2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
2014 Semi-annual Report
2014-21
August 2014
1
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section I. Important Reminders, Contents & Explanation
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter
referred to as “the Company”) warrant that this report is factual, accurate and complete without any
false record, misleading statement or material omission. And they shall be jointly and severally
liable for that.
All directors attended the board session for reviewing this report.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Mr. Chen Yugang, company principal, Mr. Wang Hangjun, chief of the accounting work, and Ms.
Shen Xueying, chief of the accounting organ (chief of accounting), hereby confirm that the
Financial Report enclosed in this report is factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Contents
2014 Semi-annual Report ..................................................................................................................1
Section I. Important Reminders, Contents & Explanation............................................................2
Section II. Company Profile..............................................................................................................5
Section III. Highlights of Accounting Data & Financial Indicators ..............................................7
Section IV. Report of the Board of Directors.................................................................................10
Section V. Significant Events...........................................................................................................19
Section VI. Change in Shares & Shareholders ..............................................................................27
Section VII. Preferred Shares .........................................................................................................31
Section VIII. Directors, Supervisors & Senior Management Staff..............................................32
Section IX. Financial Report...........................................................................................................33
Section X. Documents Available for Reference ...........................................................................183
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Explanation
Refers
Term Contents
to
4
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section II. Company Profile
I. Basic information of the Company
Stock abbreviation SWYA, SWYB Stock code 000011, 200011
Stock exchange listed
Shenzhen Stock Exchange
with
Chinese name of the
深圳市物业发展(集团)股份有限公司
Company
Abbr. of the Chinese
name of the Company (if 深物业集团
any)
English name of the
ShenZhen Properties & Resources Development (Group) Ltd.
Company (if any)
Abbr. of the English name
SZPRD
of the Company (if any)
Legal representative of
Mr. Chen Yugang
the Company
II. Contact information
Company Secretary Securities Affairs Representative
Name Fan Weiping Qian Zhong, Huang Fengchun
42/F, International Trade Center, 42/F, International Trade Center,
Contact address Renmin South Road, Shenzhen, Renmin South Road, Shenzhen,
Guangdong Province, P.R.China Guangdong Province, P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610, 82212043 0755-82210610, 82212043
E-mail 000011touzizhe@163.com 000011touzizhe@163.com
III. Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email
address of the Company during the reporting period?
□ Applicable √ Inapplicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2013 Annual Report.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2013 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the reporting period?
□ Applicable √ Inapplicable
The registration date and place of the Company, its business license No., taxation registration No. and
organizational code did not change during the reporting period. The said information can be found in the 2013
Annual Report.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section III. Highlights of Accounting Data & Financial Indicators
I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of any
accounting policy or correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/- (%)
Operating revenues (RMB Yuan) 501,367,559.78 1,348,194,107.29 -62.81%
Net profit attributable to
shareholders of the Company (RMB 112,074,537.49 353,600,992.81 -68.30%
Yuan)
Net profit attributable to
shareholders of the Company after
103,434,750.14 352,385,400.43 -70.65%
extraordinary gains and losses (RMB
Yuan)
Net cash flows from operating
-189,887,490.37 126,636,956.08 -249.95%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.1881 0.5933 -68.30%
Diluted EPS (RMB Yuan/share) 0.1881 0.5933 -68.30%
Weighted average ROE (%) 6.19% 21.06% -14.87%
As at the end of the As at the end of last
+/- (%)
reporting period year
Total assets (RMB Yuan) 3,588,338,174.44 3,873,252,714.32 -7.36%
Net assets attributable to
shareholders of the Company (RMB 1,766,173,937.86 1,802,781,292.68 -2.03%
Yuan)
II. 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
√ Applicable □ Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of Net assets attributable to shareholders of
the Company the Company
Same period of last
Reporting period Closing amount Opening amount
year
According to Chinese
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
accounting standards
Items and amounts adjusted according to international accounting standards
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
According to international
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
accounting standards
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
√ Applicable □ Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of Net assets attributable to shareholders of
the Company the Company
Same period of last
Reporting period Closing amount Opening amount
year
According to Chinese
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
accounting standards
Items and amounts adjusted according to overseas accounting standards
According to overseas
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
accounting standards
3. Explain reasons for the differences between accounting data under domestic and overseas accounting
standards
√Applicable □ Inapplicable
No difference.
III. Items and amounts of extraordinary gains and losses
√Applicable □ Inapplicable
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets Gains on disposal of fixed
(including the offset part of asset impairment 7,801,119.11 assets and investing
provisions) properties
Reversal of impairment provisions for the accounts
receivable on which impairment tests were carried out 15,168.75
separately
Other non-operating income and expenses other than the
1,944,946.00
above
Less: Income tax effects 1,121,446.51
Total 8,639,787.35 --
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
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
□ Applicable √ Inapplicable
No such cases during the reporting period.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section IV. Report of the Board of Directors
I. Overview
In the first half of 2014, affected by factors such as the domestic economic trends and the credit
environment, the real estate sector of the country was in a severe situation. Major cities witnessed
an obvious drop in turnover and the 100 Cities Price Index that had been rising constantly for nearly
two years encountered a continuous drop for two months. Since rumors spread that some real estate
projects in cities such as Hangzhou and Changzhou would resort to price reduction, buyers became
more hesitant and more and more developers started sales promotion. Some second-tier cities and
most of the third-tier and fourth-tier cities were under a great pressure of de-stocking. Under the
background of “two-way macro-control”, some cities adjusted their real estate policies more
frequently, but the first-tier and hot second-tier cities did not loosen up in control, causing bigger
differences among cities. Meanwhile, the central government’s economic expectation for the year,
the recent pickup of major economic indicators and the signs of loosening credit would help the real
estate market become stable in the second half of the year.
In the first half of the year, we vigorously promoted engineering development and marketing of real
estate projects, effectively managed project development with the help of and improved the projection operation efficiency. At the same time, we steadily promoted
development of sidelines such as house leasing, property management and passenger transportation
by automobile. For the first half of 2014, we achieved operating revenues of RMB 501 million and
total profits of RMB 148 million.
II. Main business analysis
YoY change of major financial data:
Unit: RMB Yuan
Same period of last Main reasons for
Reporting period YoY +/-%
year change
Projects settled and
Operating revenues 501,367,559.78 1,348,194,107.29 -62.81% sales realized
decreased.
The income from
Operating costs 230,835,231.01 553,178,605.80 -58.27% settled projects
decreased.
The marketing
expenses decreased
Selling expenses 5,167,082.37 7,367,804.79 -29.87%
due to the enhanced
cost control.
Administrative
50,185,597.53 51,339,858.73 -2.25%
expenses
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
The interest income
Financial expenses -6,325,233.01 -3,595,065.02 75.94%
increased.
The profits achieved
Income tax expenses 35,738,015.00 106,085,924.10 -66.31%
decreased.
The capital inflows
from sale of projects
Net cash flows from
-189,887,490.37 126,636,956.08 -249.95% decreased while the
operating activities
project inputs
increased.
The income from
asset disposal
Net cash flows from increased and the
-2,452,735.80 -4,842,566.40 -49.35%
investing activities cash paid to acquire
fixed assets
decreased.
Net cash flows from
financing activities
were all net outflows,
Net cash flows from which increased
-217,614,297.27 -15,461,456.53 1,307.46%
financing activities mainly because the
borrowings secured
decreased and the
dividends were paid.
The capital inflows
from sale of projects
Net increase in cash and the borrowings
-409,900,929.50 106,248,674.18 -485.79%
and cash equivalents secured decreased
and the dividends
were paid.
The real estate
income decreased and
Business tax and
82,288,326.22 283,964,714.90 -71.02% the business tax, VAT,
surtaxes
etc. decreased
accordingly.
Excess losses were
reversed on
Investment gains 6,261,748.54 4,390,123.64 42.63% subsidiary
bankruptcy
liquidation.
The gain on disposal
Non-operating
4,163,164.65 2,510,882.84 65.80% of fixed assets
incomes
increased.
Net profit attributable The real estate
112,074,537.49 353,600,992.81 -68.30%
to owners of the income decreased.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Company
Major changes to the profit structure or sources of the Company during the reporting period:
□ Applicable √ Inapplicable
No major changes occurred to the profit structure or sources of the Company during the reporting period.
Reporting period progress of the future development planning in the disclosed documents of the Company such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Inapplicable
The Company did not mention any future planning for the reporting period in its disclosed documents such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of any previously disclosed business plan in the reporting period:
The previously disclosed business plans went on well.
III. Breakdown of main business
Unit: RMB Yuan
Increase/decrea Increase/decrea
Increase/decrea
se of operating se of gross
se of operating
Operating Operating Gross profit revenues over profit rate over
costs over the
revenues costs rate (%) the same the same
same period of
period of last period of last
last year (%)
year (%) year (%)
Classified by industry:
262,277,463.0
Real estate 58,246,774.57 77.79% -77.02% -85.73% 13.55%
0
Property
168,987,251.2 136,068,543.5
management 19.48% 13.22% 19.11% -3.98%
4 0
and leasing
Transportation 29,464,491.16 13,058,445.60 55.68% 2.23% 4.55% -0.99%
Catering
10,597,322.84 9,093,665.24 14.19% 9.09% 11.85% -2.11%
service
Other 4,595,693.01 4,431,876.35 3.56% 8.88% -8.65% 18.51%
Classified by product:
262,277,463.0
Real estate 58,246,774.57 77.79% -77.02% -85.73% 13.55%
0
Property
168,987,251.2 136,068,543.5
management 19.48% 13.22% 19.11% -3.98%
4 0
and leasing
Transportation 29,464,491.16 13,058,445.60 55.68% 2.23% 4.55% -0.99%
Catering
10,597,322.84 9,093,665.24 14.19% 9.09% 11.85% -2.11%
service
Other 4,595,693.01 4,431,876.35 3.56% 8.88% -8.65% 18.51%
Classified by region:
405,623,875.8 156,710,065.0
Shenzhen 61.37% -67.32% -67.10% -0.26%
5 1
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other regions 70,298,345.40 64,189,240.25 8.69% -23.64% -10.14% -13.72%
IV. Core competitiveness analysis
Currently, our SZPRDQianhai Bay Garden project in Qianhai, Shenzhen and SZPRDJinling
Holiday Apartment Buildings project in the Huanggang Port area have officially started
construction in this Mar., which are going on well. These two projects have great potential for good
benefits due to their ideal locations and low cost of land. The SZPRDBanshanyujing (Xuzhou)
project and the SZPRDHupanyujing (Yangzhou) are ready for presale. And the
SZPRDSonghulangyuan (Dongguan) project ideally located in the Songshanhu area of Dongguan
is in foundation construction. All our projects are proceeding smoothly as scheduled, which lays a
solid foundation for our excellent operating performance in the future.
V. Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
□ Applicable √ Inapplicable
There was no any investment in external parties of the reporting period.
(2) Equity-holdings in financial enterprises
□ Applicable √ Inapplicable
There was no any equity-holding in financial enterprises of the reporting period.
(3) Securities investments
√Applicable □Inapplicable
Number Number
Shareho Shareho Gain/los
Initial of of Closing
Variety lding lding s for
Code of Name of investmen shares shares book
of percenta percenta reportin Account Source
securitie securitie t cost held at held at value
securitie ge at ge at g period ing title of stock
s s (RMB period-b period-e (RMB
s period-b period-e (RMB
Yuan) egin nd Yuan)
egin nd Yuan)
(share) (share)
Other securities
investments held at the 0.00 0 -- 0 -- 0.00 0.00 -- --
period-end
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Disclosure date of the
board announcement on
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
approval of the securities
investment
Disclosure date of the
general meeting
announcement on approval
of the securities investment
(if any)
Explain equity-holdings in other listed companies
√ Applicable □ Inapplicable
The
Company’s Change of
Initial shareholdin Gain/loss for owner’s equity
Closing book Accountin Source of
Stock code Stock abbr. investment g reporting in the
value g title stock
amount percentage period reporting
in the period
investee
000509 HS Holding 2,962,500.00 0.10% 802,199.55 0.00 0.00 Purchasing
Long-term legal person
equity shares
investment directionall
y
Total 2,962,500.00 - 802,199.55 0.00 0.00
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
□ Applicable √ Inapplicable
There was no wealth management entrustment of the Company in the reporting period.
(2) Derivative investments
□ Applicable √ Inapplicable
There was no derivative investment of the Company in the reporting period.
(3) Entrustment loans
□ Applicable √ Inapplicable
There was no entrustment loan of the Company in the reporting period.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
3. Use of raised funds
(1) Overview of the use of raised funds
□ Applicable √ Inapplicable
(2) Projects promised to be invested with raised funds
□ Applicable √ Inapplicable
(3) Change of projects invested with raised funds
□ Applicable √ Inapplicable
There was no change of project invested with raised funds of the Company in the reporting period.
(4) Projects invested with raised funds
Overview of the project Disclosure date Index for the disclosed information
4. Analysis to main subsidiaries and stock-participating companies
√ Applicable □ Inapplicable
Main subsidiaries and stock-participating companies:
Unit: RMB Yuan
Main
Company Company Registere Total Operating Operatin
Industry products/s Net assets Net profit
name variety d capital assets revenues g profit
ervices
Shenzhen
Huangche
Real Real 30,000,00 1,728,557 626,247,3 273,529,2 123,492, 93,252,617.
ng Real Subsidiary
estate estate 0.00 ,671.44 75.98 29.61 783.03 57
Estate
Co., Ltd.
Shenzhen
Guomao
Property
Property 20,000,00 207,257,6 58,527,65 141,003,0 7,619,90 5,547,727.9
Subsidiary Property managem
Managem 0.00 39.12 6.72 22.10 3.62 8
ent
ent Co.,
Ltd.
Shenzhen
Guomao
Taxi 29,850,00 503,293,6 207,292,4 30,583,85 7,313,15 5,435,339.8
Vehicle Subsidiary Services
operation 0.00 59.92 42.63 9.53 0.63 8
Industry
Co., Ltd.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
5. Significant projects of investments with non-raised funds
√ Applicable □ Inapplicable
Unit: RMB Ten Thousand Yuan
Cumulative actual
Total planned Input for the
Project name input as at the Project progress Project earnings
investment reporting period
period-end
SZPRD-Banshan
yujing (first and 840,000,000 60,951,106.84 502,050,184.64 60.00% -
second phases)
SZPRD-Songhula
878,034,700 32,300,000 317,240,000 36.00% -
ngyuan
SZPRD-Hupanyu
jing (first and 1,200,000,000 56,190,000 733,700,000 61.00% -
second phases)
SZPRD-Qianhai
790,000,000 22,210,000 295,990,000 37.00% -
Bay
SZPRD-Jinling
1,289,010,000 17,580,000 84,400,000 7.00% -
Holiday
Total
Total 4,997,044,700 189,231,106.84 1,933,380,184.64 -- --
VI. Predict the operating results of Jan.-Sept. 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin
to the end of the next reporting period according to prediction, as well as explanations on the reasons
□ Applicable √ Inapplicable
VII. Explanation by the Board of Directors and the Supervisory Committee about the
“non-standard audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
VIII. Explanation by the Board of Directors about the “non-standard audit report” of last
year
□ Applicable √ Inapplicable
IX. Implementation of profit allocation during the reporting period
Profit allocation plan implemented during the reporting period, especially execution and adjustment of the cash
dividend plan and the plan for turning capital reserve into share capital
√ Applicable □ Inapplicable
The proposal on Dividends Payout of Y2013 of the Company: based on the total shares of 595,979,092 of RMB
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2.5 for every 10 shares in cash (tax included). The proposal had reviewed and approved by the Y2013 Annual
General Meeting held on 22 Apr. 2014 and had completed the execution on 20 Jun. 2014.
Special explanation of the cash dividend policy
Whether conformed with the regulations of the Articles
of association or the requirements of the resolutions of Yes
the shareholders’ meeting:
Whether the dividend standard and the proportion were
Yes
definite and clear:
Whether the relevant decision-making process and the
Yes
system were complete:
Whether the independent director acted dutifully and
Yes
exerted the proper function:
Whether the medium and small shareholders had the
chances to fully express their suggestions and appeals, Yes
of which their legal interest had gained fully protection:
Whether the conditions and the process met the
regulations and was transparent of the adjustment or Yes
altered of the cash dividend policy:
X. Preplan for profit distribution and turning capital reserve into share capital in the
reporting period
□ Applicable √ Inapplicable
The Company planed not to distribute the cash dividends and bonus shares as well as not to turn reserve funds into
share capital of the half year.
XI. Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Inapplicable
Main discussion and
Time of Place of
Way of reception Visitor type Visitor materials provided by
reception reception
the Company
Investor
interaction About the increase of
8 Jan. 2014 platform of Other Individual Investor the shares of the
Shenzhen Stock Company
Exchange
Investor
interaction
3 Feb. 2014 platform of Other Individual Investor About the dividends
Shenzhen Stock
Exchange
Investor About the construction
9 Feb. 2014 Other Individual Investor
interaction of the Dongguan items
17
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
platform of of the Company
Shenzhen Stock
Exchange
Investor
interaction About the sales of the
10 Feb. 2014 platform of Other Individual Investor Xuzhou items of the
Shenzhen Stock Company
Exchange
Investor
interaction About the performance
4 Mar. 2014 platform of Other Individual Investor estimates of the
Shenzhen Stock Company
Exchange
About the reform of the
Telephone
23 Apr. 2014 Telephone Individual Investor state-owned enterprises
communication
in Shenzhen
Telephone About the proposal on
14 May 2014 Telephone Individual Investor
communication dividends
Telephone
20 Jun. 2014 Telephone Individual Investor Capital operation idea
communication
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section V. Significant Events
I. Corporate governance
The actual situation of the Company’s governance was in compliance with the Company Law and the relevant
CSRC requirements.
II. Significant lawsuits or arbitrations
√ Applicable □ Inapplicable
Amount
Whether form
Lawsuit (RMB Ten Results and Sentence Disclosure Disclosure
into estimated Progress
(arbitration) Thousand influence execution date index
liabilities
Yuan)
No. 2014-3
Announce
Had withdrawn
ment and
Progress of the The court and impaired in
see
bankruptcy accepted full amount and
15 Mar. Securities
liquidation of 6,871.2 No the had no
2014 Times, Ta
Hainan bankruptc influence of the
Kung Pao
Company y petition finance of the
and
Company
www.cninf
o.com.
III. Media’s questions
□Applicable √Inapplicable
The Company was not involved with any media’s question of the reporting period.
IV. Bankruptcy or reorganization events
□Applicable √Inapplicable
The Company was not involved with any bankruptcy or reorganization event of the reporting period.
V. Assets transaction events
1. Purchase of assets
□Applicable √Inapplicable
The Company was not involved with any purchase of assets of the reporting period.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Sales of assets
□Applicable √Inapplicable
The Company was not involved with any sale of assets of the reporting period.
3. Business combination
□Applicable √Inapplicable
The Company was not involved with any business combination of the reporting period.
VI. Implementation situation and influence of equity incentive plan of the Company
□Applicable √Inapplicable
The Company was not involved with any implementation situation and influence of equity incentive plan of the
reporting period.
VII. Significant related-party transactions
1. Related-party transaction relevant to routine operation
□Applicable √Inapplicable
The Company was not involved with any related-party transaction relevant to routine operation of the reporting
period.
2. Related-party transactions regarding purchase and sales of assets
□Applicable √Inapplicable
The Company was not involved with any related-party transaction regarding purchase and sales of assets of the
reporting period.
3. Significant related-party transactions with joint investments
□Applicable √Inapplicable
The Company was not involved with any significant related-party transaction with joint investments of the
reporting period.
4. Significant credits and liabilities with related parties
√Applicable □Inapplicable
Was there any non-operating credit or liability with any related party?
√Yes □No
Variety of Non-operati Opening Amount Closing
Related party Relationship Reason
credit or ng capital balance incurred in balance
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
liability occupation (RMB Ten reporting (RMB Ten
or not? Thousand period Thousand
Yuan) (RMB Ten Yuan)
Thousand
Yuan)
Creditor’s
The
Anhui Nanpeng rights
Company Working
Papermaking Co., receivable No 729 10 739
held a 30% funds
Ltd from the
stake in it.
related party
The Creditor’s
Shenzhen Guomao
Company rights
Industry Working
held a receivable No 235 0 235
Development Co., funds
38.33% from the
Ltd.
stake in it. related party
Creditor’s
The
Shenzhen Wufang rights
Company Working
Pottery & Porcelain receivable No 175 0 175
held a 26% funds
Industrial Co., Ltd from the
stake in it.
related party
Under the
same Creditor’s
control of rights
Shenzhen Guest Come-and-g
the parent receivable No 91 0 91
House Co., Ltd. o money
company of from the
the related party
Company
Under the
Shenzhen same Creditor’s
Offering the
Investment control of rights
property
Property the parent receivable No 314 -121 193
managemen
Development Co., company of from the
t services
Ltd. the related party
Company
Creditor’s
Joint
rights
SZPRD Jifa venture of Come-and-g
receivable No 2,355 0 2,355
Warehouse Co., Ltd the o money
from the
Company
related party
Shenzhen Tian’an Creditor’s
Joint
International rights
venture of Come-and-g
Building Property receivable No 411 0 411
the o money
Management Co., from the
Company
Ltd related party
21
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Under the
Shenzhen same Creditor’s
Investment control of rights
Come-and-g
Property the parent receivable No 52 12 64
o money
Development Co., company of from the
Ltd. the related party
Company
Creditor’s
Controlling
Shenzhen rights
shareholder Entrusted
Investment receivable No 24,000 -24,000 0
of the loans
Holdings Co., Ltd. from the
Company
related party
5. Other significant related-party transactions
□Applicable √Inapplicable
The Company was not involved with any other significant related-party transaction of the reporting period.
VIII. Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□Applicable √Inapplicable
The Company was not involved with any occupation of the Company’s funds for non-operating purposes by the
controlling shareholders and its related parties of the reporting period.
IX. Significant contracts and execution
1. Particulars about trusteeship, contract and lease
(1) Status of trust
□Applicable √Inapplicable
The Company was not involved with any trust of the reporting period.
(2) Contract
□Applicable √Inapplicable
The Company was not involved with any contract of the reporting period.
(3) Leasing
□Applicable √Inapplicable
The Company was not involved with any leasing of the reporting period.
22
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Guarantees provided by the Company
√Applicable □Inapplicable
Unit: RMB Ten Thousand Yuan
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Disclosur
e date of
Guarant
relevant Actual
Amount Actual ee for a
announce occurrence Type of Period of Execute
Guaranteed party for guarantee related
ment on date (date of guarantee guarantee d or not
guarantee amount party or
the agreement)
not
guarantee
amount
Shenzhen
23 May
Guomao Vehicle 2,600 11 Jan. 2012 1,040 Pledge 3 years No No
2011
Industry Co., Ltd.
Shenzhen
Properties &
24 Apr. Joint-liabilit
Resources 45,000 20 Jun. 2014 1,137 3 years No No
2013 y guarantee
Development
(Group) Ltd.
Total actual occurred
Total external guarantee line
amount of external
approved during the 0 1,137
guarantee during the
reporting period (A1)
reporting period (A2)
Total external guarantee line Total actual external
that has been approved at the guarantee balance at the
47,600 2,177
end of the reporting period end of the reporting
(A3) period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosur
e date of
Guarant
relevant Actual
Amount Actual ee for a
announce occurrence Type of Period of Execute
Guaranteed party for guarantee related
ment on date (date of guarantee guarantee d or not
guarantee amount party or
the agreement)
not
guarantee
amount
Dongguan
Guomao
Joint-liabilit
Changsheng Real 21 Apr.
44,000 11 Jan. 2013 16,124 y guarantee; 3 years No No
Estate 2012
pledge
Development Co.,
Ltd.
23
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
SZPRD Yangzhou
Real Estate 21 Apr. Joint-liabilit
15,000 27 Jun. 2013 15,000 2 years No No
Development Co., 2012 y guarantee
Ltd.
