The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
THE 2015 ANNUAL REPORT
2016-03
March 2016
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section I Important Statements, Contents & Terms
The Board of Directors, the Supervisory Committee as well as the 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 information, misleading statements or material omissions. And they shall be jointly and
severally liable for that.
Mr. Chen Yugang, company principal, Mr. Wang Hangjun, person-in-charge of the accounting work,
and Ms. Shen Xueying, person-in-charge of the accounting organ (chief of accounting), hereby
confirm that the financial report carried in this Report is factual, accurate and complete.
All directors attended the board meeting for reviewing this Report.
The Company’s preliminary plan for profit distribution upon review and approval at the board
meeting: Based on the total shares of 595,979,092, a cash dividend of RMB0.8 (tax included) will
be distributed to all the shareholders for every 10 shares that they hold. No bonus shares will be
granted and no capital reserves will be turned into share capital.
This Report is prepared in both Chinese and English. Should there be any understanding
discrepancy between the two versions, the Chinese version shall prevail.
Major risk warning: 1. Changes in the government’s real estate and financial policies; 2. Changes in
real estate supply and demand.
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Contents
Section I Important Statements, Contents & Terms.......................................................................2
Section II Company Profile & Financial Highlights.......................................................................5
Section III Business Profile .............................................................................................................10
Section IV Discussion & Analysis by the Management ................................................................13
Section V Significant Events ...........................................................................................................25
Section VI Share Changes & Particulars about the Shareholders ..............................................35
Section VII Preference Shares ........................................................................................................45
Section VIII Directors, Supervisors, Senior Management Staff & Employees ..........................46
Section IX Corporate Governance .................................................................................................55
Section X Financial Report .............................................................................................................62
Section XI Documents Available for Reference...........................................................................220
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Terms
Term Specific meaning
Company, the Company Shenzhen Properties & Resources Development (Group) Ltd.
SIHC Shenzhen Investment Holdings Co., Ltd.
SCIHC Shenzhen Construction Investment Holdings Corporation
SIM Shenzhen Investment Management Co., Ltd.
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section II Company Profile & Financial Highlights
I. Basic information of the Company
Stock abbr. SZPRD A, SZPRD B Stock code 000011, 200011
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. of Company name in
深物业集团
Chinese
Company name in English (if
ShenZhen Properties & Resources Development（Group） Ltd.
any)
Abbr. of Company name in
SZPRD
English (if any)
Legal representative Mr. Chen Yugang
39/F and 42/F, International Trade Center, Renmin South Road, Shenzhen, Guangdong Province,
Registered address
P.R.China
Zip code 518014
39/F and 42/F, International Trade Center, Renmin South Road, Shenzhen, Guangdong Province,
Office address
P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email address 000011touzizhe@szwuye.com.cn
II. Contact information
Company Secretary Securities Affairs Representative
Name Fan Weiping
Qian Zhong, Huang Fengchun
42/F, International Trade Center, Renmin 42/F, International Trade Center, Renmin
Contact address South Road, Shenzhen, Guangdong South Road, Shenzhen, Guangdong
Province, P.R.China Province, P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610 82212043 0755-82210610 82212043
E-mail address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
III. About information disclosure and where this Report is placed
Newspapers designated by the Company for A-share: Securities Times
information disclosure B-share: Ta Kung Pao (HK)
Internet website designated by CSRC for disclosing
www.cninfo.com.cn
this Report
Board Office, 42/F, International Trade Center, Renmin South Road,
Where this Report is placed
Shenzhen, Guangdong Province, P.R.China
IV. Changes in the registered information
Organizational code No changes
Changes in main business since listing (if
No changes
any)
Changes of controlling shareholder (if any) No changes
V. Other information
The CPAs firm hired by the Company
Name Union Power CPAs Co., Ltd. (LLP)
2~9/F, Union Power Building, 169 Donghu Road, Wuchang District, Wuhan, Hubei Province,
Office address
P.R.China
Signing accountants Wang Yu & Fan Guiming
Sponsor engaged by the Company to conduct consistent supervision during the reporting period
□ Applicable √ Inapplicable
Financial consultant engaged by the Company to conduct consistent supervision during the reporting period
□ Applicable √ Inapplicable
VI. Accounting and financial highlights
Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the accounting policy or
correction of accounting errors?
□ Yes √ No
Increase/decrease of
2015 2014 current year over last 2013
year
Operating revenues (RMB Yuan) 1,077,418,500.93 1,268,451,451.86 -15.06% 1,619,227,227.60
Net profits attributable to
shareholders of the Company 156,819,966.71 417,498,679.91 -62.44% 300,840,563.81
(RMB Yuan)
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Net profits attributable to
shareholders of the Company after
18,480,611.70 253,778,668.88 -92.72% 300,239,183.47
extraordinary gains and losses
(RMB Yuan)
Net cash flows from operating
309,767,629.66 -14,627,057.08 2,217.77% 110,424,330.10
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.2631 0.7005 -62.44% 0.5048
Diluted EPS (RMB Yuan/share) 0.2631 0.7005 -62.44% 0.5048
Weighted average ROE (%) 7.59% 21.82% -14.23% 18.19%
Increase/decrease of
As at 31 Dec. 2015 As at 31 Dec. 2014 current year-end than As at 31 Dec. 2013
last year-end
Total assets (RMB Yuan) 4,379,763,486.10 3,883,288,145.46 12.78% 3,873,252,714.32
Net assets attributable to
shareholders of the Company 2,099,906,766.61 2,074,242,662.07 1.24% 1,802,781,292.68
(RMB Yuan)
VII. Differences of the accounting data under the domestic and the overseas accounting
standards
1. Differences of the net profits and the net assets disclosed in the financial reports prepared under the
international and the Chinese accounting standards
√ Applicable □ Inapplicable
Unit: RMB Yuan
Net profits attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
2015 2014 Closing amount Opening amount
According to Chinese
156,819,966.71 417,498,679.91 2,099,906,766.61 2,074,242,662.07
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
156,819,966.71 417,498,679.91 2,099,906,766.61 2,074,242,662.07
accounting standards
2. Differences of the net profits and the net assets disclosed in the financial reports prepared under the
overseas and the Chinese accounting standards
√ Applicable □ Inapplicable
Unit: RMB Yuan
Net profits attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
2015 2014 Closing amount Opening amount
According to Chinese
156,819,966.71 417,498,679.91 2,099,906,766.61 2,074,242,662.07
accounting standards
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Items and amounts adjusted according to overseas accounting standards
According to overseas
156,819,966.71 417,498,679.91 2,099,906,766.61 2,074,242,662.07
accounting standards
3. Reason for any differences in the accounting data under the domestic and the overseas accounting
standards
√ Applicable □ Inapplicable
No differences.
VIII. Financial highlights by quarter
Unit: RMB Yuan
Q1 Q2 Q3 Q4
Operating revenues 135,271,193.34 203,490,117.05 297,288,997.73 441,368,192.81
Net profits attributable to
356,364.92 30,806,466.82 15,292,968.63 110,364,166.34
shareholders of the Company
Net profits attributable to
shareholders of the Company after 254,313.28 26,692,562.91 15,154,797.52 -23,621,062.01
extraordinary gains and losses
Net cash flows from operating
-129,634,375.83 -92,274,805.10 182,346,525.43 349,330,285.16
activities
Any material differences between the financial indicators above or their summations and those which have been disclosed in
quarterly or semi-annual reports?
□ Yes √ No
IX. Extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item 2015 2014 2013 Note
Gains/losses on disposal of non-current
assets (including offset part of asset -175,931.40 219,223,848.63 72,626.95
impairment provisions)
Government grants recognized in current
period, except for those acquired in ordinary
course of business or granted at certain 153,795.84 4,500.00
quotas or amounts according to
government’s unified standards
Assets on 14/F and
Gains/losses on contingencies irrelevant to 15/F of Longyuan
168,991,971.80
the Company’s normal business activities Chuangzhan Building
worthy of
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
RMB174,382,120.00
recognized. See (2) 2
XIV in “Section X
Financial Report” for
details.
Gains and losses on change in fair value
from tradable financial assets and tradable
financial liabilities, as well as investment
income from disposal of tradable financial
5,709,098.20
assets and tradable financial liabilities and
financial assets available for sales except for
effective hedging related with normal
businesses of the Company
Impairment provision reversal for accounts
receivable on which impairment test is 8,374,421.28 429,994.49 833,813.78
carried out separately
Non-operating income and expense other
164,576.21 -22,799,362.40 -724,421.19
than above
Other gain and loss items that meet
5,895,627.11
definition of extraordinary gain/loss
Less: Income tax effects 44,878,576.92 39,034,596.80 -419,360.80
Total 138,339,355.01 163,720,011.03 601,380.34 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
No such cases in the reporting period.
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section III Business Profile
I. Main business during the reporting period
The Company has 12 functioning subsidiaries in total, including 4 real estate subsidiaries (Huangcheng, Dongguan, Xuzhou and
Yangzhou), 2 property management subsidiaries (International Trade Center Property Management and Huangcheng Property
Management), 2 taxi service subsidiaries (International Trade Center Car Industry and Shenxin), 2 joint ventures (Jifa and Tian’an,
with the Company holding a 50% stake in both), 1 catering subsidiary and 1 supervision subsidiary.
The main business of the Company is as follows:
(1) Real estate
Real estate is the primary business of the Company, operated by 4 of its subsidiaries with 130 employees. 5 projects (Imperial
Garden, Xinhua Town, Shengang No. 1, Langqiao International and Caitianyise) have been completed over the past few years and
the following 5 are currently ongoing:
Xuzhou Banshanyujing: Won against competition on 10 Feb. 2010, floor space 96,900 ㎡, plot ratio 0.8, total land price RMB192
million (RMB2,481/㎡ if converted into floor price).
Dongguan Songhulangyuan: Won on 15 Jul. 2010, floor space 66,900 ㎡, plot ratio 2.2, total land price RMB214 million
(RMB1,454/㎡ if converted into floor price), available for sale from the end of Jul. 2015, 428 houses sold up to Sept. 2015 (over
RMB300 million for a total area of 43,000 ㎡).
Yangzhou Hupanyujing: Won on 28 Jan. 2011, floor space 66,600 ㎡, plot ratio 1.4, total land price RMB610 million (RMB6,439/㎡
if converted into floor price), 119 houses sold so far for RMB183 million.
Shenzhen Qianhai project: Obtained in Jul. 2011 in an asset swap promised in the share reform, floor space 19,900 ㎡, plot ratio 3.2,
total land price RMB270 million (RMB4,206/㎡ if converted into floor price).
Shenzhen Golden Collar Holiday: Located at Huanggang Port, historical land, floor space 12,600 ㎡, plot ratio 10.5, total
construction area 130,000 ㎡.
The 5 ongoing projects above combined cover a floor space of 231,300 ㎡ and a total construction area of 716,100 ㎡, with the
plot-ratio-counted and available-for sale area reaching 474,700 ㎡.
(2) Property management
The Company currently has 2 property management subsidiaries, namely International Trade Center Property Management and
Huangcheng Property Management.
(3) Taxi service
The Company currently has 2 taxi service subsidiaries, namely International Trade Center Car Industry and Shenxin Taxi, holding a
total of 530 red taxi licenses.
(4) Property rental
The Company has now a total area of 86,200 ㎡ available for rental, with the letting rate up to 96%.
(5) Warehousing service
The warehousing service is mainly provided by SZPRD Jifa Warehouse Co., Ltd., a joint venture where the Company holds a 50%
stake, with the total area of the warehouses reaching 35,000 ㎡.
(6) Catering service
The total business area is 1,892 ㎡.
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
II. Significant changes in the main assets
1. Significant changes in the main assets
Main asset Reason for any significant change
Up 4.98% from opening amount, mainly because of gains on joint ventures recognized at
Equity assets
equity method
Fixed assets Up 34.12% from opening amount, mainly because of increase in renewed taxies
Intangible assets Down 7.17% from opening amount, mainly because of amortization in current period
Up 16.91% from opening amount, mainly because of increase in house payments
Monetary funds
received
Up 45.84% from opening amount, mainly because of increase in receivables from house
Accounts receivable
owners to property management subsidiaries
Down 21.59% from opening amount, mainly because of sale of these assets in current
Available-for-sale financial assets
period
Up 6.15% from opening amount, mainly because of increase in project input in current
Inventories
period
Up from opening amount, mainly because of recognition of assets on 14/F and 15/F of
Other current assets
Longyuan Chuangzhan Building
Up 10.98% from opening amount, mainly because of deferred income tax assets on
Deferred income tax assets
anticipated profit growth on pre-sale revenue of real estate subsidiaries
Down 92% from opening amount, mainly because of repayment of due short-term
Short-term borrowings
borrowings
Up 2168.61% from opening amount, mainly because of increase in house pre-sale
Accounts received in advance
revenue
Taxes and fares payable Down 17.88% from opening amount, mainly because of taxes and fares paid as required
Down 18.45% from opening amount, mainly because of transfer to non-current liabilities
Long-term borrowings
due within 1 year
2. Main assets overseas
□ Applicable √ Inapplicable
III. Core competitiveness analysis
The Company’s projects of high value in Shenzhen are now in full swing. SZPRD-Qianhai Bay Garden in Qianhai, Shenzhen has
been open since Nov. 2015 and greeted by an overwhelming response in the market. The Langqiao International project achieved a
remarkable result in sale of shops by seizing opportunities of the May Day and taking effective marketing measures such as joint
marketing in the three tiers of markets. The SZPRD-Golden Collar’s Holiday Apartment project at the Huanggang Port has
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
completed its pile foundation and is proceeding smoothly. In the year, the fast growth in the real estate market of Shenzhen
influenced its neighboring cities. The SZPRD-Songhulangyuan project in Dongguan were open as scheduled, which is ideal in its
pace of sales and anticipated economic benefits. As for the SZPRD-Hupanyujing project located in Yangzhou, Phase I has allowed
house owners to move in and the progress of its sales is satisfactory, and Phase II has completed part of the main construction and
will be open for sale in Jan. 2016. All well located, the projects of the Company in Shenzhen will see better economic benefits along
with the rapid development of the city’s real estate market, laying a solid foundation for the business expansion of the Company in
the future.
The brand value and overall strength of the Company is highly regarded in the market as ever before. In the year, the Company was
granted quite a few titles such as “The 2015 China Top 500 Real Estate Developers”, “The 2015 Shenzhen Top 10 Real Estate
Brands”, “The 2015 Guangdong Top 500 Enterprises”, “The 2015 Shenzhen Top 25 Contributors to Urban Construction” and “The
2015 Leading Real Estate Brand”.
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section IV Discussion & Analysis by the Management
I. Summary
In 2015, with a general guideline of “Consumption Promotion and De-stocking”, China’s real estate market
showed a distinct sign of recovery due to the frequent easing policies in the supply and demand. The total area of
the sold commodity houses in the country throughout the year hit a record high, but the real estate market
continued to polarize with an obvious recovery in the first-tier cities and great de-stocking pressure on the third
and fourth-tier cities. And the market competition was increasingly fierce due to the slowing-down growth in real
estate investment, the difficulties in real estate sales in the third and fourth-tier cities, the rising land prices in the
first-tier cities, etc.
To deal with that, the Company accelerated its project construction progress, enhanced its real estate marketing
and promoted its sidelines while solidifying its main business of real estate. As a result, in 2015, the Company
achieved operating revenues of RMB1.077 billion and total profits of RMB217 million.
Despite an expectedly pessimistic macro-economy for 2016-2018, these three years are within the duration of the
government’s crucial “13th Five-Year” strategic planning. Therefore, the government is expected to unveil more
proactive fiscal and monetary policies as well as other growth-stabilizing and employment-boosting policies so as
to ensure the fulfillment of its objectives as well as the sustained and healthy development of China’s economy.
For a real estate developer amid the constant changes in the business environment, to build up products highly
recognized by consumers and effectively control costs is the key to win. Therefore, integration among enterprises
is increasing. The product types will gradually shift from residential, commercial and office real estate to
industrial, tourism, endowment real estate, etc., which are more specific. In terms of development strategies,
cross-field marketing models such as the Internet thinking and real estate financing, investment models such as
joint land acquisition and light-assets operation, and new financing models such as the property fund will continue
to infiltrate into the real estate enterprises, which should keep up with these new development trends in the sector.
The Company will beef up the construction progress of its real estate projects to meet its schedules, further
improve its capability in operation and management of real estate projects, and monitor closely the development
progress so as to ensure the fulfillment of the business objectives for its real estate projects. Meanwhile, it will
draw up market-oriented marketing plans according to the actual situations and development trends in different
cities, and follow up and analyze market responses and changes so that it can adjust its marketing strategies in
time to promote its project sales.
Meanwhile, the Company is well aware of the influence of industry changes on its operation. It will coordinate its
resources and look for more quality real estate projects in a variety of ways. In the meantime, it will also boost the
development of its sidelines of property management, house rental, taxi service, etc. for business expansion and
more profits. For example, it will carry out the “Internet + Property Management” in an orderly manner for its
property management business so that it can make a better use of the Internet, big data and technology to increase
its operating efficiency.
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
II. Main business analysis
1. Summary
See “I. Summary” in “Discussion & Analysis by the Management”.
2. Revenues and costs
(1) Breakdown of the operating revenues
Unit: RMB Yuan
2015 2014
In operating In operating +/-
Amount Amount
revenues revenues
Operating revenues 1,077,418,500.93 100% 1,268,451,451.86 100% -15.06%
By segment
Real estate
589,882,920.27 57.52% 809,260,338.23 67.02% -9.50%
development
Property
338,396,640.78 33.00% 307,136,733.64 25.44% 7.56%
management
Transport service 60,914,047.94 5.94% 62,476,507.32 5.17% 0.77%
Catering service 31,014,702.89 3.02% 24,634,302.99 2.04% 0.98%
Other 5,326,342.63 0.52% 5,937,003.71 0.49% 0.03%
By product
By area
(2) Segments, products or areas contributing over 10% of the operating revenues or profits
√ Applicable □ Inapplicable
Unit: RMB Yuan
Operating Gross profit
Operating Gross profit Operating cost:
Operating cost revenue: YoY margin: YoY
revenue margin YoY +/-%
+/-% +/-%
By segment
Real estate
515,974,918.00 234,013,337.05 54.65% -31.08% 62.79% -26.15%
development
Property
333,400,952.67 316,217,676.81 5.15% 5.15% 16.63% -1.17%
management
By product
By area
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Main business data of the previous year restated according to the changed statistical caliber for the reporting period
□ Applicable √ Inapplicable
(3) Product sales revenue higher than the service revenue
√ Yes □ No
Business segment Item Unit 2015 2014 +/-
Real estate
Sales volume ㎡ 99506.81 16801.66 492.24%
development
production volume ㎡ 456925.08 531283.08 -14.00%
Inventory volume ㎡ 204462.17 303968.98 -32.74%
Reason for any over 30% YoY movements in the data above
√ Applicable □ Inapplicable
The sold and ready-for-settlement real estate area decreased considerably from that of last year.
(4) Execution progress of major signed sales contracts in the reporting period
□ Applicable √ Inapplicable
(5) Breakdown of the operating costs
By segment
Unit: RMB Yuan
2015 2014
Segment Item +/-
Amount In operating costs Amount In operating costs
Real estate
248,862,700.87 39.43% 162,645,492.90 32.99% 86,217,207.97%
development
Property rental &
322,986,076.28 51.18% 279,143,261.38 56.62% 43,842,814.90%
management
Transport service 29,554,744.59 4.68% 30,388,793.31 6.16% -834,048.72%
Catering service 25,527,473.13 4.04% 20,202,098.26 4.10% 5,325,374.87%
Other 4,203,603.52 0.67% 5,269,572.72 1.07% -1,065,969.20%
Total 631,134,598.39 100.00% 497,649,218.57 100.00% 133,485,379.82%
Notes
Not available
(6) Changes in the consolidation scope for the reporting period
□ Yes √ No
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(7) Major changes in the business, products or services in the reporting period
□ Applicable √ Inapplicable
(8) Main customers and suppliers
Main customers
Total sales to top 5 customers (RMB Yuan) 239,326,720.53
Ratio of total sales to top 5 customers to annual total sales
22.21%
(%)
Information about the top 5 customers
Serial No. Name of customer Sales (RMB Yuan) Proportion in annual total sales (%)
1 Individual A 63,352,439.00 5.88%
2 Individual B 55,818,509.00 5.18%
3 Huawei Technologies Co., Ltd. 42,297,614.53 3.93%
4 Alibaba (China) Co., Ltd. 39,155,270.00 3.63%
5 Individual C 38,702,888.00 3.59%
Total -- 239,326,720.53 22.21%
Other information about the main customers
□ Applicable √ Inapplicable
3. Expense
Unit: RMB Yuan
2015 2014 +/- Reason for any significant change
Sales service and agency costs
Selling expenses 41,941,165.94 26,318,080.91 59.36%
increased as marketing was enhanced
Administrative expenses 102,968,126.79 103,915,932.80 -0.91% Cost control was tightened
Financial expenses -7,514,689.31 -12,697,790.50 -40.82% Decrease in interest revenue
Income tax expenses 60,771,725.42 136,266,283.67 -55.40% Decrease in profits
4. R&D input
□ Applicable √ Inapplicable
5. Cash flows
Unit: RMB Yuan
Item 2015 2014 +/-
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Subtotal of cash inflows from
1,711,116,833.24 1,169,054,597.62 46.37%
operating activities
Subtotal of cash outflows from
1,401,349,203.58 1,183,681,654.70 18.39%
operating activities
Net cash flows from operating
309,767,629.66 -14,627,057.08 2,217.77%
activities
Subtotal of cash inflows from
8,058,358.89 238,169,791.85 -96.62%
investing activities
Subtotal of cash outflows from
38,285,548.55 13,949,481.24 174.46%
investing activities
Net cash flows from investing
-30,227,189.66 224,220,310.61 -113.48%
activities
Subtotal of cash inflows from
216,470,006.83 316,370,000.00 -31.58%
financing activities
Subtotal of cash outflows from
374,393,615.57 693,077,717.73 -45.98%
financing activities
Net cash flows from financing
-157,923,608.74 -376,707,717.73 -58.08%
activities
Net increase in cash and cash
124,374,439.09 -168,208,437.52 173.94%
equivalents
Main influence factors for any significant YoY changes in the items above
√ Applicable □ Inapplicable
① The subtotal of the cash inflows from operating activities and the net cash flows from operating activities increased from last year
mainly because of the increase in the house payments received.
② The subtotal of the cash inflows from investing activities and the net cash flows from investing activities decreased from last year
mainly because of the cash received from the disposal of the 50% stake in Tian’an Company last year.
③ The subtotal of the cash outflows from investing activities increased from last year mainly because of the increase in the renewed
taxies of the subsidiaries.
④ The subtotal of cash inflows from financing activities decreased from last year mainly because of the decreased in new
borrowings.
⑤ The subtotal of cash outflows from financing activities decreased from last year mainly because of the decreased in repaid
borrowings.
⑥ The net cash flows (net outflows) from financing activities decreased from last year mainly because of the decrease in repaid
borrowings.
⑦ The net increase in cash and cash equivalents increased from last year mainly because of the increase in the house payments
received and the decrease in repaid borrowings.
Reasons for any big difference between the net operating cash flows and the net profits in the reporting period
√ Applicable □ Inapplicable
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The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
For the reporting period, the net cash flows from operating activities stood at RMB309,767,629.66, representing a big difference with
the net profits of RMB155,619,966.71, which was mainly because the pre-sale revenue had not yet met the condition for settlement.
III. Non-core business analysis
√ Applicable □ Inapplicable
Unit: RMB Yuan
Amount In total profits (%) Source/reason Continuity
Gains on disposal of
Investment gains 7,738,371.09 3.58% available-for-sale financial No
assets
Falling price provision for
Asset impairment 91,863,939.71 42.45% SZPRD-Banshanyujing No
project
Assets on 14/F and 15/F of
Longyuan Chuangzhan
Building worthy of
Non-business
171,619,115.05 79.31% RMB169,582,120.00 No
revenue
recognized. See (1) 2 (XIV)
in “Section X Financial
Report” for details.
Non-business Losses on penalties, overdue
2,876,737.49 1.33% No
expense fines and estimated liabilities
IV. Asset and liability analysis
1. Significant changes in the asset composition
Unit: RMB Yuan
As at 31 Dec. 2015 As at 31 Dec. 2014 Proportio
In total assets In total assets n change Reason for any significant change
Amount Amount
(%) (%) （%）
945,739,975.7
Monetary funds 21.59% 808,963,376.68 20.83% 0.76% Increase in project sales revenue
7
Increase in accounts receivable by
Accounts
38,772,146.41 0.89% 26,585,132.12 0.68% 0.21% property management subsidiaries
receivable
from house owners
Closing change in proportion due to
2,466,342,278. 2,323,472,671. increased total assets, closing amount
Inventories 56.31% 59.83% -3.52%
85 20 higher than opening amount due to
increase in project development input
18
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Investing real 237,260,788.8
5.42% 250,014,034.94 6.44% -1.02% Depreciation
estate 2
Closing change in proportion due to
Long-term equity increased total assets, closing amount
34,526,177.41 0.79% 32,888,939.41 0.85% -0.06%
investment higher than opening amount due to
increase in gains on joint ventures
Increase in renewed taxies of
Fixed assets 85,929,516.37 1.96% 64,069,233.96 1.65% 0.31%
subsidiaries
Short-term
8,000,000.00 0.18% 100,000,000.00 2.58% -2.40% Due short-term borrowings repaid
borrowings
Long-term 144,840,006.8 Long-term borrowings shifted to
3.31% 177,613,352.00 4.57% -1.26%
borrowings 3 non-current liabilities due within 1 year
Other current 174,382,120.0 Assets on 14/F and 15/F of Longyuan
3.98% 3.98%
assets 0 Chuangzhan Building recognized
Intangible assets 92,640,083.99 2.12% 99,792,587.03 2.57% -0.45% Amortization
Closing change in proportion due to
increased total assets, closing amount
Deferred income 240,335,370.5 higher than opening amount due to
5.49% 216,552,790.60 5.58% -0.09%
tax assets 1 deferred income tax assets on
anticipated profit growth on pre-sale
revenue of real estate subsidiaries
Closing change in proportion due to
increased total assets, closing amount
191,524,938.5
Accounts payable 4.37% 175,347,021.19 4.52% -0.15% higher than opening amount due to
4
increase in tentatively estimated costs
on project completion
Accounts
652,369,778.2
received in 14.90% 28,756,337.08 0.74% 14.16% Increase in real estate pre-sale revenue
0
advance
Taxes and fares 833,797,372.4 1,015,363,636.
19.04% 26.15% -7.11% Paid as required
payable 3 69
Non-current
121,243,352.0 Shift from long-term borrowings to this
liabilities due 2.77% 5,000,000.00 0.13% 2.64%
0 item as prescribed
within 1 year
2. Assets and liabilities measured at fair value
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Opening Gain/loss on Cumulative fair Impairment Purchased Sold amount in Closing
19
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
amount fair value value changes provisions in amount in current period amount
changes in recorded into current period current period
current period equity
Financial assets
3.
Available-for-sa
3,993,000.00 6,511,297.75 0.00
le financial
assets
Subtotal of
3,993,000.00 6,511,297.75 0.00
financial assets
Total of above 3,993,000.00 6,511,297.75 0.00
Financial
0.00 0.00
liabilities
Significant changes in the measurement attributes of the main assets in the reporting period
□ Yes √ No
V. Investment analysis
1. Total investments
□ Applicable √ Inapplicable
2. Significant equity investments made in the reporting period
□ Applicable √ Inapplicable
3. Significant non-equity investments ongoing in the reporting period
□ Applicable √ Inapplicable
4. Financial investments
(1) Securities investments
√ Applicable □ Inapplicable
Unit: RMB Yuan
Gain/los Cumulat
Variety Account s on fair ive fair
Code of Name of Initial Purchas Gain/los
of ing Opening value value Sold in Closing Account Source
ed in s in
securitie securitie investm measure book changes changes current book
securitie current current
ment value in recorde period value ing title of funds
s s ent cost model period period
s current d into
period equity
Domesti Huasu 2,962,5 Fair 3,993,0 6,511,29 5,709,0 Availabl Own
000509 0.00
c/overse Holding 00.00 value 00.00 7.75 98.20 e-for-sal funds
20
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
as stock s method e
financia
l asset
2,962,5 3,993,0 6,511,29 5,709,0
Total -- 0.00 0.00 0.00 0.00 -- --
00.00 00.00 7.75 98.20
Disclosure date of board
announcement on approval
of securities investment
Disclosure date of general
meeting announcement on
approval of securities
investment (if any)
(2) Investment in financial derivatives
□ Applicable √ Inapplicable
No such cases in the reporting period
5. Utilization of raised funds
□ Applicable √ Inapplicable
No such cases in the reporting period
VI. Sale of major assets and equity interests
1. Sale of major assets
□ Applicable √ Inapplicable
No such cases in the reporting period
2. Sale of major equity interests
□ Applicable √ Inapplicable
VII. Main controlled and joint stock companies
√ Applicable □ Inapplicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profits
Unit: RMB Yuan
Relationship Main
Company Registered Operating Operating
with the business Total assets Net assets Net profits
name capital revenues profits
Company
21
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen
Huangcheng Sale of 30,000,000.0 1,825,192,08 862,490,105. 406,926,102. 119,599,396.
Subsidiary Real estate
Real Estate houses 0 5.34 78 62 06
Co., Ltd.
SZPRD Real
Estate Sale of 30,950,000.0 249,829,650. 65,847,877.5
Subsidiary Real estate 1,120,394.00 7,747,560.57
Development houses 0 89 1
Co., Ltd.
Shenzhen Sale of
Real estate
International houses and
and motor 29,850,000.0 364,637,646. 224,303,666. 61,227,920.0 13,015,799.1
Trade Center Subsidiary motor
transportatio 0 32 46 3 4
Car Industry transportatio
n
Co., Ltd. n
Shenzhen
International
Property Property
Trade Center 20,000,000.0 273,275,196. 87,485,021.3 361,605,690. 22,559,557.1
Subsidiary management management
Property 0 08 7 30 7
and leasing and leasing
Management
Co., Ltd.
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Inapplicable
Particulars about the main controlled and joint stock companies
VIII. Structured bodies controlled by the Company
√ Applicable □ Inapplicable
For details, see the information about the equity interests in the subsidiaries in 1, IX in Section X. Financial Report.
IX. Outlook of the Company’s future development
1. Risks faced by the Company, and countermeasures
(1) Market risks
In 2015, as the macro economy stepped into the “New Normal” period, except for the 1st line and a few 2nd tier
cities, the real estate industry in country wide was under big stock pressure. The central government took
de-stocking policies in succession in real estate market, including dropping the deposit reserve ratio and interest
rate, allowing a second child, and dropping down-payment ratio. Affected by those superimposed policies, the real
estate market obtained improvement for recovery at the end of the year. However, the development trends showed
obvious differentiation. For 1st tier cities, such as Shenzhen and Shanghai, the housing price rapidly got high and
ranked among the upper heights. But for 3rd and 4th tier cities that faced with the biggest de-stocking pressure, the
market recovery trend was not bright and clear.
The Company will continue to beef up the construction progress of its real estate projects to meet its schedules,
further improve its capability in operation and management of real estate projects, and monitor closely the
22
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
development progress so as to ensure the fulfillment of the business objectives for its real estate projects.
Meanwhile, it will draw up market-oriented marketing plans according to the actual situations and development
trends in different cities, and follow up and analyze market responses and changes so that it can adjust its
marketing strategies in time to promote its project sales.
(2) Industry risks
As for the real estate industry that has stepped into the silver age, project sales has been the most difficult part, the
costs for developing land and other resources have increasingly gone up, the profit space has obviously shrunk,
and the market competitions has intensified. In response to such condition, the transformation and differentiation
of real estate companies will speed up. As for middle and small size real estate companies, their weakness in fund,
management, and project resources is distinct, and therefore it’s difficult for them to go into the 1st tier and 2nd tier
core cities to obtain qualified lands, which makes them faced with the unprecedented pressure from profitability
and sustainability of development. Some companies will positively develop health and finance businesses while
building up the main businesses. However, some other companies have no choice but to exit the market. The real
estate companies are faced with the test of re-building competitive edges.
The Company is well aware of the influence of industry changes on its operation. While effectively carrying out
lean management in its real estate development, it will also coordinate its resources and look for more quality real
estate projects in a variety of ways. In the meantime, it will also boost the development of its sidelines of property
management, house rental, taxi service, etc. for business expansion and more profits. For example, it will carry
out the “Internet + Property Management” in an orderly manner for its property management business so that it
can make a better use of the Internet, big data and technology to increase its operating efficiency.
2. Main work plans for 2016
(1) The Company will pay close attention to project engineering nodes to make sure the project progress run on
schedule
The Company will sustainably strengthen and improve operation management capability for real estate projects,
and pay close attention to project engineering nodes to make sure the project progress run on schedule. The
Company will make its best efforts to make the SZPRD-Banshanyujing (Xuzhou) (1st phase) completed, recorded,
and lived at the end of December, make the indoor and outdoor decoration completed and the outer wall unloaded
for SZPRD-Hupanyujing (Yangzhou) (2nd Phase) before the end of December, make the SZPRD-Songhulangyuan
(Dongguan) completed and recorded before the end of December, make the SZPRD-Qianhai Bay project lived
before the end of December, and make the basement body capped, as well as make the body structure of podium
building come into construction for the SZPRD-Golden Collar Holiday project.
(2) The Company will adjust marketing strategies in due time, and positively broaden sales channels
The Company will closely get familiar with the marketing situation, adjust marketing strategies in due time,
positively broaden sales channels, optimize current marketing methods, seek for the appropriate occasions to
create hot sales points, give full play to internet marketing strategies, enlarge the resource of the internet customer
group, and at the same time, continue to make qualified products, and put more emphasis on product display. The
Company will earnestly research on excellent marketing strategies and schemes in the market, learn from the
marvelous points, try new marketing ways while combining the feature of our own products, so that the contract
sales volume of RMB1.7 billion can be realized.
(3) The Company will orderly carry forward the application of “Internet + Property” in practice, so as to seek for
new profit growth factor
With the continuous development of informatization technology and the change of life-style of clients, the
property and property management has come into a new developing period of datamation, facilitation, and
multi-functionalization. The upgrade of means and tools of mobile internet is bringing new opportunities for
23
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
property management.
The Company will take advantage of current client resources to make win-win cooperation by introducing
technology and the operation party, upgrade the property management way and method in quality and efficiency
by applying the mobile internet technology, and improve clients’ satisfaction by providing clients with qualified
service in better way, improving client experience and perception, and accordingly improving the image of
property management. While firming businesses, the Company will also intensify client stickiness, fully dig out
client value, enlarge client service edges, and explore new value space for property management.
X. Visits paid to the Company for purposes of research, communication, interview, etc.
1. In the reporting period
√ Applicable □ Inapplicable
Date Way of visit Type of visitor Main inquiry information
2015-01-15 By phone Individual About sales
2015-03-04 By phone Individual About disclosure date of annual report
About implementation schedule of profit
2015-05-07 By phone Individual
distribution
2015-07-09 By phone Individual About opening date of Dongguan project
About opening plan for Qianhai Bay
2015-10-15 By phone Individual
project
2015-12-25 By phone Individual About sales of Qianhai project, etc.
