignificant single amount but large risks of groups after
grouping by credit
(3) The write-off accounts receivable
Unit: RMB Yuan
Whether arising
Nature of accounts
Name of entity Write-off time Write-off amount Write-off reason from related party
receivable
transaction or not?
Notes to write off of accounts receivable:
67
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
There was not writing off of accounts receivable in the reporting period.
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%)
voting rights of the Company
Unit: RMB Yuan
Closing balance Opening balance
Name of entity
Book balance Withdrawal amount Book balance Withdrawal amount
Shenzhen Investment Holdings Co.,
546,442.22 16,393.27 415,302.14 12,459.06
Ltd.
Total 546,442.22 16,393.27 415,302.14 12,459.06
(5) Information of top 5 accounts receivable:
Unit: RMB Yuan
Relationship with the
Name of entity Amount Aging Proportion
Company
Shenzhen Jiyong
Properties & Resources Non-related relationship 98,611,328.05 Over 5 years 70.03%
Development Company
Huwei Technologies Co.,
Non-related relationship 10,189,105.59 Within 1 year 7.24%
Ltd.
Shenzhen Tewei Industry
Controlling shareholder 2,836,561.00 Over 5 years 2.01%
Co., Ltd.
Shenzhen Lunan Industry
Non-related relationship 2,818,284.84 Over 5 years 2%
Development Co., Ltd.
Zhou Tangjin Non-related relationship 2,750,000.00 Over 5 years 1.95%
Total -- 117,205,279.48 -- 83.23%
(6) The amounts due from related parties
Unit: RMB Yuan
The relationship with the
Name of entity Amount Proportion
Company
Shenzhen Investment
Controlling shareholder 546,442.22 0.39%
Holdings Co., Ltd.
Total -- 546,442.22 0.39%
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(7) Information of accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount of termination
recognition
(8) If securitization is carried out on accounts receivable as the underlying assets, please list
amount of assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Period-end
Assets:
Liabilities:
7. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Category Balance Provision for bad debts Balance Provision for bad debts
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Other accounts
receivable that is
92,465,783.6 92,465,783.6 92,670,839.6
individually significant 73.92% 100% 76.86% 92,670,839.68 100%
8 8 8
and provisions for bad
debts individually
Other accounts receivable that provisions for bad debts by group
22,689,724.1 12,087,989.5 17,971,840.9
Group 2 18.14% 53.28% 14.91% 11,600,151.62 64.55%
9 6 6
22,689,724.1 12,087,989.5 17,971,840.9
Subtotal of group 18.14% 53.28% 14.91% 11,600,151.62 64.55%
9 6 6
Other accounts
receivable that is
individually insignificant 9,925,245.51 7.94% 9,925,245.51 100% 9,925,245.51 8.23% 9,925,245.51 100%
but provisions for bad
debts individually
125,080,753. 114,479,018. 120,567,926.
Total -- -- -- 114,196,236.81 --
38 75 15
Notes for categories of other accounts receivable:
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other closing accounts receivable that is individually significant and provisions for bad debts
individually.
√ Applicable □Inapplicable
Unit: RMB Yuan
Content of other accounts Withdrawing proportion
Book balance Bad debt amount Reason
receivable （%）
Payment for discharging
Gintian Industry (Group) of guaranty responsibility
56,600,000.00 56,600,000.00 100%
Co., Ltd that was difficult to be
recollected
Anhui Nanpeng Uncollectible for a long
7,443,104.00 7,443,104.00 100%
Papermaking Co., Ltd period
Shenzhen Shengfenglu, There is no asset to
ITC Jewel & Gold Co., 6,481,353.60 6,481,353.60 100% execute the verdict, thus
Ltd lead to uncollectibility
Shanghai Yutong Real
Uncollectibility for the
estate development Co., 5,676,000.00 5,676,000.00 100%
reason of verdict
Ltd
Wuliangye Restaurant 5,523,057.70 5,523,057.70 100% Has been liquidated
Hong Kong Yueheng
3,271,837.78 3,271,837.78 100% Has been liquidated
Development Co., Ltd
Dameisha Tourism
2,576,445.69 2,576,445.69 100% Suspended project
Center
Elevated Train Project 2,542,332.43 2,542,332.43 100% Suspended project
Shenzhen ITC Industrial
2,351,652.48 2,351,652.48 100% The company is insolvent
Development Co., Ltd
Total 92,465,783.68 92,465,783.68 -- --
In the group, other accounts receivable those provisions for bad debts by aging analysis:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Book balance Book balance
Aging Provision for bad Provision for bad
Proporti Proporti
Amount debts Amount debts
on on
Within 1 year
Including:
Within 1 year 6,386,557.10 28.15% 191,596.73 5,907,685.35 32.87% 177,230.56
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Subtotal of within 1 year 6,386,557.10 28.15% 191,596.73 5,907,685.35 32.87% 177,230.56
1-2 years 4,564,951.62 20.12% 456,495.17 528,158.03 2.94% 52,815.80
2-3 years 217,179.38 0.96% 65,153.82 33,129.44 0.18% 9,938.83
Over 3 years 11,521,036.09 50.78% 11,374,743.84 11,502,868.14 64% 11,360,166.42
3 to 4 years 47,764.18 0.21% 23,882.09 3,596.51 0.02% 1,798.26
4 to 5 years 612,050.83 2.7% 489,640.67 704,517.32 3.92% 563,613.86
Over 5 years 10,861,221.08 47.87% 10,861,221.08 10,794,754.31 60.06% 10,794,754.31
Total 22,689,724.19 -- 12,087,989.56 17,971,840.96 -- 11,600,151.62
In the group, other accounts receivable those provisions for bad debts by balance percentage:
□Applicable√ Inapplicable
In the group, other accounts receivable those provisions for bad debts by other methods:
□Applicable√ Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts
receivable:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Content of other accounts
Book balance Provision for bad debts Withdrawal proportion Reason
receivable
Shenzhen Wufang
Pottery & Porcelain 1,747,264.25 1,747,264.25 100% Poor operation status
Industrial Co., Ltd
Unrecoverable due to
Liang Weimin 1,357,137.11 1,357,137.11 100% retirement of
employee
Shenzhen Guesthouse Unrecoverable for a long
909,960.40 909,960.40 100%
Co., Ltd term
Chongqing Hua’er Unrecoverable
799,163.50 799,163.50 100%
Decorations Co., Ltd.
Compensation for Shidai Owner unable to repay
new residence mortgage 601,762.21 601,762.21 100%
guarantee in ABC the loan
Unrecoverable due to
Chen Liangfang 500,000.00 500,000.00 100% disappearance of the
debtor
Yan Kunping 496,307.77 496,307.77 100% Unrecoverable for a long
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
term
Fang Bijia Unrecoverable for a long
344,134.00 344,134.00 100%
term
Shenzhen Property
Architectural Design 335,828.92 335,828.92 100% Unrecoverable
Company
Other 2,833,687.35 2,833,687.35 100% Unrecoverable
Total 9,925,245.51 9,925,245.51 -- --
(2) Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
Content of other accounts Reason for reversed or Basis for determination Accrued amount before Amount of reversed or
receivable recovered of bad debts provision reversal or recovery recovered
Withdrawal of closing individually significant or insignificant but provisions for bad debts
individually accounts receivable:
Unit: RMB Yuan
Content of other
Book balance Amount of bad debts Withdrawal percentage Reason
accounts receivable
Notes of individually insignificant but was of big risk after grouped by credit risk other accounts
receivable:
(3) Information of other accounts receivable written off in the reporting period
Unit: RMB Yuan
Whether arising from
Nature of other
Name of company Write off date Write off amount Write off reason related party
accounts receivable
transactions or not
Notes of written-off of other accounts receivable:
There is not written-off of other accounts receivable in the reporting period.
(4) Other accounts receivable is due from shareholders with more than 5% (including 5%)
of the voting shares of the Company
Unit: RMB Yuan
Closing balance Opening balance
Name of entity Withdrawal amount Withdrawal amount
Book balance Book balance
of bad debts of bad debts
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(5) Nature or details of other significant accounts receivable
Unit: RMB Yuan
Nature or details of the
Name of entity Amount Proportion of the total (%)
amount
Gintian Industry (Group) Co., Executed amount of
56,600,000.00 45.25%
Ltd. guarantee
Anhui Nanpeng Papermaking
7,443,104.00 Operating turnover funds 5.95%
Co., Ltd
Shenzhen Shengfenglu, ITC
6,481,353.60 Current account 5.18%
Jewel & Gold Co., Ltd
Shanghai Yutong Real estate
5,676,000.00 Current account 4.54%
development Co., Ltd
Wuliangye Restaurant 5,523,057.70 Current account 4.42%
Hong Kong Yueheng
3,271,837.78 Current account 2.62%
Development Co., Ltd
Dameisha Travel Center 2,576,445.69 Current account 2.06%
Elevated Train Project 2,542,332.43 Current account 2.03%
Shenzhen ITC Industrial
2,351,652.48 Current account 1.88%
Development Co., Ltd
Total 92,465,783.68 -- 73.93%
Notes
(6) Information of top five other accounts receivable
Unit: yuan
Proportion of the total
Name of entity Relationship Amount Term
(%)
Gintian Industry (Group)
Non-related party 56,600,000.00 Over 5 years 45.25%
Co.,Ltd.
Anhui Nanpeng
Non-related party 7,443,104.00 Over 5 years 5.95%
Papermaking Co., Ltd
Shenzhen Shengfenglu,
ITC Jewel & Gold Co., Non-related party 6,481,353.60 Over 5 years 5.18%
Ltd
Shanghai Yutong Real
estate development Co., Non-related party 5,676,000.00 Over 5 years 4.54%
Ltd
Wuliangye Restaurant Non-related party 5,523,057.70 Over 5 years 4.42%
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total -- 81,723,515.30 -- 65.34%
(7) Information of the amounts due from related parties
Unit: yuan
Name of entity Relationship Amount Proportion of the total (%)
Anhui Nanpeng Papermaking
Associated enterprise 7,443,104.00 5.95%
Co., Ltd
Shenzhen ITC Industrial
Associated enterprise 2,351,652.48 1.88%
Development Co., Ltd
Shenzhen Wufang Pottery &
Associated enterprise 1,747,264.25 1.4%
Porcelain Industrial Co., Ltd
Controlled by the parent
Shenzhen Guesthouse Ltd. company of the Company at the 909,960.40 0.73%
same time
Total -- 12,451,981.13 9.96%
(8) Information of other accounts receivable that terminated recognition
Unit: yuan
Gains or loses related to the termination of
Item Amount of termination
recognition
(9) If securitization is carried out on other accounts receivable as the underlying assets,
please list amount of assets and liabilities arising from further involvement
Unit: yuan
Item Closing balance
Assets:
Liabilities:
8. Prepayment
(1) List by aging analysis:
Unit: yuan
Aging Closing balance Opening balance
Proportion Proportion
Amount Amount
(%) (%)
Within 1 year 12,294,474.30 62.57% 55,422,464.21 85.64%
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
1 year to 2
7,354,000.00 37.43% 8,839,702.60 13.66%
years
2 years to 3
0.00 0% 72,805.50 0.11%
years
Over 3 years 1,039.83 0.01% 380,017.80 0.59%
Total 19,649,514.13 -- 64,714,990.11 --
Notes of aging of prepayment:
(2) Information of the top 5 prepayment
Unit: yuan
Name of entity Relationship Amount Time Reason for unsettled
Zhanjiang Western
Guangdong Non-related party 7,350,000.00 1 to 2 years Engineering Unsettled
Construction Company
Prepayment of social
security charges in Non-related party 4,853,561.60 1 to 2 years Engineering Unsettled
building industry
Prepaid utilities Non-related party 1,906,719.30 Within 1 year Advanced utilities
Shenzhen Ailite
Mechanical and
Non-related party 1,504,000.00 1 to 2 years Engineering Unsettled
Electrical Equipment
Co., Ltd.
Advanced air conditioni
ng transformation acco
Non-related party 1,350,000.00 Within 1 year Engineering Unsettled
unts
Total -- 16,964,280.90 -- --
Notes of important companies of prepayment:
All the entities of prepayment exist no relationship with the Company in the reporting period.
(3) Information about amount due from shareholders with more than 5% (including 5%)
of the voting shares of the Company in prepayment
U
nit: yuan
Closing balance Opening balance
Name of entity The amount of bad The amount of bad
Book balance Book balance
debt provision debt provision
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(4) Notes of prepayment
A. Prepayment at the period-end decreased 69.64% when compared to the beginning of the
period, mainly because the prepay taxes rolled out owning to the project settlement in the
reporting period.
B. Prepayment of social security charges in building industry was prepaid in accordance with requirements of
Temporary Method on Management of Prepayment of Social Security Charges in Building Industry of Xuzhou
(XZBF (2009) No. 113). Social security charges in building industry refer to charges in aspects of social securities
the building enterprises contributed for employees such as endowment insurance, medical insurance,
unemployment insurance, insurance against injury at work, maternity insurance etc. (including part of personnel
contribution). This charge is base on engineer project, conducting unity measure basis that charge from building
entities in unity and making final settlement with building enterprises in unity.
C. Information about amount due from shareholders with more than 5% (including 5%) of
the voting shares of the Company in prepayment
□ Applicable √ Inapplicable
9. Inventory
(1) Category
Unit: yuan
Closing balance Opening balance
Item Impairment of Impairment of
Book balance Book value Book balance Book value
inventories inventories
Raw materials 1,822,870.71 490,822.80 1,332,047.91 1,902,535.57 506,522.30 1,396,013.27
Inventory goods 48,890.20 0.00 48,890.20 43,286.70 43,286.70
Turnover material 511,560.60 0.00 511,560.60 515,562.10 515,562.10
Products held for
real estate 387,163,488.16 12,544,031.24 374,619,456.92 1,054,626,950.28 32,647,460.45 1,021,979,489.83
development
Properties under
1,275,365,685.79 0.00 1,275,365,685.79 736,298,555.66 736,298,555.66
development
Completed
353,236,855.44 0.00 353,236,855.44 540,441,643.58 540,441,643.58
properties for sale
Total 2,018,149,350.90 13,034,854.04 2,005,114,496.86 2,333,828,533.89 33,153,982.75 2,300,674,551.14
(2) Provision for falling price of inventories
Unit: yuan
Category Opening book Increase Decease Closing book balance
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
balance Reversal Resell
Raw materials 506,522.30 15,699.50 490,822.80
Inventory goods 0.00
Turnover material 0.00
Products held for real
32,647,460.45 20,103,429.21 12,544,031.24
estate development
Total 33,153,982.75 20,119,128.71 13,034,854.04
(3) Details of provision for falling price of inventories
Unit: yuan
Proportion of reversal of
Basis on provision for falling
Item Reasons for reversal provision for impairment of
price of inventories
inventories to closing balance
The estimated net realizable
Raw materials value is lower than the book Net realizable value rise again 3.2%
value
The estimated net realizable
Products held for land
value is lower than the book Net realizable value rise again 160.26%
development
value
Notes of inventory:
List of the capitalization amount of borrowing costs in the closing balance of inventory
Catogory Item Opening balance Increase in this Decreased in this Closing balance
period period
Properties under Banshanyujing 7,367,181.38 6,629,692.93 13,996,874.31
development No.1
Properties under Songhu Langyuan 1,520,319.93 3,160,252.48 4,680,572.41
development
Completed properties Xinhua City 2,873,505.96 2,574,509.26 298,996.70
for sale
Completed properties Shengang No.1 7,268,867.94 4,649,613.97 2,619,253.97
for sale
Completed properties Langqiao Garden 58,429,445.84 16,325,534.67 42,103,911.17
for sale
Completed properties Caitianyise 12,288,408.45 749,529.78 12,284,455.38 753,482.85
for sale
Total 89,747,729.50 10,539,475.19 35,834,113.28 64,453,091.41
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
10. Other current assets
Unit: yuan
Item Closing balance Opening balance
Notes of other current assets:
11. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: yuan
Item Closing fair value Opening fair value
In the reporting period, the Company reclassified the held-to-maturity investment into
available-for-sale financial assets, a total of RMB* was reclassified, which takes *% of total
matured investment before reclassification.
