ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT
(GROUP) LTD.
THIRD QUARTER REPORT 2017
Announcement No. 2017-42
October 2017
1
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) 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 this Report, and shall be jointly and severally
liable for any false representation, misleading statements or material omissions in this Report.
All the directors attended the board meeting for the review of this Report.
Chen Yugang, head of the Company, Wang Hangjun, accounting head for this Report, and
Shen Xueying, head of the accounting department (head of accounting), hereby guarantee
that the Financial Report carried in this Report is factual, accurate and complete.
This 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. Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
September 30, 2017 December 31, 2016 Change
Total assets (RMB) 5,447,556,053.87 6,654,356,144.10 -18.14%
Equity attributable to owners of the
2,878,876,884.33 2,410,434,735.75 19.43%
parent (RMB)
January-September
July-September 2017 YoY change YoY change
2017
Net sales (RMB) 1,335,581,077.17 747.12% 2,652,727,809.60 400.78%
Net margin attributable to owners
211,810,876.32 10,941.08% 576,166,646.75 8,099.55%
of the parent (RMB)
Net margin attributable to owners
of the parent before exceptional 211,069,206.23 9,853.59% 578,891,270.26 7,309.74%
gains and losses (RMB)
Net cash from operating activities
-- -- -354,782,847.37 -116.89%
(RMB)
Basic earnings per share
0.3554 10,869.70% 0.9668 8,090.08%
(RMB/share)
Diluted earnings per share
0.3554 10,869.70% 0.9668 8,090.08%
(RMB/share)
Weighted average return on equity
8.03% 8.12% 21.84% 22.19%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Gains/Losses on disposal of non-current assets (inclusive of offset
-1,800.04
asset impairment provisions)
Impairment provision reversal for accounts receivable on which
624,434.78
the impairment test is carried out separately
Non-operating income and expense other than above -4,709,018.39
Less: Income tax effects -1,361,760.14
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Total -2,724,623.51 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gains and
Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of preference
Total number of common shareholders with resumed
41,264 0
shareholders at period-end voting rights at period-end (if
any)
Top 10 shareholders
Name of Nature of Shareholding Total shares held Restricted shares Pledged or frozen shares
shareholder shareholder percentage at period-end held at period-end Status Number
SHENZHEN
CONSTRUCTIO
N State-owned
54.33% 323,796,324 293,997,370
INVESTMENT 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
individual
Domestic
ZHOU QUN 0.52% 3,115,450
individual
Domestic
DU YUNFENG 0.39% 2,323,000
individual
SHENZHEN
Domestic
DUTY-FREE
non-state-owned 0.29% 1,730,300 1,730,300
COMMODITY
corporation
ENTERPRISES
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
CO., LTD.
Domestic
YANG YAOCHU 0.24% 1,410,620
individual
Domestic
MAI FURONG 0.22% 1,330,500
individual
GAO Domestic
0.19% 1,140,401
YUANXIONG individual
Domestic
CHEN LIYING 0.18% 1,102,051
individual
Top 10 non-restricted shareholders
Type of stock
Name of shareholder Non-restricted shares held at period-end
Type Number
SHENZHEN CONSTRUCTION
RMB common
INVESTMENT HOLDINGS 29,798,954 29,798,954
stock
CORPORATION
RMB common
DU XINYE 3,880,800 3,880,800
stock
RMB common
ZHOU QUN 3,115,450 3,115,450
stock
RMB common
DU YUNFENG 2,323,000 2,323,000
stock
Domestically
YANG YAOCHU 1,410,620 listed stock for 1,410,620
foreign investors
Domestically
MAI FURONG 1,330,500 listed stock for 1,330,500
foreign investors
RMB common
GAO YUANXIONG 1,140,401 1,140,401
stock
Domestically
CHEN LIYING 1,102,051 listed stock for 1,102,051
foreign investors
Domestically
LI JING 962,440 listed stock for 962,440
foreign investors
Domestically
CAO YIFAN 848,000 listed stock for 848,000
foreign investors
Related or acting-in-concert parties The first and second principal shareholders of the Company are managed by Shenzhen
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
among shareholders above Investment Holding Corporation, the actual controlling shareholder of the Company. And the
Company does not know whether there are related parties or acting-in-concert parties among
the other 8 shareholders.
Top 10 common shareholders
conducting securities margin trading N/A
(if any)
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
1. Accounts receivable increased 45.30% from the December 31, 2016 amount to RMB45,864,363.96 on
September 30, 2017, due primarily to a larger amount receivable by property management subsidiaries from house
owners.
2. Prepayments decreased 76.96% from the December 31, 2016 amount to RMB27,775,804.00 on September 30,
2017, due primarily to the reclassification of prepaid taxes as a result of project settlement.