Times of visit 200
Number of visiting institutions 0
Number of visiting individuals 200
Number of other visiting entities 0
Significant undisclosed information disclosed,
No
revealed or leaked
24
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section V Significant Events
I. Profit distribution to the common shareholders & increase of the share capital from the
capital reserves
Formulation, execution or adjustments of the profit distribution policy for the common shareholders, especially the cash dividend
policy, in the reporting period
□ Applicable √ Inapplicable
Profit distribution plans (or preliminary plans) for the common shareholders and plans (or preliminary plans) for turning capital
reserves into share capital for the recent three years (including the reporting period)
Year Plan for profit distribution and turning capital reserves into share capital
2015 A cash dividend of RMB0.80 (tax included) for every 10 shares and share
capital increase from capital reserves
2014 A cash dividend of RMB2.20 (tax included) for every 10 shares and share
capital increase from capital reserves
2013 A cash dividend of RMB2.50 (tax included) for every 10 shares and share
capital increase from capital reserves
Cash dividends distributed to the common shareholders in the recent three years (including the reporting period)
Unit: RMB Yuan
Net profits Proportion in net
attributable to profits attributable
Ratio of cash
Cash dividend (tax shareholders of the to shareholders of Cash dividend in
Year dividend in other
included) Company in the Company in other forms
forms
consolidated consolidated
statements statements (%)
2015 47,678,327.36 156,819,966.71 30.64% 0.00 0.00%
2014 131,115,400.24 417,498,679.91 31.40% 0.00 0.00%
2013 148,994,773.00 300,840,563.81 49.53% 0.00 0.00%
The Company made profits in the reporting period and the profits distributable to the common shareholders of the Company was
positive, but it did not put forward a preliminary plan for cash dividend distribution:
□ Applicable √ Inapplicable
II. Preliminary plan for profit distribution and turning capital reserves into share capital for
the reporting period
√ Applicable □ Inapplicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB Yuan) (tax
0.8
included)
Increased shares for every 10 shares (share) 0
Total shares as basis for preliminary distribution 595,979,092
plan (share)
Total cash dividends (RMB Yuan) (tax included) 47,678,327.36
Distributable profits (RMB Yuan) 1,233,358,112.55
Percentage of cash dividends in total distributed 100.00%
profits (%)
About cash dividends
25
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.
Details about preliminary plan for profit distribution and turning capital reserves into share capital
According to the Company’s Articles of Association as well as the actual situation of its development and operation, the
preliminary plan of the Company for 2015 annual profit distribution is as follows: Based on the total 595,979,092 shares of the
Company as at 31 Dec. 2015, a cash dividend of RMB0.80 (tax included) will be distributed to all its shareholders for every 10
shares they hold, with the total cash dividends to be distributed amounting to RMB47,678,327.36. And the retained profits will be
carried over for distribution in the future. No capital reserves will be turned into share capital for 2015.
III. Fulfillment of commitments
1. Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors,
senior management staff or other related parties fulfilled in the reporting period or ongoing at the
period-end
□Applicable √ Inapplicable
No such cases in the reporting period.
2. Where there had been an earnings forecast for an asset or project and the reporting period was still
within the forecast period, explain why the forecast has been reached for the reporting period.
□Applicable √ Inapplicable
IV. Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder or its related parties
□ Applicable √ Inapplicable
No such cases in the reporting period.
V. Explanations given by the Board of Directors, the Supervisory Committee and the
independent directors (if any) regarding the “non-standard auditor’s report” issued by the
CPAs firm for the reporting period
□ Applicable √ Inapplicable
VI. YoY changes in the accounting policy, estimation and methods
□ Applicable √ Inapplicable
No such cases in the reporting period.
VII. Retrospective restatement due to correction of material accounting errors in the
reporting period
□ Applicable √ Inapplicable
No such cases in the reporting period.
VIII. YoY changes in the consolidation scope
□ Applicable √ Inapplicable
No such cases in the reporting period.
26
The 2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
IX. Particulars about engagement and disengagement of CPAs firm
CPAs firm engaged at present
Name of the domestic the CPAs firm Union Power CPAs Co., Ltd. (LLP)
Fee for the domestic the CPAs firm (RMB Ten
52
thousand)
Consecutive years of the audit services provided by
13
the domestic CPAs firm
Names of the certified public accountants from the
Wang Yu, Fan Guiming
CPAs firm
CPAs firm changed?
□ Yes √ No
Any CPAs firm, financial accountant or sponsor engaged for the audit of internal control:
√ Applicable □ Inapplicable
In the reporting period, the Company engaged Union Power CPAs Co., Ltd. (LLP) for its internal control audit and paid an internal
control audit fee of RMB230,000 to it for the year.
X. Possibility of listing suspension and termination after disclosure of this annual report
□ Applicable √ Inapplicable
XI. Bankruptcy and reorganization
□Applicable √ Inapplicable
There was no such situation of the Company during the reporting period.
XII. Significant lawsuit or arbitration
□Applicable √ Inapplicable
There was no such situation of the Company during the reporting period.
XIII. Punishment and rectification
□Applicable √ Inapplicable
There was no such situation of the Company during the reporting period.
XIV. Honesty situations of the Company, its controlling shareholders and actual controller
□ Applicable √ Inapplicable
XV. List of the execution of the stock incentive plan, ESOP, or other Staff incentives
□ Applicable √ Inapplicable
No such cases in the reporting period.
27
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
XVI. Significant related-party transactions
1. Related-party transactions relevant to routine operation
□ Applicable √ Inapplicable
No such cases in the reporting period.
2. Related-party transactions regarding purchase and sales of assets
□ Applicable √ Inapplicable
No such cases in the reporting period.
3. Related-party transactions common external investment
□ Applicable √ Inapplicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
√ Applicable □ Inapplicable
Whether was any contract related to the non-operating credits and liabilities with related parties?
√ Yes □ No
Creditors’ rights receivable of the related parties
Newly
Recovered
increased Interests of
amount of
Whether Opening amount of the Closing
the
there was balance the reporting balance
Related Relationshi reporting Interests
Reason non-operati (RMB Ten reporting period (RMB Ten
party p period rate
ng funds Thousand period (RMB Ten Thousand
(RMB Ten
occupation Yuan) (RMB Ten Thousand Yuan)
Thousand
Thousand Yuan)
Yuan)
Yuan)
Anhui 30%
Business
Nanpeng equities
circulating No 733 805
Papermakin held by the
funds
g Co., Ltd. Company
Shenzhen
Wufang 26%
Business
Pottery & equities
circulating No 175 175
Porcelain held by the
funds
Industrial Company
Co., Ltd.
28
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen
Internationa
38.33%
l Trade Business
equities
Center circulating No 235 0
held by the
Industrial funds
Company
Developme
nt Co., Ltd.
Controlled
by the
Shenzhen parent Intercourse
No 91 91
Guesthouse company of funds
the
Company
Controlled
Shenzhen
by the
Investment
parent Intercourse
Property No 13 13 0
company of funds
Developme
the
nt Co., Ltd.
Company
Influences of the related
Were all within the risks control of the Company and not influenced the operating results and the
creditors’ rights on the
financial conditions. The changes of Anhui Nanpeng Papermaking Co., Ltd. during the reporting period
operating results and the
were due to the translation of the foreign currency exchange rate with Shenzhen International Trade
financial conditions of
Center Industrial Development Co., Ltd. due to the written-off and the roll out.
the Company
Creditors’ rights payable of the related parties
Newly
Returned
increased Interests of
Opening amount of Closing
amount of the reporting
balance the reporting balance
the reporting period (RMB
Related party Relationship Reason (RMB Ten period (RMB Interests rate (RMB Ten
period (RMB Ten
Thousand Ten Thousand
Ten Thousand
Yuan) Thousand Yuan)
Thousand Yuan)
Yuan)
Yuan)
Shenzhen Jifa
Intercourse
Warehouse Joint venture 2,630 2,630
funds
Co., Ltd.
Shenzhen
Tian’an Intercourse
Joint venture 411 110 521
International funds
Building
29
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Property
Management
Co., Ltd.
Influences of the related
liabilities on the operating Were all within the risks control of the Company and not influenced the operating results and the
results and the financial financial conditions.
conditions of the Company
5. Other significant related-party transactions
□ Applicable √ Inapplicable
No such cases in the reporting period.
XVII. Significant contracts and their execution
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Inapplicable
No such cases in the reporting period.
(2) Contract
□ Applicable √ Inapplicable
No such cases in the reporting period.
(3) Lease
□ Applicable √ Inapplicable
No such cases in the reporting period.
2. Significant guarantees
√ Applicable □ Inapplicable
(1) Guarantees provided by the Company
Unit: RMB Ten Thousand Yuan
Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)
Disclosure Amount for Actual Actual Type of Period of Executed Guarante
Guaranteed party
date of guarantee occurrence date guarantee guarantee guarantee or not e for a
30
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
relevant (date of amount related
announcem agreement) party or
ent on the not
guarantee
amount
Total actual occurred
Total external guarantee line
amount of external
approved during the reporting 0 0
guarantee during the
period (A1)
reporting period (A2)
Total external guarantee line that Total actual external
has been approved at the end of the 0 guarantee balance at the end 0
reporting period (A3) of the reporting period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosure
date of Guarante
Actual
relevant Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party announcem guarantee related
guarantee (date of guarantee guarantee or not
ent on the amount party or
agreement)
guarantee not
amount
Dongguan
International Trade
Joint liability
Center Changsheng 21 Apr.
44,000 11 Jan. 2013 12,924 guarantee; 3 years No Yes
Real Estate 2012
pledge
Development Co.,
Ltd.
Shenzhen Properties
& Resources 24 Apr. Joint liability
45,000 20 Jun. 2014 14,484 3 years No Yes
Development (Group) 2013 guarantee
Ltd.
Total actual occurred
Total guarantee line approved for
amount of guarantee for the
the subsidiaries during the 15,000 13,647
subsidiaries during the
reporting period (B1)
reporting period (B2)
Total actual guarantee
Total guarantee line that has been
balance for the subsidiaries
approved for the subsidiaries at the 209,000 27,408
at the end of the reporting
end of the reporting period (B3)
period (B4)
Guarantees provided by the subsidiaries for its subsidiaries
Disclosure Amount for Actual Actual Type of Period of Executed Guarante
Guaranteed party
date of guarantee occurrence date guarantee guarantee guarantee or not e for a
31
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
relevant (date of amount related
announcem agreement) party or
ent on the not
guarantee
amount
Total actual occurred
Total guarantee line approved for
amount of guarantee for the
the subsidiaries during the 0 0
subsidiaries during the
reporting period (C1)
reporting period (C2)
Total actual guarantee
Total guarantee line that has been
balance for the subsidiaries
approved for the subsidiaries at the 0 0
at the end of the reporting
end of the reporting period (C3)
period (C4)
Total guarantee amount provided by the Company (total of the above-mentioned three kinds of guarantees)
Total actual occurred
Total guarantee line approved
amount of guarantee during
during the reporting period 15,000 13,647
the reporting period
(A1+B1+C1)
(A2+B2+C2)
Total guarantee line that has been Total actual guarantee
approved at the end of the balance at the end of the
209,000 27,408
reporting period reporting period
(A3+B3+C3) (A4+B4+C4)
Proportion of total guarantee amount (A4+B4+C4) to the net
13.06%
assets of the Company
Of which:
Amount of guarantee for shareholders, actual controller and
0
related parties (D)
Amount of debt guarantee provided for the guaranteed party
whose asset-liability ratio is not less than 70% directly or 12,924
indirectly (E)
Part of the amount of the total guarantee over 50% of net assets
0
(F)
Total amount of the above three guarantees (D+E+F) 12,924
The external security of the Company was of RMB274.08
million, of which: the guarantee that the Company provided for
the subsidiaries was of 129.24 million, the guarantee that the
Explanation on the occurred warranty liability or possible bearing
subsidiaries provided for the parent company was of
joint responsibility of liquidation due to immature guarantee (if
RMB144.87 million and the Company and the subsidiaries did
any)
not provide any guarantee for any company except for the
consolidated statement and up to the period-end, the operation
of the subsidiaries is normal with the loans in the normal state
32
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
that of which the risks are in controllable scope.
Explanation on provision of guarantees for external parties in
N/A
violation of the prescribed procedure (if any)
Explanation on particulars about the guarantees by complex ways
(2) Illegal external guarantee
□ Applicable √ Inapplicable
No such cases in the reporting period.
3. Cash assets management entrustment
(1) Wealth management entrustment
□ Applicable √ Inapplicable
No such cases in the reporting period.
(2) Entrustment loans
□ Applicable √ Inapplicable
No such cases in the reporting period.
4 Other significant contracts
□ Applicable √ Inapplicable
No such cases in the reporting period.
XVIII. Other significant events
□ Applicable √ Inapplicable
No such cases in the reporting period.
XIX. Significant events of subsidiaries
□ Applicable √ Inapplicable
XX. Social responsibilities
√ Applicable □ Inapplicable
I. Actively help and care those with difficulties
The Party Committee of Shenzhen Properties & Resources Development (Group) Ltd. carried out the 10th donation themed “Together
with State-owned Enterprises to Help and Care the Needed”, namely, “Care for Sanitation Workers”. There were 1112 Party
members and staff present and raised 24310.50 of funds in total. The Committee decided to transfer 5,000 of the donation to the
33
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
account of Shenzhen Project Care Foundation for sanitation workers, and the other to “Help Poverty Fund” of the Group for helping
staff with difficulties only. SX Company under the Group also distributed 23,000 from its Driver Subsidies to help the disabled
drivers due to traffic accidents. Shenzhen International Trade Center Car Industry Co., Ltd. under the Group distributed 36,000 from
its Driver Subsidies and Labor Union to help the drivers with serious diseases and families of drivers lost due to diseases. During
holidays, the Group visited 7 staff with difficulties, 6 suffering from critical diseases including cancer and uremia. Besides, Shenzhen
International Trade Center Car Industry Co., Ltd. and SX Company also visited 910 and 270 taxi drivers respectively. SX Company
even took special care for 4 taxi drivers with difficulties.
II. Vigorously be engaged in public welfare
(I) Passionately carry out blood donation
International Trade Center Management Office and Fumin Xincun Management Office of International Trade Center Property
Management Co., Ltd. under the Group, together with Huangcheng Property Company and Shenzhen International Trade Center Car
Industry Co., Ltd. carried out 5 times of blood donation by Party members, their staff, taxi drivers and community residents through
various themes including Party Member Plan and Memorial for the Chinese People’s War of Resistance against Japanese Aggression
throughout the year, with 213 successfully donating 75,700ml blood in total.
(II) Provide free ride service for patients around hospitals and students for National College Entrance Examination
1. On 5 Mar., Shenzhen International Trade Center Car Industry Co., Ltd. launched a series of activities named “Learn from Lei Feng
to Show Your Love”. Its Caring Driver Team provided free ride for patients and their families around Shenzhen First People’s
Hospital and The University of Hong Kong – Shenzhen Hospital, reaching more than 200 in that day.
2. On 7 and 8 Jun., the Caring Driver Team of Shenzhen International Trade Center Car Industry Co., Ltd. and SX Company
respectively assigned 60 and 25 cars to offer free ride for more than 300 students attending National College Entrance Examination
in Shenzhen No.2 Experimental School and Shenzhen Hongling Middle School.
(III) Energetically organize volunteers to offer handy service for the public
1. The Group energetically organized volunteers to offer handy services, including providing information, guidance and check, at
Luohu Coach Station and Futian Coach Station on Spring Festival, Tomb-sweeping Day and Labor’s Day.
2. The Group also organized volunteers to provide services, like guidance and logistics, to attendants in several large-scale activities,
such as the Conference on International Exchange of Professionals and International Maker Week.
(IX) Volunteer in environmental protection
The Group organized all staff to launch a voluntary donation of the used clothing titled “Green Pioneer”. In this activity, the
volunteers sorted out and packed such clothing over 2200 pieces that were all donated to environmental protection organ for donation
and recycling.
Does the listed company or its subsidiaries belong to the heavily polluting industries stipulated by the environmental protection
authorities of the country?
□ Yes √ No □ Inapplicable
XXI. Corporation bonds
Whether existing corporation bonds public issued and listed in Stock Exchange and maturity or maturity but not fully paid on the
approval report date of annual report
No
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section VI. Share Changes & Particulars about the Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the change Increase/decrease (+, -) After the change
Capitaliza
New tion of
Number Proportio Bonus Number Proportio
shares public Other Subtotal
of shares n shares of shares n
issued 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
2. Changes in restricted shares
□ Applicable √ Inapplicable
II. Issuance and listing of securities
1. Issuance of securities (excluding preferred stock) in reporting period
□ Applicable √ Inapplicable
2. Explanation on changes in share capital & the structure of shareholders, the structure of assets and
liabilities
□ Applicable √ Inapplicable
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
3. Existent shares held by internal staffs of the Company
□ Applicable √ Inapplicable
III. Particulars about the shareholders and actual controller
1. Total number of shareholders and their shareholding
Unit: share
Total number of
preferred
stockholder with
Total number of Total number of
vote right
Total number shareholders on preferred
restored on the
of shareholders the 30th trading stockholder with
38,372 43,573 0 30th trading day 0
at the reporting day before the vote right restored
before the
period disclosure date of (if any) (see notes
disclosure date of
the annual report 8)
the annual report
(if any) (see
notes 8)
Shareholding of shareholders holding more than 5% shares
Number Increase Number Number Pledged or frozen shares
of and of shares of shares
Holding sharehold decrease held held not
Name of Nature of
percentag ing at the of shares subject to subject to
shareholder shareholders Status of shares Amount
e end of the during trading trading
reporting reporting moratoriu moratoriu
period period m m
Shenzhen
Construction
State-owned 323,796,3 293,997,3 29,798,95
Investment 54.33%
corporation 24 70 4
Holdings
Corporation
Shenzhen
Investment State-owned 56,582,57 56,582,57
9.49%
Management corporation 3 3
Corporation
Shenzhen
Duty-Free Domestic
Commodity non-state-owned 0.29% 1,730,300 1,730,300
Enterprises Co., corporation
Ltd.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Domestic
Zhou Yuling 0.26% 1,589,398
individual
Domestic
Zhang Jiao 0.25% 1,436,600
individual
Domestic
Mai Furong 0.23% 1,356,200
individual
Overseas
Yang Yaochu 0.20% 1,115,460
individual
Domestic
Chen Liying 0.18% 1,076,051
individual
Domestic
Wei Chunling 0.15% 924,000
individual
Domestic
Huang Qianwen 0.15% 900,000
individual
Explanation on associated relationship The first and second principal shareholders of the Company are managed by Shenzhen
or/and persons acting in concert Investment Holding Corporation, the actual controlling shareholder of the Company. And
among the above-mentioned the Company does not know whether there are related parties or acting-in-concert parties
shareholders: among the other 8 shareholders.
Particulars about shares held by the top ten non-restricted share holders
Number of non-restricted shares held at the Type of shares
Name of shareholder
period-end Type of shares Number
Shenzhen Construction Investment RMB ordinary
29,798,954 29,798,954
Holdings Corporation shares
RMB ordinary
Zhou Yuling 1,589,398 1,589,398
shares
RMB ordinary
Zhang Jiao 1,436,600 1,436,600
shares
Domestically
Mai Furong 1,356,200 listed foreign 1,356,200
shares
Domestically
Yang Yaochu 1,115,460 listed foreign 1,115,460
shares
Domestically
Chen Liying 1,076,051 listed foreign 1,076,051
shares
RMB ordinary
Wei Chunling 924,000 924,000
shares
Huang Qianwen 900,000 RMB ordinary 900,000
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
shares
Domestically
Cao Yifan 821,811 listed foreign 821,811
shares
BEIJING FENGDAN INVESTMENT RMB ordinary
720,000 720,000
CO., LTD. shares
Explanation on associated relationship
or/and persons acting in concert The first principal shareholder of the Company is managed by Shenzhen Investment
among the top ten tradable Holding Corporation, the actual controlling shareholder of the Company. Other than that,
shareholders and between the top ten the Company does not know whether there are related parties or acting-in-concert parties
tradable shareholders and the top ten among the other 9 shareholders.
shareholders
Did any of the top 10 common shareholder or the top 10 non-restricted common shareholders of the Company conduct any
promissory repo during the reporting period?
□ Yea √ No
No such cases in the reporting period.
2. Particulars about the controlling shareholder
Nature of controlling shareholder: local state-owned holding
Type of controlling shareholder: corporation
Name of controlling Legal representative
Date of establishment Organization code Business scope
shareholder / company principal
To execute the investment,
operating and management
of the state-owned equities
of the wholly-owned,
controlling and
stock-participating
enterprises through the
methods such as the
restructuring integration,
Shenzhen Investment
Xiong Peijin 13 Oct. 2004 914403007675664218 capital operation and assets
Holdings Corporation
disposal; to engage in the
property development and
operation business within
the scale of legally acquire
the land use right; to
execute the policy-based
and strategic investment
according to the
requirements of the
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
SASAC; to provide the
guarantee of the municipal
state-owned enterprises;
other business developed
with the authority from the
Municipal State-owned
Assets Supervision and
Administration
Commission.
Major wholly-owned or controlled enterprises: 1. Guosen Securities Co., Ltd. 2. Shenzhen Century
Science and Technology Investment Co., Ltd. (SIHC) 3. Shenzhen Urban Construction Investment
& Development (Group) Co., Ltd 4. Shenzhen Special Economic Zone Real Estate & Propertiest
(Group) Co., Ltd 5. Shenzhen High-Tech Investment & Guaranty Co., Ltd. (HTI) 6. Shenzhen
Properties & Resources Development (Group) Ltd. (SZPRD) 7. Shenzhen Tongchan Group Co.,
Ltd. 8. Shenzhen Small & Medium Enterprises Credit Financing Guarantee Group Co., Ltd.
(SZCGC) 9. Shenzhen Shenfubao (Group) Co., Ltd. 10. Shenzhen Yue Tong Construction
Engineering Co., Ltd. 11. Shenzhen Textile (Holdings) Co., Ltd. 12. Shenzhen Jian (Group) Co.,
Ltd. 13. Shenzhen Shentou Education Co., Ltd. 14. Shenzhen Investment Holdings Co., Ltd. 15.
Shenzhen General Institute of Architectural Design And Research Co., Ltd. (SADI) 16. Shenzhen
Convention & Exhibition Center Management Co., Ltd. (SZCEC) 17. China Academy of Science &
Technology Development (AST) 18. Shenzhen Silver Lake Resort Hotel Limited 19. Shenzhen
International Tendering Co., Ltd. 20. Shenzhen Institute of Building Research Co., Ltd. 21.
Shenzhen Shentou Property Management Ltd. 22. Shenzhen Information Pipeline Co., Ltd. 23.
Shenzhen Environmental Engineering Science and Technology Center (EETC) 24. The Orchid
Shareholdings of the
Conservation & Research Center of Shenzhen 25. Shenzhen 51emap Information Co., Ltd. 26.
controlling shareholders in
Shenzhen Foreign Trade and Economic Investment Co., Ltd. 27. Shenzhen Yunhai Villa Hotel
other listed companies at
Management Ltd. 28. Shenzhen Investment Holdings Co., Ltd Preschool Management Center 29.
home and abroad in the
Li Yuan Hotel Shenzhen 30. SZ Youth 31. Shenzhen Mangrove 32. Shenzhen Port Management
reporting period
Service Center 33. Shenzhen Transportation Service Center 34. Shenzhen Comprehensive
Transportation Design Institute 35. Shenzhen Highway Traffic Engineering Inspection & Test
Center 36. Shenzhen Cantonese Opera Troupe 37. Shenzhen Grand Theater 38. Shenzhen Concert
Hall 40. Shenzhen Road & Bridge Construction Group Co., Ltd. 41. Wuzhou Guest House
Shenzhen 42. Shenzhen Sports Center Operating Co., Ltd. 43. Shenzhen Sports Fashion Magazine
44. Special Zone Economy 45. Special Zone Literature 46. Shenzhen Talent Exchange Service
Center 47. Shenzhen Municipal People's Congress Cadre Training Center 48. Shenzhen Justice
Training Center 49. PPSZ Investigative Techniques Training Base 50. Shenzhen Water Resources
Planning & Design Institute 51. Shenzhen Real Estate Management Training Center 52. Housing &
Real Estate 53. Shenzhen Shanshui Hotel 54. Shenzhen Urban Transport Planning Center 55.
Shenzhen Hazardous Waste Treatment Station 56. Shenzhen Guesthouse 57. Manger 58. China
Opening Journal 59. Shenzhen Local Taxation Bureau Dongpeng Printing Plant 60. Shenzhen
Foreign Economy & Trade Service Center (FETSC) 61. IT Times 62. Women Magazine 63.
Shenzhen Women & Children Development Center 64. Housing and Construction Bureau of
Shenzhen Municipality Training Center
Change of the controlling shareholder in the reporting period
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
□ Applicable √ Inapplicable
No such cases in the reporting period.
3. Particulars about the actual controller
Nature of actual controller: local state-owned assets management institutions
Type of actual controller: corporation
Legal
representative / Date of
Name of actual controller Organization code Business scope
company establishment
principal
(I) Implementing and practicing
state, provincial and municipal
laws and regulations related to
management on state-owned
assets, drafting local laws,
regulations, and policies about
management on state-owned
assets, and organizing
implementation activities upon
approvals. Intending to draft
supervision systems and
methods about operational
state-owned assets, and
organizing implementation
activities.
Shenzhen Municipal
(II) On the basis of authorization
State-owned Assets Supervision Gao Zimin N/A
from municipal government,
and Administration Commission
fulfilling duties of investors
according to laws and
regulations, and protecting the
rights and interests of investors
for state-owned assets according
to laws
(III) Taking charge of
Party-building work for
enterprises in its supervision and
organs entrusted
(IV) Undertaking the
supervision over state-owned
assets of municipal enterprises,
strengthening management on
state-owned assets, further
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
perfecting the management
mechanism for state-owned
assets with the unification of
power, obligation, and duties, as
well as the combination of
managing assets, people, and
affairs
(V) Being responsible for
hedging and appreciation of the
value of state-owned assets of
enterprises in its supervision,
establishing and perfecting the
index system for hedging and
appreciation of the value of
state-owned assets, setting out
assessment standards,
supervising on hedging and
appreciation of the value of
state-owned assets of enterprises
in its supervision by statistics,
audit, and check, and urging
enterprises in its supervision to
fulfill social duties
(VI) In charge of researching
and preparing the general
planning for transformation and
development of state-owned
enterprise in its supervision,
guiding and boosting
transformation and
re-organization of state-owned
enterprises, prompting the
construction of modern
enterprise system, carrying
forward operation of
state-owned capital, pushing the
strategic adjustment on
state-owned economy layout and
structure, and making
state-owned capital play the role
in significant industries and key
fields including national
security, national economy
lifeline, etc.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(VII) Directing and propelling
enterprises in its supervision to
perfect company governance
structure, intensifying
construction of Board and
Supervision Committees of
enterprises in its supervision,
and forming the governance
mechanism with specific duties,
coordinating operation, and
effective counterbalance
(VIII) Assuming the
management work of income
distribution for enterprises in its
supervision, and standardizing
the income distribution and
position-related consumption
over people in charge of
enterprises in its supervision
(IX) In line with rules of
municipal Party committee,
appointing and dismissing,
appraising, as well as, in
accordance with business
performance, rewarding and
punishing people in charge of
enterprises in its supervision by
applying legal procedures,
establishing the mechanism of
selecting and choosing
candidates meeting the
requirements of socialist market
economy system and modern
enterprise system, and perfecting
the incentive and control system
for operators
(X) Being responsible for
appointing or recommending
board directors, supervisors,
CFOs to enterprises in its
supervision, and auditing on
economic duties of people in
charge of enterprises in its
supervision according to rules
42
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
about management authorization
to people in charge of
enterprises
(XI) In charge of preparing the
draft of budgets and final
accounts of annual state-owned
capital of enterprises in its
supervision, including it to the
government budget system,
organizing the execution upon
approvals, and collecting
earnings of state-owned capital
handed in by enterprises in its
supervision
(XII) In charge of strategy
research, policy formulation,
and guidance for transformation,
development, and asset
management related to
collectively-owned enterprises
(XIII) Assuming other
assignments assigned by
municipal government and
superior departments
List of the equities of the other
domestic and overseas listed
Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen Zhenye,
companies controlled during the
Shenzhen Tagen, Agricultural Products and SDGI.
reporting period by the actual
controller
Change of the actual controller during the reporting period
□ Applicable √ Inapplicable
The actual controller did not change during the reporting period
The ownership and controlling relationship between the actual controller of the Company and the Company is detailed as follows
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
The actual controller controlled the Company by entrustment or other assets management methods
□ Applicable √ Inapplicable
4. Other institutional shareholders owning over 10% shares
□ Applicable √ Inapplicable
5. Particulars about restriction of reducing holding-shares of controlling shareholders, actual controller,
restructuring parties and other commitment entities
□ Applicable √ Inapplicable
44
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section VII. Preference Shares
□ Applicable √ Inapplicable
No such cases in the reporting period.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section VIII. Directors, Supervisors, Senior Management Staff &
Employees
I. Changes in shares held by directors, supervisors and senior executives
Amount Amount
Amount
Shares of shares of shares Other
of shares
held at increased decreased increase/d
Office Tenure Ending held at
Name Sex Age Start date the at the at the ecrease
title status date the
year-begi reporting reporting changes
period-en
n (share) period period (shares)
d (share)
(share) (share)
Chen Board 30 Jun.
Current Male 59 0 0 0 0 0
Yugang Chairman 2006
Director, 15 Jul.
Wei Zhi Current Male 59 0 0 0 0 0
GM 2008
Director,
Chairman
Liu 22 Dec.
of the Current Male 58 0 0 0 0 0
Guangxin 2007
Labor
Union
Gong Director, 1 Jun.
Current Male 48 0 0 0 0 0
Sixin CFO 2011
1 Dec.
Wen Li Director Current Female 47 0 0 0 0 0
2007
Guo 30 Jun.
Director Current Male 43 0 0 0 0 0
Liwei 2006
Independ
22 Oct.
Li Jianxin ent Current Male 62 0 0 0 0 0
2014
Director
Independ
Liu 22 Oct.
ent Current Male 54 0 0 0 0 0
Ninghua 2014
Director
Independ
22 Oct.
Zhang Qi ent Current Male 38 0 0 0 0 0
2014
Director
Chairman
Dai 3 Jun.
of the Current Male 54 0 0 0 0 0
Xianhua 2011
Superviso
46
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
ry
Committe
e
Zhang Superviso 22 Oct.
Current Male 41 0 0 0 0 0
Manhua r 2014
Wang Superviso 3 Jun.
Current Female 54 0 0 0 0 0
Xiuyan r 2011
Wang Superviso 3 Jun.
Current Female 46 0 0 0 0 0
Qiuping r 2011
Superviso
r,
Manager
Wang 3 Jun.
of Cost Current Female 41 0 0 0 0 0
Qiuping 2011
Control
Departme
nt
Superviso
Zhang 22 Oct.
r, Audit Current Male 50 0 0 0 0 0
Gejian 2007
Manager
Vice GM,
Person-in
Wang 22 Oct. 8 Dec.
-charge of Current Male 50 0 0 0 0 0
Hangjun 2007 2015
Financial
Affairs
8 Feb.
Li Zipeng Vice GM Current Male 51 0 0 0 0 0
2012
Total -- -- -- -- -- -- 0 0 0 0 0
II. Particulars about changes of Directors, Supervisors and Senior Executives
Name Office title Type Date Reason
Li Zipeng Vice GM Former 8 Dec. 2015 Initiatively resigned
III. Resumes of important personnel
Main working experience of current directors, supervisors and senior management staff
Work experience of current directors, supervisors and senior executives over the recent five years
Members of the Board of Directors:
Mr. Chen Yugang, was born in Sep. 1957, Postgraduate degree, is senior Political Worker. He gains rich
experience in government administrative management and enterprise management over 20 years. He held some
important posts in many municipal departments. He served as GM and Secretary of the CPC in Shenzhen Shenhua
47
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Group Company. Also, he served as GM and Vice Secretary of the CPC in Shenzhen Xianke Enterprise Group,
and Deputy General Manager of Shenzhen Investment Holdings Co., Ltd. From May 2006, he has served as
Secretary of CPC in the Company. And in June 2006, he was elected as Chairman of the Board of the Company.
Now he acts as Secretary of CPC and Chairman of the Board in the Company.
Mr. Wei Zhi, was born in Nov. 1957, Bachelor Degree, holds the title of interpretation. He gains rich experience
in enterprise management for over 20 years. He ever worked in Shenzhen International Engineering Co., Ltd. as
Deputy Manager of Overseas Department, in Shenzhen Zhongshen Overseas Development Company as Manage
of Labor Affairs Department and Deputy General Manager, in China Shenzhen International Cooperation (Group)
Co., Ltd. in Hong Kong Liyuan Company as Director and General Manager; in Shenzhen Construction Investment
Holdings Corporation as Deputy Manager of Overseas Department, in Shenzhen Construction Investment
Holdings Corporation as Deputy Manager of Contract Department, in Shenzhen Tonge (Group) Co., Ltd. as
Assistant General Manager and Deputy General Manager, in Tonge Real Estates Development Company as
Chairman of the Board and General Manager. Since October 2007, he took the posts of the Vice Secretary of CPC
and Standing Deputy General Manager in the Company. Since 20 Dec. 2007, he held the posts of Director, Vice
Secretary of CPC and GM of the Company. Since 15 Jul. 2008 to present, he acts as Vice Secretary of CPC,
Director and GM of the Company.
Mr. Liu Guangxin, was born in May 1958, College Diploma, is an Economist. He gains experience in enterprise
management over 10 years. Since May 1989, he held a job in the Company as Director of the Office in Properties
Engineering Development Company, General Manager of International Trade Center Industrial Development
Company, General Manager of International Trade Center Food Company, Deputy Director and Director of the
GM Office of the Company, as well as Manager of Operation and Management Department of the Company.
Since October 2007, he took the posts of Vice Secretary of CPC and Secretary of Discipline Inspection Committee
in the Company. Since November 2007, he was appointed as Chairman of the Labor Union of the Company. Now
he acts as Vice Secretary of CPC, Director, Secretary of Discipline Inspection Committee as well as Chairman of
Labor Union in the Company.
Mr. Gong Sixin, was born in Feb. 1968, Master of Economics, Senior Accountant. He has profound experiences
in financial accounting management. He ever took posts of CFO of Shandong Weigao Medical Polymer Company
Limited, of CFO of Shenzhen 3Nod Technology Co., Ltd. as well as CFO of Shenzhen Jiehe Technology Co., Ltd.
Since Sep. 2010, he kept acting as CFO of the Company. Since June 2011, he is acting as director and CFO of the
Company.
Ms. Wen Li, born in Dec. 1969, Postgraduate Degree, Master Degree, is an Economist as well as Engineer. She
gains experience in enterprise management over 10 years. She ever worked in Shenzhen Fantasia Investment
Development as Assistant of Standing Deputy General Manger, Manager of Project Department, as well as
Manager of Market Planning Department. Since July 2005, she worked in Shenzhen Investment Holdings Co., Ltd.
She was ever appointed as Deputy Department Director of Investment Department of Shenzhen Investment
Holdings Co., Ltd. Now she acts as Vice Director of Management Center of Construction Project of Shenzhen
Investment Holdings Co., Ltd., Director of the Company.