Notes of available-for-sale financial assets
(2) Long-term liability investment of available-for-sale financial assets
Unit: yuan
Accrued
Initial Interest in the accounts
Opening Closing
Item Category Balance investment Matured date reporting receivable or
balance balance
cost period received
interest
Notes of long-term liability investment of available-for-sale financial assets:
12. Held-to-maturity investment
(1) Information
Unit: yuan
Item Closing book balance Opening book balance
Notes of held-to-maturity investment:
(2) Information of held-to-maturity investment sold in the reporting period but was not
matured
Unit: yuan
Item Amount Percentage of the investment amount before sales
Notes of undue held-to-maturity investment sold in the reporting period:
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
13. Long-term accounts receivable
Unit: yuan
Category Closing balance Opening balance
14. Investment to joint ventures and associated enterprises
Unit: yuan
Percentage of Voting Total operation
Net profit of
Name of holding shares percentage of Total closing Total closing Net closing revenue of the
the reporting
investee of the the Company assets liabilities assets reporting
period
Company in investee period
I. Joint ventures
Shenzhen Jifa
Warehouse 50% 50% 59,449,708.82 2,625,481.25 56,824,227.57 3,154,851.09 488,085.61
Co., Ltd
Shenzhen ITC
Tian’an
50% 50% 102,726,270.55 39,402,882.41 63,323,388.14 11,145,245.34 8,056,305.85
Properties Co.,
Ltd
Shenzhen
Tian’an
International
Building 50% 50% 36,699,929.40 32,172,997.51 4,526,931.89 7,759,207.80 235,855.84
Property
Management
Co., Ltd
II. Associated enterprises
Shenzhen ITC
Industrial
38.33% 38.33%
Development
Co., Ltd
Anhui 30% 30%
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Nanpeng
Papermaking
Co., Ltd
Shenzhen
Wufang
Pottery &
26% 26%
Porcelain
Industrial Co.,
Ltd
Notes if significant differences exist between the important accounting policies and accounting estimations of joint
ventures, associated enterprises and the Company:
15. Long-term equity investment
(1) List of long-term equity investment
Unit: yuan
Explanati
on for
indifferen
Withdraw
ces
n
Share between Cash
Voting impairme
Accounti Initial holding the share Impairme bonus in
Opening Increase/d Closing percentag nt
Investee ng investmen percentag holding nt the
balance ecrease balance e in provision
method t cost e in percentag provision reporting
investee in the
investee e and period
reporting
voting
period
percentag
e in
investee
Shenzhen
Jifa
Warehous Equity 30,645,05 28,168,07 244,042.8 28,412,11
50% 50%
e method 6.04 0.98 1 3.79
Company
Limited
Shenzhen
Equity 23,186,12 37,247,88 -5,586,19 31,661,69 9,614,345
ITC 50% 50%
method 4.00 7.05 2.98 4.07 .90
Tian’an
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Properties
Co., Ltd
Shenzhen
Tian’an
Internatio
nal
Equity 1,500,000 3,531,192 -1,267,72 2,263,465 1,385,654
Building 50% 50%
method .00 .12 6.19 .93 .10
Property
Managem
ent Co.,
Ltd
Shenzhen
Wufang
Pottery & Cost 18,983,61 18,983,61 18,983,61 18,983,61
0.00
Porcelain method 4.14 4.14 4.14 4.14
Industrial
Co., Ltd
Shenzhen
ITC
Industrial Cost 3,682,972 3,682,972 3,682,972 3,682,972
0.00
Develop method .55 .55 .55 .55
ment Co.,
Ltd
Anhui
Nanpeng
Cost 13,824,00 13,824,00 13,824,00 13,824,00
Papermak 0.00
method 0.00 0.00 0.00 0.00
ing Co.,
Ltd
China
Cost 2,962,500 2,962,500 2,962,500 2,160,300
T.H. Co., 0.00
method .00 .00 .00 .45
Ltd.
North
Machiner Cost 3,465,000 3,465,000 3,465,000 3,465,000
0.00
y (Group) method .00 .00 .00 .00
Co., Ltd.
Guangdo
ng
Huayue Cost 8,780,645 8,780,645 8,780,645 8,780,645
0.00
Real method .20 .20 .20 .20
Estate
Co., Ltd.
Shenzhen Cost 8,500,000 8,500,000 0.00 8,500,000 0.00
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
ITC method .00 .00 .00
Petroleu
m
Company
Limited
Guangzh
ou
Lishifeng Cost 6,000,000 6,000,000 6,000,000
0.00 0.00
Automobi method .00 .00 .00
le Co.,
Ltd.
Sanya
East Cost 1,350,000 1,350,000 1,350,000 1,350,000
0.00
Travel method .00 .00 .00 .00
Co., Ltd.
Shensan Cost
17,695.09 17,695.09 0.00 17,695.09 17,695.09
Co., Ltd. method
Macao
Huashen
Cost
Enterpris 78,728.16 78,728.16 -1,388.35 77,339.81 77,339.81 -1,388.35
method
e Co.,
Ltd.
Chongqin
g
Guangfa
Real Cost 2,388,896 2,388,896 -42,127.5 2,346,769 2,346,769 -42,127.5
estate method .80 .80 4 .26 .26 4
developm
ent Co.,
Ltd.
Saipan Cost 1,779,386 1,779,386 -31,378.9 1,748,007 1,748,007 -31,378.9
Project method .25 .25 9 .26 .26 9
127,144,6 140,760,5 -6,684,77 134,075,8 56,436,34 -74,894.8 11,000,00
Total -- -- -- --
18.23 88.34 1.24 17.10 3.76 8 0.00
(2) Information of the limitation on the capability to transfer capital to investee
Unit: yuan
Item that with limitation on the capability Investment losses unrecognized in current
Reason for limitation
to transfer capital to investee period
Notes of long-term equity investment:
Note 1: In Jan. 2008, Shenzhen ITC Vehicle Industry Co., Ltd. (hereinafter as the ―Vehicles
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Company‖) signed a gas station lease contract with Shenzhen Guanghong Investment Company
Limited,, which promises that Shenzhen Guanghong Investment Co., Ltd rents the assets and
rights such as the land of gas station, the gas station, business occupancy, dormitory, equipments
and facilities, as well as business management right from Shenzhen Guomao Oil Co., Ltd
(Shenzhen Guomao Automobile Industry Co., Ltd holds 100% equity of the company) and takes
over the operation and management, with a lease term of 15 years. Since the date of operating
lease, the Company no longer exerts actual control on Shenzhen Guomao Oil Co., Ltd, therefore,
included in the consolidation scope, according to the Accounting Standard for Enterprises.
Note 2: The decreased balance of investment and impairment provision of Macao Huashen
Enterprise Co., Ltd., Saipan Project, Chongqing Guangfa Real estate development Co., Ltd.,
which was due to translation of financial statements in foreign currencies.
Note 3: The decreased balance of investment of Shenzhen ITC Tian’an Properties Co., Ltd,
Shenzhen Tian’an International Building Property Management Co., Ltd., which was due t
o receives of cash bonus.
16. Investment property
(1) Investment property calculated by cost
Unit: yuan
Item Opening book balance Increase Decrease Closing book balance
I. Total cost 470,778,113.31 6,187,725.78 197,419.86 476,768,419.23
1. Property and
462,808,158.91 6,187,725.78 197,419.86 468,798,464.83
buildings
2. Land use right 7,969,954.40 7,969,954.40
II Accumulated
depreciation and 185,519,509.14 9,199,642.75 150,316.17 194,568,835.72
amortization
1. Property and
181,677,681.83 8,945,070.19 150,316.17 190,472,435.85
buildings
2. Land use right 3,841,827.31 254,572.56 4,096,399.87
III. Total net book
value of investment 285,258,604.17 -3,011,916.97 47,103.69 282,199,583.51
real estate
1. Property and
281,130,477.08 -2,757,344.41 47,103.69 278,326,028.98
buildings
2. Land use right 4,128,127.09 -254,572.56 3,873,554.53
IV. Accumulated
285,258,604.17 -3,011,916.97 47,103.69 282,199,583.51
amount of provision
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
for impairment of
investment real estate
1. Property and
281,130,477.08 -2,757,344.41 47,103.69 278,326,028.98
buildings
2. Land use right 4,128,127.09 -254,572.56 3,873,554.53
Unit: yuan
The reporting period
Amount of amortization and depreciation in the reporting period 9,063,126.64
Withdrawal amount of provision for impairment of investment real estate
0.00
in the reporting period
(2) Investment real estate measured by fair value
Unit: yuan
Decreased in the reporting
Increased in the reporting period
period
Transferred
Opening fair to Transferred Closing fair
Item
value owner-occup Changes in to value
Purchase Disposal
ied property fair value owner-occup
or ied property
inventories
Explanation on investment real estates that changed the measurement method and have not
completed to handle the property right certificate during the reporting period, and relevant
explanation on the reason for failing to complete to handle the property right certificate and the
expected completion time:
Fixed assets-Buildings increased in the reporting period due to the rental inventory and the
fixed assets had transferred to investment real estate.
17. Fixed assets
(1) Fixed assets details
Unit: yuan
Opening book Decrease in the Closing book
Item Increase in the reporting period
balance reporting period balance
I. Total original book value 207,889,230.04 5,445,661.43 6,935,651.77 206,399,239.70
Including: Property and
116,853,547.15 0.00 1,323,087.56 115,530,459.59
building
Machineries 9,087,385.22 0.00 0.00 9,087,385.22
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Vehicles 53,453,807.69 4,483,442.00 5,377,248.83 52,560,000.86
Electrical and other
23,763,311.01 962,219.43 197,547.00 24,527,983.44
equipments
Decoration of fixed assets 4,731,178.97 0.00 37,768.38 4,693,410.59
Closing book
Opening book Increase in the Withdrawal in the Decrease in the
-- balance in current
balance reporting period reporting period reporting period
period
II. Accumulated
128,992,344.67 0.00 7,766,900.98 5,506,068.43 131,253,177.22
depreciation
Including: Property and
68,910,180.45 0.00 2,168,580.31 201,585.41 70,877,175.35
building
Machineries 6,328,968.54 0.00 87,329.82 0.00 6,416,298.36
Vehicles 30,037,072.51 0.00 4,725,101.81 5,115,243.15 29,646,931.17
Electrical and other
19,475,210.41 0.00 694,782.37 186,721.99 19,983,270.79
equipments
Decoration of fixed assets 4,240,912.76 0.00 91,106.67 2,517.88 4,329,501.55
Opening book Closing balance in
-- --
balance current period
III. The net book value of
78,896,885.37 -- 75,146,062.48
fixed assets
Including: Property and
47,943,366.70 -- 44,653,284.23
building
Machineries 2,758,416.68 -- 2,671,086.86
Vehicles 23,416,735.18 -- 22,913,069.69
Electrical and other
4,288,100.60 -- 4,544,712.65
equipments
Decoration of fixed assets 490,266.21 -- 363,909.04
IV. Total impairment
75,717.16 -- 75,717.16
provision
Electrical and other
75,717.16 -- 75,717.16
equipments
Decoration of fixed assets --
IV. Total impairment
78,821,168.21 -- 75,070,345.32
provision
Including: Property and
47,943,366.70 -- 44,653,284.23
building
Machineries 2,758,416.68 -- 2,671,086.86
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Vehicles 23,416,735.18 -- 22,913,069.69
Electrical and other
4,212,383.44 -- 4,468,995.49
equipments
Decoration of fixed assets 490,266.21 -- 363,909.04
Depreciation amount of this reporting period was RMB 7,766,900.98; RMB 0.00 was transferred
into fixed assets from construction project.
(2) Temporary idle fixed assets
Unit: yuan
Accrued Impairment
Item Original book value Net book value Note
depreciation provision
Property and
3,865,391.77 1,677,291.34 2,188,100.43
building
(3) Fixed assets leased in from financing lease
Unit: yuan
Item Original book value Accrued depreciation Net book value
(4) Fixed assets leased out from operation lease
Unit: yuan
Category Closing book value
(5) Information of hold-for-sale fixed assets at period-end
Unit: yuan
Item Book value Fair value Estimated disposal cost Estimated settle date
Hainan Xinda Building and
1,173,024.00 3,849,564.00 310,652.00 Dec, 2013
other house property
(6) Information of fixed assets failed to accomplish certification of property
Item Reason Estimated accomplish date
Notes of fixed assets:
The decreased amount of property and building was mainly due to the rental property transferred
from fixed assets to investment real estate.
The decreased amount of the transport equipment was mainly due to the rental taxi subsid
iaries updated the operation vehicles.
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
18. Construction in progress
(1) List of construction in progress
Unit: yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Shenxin Building relevant
57,000.00 57,000.00 57,000.00 57,000.00
smoke renovation
Total 57,000.00 57,000.00 57,000.00 57,000.00
(2) Significant changes in construction in progress
Unit: yuan
Includin
Project g:
Capitaliz
Transferr input Capitaliz capitaliz Source
Name of Opening ed to Other Project ation of Closing
Budget Increase percenta ation of ation of of
project balance fixed decrease process interest balance
ge of interest interest funding
assets rate (%)
budget this
period
Notes of significant changes in construction in progress:
(3) Impairment provision of construction in progress
Unit: yuan
Increase in the Decrease in the Reason for
Item Opening amount Closing balance
reporting period reporting period withdrawal
(4) Information of procedures of significant construction in progress
Item Project process Note
(5) Notes of construction in progress
19. Engineering materials
Unit: yuan
Increase in the Decrease in the
Item Opening balance Closing balance
reporting period reporting period
Notes of engineering materials:
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
20. Clearance of fixed assets
Unit: yuan
Reason for transferring to
Item Opening book value Closing book value
clearance
Notes of clearance process of fixed assets with a clearance term of over 1 year since the transfer
into fixed assets:
21. Productive biological assets
(1) Measured by cost
Unit: yuan
Item Opening book value Increase Decrease Closing book balance
I Planting
II. Livestock
III. Forestry
IV. Fishery
(2) Measured by fair value
Unit: yuan
Item Opening book value Increase Decrease Closing book balance
I. Planting
II. Livestock
III. Forestry
IV. Fishery
Notes of productive biological assets:
22. Oil and gas assets
Unit: yuan
Item Opening book balance Increase Decrease Closing book balance
Notes of oil and gas assets:
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
23. Intangible assets
(1) Information
Unit: yuan
Increase in the reporting Decrease in the
Item Opening book balance Closing book balance
period reporting period
I. Total original book value 170,884,406.80 0.00 0.00 170,884,406.80
Taxi operating licenses 170,866,146.80 0.00 0.00 170,866,146.80
Financial software 18,260.00 0.00 0.00 18,260.00
II. Total accrued amortization 56,786,253.69 3,576,811.52 0.00 60,363,065.21
Taxi operating licenses 56,768,253.69 3,576,551.52 0.00 60,344,805.21
Financial software 18,000.00 260.00 0.00 18,260.00
III. Total net book value of
114,098,153.11 -3,576,811.52 0.00 110,521,341.59
intangible assets
Taxi operating licenses 114,097,893.11 -3,576,551.52 0.00 110,521,341.59
Financial software 260.00 -260.00 0.00 0.00
IV. Total impairment
provision
Taxi operating licenses
Financial software 114,098,153.11 -3,576,811.52 110,521,341.59
Total book value of
114,097,893.11 -3,576,551.52 0.00 110,521,341.59
intangible assets
Taxi operating licenses 260.00 -260.00 0.00 0.00
Amortization was of RMB 3,576,811.52 in the reporting period.
(2) Company development expense
Unit: yuan
Decrease
Item Opening balance Increase Recognized into Recognized as Closing balance
current gains/losses intangible assets
The percentage of development expense in the total expenditure of R&D projects in the reporting
period:
The percentage of the value of intangible assets formed from the internal R&D of the Company in
the closing book value of intangible assets:
Notes of the developed projects of the Company, including the projects with individual value more
than RMB 1 million and recorded with the assessed value, relevant assessment agency and method
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
shall be disclosed:
24. Goodwill
Unit: yuan
Impairment
Name of investee or event that Increase in the Decrease in the
Opening balance Closing balance provision at
generated goodwill reporting period reporting period
period-end
Notes of test method of goodwill impairment and impairment withdrawal method:
25. Long-term amortization expense
Unit: yuan
Amortization Reason for other
Item Opening balance Increase Other decrease Closing balance
balance decrease
Reformation
project for
1,816,250.25 86,488.14 1,729,762.11
Tianhong Subway
No. 3
Shenxin Building
Relevant Fire
and Other 1,007,116.20 18,000.00 181,572.00 843,544.20
Reconstruction
-related
Garages
820,921.95 297,465.30 99,831.54 1,018,555.71
engineered
Total 3,644,288.40 315,465.30 367,891.68 3,591,862.02 --
Notes of long-term amortization expense:
26. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
Deferred tax assets and liabilities that already recognized
Unit: yuan
Item Closing balance Opening balance
Deferred income tax assets:
Provision for impairment of assets 335,249.10 335,764.51
Deductible losses 12,662,217.96 11,495,872.46
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Accrued land VAT 182,059,595.62 140,731,876.12
Accrued unpaid dismiss welfare 0.00 788,140.00
Transferred employee education fee pay
1,140.51 1,140.51
deductible in the following year
Transferred advertisement fee deductible in the
664,109.00 664,109.00
following year
Unrealized internal sales gain and loss 7,256,852.42 7,828,210.75
Estimated profit calculated at pre-sale revenue of
1,063,243.30 32,662,711.15
property enterprises
Subtotal 204,042,407.91 194,507,824.50
Deferred income tax liabilities
Prepayments of increment tax on land value 2,739,089.94
Subtotal 2,739,089.94
List of unrecognized deferred income tax assets
Unit: yuan
Item Closing balance Opening balance
Deductible losses of unrecognized deferred income tax assets will due in the following years Unit: yuan
Year Closing balance Opening balance Note
List of taxable differences and deductible differences items
Unit: yuan
Temporary differences amount
Item
As at period-end As at period-begin
Taxable differences items
Prepayments of increment tax on land value 10,956,359.77
Subtotal 10,956,359.77
Deductible differences items
Assets impairment provision 1,340,996.38 1,343,057.99
Accrued land VAT 728,238,382.46 562,927,504.45
Accrued unpaid dismiss welfare 0.00 3,152,560.00
Deductible losses 50,648,871.83 45,983,489.80
Transferred employee education fee pay deductible 4,562.04 4,562.04
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
in the following year
Transferred advertisement fee deductible in the
2,656,436.00 2,656,436.00
following year
Unrealized internal sales gain and loss 29,027,409.65 31,312,842.98
Estimated profit calculated at pre-sale revenue of
4,252,973.20 130,650,844.60
property enterprises
Subtotal 816,169,631.56 778,031,297.86
(2) Deferred income tax assets and liabilities are listed as the net value after offset
Components items of deferred income tax assets and liabilities after mutual set-off
Unit: yuan
Deductible or taxabl Deferred income tax Deductible or taxable
Deferred income tax
e temporary differen assets or liabilities temporary
assets or liabilities
Item ces after mutual set after mutual set-off at differences after
after mutual set-off at
-off at the end of t the opening of the mutual set-off at the
the end of the period
he period period opening of the period
Deferred income tax assets 204,042,407.91 194,507,824.50
Deferred income tax liabilities 2,739,089.94
Notes of deferred income tax assets and the deferred income tax liabilities
Unit: yuan
Item Amounts of the mutual set-off in the period
Notes of deferred income tax assets and the deferred income tax liabilities
27. List of provision for assets impairment
Unit: yuan
Opening book Decrease Closing book
Item Increase
balance Reversal Written off balance
I. Provision for bad debt 170,865,304.69 1,606,339.79 303,627.40 205,912.11 171,962,104.97
II. Provision for inventory
33,153,982.75 20,119,128.71 13,034,854.04
falling price
III. Impairment provision of
56,511,238.64 -74,894.88 56,436,343.76
long-term equity investment
IV. Impairment provision of
75,717.16 75,717.16
fixed assets
Total 260,606,243.24 1,531,444.91 303,627.40 20,325,040.82 241,509,019.93
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Notes of the list of assets impairment:
The resale of the Inventory falling price reserves in current period is due largely to the sales and
the roll-out of the stock of Tingjiu Property Company.
