ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.
INTERIM REPORT 2018
August 2018
1
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material
omissions therein.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Shen Xueying, head of the Company’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
(1) Market risk: The Chinese government will stick to a real estate policy featuring “houses
are for living in, not for speculating on”. It will firmly uphold the tightening objectives with
continuous effort, maintain consistent tightening measures, and prioritize the tasks of
stabilizing the real estate market and preventing the risk of a bubble. Efforts will be stepped
up to put in place the relevant long-acting mechanisms and measures. With a firm resolution
to stabilize housing prices, the government is expected to continue to roll out various
tightening measures, with possibilities of more stringent measures involving purchase and
credit restrictions and land transfer not excluded.
(2) The Company’s resources: The Company is still in face of an insufficient land bank and a
lack of growth potential. The overheated housing market has been affecting the land market
in the recent two years. Fierce competition over residential land in the first-tier and major
second-tier cities has brought about a string of new highs of land prices, which has made it a
much bigger risk for real estate developers to buy such expensive land. Meanwhile, it is also a
much bigger risk now to invest in the third- and fourth-tier cities since housing demand has
been satisfied to a certain degree while new demand was not strong.
The Company has no interim dividend plan, either in the form of cash or stock.
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.
2
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Table of Contents
Interim Report 2018...........................................................................................................................1
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 5
Part III Business Summary............................................................................................................... 8
Part IV Operating Performance Discussion and Analysis............................................................11
Part V Significant Events.................................................................................................................23
Part VI Share Changes and Shareholder Information................................................................. 29
Part VII Preferred Shares................................................................................................................34
Part VIII Directors, Supervisors and Senior Management..........................................................35
Part IX Corporate Bonds.................................................................................................................37
Part X Financial Report...................................................................................................................38
Part XI Documents Available for Reference................................................................................ 182
3
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Definitions
Term Definition
ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
consolidated subsidiaries, except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co., Ltd.
SCIHC Shenzhen Construction Investment Holdings Corporation
SIM Shenzhen Investment Management Co., Ltd.
The “Reporting Period” or “Current Period” The period from 1 January 2018 to 30 June 2018
Expressed in the Chinese currency of Renminbi, expressed in ten thousand
RMB, RMB’0,000
Renminbi
4
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name PRD, PRD-B Stock code 000011, 200011
Changed stock name (if any) N/A
Stock exchange for stock
Shenzhen Stock Exchange
listing
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 Liu Shengxiang
II 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
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
Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and
email address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2017 Annual Report.
5
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can
be found in the 2017 Annual Report.
IV 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)
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
6
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Gain or loss on disposal of non-current assets (inclusive of
-46,286.30
impairment allowance write-offs)
Non-operating income and expense other than above 1,268,102.88
Less: Income tax effects 212,423.31
Total 1,009,393.27 --
Explanation of why the Company classifies a gain/loss item as exceptional according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items, or reclassifies any exceptional item listed in the said explanatory announcement as recurrent:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
7
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part III Business Summary
I Core Business Scope of the Company in Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
The Company has 10 functioning subsidiaries in total, including 4 property development 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 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.
1. Property Development
Property Development is the primary business of the Company, operated by 4 of its subsidiaries. The following 5 property
developments are currently ongoing:
(1) Xuzhou Banshan Yujing: Won against competition on 10 February 2010, site area 96,900 ㎡ , plot ratio 0.8, total land price
RMB192 million, open for sale in December 2016 and is currently selling the remaining houses of Phase I.
(2) Dongguan Songhu Langyuan: Won on 15 July 2010, site area 66,900 ㎡, plot ratio 2.2, total land price RMB214 million, open
for sale at the end of July 2015 and is currently selling the remaining houses.
(3) Yangzhou Hupan Yujing: Won on 28 January 2011, site area 66,600 ㎡, plot ratio 1.4, total land price RMB610 million, and is
currently selling the remaining houses.
(4) Shenzhen Qianhai Gangwan Garden: Obtained in July 2011 in an asset swap promised in the share reform, site area 19,900 ㎡,
plot ratio 3.2, total land price RMB270 million, open for sale in November 2015 and is currently selling the remaining houses.
(5) Shenzhen Golden Collar’s Resort: Located at Huanggang Port, historical land, site area 12,600 ㎡ , plot ratio 10.5, total
construction area 130,000 ㎡ and decoration is currently underway.
The 5 ongoing developments above combined cover a site area of 262,800 ㎡ and a total floor area of 743,100 ㎡ , with the
available-for-sale area reaching 560,200 ㎡.
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. Property Rental
The Company has now a total floor area of approximately 81,000 ㎡ available for rental, with an occupancy rate of 94% in the first
half of the year under review.
4. 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 ㎡.
5. Catering Service
Operated by Shenzhen International Trade Center Catering Co., Ltd., with a total business area of 1,892 ㎡.
8
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
II Material Changes in Major Assets
1. Material Changes in Major Assets
Major assets Main reason for material changes
Up 0.13% from beginning amount, primarily driven by gains on joint ventures recognized at
Equity assets
equity method
Fixed assets Up 3.27% from beginning amount, primarily driven by purchase of miscellaneous office facilities
Up 44.93% from beginning amount, primarily driven by rise in property management
Accounts receivable
subsidiaries’ receivables from house owners
Down 79.37% from beginning amount, primarily driven by receipt in Reporting Period of
Other receivables
remaining payment for sale of two taxi service subsidiaries in 2017
Down 21.75% from beginning amount, primarily driven by settlement on real estate project in
Inventories
Reporting Period
Other current assets Down 77.86% from beginning amount, primarily driven by less prepaid VAT in Reporting Period
Down 2.52% from beginning amount, primarily driven by appreciation allowances of Reporting
Investment property
Period
Down 62.81% from beginning amount, primarily driven by settlement on real estate project in
Advances from customers
Reporting Period
Down 25.67% from beginning amount, primarily driven by land VAT and corporate income tax
Taxes payable
paid in Reporting Period
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any disclosure requirements for special industries?
No.
In the recent years, the Company has maintained stability in its entire business operations, especially in its main business—real estate.
Its asset size, revenue and income have kept hitting new records, which is mainly attributed to the Company’s accurate market
positioning and unique core competitiveness advantages:
First, the Company has a stable operation team, which persists in the corporate development strategy, continuously making the 12th
Five-Year Strategic Plan and the 13th Five-Year Strategic Plan and pioneering with the strategic plans as the guideline and road map,
thus ensuring the continuity of the Company’s principal policy.
Second, the Company is currently adopting a mode of two levels, Group Headquarters - City Companies for controlling its property
development projects. At the headquarters level, the group mainly manages issues such as land investment, planned operation, key
marketing nodes, above-norm plan and design and cost control, while companies in the cities are engaged in project management,
on-site marketing, under-norm on-site design and cost control. Thus, the project companies are given sufficient independence. The
9
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
group focuses on systematic management, currently having established a standardized internal operation system such as Real Estate
Handbook, etc. for the comprehensive management policy for real estate. The Company’s property control mode is being improved
and matured.
Third, the Company’s development areas are mainly in Shenzhen and its neighboring cities, thanks to the price advantage of land
obtainment costs and the rapid development of Shenzhen’s real estate market. The Company’s regional projects in Shenzhen will
bring itself with good economic profits.
Fourth, the Company has an advantage in brand and culture condensation. Over more than 30 years of development and
accumulation, the Company is highly recognized in the market by virtue of its brand value of “Shenzhen Properties & Resources”
that carries the spirit of international trade in the reform and opening up and comprehensive competence. The Company has won
multiple honor titles such as “Best 500 of China Real Estate Developers”, “Guangdong Top 500 Enterprises” and the fourth place at
the “2018 China Advanced Industrial Park Property Management Companies”.
10
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part IV Operating Performance Discussion and Analysis
I Overview
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.
(I) 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.
11
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(II) Progress of Major Ongoing Projects
1. 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.
2. SZPRD-Qianhai Gangwan (located in the Shenzhen city): House owners started to move in in December 2016. Currently,
remainder sales are underway.
3. 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.
4. SZPRD-Hupan Yujing (located in the Yangzhou city): Currently, remainder sales are underway.
5. 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
(m )
2
(m )
2
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
12
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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.
(III) Properties for Rent
Type of property Occupied space (m2) The Company’s stake (%)
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” herein.
II Analysis of Core Businesses
See “I Overview” above.
Year-on-year changes in key financial data:
Unit: RMB
H1 2018 H1 2017 Change (%) Main reason for change
Operating revenue A considerable decline in property sales
825,013,984.97 1,317,146,732.43 -37.36% revenue as a result of a decreased number of
settled properties, which were low-priced
Cost of sales 689,187,341.10 498,581,168.93 38.23% A rise in settled floor space
Deceases in sales agent commissions and
Selling expense 9,296,529.76 10,856,348.95 -14.37%
service expenditure
Changes in the scope of the consolidated
Administrative expense 43,316,443.65 52,072,280.85 -16.81%
financial statements
Finance costs -27,617,224.65 -17,763,773.52 55.47% A rise in interest income
13
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Income tax expense 26,587,343.56 103,623,313.68 -74.34% A decline in profits
Negative amounts represent net cash used.
Net cash generated from/used in
-225,591,985.81 -500,537,688.53 -54.93% The change was resulted from a decline in
operating activities
taxes paid.
The collection in the Reporting Period of the
Net cash generated from/used in
74,032,770.60 -918,825.49 8,157.33% remainder of the Company’s sales of two taxi
investing activities
service subsidiaries in 2017
Negative amounts represent net cash used.
Net cash generated from/used in
-178,767,181.68 -107,246,594.16 66.69% The change was resulted from a rise in
financing activities
dividend paid.
Negative amounts represent net cash used.
Net increase in cash and cash
-329,890,250.14 -610,313,659.77 -45.95% The change was resulted from a decline in
equivalents
taxes paid.
Sharp decreases in land VAT and other tax
provisions driven by the settlement of
Taxes and surtaxes 7,299,438.66 357,170,022.95 -97.96%
low-margin properties in the Reporting
Period
Asset impairment loss -4,757,350.92 -55,631,180.18 -91.45% A decline in reversal of valuation allowances
Net profit attributable to the Sharp drops in property sales revenue and
82,972,527.59 364,355,770.43 -77.23%
Company as parent the gross profit margin of settled properties
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.
Breakdown of core businesses:
Unit: RMB
YoY change in YoY change in
Operating Gross profit YoY change in
Cost of sales operating revenue gross profit
revenue margin cost of sales (%)
(%) margin (%)
By operating division
Property
556,291,109.54 471,544,946.84 15.23% -47.20% 60.63% -56.90%
development
Property
184,038,236.43 179,985,209.63 2.20% 16.83% 17.64% -0.68%
management
By product category
Property
556,291,109.54 471,544,946.84 15.23% -47.20% 60.63% -56.90%
developments
Property
management 184,038,236.43 179,985,209.63 2.20% 16.83% 17.64% -0.68%
services
14
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
By operating segment
Yangzhou city 483,825,340.71 414,783,310.27 14.27% 6,784.53% 6,474.44% 4.04%
Shenzhen city 131,319,520.01 83,435,487.06 36.46% -87.70% -68.33% -38.85%
Xuzhou city 78,031,557.31 62,006,488.80 20.54% -43.15% -51.61% 13.90%
Other 131,837,566.94 128,962,054.97 2.18% 24.83% 28.15% -2.53%
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of profit Exceptional or
Amount Source/Reason
before taxation recurrent
Investment Gains on joint ventures recognized at the equity
49,247.20 0.04% Recurrent
income method
Reversal of some valuation allowances as a
Asset impairments -4,757,350.92 -4.34% result of the rising prices of the Xuzhou-located Exceptional
Banshan Yujing in the Reporting Period
Non-operating
1,533,491.43 1.40% Miscellaneous penalty income Exceptional
income
Non-operating
311,674.85 0.28% Miscellaneous compensations paid Exceptional
expense
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2018 30 June 2017 Change in
As % of total As % of total percentag Reason for material change
Value Value
assets assets e (%)
The change in percentage at period-end
was mainly due to the decrease of total
assets. The decrease of ending amount
2,147,138,565. 2,259,441,557.
Monetary funds 46.68% 38.06% 8.62% compared with the same period of last
07 08
year was because the beginning surplus
capital was lower than beginning
capital of the same period of last year.
The increase of accounts receivable of
Accounts
67,064,515.20 1.46% 40,558,549.40 0.68% 0.78% proprietor by real estate management
receivable
company
15
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
1,448,191,666. 2,466,473,592.
Inventories 31.48% 41.54% -10.06% Project settlement
93 96
The change in percentage at period-end
was mainly due to the decrease of total
Investment 416,075,311.1 assets. The decrease of ending amount
9.05% 418,528,217.82 7.05% 2.00%
property 4 compared with the same period of last
year was due to the provisions for
depreciation.
Long-term equity The recognition of joint enterprises’
38,779,640.16 0.84% 38,164,704.03 0.64% 0.20%
investments income by equity method
The changes in the range of
Fixed assets 30,307,818.83 0.66% 74,177,948.81 1.25% -0.59%
consolidated financial statements
The change in percentage at period-end
was mainly due to the decrease of total
assets. The decrease of ending amount
Deferred income 393,311,262.0 compared with the same period of last
8.55% 395,789,839.43 6.67% 1.88%
tax assets 0 year was the decrease of the withheld
land increment tax to be deductible,
which reduced the recognized deferred
income tax.
432,104,006.5 The increase of city ledger of projects
Accounts payable 9.39% 353,291,549.78 5.95% 3.44%
5 funds meeting the terms of settlement.
Accounts
192,254,264.8 1,517,598,186.
received in 4.18% 25.56% -21.38% Project settlement
3 69
advance
The change in percentage at period-end
was mainly due to the decrease of total
886,485,068.6 1,073,157,332.
Taxes payable 19.27% 18.07% 1.20% assets. The decrease of ending amount
7 64
compared with the same period of last
year was due to the increase of taxes.
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
Impairment
fair-value fair-value Purchased in Sold in
Beginning allowance for
Item changes in changes Reporting Reporting Ending amount
amount Reporting
Reporting charged to Period Period
Period
Period equity
Financial assets
16
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3.
Available-for-s
3,591,209.20 3,598,765.93
ale financial
assets
Subtotal of
3,591,209.20 3,598,765.93
financial assets
Total of above 3,591,209.20 3,598,765.93
Financial
0.00 0.00
liabilities
Material changes in the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as of End of the Reporting Period
(1) As at the end of the Reporting Period, the restricted L/G deposits used by the Company amounted to
RMB12,402,160.00, which were the cash deposits paid by the subsidiary of the Company-Dongguan International
Trade Center Changsheng Property Development Co., Ltd. by entrusting the commercial bank to issue the
Commercial Housing Quality Guarantee Letter. Because the subsidiary of the Company-Dongguan International
Trade Center Changsheng Property Development Co., Ltd. was the real estate development enterprise with
provisional qualification, when handling the application of the pre-sale permit of the commercial residential
housing, it should submit the quality guarantee letter of the commercial residential housing after the liquidation
situation such as the enterprise bankruptcy and dissolution. Dongguan ITC Changsheng Real Estate Development
Co., Ltd. paid RMB12,402,160.00 cash deposits to Dongguan Dalang Branch of Bank of Communication, who
issued 9 irrecoverable commercial residential quality guarantee letter, among which the guaranty period of
RMB1,468,870.00 in 1 portion was from 30 June 2015 to 31 December 2020; the guaranty period of the rest
RMB10,933,290.00 divided into 8 portions was from 1 July 2015 to 31 December 2020.
(2) During the civil action between the Company and Shenzhen Meisi Industrial Co., Ltd. (see XIV 2, (2) A in
2017 Annual Report” herein for details), in order to protect the plants and multipurpose building in Meilin, as well
as the related land use rights, in dispute, the Company requested, on 19 December 2012, the Shenzhen
Intermediate People’s Court to seal the land and the housing properties on it stated on the original property
ownership certificates SFDZ No. 0103139 and 0103142. The Company also provided, as per the Civil Procedure
Law, its own properties—a total of 41 houses in ITC Center—as a property preservation guarantee for this case.
These houses are of a combined floor space of 8,342.24 m2, with the total carrying value being RMB47.9322
million dated 30 June 2018. This case was made the final judgment by Guangdong Higher People’s Court on 21
December 2017, among which the property with preservation guarantee is still in the process of relieving the
guarantee up to the disclosure date of this report.
V Investments Made
1. Total Investments Made
√ Applicable □ Not applicable
17
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Investments made in the Reporting Period Investments made in same period of last
+/-%
(RMB) year (RMB)
154,842,866.38 187,588,630.63 -17.46%
2. Significant Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Reason
Total for
Total
actual falling
accumul
accumula behind
Fixed-asse Investme ated
ted Source of schedule Disclosu Disclosu
Way of ts nt in the Project earnings
Project Industry investme investme or not re date re index
investment investment Reporting progress as of end
nt as of nt capital achievin (if any) (if any)
or not Period of the
end of the g
Reportin
Reporting projecte
g Period
Period d
earnings
Shenzhen Not
Golden Collar’s Built by Under complet
Real 95,033,08 533,666,7 Self-raise
Resort the Not construc 0.00 ed for
estate 1.13 34.23 d funds
Apartment Company tion settleme
Building nt
Shenzhen
Built by Self-raise Partially
Qianhai Real 3,465,163 676,755,1 2,254,54
the Not d funds + On sale carried
Gangwan real estate .00 63.00 8,300.90
Company loan forward
estate project
Dongguan
Built by Self-raise Partially
Songhu Real 42,270,12 814,140,1 1,036,25
the Not d funds + On sale carried
Langyuan real estate 2.97 22.97 7,611.02
Company loan forward
estate project
Yangzhou
Built by Partially
Hupan Yujing Real 6,444,295 993,814,2 Self-raise 806,800,
the Not On sale carried
real estate estate .03 95.03 d funds 472.24
Company forward
project
Xuzhou Built by Preparati Partially
Not Real 7,630,204 642,521,9 Self-raise 456,806,
Banshan Yujing the on for carried
18
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
real estate Company estate .25 56.02 d funds the two 236.17 forward
project phase
154,842,8 3,660,898 4,554,41
Total -- -- -- -- -- -- -- --
66.38 ,271.25 2,620.33
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Gain/Lo
Accumu
ss on Source
lated
Account fair Purchas Gain/los
Variety Initial Beginni fair Sold in of
Code of Name of ing value ed in s in Ending Account
ng value Reporti
of investm measure changes Reporti Reporti carrying investm
security security carrying changes ng
ment in ng ng value ing title
security ent cost value charged Period ent
method Reporti Period Period
to
ng funds
equity
Period
Obtaine
Availabl
Gintian d in
Domesti 400016 Fair e-for-sal
A, 3,565,8 3,591,2 3,598,7 Gintian’
c/Foreig 、 value e
Gintian 56.06 09.20 65.93 s debt
n stock 420016 method financia
B restructu
l asset
ring
3,565,8 3,591,2 3,598,7
Total -- 0.00 0.00 0.00 0.00 0.00 -- --
56.06 09.20 65.93
Disclosure date of
announcement on Board’s
consent for securities
investment
Disclosure date of
announcement on
shareholders’ meeting’s
consent for securities
investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
19
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship Main
business Registered Operating Operating
Company name with the Total assets Net assets Net profit
scope capital revenues profit
Company
Shenzhen
Development
Huangcheng 30,000,000.0 932,014,453. 153,718,027. -7,550,024.
Subsidiary and sales of 1,238,808.58 -5,803,359.73
Real Estate Co., 0 46 50 23
real estate
Ltd.
SZPRD Real
Development
Estate 30,950,000.0 51,907,619.3 47,403,674.4 -357,289.2
Subsidiary and sales of 320,035.16 -356,327.20
Development 0 8 3 8
real estate
Co., Ltd.
Shenzhen
International
Management
Trade Center 20,000,000.0 434,579,315. 70,616,680.7 222,012,230. 14,139,990
Subsidiary and leasing 10,033,364.80
Property 0 22 2 75 .45
of property
Management
Co., Ltd.
SZPRD
Yangzhou Real Development
50,000,000.0 399,669,259. 49,807,442.0 479,824,651. 62,881,561
Estate Subsidiary and sales of 47,821,170.85
0 94 3 26 .15
Development real estate
Co., Ltd.
SZPRD Xuzhou Development
50,000,000.0 411,401,452. -117,716,486 76,554,699.9 12,682,404
Dapeng Real Subsidiary and sales of 13,053,565.69
0 98 .95 7 .79
Estate real estate
20
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Development
Co., Ltd.
Dongguan ITC
Changsheng Development
20,000,000.0 392,545,724. 177,824,069. -4,527,308.
Real Estate Subsidiary and sales of -4,149,435.69
0 37 49 79
Development real estate
Co., Ltd.
Subsidiaries obtained or disposed in this Reporting Period
□ Applicable √ Not applicable
Description on the main holding and joint stock company
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2018
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end of
the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
(1) Risks in the market
The national real estate policy will adhere to the clear keynote of “Houses are for living, but not for speculation”, and insist on
unfettered control and unremitting efforts to maintain the continuity and stability of the control policies. Stabilizing the real estate
market and defusing the risk of bubbles will be the top priority, and the implementation and refinement of relevant long-term
mechanism policies will be further accelerated. The determination of the government to stabilize prices will not change, and there
will be follow-up control measures aiming at stabilizing prices, which may include the existence of control policies on purchase and
loan restrictions, land transfer and other aspects.
The Company paid close attention to market trends, studied control policies in depth, timely seized market opportunities and
launched the second phase of the Yangzhou project, the first phase of the Xuzhou project, etc. Through the promotion of the
Dongguan project and other measures, the real estate projects for sale are in smooth sales. the Company will continue to focus on
project management, further strengthen and improve real estate project operation and management capabilities, and grasp the
implementation of real estate project development plans in a timely manner to ensure that each of the under-construction real estate
development project of the Company meet the intended target successfully. At the same time, according to the actual situation of
different markets, the Company will timely adjust marketing strategies to promote project sales.
(2) Resources of the Company
The shortages of land reserves and development potential of the Company still remain. In the past two years, the fiery heat of the real
estate market was transmitted to the land market. The competition of residential land in first-tier cities and second-tier core cities was
fierce. The prices repeatedly hit new heights. The bidding costs and risks of real estate companies increased greatly, while the third-
and fourth-tier cities have faced insufficient demand for subsequent new purchases after market demand was digested to a certain
21
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
extent, and investment risks rose significantly.