Shenzhen
23 Apr.
Guomao Vehicle 2,000 14 May 2014 2,000 pledge 1 year No No
2014
Industry Co., Ltd.
Shenzhen
International 23 Apr. Joint-liabilit
28,000 27 Jun. 2014 7,000 1 year No No
Trade Centre Car 2014 y guarantee
Industry Co., Ltd.
Total guarantee line Total actual occurred
approved for the subsidiaries amount of guarantee for
30,000 24,000
during the reporting period the subsidiaries during the
(B1) reporting period (B2)
Total guarantee line that has Total actual guarantee
been approved for the balance for the
89,000 40,124
subsidiaries at the end of the subsidiaries at the end of
reporting period (B3) the reporting period (B4)
Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
Total actual occurred
Total guarantee line
amount of guarantee
approved during the 30,000 25,137
during the reporting
reporting period (A1+B1)
period (A2+B2)
Total guarantee line that has
Total actual guarantee
been approved at the end of
136,600 balance at the end of the 42,301
the reporting period
reporting period (A4+B4)
(A3+B3)
Proportion of total guarantee amount (A4+B4) to the
23.95%
net assets of the Company
Of which:
Amount of guarantee for shareholders, actual
0
controller and related parties (C)
Amount of debt guarantee provided for the guaranteed
party whose asset-liability ratio is not less than 70% 41,164
directly or indirectly (D)
Part of the amount of the total guarantee over 50% of
0
net assets (E)
Total amount of the above three guarantees (C+D+E) 41,164
The Company provided external guarantee of RMB
423,010,000, of which: the Company provided the
Explanation on the outstanding guarantees which may
guarantee for the subsidiaries was of RMB 401,240,000,
assume joint and several liability (if any)
the subsidiaries provided the guaranty for subsidiaries or
the Company was of RMB 21,770,000, and the
24
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Company and subsidiaries had not provided any
guarantee for the companies except for the consolidated
statement. Up to the period-end, the operation of the
subsidiaries was normal, and its loans were in normal
state, of which the risks were in the controllable scope.
Explanation on offering the external guarantee by
Naught
violating the stipulated procedures (if any)
Particulars about guarantees provided in a compound way
(1) Illegal provision of guarantees for external parties
□ Applicable √ Inapplicable
The Company did not illegally provide any guarantee for any external party in the reporting period.
3. Other significant contracts
□ Applicable √ Inapplicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable √ Inapplicable
There was no other significant transaction of the Company in the reporting period.
X. Commitments made by the Company or any shareholder holding over 5% of the
Company’s shares in the reporting period or such commitments carried down into the
reporting period
□ Applicable √ Inapplicable
No such commitments in the reporting period.
XI. Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited?
□ Yes √ No
XII. Punishments and rectifications
□ Applicable √ Inapplicable
No punishments or rectifications in the reporting period.
XIII. Delisting risk due to violation of any law or regulation
□ Applicable √ Inapplicable
No such risk in the reporting period.
25
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
XIV. Other significant events
□ Applicable √ Inapplicable
No other significant event in the reporting period that needs to be explained.
26
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section VI. Change in Shares & Shareholders
I. Change in shares
Unit: Share
Before the change Increase/decrease (+, -) After the change
Capitaliz
Issuance ation of
Proporti Bonus Proporti
Amount of new public Others Subtotal Amount
on shares on
shares reserve
fund
Reasons for changes in shares
□ Applicable √ Inapplicable
Approval of share changes
□ Applicable √ Inapplicable
Transfer of share ownership
□ Applicable √ Inapplicable
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to common
shareholders of the Company and other financial indexes over the last year and the last reporting period
□ Applicable √ Inapplicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to
disclose
□ Applicable √ Inapplicable
Change of the total shares, shareholder structure, asset structure and liability structure
□ Applicable √ Inapplicable
II. Total number of shareholders and their shareholdings
Unit: Share
Total number of preferred share
Total number of common holders who had resumed their
shareholders at the end of the 42,175 voting right at the end of the 0
reporting period reporting period (if any) (see
note 8)
Shareholdings of shareholders holding more than 5% shares or top 10 shareholders
Increase Pledged or frozen shares
Number
Number of /decreas Number
of
shares held at e of of
Name of Nature of Shareholding non-rest
the end of the shares restricte Number of
shareholder shareholder percentage ricted Status of shares
reporting during d shares shares
shares
period the held
held
reportin
27
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
g period
SHENZHEN
CONSTRUCTIO
N State-owned 293,997 29,798,
54.33% 323,796.32
INVESTMENT corporation ,370 954
HOLDINGS
CORPORATION
SHENZHEN
INVESTMENT State-owned 56,582,
9.49% 56,582,573 0
MANAGEMENT corporation 573
CORPORATION
SHENZHEN
GUOMAO
State-owned 1,881,8
PROPERTY 0.32% 1,881,841
corporation 41
MANAGERME
NT CO., LTD.
SHENZHEN
DUTY-FREE Domestic
1,730,3
COMMODITY non-state-owned 0.29% 1,730,300
00
ENTERPRISES corporation
CO., LTD.
1,508,2
Zhang Yaguang Domestic individual 0.26% 1,508,293
93
2,370,1
Xu Yihong Domestic individual 0.40% 2,370,184
84
Customer credit
collateral
securities trading Domestic
1,287,0
account of China non-state-owned 0.22% 1,287,062
62
Merchants corporation
Securities Co.
Ltd.
1,106,1
Long Keyi Domestic individual 0.19% 1,106,100
00
1,427,2
Zhou Kecan Foreign individual 0.24% 1,427,200
00
1,058,4
Wang Xiaoyan Domestic individual 0.18% 1,058,483
83
The first and second principal shareholders of the Company are managed by Shenzhen
Explanation on associated relationship Investment Holding Corporation, the actual controlling shareholder of the Company, and
or/and persons acting in concert among the fourth shareholder are the wholly controlled subsidiary of the Company. Other than
the above-mentioned shareholders: that, it is unknown whether the remaining 7 shareholders are related parties or
acting-in-concert parties.
Particulars about shareholdings of the top ten shareholders holding non-restricted shares
28
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Number of non-restricted shares held at the Type of shares
Name of shareholder
period-end Type Number
SHENZHEN CONSTRUCTION
RMB ordinary
INVESTMENT HOLDINGS 29,798,954 29,798,954
shares
CORPORATION
SHENZHEN GUOMAO PROPERTY RMB ordinary
1,881,841 1,881,841
MANAGERMENT CO., LTD. shares
RMB ordinary
Zhou Kecan 1,427,200 1,427,200
shares
RMB ordinary
Xu Yihong 2,370,184 2,370,184
shares
RMB ordinary
Zhang Yaguang 1,508,293 1,508,293
shares
Domestically
Chen Liying 1,036,051 listed foreign 1,036,051
shares
Customer credit collateral securities
RMB ordinary
trading account of China Merchants 1,287,062 1,287,062
shares
Securities Co. Ltd.
RMB ordinary
Long Keyi 1,106,100 1,106,100
shares
RMB ordinary
Wang Xiaoyan 1,058,483 1,058,483
shares
Customer credit collateral securities
RMB ordinary
trading account of Huatai securities 1,006,275 1,006,275
shares
Co., Ltd.
Explanation on associated relationship
The first principal shareholder of the Company is managed by Shenzhen Investment
or/and persons acting in concert among
Holding Corporation, the actual controlling shareholder of the Company. And the third
the top ten tradable shareholders and
principal shareholder is a wholly-funded subsidiary of the Company. Other than that, it is
between the top ten tradable
unknown whether the remaining 8 shareholders are related parties or acting-in-concert
shareholders and the top ten
parties.
shareholders
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
The controlling shareholder of the Company did not change in the reporting period.
Change of the actual controller in the reporting period
29
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
□ Applicable √ Inapplicable
The actual controller of the Company did not change in the reporting period.
IV. Any shareholding increase plan proposed or implemented by any shareholder or its
act-in-concert party during the reporting period
□ Applicable √ Inapplicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any
shareholding increase plan during the reporting period.
30
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section VII. Preferred Shares
I. Issue and listing of preferred shares during the reporting period
□ Applicable √ Inapplicable
II. Amount of preferred shares and the holding situation of the Company
□ Applicable √ Inapplicable
III. Repurchase or transfer of preferred shares
1. Purchase of preferred shares
□ Applicable √ Inapplicable
2. Transfer of preferred shares
□ Applicable √ Inapplicable
IV. Resume and execution of the voting rights of preferred shares
□ Applicable √ Inapplicable
V. Accounting policy and reasons adopted of preferred shares
□ Applicable √ Inapplicable
31
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section VIII. Directors, Supervisors & Senior Management Staff
I. Change of shareholdings of directors, supervisors and senior management staff
□ Applicable √ Inapplicable
There was no change in the shareholdings of directors, supervisors and senior management staff in the reporting
period. For details, please refer to the 2013 Annual Report.
II. Change of directors, supervisors and senior management staff
□ Applicable √ Inapplicable
There was no change of the directors, supervisors and senior management staff. For details, please refer to the
2013 Annual Report.
32
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section IX. 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 567,270,884.70 977,171,814.20
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable
Accounts receivable 28,838,591.38 22,208,022.21
Accounts paid in advance 55,962,806.45 35,904,799.33
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 11,262,017.00 7,919,365.82
Financial assets purchased
under agreements to resell
Inventories 2,223,340,330.98 2,101,399,879.93
Non-current assets due within 1
year
Other current assets
Total current assets 2,886,674,630.51 3,144,603,881.49
Non-current assets:
Loans by mandate and
33
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
advances granted
Available-for-sale financial
assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 77,130,624.70 78,414,131.22
Investing property 261,209,044.19 273,314,623.03
Fixed assets 69,158,333.34 75,301,015.72
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 103,368,838.55 106,945,090.07
R&D expense
Goodwill
Long-term deferred expenses 2,817,218.51 3,081,383.99
Deferred income tax assets 187,979,484.64 191,592,588.80
Other non-current assets
Total of non-current assets 701,663,543.93 728,648,832.83
Total assets 3,588,338,174.44 3,873,252,714.32
Current liabilities:
Short-term borrowings 140,000,000.00 300,000,000.00
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 235,637,274.77 265,697,047.64
Accounts received in advance 92,322,222.63 141,082,677.48
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
41,470,352.93 50,023,230.98
payable
Tax payable 778,373,369.07 865,513,058.59
Interest payable 502,634.99 934,568.21
Dividend payable
Other accounts payable 111,544,039.76 123,967,110.64
34
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
113,093,221.64 67,009,888.28
within 1 year
Other current liabilities
Total current liabilities 1,512,943,115.79 1,814,227,581.82
Non-current liabilities:
Long-term borrowings 172,613,352.00 116,243,352.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 135,745,681.73 139,138,400.76
Total non-current liabilities 308,359,033.73 255,381,752.76
Total liabilities 1,821,302,149.52 2,069,609,334.58
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
595,979,092.00 595,979,092.00
capital)
Capital reserves 119,951,533.93 120,086,646.43
Less: Treasury stock
Specific reserves
Surplus reserves 121,542,385.81 121,542,385.81
Provisions for general risks
Retained profits 935,351,649.44 972,271,884.95
Foreign exchange difference -6,650,723.32 -7,098,716.51
Total equity attributable to owners
1,766,173,937.86 1,802,781,292.68
of the Company
Minority interests 862,087.06 862,087.06
Total owners’ (or shareholders’)
1,767,036,024.92 1,803,643,379.74
equity
Total liabilities and owners’ (or
3,588,338,174.44 3,873,252,714.32
shareholders’) equity
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
35
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 87,111,664.81 420,568,966.65
Transactional financial assets
Notes receivable
Accounts receivable 779,699.58 1,158,087.49
Accounts paid in advance 24,185,607.40 429,546.00
Interest receivable 631,400.00
Dividend receivable
Other accounts receivable 1,556,783,806.21 1,104,282,291.68
Inventories 348,899,172.57 326,684,862.09
Non-current assets due within 1
year
Other current assets 150,000,000.00
Total current assets 2,017,759,950.57 2,003,755,153.91
Non-current assets:
Available-for-sale financial
assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 309,418,385.68 310,701,892.20
Investing property 171,859,198.54 181,492,088.46
Fixed assets 13,050,270.75 15,709,482.23
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 1,556,785.83 1,643,273.97
Deferred income tax assets
Other non-current assets 130,000,000.00
Total of non-current assets 495,884,640.80 639,546,736.86
Total assets 2,513,644,591.37 2,643,301,890.77
Current liabilities:
Short-term borrowings 240,000,000.00
Transactional financial
36
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
liabilities
Notes payable
Accounts payable 27,412,328.86 28,121,986.86
Accounts received in advance 4,693,836.00 12,801,629.50
Employee’s compensation
9,280,945.87 8,230,148.81
payable
Tax payable 4,508,757.52 2,051,845.65
Interest payable 555,337.31 433,972.60
Dividend payable
Other accounts payable 1,125,668,841.98 1,136,178,056.53
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 1,172,120,047.54 1,427,817,639.95
Non-current liabilities:
Long-term borrowings 271,370,000.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 271,370,000.00
Total liabilities 1,443,490,047.54 1,427,817,639.95
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
595,979,092.00 595,979,092.00
capital)
Capital reserves 94,057,859.68 94,057,859.68
Less: Treasury stock
Specific reserves
Surplus reserves 120,885,575.37 120,885,575.37
Provisions for general risks
Retained profits 259,232,016.78 404,561,723.77
Foreign exchange difference
Total owners’ (or shareholders’)
1,070,154,543.83 1,215,484,250.82
equity
Total liabilities and owners’ (or
2,513,644,591.37 2,643,301,890.77
shareholders’) equity
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
37
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
3. Consolidated income statement
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Total operating revenues 501,367,559.78 1,348,194,107.29
Including: Sales income 501,367,559.78 1,348,194,107.29
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 363,599,623.62 893,486,628.19
Including: Cost of sales 230,835,231.01 553,178,605.80
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
82,288,326.22 283,964,714.90
charges
Selling and distribution
5,167,082.37 7,367,804.79
expenses
Administrative expenses 50,185,597.53 51,339,858.73
Financial expenses -6,325,233.01 -3,595,065.02
Asset impairment loss 1,448,619.50 1,230,708.99
Add: Gain/(loss) from change in
fair value (“-” means loss)
Gain/(loss) from investment
6,261,748.54 4,390,123.64
(“-” means loss)
Including: share of profits in
-1,283,506.52 4,390,123.64
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
144,029,684.70 459,097,602.74
loss)
Add: non-operating income 4,163,164.65 2,510,882.84
Less: non-operating expense 380,296.86 1,921,568.67
Including: loss from non-current 54,757.13 75,632.69
38
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
asset disposal
IV. Total profit (“-” means loss) 147,812,552.49 459,686,916.91
Less: Income tax expense 35,738,015.00 106,085,924.10
V. Net profit (“-” means loss) 112,074,537.49 353,600,992.81
Including: Net profit
achieved by combined parties
before the combinations
Attributable to owners of the
112,074,537.49 353,600,992.81
Company
Minority shareholders’
income
VI. Earnings per share -- --
(I) Basic earnings per share 0.1881 0.5933
(II) Diluted earnings per
0.1881 0.5933
share
VII. Other comprehensive
447,993.19 -704,279.71
incomes
VIII. Total comprehensive
112,522,530.68 352,896,713.10
incomes
Attributable to owners of the
112,522,530.68 352,896,713.10
Company
Attributable to minority
shareholders
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
4. Income statement of the Company
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Total sales 32,117,214.00 25,454,166.48
Less: cost of sales 13,005,498.88 4,623,847.30
Business taxes and surcharges 3,371,843.66 3,908,440.40
Distribution expenses
Administrative expenses 18,969,355.25 19,491,245.37
Financial costs -2,780,553.56 317,053.85
Impairment loss -272,589.07 -22,145,321.63
Add: gain/(loss) from change in
fair value (“-” means loss)
Gain/(loss) from investment (“-”
2,094,893.48 19,329,723.64
means loss)
39
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Including: income form
investment on associates and joint -1,283,506.52 4,390,123.64
ventures
II. Business profit (“-” means
1,918,552.32 38,588,624.83
loss)
Add: non-business income 1,746,513.69 1,572,704.00
Less: non-business expense 2,187.01
Including: loss from non-current
2,187.01
asset disposal
III. Total profit (“-” means loss) 3,665,066.01 40,159,141.82
Less: income tax expense
IV. Net profit (“-” means loss) 3,665,066.01 40,159,141.82
V. Earnings per share -- --
(I) Basic earnings per share 0.0061 0.0674
(II) Diluted earnings per share 0.0061 0.0674
VI. Other comprehensive income
VII. Total comprehensive income 3,665,066.01 40,159,141.82
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
5. Consolidated cash flow statement
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 486,571,481.51 737,191,531.68
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
40
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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
8,771,553.27 17,912,189.23
operating activities
Subtotal of cash inflows from
495,343,034.78 755,103,720.91
operating activities
Cash paid for goods and
290,827,700.91 201,716,265.91
services
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 140,770,571.32 134,835,672.23
Various taxes paid 208,267,051.06 237,091,124.67
Other cash payment relating to
45,365,201.86 54,823,702.02
operating activities
Subtotal of cash outflows from
685,230,525.15 628,466,764.83
operating activities
Net cash flows from operating
-189,887,490.37 126,636,956.08
activities
II. Cash flows from investing
activities:
Cash received from withdrawal
of investments
Cash received from return on
investments
41
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Net cash received from disposal
of fixed assets, intangible assets 1,273,115.00 406,198.00
and other 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
1,273,115.00 406,198.00
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 3,725,850.80 5,248,764.40
long-term 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
3,725,850.80 5,248,764.40
investing activities
Net cash flows from investing
-2,452,735.80 -4,842,566.40
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
251,370,000.00 361,243,352.00
borrowings
Cash received from issuance
of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from
251,370,000.00 361,243,352.00
financing activities
Repayment of borrowings 308,916,666.64 365,883,333.34
Cash paid for interest
expenses and distribution of 159,779,630.63 10,539,475.19
dividends or profit
Including: dividends or profit
42
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
paid by subsidiaries to minority
shareholders
Other cash payments relating
288,000.00 282,000.00
to financing activities
Sub-total of cash outflows from
468,984,297.27 376,704,808.53
financing activities
Net cash flows from financing
-217,614,297.27 -15,461,456.53
activities
IV. Effect of foreign exchange
rate changes on cash and cash 53,593.94 -84,258.97
equivalents
V. Net increase in cash and cash
-409,900,929.50 106,248,674.18
equivalents
Add: Opening balance of
977,171,814.20 797,724,311.37
cash and cash equivalents
VI. Closing balance of cash and
567,270,884.70 903,972,985.55
cash equivalents
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
6. Cash flow statement of the Company
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 27,194,186.50 24,902,565.48
service
Tax refunds received
Other cash received relating to
327,703,905.77 450,266,959.21
operating activities
Subtotal of cash inflows from
354,898,092.27 475,169,524.69
operating activities
Cash paid for goods and
40,238,144.48 1,348,197.67
services
Cash paid to and for employees 11,337,003.08 9,743,795.96
Various taxes paid 3,867,339.21 6,125,642.41
Other cash payment relating to
790,100,547.89 912,265,600.56
operating activities
Subtotal of cash outflows from 845,543,034.66 929,483,236.60
43
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
operating activities
Net cash flows from operating
-490,644,942.39 -454,313,711.91
activities
II. Cash flows from investing
activities:
Cash received from retraction
280,000,000.00 195,000,000.00
of investments
Cash received from return on
4,009,800.00 14,939,600.00
investments
Net cash received from disposal
of fixed assets, intangible assets 4,198.00
and other 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
284,009,800.00 209,943,798.00
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 648,059.00 102,573.00
long-term 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
648,059.00 102,573.00
investing activities
Net cash flows from investing
283,361,741.00 209,841,225.00
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from
271,370,000.00 240,000,000.00
borrowings
Cash received from issuance
of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from
271,370,000.00 240,000,000.00
financing activities
44
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Repayment of borrowings 240,000,000.00
Cash paid for interest
expenses and distribution of 156,942,914.41 1,400,000.00
dividends or profit
Other cash payments relating
208,000.00 282,000.00
to financing activities
Sub-total of cash outflows from
397,150,914.41 1,682,000.00
financing activities
Net cash flows from financing
-125,780,914.41 238,318,000.00
activities
IV. Effect of foreign exchange
rate changes on cash and cash -393,186.04
equivalents
V. Net increase in cash and cash
-333,457,301.84 -6,154,486.91
equivalents
Add: Opening balance of
420,568,966.65 399,641,751.92
cash and cash equivalents
VI. Closing balance of cash and
87,111,664.81 393,487,265.01
cash equivalents
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
7. Consolidated Statement of Changes in Owners’ Equity
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Jan.-Jun. 2014
Unit: RMB Yuan
Jan.-Jun. 2014
Equity attributable to owners of the Company
Paid-u
p
Total
Item capital Less: Specifi Surplu Genera Retain Minority
Capital owners’
(or treasur c s l risk ed Others interests
reserve equity
share y stock reserve reserve reserve profit
capital
)
595,97 120,08 121,54 972,27
I. Balance at the end of the -7,098, 862,087. 1,803,64
9,092. 6,646.4 2,385. 1,884.9
previous year 716.51 06 3,379.74
00 3 81 5
Add: change of
accounting policy
Correction of errors in
45
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
previous periods
Other
595,97 120,08 121,54 972,27
II. Balance at the -7,098, 862,087. 1,803,64
9,092. 6,646.4 2,385. 1,884.9
beginning of the year 716.51 06 3,379.74
00 3 81 5
III. Increase/ decrease in -36,92
-135,1 447,99 -36,607,3
the period (“-” means 0,235.5
12.50 3.19 54.82
decrease) 1
112,07
112,074,5
(I) Net profit 4,537.4
37.49
9
(II) Other 447,99 447,993.
comprehensive incomes 3.19 19
112,07
447,99 112,522,5
Subtotal of (I) and (II) 4,537.4
3.19 30.68
9
(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
-148,9
-148,994,
(IV) Profit distribution 94,773.
773.00
00
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
-148,9
3. Appropriations to -148,994,
94,773.
owners (or shareholders) 773.00
00
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
46
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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
-135,1 -135,112.
