ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
Stock Code: 000011, 200011 Stock Name: PRD, PRD-B Announcement No. 2019-41
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
THIRD QUARTER REPORT 2019 (SUMMARY)
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhe n Properties & Resources Development
(Group) Ltd. (together with its consolidated subsidiaries, the “Company”, except where the
context otherwise requires) 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 mate rial omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Liu Qiang, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in t his Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2019 31 December 2018 Change (%)
Total assets (RMB) 10,483,774,596.84 5,820,202,137.54 80.13%
Equity attributable to the listed
3,261,058,125.05 3,337,949,324.64 -2.30%
company’s shareholders (RM B)
Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue (RM B) 246,562,586.92 -34.07% 1,001,952,666.88 -16.43%
Net profit attributable to the listed
-689,810.21 -101.13% 103,059,587.95 -28.52%
company’s shareholders (RM B)
Net profit attributable to the listed
company’s shareholders before -1,104,487.82 -101.78% 102,581,697.47 -28.73%
exceptional items (RM B)
Net cash generated from/used in
-- -- 534,270,254.31 968.95%
operating activities (RM B)
Basic earnings per share
-0.0012 -101.17% 0.1729 -28.52%
(RM B/share)
Diluted earnings per share
-0.0012 -101.17% 0.1729 -28.52%
(RM B/share)
Weighted average return on equity
-0.02% -2.11% 3.13% -1.79%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RM B
Item Q1-Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of Scrapping disposal of
-13,030.68
impairment allowance write-offs) miscellaneous assets
Sporadic penalty and liquidated
Non-operating income and expense other than above 650,217.99
damages income
Less: Income tax effects 159,296.83
Total 477,890.48 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Numbe r of Shareholde rs and Holdings of Top 10 Shareholde rs at 30 September 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders at the shareholders with resumed
41,305 0
period-end voting rights at the
period-end (if any)
Top 10 shareholders
Name of Nature of Shareholding Total shares Restricted Shares in pledge or frozen
shareholder shareholder percentage held shares held Status Shares
Shenzhen
Investment State-owned legal
63.82% 380,378,897
Holdings person
Corporation
Shenzhen
Duty-Free Domestic
Commodity non-state-owned 0.29% 1,730,300 1,730,300
Enterprises Co., legal person
Ltd.
Domestic natural
Yang Yaochu 0.24% 1,425,020
person
Domestic natural
M ai Furong 0.20% 1,181,500
person
Domestic natural
Li Jing 0.20% 1,176,740
person
Domestic natural
Su Zhifen 0.19% 1,150,000
person
Wuhan
Xingkaiyuan Domestic
Electric Power non-state-owned 0.18% 1,050,000
Engineering Co., legal person
Ltd
Chen Yutang Domestic natural 0.15% 865,400
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
person
Domestic
Shantou Property
non-state-owned 0.14% 850,000
Hexin Co., Ltd.
legal person
Domestic natural
Zhang Shaoming 0.14% 811,000
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
Shenzhen Investment Holdings RM B-denominate
380,378,897 380,378,897
Corporation d ordinary stock
Domestically
Yang Yaochu 1,425,020 listed foreign 1,425,020
stock
Domestically
M ai Furong 1,181,500 listed foreign 1,181,500
stock
Domestically
Li Jing 1,176,740 listed foreign 1,176,740
stock
RM B-denominate
Su Zhifen 1,150,000 1,150,000
d ordinary stock
Wuhan Xingkaiyuan Electric Power RM B-denominate
1,050,000 1,050,000
Engineering Co., Ltd d ordinary stock
RM B-denominate
Chen Yutang 865,400 865,400
d ordinary stock
RM B-denominate
Shantou Property Hexin Co., Ltd. 850,000 850,000
d ordinary stock
RM B-denominate
Zhang Shaoming 811,000 811,000
d ordinary stock
RM B-denominate
Li Baorong 800,000 800,000
d ordinary stock
Domestically
Wang Hui 800,000 listed foreign 800,000
stock
The first largest shareholder, Shenzhen Investment Holding Corporation, is the actual
Related or acting-in-concert parties
controlling shareholder of the Company. And the Company does not know whether
among the shareholders above
there are related parties or acting-in-concert parties among the other 9 shareholders.
Top 10 ordinary shareholders involved N/A
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
in securities margin trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
Part III Significant Events
I Changes in Key Consolidated Financial State ment Line Items and Explanation of why
√ Applicable □ Not applicable
1. Net accounts receivable stood at RMB105,664,491.50 as at 30 September 2019, rising 64.51% compared to 31
December 2018, primarily driven by the increase in property management fees receivable.
2. Net other receivables stood at RMB1,411,300,201.44 as at 30 September 2019, rising 5677.29% compared to
31 December 2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate
Development Co., Ltd.
3. Inventories stood at RMB4,091,290,659.03 as at 30 September 2019, rising 246.20% compared to 31 December
2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate Development Co.,
Ltd.
