ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
Stock code: 000011, 200011 Stock name: SZPRD A, SZPRD B Announcement No.: 2017-2
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ABSTRACT OF ANNUAL REPORT 2016
I Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating
results, financial condition and future development planning of the Company, investors are kindly reminded to
read the full text carefully on the media designated by the China Securities Regulatory Commission (the
“CSRC”).
This Annual Report and its abstract have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Objections raised by the directors, supervisors and executive officers
Name Office title Objection and reason
Statement
Except for the following directors, all the other directors attended in person the board meeting for the review of
this Annual Report.
Reason for not attending in
Name Office title Proxy
person
Modified audit opinion
□ Applicable √ Not applicable
Proposal for profit distribution to common shareholders or converting capital reserve into share capital for this
Reporting Period, which has been considered and approved by the Board
√ Applicable □ Not applicable
Share capital increase from capital reserve
□ Yes √ No
The Board has considered and approved the following proposal for profit distribution to common shareholders:
Based on the total shares of 595,979,092, a cash dividend of RMB1.80 (tax inclusive) per 10 shares will be
distributed to all shareholders of the Company. No bonus shares will be granted, nor will any capital reserve be
converted into share capital.
Proposal for profit distribution to preference shareholders for this Reporting Period, which has been considered
and approved by the Board
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
II Company profile
1. Stock profile
Stock name SZPRD A, SZPRD B Stock code 000011, 200011
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Fan Weiping
Qian Zhong, Ding Minghua
42/F, International Trade Center, Renmin 42/F, International Trade Center, Renmin
Office address South Road, Shenzhen, Guangdong South Road, Shenzhen, Guangdong
Province, P.R.China Province, P.R.China
Fax 0755-82210610 82212043 0755-82210610 82212043
Tel. 0755-82211020 0755-82211020
E-mail 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
2. Brief introduction to the main business or products in this Reporting Period
The Company has 12 functioning subsidiaries in total, including 4 real estate subsidiaries (Shenzhen Huangcheng
Real Estate Co., Ltd., Dongguan ITC Changsheng Real Estate Development Co., Ltd., SZPRD Xuzhou Dapeng
Real Estate Development Co., Ltd. and SZPRD Yangzhou Real Estate Development Co., Ltd.), 2 property
management subsidiaries (Shenzhen International Trade Center Property Management Co., Ltd. and Shenzhen
Huangcheng Property Management Co., Ltd.), 2 taxi service subsidiaries (Shenzhen International Trade Center
Car Industry Co., Ltd. and Shenzhen Shenxin Taxi Co., Ltd.), 2 joint ventures (SZPRD Jifa Warehouse Co., Ltd.
and Shenzhen Tian’an International Building Property Management Co., Ltd., with the Company holding a 50%
stake in both), 1 catering subsidiary and 1 supervision subsidiary.
The main business of the Company is as follows:
(1) Real estate
Real estate is the primary business of the Company, operated by 4 of its subsidiaries. The following 5 real estate
development projects are currently ongoing:
1) Xuzhou Banshanyujing: Won against competition on 10 Feb. 2010, floor space 96,900 ㎡, plot ratio 0.8, total
land price RMB192 million, open for sale in December 2016.
2) Dongguan Songhulangyuan: Won on 15 Jul. 2010, floor space 66,900 ㎡, plot ratio 2.2, total land price
RMB214 million, open for sale at the end of July 2015.
3) Yangzhou Hupanyujing: Won on 28 Jan. 2011, floor space 66,600 ㎡, plot ratio 1.4, total land price RMB610
million, Phase II currently open for sale.
4) Shenzhen Qianhai project: Obtained in Jul. 2011 in an asset swap promised in the share reform, floor space
19,900 ㎡, plot ratio 3.2, total land price RMB270 million, open for sale in November 2015.
5) Shenzhen Golden Collar Holiday: Located at Huanggang Port, historical land, floor space 12,600 ㎡, plot ratio
10.5, total construction area 130,000 ㎡.