Mr. Guo Liwei, was born in Apr. 1973, Postgraduate Degree, is a master of Law. He once successively held the
posts in General Department of Ping An Insurance (Group) Company of China as legal consultant, and Shenzhen
Investment Management Corporation as Business Manager of Legal Affairs Department. Since October 2004, he
worked in Shenzhen Investment Holdings Co., Ltd as Deputy GM of Legal Affairs Department. He now acts as
Manager of the First Enterprise Management Department in Shenzhen Investment Holdings Co., Ltd. and Director
of the Company.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Independent Directors:
Mr. Li Jianxin, was born in Sep. 1954, University Degree, member of Communist Party of China. He graduated
from Zhongnan University of Economics and Law in 1978; Once held the post in Wuhan Bureau of Statistics;
Engaged in the scientific research in Hubei Academy of Social Sciences, Institute of Economics in 1980; Acted as
Deputy Director of Hubei Academy of Social Sciences， Institute of Agricultural Economics in 1988; Acted as
Standing Deputy Director, Associate Professor and Postgraduate Tutor in 1992; Transferred into Shenzhen
Newrand Securities Investment Consulting Co., Ltd. and acted as Marketing Manager in 1995; Transferred into
Shenzhen Academy of Social Sciences in 1996, and had served successively as Deputy Director, Director,
Associate Professor in Institute of Economics. He acted as Independent Director of Shenzhen Kondarl (Group)
Co., Ltd. from 2001 to 2006; Acted as Independent Director of Shenzhen Tagen Group Co., Ltd. from 2003 to
2009; Acted as Independent Director of Shenzhen Kondarl (Group) Co., Ltd. from 2009 to present. He recently
acted as Chairman and Associate Professor in Shenzhen Academy of Social Sciences, Center of Open Economics,
and the Independent Director of the Company.
Mr. Liu Ninghua, born in Jun. 1962, bachelor’s degree, engineer, communist. He was once the Shenzhen
Investment Banking Vice GM and then GM in China Orient Trust Investment Co., Ltd. And he has been working
in the Law Compliance Department in China Galaxy Securities Co., Ltd. since Aug. 2013.
Mr. Zhang Qi, born in Jan. 1978, graduated from the Accounting Faculty in Zhongnan University of Economics
and Law, professor, doctor, doctoral supervisor, superintendent of a governmental accounting institution, deputy
head of the accounting department, China’s leading talent in accounting honored by the Ministry of Finance,
registered accountant in China, Hubei New Century High Level Engineering Talent (level 2), correspondence
commentator in the National Natural Science Foundation of China, anonymous checker in the Magazine, vice chairman of the Government and NPO Accounting Specialized Committee in the
Accounting Society of China, director in the National Budget and Accounting Research Institute of China,
consultant expert in the Government Accounting Standards Committee under the Ministry of Finance, deputy head
of the accounting department and associate professor in Zhongnan University of Economics and Law from 2009
to 2012, and doctor and doctoral supervisor in that university and superintendent of a governmental accounting
institution from 2012 till now.
Members of the Supervisory Committee:
Mr. Dai Xianhua, was born in April 1962, doctor degree, Party member of CPC. He gains adequate work
experience of over 20 years. He worked as a lecturer in School of Business and Economy of Zhongnan University
of Economics and Law from 1986 to 1989. He took posts of editor of department of theory and review, assistant
director, vice director in Shenzhen Economic Daily from 1992 to 1997; worked in Shenzhen State Assets
Administration Committee (hereinafter referred as “Shenzhen SAC”) as Vice Section Chief of Assets Department,
and Assets Management Department, Vice Director, investigator of Office, and investigator of Appraisal and
Distribution Department from 1997 to 2011. Now he is Chairman of the Supervisory Committee of the Company.
Ms. Wang Xiuyan, was born in Aug. 1962, MBA degree, is an accountant. From May 1997 to Sep. 2004, she
worked in Shenzhen Investment Management Corporation, once acted as secretary of the Supervisory Committee
Office, Business Manager of Audit Department, Director of Women’s Labor Union, Senior Business Manager of
Audit Department and Supervision Department; from Oct. 2004 to Dec. 2007, she acted as manager of
Supervision and Inspection Department in Shenzhen Investment Holding Co., Ltd.; from Dec. 2007 to present, she
is manager of Audit Department (the Supervisory Committee Office) in Shenzhen Investment Holding Co., Ltd.
Currently, she is the Deputy Head of the Audit & Risk Management Department (Office of the Supervisory
Committee) in Shenzhen Investment Holding Co., Ltd. as well as a supervisor of the Company.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Mr. Zhang Manhua, born in Feb. 1975, master’s degree, studied and taught in Central South University from
1992 to 2004; Business Manager, Senior Manager in the Investment Center of Konka Group and concurrently
worked as the Company Secretary for Shenzhen Jvlong Optoelectronic Co., Ltd. from 2004 to 2010; Vice
Investment Manager and Investment Manager in Shenchao Technological Investment Co., Ltd. from 2010 to 2013;
and Senior Supervisor in the Enterprise Department I in Shenzhen Investment Holding Co., Ltd. since 2013.
Ms. Wang Qiuping, was born in Jan. 1970, Bachelor degree, is a senior economist. Since 1992, she worked for
the Company, she ever took post in GM office, Plan and Finance Department and Operation and Management
Department for comprehensive operation and management as well as planning and management. Now she is
Supervisor, Manager of Development and Management Department of the Company.
Mr. Zhang Gejian, was born in September 1975, Bachelor Degree, is an Accountant as well as Auditor. He was
engaged in internal auditing work in Audit Department of the Company since July 1997. Now he acts as
Supervisor of the Company and concurrently Manager of Audit Department.
Senior executives:
Mr. Wang Hangjun, was born in Nov. 1966, graduated from Zhongnan University of Economics with a master
degree of economy. He is a senior auditor and has over 20 years corporate management experience. He ever took
post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; of Vice Minister, Minister of Audit
Department of Shenzhen Investment and Management Company; of Vice Minister, Minister of Supervision
Department of Shenzhen Investment and Management Company; of Minister of Audit and Inspection Department
of Shenzhen Investment Holding Co., Ltd. He has been Deputy GM of the Company since Oct. 2007.
Mr. Fan Weiping, born in Apr. 1965, graduated from Southwest University of Political Science & Law in 1988,
postgraduate degree. He used to work in Shenhua Group successively as the Chief of the Legal Affairs Section in
the Supervisory and Audit Department; the Vice Manager and Manager of the Legal Affairs Department; the GM
Assistant; and the Chief Legal Adviser. Since Jan. 2009, he has become the Company Secretary and the Chief
Legal Adviser for the Company. And he has been a Vice GM, the Company Secretary and the Chief Legal Adviser
for the Company since Feb. 2012.
Post-holding in shareholder units
√ Applicable □ Inapplicable
Name of the
Position in
person holding Receives payment
the Beginning date Ending date of
any post in any Name of the shareholder unit from the shareholder
shareholder of office term office term
shareholder unit?
unit
unit
Chief of the
Wen Li Shenzhen Investment Holdings Co., Ltd. Enterprise 1 Jul. 2005 Yes
Department I
Deputy Head
of the
Property
Ownership
Guo Liwei Shenzhen Investment Holdings Co., Ltd. 1 Oct. 2004 Yes
Management
& Legal
Affairs
Department
50
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Deputy Head
of the Audit
& Risk
Management
Wang Xiuyan Shenzhen Investment Holdings Co., Ltd. 1 Oct. 2004 Yes
Department
(Office of the
Supervisory
Committee)
Senior
Supervisor of
Zhang Manhua Shenzhen Investment Holdings Co., Ltd. 1 Mar. 2013 Yes
the Enterprise
Department I
Particulars about employers in other companies
√ Applicable □ Inapplicable
Whether receiving
Name of Posts held in Beginning date Ending date of subsidies and
Name of other companies
employers other of office term office term remuneration in
companies other companies
Research
Li Jianxin Shenzhen Academy of Social Sciences 1 Jan. 1996 Yes
scholar
Law
Liu Ninghua China Galaxy Securities Co., Ltd. Compliance 1 Aug. 2013 Yes
Department
Professor,
Zhongnan University of Economics and
Zhang Qi doctoral 1 Jan. 2012 Yes
Law
supervisor
Particulars about the Company's current directors, supervisors and senior executives ‘punishments from Securities Regulatory
Institution of recent three years in reporting period
□ Applicable √ Inapplicable
IV. Remuneration for directors, supervisors and senior management
Decision-making procedure, determining basis and actual payment for the remuneration of directors, supervisors and senior
management
During the reporting period, the board and the management of the Company signed statement of operation
objectives responsibility for 2015, conducted appraisal system integrating operation indicators, classification
indicators with management objectives. After the end of the reporting period, assessment was implemented by the
board. Remuneration of senior executives, according to “Management Method of Annual salary System of
Directors, Supervisors and Senior Executives”, adopted annual salary system, and need to be implemented after
assessment of the board.
Remuneration of directors, supervisors, senior executives during the reporting period
Unit: RMB Ten Thousand Yuan
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Whether gained
Total before-tax
remuneration
remuneration
Name Position Gender Age Current/former from the related
gained from the
parties of the
Company
Company
Chairman of the
Chen Yugang Male 59 Current 76.28
Board
Director, General
Wei Zhi Male 59 Current 73.67
Manager
Director,
Liu Guangxin Chairman of Male 58 Current 70.8
Labor Union
Gong Sixin Director, CFO Male 48 Current 41.88
Wen Li Director Female 47 Current 0 Yes
Guo Liwei Director Male 43 Current 0 Yes
Independent
Lian Jianxin Male 62 Current 8
Director
Independent
Liu Ninghua Male 54 Current 8
director
Independent
Zhang Qi Male 38 Current 8
director
Chairman of the
Dai Xianhua Supervisory Male 54 Current 42.88
Committee
Zhang Manhua Supervisor Male 54 Current 0 Yes
Wang Xiuyan Supervisor Female 41 Current 0 Yes
Supervisor,
Manager of
Wang Qiuping Development Female 46 Current 25.72
Management
Department
Supervisor,
Manager of Cost
Zhang Gejian Male 41 Current 36.55
Control
Department
Vice GM,
Financial
Wang Hangjun Male 50 Current 70.8
Employee in
Charge
52
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Li Zipeng Vice GM Male 50 Former 65.23
Vice GM,
Fan Weiping Company Male 51 Current 70.8
Secretary
Total -- -- -- -- 598.61 --
Particulars about equity incentive granted to directors, supervisors, senior executives during the reporting period
□ Applicable √ Inapplicable
V. About employees
1. Number of the employees, component difference and educational background
Number of the serving employees of the parent company
69
(person)
Number of the serving employees of the major subsidiaries
2,750
(person)
Total number of the serving employees (person) 2,819
Total number of the employees receiving the salary of the
2,819
reporting period (person)
Number of the left and retired employees that the parent
company and the major subsidiaries should undertake the 269
expenses (person)
Component difference
Category Number (person)
Production personnel 1,864
Sales personnel 187
Technical personnel 470
Financial personnel 115
Administrative personnel 183
Total 2,819
Educational background
Category Number (person)
Doctor 2
Master 37
Bachelor 261
College 393
Technical secondary school 738
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
High school and below 1,388
Total 2,819
2. Remuneration policy
As required by corporate development strategy, based on actual situation to insist the internal industrialization and the marketization
among the industry of the remuneration principles of the Group and our Company adopts a differentiated management on different
industries to satisfy market demands by appropriately increasing the remuneration distance to better attract and retain talents. In HQ
and real estate enterprises, position type management idea is introduced, with all positions divided into Leader Group, Management
Group, Professional Group, Business Group and Service Group at different remuneration levels. Meanwhile, the remuneration for
professional technicians and that for medium-level management are kept overlapped. In this way, remuneration and career
development are provided at the same time. To some extent, the remuneration is a little bit favorable for professionals in real estate
development industry. With regard to other enterprises under the Company group, market reference is applied, but the key is to
appropriately adjust remuneration for key positions or some positions with lower remuneration than market level.
3. Training plan
In 2016, as required by the Company’s business development and based on training investigation, and in order to enrich employees’
knowledge, business ability and skills, enhance team spirit, satisfy the Company’s sustainable development demand, and achieve a
mutual development of the Company and employees, the Company will enhance training on real estate professional course, and
overall qualities and business knowledge, specifically including the courses such as the whole process chessboard resuming of the
real estate projects and construction of the operating and developing mode, construction and application of the structure of thinking,
outdoor development team and the employee ability quality promotion. Such training will cover internal and external training as well,
with trainees covering all employees and training time running through the whole year.
4. Labor outsourcing
□ Applicable √ Inapplicable
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Section IX. Corporate Governance
I. Particulars about corporate governance
During the reporting period, in accordance with the requirement of the Company Law, Securities Law, Code of
Corporate Governance for Listed Companies in China and Stock Listing Rules of Shenzhen Stock Exchange as
well as relevant laws and statutes of CSRC, the Company continuously regulated and perfected corporate
governance structure, established and perfected internal management and control system and investigated in
management activities of the Company, which promoted the Company’s standard management level.
As to the end of the reporting period, the internal control system of the Company is complete, accomplished and
defined that in accordance with Company Law, Articles of Association and other laws and regulations as well as
requirements of regulatory documents. The convene of Shareholders’ General Meeting, the Board of Directors and
Supervisory Committee are strictly in accordance with relevant rules and regulations, all directors and supervisors
earnestly and diligently commit their responsibilities. Corporate structure of the Company is complete and the
operation of the Company is standardized.
With the goal of constructing a standard management structure, the Company has established related regulations
on Shareholders’ Meeting, Board of Directors and Board of Supervisors, to ensure effective rights to
decision-making, execution and supervision respectively.
The Shareholders’ Meeting shall have the highest right to review and make decision on major issues, including the
Company’s business idea, investment plan, major trading items, capital changes, appointment and dismissal of
directors and supervisors, within the legal scope as defined by laws, regulations and rules like the Company Law
and Articles of Corporation. The Company has established and strictly followed various regulations, including
Rules of Procedure of Shareholders’ Meeting, to ensure all shareholders’ rights.
The Board of Directors has the right to business decision-making, responsible for the establishment and effective
execution of the Company’s internal control as well. Besides, it further sets up four special committees, namely,
Strategic Development & Investment Committee, Remuneration and Assessment Committee, Audit Committee
and Nomination Committee, to improve its operating efficiency based on corresponding work rules.
The Board of Supervisors acts as a supervising organ for the Company. It checks the Company’s finance, and
supervises all jobs of the Company’s directors and senior management. Also, it is responsible for and reports to the
Shareholders’ Meeting.
The business management have the right to execution. They are appointed by the Board of Directors, and
responsible for daily running of business management and internal control.
Based on the principle of science, simplicity and efficiency, the Company has established such functional
departments as Office for Board of Directors, General Manager’s Office, Cost Control Department, Planning
Design Department, Human Resources Department, Development Management Department, Financial
Management Department, Audit Department (Office for Board of Supervisors), Law and Risk Control Department,
Lease Center, and Party Work Office. These departments perform their specific functions and carry out work in
accordance with regulations on internal control, to ensure the Company’s healthy running.
The Company always pays attention to standardize the management for inside information, such as promulgating
the Management Rules for Insiders, making clear about the contents of inside information, making the scope of
insiders and accountability system for inside dealings. After reporting and submitting non-published information to
the controlling shareholders, the Company all registered the relevant information of insiders and then submitted to
securities regulatory authorities, as well as strictly controlled the transmission scope of inside information, further
strengthened the security work of inside information. Upon Self-inspection, during the reporting period, there were
55
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
no particulars about insiders took advantages of inside information to purchase or sell shares of the Company
before the disclosure of major sensitive information that shall have an impact on the share price of the Company,
nor any investigation and punishment as well as rectification from the regulatory authority. From now on, the
Company will continuously strengthen to learn relevant rules and laws, scrupulously execute the Management
Rules for Insider Information and Insiders, standardize the corporate governance of the Company, do well the work
of preventing inside dealings.
Whether it exists any difference between the corporate governance and the Company Law and relevant rules of
CSRC or not?
□ Yes √ No
There is no difference between the corporate governance and the Company Law and relevant rules of CSRC.
II. Particulars about the Company’s separation from the controlling shareholder
in respect of business, personnel, assets, organization and financial affairs
The Company was independent from the controlling shareholder in business, personnel, assets, organization and
finance to realize that independent personnel, independent finance, complete assets, independent organization and
independent business.
1. In aspect of business: The Company was independent from the controlling shareholder with independent and
complete business and independent operation capability. There was no business which was same or competitive
with the controlling shareholder.
2. In aspect of personnel: The Company was complete independent from the controlling shareholder in terms of
labor and personnel, management on remuneration. All Senior Executives drew the remuneration from the
Company, and none held a post concurrently in shareholders’ company. Personnel of the Company are
independent, all ones signed labor contract with the Company. The Company was independent from the
shareholders or other related parties in personnel management, social security, salary etc.
3. In aspect of asset: The Company’s assets were complete and independent, the property relationship was clear.
There was no capital occupation by controlling shareholder, and assets of the Company were completely
independent from controlling shareholder.
4. In aspect of organization: The Company’s organization was independent, and the Company implemented rules
and regulations as well as responsibilities for all departments, formed independent responsibilities and rights,
scientific and rational internal control system. Independence of the Company on operation and management is free
from impact from controlling shareholders and other subordinated units. There were no controlling shareholders
intervene organization of the Company. 5. In aspect of finance: The Company’s finance was independent with
independent finance department. The Company established the independent finance settling system and financial
management system, had its own finance account and paid the tax in line with laws, run finance decision-making
independently.
The controlling shareholder of the Company performed normatively with no conduct that intervened with the
operation decision-making and operation activities directly or indirectly over the shareholders’ general meeting,
however, the controlling shareholder could influence on the significant decision-making through the shares
holding.
56
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
III. Horizontal competition
□ Applicable √ Inapplicable
IV. Particulars about the annual shareholders’ general meeting and special
shareholders’ general meetings held during the reporting period
1. Particulars about the shareholders’ general meeting in reporting period
Proportion of
Index to the
Session Type investors' Convening date Disclosure date
disclosed
participation
Announcement on
the Resolution of the
2015-13-2014
st
2015 1 Annual Annual General Annual General
63.84% 30 Apr. 2015 1 May 2015
General Meeting Meeting Meeting,
www.cninfo.com.cn,
Securities News, Ta
Kung Pao
2. Special Shareholders’ General Meeting applied by the preferred stockholder with
restitution of voting right
□ Applicable √ Inapplicable
V. Performance of the Independent Directors
1. Particulars about the independent directors attending the board sessions and the
shareholders’ general meetings
Particulars about the independent directors attending the board sessions
Sessions required Attendance by Non-attendance
to attend during Attendance in way of Entrusted in person for two
Independent director Absence rate
the reporting person telecommunicati presence (times) consecutive
period on times
Li Jianxin 6 1 5 0 0 No
Liu Ninghua 6 1 5 0 0 No
Zhang Qi 6 1 5 0 0 No
General meetings sat in on by
1
independent directors
Note to non-attendance in person for two consecutive times
57
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Particulars about independent directors proposing objection on relevant events
Whether independent directors propose objection on relevant events or not?
□ Yes √ No
During the reporting period, no independent directors proposed any objection on relevant events of the Company.
3. Other explanations about the duty performance of independent directors
Whether advices to the Company from independent directors were adopted or not
√ Yes □ No
Explanation on the advices of independent directors for the Company being adopted or not adopted
With attitude of credibility and diligence to the Company and all shareholders, independent
directors was diligent and responsible, reviewed all resolutions, and in line with their professional
knowledge and capability, made independent, objective and fair judgment away from influence
from the Company and principal shareholders of the Company. Also, independent directors
expressed independent, objective and fair opinion on relevant events, which made practical efforts
to safeguard interests of the Company and minority shareholders.
VI. Duty performance of special committee affiliated to the Board during the
reporting period
The four special committees under the board—the Strategic Development and Investment
Committee, the Nomination Committee, the Remuneration and Appraisal Committee and the
Audit Committee—according to “Governance Principle of listed Company”, “Articles of
Association”, “and Rules of Procedure of the Board of Directors” and implementation rules of
special committee, earnestly performed their duties.
1. Duty performance of strategic development and investment committee
During the reporting period, strategic development and investment committee paid attention to
authorization of the board to project development and financing, kept good contact with the
management and had a good knowledge of matters within their power.
2. Duty performance of remuneration and assessment committee
During the reporting period, remuneration and assessment committee earnestly performed their
duties, kept good contact with the management and conducted several communication with the
management for relevant matters.
3. Duty performance of audit committee
During the reporting period, audit committee held on-the-spot working conference twice, listened
to report of Union Power CPAs on audit work, deliberate preliminary audit opinion issued by
58
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Union Power CPAs and proposed their opinions about 2014 Financial Statement of the Company.
VII. Particulars about the work of the supervisory committee
Whether there existed risks in the Company according to supervision of the supervisory committee during the
reporting period
□ Yes √ No
The supervisory committee raised no objection to matters under the supervision during the reporting period.
VIII. Assessment and incentive mechanisms for senior executives
Within the reporting period, the annual operating target plan 2015 was went forth to the
management team by the Board of Directors, of which the Company adopted appraisal method by
the score combination of operation index, category index and administrative goal. At the end of
the fiscal year, the Board of Directors examined the final score. For senior executives of the
Company, the Company adopted annual salary system in accordance with Management Measure
for Annual Salary System of Directors, Supervisors and Senior Executives, which shall be
implemented after the Board of Directors completing fiscal examination.
IX. Internal Control
1. Particulars about significant defects found in the internal control during reporting period
□ Yes √ No
2. Self-appraisal report on internal control
Disclosure date of the Self-appraisal
31 Mar. 2016
Report on Internal Control
Disclosure index of the Self-appraisal
http://www.cninfo.com.cn
Report on Internal Control
The proportion of total assets included in
evaluation scope entities in the
99.00%
Company's total assets of the consolidated
financial statements
The proportion of operation revenue
included in evaluation scope entities in
100.00%
the Company's operation revenue of the
consolidated financial statements
Defect judging standards
59
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Category Financial Report Non-Financial Report
If the following situation occurred, could
Indications of the great defect of the
be recognized as the great defect and
financial report were including: (1) to
other situation should be recognized as
execute the misstatement correction of the
the significant defect or the general
great defect occurred on the reported and
defect respectively according to the
disclosed financial report by the Company;
influenced degree: (1) the
(2) the audit institution discovered the
decision-making of the significant events
current financial report had great defect
of the Company lacked of the collective
while the internal control of the Company
democratic decision-making process or
didn’t found out during the operating
the collective democratic
process; (3) the supervision of the
decision-making process was not
Company’s Audit and Risk Committee and
normative; (2) the decision-making of
the internal audit department on the internal
the Company was not scientific or the
control was invalid; (4) there was significant
decision-making occurred serious
corrupt practice among the Directors,
mistakes; (3) the operating or the
Supervisors or Senior Management;
decision-making seriously violated the
indications of the significant defect of the
national laws and regulations; (4) the
financial report were including: (1) didn’t
Qualitative criteria Company occurred serious
abide by the universally acknowledged
environmental pollution or other events
accounting standard to choose and apply the
seriously effected the social public
accounting policies; (2) had not built up the
interests; (5) the media frequently
anti-fraud process and the control measures;
occurred the significant negative news;
(3) had not built up the corresponding
(6) lacked of the important business
control mechanism or had not executed the
management system or the
corresponding compensating control for the
systematicness of the system operation
accounting treatment which was
was invalid; (7) the constantly outflow of
unconventional or with special transaction;
the key management personnel and
(4) the control during the process of the
technical personnel of the Company; (8)
financial report at the period-end existed one
the great or significant internal control
or multiple defects that could not guarantee
defect of the Company could not be
the compile of the financial report reach the
timely modified; (9) the Company
goal of being real and complete. General
constantly or plentifully occurred the
defect: refers to the other control defect
significant internal control defects; (10)
except for the above great defect and
other situation may lead the Company to
significant defect.
seriously deviate from the control target.
Great defect: potential misstatement of the The Company compared the magnitude
operating income≥1 % of the operating of the direct property losses amount with
income of the consolidated statements of the the net assets amount of the last fiscal
Quantitative criteria current year, potential misstatement of the year to confirm the quantitative criteria
total assets amount≥0.25% of the total of the internal control as the follows:
amount of the consolidated statements of the great defect: amount of the direct
current year; significant defect: 0.75% of the property losses≥0.5% of the net assets
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
operating income of the consolidated amount of the last fiscal year; significant
statements of the current defect: 0.4% of the net assets amount of
year≤misstatement<1 % of the operating the last fiscal year≤losses amount<0.5%
income of the consolidated statements of the of the net assets amount of the last fiscal
current year; 0.2% of the total amount of the year; general defect: losses
consolidated statements of the current amount<0.4% of the net assets amount of
year≤misstatement<0.25 of the total amount the last fiscal year
of the consolidated statements of the current
year; general defect: misstatement of the
operating income<0.75% of the operating
income of the consolidated statements of the
current year, misstatement of the total assets
amount<0.2 of the total assets amount of the
consolidated statements of the current year
Number of significant defects of financial
0
report (Piece)
Number of significant defects of non-
0
financial report (Piece)
Number of important defects of financial
0
report (Piece)
Number of important defects of
0
non-financial report (Piece)
X. Audit report on internal control
√ Applicable □ Inapplicable
Audit opinion paragraphs in the Audit Report on Internal Control
We believe that, Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Particulars about Audit Report on
Disclosure
Internal Control
Disclosure date of the Audit Report
31 Mar. 2016
on Internal Control
Disclosure index of the Audit
http://www.cninfo.com.cn
Report on Internal Control
Type of Audit Report on Internal
Unqualified auditor’s report
Control
Whether there is significant defect
No
in non-financial report
Whether the CPAs firm issues an Audit Report on Internal Control with non-standard opinion or not?
□ Yes √ No
61
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report
from the Board or not?
√ Yes □ No
Section X. Financial Report
I. Auditor’s Report
Type of audit opinions Standard unqualified audit opinion
Signing date of audit report 30 Mar. 2016
Name of audit institution Union Power Certified Public Accountants Co., Ltd.
Document No. of the auditor’s report ZHSZ (2016) No. 010878
Name of CPA Wang Yu, Fan Guiming
Text of the auditor’s report
TO THE SHAREHOLDERS OF SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.：
We have audited the accompanying financial statements of Shenzhen Properties & Resources
Development (Group) Ltd. (hereinafter referred to as “Company” or “the Company”), which
comprise the balance sheet and the consolidated balance sheet as at 31 Dec. 2015, the income
statement and the consolidated income statement, the statement of change in equity and the
consolidated statement of change in equity, the cash flow statement and the consolidated cash flow
statement for the year then ended, and a summary of significant accounting policies and other
explanatory notes.
I. Management's responsibility for the financial statements
The management of the Company is responsible for the preparation of these financial statements
and fair presentation. These responsibilities include: (1) preparing financial statements according
to the Accounting Standards for Business Enterprises and make them a fair presentation; and (2)
designing, implementing and maintaining internal control relevant to the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
II. Auditor's responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audit in accordance with China’s Independent Auditing Standards. Those Standards
require that we comply with relevant ethical requirements and plan and perform the audit to obtain
reasonable assurance as to whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The audit procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, we consider internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit
62
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting principles used and the reasonableness of accounting estimates
made by the management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidences we have obtained are sufficient and effective, providing a
reasonable basis for our opinion.
III. Opinion
In our opinion, the financial statements comply with Accounting Standards for Business
Enterprises in all material aspects, and present fairly the consolidated and the Company’s financial
positions as of 31 Dec. 2015 and their operating results and cash flows for the year then ended.
II. Financial statements
Monetary unit of notes to financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 Dec. 2015
Unit: RMB Yuan
Item 31 Dec. 2015 31 Dec. 2014
Current Assets:
Monetary funds 945,739,975.77 808,963,376.68
Settlement reserves
Intra-group lendings
Financial assets measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable 38,772,146.41 26,585,132.12
Accounts paid in advance 28,415,733.43 25,989,832.24
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 11,619,503.47 6,638,425.25
Financial assets purchased under
agreements to resell
63
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Inventories 2,466,342,278.85 2,323,472,671.20
Assets held for sale
Non-current assets due within 1 year
Other current assets 174,382,120.00
Total current assets 3,665,271,757.93 3,191,649,437.49
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 14,500,000.00 18,493,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 34,526,177.41 32,888,939.41
Investing real estate 237,260,788.82 250,014,034.94
Fixed assets 85,929,516.37 64,069,233.96
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 92,640,083.99 99,792,587.03
R&D expense
Goodwill
Long-term deferred expenses 2,024,722.07 2,553,053.03
Deferred income tax assets 240,335,370.51 216,552,790.60
Other non-current assets 7,275,069.00 7,275,069.00
Total of non-current assets 714,491,728.17 691,638,707.97
Total assets 4,379,763,486.10 3,883,288,145.46
Current liabilities:
Short-term borrowings 8,000,000.00 100,000,000.00
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Financial liabilities measured at fair
value of which changes are recorded in
64
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
current profits and losses
Derivative financial liabilities
Notes payable
Accounts payable 191,524,938.54 175,347,021.19
Accounts received in advance 652,369,778.20 28,756,337.08
Financial assets sold for repurchase
Handling charges and commissions
payable
Payroll payable 63,791,816.49 57,777,210.65
Tax payable 833,797,372.43 1,015,363,636.69
Interest payable 479,413.09 562,879.72
Dividend payable
Other accounts payable 128,243,079.68 111,032,824.55
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within 1
121,243,352.00 5,000,000.00
year
Other current liabilities
Total current liabilities 1,999,449,750.43 1,493,839,909.88
Non-current liabilities:
Long-term borrowings 144,840,006.83 177,613,352.00
Bonds payable
Of which: preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities 834,999.50
Deferred income 19,072,625.05 21,765,846.69
Deferred income tax liabilities 23,985.24 257,625.00
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other non-current liabilities 114,773,265.38 114,706,662.76
Total non-current liabilities 279,544,882.00 314,343,486.45
Total liabilities 2,278,994,632.43 1,808,183,396.33
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 119,951,533.93 119,951,533.93
Less: Treasury stock
Other comprehensive income -4,046,603.46 -4,006,141.53
Specific reserves
Surplus reserves 154,664,631.59 136,591,232.84
Provisions for general risks
Retained profits 1,233,358,112.55 1,225,726,944.83
Total equity attributable to owners of
2,099,906,766.61 2,074,242,662.07
the Company
Minority interests 862,087.06 862,087.06
Total owners’ equity 2,100,768,853.67 2,075,104,749.13
Total liabilities and owners’ equity 4,379,763,486.10 3,883,288,145.46
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
2. Balance sheet of the Company
Unit: RMB Yuan
Item 31 Dec. 2015 31 Dec. 2014
Current Assets:
Monetary funds 296,196,656.86 338,036,109.52
Financial assets measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable 979,569.49 1,029,211.52
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Accounts paid in advance
Interest receivable
Dividend receivable
Other accounts receivable 1,766,392,354.21 1,758,238,266.73
Inventories 530,588,344.24 385,762,064.03
Assets held for sale
Non-current assets due within 1 year
Other current assets 174,382,120.00
Total current assets 2,768,539,044.80 2,483,065,651.80
Non-current assets:
Available-for-sale financial assets 230,500.00 4,223,500.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 281,083,438.39 279,446,200.39
Investing real estate 157,390,561.34 162,666,161.07
Fixed assets 9,828,388.19 11,701,031.08
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 1,297,321.41 1,470,297.69
Deferred income tax assets 29,561,006.63
Other non-current assets
Total of non-current assets 479,391,215.96 459,507,190.23
Total assets 3,247,930,260.76 2,942,572,842.03
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial liabilities
67
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Notes payable
Accounts payable 25,436,021.13 27,475,005.86
Accounts received in advance 311,717,646.30 556,723.50
Payroll payable 11,467,533.06 9,765,464.25
Tax payable 62,939,128.44 44,829,812.84
Interest payable 858,385.21 621,676.25
Dividend payable
Other accounts payable 1,163,240,004.88 1,362,785,410.73
Liabilities held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 1,575,658,719.02 1,446,034,093.43
Non-current liabilities:
Long-term borrowings 404,840,006.83 276,370,000.00
Bonds payable
Of which: preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities 834,999.50
Deferred income
Deferred income tax liabilities 257,625.00
Other non-current liabilities
Total non-current liabilities 405,675,006.33 276,627,625.00
Total liabilities 1,981,333,725.35 1,722,661,718.43
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 94,057,859.68 94,057,859.68
Less: Treasury stock
68
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other comprehensive income 2,933,175.45
Specific reserves
Surplus reserves 154,007,821.15 135,934,422.40
Retained profits 422,551,762.58 391,006,574.07
Total owners’ equity 1,266,596,535.41 1,219,911,123.60
Total liabilities and owners’ equity 3,247,930,260.76 2,942,572,842.03
3. Consolidated income statement
Unit: RMB Yuan
Item 2015 2014
I. Total operating revenues 1,077,418,500.93 1,268,451,451.86
Including: Sales income 1,077,418,500.93 1,268,451,451.86
Interest income
Premium income
Handling charge and commission
income
II. Total operating costs 1,037,507,557.45 908,328,822.13
Including: Cost of sales 648,572,894.10 520,485,126.20
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 159,676,120.22 277,057,303.89
Selling and distribution expenses 41,941,165.94 26,318,080.91
Administrative expenses 102,968,126.79 103,915,932.80
Financial expenses -7,514,689.31 -12,697,790.50
Asset impairment loss 91,863,939.71 -6,749,831.17
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-” 7,738,371.09 214,624,884.25
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
means loss)
Including: share of profits in
1,637,238.00 -352,555.03
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 47,649,314.57 574,747,513.98
Add: non-operating income 171,619,115.05 5,094,033.97
Including: Gains on disposal of
33,279.06 1,905,888.27
non-current assets
Less: non-operating expense 2,876,737.49 26,076,584.37
Including: Losses on disposal of
601,245.35 93,576.27
non-current assets
IV. Total profit (“-” means loss) 216,391,692.13 553,764,963.58
Less: Income tax expense 59,571,725.42 136,266,283.67
V. Net profit (“-” means loss) 156,819,966.71 417,498,679.91
Net profit attributable to owners of
156,819,966.71 417,498,679.91
the Company
Minority shareholders’ income
VI. After-tax net amount of other
-40,461.93 3,092,574.98
comprehensive incomes
After-tax net amount of other
comprehensive incomes attributable to -40,461.93 3,092,574.98
owners of the Company
(I) Other comprehensive incomes
that will not be reclassified into gains and
losses
1. Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees that
cannot be reclassified into gains and
losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and -40,461.93 3,092,574.98
losses
1. Enjoyable shares in other
comprehensive incomes in investees that
will be reclassified into gains and losses
70
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
under the equity method
2. Gains and losses on fair
value changes of available-for-sale -2,933,175.45 2,933,175.45
financial assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
2,892,713.52 159,399.53
statement translation difference
6. Other
After-tax net amount of other
comprehensive incomes attributable to
minority shareholders
VII. Total comprehensive incomes 156,779,504.78 420,591,254.89
Attributable to owners of the
156,779,504.78 420,591,254.89
Company
Attributable to minority
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.2631 0.7005
(II) Diluted earnings per share 0.2631 0.7005
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the
merged parties before the business mergers was RMB0.00, with the corresponding amount for the last period being
RMB0.00.
