Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
SEMI-ANNUAL REPORT 2016
16
August 2016
1
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section I Important Statements, Contents and Terms
The board of directors (the “Board”), the board of supervisors (the “Board of Supervisors”) as well
as the directors, supervisors and senior management of Shenzhen Properties & Resources
Development (Group) Ltd. (the “Company”) hereby guarantee the factuality, accuracy and
completeness of the contents of the Report, and shall be jointly and severally liable for any false
representation, misleading statements or material omissions in the Report.
All the directors attended the board meeting for the review of the Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into
share capital.
Chen Yugang, head of the Company, Wang Hangjun, accounting head for the Report, and Shen
Xueying, head of the accounting organ (head of accounting), hereby guarantee that the Financial
Report carried in the Report is factual, accurate and complete.
The Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Contents
Semi-annual Report 2016 ..................................................................................................................1
Section I Important Statements, Contents and Terms....................................................................2
Section II Corporate Profile..............................................................................................................4
Section III Highlights of Accounting Data and Financial Indicators............................................6
Section IV Report by the Board of Directors ..................................................................................8
Section V Significant Events ...........................................................................................................17
Section VI Share Changes and Shareholders’ Profile...................................................................22
Section VII Preference Shares ........................................................................................................26
Section VIII Directors, Supervisors and Senior Management.....................................................27
Section IX Financial Report............................................................................................................28
Section X Documents Available for Reference ............................................................................178
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section II Corporate Profile
I Corporate information
Stock name 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. (if any) 深物业集团
Company name in English (if
ShenZhen Properties & Resources Development（Group） Ltd.
any)
Abbr. (if any) SZPRD
Legal representative Chen Yugang
II Contact information
Board Secretary Securities Representative
Name Fan Weiping
Qian Zhong, Huang Fengchun
42/F, International Trade Center, Renmin 42/F, International Trade Center, Renmin
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 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the
Company during the Reporting Period?
□ Applicable √ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the Reporting Period. The said information can be found in the 2015 Annual Report.
2. About information disclosure and the place where the Report is kept
Did any change occur to information disclosure media and the place where the Report is kept during the Reporting Period?
□ Applicable √ Not applicable
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Report and the location where the Report is placed did not change during the Reporting Period. The said information can be found in
the 2015 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable √ Not applicable
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not
change during the Reporting Period. The said information can be found in the 2015 Annual Report.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section III Highlights of Accounting Data and Financial Indicators
I Major accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in
accounting policies or correction of accounting errors
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 372,057,479.96 338,761,310.39 9.83%
Net profit attributable to shareholders of
-5,248,704.63 31,162,831.74 -116.84%
the Company (RMB)
Net profit attributable to shareholders of
the Company after excluding exceptional -5,865,281.91 26,946,876.19 -121.77%
profit and loss (RMB)
Net cash flows from operating activities
1,509,256,494.79 -221,909,180.93 780.12%
(RMB)
Basic earnings per share (RMB/share) -0.0088 0.0523 -116.83%
Diluted earnings per share (RMB/share) -0.0088 0.0523 -116.83%
Weighted average return on equity (%) -0.25% 1.52% -1.77%
As at the end of the
As at the end of last year +/- (%)
Reporting Period
Total assets (RMB) 5,910,285,347.18 4,379,763,486.10 34.95%
Net assets attributable to shareholders of
2,047,980,551.38 2,099,906,766.61 -2.47%
the Company (RMB)
II Differences in accounting data under domestic and overseas accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under
international and Chinese accounting standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under overseas
and Chinese accounting standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
III Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Profit/loss on disposal of non-current assets (including offset
-6,300.00
amount of asset impairment provisions)
Impairment provision reversal for accounts receivable on which
11,729.17
the impairment test is carried out separately
Non-operating income and expense other than the above 790,677.90
Less: Corporate income tax 179,529.79
Total 616,577.28 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section IV Report by the Board of Directors
I Overview
1. General performance
China’s real estate market continued to heat up in the beginning of 2016 as it did in 2015. In the first quarter of the year, market
expectations were great with accommodative policy and credit settings and property transactions went up steadily as a result, but
some third-and-fourth-tier cities were still under great pressure of de-stocking. Since the second quarter, in order to prevent over-heat
of property prices, Shanghai and Shenzhen has unveiled tightening measures. Meanwhile, some needs have been overdrawn in a
market that has been active from the second half of last year. In addition, house prices are high in hotspot cities such as Suzhou and
Dongguan. Consequently, the wait-and-see mood is growing in the market. Property sales in Shenzhen dropped slightly from the first
quarter, slowing down the growth in the neighboring markets such as Dongguan and Huizhou.
In face of a complex environment, we put our annual targets at the heart of everything we did, strengthened management and
implementation, seized opportunities in the market and accelerated progress on our major projects to ensure the achievement of our
annual targets. For the first half of the year, we achieved operating revenues of RMB372.06 million.
2. Our real estate business
In the first half of 2016, our main business of real estate generated revenue of RMB101.95 million, up 17.32% year on year, mainly
because Yangzhou Project Phase I started the move-in in June 2015 and 10,798 ㎡ was sold in the first half of 2016, while only
1,898 ㎡ of all of our real estate projects was sold in the same period of last year. Meanwhile, our sidelines such as property leasing,
property management and auto transportation maintained steady development.
In the first half of the year, we mainly had three projects on the market, namely, Shenzhen Qianhai Gangwan Garden, Dongguan
Songhu Langyuan and Yangzhou Hupan Yujing. Grasping opportunities arising from the radiation of growth from first-tier cities to
second-and-third-tier cities, we drew up the best selling prices and strategies through many discussions, and the said three projects all
yielded desired sales results. The Shenzhen Qianhai Gangwan Garden project was open for sale at the end of 2015 and had sold 471
units by June 2016, generating revenue of approximately RMB2.168 billion. For our projects outside Shenzhen (Yangzhou,
Dongguan, etc.), we strengthened the marketing teams and market research and adopted integrated marketing measures in a timely,
effective manner according to the characteristics of and changes in the local markets, which greatly boosted the sales of the projects.
Concerning the project in Dongguan, the average price has risen from RMB6800/㎡ at the beginning of its sale to an amount over
RMB10,000/㎡, and 1,166 units have been sold for a sales income of around RMB948 million. As for the project in Yangzhou, 271
units have been sold for about RMB0.4 billion.
3. Progress on our major projects
SZPRD-Hupan Yujing project (in Yangzhou): an investment of RMB63.86 million in the Reporting Period, and accumulative
investments at RMB877.20 million. External decoration completed for Building No. 1, 2 and 3, other buildings going through
internal and external decoration, and pre-sale license obtained for Building No. 8.
SZPRD-Banshan Yujing project (in Xuzhou): an investment of RMB18.65 million in the Reporting Period, and accumulative
investments at RMB612.34 million. General construction and landscaping completed; and except for planning acceptance, other
acceptances completed.
SZPRD-Songhu Langyuan project (in Dongguan): an investment of RMB62.87 million in the Reporting Period, and accumulative
investments at RMB667.21 million. 95% completed for internal and external decoration; 85% completed for mechanical and
electrical installation; and 88% completed for landscaping.
SZPRD-Qianhai Gangwan Garden project: an investment of RMB86.69 million in the Reporting Period, and accumulative
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
investments at RMB563.05 million. 91% completed for external decoration and mechanical & electrical installation; 79% completed
for internal decoration; and 44% completed for landscaping.
SZPRD-Golden Collar’s Holiday project: an investment of RMB19.44 million in the Reporting Period, and accumulative
investments at RMB175.56 million. Flooring for basements ongoing; and 4% completed for the main structure.
II Analysis of main business
YoY movements in major financial data
Unit: RMB
Main reason for
Reporting Period Same period of last year YoY +/-%
movement
Operating revenues 372,057,479.96 338,761,310.39 9.83%
Operating costs 295,007,821.86 199,054,160.59 48.20% Increased sold area
Increase in advertising
expenses and the like for
Selling expenses 16,539,759.59 12,658,266.69 30.66%
strengthening sales
promotion
Administrative expenses 44,572,155.45 48,330,181.70 -7.78%
Increase in interest
Finance costs -7,038,438.94 -4,714,375.50 49.30%
income
Corporate income tax 2,611,980.49 11,362,044.97 -77.01% Decreased profit
Net cash flows from Increase in property sales
1,509,256,494.79 -221,909,180.93 780.12%
operating activities income
Net outflows decreased
mainly due to the
Net cash flows from
-1,245,993.48 -7,669,730.46 -83.75% decrease in the taxi
investing activities
renewal expenses of the
subsidiary
Net cash flows from Less loans secured and
-326,276,049.87 -96,151,660.47 239.33%
financing activities more loans repaid
Net increase in cash and Increase in property sales
1,182,718,159.91 -325,965,954.84 462.83%
cash equivalents income
Decrease in land VAT
due to a decreased
Business tax and surtaxes 23,744,962.40 46,781,146.09 -49.24% average gross profit
margin for projects in
different cities
Provision for falling
Asset impairment loss 3,810,897.96 357,797.60 965.10% prices of the
SZPRD-Hupan Yujing
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Phase II project in the
Reporting Period
Earnings on disposal of
available-for-sale
Return on investment 1,158,576.32 6,767,542.26 -82.88% financial assets, etc. in
the same period of last
year
Greatly different gross
Net profit attributable to
-5,248,704.63 31,162,831.74 -116.84% profit margins for
owners of the Company
projects in different cities
Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Reporting Period progress of the future development planning in the disclosed documents of the Company such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Review the progress of the previously disclosed business plan in the Reporting Period:
Not applicable
III Breakdown of main business
Unit: RMB
Operating Gross profit
Operating Gross profit Operating cost:
Operating cost revenue: YoY margin: YoY
revenue margin YoY +/-%
+/-% +/-%
By business segment
Real estate
101,946,400.67 96,718,311.22 5.13% 17.32% 424.24% -73.64%
development
Property leasing 37,319,562.60 7,437,378.02 80.07% 5.39% -11.56% 3.82%
Property
160,630,495.16 152,040,225.20 5.35% 7.28% 11.65% -3.71%
management
Passenger
29,370,584.42 16,135,517.42 45.06% -1.19% 20.45% -9.87%
transportation
Catering service 11,632,035.39 9,986,071.96 14.15% -0.02% 4.66% -3.84%
Others 31,158,401.72 12,690,318.04 59.27% 22.85% -3.02% 10.87%
By product
Property for sale 101,946,400.67 96,718,311.22 5.13% 17.32% 424.24% -73.64%
Property for 37,319,562.60 7,437,378.02 80.07% 5.39% -11.56% 3.82%
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
leasing
Property
management 160,630,495.16 152,040,225.20 5.35% 7.28% 11.65% -3.71%
service
Passenger
transportation 29,370,584.42 16,135,517.42 45.06% -1.19% 20.45% -9.87%
service
Catering service 11,632,035.39 9,986,071.96 14.15% -0.02% 4.66% -3.84%
Others 31,158,401.72 12,690,318.04 59.27% 22.85% -3.02% 10.87%
By geographical segment
Shenzhen 164,781,760.26 101,558,442.04 38.37% -34.50% -18.63% -12.02%
Outside Shenzhen 207,275,719.70 193,449,379.82 6.67% 137.76% 160.58% -8.17%
IV Core competitiveness analysis
Shenzhen has enjoyed a booming real estate market since 2015. Our finances are in good shape for our SZPRD-Qianhai Gangwan
Garden and SZPRD-Songhu Langyuan projects, respectively located in Shenzhen and Dongguan, have yielded more economic
benefits than expected and our SZPRD-Hupan Yujing project in Yangzhou is selling well. We also have the SZPRD-Golden Collar’s
Holiday project under construction in the core of Shenzhen, which together with the aforesaid projects would generate considerable
revenue over RMB10 billion, laying a solid foundation for our subsequent growth. Meanwhile, upon years of experience in
developing local and non-local real estate projects, as well as the formulation and implementation of new mechanisms and rules, our
real estate development and management capability keeps improving. In addition, as for our sidelines of property management, taxi
service, etc., we also keep reforming the businesses, introducing new thinking in operation and increasing our competitiveness.
V Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Equity-holdings in financial enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Securities investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(4) Shareholdings in other listed companies
√ Applicable □ Not applicable
Our shareholdings in other listed companies:
Change in
Initial Profit/loss in owner’s equity
Shareholding Closing book Stock
Stock code Stock name investment the Reporting in the Accounting title
(share) value (RMB) source
cost (RMB) Period (RMB) Reporting
Period
400016 Gintian A 3,103,315.60 1,484,840 3,103,315.60 Available-for-sale Obtained in
financial asset debt
restructuring
420016 Gintian B 465,105.68 447,217 465,105.68 Available-for-sale Obtained in
financial asset debt
restructuring
Total 3,568,421.28 - 3,568,421.28 0.00 0.00
2. Cash management entrustment, derivative financial instrument investments and entrusted loans
(1) Cash management entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Derivative financial instrument investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Entrusted loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Use of raised funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Main controlled and joint stock companies
√ Applicable □ Not applicable
Main controlled and joint stock companies:
Unit: RMB
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Rela
tions
hip Main
Registered Operating Operating
Company name with Industry products/servic Total assets Net assets Net profit
capital revenues profit
the es
Com
pany
Shenzhen Subs
Real estate 30,000,000. 1,963,132,9 856,344,90 25,642,977. -8,098,80
Huangcheng Real idiar Real estate -6,145,204.92
development 00 54.43 0.86 21 7.07
Estate Co., Ltd. y
SZPRD Real
Subs
Estate Real estate 30,950,000. 98,323,354. 67,392,725. 2,072,912
idiar Real estate 218,570.57 1,544,847.97
Development Co., development 00 79 48 .66
y
Ltd.
Shenzhen Motor
Subs Motor
International passenger 29,850,000. 455,220,51 228,060,72 22,443,055. 4,935,339
idiar passenger 3,757,055.56
Trade Center Car transportat 00 3.00 2.02 29 .98
y transportation
Industry Co., Ltd. ion
Shenzhen
International Property
Subs Property
Trade Center manageme 20,000,000. 290,210,00 95,035,699. 171,889,17 11,003,03
idiar management 7,550,678.34
Property nt and 00 7.55 71 9.09 6.04
y and leasing
Management Co., leasing
Ltd.
SZPRD Yangzhou
Subs
Real Estate Real estate 50,000,000. 735,538,24 15,844,734. 101,946,40 -7,856,84
idiar Real estate -7,786,848.07
Development Co., development 00 5.82 82 0.67 8.07
y
Ltd.
Dongguan ITC
Changsheng Real Subs
Real estate 20,000,000. 1,543,892,2 -12,292,345 -1,314,03
Estate idiar Real estate 0.00 -888,645.87
development 00 37.63 .66 4.98
Development Co., y
Ltd.
SZPRD Xuzhou
Dapeng Real Subs
Real estate 50,000,000. 517,637,35 -94,316,036 -1,270,77
Estate idiar Real estate 0.00 -1,270,779.03
development 00 7.11 .67 9.03
Development Co., y
Ltd.
5. Significant projects invested with non-raised funds
√ Applicable □ Not applicable
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Unit: RMB'0,000
Cumulative Index to
Investment in actual Disclosure date disclosed
Total planned Project Project
Project name the Reporting investment up (if any) information (if
investment progress earnings
Period to the any)
period-end
SZPRD-Hupan
Yujing Phase I 108,913 6,386 87,720
and II
SZPRD-Bansh
an Yujing 84,000 1,865 61,234
Phase I and II
SZPRD-Songh
89,523 6,287 66,721
u Langyuan
SZPRD-Qianh
ai Gangwan 79,920 8,669 56,305
Garden
SZPRD-Golde
n Collar’s 152,140 1,944 17,556
Holiday
Total 514,496 25,151 289,536 -- -- -- --
VI Performance forecast for January-September 2016
Warning of possible loss or considerable YoY movement in the accumulated net profit made during the period-beginning to the end
of the next Reporting Period, as well as the reasons
√ Applicable □ Not applicable
Forecast: Considerable decrease at the same direction
Type of the forecast data: exact data
January-Septe
January-September 2016 +/- (%)
mber 2015
Forecast accumulative net
-900 4,646 Down -119.37%
profit (RMB'0,000)
Basic earnings per share
-0.0151 0.0779 Down -119.37%
(RMB/share)
Reason for the forecast considerable fluctuation of our business results: The average gross profit
margin for all our sold projects in different cities would decrease considerably on a year-on-year
Notes to the forecast basis. The forecast above is just a preliminary estimate we provide according to the current sales of
our real estate projects. Investors are kindly reminded to note that our actual earnings for
January-September 2016 shall be subject to the data to be disclosed in our report on the third quarter
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
of 2016.
VII Explanation of the Board of Directors and the Board of Supervisors on the
“non-standard” auditor’s report issued by the CPAs firm for the Reporting Period
□Applicable √ Not applicable
VIII Explanation of the Board of Directors on the issues mentioned in the “non-standard”
auditor’s report issued by the CPAs firm for last year
□Applicable √ Not applicable
IX Profit distribution in the Reporting Period
Profit distribution plan implemented in the Reporting Period, especially execution and adjustment of any cash dividend plan and any
plan for converting capital reserve into share capital
√ Applicable □ Not applicable
On 22 April 2016, the Plan for Profit Distribution 2015 was considered and approved at the 2015 Annual General Meeting. The
implementation plan was disclosed on 16 May 2016. According to the said plan, with 23 May 2016 as the book closure day, we
entrusted the Shenzhen branch of China Securities Depository and Clearing Co., Ltd. to transfer the cash dividends for our
A-shareholders to their capital accounts through their custodian securities companies (or other custodian entities) on 24 May 2016,
and to transfer the cash dividends for our B-shareholders to their capital accounts through their custodian securities companies or
custodian banks on 26 May 2016.