The 5 ongoing projects above combined cover a floor space of 231,300 ㎡ and a total construction area of
716,100 ㎡, with the plot-ratio-counted and available-for sale area reaching 474,700 ㎡.
(2) Property management
The Company currently has 2 property management subsidiaries, namely Shenzhen International Trade Center
Property Management Co., Ltd. and Shenzhen Huangcheng Property Management Co., Ltd.
(3) Taxi service
The Company currently has 2 taxi service subsidiaries, namely Shenzhen International Trade Center Car Industry
Co., Ltd. and Shenzhen Shenxin Taxi Co., Ltd., holding a total of 530 red taxi licenses.
(4) Property rental
The Company has now a total area of 86,200 ㎡ available for rental, with the letting rate up to 96%.
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ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
(5) Warehousing service
The warehousing service is mainly provided by SZPRD Jifa Warehouse Co., Ltd., a joint venture where the
Company holds a 50% stake, with the total area of the warehouses reaching 35,000 ㎡.
(6) Catering service
Operated by Shenzhen International Trade Center Catering Co., Ltd., with a total business area of 1,892 ㎡.
3. Accounting and financial results
(1) Accounting and financial results for the past three years
Indicate by tick mark whether the Company performed any retroactive adjustments to or restatement of its
accounting data due to changes of accounting policies or correction of accounting errors.
□ Yes √ No
Unit: RMB
2016 2015 +/-% 2014
Operating revenues 2,059,204,077.18 1,077,418,500.93 91.12% 1,268,451,451.86
Net profit attributable to
354,857,241.74 156,819,966.71 126.28% 417,498,679.91
shareholders of the Company
Net profit attributable to
shareholders of the Company 357,519,344.14 18,480,611.70 1,834.56% 253,778,668.88
before exceptional profit and loss
Net cash flows from operating
2,252,041,183.42 309,767,629.66 627.01% -14,627,057.08
activities
Basic earnings per share
0.5954 0.2631 126.30% 0.7005
(RMB/share)
Diluted earnings per share
0.5954 0.2631 126.30% 0.7005
(RMB/share)
Weighted average return on equity
15.79% 7.59% 8.20% 21.82%
(%)
December 31, 2016 December 31, 2015 +/-% December 31, 2014
Total assets 6,654,356,144.10 4,379,763,486.10 51.93% 3,883,288,145.46
Net assets attributable to
2,410,434,735.75 2,099,906,766.61 14.79% 2,074,242,662.07
shareholders of the Company
(2) Financial results by quarter
Unit: RMB
1Q 2Q 3Q 4Q
Operating revenues 196,079,291.87 175,978,188.09 157,661,237.17 1,529,485,360.05
Net profit attributable to
577,026.01 -5,825,730.64 -1,953,780.96 362,059,727.33
shareholders of the Company
Net profit attributable to
shareholders of the Company 193,418.02 -6,058,699.93 -2,164,014.76 365,548,640.81
before exceptional profit and loss
Net cash flows from operating
877,544,687.88 631,711,806.91 591,805,045.13 150,979,643.50
activities
Indicate by tick mark whether there are any material differences between the financial indicators above or their
summations and those which have been disclosed in quarterly or semi-annual reports.
□ Yes √ No
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ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
4. Share capital and shareholders
(1) Numbers of common shareholders and preference shareholders with resumed voting rights as well as
shareholdings of top ten shareholders
Unit: share
Total number of Total number of
common Total number of preference
Total number shareholders at preference shareholders with
of common the prior shareholders resumed voting
47,510 45,078 0 0
shareholders at month-end with resumed rights at the prior
the period-end before the voting rights at month-end before
disclosure of this the period-end the disclosure of this
Report Report
Top 10 shareholders
Total shares Pledged or frozen shares
Name of Nature of Shareholding
held at the Number of restricted shares held
shareholder shareholder percentage (%) Status Number
period-end
Shenzhen
Construction
State-owned
Investment 54.33% 323,796,324 293,997,370
corporation
Holdings
Corporation
Shenzhen
Investment State-owned
9.49% 56,582,573 56,582,573
Management corporation
Corporation
Domestic
Du Xinye 0.65% 3,880,800 0
individual
Domestic
Zhou Qun 0.52% 3,115,450 0
individual
Domestic
Du Yunfeng 0.39% 2,323,000 0
individual
Shenzhen
Domestic
Duty-Free
non-state-ow
Commodity 0.29% 1,730,300 0
ned
Enterprises Co.,
corporation
Ltd.