(VII) Other
12.50 50
595,97 119,95 121,54 935,35
-6,650, 862,087. 1,767,03
IV. Closing balance 9,092. 1,533.9 2,385. 1,649.4
723.32 06 6,024.92
00 3 81 4
Jan.-Jun. 2013
Unit: RMB Yuan
Jan.-Jun. 2013
Equity attributable to owners of the Company
Paid-u
p
Total
Item capital Less: Specifi Surplu Genera Retain Minority
Capital owners’
(or treasur c s l risk ed Others interests
reserve equity
share y stock reserve reserve reserve profit
capital
)
595,97 102,88 746,09
I. Balance at the end of the 63,783, -5,882, 862,087. 1,503,71
9,092. 2,532. 1,174.8
previous year 019.03 902.45 06 5,002.59
00 15 0
Add: retrospective
adjustment due to business
combination under the
same control
Add: change of
accounting policy
Correction of errors in
previous periods
Other
595,97 102,88 746,09
II. Balance at the 63,783, -5,882, 862,087. 1,503,71
9,092. 2,532. 1,174.8
beginning of the year 019.03 902.45 06 5,002.59
00 15 0
III. Increase/ decrease in 353,60
-704,2 352,896,
the period (“-” means 0,992.8
79.71 713.10
decrease) 1
(I) Net profit 353,60 353,600,
47
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
0,992.8 992.81
1
(II) Other -704,2 -704,279.
comprehensive incomes 79.71 71
353,60
-704,2 352,896,
Subtotal of (I) and (II) 0,992.8
79.71 713.10
1
(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
(V) 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
(VII) Other
595,97 102,88 1,099,6
63,783, -6,587, 862,087. 1,856,611
IV. Closing balance 9,092. 2,532. 92,167.
019.03 182.16 06 ,715.69
00 15 61
48
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
8. Statement of Changes in Owners’ Equity of the Company
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
Jan.-Jun. 2014
Unit: RMB Yuan
Jan.-Jun. 2014
Paid-up
Less: General Total
Item capital Capital Specific Surplus Retained
treasury risk owners’
(or share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 595,979, 94,057,8 120,885, 404,561, 1,215,48
previous year 092.00 59.68 575.37 723.77 4,250.82
Add: change of
accounting policy
Correction of errors in
previous periods
Other
II. Balance at the beginning 595,979, 94,057,8 120,885, 404,561, 1,215,48
of the year 092.00 59.68 575.37 723.77 4,250.82
III. Increase/ decrease in the -145,329, -145,329,
period (“-” means decrease) 706.99 706.99
3,665,06 3,665,06
(I) Net profit
6.01 6.01
(II) Other comprehensive
incomes
3,665,06 3,665,06
Subtotal of (I) and (II)
6.01 6.01
(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
-148,994, -148,994,
(IV) Profit distribution
773.00 773.00
1. Appropriations to
surplus reserves
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Appropriations to
general risk provisions
3. Appropriations to -148,994, -148,994,
owners (or shareholders) 773.00 773.00
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, 94,057,8 120,885, 259,232, 1,070,15
IV. Closing balance
092.00 59.68 575.37 016.78 4,543.83
Jan.-Jun. 2013
Unit: RMB Yuan
Jan.-Jun. 2013
Paid-up
Less: General Total
Item capital Capital Specific Surplus Retained
treasury risk owners’
(or share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 595,979, 37,754,2 102,225, 292,623, 1,028,58
previous year 092.00 32.28 721.71 040.83 2,086.82
Add: change of
accounting policy
Correction of errors in
previous periods
Other
II. Balance at the beginning 595,979, 37,754,2 102,225, 292,623, 1,028,58
of the year 092.00 32.28 721.71 040.83 2,086.82
III. Increase/ decrease in the 40,159,1 40,159,1
period (“-” means decrease) 41.82 41.82
(I) Net profit 40,159,1 40,159,1
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
41.82 41.82
(II) Other comprehensive
incomes
40,159,1 40,159,1
Subtotal of (I) and (II)
41.82 41.82
(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, 37,754,2 102,225, 332,782, 1,068,74
IV. Closing balance
092.00 32.28 721.71 182.65 1,228.64
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
51
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(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 17th session of the 7th board of directors of
the Company on 11 Aug. 2014.
I V . 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
52
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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. Relevant specific accounting policy of disposing the equity step by step till lose the control right
(1) Principle of judgment of “package deal”
If the regulations, conditions and its economic influences of each deal of disposing the equity investment of the
subsidiary met with following one or more kinds of situations, it indicated that the multiple transactions would
consolidate as package deal for accounting treatment: ①these transactions are formatted under the situation of
contemporary or considering of the mutual influences; ②only the entirety of these transactions could achieve a
complete commercial result; ③the happen of one transaction depends on at least the happen of other one
transaction; ④to see independently of one transaction is not economic while to considered with other transactions
are economic.
(2) Accounting treatment methods of “package deal”
If the each transaction of disposing the equity investment of the subsidiaries till lose the control right which
belongs to package deal, each transaction would be executed accounting treatment as a transaction of disposing
54
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
the subsidiaries that lose the control right; however, before losing the control right, for the balance between each
disposal of the remuneration and the corresponding shares of net assets of investing the subsidiary, would be
confirmed as other comprehensive benefits in the consolidate financial statement and would be transferred into the
current gains and losses of losing the control right when losing it. If not belongs to the package deal, before losing
the control right, or when losing it, should execute the accounting treatment according to the aforesaid situation of
not losing the control right to dispose party equity investment of the subsidiaries as well as according to the
accounting policy of losing the control right of the original subsidiaries.
If the regulations, conditions and its economic influences of each deal of disposing the equity investment of the
subsidiary met with following one or more kinds of situations, it indicated that the multiple transactions would
consolidate as package deal for accounting treatment: ①these transactions are formatted under the situation of
contemporary or considering of the mutual influences; ②only the entirety of these transactions could achieve a
complete commercial result; ③the happen of one transaction depends on at least the happen of other one
transaction; ④to see independently of one transaction is not economic while to considered with other transactions
are economic.
Execute the accounting treatment of the several financial statements of disposing the equity step by step till lose
the control right according to the accounting policy of disposing the long-term equity investment.
(3) Accounting treatment methods of non “package deal”
If not belongs to the package deal, before losing the control right, or when losing it, should execute the accounting
treatment according to the aforesaid situation of not losing the control right to dispose party equity investment of
the subsidiaries as well as according to the accounting policy of losing the control right of the original
subsidiaries.
7. 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
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 intra-group 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, and included the consolidate cash flow from the period-begin to the period-end of the
subsidiary into the consolidate cash flow 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 and included the consolidate cash flow from the
purchasing date to the period-end of the subsidiary into the consolidate cash flow 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.
When losing the control right of the original subsidiary owing to the disposing of party equity investment or other
reasons, for the remaining equity investment after the disposing, should be remeasured according to the fair value
of the date of losing the control right. The amount of the sum between the consideration of disposing the equity
and the fair value of the remaining equity that minus the balance between the shares of net assets that gained from
the original subsidiaries by continuously calculation according the original shareholding ratio since the purchasing
date should accrued into the current investment benefits of losing the control right. The other comprehensive
benefits related to the equity investment of the original subsidiaries should be transferred into the current
investment benefits when losing the control right.
The balance between the newly gained long-term equity investment owning to the purchasing of the minority
equities and the net identifiable assets enjoyed from the subsidiaries according to the newly increased
shareholding ratio, and the balance between the dispose of remuneration which gained from the partly depose of
the equity investment of the subsidiaries under the situation of not losing the control right and the corresponding
shares of net assets from the subsidiaries when disposing the long-term equity investment, should both adjust the
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
share premium of the capital surplus of the consolidate balance sheet. If the share premium of the capital surplus
is not sufficient for adjustment, retained earning is adjusted respectively.
(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.
Inapplicable
8. 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.
9. 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.
10. 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.
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The Company based on the reasons such as risks management, investment strategies and objective of holding the
financial assets, 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
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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
If the whole or partly of the current obligation of the financial liabilities of the Company is relieved, should
derecognize the financial liabilities or partly of it. The Company signs an agreement with the creditors is of the
method by undertaking the new financial liabilities to replace the current financial liabilities. if the new financial
liabilities are different from the current one on the essence of contract terms, should derecognize the current
financial liabilities and recognize the new one at the same time.
If the whole or partly of the financial liabilities had derecognized, should derecognize balance between partly of
the book value and the paid consideration (including the turned out non-cash assets or the new financial liabilities)
and accrued into the current gains and losses.
(5) Recognition method for fair value of financial assets and financial liabilities
① If there is an active market for the financial instrument, the fair value is quoted prices in the active market. The
offer of the active market refers to the prices that are liable to receive from the exchange, broker’s agency,
industry association and pricing service institution, etc, which represent the prices of the market dealing that
actually occurs in the fair dealing.
② If the market for a financial instrument is not active, the Company establishes fair value by using a proper
valuation technique on the basis of conservatism principle. The result by adopting the valuation technique reflect
the transaction value possible be adopted in the fair dealing on the valuation date. The valuation technique
includes the prices using in the recently market dealing between the parties which had referred to and knew of the
situation and decided to trade voluntary, the current fair value referred to the same other financial instrument in
essence, the discount cash flow method and options pricing model etc.
(6) Withdrawal of impairment provision for financial assets (excluding accounts receivable)
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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
The Company takes the individual investment of impairment test for available-for-sale financial assets. On the
balance sheet date, it could judge whether the fair value of available-for-sale financial assets are seriously or
non-temporary decline: if the decline of the fair value of the individual available-for-sale financial assets exceeds
50% of the cost, or had continuously declined for over 12 months, should be recognized the available-for-sale
financial assets had decreased and should recognized the impairment losses according to the impairment provision
for the balance between the cost and the fair value. The cost at the period-end of available-for-sale financial assets
is the amortized cost which is initially measured according to the investment cost when receiving and is calculated
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by the weighted average method when selling.
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.
Each affirmation standard of each financial assets impairment available-for-sale
(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
A. No available financial resources continuously providing the funds support for the financial assets to make them
hold to maturity;
B. It’s hard for the Company to hold the financial assets to maturity due to the restriction of laws and
administrative regulations;
C. Other situations showing that the Company has not the ability to hold the financial assets with fixed term to
maturity.
11. 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
Amount of individual receivable is greater than
bad debts of the individually significant accounts
RMB 2 millions (and including 2 millions)
receivable
On balance sheet day, the impairment test is carried
on individually for the individually significant
receivables; if it is impaired after the impairment
Method of individual provision for bad debts of the
test, the Company provides provision for
individually significant accounts receivable
impairment loss for the amount which is measured
as the difference between the asset's carrying
amount and the present value of estimated future
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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
Name of group bad debt provision on Recognition basis of group
the group basis
Receivables among the Company and its subsidiaries
Group 1 Other method within the 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
Group 2 Aging analysis method bad-debt provisions ratio 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 Withdrawal proportion for other accounts
Age
accounts receivable (%) receivable (%)
Within 1 year (including 1
3.00% 3.00%
year)
1-2 years 10.00% 10.00%
2-3 years 30.00% 30.00%
3-4 years 50.00% 50.00%
4-5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
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.
Withdrawal method for bad debt The impairment test is carries out individually, the Company recognizes
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provision 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, and withdraws relevant bad debts provision.
12. 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.
Reorganization of inventory: the Company confirms the inventory when meeting the following conditions at the
same time: ① the economic benefits related to the inventory possibility would flow into the enterprise; ② the
cost of the inventory could be reliably calculated.
(2) Pricing method for outgoing inventories
Pricing 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
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
Inventory system for inventories: Perpetual inventory system
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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
The amortization of the low-value consumption goods are by one-off amortization method.
Packing articles
Amortization method:
Inapplicable
13. Long-term equity investment
(1) Recognition of initial investment cost
The Company initially measures long-term equity investments under two conditions:
①For 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, 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
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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, and 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.
① For 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.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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.
③ 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 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.
④ On 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
A 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.
A 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.
14. Investment properties
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(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.
15. 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.
A 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.
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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
Subsequent expenditure related to the fixed assets should accrued into the cost of fixed assets if met with the
stipulated reorganization conditions of fixed assets; if not, should accrued directly into the current gains and losses
when occurred.
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:
Expected net salvage
Category of fixed assets Useful life (Y) Annual deprecation
value
Housing and building 25 10.00% 4.5%
Machinery equipments 10 5.00% 9.5%
Electronic equipments 5 5.00% 19%
Transportation vehicle 5 5.00% 19%
Other equipments 5 5.00% 19%
Decoration of 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 useful life of the housing and building of the Company is 20 to 25 five years, with the expected net salvage
value of 5% to 10% and the annual depreciation ratio of 3.8% to 4.5%.
16. Construction in progress
(1) Categories of construction in progress
The construction in progress of the Company includes the construction work, installation work, equipment under
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installment, deferred cost and individual engineering etc. The valuation of the construction in progress: recognizes
the engineering cost according to the cost actual occurred. The cost of construction in progress also includes the
borrowing expenses and exchange gains and losses which should be capitalized.
(2) Standards and time of transferring construction in progress into fixed assets
The Company should transfer the construction in progress into fixes assets when the construction in progress is
ready for their intended use. If the built construction had reached the state ready for intended use but had not
settled the fixed assets of completion settlement, should recognized as fixed assets according to the estimated
value as well withdrew and depreciated; after execute the completion settlement procedure, it should adjust the
original provisional estimate value according to the actual cost but not the original withdrew depreciation amount.
(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.
17. 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
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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.
18. Biological assets
Inapplicable
19. Oil-gas assets
Inapplicable
20. 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.
Recognition of intangible asset:
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;
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.
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(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. Expenditures incurred during the development phase of an internal project shall
be recognized as an intangible asset if, and only if, the Company can demonstrate all of the following:
①The technical feasibility of completing the intangible asset so that it will be available for use or sale;
②Its intention to complete the intangible asset and use or sell it;
③The method that the intangible asset will generate probable future economic benefits. Among other things, the
Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset
itself or, if it is to be used internally, the usefulness of the intangible asset;
④The availability of adequate technical, financial and other resources to complete the development and to use or
sell the intangible asset;
⑤It is able to reliably measure the expenditure attributable to the intangible asset during its development.
21. 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.
22. 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.
23. 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.
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(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.
24. 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
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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.
25. Repurchase of shares of the Company
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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.
26. 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 lessor provides rent-free
period, lessor shall allocate total rental by straight-line method or other reasonable method during entire lease
term without deducting rent-free period. Lessor 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) Recognition basis of revenue from rendering of services
The revenue from rendering of services 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 labor 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
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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.
27. 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.
28. 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.
①Where 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
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measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is
settled.
②At 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.
③The 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.
29. 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
76
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 for those sale and lease-back
Inapplicable
30. 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.
31. Capitalization of assets
Inapplicable
32. Hedging accounting
Inapplicable
33. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the report period?
□Yes √No
(1) Change of accounting policies
77
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Were the main accounting policies changed during the report period?
□Yes √No
There was no change of accounting policies during the reporting period.
(2) Change of accounting estimates
Were the main accounting estimates changed during the report period?
□Yes √No
There was no change of accounting estimates during the reporting period.
34. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the report period?
□Yes √No
There was no any correction of previous accounting error of the reporting period.
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the report period?
□Yes √No
There was no any retrospective restatement method of the reporting period.
(2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the report period?
□Yes √No
There was no any prospective application method of the reporting period.
35. 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.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 16.5%、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
Land value appreciation tax
real property tax rate 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
N/A
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
3. Other explanations
N/A
VI. Business combination and consolidated financial statement
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
Balanc
e of
parent
compa
ny’s
equity
after
deducti
ng the
Actual
differe
amoun The Includ Deduct
Other The nce
t of proport ed in ible
Regist Busine Regist Busine essenti proport Minori that
Subsid invest ion of consoli minorit
Type ered ss ered ss al ion of ty loss of
iaries ments holdin dated y
place nature capital scope invest voting interest minorit
at the g statem interest
ment rights y
period- shares ent s
interest
end
s
exceed
equity
obtaine
d by
minorit
y
shareh
olders
Develo
pment,
constru
Real
ction, 30,000
Shenzh estate 30000 100.00 100.00
Shenzh operati ,000.0 Yes
en develo 000.00 % %
en Wholl on and 0
pment
Huang y-own manag
cheng ed ement
Real subsidi of
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Estate ary comme
Co., rcial
Ltd. service
faciliti
es
relevan
t to
Huang
gang
port
Land
develo
pment,
Shenzh real
en estate
Propert Wholl manag
Real
y and y-own 30,950 ement; 30,950
Shenzh estate 100.00 100.00
Real ed ,000.0 constru ,000.0 No
en develo % %
Estate subsidi 0 ction 0
pment
Develo ary supervi
pment sion;
Co., propert
Ltd. y
manag
ement
Develo
pment
and
sale of
PRD real
Group estate,
Xuzho Wholl constru
Real
u y-own 50,000 ction 50,000
Xuzho estate 100.00 100.00
Dapen ed ,000.0 manag ,000.0 Yes
u develo % %
g Real subsidi 0 ement, 0
pment
Estate ary lease
Develo of
pment propert
Co., ies,
Ltd comm
odity
sales
Dongg Dongg Real 20,000 Develo 20,000 100.00 100.00
Yes
uan uan estate ,000.0 pment ,000.0 % %
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Guoma develo 0 and 0
o Wholl pment sale of
Chang y-own real
sheng ed estate,
Real subsidi lease
Estate ary of
Develo propert
pment ies
Co.,
Ltd.
Develo
pment
and
sale of
PRD real
Yangz estate,
hou Wholl constru
Real y-own ction
Estate ed Real manag
Develo subsidi estate 50,000 ement, 50,000
Yangz 100.00 100.00
pment ary develo ,000.0 purcha ,000.0 Yes
hou % %
Co., pment 0 se of 0
Ltd. materi
als
Shenzh
en
GUO
Wholl Propert
MAO Propert
y-own 20,000 y rent 20,000
Propert Shenzh y 100.00 100.00
ed ,000.0 and ,000.0 Yes
y en manag % %
subsidi 0 manag 0
Manag ement
ary ement
ement
Co.,
Ltd.
Shenzh Propert
en y
Huang manag
Wholl
cheng Propert ement;
y-own
Real Shenzh y 5,000, court 5,000, 100.00 100.00
ed Yes
Estate en manag 000.00 viresce 000.00 % %
subsidi
Manag ement nce
ary
ement and
Co., cleansi
Ltd. ng
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
service
s
Propert
y
manag
Shand
ement;
ong
housek
Shenzh
eeping
en
Wholl service
GUO Propert
y-own s,
MAO y 5,000, 5,000, 100.00 100.00
ed Jinan propert Yes
Propert manag 000.00 000.00 % %
subsidi y sales
y ement
ary and
Manag
agency
ement
and
Co.,
caterin
Ltd.
g
service
s
Chong
qing
Shenzh
en Propert
Wholl
GUO Chong Propert y
y-own
MAO qing y 5,000, manag 5,000, 100.00 100.00
ed Yes
Propert manag 000.00 ement 000.00 % %
subsidi
y ement and
ary
Manag agency
ement
Co.,
Ltd.
Installi
ng,
reconst
ructing
Chong
Wholl and
qing
y-own Chong repairi
Ao’bo Servic 2,000, 3,500, 100.00 100.00
ed qing ng the Yes
Elevat e 000.00 000.00 % %
subsidi elevato
or Co.,
ary r; sales
Ltd.
of
elevato
r and
access
83
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
ories
Shenzh
en Mainte
Tianqu nance
Wholl
e of
y-own
Elevat Shenzh Servic 5,000, elevato 5,000, 100.00 100.00
ed Yes
or en e 000.00 r and 000.00 % %
subsidi
Techno air
ary
logy conditi
Co., on
Ltd.
Domes
Shenzh
tic
en
comme
GUO
rce;
MAO
materi
Propert
Wholl al
y
y-own supply;
Manag Shenzh Servic 1,200, 1,200, 100.00 100.00
ed mainte Yes
ement en e 000.00 000.00 % %
subsidi nance
Engine
ary and
ering
repair
Equip
of
ment
electric
Co.,
equip
Ltd.
ment
Retail
sales
Shenzh
of
en Wholl
Chines
GUO y-own Caterin
Shenzh 2,000, e meal, 2,000, 100.00 100.00
MAO ed g Yes
en 000.00 wester 000.00 % %
Food subsidi service
n-style
Co., ary
food
Ltd.
and
wine
Shenzh Superv
en ision
Wholl
Propert Constr of
y-own
y Shenzh uction 3,000, general 3,000, 100.00 100.00
ed Yes
Constr en Superv 000.00 industr 000.00 % %
subsidi
uction ision ial and
ary
Superv civil
ision constru
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co., ction
Ltd. engine
ering
Providi
ng
Shenzh
propert
en
y
GUO Wholl
inform
MAO y-own
Shenzh Servic 13800 ation, 1,380, 100.00 100.00
Real ed Yes
en e 00.00 propert 000.00 % %
Estate subsidi
y
Tradin ary
agency
g
and
Center
evaluat
ion
Shenzh
en
GUO Wholl Motor
MAO y-own 29,850 transpo 29,850
Shenzh Servic 100.00 100.00
Vehicl ed ,000.0 rt and ,000.0 Yes
en e % %
es subsidi 0 motor 0
Industr ary rent
y Co.,
Ltd.
Shenzh Motor
en transpo
Wholl
GUO rt and
y-own 16,000 16,000
MAO Shenzh Servic motor 100.00 100.00
ed ,000.0 ,000.0 Yes
Motor en e rent % %
subsidi 0 0
Rent
ary
Co.,
Ltd.
Shenzh
en
Tesu
Vehicl Wholl
e y-own Driver
Shenzh Servic 2,000, 2,000, 100.00 100.00
Driver ed trainin Yes
en e 000.00 000.00 % %
Trainin subsidi g
g ary
Center
Co.,
Ltd.
Shenzh Wholl Shenzh Tradin 12,000 Investi 12,000 100.00 100.00 Yes
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
en y-own en g ,000.0 ng in ,000.0 % %
Interna ed 0 comme 0
tional subsidi rcial,
Trade ary materi
Plaza al and
supplyi
ng
compa
ny
Sichua Whole
Wholl
n sale in
y-own
Tianhe Cheng Tradin 8,000, domest 8,000, 100.00 100.00
ed Yes
Industr du g 000.00 ic 000.00 % %
subsidi
y Co., market
ary
Ltd
Zhanji Real
ang estate
Shenzh develo
en Wholl pment
Real
Real y-own and
Zhanji estate 2,530, 2,530, 100.00 100.00
Estate ed sales Yes
ang develo 000.00 000.00 % %
Develo subsidi of
pment
pment ary comm
Co., odity
Ltd. premis
es
Shum Propert
Yip y
Wholl
Propert Real agency
y-own 20,000 20,000 97,766
ies Hong estate and 100.00 100.00
ed ,000.0 ,000.0 ,027.5 Yes
Develo Kong develo invest % %
subsidi 0 0 8
pment pment ment
ary
Co.,
Ltd.
Wayha Propert
Wholl
ng Real y
y-own
Develo Hong estate develo 100.00 100.00
ed 2.00 2.00 Yes
pment Kong develo pment % %
subsidi
Co., pment
ary
Ltd.
Chief Wholl Real Propert
Link y-own Hong estate y 70.00 70.00 862,08
100.00 100.00 Yes
Propert ed Kong develo agency % % 7.06
ies subsidi pment and
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co., ary invest
Ltd. ment
Syndis Wholl Propert
Real
Invest y-own y
Hong estate 100.00 100.00
ment ed 4.00 invest 4.00 Yes
Kong develo % %
Co., subsidi ment
pment
Ltd. ary
Other notes to subsidiaries obtained by establishment and investment:
Syndis Investment Co., Ltd. is the wholly owned subsidiary of Chief Link Properties Co., Ltd.
(2) Subsidiaries obtained by business combination under the same control
Unit: RMB Yuan
Balanc
e of
parent
compa
ny’s
equity
after
deducti
ng the
Actual
differe
amoun The Includ Deduct
Other The nce
t of proport ed in ible
Regist Busine Regist Busine essenti proport Minori that
Subsid invest ion of consoli minorit
Type ered ss ered ss al ion of ty loss of
iaries ments holdin dated y
place nature capital scope invest voting interest minorit
at the g statem interest
ment rights y
period- shares ent s
interest
end
s
exceed
equity
obtaine
d by
minorit
y
shareh
olders
Shenzh Operat
Wholl
en ion of
y 13,800 33,195
Shenxi Shenzh Servic taxi 100.00 100.00
owned ,000.0 ,948.7 Yes
n Taxi en e and % %
subsidi 0 7
Co., propert
ary
Ltd. y
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
manag
ement
Other explanation on subsidiaries obtained by business combination under same control
(3) Subsidiaries obtained by business combination not under the same control
Unit: RMB Yuan
Balanc
e of
parent
compa
ny’s
equity
after
deducti
ng the
Actual
The differe
amoun The Includ Deduct
Other proport nce
t of proport ed in ible
Regist Busine Regist Busine essenti ion of Minori that
Subsid invest ion of consoli minorit
Type ered ss ered ss al holdin ty loss of
iaries ments voting dated y
place nature capital scope invest g interest minorit
at the rights statem interest
ment shares y
period- （%） ent s
（%） interest
end
s
exceed
equity
obtaine
d by
minorit
y
shareh
olders
Other notes to subsidiaries obtained by business combination not under same control:
There are not subsidiaries obtained by business combination not under same control.