3. Other accounts receivable increased 62.59% from the December 31, 2016 amount to RMB15,515,173.88 on
September 30, 2017, due primarily to increase in utilities, etc. paid by subsidiaries on behalf of their customers,
which were not yet collected from these customers.
4. Inventories decreased 30.70% from the December 31, 2016 amount to RMB1,791,881,804.12 on September 30,
2017, due primarily to project settlement.
5. Assets held for sale increased 100.00% from the December 31, 2016 amount to RMB180,554,122.51 on
September 30, 2017, due primarily to the reclassification as assets held for sale of the Company’s equity interests
in its two tax service subsidiaries, which were to be sold by the Company.
6. Other current assets increased 37.90% from the December 31, 2016 amount to RMB15,138,340.13 on
September 30, 2017, due primarily to increase in prepaid VAT.
7. Available-for-sale financial assets decreased 79.36% from the December 31, 2016 amount to RMB3,613,241.23
on September 30, 2017, due primarily to the reclassification as assets held for sale of the Company’s equity
interests in its two tax service subsidiaries, which were to be sold by the Company.
8. Fixed assets decreased 60.33% from the December 31, 2016 amount to RMB29,328,730.61 on September 30,
2017, due primarily to the reclassification as assets held for sale of the Company’s equity interests in its two tax
service subsidiaries, which were to be sold by the Company.
9. Intangible assets decreased 100.00% from the December 31, 2016 amount to RMB0.00 on September 30, 2017,
due primarily to the reclassification as assets held for sale of the Company’s equity interests in its two tax service
subsidiaries, which were to be sold by the Company.
10. Long-term deferred expense decreased 33.53% from the December 31, 2016 amount to RMB994,612.92 on
September 30, 2017, due primarily to the reclassification as assets held for sale of the Company’s equity interests
in its two tax service subsidiaries, which were to be sold by the Company.
11. Other non-current assets decreased 100.00% from the December 31, 2016 amount to RMB0.00 on September
30, 2017, due primarily to the reclassification of other non-current assets as fixed assets.
12. Advances received decreased 72.60% from the December 31, 2016 amount to RMB611,457,740.27 on
September 30, 2017, due primarily to the shift from advances received from house buyers to sales revenue.
13. Liabilities held for sale increased 100.00% from the December 31, 2016 amount to RMB104,681,866.58 on
September 30, 2017, due primarily to the reclassification as liabilities held for sale of the liabilities of the
Company’s two tax service subsidiaries, whose equity interests were to be sold by the Company.
14. Provisions decreased 100.00% from the December 31, 2016 amount to RMB0.00 on September 30, 2017, due
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
primarily to payments associated with closed legal cases.
15. Deferred income decreased 100.00% from the December 31, 2016 amount to RMB0.00 on September 30,
2017, due primarily to the reclassification as assets held for sale of the Company’s equity interests in its two tax
service subsidiaries, which were to be sold by the Company.
16. Other non-current liabilities decreased 51.84% from the December 31, 2016 amount to RMB55,767,137.26 on
September 30, 2017, due primarily to the reclassification as liabilities held for sale of the liabilities of the
Company’s two tax service subsidiaries, whose equity interests were to be sold by the Company.
17. Other comprehensive income decreased 64.26% from the December 31, 2016 amount to RMB-1,145,810.31
on September 30, 2017, due primarily to lower income from translation of foreign currency-denominated financial
statements caused by exchange rate fluctuations.
18. Retained earnings increased 32.52% from the December 31, 2016 amount to RMB1,910,522,498.75 on
September 30, 2017, due primarily to the margins achieved during the period January through September 2017.
19. The year-over-year increases of 747.12% and 400.78% in net sales to RMB1,335,581,077.17 and
RMB2,652,727,809.60 during the period July through September 2017 and the period January through September
2017, respectively, primarily resulted from more real estate projects open for sale and a larger sold floor area.
20. The year-over-year increases of 608.01% and 234.01% in cost of sales to RMB921,480,304.17 and
RMB1,420,061,473.10 during the period July through September 2017 and the period January through September
2017, respectively, primarily resulted from a larger sold floor area.
21. The year-over-year increases of 5383.69% and 1694.52% in taxes and surtaxes to RMB102,469,953.31 and
RMB459,639,976.26 during the period July through September 2017 and the period January through September
2017, respectively, primarily resulted from higher land VAT, etc. driven by higher real estate income.
22. Finance costs were RMB-4,044,473.36 and RMB-21,808,246.88 during the period July through September
2017 and the period January through September 2017, respectively, with finance income (presented as negative
finance costs) seeing a year-over-year decrease of 42.54% and increase of 54.92%, which primarily resulted from
changes in interest income.
