ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ANNUAL REPORT 2019
(Announcement No. 2020-9)
March 2020
1
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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 Liu Qiang, 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.
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.
The Company has described in detail in this Report the possible risks facing it, along with
countermeasures. Please refer to the section headed “Prospects” of “Part IV Operating
Performance Discussion and Analysis” of this Report.
The Board has approved a final dividend plan as follows: based on the total share capital of
595,979,092 shares, a cash dividend of RMB3.6 (tax inclusive) per 10 shares is to be
distributed to the shareholders, with no bonus issue from either profit or capital reserves.
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. Annual Report 2019
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 6
Part III Business Summary............................................................................................................. 11
Part IV Operating Performance Discussion and Analysis............................................................18
Part V Significant Events.................................................................................................................46
Part VI Share Changes and Shareholder Information................................................................. 65
Part VII Preferred Shares................................................................................................................74
Part VIII Convertible Corporate Bonds........................................................................................ 75
Part IX Directors, Supervisors, Senior Management and Staff...................................................76
Part X Corporate Governance........................................................................................................ 85
Part XI Corporate Bonds.................................................................................................................93
Part XII Financial Statements.........................................................................................................94
Part XIII Documents Available for Reference............................................................................. 271
3
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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.
TK Property Shenzhen Toukong Property Management Co., Ltd.
Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co., Ltd.
Dongguan Company Dongguan ITC Changsheng Real Estate Development Co., Ltd.
Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.
Yangzhou Company SZPRD Yangzhou Real Estate Development Co., Ltd.
Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co., Ltd.
ITC Property Management Shenzhen International Trade Center Property Management Co., Ltd.
Huangcheng Property Management Shenzhen Huangcheng Property Management Co., Ltd.
Shandong Shenguomao Real Estate Management Shandong Shenguomao Real Estate Management Co., Ltd.
Chongqing Shenguomao Real Estate Management Chongqing Shenguomao Real Estate Management Co., Ltd.
Yangzhou Jingyue Property Development Yangzhou Shouxihu Jingyue Property Development Co., Ltd.
Shenzhen Shenshan Special Cooperation Zone Guomao Property Development
Shenshan Guomao Property Development
Co., Ltd.
Guomao Tongle Property Management Shenzhen Guomao Tongle Property Management Co., Ltd.
Housing Assets Operation and Management
Shenzhen SZPRD Housing Assets Operation and Management Co., Ltd.
Company
Guomao Catering Shenzhen Guomao Catering Co., Ltd.
Jifa Warehousing Shenzhen Real Estate Jifa Warehousing Co., Ltd.
Supervision Company Shenzhen Property Engineering and Construction Supervision Co., Ltd.
Tian’an Company Shenzhen Tian’an International Mansion Property Administration Co., Ltd.
A special park built by a government or an enterprise for the purpose of
achieving industrial development, of which those built by an enterprise usually
Industrial park
fall into the following categories: logistics parks, technology parks, cultural
creation park, company headquarters and ecological agriculture parks
4
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB, RMB’0,000, RMB’00,000,000
of Renminbi, expressed in hundreds of millions of Renminbi
IFMA International Facility Management Association
COVID-19 The novel coronavirus disease that started in 2019
5
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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. 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
39/F and 42/F, International Trade Center, Renmin South Road, Luohu District, Shenzhen,
Registered address
Guangdong Province, P.R.China
Zip code 518014
16/F, 20/F, 39/F and 42/F, International Trade Center, Renmin South Road, Luohu District,
Office address
Shenzhen, Guangdong Province, P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email address 000011touzizhe@szwuye.com.cn
II Contact Information
Board Secretary Securities Representative
Name Fan Weiping
Qian Zhong and Ding Minghua
39/F, International Trade Center, Renmin South 39/F, International Trade Center, Renmin South
Address Road, Luohu District, Shenzhen, Guangdong Road, Luohu District, 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
6
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
III Media for Information Disclosure and Place where this Report Is Lodged
Newspapers designated by the Company for For A-stock investors: Securities Times
information disclosure For B-stock investors: Ta Kung Pao (HK)
Website designated by CSRC for publication of this
www.cninfo.com.cn
Report
Board Office, 39/F, International Trade Center, Renmin South Road, Luohu
Place where this Report is lodged
District, Shenzhen, Guangdong Province, P.R.China
IV Change to Company Registered Information
Unified social credit code No change
Change to principal activity of the
No change
Company since going public (if any)
On 29 September 2004, the State-Owned Assets Supervision and Administration
Commission of Shenzhen Municipality (“SASAC Shenzhen”) decided to incorporate
Shenzhen Investment Holdings Co., Ltd. (“SIHC”) to include Shenzhen Investment
Management Co., Ltd. (“SIM”, the former controlling shareholder of the Company)
and Shenzhen Construction Investment Holdings Corporation (“SCIHC”). SCIHC and
SIM hold 323,796,324 and 56,582,573 shares respectively in the Company,
Every change of controlling shareholder
representing a combined stake of 63.82%.
since incorporation (if any)
On 19 October 2018, the Company was notified by its actual controlling shareholder
SIHC that it had received the Confirmation of Securities Transfer Registration from
China Securities Depository and Clearing Co., Ltd. (Shenzhen branch), marking the
completion of the equity transfer to SIHC. As such, SIHC has become the controlling
shareholder of the Company.
The controlling shareholder remained unchanged during the Reporting Period.
V Other Information
The independent audit firm hired by the Company:
Name Pan-China Certified Public Accountants LLP
4/F, Tower A2, Yuzhu Plaza, 856 Huangpu Boulevard East, Huangpu District, Guangzhou
Office address
City, Guangdong Province, China
Accountants writing signatures Wang Huansen and Chen Yan
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
7
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for the retrospective restatements:
Business combination under common control
2019-over
-2018
2018 2017
2019 change
(%)
Before Restated Restated Before Restated
Operating revenue
3,961,669,942.44 2,787,240,632.53 3,376,673,249.90 17.32% 2,904,690,690.53 3,313,178,320.65
(RMB)
Net profit attributable
to the listed
817,805,780.12 592,723,852.71 698,050,728.96 17.16% 622,962,734.37 663,742,776.33
company’s
shareholders (RMB)
Net profit attributable
to the listed
company’s
695,675,201.19 591,362,024.37 591,362,024.37 17.64% 559,625,850.90 559,625,850.90
shareholders before
exceptional gains and
losses (RMB)
Net cash generated
from/used in operating 939,789,565.96 1,123,594,927.59 1,231,718,056.18 -23.70% -346,269,760.94 -274,210,826.57
activities (RMB)
Basic earnings per
1.3722 0.9945 1.1713 17.15% 1.0453 1.1137
share (RMB/share)
Diluted earnings per
1.3722 0.9945 1.1713 17.15% 1.0453 1.1137
share (RMB/share)
Weighted average
20.46% 18.94% 19.47% 0.99% 26.64% 21.75%
return on equity (%)
Change of
31
December
31 December
31 December 2018 2019 over 31 December 2017
2019
31
December
2018 (%)
8
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Before Restated Restated Before Restated
Total assets (RMB) 10,772,491,740.53 5,820,202,137.54 7,023,354,613.55 53.38% 5,393,331,548.87 6,429,389,760.43
Equity attributable to
the listed company’s 3,147,949,009.38 3,337,949,324.64 3,872,406,104.67 -18.71% 2,921,693,794.08 3,345,542,300.92
shareholders (RMB)
VII 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 under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 385,944,107.52 369,445,972.44 246,562,586.92 2,959,717,275.56
Net profit attributable to the listed
78,431,920.59 25,317,477.57 -689,810.21 714,746,192.17
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 77,831,706.94 25,854,478.35 -1,104,487.82 593,093,503.72
exceptional gains and losses
Net cash generated from/used in
-64,518,467.02 -395,433,769.96 994,222,491.29 405,519,311.65
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
9
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Item 2019 2018 2017 Note
Gain or loss on disposal of non-current assets
47,015.23 -79,489.58 104,883,756.37
(inclusive of impairment allowance write-offs)
Government subsidies charged to current profit or
loss (exclusive of government subsidies given in the
Company’s ordinary course of business at fixed 2,410,184.82 165,676.08
quotas or amounts as per the government’s uniform
standards)
Current profit or loss on subsidiaries obtained in
business combinations involving enterprises under
118,680,871.93 105,442,907.48 41,053,124.05
common control from the period-beginning to
combination dates, net
Gain or loss on contingencies that do not arise in the
-5,491,792.67
Company’s ordinary course of business
Non-operating income and expense other than the
2,048,751.21 1,724,017.41 -466,062.66
above
Other gains and losses that meet the definition of
91,337.56
exceptional gain/loss
Less: Income tax effects 1,146,936.51 448,375.57 35,589,017.57
Non-controlling interests effects (net of tax) 645.31 116,031.23 273,082.09
Total 122,130,578.93 106,688,704.59 104,116,925.43 --
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
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
10
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part III Business Summary
I Principal Activity of the Company in the Reporting Period
(I) Core Business Overview
Established in November 1982, the Company was originally known as “Luohu Engineering and Construction Headquarters” and
renamed “Shenzhen Municipal Property Development Corporation” in August 1985. The Company was determined as the second
batch of pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government, the Company
renamed to ShenZhen Properties & Resources Development (Group) Ltd. (SZPRD) in April 1990. The stock of the group company
(stock name: PRD, PRD-B; stock code: 000011, 200011) was officially listed in Shenzhen Stock Exchange in March 1992. The
Company is headquartered in the International Trade Center, Renmin South Road, Luohu District, Shenzhen, Guangdong Province,
P.R.China.