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
Name
Company in consolidated statement
Other explanation on special purpose entities or operating entities with control right formed by entrusted operation
or lease:
The Company and controlling shareholders in Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
“SIH”) entered into Asset Replacement Agreement in Sep. 2010, agreeing that the Company replaces Moon Bay
T102-0237 land and 100% equity of Shenzhen Shenxin Taxi Co., Ltd. (hereinafter referred to as “SX Company”)
possessed by SIH with parts of house property owned by the Company and wholly-owned subsidiary Shenzhen
Huangcheng Real Estate Co., Ltd. In order to optimize structure of replaced asset, SIH agrees that assets and
liabilities which are not suitable to be included into the listed company such as non-market commodity house and
non-performing loans and debts owned by SX Company and shown in No. [2010] 103 file of SIH (hereinafter
referred to as “Divestiture Assets of SX Company” or “Divestiture Assets”) will not be incorporated into scope of
replacement and will be divested. In principle, Divestiture Assets shall handle procedures of registration of
transfer and transfer of credit and debt.
SIH, Shenzhen Foreign Economy & Trade Investment Co., Ltd. (hereinafter referred to as FET Company”) and
SX Company signed Contract on Transfer of Divestiture Assets in Jun. 2012. According to agreement of the
Contract, SIH requires SX Company to transfer Divestiture Assets to FET Company for management.
Since there are legal impediments in partial transfer of Divestiture Assets, FET Company and SX Company
concluded and signed Contract on Entrusted Management of Divestiture Assets and Liabilities, promising that
FET Company has entrusted SX Company to liquidate, manage and dispose of Divestiture Assets. The entrusted
period ends on Dec. 31, 2014. SX Company paid for FET Company with 313,000 Yuan income obtained from
assets operation from Jun. 1, 2012 to Dec. 31, 2012. Since then SX Company will pay 626,000 Yuan to FET
Company each year and the remaining incomes gained from assets operation will be possessed by SX Company.
Balance of Divestiture Assets as of Jun. 30, 2014 in consolidated statements is as follows:
Item Amount Item Amount
Other receivables 100,973.73 Other payables 784,501.81
Investing real estate 10,026,550.93 Other non-current 20,530,519.38
liabilities
Fixed assets 10,764,616.63
Long-term 422,879.90
unamortized expenses
Total assets 21,315,021.19 Total liabilities and 21,315,021.19
owners’ equity
Notes: other non-current liabilities shall belong to equity of SIH Divestiture Assets.
Through the above Contract on Entrusted Management of Divestiture Assets and Liabilities, the Company has
actually controlled SX Company’s Divestiture Assets which become a business entity with control rights by
entrusted business mode.
3. Explanations on changes of consolidation scope
Explanation on changes in consolidated scope
√Applicable □Inapplicable
Comparing to last year, this year increased none consolidation unit, because
There was no any consolidation unit increased of the reporting period.
Comparing to last year, this year decreased one consolidation unit, because
On 25 Nov. 2011, the proposal on initiating bankruptcy liquidation of Hainan Xinda Development Corporation
(“Hainan Corporation”) was reviewed and approved on the 4th Session of the 7th Board of Directors. On 27 Feb.
2014, Hainan Haikou Intermediate People’s Court issued ,
deciding to accept the bankruptcy liquidation application of Hainan Corporation. On 7 May 2014, Haikou
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Intermediate People’s Court designated Hainan Weite Law Firm as the bankruptcy administrator of Hainan
Corporation. And the Company became the president of the creditors’ meeting of Hainan Corporation. And the
first creditors’ meeting would be held in Haikou Intermediate People’s Court on 23 Dec. 2014. On 30 Jun. 2014,
the bankruptcy administrator began to take over Hainan Corporation and took charge of the bankruptcy liquidation
of Hainan Corporation. Since that, Hainan Corporation no longer carried out operating activities irrelevant to
liquidation. And the control of the Company over Hainan Corporation ceased. As such, according to the
Accounting Standards for Business Enterprises, the balance sheet of Hainan Corporation as at the end of the
reporting period was not included in the consolidated financial statements of the Company while its income
statement and cash flow statement from the period-begin to the day of the cease of operational control were
consolidated.
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
Hainan Xinda Development Corporation -56,754,899.77 -93,750.90
Other notes to changes in consolidated scope:
There was no entity that newly combined into consolidation scope.
The reason the entities no longer included into consolidation scope of the reporting period, see the above
“Explanations on changes of consolidation scope”.
5. Business combination under same control during the reporting period
Unit: RMB Yuan
Cash flow arising
Judgment basis
The consolidated The consolidated from operating
of business Actual controller
income from net profit from activities
The combined party combination of the same
period-begin to period-begin to between
under the same control
combination date combination date period-begin and
control
combination date
Other notes to business combination under same control:
There was no business combination under same control of 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
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other notes to business combination not under same control:
There was not combination not under the same control of the reporting period.
Whether there was any situation of multiple transactions which realized the enterprise merger step by step and
gained the control right during the reporting period?
□ Applicable √ Inapplicable
7. Subsidiaries reduced by selling equities without control right during the reporting period
Recognition method of gains and
Name of subsidiary Disposal date
losses
Other notes to subsidiaries reduced by selling equities without control right during the reporting period:
There was no subsidiary reduced by selling equities without control right of the reporting period.
Whether there was situation of multiple transactions which disposed the investment of the subsidiaries step by
step till lost the control right during the reporting period?
□ Applicable √ Inapplicable
8. The counter purchases in the reporting period
Calculation method of
goodwill recognized or
Judgment basis of counter Recognition method of
The backdoor party included into current gains
purchase combination costs
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 (1：0.7938)on the balance sheet
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 (1：0.7900) 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
Amount in Amount in
Item Exchange Amount in Exchange
foreign foreign Amount in RMB
rate RMB rate
currency currency
Cash: -- -- 383,361.72 -- -- 263,857.71
RMB -- -- 379,274.29 -- -- 260,719.04
HKD 5,149.20 0.7938 4,087.43 3,992.20 0.7862 3,138.67
Bank deposit: -- -- 564,584,048.51 -- -- 974,606,475.15
RMB -- -- 517,769,436.85 -- -- 928,389,282.62
HKD 58,975,323.32 0.7938 46,814,611.66 58,785,541.24 0.7862 46,217,192.53
Other monetary funds: -- -- 2,303,474.47 -- -- 2,301,481.34
RMB -- -- 2,303,474.47 -- -- 2,301,481.34
Total -- -- 567,270,884.70 -- -- 977,171,814.20
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.
The monetary capital decreased 41.95% over period-begin, mainly due to the payment of the dividends, loans and
taxes.
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
Item Closing balance
in realization
92
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3) Hedging instruments and notes to relevant hedging transaction
Inapplicable
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
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:
Inapplicable
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Notes:
Inapplicable
Notes of bank acceptance bill that already discounted or pledged
Inapplicable
4. Dividends receivable
Unit: RMB Yuan
Whether
Opening Closing Reason for relating
Item Increase Decrease
balance balance undeceived accounts occur
impairment
Of which: -- -- -- -- -- --
Of which: -- -- -- -- -- --
Notes:
93
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Inapplicable
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
(3) Notes to interest receivable
Inapplicable
6. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportio Proportio Proportio
Amount Amount Amount Amount Proportion
n n n
Accounts receivable
with significant single
amount and 107,016,1 107,016,1 107,016, 107,016,17
75.98% 100.00% 79.74% 100.00%
individually 73.89 73.89 173.89 3.89
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
31,206,61 2,558,839 24,700,0 2,492,035.8
Group 2 22.09% 8.20% 18.40% 10.09%
4.91 .40 58.09 8
31,206,61 2,558,839 24,700,0 2,492,035.8
Subtotal of the groups 22.09% 8.20% 18.40% 10.09%
4.91 .40 58.09 8
Accounts receivable
with insignificant
3,058,613 2,867,798 2,495,16 2,495,166.2
single amount and 2.16% 93.76% 1.86% 100.00%
.89 .02 6.27 7
individually
withdrawn bad debt
94
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
provision
141,281,4 112,442,8 134,211, 112,003,37
Total -- -- -- --
02.69 11.31 398.25 6.04
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 and no
executable
Shenzhen Jiyong Properties &
98,611,328.05 98,611,328.05 100.00% property, referring
Resources Development Company
to Note XI.1 of
the “Section X.
Financial Report”
Uncollectible for
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2,836,561.00 100.00%
a long period
Poor operating
Shenzhen Lunan Industry conditions,
2,818,284.84 2,818,284.84 100.00%
Development Co., Ltd. uncollectible for a
long period
Zhou Tangjin (is attribute to the
stripping assets of Shenxin Uncollectible for
2,750,000.00 2,750,000.00 100.00%
Company of Shenzhen Investment a long period
Holding Co., Ltd.)
Total 107,016,173.89 107,016,173.89 -- --
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 Provision for bad Provision for
Proportio Proportio
Amount debts Amount bad debts
n n
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
(including 1 28,958,447.36 92.84% 868,753.43 21,347,415.50 86.43% 640,422.47
year)
Subtotal of
28,958,447.36 92.84% 868,753.43 21,347,415.50 86.43% 640,422.47
within 1 year
1-2 years 524,682.91 1.68% 52,468.29 1,230,175.21 4.98% 123,017.52
2-3 years 82,976.26 0.27% 24,892.88 140,084.33 0.57% 42,025.30
Over 3 years 1,640,508.38 5.26% 1,612,724.80 1,982,383.05 8.03% 1,686,570.60
95
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
3 to 4 years 48,995.12 0.16% 24,497.56 65,917.15 0.27% 32,958.58
4 to 5 years 16,430.12 0.05% 13,144.10 1,314,269.42 5.32% 1,051,415.54
Over 5 years 1,575,083.14 5.05% 1,575,083.14 602,196.48 2.44% 602,196.48
Total 31,206,614.91 -- 2,558,839.40 24,700,058.09 -- 2,492,035.88
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 Provision for bad Withdrawing
Book balance Reason
receivable debt proportion
Zhanjiang Haihu Real With a long age that
700,000.00 700,000.00 100.00%
Estate Co., Ltd was unrecoverable
Shenzhen
Shengfenglu, ITC With a long age that
498,681.65 498,681.65 100.00%
Jewel & Gold Co., was unrecoverable
Ltd.
The owner was
Shenzhen Prince
414,825.74 414,825.74 100.00% missing that was
Restaurant
unrecoverable
Zaishuiyifang Leisure
Long-term arrearage
Club of Shenzhen
365,660.80 292,528.64 80.00% that was
Zaishuiyifang Project
unrecoverable
Co., Ltd.
Long-term arrearage
Nanguo Chain Hotel 264,562.57 211,650.06 80.00% that was
unrecoverable
Huidong Cars Co., With a long age that
250,000.00 250,000.00 100.00%
Ltd. was unrecoverable
Zhanjiang Special With a long age that
135,972.00 135,972.00 100.00%
Cement Plant was unrecoverable
Shenzhen Investment
Long-term arrearage
Property
129,542.40 64,771.20 50.00% that was
Development Co.,
unrecoverable
Ltd.
With a long age that
Other 299,368.73 299,368.73 100.00%
was unrecoverable
Total 3,058,613.89 2,867,798.02 -- --
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
96
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Reversed or collected
Recognition basis of
Content of accounts Reversed or amount of the Reversed or collected
original bad debt
receivable collected reason accrued bad debt amount
provision
provision
Total -- -- 0.00 --
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single
Unit: RMB Yuan
Withdrawing
Content Book balance Bad debt amount Reason
proportion
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
from related party
Name of entity accounts Write-off time Write-off amount Write-off reason
transaction or
receivable
not?
Total -- -- 0.00 -- --
Notes to write off of accounts receivable:
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 Withdrawal
Book balance Book balance Withdrawal amount
amount
Total 0.00 0.00 0.00 0.00
(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-party 98,611,328.05 Over 5 years 70.01%
Development
Company
Huwei Technologies
Non-related-party 10,726,289.38 Within 1 year 7.62%
Co., Ltd.
Shenzhen Tewei Non-related-party 2,836,561.00 Over 5 years 2.01%
97
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Industry Co., Ltd.
Shenzhen Lunan
Industry
Non-related-party 2,818,284.84 Over 5 years 2.00%
Development Co.,
Ltd.
Zhou Tanjin (is
attribute to the
stripping assets of
Non-related-party 2,750,000.00 Over 5 years 1.95%
Shenxin Company of
Shenzhen Investment
Holding Co., Ltd.)
Total -- 117,742,463.27 -- 83.59%
(6) The amounts due from related parties
Unit: RMB Yuan
The relationship with the
Name of entity Amount Proportion
Company
Shenzhen Investment Under the control of the
Property Development parent company of the 1,927,301.60 1.37%
Co., Ltd. Company
Total -- 1,927,301.60 1.37%
(7) Information of accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination
Item Amount of termination
of recognition
Total 0.00 0.00
(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:
Subtotal of assets 0.00
Liabilities:
Subtotal of liabilities 0.00
98
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
7. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad Provision for bad
Category Balance Balance
debts debts
Proporti Proporti Proportio Proporti
Amount Amount Amount Amount
on on n on
Other accounts
receivable that is
individually 141,853,19 141,853,19 100.00 92,308,727. 92,308,727.6 100.00
80.83% 75.56%
significant and 5.96 5.96 % 68 8 %
provisions for bad
debts individually
Other accounts receivable that provisions for bad debts by group
23,915,723. 12,653,706. 19,924,299. 12,004,933.8
Group 2 13.63% 52.91% 16.31% 60.25%
07 07 66 4
23,915,723. 12,653,706. 19,924,299. 12,004,933.8
Subtotal of group 13.63% 52.91% 16.31% 60.25%
07 07 66 4
Other accounts
receivable that is
individually 9,717,262.5 9,717,262.5 100.00 9,925,245.5 100.00
5.54% 8.12% 9,925,245.51
insignificant but 1 1 % 1 %
provisions for bad
debts individually
175,486,18 164,224,16 122,158,27 114,238,907.
Total -- -- -- --
1.54 4.54 2.85 03
Notes for categories of other accounts receivable:
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√ Applicable □Inapplicable
Unit: RMB Yuan
Content of other Withdrawing
Book balance Bad debt amount Reason
accounts receivable proportion
Payment for
discharging of
Gintian Industry guaranty
56,600,000.00 56,600,000.00 100.00%
(Group) Co., Ltd responsibility that
was difficult to be
recollected
Hainan Xinda
Bankruptcy
Development 49,437,140.28 49,437,140.28 100.00%
liquidation
Corporation
99
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Anhui Nanpeng Uncollectible for a
7,393,376.00 7,393,376.00 100.00%
Papermaking Co., Ltd long period
Shenzhen There is no asset to
Shengfenglu, execute the verdict,
6,481,353.60 6,481,353.60 100.00%
GUOMAO Jewel & thus lead to
Gold Co., Ltd uncollectibility
Shanghai Yutong
Uncollectibility for
Real estate 5,676,000.00 5,676,000.00 100.00%
the reason of verdict
development Co., Ltd
Wuliangye Uncollectible for a
5,523,057.70 5,523,057.70 100.00%
Restaurant long period
Hong Kong Yueheng
Uncollectible for a
Development Co., 3,271,837.78 3,271,837.78 100.00%
long period
Ltd
Dameisha Tourism
2,576,445.69 2,576,445.69 100.00% Suspended project
Center
Shenzhen GUOMAO
Industrial The company is
2,351,652.48 2,351,652.48 100.00%
Development Co., insolvent
Ltd
Elevated Train
2,542,332.43 2,542,332.43 100.00% Suspended project
Project
Total 141,853,195.96 141,853,195.96 -- --
In the group, other accounts receivable that provision for bad debts by aging analysis:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Book balance Book balance
Aging Provision for Provision for bad
Propor Propor
Amount bad debts Amount debts
tion tion
Within 1 year
Including:
Within 1 year 29.29 17.69
7,003,796.57 210,113.91 3,525,128.34 105,753.86
(including 1 year) % %
Subtotal of within 1 29.29 17.69
7,003,796.57 210,113.91 3,525,128.34 105,753.86
year % %
24.29
1-2 years 1,568,925.29 6.56% 156,892.53 4,838,702.38 483,870.24
%
17.77
2-3 years 4,249,678.99 1,274,903.70 184,851.23 0.93% 55,455.37
%
46.38 57.10
Over 3 years 11,093,322.22 11,011,795.93 11,375,617.71 11,359,854.37
% %
3 to 4 years 153,239.38 0.64% 76,619.69 30,088.09 0.15% 15,044.05
4 to 5 years 24,533.59 0.10% 19,626.99 3,596.51 0.02% 2,877.21
100
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
45.64 56.93
Over 5 years 10,915,549.25 10,915,549.25 11,341,933.11 11,341,933.11
% %
Total 23,915,723.07 -- 12,653,706.07 19,924,299.66 -- 12,004,933.84
In the group, other accounts receivable that provision for bad debts by balance percentage:
□Applicable√ Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
□Applicable√ Inapplicable
Other closing individually insignificant but provision for bad debts individually accounts receivable:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Content of other Provision for bad Withdrawal
Book balance Reason
accounts receivable debts proportion
Shenzhen Wufang
Pottery & Porcelain 1,747,264.25 1,747,264.25 100.00% Poor operation status
Industrial Co., Ltd
Unrecoverable due to
Liang Weimin 1,357,137.11 1,357,137.11 100.00% retirement of
employee
Shenzhen Guesthouse Unrecoverable
(is attribute to the
stripping assets of
909,960.40 909,960.40 100.00%
Shenxin Company of
Shenzhen Investment
Holding Co., Ltd.)
Chongqing Hua’er Owner unable to
799,163.50 799,163.50 100.00%
Decorations Co., Ltd. repay the loan
Compensation for Unrecoverable due to
Shidai new residence
601,762.21 601,762.21 100.00% disappearance of the
mortgage guarantee
in ABC debtor
Unrecoverable for a
Chen Liangfang 500,000.00 500,000.00 100.00%
long term
Unrecoverable for a
Yan Kunping 496,307.77 496,307.77 100.00%
long term
Fang Bijia 344,134.00 344,134.00 100.00% Unrecoverable
Shenzhen Property Unrecoverable
Architectural Design 335,828.92 335,828.92 100.00%
Company
101
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other 2,625,704.35 2,625,704.35 100.00% Unrecoverable
Total 9,717,262.51 9,717,262.51 -- --
(2) Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
Reason for Basis for Accrued amount
Content of other Amount of reversed
reversed or determination of bad before reversal or
accounts receivable or recovered
recovered debts provision recovery
Other come-and-go Unrecoverable for a
Recovered 15,168.75 15,168.75
accounts long term
Total -- -- 15,168.75 --
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts
receivable:
Unit: RMB Yuan
Content of other Withdrawal
Book balance Amount of bad debts Reason
accounts receivable percentage
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
Nature of other Whether arising
Name of Write off
accounts Write off date Write off reason from related party
company amount
receivable transactions or not
Total -- -- 0.00 -- --
Notes of written-off of other accounts receivable:
There was 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
Withdrawal Withdrawal
Name of entity
Book balance amount of bad Book balance amount of bad
debts debts
Total 0.00 0.00 0.00 0.00
(5) Nature or details of other significant accounts receivable
Unit: RMB Yuan
Nature or details of
Name of entity Amount Proportion of the total
the amount
102
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Gintian Industry (Group) Executed amount of
56,600,000.00 32.25%
Co., Ltd guarantee
Hainan Xinda
49,437,140.28 Come-and-go money 28.17%
Development Corporation
Anhui Nanpeng Operating turnover
7,393,376.00 4.21%
Papermaking Co., Ltd funds
Shenzhen Shengfenglu,
GUOMAO Jewel & Gold 6,481,353.60 Come-and-go money 3.69%
Co., Ltd
Shanghai Yutong Real
estate development Co., 5,676,000.00 Come-and-go money 3.23%
Ltd
Wuliangye Restaurant 5,523,057.70 Come-and-go money 3.15%
Hong Kong Yueheng
3,271,837.78 Come-and-go money 1.86%
Development Co., Ltd
Dameisha Tourism Center 2,576,445.69 Come-and-go money 1.47%
Shenzhen GUOMAO
Industrial Development 2,351,652.48 Come-and-go money 1.34%
Co., Ltd
Elevated Train Project 2,542,332.43 Come-and-go money 1.45%
Total 141,853,195.96 -- 80.82%
Notes
(6) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship with the Proportion of the
Name of entity Amount Aging
Company total
Gintian Industry
Non-related-party 56,600,000.00 Over 5 years 32.25%
(Group) Co., Ltd
Hainan Xinda
Development Subsidiary 49,437,140.28 Over 5 years 28.17%
Corporation
Anhui Nanpeng
Non-related-party 7,393,376.00 Over 5 years 4.21%
Papermaking Co., Ltd
Shenzhen
Shengfenglu,
Non-related-party 6,481,353.60 Over 5 years 3.69%
GUOMAO Jewel &
Gold Co., Ltd
Shanghai Yutong
Real estate Non-related-party 5,676,000.00 Over 5 years 3.23%
development Co., Ltd
Total -- 125,587,869.88 -- 71.55%
103
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(7) Information of the amounts due from related parties
Unit: RMB Yuan
Relationship with the
Name of entity Amount Proportion
Company
Anhui Nanpeng
Associated enterprise 7,393,376.00 4.21%
Papermaking Co., Ltd
Shenzhen GUOMAO
Industrial Development Associated enterprise 2,351,652.48 1.34%
Co., Ltd
Shenzhen Wufang Pottery
& Porcelain Industrial Associated enterprise 1,747,264.25 1.00%
Co., Ltd
With the same controller of
Shenzhen Guesthouse the parent company of the 909,960.40 0.52%
Company
Total -- 12,402,253.13 7.07%
(8) Information of other accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination
Item Amount of termination
of recognition
Total 0.00 0.00
(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: RMB Yuan
Item Period-end
Assets:
Subtotal of assets: 0.00
Liabilities:
Subtotal of liabilities 0.00
(10) Government subsidy recognized according to the accounts receivable during the reporting period
Unit: RMB Yuan
Reason failed to
Expected Expected Expected recover the
Government Closing Closing
Unit charging charging charging expected amount
subsidy item balance aging
time amount basis on the expected
time (if any)
Total -- 0.00 -- -- 0.00 -- --
104
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
8. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1
55,535,795.21 99.24% 30,389,540.42 84.64%
year
1 year to 2
425,971.55 0.76% 978,600.00 2.73%
years
2 years to 3
0.00 0.00% 4,535,619.60 12.63%
years
Over 3 years 1,039.69 0.00% 1,039.31 0.00%
Total 55,962,806.45 -- 35,904,799.33 --
Notes of aging of prepayment:
(2) Information of the top 5 prepayment
Unit: RMB Yuan
Name of entity Relationship Amount Time Reason for unsettled
Social security
charges in building
industry refers to the
payment from the
construction
enterprises which
paid for the staffs of
their social security
charges such as
pension insurance,
Prepayment of social medical insurance,
security charges in Non-related-party 25,549,896.90 1 to 3 years unemployment
building industry insurance,
work-related injury
insurance and
maternity insurance
(including the part
that the individual
paid). It executed the
unified calculation
and withdrawal
standard, uniformly
withdrew from the
105
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
construction entities
and uniformly settled
the construction
enterprises by taking
the engineering
project as unit.
Shenzhen Finance Still handling the
Non-related-party 23,961,137.00 Within 1 year
Committee relevant procedures
According to the
regulations of the
Interim Regulations
on Business Tax
Implementation
Rules provisions to
transferred the land
use right or to sold
the real estate, if
adopted the method
receiving the
accounts in advance
(including receiving
the deposit in
advance), its
Prepayment of taxes Non-related-party 4,585,821.29 Within 1 year
happening date of the
rateability was day
received the
prepayments. The
surplus tax
prepayments of the
Company were the
taxes such as the
operating tax, urban
construction tax and
educational
surcharges that had
not reached the
reorganization
income conditions.
Shenzhen Branch of
Non-related-party 371,700.00 Within 1 year Project uncompleted
SMEC
Shenzhen MGA Air
Conditioning Non-related-party 274,777.32 Within 1 year Project uncompleted
Engineering Co., Ltd.