In the face of a variety of factors such as the detailed control policies, intensified industry competition and lack of resources, the
Company will deepen internal reforms, strengthen market operations, and take countermeasures in business development models and
internal management. Firstly, the Company will take project expansion as the most important. It will focus on the key development
projects such as the project in Dinghu District in Zhaoqing, renewal of plants in Huiyang and Meilin. The Company will continue to
expand the market share of intensive building clusters such as the construction and operation of industrial parks, urban complex
buildings and specialty towns, and try to get more land reserves. Secondly, the Company will get involved in the long-term rental
apartment market. It will cooperate with the renovation, transformation and transfer of stock assets such as the ONE39 Building,
Longhua Complex Building Fumin Complex Building and Golden Collar’s Resort, try to start market-oriented operation projects and
complete the organization, brand introduction and formal operation of leasing company of the Group. Thirdly, the Company will
expand various forms of external cooperation. It will continue to strengthen in-depth cooperation with related companies such as
state-funded companies in Dinghu District and Etop to break the bottleneck of development and create more room for development.
22
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part V Significant Events
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Disclosure
Meeting Type participati Convened date Index to disclosed information
date
on ratio
Notice about Convening the 2017 Annual
General Meeting (No. 2018-15) and Notice
The 2017 Annual Annual General
64.03% 15 June 2018 15 June 2018 about Convening the 2017 Annual General
General Meeting Meeting
Meeting (No. 2018-19) disclosed on
www.cninfo.com.cn
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.
III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting
Period or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of CPAs Firm
Has the Interim financial report been audited?
□Yes √ No
This Interim Report is unaudited.
23
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
V Explanations Given by Board of Directors and Supervisory Committee Regarding
“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
√ Applicable □ Not applicable
There was no case where the Company and its controlling shareholders did not perform the effective judgment of the court and pay
off a large amount of due debt during the Reporting Period.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
24
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
No such cases in the Reporting Period.
XII Significant Connected Transactions
1. Connected Transactions Relevant to Routine Operations
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Connected Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Connected Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Connected Parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with connected parties for non-operating purposes.
√ Yes □ No
Receivable from connected parties:
Recovered
Capital Increase in Interest for
amount in
occupation Beginning this this Ending
Relationship this
Connected for balance Reporting Reporting balance
with the Reason Reporting Interest rate
party non-operatin (RMB’0,00 Period Period (RMB’0,00
Company Period
g purposes 0) (RMB’0,000 (RMB’0,00 0)
(RMB’0,000
(yes/no) ) 0)
)
Shenzhen
Wufang 26%
Business
Pottery & equities held
circulating No 175 175
Porcelain by the
funds
Industrial Company
Co., Ltd.
Influence on the
All were within the risks control of the Company and not influenced the operating results and the
Company’s operating
financial conditions.
results and financial
25
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
condition
Payable to connected parties:
Repaid
Increase in Interest for
amount in
Relationshi Beginning this this Ending
this
Connected party p with the Reason balance Reporting Interest rate Reporting balance
Reporting
Company (RMB’0,000) Period Period (RMB’0,000)
Period
(RMB’0,000) (RMB’0,000)
(RMB’0,000)
Shenzhen Jifa
Joint vent Intercourse
Warehouse Co., 2,930 2,930
ure funds
Ltd.
Shenzhen
Tian’an
International
Joint vent Intercourse
Building 521 521
ure funds
Property
Management
Co., Ltd.
Influence on the Company’s
All were within the risks control of the Company and not influenced the operating results and the
operating results and
financial conditions.
financial condition
5. Other Significant Connected Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII. Particulars about the Non-operating Occupation of Funds by the Controlling
Shareholder and Other Connected 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 connected parties
during the Reporting Period.
26
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
XIV. Significant Contracts and Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XV. Social Responsibilities
1. Significant Environment Protection
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China
No
The Company was not the heavily polluting business identified by the environmental protection authorities of China.
27
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
2. Targeted Measures Taken to Help People Lift Themselves Out of Poverty
The Company did not take any targeted measures to help people lift themselves out of poverty during the Reporting Period, also no
subsequent plans.
XVI. Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVII. Significant Events of Subsidiaries
□ Applicable √ Not applicable
28
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Bonus
Percentag New Bonus Percentag
Number issue from Other Subtotal Number
e (%) issues shares e (%)
profit
352,511,2 352,511,2
59.15% 0 0 0 0 0 59.15%
I. Restricted shares 23 23
1. Shares held by the State 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by 350,579,9 350,579,9
58.82% 0 0 0 0 0 58.82%
state-owned corporations 43 43
3. Shares held by other
1,931,280 0.33% 0 0 0 0 0 1,931,280 0.33%
domestic investors
Among which: Shares held
1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
by domestic corporations
Shares held
36,300 0.01% 0 0 0 0 0 36,300 0.01%
by domestic individuals
4. Shares held by other
0 0.00% 0 0 0 0 0 0 0.00%
foreign investors
Among which: Shares held
0 0.00% 0 0 0 0 0 0 0.00%
by foreign corporations
Shares held
0 0.00% 0 0 0 0 0 0 0.00%
by foreign individuals
243,467,8 243,467,8
40.85% 0 0 0 0 0 40.85%
II. Non-restricted shares 69 69
175,862,6 175,862,6
1. RMB ordinary shares 29.51% 0 0 0 0 0 29.51%
26 26
2. Domestically listed 67,605,24 67,605,24
11.34% 0 0 0 0 0 11.34%
foreign shares 3 3
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
29
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
595,979,0 595,979,0
III. Total shares 100.00% 0 0 0 0 0 100.00%
92 92
Reasons for the share changes
□ Applicable √ Not applicable
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to ordinary shareholders of the Company and
other financial indexes over the prior year and the prior period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of preference
Total number of ordinary shareholders with resumed
44,698 0
shareholders at the period-end voting rights at the period-end
(if any) (see Note 8)
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Increase/de Pledged or frozen
Shareholdi
Total shares crease Number of Number of shares
Name of Nature of ng
held at the during the restricted shares non-restricted
shareholder shareholder percentage
period-end Reporting held shares held Status Number
(%)
Period
Shenzhen State-owned 54.33% 323,796,324 0 293,997,370 29,798,954
30
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Construction legal person
Investment
Holdings
Corporation
Shenzhen
Investment State-owned
9.49% 56,582,573 0 56,582,573 0
Management legal person
Corporation
Domestic natural
Du Xinye 0.65% 3,880,800 0 0 3,880,800
person
Domestic natural
Zhou Qun 0.52% 3,115,450 0 0 3,115,450
person
Domestic natural
Du Yunfeng 0.39% 2,323,000 0 0 2,323,000
person
Shenzhen
Duty-Free Domestic
Commodity non-state-owned 0.29% 1,730,300 0 1,730,300 0
Enterprises Co., legal person
Ltd.
Domestic natural
Yang Yaochu 0.24% 1,410,620 0 0 1,410,620
person
Wuhan
Xingkaiyuan Domestic
Electric Power non-state-owned 0.22% 1,300,000 1,300,000 0 1,300,000
Engineering legal person
Co., Ltd
Domestic natural
Li Jing 0.20% 1,176,740 214,300 0 1,176,740
person
Domestic natural
Mai Furong 0.19% 1,130,500 0 0 1,130,500
person
Strategic investors or general
corporations becoming top-ten
N/A
shareholders due to placing of
new shares (if any) (see Note 3)
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 the shareholders
Company does not know whether there are any connected parties or acting-in-concert parties
above
among the other 8 shareholders.
Shareholdings of the top ten non-restricted ordinary shareholders
Name of shareholder Number of non-restricted common shares held at Type of shares
31
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
the period-end Type Number
Shenzhen Construction Investment RMB ordinary
29,798,954 29,798,954
Holdings Corporation share
RMB ordinary
Du Xinye 3,880,800 3,880,800
share
RMB ordinary
Zhou Qun 3,115,450 3,115,450
share
RMB ordinary
Du Yunfeng 2,323,000 2,323,000
share
Domestically
Yang Yaochu 1,410,620 listed foreign 1,410,620
share
Wuhan Xingkaiyuan Electric Power RMB ordinary
1,300,000 1,300,000
Engineering Co., Ltd share
Domestically
Li Jing 1,176,740 listed foreign 1,176,740
share
Domestically
Mai Furong 1,130,500 listed foreign 1,130,500
share
Domestically
Chen Liying 951,521 listed foreign 951,521
share
Domestically
Wang Hui 764,481 listed foreign 764,481
share
Connected or acting-in-concert parties
The first principal shareholder of the Company is managed by Shenzhen Investment
among the top ten non-restrictedly
Holding Corporation, the actual controlling shareholder of the Company. Other than
tradable share holders and between the
that, the Company does not know whether there are any connected parties or
top ten non-restrictedly tradable share
acting-in-concert parties among the other 9 shareholders.
holders and the top ten shareholders
Top ten ordinary shareholders conducting
securities margin trading (if any) (see N/A
Note 4)
Indicate by tick mark whether any of the top ten ordinary shareholders or the top ten non-restricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
32
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the controlling shareholder of the Company in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the Reporting Period.
33
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
34
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part VIII Directors, Supervisors and Senior Management
I Changes in Shareholdings of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There were no changes in shareholdings of directors, supervisors, and senior management in the Reporting Period. For details, see
Annual Report of 2017.
II Changes in Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Liu Shengxiang Chairman of the Board Elected 15 June 2018 General election
Wang Hangjun Director, Vice GM Elected 15 June 2018 General election
Wei Xiaodong Director Elected 15 June 2018 General election
Shen Xueying Director Elected 15 June 2018 General election
Wang Ge Director Elected 15 June 2018 General election
Zhang Shilei Director Elected 15 June 2018 General election
Yuan Hongchang Independent Director Elected 15 June 2018 General election
Mei Yonghong Independent Director Elected 15 June 2018 General election
Li Qingyuan Independent Director Elected 15 June 2018 General election
Chen Yugang Chairman of the Board Leave office 15 June 2018 Expiration of the term
Wei Zhi Director, Vice GM Leave office 15 June 2018 Expiration of the term
Liu Guangxin Director Leave office 15 June 2018 Expiration of the term
Wen Li Director Leave office 15 June 2018 Expiration of the term
Guo Liwei Director Leave office 15 June 2018 Expiration of the term
Li Jianxin Independent Director Leave office 15 June 2018 Expiration of the term
Zhang Qi Independent Director Leave office 15 June 2018 Expiration of the term
Li Qinghua Supervisor Elected 15 June 2018 General election
Gu Weimin Supervisor Elected 15 June 2018 General election
Wang Xiuyan Supervisor Leave office 15 June 2018 Expiration of the term
Zhang Gejian Supervisor Leave office 15 June 2018 Expiration of the term
Vice GM, Secretary of the
Fan Weiping Employed 15 June 2018 Nominated by Board of Directors
Board, General Counsel
35
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Vice GM, Financial
Cai Lili Employed 15 June 2018 Nominated by Board of Directors
Administrator
Li Peng Vice GM Employed 15 June 2018 Nominated by Board of Directors
Zhang Gejian Vice GM Employed 15 June 2018 Nominated by Board of Directors
Shen Xueying CFO Employed 15 June 2018 Nominated by Board of Directors
Deng Shaowu CFO left 15 June 2018 Resigned for work reasons
36
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full?
No
37
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part X Financial Report
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
30 June 2018
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 2,147,138,565.07 2,477,028,815.21
Settlement reserve
Interbank loans granted
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 67,064,515.20 46,272,600.86
Prepayments 33,041,588.11 28,149,956.60
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Interest receivable
Dividends receivable
Other receivables 18,843,587.76 91,345,782.84
38
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Financial assets purchased under
resale agreements
Inventories 1,448,191,666.93 1,850,672,044.36
Assets classified as held for sale
Current portion of non-current assets
Other current assets 2,739,221.47 12,370,820.97
Total current assets 3,717,019,144.54 4,505,840,020.84
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 3,598,765.93 3,591,209.20
Held-to-maturity investments
Long-term receivables
Long-term equity investments 38,779,640.16 38,730,392.96
Investment property 416,075,311.14 426,849,558.05
Fixed assets 30,307,818.83 29,346,901.33
Construction in progress
Engineering materials
Proceeds from disposal of fixed
assets
Productive living assets
Oil and gas assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 864,880.71 951,368.85
Deferred income tax assets 393,311,262.00 388,022,097.64
Other non-current assets
Total non-current assets 882,937,678.77 887,491,528.03
Total assets 4,599,956,823.31 5,393,331,548.87
Current liabilities:
Short-term borrowings
Borrowings from central bank
Customer deposits and deposits from
banks and other financial institutions
Interbank loans obtained
39
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 432,104,006.55 491,963,303.62
Advances from customers 192,254,264.83 516,984,711.11
Financial assets sold under
repurchase agreements
Handling charges and commissions
payable
Payroll payable 89,087,000.06 92,066,474.54
Taxes payable 886,485,068.67 1,192,587,256.66
Interest payable
Dividends payable 56,188.32 29,642.40
Other payables 119,209,930.85 122,592,357.98
Reinsurance payables
Insurance contract reserve
Payables for acting trading of
securities
Payables for underwriting of
securities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,719,196,459.28 2,416,223,746.31
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income
40
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Deferred income tax liabilities 6,654.18 8,668.15
Other non-current liabilities 53,603,668.64 54,543,253.27
Total non-current liabilities 53,610,322.82 54,551,921.42
Total liabilities 1,772,806,782.10 2,470,775,667.73
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 118,938,132.89 118,938,132.89
Less: Treasury shares
Other comprehensive income -3,696,227.06 -4,111,587.14
Specific reserve
Surplus reserves 299,569,569.96 299,569,569.96
General reserve
Retained profits 1,815,497,386.36 1,911,318,586.37
Total equity attributable to owners of
2,826,287,954.15 2,921,693,794.08
the Company as the parent
Non-controlling interests 862,087.06 862,087.06
Total owners’ equity 2,827,150,041.21 2,922,555,881.14
Total liabilities and owners’ equity 4,599,956,823.31 5,393,331,548.87
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Shen Xueying
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 1,584,060,958.18 1,754,272,751.45
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 1,396,908.79 479,462.50
41
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Prepayments 549,329.09 496,729.09
Interest receivable
Dividends receivable
Other receivables 955,783,289.40 1,128,977,669.02
Inventories 304,048,272.99 303,797,408.60
Assets classified as held for sale
Current portion of non-current assets
Other current assets 85,558.19 85,558.19
Total current assets 2,845,924,316.64 3,188,109,578.85
Non-current assets:
Available-for-sale financial assets 3,829,265.93 3,821,709.20
Held-to-maturity investments
Long-term receivables
Long-term equity investments 250,662,313.09 250,613,065.89
Investment property 327,769,993.31 336,964,573.31
Fixed assets 7,959,604.48 8,163,838.55
Construction in progress
Engineering materials
Proceeds from disposal of fixed
assets
Productive living assets
Oil and gas assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 864,880.71 951,368.85
Deferred income tax assets 191,312,382.92 191,632,218.83
Other non-current assets
Total non-current assets 782,398,440.44 792,146,774.63
Total assets 3,628,322,757.08 3,980,256,353.48
Current liabilities:
Short-term borrowings
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
42
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Notes payable
Accounts payable 116,027,139.28 119,489,366.28
Advances from customers 4,981,735.00 5,127,871.19
Payroll payable 31,017,499.62 34,296,032.66
Taxes payable 649,355,829.41 704,897,740.79
Interest payable
Dividends payable 56,188.32 29,642.40
Other payables 73,641,223.36 206,876,957.12
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 875,079,614.99 1,070,717,610.44
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 875,079,614.99 1,070,717,610.44
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 94,057,859.68 94,057,859.68
Less: Treasury shares
43
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Other comprehensive income
Specific reserve
Surplus reserves 298,912,759.52 298,912,759.52
Retained profits 1,764,293,430.89 1,920,589,031.84
Total owners’ equity 2,753,243,142.09 2,909,538,743.04
Total liabilities and owners’ equity 3,628,322,757.08 3,980,256,353.48
3. Consolidated Income Statement
Unit: RMB
Item H1 2018 H1 2017
1. Revenue 825,013,984.97 1,317,146,732.43
Including: Operating revenue 825,013,984.97 1,317,146,732.43
Interest income
Premium income
Handling charge and commission
income
2. Operating costs and expenses 716,725,177.60 845,284,867.98
Including: Cost of sales 689,187,341.10 498,581,168.93
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 7,299,438.66 357,170,022.95
Selling expense 9,296,529.76 10,856,348.95
Administrative expense 43,316,443.65 52,072,280.85
Finance costs -27,617,224.65 -17,763,773.52
Asset impairment loss -4,757,350.92 -55,631,180.18
Add: Gain on changes in fair value (“-”
for loss)
Investment income (“-” for loss) 49,247.20 1,412,812.91
Including: Share of profit or loss of 49,247.20 1,412,812.91
44
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
joint ventures and associates
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss)
Other income
3. Operating profit (“-” for loss) 108,338,054.57 473,274,677.36
Add: Non-operating income 1,533,491.43 608,155.97
Less: Non-operating expense 311,674.85 5,903,749.22
4. Profit before taxation (“-” for loss) 109,559,871.15 467,979,084.11
Less: Income tax expense 26,587,343.56 103,623,313.68
5. Net profit (“-” for net loss) 82,972,527.59 364,355,770.43
5.1 Net profit from continuing
82,972,527.59 362,280,753.95
operations (“-” for net loss)
5.2 Net profit from discontinued
2,075,016.48
operations (“-” for net loss)
Net profit attributable to owners of the
82,972,527.59 364,355,770.43
Company as the parent
Net profit attributable to
non-controlling interests
6. Other comprehensive income, net of
415,360.08 -1,557,858.56
tax
Attributable to owners of the Company
415,360.08 -1,557,858.56
as the parent
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
6.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
6.2 Items that may subsequently be
415,360.08 -1,557,858.56
reclassified to profit or loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
6.2.2 Gain/Loss on changes in fair
value of available-for-sale financial
assets
45
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
6.2.3 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.4 Effective gain/loss on cash
flow hedges
6.2.5 Differences arising from
translation of foreign
415,360.08 -1,557,858.56
currency-denominated financial
statements
6.2.6 Other
Attributable to non-controlling
interests
7. Total comprehensive income 83,387,887.67 362,797,911.87
Attributable to owners of the Company
83,387,887.67 362,797,911.87
as the parent
Attributable to non-controlling
interests
8. Earnings per share
8.1 Basic earnings per share 0.1392 0.6114
8.2 Diluted earnings per share 0.1392 0.6114
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: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Shen Xueying
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
1. Operating revenue 33,455,791.84 940,995,898.09
Less: Cost of sales 11,792,652.03 178,852,582.93
Taxes and surtaxes 2,037,017.20 353,391,182.19
Selling expense 912,834.22 2,010,949.91
Administrative expense 15,024,782.80 18,830,274.59
Finance costs -26,492,474.92 -9,769,289.38
Asset impairment loss -2,246,956.93 -654,008.70
Add: Gain on changes in fair value
46
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(“-” for loss)
Investment income (“-” for loss) 49,247.20 449,788,115.18
Including: Share of profit or loss
49,247.20 1,412,812.91
of joint ventures and associates
Asset disposal income (“-” for
loss)
Other income
2. Operating profit (“-” for loss) 32,477,184.64 848,122,321.73
Add: Non-operating income 117,516.67 137,354.81
Less: Non-operating expense 9,233.27 5,530,004.77
3. Profit before taxation (“-” for loss) 32,585,468.04 842,729,671.77
Less: Income tax expense 10,087,341.39 98,162,711.16
4. Net profit (“-” for net loss) 22,498,126.65 744,566,960.61
4.1 Net profit from continuing
22,498,126.65 729,488,994.69
operations (“-” for net loss)
4.2 Net profit from discontinued
15,077,965.92
operations (“-” for net loss)
5. Other comprehensive income, net of
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
5.1.2 Share of other
comprehensive income of investees that
will not be reclassified into profit or
loss under equity method
5.2 Items that may subsequently be
reclassified to profit or loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit or loss
under equity method
5.2.2 Gain/Loss on changes in fair
value of available-for-sale financial
assets
5.2.3 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale
financial assets
47
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
5.2.4 Effective gain/loss on cash
flow hedges
5.2.5 Differences arising from
translation of foreign
currency-denominated financial
statements
5.2.6 Other
6. Total comprehensive income 22,498,126.65 744,566,960.61
7. Earnings per share
7.1 Basic earnings per share 0.0377 1.2493
7.2 Diluted earnings per share 0.0377 1.2493
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities
568,985,528.13 654,313,106.92
and rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Tax rebates
48
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Cash generated from other operating
39,349,722.92 22,545,465.74
activities
Subtotal of cash generated from
608,335,251.05 676,858,572.66
operating activities
Payments for commodities and
242,009,085.68 266,068,343.54
services
Net increase in loans and advances to
customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 171,547,891.95 172,144,904.82
Taxes paid 386,783,731.37 694,201,173.52
Cash used in other operating
33,586,527.86 44,981,839.31
activities
Subtotal of cash used in operating
833,927,236.86 1,177,396,261.19
activities
Net cash generated from/used in
-225,591,985.81 -500,537,688.53
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestments
Investment income
Net proceeds from disposal of fixed
assets, intangible assets and other 42,583.50 2,978.00
long-lived assets
Net proceeds from disposal of
76,797,409.69
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
76,839,993.19 2,978.00
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 2,807,222.59 921,803.49
long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for acquisition of
49
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
2,807,222.59 921,803.49
activities
Net cash generated from/used in
74,032,770.60 -918,825.49
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Payments for interest and dividends 178,767,181.68 107,246,594.16
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
178,767,181.68 107,246,594.16
activities
Net cash generated from/used in
-178,767,181.68 -107,246,594.16
financing activities
4. Effect of foreign exchange rate
436,146.75 -1,610,551.59
changes on cash and cash equivalents
5. Net increase in cash and cash
-329,890,250.14 -610,313,659.77
equivalents
Add: Cash and cash equivalents,
2,464,626,655.21 2,857,353,056.85
beginning of the period
6. Cash and cash equivalents, end of the
2,134,736,405.07 2,247,039,397.08
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
50
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Proceeds from sale of commodities
34,091,919.99 29,690,910.90
and rendering of services
Tax rebates
Cash generated from other operating
138,780,669.81 701,712,992.57
activities
Subtotal of cash generated from
172,872,589.80 731,403,903.47
operating activities
Payments for commodities and
5,004,956.42 40,558,204.30
services
Cash paid to and for employees 11,594,999.25 10,970,470.99
Taxes paid 70,155,089.07 331,025,759.51
Cash used in other operating
147,334,270.95 1,038,887,842.64
activities
Subtotal of cash used in operating
234,089,315.69 1,421,442,277.44
activities
Net cash generated from/used in
-61,216,725.89 -690,038,373.97
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestments
Investment income 798,375,302.27
Net proceeds from disposal of fixed
assets, intangible assets and other 4,563.50 1,320.00
long-lived assets
Net proceeds from disposal of
70,207,999.92
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
70,212,563.42 798,376,622.27
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 443,173.00 65,194.99
long-lived assets
Payments for investments
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
443,173.00 65,194.99
activities
Net cash generated from/used in
69,769,390.42 798,311,427.28
investing activities
51
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Payments for interest and dividends 178,767,181.68 107,246,594.16
Cash used in other financing
activities
Sub-total of cash used in financing
178,767,181.68 107,246,594.16
activities
Net cash generated from/used in
-178,767,181.68 -107,246,594.16
financing activities
4. Effect of foreign exchange rate
2,723.88 -4,238.11
changes on cash and cash equivalents
5. Net increase in cash and cash
-170,211,793.27 1,022,221.04
equivalents
Add: Cash and cash equivalents,
1,754,272,751.45 1,566,655,340.88
beginning of the period
6. Cash and cash equivalents, end of the
1,584,060,958.18 1,567,677,561.92
period
7. Consolidated Statements of Changes in Owners’ Equity
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent
Other equity Non-co
Other Total
Item instruments ntrollin
Less:
Share Capital compre Specific Surplus General Retaine owners’
Prefer Perpet Treasur g
capital reserves hensive reserve reserves reserve d profits equity
red ual Other y shares interests
income
shares bonds
595,97 1,911,3 2,922,5
1. Balances as of 118,938 -4,111,5 299,569 862,087
9,092. 18,586. 55,881.
end of prior year ,132.89 87.14 ,569.96 .06
00 37 14
Add: Adjustments
for changed
52
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
accounting
policies
Adjustments for
corrections of
previous errors
Adjustments for
business
combinations
involving
enterprises under
common control
Other
adjustments
2. Balances as of 595,97 1,911,3 2,922,5
118,938 -4,111,5 299,569 862,087
beginning of the 9,092. 18,586. 55,881.