Domestic
Mai Furong 0.25% 1,514,800 0
individual
Domestic
Jason Offshore
non-state-ow
Equipment Co., 0.23% 1,364,400 0
ned
Ltd.
corporation
Domestic
Yang Yaochu 0.22% 1,320,620 0
individual
Domestic
Chen Liying 0.18% 1,076,051 0
individual
Related or acting-in-concert The first and second principal shareholders of the Company are managed by Shenzhen Investment
parties among the Holding Corporation, the actual controlling shareholder of the Company. And the Company does not
shareholders above know whether there are related parties or acting-in-concert parties among the other 8 shareholders.
Shareholders conducting
securities margin trading (if N/A
any)
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ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
(2) Number of preference shareholders and shareholdings of top ten of them
□ Applicable √ Not applicable
No preference shareholders in this Reporting Period
(3) Ownership and control relations between the actual controller and the Company
5. Corporate bonds
(1) Bond profile
Balance
Bond name Abbr. Bond code Due date Interest rate
(RMB’0,000)
(2) Latest follow-up rating results and rating result changes
N/A
(3) Main financial results of the Company for the recent two years
Item 2016 2015 +/-%
Debt-to-assets ratio 63.76% 52.03% 11.73%
Total debt-to-EBITDA ratio 0.13 0.12 5.47%
Times interest earned 127.90 13.29 862.53%
III Performance discussion and analysis
1. Performance review for this Reporting Period
Investors are kindly reminded to read the full text of this Annual Report carefully and pay special attention to the
following risk factors.
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ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
Is the Company subject to any disclosure requirements for special industries?
Yes. For the Company engages in real estate, it is subject to the Guideline No. 3 of the Shenzhen Stock Exchange
on Information Disclosure by Industry—for Listed Companies Engaging in Real Estate.
(1) Review of industry development in this Reporting Period
1) Analysis on market environment
In 2016, the macro-economy was stable, the supply-side structural reform produced partial results, the positive
factors for economic growth increased, resulting in a new pattern of “dual improvement”. The formation process
of new structure, new economy, and new energy accelerated, the adjustment in traditional industry deepened, and
the supporting role of innovation to development strengthened. The national GDP in the past year reached RMB
74.41 trillion, representing a year-on-year increase of 6.7% based on calculation at comparable prices. However,
due to the mutual contradiction between currency policies of the USA’s raise of interest rate, and Europe and
Japan’s continuous quantitative easing, the strong dollar rose sharply, causing more anticipation for foreign
exchange outflow and RMB devaluation.
2) Analysis on industry structure and trend
For details, please refer to “Section III Business Profile”.
(2) Overall review of the Company in 2016
Y2016 is the outset of the Company’s 13th Five Year Plan. In this Reporting Period, while facing the complicated
macro and micro environment and being led by the management team of the Company, all cadres and staffs of the
Group and the Company made concerted efforts, focused on accomplishing assignments for the full year, firmly
grasped the initiative for development, achieved remarkable performance for all businesses, reached to a
brand-new height in aspects such as business performance, management system, as well as the cohesive force in
the enterprise, realized a good start for the 13th Five Year Plan, and laid a firm foundation for the Company’s
better and larger development.