For the detailed implementation plan, please refer to the Announcement No. 2016-14 on Implementation of the Plan for Profit
Distribution 2015 disclosed on Securities Times, Ta Kung Pao and http//www.cninfo.com.cn dated 16 May 2016.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of
Yes
Association and the resolution of the general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors fulfilled their responsibilities and
Yes
played their due role.
Minority shareholders have the chance to fully express
their opinion and desire and their legal rights and Yes
interests were fully protected.
In adjustment or alteration of the cash dividend policy,
the conditions and procedure were in compliance with N/A
regulations and transparent.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
X Preliminary plan for profit distribution and converting capital reserve into share capital for
the Reporting Period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital for the first half of
the year.
XI Visits paid to the Company for purposes of research, communication, interview, etc.
√ Applicable □ Not applicable
Main discussion and
Date of visit Place of meeting Way of visit Type of visitor Visitor materials provided by the
Company
Office of the Implementation dates for
2016-04-15 By phone Individual Investor
Company profit distribution
Sales status of our
Office of the
2016-05-25 By phone Individual Investor SZPRD-Qianhai Gangwan
Company
Garden project
When the SZPRD-Golden
Office of the
2016-06-13 By phone Individual Investor Collar’s Holiday project
Company
would be open for sale, etc.
16
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section V Significant Events
I. Corporate governance
There is not discrepancy between the corporate governance and Company Law, relevant regulations of CSRC.
II. Lawsuits or arbitrations
Significant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Other lawsuits or arbitrations
□ Applicable √ Not applicable
III. Media’s queries
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV. Bankruptcy and reorganization
□ Applicable √ Not applicable
Bankruptcy and reorganization did not occur to the Company in the Reporting Period.
V. Asset transactions
1. Purchase of assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Business combination
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
VI. Implementation of equity incentive and its influence
□ Applicable √ Not applicable
The Company did not make or carry out any equity incentive plan during the Reporting Period.
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Significant related-party transactions arising from joint investment in external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and liabilities with related parties
√ Applicable □ Not applicable
Was there any credit or liability with any related party for non-operating purpose?
√ Yes □ No
The credits and liabilities with related parties’ receivable:
Newly
Amount
increase Interest in
Non-operati Opening received in Closing
amount in Reporting
Related ng capital balance Reporting balance
Relationship Reason Reporting Rate Period
party occupation (RMB’0,00 Period (RMB’0,00
Period (RMB’0,00
or not? 0) (RMB’0,000 0)
(RMB’0,000 0)
)
)
Anhui The
Nanpeng Company Working
No 805 831
Papermakin held a 30% funds
g Co., Ltd stake in it.
Shenzhen The
Working
Wufang Company No 175 175
funds
Pottery & held a 26%
18
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Porcelain stake in it.
Industrial
Co., Ltd
Under the
same control
Shenzhen
of the parent Intra-Grou
Guest House No 91 91
company of p funds
Co., Ltd.
the
Company
Influence of the credits
and liabilities with related
All under the risk control of the Company and will not affect the Company’s operating results and
parties on the Company’s
financial situation
operating results and
financial situation
The credits and liabilities with related parties’ payable:
Newly
Amount
increase Interest in
Opening returned in Closing
amount in Reporting
Related party Relationship Reason balance Reporting Rate balance
Reporting Period
(RMB’0,000) Period (RMB’0,000)
Period (RMB’0,000)
(RMB’0,000)
(RMB’0,000)
SZPRD Jifa Joint venture
Intra-Group
Warehouse of the 2,630 2,630
funds
Co., Ltd Company
Shenzhen
Tian’an
International Joint venture
Intra-Group
Building of the 521 521
funds
Property Company
Management
Co., Ltd
Influence of the credits and
liabilities with related parties
All under the risk control of the Company and will not affect the Company’s operating results and
on the Company’s operating
financial situation
results and financial
situation
5. Other significant related-party transactions
□ Applicable √ Not applicable
No other significant related-party transactions occurred to the Company during the Reporting Period.
19
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties
during the Reporting Period.
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Not applicable
There was no any trusteeship of the Company in the Reporting Period.
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the Reporting Period.
(3) Lease
□ Applicable √ Not applicable
There was no any lease of the Company in the Reporting Period.
2. Guarantees provided by the Company
□ Applicable √ Not applicable
There was no any guarantee provided by the Company in the Reporting Period.
3. Other significant contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other significant transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
20
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
X. Commitments made by the Company or any shareholder holding over 5% of the
Company’s shares in the Reporting Period or such commitments carried down into the
Reporting Period
□ Applicable √ Not applicable
No such commitments in the Reporting Period.
XI. Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited?
□ Yes √ No
The semi-annual financial report had not been audited.
XII. Punishments and rectifications
□ Applicable √ Not applicable
No punishments or rectifications in the Reporting Period.
XIII. Delisting risk due to violation of any law or regulation
□ Applicable √ Not applicable
No such risk in the Reporting Period.
XIV. Other significant events
□ Applicable √ Not applicable
No other significant event in the Reporting Period that needs to be explained.
XV. Related situation of the corporate bonds
Whether there was any public issuance of the corporate bonds which listed on the securities exchange that had not due on the
approved presentation date of the half-annual report or failed to pay in full amount.
No
21
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section VI Share Changes and Shareholders’ Profile
I. Change in shares
Reasons for changes in shares
□ Applicable √ Not applicable
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
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 √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
Change of the total shares, shareholder structure, asset structure and liability structure
□ Applicable √ Not applicable
II. Total number of shareholders and their shareholdings
Unit: Share
Total number of preferred share
Total number of common holders who had resumed their
shareholders at the end of the 44,723 voting right at the end of the 0
Reporting Period Reporting Period (if any) (see
note 8)
Shareholdings of common shareholders holding more than 5% shares or top 10 common shareholders
Number Pledged or frozen shares
of Increase/de Number
Shareholdin common crease of of Number of
Name of Nature of g shares shares restricted non-restrict
Status of
shareholder shareholder percentage held at the during the common ed common Number of shares
shares
(%) end of the Reporting shares shares held
Reporting Period held
Period
SHENZHEN
CONSTRUCTI
State-owned 323,796,3 293,997,3
ON 54.33% 29,798,954
corporation 24 70
INVESTMENT
HOLDINGS
22
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
CORPORATIO
N
SHENZHEN
INVESTMENT
MANAGEME State-owned 56,582,57 56,582,57
9.49%
NT corporation 3 3
CORPORATIO
N
Domestic
ZHOU QUN 0.44% 2,638,150
individual
Domestic
DU XINYE 0.43% 2,525,800
individual
Domestic
DU YUNFENG 0.40% 2,283,800
individual
SHENZHEN
DUTY-FREE Domestic
COMMODITY non-state-owned 0.29% 1,730,300 1,730,300
ENTERPRISES corporation
CO., LTD.
MAI FURONG Foreign individual 0.27% 1,514,600
SHENZHEN
Domestic
SONGKAI
non-state-owned 0.22% 1,315,500
EQUIPMENT
corporation
CO., LTD.
YANG Domestic
0.21% 1,270,620
YAOCHU individual
Domestic
CHEN LIYING 0.18% 1,076,051
individual
Explanation on associated The first and second biggest shareholders of the Company are under Shenzhen Investment
relationship or/and persons acting in Holding Corporation, the actual controlling shareholder of the Company. Other than that, it is
concert among the above-mentioned unknown whether the remaining 8 shareholders are related parties or act-in-concert parties or
shareholders: not.
Shareholdings of the top ten common shareholders holding non-restricted shares
Number of non-restricted common shares held at the Type of shares
Name of shareholder
period-end Type Number
SHENZHEN CONSTRUCTION
RMB ordinary
INVESTMENT HOLDINGS 29,798,954 29,798,954
share
CORPORATION
RMB ordinary
ZHOU QUN 2,638,150 2,638,150
share
23
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
RMB ordinary
DU XINYE 2,525,800 2,525,800
share
RMB ordinary
DU YUNFENG 2,283,800 2,283,800
share
Domestically
MAI FURONG 1,514,600 listed foreign 1,514,600
share
SHENZHEN SONGKAI RMB ordinary
1,315,500 1,315,500
EQUIPMENT CO., LTD. share
Domestically
YANG YAOCHU 1,270,620 listed foreign 1,270,620
share
Domestically
CHEN LIYING 1,076,051 listed foreign 1,076,051
share
Domestically
CAO YIFAN 830,000 listed foreign 830,000
share
RMB ordinary
ZHANG SHAOMING 737,700 737,700
share
Explanation on associated
relationship or/and persons acting in
concert among the top ten The first and second biggest shareholders of the Company are under Shenzhen Investment
non-restricted common shareholders Holding Corporation, the actual controlling shareholder of the Company. Other than that, it is
and between the top ten unknown whether the remaining 8 shareholders are related parties or act-in-concert parties or
non-restricted common shareholders not.
and the top ten common
shareholders
Particular about shareholder
participate in the securities lending
Zhou Qun, Du Xinye and Du Yunfeng hold the shares in their credit accounts.
and borrowing business (if any)
(note 4)
Did any of the top 10 common shareholders 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.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
24
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
The controlling shareholder of the Company did not change in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
The actual controller of the Company did not change in the Reporting Period.
IV. Any shareholding increase plan proposed or implemented by any shareholder or its
act-in-concert party during the Reporting Period
□ Applicable √ Not applicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any shareholding increase
plan during the Reporting Period.
25
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
26
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section VIII Directors, Supervisors & Senior Management Staff
I. Change of shareholdings of Directors, Supervisors and Senior Management Staff
□ Applicable √ Not applicable
There was no change in the shareholdings of Directors, Supervisors and Senior Management Staff in the Reporting Period. For
details, please refer to the 2015 Annual Report.
II. Change of Directors, Supervisors and Senior Management Staff
□ Applicable √ Not applicable
There was no change of the Directors, Supervisors and Senior Management Staff. For details, please refer to the 2015 Annual Report.
27
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section IX Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
30 June 2016
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 2,128,458,135.68 945,739,975.77
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 40,962,133.32 38,772,146.41
Accounts paid in advance 193,415,543.75 28,415,733.43
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 13,724,081.63 11,619,503.47
Financial assets purchased under
28
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
agreements to resell
Inventories 2,602,147,091.53 2,466,342,278.85
Assets held for sale
Non-current assets due within 1 year
Other current assets 174,382,120.00 174,382,120.00
Total current assets 5,153,089,105.91 3,665,271,757.93
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 18,068,421.28 14,500,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 35,684,753.73 34,526,177.41
Investing real estate 229,265,743.99 237,260,788.82
Fixed assets 78,626,061.41 85,929,516.37
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 89,063,832.47 92,640,083.99
R&D expense
Goodwill
Long-term deferred expenses 1,760,556.59 2,024,722.07
Deferred income tax assets 297,451,802.80 240,335,370.51
Other non-current assets 7,275,069.00 7,275,069.00
Total of non-current assets 757,196,241.27 714,491,728.17
Total assets 5,910,285,347.18 4,379,763,486.10
Current liabilities:
Short-term borrowings 8,000,000.00
Borrowings from the Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Financial liabilities measured at fair
29
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
value of which changes are recorded in
current profits and losses
Derivative financial liabilities
Notes payable
Accounts payable 183,713,716.76 191,524,938.54
Accounts received in advance 2,606,286,303.68 652,369,778.20
Financial assets sold and repurchased
Handling charges and commissions
payable
Payroll payable 50,688,216.71 63,791,816.49
Tax payable 753,528,090.51 833,797,372.43
Interest payable 479,413.09
Dividend payable
Other accounts payable 131,817,842.77 128,243,079.68
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
year
Other current liabilities
Total current liabilities 3,726,034,170.43 1,999,449,750.43
Non-current liabilities:
Long-term borrowings 144,840,006.83
Bonds payable
Of which: preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities 834,999.50 834,999.50
Deferred income 17,726,018.23 19,072,625.05
30
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Deferred income tax liabilities 19,014.31 23,985.24
Other non-current liabilities 116,828,506.27 114,773,265.38
Total non-current liabilities 135,408,538.31 279,544,882.00
Total liabilities 3,861,442,708.74 2,278,994,632.43
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 119,951,533.93 119,951,533.93
Less: Treasury stock
Other comprehensive income -3,045,786.70 -4,046,603.46
Specific reserves
Surplus reserves 154,664,631.59 154,664,631.59
Provisions for general risks
Retained profits 1,180,431,080.56 1,233,358,112.55
Total equity attributable to owners of
2,047,980,551.38 2,099,906,766.61
the Company
Minority interests 862,087.06 862,087.06
Total owners’ equity 2,048,842,638.44 2,100,768,853.67
Total liabilities and owners’ equity 5,910,285,347.18 4,379,763,486.10
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
Item Closing balance Opening balance
Current assets:
Monetary funds 916,436,536.69 296,196,656.86
Financial assets measured at fair
value of which changes are recorded in
current profits and losses
Derivative financial assets
Notes receivable
31
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Accounts receivable 3,604,627.14 979,569.49
Accounts paid in advance 109,881,588.42
Interest receivable
Dividend receivable
Other accounts receivable 1,643,273,514.29 1,766,392,354.21
Inventories 616,590,937.34 530,588,344.24
Assets held for sale
Non-current assets due within 1 year
Other current assets 174,382,120.00 174,382,120.00
Total current assets 3,464,169,323.88 2,768,539,044.80
Non-current assets:
Available-for-sale financial assets 3,798,921.28 230,500.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 282,242,014.71 281,083,438.39
Investing real estate 151,881,941.45 157,390,561.34
Fixed assets 9,233,472.73 9,828,388.19
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 1,210,833.27 1,297,321.41
Deferred income tax assets 87,653,476.09 29,561,006.63
Other non-current assets
Total of non-current assets 536,020,659.53 479,391,215.96
Total assets 4,000,189,983.41 3,247,930,260.76
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair
value of which changes are recorded in
current profits and losses
32
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Derivative financial liabilities
Notes payable
Accounts payable 27,046,212.13 25,436,021.13
Accounts received in advance 1,650,908,603.85 311,717,646.30
Payroll payable 9,309,755.32 11,467,533.06
Tax payable 57,873,161.20 62,939,128.44
Interest payable 858,385.21
Dividend payable
Other accounts payable 1,029,986,543.89 1,163,240,004.88
Liabilities held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 2,775,124,276.39 1,575,658,719.02
Non-current liabilities:
Long-term borrowings 404,840,006.83
Bonds payable
Of which: preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities 834,999.50 834,999.50
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 834,999.50 405,675,006.33
Total liabilities 2,775,959,275.89 1,981,333,725.35
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 94,057,859.68 94,057,859.68
33
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 154,007,821.15 154,007,821.15
Retained profits 380,185,934.69 422,551,762.58
Total owners’ equity 1,224,230,707.52 1,266,596,535.41
Total liabilities and owners’ equity 4,000,189,983.41 3,247,930,260.76
3. Consolidated income statement
Unit: RMB
Item Reporting Period Same period of last year
I. Operating revenues 372,057,479.96 338,761,310.39
Including: Sales income 372,057,479.96 338,761,310.39
Interest income
Premium income
Handling charge and commission
income
II. Operating costs 376,637,158.32 302,467,177.17
Including: Cost of sales 295,007,821.86 199,054,160.59
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 23,744,962.40 46,781,146.09
Selling and distribution expenses 16,539,759.59 12,658,266.69
Administrative expenses 44,572,155.45 48,330,181.70
Financial expenses -7,038,438.94 -4,714,375.50
Asset impairment loss 3,810,897.96 357,797.60
Add: Gain/(loss) from change in fair
value (“-” means loss)
34
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Gain/(loss) from investment (“-”
1,158,576.32 6,767,542.26
means loss)
Including: share of profits in
1,158,576.32 666,409.17
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) -3,421,102.04 43,061,675.48
Add: non-operating income 1,083,100.40 561,079.38
Including: Gains on disposal of
non-current assets
Less: non-operating expense 298,722.50 1,097,878.15
Including: Losses on disposal of
6,300.00 426,921.60
non-current assets
IV. Total profit (“-” means loss) -2,636,724.14 42,524,876.71
Less: Income tax expense 2,611,980.49 11,362,044.97
V. Net profit (“-” means loss) -5,248,704.63 31,162,831.74
Net profit attributable to owners of
-5,248,704.63 31,162,831.74
the Company
Minority shareholders’ income
VI. After-tax net amount of other
1,000,816.76 -2,950,901.16
comprehensive incomes
After-tax net amount of other
comprehensive incomes attributable to 1,000,816.76 -2,950,901.16
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 1,000,816.76 -2,950,901.16
losses
1. Enjoyable shares in other
comprehensive incomes in investees that
35
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
will be reclassified into gains and losses
under the equity method
2. Gains and losses on fair
value changes of available-for-sale -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
1,000,816.76 -17,725.71
statement translation difference
6. Other
After-tax net amount of other
comprehensive incomes attributable to
minority shareholders
VII. Total comprehensive incomes -4,247,887.87 28,211,930.58
Attributable to owners of the
-4,247,887.87 28,211,930.58
Company
Attributable to minority
shareholders
VIII. Earnings per share
(I) Basic earnings per share -0.0088 0.0523
(II) Diluted earnings per share -0.0088 0.0523
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
Item Reporting Period Same period of last year
I. Total sales 32,157,014.88 29,852,953.97
Less: cost of sales 7,594,195.01 8,215,152.66
Business taxes and surcharges 2,899,233.08 4,150,101.48
36
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Distribution expenses 6,136,543.02
Administrative expenses 14,880,235.70 19,815,940.03
Financial costs -4,131,129.54 -2,306,571.44
Impairment loss -1,191,328.44 -616,823.91
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
1,158,576.32 6,600,847.72
means loss)
Including: income form investment
1,158,576.32 666,409.17
on associates and joint ventures
II. Business profit (“-” means loss) 7,127,842.37 7,196,002.87
Add: non-operating income 437,769.89 15,814.45
Including: Gains on disposal of
non-current assets
Less: non-operating expense 19,444.98 466,563.12
Including: Losses on disposal of
82,007.63
non-current assets
III. Total profit (“-” means loss) 7,546,167.28 6,745,254.20
Less: Income tax expense 2,233,667.81 1,373,908.21
IV. Net profit (“-” means loss) 5,312,499.47 5,371,345.99
V. After-tax net amount of other
-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
losses
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
37
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
losses under the equity method
2. Gains and losses on fair value
changes of available-for-sale financial -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 5,312,499.47 2,438,170.54
VII. Earnings per share
(I) Basic earnings per share 0.0089 0.0090
(II) Diluted earnings per share 0.0089 0.0090