The reduction of the long-term equity investment devaluation provision in current period is due to
the translation of foreign currency statements.
28. Other non-current assets
Unit: yuan
Item Closing balance Opening balance
Notes of other non-current assets
29. Short-term loan
(1)Category
Unit: yuan
Category Closing balance Opening balance
Mortgage loan 260,000,000.00 220,000,000.00
Guarantee loan 60,000,000.00
Guarantee + pledge loan 40,000,000.00 40,000,000.00
Mortgage + pledge loan 40,000,000.00
Total 300,000,000.00 360,000,000.00
Notes:
Information of short-term loan listed as below:
Loan entity Starting date End date Currency Loan rate Closing balance Openi
Shenzhen Investment Holdings Ltd. 17, May, 2013 16, May, 2014 RMB 6.0000% 240,000,000.00 240,0
Bank of Beijing Co., Ltd. Shenzhen 8, Apr, 2013 8, Apr, 2014 RMB 6.6000% 20,000,000.00 20,00
Branch
Industrial Bank Co., Ltd. Shenzhen 17, Apr, 2013 17, Apr, 2014 RMB 6.3000% 40,000,000.00 40,00
Branch
Bank of Shanghai Co., Ltd. Shenzhen 28, Apr, 2013 228, Apr, 2014 RMB 6.6000% 60,00
Branch
Total 300,000,000.00 360,0
The short-term loan of RMB 240,000,000 is the entrusted loan that produced from the Sh
enzhen Investment Holdings Ltd., which entrusted China Everbright Bank, King Branch.
When the Company renewed the loans after the expiration on March 28th 2013 and made th
e loans on May 17th 2013, the lending rate raised from 6.9554% to 6%.
(2) List of unsettled mature short-term loan
Unit: yuan
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Reason for
Name of creditor Amount of loan Rate of loan Usage Estimated settle date
unsettlement
RMB000 was paid back after the Balance Sheet Date.
Notes of short-term loan, for those gaining extended term, notes term of extension and new mature
date:
30. Trading financial liabilities
Unit: yuan
Item Closing fair value Opening fair value
Notes of trading financial liabilities:
31. Notes payable
Unit: yuan
Category Closing balance Opening balance
RMB000 will be due in next fiscal period.
Notes of notes payable:
32. Accounts payable
(1) List of accounts payable
Unit: yuan
Item Closing balance Opening balance
Accounts payable 270,583,152.07 298,525,752.32
Total 270,583,152.07 298,525,752.32
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting
shares of the Company
Unit: yuan
Name of entity Closing balance Opening balance
(3) Notes of the significant accounts payable aging over one year:
The Company’s accounts payable aging over one year are mainly the unpaid construction payment
and pledged amount, etc.
List of accounts payable to shareholders or the related parties with more than 5%
(including 5%) of the voting shares of the Company
□ Applicable √ Inapplicable
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
33. Advance from customers
(1)
Unit: yuan
Item Closing balance Opening balance
Advance from customers 41,284,037.14 678,075,291.01
Total 41,284,037.14 678,075,291.01
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the
voting shares of the Company
Unit: yuan
Name of entity Closing balance Opening balance
(3) Notes of significant advance from customers aging over one year:
The reason of significant advance from customers aging over one year is the received payment
which had not yet carried forward the income because it haven’t meet with the revenue
recognition criteria.
Advance from customers at the period-end decreased 93.91% when compared to the beginning of
the year, mainly because the advance sales proceeds of real estate projects had met with the
recognition criteria and carried forward the income.
List of advanced from customers from shareholders or other related parties with more
than 5% (including 5%) of the voting shares of the Company
□ Applicable √ Inapplicable
34. Payroll payable
Unit: yuan
Item Opening book balance Increase Decrease Closing book balance
I. Salary, bonus,
44,958,460.02 85,167,881.13 95,998,799.18 34,127,541.97
allowance, subsidy
II. Employee welfare 0.00 2,227,377.25 2,227,377.25 0.00
III. Social insurance 414,453.62 13,610,436.58 13,692,747.75 332,142.45
Including: Medical
83,301.87 2,437,127.86 2,489,896.52 30,533.21
insurance premiums
Basic pension
189,813.64 7,837,253.98 7,899,261.82 127,805.80
benefits
Annuity 110,120.00 2,246,770.55 2,201,337.14 155,553.41
Unemployment
16,864.51 604,582.22 608,658.12 12,788.61
insurance
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Work-related injury
7,459.74 247,043.69 251,742.54 2,760.89
insurance
Maternity insurance 6,893.86 228,163.53 232,356.86 2,700.53
Other social
0.00 9,494.75 9,494.75 0.00
insurance
IV. Housing fund 1,556,014.25 3,716,931.20 3,939,940.10 1,333,005.35
V. Redemption for
terminations of labor 3,986,211.80 158,224.00 3,344,347.00 800,088.80
contract
VI. Others 3,806,477.22 2,455,900.61 1,655,238.23 4,607,139.60
Of which: labor
union budget and
3,806,477.22 2,455,900.61 1,655,238.23 4,607,139.60
employee education
budget
Compensation for
terminating the labor 54,721,616.91 107,336,750.77 120,858,449.51 41,199,918.17
contract
RMB * is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB 4,607,139.60, and the
non-monetary benefits are RMB 0.00, as well as the compensation for terminating the labor
contract is RMB 3,344,347.00.
The estimated distribution date and amount as well as other arrangements for payroll payable:
35. Taxes payable
Unit: yuan
Item Closing balance Opening balance
Value-added tax -146,421.15 160,057.44
Consumption tax 4,342,844.57 7,085,925.17
Business tax 122,485,636.20 160,519,629.84
Corporate income tax 1,058,964.99 762,203.88
Personal income tax 319,766.70 505,130.58
Urban maintenance and construction tax -8,325.27 -10,066.15
Stamp duty 129,145.90 219,588.15
Education surtax 92,314.74 146,185.40
Local education surtax 728,238,382.47 562,927,504.45
Land VAT 957,103.87 980,346.47
Property tax 2,616.90 6,945.79
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Dive fee 564,494.99 356,228.69
Other 858,036,524.91 733,659,679.71
Notes of taxes payable: for the taxable income of branch companies and factories approved to be
inter-adjusted by their local tax authorities, the Company shall specified their calculation
procedure.
The taxes payable at the period-end increased 16.95% when compared to the beginning of the
period, mainly because the unpaid LAT provision at the end of the reporting period increased.
36. Interest payable
Unit: yuan
Item Closing balance Opening balance
Notes:
37. Dividends payable
Unit: yuan
Reason for unsettlement over 1
Name of company Closing balance Opening balance
year
Notes:
38. Other accounts payable
(1)
Unit: yuan
Item Closing balance Opening balance
Other accounts payable 175,239,314.62 195,045,649.98
Total 175,239,314.62 195,045,649.98
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the
voting shares of the Company
Unit: yuan
Name of entity Closing balance Opening balance
(3) Notes of the other large amount accounts payable aging over 1 year.
The Company’s other large amount accounts payable aging over 1 year are mainly the accrued
land VAT and various deposits, etc.
List of other accounts payable from shareholders with more than 5% (including 5%) of the voting
shares of the Company
□ Applicable √ Inapplicable
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(4) Notes of other accounts payable with significant amount
Other accounts payable with significant amount listed as below:
Item or entity Closing balance Nature or content
Provision for land appreciation fees 56,303,627.40 Provision for land
appreciation fees
Leasing and other deposits 30,950,778.61 Margin
Shenzhen Property Jifa Warehouse Co., Ltd. 21,045,808.00 Current accounts
Guangzhou Lishifeng Automobile Co., Ltd. 15,344,017.08 Current accounts
Shenzhen ITC Tian’an Properties Co., Ltd 3,885,654.10 Current accounts
Total 127,529,885.19
39. Estimated liabilities
Unit: yuan
Item Opening balance Increase Decrease Closing balance
Notes:
40. Non-current liabilities due within 1 year
(1)
Unit: yuan
Item Closing balance Opening balance
Long-term loan due within 1 year 13,416,666.68 12,216,666.68
Long-term accounts payable due within 1 year 2,693,221.64 2,693,221.64
Total 16,109,888.32 14,909,888.32
(2) Long-term loan due within 1 year
Long-term loan due within 1 year
Unit: yuan
Item Closing balance Opening balance
Pledge loan 13,416,666.68 12,216,666.68
Total 13,416,666.68 12,216,666.68
RMB 000 of long-term loan due within 1 year was of mature loan with extended term.
Top five long-term loans due within 1 year:
Unit: yuan
Closing balance Opening balance
Creditor Starting date Ending date Currency Rate (%) Foreign Foreign
RMB balance RMB balance
currency currency
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
balance balance
Shenzhen
Branch of
11, Jan, 2012 10, Jan, 2015 RMB 6.77% 0.00 9,750,000.00 0.00 8,550,000.00
Ping An
Bank
Shenzhen
Fuhong
23, Nov, 23, Nov,
Branch of RMB 6.77% 0.00 3,666,666.68 0.00 3,666,666.68
2011 2014
Ping An
Bank
13,416,666.6 12,216,666.6
Total -- -- -- -- -- --
8 8
Mature loan of long-term loan due within 1 year:
Unit: yuan
Reason for Estimated settle
Creditor Amount of loan Overdue date Annual rate (%) Usage
unsettlement date
0.00
Total 0.00 -- -- -- -- --
RMB 1,500,000.00was paid back after Balance Sheet Date:
Notes of long-term borrowings due within 1 year:
(3) Bonds payable due within 1 year
Unit: yuan
Accrued Interest paid
Opening Closing
Issuance Issuing interest in in the Closing
Name Par value Term interest interest
date amount current reporting balance
payable payable
period period
Notes:
(4) Long-term accounts payable due within 1 year
Unit: yuan
Creditor Term Initial amount Rate (%) Accrued interest Closing balance Conditions
To be transferred
income from
1,293,221.64 0% 0.00 1,293,221.64
renting operating
license plate
To be transferred
income from
1,400,000.00 0% 0.00 1,400,000.00
renting Shenzhen
ITC Petroleum
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co., Ltd
Notes of long-term accounts payable due within 1 year:
41. Other current liabilities
Unit: yuan
Item Closing book balance Opening book balance
Notes of other non-current liabilities:
42. Long-term loan
(1) Category of long-term loan
Unit: yuan
Item Closing balance Opening balance
Pledge loan 12,233,333.30 19,316,666.64
Guarantee + mortgage loan 61,243,352.00
Total 73,476,685.30 19,316,666.64
Notes:
(2) The top five long-term loans
Unit: yuan
Closing balance Opening balance
Foreign Foreign
Creditor Starting date Ending date Currency Rate (%)
currency RMB amount currency RMB amount
amount amount
Shenzhen
Branch of 10,400,000.0 15,650,000.0
11, Jan, 2012 10, Jan, 2015 RMB 6.77% 0.00 0.00
Ping An 0 0
Bank
Shenzhen
Fuhong
Branch of 23, Nov,2011 23, Nov,2014 RMB 6.77% 0.00 1,833,333.30 0.00 3,666,666.64
Ping An
Bank
Bank of
Communicati
11,243,352.0
ons Co., Ltd. 11, Jan, 2013 11, Jan, 2016 RMB 6.95% 0.00
0
Dongguan
Branch
Bank of 27, Jun, 2013 26, Jun, 2015 RMB 7.38% 0.00 50,000,000.0
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Communicati 0
ons Co., Ltd.
Yangzhou
Branch
73,476,685.3 19,316,666.6
Total -- -- -- -- -- --
0 4
Notes of long-term loan: for the long-term loans arising from mature loans with extended term, the
Company shall explain the conditions of extension, principal, interest, expected repayment
arrangement:
43. Bonds payable
Unit: yuan
Accrued
Interest paid
Opening interest in Closing
Issuance Issuing in the Closing
Name Par value Term interest the interest
date amount reporting balance
payable reporting payable
period
period
Notes of bonds payable, including the conditions and date of conversion of the convertible
corporate bonds:
44. Long-term payable
(1) The top five long-term payable
Unit: yuan
Conditions of
Company Term Initial amount Rate (%) Accrued interest Closing balance
loan
(2) List of the financing lease payable under the long-term loan
Unit: yuan
Closing balance Opening balance
Company
Foreign currency RMB Foreign currency RMB
RMB 000 was guarantee for the Company’s financing lease provided by the independent third
party.
Notes of the long-term payable:
45. Specific payable
Unit: yuan
Item Opening balance Increase Decrease Closing balance Note
Notes of specific payable:
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
46. Other non-current liabilities
Unit: yuan
Item Closing book balance Opening book balance
Utility specific fund 237,163.45 2,088,759.35
Housing principle fund 14,931,112.99 14,502,134.27
House warming deposit 7,685,971.61 7,729,980.31
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 29,019,345.50 28,128,684.34
Taxi Deposit 40,582,500.00 40,620,500.00
To be transferred income from renting operating
10,742,457.51 11,389,068.33
license plate
To be transferred income from renting Shenzhen
12,370,000.00 13,070,000.00
ITC Petroleum Co., Ltd
Divestiture interests belongs to Shenzhen
22,310,250.22 23,101,930.71
Investment Holdings
Other 1,347,503.06 1,346,828.56
Total 143,245,719.78 145,997,301.31
Notes of other non-current liabilities, including each government grants relevant to assets and
income received in the reporting period and their closing amounts:
Others mainly are drivers mutual supporting assets received from the drivers of the taxi
companies.
47. Share capital
Unit: yuan
Increase/Decrease (+/-)
Opening Capitalization Closing
Issuing new
balance Bonus shares of public Other Subtotal balance
shares
reserves
Total shares 595,979,092.00 595,979,092.00
Notes of changes in share capital, for those action of increasing capital or decreasing capital in the
reporting period, the Company shall disclose the name of the accounting firm executing the capital
verification and document number of the capital verification report; for joint-stock companies
running for less than three years, only the net assets shall be specified for particulars before
establishment; while for case of totally changing the limited liability companies into joint-stock
companies, capital verification on the establishment shall be specified:
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
48. Treasury stock
Notes of treasury stock:
49. Special reserves
Notes of special reserves:
50. Capital reserves
Unit: yuan
Item Opening balance Increase Decrease Closing balance
Capital premium (share
38,450,087.51 38,450,087.51
capital premium)
Other capital reserves 25,332,931.52 25,332,931.52
Total 63,783,019.03 63,783,019.03
Notes:
51. Surplus reserves
Unit: yuan
Item Opening balance Increase Decrease Closing balance
Legal surplus reserves 102,882,532.15 102,882,532.15
Total 102,882,532.15 102,882,532.15
Notes of surplus reserves: for surplus reserves transferred to share capital, compensating losses
and distributed as dividends, relevant resolutions shall be explained.
52. Provision for general risk
Notes of provision for general risk:
53. Retained profits
Unit: yuan
Withdrawal or distributed
Item Amount
proportion
Opening balance of retained profits before
746,091,174.80 --
adjustments
Opening balance of retained profits after
746,091,174.80 --
adjustments
Add: Net profit attributable to owners of the
353,600,992.81 --
Company
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Closing retained profits 1,099,692,167.61 --
List of adjustment of opening retained profits:
1) RMB0.00 of opening retained profits was affected by retrospective adjustment conducted
according to the Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB0.00 of opening retained profits was affected by changes on accounting policies.