Total -- 54,743,332.51 -- --
106
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Notes of important companies of prepayment:
(3) Information about amount due from shareholders with more than 5% (including 5%) of the voting
shares of the Company in prepayment
Unit: RMB Yuan
Closing balance Opening balance
The amount of
Name of entity The amount of bad
Book balance bad debt Book balance
debt provision
provision
Total 0.00 0.00 0.00 0.00
(4) Notes of prepayment
Prepayment at the period-end increased 55.86%, mainly due to the prepayment of the land unused cost of the
parcel of Fuchang Phase II.
There was no amount due from shareholders with more than 5% (including 5%) of the voting shares of the voting
shares of the Company in prepayment or the arrears of other related party.
9. Inventory
(1) Category
Unit: RMB Yuan
Closing balance Opening balance
Impairment
Item Impairment of
Book balance of Book value Book balance Book value
inventories
inventories
Raw materials 2,092,781.40 546,531.72 1,546,249.68 1,798,069.73 459,762.21 1,338,307.52
Inventory goods 45,012.80 45,012.80 41,414.10 41,414.10
Turnover material 235,550.20 235,550.20 472,708.60 472,708.60
Products held for
12,544,031.2 389,667,048.3 377,123,017.1
real estate 49,085,272.13 36,541,240.89 12,544,031.24
4 7 3
development
Properties under 1,900,561,993.8 1,900,561,993. 1,378,610,580. 1,378,610,580.
development 2 82 99 99
Completed 284,410,283.5 343,813,851.5 343,813,851.5
284,410,283.59
properties for sale 9 9 9
2,236,430,893.9 13,090,562.9 2,223,340,330. 2,114,403,673. 2,101,399,879.
Total 13,003,793.45
4 6 98 38 93
(2) Provision for falling price of inventories
Unit: RMB Yuan
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Opening book Decease Closing book
Category Increase
balance Reversal Write-off balance
Raw materials 459,762.21 86,769.51 546,531.72
Products to be de
12,544,031.24 12,544,031.24
veloped
Total 13,003,793.45 86,769.51 13,090,562.96
(3) Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for
Item Reasons for reversal provision for impairment of
falling price of inventories
inventories to closing balance
The estimated net
Raw materials realizable value is lower 0.00%
than the book value
The estimated net
Land to be developed realizable value is lower 0.00%
than the book value
Notes of inventory:
Particulars about the capitalization amount of borrowing costs in the closing balance of inventory:
Category of inventory Project Closing balance Increase for the Decrease for the Closing balance
year year
Properties under Banshanyujing 24,281,007.45 2,924,308.50 27,205,315.95
development
Properties under Hupanyujing 2,438,051.09 3,549,640.02 5,987,691.11
development
Properties under Songhulangyuan 7,717,027.20 1,938,890.52 9,655,917.72
development
Properties under Qianhai Bay 2,442,414.05 2,442,414.05
development
Properties under Jinglijiaru 178,045.77 178,045.77
development
Properties completed Xinhua City 298,996.70 34,493.21 264,503.49
Properties completed Shengang No.1 2,111,048.07 1,616,386.12 494,661.95
Properties completed Langqiao Garden 41,763,371.66 5,276,934.49 36,486,437.17
Properties completed Caitianyise 654,477.63 196,925.05 457,552.58
Total 79,263,979.80 11,033,298.86 7,124,738.87 83,172,539.79
10. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Notes of other current assets
Inapplicable
11. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB 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
Inapplicable
(2) Long-term liability investment of available-for-sale financial assets
Unit: RMB Yuan
Accrued
Interest in
Initial accounts
Matured Opening the Closing
Item Category Balance investment receivable
date balance reporting balance
cost or received
period
interest
Notes of long-term liability investment of available-for-sale financial assets
(3) Impairment of available for sale financial assets
Unit: RMB Yuan
Equity instruments Debt instruments
Category Other Total
available for sale available for sale
(4) Changes in impairment of available for sale financial assets during the reporting period
Unit: RMB Yuan
Equity
Debt instruments
Category instruments Other Total
available for sale
available for sale
(5) The fair value falling sharply or continue falling of equity instruments available for sale
Unit: RMB Yuan
Equity Falling Reasons for the withdrawal
Withdrawal
instruments range of the Constant of impairment according to
Cost Fair value impairment
available for fair value falling time the difference between the
amount
sale (itemize) relative to cost and the fair value at the
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
the cost period-end
12. Held-to-maturity investment
(1) Information
Unit: RMB Yuan
Item Closing book balance Opening book balance
Notes of held-to-maturity investment
Inapplicable
(2) Information of held-to-maturity investment sold in the reporting period but was not matured
Unit: RMB Yuan
Percentage of the investment amount before
Item Amount
sales
Notes of undue held-to-maturity investment sold in the reporting period
Inapplicable
13. Long-term accounts receivable
Unit: RMB Yuan
Category Closing balance Opening balance
14. Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Total
Percentage Voting
operation Net profit of
Name of of holding percentage of Total closing Total closing Net closing
revenue of the reporting
investee shares of the the Company assets liabilities assets
the reporting period
Company in investee
period
I. Joint ventures
Shenzhen Jifa
60,960,050.7 58,329,814.5
Warehouse 50.00% 50.00% 2,630,236.15 2,912,701.98 241,659.52
0 5
Co., Ltd
Shenzhen ITC
Tian’an 74,672,678.5 14,931,804.0 59,740,874.4 10,722,373.6 -3,438,935.1
50.00% 50.00%
Properties Co., 1 6 5 4 6
Ltd
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen
Tian’an
International
35,895,584.4 30,309,423.1
Building 50.00% 50.00% 5,586,161.28 9,179,166.25 630,262.63
1 3
Property
Management
Co., Ltd
II. Associated enterprises
Shenzhen ITC
Industrial
38.33% 38.33%
Development
Co., Ltd
Anhui
Nanpeng
30.00% 30.00%
Papermaking
Co., Ltd
Shenzhen
Wufang
Pottery &
26.00% 26.00%
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: RMB Yuan
Share Voting Explana Impairm Withdra Cash
Account Initial Increase
Opening Closing holding percenta tion for ent wn bonus in
Investee ing investm /decreas
balance balance percenta ge in indiffere provisio impairm the
method ent cost e
ge in investee nces n ent reportin
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investee between provisio g period
the n in the
share reportin
holding g period
percenta
ge and
voting
percenta
ge in
investee
Shenzhe
n Jifa
Wareho
Equity 30,645,0 29,044,0 120,829. 29,164,9
use 50.00% 50.00%
method 56.04 77.52 76 07.28
Compan
y
Limited
Shenzhe
n ITC
Tian’an Equity 23,186,1 31,589,9 -1,719,4 29,870,4
50.00% 50.00%
Properti method 24.00 04.82 67.59 37.23
es Co.,
Ltd
Shenzhe
n
Tian’an
Internati
onal Equity 1,500,00 2,477,94 315,131. 2,793,08
50.00% 50.00%
Building method 0.00 9.33 31 0.64
Property
Manage
ment
Co., Ltd
Shenzhe
n
Wufang
Pottery
& Cost 18,983,6 18,983,6 18,983,6 18,983,6
0.00 26.00% 26.00%
Porcelai method 14.14 14.14 14.14 14.14
n
Industri
al Co.,
Ltd
Shenzhe Cost 20,154,8 3,682,97 0.00 3,682,97 38.33% 38.33% 3,682,97
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n ITC method 40.79 2.55 2.55 2.55
Industri
al
Develop
ment
Co., Ltd
Anhui
Nanpen
g Cost 13,824,0 13,824,0 13,824,0 13,824,0
0.00 30.00% 30.00%
Paperma method 00.00 00.00 00.00 00.00
king
Co., Ltd
China
T.H. Cost 2,962,50 2,962,50 2,962,50 2,160,30
0.00 0.10% 0.10%
Co., method 0.00 0.00 0.00 0.45
Ltd.
North
Machine
ry Cost 3,465,00 3,465,00 3,465,00 3,465,00
0.00 12.66% 12.66%
(Group) method 0.00 0.00 0.00 0.00
Co.,
Ltd.
Guangd
ong
Huayue
Cost 8,780,64 8,780,64 8,780,64 8,780,64
Real 0.00 8.47% 8.47%
method 5.20 5.20 5.20 5.20
Estate
Co.,
Ltd.
Shenzhe
n ITC
Petroleu
Cost 8,500,00 8,500,00 8,500,00 100.00 100.00
m 0.00 0.00
method 0.00 0.00 0.00 % %
Compan
y
Limited
Hainan
Xinda
Develop Cost 20,000,0 20,000,0 20,000,0 100.00 100.00 20,000,0 20,000,0
0.00
ment method 00.00 00.00 00.00 % % 00.00 00.00
Corpora
tion
Guangz Cost 6,000,00 6,000,00 6,000,00
0.00 30.00% 30.00% 0.00
hou method 0.00 0.00 0.00
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Lishifen
g
Automo
bile Co.,
Ltd.
Sanya
East
Cost 1,350,00 1,350,00 1,350,00 1,350,00
Travel 0.00 0.28% 0.28%
method 0.00 0.00 0.00 0.00
Co.,
Ltd.
Shensan
Cost 17,695.0 17,695.0 17,695.0 17,695.0
Co., 0.00
method 9 9 9 9
Ltd.
Macao
Huashen
Cost 85,621.3 76,330.1 77,067.9 77,067.9
Enterpri 737.86 10.00% 10.00% 737.86
method 6 0 6 6
se Co.,
Ltd.
Chongqi
ng
Guangfa
Real
Cost 2,598,06 2,316,13 22,389.4 2,338,52 2,338,52 22,389.4
estate 27.25% 27.25%
method 1.52 1.04 6 0.50 0.50 6
develop
ment
Co.,
Ltd.
Saipan Cost 1,935,18 1,725,18 16,676.9 1,741,86 1,741,86 16,676.9
30.00% 30.00%
Project method 4.04 6.18 6 3.14 3.14 6
163,988, 134,796, 18,756,2 153,552, 76,421,6 20,039,8
Total -- -- -- --
342.18 005.97 97.76 303.73 79.03 04.28
(2) Information of the limitation on the capability to transfer capital to investee
Unit: RMB Yuan
Item that with limitation on the
Investment losses unrecognized in
capability to transfer capital to Reason for limitation
current period
investee
Notes of long-term equity investment:
A. In Jan. 2008, Shenzhen GUOMAO Vehicle Industry Co., Ltd. (hereinafter as the “Vehicles 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
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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.
B. 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.
C. As for the changes of long-term equity investment of Hainan Xinda Development Corporation and the
impairment provision, the reasons of changes occurred was because the bankruptcy liquidation of the Company
had took over by the bankruptcy administrator and had not included the balance sheet of the Company into the
consolidation scope.
16. Investment property
(1) Investment property calculated by cost
Unit: RMB Yuan
Item Opening book balance Increase Decrease Closing book balance
I. Total cost 477,113,803.15 104,922.44 4,520,882.13 472,697,843.46
1. Property and
469,143,848.75 104,922.44 4,520,882.13 464,727,889.06
buildings
2. Land use right 7,969,954.40 7,969,954.40
II Accumulated
depreciation and 203,799,180.12 9,301,959.09 1,612,339.94 211,488,799.27
amortization
1. Property and
199,448,207.69 9,047,386.53 1,612,339.94 206,883,254.28
buildings
2. Land use right 4,350,972.43 254,572.56 4,605,544.99
III. Total net book
value of investment 273,314,623.03 -9,197,036.65 2,908,542.19 261,209,044.19
real estate
1. Property and
269,695,641.06 -8,942,464.09 2,908,542.19 257,844,634.78
buildings
2. Land use right 3,618,981.97 -254,572.56 0.00 3,364,409.41
IV. Accumulated
amount of
provision for
273,314,623.03 -9,197,036.65 2,908,542.19 261,209,044.19
impairment of
investment real
estate
1. Property and
269,695,641.06 -8,942,464.09 2,908,542.19 257,844,634.78
buildings
2. Land use right 3,618,981.97 -254,572.56 0.00 3,364,409.41
Unit: RMB Yuan
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
The reporting period
Amount of amortization and depreciation in the reporting
9,217,910.64
period
Withdrawal amount of provision for impairment of investment
0.00
real estate in the reporting period
(2) Investment real estate measured by fair value
Unit: RMB Yuan
Decreased in the
Increased in the reporting period
reporting period
Transferre
Transferre
Opening d to Closing
Item d to
fair value owner-occ Changes in fair value
Purchase Disposal owner-occ
upied fair value
upied
property or
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
17. Fixed assets
(1) Fixed assets details
Unit: RMB Yuan
Opening book Decrease in the Closing book
Item Increase in the reporting period
balance reporting period balance
I. Total original book
207,399,267.98 3,518,058.62 7,356,982.31 203,560,344.29
value
Including: Property and
115,464,014.04 48,556.36 3,227,316.91 112,285,253.49
building
Machineries 0.00 0.00 0.00 0.00
Vehicles 51,945,065.86 2,725,764.00 2,915,128.00 51,755,701.86
Electrical and other
33,882,256.49 743,738.26 1,214,537.40 33,411,457.35
equipments
Decoration of fixed
6,107,931.59 0.00 0.00 6,107,931.59
assets
Increase in the Closing book
Opening book Withdrawal in the Decrease in the
-- reporting balance in
balance reporting period reporting period
period current period
II. Accumulated
132,022,535.10 36,499.70 7,789,948.43 5,522,689.44 134,326,293.79
depreciation
Including: Property and 72,877,326.17 36,499.70 2,185,255.70 1,698,818.66 73,400,262.91
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
building
Machineries 0.00 0.00 0.00 0.00 0.00
Vehicles 27,763,254.01 0.00 4,566,741.34 2,696,301.40 29,633,693.95
Electrical and other
26,862,028.04 0.00 861,296.93 1,127,569.38 26,595,755.59
equipments
Decoration of fixed
4,519,926.88 0.00 176,654.46 0.00 4,696,581.34
assets
Opening book Closing balance
-- --
balance in current period
III. The net book value
75,376,732.88 -- 69,234,050.50
of fixed assets
Including: Property and
42,586,687.87 -- 38,884,990.58
building
Machineries 24,181,811.85 -- 22,197,725.07
Vehicles 7,020,228.45 -- 6,739,984.60
Electrical and other
1,588,004.71 -- 1,411,350.25
equipments
Decoration of fixed
75,717.16 -- 75,717.16
assets
IV. Total impairment
75,717.16 -- 75,717.16
provision
Electrical and other
--
equipments
Decoration of fixed
75,301,015.72 -- 69,158,333.34
assets
IV. Total impairment
42,586,687.87 -- 38,884,990.58
provision
Including: Property and
0.00 -- 0.00
building
Machineries 24,181,811.85 -- 22,122,007.91
Vehicles 6,944,511.29 -- 6,739,984.60
Electrical and other
1,588,004.71 -- 1,411,350.25
equipments
Depreciation amount of this reporting period was RMB 7,789,948.43; RMB 0.00 was transferred into fixed assets
from construction project.
(2) Temporary idle fixed assets
Unit: RMB Yuan
Original book Accrued Impairment
Item Net book value Note
value depreciation provision
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3) Fixed assets leased in from financing lease
Unit: RMB Yuan
Item Original book value Accrued depreciation Net book value
(4) Fixed assets leased out from operation lease
Unit: RMB Yuan
Category Closing book value
(5) Information of hold-for-sale fixed assets at period-end
Unit: RMB Yuan
Estimated disposal
Item Book value Fair value Estimated settle date
cost
(6) Information of fixed assets failed to accomplish certification of property
Item Reason Estimated accomplish date
Notes of fixed assets
The decrease of the houses and constructions was mainly due to the disposal of the reporting period.
The vehicles changed during the reporting period mainly due to the taxi subsidiaries changed the operating
vehicles.
18. Construction in progress
(1) List of construction in progress
Unit: RMB Yuan
Closing balance Opening balance
Item Book Impairment Book Impairment
Book value Book value
balance provision balance provision
(2) Significant changes in construction in progress
Unit: RMB Yuan
Name Transfe
Openin Other Project Project Capitali Includi Capitali Source Closing
Increas rred to
of Budget g decreas input zation ng: zation of
e fixed process balance
project balance e percent of capitali of funding
assets
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
age of interest zation interest
budget of rate
interest (%)
this
period
Notes of significant changes in construction in progress:
(3) Impairment provision of construction in progress
Unit: RMB 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
Inapplicable
19. Engineering materials
Unit: RMB Yuan
Increase in the Decrease in the
Item Opening balance Closing balance
reporting period reporting period
Notes of engineering materials:
20. Clearance of fixed assets
Unit: RMB 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: RMB Yuan
Opening book Closing book
Item Increase Decrease
value balance
I Planting
II. Livestock
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
III. Forestry
IV. Fishery
(2) Measured by fair value
Unit: RMB Yuan
Opening book Closing book
Item Increase Decrease
value balance
I. Planting
II. Livestock
III. Forestry
IV. Fishery
Notes of productive biological assets:
Inapplicable
22. Oil and gas assets
Unit: RMB Yuan
Opening book Closing book
Item Increase Decrease
balance balance
Notes of oil and gas assets:
Inapplicable
23. Intangible assets
(1) Information
Unit: RMB Yuan
Opening book Increase in the Decrease in the Closing book
Item
balance reporting period reporting period balance
I. Total original book
170,884,406.80 0.00 0.00 170,884,406.80
value
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
63,939,316.73 3,576,251.52 0.00 67,515,568.25
amortization
Taxi operating licenses 63,921,056.73 3,576,251.52 0.00 67,497,308.25
Financial software 18,260.00 0.00 0.00 18,260.00
III. Total net book value
106,945,090.07 -3,576,251.52 0.00 103,368,838.55
of intangible assets
Taxi operating licenses 106,945,090.07 -3,576,251.52 0.00 103,368,838.55
Financial software 0.00 0.00 0.00 0.00
IV. Total impairment
provision
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Taxi operating licenses
Financial software 106,945,090.07 -3,576,251.52 0.00 103,368,838.55
Total book value of
106,945,090.07 -3,576,251.52 0.00 103,368,838.55
intangible assets
Taxi operating licenses 0.00 0.00 0.00 0.00
Amortization was of RMB 3,576,251.52 in the reporting period.
(2) Company development expense
Unit: RMB Yuan
Decrease
Recognized into
Item Opening balance Increase Recognized as Closing balance
current
intangible assets
gains/losses
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 shall be disclosed:
Inapplicable
24. Goodwill
Unit: RMB Yuan
Impairment
Name of investee or event Opening Increase in the Decrease in the
Closing balance provision at
that generated goodwill balance reporting period reporting period
period-end
Notes of test method of goodwill impairment and impairment withdrawal method:
Inapplicable
25. Long-term amortization expense
Unit: RMB Yuan
Opening Amortization Closing Reason for
Item Increase Other decrease
balance balance balance other decrease
Reformation
project for
1,643,273.97 86,488.14 1,556,785.83
Tianhong
Subway No. 3
Shenxin
Building
481,679.90 58,800.00 422,879.90
Relevant
Fire and
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other
Reconstructi
on-related
Garages
956,430.12 118,877.34 837,552.78
engineered
Total 3,081,383.99 264,165.48 2,817,218.51 --
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: RMB Yuan
Item Closing balance Opening balance
Deferred income tax assets:
Provision for impairment of assets 1,021,274.23 872,048.94
Deductible losses 181,058,527.06 184,251,177.59
Unrealized internal sales gain and loss 2,101,523.39 763,588.63
Estimated profit calculated at pre-sale
3,771,494.95 5,705,773.64
revenue of property enterprises
Others 26,665.01
Subtotal 187,979,484.64 191,592,588.80
Deferred income tax liabilities
List of unrecognized deferred income tax assets
Unit: RMB Yuan
Item Closing balance Opening balance
Deductible losses of unrecognized deferred income tax assets will due in the following years
Unit: RMB Yuan
Year Closing balance Opening balance Note
List of taxable differences and deductible differences items
Unit: RMB Yuan
Temporary differences amount
Item
As at period-end As at period-begin
Taxable differences items
Deductible differences items
Provision for impairment of assets 4,177,011.80 3,488,195.78
Deductible losses 724,234,108.19 737,004,710.28
Unrealized internal sales gain and loss 8,406,093.50 3,054,354.48
Estimated profit calculated at pre-sale 15,085,979.80 22,823,094.60
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
revenue of property enterprises
Others 106,660.05
Subtotal 752,009,853.34 766,370,355.14
(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: RMB Yuan
Deferred income Deductible or tax Deferred income Deductible or
tax assets or able temporary d tax assets or taxable temporary
liabilities after ifferences after liabilities after differences after
Item
mutual set-off at mutual set-off at mutual set-off at mutual set-off at
the end of the the end of the the opening of the the opening of the
period period period period
Deferred income tax assets 187,979,484.64 752,009,853.34 191,592,588.80 766,370,355.14
Notes of deferred income tax assets and the deferred income tax liabilities
Unit: RMB 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: RMB Yuan
Opening book Decrease Closing book
Item Increase
balance Reversal Written off balance
I. Provision for bad debt 226,242,283.07 50,829,582.88 15,168.75 389,721.35 276,666,975.85
II. Provision for inventory
13,003,793.45 86,769.51 13,090,562.96
falling price
V. Impairment provision
of long-term equity 56,381,874.75 20,039,804.28 76,421,679.03
investment
VII. Impairment
75,717.16 75,717.16
provision of fixed assets
Total 295,703,668.43 70,956,156.67 15,168.75 389,721.35 366,254,935.00
Notes of the list of assets impairment:
In the increase of bad debt provision, of which, the influence of Hainan Company’s bankruptcy liquidation and
exiting the consolidated was RMB 49,344,757.21. Influence of foreign currency translation was RMB 107,806.93;
The decrease of write-off in the reporting period was due to Hainan Company’s bankruptcy liquidation and exiting
the consolidated, in the increase of long-term equity investment impairment provision of which, the influence of
Hainan Company’s bankruptcy liquidation and exiting the consolidated was RMB 20,000,000.00, the influence of
foreign currency translation was RMB 39,804.28. The aforesaid increase and decrease of impairment provision
did not affect the current profits and losses.
28. Other non-current assets
Unit: RMB Yuan
Item Closing amount Opening amount
Note:
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Inapplicable
29. Short-term loan
(1) Category
Unit: RMB Yuan
Category Closing balance Opening balance
Mortgage loan 20,000,000.00 260,000,000.00
Guarantee loan 70,000,000.00
Guarantee loan + pledge loan 40,000,000.00
Mortgage loan + pledge loan 50,000,000.00
Total 140,000,000.00 300,000,000.00
Note:
Table of short-term borrowing：
Interest rate Closing
The loan equity Starting date End date Currency
(%) balance
Industrial Bank Co., Ltd. 2014.06.27 2015.02.19 Renminbi 6.0600% 70,000,000.00
Shenzhen Branch
Bank of Beijing Co., Ltd. 2014.05.14 2015.05.12 Renminbi 7.2000% 20,000,000.00
Shenzhen Branch
Bank of Communications Co., 2014.06.18 2015.06.06 Renminbi 7.3800% 30,000,000.00
Ltd. Yangzhou Branch
Bank of Communications Co., 2014.06.26 2015.06.06 Renminbi 7.3800% 20,000,000.00
Ltd. Yangzhou Branch
Total 140,000,000.00
(2) List of unsettled mature short-term loan
Unit: RMB Yuan
Amount of Reason of failing to Expected repayment
The loan entity Interest rate Purpose
loan repay period
Total 0.00 -- -- -- --
RMB 0.00 had repaid after the balance sheet
Note to short-term loan, including unsettled mature short-term loan renewal, shall explain conditions and new
maturity date
Inapplicable
30. Trading financial liabilities
Unit: RMB Yuan
Item Closing fair value Opening fair value
Note:
Inapplicable
31. Notes payable
Unit: RMB Yuan
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
category Closing amount Opening amount
RMB0.00 of the next accounting period expires
Note:
Inapplicable
32. Accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Accounts payable 235,637,274.77 265,697,047.64
Total 235,637,274.77 265,697,047.64
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of the
Company
Unit: RMB Yuan
Name of entity Closing balance Opening balance
Total 0.00 0.00
(3) Notes of the significant accounts payable aging over one year:
The accounts payable aging over one year mainly was engineering funds and quality guarantee funds etc.