23. The year-over-year decrease of 1557.08% in asset impairment losses to RMB-55,527,862.18 during the period
January through September 2017 primarily resulted from the partial reversal in June 2017 of valuation allowances
provided for the Banshan Yujing (Xuzhou) real estate project and the Hupan Yujing (Yangzhou) real estate
project caused by rising housing prices.
24. The year-over-year decrease of 37.44% in investment income (or investment income from joint ventures and
associates) to RMB479,674.64 during the period July through September 2017 primarily resulted from lower
earnings of joint ventures.
25. The year-over-year decrease of 540.58% in net non-operating income/expense to RMB-4,710,818.43 during
the period January through September 2017 primarily resulted from higher payments for legal matters.
26. The year-over-year increases of 5905.10% and 11781.67% in income tax expense to RMB67,850,203.05 and
RMB171,473,516.73 during the period July through September 2017 and the period January through September
2017, respectively, primarily resulted from higher margins.
27. The year-over-year increases of 8290.23%, 9056.08% and 10941.08% in operating margin, gross margin and
net margin (attributable to the parent company), respectively, to RMB279,076,304.55, RMB279,661,079.37 and
RMB211,810,876.32 during the period July through September 2017, as well as the year-over-year increases of
11117.76%, 13081.42% and 8099.55% in the aforesaid three items, respectively, to RMB752,350,981.91,
RMB747,640,163.48 and RMB576,166,646.75 during the period January through September 2017, primarily
resulted from a significantly larger sold floor area.
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
28. The year-over-year increase of 392.25% and decrease of 172.17% in other comprehensive income, net of tax
to RMB1,109,596.95 and RMB-448,261.61 during the period July through September 2017 and the period
January through September 2017, respectively, primarily resulted from changes in differences arising from the
translation of foreign currency-denominated financial statements caused by exchange rate fluctuations.
29. The year-over-year decrease of 116.89% in net cash from operating activities to RMB-354,782,847.37 during
the period January through September 2017 primarily resulted from decrease in payments collected from house
buyers.
30. The year-over-year increase of 2523.12% in net cash from investing activities to RMB95,047,565.61 during
the period January through September 2017 primarily resulted from a partial payment received in this period for
the Company’s holdings in its two taxi service subsidiaries, which had been transferred.
31. Net cash from financing activities was RMB-107,246,594.16 during the period January through September
2017, with these net cash outflows seeing a year-over-year decrease of 67.20%, which primarily resulted from a
lower repayment amount for loans.
32. The year-over-year decrease of 120.87% in net increase in cash and cash equivalents to RMB-369,690,697.88
during the period January through September 2017 primarily resulted from decrease in payments collected from
house buyers.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
(1) The share transfer of two taxi companies under the control of the Company: for more details about the share transfer of two taxi
companies under the control of the Company to Shenzhen Bus Group Co., Ltd., please refer to the relative announcements disclosed
on June 30 and July 17 in 2017. As of the end of Report Period, the above issue has been approved on the shareholders meeting, and
the Company has received 51% of the contract value as the down payment from Shenzhen Bus Group Co., Ltd. At present,
procedures of the share transfer are in progress.
In accordance with the ruled Accounting Standard, the total assets and liabilities of the above-mentioned two taxi companies are
classified as available-for-sale in the consolidated financial statements. As of the end of Reporting Period, the total of
available-for-sale assets is RMB180,550,000, of which, the cash on hand and at bank is RMB25,160,000, available-for-sale financial
assets are RMB14,500,000, the investment property is RMB13,810,000, and the fixed assets and intangible assets are respectively
RMB41,680,000 and RMB80,130,000. The total of available-for-sale liabilities is RMB104,680,000, of which, the payroll payable is
RMB3,540,000, the other accounts payable are RMB27,990,000, the deferred income is RMB14,360,000 and the other non-current
liabilities are RMB56,960,000.
As of the end of Reporting Period, the above two taxi companies have generated operating revenue of RMB44,900,000, operating
expenses of RMB41,750,000, gross margin of RMB3.2 million, income tax expense of RMB680,000 as well as net margin of
RMB2,520,000 (all attributable to the net margin of parent company). During the same period of last year, they had recorded
RMB47,320,000 in operating revenue, RMB42,160,000 in operating expenses, RMB8.33 million in gross margin, RMB1.93 million
in income tax expense as well as RMB6.4 million in net margin (all attributable to the net margin of parent company).
(2) The Company’s state-owned equity management: under the general deployment by the government in Shenzhen for the
adjustment of state-owned assets management system, Shenzhen SASAC issued SZSASAC [2004] No. 223 on September 29, 2004
in which it decided to set up Shenzhen Investment Holdings Co., Ltd (hereinafter referred to as “SZIH”) taking the form of merger by
new establishment. The merged parties involved in are Shenzhen Investment Management Co., Ltd. (hereinafter referred to as
“SIM”), Shenzhen Construction Investment Holdings Corporation (hereinafter referred to as “SCIHC”) and Shenzhen Business
Investment Holdings Corporation (hereinafter referred to as “SBIHC”). Shenzhen Properties & Resources Development (Group) Ltd.