3) RMB0.00 of opening retained profits was affected by correction of significant accounting
errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from
same control.
5) RMB0.00 of opening retained profits was affected totally by other adjustments.
Notes: as for IPO companies, if the accumulated profits were enjoyed by new and original
shareholders according to the resolutions made at the shareholders’ general meeting before public
offering, the Company shall explain clearly; if the accumulated profits were distributed before
public offering and enjoyed by the original shareholders according to the resolutions made at the
shareholders’ general meeting, the Company shall clearly disclose the audited profits of dividends
payable enjoyed by the original shareholders.
54. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: yuan
Item Reporting period Same period of last year
Sales of main business 1,333,146,585.62 575,402,834.46
Other operating income 15,047,521.67 49,117,435.83
Cost of sales 553,178,605.80 392,039,759.24
(2) Main business (Classified by industry)
Unit: yuan
Reporting period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Real estate 1,141,139,395.00 408,042,292.71 382,325,487.04 229,342,509.08
Leasing and property
149,250,082.12 114,239,078.12 145,130,986.94 112,752,359.70
management
Transportation 28,822,397.82 12,489,933.98 36,217,706.82 17,493,537.63
Catering Service 9,713,850.75 8,130,350.67 8,749,691.60 7,222,207.30
Other 4,220,859.93 4,851,695.48 2,978,962.06 3,475,663.55
Total 1,333,146,585.62 547,753,350.96 575,402,834.46 370,286,277.26
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3) Main business (Classified by product)
Unit: yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Real estate 1,141,139,395.00 408,042,292.71 382,325,487.04 229,342,509.08
Leasing and property
149,250,082.12 114,239,078.12 145,130,986.94 112,752,359.70
management
Transportation 28,822,397.82 12,489,933.98 36,217,706.82 17,493,537.63
Catering Service 9,713,850.75 8,130,350.67 8,749,691.60 7,222,207.30
Other 4,220,859.93 4,851,695.48 2,978,962.06 3,475,663.55
Total 1,333,146,585.62 547,753,350.96 575,402,834.46 370,286,277.26
(4) Main business (Classified by area)
Unit: yuan
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Incomes of Shenzhen 1,241,082,579.82 476,318,473.29 524,782,342.20 325,612,833.36
Incomes of other areas 92,064,005.80 71,434,877.67 50,620,492.26 44,673,443.90
Total 1,333,146,585.62 547,753,350.96 575,402,834.46 370,286,277.26
(5) The revenue of sales from the top five customers
Unit: yuan
Customer Main business revenue Proportion of total business revenue (%)
Natural person 76,060,000.00 5.64%
Natural person 42,601,400.00 3.16%
Huawei Technologies Co., Ltd. 21,361,243.06 1.58%
Natural person 9,872,798.00 0.73%
Natural person 7,476,898.00 0.55%
Total 157,372,339.06 11.66%
Notes:
The sales of revenue during the reporting period increased by 115.88%，mainly because the
carryforward of real estate projects and sales in the reporting period increased, which led the
incomes increased; The operating costs amount raised by 41.10% when compared to the last
period, mainly because the income of the carryforward of real estate projects increased, which led
the relevant costs increased. Other industrial revenue was mainly from project supervision,
elevator maintenance and auto vehicles repair, etc.
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
55. Revenue from the construction contracts
Unit: yuan
Recognized
Incurred cumulative cumulative gross
Fixed price contract Contract item Amount Settled amount
costs profit (Losses
presented by ―-‖)
Recognized
Incurred cumulative cumulative gross
Cost plus contract Contract item Amount Settled amount
costs profit (Losses
presented by ―-‖)
Notes:
56. Business tax and surcharges
Unit: yuan
Item Reporting period Same period of last year Calculation and payment standard
Business tax 64,916,992.75 32,488,993.55 3%, 5% of revenue of sales
Urban maintenance and construction
4,612,306.53 2,276,087.83 1%, 7% of taxable turnover tax
tax
Education surtax 1,977,395.11 978,065.16 3% of taxable turnover tax
Local education surtax 1,321,117.83 657,160.67 2% of taxable turnover tax
Four progressive levels with the tax
Land VAT 209,363,841.12 20,284,963.16 rate ranging from 30% to 60% of the
added value from properties transfer.
1.2% of the 70% cost of property per
Property tax 1,367,005.86 1,348,758.97
year
Dike fee 110,227.12 51,722.75 0.01% of revenue of sales
Other 295,828.58 291,834.70
Total 283,964,714.90 58,377,586.79 --
Note:
The amount of business tax and surcharges during the reporting period increased by 386.43% over
that of same period of last year, mainly due to the revenue from property business transferred in
the reporting period increased, making significant increase of business tax and accrued land VAT.
57. Selling expenses
Unit: yuan
Item Reporting period Same period of last year
106
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Employee compensations 1,294,223.92 877,027.43
Business organization office expenses 1,082,071.70 1,109,018.84
Sales agency fees, advertising and
2,842,382.48 4,658,284.21
promotional expenses
Other 2,149,126.69 1,557,703.90
Total 7,367,804.79 8,202,034.38
58. Administration expenses
Unit: yuan
Item Reporting period Same period of last year
Employee compensations 31,162,052.33 28,043,326.60
Administrative office costs 10,768,114.62 9,984,474.05
Assets amortization and the depreciation
2,745,202.31 3,023,096.27
expenses
Litigation expenses 257,011.60 505,428.60
Taxes 580,826.05 955,577.60
Other 5,826,651.82 5,848,083.61
Total 51,339,858.73 48,359,986.73
59. Financial expenses
Unit: yuan
Item Reporting period Same period of last year
Interest incomes -4,176,848.06 -2,605,618.18
Exchange net losses 32,003.69 22,239.85
Other 549,779.35 1,261,842.06
Total -3,595,065.02 -1,321,536.27
60. Gains and losses from changes in fair value
Unit: yuan
Source Reporting period Same period of last year
Notes:
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
61. Investment income
(1) List of investment income
Unit: yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by
4,390,123.64 1,501,509.12
equity method
Total 4,390,123.64 1,501,509.12
(2) Long-term equity investment income accounted by cost method
Unit: yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease
year
Total 0.00 0.00 --
(3) Long-term equity investment income accounted by equity method
Unit: yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease
year
Shenzhen Jifa Warehouse Co., Ltd 244,042.81 325,554.07 Realized profits decreased
Shenzhen ITC Tian’an Properties Co.,
4,028,152.92 930,877.58 Realized profits decreased
Ltd
Shenzhen Tian’an International
Building Property Management Co., 117,927.91 245,077.47 Realized profits decreased
Ltd
Total 4,390,123.64 1,501,509.12 --
Notes of investment income: make notes if there is significant limitation for recovery of
investment income. If there isn’t the said limitation, notes too:
The Company’s recovery of investment income exist no significant limitation.
62. Impairment losses
Unit: yuan
Item Reporting period Same period of last year
I. Bad debts losses 1,246,408.49 -5,946,900.23
II. Inventory falling price losses -15,699.50 -11,040.73
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total 1,230,708.99 -5,957,940.96
63. Non-operating gains
(1) List of non-operating gains
Unit: yuan
The amount included in the
Item Reporting period Same period of last year current non-recurring gains
and losses
Total gains from disposal of non-current
0.00 551,875.50
assets
Including：Gains from disposal of fixed
0.00 551,875.50
assets
Other 2,510,882.84 628,804.24 2,510,882.84
Total 2,510,882.84 1,180,679.74 2,510,882.84
(2) List of government grants
Unit: yuan
Item Reporting period Same period of last year Note
Notes:
64. Non-operating expenses
Unit: yuan
The amount included in
Item Reporting period Same period of last year the current non-recurring
gains and losses
Loss on disposal of non-current assets 75,632.69 29,700.92 75,632.69
Including: Loss on disposal of fixed assets 75,632.69 29,700.92 75,632.69
Loss on exchange of non-monetary assets 1,382,794.36
Litigation compensation 1,856,830.08 1,856,830.08
Other -10,894.10 261,957.08 -10,894.10
Total 1,921,568.67 1,674,452.36 1,921,568.67
Notes:
65. Income tax expense
Unit: yuan
109
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Item Reporting period Same period of last year
Current income tax expense accounted by tax and relevant
121,573,694.53 29,062,250.02
regulations
Adjustment of income tax -15,487,770.43 -1,320,441.13
Total 106,085,924.10 27,741,808.89
66. Calculation procedure of basic earnings per share and diluted earnings per share
Calculation procedure of basic earnings per share and diluted earnings per share is as follows:
Item The reporting period Same period of last year
Basic Earnings Per Share 0.5933 0.1656
0.5933 0.1656
Diluted Earnings Per Share
Calculation of earnings per share is as following:
Basic Earnings Per Share＝353,600,992.81÷595,979,092.00＝0.5933
Diluted Earnings Per Share＝353,600,992.81÷595,979,092.00＝0.5933
Recalculation of earnings per share of last year is as following:
Basic Earnings Per Share＝98,686,285.22÷595,979,092.00＝0.1656
Diluted Earnings Per Share＝98,686,285.22÷595,979,092.00＝0.1656
Note: The method of basic earnings per share and diluted earnings per share calculation
A．Basic Earnings per Share =P0÷S
S= S0＋S1＋Si×Mi÷M0-Sj×Mj÷M0-Sk
P0 represents the amounts attributable to ordinary equity holders of the Company in respect of:
(a) Profit or loss attributable to the Company; and
(b) Profit or loss after deducting extraordinary gain or loss attributable to the Company.
S represents the weighted average number of ordinary shares outstanding during the period. S0
represents the number of ordinary shares at the beginning of the period. S1 represents the number
of additional ordinary shares issued on capital surplus transfer or share dividends appropriation; Si
represents the number of ordinary shares issued in exchange for cash or issued as a result of the
conversion of a debt instrument to ordinary shares during the period. Sj represents reduced
number of ordinary shares such as shares buy back. Sk represents the number of a reverse share
split. Mo represents the months during the period. Mi represents the months from the following
month after issuing incremental shares to the end of the period. Mj represents the months from the
following month after reducing shares to the end of the period.
B．Diluted Earnings Per Share =P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ The weighted average
number of incremental ordinary shares on warrants, options, convertible debt and so on）
P1 represents the amounts attributable to ordinary equity holders of the Company in respect of: (a)
Profit or loss attributable to the Company; and (b) Profit or loss after deducting extraordinary gain
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
or loss attributable to the Company, adjust according to the accounting standards for enterprises
and other relevant provisions. The Company considered in sequence from dilutive potential
ordinary shares to get the lowest earnings per share.
67. Other comprehensive income
Unit: yuan
Item Reporting period Same period of last year
1. Converted amount of foreign currency financial statements -704,279.71 154,895.92
Subtotal -704,279.71 154,895.92
Total -704,279.71 154,895.92
Notes:
68. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: yuan
Item Amount
Net margins, security deposits collected for other parties 9,150,393.29
Interest income 4,176,848.06
Current account received from Shenzhen Jifa Warehouse Co., Ltd 1,500,000.00
Other small receivables 3,084,947.88
Total 17,912,189.23
Notes:
(2) Other cash paid relevant to operating activities
Unit: yuan
Item Amount
Paying administration expenses in cash 15,841,101.74
Paying current accounts of Hainan Yirun Real Estate Co., Ltd. 9,952,605.48
Paying current accounts of Shenzhen Fulin Industrial Co., Ltd. 9,528,506.00
Paying sales expenses in cash 8,909,881.97
Paying net water, electricity and fees for property owners 5,787,698.31
Paying Fujian Wujian litigation compensation payments 1,856,830.08
Other small receivables 2,947,078.44
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total 54,823,702.02
Notes:
(3) Other cash received relevant to investment activities
Unit: yuan
Item Amount
Notes of other cash received relevant to investment activities:
(4) Other cash paid relevant to investment activities
Unit: yuan
Item Amount
Notes of other cash paid relevant to investment activities:
(5) Other cash received relevant to financing activities
Unit: yuan
Item Amount
Notes of other cash received relevant to financing activities:
(6) Other cash paid relevant to financing activities
Unit: yuan
Item Amount
Ancillary borrowing costs 282,000.00
Total 282,000.00
Notes of other cash paid relevant to financing activities:
69. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
Unit: yuan
Supplemental information Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated
-- --
from operations：
Net profit 353,600,992.81 98,086,307.99
Add: Provision for assets impairments 1,230,708.99 -5,957,940.96
Depreciation of fixed assets, oil-gas assets and productive 16,830,027.62 16,154,807.35
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
biological assets
Amortization of intangible assets 3,576,811.52 3,578,351.52
Amortization of long-term deferred expense 367,891.68 86,488.14
Losses/gains on disposal of property, intangible asset and
75,632.69 -522,174.58
other long-term assets (gains: negative)
Losses/gains on scrapped of fixed assets (gains:
0.00 0.00
negative)
Losses/gains from variation of fair value (gains: negative) 0.00 0.00
Financial cost (income: negative) 282,000.00 982,000.00
Investment loss (gains: negative) -4,390,123.64 -1,501,509.12
Decrease in deferred tax assets (increase: negative) -9,534,583.41 -1,320,441.13
Increase in deferred tax liabilities (decrease: negative) -2,739,089.94 0.00
Decrease in inventory (increase: negative) 310,776,884.36 122,000,800.89
Decrease in accounts receivable from operating activities
32,996,427.95 -59,663,827.50
(increase: negative)
Increase in accounts payable from operating activities
-576,436,624.55 164,188,624.00
(decrease: negative)
Net cash flows generated from operating activities 126,636,956.08 336,111,486.60
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of Cash 903,972,985.55 653,189,645.56
Less: opening balance of cash 797,724,311.37 469,313,741.57
The net increase in cash and cash equivalents 106,248,674.18 183,875,903.99
(2) Relevant information of acquisition or disposal of subsidiaries and other operation
entities in the reporting period
Unit: yuan
Supplemental information Reporting period Same period of last year
I. Relevant information on acquisition of subsidiaries and
-- --
other operation entities:
II. Relevant information on disposal of subsidiaries and
-- --
other operation entities
(3) Composition of cash and cash equivalents
Unit: yuan
113
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Item Reporting period Same period of last year
I. Cash 903,972,985.55 797,724,311.37
Including: Cash on hand 289,986.98 395,172.53
Bank deposit on demand 898,514,462.09 648,506,655.58
Other monetary funds on demand 5,168,536.48 4,287,817.45
II. Closing balance of cash and cash equivalents 903,972,985.55 797,724,311.37
Notes:
70. Notes to statement of changes in owners’ equity
Notes on the items under ―Other‖ for adjusting the opening balance and the relevant adjusted
amounts as well as retrospective adjustment arising from business combination under the same
control, etc.:
The ―Other‖ item under the Statement on changes in consolidated owner’s equity is the ―Foreign
currency translation differences‖.
VIII. Accounting treatment of assets securitization business
1. Notes of main trade arrangement and its accounting treatment of assets securitization
business as well as articles of bankruptcy remote
Inapplicable
2. Main information about the special purpose an entity in which the Company has no
control right but bears relevant risks:
Unit: yuan
Revenue of sales
Total closing Total closing Net profit in the
Name Net closing assets in the reporting Note
assets liabilities reporting period
period
IX. Related Parties and Related-party Transactions
1. Information of the parent company of the Company
The
The parent The parent ultimate
Legal
Parent Relationsh Business Registered Business Registered company's company's controlling Organizati
Representa
company ip Type place nature Capital shareholdi voting party of on Code
tive
ng (%) right (%) the
Company
114
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen
State-owne
Limited d Assets
Shenzhen Controllin Managing
liability Administra
Investment g Fan 560000000 76756642
company Shenzhen state-owne 63.81% 63.81% tion and
Holdings shareholde Mingchun 0 1
(state-own Supervisio
Co., Ltd. r d assets
ed) n
Commissi
on
Note:
By the end of reporting period, the controlling shareholder of the Company is still Shenzhen
Construction Investment Holdings Corporation (―the holding company‖) in register book. In 2004,
Shenzhen Municipal Government incorporated Shenzhen Construction Investment Holdings
Corporation with the other two municipal assets operation and management companies, namely
Shenzhen Investment Management Corporation and Shenzhen Trade and Business Holdings
Corporation to establish Shenzhen Investment Holdings Co., Ltd. Therefore, the Company’s actual
controlling shareholder is Shenzhen Investment Holdings Co., Ltd., a sole state-funded limited
company, who was established in Oct. 13, 2004 with the registered capital of RMB 5.6 billion and
Mr. Fan Mingchun as its legal representative. Main business scope: providing guarantee to
municipal state-owned enterprises, management of state-owned equity, assets reorganization and
reformation of enterprises, assets operation and equity investment and etc. As a government
department, State-owned Assets Supervision and Administration Commission of Shenzhen
implemented management for Shenzhen Investment Holdings Co., Ltd. on behalf of Shenzhen
municipal government.
2. Information of subsidiaries of the Company
Percentage
Legal Percentage
Business Registered Business Registered of Organizatio
Full name Type representati of voting
type place nature capital Shareholdin n code
ve right (%)
g (%)
Shenzhen
Huangchen Limited Property
Controlled
g Real Liability Shenzhen Li Zipeng developmen 30000000 100% 100% 192184835
subsidiary
Estate Co., Company t
Ltd.