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
Unit: RMB Yuan
Item 2015 2014
I. Total sales 61,440,361.37 66,368,633.69
Less: cost of sales 14,568,381.71 26,061,655.45
Business taxes and surcharges 7,657,509.70 6,670,106.76
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Distribution expenses 917,956.69
Administrative expenses 41,050,329.06 41,556,470.77
Financial costs -7,854,726.72 -5,716,403.24
Impairment loss -31,370,041.72 -6,776,623.28
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
7,571,676.55 210,458,029.19
means loss)
Including: income form investment
1,637,238.00 -352,555.03
on associates and joint ventures
II. Business profit (“-” means loss) 44,042,629.20 215,031,456.42
Add: non-operating income 169,812,889.47 2,285,081.37
Including: Gains on disposal of
non-current assets
Less: non-operating expense 1,323,166.82 23,964,998.79
Including: Losses on disposal of
103,611.83 3,861.79
non-current assets
III. Total profit (“-” means loss) 212,532,351.85 193,351,539.00
Less: Income tax expense 31,798,364.35 42,863,068.67
IV. Net profit (“-” means loss) 180,733,987.50 150,488,470.33
V. After-tax net amount of other
-2,933,175.45 2,933,175.45
comprehensive incomes
(I) Other comprehensive incomes that
will not be reclassified into gains and
losses
1. Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees
that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and -2,933,175.45 2,933,175.45
losses
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
losses under the equity method
2. Gains and losses on fair value
changes of available-for-sale financial -2,933,175.45 2,933,175.45
assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
statement translation difference
6. Other
VI. Total comprehensive incomes 177,800,812.05 153,421,645.78
VII. Earnings per share
(I) Basic earnings per share 0.3033 0.2525
(II) Diluted earnings per share 0.3033 0.2525
5. Consolidated cash flow statement
Unit: RMB Yuan
Item 2015 2014
I. Cash flows from operating activities:
Cash received from sale of
1,696,592,242.82 1,141,552,814.94
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of financial
assets measured at fair value of which
73
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
changes are recorded into current gains
and losses
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
14,524,590.42 27,501,782.68
operating activities
Subtotal of cash inflows from operating
1,711,116,833.24 1,169,054,597.62
activities
Cash paid for goods and services 574,324,242.80 526,096,880.10
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 308,224,325.62 271,319,723.58
Various taxes paid 450,753,009.58 301,412,102.96
Other cash payment relating to
68,047,625.58 84,852,948.06
operating activities
Subtotal of cash outflows from
1,401,349,203.58 1,183,681,654.70
operating activities
Net cash flows from operating activities 309,767,629.66 -14,627,057.08
II. Cash flows from investing activities:
Cash received from withdrawal of
7,091,672.64 237,302,621.45
investments
Cash received from return on
investments
Net cash received from disposal of
966,686.25 867,170.40
fixed assets, intangible assets and other
74
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
8,058,358.89 238,169,791.85
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 38,285,548.55 13,682,765.56
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
266,715.68
investing activities
Subtotal of cash outflows from
38,285,548.55 13,949,481.24
investing activities
Net cash flows from investing activities -30,227,189.66 224,220,310.61
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 216,470,006.83 316,370,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
216,470,006.83 316,370,000.00
activities
Repayment of borrowings 225,000,000.00 514,316,666.64
Cash paid for interest expenses and
149,289,115.57 178,761,051.09
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
75
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other cash payments relating to
104,500.00
financing activities
Sub-total of cash outflows from
374,393,615.57 693,077,717.73
financing activities
Net cash flows from financing activities -157,923,608.74 -376,707,717.73
IV. Effect of foreign exchange rate
2,757,607.83 -1,093,973.32
changes on cash and cash equivalents
V. Net increase in cash and cash
124,374,439.09 -168,208,437.52
equivalents
Add: Opening balance of cash and
808,963,376.68 977,171,814.20
cash equivalents
VI. Closing balance of cash and cash
933,337,815.77 808,963,376.68
equivalents
6. Cash flow statement of the Company
Unit: RMB Yuan
Item 2015 2014
I. Cash flows from operating activities:
Cash received from sale of
44,991,559.19 50,534,901.36
commodities and rendering of service
Tax refunds received
Other cash received relating to
29,403,475.42 19,754,794.25
operating activities
Subtotal of cash inflows from operating
74,395,034.61 70,289,695.61
activities
Cash paid for goods and services 36,933,801.29 8,723,060.88
Cash paid to and for employees 25,261,992.16 22,284,922.53
Various taxes paid 13,695,960.29 11,664,415.35
Other cash payment relating to
467,630,748.14 469,502,088.72
operating activities
Subtotal of cash outflows from
543,522,501.88 512,174,487.48
operating activities
Net cash flows from operating activities -469,127,467.27 -441,884,791.87
II. Cash flows from investing activities:
Cash received from retraction of
517,302,621.45 195,000,000.00
investments
Cash received from return on 3,378,400.00 25,443,800.00
76
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
investments
Net cash received from disposal of
fixed assets, intangible assets and other 2,200.00 11,983,185.60
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
520,683,221.45 232,426,985.60
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 770,380.00 551,487.00
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
770,380.00 551,487.00
investing activities
Net cash flows from investing activities 519,912,841.45 231,875,498.60
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 276,370,000.00 240,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
276,370,000.00 240,000,000.00
activities
Repayment of borrowings 240,000,000.00
Cash paid for interest expenses and
168,434,949.35 8,720,000.00
distribution of dividends or profit
Other cash payments relating to
343,492.00
financing activities
Sub-total of cash outflows from 408,434,949.35 9,063,492.00
77
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
financing activities
Net cash flows from financing activities -132,064,949.35 230,936,508.00
IV. Effect of foreign exchange rate
-1,253,281.96
changes on cash and cash equivalents
V. Net increase in cash and cash
-82,532,857.13 20,927,214.73
equivalents
Add: Opening balance of cash and
420,568,966.65 399,641,751.92
cash equivalents
VI. Closing balance of cash and cash
338,036,109.52 420,568,966.65
equivalents
7. Consolidated statement of changes in owners’ equity
2015
Unit: RMB Yuan
2015
Equity attributable to owners of the Company
Other equity
Other Minorit Total
Item instruments Less: General
Share Capital compre Specific Surplus Retaine y owners’
Prefer Perpet treasury risk
capital reserve hensive reserve reserve d profit interests equity
red ual Other stock reserve
incomes
shares bonds
I. Balance at the 595,97 1,225,7 2,075,1
119,951 -4,006,1 136,591 862,087
end of the 9,092. 26,944. 04,749.
,533.93 41.53 ,232.84 .06
previous year 00 83 13
Add: change of
accounting policy
Correction of
errors in previous
periods
Business
mergers under the
same control
Other
II. Balance at the 595,97 1,225,7 2,075,1
119,951 -4,006,1 136,591 862,087
beginning of the 9,092. 26,944. 04,749.
,533.93 41.53 ,232.84 .06
year 00 83 13
III. Increase/ -40,461. 18,073, 7,631,1 25,664,
decrease in the 93 398.75 67.72 104.54
78
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
period (“-” means
decrease)
(I) Total
-40,461. 156,819 156,779
comprehensive
93 ,966.71 ,504.78
incomes
(II) Capital
increased and
reduced by owners
1. Common
shares increased
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
-149,18 -131,11
(III) Profit 18,073,
8,798.9 5,400.2
distribution 398.75
9 4
1.
18,073, -18,073,
Appropriations to
398.75 398.75
surplus reserves
2.
-131,11 -131,11
Appropriations to
5,400.2 5,400.2
general risk
4 4
provisions
3.
Appropriations to
owners (or
shareholders)
4. Other
(IV) Internal
carry-forward of
owners’ equity
1. New
79
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
(VI) Other
595,97 1,233,3 2,100,7
IV. Closing 119,951 -4,046,6 154,664 862,087
9,092. 58,112. 68,853.
balance ,533.93 03.46 ,631.59 .06
00 55 67
2014
Unit: RMB Yuan
2014
Equity attributable to owners of the Company
Other equity Minorit
Other Total
Item instruments y
Less: General
Share Capital compre Specific Surplus Retaine owners’
treasury risk interest
Prefer Perpet equity
capital reserve hensive reserve reserve d profit
stock reserve s
red ual Other
incomes
shares bonds
I. Balance at the 595,97 1,803,6
120,086 -7,098,7 121,542 972,271 862,087
end of the 9,092. 43,379.
,646.43 16.51 ,385.81 ,884.95 .06
previous year 00 74
Add: change of
accounting policy
Correction of
errors in previous
80
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
periods
Business
mergers under the
same control
Other
II. Balance at the 595,97 1,803,6
120,086 -7,098,7 121,542 972,271 862,087
beginning of the 9,092. 43,379.
,646.43 16.51 ,385.81 ,884.95 .06
year 00 74
III. Increase/
decrease in the -135,11 3,092,5 15,048, 253,455 271,461
period (“-” means 2.50 74.98 847.03 ,059.88 ,369.39
decrease)
(I) Total
3,092,5 417,498 420,591
comprehensive
74.98 ,679.91 ,254.89
incomes
(II) Capital
increased and
reduced by owners
1. Common
shares increased
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
-164,04 -148,99
(III) Profit 15,048,
3,620.0 4,773.0
distribution 847.03
3 0
1.
15,048, -15,048,
Appropriations to
847.03 847.03
surplus reserves
2.
Appropriations to
general risk
81
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
provisions
3.
-148,99 -148,99
Appropriations to
4,773.0 4,773.0
owners (or
0 0
shareholders)
4. Other
(IV) 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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
-135,11 -135,11
(VI) Other
2.50 2.50
595,97 1,225,7 2,075,1
IV. Closing 119,951 -4,006,1 136,591 862,087
9,092. 26,944. 04,749.
balance ,533.93 41.53 ,232.84 .06
00 83 13
8. Statement of changes in owners’ equity of the Company
2015
Unit: RMB Yuan
Item 2015
82
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other equity instruments Other
Less: Total
Share Capital comprehe Specific Surplus Retaine
Preferre Perpetu treasury owners’
capital Other reserve nsive reserve reserve d profit
d shares al bonds stock equity
incomes
I. Balance at the
595,979, 94,057,85 2,933,175 135,934,4 391,006 1,219,911
end of the previous
092.00 9.68 .45 22.40 ,574.07 ,123.60
year
Add: change of
accounting policy
Correction of
errors in previous
periods
Other
II. Balance at the
595,979, 94,057,85 2,933,175 135,934,4 391,006 1,219,911
beginning of the
092.00 9.68 .45 22.40 ,574.07 ,123.60
year
III. Increase/
decrease in the -2,933,17 18,073,39 31,545, 46,685,41
period (“-” means 5.45 8.75 188.51 1.81
decrease)
(I) Total
-2,933,17 180,733 177,800,8
comprehensive
5.45 ,987.50 12.05
incomes
(II) Capital
increased and
reduced by owners
1. Common
shares increased
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
(III) Profit 18,073,39 -149,18 -131,115,
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
distribution 8.75 8,798.9 400.24
9
1.
18,073,39 18,073,
Appropriations to
8.75 398.75
surplus reserves
2.
-131,11
Appropriations to -131,115,
5,400.2
owners (or 400.24
4
shareholders)
3. Other
(IV) 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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
(VI) Other
IV. Closing 595,979, 94,057,85 154,007,8 422,551 1,266,596
balance 092.00 9.68 21.15 ,762.58 ,535.41
2014
Unit: RMB Yuan
Item 2014
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other equity instruments Other
Less: Total
Share Capital comprehe Specific Surplus Retaine
Preferre Perpetu treasury owners’
capital Other reserve nsive reserve reserve d profit
d shares al bonds stock equity
incomes
I. Balance at the
595,979, 94,057,85 120,885,5 404,561 1,215,484
end of the previous
092.00 9.68 75.37 ,723.77 ,250.82
year
Add: change of
accounting policy
Correction of
errors in previous
periods
Other
II. Balance at the
595,979, 94,057,85 120,885,5 404,561 1,215,484
beginning of the
092.00 9.68 75.37 ,723.77 ,250.82
year
III. Increase/
decrease in the 2,933,175 15,048,84 -13,555, 4,426,872
period (“-” means .45 7.03 149.70 .78
decrease)
(I) Total
2,933,175 150,488 153,421,6
comprehensive
.45 ,470.33 45.78
incomes
(II) Capital
increased and
reduced by owners
1. Common
shares increased
by shareholders
2. Capital
increased by
holders of other
equity instruments
3. Amounts
of share-based
payments
recognized in
owners’ equity
4. Other
(III) Profit 15,048,84 -164,04 -148,994,
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
distribution 7.03 3,620.0 773.00
3
1.
15,048,84 -15,048,
Appropriations to
7.03 847.03
surplus reserves
2.
-148,99
Appropriations to -148,994,
4,773.0
owners (or 773.00
0
shareholders)
3. Other
(IV) 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
(V) Specific
reserve
1. Withdrawn
for the period
2. Used in the
period
(VI) Other
IV. Closing 595,979, 94,057,85 2,933,175 135,934,4 391,006 1,219,911
balance 092.00 9.68 .45 22.40 ,574.07 ,123.60
III. Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
“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.
Up to 31 Dec. 2015, as for the registered capital of the Company which was of RMB595,979,092
and the paid-in capital of RMB595,979,092
The registered capital of the Company was RMB541, 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 RMB595,979,092 after bonus issue of shares on the basis of one share for
every existing 10 shares based on previous paid-in capital of RMB541,799,175 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).
The Company and the subsidiary (hereinafter referred to as “the Group” in total) mainly operates
the development of real estate; property management; buildings and the building devices
maintainance, gargen afforest and cleaning service; houses and building leasing; passenger traffits
and leasing of motor vehicles; supervise and management of the engineering; retails of the
Chinese food, Western-styly food and wines.
3. 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, and the
main operating scope including: to execute the investment, operating and management of the
state-owned equities of the wholly-owned, controlling and stock-participating enterprises through
the methods such as the restructuring integration, capital operation and assets disposal; to engage
in the property development and operation business within the scale of legally acquire the land use
right; to execute the policy-based and strategic investment according to the requirements of the
SASAC; to provide the guarantee of the municipal state-owned enterprises; other business
developed with the authority from the Municipal State-owned Assets Supervision and
Administration Commission. 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 Committee of
Shenzhen Government.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
4. Authorization and date of issuing the financial statements
The financial statements were approved and authorized for issue by the 8th Session of the 8th
Board of the Directors on 30 Mar. 2016.
Up to the end of the reporting period, there were 26 subsidiaries included in the consolidation
financial statement, and for the details, please refer to Notes IX. 1 of Section X.
For the changes of consolidation financial statement scope of the reporting period, please refer to
Notes VIII. of Section X.
IV. Basis for the preparation of financial statements
1. Preparation basis
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. Continuation
There will be no such events or situations in the 12 months from the end of the reporting period
that will cause material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Indication of specific accounting policies and estimations:
Inapplicable
1. Statement of compliance with Enterprise accounting standards
The company's financial statements comply with the requirements of Accounting Standards; the
company's financial position, operating results, changes in shareholder's equity and cash flow, and
other relevant information are truly and completely disclosed in financial statements.
2. Fiscal period
The Group’s fiscal year starts on 1 Jan. and ends on 31 Dec. of every year according to the
Gregorian calendar.
3. Operating cycle
A normal operating cycle refers to a period from the Group purchasing assets for processing to
realizing cash or cash equivalents. As for the construction of the real estate projects of the Group
with rather long period, the normal operating period more than 1 year owning to the industry
characteristics, and although the relevant assets be discounted, sold or consumed more than 1 year,
should still be divided into the circulating assets; as for the operating liabilities projects during the
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
normal operation period even be liquidated over 1 year after the balance sheet date, should be
divided into the circulation liabilities. Besides, the normal operating period of other business of the
Group is shorter than 1 year. As for the normal operating period shorten than 1 year and the assets
discounted since the balance sheet date or the liabilities should be liquidated due within 1 year since
the balance sheet date, should be classified as the circulating assets or liabilities.
4. Recording currency
The Company and the domestic subsidiaries regard the Renminbi as the recording currency. The
Hong Kong subsidiary of the Company confirms the Hong Kong dollar as its recording currency
according to the major economic environment of the currency of its office place. When compiling
the financial statements, the currency the Company adopted was the Renminbi.
5. Accounting method of business combination under the common control and not under the
common control
(1) The Group 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; the period of the
adjustment of the compared data of the consolidation financial statement should earlier than the
later time under the control of the ultimate control party of the combine party and the combined
party.
(2) 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;
② For 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:
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
A. In the individual financial statements, the initial investment cost changed to be measured by the
cost method 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; the other comprehensive revenues
recognized by adopting the equity method of the equity investment before the purchase date, should
be executed accounting treatments based on the same basic of the relevant assets or liabilities
directly disposed by the purchasers when disposing the investment. The equity investment held
before the purchase date which is executed the accounting treatments according to the relevant
regulations of No. 22 ASBE-Recognition and Measurement of the Financial Instruments, the
accumulative fair value changes originally included into the other comprehensive income should be
transferred into the current gains and losses by adopting the cost method.
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 Company 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.
③ Agency 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 Group 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 Group 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 Group’s accounting policy of “Consolidated financial statement”.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
6. Methods for preparing consolidated financial statements
(1) Consolidation scope
The consolidation scope for financial statements is determined on the basis of control, including
the annual financial statement up to 31 Dec. 2014 of the Company and whole subsidiaries. The
consolidated financial statements comprise the financial statements of the Group and its
subsidiaries. A subsidiary is an enterprise or entity controlled by the Group (including the
segmental part among the enterprises and investees as well as the structuralized main bodies etc.)
The term “control” is the power of the Group upon an investee, with which it can take part in
relevant activities of the investee to obtain variable returns and is able to influence the amount of
returns.
(2) Methods for preparing the consolidated financial statements
The Company compiles the consolidation financial statement according to other relevant materials
based on the financial statement of itself and its subsidiaries.
The Company regards the whole enterprise group as an accounting main body when compiling the
consolidation financial statement to reflect the whole financial conditions, operation results and
cash flows according to the requirements of the recognition, measurement and presentation of the
relevant ASBE and the unitize accounting polices.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Group during the preparation of the consolidated financial statements,
where the accounting policies and the accounting periods are inconsistent between the Group and
subsidiaries. For a subsidiary acquired from a business combination not under the same control,
the individual financial statements of the subsidiary are adjusted based on the fair value of the
identifiable net assets at the acquisition date.
(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
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 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.
(6) Disposal on consolidation statement of disposing the equity step by step till lose the control
right
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 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;
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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.
7. Classification of joint arrangements and accounting treatment of joint operations
(1) Category of joing arrangements
A joint arrangement refers to an arrangement jointly controlled by two participants or above. The
Group classifies joint arrangements into joint operations and joint ventures according to its rights
and duties in the joint arrangements. A joint operation refers to a joint arrangement where the
Group enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to
a joint arrangement where the Group is only entitled to the net assets of the arrangement.
The joint arrangement achieves not through the individual main body should be divided as joint
operation. Individual main body refers to the entity owns individual distinguishable financial
structure, including the individual legal entities and the entities without legal entity qualification
but gains the legal permits. The joint arrangement achieves through individual main body is
usually divided into the joint venture, but for the joint arrangement with definite evidence
indicants that meet with any condition of the followings and meet with the regulations of the
relevant laws and regulations should be divided into joint operation; the legal form of other joint
arrangement indicates that, the jointly owned party respectively enjoys the rights and burdens the
obligations of the relevant assets and liabilities among the arrangement; the clauses of the contacts
of the joint arrangement agrees that, the jointly owned party respectively enjoys the rights and
burdens the obligations of the relevant assets and liabilities among the arrangement; other relevant
facts and situation indicates that, the jointly owned party respectively enjoys the rights and
burdens the obligations of the relevant assets and liabilities among the arrangement, for example,
the jointly owned party enjoys almost all of the output related to the joint arrangement and the
liquidation of the liabilities of the arrangement constantly depends on the support of the jointly
owned party. It’s forbidden to regard the jointly owned party which provides the liabilities for the
joint arrangement as it has the responsibility to bear the relevant liabilities. For the jointly owned
party takes the responsibility to pay the contributive obligations for the joint arrangement, not be
considered to undertake the relevant liabilities related to the arrangement. For the relevant facts
and the changes of the situation leads the rights enjoyed and the liabilities undertook amount the
joint arrangement change, the Group should re-assess the category of the joint arrangement. For
the structure agreement setting various joint arrangements for achieving different activities, the
Group respectively recognizes each category of the joint arrangement.
For the details of the basis of recognizing the joint control and the accounting policies of the
measurement of the joint venture, please refer to Notes (V) 13.
(2) Accounting treatment of joint operations
The following projects related to the interests portion among the joint operation recognized by the
Group and be executed according to the regulations of the relevant ASBE: recognizes the assets
held alone and the assets joint held by recognizing accoridng to the portion; recognizes the
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
jointly-held assets and jointly-borne liabilites according to the Group’s stake in the joint operation;
recognizes the income from sale of the Group’s share in the output of the joint operation;
recognizes the income from sale of the joint operation’s outputs accoridng to the Group’s stake in
it; and recognizes the expense solely incurred to the Group and the expense incurred to the joint
operation according to the Group’s stake in it.
When the Group, as a joint operator, transfers or sells assets (except for the assets constituing
business) to the joint operation, before the assets are sold to a third party, the Group only
recognizes the share of the other joint operators in the gains and losses arising from the sale.
Where impairment occurs to the assets as prescribed in , the Group shall fully recognizes the loss. When the
Group, purchases assets from the joint operation (except for the assets constituing business) to the
joint operation, before the assets are sold to a third party, the Group only recognizes the share of
the other joint operators in the gains and losses arising from the sale. Where impairment occurs to
the assets as prescribed in , the Group shall fully recognizes the loss according to its stake in the joint operation
for a purchase of assets from the joint operation.
If the Group attributes to the participate party without joint control on the joint operation,if enjoys
the relevant assets and undertakes the relevant liabilities of the joint operation, should execute
accounting treatment according to the above principles; otherwise, should execute the accounting
treatment according to the accounting policies of the measurement of the financial instruments or
the long-term equity investment formulated by the Group.
8. Recognition standard for cash and cash equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that
can be used for cover, and short-term (usually due within 3 months since the day of purchase) and
high circulating investments, which are easily convertible into known amount of cash and whose
risks in change of value are minimal.
9. Foreign currency businesses and translation of foreign currency financial statements
The foreign currency transactions are both discounted as recording currency according to the spot
rate on the trading date (ususally refers to the middle price of the foreign exchange quotation on
that very date issued by People’s Bank of China, similarly hereinafter).
(1) Treatment of foreign currency exchange difference
On balance sheet date, the Group 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
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 Group 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) Recognition of the financial instruments
The Group 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.
(2) Category and measurement of the financial assets
① The Group 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.
A. Financial assets measured by fair value and its changes included in the current gains and losses
Financial assets measured by fair value and its changes included in the current gains and losses,
including trading financial assets and the financial assets appointed to be measured by fair value
with its changes included in the current gains and losses of the initial recognition.
The financial assets meeting any of the following requirements shall be classified as transactional
financial assets：A. The purpose to acquire the said financial assets is mainly for selling them in
the near future; B. Forming a part of the identifiable combination of financial instruments which
are managed in a centralized way and for which there are objective evidences proving that the
enterprise may manage the combination by way of short-term profit making in the near future; C.
Being a derivative instrument, excluding the designated derivative instruments which are effective
hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative
instruments which are connected with the equity instrument investments for which there is no
quoted price in the active market, whose fair value cannot be reliably measured, and which shall
be settled by delivering the said equity instruments.
The financial assets meeting any of the following requirements shall be designated as financial
assets which are measured at their fair values and the variation of which is recorded into the
profits and losses of the current period for initial recognition: A. the designation can eliminate or
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
significantly reduce the difference of relevant gains and losses between recognition and
measurement causing from different bases for measurement of financial assets; B. The official
written documents for risk management and investment strategies of the enterprise have clearly
stated that it shall, manage, evaluate and report to important management personnel based on the
fair value, about the financial assets group or the group of financial assets which the financial
assets are belong to.
For the equity instruments investment without quotation in the active market and the fair value
could not be reliable measured, should not be appointed as the financial assets measured by the
fair value with its changes included in the current gains and losses.
B. Held-to-maturity investment
The term "held-to-maturity investment" refers to a non-derivative financial asset with a fixed date
of maturity, a fixed or determinable amount of repo price and which the enterprise holds for a
definite purpose or the enterprise is able to hold until its maturity.
C. Loans and the accounts receivables
Loans and the accounts receivables refer to non-derivative financial assets, which there is no
quotation in the active market, with fixed recovery cost or recognizable.
D. Available-for-sale financial assets
Available-for-sale financial assets refer to the non-derivative financial assts which appointed
available for sale when initially recognizes and the financial assets except for the above category
of the financial assets.
After the Group classifies certain financial assets as the financial assets measured by fair value
and included its changes in the current gains and losses when initially recognized, should not
re-classified as other financial assets; other financial assets also should not be re-classified as the
financial assets measured by fair value with its changes be included in the current gains and
losses.
② 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.
③ 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 Group as at fair value through profit or loss. The Group
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
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during the holding period are recognized in profit or loss for the current period. For the equity
instruments investment without quotation in the active market and the fair value could not be
reliable measured and the derivative financial assets linked up with the equity instruments and
should be settled through handing over to the equity instruments, should be measured according to
the cost.
④ Impairment provision of the financial assets
A. The Group 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 Group shall recognize impairment loss.
B. The objective evidences that the Group 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 Group 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 Group 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 Group 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 Group provides provision for impairment
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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 Group 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 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.
(3) Classification and measurement of financial liabilities
① The financial liabilities held by the Group are divided into the financial liabilities measured at
fair values and whose changes are recorded in current gains and losses and other financial
liabilities.
Financial liabilities measured by fair value and its changes included in the current gains and losses,
including trading financial liabilities and the financial liabilities appointed to be measured by fair
value with its changes included in the current gains and losses of the initial recognition.
The financial liabilities meeting any of the following requirements shall be classified as
transactional financial liabilities：A. The purpose to acquire the said financial liabilities is mainly
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for selling them in the near future; B. Forming a part of the identifiable combination of financial
instruments which are managed in a centralized way and for which there are objective evidences
proving that the enterprise may manage the combination by way of short-term profit making in the
near future; C. Being a derivative instrument, excluding the designated derivative instruments
which are effective hedging instruments, or derivative instruments to financial guarantee contracts,
and the derivative instruments which are connected with the equity instrument investments for
which there is no quoted price in the active market, whose fair value cannot be reliably measured,
and which shall be settled by delivering the said equity instruments.
The financial liabilities meeting any of the following requirements shall be designated as financial
liabilities which are measured at their fair values and the variation of which is recorded into the
profits and losses of the current period for initial recognition: A. the designation can eliminate or
significantly reduce the difference of relevant gains and losses between recognition and
measurement causing from different bases for measurement of financial assets; B. The official
written documents for risk management and investment strategies of the enterprise have clearly
stated that it shall, manage, evaluate and report to important management personnel based on the
fair value, about the financial liabilities group or the group of financial liabilities which the
financial liabilities are belong to; for the blender instruments including one or more items of
derivative instruments, unless there no significant changes of the cash flow of the blender
instruments by the embedded derivatives, or the embedded derivative instruments parentally
should be stripped off from the relevant blender instruments; including the blender instruments
that embedded into the derivative instruments needed to be stripped out but failed to execute
individual measurement when acquired or on the follow-up balance sheet date.
After the Group classifies certain financial liabilities as the financial liabilities measured by fair
value and included its changes in the current gains and losses when initially recognized, should
not re-classified as other financial liabilities; other financial liabilities also should not be
re-classified as the financial liabilities measured by fair value with its changes be included in the
current gains and losses.
② 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.
③ Subsequent measurement of financial liabilities
A. The Group 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.
(4) Recognition and measurement for transfer of financial assets
The Group derecognizes financial assets when the Group transfers substantially all the risks and
rewards of ownership of the financial assets. On derecognizing of a financial asset in its entirety,
the difference between the follows is recognized in profit or loss of the current period.
① the carrying amount of transferring financial assets;
② the 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
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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.
① the carrying amount allocated to the part derecognized;
② the 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 Group continues to recognize the transferred
asset in its entirety and shall recognize a financial liability for the consideration received.
When the Group continues to recognize a financial asset to the extent of its continuing
involvement, the Group 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 Group
has retained.
(5) De-recognition of financial liabilities
If the whole or partly of the current obligation of the financial liabilities of the Group is relieved,
should derecognize the financial liabilities or partly of it. The Group 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.
(6) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and shall
not be offset. As for the financial assets and financial liabilities satisfy the following conditions at
the same time, should be listed as the net amount within the balance sheet after the mutual offset:
the Group had the legal right of the offset recognized amount and the right was executable for the
moment; the Group planed to settle by net amount or at the same time discounted the financial
assets and liquidated the financial liabilities. For the transfer of the financial assets not satisfy the
de-recognition conditions, the transfer-out party should not offset the transfer financial assets and
the relevant liabilities.
11. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is
made individually
Judgement basis or monetary standards of provision for bad Accounts receivable with individual amount of more than 2
debts of the individually significant accounts receivable million (including 2 million).
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The Group made an independent impairment test on receivables
with significant single amounts; if there was objective evidence
indicated that the impairment had occurred should recognize the
Method of individual provision for bad debts of the individually
impairment losses and should withdraw the bad debt provision.
significant accounts receivable
The financial assets without impairment by independent
impairment test should be included in financial assets portfolio
with similar credit risk to take the impairment test.
(2) Accounts receivable which the bad debt provision is withdrawn by credit risk
characteristics
Name of portfolios Bad debt provision method
Portfolios 1 (accounts receivable among the companies within
Other method
the consolidated scope of the Group)
Portfolios 2 (accounts receivable except for the portfolios 1
which had not been impaired after the independent test, and the
Company analyzed and recognized the ratio of the withdrawal of
the bad debt provision combined with the current situation and
Aging of accounts
based on the actual losses rate of the accounts receivable group
which possessed the similar credit risk characteristics divided
according to the aging phase that were the same as or similar to
the previous years)
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Age
receivable receivable
Within 1 year (including 1 year) 3.00% 3.00%
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
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Name of portfolios
receivable receivable
Portfolios 1 0.00% 0.00%
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(3) Accounts receivable with an insignificant single amount but for which the bad debt
provision is made individually
The Group made independent impairment test on receivables
Reason of individually withdrawing bad debt provision with insignificant amount but with special impairment indicated
by objective evidence.
The impairment test is carries out individually, the Company
recognizes provision for impairment loss for the amount which is
Withdrawal method for bad debt provision 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 of inventory: inventory of the Group including the finished products or
commodities held in the daily activities for sales, the unfinished products in the production
process, the materials consumed in the production process or the process of providing the labor etc.
Which are specific divided as: raw materials, finished goods, and low-value consumption goods,
land use right held for real estate development, properties under development and completed
properties for sale.
(2) 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.
(3) Valuation method of inventories acquiring and issuing: 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.
(4) Amortization method of low-value consumption goods and wrappage: the low-value
consumption goods and wrappage should adopt the one time amortization according to the actual
situation when requiring.
(5) Measurement of the inventories at the period-end: on the balance sheet date, the inventory
should be measured according to the lower one between the cost and the net realizable value, if the
inventory cost higher than the net realizable value, should withdraw the falling provision of the
inventory and include in the current gains and losses.
① Estimation 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.
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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.
(6) The perpetual inventory system is maintained for stock system.
13. Divided as assets held for sale
(1) Recognition criteria of the assets held for sale
The Group recognizes the enterprise compose part (or the non-current assets, similarly hereinafter)
that simultaneously meets with the following conditions as assets held for sale:
① The compose part must be immediately sold only according to the usual terms of selling the
compose part of this kind under the current conditions;
② The relevant power institutions of the Group had made agreement on disposing the compose
part, if receive the approval from the shareholders accoridng to the rules, which equals to had
received the approved of the Annual General Meeting or the corresponding power institution;
③ The Group has signed the irrevocable transfer agreement with the assignee;
④ The sale transaction is highly probable to be completed within one year
(2) Accounting treatments of the assets held for sale
Non-current assets held for sale include single-item assets and disposal groups. Where a disposal
group is an asset group and the goodwill obtained in the business combination is apportioned to
the asset group according to the “Accounting Standard No. 8 for Business Enterprises—Asset
Impairment”, or a disposal group is an operation in such an asset group, the disposal group shall
include the goodwill in the business combination.
As for the non-current assets and disposal group which be classiied held for sale by the Group,
shall be measured at the lower one of the net amounts of the book value and the fair value after
deducting the disposal expense. If the net amount the fair value minuses the disposal expenses is
lower than the original book value, the difference should be included in the current gains and
losses as the assets impairment losses; if the held for sale is the disposal group, the assets
impairment losses should be firstly distributed to the goodwill and then included in the current
gains and losses by amortized according to the proportion and attributed to the other non-current
assets within the held for sale assets scope. The deferred income tax assets, the financial assets
standarized by No. 22 of ASBE-Recognition and Measurement of Financial Instruments,
investment property and biological asstes measured by fair value, contacts rights occurred from
the insurance contacts and the assets occurred from the employee benefits are not suit for the held
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for sale measurement, but be individually measured or be measured by being regarding as part of
certain disposal group according to the relevant criterion or the relevant accounting policies
formulated by the Group.
An asset or an disposal group was classified as held for sale before, but if it couldn’t meet the
recognition conditions for held-for-sale non-current asset later, the Company shall cease to
classify it as held for sale, and measure it by the lower amount of the followings: (1) its carrying
amount before the asset (or disposal group) was classified as held for sale, adjusted for any
depreciation, amortization or impairment before the asset (or disposal group) being classified as
held for sale; or (2) its recoverable amount on the date of the subsequent decision not to sell.
14. Long-term equity investments
Long-term equity investement including the equity investment on the subsidiaries, joint ventures
and associated enterprises.
(1) Initial measument
The Group initially measures long-term equity investments under two conditions:
① For long-term equity investment arising from business combination, the initial cost is
recognized under the following principles.
A. If the business combination is under the common control and the acquirer obtains long-term
equity investment in the consideration of cash, non-monetary asset exchange or bearing acquiree’s
liabilities, the initial cost is the carrying amount of the proportion of the acquiree’s owner’s equity
at the acquisition date. The difference between cash paid, the carrying amount of the
non-monetary asset exchanged and the acquiree’s liabilities beard and the initial cost of the
long-term equity investment should be adjusted to capital surplus. If the capital surplus is not
sufficient for adjustment, retained earning is adjusted respectively. The business combination
costs that are directly attributable to the combination, such as audit fees, valuation fees, 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
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business combination is the aggregate of the fair values, at the date of exchange, of assets given,
liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquiree;
b) For a business combination that involves more than one exchange transaction, the initial
investment cost is the summation of the book value of the equity interests of the acquiree held by
the Company before the acquisition date and the new investment cost on the acquisition date;
c) The fees incurred for audit, legal consultation, valuation services and other management
expenses are to be recognized in profit or loss at the time such costs incurred. The transaction
costs incurred by the acquirer for issuing equity securities or debt securities as the consideration of
the acquisition are to be recognized as the initial amount of such equity security or debt security.
d) Where a business combination contract or agreement provides for a future event which may
adjust the cost of combination, the Company shall include the amount of the adjustment in the cost
of the combination at the acquisition date if the future event leading to the adjustment is probable
and the amount of the adjustment can be measured reliably.
② For long-term equity investment obtained in any method other than business combination, the
initial cost is recognized under the following principles.
A. If the long-term equity investment is acquired in cash consideration, the initial cost is the actual
payment which includes direct expenses paid to acquire the long-term equity investment, taxes
and other necessary expense.