5. Consolidated cash flow statement
Unit: RMB
Item Reporting Period Same period of last year
I. Cash flows from operating activities:
Cash received from sale of
2,343,478,998.38 460,272,796.97
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
38
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
21,560,365.45 8,644,723.51
operating activities
Subtotal of cash inflows from operating
2,365,039,363.83 468,917,520.48
activities
Cash paid for goods and services 310,221,091.98 279,997,430.62
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 171,546,331.67 160,964,525.60
Various taxes paid 336,887,702.10 205,830,929.07
Other cash payment relating to
37,127,743.29 44,033,816.12
operating activities
Subtotal of cash outflows from
855,782,869.04 690,826,701.41
operating activities
Net cash flows from operating activities 1,509,256,494.79 -221,909,180.93
II. Cash flows from investing activities:
Cash received from withdrawal of
6,511,297.75
investments
Cash received from return on
580,374.89
investments
Net cash received from disposal of
132,000.00 605,705.00
fixed assets, intangible assets and other
39
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
132,000.00 7,697,377.64
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 1,377,993.48 15,367,108.10
assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
1,377,993.48 15,367,108.10
investing activities
Net cash flows from investing activities -1,245,993.48 -7,669,730.46
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 15,441,282.23 126,303,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
15,441,282.23 126,303,000.00
activities
Repayment of borrowings 289,524,641.06 85,000,000.00
Cash paid for interest expenses and
52,096,691.04 137,350,160.47
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
40
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Other cash payments relating to
96,000.00 104,500.00
financing activities
Sub-total of cash outflows from
341,717,332.10 222,454,660.47
financing activities
Net cash flows from financing activities -326,276,049.87 -96,151,660.47
IV. Effect of foreign exchange rate
983,708.47 -235,382.98
changes on cash and cash equivalents
V. Net increase in cash and cash
1,182,718,159.91 -325,965,954.84
equivalents
Add: Opening balance of cash and
933,337,815.77 808,963,376.68
cash equivalents
VI. Closing balance of cash and cash
2,116,055,975.68 482,997,421.84
equivalents
6. Cash flow statement of the Company
Unit: RMB
Item Reporting Period Same period of last year
I. Cash flows from operating activities:
Cash received from sale of
1,367,709,105.57 28,663,455.97
commodities and rendering of service
Tax refunds received
Other cash received relating to
396,680,197.27 224,852,837.51
operating activities
Subtotal of cash inflows from operating
1,764,389,302.84 253,516,293.48
activities
Cash paid for goods and services 76,068,523.48 54,228,447.00
Cash paid to and for employees 11,613,157.13 10,672,508.89
Various taxes paid 180,302,568.05 49,447,323.75
Other cash payment relating to
414,343,352.68 269,534,102.88
operating activities
Subtotal of cash outflows from
682,327,601.34 383,882,382.52
operating activities
Net cash flows from operating activities 1,082,061,701.50 -130,366,089.04
II. Cash flows from investing activities:
Cash received from withdrawal of
6,511,297.75
investments
Cash received from return on 580,374.89
41
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
investments
Net cash received from disposal of
fixed assets, intangible assets and other 260.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
7,091,932.64
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 15,072.00 31,074.00
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
15,072.00 31,074.00
investing activities
Net cash flows from investing activities -15,072.00 7,060,858.64
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 15,441,282.23 58,303,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
15,441,282.23 58,303,000.00
activities
Repayment of borrowings 422,491,189.06
Cash paid for interest expenses and
54,721,045.91 139,703,417.96
distribution of dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from 477,212,234.97 139,703,417.96
42
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
financing activities
Net cash flows from financing activities -461,770,952.74 -81,400,417.96
IV. Effect of foreign exchange rate
-35,796.93 -217,671.81
changes on cash and cash equivalents
V. Net increase in cash and cash
620,239,879.83 -204,923,320.17
equivalents
Add: Opening balance of cash and
296,196,656.86 338,036,109.52
cash equivalents
VI. Closing balance of cash and cash
916,436,536.69 133,112,789.35
equivalents
7. Consolidated Statement of Changes in Owners’ Equity
Reporting Period
Unit: RMB
Reporting Period
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
ence ual Other stock reserve
incomes
shares bonds
I. Balance at the 595,97 1,233,3 2,100,7
119,951 -4,046,6 154,664 862,087
end of the 9,092. 58,112. 68,853.
,533.93 03.46 ,631.59 .06
previous year 00 55 67
Add: change of
accounting policy
Correction of
errors in previous
periods
Business
mergers under the
same control
Other
II. Balance at the 595,97 1,233,3 2,100,7
119,951 -4,046,6 154,664 862,087
beginning of the 9,092. 58,112. 68,853.
,533.93 03.46 ,631.59 .06
year 00 55 67
III. Increase/ 1,000,8 -52,927, -51,926,
decrease in the 16.76 031.99 215.23
43
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
period (“-” means
decrease)
(I) Total
1,000,8 -5,248,7 -4,247,8
comprehensive
16.76 04.63 87.87
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 -47,678, -47,678,
distribution 327.36 327.36
1.
Appropriations to
surplus reserves
2.
Appropriations to
general risk
provisions
3.
Appropriations to -47,678, -47,678,
owners (or 327.36 327.36
shareholders)
4. Other
(IV) Internal
carry-forward of
owners’ equity
1. New
increase of capital
44
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(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 1,180,4 2,048,8
IV. Closing 119,951 -3,045,7 154,664 862,087
9,092. 31,080. 42,638.
balance ,533.93 86.70 ,631.59 .06
00 56 44
Same period of last year
Unit: RMB
Same period of last year
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
ence ual Other
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
45
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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/
-102,90
decrease in the -2,950,9 -99,952,
3,469.6
period (“-” means 01.16 568.50
6
decrease)
(I) Total
-2,950,9 31,162, 28,211,
comprehensive
01.16 831.74 930.58
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
-131,11 -131,11
(III) Profit
5,400.2 5,400.2
distribution
4 4
1.
Appropriations to
surplus reserves
2.
Appropriations to
general risk
provisions
46
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
3.
-131,11 -131,11
Appropriations to
5,400.2 5,400.2
owners (or
4 4
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
(VI) Other
595,97 1,125,7 1,972,2
IV. Closing 119,951 -6,957,0 136,591 862,087
9,092. 74,376. 01,279.
balance ,533.93 42.69 ,232.84 .06
00 33 47
8. Statement of changes in owners’ equity of the Company
Reporting Period
Unit: RMB
Reporting Period
Item Share Other equity instruments Capital Less: Other Specific Surplus Retaine Total
capital Prefere Perpetu Other reserve treasury comprehe reserve reserve d profit owners’
47
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
nce al bonds stock nsive equity
shares incomes
I. Balance at the
595,979, 94,057,85 154,007,8 422,551 1,266,596
end of the previous
092.00 9.68 21.15 ,762.58 ,535.41
year
Add: change of
accounting policy
Correction of
errors in previous
periods
Other
II. Balance at the
595,979, 94,057,85 154,007,8 422,551 1,266,596
beginning of the
092.00 9.68 21.15 ,762.58 ,535.41
year
III. Increase/
decrease in the -42,365, -42,365,8
period (“-” means 827.89 27.89
decrease)
(I) Total
5,312,4 5,312,499
comprehensive
99.47 .47
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 -47,678, -47,678,3
distribution 327.36 27.36
1.
48
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Appropriations to
surplus reserves
2.
Appropriations to -47,678, -47,678,3
owners (or 327.36 27.36
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, 94,057,85 154,007,8 380,185 1,224,230
balance 092.00 9.68 21.15 ,934.69 ,707.52
Same period of last year
Unit: RMB
Same period of last year
Other equity instruments Other
Less: Total
Item Share Capital comprehe Specific Surplus Retaine
Perpetu treasury owners’
capital Prefere Other reserve nsive reserve reserve d profit
nce al bonds stock equity
incomes
49
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
shares
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/
-125,74
decrease in the -2,933,17 -128,677,
4,054.2
period (“-” means 5.45 229.70
5
decrease)
(I) Total
-2,933,17 5,371,3 2,438,170
comprehensive
5.45 45.99 .54
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
-131,11
(III) Profit -131,115,
5,400.2
distribution 400.24
4
1.
50
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Appropriations to
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, 94,057,85 135,934,4 265,262 1,091,233
balance 092.00 9.68 22.40 ,519.82 ,893.90
III. Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “company ” or “the
Company”) is a joint stock limited company incorporated upon the reorganization of Shenzhen Properties &
Resources Development Corp. with the approval from the Document SFBF [1991] No. 831 from the People’s
Government of Shenzhen Municipality, Guangdong Province. The number of our business license is
440301103570124.
51
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Up to 30 June 2016, the registered capital of the Company was RMB595,979,092 and the paid-in capital was
RMB595,979,092.
The registered capital of the Company increased to RMB541,799,175 after a bonus issue of one share for every
existing 10 shares based on the total shares of the Company in 1996 and increased to RMB595,979,092 after
another bonus issue of one share for every existing 10 shares based on the total shares of 541,799,175 in 2009.
1. 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.
2. 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 maintenance, garden afforest and cleaning
service; houses and building leasing; passenger traffics and leasing of motor vehicles; supervise and management
of the engineering; retails of the Chinese food, Western-style 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 October
13, 2004. Its main business scope is to execute the investment, operation and management on the state-owned
equities of the wholly owned, controlling as well as the shares holding enterprises through the methods such as the
reorganization and integration, capital operation and capital disposal; to engage in the real estate development and
operating business within the scope which the land use right acquired legally; to execute the policy-based and
strategic investment according to the requirements from municipal State-owned Assets Supervision and
Administration Commission; to provide guarantee for the municipal state-owned enterprises; other business
develop under the authorization 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.
4. Authorization and date of issuing the financial statements
The financial statements were approved and authorized for issue by the 4th session of the 8th Board of Directors of
the Company on 26 August 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 IX. Financial Report.
For the changes of consolidation financial statement scope of the Reporting Period, please refer to Notes VIII. of
Section IX. Financial Report.
52
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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:
Not applicable
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 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 regarded Renminbi as the recording currency. The Hong Kong
subsidiaries of the Company confirmed the Hong Kong Dollar as its recording currency according the currency
among its major economic environment of the operation. The Group adopted Renminbi when compiling the
53
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
financial statements.
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:
① When business combination is achieved through a single exchange transaction, the cost of a business
combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree;
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:
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
54
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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”.
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 financial
statements up to 30 June 2015 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
55
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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: ① these transactions are formatted under the situation of
contemporary or considering of the mutual influences; ② only the entirety of these transactions could achieve a
complete commercial result; ③the happen of one transaction depends on at least the happen of other one
transaction; ④to see independently of one transaction is not economic while to considered with other transactions
are economic.
Execute the accounting treatment of the several financial statements of disposing the equity step by step till lose
the control right according to the accounting policy of disposing the long-term equity investment.
7. Classification of joint arrangements and accounting treatment of joint operations
(1) Category of joint 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 according to the portion; recognizes the jointly-held assets and jointly-borne liabilities
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 according 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 constituting 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 constituting 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 (usually 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
in terms of historical cost in a foreign currency are translated using the current exchange rates ruling at the
transaction dates. Non-monetary items denominated in foreign currencies that are stated at fair value are translated
using the current exchange rates ruling at the dates the fair value was determined, the difference between the
amount of functional currency after translation and the original amount of functional currency is treated as part of
change in fair value (including change in exchange rate) and recognized in income statement. During the
capitalization period, exchange differences arising from foreign currency borrowings are capitalized as part of the
cost of the capitalized assets.
(2) Translations of financial statements in foreign currencies
The 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 significantly reduce the difference of relevant gains and
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 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.
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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 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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).
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 individual test, and the
Company confirmed the ratio of the withdrawal of the bad debt
provision based on the actual loss rate of the accounts receivable
Aging of accounts
portfolios possessed similar credit risk characteristics that
divided according to the aging phase combined with the current
situation, of which the actual loss rate was the same to or similar
with that of the previous years)
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In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
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 √ Not applicable
In the groups, adopting other methods to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Name of portfolios
receivable receivable
Portfolios 1 0.00% 0.00%
(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;
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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. 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.
② The 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 according 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(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 classified 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 standardized by No. 22 of
ASBE-Recognition and Measurement of Financial Instruments, investment property and biological assets
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 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 investment including the equity investment on the subsidiaries, joint ventures and associated
enterprises.
(1) Initial measurement
The Group initially measures long-term equity investments under two conditions:
①For long-term equity investment arising from business combination, the initial cost is recognized under the
following principles.
A. If the business combination is under the common control and the acquirer obtains long-term equity investment
in the consideration of cash, non-monetary asset exchange or bearing acquiree’s liabilities, the initial cost is the
carrying amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between
cash paid, the carrying amount of the non-monetary asset exchanged and the acquiree’s liabilities beard and the
initial cost of the long-term equity investment should be adjusted to capital surplus. If the capital surplus is not
sufficient for adjustment, retained earning is adjusted respectively. The business combination costs that are
directly attributable to the combination, such as audit fees, valuation fees, legal service fees and so on are
recognized in profit or loss during the current period when they occurred.
If the acquirer issuing equity securities as consideration, the initial cost is the carrying amount of the proportion of
the acquiree’s owner’s equity at the acquisition date. Amount of share capital equal to the par value of the shares
issued. The difference between initial cost of the long-term equity investment and the par value of shares issued is
adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
respectively. The costs of issuing equity securities occurred in business combination such as charges of security
issuing and commissions are deducted from the premium of equity securities. If the premium is not sufficient for
deducting, retained earning is adjusted respectively.
B. If the business combination is not under the common control, the acquirer recognizes the initial cost of
combination under the following principles.
a) When business combination is achieved through a single exchange transaction, the cost of a business
combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree;
b) For a business combination that involves more than one exchange transaction, the initial investment cost is the
summation of the book value of the equity interests of the acquiree held by the Company before the acquisition
date and the new investment cost on the acquisition date;
c) The fees incurred for audit, legal consultation, valuation services and other management expenses are to be
recognized in profit or loss at the time such costs incurred. The transaction costs incurred by the acquirer for
issuing equity securities or debt securities as the consideration of the acquisition are to be recognized as the initial
amount of such equity security or debt security.
d) Where a business combination contract or agreement provides for a future event which may adjust the cost of
combination, the Company shall include the amount of the adjustment in the cost of the combination at the
acquisition date if the future event leading to the adjustment is probable and the amount of the adjustment can be
measured reliably.
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. Transaction costs arising from issuing or obtaining equity instruments that can be directly
attributed to equity transaction are deducted from equity.
C. 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”.
D. 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
The cost method is used among the individual financial statement when the long-term equity investment 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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.
As for the equity investment on the associated enterpsies of the Group, of which part of them were through the
venture capital Institutions, mutual fund, trust companies or indirectly held through the similar main bodies
including the investment with insurance funds, and whether the above entities had significant impact on the part of
the investemnt, the Group would chose to measure part of the investment held indirectly by fair value with the
changes included in the gains and losses as well as adopted equity method to calculate the rest part according to
No. 22 of the ASBE-Recogniztion and Measurement of the Financial Instruments.
When calculating and recognizing the net gains and losses enjoyed or be burdened by the investees, the part
attributed to the Group which measured according to the enjoyed proportion from the unrealized internal
transactions 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 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 equity 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 corresponding
proportion based on the same basic of the relevant assets or liabilities be directly disposed by the investees.