4. Other current assets stood at RMB60,518,612.48 as at 30 September 2019, rising 262.51% compared to 31
December 2018, primarily driven by the increase in prepaid VAT for property projects.
5. Net fixed assets stood at RMB49,959,816.20 as at 30 September 2019, rising 53.19% compared to 31
December 2018, primarily driven by purchase of office building by the subsidiary.
6. Other non-current assets stood at RMB29,220,732.54 as at 30 September 2019, declining 73.19% compared to
31 December 2018, primarily driven by the offset of payments for M&A of shares in Shenzhen Rongyao Real
Estate Development Co., Ltd. by advance stock payment of RMB0.1 billion.
7. Accounts payable stood at RMB270,740,042.51 as at 30 September 2019, declining 32.05% compared to 31
December 2018, primarily driven by payment for projects.
8. Other payables stood at RMB575,189,783.56 as at 30 September 2019, rising 411.27% compared to 31
December 2018, primarily driven by payment of RMB406 million for stock transfer newly added.
9. Long-term borrowings stood at RMB2,194,000,000.00 as at 30 September 2019, rising 219300.00% compared
to 31 December 2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate
Development Co., Ltd.
10. Other comprehensive income stood at RMB-2,943,241.63 as at 30 September 2019, rising 64.78% compared
to 31 December 2018, primarily driven by the decrease in the differences arising from translation of foreign
currency-denominated financial statements caused by changes in foreign exchange rates.
11. Taxes and surtaxes stood at RMB134,703,867.42 during Q1~Q3 2019, rising 114.01% compared to Q1~Q3
2018, primarily driven by that main property projects carried over in the Reporting Period applied to higher land
VAT rates.
12. Selling expense stood at RMB43,482,379.03 during Q1~Q3 2019, rising 193.64% compared to Q1~Q3 2018,
primarily driven by increase of charges for sales agency and services.
13. Administrative expense stood at RMB85,821,358.91 during Q1~Q3 2019, rising 26.70% compared to Q1~Q3
2018, primarily driven by increase in remuneration for employees and in office expenditure.
14. Finance costs stood at RMB99,933.139.03 during Q1~Q3 2019, rising -359.86% compared to Q1~Q3 2018 of
RMB-38,456,220.90, primarily driven by increase in interest payment.
15. Asset impairment loss (“-“ for losses) stood at RMB-2,656.062.96 during Q1~Q3 2019, declining 155.37%
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
compared to Q1~Q3 2018 of RMB4,797,271.69, primarily driven by withdrawal of bad debt provision and
changes of inventory falling price reserves.
16. Investment income stood at RMB2,207,762.84 during Q1~Q3 2019, rising 57.92% compared to Q1~Q3 2018,
primarily driven by changes caused by revenues realized by joint ventures of the Company.
17. Non-operating expense stood at RMB1,806,397.12 during Q1~Q3 2019, declining 36.66% compared to
Q1~Q3 2018, primarily driven by decrease in payment for cleaning tenants as surrender compensation.
18. Income tax expense stood at RMB60,811,172.26 during Q1~Q3 2019, rising 35.32% compared to Q1~Q3
2018, primarily driven by increase in profits realized by companies except for Shenzhen Rongyao Real Estate
Development Co., Ltd.
19. Net profit (attributable to the Company as the parent) stood at RMB103,059,587.95 during Q1~Q3 2019,
declining 28.52% compared to Q1~Q3 2018, primarily driven by increase in interest expense of finance costs.
20. Net profit attributable to non-controlling interests stood at RMB-56,907,075.90 during Q1~Q3 2019 and that
for Q1~Q3 2018 was RMB0.00, primarily driven by addition of “net profit attributable to non-controlling
interests” of Shenzhen Rongyao Real Estate Development Co., Ltd.
21. Other comprehensive income, net of tax, stood at RMB-1,157,059.94 during Q1~Q3 2019, declining 37.41%
compared to Q1~Q3 2018, primarily driven by changes in differences arising from translation of foreign
currency-denominated financial statements caused by changes in foreign exchange rates.
22. Net cash generated from/used in operating activities stood at 534,270,254.31 during Q1~Q3 2019 and the net
cash generated from operating activities rose 968.95% compared to Q1~Q3 2018, primarily driven by increase in
recoup funds of housing sales accounts during Q1~Q3 2019.
23. Net cash generated from/used in investing activities during Q1~Q3 2019 stood at RMB-37,689,200.09,
declining 149.48% compared to Q1~Q3 2018, primarily driven by receipt of share transfer payments from two
motor companies during Q1 2018 and increase in payment for purchase of fixed assets during Q1~Q3 2019.