At its inception, the Company contracted and built Shenzhen International Trade Centre Building as Party A, and created the
world-famous "Shenzhen Speed" that "one floor was completed in three days". International Trade Centre Building ranked the first
place in several places in China: It was the first super-high-rise building in China, which has occupied the position of "the tallest
building in the country" for ten years; It was the first building project involving bidding in China. It is the landmark building in
Luohu and even Shenzhen, a resounding historical and cultural symbol in Shenzhen and the "cultural card in Shenzhen". It was
selected into the first batch of 45 historical buildings in Shenzhen and became "The Reflection of the Shenzhen Speed and the
Symbol of the Reform and Opening-up" with a reputation for the whole country and even the world. The enterprise spirit of "going
ahead and reforming" of Shenzhen Property Group has also become the spiritual totem of the numerous entrepreneurs in Shenzhen.
Since its establishment 38 years ago, the Company has developed into a large-scale comprehensive group company from a simple
project company at that time by focusing on the traditional real estate business and implementing the pluralistic development strategy,
taking Luohu as its base area and radiating all over the country. Currently, the Company mainly takes real estate development
property management and housing asset operation as the basic business, with catering service, warehousing business and supervision
business, etc. as supplement, and the diversified business structure of “3+X” is being formed. In accordance with three-step strategic
implementation route of “ strengthening bases, brink breakthrough, and focus on leading”, the Company constantly consolidates
existing basic business, promotes the comprehensive upgrading of various businesses, constitutes the advantage of sustainable
development, and keeps on making efforts for development vision of building “comprehensive full ecological chain operator of
intelligent scientific and technological park which ranks the first in China and takes a leading position in the world”. During the
reporting period, the Company realized large scale growth of asset scale, business revenue and net profits, comprehensive capacity
and industry position of the Company is further improved, and the transformation mode of modern urban comprehensive complex
has obtained substantial achievements.
1. Real estate business
Since its establishment, in terms of the main real estate business, the Company is specialized in developing the residence, the hi-end
apartment and the office building, owns Shenzhen Huangcheng Real Estate Co., Ltd., Dongguan ITC Changsheng Real Estate
Development Co., Ltd., SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd., SZPRD Yangzhou Real Estate Development
Co., Ltd. and Shenzhen Rongyao Real Estate Development Co., Ltd., and has developed a batch of brand projects, including
International Trade Commercial Building, Huanggang Port, Huangyuyuan, Tian’an International Building, etc. During the reporting
period, the Company purchased 69% equity of Shenzhen Rongyao Real Estate Development Co., Ltd., and pioneered in developing
urban update projects jointly between Shenzhen state owned asset system and private enterprise, and opened the construction curtain
of the first completely marketized urban renewal project in the Group history. Development control mode of real estate development
project of the Company includes two grades, i.e. Group HQ and urban Company. The Group mainly controls land investment, plan
11
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
and operation, key marketing nodes, planning design and cost control above quota, while urban Company is in charge of engineering
management, site marketing, site design and cost control below quota. Sufficient autonomy is granted to each project Company. The
Group makes takes institutionalized management and has formed the internal operation system of main real estate business with
comprehensive management system Real Estate Manual and other standard codes, and the real estate control mode gets complete and
mature gradually. In 2019, the Company expanded land projects and deepened the core market of Shenzhen by bid invitation, auction
and listing, merger and acquisition, and other channels, with the new annual land reserve increased by 120,000 square meters.
Currently, the cumulative land reserve of the Company is close to 300,000 square meters, which initially relieves the bottle neck
problem of land reserve that restricts the sustainable development of the Company.
2. Property management
During the reporting period, the Company purchased 100% equity of TK Property successfully, further enriched property resources
under management of the Company, including land, house property and high end scientific and technological park. The Company
takes subordinate enterprises of Shenzhen International Trade Center Property Management Co., Ltd. And TK Property as the core
platform, strives for building comprehensive full ecological chain operator of intelligent science and technology park. Shenzhen
International Trade Center Property Management is among the first batch of National Qualified Level I Enterprise of Property
Management, and was rated as “Top 100 National Property Management Enterprises” and “Excellent Enterprise of Property
Management of Industrial Park In China” for several years successively, and has four subsidiaries, namely, Shenzhen Huangcheng
Property Management Co., Ltd., Shandong ITC Property Management Co., Ltd., Chongqing ITC Property Management Co., Ltd. and
Yangzhou Jingyue Property Management Co., Ltd. During the reporting period, it newly established Shenshan Guomao Property
Management, Tongle Property Management of Shenzhen ITC Property Management, which are joint ventures. After more than 30
years of development, Shenzhen ITC Property Management has had striking brand advantages, with its property service projects all
over the world, including Hulun Buir, Manzhouli, Baoding in Southwest China Market, Shandong, Shanghai, Zhejiang and Jiangsu
in East China Market, Chongqing in Southwest China Market, Shenzhen and Dongguan in South China Market. The Company has
provided service for the famous enterprise parks (Huawei, Alibaba, Jingdong, Hikvision) and a large batch of government property
projects in Shandong and Chongqing. After purchasing TK Property, currently the total property management area of the Company is
more than 20 million square meters, including 8 million square meters of management area of high end quality industrial parks, and
has realized the national layout of high end industrial park operation management, having Baoding Shenzhen Industrial Park in the
north, Hangzhou Alibaba in the east, Shenzhen Bay Industrial Park in the south, Chongqing Jingdong Industrial Park in the west.
High end industrial operation and management scale of the Company will enter into the first echelon of domestic industrial park
operation and management. On the basis of consolidating traditional property management, the Company will further accelerate to
use big data, Internet of Things, AI, and other new technologies, construct smart operation service platform, constantly promotes
platform upgrading and realize scale profits.
3. House leasing business
As an important link in building comprehensive full ecological chain operator of the Company, house leasing business was originally
operated by the leasing center of the HQ, and now it is operated by house leasing company independently, which aims at accelerating
to cultivate the core operation ability of long term rental apartment while giving full play to the basic business advantage of real
estate development and property management of the Group Company. House leasing company actively explores the development
mode of “long term rental apartment + commercial office”, considers the operation solution of full life cycle of leasing assets as well,
attaches great importance to return on investment, focuses on disposing stock assets and improves the operation profits of assets
while seeking new opportunities of new leasing properties. Currently, the Company has signed cooperation agreement with talents
settlement group of Futian District, and takes Fumin Complex project as the pilot project of new leasing mode, which has been listed
into talent settlement engineering plan of Futian District in 2019. Stage I apartment project of Chuanbu Street, Fumin Complex
project, Gourmet Palace on the 2nd floor of International Trade Center Plaza and other renovation project also progress as planned.
Currently, the leasing property area exceeds 100,000 square meters, with the occupancy rate reaching 86%.
4. Other business
12
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
The Company also provides catering service, warehousing service, supervision service, etc. The catering service is operated by
Shenzhen Guomao Catering Co., Ltd, with the total operation area as 1,892 square meters. Guomao Catering Co., Ltd. was
established in 1986, and the ITC Revolving Restaurant is the first air restaurant in China and was listed as “China’s highest revolving
restaurant” by the State Council, is the only revolving restaurant specializing in Chinese foods and an important reception restaurants
appointed by Shenzhen Municipal Government, and has received more than 600 domestic and overseas state heads, famous people
and numerous domestic and overseas guests, with its reputation spreading all over the world. Talks given by President Deng
Xiaoping in ITC Revolving Restaurant during his inspection to the south in 1992 stirred up the second wave of China’s opening up,
and ITC Revolving Restaurant also becomes landmark scenic spot of Shenzhen with unique historical significance. Warehousing
service is mainly operated by joint venture (50% equity) Jifa Warehousing Co., Ltd., with total warehouse area as 35,000 square
meters. Subordinated supervision company of the Group, which was originally known as Shenzhen Property Engineering
Management Department, has grade A supervision qualification of building works of MOHURD, and takes part in the construction
and management work of Shenzhen World Trade Center Building. It is a witness of the whole process of “Shenzhen speed”, and
mainly serves for the development project of the Group.
(II) Industry development stage and cyclic characteristics of the Company, and industry position of the Company during the
reporting period
Industry development of the Company is closely related to national economic development and national policy orientation,
and in positive correlation with cyclic fluctuation of economy.
1. Real estate industry
During the reporting period, China’s real estate market policy environment is still tightening. In July, 2019, meeting of the Political
Bureau of the Central Committee reiterated the position of “house is used for living instead of speculation”, implemented long term
management mechanism of real estate, and put forward the first time that real estate is not taken as a way for short term economic
stimulation, specified the basic tone of future housing system and real estate policy. Financing policy of the real estate company gets
tight constantly, involving trust, foreign bonds, development loan, etc. Base on each city, each district, and actuation situation,
locality implement policies accordingly to keep the stability of real estate market. Under such policy background, China’s real estate
industry mainly presents the following characters:
(1) Real estate market enters the new cycle of quality improvement, speed reduction, and stable development
According to report of the central bank, at the end of December, 2019, price of new commercial residence and second hand residence
in 70 small and middle cities raised by 6.8% and 3.7% respectively, with the increase rate reduced by 3.7% and 4% compared with
the same period last year. In 2019, the sales area of national commercial house keeps nearly the same as last year, with the total sales
amount as 1.6 billion Yuan, with an increase of 6.5% compared with the same period last year, with the increase speed reduced by
5.7% compared with the end of last year. The increase speed of sales area and sales amount of commercial house both slowed down.