1) The operating revenue broke through RMB 2 billion, realizing a good beginning for the 13th Five Year
Plan
In 2016, the Company achieved operating revenue of RMB 2,059,200,000, bringing about a net profit of RMB
354,860,000 (attributable to owners of the Company). As at the end of 2016, the total assets was RMB 6.654
billion, the equity attributable to owners of the Company amounted to RMB 2.41 billion, the weighted average
ROE was 15.79%, the earning per share was RMB 0.595, and the net assets per share was RMB 4.04. Both the
operating revenue and assets scale marked record high, and realized a good beginning for the 13th Five Year Plan,
laying a firm foundation for the Company’s further leaping development.
2) All projects in construction were sold out well with sparkling highlights
In 2016, the Company paid close attention to market trend, deeply researched and judged on regulatory policies,
captured market opportunities in time, launched Yangzhou Project Phase II, Xuzhou Project Phase I, and so on in
due time in respect of sales, and achieved smooth sales of real estate projects. In 2016, the two projects in
Shenzhen and Dongguan generated sales revenue of approximately RMB1 billion, Yangzhou Project Phase I and
II altogether generated around RMB360 million, and Xuzhou Project Phase I saw a flying start by generating
about RMB141 million. The accumulative sales revenue generated by the two projects in Shenzhen and Dongguan
reached about RMB3.3 billion, setting a record high for the Company.
3) The project management level was increasingly improved, and the engineering progress was pushed
forward in order
In 2016, as for the Company’s 5 projects in construction, all engineering construction assignments were
successfully accomplished, and safety production with zero accident in the whole year was realized. As for
Qianhai Project, house owners were allowed to move in 9 months in advance, and all progress targets for project
development were successfully accomplished. As for Golden Collar’s Holiday Flat, the construction of podium
building was accomplished 43 days earlier. As for Dongguan Project, the completion and verification was
accomplished on 30 Nov 2016, and all engineering work was developed sustainably and in order. As for
Yangzhou Project Phase II, the check and acceptance of the individual building was finished, and all supporting
engineering work was carried forward as scheduled. As for Xuzhou Project, the completion, check, acceptance,
and recording processes were accomplished, and was smoothly opened for sale.
4) The property management business was expanded and enlarged, and other supplementary businesses
were in firm operation
In 2016, Shenzhen International Trade Center Property Management Co., Ltd. achieved operating revenue of RMB
348 million, showing an increase as compared with the budget target. Huangcheng Property Management Co., Ltd.
achieved operating revenue of RMB 49.8 million, basically reaching the budget target. The property area of the
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ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
two property management companies totaled to over 11 million square meters, covering regions including
Shenzhen, Hangzhou, Chongqing, Inner Mongolia, and Shandong. Supplementary businesses such as cars,
supervision, and leasing were in firm operation and reached the annual targets as planned.
2. Significant changes in the main business in this Reporting Period
□ Yes √ No
3. Products contributing over 10% of the main business revenue or profit
√ Applicable □ Not applicable
Unit: RMB
Operating Gross profit
Operating Gross profit Operating profit:
Product Operating profit revenue: YoY margin: YoY
revenue margin YoY +/-%
+/-% +/-%
Real estate
1,512,673,490.89 459,994,703.42 69.59% 193.17% 96.57% 14.94%
development
Property
322,241,780.02 311,316,025.73 3.39% -3.35% -1.55% -1.76%
management
4. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes √ No
5. Significant YoY changes in the operating revenues, operating costs and net profit attributable to the
common shareholders or their composition
□ Applicable √ Not applicable
6. Possibility of listing suspension or termination
□ Applicable √ Not applicable
7. Issues related to the financial report
(1) YoY changes in accounting policies, accounting estimations and measurement methods
□ Applicable √ Not applicable
No changes.
(2) Retroactive restatements due to correction of significant accounting errors in this Reporting Period
□ Applicable √ Not applicable
No such cases.
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ShenZhen Properties & Resources Development (Group) Ltd. Abstract of Annual Report 2016
(3) YoY changes in the scope of the consolidated financial statements
□ Applicable √ Not applicable
No changes.
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