B. If the long-term equity investment is acquired by issuing equity securities, the initial cost is the
fair value of the equity securities issued. However, cash dividends or profits that are declared but
unpaid shall not be included in the initial cost. Direct costs attributed to issue equity securities
such as handling charges and commissions paid to securities underwriting agencies are deducted
from premium of equity securities. If the premium is not sufficient for deduction, reserved fund
and retained earnings is adjusted respectively.
C. For the long-term equity investment invested by investors, the initial cost is the agreed value
prescribed in the investment contract or agreement unless the agreed value is not fair.
D. For the long-term equity investment acquired through non-monetary asset exchange, the initial
cost is recognized according to “Accounting Standards for Business Enterprises No.
7-Non-monetary transactions”.
E. For the long-term equity investment acquired through debt restructuring, the initial cost is
recognized according to “Accounting Standards for Business Enterprises No. 12-Debt
restructuring”.
③ If 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
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The cost method is used among the individual financial statement when the long-term equity
invetsment could execute control on the investees.The equity method is used when the Company
has joint control or significant influence over the investee enterprise.
① The price of a long-term equity investment measured by adopting the cost method shall be
included at its initial investment cost and append as well as withdraw the cost of investing and
adjusting the long-term equity investment. As for the cash bonus or the profits be declared for
distribution by the investees should be recognized as the current investment income.
② If the initial cost of a long-term equity investment is more than the Company's attributable
share of the fair value of the invested entity's identifiable net assets for the investment, the initial
cost of the long-term equity investment may not be adjusted. If the initial cost of a long-term
equity investment is less than the Company's attributable share of the fair value of the invested
entity's identifiable net assets for the investment, the difference shall be included in the current
profits and losses and the cost of the long-term equity investment shall be adjusted
simultaneously.
After acquired the long-term equity investment, respectively recognize investment income and
other comprehensive income according to the net gains and losses as well as the portion of other
comprehensive income which should be enjoyed or be shared, and at the same time adjust the
book value of the long-term equity investment; corresponding reduce the book value of the
long-term equity investment according to profits which be declared to distribute by the investees
or the portion of the calculation of cash dividends which should be enjoyed; for the other changes
except for the net gains and losses, other comprehensive income and the owners’ equity except for
the profits distribution of the investees, should adjust the book value of the long-term equity
investment as well as include in the owners’ equities. The investing enterprise shall, on the ground
of the fair value of all identifiable assets of the invested entity when it obtains the investment,
recognize the attributable share of the net profits and losses of the invested entity after it adjusts
the net profits of the invested entity. If the accounting polices adopted by the investees is not
accord with that of the Group, should be adjusted according to the accounting policies of the
Group and the financial statement of the investees during the accounting period and according
which to recognize the investment income as well as other comprehensive income. The Group
shall recognize the net losses of the invested enterprise until the book value of the long-term
equity investment and other long-term rights and interests which substantially form the net
investment made to the invested entity are reduced to zero. However, if the Group has the
obligation to undertake extra losses, it shall be recognized as the estimated liabilities in
accordance with the estimated duties and then recorded into investment losses at current period. If
the invested entity realizes any net profits later, the Group shall, after the amount of its attributable
share of profits offsets against its attributable share of the un-recognized losses, resume
recognizing its attributable share of profits.
When calculating and recognizing the net gains and losses enjoyed or be burdened by the
investees, the part attributed to the Group which meausred according to the enjoyed proportion
from the unrealized internal transactoins with the joint ventures and associated enterprises should
be written off and be recognized as investment income on the basis. As for the unrealized internal
transactions losses attributed to the assets impairment losses occurred between the Group and the
investees, should be recognized in full amount.
③ When the Group disposing the long-term equity investment, as for the difference between the
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book value and the actual required price, should be included in the current gains and losses.As for
the long-term equity investment measured by equith method, when disposing the investment,
should execute the accounting treatment on the part which be originally included in the other
comprehensive income according to the correspoding proportion based on the same basic of the
relevant assets or liabilities be directly disposed by the investees.
(3) Basic of recognizing the joint control and significant influences on the investees
Joint control, refers to the control jointly owned according to the relevant agreement on an
arrangement by the Group and the relevant activities of the arrangement should be decided only
after the participants which share the control right make consensus. Significant influence refers to
the power of the Group which could anticipate in the finance and the operation polices of the
investees, but could not control or jointly control the formulation of the policies with the other
parties.
(4) Impairment test method and withdrawal method of impairment provision
The impairment test method and the withdrawal method of impairment provision of long-term
equity investment are executed according to the accounting polices of “Long-term assets
impairment” formulated by the Group.
15. Investment real estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
(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
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If the Group had definite evidence indicated the usage of the property had changed, when
transferring the self-used real estate or the inventories as the investment real estate or transferring
the investment real estate as the self-used real estate, the book value before the transfer should be
regarded as the entry value after transfer.
The Group 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.
16. Fixed assets
(1) Recognized standard
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) Depreciation methods
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Housing and building Straight-line depreciation 20-25 years 5-10% 3.8-4.5%
Machinery equipments Straight-line depreciation 10 years 5% 9.5%
Transportation vehicle Straight-line depreciation 5 years 5% 19%
Electronic and other
Straight-line depreciation 5 years 5% 19%
equipments
Decoration of fixed
Straight-line depreciation 5 years 0% 20%
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 Group will execute reexamine for the service life, estimated net salvage and the depreciation
method of the fixed assets after each accounting year. If there was difference between the service
life and the original estimated number, should adjust the useful life of the fixed assets; if there was
difference between the estimated net salvage and the original estimated number, should adjust the
estimated net salvage; if there were significant changes of the realization method of the economic
benefits related to the fixed assets, should changes the depreciation method of the fixed assets.
The changes of the useful life, estimated net salvage and the depreciation method of the fixed
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assets should be regarded as the accounting estimate changes.
Impairment of fixed asset refers to accounting policy “Long-term assets impairment” of the
Group.
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
The "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards
related to the ownership of an asset. Its ownership may or may not eventually be transferred. The
fixed assets by finance lease shall adopt the same depreciation policy for self-owned fixed assets.
If it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when
the lease term expires, the leased asset shall be fully depreciated over its useful life. If it is not
reasonable to be certain that the lessee will obtain the ownership of the leased asset at the expiry
of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term
or its useful life.
17. Construction in progress
(1) 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) 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 of construction in progress refers to accounting policy “Long-term assets
impairment” of the Group.
18. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs and capitalization period
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.
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
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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.
The term “assets eligible for capitalization” refers to the fixed assets, investment real estate,
inventories and other assets, of which the acquisition and construction or production may take
quite a long time to get ready for its intended use or for sale.
(2) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a
qualifying asset, the amount of borrowing costs eligible for capitalization on that asset is
determined as the actual borrowing costs incurred on that borrowing during the period less any
investment income on the temporary investment of the borrowing.
To the extent that funds are borrowed generally and used for the purpose of acquiring or
constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be
determined by applying a capitalization rate to the weighted average of excess of accumulated
expenditures on qualifying asset over that on specific purpose borrowing. The capitalization rate is
the weighted average rate of the general borrowings.
During the period of capitalization, the exchange balance on foreign currency special borrowings
shall be capitalized; the exchange balance on foreign currency general borrowings shall be
recorded into current profits and losses.
19. Biological assets
Inapplicable
20. Oil-gas assets
Inapplicable
21. Intangible assets
(1) Pricing method, useful life and impairment test
The term "intangible asset" refers to the identifiable non-monetary assets possessed or controlled by enterprises
which have no physical shape.
(1) 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.
(2) Measurement of intangible assets
①An intangible asset is measured initially at its cost.
②Subsequent measurement of intangible assets
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A．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.
At the end of period, the Group shall check the service life and amortization method of intangible
assets with finite service life, if there is any change, it shall be regarded as a change of the
accounting estimates. Besides, the Group shall check the service life of intangible assets without
certain service life, if there is any evidence showing that the period of intangible assets to bring
the economic benefits to the enterprise can be prospected, it shall be estimated the service life and
amortized in accordance with the amortization policies for intangible assets with finite service life.
Impairment of the intangible assets should be executed according to the accounting policies of
“Long-term assets impairment” formulated by the Group.
(2) Accounting polices of internal R & D expenses
Inapplicable
22. Impairment of long-term assets
Following indications indicate that there occurs the impairment:
(1) The current market price of the assets greatly decreased with the range of a price drop
obviously higher than the estimated decline owning to the passage of time or the normal employ.
(2) The environment the economy, technology and laws of the Group involved, and the market the
assets involved, if there are significant changes occur in the current period or in recent period,
would cause harmful influences on the Group.
(3) The market interests rate or other market investment return rate had improved in the current
period, thus influenced and the discount rate for calculating the estimated current value of the
future cash flow of the assets by the enterprises, which would led to the sharply decrease of the
recoverable amount.
(4) There are evidences indicate the assets are of obsolescence or the entity had been damaged.
(5) The assets had been or will be left unused, cease using or planed to dispose in advance.
(6) The evidence of the internal report of the Group indicant that the economy performance had
been lower or would be lower than estimations, for example, the net cash flow or the operation
profits (or losses) realized were far lower than the estimated amount etc.
(7) Other assets indicate there are indications there occurs the impairment.
The Group judges each assets such as the long-term equity investment, fixed assets, engineering
materials, intangible assets (except for those with uncertain usage life) which adapt to the No. 8 of
ASBE-Assets Impairment on the balance sheet date and executes the recover by impairment
test-estimations when there are impairment indications. The recoverable amount is recognized
through the fair value of the assets which minus the higher one between the net amount after
disposal and the current value of the assets estimated future cash flow. If the recoverable amount
lower than the book value of the assets, the book value should be written down as the recoverable
amount with the written-down amount be recognized as the assets impairment losses and included
in the current gains and losses and at the same time withdraw the assets impairment provision.
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If there are indications indicate any asset occur impairment, the Group usually estimates its
recoverable amount base on the individual asset. If it is difficult to estimate the recoverable
amount of the individual asset, which asset group it belongs to should be recognized the
recoverable amount base on the asset group.
The asset group is the smallest asset group that could be recognized by the Group, and its cash
inflow is basically independent of other asset or asset group. The asset group is composed by the
relevant assets which create the cash inflow. The recognition of the asset group is based on
whether the main cash inflow caused by the asset group is independent of the cash inflow of the
other assets or the asset group.
The Group executes the impairment test every year on the goodwill formed by the enterprise
combination and the intangible assets with uncertain service life no mater there are impairment
indications or not. The impairment test of the goodwill is executed by combining with the relevant
asset group or the asset group combination.
Once the assert impairment losses had been recognized, should not be reversed in the accounting
period afterwards.
23. 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.
24. Payroll
(1) Accounting treatment of short-term compensation
Employee compensation refers to the reward or compensation of various modes provided by the
Group which wants to receive the service offering by the employees or to execute the release of
the labor relationship. The employee compensation including the short-term salary, departure
benefits, demission benefits and other long-term employee benefits. The Group provides the
benefits for the spouses, children, supported families of the employees, the members of the
deceased's employees and other beneficiaries, which are also employee compensations.
The short-term compensation actually happened during the accounting period when the active
staff offering the service for the Group should be recognized as liabilities and is included in the
current gains and losses or relevant assets cost except for those be required or permitted to
included in the assets cost by other ASBE.
(2) Accounting treatment of the welfare after demission
The Group divides the departure benefits plan into defined contribution plans and defined benefit
plans. Benefits plan of after demission refer to the agreement between the Group and employees
on the departure benefits, or the regulations or methods formulated by the Group for providing
welfares after demission for the employees. Of which, defined contribution plans refers to the
departure benefits plan that the Group no more undertake the further payment obligations after the
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payment and deposit of the fixed expenses for the independent funds; defined benefit plans
refers to the departure benefits plan except for the defined contribution plans.
A. Defined contribution plans
During the accounting period when providing the service for the employees, the Group will
recognize the deposited amount as the liabilities which measured by defined contribution plans and
include in the current gains and losses or the relevant assets cost.
B.Defined benefit plans
Other long-term employee benefits the Group had not executed the defined contribution plans or
met with the conditions of defined benefit plans.
(3) Accounting treatment of the demission welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor
relationship or the layoff proposal, or when recognizing the costs or expenses (the earlier one
between the two) related to the reorganization of paying the demission welfare, should recognize the
payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting treatment of the welfare of the long-term employees
The Group provides the other long-term employee benefist for the employess, and for those met
with the defined contribution plans, should be disposed according to the above accounting polices of
the defined contribution plans; the for the others except for the former, should be recognized
according to above accounting polices of the defined benefit plans and measure the net liabiilties or
net assets of other long-term employee benefits.
25. Estimated liabilities
(1) Recognition criteria of estimated liabilities
The company should recognize the related obligation as a provision for liability when the
obligation meets the following conditions:
①That obligation is a present obligation of the enterprise;
②It is probable that an outflow of economic benefits from the enterprise will be required to settle
the obligation;
③A reliable estimate can be made of the amount of the obligation.
(2) Measurement of estimated liabilities
To fulfill the present obligations, which initially measured by the best estimate of the expenditure
required to settle the liability. Where there is a continuous range of possible amounts of the
expenditure required to settle the liability, as all kinds of possibilities are at same level, the best
estimate should be determined according to the average of the lower and upper limit of the range.
In other cases, the best estimate should be determined in accordance with the following methods:
①Where the contingency involves a single item, the best estimate involves a singe item, the best
estimate should be determined according to the most likely outcome;
②Where the contingency involves several items; The best estimate should be determined by
weighting all possible outcomes by their associated probabilities of occurrence.
To determine the best estimate, it should be considered with factors such as: related contingency
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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 Group 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.
26. Share-based payment
Inapplicable
27. Other financial instruments such as preferred shares and perpetual capital securities
Inapplicable
28. Revenue
The revenue of the Group including the commodities sales revenue, real estate sales revenues,
property leasing revenues, labor revenues and the revenues from the using of the assets of the
Company by others.
(1) Commodities sales revenues
The Group had transferred the major risks and the remunerations of the ownership of the
commodities to the buyers and neither remained the continuous management right that usually
related to the ownership nor executed the efficient control of the sold commodities. As for the
revenues amount and the relevant costs occurred or will occurr which could be reliable measured,
should confirm the revenues of the sales of the commodities when the relevant economic benefits
would probably flow into the enterprise.
The revenues of the sales of the commodities of the Group were mainly the sales revenues of the
commercial residential buildings. The sales of the properties of the Group had executed
completion acceptance that had transferred to the buyers or be regarded as had transferred to the
buyers according to the sales contacts as well as confirmed the realization of the revenues when
executing the liquidation of the sales amount of the commercial residential buildings (the
mortgage purchase way of the buildings were the receipted down payment and the bank mortage
amount).
(2) Provide labor income
The labor income provided by the Group mainly comes from property management income,
project supervision service income and catering service income.
Property management income: the property management income is realized when the property
management service has been provided and the service fee as agreed with the owner is able to
flow into the enterprise.
Other labor income: the labor income is realized when the labor service has been provided and the
related economic interest is able to flow into the enterprise and related cost is able to be reliably
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measured.
(3) Income from transferring asset use right
The income from transferring asset use right includes property lease income, taxi income, interest
income and other use right income.
Property lease income: the property lease income is realized by the method of straight line as
agreed in the lease contract or agreement signed with the leasee. If there are lease periods free of
any rent, the lessor shall distribute the total rent, not deducting the rent during those periods free
of any rent, within the entire lease period by the method of straight line or other reasonable means.
During the periods free of any rent, the lessor shall recognize the lease income.
Taxi income: the taxi income is recognized as the contract amount agreed under the contracting
contract or agreement signed with the contractor.
Interest income: the interest income is recognized by the duration you use the Company’s cash
and the applicable interest rate. The fee income is recognized by the charging time and method as
regulated in related contract or agreement.
Income from other use right: the income from transferring asset use right is recognized when the
income amount is able to be reliably measured and related economic interest is possible to flow
into the enterprise.
29. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government subsidies divides into the government subsidies related to the assets and the
government subsidies realted to the profits. The government subsidies pertinent to assets mean the
government assets that are obtained by enterprises used for purchase or construction, or forming
the long-term assets by other ways.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
② The grants will be received from government.
(2) Measurement of the government subsidies:
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.
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③ As for the confirmed repayment of government grants should be handled respectively
according to the following situation:
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.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The government subsidies divides into the government subsidies related to the assets and the
government subsidies realted to the profits. The government subsidies pertinent to income refer to
all the government subsides except those pertinent to assets. If the government subsidies
documents had not definitely confirm the subsidy targets, the Group should divide them as the
government subsidies related to profits except for those be indicated by the clear evidence that
belongs to the government subsidies related to assets.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
② The grants will be received from government.
(2) Measurement of the government subsidies:
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 As for the confirmed repayment of government grants should be handled respectively
according to the following situation:
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.
30. Deferred income tax assets/deferred income tax liabilities
The Company executes the accounting treatments of the income tax by adopting the balance sheet
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liability method. (1) Deferred income tax assets
① Where there are deductible temporary differences between the carrying amount of assets or
liabilities in the balance sheet and their tax bases, a deferred tax asset shall be recognized for all
those deductible temporary differences to the extent that it is probable that taxable profit will be
available against which the deductible temporary difference can be utilized. Deferred tax assets
arising from deductible temporary differences should be measured at the tax rates that are
expected to apply to the period when the asset is realized or the liability is settled.
② At the balance sheet date, where there is strong evidence showing that sufficient taxable profit
will be available against which the deductible temporary difference can be utilized, the deferred
tax asset unrecognized in prior period shall be recognized.
③ The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If
it’s probable that sufficient taxable profit will not be available against which the deductible
temporary difference can be utilized, the Company shall write down the carrying amount of
deferred tax asset, or reverse the amount written down later when it’s probable that sufficient
taxable profit will be available.
(2) 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.
31. Lease
(1) Accounting treatment 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
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lease such as handling fees, legal fees, travel expenses, stamp tax shall be counted as lease asset
value; the unrecognized financing charges shall be apportioned at each period during the lease
term and adopt the effective interest rate method to calculate and confirm the current financing
charge; Contingent rents shall be charged as expenses in the periods in which they are incurred.
When the lessee calculates the present value of the minimum lease payments, for that lessee who
can obtain the interest rate implicit in the lease, the discount rate shall be the interest rate implicit
in the lease; otherwise the discount rate shall adopt the interest rate specified in the lease
agreement. If the lessee can not get the interest rate implicit in the lease and there is no specified
interest rate in the lease agreement, the discount rate shall adopt the current bank loan interest rate.
Lessees shall depreciate the leased assets with the depreciation policy which is consistent with the
normal depreciation policy for similar assets. If there is reasonable certainty that the lessee will
obtain ownership by the end of the lease term, the depreciation shall be allocated to the useful life
of the asset. If there is no reasonably certainty that the lessee will obtain ownership by the end of
the lease term, the asset shall be depreciated over the shorter of the lease term and its useful life.
On the initial date of financial lease, lessee of the financial lease shall record the sum of the
minimum lease payments and initial direct costs as the financing lease accounts receivable, and
also record the non-guaranteed residual value; recognize the difference between the total
minimum lease payments , initial direct costs, non-guaranteed residual value and sum of the
present value as the unrealized financing income; the unrealized financing income shall be
distributed to each period over the lease term; adopt the actual interest rate to calculate the current
financial income; Contingent rents shall be charged as expenses in the periods in which they are
incurred.
32. Other significant accounting policies and estimates
(1) Measurement of fair value
Fair value refers to the price received from selling any asset or paid for transferring any liability in
the orderly transactions that occur on the measurement date of the market participants. The Group
should consider the characteristics of the assets or liabilities when measuring the relevant assets or
liabilities by fair value; to suppose the transactions of selling or transferring the assets on the
measurement date by the market participants is the orderly transactions under the conditions of the
current market; to suppose the orderly transaction of selling or transferring the assets is executing
in the market of the relevant assets or liabilities; to suppose the transaction is executing in the
most favorable market of the relevant assets or liabilities if there is no any main market. The
Group adopts the advice used when pricing the assets or liabilities for realizing the maximum of
the economy benefits by the market participants.
The Group judges the fair value of initial recognition whether is equal to the transaction price
according to the characteristics of the relevant assets or liabilities with transaction nature etc.; if
the transaction price and fair value is not equal, should include the relevant gains or losses in the
current gains and losses except for those stipulated by other relevant ASBE.
The Group adopts the assessment technology which adapt to the current conditions with sufficient
available data and other information support, and the assessment technology mainly including the
market method, equity method and cost method. In the application of the assessment technology,
the Group should prefer the relevant observable input value and only when the relevant observable
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input value could not be required or required the not feasible value, could use the not observable
input value.
The input value used for the fair value measurement is divided into three levels and the first level
of the input value is initially used, then come to the second level and the third one the last. The
first level input value is the quotation acquired from the activa market of the same assets or
liabilities that had not be adjusted; the second input value is the input value could be directly or
indirecly observed of the relevant assets or liabilities except for the first level input value; the third
level input value is the not observable input value of the relevant assets or liabilities.
The Group measures the non-financial assets by fair value by considering the ability of the market
participants when using the assets for the best purpose for causing the economy benefits or the
ability to sell the assets to the other market participants which can use them with the best purpose
for causing the economy benefits. The Group supposes to transfer the liabilities to other market
participants on the measurement date and the liabilities would be continue to exist after the
transfer as well as to be as the market participants of the transfees to execute the obligation when
measuring the liabilities by fair value. The Group supposes to transfer the self equity instruments
to other market participants on the measurement date and the self equity instruments would be
continue to exist after the transfer as well as to acquire the relevant rights and to undertake the
relevant obligations as the market participants of the transfees.
(2) Operation termination
Operation termination refers to the compose part that meet with one of the following conditions
which had been disposed by the Group or be classified to held-to-sold as well as could be
individually distinguished in operating and compiling the financial statement: ① the compose
part represents an individual main business or a main operation area; ② the compose part is a
part intends to dispose and plan an individual main business or a main operation area; ③ the
compose part is a subsidiary which be acquired only for resold.
(3) Segmental report
The Group recognizes the operating segments according to the internal organization structure, the
management requirements and the internal report system and recognizes the reporting segments
and discloses the segmental information according base on the operating segments.
Operating segments refer to the compose parts of the Group which meet with the following
conditions at the same time: (1) the compose part could cause revenues and expenses in the daily
activities; (2) the management layer could periodically evaluate the operation results of the
compose part and base which to distribute the resources and evaluate the performance;(3) the
Group could acquire the relevant accounting information of the financial conditions, operation
results and the cash flows of the compose part. If two or more operating segments own the similar
economy characteristics and meet with certain conditions, could be combining as an operating
segment.
(4) Quality margin
According to the regulations of the construction contact, the Group should execute the retention of
the quality margin for construction organizations and should include which into the “accounts
payable” and to pay according to the actual situation and the contacts agreement after the
guarantee period.
(5) Maintenance funds
The received public maintenance funds for the entrusted management of the owner from the
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property management company of the Group should be included in the “non-current liabilities”,
which were specially used for the maintenance and updating for the residential common areas,
common equipments and the communal facilities of the realty management area.
33. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable √ Inapplicable
(2) Change of main accounting estimates
□ Applicable √ Inapplicable
34. Other
Inapplicable
VI. 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 15%, 16.5%, 20%, 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 real Four progressive levels with the tax rate
Land value appreciation tax
property ranging from 30% to 60%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Chongqing Aobo Elevator Co., Ltd. 20%
Subsidiaries registered in Hong Kong area 16.5%
Other taxpaying bodies within the consolidated scope 25%
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Tax preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the
encouraging category of the Guidance Catalogue of Industry Constructure Adjustment (Y2011),
the western industry met with the conditions should be collected the corporate income tax
according to 15% of the tax rate. The subsidiary of the Group Chongqing Shenzhen International
Trade Center Property Management Co., Ltd. had be regarded as the western enterprise of the
property service by Local Taxation Bureau of Chongqing Jiulong District on 4 May 2014, and had
be collected the corporate income tax according to 15% of the tax rate.
According to the regulations of the notice of the income tax preferential policies of the s
mall low-profit enterprises issued by SAT of CS [2015] No. 34, from 1 Jan. 2015 to 31
Dec. 2017, as for those small low-profit enterprises with the annual after-tax amount lowe
r than RMB0.2 million (including RMB0.2 million), of which 50% of the revenues should
be included into the taxable income and should be collected the corporate income tax ac
cording to 20% of the tax rate.
3. Other
Inapplicable
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Item Closing balance Opening balance
Cash on hand 208,170.99 199,841.15
Bank deposits 930,987,796.17 806,458,046.62
Other monetary funds 14,544,008.61 2,305,488.91
Total 945,739,975.77 808,963,376.68
Of which: the total amount deposited
50,515,270.67 46,940,545.88
overseas
Other notes
The restricted L/G deposits used at the period-end were the cash deposits paid by the subsidiary of
the Company-Dongguan International Trade Center Changsheng Property Development Co., Ltd.
by entrusting the commercial bank to issue the Commercial Housing Quality Guarantee Letter.
Owning the subsidiary of the Company-Dongguan International Trade Center Changsheng
Property Development Co., Ltd. was the real estate development enterprise with provisional
qualification, when handling the application of the pre-sale permit of the commercial residential
housing should submit the quality guarantee letter of the commercial residential housing after the
liquidation situation such as the enterprise bankruptcy and dissolution. The guarantee letter was
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
the irrepealably commercial residential quality guarantee letter, of which the guarantee period of
RMB1,468,870.00 was from 30 Jun. 2015 to 31 Dec. 2020 and the guarantee period of the
remained RMB10,933,290.00 was from 1 Jul. 2015 to 31 Dec. 2020.
2. Financial assets measured by fair value and the changes be included in the current gains
and losses
Unit: RMB Yuan
Item Closing balance Opening balance
Other notes:
3. Derivative financial assets
□ Applicable √ Inapplicable
4. Notes receivable
(1) Notes receivable listed by category
Unit: RMB Yuan
Item Closing balance Opening balance
(2) Notes receivable pledged by the Company at the period-end
Unit: RMB Yuan
Item Amount
(3) Notes receivable which had endorsed by the Company or had discounted and had not
due on the balance sheet date at the period-end
Unit: RMB Yuan
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the
contract or agreement
Unit: RMB Yuan
Amount of the notes transferred to accounts receivable at the
Item
period-end
Other notes
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with significant
102,216, 102,216, 107,016 107,016,1
single amount with 70.30 100.00 77.64% 100.00%
173.89 173.89 ,173.89 73.89
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
41,288,5 2,516,36 38,772,14 28,933, 2,348,398 26,585,132.
provision according 28.40 6.09 20.99% 8.12%
06.76 0.35 6.41 530.20 .08 12
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 1,884,02 1,884,02 1,884,0 1,884,022
1.30 100.00 1.37% 100.00%
which bad debt 2.38 2.38 22.38 .38
provision separately
accrued
145,388, 106,616, 38,772,14 137,833 111,248,5 26,585,132.
Total 100.00 73.33 100.00% 80.71%
703.03 556.62 6.41 ,726.47 94.35 12
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end：
√Applicable □ Inapplicable
Unit: RMB Yuan
Accounts receivable Closing balance
(classified by units) Accounts receivable Bad debt provision Proportion Reason
Involved in lawsuit and
Shenzhen Jiyong
no executable property,
Properties & Resources 93,811,328.05 93,811,328.05 100.00%
and see details in Notes
Development Company
(XII) 2 (1)
Shenzhen Tewei Industry 2,836,561.00 2,836,561.00 100.00% Uncollectible for a long
123
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Co., Ltd. period
Poor operating
Shenzhen Lunan Industry
2,818,284.84 2,818,284.84 100.00% conditions, uncollectible
Development Co., Ltd.
for a long period
Uncollectible for a long
Zhou Tanjin 2,750,000.00 2,750,000.00 100.00%
period
Total 102,216,173.89 102,216,173.89 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 38,918,893.83 1,167,937.44 3.00%
Subtotal within 1 year 38,918,893.83 1,167,937.44 3.00%
1 to 2 years 263,749.39 26,374.93 10.00%
2 to 3 years 1,025,783.92 307,735.18 30.00%
3 to 4 years 113,573.39 56,786.70 50.00%
4 to 5 years 44,900.63 35,920.50 80.00%
Over 5 years 921,605.60 921,605.60 100.00%
Total 41,288,506.76 2,516,360.35 6.09%
Notes of the basis of recognizing the group:
The basic of recognizing the group refers to Notes V. 11 of Section X. of the report.
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 accrue bad debt provision:
Inapplicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB167,962.27; the amount
of the reversed or collected part during the reporting period was of RMB4,800,000.00.
Of which the significant amount of the reversed or collected part during the reporting period:
Unit: RMB Yuan
Name of the units Reversed or collected amount Method
Total 4,800,000.00 --
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(3) The actual write-off accounts receivable
Unit: RMB Yuan
Item Amount
0.00
Of which the significant actual write-off accounts receivable:
Unit: RMB Yuan
Whether occurred
Name of the units Nature Amount Reason Process from the related
transactions
Total -- 0.00 -- -- --
Notes of the write-off the accounts receivable:
There was no write-off the accounts receivable.
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears
party
Name of units Closing balance Proportion of the total year Closing balance of bad
end balance of the accounts debt provision
receivable (%)
Shenzhen Jiyong Properties & Resources
Development Company 93,811,328.05 64.52 93,811,328.05
Huawei Technologies Co Ltd 10,325,622.57 309,768.68
7.10
2,836,561.00 2,836,561.00
Shenzhen Tewei Industry Co., Ltd.
1.95
Shenzhen Lunan Industry Development 2,818,284.84 2,818,284.84
Co., Ltd. 1.94
2,750,000.00 2,750,000.00
Zhou Tanjin
1.89
Total
112,541,796.46 77.40 102,525,942.57
(5) Account receivable which terminate the recognition owning to the transfer of the
financial assets
Inapplicable
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(6) The amount of the assets and liabilities formed by the transfer and the continues
involvement of accounts receivable
Inapplicable
Other notes:
Inapplicable
6. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 20,734,383.56 72.97% 24,605,664.84 94.68%
1 to 2 years 6,602,570.30 23.24% 1,374,527.95 5.29%
2 to 3 years 1,070,523.28 3.77% 8,600.00 0.03%
Over 3 years 8,256.29 0.02% 1,039.45
Total 28,415,733.43 -- 25,989,832.24 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment
target
Top 5 of the closing balance of the prepayment were as follows:
Name of the unit Closing balance Proportion of the total year end balance of the
accounts receivable (%)
Prepayment of taxes 19,900,230.79 70.03
Name of the unit Closing balance Proportion of the total year end balance of the
accounts receivable (%)
Shenzhen Guangan Firefighting & Decoration 243,124.00 0.86
Engineering Co., Ltd.
Jinan Central District Housing Security and Land and 127,142.20 0.45
Property Management Authority
Shenzhen Institute of Building Research Co., Ltd. 40,000.00 0.14
Total 27,963,590.57 98.41
Notes 1: According to the regulations of the Enforcement Regulation of the Provisional
Regulations of the Business Tax to transfer the land use right or to sell the real estate, and for
those adopting the prepayment (including receiving the deposits in advance) method, the
occurrence time of the rateability was the date receiving the prepayments. The surplus prepay
taxes of the Company was the taxes such as the property prepayments had not reached the revenue
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
recognition conditions and the business taxes, urban construction taxes, education surtaxes that
paid in advance.
Notes 2: Social security charges in building industry refer to the social security expenses the
construction enterprises pay for the employees such as the endowment insurance, medical
insurance, unemployment insurance, work-related injury insurance and maternity insurance
(including Individual pay part). Take the engineering project as unit, to execute the unified
payment standard, to collect uniformly from the construction units and uniformly settled by the
construction enterprises.
Other Notes:
7. Interest receivable
(1) Category of interest receivable
Unit: RMB Yuan
Item Closing balance Opening balance
(2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason impairment and its
judgment basis
Other notes:
Inapplicable
8. Dividend receivable
(1) Dividend receivable
Unit: RMB Yuan
Item (or investees) Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
Unit: RMB Yuan
Whether occurred
Item (or investees) Closing balance Aging Reason impairment and its
judgment basis
Other notes:
Inapplicable
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with significant
90,718,7 87,150,3 3,568,421 92,351, 92,351,15
single amount with 75.46% 96.07% 76.80% 100.00%
39.20 17.92 .28 159.68 9.68
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
19,789,4 11,738,3 8,051,082 18,187, 11,549,19 6,638,425.2
provision according 16.46% 59.32% 15.12% 63.50%
22.31 40.12 .19 620.34 5.09 5
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 9,711,26 9,711,26 9,717,2 9,717,262
8.08% 100.00% 8.08% 100.00%
which bad debt 2.51 2.51 62.51 .51
provision separately
accrued
120,219, 108,599, 11,619,50 120,256 113,617,6 6,638,425.2
Total 100.00% 90.33% 100.00% 94.48%
424.02 920.55 3.47 ,042.53 17.28 5
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
√ Applicable □ Inapplicable
Unit: RMB Yuan
Other accounts Closing balance
receivable (classified by Other accounts
Bad debt provision Withdrawal proportion Reason
units) receivable
No payed assets
Gintian Industry (Group) according to the
56,600,000.00 53,031,578.72 93.70%
Co., Ltd. creditors’ reorganization
plan
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Anhui Nanpeng Unrecoverable for a long
8,047,712.00 8,047,712.00 100.00%
Papermaking Co., Ltd. term
Shenzhen Shengfenglu,
No executable finance
GUOMAO Jewel & Gold 6,481,353.60 6,481,353.60 100.00%
and difficult to recover
Co., Ltd.
Shanghai Yutong Real
Difficult to recover the
estate development Co., 5,676,000.00 5,676,000.00 100.00%
lawsuit judgment
Ltd.
Unrecoverable for a long
Wuliangye Restaurant 5,523,057.70 5,523,057.70 100.00%
term
Hong Kong Yueheng Unrecoverable for a long
3,271,837.78 3,271,837.78 100.00%
Development Co., Ltd. term
Dameisha Tourism Projects construction ce
2,576,445.69 2,576,445.69 100.00%
Center ased
Projects construction
Elevated Train Project 2,542,332.43 2,542,332.43 100.00%
ceased
Total 90,718,739.20 87,150,317.92 -- --
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year (including 1 year) 5,378,303.53 161,349.08 3.00%
Subtotal within 1 year 5,378,303.53 161,349.08 3.00%
1 to 2 years 1,992,771.46 199,277.15 10.00%
2 to 3 years 1,089,014.70 326,704.39 30.00%
Over 3 years 518,494.02 259,247.01 50.00%
3 to 4 years 95,380.55 76,304.44 80.00%
4 to 5 years 10,715,458.05 10,715,458.05 100.00%
Over 5 years 19,789,422.31 11,738,340.12 59.32%
Notes of the basis of recognizing the group:
The basis recognizing the group refers to Notes V. 11 of Section X of the report.
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 accrue bad debt provision:
□ Applicable √ Inapplicable
129
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB185,960.87; the amount
of the reversed or collected part during the reporting period was of RMB3,574,421.28.
Of which the significant amount of the reversed or collected part during the reporting period:
Unit: RMB Yuan
Name of units Reversed or collected amount Method
Gintian Industry (Group) Co., Ltd. 3,568,421.28 Debt-to-equity swap
Total 3,568,421.28 --
The reserve was according to the creditors’ reorganization plan.