National real estate development investment increased stably, with the completion amount increased by 9.9%, with the increase
speed improved by 0.4% compared with last year. Among it, cumulative residence development investment was 0.97 billion Yuan,
with an increase of 13.9% compared with the same period last year, with the increase speed improved by 0.5% compared with last
year, accounting for 73.4% of real estate development investment. The real estate market maintains stable operation overall, and
basically realized the policy objective of “stable land price, stable house price and stable forecast”. With the gradual exit of
monetized resettlement dividend of shantytown renovation, fast promotion of long-effect management mechanism of real estate and
housing system reform, etc., the market will return to rationality and commercial house sales will return to self-living needs.
(2) Pulled by progress of urbanization, urban renewal and renovation, improvement of living conditions, etc., real estate market space
is still huge.
Real estate industry still has relatively huge development space. First, from the perspective of urbanization rate and citizen
consumption level, urbanization rate failed to reach 60.60% in 2019, and there is still gap from 70% urbanization rate of developed
countries. The improvement of urbanization still brings relative huge space for real estate market development, and the acceleration
of centralizing the people to city will improves demand for urban real estate. Second, urban reconstruction and renewal involves a lot
13
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
of demolition of old houses, which is resettled by means of house or currency. As for monetized settlement, part of citizens need to
enter second hand house and new commercial house market to buy self-living house. With city entering into the stock renovation age
gradually, future urban renovation and renewal will further improve house demand. Third, according to study data of Evergrande,
main real estate purchasing urban population of China before 2045 will be stabilized at about 0.55 billion, with their age moving
upward. With the increase of urban citizens, outstanding demand for house quality improvement, in the future, high quality improved
house will be popular.
(3) With the deterioration of industry competition, various real estate companies seek the development road of transformation and
upgrading
“Matthew Effect” of market share of real estate enterprises is still deteriorating. According to statistics of CRIC, by the end of 2019,
centralization degree of equity sales amount of TOP3, TOP10, TOP30, TOP50, TOP100 real estate develops have reached nearly
9.5%, 21.4%, 35.7%, 43.5% and 53% respectively. On one hand, risk prevention of real estate industry is strengthened, part local
governments require that only developers with a certain scale can get the land, which squeezes the living space of small and medium
real estate developers. On the other hand, constantly tightened policy makes overall financing difficulty and financing cost of real
estate industry increase, scale real estate developers enjoy outstanding financing advantages and top real estate developers will
occupy bigger market share. In fierce market competition, traditional single real estate development mode gets harder and harder to
adapt to the change of the age. Various real estate companies also explore the development road of transformation and upgrading on
and off, and seek new development direction and function positioning. Under the age background of big data and 5G, in the new age
of replacing population dividend and land dividend with digital dividend completely, it has become the important direction of real
estate developers to stand out in a round of new competition by thoroughly utilizing rich scenarios and traffic ports of themselves and
seizing the opportunities brought by data application, Internet of Thing, and other scientific and technological revolution.
2. Industry of property management
With the acceleration of urbanization, the upgrading of citizen’s consumption level, and the constantly increase of stock property area,
property management starts to develop fast, with broad industry development prospect. On one hand, China’s real estate market
develops constantly, national new urbanization plan progresses for implementation, governments of part areas promotes full coverage
of property management, and a large amount of residential communities introduce property management gradually. Incremental
houses, stock houses and old residential communities provide huge market space for property management space. On the other hand,
users of property service get mature, especially affected by the COVID-19 epidemic at the beginning of 2020, the service level of
different property management show apparently, citizens realize that excellent property service not only matters the living experience,
but also closely relates to individual health in critical period, which will further stimulate them to purchase excellent property service.
Specifically, China’s property management industry mainly presents the following characteristics:
(1) Market scale accelerates expansion, industry presents the trend of the strong being strong forever
According to Development Indicator Evaluation Report of Property Service Enterprises in 2019, in 2018, total national management
area of property management industry is 27.93 billion square meters, with an increase of 3.265 billion square meters compared with
2017, with the increase rate as 13.2%; the total income was 704.363 billion Yuan, with an increase of 103.64 billion Yuan compared
with 2017 and the increase rate as 17.25%; there are totally 127,000 property service enterprises nationwide, with an increase of 9000
compared with 2017 and increase rate as 7.2%. In 2018, there are 70,403 property management projects of top 500 enterprises, with
the management area as 11.878 billion square meters, accounting for 42.56% of the total area of property management industry in
2018, and the industry centralization degree is further improved. Meanwhile, different level enterprises of top 500 deteriorate their
division, top 100 enterprises manage 41,514 projects and 8.008 billion square meters , with an increase of 33.89% compared with the
same period last year, which account for 58.97% and 67.73% of the management projects and management area of top 500
enterprises. Resource advantages centralize toward top enterprises, and the industry presents the trend of the strong being strong
forever.
(2) Fundamental property service is the basis and multiple operations become the profit growth point.
14
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
The revenue of property service enterprises mainly consist of two parts: income of fundamental property service and income of
multiple operations. From the perspective of revenue and profit composition, fundamental property service has always been the
revenue and profit core of property management service. However, in recent years, due to the slow increase of property management
fee, the cost of labor intensive industry is hard to reduce; multiple operation business develops quickly, and has become the profit
growth point of enterprises gradually. Top enterprises of property management industry deepen to dig customers’ needs while
providing high quality fundamental services, strive for providing diversified value added services for customers, and carry out
multiple operation services, such as consulting, community house broker, community e-commerce service, community domestic
service, community elderly care service, etc., involving elderly care, finance, education, tourism, new retailing, agriculture, etc,
activate the stock market of fundamental property, and bring new growth space for enterprise development.
(3) Industry transformation and upgrading accelerates, the new format of “Internet + property management” presents
The development of Internet+ and big data makes property management enterprises follow the latest development trend of market
closely, turn to intelligent property management, construct the new format of “Internet+ property management”, and improve
enterprise management efficiency and operation efficiency through informationized, intelligent, automatic and intensive management.
Nearly all top property service enterprises own or are developing their own informationization platform. After the COVID-19,
technological and mechanical requirements of property management service industry of the government and society will be further
improved. In the future, property service enterprises will speed up transformation and upgrading, and change from traditional
property service provider to integral supplier of modern services, apply scientific and technological means to provide standard
“private butler” service and other service modes, and quality while paying more attention to the diversified needs of owners and
improve property service quality while utilizing technology, information, AI and other high-tech technologies to improve service
efficiency.
3. Industry position of the Company
SZPRD arises together with Shenzhen opening up and devotes to Shenzhen real estate and property management and other fields for
more than 30 years. Its comprehensive capacity and brand influence gets stronger constantly and its industry position improves
gradually. It has won many honors and awards in past years.
Real estate division: During the reporting period, at the Grand Ceremony of Shenzhen Real Estate in 2019 as well as
Comprehensive Evaluation Briefing of Industry held by Shenzhen Real Estate Association, the Group won the honor of “Brand
Value Enterprise of Shenzhen Real Estate Development Industry” and 30-Year Vice Present Unit Since Shenzhen’s Establishment”;
SZPRD-Hupan Yujing project won “Residential Quarter Gold Prize of Tien-yow Jeme Civil Engineering Prize”, with product
capacity winning the recognition of industry authorities; Dongguang Company won the honor of “ Service Enterprise with Benefit
Contribution Ranking Top 10 in 2018”, with the ranking as 2nd.
Property management division: ITC Property Management was among the first batch of national qualified Level I enterprises of
property management. During the reporting period, it ranked the 33rd of “Top 100 Enterprises of China’s Property Management in
2019 ”， ranked the 4th of “Property Management Enterprises of China’s Industrial Park in 2019”, and won the honor of “Best
Innovation Award” of IFMA (China) in 2019 and other honors. This also enables ITC Property Management to be rated as Top 100
Enterprise of China’s Property Service from 2016 to 2019 consecutively and become council member of Guangdong Green Supply
Chain Association & Green Property Management Professional Committee; the Company’s purchasing of TK Property enhances the
Company capacity and improves industry position strikingly. During the reporting period, TK Property ranked the 15th of “Top 50 of
Comprehensive Capacity of Shenzhen Property Service Enterprises in 2018” which is rated by Shenzhen Property Management
Association, ranking three places higher than in 2017.
Comprehensive capacity of the Company also won thorough recognition and highly evaluation of the industry. During the reporting
period, the result of the selection activity of “Guandong Top 500 Enterprises in 2019” jointly held by Guangdong Provincial
Federation of Enterprises and Guangdong Federation of Entrepreneurs, the Company won the honor of “Guandong Top 500
Enterprises in 2019” consecutively for 9 years.
15
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Main reason for significant changes
Up 12.69% from the beginning amount, primarily driven by gains on joint ventures
Equity assets
recognized at the equity method
Down 8.74% from the beginning amount, primarily driven by asset stripping by subsidiary
Fixed assets
Shenzhen Toukong Property Management Co., Ltd.