④ As for the decrease of the shareholding proportion of the Group owning to the capital increase on its
subsidiaries by other investment parties that led the Group lost the control right but still could execute the joint
control or cause significant influence, should calculate the long-term equity investment from cost method to
equity method among the individual financial statements. Firtsly, as for the difference between the shares of the
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
increased net assets owning to the capital increase as well as the shares expansion of the original subsidiaires
which should be enjoyed by the investment part that confirmed according to the new shareholding proportion and
the original book value of the long-term equity investment accorded with the delined part of the shareholding
proportion that should be carried forward, should be included in the current gains and losses; secondly, execute
the adjustement as immediately adopting the equity method for measurement as acquiring the investment
according to the new shareholding proportion.
(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:
① Land use right which has already been rented;
② Land use right which is held for transfer out after appreciation;
③ Property that has already been rented.
(2) Investment property shall be recognized as an asset when the following conditions are satisfied:
① It 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.
① The cost of a purchased investment property comprises its purchase price, related tax expenses and any
directly attributable expenditure.
② The cost of a self-constructed investment property comprises all necessary construction expenditures incurred
before the property is ready for its intended use.
③ The 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
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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
Straight-line depreciatio
Housing and building 20-25 years 5-10% 3.8-4.5%
n
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
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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 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
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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
Not applicable
20. Oil-gas assets
Not applicable
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:
① It is probable that the economic benefits associated with that asset will flow to the Company;
② The cost of that asset can be measured reliably.
(2) Measurement of intangible assets
① An intangible asset is measured initially at its cost.
② Subsequent measurement of intangible assets
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.
B. Impairment of the intangible assets should be executed according to the accounting policies of “Long-term
assets impairment” formulated by the Group.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Accounting polices of internal R & D expenses
Not applicable
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.
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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 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 benefits for the employees, and for those met with the defined
contribution plans, should be disposed according to the above accounting polices of the defined contribution plans;
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 liabilities 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:
① That obligation is a present obligation of the enterprise;
② It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
③ A 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:
① Where 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;
② Where the contingency involves several items; The best estimate should be determined by weighting all
possible outcomes by their associated probabilities of occurrence.
To determine the best estimate, it should be considered with factors such as: related contingency risks, uncertain
matters and time value of currency. If time value of currency has a significant impact, the best estimate should be
measured at its converted present value through the relevant future cash outflows.
Where some or all of the expenditures are expected to be reimbursed by a third party, the reimbursement should
be separately recognized as an asset only when it is virtually received. The amount of the reimbursement should
not exceed the carrying amount of the liability recognized.
At balance sheet date, the 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
Not applicable
27. Other financial instruments such as preferred shares and perpetual capital securities
Not applicable
28. Revenue
The revenue of the Group including the commodities sales revenue, labor revenues and revenues from assets use
right abalienation.
1. Commodities sales revenues
No revenue from selling goods may be recognized unless the following conditions are met simultaneously and
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
the significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise;
the enterprise retains neither continuous management right that usually keeps relation with the ownership nor
effective control over the sold goods; the revenue amount, the related cost occurred or will occur could be reliable
measured and when the relevant economic benefits probably flow into the enterprises, should confirm the
commodities sales revenues.
The commodities sales revenues of the Group mainly are the sales revenues from the commercial residential
buildings. Revenue from the sale of properties is recognized upon final acceptance of the construction of property
is completed and the property is transferred to buyer, or regard which as transferred to buyer according to the sales
contracts and receives and accepts all considerations of sale of property (down payment and mortgage received
from bank for property purchasing by installments).
2. Labor revenues
The labor revenues of the Group mainly are property management revenues, engineering supervision service
revenues and catering service revenues.
Property management revenues: the Group recognizes the property management revenues when the services had
provided as well as the charges of which could flow in the enterprises according to the aggrement with the
proprietors.
Other labor revenues: the Group recognizes the labor revenues when the services had provided as well as the
economic benefits related to which could flow in the enterprises and the relevant cost could be reliable measured.
3. Revenues from assets use right abalienation
The revenues from assets use right abalienation of the Group including property rental, taxi passenger revenues,
interests revenues and revenues from other use right and so on.
Property rental: the Group recognizes the property rental by straight line method according to the rental contrast
signed with the lessees or the promises from the agreement. When the leasers provide rent-free period, they
should execute the distribution of the total rental amount according to the straight line method or other reasonable
methods during the whole lease term without deducting the rent-free period and during the rent-free period, the
leasers should recognize the rental revenues.
Taxi passenger revenues: the Group recognizes the taxi passenger revenues according to the contract agreement
signed with the contractors or the contract amount agreed from the protocol agreement.
Interests revenues: the Group recognizes which accoridng to the calculation from the time when others using the
cash of the Company and the applicable rates with the royalty revenues be recognized accoridng to the calculation
of the chargeable time and the methods from the contracts or the protocol agreement.
Revenues from other use right: the Group recognizes the revenues from assets use right abalienation when the
revenues amount could be reliable measured and the related economic benefits probably flow in the enterprises.
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 related 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;
77
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
② The grants will be received from government.
(2) Calculation 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 Confirmed repayment of government grants according to the following circumstances respectively:
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 related 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) Calculation 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 Confirmed repayment of government grants according to the following circumstances respectively:
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.
78
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
30. Deferred income tax assets/deferred income tax liabilities
The Company executes the accounting treatments of the income tax by adopting the balance sheet 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 lease such as handling fees, legal fees, travel expenses, stamp tax shall be
79
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 conjecture 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
characterisitics of the relevant assest 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 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
80
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
quotation acquired from the active market of the same assets or liabilities that had not be adjusted; the second
input value is the input value could be directly or indirectly 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 contract, the quality margin paid for the construction
organizations should be detentioned and be included in the “accounts receivable” as well as to realize the payment
accoridng to the actual situation of the contract agreement after the guarantee period.
(5) Maintenance funds
The property management company of the Group received the public maintenance fund which be entrusted for
management by the proprietors and had be included in the “other non-current liabilities” that was specific used in
the maintenance and renewal of the residential common areas, shared devices as well as the communal facilities of
the property management area.
33. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable √ Not applicable
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Change of main accounting estimates
□ Applicable √ Not applicable
34. Other
Not applicable
VI. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
VAT Operating revenue 3%, 5%, 6%, 11%, 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
15%
Property Management Co., Ltd.
Chongqing Aobo Elevator Co., Ltd. 20%
Subsidiaries registered in Hong Kong 16.5%
Other taxpaying bodies among the consolidated scope 25%
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 Structure 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 Small Profit-making Enterprise Income Tax Preferential Policies
(CS [2015] No. 34) of the SAT, from 1 January 2015 to 31 December 2017, as for those small low-profit
82
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
enterprises whose amount of the taxable annual income lower than RMB0.2 million (including RMB0.2 million),
their revenues should be included in the taxable income according to 50% of the income, and pay the corporate
income tax according to 20% of the tax rate. And the subsidiary of the Group, Chongqing Aobo Elevator Co., Ltd.
applicable for the policy since 2015 and had be collected taxable income according to 50% as well as be collected
the corporate income tax according to 20% of the tax rate.
3. Other explanation
Not applicable
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB
Item Closing balance Opening balance
Cash on hand 299,819.32 208,170.99
Bank deposits 2,114,647,115.64 930,987,796.17
Other monetary funds 13,511,200.72 14,544,008.61
Total 2,128,458,135.68 945,739,975.77
Of which: the total amount deposited
51,648,185.82 50,515,270.67
overseas
Other notes
The total L/G cash deposit with use restriction at the period-end was of RMB12,402,160.00 (presented among
other monetary funds), which was the margin paid by the subsidiary of the Company Dongguan International
Trade Changsheng Real Estate Development Co., Ltd. for entrusting the commercial bank to issue the
Commercial Residential Building Quality Guarantee Letter. The subsidiary of the Company Dongguan
International Trade Changsheng Real Estate Development Co., Ltd. should submit the commercial residential
building quality guarantee letter after the occurrence of the liquidation situation such as the enterprise bankruptcy
and dissolution when managing the pre-sale permit application of the commercial residential building owning to it
belonged to the real estate development enterprise with provisional qualification. The letter was the irrevocable
commercial residential building quality guarantee letter, of which the guarantee period of RMB1,468,870.00 lasts
from 30 June 2015 to 31 December 2020 with the remained RMB10,933,290.00 from 1 July 2015 to 31 December
2020.
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Unit: RMB
Item Closing balance Opening balance
Other notes:
83
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
3. Derivative financial assets
□ Applicable √ Not applicable
4. Notes receivable
(1) Notes receivable listed by category
Unit: RMB
Item Closing balance Opening balance
(2) Notes receivable pledged by the Company at the period-end
Unit: RMB
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
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
Amount of the notes transferred to accounts receivable at the
Item
period-end
Other notes
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
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
84
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Accounts receivable
with significant
102,216, 102,216, 102,216 102,216,1
single amount with 69.26% 100.00% 0.00 70.30% 100.00% 0.00
173.89 173.89 ,173.89 73.89
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
43,484,4 2,522,35 40,962,13 41,288, 2,516,360 38,772,146.
provision according 29.46% 5.80% 28.40% 6.09%
86.78 3.46 3.32 506.76 .35 41
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 1,884,02 1,884,02 1,884,0 1,884,022
1.28% 100.00% 0.00 1.30% 100.00% 0.00
which bad debt 2.38 2.38 22.38 .38
provision separately
accrued
147,584, 106,622, 40,962,13 145,388 106,616,5 38,772,146.
Total 100.00% 72.24% 100.00% 73.33%
683.05 549.73 3.32 ,703.03 56.62 41
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end：
√ Applicable □ Not applicable
Unit: RMB
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 Notes XIV. 2 of
Development Company Section IX. Financial
Report
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
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 □ Not applicable
Unit: RMB
Aging Closing balance
85
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year (including 1 year) 39,673,776.25 1,190,213.29 3.00%
Subtotal within 1 year 39,673,776.25 1,190,213.29 3.00%
1 to 2 years 1,853,591.29 185,359.13 10.00%
2 to 3 years 1,051,523.97 315,457.19 30.00%
Over 3 years 128,355.13 64,177.57 50.00%
3 to 4 years 50,469.31 40,375.45 80.00%
4 to 5 years 726,770.83 726,770.83 100.00%
Over 5 years 43,484,486.78 2,522,353.45 5.80%
Notes of the basis of recognizing the group:
The basic of recognizing the group refer to Notes V. 11 of Section IX. Financial Report.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
Not applicable
(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 RMB5,993.11 the amount of the reversed or
collected part during the Reporting Period was of RMB0.00.
Of which the significant amount of the reversed or collected part during the Reporting Period was of:
Unit: RMB
Name of the units Reversed or collected amount Method
Total 0.00 --
(3) The actual write-off accounts receivable
Unit: RMB
Item Amount
Of which the significant actual write-off accounts receivable:
Unit: RMB
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:
86
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 93,811,328.05 63.56 93,811,328.05
Development Company
Huawei Technologies Co., Ltd. 5,473,521.31 3.71 164,205.64
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 1.92 2,836,561.00
Alibaba (China) Co., Ltd. 2,833,643.05 1.92 85,009.29
Shenzhen Lunan Industry Development 2,818,284.84 1.91 2,818,284.84
Co., Ltd.
Total 107,773,338.25 73.02 99,715,388.82
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Not applicable
Other notes:
Not applicable
6. Prepayment
(1) List by aging analysis:
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 181,654,620.49 93.92% 20,734,383.56 72.97%
1 to 2 years 4,188,912.57 2.17% 6,602,570.30 23.24%
2 to 3 years 6,694,900.30 3.46% 1,070,523.28 3.77%
Over 3 years 877,110.39 0.45% 8,256.29 0.03%
Total 193,415,543.75 -- 28,415,733.43 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
87
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
No such cases.
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name of the unit Closing balance Proportion of the total year end balance of the
accounts receivable (%)
Prepayment of taxes 180,730,158.63 93.44%
Prepayment of social security charges in building 7,502,167.95 3.88%
industry
SHANGHAI MITSUBISHI ELEVATOR CO. LTD 2,028,500.00 1.05%
Zhanjiang West Guangdong Construction 900,000.00 0.47%
Engineering Co., Ltd.
BYD Auto Sales Co., Ltd. 591,600.00 0.31%
Total 191,752,426.58 99.15%
Other notes:
Notes 1: the surpluses of the withholding tax of the Company were of unearned revenues of the real estate projects
not reached the recognition conditions and were the taxes such as the business tax, city building duty and
education Surcharged as well as the land value increment tax pre-paid according to the relevant regulations.
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.
7. Interest receivable
(1) Category of interest receivable
Unit: RMB
Item Closing balance Opening balance
(2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason impairment and its
judgment basis
Other notes:
Not applicable
88
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
8. Dividend receivable
(1) Dividend receivable
Unit: RMB
Item (or investees) Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
Unit: RMB
Whether occurred
Item (or investees) Closing balance Aging Reason impairment and its
judgment basis
Other notes:
Not applicable
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
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
87,414,5 87,414,5 90,718, 87,150,31 3,568,421.2
single amount with 71.63% 100.00% 0.00 75.46% 96.07%
09.92 09.92 739.20 7.92 8
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
24,930,1 11,206,0 13,724,08 19,789, 11,738,34 8,051,082.1
provision according 20.43% 44.95% 16.46% 59.32%
20.41 38.78 1.63 422.31 0.12 9
to credit risks
characteristics
Accounts receivable
with insignificant
9,699,53 9,699,53 9,711,2 9,711,262
single amount for 7.95% 100.00% 0.00 8.08% 100.00% 0.00
3.34 3.34 62.51 .51
which bad debt
provision separately
89
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
accrued
122,044, 108,320, 13,724,08 120,219 108,599,9 11,619,503.
Total 100.00% 88.75% 100.00% 90.33%
163.67 082.04 1.63 ,424.02 20.55 47
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√Applicable □ Not applicable
Unit: RMB
Other accounts Closing balance
receivable (classified by Other accounts
Bad debt provision Withdrawal proportion Reason
units) receivable
There was no
Gintian Industry (Group) compensation assets
53,031,578.72 53,031,578.72 100.00%
Co., Ltd according to the readjust
plan of the debtors
Anhui Nanpeng Unrecoverable for a long
8,311,904.00 8,311,904.00 100.00%
Papermaking Co., Ltd term
Shenzhen Shengfenglu,
INTERNATIONAL No executable finance
6,481,353.60 6,481,353.60 100.00%
TRADE CENTER Jewel and difficult to recover
& Gold 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 87,414,509.92 87,414,509.92 -- --
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year (including 1 year) 11,213,953.97 336,418.62 3.00%
90
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Subtotal within 1 year 11,213,953.97 336,418.62 3.00%
1 to 2 years 1,593,545.44 159,354.54 10.00%
2 to 3 years 1,505,725.84 451,717.75 30.00%
Over 3 years 627,608.36 313,804.18 50.00%
3 to 4 years 222,715.55 178,172.44 80.00%
4 to 5 years 9,766,571.25 9,766,571.25 100.00%
Over 5 years 24,930,120.41 11,206,038.78 44.95%
Notes of the basis of recognizing the group:
The basis recognizing the group refer to Notes V. 11 of Section IX. Financial Report.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
(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 RMB-533,401.79; the amount of the reversed
or collected part during the Reporting Period was of RMB11,729.17.
Of which the significant amount of the reversed or collected part during the Reporting Period was of:
Unit: RMB
Name of units Reversed or collected amount Method
Paying service account 11,729.17 Collected the cash
Total 11,729.17 --
The withdrawn amount of the bad debt provision was of RMB-533,401.79 during the Reporting Period; the
increased bad debt provision amount of the translation of the exchange rate of the withdrawn bad debt provision
of the foreign claimable assets receivable and the translation of the foreign currency statement was of
RMB265,292.45; and the reversed or collected amount of the bad debt provision was of RMB11,729.17.
(3) The actual write-off other accounts receivable
Unit: RMB
Item Amount
Of which the significant write-off other accounts receivable:
Unit: RMB
Whether occurred
Name of units Nature Amount Reason Process from the related
transactions
Total -- 0.00 -- -- --
Notes of write-off other accounts receivable:
91
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
There was no write-off other accounts receivable.