,132.89 87.14 ,569.96 .06
year 00 37 14
3. Increase/
decrease in the 415,360 -95,821, -95,405,
period (“-” for .08 200.01 839.93
decrease)
3.1 Total
415,360 82,972, 83,387,
comprehensive
.08 527.59 887.67
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-178,79 -178,79
3.3 Profit
3,727.6 3,727.6
distribution
0 0
3.3.1
53
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Appropriation to
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
-178,79 -178,79
Appropriation to
3,727.6 3,727.6
owners (or
0 0
shareholders)
3.3.4 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
595,97 1,815,4 2,827,1
4. Balances as of 118,938 -3,696,2 299,569 862,087
9,092. 97,386. 50,041.
end of the period ,132.89 27.06 ,569.96 .06
00 36 21
H1 2017
Unit: RMB
54
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
H1 2017
Equity attributable to owners of the Company as the parent
Non-co
Other equity
Other ntrollin Total
Item instruments Less:
Share Capital compre Specific Surplus General Retaine g owners’
Prefer Perpet Treasur
capital reserves hensive reserve reserves reserve d profits interest equity
red ual Other y shares
income s
shares bonds
595,97 1,441,6 2,411,2
1. Balances as of 119,951 -697,54 253,569 862,087
9,092. 32,088. 96,822.
end of prior year ,533.93 8.70 ,569.96 .06
00 56 81
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Adjustments for
business
combinations
involving
enterprises under
common control
Other
adjustments
2. Balances as of 595,97 1,441,6 2,411,2
119,951 -697,54 253,569 862,087
beginning of the 9,092. 32,088. 96,822.
,533.93 8.70 ,569.96 .06
year 00 56 81
3. Increase/
decrease in the -1,557,8 257,079 255,521
period (“-” for 58.56 ,533.87 ,675.31
decrease)
3.1 Total
-1,557,8 364,355 362,797
comprehensive
58.56 ,770.43 ,911.87
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
55
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-107,27 -107,27
3.3 Profit
6,236.5 6,236.5
distribution
6 6
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
-107,27 -107,27
Appropriation to
6,236.5 6,236.5
owners (or
6 6
shareholders)
3.3.4 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
56
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
period
3.5.2 Used
during the period
3.6 Other
595,97 1,698,7 2,666,8
4. Balances as of 119,951 -2,255,4 253,569 862,087
9,092. 11,622. 18,498.
end of the period ,533.93 07.26 ,569.96 .06
00 43 12
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2018
Unit: RMB
H1 2018
Other equity instruments Other
Less: Total
Item Share Capital comprehe Specific Surplus Retaine
Preferre Perpetu Treasury owners’
capital Other reserves nsive reserve reserves d profits
d shares al bonds shares equity
income
1,920,5
1. Balances as of 595,979, 94,057,85 298,912,7 2,909,538
89,031.
end of prior year 092.00 9.68 59.52 ,743.04
84
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of 1,920,5
595,979, 94,057,85 298,912,7 2,909,538
beginning of the 89,031.
092.00 9.68 59.52 ,743.04
year 84
3. Increase/
-156,29
decrease in the -156,295,
5,600.9
period (“-” for 600.95
5
decrease)
3.1 Total
22,498, 22,498,12
comprehensive
126.65 6.65
income
3.2 Capital
increased and
reduced by owners
57
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-178,79
3.3 Profit -178,793,
3,727.6
distribution 727.60
0
3.3.1
Appropriation to
surplus reserves
3.3.2
-178,79
Appropriation to -178,793,
3,727.6
owners (or 727.60
0
shareholders)
3.3.3 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
58
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
1,764,2
4. Balances as of 595,979, 94,057,85 298,912,7 2,753,243
93,430.
end of the period 092.00 9.68 59.52 ,142.09
89
H1 2017
Unit: RMB
H1 2017
Other equity instruments Other
Less: Total
Item Share Capital comprehe Specific Surplus Retaine
Preferre Perpetu Treasury owners’
capital Other reserves nsive reserve reserves d profits
d shares al bonds shares equity
income
1,265,0
1. Balances as of 595,979, 94,057,85 252,912,7 2,207,967
17,880.
end of prior year 092.00 9.68 59.52 ,591.77
57
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of 1,265,0
595,979, 94,057,85 252,912,7 2,207,967
beginning of the 17,880.
092.00 9.68 59.52 ,591.77
year 57
3. Increase/
decrease in the 637,290 637,290,7
period (“-” for ,724.05 24.05
decrease)
3.1 Total
744,566 744,566,9
comprehensive
,960.61 60.61
income
3.2 Capital
increased and
reduced by owners
3.2.1
59
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-107,27
3.3 Profit -107,276,
6,236.5
distribution 236.56
6
3.3.1
Appropriation to
surplus reserves
3.3.2
-107,27
Appropriation to -107,276,
6,236.5
owners (or 236.56
6
shareholders)
3.3.3 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
60
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
period
3.5.2 Used
during the period
3.6 Other
1,902,3
4. Balances as of 595,979, 94,057,85 252,912,7 2,845,258
08,604.
end of the period 092.00 9.68 59.52 ,315.82
62
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “Company” or “the
Company”) was incorporated based on the reconstruction of Shenzhen Properties & Resources Development Co.,
Ltd. after obtaining approval of ZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. The
registration number of Business License for Enterprises as Legal Person is ZQFZ No. 440301103570124. And the
credibility code for the Company after the business license reform is 91440300192174135N.
The registered capital of the Company was RMB541, 799,175 after bonus issue of shares on the basis of one share
for every existing 10 shares based on existing paid-in capital of the Company in 1996 and it changes to
RMB595,979,092 after bonus issue of shares on the basis of one share for every existing 10 shares based on
previous paid-in capital of RMB541,799,175 in 2009.
Up to 30 June 2018, the registered capital of the Company was RMB595,979,092 and the paid-in capital was
RMB595,979,092.
1. Registered office, organization form and headquarter address of the Company
Organization form: joint-stock company with limited liability
Registered office: Shenzhen Municipal, Guangdong Province, PRC
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 operate the development
of real estate; property management; buildings and the building devices maintenance, garden afforest and cleaning
service; houses and building leasing; 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
The parent company of the Company is Shenzhen Investment Holdings Co., Ltd., a solely state-funded limited
company. As a government department, Shenzhen State-owned Assets Supervision and Administration Bureau
manages 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 2nd Meeting of the 9th Board of the
Directors on 21 August 2018.
Up to the end of this Reporting Period, there were 20 subsidiaries included in the consolidation financial statement,
61
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
and for the details, please refer to X. 1 in Part X Financial Report herein.
For the changes of consolidation financial statement scope of this Reporting Period, please refer to VIII in Part X
Financial Report herein.
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 this 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:
The company and subsidiary are mainly engaged in the real estate development and sales. They have formulated several specific
accounting policies and accounting estimation on the revenue confirmation and other transactions and events according to the actual
production and operation feature and related enterprise accounting principle provisions, and it can be seen in the description in Note
V. 28 “Revenue”
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 is from January 1st to December 31st 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
62
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
sheet date, should be classified as the circulating assets or liabilities.
4. Recording Currency
The Company and the domestic subsidiaries regard the Renminbi as the recording currency. The Hong Kong
subsidiary of the Company confirms the Hong Kong dollar as its recording currency according to the major
economic environment of the currency of its office place. When compiling the financial statements, the currency
the Company adopted was the Renminbi.
5. Accounting Method of Business Combination under the Common Control and not under the Common
Control
(1) The Group adopts equity method for business combination under common control. The assets and liabilities
that the combining party obtained in a business combination shall be measured on their carrying amount in the
combined party on the combining date. The difference between the carrying amount of net assets acquired by the
combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued)
shall be adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is
adjusted respectively. The business combination costs that are directly attributable to the combination, such as
audit fees, valuation fees, and legal service fees and so on are recognized in profit or loss during the current period
when they occurred. The bonds issued for a business combination or the handling fees, commissions and other
expenses for bearing other liabilities shall be recorded in the amount of initial measurement of the bonds or other
debts. The handling fees, commissions and other expenses for the issuance of equity securities for the business
combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained
earnings shall be offset. Where a relationship between a parent company and a subsidiary company is formed due
to a business combination, the parent company shall, on the combining date, prepare consolidated financial
statements according to the accounting policy of the Company; the period of the adjustment of the compared data
of the consolidation financial statement should earlier than the later time under the control of the ultimate control
party of the combine party and the combined party.
(2) The Company adopts acquisition method for business combination not under common control. The acquirer
shall recognize the initial cost of combination under the following principles: 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.
63
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
B. In the consolidated financial statements, the share equity in the acquired entity before the date of acquisition is
recalculated upon the fair value of the equity at the date of acquisition. The balance between the fair value and
book value shall be accounted into current investment income account; when the share equity before the date of
acquisition involves with other integrated gains, such gains are transferred into investment income account of the
period when it occurred. Within the notes of financial statement, the Company shall be disclosed the fair value (on
the merger date) of the shareholdings of the bargainer hold and profits or losses recognized by the revaluation.
③ Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
occurred relating to the merger of entities are accounted into current income account when occurred; the
transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the
acquisition are accounted at the initial amount of the certificates. ④ Where 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. 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; 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 annual
financial statement up to 30 June 2018 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.
64
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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
policies.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting
period of the Group during the preparation of the consolidated financial statements, where the accounting policies
and the accounting periods are inconsistent between the Group and subsidiaries. For a subsidiary acquired from a
business combination not under the same control, the individual financial statements of the subsidiary are adjusted
based on the fair value of the identifiable net assets at the acquisition date.
(3) Statement of minority interests and profits or losses
The portion of the equity of the subsidiaries that are not owned by the parent is presented as minority interest in
the consolidated balance sheet.
The portion of the profit or loss of the subsidiaries that are not owned by the parent is presented as minority
interest in the consolidated income statement.
(4) Accounting treatment of excess losses
When the share of losses attributable to the minor shareholders has exceeded their shares in the shareholders’
equity at the beginning of term, the shareholders’ equity shall be deducted thereof.
(5) Accounting treatment on increase or decrease of the subsidiaries during this 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 this 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 this 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 this 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 this Reporting Period, revenue, expense and profit for the period from acquisition date to the year
end of this 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 this 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
65
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
shareholding ratio, and the balance between the dispose of remuneration which gained from the partly depose of
the equity investment of the subsidiaries under the situation of not losing the control right and the corresponding
shares of net assets from the subsidiaries when disposing the long-term equity investment, should both adjust the
share premium of the capital surplus of the consolidate balance sheet. If the share premium of the capital surplus
is not sufficient for adjustment, retained earning is adjusted respectively.
(6) Disposal on consolidation statement of disposing the equity step by step till lose the control right
If the each transaction of disposing the equity investment of the subsidiaries till lose the control right which
belongs to package deal, each transaction would be executed accounting treatment as a transaction of disposing
the subsidiaries that lose the control right; however, before losing the control right, for the balance between each
disposal of the remuneration and the corresponding shares of net assets of investing the subsidiary, would be
confirmed as other comprehensive benefits in the consolidate financial statement and would be transferred into the
current gains and losses of losing the control right when losing it. If not belongs to the package deal, before losing
the control right, or when losing it, should execute the accounting treatment according to the aforesaid situation of
not losing the control right to dispose party equity investment of the subsidiaries as well as according to the
accounting policy of losing the control right of the original subsidiaries.
If the regulations, conditions and its economic influences of each deal of disposing the equity investment of the
subsidiary met with following one or more kinds of situations, it indicated that the multiple transactions would
consolidate as package deal for accounting treatment: ① these transactions are formatted under the situation of
contemporary or considering of the mutual influences; ②only the entirety of these transactions could achieve a
complete commercial result; ③ the 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
66
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
arrangement, for example, the jointly owned party enjoys almost all of the output related to the joint arrangement
and the liquidation of the liabilities of the arrangement constantly depends on the support of the jointly owned
party. It’s forbidden to regard the jointly owned party which provides the liabilities for the joint arrangement as it
has the responsibility to bear the relevant liabilities. For the jointly owned party takes the responsibility to pay the
contributive obligations for the joint arrangement, not be considered to undertake the relevant liabilities related to
the arrangement. For the relevant facts and the changes of the situation leads the rights enjoyed and the liabilities
undertook amount the joint arrangement change, the Group should re-assess the category of the joint arrangement.
For the structure agreement setting various joint arrangements for achieving different activities, the Group
respectively recognizes each category of the joint arrangement.
For the details of the basis of recognizing the joint control and the accounting policies of the measurement of the
joint venture, please refer to Notes V. 14.
(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
Accounting Standard No. 8 for Business Enterprises—Asset Impairment, 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
Accounting Standard No. 8 for Business Enterprises—Asset Impairment, 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).
67
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(1) Treatment of foreign currency exchange difference
On balance sheet date, the Group accounts for monetary and non-monetary items denominated in foreign
currencies as follows: a) monetary items denominated in foreign currencies are translated at the foreign exchange
rates ruling at the balance sheet date. Foreign exchange gains and losses arising from the difference between the
balance sheet date exchange rate and the exchange rate ruling at the time of initial recognition or the exchange rate
ruling at the last balance sheet date are recognized in income statement; b) Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the current exchange rates ruling at the
transaction dates. Non-monetary items denominated in foreign currencies that are stated at fair value are translated
using the current exchange rates ruling at the dates the fair value was determined, the 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 this 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 at fair value through profit or loss
Financial assets at fair value through profit or loss, 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：
The purpose to acquire the said financial assets is mainly for selling them in the near future; 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; Being a derivative instrument, excluding the designated derivative instruments which are
effective hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative
68
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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
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 assets 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
69
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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.
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
70
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
carrying amount and the present value of estimated future cash flows.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognized, the previously recognized impairment loss of financial
asset measured at amortized cost is be reversed. The amount of the reversal is recognized in profit or loss of the
current period.
b) Available-for-sale financial assets
The Group takes the individual investment of impairment test for available-for-sale financial assets. On the
balance sheet date, it could judge whether the fair value of available-for-sale financial assets are seriously or
non-temporary decline: if the decline of the fair value of the individual available-for-sale financial assets exceeds
50% of the cost, or had continuously declined for over 12 months, should be recognized the available-for-sale
financial assets had decreased and should recognized the impairment losses according to the impairment provision
for the balance between the cost and the fair value. The cost at the period-end of available-for-sale financial assets
is the amortized cost which is initially measured according to the investment cost when receiving and is calculated
by the weighted average method when selling.
When a decline in the fair value of an available-for-sale financial asset has been recognized directly in equity, the
cumulative loss that had been recognized directly in equity is removed from equity and recognized in profit or loss
even though the financial asset has not been derecognized.
If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is
not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to
and must be settled by delivery of such an unquoted equity instrument, the amount of the impairment loss is
measured as the difference between the carrying amount of the financial asset and the present value of estimated
future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment
losses are recognized in the profit or loss of the current period.
If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the
increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss,
the impairment loss is reversed, with the amount of the reversal recognized in profit or loss of the current period.
Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available for
sale is not reversed through profit or loss. For impairment loss has been incurred on an unquoted equity
instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative
asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the impairment loss
is not reversed through profit or loss.
(3) Classification and measurement of financial liabilities
① The financial liabilities held by the Group are divided into the financial liabilities measured at fair values and
whose changes are recorded in current gains and losses and other financial liabilities.
Financial liabilities measured by fair value and its changes included in the current gains and losses, including
trading financial liabilities and the financial liabilities appointed to be measured by fair value with its changes
included in the current gains and losses of the initial recognition.
The financial liabilities meeting any of the following requirements shall be classified as transactional financial
liabilities：A. The purpose to acquire the said financial liabilities is mainly 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
71
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
quoted price in the active market, whose fair value cannot be reliably measured, and which shall be settled by
delivering the said equity instruments.
The financial liabilities meeting any of the following requirements shall be designated as financial liabilities
which are measured at their fair values and the variation of which is recorded into the profits and losses of the
current period for initial recognition: A. the designation can eliminate or significantly reduce the difference of
relevant gains and losses between recognition and measurement causing from different bases for measurement of
financial assets; B. The official written documents for risk management and investment strategies of the enterprise
have clearly stated that it shall, manage, evaluate and report to important management personnel based on the fair
value, about the financial liabilities group or the group of financial liabilities which the financial liabilities are
belong to; for the blender instruments including one or more items of derivative instruments, unless there no
significant changes of the cash flow of the blender instruments by the embedded derivatives, or the embedded
derivative instruments parentally should be stripped off from the relevant blender instruments; including the
blender instruments that embedded into the derivative instruments needed to be stripped out but failed to execute
individual measurement when acquired or on the follow-up balance sheet date.
After the Group classifies certain financial liabilities as the financial liabilities measured by fair value and
included its changes in the current gains and losses when initially recognized, should not re-classified as other
financial liabilities; other financial liabilities also should not be re-classified as the financial liabilities measured
by fair value with its changes be included in the current gains and losses.
② Financial liabilities are initially measured at fair value. For the financial liability at fair value through profit or
loss at its fair value, relevant transaction costs are recognized as expense when it incurred. For the other financial
liabilities, relevant transaction costs are recognized as costs.
③ Subsequent measurement of financial liabilities
A. The Group recognizes a financial liability at fair value through profit or loss at its fair value. A gain or loss of
change in fair value is recognized in the profit or loss of the current period.
B. Other financial liabilities are measured by amortized cost using effective interest rate.
(4) Recognition and measurement for transfer of financial assets
The Group derecognizes financial assets when the Group transfers substantially all the risks and rewards of
ownership of the financial assets. On derecognizing of a financial asset in its entirety, the difference between the
follows is recognized in profit or loss of the current period.
① the carrying amount of transferring financial assets;
② the sum of the consideration received and any cumulative gain or loss that had been recognized directly in
equity (including financial assets transferred to available for sale category).
If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognizing in its
entirety, the previous carrying amount of the larger financial asset is allocated 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.
72
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
When the Group continues to recognize a financial asset to the extent of its continuing involvement, the Group
also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis
that reflects the rights and obligations that the Group has retained.
(5) De-recognition of financial liabilities
If the whole or partly of the current obligation of the financial liabilities of the Group is relieved, should
derecognize the financial liabilities or partly of it. The Group signs an agreement with the creditors is of the
method by undertaking the new financial liabilities to replace the current financial liabilities. if the new financial
liabilities are different from the current one on the essence of contract terms, should derecognize the current
financial liabilities and recognize the new one at the same time.
If the whole or partly of the financial liabilities had derecognized, should derecognize balance between partly of
the book value and the paid consideration (including the turned out non-cash assets or the new financial liabilities)
and accrued into the current gains and losses.
(6) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
As for the financial assets and financial liabilities satisfy the following conditions at the same time, should be
listed as the net amount within the balance sheet after the mutual offset: the Group had the legal right of the offset
recognized amount and the right was executable for the moment; the Group planed to settle by net amount or at
the same time discounted the financial assets and liquidated the financial liabilities. For the transfer of the
financial assets not satisfy the de-recognition conditions, the transfer-out party should not offset the transfer
financial assets and the relevant liabilities.
11. Receivables
(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made
Individually
Judgement basis or monetary standards of provision for bad Accounts receivable with individual amount of more than 2
debts of the individually significant accounts receivable million (including 2 million).
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
Aging analysis method
which had not been impaired after the independent test, and the
73
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Company analyzed and recognized the ratio of the withdrawal of
the bad debt provision combined with the current situation and
based on the actual losses rate of the accounts receivable group
which possessed the similar credit risk characteristics divided
according to the aging phase that were the same as or similar to
the previous years)
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ 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
Independently
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
Is the Company subject to any disclosure requirements for special industries?
No
74
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(1) Classification of inventory: inventory of the Group including the finished products or commodities held in the
daily activities for sales, the unfinished products in the production process, the materials consumed in the
production process or the process of providing the labor etc. Which are specific divided as: raw materials, finished
goods, and low-value consumption goods, land use right held for real estate development, properties under
development and completed properties for sale.
(2) Reorganization of inventory: the Company confirms the inventory when meeting the following conditions at
the same time:
① the economic benefits related to the inventory possibility would flow into the enterprise;
② the cost of the inventory could be reliably calculated.
(3) Valuation method of inventories acquiring and issuing: Property inventories are measured at actual cost
incurred, comprising the borrowing cost designated for real estate development before completion of developing
properties. Completed saleable property inventories are measured using average unit area cost method. Other
kinds of inventories are measured at actual cost incurred, and when the inventories are transferred out or issued
for use, cost of the inventories is determined using weighted average cost method.
(4) Amortization method of low-value consumption goods and wrap page: the low-value consumption goods and
wrap page 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.
②The Company generally provides provision for impairment of inventory individually.
For large quantity and low value items of inventories, cost and net realizable value are determined based on
categories of inventories.
Where certain items of inventory have similar purposes or end uses and relate to the same product line produced
and marketed in the same geographical area, and therefore cannot be practicably evaluated separately from other
items in that product line, costs and net realizable values of those items may be determined on an aggregate basis.
(6) The perpetual inventory system is maintained for stock system.
13. Assets Held for Sale
(1) Confirmation criteria for assets held for sale
The Group classifies an asset into held-for-sale when its book value is mainly recovered by selling (including the
75
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
exchanges of non-monetary assets with commercial substance) instead of a non-current asset or disposal group. A
non-current asset or disposal group is classified as asset held-for-sale when it satisfies the following conditions:
① It can be sold immediately under current conditions based on the practice of selling such assets or disposal
groups in similar transactions.