(hereinafter referred to as “SZPRD” or “the Company”) disclosed Indicative Announcement on State-owned Equity Management (No.
9
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
2004-15) and Announcement on the Progress of the Company’s State-owned Equity Management (No. 2016-20) on November 4,
2004 and October 15, 2016 respectively. SCIHC held 323,796,324 shares of SZPRD and SIM held 56,582,573 shares of SZPRD,
which totally accounted for 63.82% of the total shares of SZPRD.
After the issuing of the decision by Shenzhen SASAC on setting up SZIH taking the form of merger by new establishment, the
Company keeps introducing this situation under the item of Shareholders’ Profile in annual reports since 2004 (including 2004) and
showed investors that the Company’s actual controlling shareholder is SZIH and that the Company’s actual controller is Shenzhen
SASAC.
The Company received the notice from its actual controlling shareholder SZIH on August 6, 2017 that it had acquired the control
power over the Company through the acquisition of the Company’s share held by SIM and SCIH taking the form of merger by new
establishment (hereinafter referred to as “the Acquisition”). In accordance with relative regulations of the PRC Securities Law and
Regulations Governing the Purchase of Listed Companies, SZIH should report to China Securities Regulatory Commission for
exempting its obligation of tender offer. To handle the relative historical issues as soon as possible and ensure the stabilization of the
governance structure and control power over listed companies, SZIH submitted the application to China Securities Regulatory
Commission for exempting tender offer on August 9, 2017. For more details about the Acquisition, please refer to Abstract of the
Report on the Acquisition of Shenzhen Properties & Resources Development (Group) Ltd.
On August 21, 2017, SZIH received the No. 171644 the First Feedback Notice on the Review of Administrative Permissive Projects
from China Securities Regulatory Commission (hereinafter referred to as “Feedback”) issued by China Securities Regulatory
Commission. At the request of China Securities Regulatory Commission, it shall submit its reply in written form and the electronic
documents within 30 working days. And it could submit its application for delay in reply if can’t reply timely.
After the discussion with financial councils and lawyers, SZIH applies for delay in reply to November 16, 2017 to China Securities
Regulatory Commission. After the improvement of relative issues, the reply and relevant materials will be submitted to China
Securities Regulatory Commission.
Announcement of significant event Disclosure date Disclosure website
No. 2017-30 Announcement on the Share
Transfer in Whole of Two Taxi Companies
06/30/2017 under the Control of the Company to
Shenzhen Bus Group Co., Ltd.
The share transfer of two taxi companies
on www.cninfo.com.cn
under the control of the Company
No. 2017-32 Announcement on Resolution
of the First Special Meeting of
07/17/2017
Shareholders in 2017
on www.cninfo.com.cn
No. 2017-33 Announcement on the
Progress of the Company’s State-owned
Equity Management, Abstract of the
08/07/2017
Report on the Acquisition, and
Shareholding Alteration Report (Short
Management of state-owned shares held by
Form) on www.cninfo.com.cn
the Company
No. 2017-40 Announcement on the
Application from the Actual controlling
09/27/2017 Shareholder Shenzhen Investment
Holding Co., Ltd. for Delay in Reply to
the First Feedback Notice on the Review
10
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
of Administrative Permissive Projects
from China Securities Regulatory
Commission on www.cninfo.com.cn
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of
the current year through the end of the next reporting period, as well as the reasons:
√ Applicable □ Not applicable
Forecast: Considerable increase at the same direction
Type of the forecast data: exact data
2017 2016 Change
Forecast accumulative net
60,000 35,486 Up 69.08%
margin (RMB'0,000)
Basic earnings per share
1.0067 0.5954 Up 69.08%
(RMB/share)
The business performance is expected to record a significant change because the projects and the
area of all projects available for settlement for 2017 increases considerably from the same period of
last year. The forecasts above are only preliminary estimates provided according to the current sales
Note
of the Company’s real estate projects. Investors are kindly reminded to note that the actual earnings
of the Company for Y2017 shall be subject to the data to be given in the 2017 Annual Report of the
Company.
V Securities Investments
√ Applicable □ Not applicable
Profit/lo
ss on Cumulat Source
Variety Purchas Profit/lo
Account fair ive fair Sold in
Code of Name of Initial ed in ss in of
of ing Opening value value this Closing Account
this this
securitie securitie investm measure book changes changes Reporti book investm
securitie Reporti Reporti
ment value in this charged ng value ing title
s s ent cost ng ng ent
s model Reporti to Period
Period Period
ng equity funds
Period
Domesti 400016 Fair Availabl Acquire
PTJTA, 3,565,8 3,003,7 609,527 3,613,2
c/overse 、 value e-for-sal d from
PTJTB 56.06 14.14 .09 41.23
as stock 420016 method e the
11
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
financia debt
l asset reorga
nizatio
n of
JINTI
AN
INDU
STRY
(GRO
UP)
CO.,
LTD.