24. Net cash generated from/used in financing activities during Q1~Q3 2019 stood at RMB-359,218,136.65, rising
102.05% compared to Q1~Q3 2018, primarily driven by increase in interest paid for loans during Q1~Q3 2019.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
In order to respond to the call of Shenzhen State-owned Assets Supervision and Administration Commission,
further promote the concentration of resource of good quality to the advantage enterprises, particularly the listed
companies, and strengthen the development potential of listed companies, optimize and solidify the industrial
structure of listed companies, enlarge and strengthen the dominant industry in listed companies, the Company
intends to take over 100% of equity in Shenzhen Holding Property Management Co., Ltd. (hereinafter referred to
as “TK Property”) held by Shenzhen Investment Holdings Co., Ltd (hereinafter referred to as “SZIH”) in cash.
The acquisition was approved by the 8th Meeting of the 9th Board of Directors on 6 September 2019 and the 2nd
Extraordinary General Meeting of 2019 on 23 September 2019 with independent and professional opinions from
independent directors. The relevant disclosure is as follows:
Announcement of significant event Disclosure date Disclosure website
The acquisition of 100% of equity in No. 2018-39 Announcement on Signing
Shenzhen Holding Property 13 December 2018 the Letter of Intent for Equity Transfer
M anagement Co., Ltd. and the connected with Controlling Shareholders on
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
transaction www.cninfo.com.cn
No. 2019-28 Announcement on
7 September 2019 Resolution of the Board of Directors on
www.cninfo.com.cn
No. 2019-30 Announcement on the
Acquisition of 100% of Equity in
Shenzhen Holding Property
7 September 2019
Management Co., Ltd. and the
Connected Transaction on
www.cninfo.com.cn
No. 2019-31 Announcement on
7 September 2019 Resolution of the Supervisory Committee
on www.cninfo.com.cn
No. 2019-33 Announcement on the
Acquisition of 100% of Equity in
Shenzhen Holding Property
21 September 2019
Management Co., Ltd. and the
Connected Transaction on
www.cninfo.com.cn
No. 2019-34 Announcement on
nd
Resolution of the 2 Extraordinary
24 September 2019
General Meeting of 2019 on
www.cninfo.com.cn
Progress of any share repurchases:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Pa rties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
√ Applicable □ Not applicable
Unit: RM B
Variet Symb Name Initial Acco Begin Gain/l Accu Purch Sold Gain/l Endin Acco Capita
oss in
y of ol of of invest unting ning oss of mulati ased in the g unting l
Repor
securi securi securit ment measu carryi chang ve in the Repor ting carryi title source
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
ty ty y cost remen ng es in chang Repor ting Perio ng
d
t value fair es in ting Perio value
model value fair Perio d
in the value d
Repor record
ting ed
Perio into
d equiti
es
Other
Obtai
Dome non-c
ned in
stic/o 2,991, Fair 2,991, 2,991, urren
40001 Gintia debt
versea 975.0 metho 975.0 0.00 0.00 0.00 0.00 0.00 975.0 t
6 nA restru
s 3 d 3 3 finan
cturin
stock cial
g
assets
Other Obtai
Dome
non-c ned in
stic/o Fair
42001 Gintia 573,8 629,4 1,054. 630,4 urrent debt
versea metho 0.00 0.00 0.00 0.00
6 nB 81.03 06.08 64 60.72 financ restru
s d
ial cturin
stock
assets g
3,565, 3,621, 3,622,
1,054.
Total 856.0 -- 381.1 0.00 0.00 0.00 0.00 435.7 -- --
64
6 1 5
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)
V Wealth Manage ment Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
No such cases in the Reporting Period.
VII Communications with the Investment Community such as Researches, Inquiries and
Inte rvie ws during the Reporting Period
√ Applicable □ Not applicable
Type of communication Index to main information
Date Way of communication
party communicated
Inquired of the disclosure of the
2 July 2019 In writing Individual
interim report of the Company
Inquired of business development of
6 July 2019 In writing Individual
the Company
Inquired of the property information of
8 July 2019 In writing Individual
golden collar project
Inquired of the semi-annual
8 July 2019 In writing Individual
performance of the Company
Inquired of business development of
9 July 2019 By phone Individual
the Company
Inquired of the market value of golden
9 July 2019 In writing Individual
collar project
Inquired of the information of golden
11 July 2019 In writing Individual
collar project
Inquired of the sales of commercial
11 July 2019 In writing Individual
housing
Inquired of the information of
13 July 2019 In writing Individual
Fuchang Phase II
Inquired of the progress of project
15 July 2019 By phone Individual
construction and financial condition
Inquired of the sales of commercial
17 July 2019 In writing Individual
housing
Inquired of the release of restriction on
19 July 2019 In writing Individual
restricted shares of the Company
Inquired of the number of the
23 August 2019 In writing Individual
shareholders of the Company
Inquired of situations of shareholders
11 September 2019 In writing Individual
of the Company
Inquired of situations of shareholders
19 September 2019 In writing Individual
of the Company
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ShenZhen Properties & Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
VIII Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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