② The sale is highly likely to occur, that is, the Group has already made a resolution on a sale plan and obtained
a confirmed purchase commitment, and the sale is expected to will be completed within one year. Moreover, the
sale has been approved if relevant regulations require relevant authority or regulatory authority of the Group to
approve it. A confirmed purchase commitment refers to a legally binding purchase agreement signed between the
Group and other parties. The agreement includes important terms such as transaction price, time and severe
penalties for breach of contract that make it unlikely that the agreement will be substantially adjusted or revoked.
Non-current assets or disposal groups specifically obtained by the Group for resale will be classified as
held-for-sale on the acquisition date when they meet the stipulated conditions of “expected to be sold within one
year” on the acquisition date, and may well satisfy the category of held-for-sale within a short time (which is
usually 3 months).
A disposal group refers to a group of assets that are disposed of together as a whole by sale or other means in a
transaction and the liabilities directly related to these assets transferred in the transaction. Where the asset group
or combination of asset groups to which a disposal group belongs apportions the goodwill acquired in the business
combination in accordance with the "Accounting Standards for Enterprises No. 8 - Asset Impairment", the
disposal group shall include the goodwill allocated to it.
(2) Accounting methods for assets held-for-sale
For non-current assets and disposal groups classified as held-for-sale, the Group initially measures or re-measures
the lower net amount from the book value and the fair value less the disposal expenses. If the book value is higher
than the fair value minus the net amount of the sale costs, the book value will be written down to the net amount
of fair value minus the sale costs, and the amount written down will be recognized as impairment loss of assets
and included in the current profit and loss, and provision for impairment of held-for-sale assets will be made. For
the confirmed amount of impairment loss of assets of the disposal groups held for sale, the book value of goodwill
of the disposal groups will be offset first, and then the book value of various non-current assets in the disposal
groups will be offset according to the proportions. If the net amount that the fair value of the non-current assets
held for sale on the follow-up balance sheet date minus the sale costs increases, the previous written-down amount
will be restored, and reversed to the asset impairment loss confirmed after the assets being classified as
held-for-sale. The reversed amount will be included in the current profit or loss. Impairment losses on assets
recognized prior to classification as held for sale are not reversed. If the net amount that the fair value of the
disposal groups held for sale on the follow-up balance sheet date minus the sale costs increases, the previous
written-down amount will be restored, and reversed to the asset impairment loss confirmed after the assets being
classified as held-for-sale. The reversed amount will be included in the current profit or loss. The book value of
deducted goodwill and the non-current assets applicable to the measurement of held-for-sale categories will not be
reversed if the asset impairment loss is recognized before it is classified as held for sale. For the subsequent
reversal amount of the asset impairment loss recognized by the disposal group held for sale, its book value shall
be increased proportionately to the proportion of the book value of various non-current assets measured by the
disposal group in addition to goodwill. Non-current assets held for sale or non-current assets in the disposal group
are not subject to depreciation or amortization. Interest and other expenses of liabilities in the disposal group held
for sale will be confirmed as before.
Deferred income tax assets, financial assets regulated by the “Accounting Standards for Enterprises No. 22 -
Recognition and Measurement of Financial Instruments”, investment real estate and biological assets measured at
76
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
fair value, contractual rights arising from insurance contracts, and assets generated from the employee benefits do
not apply the measurement method of the category held-for-sale. Instead, they are measured according to the
relevant standards or the corresponding accounting policies formulated by the Group. Where a disposal group
contains non-current assets that apply the measurement method of the held-for-sale category, the measurement
method for the category held-for-sale shall apply to the whole disposal group. The measurement of liabilities in
the disposal group applies relevant accounting standards.
When a non-current asset or disposal group ceases be classified as held-for-sale or a non-current asset is removed
out from the held-for-sale disposal group due to failure in meeting the classification conditions for the category of
held-for-sale, it will be measured by one of the followings whichever is lower: ① The book value before being
classified as held for sale will be adjusted according to the depreciation, amortization or impairment that would
have been recognized under the assumption that it was not classified as held for sale; ② The recoverable
amount.
14. Long-term Equity Investments
Long-term equity investments include 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:
① For long-term equity investment arising from business combination, the initial cost is recognized under the
following principles.
A. If the business combination is under the common control and the acquirer obtains long-term equity investment
in the consideration of cash, non-monetary asset exchange or bearing acquiree’s liabilities, the initial cost is the
carrying amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between
cash paid, the carrying amount of the non-monetary asset exchanged and the acquiree’s liabilities beard and the
initial cost of the long-term equity investment should be adjusted to capital surplus. If the capital surplus is not
sufficient for adjustment, retained earnings are adjusted respectively. The business combination costs that are
directly attributable to the combination, such as audit fees, valuation fees, legal service fees and so on are
recognized in profit or loss during the current period when they occurred.
If the acquirer issuing equity securities as consideration, the initial cost is the carrying amount of the proportion of
the acquiree’s owner’s equity at the acquisition date. Amount of share capital equal to the par value of the shares
issued. The difference between initial cost of the long-term equity investment and the par value of shares issued is
adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
respectively. The costs of issuing equity securities occurred in business combination such as charges of security
issuing and commissions are deducted from the premium of equity securities. If the premium is not sufficient for
deducting, retained earning is adjusted respectively.
B. If the business combination is not under the common control, the acquirer recognizes the initial cost of
combination under the following principles.
a) When business combination is achieved through a single exchange transaction, the cost of a 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;
77
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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 the Company’s own equity instruments, if
directly attributable to equity transactions, are deducted from equities.
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
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
78
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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
policies adopted by the investees are 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 from 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.
For equity investments of the Group in associates, some of which are indirectly held by the Group through venture
capital institutions, mutual funds, trust companies, investment-linked insurance funds or other similar subjects,
whether or not these subjects have significant influence over such investments, the Group measures these
indirectly held investments at their fair value and records the changes in their fair value into profits and losses, and
measures other investments adopting the equity method as per the Accounting Standards for Business Enterprises
No. 22-Recognition and Measurement of 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 Where any other investor increases its investment in a subsidiary of the Group, causing a decreased
shareholding of the Group in the subsidiary and the cease of the Group’s control over the subsidiary, but the
Group is still able to execute joint control or have significant influence over the subsidiary, the measurement
method of the said long-term equity investment of the Group in the subsidiary shall change from the cost method
to the equity method in the individual financial statements. Firstly, the difference between the share of the Group
in the increment in the subsidiary’s net assets as per the Group’s new shareholding percentage in the subsidiary
and the former book value of the said long-term equity investment associated with the shareholding decrease that
should be carried forward shall be recorded into the current profits and losses; and then the said long-term equity
investment shall be restated as per the Group’s new shareholding percentage in the subsidiary as if the equity
method had been adopted in the measurement of the said long-term equity investment since it was obtained by the
Group.
(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
79
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
finance and the operation polices of the investees, but could not control or jointly control the formulation of the
policies with the other parties.
(4) Impairment test method and withdrawal method of impairment provision
The impairment test method and the withdrawal method of impairment provision of long-term equity investment
are executed according to the accounting polices of “Long-term assets impairment” formulated by the Group.
15. Investment Real Estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
(1) Investment properties of the Company are properties held to earn rentals or for capital appreciation or both,
mainly comprising:
①Land use right which has already been rented;
②Land use right which is held for transfer out after appreciation;
③Property that has already been rented.
(2) Investment property shall be recognized as an asset when the following conditions are satisfied:
①It is probable that the future economic benefits that are associated with the investment property will flow to the
Company;
②The cost of the investment property can be measured reliably.
(3) Initial measurement
An investment property is measured initially at its cost.
①The cost of a purchased investment property comprises its purchase price, related tax expenses and any directly
attributable expenditure.
②The cost of a self-constructed investment property comprises all necessary construction expenditures incurred
before the property is ready for its intended use.
③The cost of a property acquired by other means shall be recognized according to relevant accounting standards.
(4) Subsequent measurement
After initial recognition, the Company adopts the cost model to measure its investment properties. The Company
amortizes or depreciates its investment properties measured using cost model in the same way as fixed assets and
intangible assets
If the Group had definite evidence indicated the usage of the property had changed, when transferring the
self-used real estate or the inventories as the investment real estate or transferring the investment real estate as the
self-used real estate, the book value before the transfer should be regarded as the entry value after transfer.
The Group values the investment property measured using cost model at the lower of its cost and its recoverable
amount at the end of the period. Where the cost exceeds the recoverable amount, the difference shall be
recognized as impairment loss. Once a provision for impairment loss is made, it cannot be reversed.
16. Fixed Assets
(1) Recognition Conditions
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
80
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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 Method
Category of fixed assets Depreciation method Depreciation year Salvage ratio Annual deprecation ratio
Housing and building Straight-line method 20-25 5%-10% 3.8%-4.5%
Transportation vehicle Straight-line method 5 5% 19%
Electronic and other
Straight-line method 5 5% 19%
equipments
Decoration of fixed
Straight-line method 5 20%
assets
The depreciation method of the Company’s fixed assets is straight-line depreciation. 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 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
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
81
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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
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
82
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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.
Recognition of intangible asset:
The Company recognizes an intangible asset when that intangible asset fulfills both of the following conditions:
①It is probable that the economic benefits associated with that asset will flow to the Company;
②The cost of that asset can be measured reliably.
Measurement of intangible assets
①An intangible asset is measured initially at its cost.
②Subsequent 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.
(2) Accounting Policies 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
83
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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 recovery 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 asset impairment losses had been recognized, should not be reversed in the accounting period
afterwards.
23. Amortization Method of Long-term Deferred Expenses
The Company recognizes all expenses which have occurred during the period but shall be amortized beyond one
year, such as improvement expenditures of operating leased fixed assets, as long-term deferred expenses. The
Company amortizes long-term deferred expenses using straight-line method according to relevant beneficial
periods.
24. Payroll
(1) Accounting Treatment of Short-term Compensation
Employee compensation refers to the reward or compensation of various modes provided by the Group which
wants to receive the service offering by the employees or to execute the release of the labor relationship. The
employee compensation including the short-term salary, departure benefits, demission benefits and other
long-term employee benefits. The Group provides the benefits for the spouses, children, supported families of the
employees, the members of the deceased's employees and other beneficiaries, which are also employee
compensations.
84
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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 policies of the defined contribution
plans; the for the others except for the former, should be recognized according to above accounting policies 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 Group should recognize the related obligation as a provision for liability when the obligation meets the
following conditions:
①That obligation is a present obligation of the enterprise;
②It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
③A reliable estimate can be made of the amount of the obligation.
(2) Measurement of estimated liabilities
To fulfill the present obligations, which initially measured by the best estimate of the expenditure required to
settle the liability. Where there is a continuous range of possible amounts of the expenditure required to settle the
85
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
liability, as all kinds of possibilities are at same level, the best estimate should be determined according to the
average of the lower and upper limit of the range. In other cases, the best estimate should be determined in
accordance with the following methods:
①Where the contingency involves a single item, the best estimate involves a single 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
Is the Company subject to any disclosure requirements for special industries?
No
The revenue of the Group including the commodities sales revenue, real estate sales revenues, property leasing
revenues, labor revenues and the revenues from the using of the assets of the Company by others.
(1) Commodities sales revenues
The Group had transferred the major risks and the remunerations of the ownership of the commodities to the
buyers and neither remained the continuous management right that usually related to the ownership nor executed
the efficient control of the sold commodities. As for the revenues amount and the relevant costs occurred or will
occur which could be reliable measured, should confirm the revenues of the sales of the commodities when the
relevant economic benefits would probably flow into the enterprise.
The revenues of the sales of the commodities of the Group were mainly the sales revenues of the commercial
residential buildings. The sales of the properties of the Group had executed completion acceptance that had
transferred to the buyers or be regarded as had transferred to the buyers according to the sales contacts as well as
confirmed the realization of the revenues when executing the liquidation of the sales amount of the commercial
residential buildings (the mortgage purchase way of the buildings were the receipted down payment and the bank
mortgage amount).
(2) Provide labor income
86
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
The labor income provided by the Group mainly comes from property management income, project supervision
service income and catering service income.
Property management income: the property management income is realized when the property management
service has been provided and the service fee as agreed with the owner is able to flow into the enterprise.
Other labor income: the labor income is realized when the labor service has been provided and the related
economic interest is able to flow into the enterprise and related cost is able to be reliably measured.
(3) Income from transferring asset use right
The income from transferring asset use right includes property lease income, taxi income, interest income and
other use right income.
Property lease income: the property lease income is realized by the method of straight line as agreed in the lease
contract or agreement signed with the leasee. If there are lease periods free of any rent, the lessor shall distribute
the total rent, not deducting the rent during those periods free of any rent, within the entire lease period by the
method of straight line or other reasonable means. During the periods free of any rent, the lessor shall recognize
the lease income.
Taxi income: the taxi income is recognized as the contract amount agreed under the contracting contract or
agreement signed with the contractor.
Interest income: the interest income is recognized by the duration you use the Company’s cash and the applicable
interest rate. The fee income is recognized by the charging time and method as regulated in related contract or
agreement.
Income from other use right: the income from transferring asset use right is recognized when the income amount
is able to be reliably measured and related economic interest is possible to flow into the enterprise.
29. Government Subsidies
(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to Assets
The government subsidies divides into the government subsidies related to the assets and the government
subsidies realted to the profits. The government subsidies pertinent to assets mean the government assets that are
obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways. 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, based on the basic
requirements necessary for the subsidies, the government subsidies based on long-term assets formed through
purchase and construction and other methods are regarded as government subsidies related to assets. Beyond that,
the rest are divided as the government subsidies related to income.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
② The grants will be received from government.
(2) Measurement of the government subsidies:
① If monetary grants are received, it recognized at actual received or receivable amount. If non-monetary grants
are received, it recognized at fair value, replacing with nominal amount while fair value is not reliable.
② The Capital approach for government grants, the grant is recognized as deferred income when it is acquired.
Since the related assets achieve its intended using status, the deferred income is recognized into gains and losses
by stage through reasonable and systematic methods during asset’s using period. If related assets were disposed
87
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
before using period ended, balance of undistributed deferred income shall be shifted to current gains and losses.
The Income approach for government grants, to retrieve cost 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 cost
expense or loss occurred. To retrieve cost expense or loss of the Company in current period, the government
grants shall be recorded directly in current profit and loss.
Government subsidies related to daily activities shall be recorded into other income; government subsidies that
have nothing to do with daily activities shall be recorded into non-operating income and expenses.
Policy-based discounted loan discounts are distinguished by the following two methods for accounting::
A. The government finance department allocates the discounted funds to the lending bank. If the lending bank
provides loans to the Group at a policy-based preferential interest rate, the fair value of the loan is used as the
entry value of the loan and the borrowing costs are calculated according to the actual interest rate. The difference
between the actual amount received and the fair value of the loan is confirmed as deferred income. Deferred
income is amortized by the actual interest rate in the duration of the loan to reduce the related borrowing costs.
B. When the government finance department directly allocates the interest-subsidy funds to the Group, the
corresponding discount will be used to offset the relevant borrowing costs.
④ As for the confirmed repayment of government grants should be handled respectively according to the
following situation:
A. When deferred income exists, the repayment write-downs closing balance of deferred income, and the exceed
part shall be recognized in current profit and loss;
B. When under other conditions, the repayment shall be recognized directly in current profit and loss.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Pertinent to Incomes
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. 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, based on the basic
requirements necessary for the subsidies, the government subsidies based on long-term assets formed through
purchase and construction and other methods are regarded as government subsidies related to assets. Beyond that,
the rest are divided as the government subsidies related to income.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
② The grants will be received from government.
(2) Measurement of the government subsidies:
① If monetary grants are received, it recognized at actual received or receivable amount. If non-monetary grants
are received, it recognized at fair value, replacing with nominal amount while fair value is not reliable.
② The Capital approach for government grants, the grant is recognized as deferred income when it is acquired.
Since the related assets achieve its intended using status, the deferred income is recognized into gains and losses
by stage through reasonable and systematic methods during asset’s using period. If related assets were disposed
before using period ended, balance of undistributed deferred income shall be shifted to current gains and losses.
The Income approach for government grants, to retrieve cost 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 cost
88
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
expense or loss occurred. To retrieve cost expense or loss of the Company in current period, the government
grants shall be recorded directly in current profit and loss.
Government subsidies related to daily activities shall be recorded into other income; government subsidies that
have nothing to do with daily activities shall be recorded into non-operating income and expenses.
Policy-based discounted loan discounts are distinguished by the following two methods for accounting::
A. The government finance department allocates the discounted funds to the lending bank. If the lending bank
provides loans to the Group at a policy-based preferential interest rate, the fair value of the loan is used as the
entry value of the loan and the borrowing costs are calculated according to the actual interest rate. The difference
between the actual amount received and the fair value of the loan is confirmed as deferred income. Deferred
income is amortized by the actual interest rate in the duration of the loan to reduce the related borrowing costs.
B. When the government finance department directly allocates the interest-subsidy funds to the Group, the
corresponding discount will be used to offset the relevant borrowing costs.
④ As for the confirmed repayment of government grants should be handled respectively according to the
following situation:
A. When deferred income exists, the repayment write-downs closing balance of deferred income, and the exceed
part shall be recognized in current profit and loss;
B. When under other conditions, the repayment shall be recognized directly in current profit and loss.
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Company executes the accounting treatments of the income tax by adopting the balance sheet 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.
89
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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
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.
90
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
32. Other Significant Accounting Policies and Estimates
(1) Measurement of fair value
Fair value refers to the price received from selling any asset or paid for transferring any liability in the orderly
transactions that occur on the measurement date of the market participants. The Group should consider the
characteristics of the assets or liabilities when measuring the relevant assets or liabilities by fair value; to suppose
the transactions of selling or transferring the assets on the measurement date by the market participants is the
orderly transactions under the conditions of the current market; to suppose the orderly transaction of selling or
transferring the assets is executing in the market of the relevant assets or liabilities; to suppose the transaction is
executing in the most favorable market of the relevant assets or liabilities if there is no any main market. The
Group adopts the advice used when pricing the assets or liabilities for realizing the maximum of the economy
benefits by the market participants.
The Group judges the fair value of initial recognition whether is equal to the transaction price according to the
characteristics of the relevant assets or liabilities with transaction nature etc.; if the transaction price and fair value
is not equal, should include the relevant gains or losses in the current gains and losses except for those stipulated
by other relevant ASBE.
The Group adopts the assessment technology which adapt to the current conditions with sufficient available data
and other information support, and the assessment technology mainly including the market method, equity method
and cost method. In the application of the assessment technology, the Group should prefer the relevant observable
input value and only when the relevant observable input value could not be required or required the not feasible
value, could use the not observable input value.
The input value used for the fair value measurement is divided into three levels and the first level of the input
value is initially used, then come to the second level and the third one the last. The first level input value is the
quotation acquired from the 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 transferees 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 transferees as to acquire the relevant rights and to undertake the relevant obligations as
the market participants of the s.
(2) Termination of operation
Termination of operation refers to a separately identifiable constituent part that satisfies one of the following
conditions that has been disposed of by the Company or is classified as held-for-sale:
A. This constituent part represents an independent main business or a separate main business area.
B. This constituent part is part of an associated plan that is intended to be disposed of in an independent main
business or a separate major business area.
C. This constituent part is a subsidiary that is specifically acquired for resale.
The Group lists profit and loss from continuing operations and profit and loss from terminated operations in the
91
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
consolidated income statement and profit statement respectively. For non-current assets or disposal groups held
for sale that do not meet the definition of terminated operations, the impairment loss, reversal amount and disposal
profit or loss are presented as continuing profits and losses. The operating profit or loss and disposal profit or loss
such as impairment loss and reversal amount from the terminated business is reported as operation profit or loss.
For the terminated operations for the current period, in the current financial statements, the information previously
presented as a profit or loss from continuing operations is reclassified as the profit or loss from terminated
operations of the comparable accounting period. If a non-selling disposal group that will no longer be used
satisfies the conditions for relevant components of the definition of terminated operation, it shall be reported as a
terminated operation from the date of cessation of use. If the Group loses control of a subsidiary due to the sale of
investment to the subsidiary or other reasons, and the subsidiary meets the definition of terminated operation, the
related profit and loss from the termination shall be reported in the consolidated income statement.
(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: A. the compose part could cause revenues and expenses in the daily activities; B. the management layer
could periodically evaluate the operation results of the compose part and base which to distribute the resources
and evaluate the performance; C. the Group could acquire the relevant accounting information of the financial
conditions, operation results and the cash flows of the compose part. If two or more operating segments own the
similar economy characteristics and meet with certain conditions, could be combining as an operating segment.
(4) Quality margin
According to the regulations of the construction contact, the Group should execute the retention of the quality
margin for construction organizations and should include which into the “accounts payable” and to pay according
to the actual situation and the contacts agreement after the guarantee period.
(5) Maintenance funds
The received public maintenance funds for the entrusted management of the owner from the property management
company of the Group should be included in the “non-current liabilities”, which were specially used for the
maintenance and updating for the residential common areas, common equipments and the communal facilities of
the realty management area.
33. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□ Applicable √ Not applicable
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
34. Other
Not applicable
92
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
VI Taxes
1. Main Taxes and Tax Rates
Category of tax Taxable amount Tax rate
VAT Operating revenue 3%, 5%, 6%, 11%, 17%
Urban maintenance and construction tax Turnover tax payable 1%, 7%
Enterprise income tax Taxable income 15%, 16.5%, 20%, 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Levee fee Operating revenue 0.01%
Added amount from transfer of real Four progressive levels with the tax rate
Land value appreciation tax
property ranging from 30% to 60%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Chongqing Aobo Elevator Co., Ltd. 20%
Subsidiaries registered in Hong Kong area 16.5%
Other taxpaying bodies within the consolidated scope 25%
2. Tax Preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging
category of the No. 9 from Guidance Catalogue of Industry Constructure Adjustment (Y2011), the western
industry met with the conditions should be collected the corporate income tax according to 15% of the tax rate.
The subsidiary of the Group Chongqing Shenzhen International Trade Center Property Management Co., Ltd. had
be regarded as the western enterprise of the property service by Local Taxation Bureau of Chongqing Jiulong
District on 4 May 2014, and had be collected the corporate income tax according to 15% of the tax rate from 1
January 2013.
According to the regulations of the notice of the income tax preferential policies of the small low-profit
enterprises issued by SAT of CS [2018] No. 77, from 1 January 2018 to 31 December 2020, as for those small
low-profit enterprises with the annual after-tax amount lower than RMB1 million (including RMB1 million), of
which 50% of the revenues should be included into the taxable income and should be collected the corporate
income tax according to 20% of the tax rate. The subsidiary of the Company, Chongqing Aobo Elevator Co., Ltd,
has applied to this policy since 2018, which 50% of the revenues is included into the taxable income and is
collected the corporate income tax according to 20% of the tax rate.