3,565,8 3,003,7 609,527 3,613,2
Total -- 0.00 0.00 0.00 0.00 -- --
56.06 14.14 .09 41.23
Disclosure date of the
announcement about the
board’s consent for the
securities investment
Disclosure date of the
announcement about the
general meeting’s consent
for the securities
investment (if any)
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Progress of the Company’s state-owned
07/03/2017 By phone Individual
equity management
Performance of the Company in the first
07/11/2017 By phone Individual
half of 2017
Progress of the share transfer of two taxi
07/17/2017 By phone Individual companies under the control of the
Company
12
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Performance of the Company in the first
07/20/2017 By phone Individual
half of 2017
Future development strategy of the
08/04/2017 By phone Individual
Company
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.
13
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
September 30, 2017
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 2,474,901,711.24 2,869,755,216.85
Settlement reserve
Interbank lendings
Financial assets at fair value through
gains/losses
Derivative financial assets
Notes receivable
Accounts receivable 45,864,363.96 31,564,219.86
Prepayments 27,775,804.00 120,532,275.38
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable
Dividends receivable
Other accounts receivable 15,515,173.88 9,542,311.30
Financial assets purchased under
agreements to resell
Inventories 1,791,881,804.12 2,585,658,521.65
Assets held for sale 180,554,122.51
Non-current assets due within one year
Other current assets 15,138,340.13 10,977,557.15
Total current assets 4,551,631,319.84 5,628,030,102.19
Non-current assets:
Loans and advances to customers
14
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Available-for-sale financial assets 3,613,241.23 17,503,714.14
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 38,644,378.67 36,751,891.12
Investment property 433,158,817.81 427,800,613.03
Fixed assets 29,328,730.61 73,932,007.89
Construction in progress
Engineering materials
Disposal of fixed assets 85,556.34
Productive living assets
Oil-gas assets
Intangible assets 85,487,580.95
R&D expense
Goodwill
Long-term deferred expense 994,612.92 1,496,391.11
Deferred income tax assets 390,184,952.79 375,997,063.33
Other non-current assets 7,271,224.00
Total non-current assets 895,924,734.03 1,026,326,041.91
Total assets 5,447,556,053.87 6,654,356,144.10
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Money deposits accepted and inter-bank
deposits
Interbank borrowings
Financial liabilities at fair value through
gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 441,094,299.31 419,926,139.39
Advances received 611,457,740.27 2,231,321,227.65
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 55,158,343.14 67,340,897.51
Taxes payable 1,166,548,335.76 1,254,999,384.73
15
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Interest payable
Dividends payable 29,642.40
Other accounts payable 133,069,922.36 132,082,174.54
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of
securities
Liabilities held for sale 104,681,866.58
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 2,512,040,149.82 4,105,669,823.82
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Special payables
Provisions 5,201,315.32
Deferred income 16,379,403.41
Deferred income tax liabilities 9,795.40 14,487.51
Other non-current liabilities 55,767,137.26 115,794,291.23
Total non-current liabilities 55,776,932.66 137,389,497.47
Total liabilities 2,567,817,082.48 4,243,059,321.29
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 119,951,533.93 119,951,533.93
Less: Treasury shares
Other comprehensive income -1,145,810.31 -697,548.70
16
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Special reserve
Surplus reserve 253,569,569.96 253,569,569.96
Provisions for general risks
Retained earnings 1,910,522,498.75 1,441,632,088.56
Equity attributable to owners of the parent 2,878,876,884.33 2,410,434,735.75
Minority interests 862,087.06 862,087.06
Total owners’ equity 2,879,738,971.39 2,411,296,822.81
Total liabilities and owners’ equity 5,447,556,053.87 6,654,356,144.10
Legal representative: Chen Yugang Accounting head for this Report: Wang Hangjun
Head of the accounting department: Shen Xueying
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Cash on hand and at bank 1,806,875,978.25 1,566,655,340.88
Financial assets at fair value through
gains/losses
Derivative financial assets
Notes receivable
Accounts receivable 1,582,553.94 554,834.29
Prepayments 522,729.09 34,080,739.67
Interest receivable
Dividends receivable 350,000,000.00
Other accounts receivable 1,069,976,707.07 1,387,640,781.32
Inventories 303,713,408.60 473,719,042.17
Assets held for sale 39,742,260.98
Non-current assets due within one year
Other current assets 85,558.19 1,241,108.66
Total current assets 3,222,499,196.12 3,813,891,846.99
Non-current assets:
Available-for-sale financial assets 3,843,741.23 3,234,214.14
Held-to-maturity investments
Long-term accounts receivable
17
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Long-term equity investments 243,474,379.67 283,309,153.10