Shenzhen
Property
Limited Property
and Real Controlled
Liability Shenzhen Li Zipeng developmen 30950000 100% 100% 192174565
Estate subsidiary
Company t
Developme
nt Co., Ltd.
PRD Group Controlled Limited Xuzhou Li Zipeng Property 50000000 100% 100% 552525454
115
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Xuzhou subsidiary Liability developmen
Dapeng Company t
Real Estate
Developme
nt Co.,Ltd
Dongguan
Guomao
Limited Property
Changsheng Controlled
Liability Dongguan Lu Xia developmen 20000000 100% 100% 562562654
Real Estate subsidiary
Company t
Developme
nt Co., Ltd.
PRD
Yangzhou Limited Property
Controlled Zheng
Real Estate Liability Yangzhou developmen 50000000 100% 100% 573842934
subsidiary Bangwen
Developme Company t
nt Co., Ltd.
Hainan
Limited Property
Xinda Controlled
Liability Haikou Liu Yinhua developmen 20000000 100% 100% 201264619
Developme subsidiary
Company t
nt Co., Ltd
Shenzhen
ITC Limited Property
Controlled Wang
Property Liability Shenzhen managemen 20000000 100% 100% 192174549
subsidiary Hangjun
Managemen Company t
t Co., Ltd.
Shenzhen
Huangchen
Limited Property
g Real Controlled Wang
Liability Shenzhen managemen 5000000 100% 100% 757601334
Estate subsidiary Hangjun
Company t
Managemen
t Co., Ltd.
Shandong
Shenzhen
Limited Property
ITC Controlled Wang
Liability Jinan managemen 5000000 100% 100% 684815947
Property subsidiary Zhiyong
Company t
Managemen
t Co., Ltd.
Chongqing
Shenzhen Limited Property
Controlled Zeng
ITC Liability Chongqing managemen 5000000 100% 100% 202853028
subsidiary Xiangrong
Property Company t
Managemen
116
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
t Co., Ltd.
Chongqing
Limited
Ao’bo Controlled Zeng
Liability Chongqing Service 3500000 100% 100% 66085719X
Elevator subsidiary Xiangrong
Company
Co., Ltd.
Shenzhen
Tianque Limited
Controlled Wang
Elevator Liability Shenzhen Service 5000000 100% 100% 192277759
subsidiary Zhiyong
Technology Company
Co., Ltd.
Shenzhen
ITC
Property
Limited
Managemen Controlled
Liability Shenzhen Bao Gang Service 1200000 100% 100% 192332519
t subsidiary
Company
Engineering
Equipment
Co., Ltd.
Shenzhen Limited
Controlled Fan Catering
ITC Food Liability Shenzhen 2000000 100% 100% 738842749
subsidiary Weiping service
Co., Ltd. Company
Shenzhen
Property
Limited
Constructio Controlled Project
Liability Shenzhen Li Zipeng 3000000 100% 100% 279383351
n subsidiary supervision
Company
Supervision
Co., Ltd.
Shenzhen Limited
Controlled Yao
Real Estate Liability Shenzhen Service 1380000 100% 100% 192177790
subsidiary Chengxin
Exchange Company
Shenzhen
ITC Limited
Controlled
Vehicles Liability Shenzhen Wei Zhi Service 29850000 100% 100% 19217731X
subsidiary
Industry Company
Co., Ltd.
Shenzhen
Limited
ITC Motor Controlled Fan
Liability Shenzhen Service 16000000 100% 100% 192267331
Rent Co., subsidiary Weiping
Company
Ltd.
Shenzhen
Controlled Limited
Tesu Shenzhen Xiao Dejun Service 2000000 100% 100% 192325669
subsidiary Liability
Vehicle
117
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Driver Company
Training
Center Co.,
Ltd.
Shenzhen
Limited
Internationa Controlled
Liability Shenzhen Luo Junde Trading 12000000 100% 100% 19218224X
l Trade subsidiary
Company
Plaza
Sichuan
Limited
Tianhe Controlled
Liability Chengdu Li Jun Trading 8000000 100% 100% 754748621
Industry subsidiary
Company
Co., Ltd
Zhanjiang
Shenzhen Limited Property
Controlled Duan
Real Estate Liability Zhanjiang developmen 2530000 100% 100% 194351406
subsidiary Zuoping
Developme Company t
nt Co., Ltd.
Shum Yip
Limited Property
Properties Controlled HKD20000
Liability Hongkong Inapplicable developmen 100% 100% Inapplicable
Developme subsidiary 000
Company t
nt Co., Ltd.
Wayhang Limited Property
Joint
Developme Liability Hongkong Inapplicable developmen HKD2 100% 100% Inapplicable
venture
nt Co., Ltd. Company t
Chief Link Limited Property
Controlled
Properties Liability Hongkong Inapplicable developmen HKD100 70% 70% Inapplicable
subsidiary
Co., Ltd. Company t
Syndis Limited Property
Controlled
Investment Liability Hongkong Inapplicable developmen HKD4 100% 100% Inapplicable
subsidiary
Co., Ltd. Company t
3. Information of joint ventures and associated enterprises
Percentage
Legal Percentage
Name of Business Registered Business Registered of Relationshi Organizatio
representati of voting
investee type address nature capital shareholdin p n code
ve rights (%)
g (%)
I. Joint ventures
Shenzhen Shenzhen
Limited
Jifa Wang Jifa HKD54150 Joint
Liability Shenzhen 50% 50% 618847828
Warehouse Hangjun Warehouse 000 venture
Company
Co., Ltd Co., Ltd
Shenzhen Limited Shenzhen Wang Shenzhen USD888000 50% 50% Joint 618845152
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
GUOMAO Liability Hangjun GUOMAO 0 venture
Tian’an Company Tian’an
Properties Properties
Co., Ltd Co., Ltd
Shenzhen Shenzhen
Tian’an Tian’an
Internationa Limited Internationa
Zhang Joint
l Building Liability Shenzhen l Building 3000000 50% 50% 618930517
Changsheng venture
Property Company Property
Managemen Managemen
t Co., Ltd t Co., Ltd
II. Associated enterprises
Shenzhen Shenzhen
GUOMAO Limited GUOMAO
Zha HKD32800 Associated
Industrial Liability Shenzhen Industrial 38.33% 38.33%
Shengming 000 enterprise
Developme Company Developme
nt Co., Ltd nt Co., Ltd
Anhui Anhui
Limited
Nanpeng Wang Nanpeng USD800000 Associated
Liability Huainan 30% 30%
Papermakin Yizhong Papermakin 0 enterprise
Company
g Co., Ltd g Co., Ltd
Shenzhen Shenzhen
Wufang Wufang
Limited
Pottery & Pottery & USD125000 Associated
Liability Shenzhen Yan Wenbo 26% 26%
Porcelain Porcelain 000 enterprise
Company
Industrial Industrial
Co., Ltd Co., Ltd
4. Information of other related parties of the Company
Name of other related party Relationship Organization code
Under the same control of the parent
Shenzhen Guesthouse Restaurant 192197353
company of the Company
Shenzhen Foreign Economy & Trade Under the same control of the parent
192210765
Investment Co., Ltd. company of the Company
Notes:
5. Related-party transactions
(1) Purchase of goods and acceptance of labor service
Unit: RMB Yuan
Content of the Pricing method Reporting period Same period of last year
Related party
transaction and Amount Proportio Amount Proportio
119
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
decision-making n (%) n (%)
procedures for the
transaction
Shenzhen Agreement pricing
Investment Holdings Rental payment by reference to 165,715.76 100% 0.00 0%
Co., Ltd. market price
Sales of goods and rendering of service
Unit: RMB Yuan
Pricing method Reporting period Same period of last year
and
Content of the
Related party decision-making
transaction Proportio Proportio
Amount Amount
procedures for the n (%) n (%)
transaction
Shenzhen Agreement pricing
Collecting property
Investment Holdings by reference to 129,542.40 100% 129,542.40 100%
management fee
Co., Ltd. market price
(2) Information of related party trust/cont
Information of entrusted management/contract
Unit: RMB Yuan
Trust / contract
Name of Type of the Initial date of Ending date of Pricing basis for
Name of trustee income
entrusting entrusted/contract being being the trust / contract
/contractor recognized in the
party/contractee ed assets entrusted/contract entrusted/contract income
reporting period
Shenzhen Foreign
Shenzhen
Economy & Detailed note as
Shenxin Taxi Co., Other assets trust 1 Jun. 2012 31 Dec. 2014 106,762.54
Trade Investment follows
Ltd.
Co., Ltd.
Information of entrusting management/contracted
Unit: RMB Yuan
Trust / contract
Name of Type of the Initial date of Ending date of Pricing basis for
Name of trustee fee recognized in
entrusting entrusted/contract entrusting/ being entrusting/ being the trust / contract
/contractor the reporting
party/contractee ed assets contracted contracted fee
period
Notes of related-party trust / contract
In Nov. 2012, Shenzhen Foreign Economy & Trade Investment Co., Ltd. signed the Contract on
Entrusting Management of Stripped Assets and Liabilities with the Company’s
subsidiary—Shenzhen Shenxin Taxi Co., Ltd., agreeing on changing to entrust Shenzhen Shenxin
Taxi Co., Ltd. to clear, operate, manage and dispose the stripped assets, for details, please refer to
VI.2.3 Business Combination of Section X Financial Report. According the above-mentioned
contract, in 2013, Shenzhen Shenxin Taxi Co., Ltd. paid RMB 626,000 of assets operating income
to Shenzhen Foreign Economy & Trade Investment Co., Ltd.
120
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
During the entrusting management period from 1 Jun. 2013 to 30 June, 2013, the stripped assets
operating situation as follows:
Item Amount
Revenue of sales 1,966,495.00
Cost of sales 1,084,571.34
Business tax and surcharges 111,040.41
Administrative expenses 628,533.20
Total profits 142,350.05
Income taxes expenses 35,587.51
Net profits 106,762.54
Note: the administrative expenses included RMB 313,000 of assets operating income paid to
Shenzhen Foreign Economy & Trade Investment Co., Ltd.
(3) Information of related-party lease
Rental situation of the Company
Unit: RMB Yuan
Rental income
Category of the Pricing basis for
Name of lessor Name of lessee Initial date Ending date recognized in the
leased assets the rental income
reporting period
Lease situation of the Company
Unit: RMB Yuan
Rental income
Category of the Pricing basis for
Name of lessor Name of lessee Initial date Ending date recognized in the
leased assets the rental income
reporting period
Notes of related-party lease
(4) Information of related-party guarantee
Unit: RMB Yuan
Whether the
Guarantor Secured party Guarantee amount Initial date Due date guarantee was
accomplished or not
Shenzhen Properties
Shenzhen
& Resources
GUOMAO Vehicles 20,000,000.00 8 April, 2013 8 April, 2014 No
Development
Industry Co., Ltd.
(Group) Ltd.
Dongguan
Shenzhen Properties
GUOMAO Chang
& Resources
Sheng real estate 11,243,352.00 11 Jan, 2013 11 Jan, 2016 No
Development
development co.,
(Group) Ltd.
LTD
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen Properties
Shenzhen Properties
& Resources
& Resources
Yangzhou real estate 50,000,000.00 27 June, 2013 26 June, 2015 No
Development
development co.,
(Group) Ltd.
LTD
Shenzhen Shenzhen
GUOMAO Vehicles GUOMAO Motor 40,000,000.00 17 April, 2013 17 April, 2014 No
Industry Co., Ltd. Rent Co., Ltd.
Shenzhen Shenzhen
GUOMAO Motor GUOMAO Vehicles 20,150,000.00 11Jan, 2012 11Jan, 2015 No
Rent Co., Ltd. Industry Co., Ltd.
Notes:
The Company and its subsidiaries didn’t provide guarantees for other companies beyond the range
of consolidated financial statements. The above guarantees are those the Company and its
subsidiaries provided to each other.
(5) Related-party call loan
Unit: RMB Yuan
Related party Amount of call loan Initial date Due date Note
Loan from banks and other financial institutions
Lending to banks and other financial institutions
(6) Information about assets transfer, debt reorganization of related parties
Unit: RMB Yuan
Pricing method Reporting period Same period of last year
Type of and
related Content of the decision-making
Related party Proportio Proportio
party transaction procedures for Amount Amount
n (%) n (%)
transaction the related-party
transaction
(7) Other related-party transaction
A. Entrusted loans of related parties Unit: RMB Ten Thousand
Name of Name of Borrower Annual Closing Amount of Amount of Closing Interest paid
entrusting entrusted interest rate amount of loan payment in amount of in the
party party （%） loan borrowed in the reporting loan reporting
the reporting period period
period
Shenzhen Shenzhen Shenzhen 6.9544 4,000.00 4,000.00 74.95
122
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Investment Jingtian GUOMAO
Holdings Sub-branch Vehicles
Co., Ltd. of China Industry Co.,
Everbright Ltd.
Bank
Shenzhen Shenzhen Shenzhen 6.9544 20,000.00 20,000.00 374.76
Investment Jingtian Investment
Holdings Sub-branch Holdings
Co., Ltd. of China Co., Ltd.
Everbright
Bank
Shenzhen Shenzhen ShenZhen 6.0000 24,000.00 24,000.00 140.00
Investment Jingtian Properties &
Holdings Sub-branch Resources
Co., Ltd. of China Developmen
Everbright t (Group)
Bank Ltd.
Total —— 24,000.00 24,000.00 24,000.00 24,000.00 589.71
Note: The entrusted loan of RMB 40 million for Shenzhen GUOMAO Vehicles Industry Co., Ltd
and the entrusted loan of RMB 0.2 billion for Shenzhen Huangcheng Real Estate Co., Ltd have
returned on 28 Mar, 2013.The company renew the loans on May 17,2013 and expire on May 16,
2014 with 6% interest by mortgaging the five houses located at Guomao Plaza (Phase II), Nanhu
Road, Luohu District, Shenzhen; 105 houses located at Guomao Commercial Building, Nanhu
Road, Luohu District, Shenzhen; 19/F Tian’an International Building, Renmin South Road, Luohu
District, Shenzhen; 7 houses located at Small Commodity Market, Peace New Home, Chuanbu
Street, Heping Road, Luohu District, Shenzhen and 1-7/F, Peace Hotel, Heping Road, Luohu
District, Shenzhen.
6. Amounts due from/to related parties
Amount due from related parties
Unit: RMB Yuan
Closing balance Opening balance
Item Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Anhui Nanpeng
Other accounts receivable 7,443,104.00 7,443,104.00 7,648,160.00 7,648,160.00
Papermaking Co., Ltd
Shenzhen GUOMAO
Other accounts receivable Industrial 2,351,652.48 2,351,652.48 2,551,652.48 2,551,652.48
Development Co., Ltd
Other accounts receivable Shenzhen Wufang 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Pottery & Porcelain
Industrial Co., Ltd
Shenzhen Guesthouse
Other accounts receivable 909,960.40 909,960.40 909,960.40 909,960.40
Restaurant
Shenzhen Investment
Accounts receivable 546,442.22 16,393.27 415,302.14 12,459.06
Holdings Co., Ltd.
Amount due to related parties
Unit: RMB Yuan
Item Related party Closing balance Opening balance
Shenzhen Jifa Warehouse Co.,
Other payables 21,045,808.00 19,545,808.00
Ltd
Shenzhen Tian’an
International Building
Other payables 114,345.90 1,500,000.00
Property Management Co.,
Ltd
Shenzhen GUOMAO Tian’an
Other payables 3,885,654.10 13,500,000.00
Properties Co., Ltd
Shenzhen Investment
Short-term borrowings 240,000,000.00 240,000,000.00
Holdings Co., Ltd.
X. Share-based Payment
1. Overview of share-based payment
Note:
2. Information of equity-settled share-based payment
Note:
3. Information of cash-settled share-based payment
Note:
4. Information of share-based payment service
Unit: RMB Yuan
The total amount of the employee services as a result of the
0.00
share-based payments
The total amount of other services as a result of the share-based
0.00
payments
124
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
5. Modification, termination of share-based payment
XI. Contingency
1. Contingent liabilities and its financial effect arising from unsettled litigation or arbitration
(1) In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building
(name of Jiabin Building has been changed to Jinlihua Commercial Plaza) with Shenzhen Haibin
Property Development Co., Ltd. (name of which has been changed to Shenzhen Jiyong Property
Development Co., Ltd., hereinafter referred to as Jiyong Company). In January 1999, Jiyong
Company sued the company to Guangdong Higher People’s Court (hereinafter referred to as
―Guangdong Higher Court‖) for termination of the transfer contract and refund of the transfer
consideration and construction payment paid on the ground that the area of premises was in
discrepancy with the contract. With respect to this, the Company counterclaimed the opposing
party to pay back the rest transfer consideration and applied for sealing up their property with an
area of 28,000 square meters.
On July 29, 2001, Guangdong Higher Court issued Civil Court Judgment YGFM (1999) No. 3
(hereinafter referred to as Judgment No. 3) to judge that ① the Company should transfer the title
of land use right specified in the transfer contract to Jiyong Company within 30 days from the date
the judgment taking into effect and ②Jiyong Company should pay off the transfer consideration
amounting to RMB143, 860,000.00 within 60 days from the date the Company transferred the title
of land use right. On November 27, 2001, the Company applied to Guangdong Higher Court for
forcible execution, however Guangdong Higher Court adjudicated to release the sealing property
of Jiyong Company approximately 10,000 square meters since Industrial & Commercial Bank of
China Zhejiang Branch disagree to seal the properties.