Intangible assets Up 53.83% from the beginning amount, primarily driven by new purchases
Construction in progress No such assets
Up 39.14% from the beginning amount, primarily driven by the increase in revenue of the
Accounts receivable
property management business
Up 1046.94% from the beginning amount, primarily driven by the accounts between Rongyao
Other receivables
Real Estate and shareholders before Rongyao Real Estate was merged into the Company
Up 251.93% from the beginning amount, primarily driven by increase in the development
Inventories
costs of the projects of Guanlan Bangling, Banshan Yujing Phase II and Fuchang Phase II
Up 146.62% from the beginning amount, primarily driven by increase in pre-paid VAT and
Other current assets
input tax to be deducted
Down 100% from the beginning amount, primarily driven by reclassification according to the
Available-for-sale financial assets
new accounting standards governing financial instruments
Down 21.25% from the beginning amount, primarily driven by asset stripping by subsidiary
Investment property
Shenzhen Toukong Property Management Co., Ltd.
Long-term prepaid expenses Up 101.37% from the beginning amount, primarily driven by more decoration activities
Up 26.37% from the beginning amount, primarily driven by larger amounts of deductable loss
Deferred income tax assets
and land VAT provision
Down 95.71% from the beginning amount, primarily driven by decrease in prepayments for
Other non-current assets
investments
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
In recent years, while vigorously developing the traditional real estate business and deploying the core city cluster, the Company has
gradually improved its pluralistic development strategy, and continuously enhanced its core competitiveness by means of effective
strategic adjustment so as to accumulate strength for its future sustainable development. The Company’s core competitiveness can be
analyzed from the following aspects:
16
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
The first is the enterprise spirit of "going ahead and reforming". At the beginning of its establishment, The "Shenzhen Speed"
that "one floor was completed in three days" reflected the good style of work of Shenzhen Property personnel, such as taking courage
to explore, and forged the enterprise spirit of "going ahead and reforming". During the reporting period, the Group obtained localized
development project for the first time by means of marketized purchasing, which is also the first completely marketized urban
renewal project in the history of the Group. Merger of TK Property just took 9 and a half months actually, and created “Shenzhen
Speed” of marketized incorporation of state owned enterprises in Shenzhen. The Company leads to implement following investment
system of urban renewal projects in municipal state owned asset system, and takes solid steps in multi-layer incentive restriction
mechanism. One generation after another generation of Shenzhen Property personnel constantly carry forward and practice the
enterprise spirit of “going ahead and reforming”, and promote sustainable, healthy and stable development of the enterprise.
The second is the constantly enriched strategic and project resources. As the main company and platform company of
municipal state owned enterprise system of Shenzhen, SZPRD thoroughly utilizes listed company platform for capital operation,
constantly enriches property resources under management, including land, housing property and high end scientific and technological
park, and realizes endogenous and denotative growth. It actively introduces strategic investors and establishes strategic cooperation
relationship with Infinova and other companies, with its strategic resources obtaining and integration ability enhanced constantly.
Meanwhile, relying on high quality service and good reputation, it accumulates a lot of stable customer resources, and expands
project resources constantly, and the affiliated property management company won several bids of property management projects. Its
property service format realizes diversification and professionalism.
The third is standard governing mechanism and stable management team. The Company constantly deepened system
construction, consolidated enterprise operation foundation, improved standard and normative management level, and finished
remuneration performance and enterprise annuity reform solution and implemented it within the year. For bidding and tendering,
investment and merger, internal control, more than 15 regulations and systems were newly formulated or revised in the whole year,
the conception of ruling the enterprise by law was sorted out and strengthened, and corporate governance structure was completed.
The Company has a stable operation team, which persists in the corporate development strategy, continuously making the 13th
Five-Year Strategic Plan and the 14th 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.
The forth is profound “ITC” brand value and social recognition. Over more than 30 years of development and accumulation, the
Company is highly recognized in the market by virtue of its brand value of “ITC” brand value that carries the spirit of opening up.
In July, 2019, the Company won the honor of “Brand Value Enterprise of Shenzhen Real Estate Development Industry” and 30-Year
Vice Present Unit Since Shenzhen’s Establishment”, as well as the honor of ““Best 500 of China Real Estate Developers” ,
“Guangdong Top 500 Enterprises”, etc, with its social influence and brand reputation improved constantly.
17
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part IV Operating Performance Discussion and Analysis
I Overview
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.
(I) Industry review for the reporting period
1. Macro economic situation
In 2019, affected by the rise of trade protection, slow-down of technical revolution, and the increase of uncertainty of geopolitics, etc.,
global economy growth kept slow, the growth of main world economic entities was sluggish. For different countries, tense
international trade situation and sluggish global economy made the economic growth speed of America slow down. Federal Reserve
entered preventive interest rate reduction from interest rate increase channel, had three times of interest reduction in July, September,
and October respectively, and promotes loose monetary policy gradually. Due to trade friction and the uncertainty of Brexit, the
economic growth of Eurozone is sluggish, inflation kept on being low, which is apparently not good as the middle and long term goal.
Japan was also affected by internal and external factors, presented reduction in both export and production, with its economy running
low. Restricted by both external uncertainty and internal structure problems, economic growth of main world emerging market
countries also slowed down, and part of countries all entered into interest reduction channel. Generally speaking, global economy is
still in the deep adjustment period after the international financial crisis, accelerated evolution characteristics of great world change
gets more strikingly, and global fluctuation and risk points increase obviously.
For domestic economy, restricted by Sino-US trade friction, Financial deleveraging, industry transformation and upgrading, etc., the
pressure of economy walking downward is big. According to national statistic bureau, in 2019, annual GDP was 99.1 trillion Yuan,
with an increase of 6.1% compared with the same period last year, conforming to the predicted objective of 6% to 6.5%. However,
economic growth reached record new since 1991, with quarterly growth rate as 6.4%, 6.2%, 6.0% and 6.0% respectively, presenting
quarterly downward trend. Growth rate of Q3 and Q4 reduced to the lowest point during 12 historical quarters. In 2019, fixed asset
investment increased by 5.4% compared with the same period last year, with the increase rate decreased by 0.5% compared with the
whole year of 2018. However, real estate investment was still in downward channel, cumulative real estate investment in 2019
increased by 9.9% compared with the same period last year, with the growth speed fell back by 0.3% compared with January to
November but increased by 0.4% compared with 2018; as for December, it increased by 7.4% compared with the same period last
year, fell back by 1.0% compared with November. With tight policy, investment fell back slowly. In 2019, land purchase area
decreased by 11.4% compared with the same period last year, with a negative increase, decreased by 25.6% compared with 2018.
According to data of China Index Academy, in four quarters of 2019, average land transaction rate of 300 cities were 13%, 21%,
10%, 9% respectively, presenting falling down trend, and the land market cooled down obviously. In 2019, real estate sales decreased
by 0.1% annually, fell down by 1.4% compared with 2018. Under the overall tightening financing environment, real estate sales is
still low.
At the end of 2019, with the mutual function of temporarily slow-down of Sino-US trade friction, loose financial and monetary
policy, forecast improvement of enterprises, etc., economy stabilized in short term, investment and export increased a little, and
consumption kept stable. From the beginning of 2020, the epidemic of COVID-19 spread all over the country quickly, to avoid large
scale flow and aggregation of population, the whole country took the prevention measures of isolation at home, prolonging work and
production resumption, etc., manufacturing, real estate, infrastructure construction stopped basically, which caused apparent shock to
investment, consumption and export in short term. However, after this epidemic, domestic system and mechanism reform expects to
further deepen, stimulate new intelligent, online production and life formats. In long term, China’s economy still has huge
18
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
development potential. With the further deepened structure reform of supply side, scientific and technological innovation vitality
brought by higher level opening up, the improvement of total factor productivity, and constant stability of macro policy, China’s
economy will keep on maintain the basic trend of walking toward better in stability and in long term.
2. Policy environment of the industry
In 2019, for policy of central committee level: at the beginning of the year, two sessions(NPC and CPPCC) clarified to “prevent big
fluctuation of real estate market:; in April, meeting of the Political Bureau of the Central Committee reiterated the basic tone of
“living house being not for speculation; in July, the Political Bureau of the Central Committee put forward for the first time that real
estate will not be take as a means to stimulate economy in short term; at the end of the year, economic work conference of the Central
Committee pointed out to “strengthen urban renewal and stock house renovation and improvement, do renovation work of old urban
communities well, powerfully develop rental house”, and further reiterated to “stick to the position of house being not used for
speculation, and thoroughly implement the long effect regulation mechanism of taking measures according to city situation,
stabilizing land price, house price and forecast”; the Central Committee went through the forecast of from stability to tightening to
stability again. For local finance level: at the beginning of the year, Haikou, Xi’an, Nanjing, and many other cities lowered its talent
settlement threshold, Shijiazhuang opened its settlement and moving-in restriction conditions thoroughly, Hohehot, Ningbo, etc.
released the stimulant measures, such as subsidy for talents to purchase house, etc.; at the middle of the year, Suzhou, Dalian, Xi’an,
etc. enhanced their regulation, and implemented price limit order to maintain the forecast stability of real estate market; since Q3,
many cities focus on new policy on talents, Shanghai, Zhuhai, Nanjing, etc. only loosed its house purchasing threshold for in part
ares, while Changsha, Sanya, Foshan, etc. Loosed its restriction in the whole city, and the local level went through the regulation
process from being loose to being tightening to being loose again.