Investment property 341,564,753.69 352,884,137.98
Fixed assets 8,060,535.90 8,696,554.63
Construction in progress
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets
R&D expense
Goodwill
Long-term deferred expense 994,612.92 1,124,345.13
Deferred income tax assets 191,087,501.74 163,663,557.65
Other non-current assets
Total non-current assets 789,025,525.15 812,911,962.63
Total assets 4,011,524,721.27 4,626,803,809.62
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through
gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 120,024,653.68 162,541,223.07
Advances received 92,992,399.30 931,886,153.43
Payroll payable 11,224,995.81 9,532,230.14
Taxes payable 683,870,620.39 551,593,062.41
Interest payable
Dividends payable 29,642.40
Other accounts payable 255,409,518.94 758,082,233.48
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,163,551,830.52 2,413,634,902.53
Non-current liabilities:
Long-term borrowings
18
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions 5,201,315.32
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 5,201,315.32
Total liabilities 1,163,551,830.52 2,418,836,217.85
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 94,057,859.68 94,057,859.68
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 252,912,759.52 252,912,759.52
Retained earnings 1,905,023,179.55 1,265,017,880.57
Total owners’ equity 2,847,972,890.75 2,207,967,591.77
Total liabilities and owners’ equity 4,011,524,721.27 4,626,803,809.62
3. Consolidated Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 1,335,581,077.17 157,661,237.17
Including: Net sales 1,335,581,077.17 157,661,237.17
Interest revenue
Premium revenue
Fee and commission revenue
19
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
2. Operating expenses 1,056,984,447.26 161,835,399.65
Including: Cost of sales 921,480,304.17 130,151,418.31
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 102,469,953.31 1,868,632.47
Selling expense 8,967,303.36 10,977,373.74
Administrative expense 28,008,041.78 25,876,322.92
Finance costs -4,044,473.36 -7,038,347.79
Asset impairment losses 103,318.00
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for losses) 479,674.64 766,734.31
Including: Share of gains/losses of
479,674.64 766,734.31
associates and joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 279,076,304.55 -3,407,428.17
Add: Non-operating income 668,130.40 566,686.18
Including: Gains on disposal of
non-current assets
Less: Non-operating expense 83,355.58 281,842.04
Including: Losses on disposal of
12,056.87 176,586.11
non-current assets
4. Gross margin (“-” for losses) 279,661,079.37 -3,122,584.03
Less: Income tax expense 67,850,203.05 -1,168,803.07
5. Net margin (“-” for losses) 211,810,876.32 -1,953,780.96
Attributable to owners of the
211,810,876.32 -1,953,780.96
parent
Attributable to minority interests
6. Other comprehensive income, net of
1,109,596.95 -379,677.29
tax
20
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Other comprehensive income, net
of tax attributable to owners of the 1,109,596.95 -379,677.29
parent
6.1 Other comprehensive
income that will not be reclassified into
gains/losses
6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
6.2 Other comprehensive
income to be subsequently reclassified 1,109,596.95 -379,677.29
into gains/losses
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
6.2.2 Gains/Losses on fair
value changes of available-for-sale
financial assets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective gains/losses
on cash flow hedges
6.2.5 Currency translation
1,109,596.95 -379,677.29
differences
6.2.6 Other
Other comprehensive income, net
of tax attributable to minority interests
7. Total comprehensive income 212,920,473.27 -2,333,458.25
Attributable to owners of the
212,920,473.27 -2,333,458.25
parent
Attributable to minority interests
8. Earnings per share
8.1 Basic earnings per share 0.3554 -0.0033
8.2 Diluted earnings per share 0.3554 -0.0033
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
21
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Chen Yugang Accounting head for this Report: Wang Hangjun
Head of the accounting department: Shen Xueying
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 17,291,326.51 16,318,524.86
Less: Operating expenses 6,097,177.33 4,066,969.06
Taxes and surtaxes 1,135,062.22 964,178.65
Selling expense 259,359.00 6,023,179.46
Administrative expense 9,209,839.24 10,389,433.36
Finance costs -2,437,908.35 -2,781,233.44
Asset impairment losses
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for loss) 479,674.64 766,734.31
Including: Share of gains/losses of
479,674.64 766,734.31
associates and joint ventures
Other income
2. Operating margin (“-” for losses) 3,507,471.71 -1,577,267.92
Add: Non-operating income 85,064.00 -110,802.31
Including: Gains on disposal of
non-current assets
Less: Non-operating expense 37,705.54
Including: Losses on disposal of
6,567.27
non-current assets
3. Gross margin (“-” for losses) 3,554,830.17 -1,688,070.23
Less: Income tax expense 840,255.24 -1,098,164.09
4. Net margin (“-” for losses) 2,714,574.93 -589,906.14
5. Other comprehensive income, net of
tax
5.1 Other comprehensive income that