3. Other
Naught
93
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Funds
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 321,178.07 164,502.21
Bank deposits 2,133,299,421.62 2,463,348,038.01
Other monetary funds 13,517,965.38 13,516,274.99
Total 2,147,138,565.07 2,477,028,815.21
Of which: the total amount deposited
50,783,840.19 50,317,518.31
overseas
Other notes
RMB12,402,160.00 of the restricted L/G deposits used at the period-end was the cash deposits paid by the
subsidiary of the Company-Dongguan International Trade Center Changsheng Property Development Co., Ltd. by
entrusting the commercial bank to issue the Commercial Housing Quality Guarantee Letter. Owning the
subsidiary of the Company-Dongguan International Trade Center Changsheng Property Development Co., Ltd.
was the real estate development enterprise with provisional qualification, when handling the application of the
pre-sale permit of the commercial residential housing should submit the quality guarantee letter of the commercial
residential housing after the liquidation situation such as the enterprise bankruptcy and dissolution. The guarantee
letter was the irrepealably commercial residential quality guarantee letter, of which the guarantee period of RMB
1,468,870.00 was from 30 June 2015 to 31 December 2020 and the guarantee period of the remained RMB
10,933,290.00 was from 1 July 2015 to 31 December 2020.
2. Financial assets at fair value through profit or loss
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable
3. Derivative Financial Assets
□ Applicable √ Not applicable
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
94
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(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:
Not applicable
5. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra
Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Accounts receivable
with significant
99,466,1 99,466,1 99,466, 99,466,17
single amount with 58.05% 100.00% 66.53% 100.00%
73.89 73.89 173.89 3.89
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt 70,932,2 3,867,76 67,064,51 49,088, 2,816,177 46,272,600.
41.40% 5.45% 32.84% 5.74%
provision according 76.10 0.90 5.20 778.72 .86 86
to credit risks
95
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
characteristics
Accounts receivable
with insignificant
single amount for 942,824. 942,824. 942,824 942,824.5
0.55% 100.00% 0.63% 100.00%
which bad debt 55 55 .55 5
provision separately
accrued
171,341, 104,276, 67,064,51 149,497 103,225,1 46,272,600.
Total 100.00% 60.86% 100.00% 69.05%
274.54 759.34 5.20 ,777.16 76.30 86
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end：
√Applicable □ Not applicable
Unit: RMB
Accounts receivable Ending balance
(classified by units) Accounts receivable Bad debt provision Proportion Reason
Involved in lawsuit and
Shenzhen Jiyong
no executable property,
Properties & Resources 93,811,328.05 93,811,328.05 100.00%
and see details in Notes
Development Company
XIV. 2 of Section X
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
Poor operating
Lunan Industry
2,818,284.84 2,818,284.84 100.00% conditions, uncollectible
Corporation
for a long period
Total 99,466,173.89 99,466,173.89 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Within 1 year (including 1 year) 63,230,494.41 1,896,914.83 3.00%
Subtotal within 1 year 63,230,494.41 1,896,914.83 3.00%
1 to 2 years 4,432,516.50 443,251.65 10.00%
2 to 3 years 2,220,953.47 666,286.04 30.00%
3 to 4 years 222,554.96 111,277.48 50.00%
4 to 5 years 378,629.28 302,903.42 80.00%
Over 5 years 447,127.48 447,127.48 100.00%
96
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Total 70,932,276.10 3,867,760.90 5.45%
Notes of the basis of recognizing the group:
The basic of recognizing the group refers to Notes V. 11 of Section X of the report.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ 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 this Reporting Period was of RMB1,051,583.04; the amount of the reversed
or collected part during this Reporting Period was of RMB0.00.
Of which significant amount of the reversed or collected:
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 connected
transactions
Total -- 0.00 -- -- --
Notes of the write-off the accounts receivable:
Not applicable
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Name of units Ending balance Proportion of the Ending balance
total ending of bad debt
balance of the provision
accounts
receivable (%)
Shenzhen Jiyong Properties & Resources 93,811,328.05 54.75% 93,811,328.05
Development Company
Alibaba (China) Co., Ltd 5,040,379.23 2.94% 151,211.38
97
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Chongqing Xiyong Micro-electronics 3,033,000.38 1.77% 90,990.01
Industrial Park
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 1.66% 2,836,561.00
Aramark Customer Service Industry Co., 1,888,351.95 1.10% 56,650.56
Ltd
Total 106,609,620.61 62.22% 96,946,741.00
(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) Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 21,045,559.56 63.69% 16,414,273.12 58.31%
1 to 2 years 11,500,161.05 34.81% 11,704,985.06 41.58%
2 to 3 years 485,825.35 1.47% 20,656.62 0.07%
Over 3 years 10,042.15 0.03% 10,041.80 0.04%
Total 33,041,588.11 -- 28,149,956.60 --
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
The prepayment aging over 1 year was mainly land value increment tax prepaid according to the regulations, and its relevant items
were not liquidated for not meeting the requirements of liquidation yet.
(2) Top 5 of the Ending Balance of the Prepayment Collected according to the Prepayment Target
Name of units Ending balance Proportion of the total ending
balance of the accounts receivable
(%)
Prepayment of taxes 31,619,678.36 95.70
98
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
State Grid Chongqing Electric Power 550,000.00 1.66
Co., Ltd
Shenzhen Tianfu Fire Engineering Co., 266,000.00 0.81
Ltd
Shenzhen Hongyuanlin Computer 192,000.00 0.58
Software Co., Ltd
Shenzhen Jian’an (Group) Co., Ltd 116,000.00 0.35
Total 32,743,678.36 99.10
Other notes:
The balance of prepayment of taxes of the Company still didn’t reach the prepaid various taxes, like VAT, Urban
construction tax, and educational surtax of prepayment of real estate projects with according the recognition of
income conditions to tax law
7. Interest Receivable
(1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
(2) Significant Overdue Interest
Whether occurred
Borrower Ending balance Overdue time Reason impairment and its
judgment basis
Other notes:
8. Dividend Receivable
(1) Dividend Receivable
Unit: RMB
Item (or investees) Ending balance Beginning balance
(2) Significant Dividend Receivable Aged over 1 Year
Unit: RMB
Whether occurred
Item (or investees) Ending balance Aging Reason impairment and its
judgment basis
Other notes:
99
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
9. Other Accounts Receivable
(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra
Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Accounts receivable
with significant
21,046,8 21,046,8 21,046, 21,046,88
single amount with 36.40% 100.00% 15.94% 100.00%
88.91 88.91 888.91 8.91
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
32,093,5 13,249,9 18,843,58 105,826 14,481,06 91,345,782.
provision according 55.51% 41.29% 80.16% 13.68%
13.26 25.50 7.76 ,852.42 9.58 84
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 4,680,11 4,680,11 5,144,0 5,144,059
8.09% 100.00% 3.90% 100.00%
which bad debt 6.06 6.06 59.49 .49
provision separately
accrued
57,820,5 38,976,9 18,843,58 132,017 40,672,01 91,345,782.
Total 100.00% 67.41% 100.00% 30.81%
18.23 30.47 7.76 ,800.82 7.98 84
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 Ending balance
receivable (classified by Other accounts
Bad debt provision Withdrawal proportion Reason
units) receivable
Shenzhen Shengfeng
No executable finance
Road, Guomao Jewel & 6,980,273.01 6,980,273.01 100.00%
and difficult to recover
Gold Co., Ltd.
Shanghai Yutong Real Difficult to recover the
5,676,000.00 5,676,000.00 100.00%
estate development Co., lawsuit judgment
100
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Ltd.
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 21,046,888.91 21,046,888.91 -- --
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Within 1 year (including 1 year) 12,964,828.75 388,944.86 3.00%
Subtotal within 1 year 12,964,828.75 388,944.86 3.00%
1 to 2 years 2,969,890.57 296,989.06 10.00%
2 to 3 years 4,228,139.09 1,268,441.73 30.00%
3 to 4 years 730,050.00 365,025.00 50.00%
4 to 5 years 1,350,400.00 1,080,320.00 80.00%
Over 5 years 9,850,204.85 9,850,204.85 100.00%
Total 32,093,513.26 13,249,925.50 41.29%
Notes of the basis of recognizing the group:
The basis recognizing the group refers to Notes V. 11 of Section X of the report.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during this Reporting Period was of RMB-1,231,613.69; the amount of the
reversed or collected part during this Reporting Period was of RMB0.00.
Of which significant amount of the reversed or collected:
Unit: RMB
Name of units Reversed or collected amount Method
Total 0.00 --
The withdrawal amount of bad debt provision in current period is RMB-1,231,613.69; the exchange rate
101
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
translation for the foreign-currency loans withdrawal amount of bad debt provision receivable and
foreign-currency financial statement translation increased bad debt provision is RMB463,473.82.
(3) Particulars of the Actual Write-off Other Accounts Receivable during the Reporting Period
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 connected
transactions
Total -- 0.00 -- -- --
Notes of write-off other accounts receivable:
Not applicable
(4) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Margin 15,717,565.78 12,215,257.47
Pretty cash borrowing 2,584,760.20 1,546,769.34
Accounts receivable of the connected
1,747,264.25 1,747,264.25
companies
Accounts receivable of the non-connected
37,770,928.00 116,508,509.76
companies
Total 57,820,518.23 132,017,800.82
(5) The Top Five Other Account Receivable Classified by Debtor at Period-end
Unit: RMB
Proportion of the
total ending balance Ending balance of
Name of units Nature Ending balance Aging
of the accounts bad debt provision
receivable (%)
Shenzhen Shengfeng Accounts receivable
Road, Guomao of the non-
6,980,273.01 Over 5 years 12.07% 6,980,273.01
Jewel & Gold Co., connected
Ltd. companies
Shanghai Yutong Accounts receivable 5,676,000.00 Over 5 years 9.82% 5,676,000.00
102
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Real estate of the non-
development Co., connected
Ltd. companies
Accounts receivable
Hong Kong Yueheng
of the non-
Development Co., 3,271,837.78 Over 5 years 5.66% 3,271,837.78
connected
Ltd.
companies
Accounts receivable
Yangzhou Housing
of the non-
Loans Guarantee 2,750,000.00 1-5 years 4.76% 534,000.00
connected
Service Center
companies
Accounts receivable
Dameisha Tourism of the non-
2,576,445.69 Over 5 years 4.46% 2,576,445.69
Center connected
companies
Total -- 21,254,556.48 -- 36.76% 19,038,556.48
(6) Accounts Receivable Involved with Government Subsidies
Unit: RMB
Project of government Estimated received time,
Name of units Ending balance Ending 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:
Not applicable
10. Inventory
(1) Classification of Inventory
Unit: RMB
103
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Ending balance Beginning balance
Item Falling price Falling price
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Raw materials 1,247,032.37 495,936.21 751,096.16 1,157,601.08 506,000.68 651,600.40
Inventory good 34,453.10 34,453.10 37,870.66 37,870.66
Low-value
consumption 173,139.89 173,139.89 180,774.01 180,774.01
goods
Planned
developed 120,261,739.37 6,648,404.13 113,613,335.24 121,297,297.97 6,648,404.13 114,648,893.84
products
Developed
products in 490,807,110.18 490,807,110.18 400,891,667.55 400,891,667.55
construction
Finished
developed 849,573,639.57 6,761,107.21 842,812,532.36 1,365,998,591.00 31,737,353.10 1,334,261,237.90
products
Total 1,462,097,114.48 13,905,447.55 1,448,191,666.93 1,889,563,802.27 38,891,757.91 1,850,672,044.36
Whether the Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 4 - Listed companies engaged in seed industry and planting business
No
(2) Falling Provision of Inventory
Unit: RMB
Increased amount Decreased amount
Beginning
Item Reverse or Ending balance
balance Withdrawal Other Other
write-off
Raw materials 506,000.68 -10,064.47 495,936.21
Planned
developed 6,648,404.13 6,648,404.13
products
Finished
developed 31,737,353.10 -4,567,255.79 20,408,990.10 6,761,107.21
products
Total 38,891,757.91 -4,577,320.26 20,408,990.10 13,905,447.55
The Company made the falling provision for the finished developed products with
RMB-4,567,255.79 due to the rise of actual selling price during the Reporting Period; resold the
falling price reserves for the finished developed products with RMB20,408,990.10 due to the
settlement.
104
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(3) Amount of Borrowing Capitalization in Ending Balance of the Inventory
The ending balance of the inventory included a total amount of the capitalized borrowings of RMB24,598,914.52,
details were listed as follows:
Category Item Accumulative Beginning amount Increase Decrease Ending amount
amount
Completed Banshan Yujing I 27,205,315.95 7,207,754.95 3,158,568.33 4,049,186.62
development product
Completed Front Sea Harbor 14,633,486.15 5,031,818.17 5,031,818.17
development product Garden
Development product Golden Collar’s 3,858,872.36 3,858,872.36 3,858,872.36
in progress Resort
Completed Songhu Langyuan 30,539,392.65 4,504,890.24 4,504,890.24
development product
Completed Langqiao 83,077,702.96 4,655,259.52 4,655,259.52
development product International
Completed Hupan Yujing I 10,446,911.43 2,897,207.03 398,319.42 2,498,887.61
development product
Total 169,761,681.50 28,155,802.27 3,556,887.75 24,598,914.52
(4) Completed Unsettled Assets Formed from the Construction Contact at the Period-end
Unit: RMB
Item Amount
Other notes:
(5) Specific Details of Planned Developed Products, Developed Production in Construction, and Finished
Developed Products are as follows:
A. Planned Developed Products
Estimated Beginning Ending balance Falling price
Estimated date
Estimated date total balance reserves
Name of project of
of completion investment
commencement
(RMB’0,000)
Land of Hainan - - - 6,648,404.13 6,648,404.13 6,648,404.13
Qiongshan
Land of Fuchang II December 2018 June 2021 90,439.00 6,024,627.11 6,222,627.11
Land of Shenhui Park - - - 36,966,040.89 36,975,940.89
Banshan Yujing II December 2018 17,000.00 71,658,225.84 70,414,767.24
Total 107,439.00 121,297,297.97 120,261,739.37 6,648,404.13
B. Developed Production in Construction
105
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Date of Estimated date Estimated total Beginning balance Ending balance Falling price
Name of project
commencement of completion investment reserves
400,891,667.55 490,807,110.18
SZPRD Golden 2014.03 2019.03 1,071,390,000.0
Collar’s Resort 0
Total 1,071,390,000.0 400,891,667.55 490,807,110.18
0
C. Finished Developed Products
Project Date of Beginning balance Increase Decrease Ending balance Falling price
completio reserves
n
International Trade 1995.12 4,839,083.10 4,839,083.10
Center Plaza
Huangyuyuan A Area 2001.06 790,140.58 790,140.58
Podium Building of 1999.11 645,532.65 645,532.65
Fuchang Building
Shenzhen Properties & 2010.06 692,134.84 692,134.84
Resources Xihua Town
Shenzhen Properties & 2012.12 27,154,592.60 868,105.00 26,286,487.60
Resources Langqiao
International
Shenzhen Properties & 2015.06 99,025,705.00 12,623,544.52 86,402,160.48
Resources Hupan
Yujing Phase I
Shenzhen Properties & 2016.10 240,944,014.85 240,944,014.85
Resources Front Sea
Harbor Garden
Shenzhen Properties & 2016.11 179,738,838.08 71,932,488.66 107,806,349.42 6,761,107.21
Resources Banshan
Yujing Phase I
Shenzhen Properties & 2017.7 156,800,740.01 156,800,740.01
Resources Songhu
Langyuan
Shenzhen Properties & 2017.11 652,374,545.06 431,043,777.64 221,330,767.42
Resources Hupanyujing
Phase II
Other projects 2,993,264.23 42,964.39 3,036,228.62
Total 1,365,998,591.00 42,964.39 516,467,915.82 849,573,639.57 6,761,107.21
106
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
11. Held-for-sale Assets
Unit: RMB
Estimated disposal
Item Ending carrying value Fair value Estimated disposal time
expense
Other notes:
Not applicable
12. Non-current Assets Due within 1 Year
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
1. Original value of the assets group
(investment to Hainan Xinda and accounts 69,437,140.28 69,437,140.28
receivable) held to cancel after verification
Depreciation reserves of the assets
group (investment in Hainan Xinda and
-69,437,140.28 -69,437,140.28
accounts receivable) held to cancel after
verification
2. Original value of the assets group
(investment to Nanpeng Papermaking
21,949,664.00 21,949,664.00
and accounts receivable) held to cancel
after verification
Depreciation reserves of the assets
group (investment in Nanpeng
-21,949,664.00 -21,949,664.00
Papermaking and accounts receivable)
held to cancel after verification
3. Original value of the assets group
(investment to International Trade Industry
6,034,625.03 6,034,625.03
and accounts receivable) held to cancel
after verification
Depreciation reserves of the assets
group (investment in International Trade -6,034,625.03 -6,034,625.03
Industry and accounts receivable) held to
107
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
cancel after verification
4. Original carrying value of the assets
group (accounts receivable from Jintian
53,034,143.94 53,034,143.94
Industry) held to cancel after verification
and other accounts receivable
Bad-debt provision for assets (accounts
receivable from Jintian Industry) held to
-53,034,143.94 -53,034,143.94
cancel after verification and other accounts
receivable
5. Pre-paid VAT 2,705,408.86 12,301,387.50
6. Deducted input tax 33,812.61 69,433.47
Total 2,739,221.47 12,370,820.97
Other notes:
Note 1: The asset group to be written off (investment and receivables for Hainan Xinda), which was reported as
long-term equity and other receivables, is a asset group that was reported as other current asset - held to be
allocated to the owners of Hainan Xinda since 2014 after the bankruptcy liquidation procedures of the Company
subsidiary Hainan Xinda Development Corporation (hereinafter referred to as Hainan Xinda) were started in 2014.
On 13 February 2017, Hainan Xinda Development Corporation (hereinafter referred to as Hainan Xinda) was
declared as bankruptcy according to HZFPZ No.1-1 Ruling from Haikou Intermediate People’s Court (2014), the
Company needs to cancel the long-term equity investment and other receivables for Hainan Xinda. As the
verification process of the Company has not been completed, the asset group was reported as other current assets -
to be written off, and the list of specific assets is as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 20,000,000.00 20,000,000.00
Other accounts receivable 49,437,140.28 49,437,140.28
Total 69,437,140.28 69,437,140.28
Notes 2: Assets group held to cancel after verification (investment in Nanpeng Papermaking and accounts
receivable) were the long-term equity investment and the other accounts receivable of the original associated
enterprise-Anhui Nanpeng Papermaking Co., Ltd. which was judged by Anhui Huinan Intermediate People’s
Court that its bankruptcy proceedings were terminated in August 2017 and owning to the cancellation and
verification process had not been complete, the above assets were reported as the other current assets-assets group
held to cancel after verification. The specific assets were listed as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 13,824,000.00 13,824,000.00
Other accounts receivable 8,125,664.00 8,125,664.00
Total 21,949,664.00 21,949,664.00
Notes 3: Assets group held to cancel after verification (investment in International Trade Industry and accounts
receivable) were the long-term equity investment and the other accounts receivable of the original associated
enterprise-Shenzhen International Trade Center Industrial Development Co., Ltd. The enterprise had been written
off by the bankruptcy liquidation administrator in April 2015 and owning to the cancellation and verification
process had not been complete, the above assets were reported as the other current assets-assets group held to
108
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
cancel after verification. The specific assets were listed as follows:
Original calculation subjects Original value Depreciation reserves Net value
Long-term equity investment 3,682,972.55 3,682,972.55
Other accounts receivable 2,351,652.48 2,351,652.48
Total 6,034,625.03 6,034,625.03
Notes 4: Assets group held to cancel after verification (accounts receivable from Jintian Industry) were the other
accounts receivable from Shenzhen Jintian Industry (Group) Co., Ltd. which was judged by the court that its
reforming were planned to be completed in February 2016 and owning to the cancellation and verification process
had not been complete, the above assets were reported as the other current assets-assets group held to cancel after
verification.
14. Available-for-sale Financial Assets
(1) List of Available-for-sale Financial Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Available-for-sale equity
20,508,261.85 16,909,495.92 3,598,765.93 20,462,995.80 16,871,786.60 3,591,209.20
instruments
Measured by fair
3,598,765.93 3,598,765.93 3,591,209.20 3,591,209.20
value
Measured by cost 16,909,495.92 16,909,495.92 16,871,786.60 16,871,786.60
Total 20,508,261.85 16,909,495.92 3,598,765.93 20,462,995.80 16,871,786.60 3,591,209.20
(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 the equity
instruments/amortized
3,598,765.93 3,598,765.93
cost of the debt
instruments
Fair value 3,598,765.93 3,598,765.93
(3) Available-for-sale Financial Assets Measured by Cost at the Period-end
Unit: RMB
109
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Carrying amount Depreciation reserves Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
in in among the Reporting
investees Period
North
Machinery 3,465,000. 3,465,000. 3,465,000. 3,465,000.
12.66%
(Group) 00 00 00 00
Co., Ltd.
Guangdon
g Huayue
8,780,645. 8,780,645. 8,780,645. 8,780,645.
Real 8.47%
20 20 20 20
Estate Co.,
Ltd.
Sanya East
Travel 230,500.00 230,500.00 230,500.00 230,500.00 0.28%
Co., Ltd.
Shenshan
17,695.09 17,695.09 17,695.09 17,695.09
Co., Ltd.
Macao
Huashen
81,155.34 699.03 81,854.37 81,155.34 699.03 81,854.37 10.00%
Enterprise
Co., Ltd.
Chongqing
Guangfa
Real estate 2,462,546. 2,483,757. 2,462,546. 2,483,757.
21,211.07 21,211.07 27.25%
developme 35 42 35 42
nt Co.,
Ltd.
Saipan 1,834,244. 1,850,043. 1,834,244. 1,850,043.
15,799.22 15,799.22 30.00%
Project 62 84 62 84
16,871,786 16,909,495 16,871,786 16,909,495
Total 37,709.32 37,709.32 --
.60 .92 .60 .92
(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
available-for-sale Total
instruments liabilities instruments
financial assets
Withdrawn impairment 16,871,786.60 16,871,786.60
110
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
balance at the
period-begin
Withdrawal in the
37,709.32 37,709.32
Reporting Period
Withdrawn impairment
16,909,495.92 16,909,495.92
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
Other notes
Note 1: The Company measured the equity investment without quote in active market and fair value measured
reliably by cost. Besides, there’s no disposal planning of equity investment in the foreseeable future.
Notes 2: The reason of the changes of the long-term equity investment of Macau Huashen Investment Co., Ltd.,
Saipan Project and Chongqing Guangfa Housing Development Co., Ltd. and the impairment provision was
occurred owing to the discount of the foreign currency statement.