33. Advance from customers
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Advance from customers 92,322,222.63 141,082,677.48
Total 92,322,222.63 141,082,677.48
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the voting shares of
the Company
Unit: RMB Yuan
Entity Closing balance Opening balance
Total 0.00 0.00
(3) Notes of significant advance from customers aging over one year:
The significant advance from customers aged over one year mainly due to the accounts received had not
transferred to income for not reaching the recognition conditions of income.
There was no advance from customers due to the shareholders holding over 5% (including 5%) voting rights of
the Company and other related parties.
The closing amount of the accounts advance from customers decreased by34.56%, over that of period-begin,
which mainly due to accounts advance from customers of the sale of real estate project reaching to the revenue
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recognition conditions and had been transferred to income.
Main advance from customers of the sale of real estate project:
Item Aging Closing balance Estimated completion
time
SZPRD-Shengang No. 1 Within one year 2,935,222.00 Has be completed
SZPRD-Langqiao Garden Within one year 66,417,611.00 Has be completed
SZPRD-Caitianyise Within one year 5,102,066.00 Has be completed
SZPRD-Xinhuacheng Within one year 1,300,000.00 Has be completed
SZPRD- Hupanyujing Within one year 1,550,000.00 2014.12
Total 77,304,899.00
34. Payroll payable
Unit: Yuan
Item Opening book Increase Decrease Closing book
balance balance
I. Salary, bonus,
allowance, 45,296,847.07 105,854,721.64 114,540,522.53 36,611,046.18
subsidy
II. Employee
0.00 4,985,240.36 4,985,240.36 0.00
welfare
III. Social
0.00 15,567,043.02 15,567,043.02 0.00
insurance
Including: 1.
Medical
3,038,886.07 3,038,886.07
insurance
premiums
2. Basic pension
8,963,993.98 8,963,993.98
benefits
3. Annuity 2,261,836.01 2,261,836.01
4. Unemployment
696,511.52 696,511.52
insurance
5. Work-related
296,662.27 296,662.27
injury insurance
6. Maternity
287,749.54 287,749.54
insurance
7. Other social
21,403.63 21,403.63
insurance
IV. Housing fund 1,470,812.19 3,975,747.21 4,050,309.15 1,396,250.25
V. Redemption
for terminations 628,790.80 1,081,294.85 1,710,085.65 0.00
of labor contract
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VI. Others 2,626,780.92 2,741,409.87 1,905,134.29 3,463,056.50
Of which: labor
union budget and
2,626,780.92 2,741,409.87 1,905,134.29 3,463,056.50
employee
education budget
Compensation for
terminating the 50,023,230.98 134,205,456.95 142,758,335.00 41,470,352.93
labor contract
RMB * is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB 3,463,056.50, and the non-monetary benefits are
RMB 0.00, as well as the compensation for terminating the labor contract is RMB 1,710,085.65.
35. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
Value-added tax -59,561.72 169,814.58
Consumption tax 4,719,399.63 6,467,191.84
Business tax 42,809,034.14 118,945,842.15
Corporate income tax 4,468,611.34 638,522.93
Personal income tax 337,853.88 460,533.83
Urban maintenance and construction tax -8,337.87 -8,763.57
Stamp duty 149,302.95 201,566.29
Education surtax 99,002.22 134,440.12
Local education surtax 724,265,108.19 737,004,710.28
Land VAT 979,349.12 981,324.08
Property tax 3,548.81 5,177.08
Dive fee 610,058.38 512,698.98
Other 778,373,369.07 865,513,058.59
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.
36. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Interest payable of short-term borrowing 502,634.99 934,568.21
Total 502,634.99 934,568.21
Note:
Interest payable was the interest of bank loan from 21 Jun.-30 Jun.
37. Dividends payable
Unit: RMB Yuan
Reason for unsettlement over
Name of company Closing balance Opening balance
1 year
Notes:
Inapplicable
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38. Other accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Other accounts payable 111,544,039.76 123,967,110.64
Total 111,544,039.76 123,967,110.64
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting shares of
the Company
Unit: RMB Yuan
Name of entity Closing balance Opening balance
Total 0.00 0.00
(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.
There was no other accounts payable from shareholders with more than 5% (including 5%) of the voting shares of
the Company
(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
Leasing and other deposits 25,411,234.77 Pledge and margin
Shenzhen Property Jifa Warehouse Co., Ltd. 23,545,808.00 Current accounts
Guangzhou Lishifeng Automobile Co., Ltd. 15,344,017.08 Current accounts
Shenzhen ITC Tian’an Properties Co., Ltd 4,114,345.90 Current accounts
Represent the drivers charge miscellaneous fees 2,046,976.78 Third party payment
Total 70,462,382.53
39. Estimated liabilities
Unit: RMB Yuan
Opening book
Item Increase Decrease Closing book balance
balance
Note:
Inapplicable
40. Non-current liabilities due within 1 year
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Long-term loan due within 1 year 110,400,000.00 64,316,666.64
Long-term accounts payable due within 1
2,693,221.64 2,693,221.64
year
Total 113,093,221.64 67,009,888.28
(2) Long-term loan due within 1 year
Long-term loan due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan 10,400,000.00 14,316,666.64
Guarantee +pledged loan 100,000,000.00 50,000,000.00
Total 110,400,000.00 64,316,666.64
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: RMB Yuan
Closing balance Opening balance
Starting Ending Foreign Foreign
Creditor Currency Rate (%) RMB RMB
date date currency currency
balance balance
balance balance
Bank of
Communic
ations Co., 27 Jun. 20,000,000. 20,000,000.
6 Sep. 2014 RMB 7.38% 0.00 0.00
Ltd. 2013 00 00
Yangzhou
Branch
Bank of
Communic
ations Co., 27 Jun. 6 Dec. 30,000,000. 30,000,000.
RMB 7.38% 0.00 0.00
Ltd. 2013 2014 00 00
Yangzhou
Branch
Bank of
Communic
ations Co., 5 Dec. 6 Mar. 50,000,000.
RMB 7.38% 0.00 0.00 0.00
Ltd. 2013 2015 00
Yangzhou
Branch
Shenzhen
Branch of 10 Jan. 10,400,000. 10,650,000.
11Jan. 2012 RMB 6.77% 0.00 0.00
Ping An 2015 00 00
Bank
Shenzhen
Shangbu 25 Dec. 23 Dec. 3,666,666.6
RMB 6.77% 0.00 0.00 0.00
Branch of 2011 2014 4
Ping An
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Bank
110,400,00 64,316,666.
Total -- -- -- -- -- --
0.00 64
Mature loan of long-term loan due within 1 year:
Unit: RMB Yuan
Amount of Annual rate Reason for Estimated
Creditor Overdue date Usage
loan (%) unsettlement settle date
Total 0.00 -- -- -- -- --
RMB 1,800,000.00 was paid back after Balance Sheet Date:
Notes of long-term borrowings due within 1 year:
(3) Bonds payable due within 1 year
Unit: RMB Yuan
Accrued Interest
Opening Closing
Issuance Issuing interest in paid in the Closing
Name Par value Term interest interest
date amount current reporting balance
payable payable
period period
Notes:
Inappplicable
(4) Long-term accounts payable due within 1 year
Unit: RMB Yuan
Accrued Closing
Creditor Term Initial amount Rate (%) Conditions
interest balance
To be
transferred
income from
1,293,221.64 1,293,221.64
renting
operating
license plate
To be
transferred
income from
renting 1,400,000.00 1,400,000.00
Shenzhen ITC
Petroleum Co.,
Ltd
Notes of long-term accounts payable due within 1 year:
41. Other current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Notes of other non-current liabilities:
Inapplicable
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
42. Long-term loan
(1) Category of long-term loan
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan 5,000,000.00
Guarantee + mortgage loan 172,613,352.00 111,243,352.00
Total 172,613,352.00 116,243,352.00
Notes:
(2) The top five long-term loans
Unit: RMB Yuan
Closing balance Opening balance
Starting Ending Foreign Foreign
Creditor Currency Rate (%) RMB RMB
date date currency currency
amount amount
amount amount
Bank of
Communic
ations Co.,
27 Jun. 11 Jan. 100,000,00
Ltd., RMB 6.77% 0.00 0.00 0.00
2014 2016 0.00
Dongguan
DaLang
Branch
Bank of
Communic
ations Co.,
21 Dec. 11 Jan. 50,000,000. 50,000,000.
Ltd., RMB 6.15% 0.00 0.00
2013 2016 00 00
Dongguan
DaLang
Branch
Bank of
Beijing
20 Jun. 19 Jun. 11,370,000.
Co., Ltd. RMB 7.07% 0.00 0.00 0.00
2014 2017 00
Shenzhen
Branch
Bank of
Communic
ations Co.,
28 Jan. 11 Jan. 7,567,803.0 7,567,803.0
Ltd., RMB 6.95% 0.00 0.00
2013 2016 0 0
Dongguan
DaLang
Branch
Bank of 11 Jan. 11 Jan. 2,218,000.0 2,218,000.0
RMB 6.95% 0.00 0.00
Communic 2013 2016 0 0
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ations Co.,
Ltd.,
Dongguan
DaLang
Branch
171,155,80 59,785,803.
Total -- -- -- -- -- --
3.00 00
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:
There was no over due loan in long term loan.
43. Bonds payable
Unit: RMB Yuan
Accrued
Interest
Opening interest in Closing
Issuance Issuing paid 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:
Inapplicable
44. Long-term payable
(1) The top five long-term payable
Unit: RMB Yuan
Accrued Closing Conditions of
Company Term Initial amount Rate (%)
interest balance loan
(2) List of the financing lease payable under the long-term loan
Unit: RMB 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:
Inapplicable
45. Specific payable
Unit: RMB Yuan
Opening Closing
Item Increase Decrease Note
balance balance
Notes of specific payable:
Inapplicable
46. Other non-current liabilities
Unit: RMB Yuan
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Item Closing book balance Opening book balance
Utility specific fund 237,163.45 237,163.45
Housing principle fund 13,193,230.04 12,840,943.08
House warming deposit 7,770,923.22 7,687,512.66
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 27,311,094.28 28,583,685.95
Taxi Deposit 41,030,500.00 40,798,500.00
To be transferred income from renting
9,449,235.87 10,095,846.69
operating license plate
To be transferred income from renting
10,970,004.00 11,670,000.00
Shenzhen ITC Petroleum Co., Ltd
Divestiture interests belongs to Shenzhen
20,530,519.38 21,289,629.66
Investment Holdings
Other 1,233,596.05 1,915,703.83
Total 135,745,681.73 139,138,400.76
Notes of other non-current liabilities
Others mainly are drivers mutual supporting assets received from the drivers of the taxi companies.
Liabilities involving government subsidies
Unit: RMB Yuan
Amount
New subsidy
recorded into Related to
Opening amount in the Other Closing
Item non-operating assets/Related to
balance reporting changes balance
income in the income revenue
period
reporting period
Total 0.00 0.00 0.00 0.00 0.00 --
47. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Capitalizatio Closing
Issuing new
balance Bonus shares n of public Other Subtotal balance
shares
reserves
595,979,092. 595,979,092.
Total shares 0.00 0.00 0.00 0.00 0.00
00 00
Note: if there was capital increase or capital decrease in the reporting period, shall disclose the name of public
accounting firm of perform capital verification and reference number of capital verification for the company
operating less than 3 years, just indicate net assets before establishment. Limited liability company changed into
joint - stock company shall indicate the capital verification when the company establish.
48. Treasury stock
Notes of treasury stock:
Inapplicable
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
49. Special reserves
Notes of treasury stock:
Inapplicable
50. Capital reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium (share
38,450,087.51 38,450,087.51
capital premium)
Other capital reserves 81,636,558.92 0.00 135,112.50 81,501,446.42
Total 120,086,646.43 135,112.50 119,951,533.93
Note: the decrease of other capital reserve was due to the bankruptcy liquidation of Hainan Company, and at the
end of the reporting period was managed by the bankruptcy administrator, not included the company’s closing
balance sheet into the scope of consolidated financial statements.
51. Surplus reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Legal surplus reserves 121,542,385.81 121,542,385.81
Total 121,542,385.81 121,542,385.81
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:
Inapplicable
53. Retained profits
Unit: RMB Yuan
Withdrawal or
Item Amount
distributed proportion
Opening balance of retained profits before
972,271,884.95 --
adjustments
Opening balance of retained profits after
972,271,884.95 --
adjustments
Add: Net profit attributable to owners of
112,074,537.49 --
the Company
Dividend of common stock payable 148,994,773.00
Closing retained profits 935,351,649.44 --
List of adjustment of opening retained profits:
1) RMB* opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB* opening retained profits was affected by changes on accounting policies.
3) RMB* opening retained profits was affected by correction of significant accounting errors.
4) RMB* opening retained profits was affected by changes in combination scope arising from same control.
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
5) RMB* 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: RMB Yuan
Item Reporting period Same period of last year
Sales of main business 475,922,221.25 1,333,146,585.62
Other operating income 25,445,338.53 15,047,521.67
Cost of sales 230,835,231.01 553,178,605.80
(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
Real estate 262,277,463.00 58,246,774.57 1,141,139,395.00 408,042,292.71
Leasing and property
168,987,251.24 136,068,543.50 149,250,082.12 114,239,078.12
management
Transportation 29,464,491.16 13,058,445.60 28,822,397.82 12,489,933.98
Catering Service 10,597,322.84 9,093,665.24 9,713,850.75 8,130,350.67
Other 4,595,693.01 4,431,876.35 4,220,859.93 4,851,695.48
Total 475,922,221.25 220,899,305.26 1,333,146,585.62 547,753,350.96
(3) Main business (Classified by product)
Unit RMB Yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Real estate 262,277,463.00 58,246,774.57 1,141,139,395.00 408,042,292.71
Leasing and property
168,987,251.24 136,068,543.50 149,250,082.12 114,239,078.12
management
Transportation 29,464,491.16 13,058,445.60 28,822,397.82 12,489,933.98
Catering Service 10,597,322.84 9,093,665.24 9,713,850.75 8,130,350.67
Other 4,595,693.01 4,431,876.35 4,220,859.93 4,851,695.48
Total 475,922,221.25 220,899,305.26 1,333,146,585.62 547,753,350.96
(4) Main business (Classified by area)
Unit: RMB Yuan
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Incomes of Shenzhen 405,623,875.85 156,710,065.01 1,241,082,579.82 476,318,473.29
Incomes of other areas 70,298,345.40 64,189,240.25 92,064,005.80 71,434,877.67
Total 475,922,221.25 220,899,305.26 1,333,146,585.62 547,753,350.96
(5) The revenue of sales from the top five customers
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Customer Main business revenue Proportion of total business revenue (%)
Natural person 38,139,765.00 7.61%
Natural person 20,121,678.50 4.01%
Huawei Technologies Co.,
10,786,393.00 2.15%
Ltd.
Natural person 10,783,738.00 2.15%
Natural person 9,481,753.00 1.89%
Total 89,313,327.50 17.81%
Note:
Other industrial revenue was mainly from project supervision, elevator maintenance and auto vehicles repair, etc.
The sales of revenue during the reporting period decreased by 62.81%，mainly because the carry forward of real
estate projects and sales in the reporting period decreased.
55. Revenue from the construction contracts
Unit: RMB Yuan
Recognized
Fixed price Incurred cumulative gross
Contract item Amount Settled amount
contract cumulative costs profit (Losses
presented by “-”)
Recognized
Incurred cumulative gross
Cost plus contract Contract item Amount Settled amount
cumulative costs profit (Losses
presented by “-”)
Notes:
Inapplicable
56. Business tax and surcharges
Unit: RMB Yuan
Same period of last
Item Reporting period Calculation and payment standard
year
Business tax 23,807,812.43 64,916,992.75 3%, 5% of revenue of sales
Urban maintenance and
1,737,875.16 4,612,306.53 1%, 7% of taxable turnover tax
construction tax
Education surtax 610,290.38 1,977,395.11 3% of taxable turnover tax
Local education surtax 405,952.20 1,321,117.83 2% of taxable turnover tax
Four progressive levels with the
tax rate ranging from 30% to
Land VAT 53,937,664.91 209,363,841.12
60% of the added value from
properties transfer.
1.2% of the 70% cost of property
Property tax 1,429,621.49 1,367,005.86
per year
Dike fee 40,861.17 110,227.12 0.01% of revenue of sales
Other 318,248.48 295,828.58
Total 82,288,326.22 283,964,714.90 --
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Note:
The amount of business tax and surcharges during the reporting period increased by 71.02% over that of same
period of last year, mainly due to the revenue from property business transferred in the reporting period decreased,
making significant decrease of business tax and accrued land VAT.
57. Selling expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee compensations 1,282,324.21 1,294,223.92
Business organization office
791,876.36 1,082,071.70
expenses
Sales agency fees, advertising and
2,335,951.60 2,842,382.48
promotional expenses
Other 756,930.20 2,149,126.69
Total 5,167,082.37 7,367,804.79
58. Administration expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee compensations 31,915,384.32 31,162,052.33
Administrative office costs 9,751,776.92 10,768,114.62
Assets amortization and the
2,801,964.58 2,745,202.31
depreciation expenses
Litigation expenses 122,642.00 257,011.60
Taxes 473,711.57 580,826.05
Other 5,120,118.14 5,826,651.82
Total 50,185,597.53 51,339,858.73
59. Financial expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Interest incomes 494,767.87 0.00
Exchange net losses 7,353,385.30 4,176,848.06
Other 194,345.04 32,003.69
Total 339,039.38 549,779.35
Interest incomes -6,325,233.01 -3,595,065.02
60. Gains and losses from changes in fair value
Unit: RMB Yuan
Source Reporting period Same period of last year
Note:
Inapplicable
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
61. Investment income
(1) List of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income
-1,283,506.52 4,390,123.64
accounted by equity method
Other 7,545,255.06
Total 6,261,748.54 4,390,123.64
(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
year
Total 0.00 0.00 --
(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
year
Shenzhen Jifa Warehouse Co.,
120,829.76 244,042.81 Realized profits decreased
Ltd
Shenzhen ITC Tian’an Properties
-1,719,467.59 4,028,152.92 Realized profits decreased
Co., Ltd
Shenzhen Tian’an International
Building Property Management 315,131.31 117,927.91 Realized profits decreased
Co., Ltd
Total -1,283,506.52 4,390,123.64 --
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.
Other investment income was due to the bankruptcy liquidation of Hainan Company, and at the end of the
reporting period was managed by the bankruptcy administrator, not included the company’s closing balance sheet
into the scope of consolidated financial statements and transferred into accumulative excess loss. For details, refer
to the section VI. Business combination and consolidated financial statements note 3 changes in consolidated
scope.
62. Impairment losses
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Bad debts losses 1,361,849.99 1,246,408.49
II. Inventory falling price losses 86,769.51 -15,699.50
Total 1,448,619.50 1,230,708.99
63. Non-operating gains
(1)
Unit: RMB Yuan
Item Reporting period Same period of last year The amount included in
138
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
the current
non-recurring gains and
losses
Total gains from disposal of
1,892,678.92 1,892,678.92
non-current assets
Including：Gains from disposal of
1,892,678.92 1,892,678.92
fixed assets
Other 2,270,485.73 2,510,882.84 2,270,485.73
Total 4,163,164.65 2,510,882.84 4,163,164.65
Note:
Other mainly was the default rent deposit
(2) List of government grants recorded into current profit and loss
Unit: RMB Yuan
Related to Belong to
Same period of last
Item Reporting period assets/Related to non-recurring profit
year
income revenue and loss or not
Total 0.00 0.00 -- --
64. Non-operating expenses
Unit: RMB Yuan
The amount included
Same period of last in the current
Item Reporting period
year non-recurring gains
and losses
Loss on disposal of non-current assets 54,757.13 75,632.69 54,757.13
Including: Loss on disposal of fixed assets 54,757.13 75,632.69 54,757.13
Donation 11,000.00
Litigation compensation 1,856,830.08
Tax fees and penalty 316.10 52,357.76 316.10
Other 325,223.63 -74,251.86 325,223.63
Total 380,296.86 1,921,568.67 380,296.86
Note:
65. Income tax expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Current income tax expense accounted by tax and
47,122,624.89 121,573,694.53
relevant regulations
Adjustment of income tax -11,384,609.89 -15,487,770.43
Total 35,738,015.00 106,085,924.10
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
139
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Basic Earnings Per Share 0.1881 0.5933
Diluted Earnings Per Share 0.1881 0.5933
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 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: RMB Yuan
Item Reporting period Same period of last year
4. Converted amount of foreign currency financial
447,993.19 -704,279.71
statements
Subtotal 447,993.19 -704,279.71
Total 447,993.19 -704,279.71
Note:
140
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
68. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Amount
Interest income 7,353,385.30
Other small receivables 1,418,167.97
Total 8,771,553.27
Note:
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Amount
Paying administration expenses in cash 13,308,519.46
Paying sale expense 6,997,438.99
Paying net water, electricity and fees for property owners 15,276,431.84
Net margins, security deposits collected for other parties 3,246,979.96
Other small receivables 6,535,831.61
Total 45,365,201.86
Note:
(3) Other cash received relevant to investment activities
Unit: RMB Yuan
Item Amount
Note:
Inapplicable
(4) Other cash paid relevant to investment activities
Unit: RMB Yuan
Item Amount
Note:
Inapplicable
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
Item Amount
Note:
Inapplicable
(6) Other financial activities-related cash paid
Unit: RMB Yuan
Item Amount
Borrowing ancillary expenses 288,000.00
Total 288,000.00
Note；
141
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
69. Supplementary information to cash flow statement
(1) Supplementary information to 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 112,074,537.49 353,600,992.81
Add: Provision for assets impairments 1,448,619.50 1,230,708.99
Depreciation of fixed assets, oil-gas assets and
17,007,859.07 16,830,027.62
productive biological assets
Amortization of intangible assets 3,576,251.52 3,576,811.52
Amortization of long-term deferred expense 264,165.48 367,891.68
Losses/gains on disposal of property, intangible
-7,801,119.11 75,632.69
asset and other long-term assets (gains: negative)
Financial cost (income: negative) 494,767.87 282,000.00
Investment loss (gains: negative) 1,283,506.52 -4,390,123.64
Decrease in deferred tax assets (increase:
3,613,104.16 -9,534,583.41
negative)
Increase in deferred tax liabilities (decrease:
-2,739,089.94
negative)
Decrease in inventory (increase: negative) -104,057,436.98 310,776,884.36
Decrease in accounts receivable from operating
-30,031,227.47 32,996,427.95
activities (increase: negative)
Increase in accounts payable from operating
-187,760,518.42 -576,436,624.55
activities (decrease: negative)
Net cash flows generated from operating activities -189,887,490.37 126,636,956.08
2. Significant investing and financing activities
-- --
without involvement of cash receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of Cash 567,270,884.70 903,972,985.55
Less: opening balance of cash 977,171,814.20 797,724,311.37
The net increase in cash and cash equivalents -409,900,929.50 106,248,674.18
(2) Relevant information of acquisition or disposal of subsidiaries and other operation entities in the
reporting period
Unit: RMB 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
142
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Cash 567,270,884.70 977,171,814.20
Including: Cash on hand 383,361.72 289,986.98
Bank deposit on demand 564,584,048.51 898,514,462.09
Other monetary funds on demand 2,303,474.47 5,168,536.48
II. Closing balance of cash and cash equivalents 567,270,884.70 977,171,814.20
Note:
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: RMB Yuan
Revenue of
Net profit in
Total closing Total closing Net closing sales in the
Name the reporting Note
assets liabilities assets reporting
period
period
IX. Related Parties and Related-party Transactions
1. Information of the parent company of the Company
The The The
Legal Organiza
Parent Relations Business Registere Business Registere parent parent ultimate
Represen tion
company hip Type d place nature d Capital company' company' controlli
tative Code
s s voting ng party
143
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
sharehol right (%) of the
ding (%) Compan
y
Shenzhe
n
State-ow
Limited ned
Shenzhen
Controlli liability Managing Assets
Investme Fan
ng company Shenzhen 5600000 Administ 7675664
nt state-owne 63.82% 63.82%
sharehol Mingchun 000 ration 21
Holdings (state-ow
der d assets and
Co., Ltd. ned)
Supervisi
on
Commiss
ion
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 Committee of Shenzhen implemented management for Shenzhen Investment
Holdings Co., Ltd. on behalf of Shenzhen municipal government.