will not be reclassified into gains and
losses
5.1.1 Changes in net liabilities or
22
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
5.2 Other comprehensive income to
be subsequently reclassified into
gains/losses
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
5.2.2 Gains/Losses on fair value
changes of available-for-sale financial
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 2,714,574.93 -589,906.14
7. Earnings per share
7.1 Basic earnings per share 0.0046 -0.0010
7.2 Diluted earnings per share 0.0046 -0.0010
5. Consolidated Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 2,652,727,809.60 529,718,717.13
Including: Net sales 2,652,727,809.60 529,718,717.13
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 1,902,269,315.24 538,472,557.97
23
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Including: Cost of sales 1,420,061,473.10 425,159,240.17
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 459,639,976.26 25,613,594.87
Selling expense 19,823,652.31 27,517,133.33
Administrative expense 80,080,322.63 70,448,478.37
Finance costs -21,808,246.88 -14,076,786.73
Asset impairment losses -55,527,862.18 3,810,897.96
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for losses) 1,892,487.55 1,925,310.63
Including: Share of gains/losses of
1,892,487.55 1,925,310.63
associates and joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 752,350,981.91 -6,828,530.21
Add: Non-operating income 1,276,286.37 1,649,786.58
Including: Gains on disposal of
23,539.00
non-current assets
Less: Non-operating expense 5,987,104.80 580,564.54
Including: Losses on disposal of
25,339.04 182,886.11
non-current assets
4. Gross margin (“-” for losses) 747,640,163.48 -5,759,308.17
Less: Income tax expense 171,473,516.73 1,443,177.42
5. Net margin (“-” for losses) 576,166,646.75 -7,202,485.59
Attributable to owners of the
576,166,646.75 -7,202,485.59
parent
Attributable to minority interests
6. Other comprehensive income, net of
-448,261.61 621,139.47
tax
Other comprehensive income, net
-448,261.61 621,139.47
of tax attributable to owners of the
24
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
parent
6.1 Other comprehensive
income that will not be reclassified into
gains/losses
6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
6.2 Other comprehensive
income to be subsequently reclassified -448,261.61 621,139.47
into gains/losses
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
6.2.2 Gains/Losses on fair
value changes of available-for-sale
financial assets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective gains/losses
on cash flow hedges
6.2.5 Currency translation
-448,261.61 621,139.47
differences
6.2.6 Other
Other comprehensive income, net
of tax attributable to minority interests
7. Total comprehensive income 575,718,385.14 -6,581,346.12
Attributable to owners of the
575,718,385.14 -6,581,346.12
parent
Attributable to minority interests
8. Earnings per share
8.1 Basic earnings per share 0.9668 -0.0121
8.2 Diluted earnings per share 0.9668 -0.0121
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
25
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
6. Parent Company Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 958,287,224.60 48,475,539.74
Less: Operating expenses 184,949,760.26 11,661,164.07
Taxes and surtaxes 354,526,244.41 3,863,411.73
Selling expense 2,270,308.91 12,159,722.48
Administrative expense 28,040,113.83 25,269,669.06
Finance costs -12,207,197.73 -6,912,362.98
Asset impairment losses -654,008.70 -1,191,328.44
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for loss) 450,267,789.82 1,925,310.63
Including: Share of gains/losses of
1,892,487.55 1,925,310.63
associates and joint ventures
Other income
2. Operating margin (“-” for losses) 851,629,793.44 5,550,574.45
Add: Non-operating income 222,418.81 326,967.58
Including: Gains on disposal of
non-current assets
Less: Non-operating expense 5,567,710.31 19,444.98
Including: Losses on disposal of
7,343.52
non-current assets
3. Gross margin (“-” for losses) 846,284,501.94 5,858,097.05
Less: Income tax expense 99,002,966.40 1,135,503.72
4. Net margin (“-” for losses) 747,281,535.54 4,722,593.33
5. Other comprehensive income, net of
tax
5.1 Other comprehensive income that
will not be reclassified into gains and
losses
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
26
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
5.2 Other comprehensive income to
be subsequently reclassified into
gains/losses
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
5.2.2 Gains/Losses on fair value
changes of available-for-sale financial
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 747,281,535.54 4,722,593.33
7. Earnings per share
7.1 Basic earnings per share 1.2539 0.0079
7.2 Diluted earnings per share 1.2539 0.0079
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in
operating activities:
Cash generated by sale of
1,035,129,398.47 3,273,473,246.17
commodities and rendering of service
Net increase in money deposits from
customers and interbank placements
Net increase in loans from Central
Bank
Net increase in funds borrowed from
other financial institutions
Cash received as premiums of