(3) The actual write-off other accounts receivable
Unit: RMB Yuan
Item Amount
Of which the significant write-off other accounts receivable:
Unit: RMB Yuan
Whether occurred
Name of units Nature Amount Reason Process from the related
transactions
Total -- 0.00 -- -- --
Notes of write-off other accounts receivable:
There was no write-off other accounts receivable.
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB Yuan
Nature Closing book balance Opening book balance
Margin 12,540,024.90 10,175,218.68
Pretty cash borrowing 772,557.45 507,093.70
Accounts receivable of the related
9,985,704.65 12,337,357.13
companies
Accounts receivable of the non-related
96,921,137.02 97,236,373.02
companies
Total 120,219,424.02 120,256,042.53
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the
arrears party
Unit: RMB Yuan
Proportion of the
total year end Closing balance of
Name of units Nature Closing balance Aging balance of the bad debt provision
accounts receivable
(%)
Accounts receivable
Gintian Industry
of the non-related 56,600,000.00 Over 5 years 47.08% 53,031,578.72
(Group) Co., Ltd.
companies
Anhui Nanpeng Accounts receivable
Papermaking Co., of the related 8,047,712.00 Over 5 years 6.69% 8,047,712.00
Ltd. companies
Shenzhen
Accounts receivable
Shengfenglu,
of the non-related 6,481,353.60 Over 5 years 5.39% 6,481,353.60
GUOMAO Jewel &
companies
Gold Co., Ltd.
Shanghai Yutong
Accounts receivable
Real estate
of the non-related 5,676,000.00 Over 5 years 4.72% 5,676,000.00
development Co.,
companies
Ltd.
Accounts receivable
Shenzhen Wuliangye
of the non-related 5,523,057.70 Over 5 years 4.59% 5,523,057.70
Restaurant
companies
Total -- 82,328,123.30 -- 68.48% 78,759,702.02
(6) Accounts receivable involved with government subsidies
Unit: RMB Yuan
Project of government Estimated received time,
Name of units Closing balance Closing age
subsidies amount and basis
Total -- 0.00 -- --
Inapplicable
(7) Other account receivable which terminate the recognition owning to the transfer of the
financial assets
Inapplicable
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(8) The amount of the assets and liabilities formed by the transfer and the continues
involvement of other accounts receivable
Inapplicable
Other notes:
Inapplicable
10. Inventory
(1) Category of inventory
Unit: RMB Yuan
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 1,602,571.24 529,191.39 1,073,379.85 1,693,606.29 542,130.04 1,151,476.25
Inventory goods 54,087.62 54,087.62 48,639.56 48,639.56
Low-value consumption
116,472.20 116,472.20 258,564.20 258,564.20
goods
Products held for
real estate 121,070,697.97 6,648,404.13 114,422,293.84 118,834,981.63 6,648,404.13 112,186,577.50
development
Completed
315,453,876.53 315,453,876.53 141,326,022.02 141,326,022.02
properties for sale
Properties under
2,135,119,545.31 99,897,376.50 2,035,222,168.81 2,068,501,391.67 2,068,501,391.67
development
Total 2,573,417,250.87 107,074,972.02 2,466,342,278.85 2,330,663,205.37 7,190,534.17 2,323,472,671.20
(2) Falling price reserves of inventory
Unit: RMB Yuan
Increased amount Decreased amount
Item Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 542,130.04 -12,938.65 529,191.39
Land to be deve
6,648,404.13 6,648,404.13
loped
Properties under 99,897,376.50 99,897,376.50
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
development
Total 7,190,534.17 99,884,437.85 107,074,972.02
(3) Notes of the closing balance of the inventory which includes capitalized borrowing
expenses
The closing balance of the inventory included the total amount of the capitalized borrowings was
of RMB84,253,102.56.
(4) Completed unsettled assets formed from the construction contact at the period-end
Unit: RMB Yuan
Item Amount
Accumulative occurred cost 0.00
Accumulative recognized gross margin 0.00
Less: estimated losses 0.00
Amount had executed settlement 0.00
Other notes:
Specific details of the inventories were as follows:
A. Land to be developed
Item Closing balance
Book balance Falling price reserve Book value
Hainan Qiongshan Land 6,648,404.13 6,648,404.13
Fuchang Phase II Land 5,940,627.11 5,940,627.11
Shenhui Garden Land 36,824,440.89 36,824,440.89
Shenzhen Properties & 71,657,225.84 71,657,225.84
ResourcesBanshan Yujing Phase
II Land
Total 121,070,697.97 6,648,404.13 114,422,293.84
Item Opening balance
Book balance Falling price Book value
reserve
Hainan Qiongshan Land 6,648,404.13 6,648,404.13
Fuchang Phase II Land 5,895,627.11 5,895,627.11
Shenhui Garden Land 36,682,840.89 36,682,840.89
Shenzhen Properties & ResourcesBanshan Yujing 69,608,109.50 69,608,109.50
Phase II Land
Total 118,834,981.63 6,648,404.13 112,186,577.50
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
B. Properties under development
Item Start time Estimate Estimated total Period-end Year-begin
d investment
completi Book balance Capitalized interest Book balance Capitalized interest
balance balance
on time
Shenzhen 2011.09 2016.12 645,146,600.00 498,973,613.05 27,205,315.95 450,741,685.32 27,205,315.95
Properties &
ResourcesBan
shanyujing
Phase I
Shenzhen 2013.04 2015.06 392,186,872.53 10,446,911.43
Properties &
ResourcesHu
panyujing
Phase I
Shenzhen 2015.08 2017.08 653,380,000.00 440,834,282.15 372,672,889.65
Properties &
ResourcesHu
panyujing
Phase II
Shenzhen 2014.02 2016.10 799,200,000.00 448,310,252.81 10,944,354.97 315,161,554.23 6,394,471.23
Properties &
ResourcesQia
nhai Harbor
Shenzhen 2014.03 2018.12 1,521,400,000.0 146,379,982.82 3,858,872.36 111,310,253.41 2,267,136.76
Properties & 0
ResourcesJinl
ing Holiday
Shenzhen 2012.01 2016.12 895,230,000.00 600,621,414.48 30,357,575.40 426,428,136.53 17,022,072.09
Properties &
ResourcesSon
ghu Langyuan
Total 2,135,119,545.3 72,366,118.68 2,068,501,391.6 63,335,907.46
1 7
C. Completed properties for sale
Item Completion Opening Increase Decrease Closing balance Falling
time balance price
reserve
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
International Trade Center 1995.12 7,372,250.95 7,372,250.95
Plaza
Huangyuyuan A Area 2001.06 790,140.58 790,140.58
Podium Building of 1999.11 6,421,447.63 5,775,914.98 645,532.65
Fuchang Building
2010.06 692,134.84 692,134.84
Shenzhen Properties &
ResourcesXihua Town
2012.12 118,828,569.47 317,942.24 91,991,919.11 27,154,592.60
Shenzhen Properties &
ResourcesLangqiao
International
2013.03 4,470,745.52 308,792.87 4,779,538.39
Shenzhen Properties &
ResourcesCaitianyise
Shenzhen Properties & 2015.06 413,694,461.80 137,645,969.92 276,048,491.88
ResourcesHupan Yujing
Phase I
Other projects 2,750,733.03 2,750,733.03
Total 141,326,022.02 414,321,196.91 240,193,342.40 315,453,876.53
11. Assets divided as held-to-sold
Unit: RMB Yuan
Estimated disposal
Item Closing book value Fair value Estimated disposal time
expense
Other notes:
Inapplicable
12. Non-current assets due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Other notes:
Inapplicable
13. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
1. Property receivable of F14, F15 of
174,382,120.00
Longyuan Chuangzhan Building
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Original value of the assets group held
69,437,140.28 69,437,140.28
to distribute to the owners-Hainan Xinda
Impairment provision of the assets group
held to distribute to the owners-Hainan -69,437,140.28 -69,437,140.28
Xinda
3. Original value of the assets group held
6,034,625.03
to cancel after verification
Depreciation reserves of the assets group
-6,034,625.03
held to cancel after verification
Total 174,382,120.00
Other notes:
Notes 1: as for the situation of the property receivable of F14, F15 of Longyuan Chuangzhan
Building, please refer to Notes XIV. 2 of Section X. Financial Report.
Notes 2: Assets group held to distribute to the owners-Hainan Xinda were the assets from the
calculation of the original long-term equity investment and the other accounts receivable of the
Company after the 2014 bankruptcy liquidation process of the original subsidiary of the
Company-Hainan Xinda Development Corporation and had reported as the other current assets
since 2014 with the specific assets list as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 20,000,000.00 20,000,000.00
Other accounts receivable 49,437,140.28 49,437,140.28
Total 69,437,140.28 69,437,140.28
Up to the period-end, the bankruptcy and liquidation administrator had not found out the
available-for-cash property of Hainan Xinda Development Corporation with the bankruptcy and
liquidation process was under executon.
Notes 3: Assets group held to cancel after verification were the long-term equity investment and
the other accounts receivable of the original associated enterprise-Shenzhen International Trade
Center Industrial Development Co., Ltd.. The enterprise had been written off by the bankruptcy
and liquidation administrator in Apr. 2015 and owning to the cancellation and verification process
had not been complete, the above assets were reported as the other current assets since 2015 with
the specific assets list as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 3,682,972.55 3,682,972.55
Other accounts receivable 2,351,652.48 2,351,652.48
Total 6,034,625.03 6,034,625.03
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB Yuan
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity
32,501,237.68 18,001,237.68 14,500,000.00 38,398,429.06 19,905,429.06 18,493,000.00
instruments
Measured by fair value 6,153,300.45 2,160,300.45 3,993,000.00
Measured by cost 32,501,237.68 18,001,237.68 14,500,000.00 32,245,128.61 17,745,128.61 14,500,000.00
Total 32,501,237.68 18,001,237.68 14,500,000.00 38,398,429.06 19,905,429.06 18,493,000.00
(2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB Yuan
Available-for-sale equity Available-for-sale debt
Category Total
instruments instruments
Cost of the equity
instruments/amortized
0.00
cost of the liabilities
instruments
Fair value 0.00
Changed amount of the
fair value accumulatively
0.00
included in other
comprehensive income
Withdrawn impairment
0.00
amount
(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB Yuan
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
in in among the reporting
investees period
North
Machinery 3,465,000. 3,465,000. 3,465,000. 3,465,000.
12.66%
(Group) 00 00 00 00
Co., Ltd.
Guangdon 8,780,645. 8,780,645. 8,780,645. 8,780,645.
8.47%
g Huayue 20 20 20 20
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Real
Estate Co.,
Ltd.
Shenzhen
Internation
al Trade
8,500,000. 8,500,000.
Center 100.00%
00 00
Petroleum
Company
Limited
Guangzho
u
6,000,000. 6,000,000.
Lishifeng 30.00%
00 00
Automobil
e Co., Ltd.
Sanya East
1,350,000. 1,350,000. 1,350,000. 1,350,000.
Travel 0.28%
00 00 00 00
Co., Ltd.
Shensan
17,695.09 17,695.09 17,695.09 17,695.09
Co., Ltd.
Macao
Huashen
76,592.24 4,747.57 81,339.81 76,592.24 4,747.57 81,339.81 10.00%
Enterprise
Co., Ltd.
Chongqing
Guangfa
Real estate 2,324,085. 2,468,143. 2,324,085. 2,468,143.
144,058.52 144,058.52 27.25%
developme 20 72 20 72
nt Co.,
Ltd.
Saipan 1,731,110. 1,838,413. 1,731,110. 1,838,413.
107,302.98 107,302.98 30.00%
Project 88 86 88 86
32,245,128 32,501,237 17,745,128 18,001,237
Total 256,109.07 256,109.07 -- 0.00
.61 .68 .61 .68
(4) Changes of the impairment of the available-for-sale financial assets during the reporting
period
Unit: RMB Yuan
Available-for-sale equity Available-for-sale debt Foreign currency
Category Total
instruments instruments statement translation
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Balance of the withdrawn
impairment at the 19,905,429.06 19,905,429.06
period-begin
Withdrawal amount 256,109.07 256,109.07
Decreased amount 2,160,300.45 2,160,300.45
Balance of the withdrawn
impairment at the 17,745,128.61 256,109.07 18,001,237.68
period-end
(5) Relevant notes of the fair value of the available-for-sale equity instruments which
seriously fell or temporarily fell but not withdrawn the impairment provision
Unit: RMB Yuan
Item of
Falling range of Withdrawn Reason of not
available-for-sale Fair value of the Continued falling
Investment cost the fair value amount of withdrawn the
equity period-end time (month)
against the cost impairment impairment
instruments
Total 0.00 0.00 -- -- 0.00 --
Other notes
Notes 1: The reason of the changes of the long-term equity investment of Macau Huashen
Investment Co., Ltd., Saipan Project and Chongqing Guangfa Housing Development Co., Ltd. and
the impairment provision was occurred owing to the discount of the foreign currency statement.
Notes 2: The Company had not dispatched any personnel to serve in Guangzhou Lishifeng
Automobile Co., Ltd., Chongqing Guangfa Housing development Co., Ltd. and Saipan Company,
although the share holding proportion was more than 20% but lower than 50%, it had no any
significant influence and be recognized as the available for sale financial assets according to the
cost measurement.
Notes 3: In Jan. 2008, Shenzhen International Trade Center Automobile Industry Co., Ltd. and
Shenzhen Guanghong Investment Co., Ltd. signed the Operation Contacts of the Gas Station
Leasing, which agreed to the leasing the assets and equity as well as the operating management
power such as the land of the gas station, refueling tent, operating houses, dormitory and facility
instrument of gas station of the Shenzhen Shenzhen International Trade Center Petroleum Co., Ltd.
(Shenzhen Shenzhen International Trade Center Automobile Industry Co., Ltd. held 100% equity
of it) by Shenzhen Guanghong Investment Co., Ltd. and be operated by the later with the leasing
period of 15 years. Since the starting date of the operating and leasing, the Company no more
execute the control on Shenzhen Shenzhen International Trade Center Petroleum Co., Ltd., and
thus no more include it in the scope of the consolidation financial statement according to the
regulations of the ASBE.
Notes 4: The decrease of the equity investments calculated by fair value during the reporting
period was due to the disposal.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
15. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
(2) Significant held-to-maturity investment at the period-end
Unit: RMB Yuan
Bond item Par value Nominal interest rate Actual interest rate Due date
Total 0.00 -- -- --
(3) Re-classified held-to-maturity investment during the reporting period
Inapplicable
Other notes
Inapplicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value range
provision provision
Total 0.00 0.00 0.00 0.00 --
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of
the financial assets
Inapplicable
(3) The amount of the assets and liabilities formed by the transfer and the continues
involvement of long-term accounts receivable
Inapplicable
Other notes
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Inapplicable
17. Long-term equity investment
Unit: RMB Yuan
Increase/decrease
Closing
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Opening Reduced Changes bonus or al of Closing of
Investees l recognize other
balance investmen of other profits impairme Other balance impairme
investmen d under comprehe
t equity announce nt nt
t the equity nsive
d to issue provision provision
method income
I. Joint ventures
Jifa
Warehous 29,880,87 908,463.5 30,789,34
e Co., 8.39 9 1.98
Ltd.
Shenzhen
Tian’an
Internatio
nal
3,008,061 728,774.4 3,736,835
Building
.02 1 .43
Property
Managem
ent Co.,
Ltd.
32,888,93 1,637,238 34,526,17
Subtotal
9.41 .00 7.41
II. Associated enterprises
Shenzhen
Wufang
Pottery & 18,983,61 18,983,61 18,983,61
Porcelain 4.14 4.14 4.14
Industrial
Co., Ltd.
Shenzhen 3,682,972 -3,682,97
Internatio .55 2.55
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nal Trade
Center
Industrial
Develop
ment Co.,
Ltd.
Anhui
Nanpeng
13,824,00 13,824,00 13,824,00
Papermak
0.00 0.00 0.00
ing Co.,
Ltd.
36,490,58 -3,682,97 32,807,61 32,807,61
Subtotal
6.69 2.55 4.14 4.14
69,379,52 1,637,238 -3,682,97 67,333,79 32,807,61
Total
6.10 .00 2.55 1.55 4.14
Other notes
The decrease of the long-term equity investment of the Shenzen Shenzhen International Trade
Center Industrial Development Co., Ltd. was due to bankruptcy administrator written off which as
the assets held to cancel and verification that transferred into the current assets in Apr. 2015.
18. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Houses and buildings Land use right Construction in progress Total
I. Original book value
1. Opening balance 460,978,287.63 7,969,954.40 468,948,242.03
2. Increased amount
6,451,008.07 6,451,008.07
of the period
(1) Outsourcing
(2) Transfer of
inventory\fixed 6,451,008.07 6,451,008.07
assets\project under
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construction
(3) Increased from
enterprise merger
3. Decreased
4,119,705.21 4,119,705.21
amount of the period
(1) Disposal
(2) Other transfer 4,119,705.21 4,119,705.21
4. Closing balance 463,309,590.49 7,969,954.40 471,279,544.89
II. Accumulative
depreciation and
accumulative
amortization
1.Opening balance 214,074,089.54 4,860,117.55 218,934,207.09
2. Increased amount
16,260,849.99 509,145.12 16,769,995.11
of the period
(1) Withdrawal or
16,260,849.99 509,145.12 16,769,995.11
amortization
3. Decreased
1,685,446.13 1,685,446.13
amount of the period
(1) Disposal
(2) Other transfer 1,685,446.13 1,685,446.13
4. Closing balance 228,649,493.40 5,369,262.67 234,018,756.07
III. Depreciation reserves
1.Opening balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal
(2) Other transfer
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
4. Closing balance
IV. Book value
1. Closing book
234,660,097.09 2,600,691.73 237,260,788.82
value
2. Opening book
246,904,198.09 3,109,836.85 250,014,034.94
value
(2) Investment property adopted fair value measurement mode
□ Applicable √ Inapplicable
(3) Details of investment property failed to accomplish certification of property
Unit: RMB Yuan
Item Book value Reason
Other notes
As for the investment property with restricted ownership, please refer to Notes VII. 76 and Notes
XIV. 2 (1) of Section X. Financial Report.
19. Fixed assets
(1) List of fixed assets
Unit: RMB Yuan
Houses and Transportation Electronic and Decoration of the
Item Total
buildings equipment other equipment fixed assets
1. Opening
balance
2. Increased
112,236,697.13 52,163,133.30 33,429,189.15 6,451,403.79 204,280,423.37
amount of the period
(1) Purchase 329,672.14 36,768,014.29 1,338,020.26 38,435,706.69
(2) Transfer of
project under 17,250.29 36,768,014.29 1,338,020.26 38,123,284.84
construction
3. Decreased
amount of the period
4. Closing
balance
1.Opening 312,421.85 312,421.85
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
balance
2. Increased
1,548,000.00 25,542,072.00 358,421.68 27,448,493.68
amount of the period
(1) Withdrawal 1,548,000.00 25,542,072.00 358,421.68 27,448,493.68
3. Decreased
amount of the period
(1) Disposal or
111,018,369.27 63,389,075.59 34,408,787.73 6,451,403.79 215,267,636.38
Scrap
4. Closing
balance
1.Opening
75,465,399.04 32,918,507.14 26,849,707.57 4,901,858.50 140,135,472.25
balance
4. Closing
3,546,363.72 9,357,842.69 1,697,759.77 422,003.40 15,023,969.58
balance
1. Closing book
3,546,363.72 9,357,842.69 1,697,759.77 422,003.40 15,023,969.58
value
2. Opening
book value
1. Opening
1,470,600.00 24,105,660.60 320,778.38 25,897,038.98
balance
2. Increased
1,470,600.00 24,105,660.60 320,778.38 25,897,038.98
amount of the period
(1) Purchase
(2) Transfer of
project under 77,541,162.76 18,170,689.23 28,226,688.96 5,323,861.90 129,262,402.85
construction
3. Decreased
amount of the period
4. Closing
75,717.16 75,717.16
balance
1.Opening
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal or
145
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Scrap
4. Closing
balance
1.Opening
75,717.16 75,717.16
balance
4. Closing
balance
1. Closing book
33,477,206.51 45,218,386.36 6,106,381.61 1,127,541.89 85,929,516.37
value
2. Opening
36,771,298.09 19,244,626.16 6,503,764.42 1,549,545.29 64,069,233.96
book value
(2) List of temporarily idle fixed assets
Unit: RMB Yuan
Accumulative Impairment
Item Original book value Book value Notes
depreciation provision
Houses and
3,865,391.77 2,044,503.94 1,820,887.83
buildings
(3) Fixed assets leased in from financing lease
Unit: RMB Yuan
Accumulative
Item Original book value Impairment provision Book value
depreciation
(4) Fixed assets leased out from operation lease
Unit: RMB Yuan
Item Closing book value
(5) Details of fixed assets failed to accomplish certification of property
Unit: RMB Yuan
Item Book value Reason
Other notes:
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
20. Construction in progress
(1) List of construction in progress
Unit: RMB Yuan
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
(2) Changes of significant construction in progress
Unit: RMB Yuan
Of
Amount Proporti which:
Accumul
that on the Capitaliz
Other ative
transferr estimate amount ation rate
Estimate decrease amount
Name o f Opening Increase ed to Closing d of the Project of the of the Capital
d d amount of
item balance d amount fixed balance project progress capitaliz interests resources
number of the capitaliz
assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
(3) List of the withdrawal of the impairment provision of the construction in progress
Unit: RMB Yuan
Item Withdrawn amount Reason
Other notes:
Inapplicable
21. Engineering material
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
Inapplicable
22. Liquidation of fixed assets
Unit: RMB Yuan
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Item Closing balance Opening balance
Notes:
Inapplicable
23. Productive biological assets
(1) Productive biological assets adopted cost measurement mode
□ Applicable √ Inapplicable
(2) Productive biological assets adopted fair value measurement mode
□ Applicable √ Inapplicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Intangible assets
(1) List of intangible assets
Unit: RMB Yuan
Business license
Item Land use right Patent right Non-patent right Software Total
of the taxies
I. Original book
value
1. Opening
170,866,146.80 18,260.00 170,884,406.80
balance
2. Increased
amount of the
period
(1) Purchase
(2) Internal
R&D
(3) Enterprise
combination
increase
3. Decreased
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
amount of the
period
(1) Disposal
4. Closing
170,866,146.80 18,260.00 170,884,406.80
balance
II. Accumulated
amortization
1. Opening
71,073,559.77 18,260.00 71,091,819.77
balance
2. Increased
amount of the 7,152,503.04 7,152,503.04
period
(1) Withdrawal 7,152,503.04 7,152,503.04
3. Decreased
amount of the
period
(1) Disposal
4. Closing
78,226,062.81 18,260.00 78,244,322.81
balance
III. Depreciation
reserves
1. Opening
balance
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Closing
balance
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
IV. Book value
1. Closing
92,640,083.99 92,640,083.99
book value
2. Opening
99,792,587.03 99,792,587.03
book value
The proportion of the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end was 0.00%.
(2) Details of fixed assets failed to accomplish certification of land use right
Unit: RMB Yuan
Item Book value Reason
Notes:
26. R&D expenses
Unit: RMB Yuan
Opening Closing
Item Increased amount Decrease
balance balance
Other notes:
Inapplicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB Yuan
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
(2) Impairment provision of goodwill
Unit: RMB Yuan
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
impairment losses:
Inapplicable
Other notes:
Inapplicable
28. Long-term unamortized expenses
Unit: RMB Yuan
Amortization
Item Opening balance Increased amount Decrease Closing balance
amount
Facilities
reconstruction 1,470,297.69 172,976.28 1,297,321.41
expense
Renovation costs 1,082,755.34 355,354.68 727,400.66
Total 2,553,053.03 528,330.96 2,024,722.07
Other notes:
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
57,759,280.17 14,401,252.75 2,828,014.89 707,003.72
provision
Unrealized internal sales
39,385,119.40 9,846,279.85 16,162,142.68 4,040,535.67
gain and loss
Deductible losses 30,376,338.54 7,594,084.64
Accrued land VAT 738,683,130.69 184,670,782.67 845,498,064.20 211,374,516.05
Estimated profit
calculated at pre-sale
93,163,091.00 23,290,772.75 1,616,280.60 404,070.15
revenue of property
enterprises
Payroll payable unpaid
1,293,791.92 323,447.97 106,660.04 26,665.01
but withdrawn
Accrued liabilities 834,999.50 208,749.88
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total 961,495,751.22 240,335,370.51 866,211,162.41 216,552,790.60
(2) Deferred income tax liabilities had not been off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value of
available-for-sale 1,030,500.00 257,625.00
financial assets
The book value of fixed
assets is larger than tax 95,940.98 23,985.24
basis
Total 95,940.98 23,985.24 1,030,500.00 257,625.00
(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB Yuan
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax
240,335,370.51 216,552,790.60
assets
Deferred income tax
23,985.24 257,625.00
liabilities
(4) List of unrecognized deferred income tax assets
Unit: RMB Yuan
Item Closing balance Opening balance
Total 0.00 0.00
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB Yuan
Years Closing amount Opening amount Notes
Total 0.00 0.00 --
Notes:
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
30. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Housing purchase prepayment 7,275,069.00 7,275,069.00
Total 7,275,069.00 7,275,069.00
Notes:
31. Short-term loans
(1) Category of short-term loans
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan 10,000,000.00
Guaranteed loan 70,000,000.00
Pledge and guaranteed loan 20,000,000.00
Mortgage and guaranteed loan 8,000,000.00
Total 8,000,000.00 100,000,000.00
Notes of short-term loans category
(2) List of the short-term loans overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 000, of which
the situation of the significant overdue but not return short-term borrowings as follows:
Unit: RMB Yuan
Entity Closing balance Borrowing rate Overdue time Overdue rate
Total 0.00 -- -- --
Notes:
32. Financial liabilities measured by fair value and the changes included in the current gains
and losses
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
Inapplicable
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
33. Derivative financial liabilities
□ Applicable √ Inapplicable
34. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
The total amount of the due but not pay notes payable at the period-end was of RMB000.
35. Accounts payable
(1) List of accounts payable
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year (including 1 year) 102,357,186.61 47,105,587.26
1 to 2 years (including 2 years) 10,999,069.54 41,653,953.49
2 to 3 years (including 3 years) 20,968,866.58 55,822,201.37
3 to 4 years (including 4 years) 29,208,688.99 1,855,718.02
4 to 5 years (including 5 years) 1,054,522.02 82,543.41
Over 5 years 26,936,604.80 28,827,017.64
Total 191,524,938.54 175,347,021.19
(2) Notes of the accounts payable aging over one year
Unit: RMB Yuan
Item Closing balance Unpaid/ Un-carry-over reason
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Bureau
Hunan Construction Engineering Group 14,947,087.00 Unsettled
Zhanjiang West Guangdong Construction
8,092,820.03 Unsettled
Engineering Co., Ltd.
Shenzhen Yuanpeng Decoration Group
3,763,729.00 Unsettled
Co., Ltd.
Shantou Chaoyang Construction
1,751,764.45 Unsettled
Engineering Corporation
Total 53,555,400.48 --
Notes:
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
36. Advance from customers
(1) List of advance from customers
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year (including 1 year) 650,027,894.78 27,324,851.60
1 to 2 years (including 2 years) 1,802,283.71 1,010,331.46
2 to 3 years (including 3 years) 218,445.69 950.00
3 to 4 years (including 4 years) 950.00 100,000.00
4 to 5 years (including 5 years) 76,500.00
Over 5 years 320,204.02 243,704.02
Total 652,369,778.20 28,756,337.08
(2) Significant advance from customers aging over one year
Unit: RMB Yuan
Item Closing balance Unpaid/ Un-carry-over reason
Total 0.00 --
(3) Particulars of settled but unfinished projects formed by construction contract at
period-end.
Unit: RMB Yuan
Item Amount
Notes:
The closing balance of advance from customer increase 2168.61%, comparing to the opening
period, mainly was the SZPRD- Dongguan Songhulangyuan Project and SZPRD-Front Sea
Harbour Garden Project had arrived the presell conditions and prepayment of houses.
There was no significant advance from customers aging over one year in the Company.
Prepayment of sale of real estate projects
Item Aging Closing balance Estimate finished time
SZPRD-Front Sea Harbour Within 1 year 311,312,946.00 Oct. 2016
Garden Project
SZPRD-Dongguang Within 1 year 307,985,018.00 Dec. 2016
Songhulangyuan Project
Total 619,297,964.00
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
37. Payroll payable
(1) List of Payroll payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 56,931,919.65 283,889,974.42 277,557,514.88 63,264,379.19
II. Post-employment
benefit-defined 28,727,699.54 28,303,336.24 424,363.30
contribution plans
III. Termination benefits 845,291.00 1,621,257.50 2,363,474.50 103,074.00
Total 57,777,210.65 314,238,931.46 308,224,325.62 63,791,816.49
(2) List of Short-term salary
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus,
52,141,105.22 244,247,521.22 239,099,134.40 57,289,492.04
allowance, subsidy
2. Employee welfare 10,266,893.58 10,266,893.58
3. Social insurance 10,059,607.56 10,008,933.96 50,673.60
Including: 1. Medical
8,082,921.06 8,040,693.06 42,228.00
insurance premiums
Work-related injury
709,136.03 706,652.03 2,484.00
insurance
Maternity insurance 1,106,393.52 1,100,431.92 5,961.60
Other social insurance 161,156.95 161,156.95
4. Housing fund 1,124,577.90 9,205,428.70 9,205,428.70 1,124,577.90
5. Labor union budget
and employee education 3,666,236.53 7,092,160.00 5,958,760.88 4,799,635.65
budget
8. Non-monetary benefits 3,018,363.36 3,018,363.36
Total 56,931,919.65 283,889,974.42 277,557,514.88 63,264,379.19
(3) List of drawing scheme
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
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Basic pension benefits 22,687,548.79 22,273,121.49 414,427.30
Unemployment insurance 4,559,590.12 4,559,590.12
Annuity 1,480,560.63 1,470,624.63 9,936.00
Total 28,727,699.54 28,303,336.24 424,363.30
Notes:
The demission welfare withdrawn by relieving the labor relationship was of RMB 1,621,257.50
and the unpaid amount at the period-end was of RMB103,074.00.
38. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT 684,049.71 189,027.64
Business tax 8,092,058.86 6,955,522.44
Corporate income tax 78,927,414.58 167,344,046.82
Personal income tax 742,060.64 795,140.50
Urban maintenance and construction tax 576,383.19 496,438.65
Stamp tax 24,807.75 -7,322.87
Education Surcharge 250,010.86 215,734.70
Local education surtax 167,498.25 144,647.54
Land VAT 742,704,599.09 837,634,789.82
Property tax 1,125,407.71 980,366.67
Levee fee 451.42 -602.94
Other 502,630.37 615,847.72
Total 833,797,372.43 1,015,363,636.69
Notes:
39. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term loan interest of installment
payment of interest and repay the due 467,184.76 318,917.49
capital
Interest paid for short-term loans 12,228.33 243,962.23
Total 479,413.09 562,879.72
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Particulars of significant overdue unpaid interest:
Unit: RMB Yuan
Entity Overdue amount Overdue reason
Total 0.00 --
Notes:
40. Dividends payable
Unit: RMB Yuan
Item Closing balance Opening balance
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB Yuan
Item Closing balance Opening balance
Margin 35,877,241.66 29,119,954.26
Accounts receivable of the related
31,511,011.04 30,411,011.04
companies
Accounts receivable of the non-related
44,937,756.84 33,704,263.95
companies
Other 15,917,070.14 17,797,595.30
Total 128,243,079.68 111,032,824.55
(2) Other significant accounts payable with aging over one year
Unit: RMB Yuan
Item Closing balance Unpaid/ Un-carry-over reason
Come-and-go accounts without specific
Shenzhen Jifa Warehouse Co., Ltd. 26,296,665.14
amortization period
Guangzhou Lishifeng Automobile Co., Come-and-go accounts without specific
15,344,017.08
Ltd. amortization period
Shenzhen International Trade Center Come-and-go accounts without specific
7,196,769.67
Petroleum Company Limited amortization period
Tianan International Building Property Come-and-go accounts without specific
4,114,345.90
Management Company of Shenzhen amortization period
RAINBOW DEPARTMENT STORE CO., 2,330,000.00 Margin within the leasing period
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LTD
Total 55,281,797.79 --
Other notes:
42. Liabilities classified as holding for sale
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
43. Non-current liabilities due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term loans due within 1 year 121,243,352.00 5,000,000.00
Total 121,243,352.00 5,000,000.00
Notes:
44. Other current-liabilities
Unit: RMB Yuan
Item Closing balance Opening balance
Changes on short term bonds payable:
Unit: RMB Yuan
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Closing
Issue date Period current interest at current
the bond value amount balance amortizati balance
issue par period
on
Notes:
45. Long-term loan
(1) Category of long-term loan
Unit: RMB Yuan
Item Closing balance Opening balance
Guaranteed loan 144,840,006.83
Mortgage and guaranteed loan 177,613,352.00
Total 144,840,006.83 177,613,352.00
Notes of short-term loans category:
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Other notes including interest rate range:
46. Bonds payable
(1) Bonds payable
Unit: RMB Yuan
Item Closing balance Opening balance
(2) Changes on bonds payable (not including other financial instrument classified as
preferred stock and perpetual capital securities of financial liabilities)
Unit: RMB Yuan
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued
at period-end
Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at
period-end
Unit: RMB Yuan
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Notes to the basis of other financial instrument classified as financial liabilities
Other notes:
47. Long-term payable
(1) Long-term payable listed by nature of the account
Unit: RMB Yuan
Item Closing balance Opening balance
Notes:
48. Long term payroll payable
(1) List of long term payroll payable
Unit: RMB Yuan
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Item Closing balance Opening balance
(2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
Unit: RMB Yuan
Item Reporting period Same period of last year
Plan assets:
Unit: RMB Yuan
Item Reporting period Same period of last year
Net liabilities (net assets) of defined benefit plans
Unit: RMB Yuan
Item Reporting period Same period of last year
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and
uncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Notes:
49. Special payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance Formation reasons
Notes:
50. Accrued liabilities
Unit: RMB Yuan
Item Closing balance Opening balance Formation reasons
For details, please refer to
Pending litigation 834,999.50 Section X. Financial Report
XIV. 2, (1)
Total 834,999.50 --
Other notes, including related important assumptions and estimates of accrued liabilities:
51. Deferred income
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance Formation reasons
Operating license 10,095,846.69 1,293,221.64 8,802,625.05 Operating license
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plate rental income plate rental
held to carry forward
International Trade Rental of
Center petroleum International Trade
11,670,000.00 1,400,000.00 10,270,000.00
rental income held to Center Petroleum
carry forward Co., Ltd.