2. Information of subsidiaries of the Company
Percentag Percentag
Legal
Business Registered Business Registered e of e of Organizati
Full name Type representa
type place nature capital Sharehold voting on code
tive
ing (%) right (%)
Shenzhen
Huangchen Limited Property
Controlled 19218483
g Real Liability Shenzhen Li Zipeng developm 30000000 100.00% 100.00%
subsidiary 5
Estate Co., Company ent
Ltd.
Shenzhen Limited Property
Controlled 19217456
Property Liability Shenzhen Li Zipeng developm 30950000 100.00% 100.00%
subsidiary 5
and Real Company ent
144
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Estate
Developm
ent Co.,
Ltd.
PRD
Group
Xuzhou
Dapeng Limited Property
Controlled 55252545
Real Liability Xuzhou Li Zipeng developm 50000000 100.00% 100.00%
subsidiary 4
Estate Company ent
Developm
ent
Co.,Ltd
Dongguan
Guomao
Changshe
Limited Property
ng Real Controlled 56256265
Liability Dongguan Lu Xia developm 20000000 100.00% 100.00%
Estate subsidiary 4
Company ent
Developm
ent Co.,
Ltd.
PRD
Yangzhou
Real Limited Property
Controlled Wang 57384293
Estate Liability Yangzhou developm 50000000 100.00% 100.00%
subsidiary Qiuping 4
Developm Company ent
ent Co.,
Ltd.
Shenzhen
ITC
Limited Property
Property Controlled Wang 19217454
Liability Shenzhen managem 20000000 100.00% 100.00%
Managem subsidiary Hangjun 9
Company ent
ent Co.,
Ltd.
Shenzhen
Huangchen
Limited Property
g Real Controlled Wang 75760133
Liability Shenzhen managem 5000000 100.00% 100.00%
Estate subsidiary Hangjun 4
Company ent
Managemen
t Co., Ltd.
Shandong
Limited Property
Shenzhen Controlled Wang 68481594
Liability Jinan managem 5000000 100.00% 100.00%
ITC subsidiary Zhiyong 7
Company ent
Property
145
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Managem
ent Co.,
Ltd.
Chongqin
g
Shenzhen
Limited Property
ITC Controlled Chongqin Zeng 20285302
Liability managem 5000000 100.00% 100.00%
Property subsidiary g Xiangrong 8
Company ent
Managem
ent Co.,
Ltd.
Chongqin
Limited
g Ao’bo Controlled Chongqin Zeng 66085719
Liability Service 3500000 100.00% 100.00%
Elevator subsidiary g Xiangrong X
Company
Co., Ltd.
Shenzhen
Tianque
Limited
Elevator Controlled Wang 19227775
Liability Shenzhen Service 5000000 100.00% 100.00%
Technolog subsidiary Zhiyong 9
Company
y Co.,
Ltd.
Shenzhen
ITC
Property
Managem Limited
Controlled 19233251
ent Liability Shenzhen Bao Gang Service 1200000 100.00% 100.00%
subsidiary 9
Engineeri Company
ng
Equipmen
t Co., Ltd.
Shenzhen Limited
Controlled Fan Catering 73884274
ITC Food Liability Shenzhen 2000000 100.00% 100.00%
subsidiary Weiping service 9
Co., Ltd. Company
Shenzhen
Property
Constructi Limited Project
Controlled 27938335
on Liability Shenzhen Li Zipeng supervisio 3000000 100.00% 100.00%
subsidiary 1
Supervisio Company n
n Co.,
Ltd.
Shenzhen
Limited
Real Controlled Yao 19217779
Liability Shenzhen Service 1380000 100.00% 100.00%
Estate subsidiary Chengxin 0
Company
Exchange
146
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen
ITC Limited
Controlled 19217731
Vehicles Liability Shenzhen Wei Zhi Service 29850000 100.00% 100.00%
subsidiary X
Industry Company
Co., Ltd.
Shenzhen
ITC Limited
Controlled Fan 19226733
Motor Liability Shenzhen Service 16000000 100.00% 100.00%
subsidiary Weiping 1
Rent Co., Company
Ltd.
Shenzhen
Tesu
Vehicle Limited
Controlled Xiao 19232566
Driver Liability Shenzhen Service 2000000 100.00% 100.00%
subsidiary Dejun 9
Training Company
Center
Co., Ltd.
Shenzhen
Limited
Internatio Controlled 19218224
Liability Shenzhen Luo Junde Trading 12000000 100.00% 100.00%
nal Trade subsidiary X
Company
Plaza
Sichuan
Limited
Tianhe Controlled 75474862
Liability Chengdu Li Jun Trading 8000000 100.00% 100.00%
Industry subsidiary 1
Company
Co., Ltd
Zhanjiang
Shenzhen
Real Limited Property
Controlled Duan 19435140
Estate Liability Zhanjiang developm 2530000 100.00% 100.00%
subsidiary Zuoping 6
Developm Company ent
ent Co.,
Ltd.
Shum Yip
Properties Limited Property
Controlled Inapplicab HKD2000 Inapplicab
Developm Liability Hongkong developm 100.00% 100.00%
subsidiary le 0000 le
ent Co., Company ent
Ltd.
Wayhang
Limited Property
Developm Joint Inapplicab Inapplicab
Liability Hongkong developm HKD2 100.00% 100.00%
ent Co., venture le le
Company ent
Ltd.
Chief Limited Property
Controlled Inapplicab Inapplicab
Link Liability Hongkong developm HKD100 70.00% 70.00%
subsidiary le le
Properties Company ent
147
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co., Ltd.
Syndis Limited Property
Controlled Inapplicab Inapplicab
Investmen Liability Hongkong developm HKD4 100.00% 100.00%
subsidiary le le
t Co., Ltd. Company ent
3. Information of joint ventures and associated enterprises
Percentag Percentag
Legal
Name of Business Registered Business Registered e of e of Relationsh Organizati
representa
investee type address nature capital shareholdi voting ip on code
tive
ng (%) rights (%)
I. Joint ventures
Shenzhen Shenzhen
Limited
Jifa Wang Jifa HKD5415 Joint 61884782
Liability Shenzhen 50.00% 50.00%
Warehous Hangjun Warehous 0000 venture 8
Company
e Co., Ltd e Co., Ltd
Shenzhen Shenzhen
GUOMA Limited GUOMA
Wang USD8880 Joint 61884515
O Tian’an Liability Shenzhen O Tian’an 50.00% 50.00%
Hangjun 000 venture 2
Properties Company Properties
Co., Ltd Co., Ltd
Shenzhen Shenzhen
Tian’an Tian’an
Internatio Internatio
nal Limited Zhang nal
Joint 61893051
Building Liability Shenzhen Changshe Building 3000000 50.00% 50.00%
venture 7
Property Company ng Property
Managem Managem
ent Co., ent Co.,
Ltd Ltd
II. Associated enterprises
Shenzhen Shenzhen
GUOMA GUOMA
O Limited Zha O Associate
HKD3280
Industrial Liability Shenzhen Shengmin Industrial 38.33% 38.33% d
0000
Developm Company g Developm enterprise
ent Co., ent Co.,
Ltd Ltd
Anhui Anhui
Nanpeng Limited Nanpeng Associate
Wang USD8000
Papermak Liability Huainan Papermaki 30.00% 30.00% d
Yizhong 000
ing Co., Company ng Co., enterprise
Ltd Ltd
Shenzhen Limited Shenzhen Associate
Yan USD1672
Wufang Liability Shenzhen Wufang 26.00% 26.00% d
Wenbo 0000
Pottery & Company Pottery & enterprise
148
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Porcelain Porcelain
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
Shenzhen Investment Holdings Co., Under the same control of the parent
279371676
Ltd. company of the Company
Notes:
5. Related-party transactions
(1) Purchase of goods and acceptance of labor service
Unit: RMB Yuan
Pricing method Reporting period Same period of last year
and
Content of the
Related party decision-making Proporti Proporti
transaction Amount Amount
procedures for on (%) on (%)
the transaction
Shenzhen Agreement
Investment pricing by 100.00 100.00
Rental payment 120,638.97 165,715.76
Holdings Co., reference to % %
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 Proporti Proporti
transaction Amount Amount
procedures for on (%) on (%)
the transaction
Shenzhen Agreement
Investment Collecting property pricing by 100.00 100.00
1,886,236.80 129,542.40
Holdings Co., management fee reference to % %
Ltd. market price
(2) Information of related party trust/cont
Information of entrusted management/contract
Unit: RMB Yuan
Name of Initial date of Ending date of Pricing basis Trust / contract
Name of Type of the
entrusting being being for the trust / income
trustee entrusted/contr
party/contracte entrusted/contr entrusted/contr contract recognized in
/contractor acted assets
e act act income the reporting
149
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
period
Shenzhen
Foreign
Shenzhen
Economy & Other assets Detailed note
Shenxin Taxi 1 Jun. 2012 31 Dec. 2014 48,216.22
Trade trust as follows
Co., Ltd.
Investment
Co., Ltd.
Information of entrusting management/contracted
Unit: RMB Yuan
Name of Initial date of Ending date of Trust / contract
Name of Type of the Pricing basis
entrusting entrusting/ entrusting/ fee recognized
trustee entrusted/contr for the trust /
party/contracte being being in the reporting
/contractor acted assets contract fee
e contracted contracted 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.
During the entrusting management period from 1 Jun. 2014 to 30 June, 2014, the stripped assets operating
situation as follows:
Item Amount
Revenue of sales 2,063,854.26
Cost of sales 1,146,664.48
Business tax and surcharges 115,822.66
Administrative expenses 737,078.83
Total profits 64,288.29
Income taxes expenses 16,072.07
Net profits 48,216.22
Note: the administrative expenses included RMB 626,000 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
Pricing basis
Category of the recognized in
Name of lessor Name of lessee Initial date Ending date for the rental
leased assets the reporting
income
period
Lease situation of the Company
150
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Rental income
Pricing basis
Category of the recognized in
Name of lessor Name of lessee Initial date Ending date for the rental
leased assets the reporting
income
period
Notes of related-party lease
(4) Information of related-party guarantee
Unit: RMB Yuan
Whether the
Guarantee guarantee was
Guarantor Secured party Initial date Due date
amount accomplished or
not
Shenzhen
Shenzhen
Properties &
GUOMAO
Resources 20,000,000.00 14 May 2014 12 May 2015 No
Vehicles Industry
Development
Co., Ltd.
(Group) Ltd.
Shenzhen
Shenzhen
Properties &
GUOMAO
Resources 70,000,000.00 27 Jun. 2014 19 Feb. 2015 No
Vehicles Industry
Development
Co., Ltd.
(Group) Ltd.
Dongguan
Shenzhen
GUOMAO
Properties &
Chang Sheng real
Resources 161,243,352.00 11 Jan. 2013 11 Jan. 2016 No
estate
Development
development co.,
(Group) Ltd.
LTD
Shenzhen
Shenzhen Properties &
Properties & Resources
Resources Yangzhou real 20,000,000.00 27 Jun. 2013 6 Sep. 2014 No
Development estate
(Group) Ltd. development co.,
LTD
Shenzhen
Shenzhen Properties &
Properties & Resources
Resources Yangzhou real 30,000,000.00 27 Jun. 2013 26 Dec. 2014 No
Development estate
(Group) Ltd. development co.,
LTD
Shenzhen Shenzhen
50,000,000.00 5 Dec. 2013 6 Mar. 2015 No
Properties & Properties &
151
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Resources Resources
Development Yangzhou real
(Group) Ltd. estate
development co.,
LTD
Shenzhen
Shenzhen Properties &
Properties & Resources
Resources Yangzhou real 50,000,000.00 18 Jun. 2014 6 Jun. 2015 No
Development estate
(Group) Ltd. development co.,
LTD
Shenzhen
Shenzhen
GUOMAO
GUOMAO Motor 10,400,000.00 11 Jan. 2012 10 Jan. 201 No
Vehicles Industry
Rent Co., Ltd.
Co., Ltd.
Shenzhen
Shenzhen Properties &
Huangcheng Real Resources 11,370,000.00 20 Jun. 2014 19 Jun. 2017 No
Estate Co., Ltd. Development
(Group) 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 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 Reporting period Same period of last year
Type of method and
related decision-maki
Content of the
Related party party ng procedures Proporti Proporti
transaction Amount Amount
transactio for the on (%) on (%)
n 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
entrusting entrusted interest amount of loan payment in amount of paid in the
152
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
party party rate（%） loan borrowed the loan reporting
in the reporting period
reporting period
period
Shenzhen Shenzhen The 6.0000 24,000.00 24,000.00 436
Investment Jingtian Company
Holdings Sub-branch
Co., Ltd. of China
Everbright
Bank
Total —— 24,000.00 24,000.00 24,000.00 436
6. Amounts due from/to related parties
Amount due from related parties
Unit: RMB Yuan
Closing balance Opening balance
Item Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
Anhui Nanpeng
Other accounts
Papermaking Co., 7,393,376.00 7,393,376.00 7,286,048.00 7,286,048.00
receivable
Ltd
Shenzhen
GUOMAO
Other accounts
Industrial 2,351,652.48 2,351,652.48 2,351,652.48 2,351,652.48
receivable
Development Co.,
Ltd
Shenzhen Wufang
Other accounts Pottery &
1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
receivable Porcelain
Industrial Co., Ltd
Shenzhen
Other accounts
Guesthouse 909,960.40 909,960.40 909,960.40 909,960.40
receivable
Restaurant
Shenzhen
Accounts receivable Investment 1,927,301.60 118,703.98 3,140,299.50 145,146.64
Holdings Co., Ltd.
Amount due to related parties
Unit: RMB Yuan
Item Related party Closing balance Opening balance
Shenzhen Jifa Warehouse
Other payables 23,545,808.00 23,545,808.00
Co., Ltd
Other payables Shenzhen Tian’an 4,114,345.90 4,114,345.90
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International Building
Property Management
Co., Ltd
Shenzhen Investment
Other payables 641,614.65 520,975.68
Holdings Co., Ltd.
Shenzhen Investment
Short-term borrowings 240,000,000.00
Holdings Co., Ltd.
X. Share-based Payment
1. Overview of share-based payment
Unit: RMB Yuan
The current total equity instruments granted
0.00
by the Company
The current total equity instruments granted
0.00
by the Company
The current total equity instruments granted
0.00
by the Company
Closing outstanding shares of the scope of the
option exercise price and contract remaining 0
term
Note:
Inapplicable
2. Information of equity-settled share-based payment
Unit: RMB Yuan
Capital reserves in the aggregate amount of
0.00
equity-settled share-based payment
Total amount recognized by equity-settled share-based
0.00
payment
Note:
Inapplicable
3. Information of cash-settled share-based payment
Unit: RMB Yuan
Cumulative liabilities amount due to cash-settled
0.00
share-based payment
Total amount recognized by cash settlement 0.00
Note:
Inapplicable
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4. Information of share-based payment service
Unit: RMB Yuan
The total amount of the employee services as a result of
0.00
the share-based payments
The total amount of other services as a result of the
0.00
share-based payments
5. Modification, termination of share-based payment
Inapplicable
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 ②
Jiyong 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
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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 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 11 Sep. 2013, Shenzhen Luohu District People's Court made a paper of civil
judgment of (2012) SLFMEZ No. 1150, the judgment refused the claims of the Company, and however, the
Company refused to accept the judgment and instituted an appeal to Shenzhen Intermediate Peoples Court, now
the Company was waiting for a second trial court judgment.
Given the executable property are not found in the case, so far, the Company had withdrawn bad debt provision
for amount receivable of transfer payments from Jiyong Company to Jinlihua Commercial Plaza.
(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)
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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. 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
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2008, the Futian Court made adjudication to 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.
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.
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2. Contingent liabilities and its financial effect arising from loan guarantee offered to other companies
1.The Company provided joint liability guarantee and borrowed RMB 150 million from Bank of Communications
Co., Ltd. Yangzhou Branch, by mortgaging the use right of area of 66,559 square meters (YGTY 2012 No. 0455)
owned by the Company ‘s subsidiary PRD Yangzhou Real Estate Development Co., Ltd.. The Company
accumulatively received RMB 150 million and the closing balance stood at RMB 150 million, of which will be
arrived within one year.
2.The Company’s subsidiary Dongguan Guomao Changsheng Real Estate Development Co., Ltd. borrowed 440
million from Bank of Communications Co., Ltd. Dongguan Branch, by mortgaging the use right of area of
66,881.10 square meters (DFGY (2010) NO. T316). RMB 161.2434 million had been received the closing balance
stood at RMB 161.2434 million. The Company provided joint liability guarantee and mortgaged its 101-104, 2/F,
5/F in Block A and 1-02 and 1-03 room in Block B as a total of 8 sets of real estate of Shenzhen International
Trade Center Plaza located at Renmin South Road, Luohu District, Shenzhen.
3. 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.
4. 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 10.40 million which will be due
within one year.
5. Shenzhen ITC Vehicles Industry Co., Ltd., a subsidiary to the Company, obtained a short-term loan of RMB70
million from Bank of Shanghai Co., Ltd. Shenzhen Branch by the Company providing joint liability guarantee,
and the closing balance stood at RMB 70 million.
6. Huangcheng Real Estate Co., Ltd. a subsidiary to the Company provided joint liability guarantee and borrowed
RMB 450 million from Bank of Beijing Co., Ltd. Shenzhen branch by mortgaging the use right of area of
19,894.11 square meters (SFDZ No. 4000503246) owned by the Company. The Company accumulatively
received RMB 450 million and the closing balance stood at RMB 11.37 million.
Guarantee for the proprietors: The Company and its subsidiaries provided the commodity houses purchasers with
mortgage guarantee to the bank. Up to 30 Jun. 2014, the guarantee amount unsettled was RMB 5.11 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 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 Judgment”) and adjudicated that the Company should refund the Hubei FTEC Shenzhen branch purchase
payment of RMB 10.8 million and related interests.
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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 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
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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
XIII. Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
Unit: RMB Yuan
Influence number on Reason for failing to
Item Details financial status and estimate the influence
operating results number
2. Notes of profit distribution after Balance Sheet Date
Unit: RMB Yuan
3. Notes of other events after Balance Sheet Date
Inapplicable
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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
Gains and losses
Accumulated Accrued
from the changes
changes in fair impairment in
Item Opening amount in fair value in Closing amount
value recorded in the reporting
the reporting
equity period
period
Financial assets
Subtotal of financial
0.00 0.00 0.00 0.00 0.00
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
Item Opening amount from the changes changes in fair impairment in Closing amount
in fair value in value recorded in the reporting
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the reporting equity period
period
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 change of employer annuity
Naught
9. Other
(1) On 25 Nov. 2011, the proposal on initiating bankruptcy liquidation of Hainan Xinda Development Corporation
(“Hainan Corporation”) was reviewed and approved on the 4th Session of the 7th Board of Directors. On 27 Feb.
2014, Hainan Haikou Intermediate People’s Court issued ,
deciding to accept the bankruptcy liquidation application of Hainan Corporation. On 7 May 2014, Haikou
Intermediate People’s Court designated Hainan Weite Law Firm as the bankruptcy administrator of Hainan
Corporation. And the Company became the president of the creditors’ meeting of Hainan Corporation. And the
first creditors’ meeting would be held in Haikou Intermediate People’s Court on 23 Dec. 2014. On 30 Jun. 2014,
the bankruptcy administrator began to take over Hainan Corporation and took charge of the bankruptcy
liquidation of Hainan Corporation. 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.
(2) The Company held the 10th Meetings of the 7 Session of the Board of Directors on 22 Aug. 2012, which
reviewed and approved the Proposal of starting the equity transfer of Shenzhen GUOMAO Tian’an Properties Co.,
Ltd. and Shenzhen Tian’an International Building Property Management Co., Ltd. According to the stipulations,
planed to audit and evaluate equity value of the Company in Shenzhen GUOMAO Tian’an Properties Co., Ltd.
and plan to public stock transfer not lower than the price of evaluation. The 9th Meetings of the 7 Session of the
Board of Directors on 30 Apr. 2014 reviewed and approved the Proposal of recognizing transferring 50% equity of
Shenzhen GUOMAO Tian’an Properties Co., Ltd. Agreed to at the price not lower than RMB 237. 5171
(evaluating price rise 10%) public stock transfer 50% equity held by Shenzhen GUOMAO Tian’an Properties Co.,
Ltd. the public transferring of 50% equity of Shenzhen GUOMAO Tian’an Properties Co., Ltd. was held by
Shenzhen Stock Exchange on 14 May 2014. receiving the announcement of Shenzhen Stock Exchange on 14 Jul.
2014 that the transfer was successful, and the transferee had transferred the amount to the account of Shenzhen
Stock Exchange. Shenzhen Stock Exchange had disclosed the deal situation on its website, the date of disclosure
was from 14 Jul. 2014 to 18 Jul. 2014.
The price of the equity transfer was at RMB 237.5171 million, after deducting the investment cost, evaluation
expense, trading service charges and related tax expense and so on, the estimated profit was about RMB 148.74
million, which will have a positive impact on the company's 2014 annual results, after the finish of the sale of
equity, the Company and the enterprise sold had no any equity investment relationship.
XV. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
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Prop Propor Propor Propor
Amount ortio Amount tion Amount tion Amount tion
n (%) (%) (%) (%)
Proportion Amo Amou Proportion Amou 100.00
Amount Proportion (%) Proportion (%)
(%) unt nt (%) nt %
Accounts receivable for which bad debt provisions are made on the group basis
1.98 61.94 51.66
Group 2 2,048,728.71 1,269,029.13 2,395,632.21 2.31% 1,237,544.72
% % %
1.98 61.94 51.66
Subtotal of the groups 2,048,728.71 1,269,029.13 2,395,632.21 2.31% 1,237,544.72
% % %
Accounts receivable
with insignificant
single amount but 0.05 100.00 100.00
54,380.35 54,380.35 54,380.35 0.05% 54,380.35
individually % % %
withdrawn bad debt
provision
103,550,998. 102,771,298.5 103,897,901. 102,739,814.1
Total -- -- -- --
11 3 61 2
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
Bad debts Withdrawal Withdrawal
Content of accounts receivable Book balance
provision proportion reason
Involved in
Shenzhen Jiyong Properties & lawsuit, no
98,611,328.05 98,611,328.05 100.00%
Resources Development Company execution
property
Failed to recover
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2,836,561.00 100.00%
for a long time
Total 101,447,889.05 101,447,889.05 -- --
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
Bad debt Bad debt
Aging Propor Propor
provision provision
Amount tion Amount tion
(%) (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1
39.23 39.26
year 803,814.00 24,114.42 940,597.50 28,217.93
% %
(including
164
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
1 year)
Subtotal for
those aging 39.23 39.26
803,814.00 24,114.42 940,597.50 28,217.93
within 1 % %
year
Over 3 60.77 60.74
1,244,914.71 1,244,914.71 1,455,034.71 1,209,326.79
years % %
51.29
4-5 years 0.00% 0.00 1,228,539.62 982,831.70
%
60.77
Over 5 year 1,244,914.71 1,244,914.71 226,495.09 9.45% 226,495.09
%
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 Withdrawal
Book balance Bad debts provision Withdrawal reason
receivable proportion
Luohu Economic
Uncollectible for a
Development 54,380.35 54,380.35 100.00%
long period
Company
Total 54,380.35 54,380.35 -- --
(2) Information of accounts receivable reversed or recovered in the report period
Unit: RMB Yuan
Withdrawal amount
Basis on recognition
Content of accounts Reason for reversal of bad debt provision Reversed or
of provision for bad
receivable or recovery before the reversal or recovered amount
debts
recovery
Total -- -- 0.00 --
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
Book balance Amount of bad debts Reason
receivable proportion (%)
Total 0.00 0.00 -- --
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
Name of Whether arising
Nature Date Amount Reason
company from related-party
165
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
transaction or not
Total -- -- 0.00 -- --
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 Provision for bad
Book balance Book balance
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 98,611,328.05of project accounts
receivable due from Shenzhen Jiyong Properties & Resources Development Company
(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 5 year 95.23%
Development
Company
Shenzhen Tewei
Non-related party 2,836,561.00 Over 5 year 2.74%
Industry Co., Ltd.