In January 2006, Guangdong Higher Court issued Civil Court Judgment YGFZ (2002) No. 1 and
adjudicated because that ① the Company has not yet transferred the title of land use right
specified in the transfer contract to Jiyong Company and ② Jiyong Company cannot provide
other properties available for execution and the Company also cannot provide the property
available for execution, the second judgment of the Judgment No. 3 - ―Jiyong Company should
pay off the transfer consideration amounted RMB143,860,000 within 60 days from the date the
Company transferred the title of land use right‖ is terminated for execution. When the conditions
causing termination for execution of the second judgment are eliminated, the second judgment
should still be executed.
In March 2006, according to the ordain of Guangdong Higher People’s Court, the properties in
Jiabin Building that have been sealed up in this case have been released automatically. On
September 2009, company received YGFZ (2002) No. 1-1 Resume Execution Notice from
Guangdong Province Higher Court claimed to resume execution the case that the transfer money
owed by Jiyong company about Jiabin building project.
In October 2009, the Company received (Verdict YGFZ (2002) No. 1-2) from Guangdong Higher
Court. The verdict claimed: The resume execution of this case is according to the "The
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
requirements for the Guangdong Higher Court to concentrate the implementation of accumulated
cases" Through the investigation conducted by Guangdong Higher Court to Shenzhen department
of motor vehicles, Shenzhen Securities Registration and Settlement Organizations, Shenzhen
Land resources and real estate administration and the opening bank of the executed party, the
executed party – Jiyong Company does not have any executable property. For these, Guangdong
Higher Court adjudicated : ① Terminate the executive procedure of Verdict YGFZ (2002) No. 1;
② When the execution conditions are satisfied, the applicant can apply for resume execution.
In April 2012, the Company raised the subrogation right lawsuit to Shenzhen Luohu District
People's Court, based on the creditor’s right for Jiyong Company decided by the Civil Ruling
Paper YGFMC (1999) No. 3, prosecuting the obligor of Jiyong Company—Shenzhen Zongli
Investment Co., Ltd. (hereinafter referred to as ―Zongli Company‖), which was required to
compensate for the Company within its debt range for Jiyong Company. Meanwhile, due to it was
highly similar in the management level of Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter
referred to as ―Huaneng-Jindi Company‖) and Zongli Company, the Company believed that there
was significant related-party relationship between Huaneng-Jindi Company and Zongli Company,
therefore, the Company also prosecuted Huaneng-Jindi Company, which was required to
undertake the joint liability for the debts born by Zongli Company. On 7 Jan. 2013, Luohu District
People’s Court open for the case, and now it is to wait for the ruling.
(2) In June 2004, Shenzhen Meisi Industrial Co., Ltd. (hereinafter referred to as ―Meisi Company‖)
prosecuted Shenzhen Luohu Economic Development Co., Ltd and the Company to Shenzhen
Intermediate People’s Court(hereinafter refered to as ―Shenzhen Intermediate Court‖) for illegal
use of land owned by Meisi Company and request for ceasing the infringing act and receiving a
compensation amounted RMB 8 million. In March 2005, Shenzhen Intermediate Court issued
Civil Ruling Paper SZFMCZ (2004) No. 108 and adjudicated that the Company should return the
land with an area of 4,782 square meters to Meisi Company within 3 months and other claims of
Meisi Company were overruled. The Company refused to accept the verdict and appealed to
Guangdong Higher Court. On November 25, 2005, Guangdong Higher Court adjudicated that the
Civil Ruling Paper SZFMCZ (2004) No. 108 issued by Shenzhen Intermediate Court should be
cancelled and the prosecution of Meisi Company were overruled.
During the process of trial of second instance, Meisi Company applied to Registration Center for
Property of Real Estate of Shenzhen Municipality for revoking Property Ownership Certificates
SFDZ No. 3000320987 and No. 300119899 owned by the Company. On July 7, 2005, Registration
Center for Property of Real Estate of Shenzhen Municipality issued the reply of SFDH (2005) No.
84 to Meisi Company and judged that aforesaid certificates are legal and effective and should not
be revoked. Meisi Company disagreed with this judgment and applied the administrative
reconsideration to the People's Government of Shenzhen Municipality. On October 8, 2005, the
People's Government of Shenzhen Municipality issued Decision on Administrative
Reconsideration SFFJ (2005) No. 294 and judged that aforesaid 2 certificates were registered
illegally and should be revoked, reply of SFDH (2005) No. 84 was canceled accordingly.
The Company refused to accept Decision on Administrative Reconsideration SFFJ (2005) No. 294
and prosecuted an administrative litigation to Shenzhen Intermediate Court on October 20, 2005.
Shenzhen Intermediate Court issued Administrative Judgment SZFXCZ (2005) No. 23 and
adjudicated that Decision on Administrative Reconsideration SFFJ (2005) No. 294 is sustained.
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
The Company disagreed with this administrative judgment and appealed to Guangdong Higher
Court on August 2, 2006. Guangdong Higher Court issued Administrative Judgment YGFXZZ
(2006) No. 154 in which the appeal was rejected and Administrative Judgment SZFXCZ (2005)
No. 23 was sustained. According to this Judgment, Shenzhen Municipal Bureau of Land
Resources and Housing Management would reconsider the request of Meisi Company to revoke
the Property Ownership Certificates SFDZ No. 3000320987 and No. 3000119899 of the
Company.
On May 15, 2007, Registration Center for Property of Real Estate of Shenzhen Municipality
issued Decision on Revoking the Property Ownership Certificates SFDZ No. 3000320987 and No.
3000119899 (SFZ (2007) No. 27). Registration Center for Property of Real Estate of Shenzhen
Municipality decided to revoke property ownership certificates SFDZ No. 3000320987 and No.
3000119899 owned by the Company that indicating the ownership of occupied property of Meilin
Workshop, Comprehensive Building and the land use right of 11,500 square meters and restore the
registration of the ownership of occupied property of Meilin Workshop, Comprehensive Building
and the land use right of certificates of SFDZ No. 0103142 and No. 0103139. The Company had
the ownership of occupied property of Meilin Workshop, Comprehensive Building and the land
use right of 11,500 square meters according to original property ownership certificates.
On July 9,2007, the Company applied the administrative reconsideration to the Administrative
Reconsideration Office of the People's Government of Shenzhen Municipality, which considered
that those action that Registration Center for Property and Real Estate of Shenzhen Municipality
revoked property ownership certificate SFDZ No. 3000320987 and No. 3000119899 owned by the
Company and restore the registration of Meilin Workshop, Comprehensive Building and land use
right violated the provisions of the Decision on Strengthening Land Market Management and
further Enlivening and Standardizing Real Estate Market (SF (2001) No. 94) promulgated by
People’s Government of Shenzhen Municipality, and requested People’s Government of Shenzhen
Municipality to rescind the Decision. On September 6, 2007, the People's Government of
Shenzhen Municipality issued Decision on Administrative Reconsideration SFFJ (2007) No. 255
to sustain the administrative decision of Shenzhen Municipal Bureau of Land Resources and
Housing Management.
In November 2007, Shenzhen Municipal Bureau of Land Resources and Housing Management
rejected the application of Meisi Company for revoking Property Ownership Certificates SFDZ
No. 0103142 and No. 0103139. Meisi Company prosecuted an administrative litigation to
Shenzhen Futian People’s Court (hereinafter referred as to ―Futian Court‖) to ask for revoking the
administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing
Management. The Company was involved as third party. Court session started on January 8, 2008
with litigation number of (2008) SFFXCZ No. 10 (hereinafter referred as to ―No.10 Case‖). On
January 2008, Meisi Company prosecuted an administrative litigation to Futian Court for revoking
the above administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing
Management, revoking Property Ownership Certificates SFDZ No. 0103142 and No. 0103139,
and restoring the land use right to Meisi Company with the litigation number of SFFX (2008) No.
70 (hereinafter referred as to ―No.70 Case‖). On May 2008, the Futian Court made adjudication to
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No. 70 Case in which the property ownership certificates SFDZ No. 0103142 and No. 0103139
owned by the Company were revoked and Shenzhen Municipal Bureau of Land Resources and
Housing Management were required to re-investigate the application of Meisi Company. The
company, the Shenzhen Municipal Bureau of Land Resources and Housing Management as well
as Meisi Company refused to accept the verdict and made an appeal. On July 2008, the Company
has received the Administrative Ruling Paper from Futian Court in which the trial of No. 10 Case
was terminated.
On December 2008, Shenzhen Intermediate Court issued the Administrative Ruling Paper
SZFXZZ (2008) No. 223, in which the final adjudication of appeal No. 70 Case was made and the
original verdict was sustained. Moreover, the final adjudication stated that the controversy over
the land use right in this case between Meisi Company and the Company should be settled through
civil procedures; the Bureau of Land Resources and Housing Management of Shenzhen
Municipality should not proceed the registration procedure until the controversy is final settled.
On February 11, 2009, the Company received the Civil Complaint from Futian Court; Meisi
Company has made a civil prosecution against the Company and Shenzhen Luohu Commercial
Development Co., Ltd. for the confirmation of Meisi Company’s land use right and the buildings
in original Property Ownership Certificates SFDZ No., 0103142 and No., 0103139. Furthermore,
Meisi Company requests that return of related land use right and a compensation of RMB7.5
Million. The Company has submitted an objection to jurisdiction. On March 4, 2009, Futian Court
sent the Notice to the Company to inform that this case has been transferred to Shenzhen
Intermediate Court for adjudication.
On 22 December 2009, the Company received court ruling delivered by the Guangdong Higher
Court. After investigated by Guangdong Higher Court, it is considered that the retrial application
to Shenzhen Intermediate Court Judgment SZFZ (2008) No. 223 by the company is complied to
the law, and adjudicated: ① Arraign by Guangdong Highest People's Court ② suspended the
execution of the original verdict during the retrial.
On 15 Aug. 2011, the Company received the Administrative Ruling Paper (YGFSJZ Zi (2010) No.
8) from the Guangdong Higher Court, which maintained the Administrative Ruling Paper (SZFXZ
Zi (2008) No. 223), and it believed that the dispute on the land ownership for both parties was
civil right confirmation, and both parties should find other legal way to solve.
The Company received the ruling of Shenzhen Medium People's Court in Oct. 2012, at which the
court approved legally Meisi Company’s application on canceling the lawsuit towards the
Company. After receiving the above ruling, due to the Administrative Ruling Paper SZFXZ Zi
(2008) No. 223 had clearly ruled that the dispute on Meilin land between the Company and Meisi
Company should be settled through civil law procedures, therefore, the Company raised the civil
lawsuit to Meisi Company and Luojingfa Company, requiring to recognize the ownership of the
above involved land for the Company, and the court has accepted the above mentioned lawsuit.
Then, Meisi Company raised the counterclaim towards the Company, requiring to recognize its
ownership of the above involved land. And the two cases were combined for public trial on 1 Mar.
2013, and now it’s waiting for ruling.
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The Company believes that the land use right and ownership of above building should be legally
confirmed to the Company. The Company will secure its own legal rights through all legal means,
and the above issues do not have significant impact on the Company’s financial position.
2. Contingent liabilities and its financial effect arising from loan guarantee offered to other
companies
（1）The Company provided a joint-liability guarantee for the short-term loan of RMB20 million
borrowed by its subsidiary—Shenzhen ITC Vehicles Industry Co., Ltd. from Bank of Beijing
Shenzhen Branch, and provided the mortgage guarantee for the subsidiary by mortgaging its 39/F,
42/F and 2-07 room in Block B of Shenzhen International Trade Center Plaza located at Renmin
South Road, Luohu District, Shenzhen, and the closing balance stood at RMB 20 million.
（2）Shenzhen ITC Vehicles Industry Co., Ltd., a subsidiary to the Company, obtained a long-term
loan of RMB 26 million from PingAn Bank Co., Ltd. Shenzhen Branch by mortgaging 100 taxi
operating license plates of Shenzhen Guomao Car Rental Co., Ltd., and the closing balance stood
at RMB 20.15 million of which RMB9.75 million will be due within one year.
（3）Shenzhen ITC Vehicles Industry Co., Ltd. provided a joint-liability guarantee for a short-term
loan of RMB 40 million from Industrial Bank Shenzhen Branch by mortgaging 33 and 93 taxi
operating license plates respectively owned by Shenzhen ITC Car Rental Co., Ltd. and Shenzhen
ITC Vehicles Industry Co., Ltd. which are subsidiaries of the Company, and the closing balance
stood at RMB 40 million.
（4）The company provides a joint-liability guarantee for a long term loan of RMB 11.24 million
from Bank of communications co., LTD., Dunguan branch by mortgaging the company’s property
of eight houses 8 located at building international trade center Ren Ming Nan Road, Luohu
District, Shenzhen, and the closing balance stood at 11.24 million.
（5）The company provided a joint-liability guarantee for a long term loan of RMB 50 million
borrowed by its subsidiary- Shenzhen Properties & Resources Yangzhou real estate development
co., LTD from Bank of communications co., LTD., Yangzhou branch, and the closing balance
stood at 50 million.
（6）Guarantee for the proprietors: The Company and its subsidiaries provided the commodity
houses purchasers with mortgage guarantee to the bank. Up to 30 June 2013, the guarantee
amount unsettled was RMB 22.39 million. The guarantee is that the real estate developer provides
petty proprietor with guarantee for purchasing of commodity houses of the Company, which is a
common phenomenon in this business.
Other contingent liabilities and its financial effect:
Particulars about contingent assets as follows:
Bureau of Foreign Trade and Economic Cooperation of Hubei province Shenzhen branch
(hereinafter referred as to ―Hubei FTEC Shenzhen branch‖) sued the Company to Shenzhen
Intermediate Court on July 2000 for termination of the agreement between the Hubei FTEC
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen branch and the Company about office property of 4,000 square meters purchasing in
Jiabing Building (now known as Jinlihua Commercial Plaza) and asked for refund of purchase
payment of RMB10.8 million and an indemnify of RMB18.6756 million on the ground of delayed
delivery. Guangdong Higher Court issued YGFMYZZ No. 90 judgment (hereinafter referred as to
―No. 90 Judgement‖) and adjudicated that the Company should refund the Hubei FTEC Shenzhen
branch purchase payment of RMB 10.8 million and related interests.
Hubei FTEC Shenzhen branch applied for the court to implement the case. At the end of January
2005, Guangzhou Railway Transportation Intermediate Court (hereinafter referred to as ―GRTIC‖
was appointed by Guangdong Higher Court to execute the case of Hubei FTEC suing the
Company. GRTIC had sent seizure adjudication to liquidation team of Luohu Hotel to seal up the
Company’s RMB 23 million of distributed obligatory right in Luhu Hotel.
The Company rejected the adjudication of Guangdong Higher People’s Court and applied for
retrial to the Supreme People’s Court. In August 2005, the Supreme People’s Court issued (2004)
MEJZ No.146-1 Civil Judgment, adjudicating that Guangdong Higher People’s Court carried out
retrial for this case and the original judgment was suspended to be implemented during retrial
period. On May 12, 2006, Guangdong Higher People’s Court concluded retrial of No. 90
Judgment and maintained adjudication of No. 90 Judgment. The execution of this case was
resumed. Hubei FTEC Shenzhen branch asked GRTIC for payment and re-execution of interest
judgment during retrial period. Meanwhile, the Company applied for temporary respite. On June
30, 2006, GRTIC issued (2004) GTZFZZ No. 225-4 Civil Judgment, adjudicating that: ① the
application for temporary respite of the Company was not adopted due to the lack of fact and legal
basis; ②the application of Hubei FTEC Shenzhen branch related to payment was in conformity
with stipulations of law and GRTIC decided to remit the rest of money to the account of Hubei
FTEC Shenzhen branch after deducting execution fees from RMB 23 million; ③ Hubei FTEC
Shenzhen branch’s application on asking repayment of interest during retrial period was not
supported; ④ Repayment duty of the Company confirmed by No. 90 Judgment was executed and
finished according to law; ⑤ No. 90 Judgment was terminated and executed. The Company had
confirmed losses according to the above adjudications and added the accounts receivable of
Jiyong Company and withdrawn provision for bad debt. The Company considered that there were
errors in identified fact and applicable law of the retrial adjudication from Guangdong Higher
People’s Court and therefore applied for retrial in the Supreme People’s Court. The Supreme
People’s Court issued (2004) MEJZ No. 146-3 Civil Judgment in October 2007, adjudicating that
the Supreme People’s Court would execute retrial for this case. However, the Company revoked
the retrial appeal toward the Supreme Court after comprehensive considerations, and the Supreme
Court approved such cancel.