Total 21,765,846.69 2,693,221.64 19,072,625.05 --
Items involved in government subsidies:
Unit: RMB Yuan
Amount accrued
Amount of newly Related to the
Item Opening balance in non-business Other changes Closing balance
subsidy assets/ income
income
Total 0.00 0.00 0.00 --
Notes:
52. Other non-current liabilities
Unit: RMB Yuan
Item Closing balance Opening balance
Utility specific fund 237,163.45 237,163.45
Housing principle fund 15,096,884.76 13,764,771.61
House warming deposit 7,770,164.12 7,784,938.18
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 27,476,957.21 26,667,849.33
Taxi Deposit 41,606,566.60 41,042,500.00
Equity of stripping the assets 18,253,188.54 19,771,409.10
Other 312,925.26 1,418,615.65
Total 114,773,265.38 114,706,662.76
Notes:
53. Share capital
Unit: RMB Yuan
Increase/decrease (+/-)
Opening Capitalization Closing
Newly issue
balance Bonus shares of public Other Subtotal balance
share
reserves
The sum of 595,979,092.00 595,979,092.00
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shares
Notes:
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial
instruments outstanding issued at period-begin
(2) Change list of preferred stock, perpetual capital securities and other financial
instruments outstanding issued at period-begin
Unit: RMB Yuan
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting
period:
Notes:
55. Capital reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium 38,450,087.51 38,450,087.51
Other capital reserves 81,501,446.42 81,501,446.42
Total 119,951,533.93 119,951,533.93
Other notes, including changes and reason of change:
56. Treasury stock
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other comprehensive income
Unit: RMB Yuan
Reporting period
Opening Closing
Item Amount Less: Amount Less: After-tax After-tax
balance balance
incurred transferred income tax attribute to attribute to
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before into profit and expense the parent minority
income tax loss in the company shareholder
current period
that
recognized
into other
comprehensive
income in
prior period
II. Other comprehensive reclassified 2,892,713.5 -4,046,60
-4,006,141.53 3,190,800.45 -257,625.00 -40,461.93
into profits or losses 2 3.46
Profits or losses of change in
-2,933,175.
fair value of available-for-sale 2,933,175.45 3,190,800.45 -257,625.00
45
financial assets
Converted difference of the 2,892,713.5 2,892,713.5 -4,046,60
-6,939,316.98
foreign currency financial statement 2 2 3.46
2,892,713.5 -4,046,60
total -4,006,141.53 3,190,800.45 -257,625.00 -40,461.93
2 3.46
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging
gains and losses transfer into arbitraged items:
58. Special reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
59. Surplus reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus
136,591,232.84
reserves 18,073,398.75 154,664,631.59
Total 136,591,232.84
18,073,398.75 154,664,631.59
Other note, including changes and reason of change
The increase of the surplus reserves of the reporting period was due to the 10% withdrawal of the net profits of the
parent company.
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60. Retained profits
Unit: RMB Yuan
Item Reporting period Last period
Opening balance of retained profits before
1,225,726,944.83 972,271,884.95
adjustments
Opening balance of retained profits after
1,225,726,944.83 972,271,884.95
adjustments
Add: Net profit attributable to owners of the
417,498,679.91
Company 156,819,966.71
Less: Withdrawal of statutory surplus reserves 15,048,847.03
18,073,398.75
Dividend of common stock payable 131,115,400.24 148,994,773.00
Closing retained profits 1,233,358,112.55 1,225,726,944.83
List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
61. Revenues and operating costs
Unit: RMB Yuan
Reporting period Same period of last year
Item
Revenue Operating costs Revenue Operating costs
Main operations 1,025,534,654.51 631,134,598.38 1,209,444,885.89 497,649,218.57
Other operations 51,883,846.42 17,438,295.72 59,006,565.97 22,835,907.63
Total 1,077,418,500.93 648,572,894.10 1,268,451,451.86 520,485,126.20
62. Business tax and surcharges
Unit: RMB Yuan
Item Reporting period Same period of last year
Business tax 52,898,669.75 61,698,267.20
Urban maintenance and construction tax 3,835,248.14 4,460,442.38
Education Surcharge 1,710,450.62 1,916,647.22
Local education surtax 1,035,781.13 1,276,948.72
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Levee fee 1,034.51 61,792.70
Property tax 3,531,389.54 2,844,379.45
Land use tax 726,610.67
Land VAT 95,776,519.92 204,157,447.55
Other 160,415.94 641,378.67
Total 159,676,120.22 277,057,303.89
Notes:
63. Sales expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee’s remuneration 4,562,356.24 3,488,625.76
Office expenses of operating institutions 6,755,310.83 4,351,269.72
Sales agency fee, advertising expense and
28,521,950.60 17,904,918.45
general publicity expense
Other 2,101,548.27 573,266.98
Total 41,941,165.94 26,318,080.91
Notes:
The sales expenses increased 59.36% over the last period which mainly was the increase of new project opening
sales agency fee.
64. Administrative expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee’s remuneration 62,531,485.31 63,705,186.43
Administrative office cost 21,137,197.32 23,747,798.96
Assets amortization and depreciation
4,717,738.87 5,771,598.27
expense
Litigation costs 2,497,654.50 407,187.00
Taxes 2,867,555.63 1,139,291.88
Other 9,216,495.16 9,144,870.26
Total 102,968,126.79 103,915,932.80
Notes:
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65. Financial expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Interest expenses 494,767.88
Less: Interest income 8,509,056.15 14,179,022.79
Net losses of exchange 591.36 -107,869.08
Other 993,775.48 1,094,333.49
Total -7,514,689.31 -12,697,790.50
Notes:
The amount of the financial expenses of the period decrease over the last period was mainly due to
the decrease of the agreement deposit and the 7-dayes notice deposit.
66. Asset impairment loss
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Bad debt loss -936,571.89
-8,020,498.14
II. Inventory falling price loss -5,813,259.28
99,884,437.85
Total -6,749,831.17
91,863,939.71
Notes:
The amount of the assets impairment losses largely increased over the last period was mainly due
to the reverse of the inventory falling price provision of SZPRD-Banshanyujing Project.
67. Gains on the changes in the fair value
Unit: RMB Yuan
Source Reporting period Same period of last year
Notes:
68. Investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income
1,637,238.00 -352,555.03
accounted by equity method
Investment income arising from disposal of
207,432,184.22
long-term equity investments
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Investment income received from disposal of
5,709,098.20
available-for-sale financial assets
Gains of the quit of the combination entity 7,545,255.06
Others 392,034.89
Total 7,738,371.09 214,624,884.25
Notes:
69. Non-operating gains
Unit: RMB Yuan
Recorded in the amount of the
Item Reporting period Same period of last year
non-recurring gains and losses
Total gains from disposal of
33,279.06 1,905,888.27 33,279.06
non-current assets
Including: Gains from disposal
33,279.06 1,905,888.27 33,279.06
of fixed assets
Government subsidies 153,795.84 4,500.00 153,795.84
Confiscated income 153,231.52 2,705,567.24 153,231.52
Other 478,078.46 176,078,808.63
171,278,808.63
Total 5,094,033.97 176,419,115.05
171,619,115.05
Government subsidies recorded into current profits and losses
Unit: RMB Yuan
Whether
Whether
influence the Related to the
Distribution Distribution Special Reporting Same period
Item Nature/type profits or assets/
entity reason subsidy or period of last year
losses of the income
not
year or not
Subsidy
gained due to
undertaking
Shenzhen the state
Subsidy for
International protecting
improvement
Trade Center one public Related to the
of air Subsidy No No 10,500.00
Vehicles utility or income
environment
Industry Co., social
quality
Ltd. necessary
products
supply or
price
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controlling
Subsidy
gained due to
SHENZHEN undertaking
INTERNATI the state
ONAL protecting
Subsidy for
TRADE one public
elevator Related to the
CENTER Subsidy utility or No No 142,980.00
transformatio income
PROPERTY social
n
MANAGER necessary
MENT CO., products
LTD. supply or
price
controlling
Subsidy
gained due to
undertaking
the state
protecting
Chongqing
one public
Tax Ao’bo Related to the
Subsidy utility or No No 315.84
preference Elevator Co., income
social
Ltd.
necessary
products
supply or
price
controlling
Subsidy
gained due to
undertaking
the state
Chongqing
protecting
Graduate International
one public
employment Trade Center Related to the
Subsidy utility or No No 4,500.00
apprentice Property income
social
subsidies Management
necessary
Co., Ltd.
products
supply or
price
controlling
Total -- -- -- -- -- 153,795.84 4,500.00 --
Note:
The non-operating revenue was increased of 3269.02% over the last period was mainly due to the
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
recognition of assets of Dragon Garden Development Building F14, F15, RMB169,582,120.00,
For details, please refer to Section X Financial Report (XIV) 2, (2).
70. Non-operating expenses
Unit: RMB Yuan
Recorded in the amount of the
Item Reporting period Same period of last year
non-recurring gains and losses
Loss on disposal of non-current
601,245.35 93,576.27 601,245.35
assets
Including: Loss on disposal of
601,245.35 93,576.27 601,245.35
fixed assets
Taxes overdue payment fines
1,410,492.64 25,116,322.54 1,410,492.64
and other fines
Accrued liabilities losses 834,999.50 834,999.50
Other 30,000.00 866,685.56 30,000.00
Total 2,876,737.49 26,076,584.37 2,876,737.49
Notes:
71. Income tax expense
(1) Lists of income tax expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Current income tax expense 161,226,485.47
83,330,320.09
Deferred income tax expense -24,960,201.80
-23,758,594.67
Total 136,266,283.67
59,571,725.42
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB Yuan
Item Reporting period
Total profits 216,391,692.13
Current income tax expense accounted by tax and relevant
54,097,923.03
regulations
Influence of different tax rate suitable to subsidiary -7,889.24
Influence of income tax before adjustment -285,195.97
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Influence of non taxable income -409,309.50
Influence of not deductible costs, expenses and losses 559,673.29
Influence of deductible losses of deferred income tax assets
derecognized used in previous period -24,499,171.74
Influence of deductible temporary difference or deductible losses
of deferred income tax assets derecognized in reporting period. 30,115,695.55
Income tax expense
59,571,725.42
Other notes:
72. Other comprehensive income
Refer to the Note. 57
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Large current funds received 1,100,000.00 6,749,857.14
Interest income 8,509,056.15 14,179,022.79
Net margins, security deposit and various
4,931,895.90
special funds received
Net amount of utilities, miscellaneous
fees and accident fee and other receivables 3,881,747.21
on behalf
Other small receivables 1,033,787.06 1,641,006.85
Total 14,524,590.42 27,501,782.68
Notes:
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Paying administration expenses in cash 30,726,090.13 33,060,657.02
Paying sales expenses in cash 26,398,187.28 22,770,689.39
Net margins, security deposit and various
9,405,053.02
special funds paid
Net amount of utilities, miscellaneous 20,401,287.75
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fees and accident fee and other payments
on behalf
Other small payments 1,518,295.15 8,620,313.90
Total 68,047,625.58 84,852,948.06
Notes:
(3) Other cash received relevant to investment activity
Unit: RMB Yuan
Item Reporting period Same period of last year
Notes:
(4) Other cash paid relevant to investment activity
Unit: RMB Yuan
Item Reporting period Same period of last year
Cash balance of Hainan Company drop out
266,715.68
the combination
Total 266,715.68
Notes:
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Notes:
(6) Other cash paid relevant to financing activities
Unit: RMB Yuan
Item Reporting period Same period of last year
Handling charges of significant loans 104,500.00
Total 104,500.00
Notes:
74. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB Yuan
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Supplementary materials Reporting period Last period
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 156,819,966.71 417,498,679.91
Add: Provision for impairment of assets 96,663,939.71 -6,749,831.17
Depreciation of fixed assets, of oil-gas
31,793,964.69 33,701,124.55
assets, of productive biological assets
Amortization of intangible assets 7,152,503.04 7,152,503.04
Long-term unamortized expenses 528,330.96 528,330.96
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: 567,966.29 -1,812,312.00
negative)
Financial cost (gains: negative) 275,874.59 494,767.88
Investment loss (gains: negative) -7,738,371.09 -214,624,884.25
Decrease in deferred income tax assets
-23,782,579.91 -24,960,201.80
(gains: negative)
Increase in deferred income tax liabilities
23,985.24
(“-” means decrease)
Decrease in inventory (gains: negative) -230,356,245.15 -220,800,911.09
Decrease in accounts receivable from
18,742,572.67
operating activities (gains: negative) -12,169,078.01
Increase in payables from operating
-23,796,895.78
activities (decrease: negative) 484,005,911.67
Other -189,218,539.08
Net cash flows generated from operating
309,767,629.66 -14,627,057.08
activities
2. Investing and financing activities that do
-- --
not involving cash receipts and payment:
3. Net increase in cash and cash equivalents -- --
Closing balance of cash 933,337,815.77 808,963,376.68
Less: Opening balance of cash 808,963,376.68 977,171,814.20
Net increase in cash and cash equivalents 124,374,439.09 -168,208,437.52
(2) Net Cash paid of obtaining the subsidiary
Unit: RMB Yuan
Amount
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Of which: --
Of which: --
Of which: --
Notes:
(3) Net Cash receive of disposal of the subsidiary
Unit: RMB Yuan
Amount
Of which: --
Of which: --
Of which: --
Notes:
(4) Cash and cash equivalents
Unit: RMB Yuan
Item Closing balance Opening balance
I. Cash 933,337,815.77 808,963,376.68
Including: Cash on hand 208,170.99 199,841.15
Bank deposit on demand 930,987,796.17 806,458,046.62
Other monetary funds on demand 2,141,848.61 2,305,488.91
III. Closing balance of cash and cash
933,337,815.77 808,963,376.68
equivalents
Notes:
75. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
Inapplicable
76. The assets with the ownership or use right restricted
Unit: RMB Yuan
Item Closing book value Restricted reason
Guarantee deposit, for details, please refer
Monetary capital 12,402,160.00
to Section X. Financial Report XIV. 2, (1)
Guarantee deposit, for details, please refer
Investment property 1,381,878.96
to Section X. Financial Report XIV. 2, (1)
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Total 13,784,038.96 --
Notes:
77. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB Yuan
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary capital -- -- 51,240,449.83
HKD 61,160,718.35 0.8378 51,240,449.83
Other accounts receivable -- 277,785.66
Of which: HKD 331,565.60 0.8378 277,785.66
Other account payable 418,927.70
Of which: HKD 500,033.05 0.8378 418,927.70
Accounts payable 46,916.80
Of which: HKD 56,000.00 0.8378 46,916.80
Notes:
(2) Note to oversea entities including: for significant oversea entities, shall disclose main
operating place, recording currency and selection basis, if there are changes into recording
currency, shall also disclose the reason.
√ Applicable □ Inapplicable
Item Main Recording Basis for selection
operating currency
place
Shum Yip Properties Development Hong HKD Located in HK, settled by HKD
Co., Ltd. and its subsidiary Kong
78. Arbitrage
According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and been arbitraged risk
qualitative and quantitative information:
Inapplicable
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79. Other
Inapplicable
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Unit: RMB Yuan
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
Name of place of Proportion of
gaining the the stock Purchase date basis of during the during the
acquiree gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock rights
to period-end to period-end
Notes:
Inapplicable
(2) Combined cost and goodwill
Unit: RMB Yuan
Combination cost
Note to determination method, consideration and changes of fair value of combined cost:
Inapplicable
The main formation reason for the large goodwill:
Inapplicable
Notes:
Inapplicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Unit: RMB Yuan
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Inapplicable
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Contingent liability of acquiree undertaken by business merger
Inapplicable
Notes:
Inapplicable
(4) The profit or loss from equity held by the date before acquisition in accordance with the
fair value measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets,
Fair value of liabilities of the acquiree at acquisition date or closing period of the merge
Inapplicable
(6) Other notes
There was no change in the reporting period.
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
Unit: RMB Yuan
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Combined Proportion of Combination basis of during the during the
Basis to the period to the
party the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Notes:
(2) Combination cost
Unit: RMB Yuan
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Combination cost
Note to contingent consideration or other changes:
Notes:
(3) The book value of the assets and liabilities of the combined party at combining date
Unit: RMB Yuan
Combination date Period-end of last period
Contingent liabilities of the combined party undertaken in combination
Notes:
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information:
6. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Name of the Main operating Nature of Holding percentage (%)
Registration place Way of gaining
subsidiary place business Directly Indirectly
Shenzhen Shenzhen Shenzhen Property 95.00% 5.00% Set-up
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Huangcheng Real development
Estate Co., Ltd.
SZPRD Real
Estate Property
Shenzhen Shenzhen 95.00% 5.00% Set-up
Development Co., development
Ltd.
PRD Group
Xuzhou Dapeng
Property
Real Estate Xuzhou Xuzhou 100.00% Set-up
development
Development
Co.,Ltd.
Dongguan
International
Trade Center
Property
Changsheng Real Dongguan Dongguan 100.00% Set-up
development
Estate
Development Co.,
Ltd.
PRD Yangzhou
Real Estate Property
Yangzhou Yangzhou 100.00% Set-up
Development Co., development
Ltd.
SHENZHEN
INTERNATION
AL TRADE
Property
CENTER Shenzhen Shenzhen 95.00% 5.00% Set-up
management
PROPERTY
MANAGERMEN
T CO., LTD.
Shenzhen
Huangcheng Real
Property
Estate Shenzhen Shenzhen 100.00% Set-up
management
Management Co.,
Ltd.
Shandong
Shenzhen
International
Property
Trade Center Jinan Jinan 100.00% Set-up
management
Property
Management Co.,
Ltd.
Chongqing Chongqing Chongqing Property 100.00% Set-up
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Shenzhen management
International
Trade Center
Property
Management Co.,
Ltd.
Chongqing Ao’bo
Chongqing Chongqing Service 100.00% Set-up
Elevator Co., Ltd.
Shenzhen
Tianque Elevator
Shenzhen Shenzhen Service 100.00% Set-up
Technology Co.,
Ltd.
Shenzhen
International
Trade Center
Property
Shenzhen Shenzhen Service 100.00% Set-up
Management
Engineering
Equipment Co.,
Ltd.
Shenzhen
International
Shenzhen Shenzhen Catering service 80.00% 20.00% Set-up
Trade Center
Food Co., Ltd.
Shenzhen
Property
Project
Construction Shenzhen Shenzhen 100.00% Set-up
supervision
Supervision Co.,
Ltd.
Shenzhen Real
Shenzhen Shenzhen Service 100.00% Set-up
Estate Exchange
Shenzhen
International
Trade Center Shenzhen Shenzhen Service 90.00% 10.00% Set-up
Vehicles Industry
Co., Ltd.
Shenzhen
International
Trade Center Shenzhen Shenzhen Service 100.00% Set-up
Motor Rent Co.,
Ltd.
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Shenzhen Tesu
Vehicle Driver
Shenzhen Shenzhen Service 100.00% Set-up
Training Center
Co., Ltd.
Shenzhen
International Shenzhen Shenzhen Trading 95.00% 5.00% Set-up
Trade Plaza
Sichuan Tianhe
Chengdu Chengdu Trading 100.00% Set-up
Industry Co., Ltd.
Zhanjiang
Shenzhen Real
Property
Estate Zhanjiang Zhanjiang 100.00% Set-up
development
Development Co.,
Ltd.
Business
Shenzhen
combination
Shenxin Taxi Co., Shenzhen Shenzhen Service 100.00%
under the same
Ltd.
control
Shum Yip
Properties Property
Hong Kong Hong Kong 100.00% Set-up
Development Co., development
Ltd.
Wayhang
Property
Development Co., Hong Kong Hong Kong 100.00% Set-up
development
Ltd.
Chief Link
Property
Properties Co., Hong Kong Hong Kong 70.00% Set-up
development
Ltd.
Business
Syndis
Property combination not
Investment Co., Hong Kong Hong Kong 100.00%
development under the same
Ltd.
control
Notes: holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
Naught
Significant structure entities and controlling basis in the scope of combination:
The Company and controlling shareholders in Shenzhen Investment Holdings Co., Ltd.
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(hereinafter referred to as “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. Since there are legal
impediments in partial transfer of Divestiture Assets, FET Company and SX Company concluded
and signed Supplement 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 Sept. 30, 2016. SX Company paid for FET
Company with RMB313,000 income obtained from assets operation from Jun. 1, 2012 to Dec. 31,
2012. Since then SX Company will pay RMB626,000 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 December 31, 2015 in consolidated statements is as follows:
Item Amount Item Amount
Other accounts receivable 50.00 Other account payable 683,578.08
Investment property 9,158,914.93Other non-current liabilities 18,253,188.54
Fixed assets 9,531,321.79
Long-term unamortized 246,479.90
expenses
Total assets 18,936,766.62 Total liabilities and owners’ 18,936,766.62
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.
Basis of determine whether the Company is the agent or the principal:
Naught
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Notes:
As of the end of reporting period, the balance of minority shareholders was RMB 862,087.06;
there was no significant non-wholly owned subsidiary in the Company.
(2) Significant not wholly owned subsidiary
Unit: RMB Yuan
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name of the subsidiary arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Naught
Notes:
Naught
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB Yuan
Name of Closing balance Opening balance
the Non-curr Non-curr Non-curr Non-curr
current Total Current Total current Total Current Total
subsidiar ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
y assets liability assets liability
Unit: RMB Yuan
Reporting period Same period of last year
Name of the Total Total
Operation Operating Operation Operating
subsidiary Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Notes:
Naught
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Naught
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(5) Provide financial support or other support for structure entities incorporate into the
scope of consolidated financial statements
Naught
Notes:
Naught
2. The transaction of the Company with its owner’s equity share changed but still
controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
Naught
(2) The transaction’s influence to equity of minority shareholders and attributable to the
owner's equity of the parent company
Unit: RMB Yuan
Other notes:
Naught
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Holding percentage (%) Accounting
treatment of the
Main operating Nature of investment of
Name Registration place
place business Directly Indirectly joint venture or
associated
enterprise
Shenzhen Jifa
Warehouse Co., Shenzhen Shenzhen Warehouse serve 50.00% Equity method
Ltd.
Tianan
International Property
Shenzhen Shenzhen 50.00% Equity method
Building Property management
Management
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Company of
Shenzhen
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
The Company’s long term equity investment had withdrawn bad debt provision for the associate
enterprise of Shenzhen Wufang Pottery & Porcelain Industrial Co., Ltd., Shenzhen
INTERNATIONAL TRADE CENTER Industrial Development Co., Ltd. and Anhui Nanpeng
Papermaking Co., Ltd. Now the aforesaid companies’ financial statement cannot be obtained, thus,
the Company believed that they were insignificant associate enterprises.
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
Naught
(2) Main financial information of significant joint venture
Unit: RMB Yuan
Closing balance/ reporting period Opening balance /last period
Tianan International Tianan International
Building Property Shenzhen Jifa Warehouse Building Property Shenzhen Jifa Warehouse
Management Company Co., Ltd. Management Company Co., Ltd.
of Shenzhen of Shenzhen
current assets 38,895,590.21 5,555,289.81 35,704,923.71 2,060,981.97
Of which: cash and cash
27,170,290.21 5,279,230.56 26,199,623.71 1,790,481.86
equivalence
Non-current assets 112,137.15 59,395,951.93 115,690.14 60,575,943.01
Total assets 39,007,727.36 64,951,241.74 35,820,613.85 62,636,924.98
Current liabilities 14,868,217.22 3,372,557.80 13,314,464.45 2,875,168.22
Non-current liability 16,665,839.28 16,490,027.37
Total liabilities 31,534,056.50 3,372,557.80 29,804,491.82 2,875,168.22
Equity attributable to
owners of parent 7,473,670.86 61,578,683.94 6,016,122.03 59,761,756.76
company
Portion of net assets
calculated according to
3,736,835.43 30,789,341.97 3,008,005.30 29,880,878.38
proportion of
shareholdings
Book value of equity
investment to joint 3,736,835.43 30,789,341.97 3,008,005.30 29,880,878.38
venture
Operation revenue 18,022,357.14 6,676,118.83 18,118,056.52 6,934,396.44
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Financial expenses 87,226.94 -8,792.28 -80,034.42 -1,803.80
Income tax expense 494,157.26 599,795.60 357,987.23 563,714.04
Net profit 1,457,548.83 1,816,927.18 1,060,223.38 1,673,601.73
Total comprehensive
1,457,548.83 1,816,927.18 1,060,223.38 1,673,601.73
income
Other notes:
Naught
(3) Main financial information of significant associated enterprise
Unit: RMB Yuan
Closing balance/ reporting period Opening balance /last period
Other notes:
The Company’s long term equity investment had withdrawn bad debt provision for the associate
enterprise of Shenzhen Wufang Pottery & Porcelain Industrial Co., Ltd., Shenzhen
INTERNATIONAL TRADE CENTER Industrial Development Co., Ltd. and Anhui Nanpeng
Papermaking Co., Ltd. Now the aforesaid companies’ financial statement cannot be obtained, thus,
the Company believed that they were insignificant associate enterprises.
(4) Summary financial information of insignificant joint venture or associated enterprise
Unit: RMB Yuan
Closing balance/ reporting period Opening balance /last period
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes:
Naught
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise
transfer funds to the Company
Naught
186
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(6) The excess loss of joint venture or associated enterprise
Unit: RMB Yuan
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in previous share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes:
Naught
(7) The unrecognized commitment related to joint venture investment
Naught
(8) Contingent liabilities related to joint venture or associated enterprise investment
Naught
4. Significant common operation
Proportion /share portion
Name Main operating place Registration place Nature of business
Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
Naught
Basis of common operation as a single entity, classify as common operation
Naught
Other notes:
Naught
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
Naught
6. Other
Naught
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
X. The risk related financial instruments
The financial instruments of the Group include: monetary fund, the available for sale financial
assets, loan, accounts receivable and notes receivable, accounts payable and notes payable, etc, for
details, see disclosure in each note.
1. Credit risk
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial
assets of the other party.
The Group manages the credit risk according to the combination of credit risk classification; the
credit risk mainly occurred in bank deposit, account receivable and other account receivables. The
source of credit risk of financial assets was the default of the other party. The biggest risk
exposure was equivalent to book value of the instruments.
The Group’s working capital was in bank with higher credit rating, so there was no significant
credit risk, nor significant losses due to the default of other entity.
There were lots of account receivables withdrawn individually in the Group and had withdrawn
bad debt provision, which fully reveal the existence of credit risk. Amount of balance of account
receivables was RMB41.2885 million except the aforesaid had withdrawn bad debt provision,
mainly was the account receivable of property management, of which was account receivable
RMB10.3256 million of Huawei Technologies Co., Ltd. was the total property management costs
of several serve district of Huawei Technology Center. Other client receivables were widely
dispersed owners and tenants. The Group conducted continuous supervisor to the account
receivables to ensure the Group not facing significant bad debt risk.
For the quantized data of credit risk exposure incurred by account receivables and other account
receivables, see 2, Note (VII) and 4, Note (VII).
2. Liquidity risk
Liquidity risk was referred to the risk of incurring capital shortage when performing settlement
obligation in the way of cash payment or other financial assets.
The subsidiary of the Group monitor the cash flow and the need of itself, the headquarters of the
finance department combine the cash flow of each subsidiary, continue to monitor the short term
or long term capital needs to ensure maintain plenty of cash flow. Besides, according to the actual
capital need of the Group, provided commitment of adequate emergency capital to meet the short
term and long term capital need.
The analysis of maturity term made by the Group’s financial liabilities in line with non discount
cash flow of the contracts:
(1) The Group’s current liabilities including short-term loans payable, accounts payable, interest
payable, other payables and non-current liabilities due within one year are expected paid within 1
year.
(2)The analysis of maturity term made by the Group’s financial liabilities in line with non discount
cash flow of the contracts:
Item Closing balance (RMB Ten Thousand Yuan)
Within 1 year 1-3years (including 3 3-5 years Over 5 years Total
(including 1 year) years) (including 5 year)
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Long term loan( interest
included) 902.83 14,756.09 15,658.91
Item Opening balance (RMB Ten Thousand Yuan)
Within 1 year 1-3 years 3-5 years Over 5 Total
(including 1 year) (including 3 year) (including 5 year) years
Long term loan( interest 1,194.27 17,979.91 19,174.19
included)
3. Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument
changed due to the change of market price, including: exchange rate risk, interest rate risk and
other price risk.
(1) Exchange rate risk
Exchange rate risk is referred to the fair value and future cash flow of financial instruments
change due to the change of foreign exchange rate.
Sensitive analysis of foreign exchange risk was as followed.
Reflecting under the hypothesis of other variables constant, listed the reasonable and possible
change of foreign exchange, due to the fair value of the monetary assets and monetary liabilities
changes will impact on net income and shareholders' equity
Item Reporting period Last year
Influence to the Influence to equity of Influence to the Influence to equity of
profits shareholders profits shareholders
RMB down 2% against HKD 17,907.03 -1,010,786.30 3,252.26 468,210.83
RMB up 2% against HKD -17,907.03 999,629.25 -3,252.26 -468,210.83
Notes 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Notes 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
(2) Interest rate risk
Interest rate risk was referred to risk of the fair value or future cash flow of financial instrument
changed due to the change of market interest risk.
The interest risk of the Group incurred from bank loan, interest rate risk of a floating interest rate
of financial liabilities that lead to the group facing cash flow interest rate risk, financial liabilities
with a fixed interest rate lead to the group facing cash flow interest rate risk. The Group’s
interest-bearing debt situation was as followed:
Type Closing balance Opening balance
Interest-bearing debt from fixed interest rate 144,840,006.83 30,000,000.00
Of which: short term loan 30,000,000.00
Non current liabilities due within one years
Long-term borrowings 144,840,006.83
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Interest-bearing debt from floating interest rate 252,613,352.00
129,243,352.00
Of which: short term loan 70,000,000.00
8,000,000.00
Non current liabilities due within one years 5,000,000.00
121,243,352.00
Long-term borrowings 177,613,352.00
Total 274,083,358.83 282,613,352.00
The management conducting sensitive analysis, the change of 25 BP increase or decrease was considered as
reasonable reflection of possible range of interest rate. Base on the assumption of aforesaid floating interest rate of
long-term borrowing paid by the due date, and in a full accounting year will not be required to pay, under the
situation of other variable remain constant, the influence of interest rate increase / decrease 25 BP to net profits and
shareholders:
Item Reporting period Last period
Influence to the Influence to equity Influence to the Influence to equity
profits of shareholders profits of shareholders
Increase 25 BP -333,025.04
-6,314.76
Decrease 25 BP 333,025.04
6,314.76
Notes 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Notes 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Unit: RMB Yuan
Closing fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II. Inconsistent fair value
-- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement
items at level 1
Inapplicable
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
3. Valuation technique adopted and nature and amount determination of important
parameters for consistent and inconsistent fair value measurement items at level 2
Inapplicable
4. Valuation technique adopted and nature and amount determination of important
parameters for consistent and inconsistent fair value measurement items at level 3
Inapplicable
5. Sensitiveness analysis on unobservable parameters and adjustment information between
opening and closing book value of consistent fair value measurement items at level 3
Inapplicable
6. Explain the reason for conversion and the policy governing when the conversion happens
if conversion happens among consistent fair value measurement items at different levels
Inapplicable
7. Changes in the valuation technique in the current period and the reason for change
Inapplicable
8. Fair value of financial assets and liabilities not measured at fair value
Inapplicable
9. Other
Inapplicable
XII. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of share Proportion of voting
Name of parent Registration place Nature of business Registered capital
held by parent rights owned by
191
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
company company against the parent company
Company (%) against the Company
(%)
SHENZHEN
INVESTMENT Managing
Shenzhen RMB21.45 billion 63.82% 63.82%
HOLDINGS CO., state-owned assets
LTD
Notes: Information on the parent company:
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
main business scope is investing, operating and managing the state-owned shares in sole-funded,
holding and joint-stock enterprises by means of reorganization, capital running and assets proposal;
carrying out real estate development and operation business after legally obtaining the land use
right; making investment based on policies and strategies as required by Shenzhen SASAC,
providing guarantee to municipal state-owned enterprises, and running other business authorized
by Shenzhen SASAC. 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 Committee of Shenzhen
Government.
Notes:
2. Subsidiaries of the Company
See details to Notes IX. 1
3. Information on the joint ventures and associated enterprises of the Company
See details to Notes IX. 3
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name Relationship
Other notes:
4. Information on other related parties of the Company
Name Relationship
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Shenzhen Guesthouse Restaurant Under the same control of the parent company of the Company
Shenzhen Foreign Economy & Trade Investment Co., Ltd. Under the same control of the parent company of the Company
Shenzhen Investment Holdings Co., Ltd. Under the same control of the parent company of the Company
Other notes:
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand
Yuan)
Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Unit: RMB Yuan
The approval trade Whether exceed trade Same period of last
Related-party Content Reporting period
credit credit or not year
Information of sales of goods and provision of labor service
Unit: RMB Yuan
Related-party Content Reporting period Same period of last year
Shenzhen Investment Holdings
Provision of labor service 259,084.80 1,576,605.60
Co., Ltd.
Notes:
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
Unit: RMB Yuan
Name of the Name of the Income
entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in the
ee contractor reporting period
Notes:
Lists of entrust/contractee
Unit: RMB Yuan
Name of the Name of the Charge
entruster/contract entrustee/ Type Initial date Due date Pricing basis recognized in the
ee contractor reporting period
Notes:
(3) Information of related lease
The Company was lessor:
Unit: RMB Yuan
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The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
The Company was lessee:
Unit: RMB Yuan
The lease income confirmed in
lessor Category of leased assets Category of leased assets
this year
Shenzhen Investment Holdings
Rental 344,842.92 338,185.06
Co., Ltd.
Notes:
(4) Related-party guarantee
The Company was guarantor:
Unit: RMB Yuan
Execution accomplished
Secured party Guarantee amount Start date End date
or not
Dongguan International
Trade Center
129,243,352.00 11 Jan. 2013 11 Jan. 2016 No
Changsheng Real Estate
Development Co., Ltd.
The Company was Secured party
Unit: RMB Yuan
Execution accomplished
Guarantor: Guarantee amount Start date End date
or not
Shenzhen Huangcheng
144,840,006.83 20 Jun. 2014 21 Apr. 2017 No
Real Estate Co., Ltd.
Notes:
The Company and its subsidiaries didn’t provide guarantees for other companies beyond the range
of consolidated financial statements. The above guarantees are those Company and its subsidiaries
provided to each other.
(5) Inter-bank lending of capital of related parties：
Unit: RMB Yuan
Amount borrowed and
Related-party Initial date Due date Explanation
loaned
Borrowed
Loaned
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(6) Related party asset transfer and debt restructuring
Unit: RMB Yuan
Related-party Content Reporting period Same period of last year
(7) Rewards for the key management personnel
Unit: RMB Yuan
Item Reporting period Same period of last year
Total rewards for the key management
5,985,900.00 6,671,900.00
personnel( tax included)
(8) Other related-party transactions
Related party entrusted operating
In Nov. 2012, Shenzhen Foreign Economy & Trade Investment Co., Ltd. (hereinafter referred to
as FET Company”) and Shenzhen Shenxin Taxi Co., Ltd. (hereinafter referred to as “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, see 2, Section X Financial Report, IX, 1. According to the Contract
on Entrusted Management, during reporting period, SX Company paid the assets operating income
of RMB 626,000 to FET Company.
During the entrusted operating period in 2015, the situation of divestiture assets was as followed:
Item Amount
Operation revenue 1,847,405.24
Operation cost 2,638,389.70
Business tax and surcharges 101,006.96
Administrative expenses 757,768.67
Total profits -1,649,760.09
Income tax expense -412,440.02
Net profit -1,237,320.07
Notes: the management costs included paying operation income of RMB 626,000 to FET
Company.
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB Yuan
Closing balance Opening balance
Name o f item Related-party
Book balance Bad debt provision Book balance Bad debt provision
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Anhui Nanpeng
Other accounts
Papermaking Co., 8,047,712.00 8,047,712.00 7,328,480.00 7,328,480.00
receivable
Ltd.
Shenzhen Wufang
Other accounts
Pottery & Porcelain 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
receivable
Industrial Co., Ltd.
Shenzhen
International Trade
Other accounts
Center Industrial 2,351,652.48 2,351,652.48
receivable
Development Co.,
Ltd
Shenzhen
Other accounts
Guesthouse 909,960.40 909,960.40 909,960.40 909,960.40
receivable
Restaurant
Shenzhen
Account receivable Investment Holdings 129,542.40 3,886.27
Co., Ltd.