For financial policy, taking NO. 23 Document in May as the start point, China Banking and Insurance Regulatory Commission ‘s
supervision for bank and trust financing got stricter and stricter, real estate trust and overseas financing showed tightening signal
successively. This policy has relatively small influence on real estate developer with stable finance and high credit, and industry
finance may further be divided. In August, the Central Bank completed its LPR and formed mechanism, loan interest rate pricing
method is adjusted into “LPR plus basis point”. Although currently, house loan still belongs to high quality assets with safety
attributes and this pricing method may have good benefits, under the big background of strict regulation on real estate, loan interest
rate still tend to increase instead of fall. Besides, in 2019, shanty house renovation cooled down apparently, with the construction
amount fell back greatly, and monetary settlement rate reduced.
Looking forward to the future, stability is still the main tone of real estate regulation policy. Long-effect mechanism has been quickly
implemented in leasing, selling, house for living instead of speculation and other regulation links, leads the market to stabilize the
forecast with long-effect mechanism. There expects to be more system policies to be released in 2020. In the future, real estate
market will show the layout of stable sales and regional differentiation, and return to its living attributes.
3. Regional market layout
In 2019, the Central Committee reiterated that the house is for living instead of speculation, real estate financial supervision keeps on
tightening. Under such a background, Shenzhen embraced the releases of GBA Planning Outline, the issuing of opinions on
pioneering socialist demonstration zone, and the adjustment of standard of “mansion tax”, etc., the real estate market kept on going
upward. According to data of China Index Academy of CREIS, in 2019, the whole city launched 43,376 commercial houses with the
area as 4.3777 million square meters, with the supply area increased by 15.1% compared with the same period last year, and the
supply quantity had resumed to the level of 2016; commercial house transaction reached 37,484 sets, with the area as 3.6986 square
meters, with the transaction area increased by 26.48% compared with the same period last year, and the transaction scale reached
record high in recent three years; transaction price of commercial house kept stable, the average annual transaction price was 55,8231
Yuan /square meter, with an increase of 3.14% compared with the same period last year; transaction of second hand house kept
strong, with totally 77,149 second hand houses transacted in the whole year, with the area as 6.3721 square meters, and the
transaction quantity and area reached record high in recent three years, with an increase of 19.4% and 20.1% respectively. The land
market also realized increase in both supply and demand, the whole city launched 56 pieces of land, with the total planning area as
19
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
8.2785 square meters, with an increase of 26.9% compared with same period last year; 48 pieces of land were transacted successfully
in total, with the planning area as 6.7478 million square meters, with an increase of 9.8% compared with the same period last year. In
the future, regulation policy in Shenzhen expects to maintain the main tone of stability, keep on promote the system of both leasing
and purchasing, establish long-effect mechanism, to ensure the real estate market to realize the pattern of stable transition and
multiple consumption.
(II) Business Review for the Company in 2019
In 2019, the Company upheld the core values of “Work Together, Create Together and Share Together”, focused on the major tasks of
“Property Development, Capital Operation and Payment Collection”, and adhered to a market-oriented strategy in operations. As a
result, breakthroughs have been made in multiple major property projects that are leading the Company’s strategic transformation,
the operations of the existing property projects have been fruitful, and a “3+X” diverse business structure is taking shape. More
details are given as follows:
——Operating results achieved a new high as all business divisions thrived. The total assets of the Group exceeded RMB10
billion for the first time in history during 2019. For the year, the Group recorded operating revenue of nearly RMB4 billion for the
first time in history, up 17.32% year-on-year, and a profit before tax reaching RMB1 billion for the first time in history, up 9.42%
year-on-year. Currently, operating revenue mainly comes from property sales, with minor contributions from property management,
house rental, catering service and other businesses. For 2019, the property sales business reported operating revenue of RMB2.740
billion (69.16% of the Group’s total operating revenue), up 20.03% year-on-year; the property management business achieved
operating revenue of RMB1.198 billion (30.24% of the Group’s total operating revenue, a much bigger contribution than before), up
12.83% year-on-year; the catering business generated operating revenue of RMB22 million (0.57% of the Group’s total operating
revenue); and the other businesses combined reported operating revenue of RMB1.0638 million (0.03% of the Group’s total
operating revenue).
——Performance of real estate plate is striking, and land reserve bottle neck is relieved temporarily. Subordinated real estate
companies of the Group actively adapted to the change of macro policy and micro market, adjusted operation strategy timely, seized
the market opportunities quickly, obtained outstanding performance during the reporting period, completed the annual payment
collection objective of Golden Collar Holiday Apartment, Qianhai Harbor Garden, Songhua Langyuan, and made great contribution
for the Group to maintain abundant currency flow and good asset and debt level as well as to complete annual operation objective.
Huangcheng Real Estate Company realized annual operation revenue of about 2.1 billion Yuan, with the net profit as about 0.6
billion Yuan, and revenue and net profit increase in large amount; Phase II project of Xuzhou Company opened quotation at the end
of the year, on the opening day, the subscription got good performance immediately. Meanwhile, the Company powerfully expanded
land projects through bid invitation, auction and listing, merger and acquisition, etc., the new land reserve of the whole year exceeded
120,000 square meters, all the lands are in Shenzhen, and cumulative land reserve is close to 300,000 square meters. The bottle neck
problem of land reserve which has always been restricting the sustainable development of the Company has been relieved initially.
——Property management plate keeps vigorous, and endogenetic expansion is the bright spot. In 2019, ITC Property
Management realized an operation revenue of about 0.55 billion Yuan (including Huangcheng Property Management, Dongguan
Company, Yangzhou Jingyue Property Management), expanded totally 25 high quality property management projects, including,
Jingdong in Chongqing and Chengdu, Giant Interactive Group Inc. in Shanghai, etc., the net management area increased by about
1.48 million square meters, and over-fulfilled the market expansion objective; it registered and established Shenshan Guomao
Property Development Guomao Tongle Property Management and other property management subsidiaries, and innovated business
development mode of property management; it reached property service intention with VCEP to jointly build the demonstration
zone of the “the Belt and Road” initiative, with its market occupancy and brand influence enlarged constantly. The revenue of
Huangcheng Property Management is about 60 million Yuan, and its first external expansion project broke through 0 in the year,
newly expanded project area of 50,000 square meters, including Bank of Communication Tower, Double Innovation Park in
Zhaoqing, etc. The operation revenue of joint venture Yangzhou Jingyue Property Management was about 7 million Yuan, and it
20
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
undertook projects, like 1520 mu of Phase I of Sanwan Scenic Spot of Yangzhou Canal, with the total area as 1.83 million square
meters.
——House asset operation plate realized independent operation, which accelerated the cultivation of core competitiveness.
Housing Assets Operation and Management Company operated independently, actively explored the development mode of
“commercial office + long term rental apartment, with the annual rental more than 60 million Yuan, and especially revitalized the
Mayland parking lot, ONE39 Building, Fumin Complex, realized the operation of “Manshili” to the public. It also adapted to the
market change and adjusted the operation strategy of long term rental apartment, and rented Xiyu Longyuan Store and Longhua Store
out successfully.
—— The business of other plates were carried out in order, the effect of diversified operation strategy was striking. The
operation revenue of Guomao Catering from January to November was about 25 million Yuan, the revolving restaurant stopped
operation for decoration. After decoration, it will take opening up and talks give by Chairman Deng Xiaoping in his inspection to the
south as clues, re-pick up the special administrative zone spirit of “being pioneering and going ahead”, fully manifest the historic
value of revolving restaurant, and expects to bring new growth for catering business income; revenue of the Supervision Company
was about 6 million Yuan; the revenue of SZPRD Jifa Warehouse Co., Ltd. Was about 16 million Yuan, took back the warehouses
which were occupied overdue successfully and unconditionally, and will charge venue fee for overdue occupancy by stages; the
revenue of Tian’an Company was about 20 million Yuan, and all work carried out smoothly.
The second is to focus on increment, and lay solid foundation for the sustainable development of the Group. In 2019, the
company started to expand project resources through merger and acquisition, with obvious incremental effect. Guanlan Bangling
urban renewal project made great breakthrough within the year as the first industrial and urban integration project of the Group, with
a site area of approximately 70,000 square meters and a floor area of more than 600,000 square meters. The purchasing work of TK
Property was completed within 9 and a half month, and created the “Shenzhen Speed” of state owned asset system enterprise merger
and acquisition. After the purchasing, the asset scale of the Group broke through 1 million Yuan for the first time, and it has realized
its nationwide operation and management layout of high end industrial parks with Baoding (Shenzhen) Industrial Park in the north,
Alibaba Hangzhou in the east, Shenzhen Bay Industrial Park in the south and JD in the west. Its high end industrial park management
area reached nearly 8 million square meters, and ranked into the first formation of domestic high end industrial park management,
with its industry position improved obviously. Leasable property area of the Group has increased by 3.5 times to 380,000 square
meters, the area of land which can be developed in Shenzhen was about 54,000 square meters, with striking synergism, which lays
solid foundation for sustainable development of the Group. TK Property realized an annual revenue of about 0.68 billion Yuan, and
became another major growth polar of Group revenue.
The third is to practice marketized operation conception, and to establish stimulation and restriction mechanism of
multi-level. In 2019, the Group implemented following investment of real estate project, and pioneered in state owned asset system
of Shenzhen, which not only opened the new pattern that the Group and employees enjoys the development achievements together,
but also became a pilot field for the Group to change operation revenue and implement marketized operation mode, mechanism,
means and level, realized the Group’s transformation from pure pursuit of project “profits” to efficiency, effect and profits”, and will
further stimulate the employees’ initiative and innovation and improve operation performance; the Group realized remuneration
reform with full coverage for the first time, actively explored to promote multi-layer incentive measures, realized to connect
remuneration level, and punishment and reward measures with marketization level, which is of great significance for preservation
and introduction of core professional personnel and is favorable for driving the high quality stable development of the Group.