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing book balance Opening book balance
Margin 11,379,608.70 12,540,024.90
Pretty cash borrowing 1,632,916.04 772,557.45
Accounts receivable of the related
10,969,128.65 10,704,936.65
companies
Accounts receivable of the non-related
98,062,510.28 96,201,905.02
companies
Total 122,044,163.67 120,219,424.02
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
Unit: RMB
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 53,031,578.72 Over 5 years 43.45% 53,031,578.72
(Group) Co., Ltd
companies
Anhui Nanpeng
Accounts receivable
Papermaking Co., 8,311,904.00 Over 5 years 6.81% 8,311,904.00
of the related parties
Ltd
Shenzhen
Shengfenglu,
Accounts receivable
INTERNATIONAL
of the non-related 6,481,353.60 Over 5 years 5.31% 6,481,353.60
TRADE CENTER
companies
Jewel & Gold Co.,
Ltd
Shanghai Yutong
Accounts receivable
Real estate
of the non-related 5,676,000.00 Over 5 years 4.65% 5,676,000.00
development Co.,
companies
Ltd
Accounts receivable
Wuliangye
of the non-related 5,523,057.70 Over 5 years 4.53% 5,523,057.70
Restaurant
companies
92
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Total -- 79,023,894.02 -- 64.75% 79,023,894.02
(6) Accounts receivable involved with government subsidies
Unit: RMB
Project of government Estimated received time,
Name of units Closing balance Closing age
subsidies amount and basis
Total -- 0.00 -- --
Not applicable
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Not applicable
Other notes:
10. Inventory
(1) Category of inventory
Unit: RMB
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 1,276,641.32 489,227.20 787,414.12 1,602,571.24 529,191.39 1,073,379.85
Inventory goods 171,217.25 171,217.25 54,087.62 54,087.62
Low-value
consumption 434,134.12 434,134.12 116,472.20 116,472.20
goods
Products to be
121,070,697.97 6,648,404.13 114,422,293.84 121,070,697.97 6,648,404.13 114,422,293.84
developed
Work in progress 2,372,174,980.73 104,287,376.50 2,267,887,604.23 2,135,119,545.31 99,897,376.50 2,035,222,168.81
Completed
218,444,427.97 218,444,427.97 315,453,876.53 315,453,876.53
develop product
Total 2,713,572,099.36 111,425,007.83 2,602,147,091.53 2,573,417,250.87 107,074,972.02 2,466,342,278.85
93
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Falling price reserves of inventory
Unit: RMB
Increased amount Decreased amount
Item Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 529,191.39 -39,964.19 489,227.20
Products to be
6,648,404.13 6,648,404.13
developed
Work in progress 99,897,376.50 4,390,000.00 104,287,376.50
Total 107,074,972.02 4,350,035.81 111,425,007.83
(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
RMB85,815,861.19.
(4) Completed unsettled assets formed from the construction contact at the period-end
Unit: RMB
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:
List of the inventories:
A. Products to be developed
Item Closing balance
Book balance Falling price provision 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 Gardern Land 36,824,440.89 36,824,440.89
Shenzhen Properties & Recources 71,657,225.84 71,657,225.84
Banshanyujing Phase II Land
Total 121,070,697.97 6,648,404.13 114,422,293.84
Item Opening balance
Book balance Falling price provision Book value
94
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Hainan QiongShan land 6,648,404.13 6,648,404.13
Fuchang Phase II Land 5,940,627.11 5,940,627.11
Shenhui Gardern Land 36,824,440.89 36,824,440.89
Shenzhen Properties & Recources 71,657,225.84 71,657,225.84
Banshanyujing Phase II Land
Total 121,070,697.97 6,648,404.13 114,422,293.84
B. Work in progress
Item Starting Expected Expected total Period-end Year-begin
time completi investment
on time Book balance Capitalized Book balance Capitalized
interest balance interest
balance
517,212,846.33 27,205,315.95
Shenzhen 2011.09 2016.12 645,146,600.00 498,973,613.05 27,205,315.95
Properties &
Resources
Banshanyuji
ng Phase I
502,858,649.52
Shenzhen 2015.08 2017.08 653,380,000.00 440,834,282.15
Properties &
Resources
Hupanyujin
g Phase II
529,431,275.11 14,633,486.15
Shenzhen 2014.02 2016.10 799,200,000.00 448,310,252.81 10,944,354.97
Properties &
Resources
Qianhai
Harbor
Shenzhen 159,216,496.12 3,858,872.36
2014.03 2018.12 1,521,400,000.00 146,379,982.82 3,858,872.36
Properties &
Resources
Jinling
Holiday
663,455,713.65 30,539,392.65
Shenzhen 2013.10 2016.12 895,230,000.00 600,621,414.48 30,357,575.40
Properties &
Resources
Songhulang
yuan
95
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
2,372,174,980.73 76,237,067.11
Total —— 2,135,119,545.31 72,366,118.68
C. Completed developed products
Item Year-begin Time for Increased Decreased Closing balance Falling
balance completion price
provision
1995.12 7,372,250.95 7,372,250.95
International Trade Center
Plaza
2001.06 790,140.58 790,140.58
Huangyuyuan
1999.11 645,532.65 645,532.65
Podium Building of
Fuchang Building
2010.06 692,134.84 692,134.84
Shenzhen Properties &
Resources Xihua Town
2012.12 27,154,592.60 27,154,592.60
Shenzhen Properties &
Resources Langqiao
International
2015.06 276,048,491.88 97,202,269.36 178,846,222.52
Shenzhen Properties &
Resources Caitianyise
2,750,733.03 192,820.80 2,943,553.83
Other items
315,453,876.53 192,820.80 97,202,269.36 218,444,427.97
Total
11. Assets divided as held-to-sold
Unit: RMB
Estimated disposal
Item Closing book value Fair value Estimated disposal time
expense
Other notes:
Not applicable
12. Non-current assets due within 1 year
Unit: RMB
Item Closing balance Opening balance
Other notes:
96
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Not applicable
13. Other current assets
Unit: RMB
Item Closing balance Opening balance
1. House properties receivable of F14, F15
174,382,120.00 174,382,120.00
of Longyuan Chuangzhan Building
2. Original value of the assets group held
69,437,140.28 69,437,140.28
to distribute to the owners of Hainan Xinda
Impairment provision of the assets
group held to distribute to the owners of -69,437,140.28 -69,437,140.28
Hainan Xinda
3. Original value of the assets group held
6,034,625.03 6,034,625.03
to be cancelled after verification
Impairment provision of the assets
group held to be cancelled after -6,034,625.03 -6,034,625.03
verification
Total 174,382,120.00 174,382,120.00
Other notes:
Notes 1: See the details of the house properties receivable of F14, F15 of Longyuan Chuangzhan Building to XV.
4. of Section IX. Financial Report.
Notes 2: Assets group held to distribute to the owners of Hainan Xinda were the assets originally calculated from
the long-term equity investment and accounts receivable of the Company after the 2014 bankruptcy and
liquidation process of the original subsidiary Hainan Xinda Development Corporation and had presented to other
circulating assets since Y2014, with the specific assets list as follows:
Original calculated items Original value Impairment provision 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 discovered any property available for
cash of Hainan Xinda Development Corporation and the bankruptcy and liquidation process is under progress.
Notes 3: Assets group held to be cancelled after verification were the long-term equity investment and other
accounts receivable of the original associated enterprise Shenzhen International Trade Development Co., Ltd. of
the Company, and the enterprise had been written-off in April 2015 by the bankruptcy and liquidation
administrator. And owning to the verification process remain ed unfinished, the assets above were presented in
other circulating assets since Y2015 with the specific assets list as follows:
Original calculated items Original value Impairment provision 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
97
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity
36,158,171.08 18,089,749.80 18,068,421.28 32,501,237.68 18,001,237.68 14,500,000.00
instruments
Measured by fair value 3,568,421.28 3,568,421.28
Measured by cost 32,589,749.80 18,089,749.80 14,500,000.00 32,501,237.68 18,001,237.68 14,500,000.00
Total 36,158,171.08 18,089,749.80 18,068,421.28 32,501,237.68 18,001,237.68 14,500,000.00
(2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
Cost of debt
instruments/amortized 3,568,421.28 3,568,421.28
cost of debt instruments
Fair value 3,568,421.28 3,568,421.28
Varied 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
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 3,465,000. 3,465,000. 3,465,000. 3,465,000. 12.66%
98
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Machinery 00 00 00 00
(Group)
Co., Ltd.
Guangdon
g Huayue
8,780,645. 8,780,645. 8,780,645. 8,780,645.
Real 8.47%
20 20 20 20
Estate Co.,
Ltd.
Shenzhen
INTERNA
TIONAL
TRADE 8,500,000. 8,500,000.
100.00%
CENTER 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.
Shenshan
17,695.09 17,695.09 17,695.09 17,695.09
Co., Ltd.
Macao
Huashen
81,339.81 1,640.77 82,980.58 81,339.81 1,640.77 82,980.58 10.00%
Enterprise
Co., Ltd.
Chongqing
Guangfa
Real estate 2,468,143. 2,517,930. 2,468,143. 2,517,930.
49,787.09 49,787.09 27.25%
developme 72 81 72 81
nt Co.,
Ltd.
Saipan 1,838,413. 1,875,498. 1,838,413. 1,875,498.
37,084.26 37,084.26 30.00%
Project 86 12 86 12
32,501,237 32,589,749 18,001,237 18,089,749
Total 88,512.12 0.00 88,512.12 0.00 -- 0.00
.68 .80 .68 .80
99
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(4) Changes of the impairment of the available-for-sale financial assets during the Reporting Period
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale Foreign currency
available-for-sale Total
instruments liabilities instruments statement translation
financial assets
Withdrawn impairment
balance at the 18,001,237.68 18,001,237.68
period-begin
Withdrawn during the
88,512.12 88,512.12
Reporting Period
Of which: transferred
from other 0.00
comprehensive income
Decreased during the
0.00
Reporting Period
Of which: recovered or
reserved of the fair value 0.00
at the period-end
Withdrawn impairment
18,001,237.68 0.00 88,512.12 18,089,749.80
balance at the 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
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 Group measured the equity investment which had no quotation in the active market with the fair
value could not be reliable measured by cost as well as no any disposal plan on the relevant equity investment in
the foreseeable future.
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: 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
100
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 4: In January 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
INTERNATIONAL TRADE CENTER Petroleum Co., Ltd. (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 INTERNATIONAL TRADE CENTER Petroleum Co., Ltd.,
and thus no more include it in the scope of the consolidation financial statement accrdoing to the regulations of
the ASBE.
Notes 5: During the Reporting Period, the increase of the equity instruments measured by fair value was due to the
acquired shares from Gintian Company owning to the debt restructuring of the original Gintian Company and as
for the details, please refer to the Notes to events after date of other balance sheet of XV. 4 of Section X. Financial
Report of the 2015 Annual Report of the Company.
15. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
(2) Significant held-to-maturity investment at the period-end
Unit: RMB
Bond item Par value Nominal interest rate Actual interest rate Due date
(3) Re-classified held-to-maturity investment during the Reporting Period
Not applicable
Other notes
Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Unit: RMB
Item Closing balance Opening balance Discount rate
101
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Bad debt Bad debt range
Book balance Book value Book balance Book value
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
Not applicable
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of
long-term accounts receivable
Not applicable
Other notes
Not applicable
17. Long-term equity investment
Unit: RMB
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
Shenzhen
Jifa
30,789,34 879,139.1 31,668,48
Warehous
1.98 4 1.12
e Co.,
Ltd.
Shenzhen
Tian’an
Internatio
nal
3,736,835 279,437.1 4,016,272
Building
.43 8 .61
Property
Managem
ent Co.,
Ltd
Subtotal 34,526,17 1,158,576 35,684,75
102
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
7.41 .32 3.73
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.
Anhui
Nanpeng
13,824,00 13,824,00 13,824,00
Papermak
0.00 0.00 0.00
ing Co.,
Ltd
32,807,61 32,807,61 32,807,61
Subtotal
4.14 4.14 4.14
67,333,79 1,158,576 68,492,36 32,807,61
Total
1.55 .32 7.87 4.14
Other notes
18. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □ Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original book value
1. Opening balance 463,309,590.49 7,969,954.40 471,279,544.89
2. Increased amount
233,314.40 233,314.40
of the period
(1) Outsourcing
(2) Transfer of
inventory\fixed
assets\project under
construction
(3) Increased from
enterprise merger
(4) Influence from 233,314.40 233,314.40
103
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
foreign currency
statement translation
3. Decreased
amount of the period
(1) Disposal
(2) Other transfer
4. Closing balance 463,542,904.89 7,969,954.40 471,512,859.29
II. Accumulative
depreciation and
accumulative
amortization
1.Opening balance 228,649,493.40 5,369,262.67 234,018,756.07
2. Increased amount
7,973,786.67 254,572.56 8,228,359.23
of the period
(1) Withdrawal or
7,768,369.05 254,572.56 8,022,941.61
amortization
(2) Influence from
foreign currency 205,417.62 205,417.62
statement translation
3. Decreased
amount of the period
(1) Disposal
(2) Other transfer
4. Closing balance 236,623,280.07 5,623,835.23 242,247,115.30
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
104
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
4. Closing balance
IV. Book value
1. Closing book
226,919,624.82 2,346,119.17 229,265,743.99
value
2. Opening book
234,660,097.09 2,600,691.73 237,260,788.82
value
(2) Investment property adopted fair value measurement mode
□ Applicable √ Not applicable
(3) Details of investment property failed to accomplish certification of property
Unit: RMB
Item Book value Reason
Other notes
19. Fixed assets
(1) List of fixed assets
Unit: RMB
Houses and Transportation Electronic and other Fixed assets
Item Total
buildings equipment equipments decoration
I. Original book
value
1. Opening
111,018,369.27 63,389,075.59 34,408,787.73 6,451,403.79 215,267,636.38
balance
2. Increased
107,974.02 345,049.40 468,763.80 0.00 921,787.22
amount of the period
(1) Purchase 0.00 345,049.40 468,763.80 0.00 813,813.20
(2) Transfer of
project under
construction
(3) Increased
from enterprise
merger
(4) Influence
from foreign 107,974.02 107,974.02
currency statement
105
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
translation
3. Decreased
0.00 229,600.00 0.00 0.00 229,600.00
amount of the period
(1) Disposal or
229,600.00 229,600.00
scrap
4. Closing balance 111,126,343.29 63,504,524.99 34,877,551.53 6,451,403.79 215,959,823.60
II. Accumulative
depreciation
1.Opening balance 77,541,162.76 18,170,689.23 28,226,688.96 5,323,861.90 129,262,402.85
2. Increased
1,448,700.89 5,645,821.86 827,861.39 211,001.70 8,133,385.84
amount of the period
(1) Withdrawal 1,359,000.98 5,645,821.86 827,861.39 211,001.70 8,043,685.93
(2) Influence
from foreign
89,699.91 89,699.91
currency statement
translation
3. Decreased
0.00 137,743.66 0.00 0.00 137,743.66
amount of the period
(1) Disposal or
137,743.66 137,743.66
scrap
4. Closing balance 78,989,863.65 23,678,767.43 29,054,550.35 5,534,863.60 137,258,045.03
III. Depreciation
reserves
1.Opening balance 75,717.16 75,717.16
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal or
scrap
4. Closing balance 75,717.16 75,717.16
IV. Book value
106
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
1. Closing book
32,136,479.64 39,825,757.56 5,747,284.02 916,540.19 78,626,061.41
value
2. Opening book
33,477,206.51 45,218,386.36 6,106,381.61 1,127,541.89 85,929,516.37
value
(2) List of temporarily idle fixed assets
Unit: RMB
Accumulative Impairment
Item Original book value Book value Notes
depreciation provision
Houses and
3,865,391.77 2,117,946.46 1,747,445.31
buildings
(3) Fixed assets leased in from financing lease
Unit: RMB
Accumulative
Item Original book value Impairment provision Book value
depreciation
(4) Fixed assets leased out from operation lease
Unit: RMB
Item Closing book value
(5) Details of fixed assets failed to accomplish certification of property
Unit: RMB
Item Book value Reason
Other notes
20. Construction in progress
(1) List of construction in progress
Unit: RMB
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
107
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Changes of significant construction in progress
Unit: RMB
Of
Amount Proporti which:
Accumul
that on the Capitaliz
Other ative
Increase transferr estimate amount ation rate
Estimate decrease amount
Name o f Opening d amount ed to Closing d of the Project of the of the Capital
d d amount of
item balance of the fixed balance project progress capitaliz interests resources
number of the capitaliz
period 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
Item Withdrawn amount Reason
Total 0.00 --
Other notes
Not applicable
21. Engineering material
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
22. Liquidation of fixed assets
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
23. Productive biological assets
(1) Productive biological assets adopted cost measurement mode
□ Applicable √ Not applicable
108
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Productive biological assets adopted fair value measurement mode
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) List of intangible assets
Unit: RMB
Taxi operating
Item Land use right Patent right Non-patent right Software Total
license plate
I. Total original
book value
1. Opening
170,866,146.80 18,260.00 170,884,406.80
balance
2. Increase in
the Reporting
Period
(1) Purchase
(2) Internal R
&D
(3) Increase
from enterprise
combination
3. Decrease in
the Reporting 18,260.00 18,260.00
Period
(1) Purchase 18,260.00 18,260.00
4. Closing
170,866,146.80 0.00 170,866,146.80
balance
II. Total accrued
amortization
1. Opening
78,226,062.81 18,260.00 78,244,322.81
balance
109
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
2. Increase in
the Reporting 3,576,251.52 0.00 3,576,251.52
Period
(1) Withdrawal 3,576,251.52 3,576,251.52
3. Decrease in
the Reporting 18,260.00 18,260.00
Period
(1) Disposal 18,260.00 18,260.00
4. Closing
81,802,314.33 0.00 81,802,314.33
balance
III. Total
impairment
provision
1. Opening
balance
2. Increase in
the Reporting
Period
(1) Withdrawal
3. Decrease in
the Reporting
Period
(1) Disposal
4. Closing
balance
IV. Total book
value of
intangible assets
1. Book
value of the 89,063,832.47 0.00 89,063,832.47
period-end
2. Book
value of the 92,640,083.99 0.00 92,640,083.99
period-begin
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of the intangible assets
110
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
at the period-end was 0.00%.
