ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018 (Summary)
Stock Code: 000011, 200011 Stock Name: PRD, PRD-B Announcement No. 2018-27
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT
(GROUP) LTD.
INTERIM REPORT 2018 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2018 Interim Report of ShenZhen Properties & Resources Development (Group) Ltd.
(together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full
understanding of the Company’s operating results, financial condition and future development plans, investors should carefully read
the aforesaid full text, which has been disclosed together with this Summary on the media designated by the China Securities
Regulatory Commission (the “CSRC”).
Objections raised by any of the directors, supervisors or senior management against any contents in this Report or its summary:
Name Office title Objection and explanation of why
Statement of objection:
Except for the following directors, all the other directors attended in person the Board meeting for the review of this Report and its
summary.
Reason for not attending
Name Office title Proxy
meeting in person
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese versions shall prevail.
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018 (Summary)
Part II Key Corporate Information
1. Stock Profile
Stock name PRD, PRD-B Stock code 000011, 200011
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Fan Weiping
Qian Zhong and 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
Tel. 0755-82211020 0755-82211020
E-mail address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2018 H1 2017 Change (%)
Operating revenue (RMB) 825,013,984.97 1,317,146,732.43 -37.36%
Net profit attributable to the listed
82,972,527.59 364,355,770.43 -77.23%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 81,963,134.32 367,822,064.03 -77.72%
items (RMB)
Net cash generated from/used in operating
-225,591,985.81 -500,537,688.53 -54.93%
activities (RMB)
Basic earnings per share (RMB/share) 0.1392 0.6114 -77.23%
Diluted earnings per share (RMB/share) 0.1392 0.6114 -77.23%
Weighted average return on equity (%) 2.80% 14.25% -11.45%
30 June 2018 31 December 2017 Change (%)
Total assets (RMB) 4,599,956,823.31 5,393,331,548.87 -14.71%
Equity attributable to the listed company’s
2,826,287,954.15 2,921,693,794.08 -3.27%
shareholders (RMB)
3. Shareholders and Their Holdings at Period-End
Unit: share
Number of preferred
Number of ordinary shareholders 44,698 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Name of Nature of Shareholding Number of Pledged or frozen shares
Restricted shares
shareholder shareholder percentage shares Status Shares
Shenzhen
Construction
State-owned
Investment 54.33% 323,796,324 293,997,370
legal person
Holdings
Corporation
Shenzhen State-owned 9.49% 56,582,573 56,582,573
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018 (Summary)
Investment legal person
Management
Corporation
Domestic
Du Xinye 0.65% 3,880,800
natural person
Domestic
Zhou Qun 0.52% 3,115,450
natural person
Domestic
Du Yunfeng 0.39% 2,323,000
natural person
Shenzhen
Duty-Free Domestic
Commodity non-state-owne 0.29% 1,730,300 1,730,300
Enterprises Co., d legal person
Ltd.
Domestic
Yang Yaochu 0.24% 1,410,620
natural person
Wuhan
Xingkaiyuan Domestic
Electric Power non-state-owne 0.22% 1,300,000
Engineering d legal person
Co., Ltd
Domestic
Li Jing 0.20% 1,176,740
natural person
Domestic
Mai Furong 0.19% 1,130,500
natural person
The first and second principal shareholders of the Company are managed by Shenzhen
Connected or acting-in-concert
Investment Holding Corporation, the actual controlling shareholder of the Company. And the
parties among shareholders
Company does not know whether there are any connected parties or acting-in-concert parties
above
among the other 8 shareholders.
Shareholders conducting margin
N/A
trading (if any)
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue before the date of
this Report’s approval or were due but could not be redeemed in full?
No.
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018 (Summary)
Part III Operating Performance Discussion and Analysis
1. Business Overview of Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
After the 19th National Congress of the Communist Party of China, the idea that “housing is for living in, not for speculation” has
been imposed and put into effort in China’s real estate sector, and a multi-tier and multi-source housing supply system has gradually
matured, which has brought the sector into a “Bronze Age”. Meanwhile, the rental market is vibrant. It was said at a meeting of the
Political Bureau of the Communist Party of China Central Committee on 31 July 2018 that the government is determined to solve
real estate issues through adopting different policies for different cities, promoting supply and demand balance, reasonably guiding
expectations, restoring the market order, resolutely preventing housing price increases, and accelerating the formulation of
long-acting mechanisms designed to promote steady and healthy development of the real estate sector. Firstly, it has been made clear
at the meeting that new real estate tightening measures will not be the same as before. Secondly, judging from the change in
expression from “prevent housing prices from going up too fast” to “resolutely prevent housing price increases”, it can be seen that
the government has become more determined on real estate tightening. In the second half of 2018, real estate tightening measures
will be focused on maintaining a healthy market environment through correcting irregularities, improving the rental market,
accelerating the formulation of long-acting mechanisms designed to promote steady and healthy development of the real estate sector
instead of short-term tightening measures, etc. These moves will produce profound effects on the future development of the real
estate sector. A new housing concept will be promoted to emphasize that housing is for living in and discourage use of housing as a
means of investment. Stricter regulatory policies, measures and enforcement could hit real estate sales again and gradually bring the
sector into a “Bronze Age” characterized by smaller margins per house sold. And real estate developers would have to focus on
selling more houses. Meanwhile, land supply in major markets is starting to lean toward the rental market, especially toward
long-term lease buildings, low-income housing, housing with shared ownership, etc. As developers enter the long-term lease market
one after another, the rental market is expected to embrace growth opportunities.