(III) Land Bank
1. New additions to the land bank
21
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Considerati
on of the
Planned Floor area How the The
Name of land lot or Locati Total land price acquiree’s
usage of Site area（㎡） with plot land is Company’s
project on (RMB’0,000) interest
land ratio （㎡） obtained interest
(RMB’0,00
0)
Still in the stage of
Guanlan Bangling Shenz Comprehen
68,299 433,640 Acquired 69% demolition, land 50,800
project hen sive
price unpaid
17,997.5
Yupinluanshan Garden Shenz Office, As per
21,924 78,925 Acquired （acquisition 102,738
project hen residential contract
price）
12,256.63
Shenz
Baolu project Industrial 32,425 81,640 Acquired 100% （acquisition 102,738
hen
price）
Note: The last column in the table above shows the considerations of the acquirees’ interests.
2. Cumulative land bank
Floor area available for
Name of project/area Site area（0,000 ㎡） Floor area（0,000 ㎡）
development（0,000 ㎡）
Guanlan Bangling project 6.83 62.47 62.47
Yupinluanshan Garden project 2.19 7.89 7.89
Baolu project 3.24 8.16 8.16
Land in Danshui, Huiyang
1.77 6.20 6.20
District, Huizhou City
Land in Hongqi Town, Haikou
15.80 - -
City
Total 29.83 84.72 84.72
Note: The floor areas of the Yupinluanshan Garden project, the Baolu project and the land in Danshui, Huiyang District, Huizhou
City are floor areas with plot ratio.
(IV) Development status of major projects
Floor
Cumulat
area that
Planned ive floor
% that complet Estimat Cumulat
The Time for floor area that
has ed ed total ive
Compa commenc % area has
City/reg Name of Locatio complet Site area construc investm investm
Usage ny’s ement of develop with complet
ion project n ed （㎡） tion in ent ent
interes constructi ed plot ed
construc the (RMB’0 (RMB’0
t on ratio construc
tion Current ,000) ,000)
（㎡） tion
Period
（㎡）
（㎡）
22
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Golden
Collar’s
Shenzhe Futian Residen
Resort 100% 2014.3 100% 100% 12,598 133,767 182,585 182,585 143,758 86,571
n District tial
apartme
nts
Roof
sealed
atop the
concrete
and
Banshan steel
Tongsha Under
Xuzhou Yujing Residen frame,
n 100% 2019.3 construc 31,537 22,906 0 0 22,124 10,766
City (Phase tial and
District tion
II) seconda
ry
structur
e 40%
complet
ed
Pile
Fuhui Afforda Under foundati
Shenzhe Futian
Huayua ble 100% 2018.12 construc on 4,274 32,050 0 0 90,439 57,631
n District
n housing tion complet
ed
(V) Sales status of major projects
Pre-sale/ Pre-sale/
sales Floor sales
Floor area
The Cumulativ revenue area revenue
Cit Floor area pre-sold/s Cumulativ
Name Comp Floor area e generate settled settled
y/r available old in the e settled
of Location Usage any’s with plot pre-sold/s in the in the in the
egi for sale Current floor area
project interes ratio（㎡） old floor Current Current Current
on （㎡） Period (㎡)
t area （㎡） Period Period Period
（㎡）
(RMB’0 （㎡） (RMB’0
,000) ,000)
23
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Intersection
SZPR
of
D-Qia
Sh Yueliangwa
nhai
en n Boulevard Residentia 100.00 33,306.8
Gang 64,625.13 63,448.26 63,448.26 3,383.81 25,437.8 63,336.29 4,629.70
zh and Xinghai l % 6
wan
en Boulevard in
Garde
Nanshan
n
District
Golde Intersection
Residentia
n of Futian
Sh l, studio
Collar’ South Road
en apartments 100.00 125,234.6 27,102.1
s and Binhe 133,767 34,908.48 34,753.60 276,914 27,102.13 208,550
zh and % 3 3
Resort Road in
en commerci
apartm Futian
al
ents District
Do
ng Songh Residentia
gu u Dalang l, 100.00 147,139.9
140,911 140,911 2,519.96 3,686.9 145,443 9,687 10,432
an Langy Town commerci % 6
Cit uan al
y
6 Huashan
Xu Bansh Road,
zh an Tongshan
100.00
ou Yujing District, Villa 54,589 85,651.61 85,651.61 6,321.47 5,213 83,321.27 4,864 3,888
%
Cit (Phase Xuzhou
y I) City, Jiangsu
Province
6 Huashan
Xu Bansh Road,
Residentia
zh an Tongshan
l (elevator 100.00
ou Yujing District, 22,906 21,720.72 11,728 11,728 14,199 0 0 0
houses of %
Cit (Phase Xuzhou
4-7 floors)
y II) City, Jiangsu
Province
Residentia
Ya
Intersection l units,
ng Hupan
of Shouxihu shops,
zh Yujing 100.00
Road and apartments 36,141.28 48,870.98 41,478.67 1,618.24 156 41,271.18 2,411.74 1,321.29
ou Phase %
Hangou , parking
Cit I
Road garages
y
and lots
24
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Residentia
Ya
Intersection l units,
ng Hupan
of Shouxihu shops,
zh Yujing 100.00
Road and apartments 56,935.75 73,121.96 66,205.83 8,813.37 11,085 63,116.99 8,874.11 9,193.56
ou Phase %
Hangou , parking
Cit II
Road garages
y
and lots
Note: The settled floor area of the Songhu Langyuan project in Dongguan City includes parking lots.
(VI) Rental status of major projects
Cumulative
The Company’s Rentable area Average
Name of project Location Usage rented area
working interest （㎡） occupancy rate
（㎡）
Xi Apartments Apartments for
Shenzhen 100% 3967 3967 100%
(Longyuan) long-term rental
Xi Apartments Apartments for
Shenzhen 100% 1609 1609 100%
(Longhua) long-term rental
Xi Apartments Apartments for
Shenzhen 100% 1600 1600 100%
(Xinhu) long-term rental
Food Court in the
International Trade Shenzhen Commercial 100% 4423 4080 92%
Center
Tower A of Wenjindu Jan.-Nov.: 100%
Shenzhen Office building 5884 5653 96.2%
Port Building Dec.: 75%
Haiwai Lianyi Commercial units Jan.-Nov.: 100%
Shenzhen 9788 9788 100%
Building and offices Dec.: 75%
Jan.-Nov.: 100%
Anhua Building Shenzhen Offices 1414 1414 100%
Dec.: 75%
Residential
Training Jan.-Nov.: 100%
Shenzhen units/offices/com 7682 2796 36.4%
Building/Dormitory Dec.: 75%
mercial units
Jan.-Nov.: 100%
Pengfu Building Shenzhen Offices 6494 6494 100%
Dec.: 75%
Jan.-Nov.: 100%
Shenzhen 1701 1701 100%
Jinfu Building Commercial Dec.: 75%
Shenzhen
100% 568 568 100%
Residential/comm Jan.-Nov.: 100%
5787 5787 100%
Fuxing Garden Shenzhen ercial Dec.: 75%
Commercial 100% 1417 1417 100%
25
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Plant area in Tangxia Dongguan Jan.-Nov.: 100%
Plant 21383 21383 100%
Town, Dongguan City City Dec.: 75%
Pacific Business Commercial Jan.-Nov.: 100%
Shenzhen 18134 15703 86.5%
Building units/offices Dec.: 75%
Commercial Jan.-Nov.: 100%
Kangti Building Shenzhen 3157 3157 100%
units/offices Dec.: 75%
Commercial and Jan.-Nov.: 100%
Lyuhua Building Shenzhen 6297 6297 100%
residential Dec.: 75%
Shops on the ground
Jan.-Nov.: 100%
floor of Tower 48 in Shenzhen Shops 1000 1000 100%
Dec.: 75%
Lianhua North Village
Jan.-Nov.: 100%
Apartments and 2513 2513 100%
Haonianhua Building Shenzhen Dec.: 75%
commercial units
100% 1619 1619 100%
Hostel 2 at Yuxin Jan.-Nov.: 100%
Shenzhen Hostel 3176 3176 100%
School Dec.: 75%
Kaifeng Garden in
Shenzhen Residential 100% 1307 1252 95.8%
Shangmeilin
West Tower of Baihuo Commercial
Shenzhen 100% 13632 13632 100%
Square units/offices
Nanzheng Building Shenzhen Offices 100% 8810 6590 74.8%
Building 409 in
Sangda Industrial Shenzhen Plant 100% 3309 3309 100%
Zone
Mianshui Studio
Shenzhen Apartments 100% 3440 3440 100%
Apartments
Xiangfu Building Shenzhen Commercial units 100% 3109 3109 100%
(VII) Primary land development
□ Applicable √ Not applicable
(VIII) Financing channels Unit: RMB’0,000
Financing cost Maturity structure
Ending balance of
Financing channel range/average
financings Within 1 year 1-2 years 2-3 years Over 3 years
financing cost
Bank loans 219,393.30 4%-6% 93.30 219,300.00
Total 219,393.30 93.30 219,300.00
26
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(IX) Development strategy and operating plan for the coming year
Please refer to “IX Prospects” in “Part IV Operating Performance Discussion and Analysis”.