(2) Details of fixed assets failed to accomplish certification of land use right
Unit: RMB
Item Book value Reason
Other notes:
26. R&D expenses
Unit: RMB
Opening Closing
Item Increase Decrease
balance balance
Other notes:
Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
(2) Impairment provision of goodwill
Unit: RMB
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 impairment losses:
Not applicable
Other notes
Not applicable
28. Long-term unamortized expenses
Unit: RMB
111
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Amortization
Item Opening balance Increase Decrease Closing balance
amount
Facilities
reconstruction 1,297,321.41 86,488.14 1,210,833.27
expenses
Renovation costs 727,400.66 177,677.34 549,723.32
Total 2,024,722.07 264,165.48 1,760,556.59
Other notes
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
57,877,645.41 14,430,844.06 57,759,280.17 14,401,252.75
provision
Unrealized internal sales
54,136,355.54 13,534,088.89 39,385,119.40 9,846,279.85
gain and loss
Deductible losses 14,491,775.80 3,622,943.95 30,376,338.56 7,594,084.64
Accrued land VAT 644,810,617.96 161,202,654.49 738,683,130.68 184,670,782.67
Estimated profit
calculated at pre-sale
417,732,111.76 104,433,027.94 93,163,091.00 23,290,772.75
revenue of property
enterprises
Payroll payable unpaid
69,928.08 17,482.02 1,293,791.92 323,447.97
but withdrawn
Estimated liabilities 843,045.80 210,761.45 834,999.50 208,749.88
Total 1,189,961,480.35 297,451,802.80 961,495,751.23 240,335,370.51
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Book value of the fixed 76,057.24 19,014.31 95,940.98 23,985.24
112
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
assets larger than the tax
basis
Total 76,057.24 19,014.31 95,940.98 23,985.24
(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB
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
297,451,802.80 240,335,370.51
assets
Deferred income tax
19,014.31 23,985.24
liabilities
(4) List of unrecognized deferred income tax assets
Unit: RMB
Item Closing amount Opening amount
Total 0.00 0.00
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Years Closing amount Opening amount Note
Total 0.00 0.00 --
Other notes:
30. Other non-current assets
Unit: RMB
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
Other notes:
113
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
31. Short-term loans
(1) Category of short-term loans
Unit: RMB
Item Closing balance Opening balance
Pledged and guaranteed loans 0.00 8,000,000.00
Total 8,000,000.00
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 RMB000, of which the situations of
the significant overdue but not return short-term borrowings as follows:
Unit: RMB
Borrower Closing balance Borrowing rate Overdue time Overdue rate
Total 0.00 -- -- --
Other notes:
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
Unit: RMB
Item Closing balance Opening balance
Other notes:
Not applicable
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
Unit: RMB
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
114
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Item Closing balance Opening balance
Within 1 year (including 1 year) 104,851,734.58 102,357,186.61
1 to 2 years (including 2 years) 377,183.26 10,999,069.54
2 to 3 years (including 3 years) 30,348,762.38 20,968,866.58
3 to 4 years (including 4 years) 16,828,879.05 29,208,688.99
4 to 5 years (including 5 years) 4,505,436.40 1,054,522.02
Over 5 years 26,801,721.09 26,936,604.80
Total 183,713,716.76 191,524,938.54
(2) Notes of the accounts payable aging over one year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Burea
Hunan Construction Engineering Group 12,887,087.00 Unsettled
Zhanjiang West Guangdong Construction
6,300,295.58 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 49,702,876.03 --
Other notes:
36. Advance from customers
(1) List of advance from customers
Unit: RMB
Item Closing balance Opening balance
Within 1 year (including 1 year) 2,604,211,279.84 650,027,894.78
1 to 2 years (including 2 years) 1,035,424.13 1,802,283.71
2 to 3 years (including 3 years) 718,445.69 218,445.69
3 to 4 years (including 4 years) 950.00 950.00
4 to 5 years (including 5 years)
Over 5 years 320,204.02 320,204.02
115
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Total 2,606,286,303.68 652,369,778.20
(2) Significant advance from customers aging over one year
Unit: RMB
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
Item Amount
Other notes:
The closing balance of advance from customer increase 299.51%, comparing to the opening period, mainly was
the prepayment of house of SZPRD-Dongguan Songhulangyuan Project, SZPRD-Front Sea Harbour Garden
Project and SZPRD-Hupanyujing Phase II had increased.
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 1,650,908,603.85 10 Jan. 2016
Garden Project
SZPRD-Dongguang Within 1 year 874,483,910.00 12 Jan. 2016
Songhulangyuan Project
SZPRD-Hupanyujing Phase I Within 1 year 21,094,893.00 Completed
SZPRD-Hupanyujing Phase II Within 1 year 43,372,635.00 12 Jan. 2017
Total 2,589,860,041.85
37. Payroll payable
(1) List of Payroll payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 63,264,379.19 125,058,867.11 137,997,703.59 50,325,542.71
II. Post-employment
benefit-defined 424,363.30 11,291,531.16 11,456,294.46 259,600.00
contribution plans
III. Termination benefits 103,074.00 88,321.00 88,321.00 103,074.00
Total 63,791,816.49 136,438,719.27 149,542,319.05 50,688,216.71
116
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) List of Short-term salary
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus,
57,289,492.04 110,036,062.18 123,840,379.75 43,485,174.47
allowance, subsidy
2. Employee welfare 1,639,313.03 1,639,313.03 0.00
3. Social insurance 50,673.60 4,712,821.91 4,763,495.51 0.00
Of which: 1. Medical
42,228.00 3,622,520.17 3,664,748.17 0.00
insurance premiums
Work-related injury
2,484.00 236,708.20 239,192.20 0.00
insurance
Maternity insurance 5,961.60 343,712.84 349,674.44 0.00
Other social security
509,880.70 509,880.70
charges
4. Housing fund 1,124,577.90 3,551,890.99 3,797,454.18 879,014.71
5. Labor union budget
and employee education 4,799,635.65 3,600,293.26 2,438,575.38 5,961,353.53
budget
8. Non-monetary benefits 1,518,485.74 1,518,485.74
Total 63,264,379.19 125,058,867.11 137,997,703.59 50,325,542.71
(3) List of drawing scheme
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 414,427.30 9,170,857.15 9,325,684.45 259,600.00
2. Unemployment
340,376.22 340,376.22 0.00
insurance
Annuity 9,936.00 1,780,297.79 1,790,233.79 0.00
Total 424,363.30 11,291,531.16 11,456,294.46 259,600.00
Other notes:
The demission welfare withdrawn by relieving the labor relationship was of RMB88,321.00 and the unpaid amount at the
period-end was of RMB103,074.00.
38. Taxes payable
Unit: RMB
117
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Item Closing balance Opening balance
VAT -3,503,094.34 684,049.71
Business tax -74,459.15 8,092,058.86
Corporate income tax 69,870,321.74 78,927,414.58
Personal income tax 1,006,107.20 742,060.64
Urban maintenance and construction tax 141,973.16 576,383.19
Stamp tax -1,042.15 24,807.75
Education Surcharge 67,870.30 250,010.86
Local education surtax 43,412.55 167,498.25
Land VAT 684,255,597.53 742,704,599.09
Property tax 1,153,706.53 1,125,407.71
Levee fee 413.84 451.42
Others 567,283.30 502,630.37
Total 753,528,090.51 833,797,372.43
Other notes:
39. Interest payable
Unit: RMB
Item Closing balance Opening balance
Long-term loan interest of installment
payment of interest and repay the due 467,184.76
capital
Enterprise bond interest 12,228.33
Total 479,413.09
Particulars of significant overdue unpaid interest:
Unit: RMB
Entity Overdue amount Overdue reason
Total 0.00 --
Other notes:
40. Dividends payable
Unit: RMB
Item Closing balance Opening balance
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
118
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB
Item Closing balance Opening balance
Margin 35,544,896.20 35,877,241.66
Accounts receivable of the related
31,511,011.04 31,511,011.04
companies
Accounts receivable of the non-related
42,314,828.80 44,937,756.84
companies
Others 22,447,106.73 15,917,070.14
Total 131,817,842.77 128,243,079.68
(2) Other significant accounts payable with aging over one year
Unit: RMB
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
5,214,345.90
Management Company of Shenzhen amortization period
RAINBOW DEPARTMENT STORE CO.,
2,330,000.00 Margin within the leasing period
LTD
Total 56,381,797.79 --
Other notes
42. Liabilities classified as holding for sale
Unit: RMB
Item Closing balance Opening balance
Other notes:
43. Non-current liabilities due within 1 year
Unit: RMB
119
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Item Closing balance Opening balance
Long-term loans due within 1 year 121,243,352.00
Total 121,243,352.00
Other notes:
Non-current liabilities due within 1 year decreased comparing to the opening period, mainly was the maturity repayment.
44. Other current-liabilities
Unit: RMB
Item Closing balance Opening balance
Changes on short term bonds payable:
Unit: RMB
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
Other notes:
45. Long-term loan
(1) Category of long-term loan
Unit: RMB
Item Closing balance Opening balance
Guaranteed loan 144,840,006.83
Total 144,840,006.83
Notes of short-term loans category:
Other notes including interest rate range:
Long-term loan decreased in opening period, mainly was the repayment decreased.
46. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
120
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Increase /decrease of bonds payable (excluding other financial instruments classified as preferred stock,
perpetual capital securities and others of financial liabilities)
Unit: RMB
(3) Explanation of convertible conditions, time for convertible company bonds
(4) Explanation of other financial instruments classified as financial liabilities
Basic situation of outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
Change in outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
Unit: RMB
Outstanding Opening period Increase Decrease Closing period
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Notes to judgment 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
Item Closing balance Opening balance
Other notes:
48. Long-term payroll payable
(1) Long-term payroll payable
Unit: RMB
Item Closing balance Opening balance
(2) Change in defined benefit plans
Obligation present value of defined benefit plans
Unit: RMB
Item Reporting Period Same period of last year
Plan assets
Unit: RMB
Item Reporting Period Same period of last year
121
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Liabilities (net assets) of defined benefit plans
Unit: RMB
Item Reporting Period Same period of last year
Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow, time and uncertainty of the
Company:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
49. Special payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance Formed reason
Other notes:
50. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Formed reason
For details, please refer to
Pending litigation 834,999.50 834,999.50 Section IX. Financial Report
XIV. 2, (1)
Total 834,999.50 834,999.50 --
Other notes, including significant assumptions, valuation explanation related to significant estimated liabilities:
51. Deferred revenue
Unit: RMB
Item Opening balance Increase Decrease Closing balance Formed reason
Operating license
Operating license
plate rental income 8,802,625.05 646,610.82 8,156,014.23
plate rental
held to carry forward
International Trade Rental of
Center petroleum International Trade
10,270,000.00 699,996.00 9,570,004.00
rental income held to Center Petroleum
carry forward Co., Ltd.
Total 19,072,625.05 1,346,606.82 17,726,018.23 --
Item involving government subsidies:
Unit: RMB
Amount of newly Amount recorded Related to
Item Opening balance Other changes Closing balance
subsidy into assets/related
122
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
non-operating income
income in report
period
Total 0.00 0.00 0.00 --
Other notes:
52. Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Utility specific fund 237,163.45 237,163.45
Housing principle fund 16,320,402.76 15,096,884.76
House warming deposit 7,146,184.35 7,770,164.12
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 27,681,668.65 27,476,957.21
Taxi Deposit 42,765,817.07 41,606,566.60
Belong to equity of SIH Divestiture Assets. 17,494,078.26 18,253,188.54
Others 1,163,776.29 312,925.26
Total 116,828,506.27 114,773,265.38
Other notes:
53. Share capital
Unit: RMB
Increase/decrease (+/-)
Opening Capitalized Closing
New shares
balance Bonus shares Capital Others Subtotal balance
issued
reserves
The sum of
595,979,092.00 595,979,092.00
shares
Other notes:
123
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
54. Other equity instruments
(1) Basic situation of outstanding preferred stock, perpetual capital securities and other financial
instrument at the period-end
(2) Change in outstanding preferred stock, perpetual capital securities and other financial instrument at
the period-end
Unit: RMB
Outstanding Opening period Increase Decrease Closing period
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in Reporting Period:
Other notes:
55. Capital surplus
Unit: RMB
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
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other comprehensive income
Unit: RMB
Reporting Period
Less: recorded
Amount in other Attributable
Attributable
Opening before comprehensive Less: to owners Closing
Item to minority
balance income tax income in Income tax of the balance
shareholder
in current prior period expense Company
s after tax
period and transferred after tax
to profit or
124
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
loss in current
period
II. Other comprehensive reclassified 1,000,816.7 1,000,816.7 -3,045,78
-4,046,603.46
into profits or losses 6 6 6.70
Converted difference of the 1,000,816.7 1,000,816.7 -3,045,78
-4,046,603.46
foreign currency financial statement 6 6 6.70
1,000,816.7 1,000,816.7 -3,045,78
Total -4,046,603.46
6 6 6.70
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
Item Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
59. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
154,664,631.59 154,664,631.59
reserves
Total 154,664,631.59 154,664,631.59
Other note, including changes and reason of change
60. Retained earnings
Unit: RMB
Item Reporting Period Last period
Opening balance of retained profits before
1,233,358,112.55 1,225,726,944.83
adjustments
Opening balance of retained profits after
1,233,358,112.55 1,225,726,944.83
adjustments
Add: Net profit attributable to owners of the
-5,248,704.63 31,162,831.74
Company
Dividend of common stock payable 47,678,327.36 131,115,400.24
Closing retained profits 1,180,431,080.56 1,125,774,376.33
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
125
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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. Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 345,547,471.22 287,490,422.42 317,901,168.02 191,090,391.49
Other operations 26,510,008.74 7,517,399.44 20,860,142.37 7,963,769.10
Total 372,057,479.96 295,007,821.86 338,761,310.39 199,054,160.59
62. Business tax and surcharges
Unit: RMB
Item Reporting Period Same period of last year
Business tax 14,203,065.56 16,137,424.04
Urban maintenance and construction tax 1,239,360.30 1,194,754.19
Education Surcharge 532,180.88 581,111.41
Local education surtax 353,463.79 277,110.87
Levee fee -37.58 1,074.24
Property tax 1,451,965.74 2,079,423.80
Land use tax 291,904.46
Land VAT 5,661,386.67 26,059,740.50
Other 11,672.58 450,507.04
Total 23,744,962.40 46,781,146.09
Other notes:
A YOY decrease of 49.24% in business tax and surcharges mainly was the settlement of the projects in different areas, gross rate had
a YOY decreased which lead to the decrease of land value increment tax.
63. Sales expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 2,025,984.36 1,405,483.32
126
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Office expenses of operating institutions 1,773,152.88 1,410,156.73
Sales agency fee, advertising expense and
10,539,707.09 9,154,883.00
general publicity expense
Others 2,200,915.26 687,743.64
Total 16,539,759.59 12,658,266.69
Other notes:
The sales expenses increased 30.66% over the last period which mainly was enlarging sale power lead to the increase of relevant
marketing expenses.
64. Administrative expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 29,331,379.85 29,457,310.79
Administrative office cost 7,460,528.60 7,116,805.85
Assets amortization and depreciation
1,808,062.26 2,536,652.51
expense
Litigation costs 235,352.87 2,211,000.00
Taxes 878,783.59 533,243.23
Others 4,858,048.28 6,475,169.32
Total 44,572,155.45 48,330,181.70
Other notes:
65. Financial expenses
Unit: RMB
Item Reporting Period Same period of last year
Interest expenses 0.00 0.00
Less: Interest income 7,499,149.56 5,421,472.92
Net losses of exchange -32,303.30 215,050.38
Others 493,013.92 492,047.04
Total -7,038,438.94 -4,714,375.50
Other notes:
The amount of the financial expenses of the period increase over the last period was mainly due to the increase of
bank deposit.
127
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
66. Asset impairment loss
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss -539,137.85 365,644.80
II. Inventory falling price loss 4,350,035.81 -7,847.20
Total 3,810,897.96 357,797.60
Other 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-Hupanyujing Phase II Project.
67. Gains and losses from changes in fair value
Unit: RMB
Sources Reporting Period Same period of last year
Other notes:
68. Investment income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
1,158,576.32 666,409.17
accounted by equity method
Investment income received from disposal of
5,709,098.20
available-for-sale financial assets
Others 392,034.89
Total 1,158,576.32 6,767,542.26
Other notes:
The investment income decreased 82.88% over last period was mainly due to the investment income from disposal of available for
sale financial assets.
69. Non-operating gains
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Confiscated income 713,423.41 444,741.20 713,423.41
Others 369,676.99 116,338.18 369,676.99
Total 1,083,100.40 561,079.38 1,083,100.40
128
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Government subsidies recorded into current profits and losses
Unit: RMB
Whether
subsidies
Special Related to
Distribution Distribution influence the Reporting Same period
Item Nature subsidy or assets/related
entity reason current Period of last year
not income
profits and
losses or not
Total -- -- -- -- -- 0.00 0.00 --
Other notes:
Non-operating gains increased 93.04% over last period was mainly due to the increase of confiscation of all kinds of deposit and
overdue fund.