Notes 3: The available-for-sale financial assets measured in fair value held by the Company were based on the
final execution of The Reorganization Plan of Gintian Industry (Group) Co., Ltd, the Company received 772,717
tradable A shares, 412,123 non-tradable A shares and 447,217 B shares distributed by Gintian Industry on 26
January 2016, received 163,488 tradable A shares, 83,239 non-tradable A shares and 92,238 B shares additionally
distributed on 15 March 2017. The cost of available-for-sale financial assets was recognized based on the price
issued on the last trading date before the trading suspension of Gintian Industry (10 December 2014), RMB2.09
per A share and US$0.17 per B share.
15. Held-to-maturity Investment
(1) List of Held-to-maturity Investment
Unit: RMB
Ending balance Beginning balance
Item Bad debt Bad debt
Carrying amount Carrying value Carrying amount Carrying value
provision provision
(2) Significant Held-to-maturity Investment
Unit: RMB
Item Par value Coupon rate Actual interest rate Due date
111
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(3) Held-to-maturity Investment Reclassified in the Reporting Period
Not applicable
Other notes
Not applicable
16. Long-term Accounts Receivable
(1) List of Long-term Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Interval of
Item Carrying Bad debt Carrying Bad debt
Carrying value Carrying value discount rate
amount provision amount provision
(2) Long-term Accounts Receivable Derecognized Due to the Transfer of Financial Assets
Not applicable
(3) Amount of Assets and Liabilities Generated from the Transfer and Continuous Involvement of
Long-term Accounts Receivable
Not applicable
Other notes
Not applicable
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Beginnin Reduced Changes bonus or al of Ending of
Investees l recognize other
g balance investmen of other profits depreciati Other balance depreciati
investmen d under comprehe
t equity announce on on
t the equity nsive
d to issue reserves reserves
method income
I. Joint ventures
Jifa
Warehous 33,498,61 -236,464. 33,262,14
e Co., 2.76 43 8.33
Ltd.
Shenzhen 5,231,780 285,711.6 5,517,491
112
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Tian’an .20 3 .83
Internatio
nal
Building
Property
Managem
ent Co.,
Ltd.
38,730,39 38,779,64
Subtotal 49,247.20
2.96 0.16
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.
18,983,61 18,983,61 18,983,61
Subtotal
4.14 4.14 4.14
57,714,00 57,763,25 18,983,61
Total 49,247.20
7.10 4.30 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 carrying value
1. Beginning balance 681,598,337.33 3,885,469.40 685,483,806.73
2. Increased amount of
967,505.21 967,505.21
the period
(1) Outsourcing
(2) Transfer from
868,105.00 868,105.00
inventory\fixed
113
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
assets\construction in
progress
(3) Enterprise
combination increase
(4) Influence of the
translation of foreign
99,400.21 99,400.21
currency denominated
financial statements
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 682,565,842.54 3,885,469.40 686,451,311.94
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 255,287,168.42 3,347,080.26 258,634,248.68
2. Increased amount of
11,555,249.56 186,502.56 11,741,752.12
the period
(1) Withdrawal or
11,460,819.36 186,502.56 11,647,321.92
amortization
(2) Influence of the
translation of foreign
94,430.20 94,430.20
currency denominated
financial statements
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 266,842,417.98 3,533,582.82 270,376,000.80
III. Depreciation reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
114
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 415,723,424.56 351,886.58 416,075,311.14
2. Beginning carrying
426,311,168.91 538,389.14 426,849,558.05
value
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable √ Not applicable
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes
Not applicable
19. Fixed Assets
(1) List of Fixed Assets
Unit: RMB
Houses and Transportation Electronic and Decoration of the
Item Total
buildings equipment other equipment fixed assets
I. Original carrying
value
1. Beginning balance 92,775,910.74 9,058,794.34 15,771,409.46 4,163,727.48 121,769,842.02
2. Increased amount
46,000.76 2,034,923.15 977,318.31 3,058,242.22
of the period
(1) Purchase 2,034,923.15 977,318.31 3,012,241.46
(2) Transfer from
construction in
progress
115
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(3) Enterprise
combination increase
(4) Influence of the
translation of foreign
currency 46,000.76 46,000.76
denominated
financial statements
3. Decreased amount
1,182,690.00 765,594.19 1,948,284.19
of the period
(1) Disposal or Scrap 1,182,690.00 765,594.19 1,948,284.19
4. Ending balance 92,821,911.50 9,911,027.49 15,983,133.58 4,163,727.48 122,879,800.05
II. Accumulative
depreciation
1. Beginning balance 69,068,851.85 7,460,443.52 11,948,746.10 3,869,182.06 92,347,223.53
2. Increased amount
937,248.87 330,361.45 595,777.71 134,379.48 1,997,767.51
of the period
(1) Withdrawal 895,846.38 330,361.45 595,777.71 134,379.48 1,956,365.02
(2) Influence of the
translation of foreign
currency 41,402.49 41,402.49
denominated
financial statements
3. Decreased amount
1,123,555.50 725,171.48 1,848,726.98
of the period
(1) Disposal or Scrap 1,123,555.50 725,171.48 1,848,726.98
4. Ending balance 70,006,100.72 6,667,249.47 11,819,352.33 4,003,561.54 92,496,264.06
III. Depreciation
reserves
1. Beginning 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
116
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
4. Ending balance 75,717.16 75,717.16
IV. Carrying value
1. Ending carrying
22,815,810.78 3,243,778.02 4,088,064.09 160,165.94 30,307,818.83
value
2. Beginning
23,707,058.89 1,598,350.82 3,746,946.20 294,545.42 29,346,901.33
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulative Impairment
Item Carrying value Note
value depreciation provision
Houses and
4,059,207.77 2,468,908.74 1,590,299.03
buildings
(3) Fixed Assets Leased in by Financing Lease
Unit: RMB
Accumulative
Item Original carrying value Impairment provision Carrying value
depreciation
(4) Fixed Assets Leased out by Operation Lease
Unit: RMB
Item Ending carrying value
(5) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes
20. Construction in Progress
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Depreciation Carrying value Carrying amount Depreciation Carrying value
117
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
reserves reserves
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Proporti
which:
on of Accumul Capitaliz
amount
accumul ated ation rate
Transferr of
Beginnin Other ated amount of
Increase ed in Ending Job capitaliz Capital
Item Budget g decrease investme of interests
d amount fixed balance schedule ed resources
balance d amount nt in interest for the
assets interests
construct capitaliz Reportin
for the
ions to ation g Period
Reportin
budget
g Period
(3) List of the Withdrawal of the Impairment Provision for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Other notes
Not applicable
21. Engineering Materials
Unit: RMB
Item Ending balance Beginning balance
Other notes
Not applicable
22. Liquidation of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes
Not applicable
23. Productive Living Assets
(1) Productive Living Assets Adopted Cost Measurement Mode
□ Applicable √ Not applicable
118
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(2) Productive Living 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
Item Land use right Patent right Non-patent right Total
I. Original carrying
value
1. Beginning balance
2. Increased amount
of the period
(1) Purchase
(2) Internal R&D
(3) Business
combination increase
3. Decreased amount
of the period
(1) Disposal
4. Ending balance
II. Accumulated
amortization
1. Beginning balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased amount
of the period
(1) Disposal
119
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
4. Ending balance
III. Depreciation
reserves
1. Beginning balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased amount
of the period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
value
2. Beginning
carrying value
The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance of
intangible assets was 0.00%.
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
Other notes:
Not applicable
26. R&D Expense
Unit: RMB
Beginning Ending
Item Increase Decrease
balance balance
Other notes:
Not applicable
120
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
27. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the
invested units or Beginning
Increase Decrease Ending balance
events generating balance
goodwill
(2) Impairment Provision for Goodwill
Unit: RMB
Name of the
invested units or Beginning
Increase Decrease Ending balance
events generating balance
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 Prepaid Expense
Unit: RMB
Amortization Other decreased
Item Beginning balance Increased amount Ending balance
amount of the period amount
Facilities
reconstruction 951,368.85 86,488.14 864,880.71
expenses
Total 951,368.85 86,488.14 864,880.71
Other notes
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
121
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Provision for impairment
126,207,666.97 31,406,702.16 127,814,574.78 31,824,813.21
of assets
Internal unrealized profit 55,662,498.64 13,915,624.66 50,232,811.52 12,558,202.88
Deductible losses 532,055,652.68 133,013,913.17 325,096,396.59 81,274,099.15
Accrued land VAT 848,229,109.00 212,057,277.25 1,048,229,108.99 262,057,277.25
Estimated profit
calculated at pre-sale
11,649,315.76 2,912,328.94 1,158,823.50 289,705.88
revenue of property
enterprises
Payroll payable unpaid
21,663.28 5,415.82 71,997.16 17,999.27
but withdrawn
Total 1,573,825,906.33 393,311,262.00 1,552,603,712.54 388,022,097.64
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
The carrying value of
fixed assets was larger 26,616.72 6,654.18 34,672.60 8,668.15
than the tax basis
Total 26,616.72 6,654.18 34,672.60 8,668.15
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount of Ending balance of Mutual set-off amount of Beginning balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilities at assets or liabilities after assets and liabilities at assets or liabilities after
the period-end off-set the period-begin off-set
Deferred income tax
393,311,262.00 388,022,097.64
assets
Deferred income tax
6,654.18 8,668.15
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
122
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Deductible losses 139,139,257.42 132,145,322.40
Provision for assets impairment 217,375,870.86 241,361,068.56
Estimated profit calculated at pre-sale
8,992,112.70 72,335,705.85
revenue of property enterprises
Internal unrealized profit 4,166,377.28 15,134,932.80
Total 369,673,618.26 460,977,029.61
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Notes
Y2018 8,299,613.89 8,320,354.75 The deductible losses of 2013
Y2019 4,759,435.01 4,766,878.24 The deductible losses of 2014
Y2020 3,816,994.62 4,461,538.13 The deductible losses of 2015
Y2021 5,411,121.82 6,158,740.02 The deductible losses of 2016
Y2022 108,437,811.26 108,437,811.26 The deductible losses of 2017
Y2023 8,414,280.82 The deductible losses of 2018
Total 139,139,257.42 132,145,322.40 --
Other notes:
30. Other Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable
31. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes:
(2) List of the Short-term Borrowings Overdue but Not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was of RMBXXX, of which the significant overdue
unpaid short-term loans are as follows:
123
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Unit: RMB
Borrower Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
32. Financial Liabilities at Fair Value through Profit or Loss
Unit: RMB
Item Ending balance Beginning balance
Other notes:
33. Derivative Financial Liabilities
□ Applicable √ Not applicable
34. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMB0.00.
35. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Within 1 year (including 1 year) 167,082,363.72 210,969,598.73
1 to 2 years (including 2 years) 104,772,575.22 197,803,229.69
2 to 3 years (including 3 years) 95,150,733.19 17,921,262.66
3 to 4 years (including 4 years) 5,983,687.33 5,988,339.85
4 to 5 years (including 5 years) 5,151,480.33 5,508,792.28
Over 5 years 53,963,166.76 53,772,080.41
Total 432,104,006.55 491,963,303.62
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
The Second Construction Co., Ltd. of
81,258,600.00 Unsettled
China Construction Third Engineering
124
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Bureau
Jinchen Group Limited Company 52,305,944.28 Unsettled
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Bureau
Hunan Construction Engineering Group 12,107,087.00 Unsettled
Shenzhen Risheng Landscaping Co., Ltd. 7,418,373.63 Unsettled
Total 178,090,004.91 --
Other notes:
36. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Within 1 year (including 1 year) 180,085,004.26 278,516,155.14
1 to 2 years (including 2 years) 10,519,009.23 236,833,304.63
2 to 3 years (including 3 years) 913,707.77 898,707.77
3 to 4 years (including 4 years) 379,173.45 379,173.45
4 to 5 years (including 5 years) 7,068.10 36,216.10
Over 5 years 350,302.02 321,154.02
Total 192,254,264.83 516,984,711.11
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
The project has not met the term of
SZPRD-Qianhai Gangwan Project 4,981,735.00
settlement.
SZPRD-Dongguan Songhulangyuan The project has not met the term of
304,765.00
Project settlement.
Total 5,286,500.00 --
(3) Settled but Uncompleted Projects Formed by Construction Contracts at the Period-end
Unit: RMB
Item Amount
Other notes:
125
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Prepayment of sale of real estate projects were as follows:
Item Ending carrying Beginning carrying Estimate finished time Presale
amount amount
SZPRD-Songhu Langyuan 101,261,040.00 604,765.00 31 July 2017 93.03%
SZPRD-Hupanyujing Phase 40,290,321.00 455,923,289.00 30 November 2017 76.85%
II
SZPRD-Banshanyujing 13,125,888.00 18,346,748.00 30 November 2016 91.14%
Phase I
SZPRD-Hupan Yujing Phase 6,531,209.00 7,968,002.00 30 June 2015 80.22%
I
SZPRD-Qianhai Gangwan 4,981,735.00 4,981,735.00 30 October 2016 66.42%
Project
Total 166,190,193.00 487,824,539.00
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 91,496,562.39 154,203,032.61 156,869,174.00 88,830,421.00
II. Post-employment
benefit-defined 477,112.15 13,288,585.74 13,509,118.83 256,579.06
contribution plans
III. Termination benefits 92,800.00 950,636.23 1,043,436.23
Total 92,066,474.54 168,442,254.58 171,421,729.06 89,087,000.06
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
83,449,073.72 135,815,614.05 139,096,622.58 80,168,065.19
allowance, subsidy
2. Employee welfare 2,998,615.34 2,998,615.34
3. Social insurance 254.95 5,485,163.58 5,485,418.53
Of which: 1. Medical
4,679,707.67 4,679,707.67
insurance premiums
Work-related injury
312,648.19 312,648.19
insurance
Maternity insurance 254.95 314,169.63 314,424.58
126
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Other social security
178,638.09 178,638.09
charges
4. Housing fund 504,216.12 4,172,907.18 4,281,107.70 396,015.60
5. Labor union budget
and employee education 7,543,017.60 3,996,210.50 3,272,887.89 8,266,340.21
budget
8. Non-monetary benefits 1,734,521.96 1,734,521.96
Total 91,496,562.39 154,203,032.61 156,869,174.00 88,830,421.00
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 477,112.15 10,897,019.84 11,117,552.93 256,579.06
2. Unemployment
335,086.39 335,086.39
insurance
3. Annuity 2,056,479.51 2,056,479.51
Total 477,112.15 13,288,585.74 13,509,118.83 256,579.06
Other notes:
The current termination benefits withdrawn for severing labor relation were RMB950,636.23, the amount payable
but unpaid at the end of the reporting period was RMB0.00.
38. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 6,938,826.82 6,311,231.88
Corporate income tax 27,304,077.82 135,064,846.34
Personal income tax 960,932.60 829,379.86
Urban maintenance and construction tax 398,706.59 317,880.65
Stamp tax 2,828.90 36,803.91
Education Surcharge 180,273.34 144,949.71
Local education surtax 127,400.58 105,286.00
Land VAT 848,141,330.86 1,048,229,108.99
Property tax 2,115,100.09 1,097,050.21
Levee fee 1,395.51 1,462.07
Other 314,195.56 449,257.04
127
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Total 886,485,068.67 1,192,587,256.66
Other notes:
Note 1: Some of the Company projects did not meet the land value-added tax liquidation requirements, but the
Company has provided for a land value-added tax of RMB848,141,330.86 to reflect the Company operation
performance in comply with the relevant requirements of accounting standards and GSF [2006] No. 187 document
“Notice of the State Administration of Taxation on Issues Related to Liquidation Management of Land
Value-added Tax in Real Estate Development Enterprises”.
Note 2: The Company reports accumulative realized sales revenue of real estate development projects as income
from land tax increase, and calculated estimates deductible cost of accumulative sales area as a proportion of the
saleable area as the deductible cost of land tax increment, so as estimate the land appreciation value and the
appreciation rate of projects. Taking into account that land value-added tax may be affected by the local tax
bureau, the actual amount of payment may be higher or lower than the amount estimated on the balance sheet
date.
The estimated land value-added tax is a reasonable estimate of the land value-added tax that may be paid in the
future, which is made according to the requirements of accounting standards, the matching principle and the
principle of prudence. The estimate is the Company accounting process and has nothing to do with the Company
current tax liability.
39. Interest Payable
Unit: RMB
Item Ending balance Beginning balance
List of the significant overdue unpaid interest:
Unit: RMB
Borrower Overdue amount Overdue reasons
Other notes:
Not applicable
40. Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 56,188.32 29,642.40
Total 56,188.32 29,642.40
Other notes, including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
The dividends payable unpaid for over one year was RMB29,642.40, which was caused by the failure of contacting shareholders
when distributing dividends.
128
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
41. Other Accounts Payable
(1) Other Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Margin 36,116,574.41 35,896,553.11
Accounts payable of connected companies 34,511,011.04 34,511,011.04
Accounts payable of non-connected
38,529,359.07 40,077,862.40
companies
Others 10,052,986.33 12,106,931.43
Total 119,209,930.85 122,592,357.98
(2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Come-and-go accounts without specific
Shenzhen Jifa Warehouse Co., Ltd. 29,296,665.14
amortization period
Margin of sporadic lease 6,286,267.38 Margin within the leasing 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.,
2,380,000.00 Margin within the leasing period
LTD
Shenzhen Branch of CPIC 1,022,842.00 Margin within the leasing period
Total 44,200,120.42 --
Other notes
42. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable
43. Non-current Liabilities Due within One Year
Unit: RMB
Item Ending balance Beginning balance
129
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Other notes:
Not applicable
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Increase/decrease of the short-term bonds payable:
Unit: RMB
Amortizat
Withdraw
ion of Repayme
The al of
Bonds Issuing Issuing Beginnin premium nt in the Ending
Par value Duration current interest
name date amount g balance and Reporting balance
issue by par
depreciati Period
value
on
Other notes:
Not applicable
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes to the category of long-term borrowings:
Not applicable
Other notes, including the interval of interest rate:
Not applicable
46. Bonds Payable
(1) List of Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instrument Classified as Financial
Liabilities such as Preferred Shares and Perpetual Bonds)
Unit: RMB
130
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(3) Notes to the Conditions and Time of the Shares Transfer of the Convertible Corporate Bonds
Not applicable
(4) Notes to Other Financial Instrument Classified as Financial Liabilities
Basic situation of other financial instrument such as preferred shares and perpetual bonds outstanding at the period-end
Not applicable
Changes in financial instrument such as preferred shares and perpetual bonds outstanding at the period-end
Unit: RMB
Outstanding Period-beginning Increase Decrease Period-end
financial Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
instrument value value value value
Notes to basis for the classification of other financial instrument as financial liabilities
Not applicable
Other notes
Not applicable
47. Long-term Accounts Payable
(1) Long-term Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Other notes
Not applicable
48. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes 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
131
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Item Reporting period Same period of last year
Net 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:
Not applicable
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Not applicable
Other notes
Not applicable
49. Specific Accounts Payable
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Other notes
Not applicable
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
Not applicable
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Item involving government subsidies:
Unit: RMB
Amount Amount
recorded into recorded into Amount
Amount of Related to
Beginning non-operatin other income offset cost in Other Ending
Item newly assets/related
balance g income in in the the Reporting changes balance
subsidy income
the Reporting Reporting Period
Period Period
Other notes
132
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Not applicable
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 237,163.63 237,163.63
Housing principle fund 12,715,332.15 14,107,346.01
House warming deposit 7,361,787.56 7,220,523.83
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 27,771,951.30 27,687,597.11
Other 1,498,018.56 1,271,207.25
Total 53,603,668.64 54,543,253.27
Other notes
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning
New shares Bonus issue Ending balance
balance Bonus shares Other Subtotal
issued from profit
The sum of
595,979,092.00 595,979,092.00
shares
Other notes
54. Other Equity Instrument
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual Bond
Outstanding at the End of the Period
Not applicable
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End
of the Period
Unit: RMB
Outstanding Period-beginning Increase Decrease Period-end
financial Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
instruments value value value value
The current changes in other equity instrument and the corresponding reasons and the basis of the relevant accounting treatment
133
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Not applicable
Other notes:
Not applicable
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
38,450,087.51 38,450,087.51
(premium on stock)
Other capital reserves 80,488,045.38 80,488,045.38
Total 118,938,132.89 118,938,132.89
Other notes, including changes and reason of change:
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
Not applicable
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: recorded
in other
Attributable
comprehensive Attributable
Income to owners
income in to
Beginning before Less: of the Ending
Item prior period non-control
balance taxation in Income tax Company balance
and transferred ling
the Current expense as the
in profit or interests
Period parent after
loss in the after tax
tax
Current
Period
II. Other comprehensive income that
-3,696,22
may subsequently be reclassified to -4,111,587.14 415,360.08 415,360.08
7.06
profit or loss
Differences arising from translation
-3,696,22
of foreign currency-denominated -4,111,587.14 415,360.08 415,360.08
7.06
financial statements
134
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
-3,696,22
Total of other comprehensive income -4,111,587.14 415,360.08 415,360.08
7.06
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
Not applicable
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
299,569,569.96 299,569,569.96
reserves
Total 299,569,569.96 299,569,569.96
Notes, including changes and reason of change:
60. Retained Profits
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained profits before
1,911,318,586.37 1,441,632,088.56
adjustments
Beginning balance of retained profits after
1,911,318,586.37 1,441,632,088.56
adjustments
Add: Net profit attributable to owners of the
82,972,527.59 364,355,770.43
Company as the parent
Dividend of ordinary shares payable 178,793,727.60 107,276,236.56
Ending retained profits 1,815,497,386.36 1,698,711,622.43
List of adjustment of beginning retained profits:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.
(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.
135
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same Period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 795,673,204.34 677,352,002.41 1,292,726,904.41 488,359,574.96
Other operations 29,340,780.63 11,835,338.69 24,419,828.02 10,221,593.97
Total 825,013,984.97 689,187,341.10 1,317,146,732.43 498,581,168.93
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same Period of last year
Urban maintenance and construction tax 2,070,311.78 4,710,083.18
Education Surcharge 888,097.95 2,014,580.53
Property tax 2,175,077.03 2,437,151.74
Land use tax 281,571.20 711,891.87
Business tax 1,090,668.20 29,954,387.90
Local education surtax 592,065.31 1,343,214.98
Levee fee 6,066.73 789.40
Land VAT 315,690,830.48
Other 195,580.46 307,092.87
Total 7,299,438.66 357,170,022.95
Other notes:
The current taxes and surtaxes decreased 97.96% compared to that of the same period of last year, which was
mainly generated from the decrease of land VAT withdrawn caused by the relatively low value-added rate of
carry-forward projects in the Reporting Period.