(1) Highlights of the Company’s Major Operating Divisions
Firstly, property developments are poised for strong sales. With the positioning and decoration standards for the fully furbished
model house of the Golden Collar’s Resort determined upon quite many field visits, as well as with fruitful attempts to work with
iconic firms, the Company will try to get this property development ready for sale within this year. With respect to the Qianhai
Gangwan Garden, the marketing plan, price filing and other preparations have been completed and it will be open for sale in the
second half of this year, with great effort to be spent on achieving the sales target. Meanwhile, capitalizing on a good timing, the
Dongguan-located Songhu Langyuan has generated sales up to RMB0.16 billion for the Reporting Period. As for the Xuzhou and
Yangzhou real estate subsidiaries, they have adjusted their marketing strategies in a timely manner for faster sales.
Secondly, the property management division continued to operate healthily. Shenzhen International Trade Center Property
Management Co., Ltd. has successfully partnered up with 15 new properties in the first half of 2018, with an increment of 0.86
million square meters under its management. It has also successfully cooperated with 8 new industrial parks, which indicates a bigger
business scale. It will strive for the fulfillment of its annual objectives and tasks. In the meantime, Shenzhen Huangcheng Property
Management Co., Ltd. has successfully included a new area of 0.15 million square meters under its management. It has also been
promoting the cooperation with the Yangzhou joint venture to leverage each other’s competitive edges and grow stronger.
Finally, the rental division has great potential of growth. For the six months ended 30 June 2018, the Company’s rental subsidiaries
recorded rental income of approximately RMB34 million with an occupancy rate up to 94%. The Company is working on long-term
lease developments including the ONE39 Building, the Fumin Complex and the Chuanbujie to explore a development model of
“Long-term leases + commercial usage + offices”. It is also studying to establish a standardized operational system for long-term
lease products.
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018 (Summary)
(2) Progress of Major Ongoing Projects
A. SZPRD-Golden Collar’s Resort (located in the Shenzhen city): The project has been orderly carried forward on the basis of the
schedule of construction contract. The construction of the major structure was accomplished 5 days in advance. All the major
structures had been capped by October 2017, and interior and exterior decoration is underway.
B. SZPRD-Qianhai Gangwan (located in the Shenzhen city): House owners started to move in in December 2016. Currently,
remainder sales are underway.
C. SZPRD-Songhu Langyuan (located in the Dongguan city): In the first half of the year under review, we mainly finished the
construction of landscape architectures and preliminary inspection. Open for sale at the end of July 2015, this project is currently
undergoing remainder sales.
D. SZPRD-Hupan Yujing (located in the Yangzhou city): Currently, remainder sales are underway.
E. SZPRD-Banshan Yujing (located in the Xuzhou city): Currently, remainder sales of Phase I are underway.
More details are given as follows:
Space
Site area Floor space Time of The Company’s
Project Location available for Status
(m2) 2
(m ) completion stake (%)
sale (m2)
Qianhai Gangwan Nanshan District 19,894 98,545 63,325 Completed October 2016 100
in Shenzhen city and
commercially
available
Yangzhou Hupan Weiyang District 25,228 50,948 48,871 Completed June 2015 100
Yujing Phase I in Yangzhou city and
commercially
available
Yangzhou Hupan Weiyang District 41,331 74,267 73,019 Completed November 100
Yujing Phase II in Yangzhou city and 2017
commercially
available
Xuzhou Banshan Tongshan District 65,332 100,774 85,653 Completed November 100
Yujing Phase I in Xuzhou city and 2016
commercially
available
Xuzhou Banshan Tongshan District 31,537 28,300 ------- In December 100
Yujing Phase II in Xuzhou city preparation 2019
for
construction
Songhu Langyuan Dalang Town in 66,882 207,459 140,911 Completed July 2017 100
Dongguan city and
commercially
available
Golden Collar’s Futian District in 12,598 182,829 ------- Under March 2019 100
Resort Apartment Shenzhen city construction
Building
Fuchang Phase II Futian District in 4,574 30,500 ------- In June 2021 100
Shenzhen city preparation
for
construction
Huiyang Danshui Huiyang District in 17,700 61,950 ------- In In preparation 100
Huizhou city preparation for
for construction
construction
Note: The space of the Yangzhou Hupan Yujing project includes the parking area.
(3) Properties for Rent
Type of property Occupied space (m2) The Company’s stake (%)
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018 (Summary)
Offices 22370.4 100%
Shops 43787.3 100%
Plants 7523.95 100%
Residential units 5156.51 68.6%
Hotels 8322.56 100%
Complexes 1583.25 100%
Total 88743.97 -----
The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
Companies Engaging in Real Estate.
See “Part IV Operating Performance Discussion and Analysis”, “I Overview” of the full text of the interim report.
2. Matters Related to Financial Reporting
(1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last
Accounting Period
□ Applicable √ Not applicable
No such changes.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
□ Applicable √ Not applicable
No such changes.
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