original insurance contracts
Net cash generated by reinsurance
business
27
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of financial
assets at fair value through gains/losses
Interest, fees and commissions
received
Net increase in interbank borrowings
Net increase in funds in repurchase
business
Tax rebates received
Cash generated by other operating
27,585,392.87 27,283,040.99
activities
Subtotal of cash generated by operating
1,062,714,791.34 3,300,756,287.16
activities
Cash paid for goods and services 385,275,049.38 482,876,335.33
Net increase in loans and advances to
customers
Net increase in funds deposited in
Central Bank and interbank placements
Cash paid for claims of original
insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 247,670,285.31 243,851,267.96
Taxes paid 725,099,736.70 415,532,706.93
Cash used in other operating
59,452,567.32 57,434,437.02
activities
Subtotal of cash used in operating
1,417,497,638.71 1,199,694,747.24
activities
Net cash from operating activities -354,782,847.37 2,101,061,539.92
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments
Cash received as investment income
Net cash generated by disposal of
fixed assets, intangible assets and other 3,198.63 142,265.20
long-term assets
Net cash generated by disposal of
96,661,830.00
subsidiaries or other business units
Cash generated by other investing
activities
28
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Subtotal of cash generated by investing
96,665,028.63 142,265.20
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 1,617,463.02 4,064,786.82
assets
Cash paid for investments
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
1,617,463.02 4,064,786.82
activities
Net cash from investing activities 95,047,565.61 -3,922,521.62
3. Cash generated by or used in
financing activities:
Cash received as capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings 15,441,282.23
Cash generated by issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
15,441,282.23
activities
Repayment of borrowings 289,524,641.06
Cash paid for interest expenses and
107,246,594.16 52,824,760.80
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority interests
Cash used in other financing
96,000.00
activities
Sub-total of cash used in financing
107,246,594.16 342,445,401.86
activities
Net cash from financing activities -107,246,594.16 -327,004,119.63
4. Effect of foreign exchange rate
-2,708,821.96 1,363,567.87
changes on cash and cash equivalents
5. Net increase in cash and cash
-369,690,697.88 1,771,498,466.54
equivalents
29
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
Add: Opening balance of cash and
2,857,353,056.85 933,337,815.77
cash equivalents
6. Closing balance of cash and cash
2,487,662,358.97 2,704,836,282.31
equivalents
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in
operating activities:
Cash generated by sale of
47,725,759.96 1,957,668,910.52
commodities and rendering of service
Tax rebates received
Cash generated by other operating
851,270,259.53 1,682,954,000.92
activities
Subtotal of cash generated by operating
898,996,019.49 3,640,622,911.44
activities
Cash paid for goods and services 43,280,298.00 113,912,344.03
Cash paid to and for employees 14,505,987.13 16,523,182.29
Taxes paid 336,350,943.00 237,602,938.86
Cash used in other operating
1,042,608,255.74 1,794,283,985.56
activities
Subtotal of cash used in operating
1,436,745,483.87 2,162,322,450.74
activities
Net cash from operating activities -537,749,464.38 1,478,300,460.70
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments
Cash received as investment income 798,375,302.27
Net cash generated by disposal of
fixed assets, intangible assets and other 1,320.00
long-term assets
Net cash generated by disposal of
88,010,664.30
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
886,387,286.57
activities
Cash paid to acquire fixed assets,
166,352.55 71,716.00
intangible assets and other long-term
30
ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2017
assets
Cash paid for investments 1,000,000.00 1.00
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
1,166,352.55 71,717.00
activities
Net cash from investing activities 885,220,934.02 -71,717.00
3. Cash generated by or used in
financing activities:
Cash received as capital
contributions
Cash received as borrowings 15,441,282.23
Cash generated by issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
15,441,282.23
activities
Repayment of borrowings 422,491,189.06
Cash paid for interest expenses and
107,246,594.16 55,449,115.67
distribution of dividends or profit
Cash used in other financing
activities
Sub-total of cash used in financing
107,246,594.16 477,940,304.73
activities
Net cash from financing activities -107,246,594.16 -462,499,022.50
4. Effect of foreign exchange rate
-4,238.11 -35,796.93
changes on cash and cash equivalents
5. Net increase in cash and cash
240,220,637.37 1,015,693,924.27
equivalents
Add: Opening balance of cash and
1,566,655,340.88 296,196,656.86
cash equivalents
6. Closing balance of cash and cash
1,806,875,978.25 1,311,890,581.13
equivalents
II Auditor’s Report
Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.
31