63. Selling Expense
Unit: RMB
Item Reporting Period Same Period of last year
Employee’s remuneration 1,959,228.72 2,099,178.56
Office expenses of operating institutions 1,257,235.21 1,315,902.76
Sales agency fee, advertising expense and
4,025,656.06 5,111,763.25
general publicity expense
136
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Other 2,054,409.77 2,329,504.38
Total 9,296,529.76 10,856,348.95
Other notes:
64. Administrative Expense
Unit: RMB
Item Reporting Period Same Period of last year
Employee’s remuneration 29,151,108.54 34,585,361.42
Administrative office cost 6,013,327.64 9,101,588.30
Assets amortization and depreciation
1,473,571.76 1,739,356.66
expense
Litigation costs 101,668.21 1,042,032.19
Other 6,576,767.50 5,603,942.28
Total 43,316,443.65 52,072,280.85
Other notes:
65. Finance Costs
Unit: RMB
Item Reporting Period Same Period of last year
Interest expense
Less: Interest income 28,372,895.58 18,393,351.08
Foreign exchange gains or losses 434,629.66 144,567.09
Other 321,041.27 485,010.47
Total -27,617,224.65 -17,763,773.52
Other notes:
The current interest income of financial expenses increased 55.47% compared to that of the same period of last
period, which was mainly generated from the increase of fixed term deposit and seven-day notice deposit.
66. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same Period of last year
I. Bad debt loss -180,030.66 776,978.24
II. Inventory falling price loss -4,577,320.26 -55,783,723.64
XIV. Other -624,434.78
Total -4,757,350.92 -55,631,180.18
137
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Other notes:
67. Gain on 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
49,247.20 1,412,812.91
accounted by equity method
Total 49,247.20 1,412,812.91
Other notes:
The current investment incom decrease 96.51% compared to that of the same period of last year, which was mainly caused by the
decrease in realized income of joint ventures.
69. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
70. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
71. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Reporting Period Same Period of last year
non-recurring profit or loss
Total income from scrap of
5,171.33 23,539.00 5,171.33
non-current assets
Income from Renting security
1,528,320.10 584,616.97 1,528,320.10
deposit for breach of contracts
Total 1,533,491.43 608,155.97 1,533,491.43
Government subsidies recorded into current profit or loss
138
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Unit: RMB
Whether
influence the Special Related to
Distribution Distribution Reporting Same period
Item Nature profits or subsidy or assets/related
entity reason Period of last year
losses of the not income
year or not
Other notes:
72. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same Period of last year
non-recurring profit or loss
Total losses from scrap of
51,457.63 13,282.17 51,457.63
non-current assets
Penalty and overdue payment 12,367.88 20,007.28 12,367.88
Compensations 5,819,228.52
Other 247,849.34 51,231.25 247,849.34
Total 311,674.85 5,903,749.22 311,674.85
Other notes:
73. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same Period of last year
Current income tax expense 31,828,441.73 123,419,468.08
Deferred income tax expense -5,241,098.17 -19,796,154.40
Total 26,587,343.56 103,623,313.68
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 109,559,871.15
Current income tax expense accounted at statutory/applicable tax
27,389,967.79
rate
Influence of applying different tax rates by subsidiaries 250,407.47
139
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Influence of income tax before adjustment 2,907,048.37
Influence of non-taxable income 0.00
Influence of not deductable costs, expenses and losses 180,869.20
Influence of deductable loss of unrecognized deferred income tax
-4,203,288.76
assets in prior period
Influence of deductable temporary difference or deductable
losses of unrecognized deferred income tax in the Reporting 62,339.49
Period
Income tax expense 26,587,343.56
Other notes
74. Other Comprehensive Income
Refer to Note VII-57 for details
75. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Interest income 28,372,895.58 18,393,351.08
Other small receivables 6,380,771.38 4,152,114.66
Large intercourse funds 3,800,000.00
Net margins, security deposit and various
796,055.96
special funds received
Total 39,349,722.92 22,545,465.74
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Paying administrative expense in cash 14,106,982.05 13,129,786.98
Paying selling expense in cash 5,790,331.31 10,355,626.60
Net margins, security deposit and various
1,325,019.39
special funds paid
Net amount of utilities, miscellaneous
11,029,061.45 4,055,467.35
fees and accident fee and other payments
140
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
on behalf
Payment for litigation execution 10,750,093.41
Other small payments 2,660,153.05 5,365,845.58
Total 33,586,527.86 44,981,839.31
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
76. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
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 82,972,527.59 364,355,770.43
Add: Provision for impairment of assets -4,757,350.92 -55,631,180.18
141
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Depreciation of fixed assets, oil-gas assets,
13,603,686.94 19,542,847.69
and productive living assets
Amortization of intangible assets 3,576,251.52
Amortization of long-term prepaid expenses 86,488.14 264,165.48
Losses on scrap of fixed assets (gains:
46,286.30 -10,256.83
negative)
Finance costs (gains: negative) -7,556.73 14,907.69
Investment loss (gains: negative) -49,247.20 -1,412,812.91
Decrease in deferred income tax assets
-5,289,164.36 -19,792,776.10
(gains: negative)
Increase in deferred income tax liabilities
-2,013.97 -3,378.31
(“-” means decrease)
Decrease in inventory (gains: negative) 405,964,906.28 172,080,653.00
Decrease in accounts receivable generated
-20,167,130.30 -10,877,893.88
from operating activities (gains: negative)
Increase in accounts payable used in
-697,993,417.58 -972,643,986.13
operating activities (decrease: negative)
Net cash generated from/used in operating
-225,591,985.81 -500,537,688.53
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Net increase/decrease of cash and cash
-- --
equivalent:
Ending balance of cash 2,134,736,405.07 2,247,039,397.08
Less: beginning balance of cash 2,464,626,655.21 2,857,353,056.85
Net increase in cash and cash equivalents -329,890,250.14 -610,313,659.77
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
142
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Add: cash or cash equivalents received in the Reporting Period from
76,797,409.69
previous disposal of subsidiaries
Of which: --
Shenzhen International Trade Center Car Industry Co., Ltd. 65,894,097.67
Shenzhen Shenxin Taxi Co., Ltd. 10,903,312.02
Net cash received from disposal of subsidiaries 76,797,409.69
Other notes:
(4) Cash and Cash Equivalent
Unit: RMB
Item Ending balance Beginning balance
I. Cash 2,134,736,405.07 2,464,626,655.21
Including: Cash on hand 321,178.07 204,530.91
Bank deposit on demand 2,133,299,421.62 2,246,678,453.69
Other monetary fund on demand 1,115,805.38 156,412.48
III. Ending balance of cash and cash
2,134,736,405.07 2,464,626,655.21
equivalents
Other notes:
The cash and cash equivalents excluding the cash and cash equivalents with limitation on the use by the Company
as the parent or subsidiaries of the Group were of RMB12,402,160.00.
77. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
Not applicable
78. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary capital 12,402,160.00 Note 1
Inventory 4,839,083.09 Property preservation guarantee, for
143
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
details, please refer to Section X. Financial
Report XIV. 2. (1) Guarantee
Property preservation guarantee, for
Fixed assets 964,322.41 details, please refer to Section X. Financial
Report XIV. 2. (1) Guarantee
Property preservation guarantee, for
Investment property 42,128,749.14 details, please refer to Section X. Financial
Report XIV. 2. (1) Guarantee
Total 60,334,314.64 --
Other notes:
Note 1: At the end of the Reporting Period, the restricted L/G deposits used by the Company amounted to
RMB12,402,160.00, which were the cash deposits paid by the subsidiary of the Company-Dongguan International
Trade Center Changsheng Property Development Co., Ltd. by entrusting the commercial bank to issue the
Commercial Housing Quality Guarantee Letter. Because the subsidiary of the Company - Dongguan International
Trade Center Changsheng Property Development Co., Ltd. was the real estate development enterprise with
provisional qualification, when handling the application of the pre-sale permit of the commercial residential
housing, it should submit the quality guarantee letter of the commercial residential housing after the liquidation
situation such as the enterprise bankruptcy and dissolution. The guarantee letter was the irrevocable commercial
residential quality guarantee letter, of which the guarantee period of RMB1,468,870.00 was from 30 June 2015 to
31 December 2020 and the guarantee period of the remaining RMB10,933,290.00 was from 1 July 2015 to 31
December 2020.
79. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary capital -- -- 51,145,519.13
HKD 60,663,645.04 0.8431 51,145,519.13
Available-for-sale financial assets 606,794.69
Of which: USD 91,707.93 6.6166 606,794.69
Other accounts payable 300,652.20
Of which: HKD 356,603.25 0.8431 300,652.20
Accounts payable 47,213.60
Of which: HKD 56,000.00 0.8431 47,213.60
Other notes:
144
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
√ Applicable □ Not applicable
Item Main Recording Basis for choosing
operating currency
place
Shum Yip Properties Development Co., Hong HKD Located in HK, settled by HKD
Ltd. and its subsidiary Kong
80. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Not applicable
81. Other
(2) Accounting Process of Basic EPS and Diluted EPS
(A) Basic EPS
Item Reporting Period Same period of
last year
Consolidated net profit attributable to ordinary shareholders 82,972,527.59 364,355,770.43
of the Company as the parent
Weighted average of ordinary shares outstanding 595,979,092.00 595,979,092.00
Basic EPS (RMB/per share) 0.1392 0.6114
Of which: Continuing operations 0.1392 0.6079
Discontinued operations 0.0035
The basic EPS was accounted based on the current net profit attributable to ordinary shareholders of the Company
divided by the weighted average of ordinary shares outstanding.
The accounting process of the weighted average of ordinary shares outstanding was as follows:
Item Reporting Period Same period of
last year
Number of ordinary shares outstanding at period-beginning 595,979,092.00 595,979,092.00
Weighted average ordinary shares outstanding 595,979,092.00 595,979,092.00
(B) Diluted EPS
There were no possible diluted ordinary shares of the Company.
(2) Net profit from discontinued operations
The Company sold out the subsidiary engaged in taxies in 2017 and there was no business of discontinued
operations in the Reporting Period. The operating result from the business of discontinued operations during the
Reporting Period was presented as follows:
Item Reporting Period Same period of last
145
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
year
I. Operating revenue 29,835,241.39
Less: costs and expenses 27,139,722.89
Less: withdrawal and reversal of provisions for 72,281.81
impairment
Add: net non-operating income 37,137.98
II. Total profit from discontinued operations 2,660,374.67
Less: Income tax expense 585,358.19
III. Net Profit from discontinued operations 2,075,016.48
Of which: net profit from discontinued operations 2,075,016.48
attributable to owners of the Company as the parent
IV. Total net profit from discontinued operations 2,075,016.48
Of which: total net profit from discontinued 2,075,016.48
operations attributable to owners of the Company as
the parent
The cash flow from discontinued operations during the Reporting Period was listed as follows:
Item Reporting Period Same period of last
year
Net cash generated from/used in operating activities 4,588,079.73
Net cash generated from/used in investing activities -16,404.00
Net cash generated from/used in financing activities -15,077,965.92
The cash received during the Reporting Period from the sale of the subsidiary engaged in taxies in 2017 was
RMB76,797,409.69.
As for the above current discontinued operations, the Company presented again the information listed as profit or
loss of continuing operations as profit or loss of discontinued operations for the comparable accounting period in
the current financial statements of the Company.
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Unit: RMB
Income of Net profits of
Time and
Cost of Recognition acquiree from acquiree from
Name of place of Proportion of Way to gain
gaining the Purchase date basis of the purchase the purchase
acquiree gaining the equity the equity
equity purchase date date to date to
equity
period-end period-end
Other notes:
Not applicable
146
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
Note to determination method of the fair value of the combination cost, consideration and changes:
Not applicable
The main formation reason for the large goodwill:
Not applicable
Other notes:
Not applicable
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Carrying value on purchase date
The determination method of the fair value of identifiable assets and liabilities
Not applicable
Contingent liability of acquiree undertaken in the business combination
Not applicable
Other notes:
Not applicable
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and gaining the control
during the Reporting Period
□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
Not applicable
(6) Other Notes
Not applicable
147
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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 Income of the Net profits of
Recognition
period-begin period-begin acquiree the acquiree
Combined Proportion of Combination basis of
Basis ning to the ning to the during the during the
party the equity date combination
combination combination period of period of
date
date of the date of the comparison comparison
acquiree acquiree
Other notes:
Not applicable
(2) Combination Cost
Unit: RMB
Combination cost
Note to contingent consideration and other changes:
Not applicable
Other notes:
Not applicable
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Combination date Period-end of the last period
Contingent liabilities of the combined party undertaken in the business combination
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.
148
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Not applicable
4. The Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and relevant
information:
Not applicable
6. Other
Not applicable
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Shenzhen
Property
Huangcheng Real Shenzhen Shenzhen 100.00% Set-up
development
Estate Co., Ltd.
Szprd Real Estate
Property
Development Co., Shenzhen Shenzhen 95.00% 5.00% Set-up
development
Ltd.
Prd Group
Xuzhou Dapeng
Property
Real Estate Xuzhou Xuzhou 100.00% Set-up
development
Development Co.,
Ltd.
Dongguan
International Property
Dongguan Dongguan 100.00% Set-up
Trade Center development
Changsheng Real
149
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Estate
Development Co.,
Ltd.
Prd Yangzhou
Real Estate Property
Yangzhou Yangzhou 100.00% Set-up
Development Co., development
Ltd.
Shenzhen
International
Trade Center Property
Shenzhen Shenzhen 100.00% Set-up
Property management
Management 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.
Chongqing
Ao’Bo Elevator Chongqing Chongqing Service 100.00% Set-up
Co., Ltd.
Shenzhen
Tianque Elevator
Shenzhen Shenzhen Service 100.00% Set-up
Technology Co.,
Ltd.
Shenzhen
International Shenzhen Shenzhen Service 100.00% Set-up
Trade Center
150
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Property
Management
Engineering
Equipment Co.,
Ltd.
Shenzhen
International
Shenzhen Shenzhen Catering service 100.00% Set-up
Trade Center
Food Co., Ltd.
Shenzhen
Property
Project
Construction Shenzhen Shenzhen 100.00% Set-up
supervision
Supervision Co.,
Ltd.
SZPRD
Operation and
Management of Shenzhen Shenzhen Service 100.00% Set-up
Real Estate
Assets Co., Ltd.
Zhanjiang
Shenzhen Real
Property
Estate Zhanjiang Zhanjiang 100.00% Set-up
development
Development Co.,
Ltd.
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:
151
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Naught
Significant structured entities and controlling basis in the scope of combination:
Naught
Basis of determine whether the Company is the agent or the principal:
Naught
Other notes:
Naught
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
The profit or loss Declaring dividends Balance of
Shareholding proportion
attributable to the distributed to non-controlling
Name of non-controlling
non-controlling non-controlling shareholders at the
shareholders
shareholders shareholders period-end
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Naught
Other notes:
As of the period-end, the balance of non-controlling shareholders of the Company was RMB862,087.06. There
was no significant non-wholly-owned subsidiary of the Company.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning 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
Cash flows Cash flows
Total Total
Name Operating from Operating from
Net profit comprehensi Net profit comprehensi
revenue operating revenue operating
ve income ve income
activities activities
Other notes:
Naught
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
Naught
152
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated 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 the Owner’s Equity Share Changed in Subsidiary
Naught
(2) The Transaction’s Influence on the Equity of Non-controlling Shareholders and the Owner's Equity
Attributable to the Company as the Parent
Unit: RMB
Other notes:
Naught
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Holding percentage (%) Accounting
treatment of the
Main operating Nature of investment to
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 associated enterprise of
153
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Shenzhen Wufang Pottery & Porcelain Industrial Co., Ltd. Now the aforesaid company’ financial statement
cannot be obtained, thus, the Company believed that it was insignificant associated 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 Ventures
Unit: RMB
Ending balance/Reporting Period Beginning balance/The same period of last year
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 49,657,326.33 6,909,814.50 47,958,558.83 6,879,862.65
Of Which: Cash and cash
34,072,009.16 6,473,730.48 34,268,115.61 5,890,362.65
equivalents
Non-current assets 25,841.34 63,178,239.79 29,349.24 63,528,043.92
Total assets 49,683,167.67 70,088,054.29 47,987,908.07 70,407,906.57
Current liabilities 22,346,123.22 3,563,757.65 21,253,083.10 3,410,681.06
Non-current liability 16,302,060.79 16,271,264.57
Total liabilities 38,648,184.01 3,563,757.65 37,524,347.67 3,410,681.06
Equity attributable To
owners of the Company 11,034,983.66 66,524,296.64 10,463,560.40 66,997,225.51
as the parent
Portion of net Assets
calculated according to
5,517,491.83 33,262,148.33 5,231,780.20 33,498,612.76
proportion of
shareholdings
Carrying value of equity
investment to joint 5,517,491.83 33,262,148.33 5,231,780.20 33,498,612.76
ventures
Operating revenue 10,019,051.54 1,332,229.50 9,006,071.80 4,169,092.56
Finance expense -48,189.40 -7,950.24 -504,717.70 -4,625.32
Income tax expense 190,474.42 457,681.11 484,194.16
Net profit 571,423.26 -472,928.87 1,373,043.31 1,452,582.49
Total comprehensive
571,423.26 -472,928.87 1,373,043.31 1,452,582.49
income
Other notes:
154
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Naught
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
Beginning balance/The same period of last
Ending balance/Reporting Period
year
Other notes:
Naught
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/The same period of last
Ending balance/Reporting Period
year
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 on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Naught
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
The cumulative recognized The derecognized losses (or the
The accumulative unrecognized
Name losses in previous share of net profit) in Reporting
losses in Reporting Period
accumulatively derecognized Period
Other notes:
Naught
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Naught
155
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Naught
4. Significant Common Operation
Proportion /share portion
Name Main operating place Registration place Nature of business
Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
Naught
For common operation as a single entity, basis of classifying as common operation
Naught
Other notes:
Naught
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
Naught
6. Other
Naught
X. The Risk Related to 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
RMB70.9323 million except the aforesaid had withdrawn bad debt provision, mainly was the account receivable
of property management, of which was account receivable RMB5.0404 million of Alibaba (China) Network Co.,
Ltd. was the total property management costs of several serve district of Alibaba (China) Network Co., Ltd. Other
156
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
client receivables were widely dispersed owners and tenants. The Group conducted continuous supervisor to the
account receivables to ensure the Group not facing significant bad debt risk.
For the quantized data of credit risk exposure incurred by account receivables and other account receivables, see 5,
Note (VII) and 9, Note (VII).
2. Liquidity Risk
Liquidity risk was referred to the risk of incurring capital shortage when performing settlement obligation in the
way of cash payment or other financial assets.
The subsidiary of the Group monitor the cash flow and the need of itself, the headquarters of the finance
department combine the cash flow of each subsidiary, continue to monitor the short term or long term capital
needs to ensure maintain plenty of cash flow. Besides, according to the actual capital need of the Group, provided
commitment of adequate emergency capital to meet the short term and long term capital need.
All financial liabilities of the Company were expected to be paid at maturity within one year.
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 follows, which reflected the influence of changes in monetary
assets and monetary liabilities on net profits and shareholders’ equity when the following listed foreign exchanges
showed reasonable and possible changes under the hypothesis of other variables constant.
Item Reporting period The same period of last year
Change in net Change in equity Change in net Change in equity
profit of shareholders profit of shareholders
RMB down 2% against 308.37 -1,037,813.74 -2,358.76 -1,061,597.67
HKD
RMB up 2% against HKD -308.37 1,037,813.74 2,358.76 1,061,597.67
RMB down 2% against 9,101.92 9,101.92 9,318.99 9,318.99
USD
RMB up 2% against USD -9,101.92 -9,101.92 -9,318.99 -9,318.99
Notes 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Notes 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
(2) Interest rate risk
Interest rate risk was referred to risk of the fair value or future cash flow of financial instrument changed due to
the change of market interest risk.
The interest risk of the Group incurred from bank loan, interest rate risk of a floating interest rate of financial
liabilities that lead to the group facing cash flow interest rate risk, financial liabilities with a fixed interest rate lead
to the group facing cash flow interest rate risk. Besides, the Company had no interest-bearing debts.
4. Fair Value
Refer to Note (XI) for details.
157
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending 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
3,598,765.93 3,598,765.93
financial assets
(2) equity instrument
3,598,765.93 3,598,765.93
investment
The total amount of assets
3,598,765.93 3,598,765.93
measured at fair value
II. Inconsistent fair value
-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
The ending price in the national stock transfer system for small and medium sized enterprises on 30 June 2018.
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 Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
Not applicable
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Not applicable
158
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
Not applicable
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Not applicable
9. Other
Not applicable
XII. Connected Party and Connected Transaction
1. Information Related to the Company as the Parent of the Company
Proportion of share Proportion of voting
held by the rights owned by the
Name Registration place Nature of business Registered capital Company as the Company as the
parent against the parent against the
Company (%) Company (%)
Shenzhen
Managing
Investment Holdings Shenzhen RMB23,149 million 63.82% 63.82%
state-owned assets
Co., Ltd
Notes to information on the Company as the parent of the Company:
The Company as the parent of the Company is Shenzhen Investment Holdings Co., Ltd., and also is a sole
state-funded limited company. 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:
Naught
2. Subsidiaries of the Company
Refer to Note IX-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX-3 for details of significant joint ventures or associated enterprises of the Company.
159
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Information on other joint venture or associated enterprise of occurring connected transactions with the Company in Reporting
Period, or forming balance due to connected transactions made in previous period:
Name Relationship with the Company
Other notes:
Naught
4. Information on Other Connected Parties
Name Relationship with the Company
Under the same control of the Company as the parent of the
Shenzhen Investment Holdings Co., Ltd.
Company
Other notes:
Naught
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service (Unit:RMB’0,000)
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Connected party Content Reporting Period
credit credit or not year
Information of sales of goods and provision of labor service
Unit: RMB
Connected party Content Reporting Period Same period of last year
Notes:
Applicable
(2) Information on Connected Trusteeship/Contract
Lists of related trusteeship/contract:
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in this
ee contractor Reporting Period
Notes:
Not applicable
Lists of entrust/contractee
Unit: RMB
Name of the Name of the Type Start date Due date Pricing basis Charge
160
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
entruster/contract entrustee/ recognized in this
ee contractor Reporting Period
Notes:
Not applicable
(3) Information on Connected Lease
The Company was lessor:
Unit: RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
the Reporting Period the same period of last year
The Company was lessee:
Unit: RMB
The lease fee confirmed in the The lease fee confirmed in the
Name of lessor Category of leased assets
Reporting Period same period of last year
Shenzhen Investment Holdings
Rental 182,934.00 179,350.20
Co., Ltd.