The 14th and 15th floors of Jiabin Building retuned by Hubei FTEC Shenzhen branch were
possessed by the Company legally after the Company had pay for housing compensation and
interest. For the purpose of resolving building property right problem and through investigation
the Company found that the 14th and 15th floors of Jiabin Building were registered under the
name of Yinzhu Industrial Development Company of Western Zhuhai (hereinafter referred to as
―Zhuhai Yinzhu Company‖ by the means of filing registration. The Company submitted civil
action to Luohu Court on June 2008 to prosecute Zhuhai Yinzhu Company, ask the Court to
confirm that the Company was oblige of the 14th and 15th floors of Jiabin Building and judge that
the 14th and 15th floors of Jiabin Building was transferred to and registered under the name of the
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Company. Luohu Court accepted this case according to law with the case number of (2008)
SLFMSCZ No. 1442. On July 21, 2008, the Court made public hearing and presided over
mediation for this case. The Company and Zhuhai Yinzhu Company reached a settlement and
Luohu Court issued Civil Mediation Agreement which mainly contained the following contents:
① the two parties agreed to return the 14th and 15th floors of Jiabin Building to plaintiff (the
Company); ② Defendant should assist plaintiff (the Company) to handle related procedures
about transferring the above house property to the name of the plaintiff. This Civil Mediation
Agreement entered into force pursuant to the law. As of the end of reporting year, the 14th and
15th floors of Jiabin Building were registered under the name of the Company by Registration
Center for Property of Real Estate of Shenzhen Municipality in the way of filing registration.
Since Shenzhen Longyuan-Kaili-Hengfeng Real Estate Co., Ltd ( hereinafter as the
―Longyuan-Kaili‖) and Shenzhen Huaneng-Jindi Property Co., Ltd.( hereinafter as the ―Huaneng
Property‖) attempted to reconstruct Jinlihua Commercial Plaza, the Company, the first
administration directly under Shenzhen Urban Planning and Land Resources Committee
(hereinafter as the ―SUPLRC‖), Longyuan-Kaili and Huaneng Property signed SDHZ (1992) No.
0228 Second Supplementary Agreement of Shenzhen Grant Contract of Land Use Right on March
3, 2011 which was shown as follows: ① SUPLRC agreed that the transferee for the right of use
of the land with a land parcel No. H206-0002 and an area of 6,892 square meters was changed to
Longyuan-Kaili and Huaneng Property; ② Longyuan-Kaili and Huaneng Property undertook all
rights, responsibilities and liabilities of this land parcel and straightened out the relationship of the
transferred property on their own and assisted to handle relevant procedures; ③ Longyuan-Kaili
and Huaneng Property promised to resolve existing mortgage and pre-seizure of this project,
coped with all disputes arising from changes on transferee of right of use of this land and assumed
legal and economic responsibilities; ④ the property right of the 14th and 15th floors in this
project which belonged to commodity houses, were owned by the Company and Longyuan-Kaili
and Huaneng Property were responsible for the construction and decoration of this project
according to harmonized standards on delivery of building; ⑤ the period of use of land parcel
was adjusted to 50 years from February 21, 2011 to February 20, 2061.
After signing the above agreements, the Company’s right on the 14th and 15th floors at Jinlihua
Commercial Plaza is affirmed. But due to the existing risks in delivery of this house property and
acquisition of property ownership certificate, great uncertainties exist in whether or not it will
bring economic interests to the Company. According to the related regulations of Accounting
Standards for Business Enterprises, it does not match the recognition criteria.
XII. Commitments
1. Significant commitments
Inapplicable
2. Fulfillment of previous commitments
Inapplicable
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XIII. Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
Unit: RMB Yuan
Influence number on financial Reason for failing to estimate
Item Details
status and operating results the influence number
2. Notes of profit distribution after Balance Sheet Date
Unit: RMB Yuan
3. Notes of other events after Balance Sheet Date
The borrowing and repayment events after the balance sheet date:
(1) The Company’s subsidiary Shenzhen GUOMAO Vehicles Industry Co., Ltd. repaid the
long-term loans of RMB 750,000 and RMB 750,000 to Shenzhen Branch of Ping An Bank
respectively on 9 July 2013 and 9 Aug. 2013.
XIV. Notes of other significant events
1. Exchange of non-monetary assets
Inapplicable
2. Debt reorganization
Inapplicable
3. Business combination
Inapplicable
4. Lease
Inapplicable
5. Closing financial instruments that externally issued and convertible into shares
Inapplicable
6. Assets and liabilities measured at fair value
Unit: RMB Yuan
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Gains and losses Accumulated
Accrued
from the changes in changes in fair
Item Opening amount impairment in the Closing amount
fair value in the value recorded in
reporting period
reporting period equity
Financial assets
Total of above 0.00 0.00 0.00 0.00 0.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00
7. Foreign currency financial assets and liabilities
Unit: RMB Yuan
Gains and losses Accumulated
Accrued
from the changes in changes in fair
Item Opening amount impairment in the Closing amount
fair value in the value recorded in
reporting period
reporting period equity
Financial assets
Subtotal of financial
0.00 0.00 0.00 0.00 0.00
assets
Financial liabilities 0.00 0.00 0.00 0.00 0.00
8. Main content and significant changes of annuity plan
Inapplicable
9. Other
(1) The Company has accrued expense of the Jinlihua Plaza land VAT amounting to RMB
56,303,627.40 in the previous financial year. According to the SGT (2001) No. 314 Document,
unpaid or overdue land VAT could be exempted. However, as the land use right has not been
transferred, the Company will proactively proceed with the exemption procedure of the Jinlihua
Plaza land VAT of RMB 56,303,627.40, and will write off the accrued expense of Jinlihua Plaza
land VAT of RMB 56,303,627.40 when the Company receives the approval reply.
The Company has a receivable house payment of Jinlinhua Plaza from Shenzhen Jiyong Property
Development Co., Ltd, which amounted to RMB 98.6113 million. For that, a bad-debt provision
of RMB 42.6113 million has been made with the net amount being RMB 56 million.
(2) On 25 Nov. 2011, the proposal on liquidating Hainan Xinda Development Co., Ltd.
(hereinafter referred to as ―Hainan Company‖) was reviewed and approved at the 4th Session of
the 7th Board of Directors. Hainan Company was founded in 1988 as a wholly-owned subsidiary
of the Company. At present, it has no development project or land reserve. And it has recorded
deficit for years. The Board of Directors once approved the proposal to transfer Hainan Company
as a whole in Jan. 2009. But the proposal could not proceed due to the policy factor and other
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
reasons. Currently, as a creditor, the Company started a judical proceeding to liquidate Hainan
Company.
As of the end of the reporting period, Hainan Company was conducting the preparatory work on
bankrupt liquidation.
XV. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Accounts receivable with
significant single amount
98.33
and individually 101,447,889.05 45,144,261.65 44.5% 101,447,889.05 98.1% 45,447,889.05 44.8%
%
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
Group 2 1,665,154.71 1.61% 1,332,123.77 80% 1,908,314.21 1.85% 1,128,725.53 59.15%
Subtotal of the groups 1,665,154.71 1.61% 1,332,123.77 80% 1,908,314.21 1.85% 1,128,725.53 59.15%
Accounts receivable with
insignificant single
amount but individually 54,380.35 0.05% 54,380.35 100% 54,380.35 0.05% 54,380.35 100%
withdrawn bad debt
provision
Total 103,167,424.11 -- 46,530,765.77 -- 103,410,583.61 -- 46,630,994.93 --
Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision
at period-end
√ Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawal
Content of accounts receivable Book balance Bad debts provision Withdrawal reason
proportion
Involved in lawsuit,
referring to XI.1
Shenzhen Jiyong Properties & Resources
98,611,328.05 42,307,700.65 42.9% Contingent events of
Development Company
Section VIII.
Financial Report
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Uncollectible for a
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2,836,561.00 100%
long period
Total 101,447,889.05 45,144,261.65 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt
provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Aging Bad debt provision
Proporti Proporti Bad debt provision
Amount Amount
on (%) on (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
(including 1 38,135.00 2% 1,144.05
year)
Subtotal for
those aging 38,135.00 2% 1,144.05
within 1 year
Over 3 years 1,665,154.71 100% 1,332,123.77 1,870,179.21 98% 1,127,581.48
3-4 years 0% 0.00 1,228,539.62 64.38% 614,269.81
4-5 years 1,665,154.71 100% 1,332,123.77 641,639.59 33.62% 513,311.67
Total 1,665,154.71 -- 1,332,123.77 1,908,314.21 -- 1,128,725.53
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□Applicable √Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
Accounts receivable with insignificant single amount but individually withdrawn bad debt
provision at period-end:
√Applicable □Inapplicable
Unit: RMB Yuan
Content of accounts
Book balance Bad debts provision Withdrawal proportion Withdrawal reason
receivable
Luohu Economic Uncollectible for a long
54,380.35 54,380.35 100%
Development Company period
Total 54,380.35 54,380.35 -- --
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(2) Information of accounts receivable reversed or recovered in the report period
Unit: RMB Yuan
Withdrawal amount of
Content of accounts Reason for reversal or Basis on recognition of Reversed or recovered
bad debt provision before
receivable recovery provision for bad debts amount
the reversal or recovery
Shenzhen Jiyong Properties
& Resources Development Reversed Involving litigation 42,611,328.05 303,627.40
Company
Total -- -- 42,611,328.05 --
The withdrawal of bad debt provision of accounts receivable with significant single amount or
insignificant single amount but individually made impairment test at the end of report period:
Unit: RMB Yuan
Content of accounts Withdrawal proportion
Book balance Amount of bad debts Reason
receivable (%)
Notes to accounts receivable with insignificant single amount but large risks of groups after
grouping by credit risks characteristics:
(3) Information of accounts receivable that written off in the report period
Unit: RMB Yuan
Whether arising
Name of company Nature Date Amount Reason from related-party
transaction or not
Notes:
There was no accounts receivable that written off in the report period.
(4) Information of shareholders with more than 5% (including 5%) of the voting shares of
the Company in accounts receivable in report period
Unit: RMB Yuan
Closing balance Opening balance
Name of entity Provision for bad
Book balance Book balance Provision for bad debts
debts
Total 0.00 0.00 0.00 0.00
(5) Nature or content of other accounts receivable with significant amount
The other accounts receivable with significant amount was mainly RMB 98,611,328.05 of project
accounts receivable due from Shenzhen Jiyong Properties & Resources Development Company
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(6) Top five accounts receivable
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
Shenzhen Jiyong
Properties & Resources Non-related party 98,611,328.05 Over five years 95.58%
Development Company
Shenzhen Tewei Industry
Non-related party 2,836,561.00 Over five years 2.75%
Co., Ltd.
Tianhong Shopping Plaza
Non-related party 1,665,154.71 4-5 years 1.61%
Co., Ltd.
Total -- 103,113,043.76 -- 99.94%
(7) Accounts receivable due from related parties
Unit: RMB Yuan
Name of entity Relationship Amount Proportion (%)
Total -- 0.00 0%
(8)
RMB 000 was transferred from the accounts receivable not meeting the conditions of
termination recognition.
(9) If securitization is carried out on accounts receivable as the underlying asset, please brief
on the arrangement of relevant transactions.
Inapplicable
2. Other accounts receivable
（1）Other accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad
Book balance Provision for bad debts Book balance
debts
Category
Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
(%) (%) (%) (%)
Other accounts receivable
with significant single 19.08 68.14 77.44
234,434,938.26 159,746,050.56 236,213,999.72 23.9% 182,918,860.23
amount and individually % % %
withdrawn bad debt
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
provision
Other accounts receivable for which bad debt provisions are made on the group basis
74.82
Group 1 981,592,916.24 79.9% 0% 739,478,916.64 0%
%
98.73 97.15
Group 2 10,008,802.89 0.81% 9,881,422.41 10,179,715.93 1.03% 9,889,835.47
% %
80.72 75.85
Subtotal of the groups 991,601,719.13 9,881,422.41 1% 749,658,632.57 9,889,835.47 1.32%
% %
Other accounts receivable
with insignificant single
amount but individually 2,421,326.23 0.2% 2,421,326.23 100% 2,421,326.23 0.25% 2,421,326.23 100%
withdrawn bad debt
provision
Total 1,228,457,983.62 -- 172,048,799.20 -- 988,293,958.52 -- 195,230,021.93 --
Notes of category:
Other accounts receivable with significant single amount and individually withdrawn bad debt
provision at period-end:
√Applicable □Inapplicable
Unit: RMB Yuan
Content of other accounts Withdrawing proportion
Book balance Bad debt amount Reason
receivable （%）
Shum Yip Properties Uncollectible for a long
98,099,637.90 23,410,750.20 23.86%
Development Co., Ltd. period
Payment for discharging
Gintian Industry (Group) of guaranty responsibility
56,600,000.00 56,600,000.00 100%
Co., Ltd that was difficult to be
recollected
Hainan Xinda Uncollectible for a long
49,392,574.38 49,392,574.38 100%
Development Co., Ltd period
Anhui Nanpeng Uncollectible for a long
7,443,104.00 7,443,104.00 100%
Papermaking Co., Ltd period
Shenzhen Shengfenglu, There is no asset to
GUOMAO Jewel & Gold 6,481,353.60 6,481,353.60 100% execute the verdict, thus
Co., Ltd lead to uncollectibility
Shanghai Yutong Real
Uncollectibility for the
estate development Co., 5,676,000.00 5,676,000.00 100%
reason of verdict
Ltd
HongKong Yueheng
3,271,837.78 3,271,837.78 100% Has been liquidated
Development Co., Ltd
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Dameisha Tourism
2,576,445.69 2,576,445.69 100% Suspended project
Center
Elevated Train Project 2,542,332.43 2,542,332.43 100% Suspended project
Shenzhen GUOMAO
Industrial Development 2,351,652.48 2,351,652.48 100% The company is insolvent
Co., Ltd
Total 234,434,938.26 159,746,050.56 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt
provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Aging
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
(including 1 108,949.80 1.09% 3,269.57 290,732.42 2.86% 8,721.97
year)
Subtotal for
those aging 108,949.80 1.09% 3,269.57 290,732.42 2.86% 8,721.97
within 1 year
1-2 years 23,412.98 0.23% 2,341.30 8,037.68 0.08% 803.77
2-3 years 298.83 0% 89.65 458.09 0% 137.43
Over 3 years 9,876,141.28 98.67% 9,875,721.89 9,880,487.74 97.06% 9,880,172.30
3-4 years 572.44 0.01% 286.22 310.25 0% 155.13
4-5 years 665.83 0.01% 532.66 801.57 0.01% 641.26
Over 5 years 9,874,903.01 98.66% 9,874,903.01 9,879,375.92 97.05% 9,879,375.92
Total 10,008,802.89 -- 9,881,422.41 10,179,715.93 -- 9,889,835.47
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□Applicable √Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
Other accounts receivable with insignificant single amount but individually withdrawn bad debt
provision at period-end:
√ Applicable □ Inapplicable
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Content of other accounts
Book balance Bad debts provision Withdrawal proportion Withdrawal reason
receivable
Shenzhen Wufang Poor operation status
Pottery & Porcelain 1,747,264.25 1,747,264.25 100%
Industrial Co., Ltd
Compensation for Shidai Owner unable to repay
new residence mortgage 601,762.21 601,762.21 100% the loan
guarantee in ABC
Zhanjiang Shenzhen Real Insolvency thus
Estate Development Co., 53,478.77 53,478.77 100%
Ltd. uncollectible
Meilin Synthetic Fibre Uncollectible for a long
Company 11,000.00 11,000.00 100%
period
Others Uncollectible for a long
7,821.00 7,821.00 100%
period
Shenzhen Wufang
Pottery & Porcelain 2,421,326.23 2,421,326.23 -- --
Industrial Co., Ltd
(2) Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
Withdrawal amount of
Content of other accounts Reason for reversal or Basis on recognition of Reversed or recovered
bad debt provision before
receivable recovery provision for bad debts amount
the reversal or recovery
The withdrawal of bad debt provision of other accounts receivable with significant single amount
or insignificant single amount but individually made impairment test at the end of report period:
Unit: RMB Yuan
Content of other Withdrawal proportion
Book balance Amount of bad debts Reason
accounts receivable (%)
Notes to other accounts receivable with insignificant single amount but large risks of groups after
grouping by credit risks characteristics:
(3) Information of the write-off other accounts receivable
Unit: RMB Yuan
Whether arising from
Name of company Nature Date of written off Amount Reason related-party
transactions
Notes:
There was no write-off other accounts receivable during the reporting period.