70. Non-operating expenses
Unit: RMB
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
6,300.00 426,921.60 6,300.00
assets
Including: Loss on disposal of
6,300.00 426,921.60 6,300.00
fixed assets
Taxes overdue payment fines
19,444.98 364,555.49 19,444.98
and other fines
Others 272,977.52 298,401.06 272,977.52
Total 298,722.50 1,097,878.15 298,722.50
Other notes:
Non-operating expenses decreased 72.79% over last period was mainly due to the payment of penalty, overdue fund, losses from
disposal of fix assets decreased.
71. Income tax expense
(1) Lists of income tax expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 680,299.69 19,771,504.14
Deferred income tax expense 1,931,680.80 -8,409,459.17
Total 2,611,980.49 11,362,044.97
129
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Reporting Period
Total profits -2,636,724.14
Current income tax expense accounted by tax and relevant
-659,181.04
regulations
Influence of different tax rate suitable to subsidiary 1,425.21
Influence of income tax before adjustment 1,566,913.91
Influence of non taxable income -289,644.08
Influence of not deductible costs, expenses and losses -123,850.12
Influence of deductible losses of deferred income tax assets
-42,227.03
derecognized used in previous period
Influence of deductible temporary difference or deductible losses
2,158,543.63
of deferred income tax assets derecognized in Reporting Period.
Income tax expense 2,611,980.49
Other notes
The income tax expense decreased 77.01% over last period was mainly due to decreased of profits realized in Reporting Period.
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
Item Reporting Period Same period of last year
Interest income 7,499,149.56 5,421,472.92
Other small receivables 9,409,363.61 3,223,250.59
Net margins, security deposit and various
1,103,118.08
special funds received
Net amount of utilities, miscellaneous
fees and accident fee and other receivables 3,548,734.20
on behalf
Total 21,560,365.45 8,644,723.51
Note to other cash received relevant to operating activities:
130
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Other cash paid relevant to operating activities:
Unit: RMB
Item Reporting Period Same period of last year
Paying administration expenses in cash 10,781,780.30 13,754,863.03
Paying sales expenses in cash 19,956,361.04 14,085,771.42
Net margins, security deposit and various
1,469,582.18
special funds paid
Net amount of utilities, miscellaneous
fees and accident fee and other payments 13,919,258.96
on behalf
Other small payments 6,389,601.95 804,340.53
Total 37,127,743.29 44,033,816.12
Notes to other cash paid relevant to operating activities:
(3) Other cash received relevant to investment activities
Unit: RMB
Item Reporting Period Same period of last year
Notes to other cash received relevant to investment activities
(4) Other cash paid relevant to investment activity
Unit: RMB
Item Reporting Period Same period of last year
Note to other cash paid relevant to investment activities:
(5) Other cash received relevant to financing activities
Unit: RMB
Item Reporting Period Same period of last year
Notes to other cash received relevant to financing activities:
(6) Other cash paid relevant to financing activities
Unit: RMB
Item Reporting Period Same period of last year
Handling charges of significant loans 96,000.00 104,500.00
Total 96,000.00 104,500.00
Notes to other cash paid relevant to financing activities:
131
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
74. Supplemental information for Cash Flow Statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit -5,248,704.63 31,162,831.74
Add: Provision for impairment of assets 3,810,897.96 357,797.60
Depreciation of fixed assets, of oil-gas
16,066,627.54 15,612,644.17
assets, of productive biological assets
Amortization of intangible assets 3,576,251.52 3,576,251.52
Long-term unamortized expenses 264,165.48 264,165.48
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: 6,300.00 426,921.60
negative)
Financial cost (gains: negative) 96,000.00 104,500.00
Investment loss (gains: negative) -1,158,576.32 -6,767,542.26
Decrease in deferred income tax assets
-57,116,432.29 -8,359,611.70
(gains: negative)
Increase in deferred income tax liabilities
-4,970.93 -228,468.69
(“-” means decrease)
Decrease in inventory (gains: negative) -139,623,701.04 -170,954,590.39
Decrease in accounts receivable from
-169,294,375.39 -23,560,177.24
operating activities (gains: negative)
Increase in payables from operating
1,857,883,012.89 -63,543,902.76
activities (decrease: negative)
Net cash flows generated from operating
1,509,256,494.79 -221,909,180.93
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Net increase in cash and cash equivalents: -- --
Closing balance of cash 2,116,055,975.68 482,997,421.84
Less: Opening balance of cash 933,337,815.77 808,963,376.68
Net increase in cash and cash equivalents 1,182,718,159.91 -325,965,954.84
132
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Net Cash paid of obtaining the subsidiary
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
(3) Net Cash receive from disposal of the subsidiary
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
(4) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2,116,055,975.68 933,337,815.77
Including: Cash on hand 299,819.32 208,170.99
Bank deposit on demand 2,114,647,115.64 930,987,796.17
Other monetary funds on demand 1,109,040.72 2,141,848.61
III. Closing balance of cash and cash
2,116,055,975.68 933,337,815.77
equivalents
Other notes:
75. Notes to items of changes in owner's equity
Notes to name of "other" item adjusted closing balance and the adjustment amount:
Not applicable
76. The assets with the ownership or use right restricted
Unit: RMB
Item Closing book value Restricted reason
133
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Guarantee deposit, for details, please refer
Monetary capital 12,402,160.00 to Section IX. Financial Report VII. 1,
XIV. 2, (1)
Total 12,402,160.00 --
Other notes:
77. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary capital -- -- 51,712,574.39
HKD 60,503,772.54 0.8547 51,712,574.39
Other account payable 304,788.63
Of which: HKD 356,603.05 0.8547 304,788.63
Accounts payable 47,863.20
Of which: HKD 56,000.00 0.8547 47,863.20
Other 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 □ Not applicable
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
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Not applicable
79. Other
Not applicable
134
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
VIII. Changes of merge scope
1. Business combination not under the same control
(1) Business combination under the same control during the Reporting Period
Unit: RMB
Income of Net profit of
Time to Equity Way of
Name of Time to Recognition acquiree from acquiree from
obtain proportion equity Purchase date
acquiree obtain cost judgment purchase date purchase date
equity obtained obtained
to period-end to period-end
Other notes:
Not applicable
(2) Combination cost and goodwill
Unit: RMB
Combination cost
Notes to recognition method, contingent consideration and its changes in fair value of combination cost:
Not applicable
Main reason of large amount goodwill formed:
Not applicable
Other notes:
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Unit: RMB
Fair value on purchase date Book value on purchase date
Recognition methods of identifiable assets and liabilities:
Not applicable
Contingent liabilities of acquiree bared in enterprises merger:
Not applicable
Other notes:
Not applicable
(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
135
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
Not applicable
(6) Other notes
Not applicable
2. Business combination under the same control
(1) Business combination under the same control during the Reporting Period
Unit: RMB
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
Other notes:
Not applicable
(2) Combination cost
Unit: RMB
Combination cost
Notes to contingent consideration or other changes:
Not applicable
Other notes:
Not applicable
(3) The book value of the assets and liabilities of the combined party at combining date
Unit: RMB
Combination date Period-end of last period
Contingent liabilities of the combined party undertaken in combination
136
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Not applicable
Other notes:
Not applicable
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.
Not applicable
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:
Not applicable
6. Other
Not applicable
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Shenzhen
Property
Huangcheng Real Shenzhen Shenzhen 95.00% 5.00% Set-up
development
Estate Co., Ltd.
SZPRD Real
Estate Property
Shenzhen Shenzhen 95.00% 5.00% Set-up
Development Co., development
Ltd.
137
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
Shenzhen
International
Property
Trade Center Chongqing Chongqing 100.00% Set-up
management
Property
Management Co.,
Ltd.
138
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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.
Shenzhen Tesu
Vehicle Driver
Shenzhen Shenzhen Service 100.00% Set-up
Training Center
Co., Ltd.
Shenzhen
Shenzhen Shenzhen Trading 95.00% 5.00% Set-up
International
139
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 70.00%
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. (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
140
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 June 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 December 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 September 30, 2016. SX Company paid for FET
Company with 313,000 Yuan income obtained from assets operation from Jun. 1, 2012 to December 31, 2012.
Since then SX Company will pay 626,000 Yuan to FET Company each year and the remaining incomes gained
from assets operation will be possessed by SX Company.
Balance of Divestiture Assets as of 30 June 2016 in consolidated statements is as follows:
Item Amount Item Amount
Other accounts receivable 50.00Other account payable 683,578.08
Investment property 8,869,702.93Other non-current 17,494,078.26
liabilities
Fixed assets 9,120,223.51
Long-term unamortized 187,679.90
expenses
Total assets 18,177,656.34 Total liabilities and 18,177,656.34
owners’ equity
Notes: other non-current liabilities shall belong to equity of SIH Divestiture Assets.
Through the above Contract on Entrusted Management of Divestiture Assets and Liabilities, the Company has
actually controlled SX Company’s Divestiture Assets which become a business entity with control rights by
entrusted business mode.
Basis of determine whether the Company is the agent or the principal:
Naught
Other notes:
Naught
(2) Significant not wholly owned subsidiary
Unit: RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name 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
Other notes:
141
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
As of the end of Reporting Period, the balance of minority shareholders was RMB862,087.06; there was no
significant non-wholly owned subsidiary in the Company.
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB
Closing balance Opening balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
Unit: RMB
Reporting Period Same period of last year
Total Total
Name Operation Operating Operation Operating
Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Other notes:
Naught
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Naught
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Naught
Other 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
Other notes
Naught
142
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
Building Property Property
Shenzhen Shenzhen 50.00% Equity method
Management management
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 can not 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
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 40,290,793.13 7,276,178.04 38,895,590.21 5,555,289.81
Of which: cash and cash
29,129,164.09 6,723,458.04 27,170,290.21 5,279,230.56
equivalence
143
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Non-current assets 51,233.38 58,664,366.58 112,137.15 59,395,951.93
Total assets 40,342,026.51 66,113,227.61 39,007,727.36 64,951,241.74
Current liabilities 15,959,745.32 2,776,265.41 14,868,217.22 3,372,557.80
Non-current liability 16,349,735.99 16,665,839.28
Total liabilities 32,309,481.31 2,776,265.41 31,534,056.50 3,372,557.80
Equity attribute to the
8,032,545.20 63,336,962.20 7,473,670.86 61,578,683.94
parent company
Portion of net assets
calculated according to
4,016,272.60 31,668,481.10 3,736,835.43 30,789,341.97
proportion of
shareholdings
Book value of equity
investment to joint 4,016,272.60 31,668,481.10 3,736,835.43 30,789,341.97
venture
Operation revenue 8,671,772.39 3,580,486.62 9,042,773.62 3,117,826.11
Financial expenses 29,837.17 -7,667.06 -1,005.14 -3,221.24
Income tax expense 186,291.45 290,916.24 219,258.92 225,013.86
Net profit 558,874.35 1,758,278.26 657,776.76 675,041.56
Total comprehensive
558,874.35 1,758,278.26 657,776.76 675,041.56
income
Other notes
Naught
(3) Main financial information of significant associated enterprise
Unit: RMB
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 can not 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
Closing balance/ Reporting Period Opening balance /last period
144
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
(6) The excess loss of joint venture or associated enterprise
Unit: RMB
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in previous share of net profit in Reporting unrecognized losses in
accumulatively derecognized Period Reporting 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
Note 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
145
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
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
RMB43.4845 million except the aforesaid had withdrawn bad debt provision, mainly was the account receivable
of property management, of which was account receivable RMB5.4735 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. 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 it selves, 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.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(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 Total
(including 1 year) years) (including 5 year) years
Long term loan 0.00 0.00 0.00
(interest included)
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 902.83 14,756.09 15,658.91
(interest included)
As of the end of Reporting Period, there were no current liabilities or long term loan in the Group.
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 period
Influence to the Influence to Influence to the Influence to
profits equity of profits equity of
shareholders shareholders
RMB down 2% against HKD -5,630.49 997,110.52 6,078.57 920,339.13
RMB up 2% against HKD 5,630.49 -997,110.52 -6,078.57 -920,339.13
Note 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Note 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
(2) Interest rate risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due
to the change of market price.
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.
As of the end of Reporting Period, the Group had repaid all the bank loan, the debt with interest was RMB0.
(3) Other price risk
Other price risk, the risk changed from the change in market price except exchange rate risk and interest risk, no
matter the change was due to the single financial instrument or issue party related factors or the relevant factor of
similar financial instrument within transaction market.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
The available for sale listed equity instrument held by the Group listed in SZSE and calculated at market offer on
balance sheet date. The investment of available for sale equity instrument occurred investment price risk.
Sensitive analysis of other price risk of equity instrument investment was as followed.
Reflecting under the hypothesis of other variables constant, the fair value of equity instrument changes will
impact on net income and shareholders' equity.
Item Reporting Period
Influence to the Influence to equity
profits of shareholders
SZSE-fair value of available for sale equity instrument 133,815.80
increase5%
SZSE-fair value of available for sale equity instrument -133,815.80
decrease5%
Note 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Note 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
Note 3: without regard to the factor possible influence the profit sheet falling price.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Unit: RMB
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) Available-for-sale
3,568,421.28 0.00 0.00 3,568,421.28
financial assets
(2) Equity tool investment 3,568,421.28 0.00 0.00 3,568,421.28
Total assets of consistent
3,568,421.28 0.00 0.00 3,568,421.28
fair value measurement
Total liabilities of
consistent fair value 0.00 0.00 0.00 0.00
measurement
II. Inconsistent fair value
-- -- -- --
measurement
Total assets inconsistently
0.00 0.00 0.00 0.00
measured at fair value
Total liabilities
inconsistent measured at 0.00 0.00 0.00 0.00
fair value
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The closing price of securities transaction in SZSE on 30 June 2016
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
Not applicable
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
Not applicable
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
Not applicable
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
Not applicable
7. Changes in the valuation technique in the current period and the reason for change
Not applicable
8. Fair value of financial assets and liabilities not measured at fair value
Not applicable
9. Other
Not applicable
XII. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of voting
Proportion of share
rights owned by
Name of parent held by parent
Registration place Nature of business Registered capital parent company
company company against the
against the Company
Company (%)
(%)
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 October 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.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.
Other 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
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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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: RMB
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
Related party Content Reporting Period Same period of last year
Shenzhen Investment Holdings
Provision of labor service 0.00 129,542.40
Co., Ltd.
Notes:
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
Unit: RMB
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
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
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
The lease income confirmed in
lessor Category of leased assets Category of leased assets
this year
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Shenzhen Investment Holdings
Rental 100,715.80 172,421.46
Co., Ltd.
Notes:
(4) Related-party guarantee
The Company was guarantor:
Unit: RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was Secured party
Unit: RMB
Execution accomplished
Guarantor: Guarantee amount Start date End date
or not
Notes:
The Company and its subsidiaries didn’t provide guarantees for other companies beyond the range of consolidated
financial statements. As of the end of Reporting Period, the Company had repaid the entire bank loan. The
guarantees those Company and its subsidiaries provided to each other had been canceled.
(5) Inter-bank lending of capital of related parties：
Unit: RMB
Amount borrowed and
Related party Initial date Due date Explanation
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
Unit: RMB
Related party Content Reporting Period Same period of last year
(7) Rewards for the key management personnel
Unit: RMB
Item Reporting Period Same period of last year
Total rewards for the key management
2,238,223.00 2,521,859.00
personnel (tax included)
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(8) Other related-party transactions
In November 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 RMB626,000 to FET Company.
During the entrusted operating period in January-June of 2016, the situation of divestiture assets was as followed:
Item Amount
Operation revenue 1,112,016.98
Operation cost 1,213,921.32
Business tax and surcharges 45,047.68
Administrative expenses 706,188.18
Total profits -853,140.20
Income tax expense -213,285.05
Net profit -639,855.15
Notes: the management costs included paying operation income of RMB626,000 to FET Company.
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Name o f item Related party
Book balance Bad debt provision Book balance Bad debt provision
Anhui Nanpeng
Other accounts
Papermaking Co., 8,311,904.00 8,311,904.00 8,047,712.00 8,047,712.00
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
Other accounts
Guesthouse 909,960.40 909,960.40 909,960.40 909,960.40
receivable
Restaurant
(2) Payables
Unit: RMB
Name o f item Related party Closing book balance Opening book balance
Other account payable Shenzhen Jifa Warehouse Co., 26,296,665.14 26,296,665.14
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Ltd.
Tianan International Building
Other account payable Property Management 5,214,345.90 5,214,345.90
Company of Shenzhen
7. Related party commitment
No such case in Reporting Period.
8. Other
Not applicable
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
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 1,087,871,451.87
derecognized in financial statements.
Total 1,087,871,451.87
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 area of 28,000 square meters.
On July 29, 2001, Guangdong Higher Court issued Civil Court Judgment YGFM (1999) No. 3 (hereinafter
referred to as Judgment No. 3) to judge that ① the Company should transfer the title of land use right specified
in the transfer contract to Jiyong Company within 30 days from the date the judgment taking into effect and ②
Jiyong Company should pay off the transfer consideration amounting to RMB143, 860,000.00 within 60 days
from the date the Company transferred the title of land use right. On November 27, 2001, the Company applied to
Guangdong Higher Court for forcible execution, however Guangdong Higher Court adjudicated to release the
sealing property of Jiyong Company approximately 10,000 square meters since Industrial & Commercial Bank of
China Zhejiang Branch disagree to seal the properties.
The Company thought the applicable law of the decision was error, and raised an objection to High Court of
Guangdong province.