(X) Provision of guarantees for homebuyers on bank mortgages
√ Applicable □ Not applicable
As a usual practice for real estate developers, the Company has been providing guarantees and security deposits for its homebuyers
on their bank mortgages. As at 31 December 2019, security deposits for such outstanding guarantees amounted to RMB1,120,910.60,
which will be returned upon the expiry of the guarantees, i.e. when the relevant homebuyers paid off their bank mortgages.
As a usual practice for real estate developers, the Company and its subsidiaries has been providing guarantees for its homebuyers on
their bank mortgages, and the homebuyers use their purchased homes as collateral. As at 31 December 2019, the outstanding
guarantee amount was RMB1,812,240,875.59 in total. On the ground that there have been no default by the homebuyers so far and
that the market prices of the relevant properties are currently higher than the trading prices, the Company believes the risk associated
with such guarantees is low.
(XI) Joint investments by directors, supervisors and senior management and the listed company (applicable for such
investments where the directors, supervisors and senior management are the investment entities)
√ Applicable □ Not applicable
Compatibility
As % of the of actual
Amount of
Name of Type of investment % of investment peak of the Cumulativ Disinvest investment
investment
project entity amount project e income ment amount and
(RMB’0,000)
funds distributed
income
Mandatory investment
Urban Renewal entities (including
2,647.00 66.18% N/A 0 None N/A
of Bangling directors and senior
Section at management)
Guanlan Street Voluntary investment
1,353.00 33.82% N/A 0 None N/A
entities
Note: Since this is an ongoing project, the peak of the project funds, cumulative income and disinvestment are unknown. For details,
please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.
II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
27
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
2019 2018
As % of total As % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 3,961,669,942.44 100% 3,376,673,249.90 100% 17.32%
By operating division
Property
2,740,011,690.51 69.16% 2,282,760,505.89 67.60% 20.03%
development
Property
1,198,097,114.02 30.24% 1,061,865,341.89 31.45% 12.83%
management
Catering service 22,497,327.37 0.57% 27,677,194.36 0.82% -18.72%
Other 1,063,810.54 0.03% 4,370,207.76 0.13% -75.66%
By product category
Property
2,740,011,690.51 69.16% 2,282,760,505.89 67.60% 20.03%
development
Property
1,198,097,114.02 30.24% 1,061,865,341.89 31.45% 12.83%
management
Catering service 22,497,327.37 0.57% 27,677,194.36 0.82% -18.72%
Other 1,063,810.54 0.03% 4,370,207.76 0.13% -75.66%
By operating segment
Shenzhen 3,712,909,688.00 93.72% 2,286,409,007.08 67.71% 62.39%
Dongguan 104,316,939.42 2.63% 252,401,699.77 7.47% -58.67%
Other 144,443,315.02 3.65% 837,862,543.05 24.81% -82.76%
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
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 sales 2,740,011,690.51 473,094,327.81 82.73% 20.03% -45.72% 20.91%
Property
1,198,097,114.02 938,758,632.94 21.65% 12.83% 15.58% -1.86%
management
By product category
28
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Property sales 2,740,011,690.51 473,094,327.81 82.73% 20.03% -45.72% 20.91%
Property
1,198,097,114.02 938,758,632.94 21.65% 12.83% 15.58% -1.86%
management
By operating segment
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2019 2018 Change (%)
Sales volume m2 69,138.45 60,245 14.76%
Property
Output m2 262,098 262,098 0.00%
development
Inventory m2 114,628 158,489 -27.67%
Any over 30% YoY movements in the data above and why:
□ Applicable √ Not applicable
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
2019 2018
Operating
Item As % of total cost As % of total cost Change (%)
division Cost of sales Cost of sales
of sales (%) of sales (%)
Property
473,094,327.81 33.00% 871,541,406.96 50.96% -45.72%
development
Property
938,758,632.94 65.48% 812,213,761.80 47.49% 15.58%
management
Catering service 21,187,618.40 1.48% 24,267,757.21 1.42% -12.69%
Other 575,306.29 0.04% 2,267,624.96 0.13% -74.63%
Notes:
N/A
29
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
Four new entities were added to and one entity was excluded from the consolidated financial statements of 2019 compared to 2018.
For details, please refer to “VIII Changes to the Scope of the Consolidated Financial Statements” in “Part XII Financial Statements”.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 138,669,567.95
Total sales to top five customers as % of total sales of the
3.50%
Reporting Period (%)
Total sales to related parties among top five customers as %
0.77%
of total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for
No. Customer As % of total sales revenue (%)
the Reporting Period (RMB)
1 Alibaba (China) Co., Ltd. 40,935,059.58 1.03%
Shenzhen Bay Technology Development
2 30,371,848.90 0.77%
Co., Ltd.
3 SF Technology Co., Ltd. 27,928,635.64 0.70%
4 Alibaba (China) Technology Co., Ltd. 22,273,082.83 0.56%
5 Natural person 1 17,160,941.00 0.43%
Total -- 138,669,567.95 3.50%
Other information about major customers:
√ Applicable □ Not applicable
The Company’s controlling shareholder Shenzhen Investment Holdings Co., Ltd. holds 100% of shares of Shenzhen Bay Technology
Development Co., Ltd. which exists related-party relationship with the Company.
Major suppliers:
Total purchases from top five suppliers (RMB) 341,196,729.00
Total purchases from top five suppliers as % of total purchases of
75.34%
the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
30
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
The Second Construction Co., Ltd of
1 China Construction Third Engineering 144,810,000.00 31.98%
Bureau
2 Jiangsu Hanjian Group 110,750,000.00 24.46%
3 Shenzhen Hongtao Group Co.,Ltd. 30,513,800.00 6.74%
Shenzhen Dingsheng Xingye Technology
4 27,985,529.00 6.18%
Co., Ltd.
5 Shenzhen Grandland Group Co., Ltd. 27,137,400.00 5.99%
Total -- 341,196,729.00 75.34%
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expense
Unit: RMB
2019 2018 Change (%) Reason for any significant change
Increases in commissions for sales agents
Selling expenses 111,553,952.50 46,501,225.18 139.89%
and advertising expenditure
Administrative Increase in payments for remuneration and
204,654,552.64 162,378,284.09 26.04%
expenses office administrative expense
Finance costs 134,718,833.57 -65,830,939.26 -304.64% Increase in long-term borrowings
Income tax
262,716,180.91 220,260,863.60 19.28% Increase in realized profits
expenses
4. R&D Expense
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2019 2018 Change (%)
Subtotal of cash generated from
5,264,435,040.93 3,368,161,064.17 56.30%
operating activities
Subtotal of cash used in operating
4,324,645,474.97 2,136,443,007.99 102.42%
activities
31
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Net cash generated from/used in
939,789,565.96 1,231,718,056.18 -23.70%
operating activities
Subtotal of cash generated from
357,613.40 80,017,263.11 -99.55%
investing activities
Subtotal of cash used in investing
1,031,698,003.98 125,212,463.57 723.96%
activities
Net cash generated from/used in
-1,031,340,390.58 -45,195,200.46 2,181.97%
investing activities
Subtotal of cash generated from
2,236,220,000.00 3,450,000.00 64,717.97%
financing activities
Subtotal of cash used in financing
2,740,366,078.11 198,234,654.66 1,282.38%
activities
Net cash generated from/used in
-504,146,078.11 -194,784,654.66 158.82%
financing activities
Net increase in cash and cash
-595,682,024.42 991,743,577.15 -160.06%
equivalents
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Cash generated and net cash flows from operating activities increased from last year, primarily driven by the increase in expenses
for project development in the Reporting Period.
② Cash used and net cash flows from investing activities increased from last year, primarily driven by the increase of payments for
investment in the Reporting Period.
③ Cash used and net cash flows from financing activities increased from last year, primarily driven by the increase of interest
expense.
④ Net increase in cash and cash equivalents decreased from last year, primarily driven by the increase in project development
expense, investment expense and income expense in the Reporting Period.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
√ Applicable □ Not applicable
For the Reporting Period, the net cash flows from operating activities stood at RMB939,789,565.96, representing a big difference
with the net income of RMB742,130,050.54, which was mainly because of the increase in interest expense of the Company and the
time difference between related taxes provisions and actual payment.