(2) Payables
Unit: RMB Yuan
Name o f item Related-party Closing book balance Opening book balance
Shenzhen Jifa Warehouse Co.,
Other account payable 26,296,665.14 26,296,665.14
Ltd.
Tianan International Building
Other account payable Property Management 5,214,345.90 4,114,345.90
Company of Shenzhen
7. Related party commitment
No such case in reporting period.
8. Other
Inapplicable
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Inapplicable
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2. The Stock payment settled by equity
□ Applicable √ Inapplicable
3. The Stock payment settled by cash
□ Applicable √ Inapplicable
4. Modification and termination of the stock payment
Naught
5. Other
Naught
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
Item Closing amount
Large amount contract of real estate development project signed but derecognized in 855,729,640.97
financial statements.
Total 855,729,640.97
2. Contingency
(1) Significant contingency at balance sheet date
A. About transferring Jiabin Building contentious matter ( Now rename as: Longyuan
Development Building; former name Jinlihua Commercial Plaza）
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
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area of 28,000 square meters.
On July 29, 2001, Guangdong Higher Court issued Civil Court Judgment YGFM (1999) No. 3
(hereinafter referred to as Judgment No. 3) to judge that ① the Company should transfer the title
of land use right specified in the transfer contract to Jiyong Company within 30 days from the date
the judgment taking into effect and ②Jiyong Company should pay off the transfer consideration
amounting to RMB143, 860,000.00 within 60 days from the date the Company transferred the title
of land use right. On November 27, 2001, the Company applied to Guangdong Higher Court for
forcible execution, however Guangdong Higher Court adjudicated to release the sealing property
of Jiyong Company approximately 10,000 square meters since Industrial & Commercial Bank of
China Zhejiang Branch disagree to seal the properties.
The Company thought the applicable law of the decision was error, and raised an objection to
High Court of Guangdong province.
In Sep.2005, the High Court of Guangdong province delivered unlocked decision to the
Departments of Land and House Property Registers of Shenzhen. The aforesaid about ten
thousand square meters of real estate was officially unlocked.
In January 2006, Guangdong Higher Court issued Civil Court Judgment YGFZ (2002) No. 1 and
adjudicated because that ① the Company has not yet transferred the title of land use right
specified in the transfer contract to Jiyong Company and ② Jiyong Company cannot provide
other properties available for execution and the Company also cannot provide the property
available for execution, the second judgment of the Judgment No. 3 - “Jiyong Company should
pay off the transfer consideration amounted RMB143,860,000 within 60 days from the date the
Company transferred the title of land use right” is terminated for execution. When the conditions
causing termination for execution of the second judgment are eliminated, the second judgment
should still be executed.
In March 2006, according to the ordain of Guangdong Higher People’s Court, the properties in
Jiabin Building that have been sealed up in this case have been released automatically. On
September 2009, company received YGFZ (2002) No. 1-1 Resume Execution Notice from
Guangdong Province Higher Court claimed to resume execution the case that the transfer money
owed by Jiyong company about Jiabin building project.
In October 2009, the Company received (Verdict YGFZ (2002) No. 1-2) from Guangdong Higher
Court. The verdict claimed: The resume execution of this case is according to the "The
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. 1②
When the execution conditions are satisfied, the applicant can apply for resume execution.
According to note (VII) 3, Shenzhen Longyuan-Kaili-Hengfeng Real Estate Co., Ltd. (hereinafter
as the “Longyuan-Kaili”) and Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter as the
“Huaneng Property”) plan to conduct reconstructions to the plaza, On 3 mar. 2011, the Company,
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The First Administration Under Shenzhen Planning And Land Resources Committee Directly and
Longyuan-Kaili had registered the land of Jin Lihua Building to its name according to SDHZ
(1992) No. 0228 Second Supplementary Agreement of Shenzhen Grant Contract of Land Use
Right signed in 2011 and Meeting Summery about Research of Dealing with Problem Building
Issued (No. 481) by Shenzhen Municipal Government.
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 issued (2012) SLFMECZ No. 1150paper of civil judgment; the
decision rejected the Company’s claims. The Company refused to accept the verdict, has instituted
an appeal to the Shenzhen Intermediate People's Court, In Mar. 2015, Shenzhen Intermediate
People's Court made Civil Judgment (2014) SZFSZZ No. 400, the decision to reject the appeal of
the Company, and maintain the original judgment.
As the executable property are not found in the case so far, the Company withdraw bad debt
provision for Shenzhen Jiyong Properties & Resources Development Company‘s transfer amount
of Jin Lihua Commercial Plaza. In Aug. 2015, the Company as a creditor applied to Shenzhen
Intermediate People's Court for the bankruptcy and insolvency of Shenzhen Jiyong Properties &
Resources Development Company, now the Company is waiting for acceptance and inspection.
B. Lawsuit item about land approval of Meisi Company
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 referred 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 RMB8 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.
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84 to Meisi Company and judged that aforesaid certificates are legal and effective and should not
be revoked. Meisi Company disagreed with this judgment and applied the administrative
reconsideration to the People's Government of Shenzhen Municipality. On October 8, 2005, the
People's Government of Shenzhen Municipality issued Decision on Administrative
Reconsideration SFFJ (2005) No. 294 and judged that aforesaid 2 certificates were registered
illegally and should be revoked, reply of SFDH (2005) No. 84 was canceled accordingly.
The Company refused to accept Decision on Administrative ReconsiderFation 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.
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In November 2007, Shenzhen Municipal Bureau of Land Resources and Housing Management
rejected the application of Meisi Company for revoking Property Ownership Certificates SFDZ
No. 0103142 and No. 0103139. Meisi Company prosecuted an administrative litigation to
Shenzhen Futian People’s Court (hereinafter referred as to “Futian Court”) to ask for revoking the
administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing
Management. The Company was involved as third party. Court session started on January 8, 2008
with litigation number of (2008) SFFXCZ No. 10 (hereinafter referred as to “No.10 Case”). On
January 2008, Meisi Company prosecuted an administrative litigation to Futian Court for revoking
the above administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing
Management, revoking Property Ownership Certificates SFDZ No. 0103142 and No. 0103139,
and restoring the land use right to Meisi Company with the litigation number of SFFX (2008) No.
70 (hereinafter referred as to “No.70 Case”). On May 2008, the Futian Court made adjudication to
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.
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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 recognizing 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.
C. Shenzhen Hetaiheng prosecuted the Company to undertake joint liability for the debts
for Shenzhen International Trade Center Industry Development Co., Ltd.
On 31 July 2015, Shenzhen Luohu District People's Court issued (2015) SLFMECZ No. 2499
paper of civil judgment. It decided the Company and China (Shenzhen) Education Business
Shares Co., Ltd. (“China Education Company”) shall undertake the joint liability for the debts for
Shenzhen International Trade Center Industry Development Co., Ltd. (“International Trade Center
Company”) declared under (2002) SLFJYCZ No. 582 paper of civil judgment.
According to (2002) SLFJYCZ No. 582 paper of civil judgment, Shenzhen Xinguang Industry Co.,
Ltd. (“Xinguang Company”) shall, within ten days after the effectiveness of such paper, clean off
2.21 million of principal and interest thereon (such interest shall be counted from 22 Dec. 2000 to
the date when the debts are paid off based on related regulations by the People’s Bank of China as
agreed under Loan Contract) to Shenzhen Shendong Branch of Industrial and Commercial Bank
of China (“Shendong Branch of ICBC”); and International Trade Center Company shall undertake
joint liability for cleaning off such debts.
After the effectiveness of (2002) SLFJYCZ No. 582 paper of civil judgment, Shendong Branch of
ICBC has only been paid off 31,551, and then the creditor’s right has been transferred to Shenzhen
Office of China Orient Asset Management Corporation, who has applied for execution by force to
the People’s Court, but received no more payment. On 22 May 2008, Shenzhen Office of China
Orient Asset Management Corporation further transferred the creditor’s right to Dongfu Asset
Management Corporation. On 24 Oct. 2010, Dongfu Asset Management Corporation again
transferred such right to Shenzhen Hetaiheng Investment Co., Ltd., which has been paid 700,000
during the execution of this paper.
In 2013, International Trade Center Company was under bankruptcy liquidation. On 17 Dec. 2014,
Shenzhen Intermediate People’s Court issued (2013) SZFPZ No. 24-3 paper of civil judgment to
end the bankruptcy proceeding on International Trade Center Company due to its liquidation
failure since the Company’s address was unknown and management failed to take over the
Company’s property and financial data. On 1 Apr.2015, the management of International Trade
Center Company dissolved the company.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Under (2015) SLFMECZ No. 2499 paper of civil judgment, Shenzhen Hetaiheng Investment Co.,
Ltd. claimed that the Company and China Education Company shall undertake the joint liability
for paying off the debts under (2002) SLFJYCZ No. 582 paper of civil judgment (By 31 Mar.
2015, 2,178,449.00 of principal, with the interest counted from the date as regulated by the law to
the date when the debts are paid off).
It is decided in the first-instance judgment by Shenzhen Luohu District People's Court that the two
sharing companies of International Trade Center Industry Company, namely the Company and
China Education Company, as well as Shicai Company though not involved in this case, shall
undertake the joint liability for the debts of International Trade Center Company under (2002)
SLFJYCZ No. 582 paper of civil judgment since they failed to perform the liquidation liability
and to provide accounting books during bankruptcy proceedings of International Trade Center
Company, which led to the failure of an overall liquidation; as for the debt amount, this Court did
not make any decision since such amount may be changed with the performance of paying off the
debts under (2002) SLFJYCZ No. 582 paper of civil judgment by parties involved.
The Company refuses to accept the above judgment and has appealed against such decision.
During the reporting period, the Company estimated about 834,999.50 of debts based on (2015)
SLFMECZ No. 2499 paper of civil judgment and its actual holding 38.33% of the shares of
International Trade Center Company.
(2) Guarantee
A. The Company obtained a long-term loan of RMB 450 million from Bank of Beijing Co., Ltd.
Shenzhen Branch guaranteed by Huangcheng Real Estate Co., Ltd., which had total lending
RMB144.84 million. The closing balance stood at RMB 144.84 million.
B. The Company’s subsidiary Dongguan International Trade Center Changsheng Real Estate
Development Co., Ltd. borrowed RMB40 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). 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., which
had total lending RMB169.2434 million. The closing balance stood at RMB 129.2434 million.
C. The Company’s subsidiary Dongguan International Trade Center Changsheng Real Estate
Development Co., Ltd. belongs to provisional qualification real estate development enterprise,
when dealing with the application of approval of the presale of houses, the commercial housing
quality guarantee after the liquidations of enterprise bankruptcy, dissolution, Dongguan
International Trade Center Changsheng Real Estate Development Co., Ltd. submitted guarantee
RMB12,402,160.00 to Bank of Communications, Duangguang, Dalang Branch, the bank issue 9
Guarantee Letter for irrevocable goods, of which one guarantee of RMB1,468,870.00, from 30Jun.
2015 to 31 Dec. 2020, and the remained were RMB10,933,290.00 from 1 Jul. 2015 to 31 Dec.
2020.
D. Guarantee for the owners: the Company and its subsidiaries are the purchasers providing
mortgage guarantee for the bank, As of 31 Dec. 2015, the unsettle guarantee amount was
RMB220.91 million, the guarantee event was provided by real estate developer for small owners’
purchases of commercial houses of the Company, which was the common phenomenon in the
industry
(3) Contingent assets
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
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 renamed as Longyuan Development Building use 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.
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
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
“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 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.
In Nov. 2014, Longyuan-Kaili and Huaneng Property obtained the Building Engineering
Construction Permission of Longyuan Development Building, in Dec. 2014, the entrusted
construction unit Silver Guangsha Group Co., Ltd., and the exterior wall decoration, glass curtain
wall, roofing and waterproofing project, ventilating engineering, air conditioning engineering,
building water supply and drainage engineering, outdoor engineering etc. were been conducted,
and finished in Dec. 2015. The project so far, was in the completion acceptance stage.
In 9 Jan. 2015, the project obtained Real Estate Pre-sale Permit, and on 17 Jan. 2015, the project
was opening quotation, in line with the public information inquiry of Shenzhen Urban Planning
and Land Resources Committee, there were 1.077 houses for public sale, as of the end of report
issued, 755 sale contracts and contract records, 70% of the total, the intake time agreed by the
contract was 30 Jun. 2016.
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
The Company believed that: due to the project had been completed in Dec. 2015, and had entered
the in the completion acceptance stage in 2016, the delivery of F14 and F15 has no major
substantive obstacles, the potential assets were sure to received, thus, recognized it as an assets,
listed in other current assets. The Company, in line with the Property Value Of Real Estate
Consulting Report of Jinlihua Building F14, F15 of the North of Shen NanWest Road, Luohu
District, Shenzhen (WUZZ No. 2015-Z12006) issued by Shenzhen World Union Appraisal Co.,
Ltd., which recognized the F14 and F15 of the Company with market of RMB174,382,120 as
value of entered assets.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3. Other
Naught
XV. Events after balance sheet date
1. Significant events had not adjusted
Unit: RMB Yuan
Influence number to the
Reason of unable to estimate
Item Content financial position and operating
influence number
results
2. Profit distribution
Unit: RMB Yuan
Planning allocation of profits or dividends 47,678,327.36
Profits or dividends approved, reviewed and issue by the
47,678,327.36
declaration
3. Sales return
Naught
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
4. Notes of other significant events
By 31 Dec. 2015, the Company held 56,600,000.00 (reported under Other Receives) of creditor’s
right on Gintian Industry (Group) Co., Ltd. (“Gintian Industry”) and 53,031,578.72 of withdrawn
bad debt provision on the book.
On 29 Jan. 2016, Shenzhen Intermediate People’s Court issued (2015) SZFPZ No. 14-5 paper of
civil judgment. It is considered that The Reorganization Plan of Gintian Industry (Group) Co., Ltd.
has clearly defined the standard of successful execution of such plan as “the cash and shares
distributed to creditors based on reorganization plan have been transferred to the accounts
specified by creditors or deposited to those specified by the management”. Under the supervision
by the management, Gintian Industry, according to its reorganization plan and the creditors’
payment instruction, has paid cash to the creditors, and meanwhile transferred its tradable share A,
non-tradable share A and share B to the accounts specified by creditors. Besides, Gintian Industry
has also deposited the payment and shares distributed based on the creditors’ rights those not
providing qualified capital accounts or securities accounts. Therefore, Gintian Industry has
successfully executed the reorganization plan. As from suchexecution, Gintian Industry shall not
undertake any liability for the debts reduced or exempted by in the reorganization plan. The paper
further confirmed the successful execution of the reorganization plan by Gintian Industry and thus
ended its bankruptcy proceedings.
Based on the final execution of The Reorganization Plan of Gintian Industry (Group) Co., Ltd.,
the Company received 772,717 tradable A shares, 712,123 non-tradable A shares and 447,217 B
shares distributed by Gintian Industry. Counted on the price issued on the last trading date before
the trading suspension of Gintian Industry (10 Dec. 2014), 2.09 per A share and 1.04 per B share,
the assets compensated shall be valued at 3,568,421.28.
According to (2015) SZFPZ No. 14-5 paper of civil judgment issued by Shenzhen Intermediate
People’s Court, Gintian Industry has successfully executed the reorganization plan, and as from
such execution, Gintian Industry shall not undertake any liability for the debts reduced or
exempted by in the reorganization plan. Therefore, the Company shall write off the receivables of
53,031,578.72 from Gintian. Since this asset item has withdrawn bad debt provision, it will not
exert any influences on business results.
XVI. Other significant events
1. The accounting errors correction in previous period
(1) Retrospective restatement
Unit: RMB Yuan
Name of the influenced report
Content Processing program Cumulative impact
items during comparison period
(2) Prospective application
Content Processing program Reason of adopting prospective application
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
2. Debt restructuring
Inapplicable
3. Replacement of assets
(1) Non-monetary assets exchange
Inapplicable
(2) Other assets replacement
Inapplicable
4. Pension plan
Inapplicable
5. Discontinuing operation
Unit: RMB Yuan
Termination of
the business
Income tax profits
Item Revenue Expense Total profits Net profit
expense attributable to the
parent company
owner
Other notes:
Inapplicable
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
The Group's business includes real estate business, housing lease management, transportation,
catering services, and other business (including: mechanical and electrical professional
maintenance business, mechanics, engineering supervision, parking lot, because of the above
businesses income are small, approve them being merged), etc. The Group separately organized
and managed according to the business and the properties of products and services provided. Each
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
business division of the Group was a business group, provided the facing risk and obtained
rewards and products different from other division.
A. Real estate business divisions: real estate development, sales and rental
B. The property management business divisions: building management
C. Transportation business division: operating passenger car
D. Diet services: catering service
E. Other business: operating mechanical and electrical professional maintenance business,
mechanics, engineering supervision business, and parking lot
The management considering the decision of resources and evaluation of performance separately
manage the operating results of each unit of business.
(2) The financial information of reportable segment
Unit: RMB Yuan
Property Transportatio Catering Offset in
Item Real estate Others Undistributed Total
management n service segment
Operation 595,657,932. 383,726,480. 60,914,047.9 31,014,702.8 1,077,418,50
6,105,337.18
revenue 90 02 4 9 0.93
Trading
revenues 12,388,568.8 -21,338,047.5
2,083,303.00 301,670.95 1,288,269.00 5,276,235.69
between 7 1
divisions
Sales 42,384,136.3 41,941,165.9
-442,970.42
expenses 6 4
Investments
in associated
companies 1,637,238.00 1,637,238.00
and joint
ventures
Asset
77,621,988.8 18,542,750.3 96,663,939.7
impairment 680,576.21 41,119.62 -52,369.17 -170,126.21
9 7 1
loss
Depreciation
and 19,263,331.2 18,335,149.0 39,474,798.6
1,444,495.48 390,107.44 41,715.54
amortization 1 2 9
charges
Total profits 222,095,481. 29,272,449.8 -33,946,158.1 -10,621,843.0 216,391,692.
8,401,807.02 1,226,323.68 -36,368.78
(losses) 59 0 2 6 13
5,684,470,69 417,588,343. 380,067,812. 2,362,095,34 -4,479,715,64 4,379,763,48
Total assets 7,339,004.31 7,917,928.25
2.79 01 71 5.82 0.79 6.10
Total 4,108,077,83 319,798,701. 183,821,035. 7,429,395.61 9,406,441.89 1,770,580,39 -4,120,119,17 2,278,994,63
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
liabilities 9.11 37 17 0.13 0.85 2.4
Leong term
equity
investments
34,526,177.4 34,526,177.4
in associated
1 1
companies
and joint
ventures
Increase
amount of
non-current
33,676,912.4 40,901,000.9
assets except 6,327,435.98 894,302.56 2,350.00
4 8
long term
equity
investment
(3) There was no reportable segment, or the total amount of assets and liabilities of each part
of reportable segment, shall disclose the reason.
Inapplicable
(4) Other notes
A. Income of foreign trade of production and labor serve
Item Reporting period Last period
Real estate 595,657,932.90 823,545,260.23
Property management 383,726,480.02 348,639,937.02
Transportation 60,914,047.94 65,503,394.11
Catering service 31,014,702.89 24,634,302.99
Other 6,105,337.18 6,128,557.51
Total 1,077,418,500.93 1,268,451,451.86
B. Geography information
Distribution of foreign trade income:
Item Reporting period Last period
Mainland of China 1,076,951,837.08 1,267,999,589.99
Countries and regions outside the Chinese mainland 466,663.85 451,861.87
Total 1,077,418,500.93 1,268,451,451.86
Distribution of total non-current assets liabilities:
Item Closing balance Opening balance
Mainland of China 457,200,691.14
453,648,609.02
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Countries and regions outside the Chinese mainland 2,455,666.52
2,944,308.35
Total 459,656,357.66
456,592,917.37
C. Customers information
the customers of the Group were rather dispersed; there was no individual transaction over 10%.
7. Other important transactions and events have an impact on investors decision-making
Inapplicable
8. Other
Inapplicable
XVII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with insignificant
single amount for 96,647,8 96,647,8 101,447 101,447,8
98.08 100.00 97.88% 100.00%
which bad debt 89.05 89.05 ,889.05 89.05
provision separately
accrued
Accounts receivable
withdrawal of bad
1,828,82 849,254. 979,569.4 2,149,1 1,119,917 1,029,211.5
debt provision of by 1.77% 46.44% 2.07% 52.11%
4.21 72 9 28.71 .19 2
credit risks
characteristics:
Accounts receivable 54,380.3 0.05% 54,380.3 100.00% 54,380. 0.05% 54,380.35 100.00%
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
with insignificant 5 5 35
single amount for
which bad debt
provision separately
accrued
98,531,0 97,551,5 979,569.4 103,651 102,622,1 1,029,211.5
Total 100.00 99.01 100.00% 99.01%
93.61 24.12 9 ,398.11 86.59 2
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
√ Applicable □ Inapplicable
Unit: RMB Yuan
Accounts receivable Closing balance
(entity) Account receivable Bad debt provision Withdrawal proportion Withdrawal reason
93,811,328.05 93,811,328.05 100.00 Involved in lawsuit and
Shenzhen Jiyong no executable property,
Properties & Resources please refer to Section X.
Development Company Financial Report XIV. 2,
(1)
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
Total 96,647,889.05 96,647,889.05 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 429,793.50 12,893.81 3.00%
Subtotal of within 1 year 429,793.50 12,893.81 3.00%
2 to 3 years 803,814.00 241,144.20 30.00%
Over 5 years 595,216.71 595,216.71 100.00%
Total 1,828,824.21 849,254.72 46.44%
Notes:
For details, please refer to Section X. Financial Report V. 11
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:
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the reporting period was of RMB-270,662.47; the amount
of the reversed or collected part during the reporting period was of RMB4,800,000.00.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB Yuan
Name of the entity Amount Method
Total 4,800,000.00 --
(3) Particulars of the actual verification of accounts receivable during the reporting period
Unit: RMB Yuan
Item Amount
Of which: significant actual verification of accounts receivable
Unit: RMB Yuan
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related
party transactions
Total -- 0.00 -- -- --
Notes:
No such case in reporting period.
(4) Top five of account receivable of closing balance collected by arrears party
Name of the entity Closing balance Proportion (%) Closing balance of bad debt
provision
Shenzhen Jiyong Properties & 93,811,328.05 95.21 93,811,328.05
Resources Development Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.88 2,836,561.00
RAINBOW DEPARTMENT STORE 1,399,030.71 1.42 836,360.91
CO., LTD
Shenzhen Jindu Wedding Etiquette Co., 283,251.00 0.29 8,497.53
Ltd.
Luohu District Economic Development 54,380.35 0.06 54,380.35
Co., Ltd.
Total 98,384,551.11 99.86 97,547,127.84
(5) Derecogniziton of account receivable due to the transfer of financial assets
Naught
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
(6) The amount of the assets and liabilities formed by the transfer and the continues
involvement of accounts receivable
Naught
Notes:
Naught
2. Other accounts receivable
(1) Other account receivable classified by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Other accounts
receivable with
insignificant single 188,204, 89,137,8 99,066,31 184,010 115,277,8 68,732,459.
10.08% 47.36% 9.76% 62.65%
amount for which 157.06 42.62 4.44 ,311.48 52.18 30
bad debt provision
separately accrued
Other accounts
receivable withdrawn 1,699,1
1,676,94 9,623,90 1,667,326 9,668,771 1,689,505,8
bad debt provision 89.79% 0.57% 74,579. 90.11% 0.57%
9,946.25 6.48 ,039.77 .88 07.43
according to credit 31
risks characteristics
Other accounts
receivable with
insignificant single 2,415,32 2,415,32 2,421,3 2,421,326
0.13% 100.00% 0.13% 100.00%
amount for which 6.23 6.23 26.23 .23
bad debt provision
separately accrued
1,885,6
1,867,56 101,177, 1,766,392 127,367,9 1,758,238,2
Total 100.00% 5.42% 06,217. 100.00% 6.75%
9,429.54 075.33 ,354.21 50.29 66.73
02
214
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Other accounts receivable
Other accounts
(unit） Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Shum Yip Properties Uncollectible for a long
103,008,475.56 7,510,582.40 7.29%
Development Co., Ltd. period
Perform guarantee item,
Jintian Group Co., Ltd. 56,600,000.00 53,031,578.72 93.70%
irrecoverable
Anhui Nanpeng Irrecoverable for long
8,047,712.00 8,047,712.00 100.00%
Papermaking Co., Ltd. time
The Company was
Advances the shopping
6,481,353.60 6,481,353.60 100.00% enforced to conduct,
mall gold business utilities
irrecoverable
Shanghai Yutong Real
estate development Co., 5,676,000.00 5,676,000.00 100.00% Judgments, irrecoverable
Ltd.
Irrecoverable for long
Wuyao Company 3,271,837.78 3,271,837.78 100.00%
time
Dameisha Tourism Cente 2,576,445.69 2,576,445.69 100.00% Suspend of projects
Project son hold
Elevated Train Project 2,542,332.43 2,542,332.43 100.00%
irrecoverable
Total 188,204,157.06 89,137,842.62 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 298,875.17 8,966.25 3.00%
Subtotal of within 1 year 298,875.17 8,966.25 3.00%
1 to 2 years 351,821.46 35,182.15 10.00%
2 to 3 years 4,853.18 1,455.95 30.00%
Over 5 years 9,578,302.13 9,578,302.13 100.00%
Total 10,233,851.94 9,623,906.48 94.04%
Notes:
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2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
For details, please refer to Section X. Financial Report V. 11.
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
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the reporting period was of RMB -44,865.40; the amount
of the reversed or collected part during the reporting period was of RMB26,254,513.85.
Significant amount of reversed or recovered bad debt provision
Unit: RMB Yuan
Name of the entity Reversed or collected amount Method
Of which: recovered and reversed asset
Shum Yip Properties Development Co., Ltd. 22,680,092.57
value
Jintian Industrial (Group) Co., Ltd. 3,568,421.28 Debt to equity
Total 26,248,513.85 --
The amount of bad debt provision was RMB-44,865.40; the increase of amount of bad debt provision of foreign
currency of creditor's rights receivable after exchange was RMB2, 460,156.77, the amount of reversed or
recovered bad debt provision in the report period RMB 26,254,513.85. In Apr. 2014, due to Shenzhen International
Trade Center Industrial Development Co., Ltd.’s original transfer of bad debt provision of RMB2, 351,652.48 to
other current assets were canceled.
(3) Particulars of the actual verification of other accounts receivable during the reporting
period
Unit: RMB Yuan
Item Amount
Of which: significant actual verification of other accounts receivable
Unit: RMB Yuan
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related
party transactions
Total -- 0.00 -- -- --
Notes of write-off other accounts receivable:
(4) Other account receivable classified by account nature
Unit: RMB Yuan
216
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Nature Closing book balance Opening book balance
Margin 3,204,898.13 2,311,917.57
Pretty cash advance 47,200.00 65,579.80
Account receivable to subsidiary 1,769,778,048.64 1,785,986,694.93
Account receivable to affiliated company 9,794,976.25 11,427,396.73
Account receivable non-affiliated company 84,744,306.52 85,814,627.99
Total 1,867,569,429.54 1,885,606,217.02
(5) Top 5 of the closing balance of the other accounts receivable collected according to the
arrears party
Unit: RMB Yuan
Closing balance of
Name of the entity Nature Closing balance Aging Proportion%
bad debt provision
PRD Yangzhou Real
Account receivable
Estate Development 659,369,836.60 Within 4 year 35.31%
to subsidiary
Co., Ltd.
PRD Group Xuzhou
Account receivable
Dapeng Real Estate 580,204,789.61 Within 4 year 31.07%
to subsidiary
Development Co.,Ltd.
Dongguan
International Trade
Center Changsheng Account receivable
264,541,793.00 Within 3 year 14.17%
Real Estate to subsidiary
Development Co.,
Ltd.
Shum Yip Properties
Account receivable
Development Co., 103,008,475.56 Over 5 years 5.52% 7,510,582.40
to subsidiary
Ltd.
Shenzhen
Huangcheng Real Account receivable
90,040,000.00 Within 2 year 4.82%
Estate Management to subsidiary
Co., Ltd.
Total -- 1,697,164,894.77 -- 90.88% 7,510,582.40
(6) Account receivable involving government subsidies
Unit: RMB Yuan
Project of government Estimated recovering
Name of the entity Closing balance Closing aging
subsidies time, amount and basis
217
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Total -- 0.00 -- --
Naught
(7) Other account receivable derecognized due to the transfer of financial assets
Naught
(8) Amount of transfer other account receivable and assets and liabilities formed by its
continuous involvement
Naught
Notes:
Naught
3. Long-term equity investment
Unit: RMB Yuan
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment to the
278,521,260.98 31,964,000.00 246,557,260.98 278,521,260.98 31,964,000.00 246,557,260.98
subsidiary
Investment to
joint ventures and
67,333,791.55 32,807,614.14 34,526,177.41 69,379,526.10 36,490,586.69 32,888,939.41
associated
enterprises
Total 345,855,052.53 64,771,614.14 281,083,438.39 347,900,787.08 68,454,586.69 279,446,200.39
(1) Investment to the subsidiary
Unit: RMB Yuan
Withdrawn
Closing balance
impairment
Investee Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Shenzhen
Huangcheng Real 28,500,000.00 28,500,000.00
Estate Co., Ltd.
218
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
SZPRD Real
Estate
30,950,000.00 30,950,000.00
Development Co.,
Ltd.
PRD Yangzhou
Real Estate
50,000,000.00 50,000,000.00
Development Co.,
Ltd.
Dongguan
International Trade
Center
Changsheng Real 20,000,000.00 20,000,000.00
Estate
Development Co.,
Ltd.
Shenzhen
International Trade
29,850,000.00 29,850,000.00
Center Vehicles
Industry Co., Ltd.
SHENZHEN
INTERNATIONA
L TRADE
CENTER 20,000,000.00 20,000,000.00
PROPERTY
MANAGERMEN
T CO., LTD.
Shenzhen Shenxin
Motor Rent Co., 12,877,260.98 12,877,260.98
Ltd.
Shenzhen
International Trade
1,600,000.00 1,600,000.00 1,600,000.00
Center Food Co.,
Ltd.
Shenzhen Property
Construction
3,000,000.00 3,000,000.00
Supervision Co.,
Ltd.
Shenzhen
International Trade 12,000,000.00 12,000,000.00 12,000,000.00
Plaza
Shenzhen Real 1,380,000.00 1,380,000.00
219
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Estate Exchange
Zhanjiang
Shenzhen Real
Estate 2,530,000.00 2,530,000.00 2,530,000.00
Development Co.,
Ltd.
Shum Yip
Properties
15,834,000.00 15,834,000.00 15,834,000.00
Development Co.,
Ltd.
PRD Group
Xuzhou Dapeng
Real Estate 50,000,000.00 50,000,000.00
Development Co.,
Ltd.
Total 278,521,260.98 278,521,260.98 31,964,000.00
(2) Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Increase/decrease in reporting period
Investme Closing
Adjustme
nt profit Withdraw balance
Additiona nt of Declarati
Opening Negative and loss Other n Closing of
Investee l other on of cash
balance investmen recognize equity impairme Other balance impairme
investmen comprehe dividends
t d under changes nt nt
t nsive or profits
the equity provision provision
income
method
I. Joint ventures
Shenzhen
Jifa
29,880,87 908,463.5 30,789,34
Warehous
8.39 9 1.98
e Co.,
Ltd.
Tianan
Internatio
nal
3,008,061 728,774.4 3,736,835
Building
.02 1 .43
Property
Managem
ent
220
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Company
of
Shenzhen
32,888,93 1,637,238 34,526,17
Subtotal
9.41 .00 7.41
II. Associated enterprises
Shenzhen
Wufang
Pottery & 18,983,61 18,983,61 18,983,61
Porcelain 4.14 4.14 4.14
Industrial
Co., Ltd.
Shenzhen
Internatio
nal Trade
Center 3,682,972 -3,682,97
Industrial .55 2.55
Develop
ment Co.,
Ltd.
Anhui
Nanpeng
13,824,00 13,824,00 13,824,00
Papermak
0.00 0.00 0.00
ing Co.,
Ltd.
36,490,58 -3,682,97 32,807,61 32,807,61
Subtotal
6.69 2.55 4.14 4.14
69,379,52 1,637,238 -3,682,97 67,333,79 32,807,61
Total
6.10 .00 2.55 1.55 4.14
(3) Other notes
The decrease of long term equity investment of Shenzhen International Trade Center Industrial Development Co.,
Ltd. was the assets to be cancel after verification transfer to current assets canceled by the bankruptcy
administrator in Apr. 2014.
4. Revenues and operating costs
Unit: RMB Yuan
Reporting period Same period of last year
Item
Revenue Operating costs Revenue Operating costs
221
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Main operations 61,440,361.37 14,568,381.71 56,980,961.69 19,108,080.80
Other operations 9,387,672.00 6,953,574.65
Total 61,440,361.37 14,568,381.71 66,368,633.69 26,061,655.45
Notes:
5. Investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income
1,637,238.00 -352,555.03
accounted by equity method
Investment income arising from disposal of
207,432,184.22
long-term equity investments
Investment income received from disposal of
5,709,098.20
available-for-sale financial assets
Investment income arising from entrust loans 3,378,400.00
Others 225,340.35
Total 7,571,676.55 210,458,029.19
6. Other
Inapplicable
XVIII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current
-175,931.40
assets
Tax rebates, reductions or exemptions due to
approval beyond authority or the lack of 153,795.84
official approval documents
The non-operating revenue was increased
Profits or losses incurred from contingency of 3269.02% over the last period was
168,991,971.80
of non-operating business. mainly due to the recognition of assets of
Dragon Garden Development Building
222
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
F14, F15, RMB169,582,120.00, For
details, please refer to Section X Financial
Report (XIV) 2, (2).
Gain/loss from change of fair value of
transactional assets and liabilities, and
investment gains from disposal of
transactional financial assets and liabilities 5,709,098.20
and available-for-sale financial assets, other
than valid hedging related to the Company’s
common businesses
Reverse of bad debt provision of account
receivable individually conducting 8,374,421.28
impairment test
Other non-operating income and expenses
164,576.21
other than the above
Less: Income tax effects 44,878,576.92
Total 138,339,355.01 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
7.59% 0.2631 0.2631
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
0.89% 0.0310 0.0310
deduction of non-recurring profit
and loss
3. 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
223
2015 Annual Report of Shenzhen Properties & Resources Development (Group) Ltd.
Net profit Net asset
Reporting period Same period of last year Closing balance Opening balance
According to Chinese
156,819,966.71 417,498,679.91 2,099,906,766.61 2,074,242,662.07
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
156,819,966.71 417,498,679.91 2,099,906,766.61 2,074,242,662.07
accounting standards
(2) Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
√ Applicable □ Inapplicable
Name of foreign accounting standard
Unit: RMB Yuan
Net profit Net asset
Reporting period Same period of last year Closing balance Opening balance
According to Chinese
156,819,966.71 417,498,679.91 2,099,906,766.611 2,074,242,662.07
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
156,819,966.71 417,498,679.91 2,099,906,766.61 2,074,242,662.07
accounting standards
(3) Explain reasons for the differences between accounting data under domestic and
overseas accounting standards, for audit data adjusting differences had been foreign audited,
should indicate the name of the foreign institutions
No difference
4. Other
Naught
224