In September 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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, 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 September 2013 Shenzhen Luohu District People's Court issued (2012)
SLFMECZ No. 1150 paper 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 March 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 August 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. 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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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.
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
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Resources and Housing Management were required to re-investigate the application of Meisi Company. The
company, the Shenzhen Municipal Bureau of Land Resources and Housing Management as well as Meisi
Company refused to accept the verdict and made an appeal. On July 2008, the Company has received the
Administrative Ruling Paper from Futian Court in which the trial of No. 10 Case was terminated.
On December 2008, Shenzhen Intermediate Court issued the Administrative Ruling Paper SZFXZZ (2008) No.
223, in which the final adjudication of appeal No. 70 Case was made and the original verdict was sustained.
Moreover, the final adjudication stated that the controversy over the land use right in this case between Meisi
Company and the Company should be settled through civil procedures; the Bureau of Land Resources and
Housing Management of Shenzhen Municipality should not proceed the registration procedure until the
controversy is final settled.
On February 11, 2009, the Company received the Civil Complaint from Futian Court; Meisi Company has made a
civil prosecution against the Company and Shenzhen Luohu Commercial Development Co., Ltd. for the
confirmation of Meisi Company’s land use right and the buildings in original Property Ownership Certificates
SFDZ No., 0103142 and No., 0103139. Furthermore, Meisi Company requests that return of related land use right
and a compensation of RMB7.5 Million. The Company has submitted an objection to jurisdiction. On March 4,
2009, Futian Court sent the Notice to the Company to inform that this case has been transferred to Shenzhen
Intermediate Court for adjudication.
On 22 December 2009, the Company received court ruling delivered by the Guangdong Higher Court. After
investigated by Guangdong Higher Court, it is considered that the retrial application to Shenzhen Intermediate
Court Judgment SZFZ (2008) No. 223 by the company is complied to the law, and adjudicated: ① Arraign by
Guangdong Highest People's Court ② suspended the execution of the original verdict during the retrial.
On 15 Aug. 2011, the Company received the Administrative Ruling Paper (YGFSJZ Zi (2010) No. 8) from the
Guangdong Higher Court, which maintained the Administrative Ruling Paper (SZFXZ Zi (2008) No. 223), and it
believed that the dispute on the land ownership for both parties was civil right confirmation, and both parties
should find other legal way to solve.
The Company received the ruling of Shenzhen Medium People's Court in October 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 March 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.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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.
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’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 30 June 2015
to 31 December 2020, and the remained were RMB10,933,290.00 from 1 July 2015 to 31 December 2020.
B. Guarantee for the owners: the Company and its subsidiaries are the purchasers providing mortgage guarantee
for the bank. As of 30 June 2016, the unsettle guarantee amount was RMB1410.41 million, the guarantee event
was provided by real estate developer for small owners’ purchases of commercial houses of the Company, which
159
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
was the common phenomenon in the industry
(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
Influence number to the
Reason of unable to estimate
Item Content financial position and operating
influence number
results
2. Profit distribution
Unit: RMB
Planning allocation of profits or dividends 0.00
Profits or dividends approved, reviewed and issue by the
0.00
declaration
3. Sales return
Naught
4. Notes of other significant events
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. During Reporting Period, in line with the government
website shown, Longyuan Chuangzhan Building had been recorded for the completion acceptance on 3 February
2016 On 26 April 2016 and 17 June 2016, Longyuan-Kaili and Huaneng Property had issued occupation
Announcement, which stated that Longyuan Chuangzhan Building had passed the completion acceptance of
government department, and had occupation conditions, from 22 June 2016,Longyuan Chuangzhan Building dealt
with occupation procedure.
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
XVI. Other significant events
1. The accounting errors correction in previous period
(1) Retrospective restatement
Unit: RMB
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
2. Debt restructuring
Not applicable
3. Replacement of assets
(1) Non-monetary assets exchange
Not applicable
(2) Other assets replacement
Not applicable
4. Pension plan
Not applicable
5. Discontinuing operation
Unit: RMB
Termination of
the business
Income tax profits
Item Sales revenue Expense Total profits Net profit
expense attributable to the
parent company
owner
Other notes
Not applicable
161
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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 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
Property Transportatio Catering Offset in
Item Real estate Others Undistributed Total
management n service segment
Operation 139,265,963. 185,145,485. 29,370,584.4 11,632,035.3 372,057,479.
6,643,411.11
revenue 27 77 2 9 96
Trading
revenues
1,403,925.18 2,485,429.51 444,273.58 2,820,875.92 -7,154,504.19
between
divisions
Sales 16,774,094.8 16,539,759.5
-234,335.22
expenses 1 9
Investment
income to
associated
1,158,576.32 1,158,576.32
enterprises
and joint
ventures
Asset
impairment 3,357,861.60 205,596.46 25,869.42 -572.04 -24,741.09 246,883.61 3,810,897.96
loss
Depreciation 8,972,099.87 626,240.30 6,723,199.65 185,445.32 25,243.77 -44,062.02 16,488,166.8
162
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
and 9
amortization
charges
Total profits -10,424,938.4 11,051,764.1
4,785,969.09 320,583.18 -515,583.68 1,801,550.65 -9,656,069.08 -2,636,724.14
(losses) 0 0
8,767,480,38 357,129,059. 477,561,967. 11,200,374.4 101,448,650. -3,809,558,87 5,910,285,34
Total assets 5,023,788.63
3.60 88 99 5 40 7.77 7.18
Total 6,773,281,33 225,020,382. 259,080,680. 107,427,002. -3,511,194,26 3,861,442,70
5,145,668.57 2,681,902.58
liabilities 2.76 85 88 00 0.90 8.74
Long term
equity
investments
35,684,753.7 35,684,753.7
in associated
3 3
companies
and joint
ventures
Non-current
assets except
45,209,905.0 -11,144,934.9 33,514,713.7
long term -347,735.74 -151,400.33 -51,120.30
8 5 6
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.
Not applicable
(4) Other notes
Information of income of foreign trade:
A. Income of foreign trade of production and labor serve
Item Reporting Period Same period of last year
Real estate 139,265,963.27 122,309,636.98
Property management 185,145,485.77 166,954,853.87
Transportation 29,370,584.42 29,724,103.57
Catering service 11,632,035.39 11,173,151.84
Others 6,643,411.11 8,599,564.13
Total 372,057,479.96 338,761,310.39
B. Geography information
Distribution of foreign trade income:
Item Reporting Period Same period of last
year
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Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Mainland of China 371,895,633.55 338,535,035.22
Countries and regions outside the Chinese mainland 161,846.41 226,275.17
Total 372,057,479.96 338,761,310.39
Distribution of total non current assets liabilities:
Item Closing balance Opening balance
Mainland of China 755,033,380.91 712,036,061.65
Countries and regions outside the Chinese mainland 2,162,860.36 2,455,666.52
Total 757,196,241.27 714,491,728.17
C. Customers information
The customers of the Group were rather dispersed; there was no individual transaction over10%.
7. Other important transactions and events have an impact on investors’ decision-making
Not applicable
8. Other
By 30 June 2016, 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 January 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.
In line with the Processing Scheme of Reorganization of Drawing Share of Jintian Industrial (Group) Co., Ltd.
administrative staff of Jintian Industrial (Group) Co., Ltd. The relevant drawing share of debtor with expected
debt right had been negated, which can be used for additional distribution to all debtors, the total number of shares
164
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
distributed was: A share tradable share: 3,865,491 shares, non-tradable share: 1,968,096 shares, B share:
2,180,872 shares (the actual share number recognized in line with the additional distribution plan of Jintian
Industrial (Group) Co., Ltd. The number of the compensation share of the Company in the additional distribution
had not yet been confirmed, which waited for the administrative personnel of Jintian Industrial (Group) Co., Ltd.
to distribute.
XVII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
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 96,647, 96,647,88
95.67% 100.00% 0.00 98.08% 100.00%
which bad debt 89.05 89.05 889.05 9.05
provision separately
accrued
Accounts receivable
withdrawal of bad
4,315,04 710,416. 3,604,627 1,828,8 849,254.7
debt provision of by 4.27% 16.46% 1.86% 46.44% 979,569.49
3.21 07 .14 24.21 2
credit risks
characteristics:
Accounts receivable
with insignificant
single amount for 54,380.3 54,380.3 54,380.
0.05% 100.00% 0.00 0.06% 54,380.35 100.00%
which bad debt 5 5 35
provision separately
accrued
101,017, 97,412,6 3,604,627 98,531, 97,551,52
Total 100.00% 96.43% 100.00% 99.01% 979,569.49
312.61 85.47 .14 093.61 4.12
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable □ Not applicable
Unit: RMB
165
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Accounts receivable Closing balance
(classified by units) Account receivable Bad debt provision Withdrawal proportion Withdrawal reason
Involved in lawsuit and
Shenzhen Jiyong no executable property,
Properties & Resources 93,811,328.05 93,811,328.05 100.00% please refer to Section
Development Company IX. Financial Report
XIV. 2. (1)
Shenzhen Tewei Industry Irrecoverable for long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. time
Total 96,647,889.05 96,647,889.05 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 3,136,038.50 94,081.16 3.00%
Subtotal within 1 year 3,136,038.50 94,081.16 3.00%
2 to 3 years 803,814.00 241,144.21 30.00%
Over 5 years 375,190.71 375,190.71 100.00%
Total 4,315,043.21 710,416.07 16.46%
Notes:
For details, please refer to Section IX. Financial Report V. 11.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Not applicable
(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 RMB-138,838.65; the amount of the reversed
or collected part during the Reporting Period was of RMB000.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of the entity Amount Method
Total 0.00 --
166
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(3) The actual write-off accounts receivable
Unit: RMB
Item Amount
Of which: significant actual verification of accounts receivable
Unit: RMB
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 92.87% 93,811,328.05
Resources Development
Company
Shenzhen Tewei Industry Co., 2,836,561.00 2.81% 2,836,561.00
Ltd.
RAINBOW DEPARTMENT 1,179,004.71 1.17% 616,334.91
STORE CO., LTD
China Pacific Property Insurance 1,063,757.50 1.05% 31,912.73
Co., Ltd.
Seven Days Hotel (Shenzhen) 338,850.50 0.34% 10,165.52
Co., Ltd.
Total 99,229,501.76 98.24% 97,306,302.21
(5) Derecogniziton of account receivable due to the transfer of financial assets
Naught
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Naught
Other notes:
Naught
167
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
2. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
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 186,958, 89,306,6 97,651,82 188,204 89,137,84 99,066,314.
94.05% 47.77% 10.08% 47.36%
amount for which 504.39 76.72 7.67 ,157.06 2.62 44
bad debt provision
separately accrued
Other accounts
receivable withdrawn 1,676,9
1,554,43 8,818,27 1,545,621 9,623,906 1,667,326,0
bad debt provision 89.14% 0.57% 49,946. 89.79% 0.57%
9,963.77 7.15 ,686.62 .48 39.77
according to credit 25
risks characteristics
Other accounts
receivable with
insignificant single 2,415,32 2,415,32 2,415,3 2,415,326
0.14% 100.00% 0.00 0.13% 100.00%
amount for which 6.23 6.23 26.23 .23
bad debt provision
separately accrued
1,867,5
1,743,81 100,540, 1,643,273 101,177,0 1,766,392,3
Total 100.00% 5.77% 69,429. 100.00% 5.42%
3,794.39 280.10 ,514.29 75.33 54.21
54
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period：
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Other accounts receivable
Other accounts
(unit） Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Shum Yip Properties Irrecoverable for long
105,067,052.17 7,415,224.50 7.06%
Development Co., Ltd. time
No paid assets according
Jintian Industrial (Group) 53,031,578.72 53,031,578.72 100.00%
to the creditors’
168
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Co., Ltd. reorganization plan
Anhui Nanpeng Irrecoverable for long
8,311,904.00 8,311,904.00 100.00%
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 Center 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 186,958,504.39 89,306,676.72 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 353,856.25 10,615.69 3.00%
Subtotal within 1 year 353,856.25 10,615.69 3.00%
1 to 2 years 307,600.00 30,760.00 10.00%
2 to 3 years 42,200.00 12,660.00 30.00%
3 to 4 years 4,853.16 2,426.58 50.00%
Over 5 years 8,761,814.88 8,761,814.88 100.00%
Total 9,470,324.29 8,818,277.15 93.11%
Notes:
For details, please refer to Section IX. Financial Report V. 11.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(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 RMB-805,629.33; the amount of the reversed
169
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
or collected part during the Reporting Period was of RMB 95,357.90.
Of which the significant amount of the reversed or collected part during the Reporting Period:
Unit: RMB
Name of the entity Reversed or collected amount Method
Of which: recovered and reversed asset
Shum Yip Properties Development Co., Ltd. 95,357.90
value
Total 95,357.90 --
The amount of bad debt provision was RMB-805,629.33; the increase of amount of bad debt provision of foreign currency of
creditor's rights receivable after exchange was RMB264, 192.00, the amount of reversed or recovered bad debt provision in the report
period RMB95,357.90.
(3) The actual write-off other accounts receivable
Unit: RMB
Item Amount
Of which significant actual verification of other accounts receivable:
Unit: RMB
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 accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing book balance Opening book balance
Margin 2,389,327.00 3,204,898.13
Pretty cash advance 186,178.00 47,200.00
Account receivable to subsidiary 1,650,090,170.42 1,769,778,048.64
Account receivable to affiliated company 10,059,168.25 9,794,976.25
Account receivable non-affiliated company 81,088,950.72 84,744,306.52
Total 1,743,813,794.39 1,867,569,429.54
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB
Closing balance of
Name of the entity Nature Closing balance Aging Proportion%
bad debt provision
170
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
PRD Yangzhou Real
Account receivable
Estate Development 605,369,836.60 Within 5 year 34.72%
to subsidiary
Co., Ltd.
PRD Group Xuzhou
Dapeng Real Estate Account receivable
599,530,096.41 Within 5 year 34.38%
Development Co., to subsidiary
Ltd.
Dongguan
International Trade
Center Changsheng Account receivable
264,541,793.00 Within 4 year 15.17%
Real Estate to subsidiary
Development Co.,
Ltd.
Shum Yip Properties
Account receivable
Development Co., 105,067,052.17 Over 5 years 6.03% 7,415,224.50
to subsidiary
Ltd.
Shenzhen
Huangcheng Real Account receivable
81,840,000.00 Within 2 year 4.69%
Estate Management to subsidiary
Co., Ltd.
Total -- 1,656,348,778.18 -- 94.99% 7,415,224.50
(6) Account receivable involving government subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Closing balance Closing aging
subsidies time, amount and basis
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
Other notes:
Naught
171
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
3. Long-term equity investment
Unit: RMB
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
68,492,367.87 32,807,614.14 35,684,753.73 67,333,791.55 32,807,614.14 34,526,177.41
associated
enterprises
Total 347,013,628.85 64,771,614.14 282,242,014.71 345,855,052.53 64,771,614.14 281,083,438.39
(1) Investment to the subsidiary
Unit: RMB
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.
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
29,850,000.00 29,850,000.00
International Trade
172
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
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
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
173
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(2) Investment to joint ventures and associated enterprises
Unit: RMB
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 Others 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
30,789,34 879,139.1 31,668,48
Warehous
1.98 4 1.12
e Co.,
Ltd.
Tianan
Internatio
nal
Building
Property 3,736,835 279,437.1 4,016,272
Managem .43 8 .61
ent
Company
of
Shenzhen
34,526,17 1,158,576 35,684,75
Subtotal
7.41 .32 3.73
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.
Anhui
Nanpeng
13,824,00 13,824,00 13,824,00
Papermak
0.00 0.00 0.00
ing Co.,
Ltd.
174
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
32,807,61 32,807,61 32,807,61
Subtotal
4.14 4.14 4.14
67,333,79 1,158,576 68,492,36 32,807,61
Total
1.55 .32 7.87 4.14
(3) Other notes
Naught
4. Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 32,157,014.88 7,594,195.01 29,852,953.97 8,215,152.66
Total 32,157,014.88 7,594,195.01 29,852,953.97 8,215,152.66
Other notes:
5. Investment income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
1,158,576.32 666,409.17
accounted by equity method
Investment income received from disposal of
5,709,098.20
available-for-sale financial assets
Others 225,340.35
Total 1,158,576.32 6,600,847.72
6. Other
Not applicable
XVIII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable □ Not applicable
Unit: RMB
175
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Item Amount Explanation
Gains/losses on the disposal of non-current
-6,300.00
assets
Reverse of bad debt provision of account
receivable individually conducting 11,729.17
impairment test
Other non-operating income and expenses
790,677.90
other than the above
Less: Income tax effects 179,529.79
Total 616,577.28 --
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 √ Not applicable
2. Return on equity and earnings per share
EPS（Yuan/share）
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
-0.25% -0.0088 -0.0088
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
-0.28% -0.0098 -0.0098
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 √ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
176
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
(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
Not applicable
4. Other
Naught
177
Shenzhen Properties & Resources Development (Group) Ltd. Semi-annual Report 2016
Section X Documents Available For Reference
I. Financial statements with the signatures and seals of the Legal Representative, the Chief
Financial Officer and the person in charge of the accounting work;
II. Texts of all the Company’s documents ever disclosed on Securities Times and Hong Kong
Ta Kung Pao in the Reporting Period, and the originals of the public notices.
178