Tianhong Shopping
Non-related party 2,048,728.71 Over 5 year 1.98%
Plaza Co., Ltd.
Luohu District
Economic
Non-related party 54,380.35 Over 5 year 0.05%
Development Co.,
Ltd.
Total -- 103,550,998.11 -- 100.00%
(7) Accounts receivable due from related parties
Unit: RMB Yuan
Name of entity Relationship Amount Proportion (%)
Total -- 0.00 0.00%
(8)
166
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 Provision for bad
Book balance Book balance
debts debts
Category Prop Prop Prop Prop
ortio ortio ortio ortio
Amount Amount Amount Amount
n n n n
(%) (%) (%) (%)
Other accounts
receivable with
significant single 13.5 165,424,169.4 70.6 232,990,941.0 18.1 165,125,419. 70.8
234,096,165.84
amount and individually 0% 5 7% 2 8% 81 7%
withdrawn bad debt
provision
Other accounts receivable for which bad debt provisions are made on the group basis
1,487,542,687.6 85.7 0.00 1,036,276,191. 80.8 0.00
Group 1
6 7% % 73 5% %
0.59 94.4 0.78 98.6
Group 2 10,232,501.00 9,663,378.84 10,019,165.31 9,878,586.57
% 4% % 0%
1,497,775,188.6 86.3 0.65 1,046,295,357. 81.6 0.94
Subtotal of the groups 9,663,378.84 9,878,586.57
6 6% % 04 3% %
Other accounts
receivable with
insignificant single 0.14 100. 0.19 100.
2,421,326.23 2,421,326.23 2,421,326.23 2,421,326.23
amount but individually % 00% % 00%
withdrawn bad debt
provision
1,734,292,680.7 177,508,874.5 1,281,707,624. 177,425,332.
Total -- -- -- --
3 2 29 61
Notes of category:
Other accounts receivable with significant single amount and individually withdrawn bad debt provision at
period-end:
√Applicable □Inapplicable
167
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Unit: RMB Yuan
Content of other Withdrawing
Book balance Bad debt amount Reason
accounts receivable proportion（%）
Shum Yip Properties
Uncollectible for a
Development Co., 97,766,027.58 29,094,031.19 29.76%
long period
Ltd.
Fulfill the
Gintian Industry
56,600,000.00 56,600,000.00 100.00% guarantee,uncollectib
(Group) Co., Ltd
le
Hainan Xinda
Uncollectible for a
Development Co., 49,437,140.28 49,437,140.28 100.00%
long period
Ltd
Anhui Nanpeng Uncollectible for a
7,393,376.00 7,393,376.00 100.00%
Papermaking Co., Ltd long period
Shenzhen There is no asset to
Shengfenglu, execute the verdict,
6,481,353.60 6,481,353.60 100.00%
GUOMAO Jewel & thus lead to
Gold Co., Ltd uncollectibility
Shanghai Yutong
Uncollectibility for
Real estate 5,676,000.00 5,676,000.00 100.00%
the reason of verdict
development Co., Ltd
HongKong Yueheng
Uncollectible for a
Development Co., 3,271,837.78 3,271,837.78 100.00%
long period
Ltd
Dameisha Tourism
2,576,445.69 2,576,445.69 100.00% Suspended project
Center
Shenzhen GUOMAO
Industrial The company is
2,351,652.48 2,351,652.48 100.00%
Development Co., insolvent
Ltd
Elevated Train
2,542,332.43 2,542,332.43 100.00% Suspended project
Project
Total 234,096,165.84 165,424,169.45 -- --
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 Propor Bad debt Propor
Bad debt provision
Amount tion provision Amount tion
(%) (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1 year 566,225.89 5.53% 16,986.79 123,050.47 1.23% 3,691.51
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(including 1
year)
Subtotal for
those aging 566,225.89 5.53% 16,986.79 123,050.47 1.23% 3,691.51
within 1 year
1-2 years 21,481.73 0.21% 2,148.17 22,888.01 0.23% 2,288.80
2-3 years 407.99 0.00% 122.40 470.68 0.00% 141.20
94.25 98.54
Over 3 years 9,644,385.39 9,644,121.49 9,872,756.15 9,872,465.06
% %
3-4 years 298.83 0.00% 149.42 458.09 0.00% 229.05
4-5 years 572.44 0.01% 457.95 310.25 0.00% 248.20
94.24 98.54
Over 5 years 9,643,514.12 9,643,514.12 9,871,987.81 9,871,987.81
% %
Total 10,232,501.00 -- 9,663,378.84 10,019,165.31 -- 9,878,586.57
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
Unit: RMB Yuan
Group name Book balance Bad debt provision
Group 1 1,487,542,687.66 0.00
Total 1,487,542,687.66 0.00
Other accounts receivable with insignificant single amount but individually withdrawn bad debt provision at
period-end:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Content of other Withdrawal
Book balance Bad debts provision Withdrawal reason
accounts receivable proportion
Shenzhen Wufang Poor operation status
Pottery & Porcelain 1,747,264.25 1,747,264.25 100.00%
Industrial Co., Ltd
Compensation for Owner unable to
Shidai new residence repay the loan
601,762.21 601,762.21 100.00%
mortgage guarantee
in ABC
Zhanjiang Shenzhen Insolvency thus
Real Estate uncollectible
53,478.77 53,478.77 100.00%
Development Co.,
Ltd.
Meilin Synthetic Uncollectible for a
11,000.00 11,000.00 100.00%
Fibre Company long period
Uncollectible for a
Other 7,821.00 7,821.00 100.00%
long period
169
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total 2,421,326.23 2,421,326.23 -- --
(2) Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
Withdrawal amount
Basis on recognition
Content of other Reason for reversal of bad debt provision Reversed or
of provision for bad
accounts receivable or recovery before the reversal or recovered amount
debts
recovery
Total -- -- 0.00 --
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
Book balance Amount of bad debts Reason
accounts receivable proportion (%)
Total 0.00 0.00 -- --
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
Name of Date of written
Nature Amount Reason from related-party
company off
transactions
Total -- -- 0.00 -- --
Notes:
There was no write-off other accounts receivable during the reporting period.
(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
Withdrawal
Name of entity Withdrawal amount
Book balance Book balance amount of bad
of bad debts
debts
Total 0.00 0.00 0.00 0.00
(5) Nature or content of other accounts receivable with significant amount
公The Company’s other accounts receivable with significant amount are mainly the current accounts receivable
due from subsidiaries
(6) Top five other accounts receivable
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
PRD Yangzhou Real
Subsidiary 588,861,310.60 Within 2 years 33.95%
Estate Development
170
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co., Ltd.
PRD Group
XuzhouDapeng Real
Subsidiary 491,363,476.77 Within 2 years 28.33%
Estate Development
Co., Ltd
Dongguan Guomao
Changsheng Real
Subsidiary 217,541,793.00 Within 2 years 12.54%
Estate Development
Co., Ltd.
Shenzhen
Huangcheng Real
Subsidiary 100,000,000.00 Within 1 years 5.77%
Estate Management
Co., Ltd.
Shum Yip Properties
Development Co., Subsidiary 97,766,027.58 Over 5 years 5.64%
Ltd.
Total -- 1,495,532,607.95 -- 86.23%
(7) Accounts receivable due from related parties
Unit: RMB Yuan
Name of entity Relationship Amount Proportion (%)
PRD Yangzhou Real
Estate Development Co., Subsidiary 588,861,310.60 33.95%
Ltd.
PRD Group
XuzhouDapeng Real
Subsidiary 491,363,476.77 28.33%
Estate Development Co.,
Ltd
Dongguan Guomao
Changsheng Real Estate Subsidiary 217,541,793.00 12.54%
Development Co., Ltd.
Shenzhen Huangcheng
Real Estate Management Subsidiary 100,000,000.00 5.77%
Co., Ltd.
Shum Yip Properties
Subsidiary 97,766,027.58 5.64%
Development Co., Ltd.
Shenzhen Property and
Real Estate Development Subsidiary 82,469,089.00 4.76%
Co., Ltd.
Anhui Nanpeng
Joint venture 7,286,048.00 0.42%
Papermaking Co., Ltd
Shenzhen GUOMAO
Subsidiary 4,270,746.40 0.25%
Food Co., Ltd
171
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen GUOMAO
Industrial Development Joint venture 2,351,652.48 0.14%
Co., Ltd
Shenzhen Property
Construction Supervision Subsidiary 2,292,094.59 0.13%
Co., Ltd.
Shenzhen Wufang Pottery
& Porcelain Industrial Joint venture 1,747,264.25 0.10%
Co., Ltd
Shenzhen International
Subsidiary 744,177.30 0.04%
Trade Plaza
Zhanjiang Shenzhen Real
Estate Development Co., Subsidiary 53,478.77 0.00%
Ltd
Total -- 1,596,747,158.74 92.07%
(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
Explana
tions on
Withdra
differen
wal
ces
amount
between Cash
Shareho Voting Provisio of
Account Initial Increase sharehol bonus in
The Opening Closing lding right n for impairm
ing investm / ding the
investee balance balance Proporti Proporti impairm ent
method ent cost decrease proporti reportin
on on ent loss provisio
on and g period
n in the
voting
reportin
right
g period
proporti
on
Shenzhe
n Jifa
Equity 30,645,0 29,044,0 120,829. 29,164,9
Wareho 50.00% 50.00%
method 56.04 77.52 76 07.28
use Co.,
Ltd
Shenzhe
n Equity 23,186,1 31,589,9 -1,719,4 29,870,4
50.00% 50.00%
GUOM method 24.00 04.82 67.59 37.23
AO
172
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Tian’an
Properti
es Co.,
Ltd
Shenzhe
n
Tian’an
Internati
onal Equity 1,500,00 2,477,94 315,131. 2,793,08
50.00% 50.00%
Building method 0.00 9.33 31 0.64
Property
Manage
ment
Co., Ltd
Shenzhe
n
GUOM
AO Cost 29,850,0 29,850,0 29,850,0 100.00 100.00
Vehicles method 00.00 00.00 00.00 % %
Industry
Co.,
Ltd.
Hainan
Xinda
Cost 20,000,0 20,000,0 20,000,0 100.00 100.00 20,000,0
Develop
method 00.00 00.00 00.00 % % 00.00
ment
Co., Ltd
Shenzhe
n
Property
and
Real Cost 30,950,0 30,950,0 30,950,0 100.00 100.00
Estate method 00.00 00.00 00.00 % %
Develop
ment
Co.,
Ltd.
Shenzhe
n
Huangc
Cost 28,500,0 28,500,0 28,500,0
heng 95.00% 95.00%
method 00.00 00.00 00.00
Real
Estate
Co.,
173
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Ltd.
Shenzhe
n
GUOM
AO
Cost 20,000,0 20,000,0 20,000,0 100.00 100.00
Property
method 00.00 00.00 00.00 % %
Manage
ment
Co.,
Ltd.
Shenzhe
n
Shenxin Cost 33,195,9 12,877,2 12,877,2 100.00 100.00
Taxi method 48.77 60.98 60.98 % %
Co.,
Ltd.
Shenzhe
n
GUOM Cost 1,600,00 1,600,00 1,600,00 1,600,00
80.00% 80.00%
AO method 0.00 0.00 0.00 0.00
Food
Co., Ltd
Shenzhe
n
Property
Constru Cost 3,000,00 3,000,00 3,000,00 100.00 100.00
ction method 0.00 0.00 0.00 % %
Supervis
ion Co.,
Ltd
Shenzhe
n
Internati Cost 12,000,0 12,000,0 12,000,0 100.00 100.00 12,000,0
onal method 00.00 00.00 00.00 % % 00.00
Trade
Plaza
Shenzhe
n Real
Cost 1,380,00 1,380,00 1,380,00 100.00 100.00
Estate
method 0.00 0.00 0.00 % %
Exchang
e
Shensan
Cost 17,695.0 17,695.0 17,695.0 17,695.0
Co.,
method 9 9 9 9
Ltd.
174
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Zhanjia
ng
Shenzhe
n Real Cost 2,530,00 2,530,00 2,530,00 100.00 100.00 2,530,00
Estate method 0.00 0.00 0.00 % % 0.00
Develop
ment
Co., Ltd
Shum
Yip
Properti
es Cost 15,834,0 15,834,0 15,834,0 100.00 100.00 15,834,0
Develop method 00.00 00.00 00.00 % % 00.00
ment
Co.,
Ltd.
Shenzhe
n
Wufang
Pottery
& Cost 18,983,6 18,983,6 18,983,6 18,983,6
26.00% 26.00%
Porcelai method 14.14 14.14 14.14 14.14
n
Industri
al Co.,
Ltd
Shenzhe
n
GUOM
AO
Cost 20,154,8 3,682,97 3,682,97 3,682,97
Industri 38.33% 38.33%
method 40.79 2.55 2.55 2.55
al
Develop
ment
Co., Ltd
Anhui
Nanpen
g Cost 13,824,0 13,824,0 13,824,0 13,824,0
30.00% 30.00%
Paperma method 00.00 00.00 00.00 00.00
king
Co., Ltd
China
Cost 2,962,50 2,962,50 2,962,50 2,160,30
T.H. 0.10% 0.10%
method 0.00 0.00 0.00 0.45
Co.,Ltd.
175
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
North
Machine
ry Cost 3,465,00 3,465,00 3,465,00 3,465,00
12.66% 12.66%
(Group) method 0.00 0.00 0.00 0.00
Co.,
Ltd.
Guangd
ong
Huayue
Cost 8,780,64 8,780,64 8,780,64 8,780,64
Real 8.47% 8.47%
method 5.20 5.20 5.20 5.20
Estate
Co.,
Ltd.
PRD
Group
Xuzhou
Dapeng
Cost 50,000,0 50,000,0 50,000,0 100.00 100.00
Real
method 00.00 00.00 00.00 % %
Estate
Develop
ment
Co., Ltd
Donggu
an
Guomao
Changsh
eng
Cost 20,000,0 20,000,0 20,000,0 100.00 100.00
Real
method 00.00 00.00 00.00 % %
Estate
Develop
ment
Co.,
Ltd.
PRD
Yangzho
u Real
Estate Cost 50,000,0 50,000,0 50,000,0 100.00 100.00
Develop method 00.00 00.00 00.00 % %
ment
Co.,
Ltd.
Sanya
Cost 230,500. 230,500. 230,500.
East 0.28% 0.28%
method 00 00 00
Travel
176
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co.,
Ltd.
442,589, 413,580, -1,283,5 412,296, 102,878,
Total -- -- -- --
924.03 119.63 06.52 613.11 227.43
Note:
4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item Reporting period Same period of last year
Main business revenue 27,423,378.00 25,454,166.48
Other business revenue 4,693,836.00 0.00
Total 32,117,214.00 25,454,166.48
Cost of sales 13,005,498.88 4,623,847.30
(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
27,423,378.00 9,625,812.73 25,454,166.48 3,156,478.40
management
Total 27,423,378.00 9,625,812.73 25,454,166.48 3,156,478.40
(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
27,423,378.00 9,625,812.73 25,454,166.48 3,156,478.40
management
Total 27,423,378.00 9,625,812.73 25,454,166.48 3,156,478.40
(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 27,423,378.00 9,625,812.73 25,454,166.48 3,156,478.40
Total 27,423,378.00 9,625,812.73 25,454,166.48 3,156,478.40
(5) Revenue of sales from the top five customers
Unit: RMB Yuan
Customers Total revenue of sales Proportion of total
177
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
revenue of sales (%)
Tianhong Shopping Plaza Co., Ltd. 4,943,454.00 15.39%
Shenzhen Branch of China Pacific Property Insurance
2,782,132.50 8.66%
Co., Ltd.
Shenzhen Jindu Wedding Etiquette Co., Ltd. 1,336,990.00 4.16%
Shenzhen Meige Xiazi Catering Management Co., Ltd. 1,070,370.32 3.33%
Shenzhen Seven Days Sunshine Hotel Management
1,028,376.00 3.20%
Co., Ltd.
Total 11,161,322.82 34.74%
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
-1,283,506.52 4,390,123.64
equity method
Other 3,378,400.00 14,939,600.00
Total 2,094,893.48 19,329,723.64
(2) Long-term equity investment income accounted by cost method
Unit: RMB Yuan
Same period of Reason for increase/decrease
Name of investee Reporting period
last year YoY
Total 0.00 0.00 --
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Same period of Reason for increase/decrease
Name of investee Reporting period
last year YoY
Shenzhen Jifa Warehouse Co., Ltd 120,829.76 244,042.81 Decrease of realized profits
Shenzhen GUOMAO Tian’an
-1,719,467.59 4,028,152.92 Decrease of realized profits
Properties Co., Ltd
Shenzhen Tian’an International
Building Property Management Co., 315,131.31 117,927.91 Increase of realized profits
Ltd
Total -1,283,506.52 4,390,123.64 --
Notes of investment income:
The Company’s recovery of investment income exist no significant limitation.
Other investment income was internal the entrusted loan interest income.
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：
178
2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Net profit 3,665,066.01 40,159,141.82
Add: Provision for assets impairments -272,589.07 -22,145,321.63
Depreciation of fixed assets, oil and gas assets and
8,062,194.66 8,000,201.31
productive biological assets
Amortization of long-term deferred expense 86,488.14 86,488.14
Financial cost (income: negative) 347,890.56 1,682,000.00
Investment loss (gains: negative) -2,094,893.48 -19,329,723.64
Decrease in inventory (increase: negative) -22,214,310.48 -326,784.17
Decrease in accounts receivable from operating activities
-470,513,625.11 -239,920,865.60
(increase: negative)
Increase in accounts payable from operating activities
-7,711,163.62 -222,518,848.14
(decrease: negative)
Net cash flows generated from operating activities -490,644,942.39 -454,313,711.91
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of cash 87,111,664.81 393,487,265.01
Less: opening balance of cash 420,568,966.65 399,641,751.92
The net increase in cash and cash equivalents -333,457,301.84 -6,154,486.91
7. Information of assets and liabilities recognized by evaluation value from the counter purchase
Information of assets and liabilities recognized by evaluation value from the counter purchase
Unit: RMB Yuan
Recognition method Calculation process
Item Fair value Original book value
of fair value of fair value
Information of long-term investment formed by counter purchase
Unit: RMB Yuan
Amount of long-term investment Calculation process
Item
formed 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
Gains/losses on the disposal of non-current assets Income was from disposal of
(including the offset part of asset impairment 7,801,119.11 fixed assets and investment
provisions) property
Reversal of impairment provisions for the accounts
receivable on which impairment tests were carried out 15,168.75
separately
Other non-operating income and expenses other than the 1,944,946.00
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above
Less: Income tax effects 1,121,446.51
Total 8,639,787.35 --
The government subsidy recorded into the current gains and losses items shall be disclosed the recognized reason.
□ 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 Net assets attributable to shareholders of
the Company the Company
2014 2013 Closing amount Opening amount
According to Chinese
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
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 Net assets attributable to shareholders of
the Company the Company
2014 2013 Closing amount Opening amount
According to Chinese
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
112,074,537.49 353,600,992.81 1,766,173,937.86 1,802,781,292.68
accounting standards
（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
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2014 Semi-annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
The weighted average EPS
Profit in the reporting period
ROE (%) Basic EPS Diluted EPS
Net profit attributable to the Company's
6.19% 0.1881 0.1881
common stock shareholders
Net profit attributable to shareholders of
the Company's common stock after 5.72% 0.1736 0.1736
deducting 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 amount Opening amount Increase/ Reason
decrease
Monetary capital 567,270,884.70 977,171,814.20 -41.95% Mainly due to paying the dividend, tax and
repayment of loan
Account 28,838,591.38 22,208,022.21 29.86% Mainly due to the increase of accounts
receivable receivable of management fee of the
subsidiary
prepayment 55,962,806.45 35,904,799.33 55.86% Mainly due to the increase of land charges in
advance
Other account 11,262,017.00 7,919,365.82 42.21% Mainly due to the increase of the subsidiary
revceivable paying unsettleed account
Short-term loan 140,000,000.00 300,000,000.00 -53.33% Mainly due to maturity and return
Customer in 92,322,222.63 141,082,677.48 -34.56% Project report had reached settlement
advance condition and carried forward the income
Interest payable 502,634.99 934,568.21 -46.22% Mainly due to the decrease of bank loan
Non-current 113,093,221.64 67,009,888.28 68.77% Mainly due to transfering from
liabilities due reclassification settlement of long term loan
within one year
Long-term loan 172,613,352.00 116,243,352.00 48.49% Mainly due to the increase of subsidiary’s
project loan
Item Reporting period Same period of Increase/ Reason
last year decrease
Operating 501,367,559.78 1,348,194,107.29 -62.81% Mainly due to the settlement project and the
revenue decrease of sale
Operating cost 230,835,231.01 553,178,605.80 -58.27% Mainly due to the decrease of settlement
project income
Business tax and 82,288,326.22 283,964,714.90 -71.02% Mainly due to the decrease of business tax
surcharges and land value added tax araising by
decrease if real estate income
Sale expense 5,167,082.37 7,367,804.79 -29.87% Mainly due to the strengthening of cost
control make the related marketing cost
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reduced
Financial cost -6,325,233.01 -3,595,065.02 75.94% Mainly due to the increase of interest
income
Investment 6,261,748.54 4,390,123.64 42.63% Mainly due to the subsidiary bankruptcy
income liquidation and returning to excess losses
Investments -1,283,506.52 4,390,123.64 -129.24% Mainly due to the decrease of income of
income from Joint venture
associated
companies and
joint ventures
Non-operating 4,163,164.65 2,510,882.84 65.80% Mainly due to the increase income of
revenue disposal of fixed assets
Non-opearating 380,296.86 1,921,568.67 -80.21% Mainly due to the legal claims occurred in
cost same period of last year.
Total profits 147,812,552.49 459,686,916.91 -67.84% Mainly due to the decrease of real estate
business income
income tax 35,738,015.00 106,085,924.10 -66.31% Mainly due to the decrease of profits
expense
Net profits 112,074,537.49 353,600,992.81 -68.30% Mainly due to the decrease of real estate
attribute to the business income
parent
comapany ower
Net cash flow -189,887,490.37 126,636,956.08 -249.95% Mainly due to the decrease of withdrawal of
from operating funds
activities of project sale and the increase of project
investment
Net cash flow -2,452,735.80 -4,842,566.40 -49.35% Mainy due to the increase of disposal of
from investment fixed asstes income and the decrease of
activities amount of buying fixed assets
Net cash flow -217,614,297.27 -15,461,456.53 1307.46% Mainly due to the increase of net outflow,
from financing net amount cash flow from financing
activities activities which was due to the borrowing
capital reduced, and dividend warrants
Net increase of -409,900,929.50 106,248,674.18 -485.79% Mainly due to the withdrawal of funds of
cash and cash project sale, the reduce of borrowing capital
equivalent and dividend warrants
Closing balance 567,270,884.70 903,972,985.55 -37.25% Mainly due to the decrease of net amount of
of cash and cash and cash equivalent
cash equivalent
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Section X Documents Available for Reference
I. Financial statement
II. Other documents ever disclosed
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