140
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(4) The other accounts receivable due from shareholders with more than 5% (including 5%)
of the voting shares of the Company in the reporting period
Unit: RMB Yuan
Closing balance Opening balance
Name of entity Withdrawal amount of Withdrawal amount
Book balance Book balance
bad debts of bad debts
Total 0.00 0.00 0.00 0.00
(5) Nature or content of other accounts receivable with significant amount
Other accounts receivable with significant amount are as follow:
Name of the company Amount Nature or content Proportion (%)
Shenzhen Properties & Resources Yangzhou real estate 618,861,310.60 Come-and-go money of 50.38%
development co., LTD the subsidiary
Dongguan GUOMAO Chang Sheng real estate 194,841,793.00 Come-and-go money of 15.86%
development co., LTD the subsidiary
Shenzhen Properties & Resources Xuzhou Dapeng real 111,381,060.73 Come-and-go money of 9.07%
estate development co., LTD the subsidiary
Shenzhen industry real estate development co., LTD 98,099,637.90 Come-and-go money of 7.99%
the subsidiary
Gintian Industry (Group) Co., Ltd 56,600,000.00 Amount of guarantee 4.61%
and litigation
Hainan Xinda Development Co., Ltd 49,392,574.38 Come-and-go money of 4.02%
the subsidiary
Total 1,129,176,376.61 91.92%
(6) Top five other accounts receivable
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
Shenzhen Properties &
Resources Yangzhou real
Subsidiary 618,861,310.60 Within three years 50.38%
estate development co.,
LTD
Dongguan GUOMAO
Chang Sheng real estate Subsidiary 194,841,793.00 Within one year 15.86%
development co., LTD
Shenzhen Properties &
Subsidiary 111,381,060.73 Within one year 9.07%
Resources Xuzhou
141
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Dapeng real estate
development co., LTD
Shenzhen industry real
estate development co., Subsidiary 98,099,637.90 Over five years 7.99%
LTD
Gintian Industry (Group)
Non-related party 56,600,000.00 Over five years 4.61%
Co., Ltd
Total -- 1,079,783,802.23 -- 87.91%
(7) Other account receivable due from related parties
Unit: RMB Yuan
Name of company Relationship Amount Proportion (%)
Shenzhen Properties &
Resources Yangzhou real Subsidiary 618,861,310.60 50.38%
estate development co., LTD
Dongguan GUOMAO Chang
Sheng real estate development Subsidiary 194,841,793.00 15.86%
co., LTD
Shenzhen Properties &
Resources Xuzhou Dapeng
Subsidiary 111,381,060.73 9.07%
real estate development co.,
LTD
Shenzhen industry real estate
Subsidiary 98,099,637.90 7.99%
development co., LTD
Hainan Xinda Development
Subsidiary 49,392,574.38 4.02%
Co., Ltd
Shenzhen GUOMAO Vehicles
Subsidiary 48,100,000.00 3.92%
Industry Co., Ltd.
Anhui Nanpeng Papermaking
Associated enterprise 7,443,104.00 0.61%
Co., Ltd
Shenzhen GUOMAO Food
Subsidiary 4,187,660.40 0.34%
Co., Ltd
Shenzhen GUOMAO
Industrial Development Co., Associated enterprise 2,351,652.48 0.19%
Ltd
Shenzhen Wufang Pottery &
Associated enterprise 1,747,264.25 0.14%
Porcelain Industrial Co., Ltd
Shenzhen Shenxin Motor Rent
Subsidiary 1,311,376.00 0.11%
Co., Ltd
Shenzhen Property
Cost method 1,092,094.59 0.09%
Construction Supervision Co.,
142
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Ltd
Shenzhen GUOMAO property
Subsidiary 1,073,443.62 0.09%
management co., LTD
Shenzhen International Trade
Subsidiary 744,177.30 0.06%
Plaza
Zhanjiang Shenzhen real
Subsidiary 53,478.77 0%
estate development co., LTD
Total -- 1,140,680,628.02 92.87%
(8)
RMB000 was transferred from the other accounts receivable not meeting the conditions of
termination recognition.
(9) If securitization is carried out on the other accounts receivable as the underlying asset,
please brief on the arrangement of relevant transactions.
Inapplicable
3. Long-term equity investments
Unit: RMB Yuan
Explanati
ons on
Withdraw
difference
al amount
s between
of Cash
Sharehold Voting sharehold Provision
Accounti Initial impairme bonus in
The Opening Increase/ Closing ing right ing for
ng investme nt the
investee balance decrease balance Proportio Proportio proportio impairme
method nt cost provision reporting
n n n and nt loss
in the period
voting
reporting
right
period
proportio
n
Shenzhen
Jifa Equity 30,645,0 28,168,07 244,042.8 28,412,11
50% 50%
Warehouse method 56.04 0.98 1 3.79
Co., Ltd
Shenzhen
GUOMAO
Equity 23,186,1 37,247,88 -5,586,19 31,661,69 9,614,345
Tian’an 50% 50%
method 24.00 7.05 2.98 4.07 .90
Properties
Co., Ltd
Shenzhen
Tian’an Equity 1,500,00 3,531,192 -1,267,72 2,263,465 1,385,654
50% 50%
Internation method 0.00 .12 6.19 .93 .10
al Building
143
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Property
Manageme
nt Co., Ltd
Shenzhen
Huangchen
Cost 28,500,0 28,500,00 28,500,00
g Real 95% 95%
method 00.00 0.00 0.00
Estate Co.,
Ltd.
Shenzhen
Property
and Real Cost 30,950,0 30,950,00 30,950,00
100% 100%
Estate method 00.00 0.00 0.00
Developme
nt Co., Ltd.
Shenzhen
Properties
&
Resources Cost 50,000,0 50,000,00 50,000,00
100% 100%
Yangzhou method 00.00 0.00 0.00
real estate
developme
nt co., LTD
Dongguan
Guomao
Changshen
Cost 20,000,0 20,000,00 20,000,00
g Real 100% 100%
method 00.00 0.00 0.00
Estate
Developme
nt Co., Ltd.
Shenzhen
GUOMAO
Cost 29,850,0 29,850,00 29,850,00
Vehicles 90% 90%
method 00.00 0.00 0.00
Industry
Co., Ltd.
Hainan
Xinda Cost 20,000,0 20,000,00 20,000,00 20,000,00
100% 100%
Developme method 00.00 0.00 0.00 0.00
nt Co., Ltd
Shenzhen
GUOMAO Cost 20,000,0 20,000,00 20,000,00
95% 95%
Property method 00.00 0.00 0.00
Manageme
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
nt Co., Ltd.
Shenzhen
Shenxin Cost 12,877,2 12,877,26 12,877,26
100% 100%
Taxi Co., method 60.98 0.98 0.98
Ltd.
Shenzhen
GUOMAO Cost 1,600,00 1,600,000 1,600,000 1,600,000
80% 80%
Food Co., method 0.00 .00 .00 .00
Ltd
Shenzhen
Property
Constructio Cost 3,000,00 3,000,000 3,000,000
100% 100%
n method 0.00 .00 .00
Supervisio
n Co., Ltd
Shenzhen
Internation Cost 12,000,0 12,000,00 12,000,00 12,000,00
100% 100%
al Trade method 00.00 0.00 0.00 0.00
Plaza
Shenzhen
Cost 1,380,00 1,380,000 1,380,000
Real Estate 100% 100%
method 0.00 .00 .00
Exchange
Shensan Cost 17,695.0
17,695.09 17,695.09 17,695.09
Co., Ltd. method 9
Zhanjiang
Shenzhen
Cost 2,530,00 2,530,000 2,530,000 2,530,000
Real Estate 100% 100%
method 0.00 .00 .00 .00
Developme
nt Co., Ltd
Shum Yip
Properties Cost 15,834,0 15,834,00 15,834,00 15,834,00
100% 100%
Developme method 00.00 0.00 0.00 0.00
nt Co., Ltd.
PRD
Group
XuzhouDa
Cost 50,000,0 50,000,00 50,000,00
peng Real 100% 100%
method 00.00 0.00 0.00
Estate
Developme
nt Co., Ltd
Shenzhen Cost 18,983,6 18,983,61 18,983,61 26% 26% 18,983,61
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Wufang method 14.14 4.14 4.14 4.14
Pottery &
Porcelain
Industrial
Co., Ltd
Shenzhen
GUOMAO
Cost 3,682,97 3,682,972 3,682,972 3,682,972
Industrial 38.33% 38.33%
method 2.55 .55 .55 .55
Developme
nt Co., Ltd
Anhui
Nanpeng Cost 13,824,0 13,824,00 13,824,00 13,824,00
30% 30%
Papermaki method 00.00 0.00 0.00 0.00
ng Co., Ltd
China T.H. Cost 2,962,50 2,962,500 2,962,500 2,160,300
0.33% 0.33%
Co.,Ltd. method 0.00 .00 .00 .45
North
Machinery Cost 3,465,00 3,465,000 3,465,000 3,465,000
12.66% 12.66%
(Group) method 0.00 .00 .00 .00
Co., Ltd.
Guangdong
Huayue Cost 8,780,64 8,780,645 8,780,645 8,780,645
8.47% 8.47%
Real Estate method 5.20 .20 .20 .20
Co., Ltd.
Sanya East
Cost 230,500. 230,500.0 230,500.0
Travel Co., 0.28% 0.28%
method 00 0 0
Ltd.
405,799, 419,415,3 -6,609,87 412,805,4 102,878,2 11,000,00
Total -- -- -- --
368.00 38.11 6.36 61.75 27.43 0.00
Notes:
The cause of the reduction of the long term investment to Shenzhen GUOMAO Tian’an Properties Co., Ltd and
Shenzhen Tian’an International Building Property Management Co., Ltd is the cash dividends decreased in this
period.
4. Revenue and Cost of Sales
(1) Revenue
Unit: RMB Yuan
Item Reporting period Same period of last year
Main business revenue 25,454,166.48 23,449,864.94
Total 25,454,166.48 23,449,864.94
Cost of sales 4,623,847.30 9,757,305.26
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(2) Main business (Classified by industry)
Unit: RMB Yuan
Reporting period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Property rental and
25,454,166.48 4,623,847.30 23,449,864.94 9,757,305.26
management
Total 25,454,166.48 4,623,847.30 23,449,864.94 9,757,305.26
(3) Main business (Classified by product)
Unit: RMB Yuan
Reporting period Same period of last year
Name of products
Revenue of sales Costs of sales Revenue of sales Costs of sales
Property rental and
25,454,166.48 4,623,847.30 23,449,864.94 9,757,305.26
management
Total 25,454,166.48 4,623,847.30 23,449,864.94 9,757,305.26
(4) Main business (Classified by area)
Unit: RMB Yuan
Reporting period Same period of last year
Name of area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Shenzhen Area 25,454,166.48 4,623,847.30 23,449,864.94 9,757,305.26
Total 25,454,166.48 4,623,847.30 23,449,864.94 9,757,305.26
(5) Revenue of sales from the top five customers
Unit: RMB Yuan
Proportion of total
Customers Total revenue of sales
revenue of sales (%)
Tianhong Shopping Plaza Co., Ltd. 4,937,992.38 19.4%
Shenzhen Branch of China Pacific Property Insurance Co., Ltd. 2,454,822.00 9.64%
Shenzhen Jindu Wedding Etiquette Co., Ltd. 1,558,968.00 6.12%
Nature person 1,175,112.00 4.62%
Seven Days Hotel (Shenzhen) Co., Ltd. 1,004,928.00 3.95%
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total 11,131,822.38 43.73%
Note
5. Investment income
(1) List of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by equity
4,390,123.64 1,501,509.12
method
Other 14,939,600.00 18,957,191.77
Total 19,329,723.64 20,458,700.89
(2) Long-term equity investment income accounted by cost method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease YoY
year
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease YoY
year
Shenzhen Jifa Warehouse Co., Ltd 244,042.81 325,554.07 Decrease of realized profits
Shenzhen GUOMAO Tian’an Properties
4,028,152.92 930,877.58 Increase of realized profits
Co., Ltd
Shenzhen Tian’an International Building
117,927.91 245,077.47 Decrease of realized profits
Property Management Co., Ltd
Total 4,390,123.64 1,501,509.12 --
Notes of investment income:
The Company’s recovery of investment income exist no significant limitation.
6. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
Supplemental information Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated from
-- --
operations：
Net profit 40,159,141.82 15,954,365.81
Add: Provision for assets impairments -22,145,321.63 -5,066,959.74
Depreciation of fixed assets, oil and gas assets and productive
8,000,201.31 7,943,524.28
biological assets
Amortization of long-term deferred expense 86,488.14 86,488.14
Financial cost (income: negative) 1,682,000.00 -206,159.30
148
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Investment loss (gains: negative) -19,329,723.64 -20,458,700.89
Decrease in inventory (increase: negative) -326,784.17
Decrease in accounts receivable from operating activities (increase:
-239,920,865.60 -83,312,206.52
negative)
Increase in accounts payable from operating activities (decrease:
-222,518,848.14 169,772,873.78
negative)
Net cash flows generated from operating activities -454,313,711.91 84,713,225.56
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of cash 393,487,265.01 182,983,861.29
Less: opening balance of cash 399,641,751.92 83,846,009.34
The net increase in cash and cash equivalents -6,154,486.91 99,137,851.95
7. Information of assets and liabilities recognized by evaluation value from the counter
purchase
Information of assets and liabilities recognized by fair value from the counter purchase
Unit: RMB Yuan
Recognition method of Calculation process
Item Fair value Original book value
fair value of fair value
Information of long-term investment formed by counter purchase
Unit: RMB Yuan
Amount of long-term investment formed Calculation process
Item
by counter purchase Of long-term equity investment
XVI Supplemental information
1. Items and amounts of extraordinary gains and losses
Unit: RMB Yuan
Item Amount Note
Gain/loss on the disposal of non-current assets (including the
-75,632.69
offset part of the asset impairment provisions)
Impairment provision reversal of accounts receivable on which For details see the VII. 6. account
303,627.40
the impairment test is carried out separately receivables in section VIII
Non-operating income and expense other than the above 664,946.86
Less：Income tax effects -322,650.81
149
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total 1,215,592.38 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
2. Differences between accounting data under domestic and overseas accounting
standards
(1). Differences of net profit and net assets disclosed in financial reports prepared under
international and Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
2013 2012 Closing amount Opening amount
According to Chinese
353,600,992.81 98,686,285.22 1,855,749,628.63 1,502,852,915.53
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
353,600,992.81 98,686,285.22 1,855,749,628.63 1,502,852,915.53
accounting standards
(2). Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
2013 2012 Closing amount Opening amount
According to Chinese
353,600,992.81 98,686,285.22 1,855,749,628.63 1,502,852,915.53
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
353,600,992.81 98,686,285.22 1,855,749,628.63 1,502,852,915.53
accounting standards
No difference
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2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3). Explain reasons for the differences between accounting data under domestic and
overseas accounting standards
No difference
3. Return on equity and earnings per share
Unit: RMB Yuan
The weighted average ROE EPS
Profit in the reporting period
(%) Basic EPS Diluted EPS
Net profit attributable to the Company's
21.06% 0.5933 0.5933
common stock shareholders
Net profit attributable to shareholders of the
Company's common stock after deducting 20.98% 0.5913 0.5913
non-recurring gains and losses
4. Particulars on the abnormal conditions of main items in the financial statements of the
Company and relevant reasons
Movement in the main items of the financial statements of the Company and relevant reasons are
as follows:
Item Closing balance Opening balance Movement Reasons for movement
Prepayment 19,649,514.13 64,714,990.11 -69.64% Project settlement, transfer the prepay tax
Other accounts 10,601,734.63 6,371,689.34 66.39% The unsettled accounts paid in advance by the
receivable subsidiaries increased.
Accounts received in 41,284,037.14 678,075,291.01 -93.91% The project reach the settlement condition, the
advance income was carried forward, during the
reporting period
Long-term loan 73,476,685.30 19,316,666.64 280.38% The increase of loans obtained by the subsidiary
Deferred income tax 0.00 2,739,089.94 -100.00% The project reach the settlement condition, the
liabilities income was carried forward, during the
reporting period
Retained profits 1,099,692,167.61 746,091,174.80 47.39% The profit increase during the reporting period.
Item Closing balance Opening balance Movement Reasons for movement
1,348,194,107.29 624,520,270.29 115.88% The increase of settlement accounts and sales
Revenue of sales
during the reporting period
553,178,605.80 392,039,759.24 41.10% The settlement account income increased during
Costs of sales
the reporting period.
Tax and extra charges 283,964,714.90 58,377,586.79 386.43% Business tax and land value-added tax increased
of sales because of the increase of income
Financial expenses -3,595,065.02 -1,321,536.27 172.04% The increase of interest income
Assets impairment 1,230,708.99 -5,957,940.96 -120.66% The increase of the return bad debt provision
losses because of the increase of receivables received
151
2013 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
of the same period last year
Investment income 4,390,123.64 1,501,509.12 192.38% The increase of the joint venture’s income
Investment income 4,390,123.64 1,501,509.12 192.38% The increase of the joint venture’s income
from joint venture and
associated enterprise
Non-business income 2,510,882.84 1,180,679.74 112.66% Other compensation and confiscated income
increased in the reporting period
459,686,916.91 125,828,116.88 265.33% The real estate business income increased
Total profits
during the reporting period
Income tax expense 106,085,924.10 27,741,808.89 282.40% The increase of profits
Net profits 353,600,992.81 98,086,307.99 260.50% The real estate business income increased
during the reporting period
126,636,956.08 336,111,486.60 -62.32% the sales of project proceeds during the
Net cash flow from
reporting period reduced and payment of tax
operating activities
increased
-4,842,566.40 4,161,446.39 -216.37% Cash increased from the construction of fixed
Net cash flow from
assets and the same period investment income
investment activities
obtained of last year
-15,461,456.53 -156,421,856.92 -90.12% The net cash flow generated by financing
Net cash flow from
activities are outflows, net outflows decreased
financing activities
for increase of the borrowing money.
Net increase in cash 106,248,674.18 183,875,903.99 -42.22% The decrease of the collection of receivables of
and cash equivalents sale project and tax expense increased
Closing balance of 903,972,985.55 653,189,645.56 38.39% The increase of opening balance of cash and
cash and cash cash equivalents compare to the same period
equivalents last year
152