Notes:
Not applicable
(4) Information on Connected 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:
Not applicable
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Connected party Amount Start date End date Note
Borrowing
Lending
161
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(6) Information on Assets Transfer and Debt Restructuring by Connected Party
Unit: RMB
Connected party Content Reporting period Same period of last year
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Total remuneration paid to key
management personnel (including the 3,661,480.66 2,288,910.00
personal income tax)
(8) Other Connected Transactions
Not applicable
6. Accounts Receivable and Payable of Connected Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Connected party
Carrying amount Bad debt provision Carrying amount Bad debt provision
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.
(2) Accounts Payable
Unit: RMB
Item Connected party Ending carrying amount Beginning carrying amount
Shenzhen Jifa Warehouse Co.,
Other accounts payable 29,296,665.14 29,296,665.14
Ltd.
Tianan International Building
Other accounts payable Property Management 5,214,345.90 5,214,345.90
Company of Shenzhen
7. Commitments of Connected Party
No such cases in the Reporting Period.
162
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
8. Other
Naught
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□ Applicable □ Not applicable
2. The Stock Payment Settled in Equity
□ Applicable □ Not applicable
3. The Stock Payment Settled in Cash
□ Applicable □ Not applicable
4. Modification and Termination of the Stock Payment
Naught
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Item Period-end
Large amount contract of real estate development project signed but 348,973,775.00
derecognized in financial statements.
Total 348,973,775.00
2. Contingency
(1) Significant Contingency on Balance Sheet Date
①Pending Action
The action 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
163
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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 29 July 2001, Guangdong Higher Court issued Civil Court Judgment YGFM (1999) No. 3 (hereinafter referred
to as Judgment No. 3) to judge that ① the Company should transfer the title of land use right specified in the
transfer contract to Jiyong Company within 30 days from the date the judgment taking into effect and ②Jiyong
Company should pay off the transfer consideration amounting to RMB143, 860,000.00 within 60 days from the
date the Company transferred the title of land use right. On 27 November 2001, the Company applied to
Guangdong Higher Court for forcible execution, however Guangdong Higher Court adjudicated to release the
sealing property of Jiyong Company approximately 10,000 square meters since Industrial & Commercial Bank of
China Zhejiang Branch disagree to seal the properties.
The Company thought the applicable law of the decision was error, and raised an objection to High Court of
Guangdong province.
In Sep.2005, the High Court of Guangdong province delivered unlocked decision to the Departments of Land and
House Property Registers of Shenzhen. The aforesaid about ten thousand square meters of real estate was
officially unlocked.
In January 2006, Guangdong Higher Court issued Civil Court Judgment YGFZ (2002) No. 1 and adjudicated
because that ① the Company has not yet transferred the title of land use right specified in the transfer contract to
Jiyong Company and ② Jiyong Company cannot provide other properties available for execution and the
Company also cannot provide the property available for execution, the second judgment of the Judgment No. 3 -
“Jiyong Company should pay off the transfer consideration amounted RMB143,860,000 within 60 days from the
date the Company transferred the title of land use right” is terminated for execution. When the conditions causing
termination for execution of the second judgment are eliminated, the second judgment should still be executed.
In March 2006, according to the ordain of Guangdong Higher People’s Court, the properties in Jiabin Building
that have been sealed up in this case have been released automatically. On September 2009, company received
YGFZ (2002) No. 1-1 Resume Execution Notice from Guangdong Province Higher Court claimed to resume
execution the case that the transfer money owed by Jiyong company about Jiabin building project.
In October 2009, the Company received (Verdict YGFZ (2002) No. 1-2) from Guangdong Higher Court. The
verdict claimed: The resume execution of this case is according to the "The requirements for the Guangdong
Higher Court to concentrate the implementation of accumulated cases" Through the investigation conducted by
Guangdong Higher Court to Shenzhen department of motor vehicles, Shenzhen Securities Registration and
Settlement Organizations, Shenzhen Land resources and real estate administration and the opening bank of the
executed party, the executed party – Jiyong Company does not have any executable property. For these,
Guangdong Higher Court adjudicated: ① Terminate the executive procedure of Verdict YGFZ (2002) No. 1②
When the execution conditions are satisfied, the applicant can apply for resume execution.
According to note (VII) 3, Shenzhen Longyuan-Kaili-Hengfeng Real Estate Co., Ltd. (hereinafter as the
“Longyuan-Kaili”) and Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter as the “Huaneng Property”) plan
to conduct reconstructions to the plaza, On 3 mar. 2011, the Company, 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
164
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Contract of Land Use Right signed in 2011 and Meeting Summery about Research of Dealing with Problem
Building Issued (No. 481) by Shenzhen Municipal Government.
In April 2012, the Company raised the subrogation right lawsuit to Shenzhen Luohu District People's Court, based
on the creditor’s right for Jiyong Company decided by the Civil Ruling Paper YGFMC (1999) No. 3, prosecuting
the obligor of Jiyong Company—Shenzhen Zongli Investment Co., Ltd. (hereinafter referred to as “Zongli
Company”), which was required to compensate for the Company within its debt range for Jiyong Company.
Meanwhile, due to it was highly similar in the management level of Shenzhen Huaneng-Jindi Property Co., Ltd.
(hereinafter referred to as “Huaneng-Jindi Company”) and Zongli Company, the Company believed that there was
significant related-party relationship between Huaneng-Jindi Company and Zongli Company, therefore, the
Company also prosecuted Huaneng-Jindi Company, which was required to undertake the joint liability for the
debts born by Zongli Company. On 11 Sep. 2013 Shenzhen Luohu District People's Court issued (2012)
SLFMECZ No. 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 Mar. 2015,
Shenzhen Intermediate People's Court made Civil Judgment (2014) SZFSZZ No. 400, the decision to reject the
appeal of the Company, and maintain the original judgment.
As the executable property are not found in the case so far, the Company withdraw bad debt provision for
Shenzhen Jiyong Properties & Resources Development Company‘s transfer amount of Jin Lihua Commercial
Plaza. In Aug. 2015, the Company as a creditor applied to Shenzhen Intermediate People's Court for the
bankruptcy and insolvency of Shenzhen Jiyong Properties & Resources Development Company. And now the
case is still under the review for bankruptcy filing.
②Guarantee
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 Jun. 2015
to 31 Dec. 2020, and the remained were RMB10,933,290.00 from 1 Jul. 2015 to 31 Dec. 2020.
B. Guarantee for the owners: the Company and its subsidiaries are the purchasers providing mortgage guarantee
for the bank, As of 30 June. 2018, the unsettle guarantee amount was RMB902.628 million, the guarantee event
was provided by real estate developer for small owners’ purchases of commercial houses of the Company, which
was the common phenomenon in the industry.
C. During the civil proceedings of the Company and Shenzhen Meisi Industrial Co., Ltd. (refer to Note
(XIV)-2-(2)-A in the Annual Report in 2017,), to protect the plant and comprehensive building in Meilin as well
as the corresponding the land use rights of the dispute, On 19 December 2012, the Company applied to Shenzhen
Intermediate People's Court for the sealing up of the land and property specified in the original real estate
certificate SFDZ No. 0103139 and No. 0103142, and provided the Company self-owned property - 41 suites in
International Trade Center Plaza as property preservation in this case according to the provisions of the Civil
Procedure Law. The total area of the properties is 8,342.24 square meters, and the carrying value was
RMB47.9322 million as of 30 June 2018. The Guangdong Higher People’s Court had made the final judgment
regarding the case on 21 December 2017. And as of the disclosure date of the Interim Report of 2018, its real
estate for property preservation guarantee was under the discharge of guarantee.
165
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
3. Other
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Unit: RMB
Influence number to the
Reason of inability to estimate
Item Content financial position and operating
influence number
results
2. Profit Distribution
Unit: RMB
Profits or dividends planned to distribute 0.00
Reviewed and approved profits or dividends declared to distribute 0.00
3. Sales Return
Naught
4. Notes to Other Events after Balance Sheet Date
In 2017, the Company transferred all shares of Shenzhen International Trade Center Car Industry Co., Ltd. and Shenzhen
Shenxin Taxi Co., Ltd. it held (refer to Section IV-VI-2. Event regarding the Sale of Significant Stock Rights in the Annual Report in
2017 of the Company). The Company received the final payment of this stock rights transactions respectively of RMB76.7974
million and RMB3.104 million respectively in March and July of 2018. So far, the full amount of the stock rights transfers has been
collected.
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
166
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Name of the influenced report
Content Processing program accumulative impact
items during comparison period
(2) Prospective Application
Reason for adopting prospective
Content Processing program
application
2. Debt Restructuring
Not applicbale
3. Assets Replacement
(1) Non-monetary Assets Exchange
Not applicbale
(2) Other Assets Replacement
Not applicbale
4. Pension Plan
Not applicbale
5. Discontinued Operations
Unit: RMB
Profit from
discontinued
operations
Income tax
Item Income Expense Total profit Net profit attributable to
expense
owners of the
Company as the
parent
Other notes
Not applicable
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
The Group's business includes real estate business, housing lease management, catering services, and other
167
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
business (including: mechanical and electrical professional maintenance business, 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. Diet services: catering service
D. Other business: operating mechanical and electrical professional maintenance business, engineering
supervision business, and parking lot
The management for the purpose of considering the decision of resources and evaluation of performance
separately managed the operating results of each unit of business.
(2) The Financial Information of Reportable Segment
Unit: RMB
Property Catering Offset among
Item Real estate Others Undistributed Total
management service segment
Operation
594,838,729.82 213,379,017.06 11,510,169.69 5,286,068.40 825,013,984.97
revenue
Trading
revenues
1,571,327.66 1,808,051.85 901,683.96 3,367,046.39 -7,648,109.86
among
divisions
Selling expense 9,802,660.67 -506,130.91 9,296,529.76
Income from
investment to
associated 49,247.20 49,247.20
enterprises and
joint ventures
Asset
impairment -6,587,282.80 1,117,040.62 -403.77 726.48 712,568.55 -4,757,350.92
loss
Depreciation
and
12,762,574.04 777,471.04 155,974.31 38,217.71 -44,062.02 13,690,175.08
amortization
charges
Total profit
98,197,794.32 13,024,509.03 233,509.26 892,506.37 49,247.20 -2,837,695.03 109,559,871.15
(losses)
6,832,250,538. -2,742,455,296. 4,599,956,823.
Total assets 452,262,882.69 5,100,881.12 14,018,176.90 38,779,640.16
85 41 31
168
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3,852,330,980. -2,454,462,731. 1,772,806,782.
Total liabilities 364,886,855.22 3,193,985.02 6,857,692.69
53 36 10
Long-term
equity
investments to
38,779,640.16 38,779,640.16
associated
enterprises and
joint ventures
Increase in
non-current
assets
excluding 1,857,414.85 964,687.80 183,839.81 6,299.00 3,012,241.46
long-term
equity
investment
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
Not applicable
(4) Other Notes
A. Foreign Trade Income regarding Products and Labor Services
Item Reporting Period Same period of last year
Real estate 594,838,729.82 1,092,505,000.97
Property management 213,379,017.06 180,892,643.85
Transportation 27,861,938.33
Catering service 11,510,169.69 12,007,374.58
Other 5,286,068.40 3,879,774.70
Total 825,013,984.97 1,317,146,732.43
B. Geography Information
Distribution of Foreign Trade Income
Item Reporting Period Same period of last
year
Mainland of China 825,013,984.97 1,317,146,732.43
Countries and regions outside the Chinese mainland
Total 825,013,984.97 1,317,146,732.43
Distribution of Non-current Assets
169
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Item Ending balance Beginning balance
Mainland of China 446,137,201.98 456,036,976.47
Countries and regions outside the Chinese mainland 1,110,808.70 1,110,851.76
Total 447,248,010.68 457,147,828.23
C. Information on Key Accounts
The customers of the Group were rather dispersed and there was no individual customer with transactions with the
Company over 10%.
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Not applicable
8. Other
Not applicable
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra
Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Accounts receivable
with significant
single amount for 96,647,8 96,647,8 96,647, 96,647,88
98.27% 100.00% 99.03% 100.00%
which bad debt 89.05 89.05 889.05 9.05
provision separately
accrued
Accounts receivable
withdrawal of bad
1,651,26 254,355. 1,396,908 893,820 414,357.6
debt provision of by 1.68% 15.40% 0.92% 46.36% 479,462.50
4.18 39 .79 .19 9
credit risks
characteristics:
Accounts receivable 54,380.3 0.06% 54,380.3 100.00% 54,380. 0.05% 54,380.35 100.00%
170
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
with insignificant 5 5 35
single amount for
which bad debt
provision separately
accrued
98,353,5 96,956,6 1,396,908 97,596, 97,116,62
Total 100.00% 98.58% 100.00% 99.51% 479,462.50
33.58 24.79 .79 089.59 7.09
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end:
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable（by Ending balance
unit） Accounts receivable Bad debt provision Withdrawal proportion Withdrawal reason
Involved in lawsuit and
Shenzhen Jiyong with no executable
Properties & Resources 93,811,328.05 93,811,328.05 100.00% property, please refer to
Development Company Section X Financial
Statement-(XIV)-2
Shenzhen Tewei Industry Not recovered for a 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 adopted aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year (including 1 year) 1,385,267.47 41,558.02 3.00%
Subtotal within 1 year 1,385,267.47 41,558.02 3.00%
4 to 5 years 265,996.71 212,797.37 80.00%
Total 1,651,264.18 254,355.39 15.40%
Notes to the determination basis for the group:
For details, please refer to Section XI Financial Statement-V-11.
In the groups, accounts receivable adopted balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopted other methods to withdraw bad debt provision:
Naught
171
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-160,002.30; the amount of the reversed
or collected part during the Reporting Period was of RMB0.00.
Of which the bad debt provision reversed or recovered with significant amount in the Reporting Period:
Unit: RMB
Name of the entity Amount Way of recovery
Total 0.00 --
There was no bad debt provision reversed or recovered during the Reporting Period.
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Of which the verification of significant accounts receivable:
Unit: RMB
Verification Whether generated
Reason for
Name Nature Amount verified procedures from connected
verification
performed transactions
Total -- 0.00 -- -- --
Notes:
There was no accounts receivable with actual verification during the Reporting Period.
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Name Ending balance Proportion to the Ending balance of
ending balance of bad debt provision
accounts receivable withdrawn
(%)
Shenzhen Jiyong Properties & Resources 93,811,328.05 95.38 93,811,328.05
Development Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.88 2,836,561.00
Shenzhen Meigexiazi Catering 542,711.52 0.55 16,281.35
Management Co., Ltd.
CPIC 536,992.00 0.55 16,109.76
Rainbow Department Store Co., Ltd 265,996.71 0.27 212,797.37
Total 97,993,589.28 99.63 96,893,077.53
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
Naught
172
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement of
Accounts Receivable
Naught
Other notes:
Naught
2. Other Accounts Receivable
(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra
Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Other accounts
receivable with
significant single 124,731, 28,561,0 96,170,74 123,873 28,557,10 95,316,884.
12.53% 22.90% 10.58% 23.05%
amount for which 841.16 96.71 4.45 ,986.03 1.98 05
bad debt provision
separately accrued
Other accounts
receivable withdrawn 1,044,6
868,595, 8,982,54 859,612,5 11,008,80 1,033,660,7
bad debt provision 87.23% 1.03% 69,585. 89.21% 1.05%
085.39 0.44 44.95 0.80 84.97
according to credit 77
risks characteristics
Other accounts
receivable with
insignificant single 2,415,32 2,415,32 2,415,3 2,415,326
0.24% 100.00% 0.21% 100.00%
amount for which 6.23 6.23 26.23 .23
bad debt provision
separately accrued
1,170,9
995,742, 39,958,9 955,783,2 41,981,22 1,128,977,6
Total 100.00% 4.01% 58,898. 100.00% 3.59%
252.78 63.38 89.40 9.01 69.02
03
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB
173
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Ending balance
Other accounts receivable
Other accounts
(unit) Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Shum Yip Properties Uncollectible for a long
103,684,952.25 7,514,207.80 7.30%
Development Co., Ltd. period
Shenzhen Shengfenglu The Company was
International Trade 6,980,273.01 6,980,273.01 100.00% enforced to conduct,
Jewelry Co., Ltd. irrecoverable
Shanghai Yutong Real
estate development Co., 5,676,000.00 5,676,000.00 100.00% Judgments, irrecoverable
Ltd.
Everglow Development Uncollectible for a long
3,271,837.78 3,271,837.78 100.00%
Limited period
Dameisha Tourism Center 2,576,445.69 2,576,445.69 100.00% Suspension of projects
Elevated Train Project 2,542,332.43 2,542,332.43 100.00% Suspension of projects
Total 124,731,841.16 28,561,096.71 -- --
In the groups, other accounts receivable adopted aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year (including 1 year) 2,488,401.21 74,652.04 3.00%
Subtotal of within 1 year 2,488,401.21 74,652.04 3.00%
1 to 2 years 593,235.28 59,323.53 10.00%
2 to 3 years 43,300.00 12,990.00 30.00%
4 to 5 years 92,200.00 73,760.00 80.00%
Over 5 years 8,761,814.88 8,761,814.88 100.00%
Total 11,978,951.37 8,982,540.44 74.99%
Notes to the determination basis for the Group:
Refer to Section X Financial Statement-V-11 in the Report for details.
In the groups, other accounts receivable adopted balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
174
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-2,022,265.63; the amount of the reversed
or collected part during the Reporting Period was of RMB0.00.
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
Total 0.00 --
There was no bad debt provision reversed or recovered in the Reporting Period.
(3) Other Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Of which the verification of significant other accounts receivable:
Unit: RMB
Verification Whether generated
Reason for
Name of entity Nature Amount verified procedures from connected
verification
performed transactions
Total -- 0.00 -- -- --
Notes:
There was no other accounts receivable with actual verification in the Reporting Period.
(4) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Margin 2,218,894.63 2,211,109.83
Pretty cash advance 337,899.51 86,342.50
Account receivable to subsidiary 960,354,565.04 1,065,434,315.98
Accounts receivable to affiliated companies 1,747,264.25 1,747,264.25
Account receivable to non-affiliated company 31,083,629.35 101,479,865.47
Total 995,742,252.78 1,170,958,898.03
(5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to total Ending balance of
Name of the entity Nature Ending balance Aging
ending balance of bad debt provision
175
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
other accounts
receivable
SZPRD Xuzhou
Dapeng Real Estate Account receivable
429,838,221.77 Within 5 years 43.17%
Development Co., to subsidiary
Ltd.
SZPRD Yangzhou
Real Estate Account receivable
213,589,836.60 Within 4 years 21.45%
Development Co., to subsidiary
Ltd.
Shenzhen
Huangcheng Real Account receivable
133,070,074.29 Within 2 years 13.36%
Estate Management to subsidiary
Co., Ltd.
Shenzhen
Account receivable
Huangcheng Real 103,684,952.25 Over 5 years 10.41% 7,514,207.80
to subsidiary
Estate Co., Ltd.
Shenzhen
Account receivable
Huangcheng Property 76,265,906.77 Within 5 years 7.66%
to subsidiary
Management Co., Ltd.
Total -- 956,448,991.68 -- 96.05% 7,514,207.80
(6) Account Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
Naught
(7) Other Accounts Receivable Derecognized due to the Transfer of Financial Assets
Naught
(8) Amount of Assets and Liabilities Generated from the Transfer and Continuous Involvement of Other
Accounts Receivable
Naught
Other notes:
Naught
176
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment to
231,846,672.93 19,964,000.00 211,882,672.93 231,846,672.93 19,964,000.00 211,882,672.93
subsidiaries
Investment to
joint ventures and
57,763,254.30 18,983,614.14 38,779,640.16 57,714,007.10 18,983,614.14 38,730,392.96
associated
enterprises
Total 289,609,927.23 38,947,614.14 250,662,313.09 289,560,680.03 38,947,614.14 250,613,065.89
(1) Investment to the Subsidiary
Unit: RMB
Depreciation Ending balance of
Beginning
Investee Increase Decrease Ending balance reserve depreciation
balance
withdrawn reserve
Shenzhen
Huangcheng Real 35,552,671.93 35,552,671.93
Estate Co., Ltd.
SZPRD Real
Estate
30,950,000.00 30,950,000.00
Development Co.,
Ltd.
SZPRD Yangzhou
Real Estate
50,000,000.00 50,000,000.00
Development Co.,
Ltd.
Dongguan ITC
Changsheng Real
Estate 20,000,000.00 20,000,000.00
Development Co.,
Ltd.
Shenzhen
International Trade
Center Property 20,000,000.00 20,000,000.00
Management Co.,
Ltd.
177
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Shenzhen
International Trade
1,600,001.00 1,600,001.00 1,600,000.00
Center Catering
Co., Ltd.
Shenzhen Property
Construction
3,000,000.00 3,000,000.00
Supervision Co.,
Ltd.
Shenzhen Real
2,380,000.00 2,380,000.00
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.
SZPRD Xuzhou
Dapeng Real
Estate 50,000,000.00 50,000,000.00
Development Co.,
Ltd.
Total 231,846,672.93 231,846,672.93 19,964,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Beginnin Reduced Changes bonus or al of Ending of
Investee l recognize other
g balance investmen of other profits impairme Other balance depreciati
investmen d under comprehe
t equity announce nt on
t the equity nsive
d to issue provision reserve
method income
I. Joint ventures
Shenzhen
Jifa 33,498,61 -236,464. 33,262,14
Warehous 2.76 43 8.33
e Co.,
178
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Ltd.
Tianan
Internatio
nal
Building
Property 5,231,780 285,711.6 5,517,491
Managem .20 3 .83
ent
Company
of
Shenzhen
38,730,39 38,779,64
Subtotal 49,247.20
2.96 0.16
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.
(26%)
18,983,61 18,983,61 18,983,61
Subtotal
4.14 4.14 4.14
57,714,00 57,763,25 18,983,61
Total 49,247.20
7.10 4.30 4.14
(3)Other Notes
Naught
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 33,455,791.84 11,132,664.03 940,995,898.09 178,192,594.93
Other operations 659,988.00 659,988.00
Total 33,455,791.84 11,792,652.03 940,995,898.09 178,852,582.93
Other notes:
Naught
179
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
448,375,302.27
accounted by cost method
Long-term equity investment income
49,247.20 1,412,812.91
accounted by equity method
Total 49,247.20 449,788,115.18
6. Other
Not applicable
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses on the disposal of non-current
-46,286.30
assets
Other non-operating income and expense
1,268,102.88
other than the above
Less: Income tax effects 212,423.31
Total 1,009,393.27 --
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring 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 ordinary
2.80% 0.1392 0.1392
shareholders of the Company
Net profit attributable to ordinary
2.77% 0.1375 0.1375
shareholders of the Company after
180
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
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
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Not applicable
4. Other
Naught
181
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2018
Part XI Documents Available for Reference
I The financial statements with the signatures and stamps of the Company’s legal
representative, head of financial affairs and head of the financial department; and
II The originals of all the Company’s announcements and documents ever disclosed on
http://www.cninfo.com.cn in the Reporting Period.
182