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of total
Amount Source/Reason Exceptional or recurrent
profit
Investment
5,076,839.48 0.51% Investment income of main joint ventures Recurrent
income
32
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Asset
-1,234,250.84 -0.12% Bad debt provision for inventories Exceptional
impairments
Non-operating Related accounts that the Company cannot
23,732,348.28 2.36% Exceptional
income pay
Non-operating Paying legal cost, overdue fine and
4,793,503.85 0.48% Exceptional
expense compensation for removing tenants
Credit
-18,701,016.31 -1.86% Bad debt provision for accounts receivable Exceptional
impairments
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2019 31 December 2018 Change in
Reason for any significant
As % of total As % of total percentage
Amount Amount change
assets assets (%)
Payment for equity transfer
Monetary assets 3,297,890,935.91 30.61% 3,907,602,032.67 55.64% -25.03%
with large amount
Increase in property
Accounts management subsidiary’s
216,923,663.25 2.01% 155,898,006.77 2.22% -0.21%
receivable accounts receivable from
house owners
Incorporation of Rongyao
Real Estate and increase in
Inventories 4,913,510,876.66 45.61% 1,396,154,603.04 19.88% 25.73%
subsequent development
expense
Stripping assets and
Investment
503,323,428.61 4.67% 639,167,209.48 9.10% -4.43% withdrawing depreciation
property
by TK Property
Increase in investment
Long-term equity
45,076,122.72 0.42% 39,999,283.24 0.57% -0.15% income under equity
investments
method
Stripping assets and
Fixed assets 93,557,782.83 0.87% 102,516,975.36 1.46% -0.59% withdrawing depreciation
by TK Property
Long-term New borrowings in the
2,193,833,000.00 20.37% 1,000,000.00 0.01% 20.36%
borrowings Reporting Period
Intercourse funds with
Other receivables 917,981,165.74 8.52% 80,037,483.65 1.14% 7.38%
shareholders of Rongyao
33
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Real Estate before
acquisition
Increase in deductible
Deferred income
658,153,122.73 6.11% 520,832,796.49 7.42% -1.31% losses and withdrawal of
tax assets
unpaid VAT of land
Other non-current The prepaid equity transfer
4,711,963.66 0.04% 109,851,318.29 1.56% -1.52%
assets money has been defrayed
Increase in construction
Accounts payable 577,689,139.10 5.36% 435,350,850.19 6.20% -0.84%
funds of real estate projects
Increase in presale funds
Advances from
728,186,032.63 6.76% 278,045,801.46 3.96% 2.80% received from real estate
customers
projects
Increase in investments of
Other non-current
108,164,737.46 1.00% 64,627,587.61 0.92% 0.08% Bangling Project by
liabilities
employees
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Impairmen
fair-value t Purchased
Cumulative Sold in the Other
Beginning changes in allowance in the Ending
Item fair-value changes Reporting change
amount the for the Reporting amount
charged to equity Period s
Reporting Reporting Period
Period Period
Financial assets
4. Investments in other 10,362
3,621,381.11 -2,051,268.24 1,580,475.86
equity instruments .99
Subtotal of financial 10,362
3,621,381.11 -2,051,268.24 1,580,475.86
assets .99
10,362
Total of the above 3,621,381.11 -2,051,268.24 1,580,475.86
.99
Financial liabilities 0.00 0.00 0.00
Other changes are impacts of exchange rate fluctuation.
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
34
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3. Restricted Asset Rights as at the Period-End
① Shenzhen Huazhengpeng Property Management Development Co., Ltd., the subordinate of the Company’s subsidiary Shenzhen
Toukong Property Management Co., Ltd., held a sum of restricted assets of RMB11,018.00 in the frozen account; Shenzhen Taixinli
Real Estate Management Co.,Ltd., the subordinate of Shenzhen Toukong Property Management Co., Ltd., held a sum of restricted
assets of RMB7,063,237.32 in the frozen account. For details about relevant lawsuits, please refer to Part V-XII Major Legal Matters.
② Shenzhen Shenlv Park Technology Industrial Co.,Ltd., the subordinate of the Company’s subsidiary Shenzhen Toukong Property
Management Co., Ltd., held the performance guarantee bonds of RMB49,020.00 which was the performance guarantee for the
agreement with the number of 20190531SLYL signed between the Company and Shenzhen Administrative Office of Greening on 31
May 2019.
③ As a real estate developer, the Company provided purchasers of commercial residential building with mortgage guarantee and paid
cash deposits of loans according to the operation convention in real estate industry. As of 31 December 2019, the balance of cash
deposits not releasing guarantee was of RMB1,120,910.60, and the guarantee will be released when mortgage is paid off.
④ There was RMB4,301,516.52 of interest from the fixed time deposits which was undue and withdrawn at the period-end among
the Company’s monetary assets.
V Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
2. Major Equity Investments Made in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Invo
Profits or
lvin
Invest Sharehol Capit Inve Progress Estim losses of
g in Disclosu
Main ment Investment ding al stme Type of as of the ated investment Disclosure index
Investee Partner laws re date
business metho amount percentag resou nt products balance incom in the (if any)
uit (if any)
d e rces term sheet date e Reporting
or
Period
not
Announcement
Shenzhen
Shenzhen on Acquisition
Xinhai
Rongyao of Equity
Rongyao Develop
Real Lon Ownership 11 Interests in
Real Acquis 508,000,000 Self-o Real ment of -168,106,5
Estate 69.00% g-ter transfer of 0.00 No February Target Company
estate ition .00 wned Estate real 08.82
Developm m equity 2019 and Providing
Developm estate
ent Co., Guarantee for it
ent Co.,
Ltd. (No.: 2019-2) on
Ltd.
Cninfo
35
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Announcement
on Acquisition
Property of 100% of
manage Equity Interests
Shenzhen
ment, in Shenzhen
Toukong Shenzhen
Property Lon house Ownership 21 Toukong
Property Acquis 1,027,382,5 Self-o Investmen 112,965,25
manage 100.00% g-ter rent and transfer of 0.00 No Septemb Property
Managem ition 13.56 wned t Holdings 1.79
ment m real equity er 2019 Management
ent Co., Co., Ltd.
estate Co., Ltd. and
Ltd.
develop Related-party
ment Transactions
(No.: 2019-33)
on Cninfo
-55,141,25
1,535,382,5
Total -- -- -- -- -- -- -- -- 0.00 7.03 -- -- --
13.56
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Lo
Accumu
ss on Source
Initial Account lated
fair Purchas Gain/los
Variety Beginni fair Sold in of
Code of Name of ing value ed in s in Ending Account
investm measure ng value Reporti
of changes Reporti Reporti carrying investm
security security carrying changes ng
ment in ng ng value ing title
security ent cost method value Reporti charged Period ent
Period Period
to
ng funds
equity
Period
Investm Obtaine
Gintian ents in d in
Domesti Fair
400016, A, 3,565,8 3,621,3 -205,12 10,362. 1,580,4 other Gintian’
c/Foreig value 0.00 0.00 0.00
420016 Gintian 56.06 81.11 68.24 99 75.86 equity s debt
n stock method
B instrum restructu
ents ring
3,565,8 3,621,3 -205,12 10,362. 1,580,4
Total -- 0.00 0.00 0.00 -- --
56.06 81.11 68.24 99 75.86
36
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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.
5. Use of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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 Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationsh
Principal Registered Operating
Name ip with the Total assets Net assets Operating profit Net profit
activity capital revenue
Company
37
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen Developm
Huangcheng ent and
Subsidiary 30000000 3,051,184,643.99 755,935,507.32 2,088,366,016.40 790,032,903.22 593,756,497.76
Real Estate sales of
Co., Ltd. real estate
Shenzhen
Toukong Property
Property Subsidiary manageme 30000000 1,012,030,800.62 319,156,030.36 677,228,822.59 130,913,158.78 114,059,286.52
Managemen nt
t Co., Ltd.
Shenzhen
Developm
Rongyao
ent and
Real Estate Subsidiary 10000000 4,154,532,177.09 343,495,206.60 0.00 -284,126,674.33 -243,632,621.48
sales of
Developmen
real estate
t Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and operating
Subsidiary
disposed in the Reporting Period performance
Shenzhen Rongyao Real Estate Development Co., Business combination not under the Income was of RMB0, and the net profit
Ltd. same control was of RMB-244 million
Shenzhen Toukong Property Management Co., Business combination under the Income was of RMB677 million, and the
Ltd. same control net profit was of RMB114 million
Shenzhen Shenshan Special Cooperation Zone Income was of RMB34,000, and the net
Newly established
Guomao Property Development Co., Ltd. profit was of RMB-1.9922 million
Shenzhen Guomao Tongle Property Management
Newly established Both income and net profit are of RMB0
Co., Ltd.
VIII Structured Bodies Controlled by the Company
√ Applicable □ Not applicable
For details, see IX 1. Equity interests in subsidiaries in Part XII Financial Report herein.
IX Prospects
(I) Development Environment Analysis
Refer to "(I) Review of industry development during the reporting period" in "Part IV: Operating Performance Discussion and
Analysis"
(II) The Company’s Future Development Strategy
As the traditional real estate market’s development declines on the whole, various industrial resources have been continuously
occupied by the large-scale brand houses, which has threatened the survival and development of medium and small-sized property
companies. “Large-scale Enterprises Taking All Advantages” has become normal in the industry, and the positioning of “Houses are
38
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
for living in, not for speculating on” has already been established. In this case, Shenzhen Properties & Resources Development
(Group)Ltd. specialized in the traditional real estate will be confronted with the extremely severe industrial situation. In order to
implement the overall strategic layout formulated by Land and Resources Bureau of Shenzhen Municipality, the Company has made
great effort to seek effective breakthroughs, thoroughly connected with the system of Land and Resources Bureau, kept abreast of the
major strategic orientation featuring gradient of layers and multiple industrial parks in one district and combined fund control, and
learned from the leading enterprises in the benchmarking industry. The Company put forward the development vision of
“Becoming Top 1 Intelligent Technology Industrial Park Full Eco-chain Integrated Operator in China and even Leading the
World”. Through following the overwhelming trend of the real estate market from the age of increments to the age of stocks and
seizing the golden opportunity posed by the transformation of the social major contradiction, the Company has attached great
importance to the key points of stock assets’ value management and industrial and ecological operation services, propelled the
high-quality development based on new development ideas and satisfied people’s longings for better life.
In this context, the Company put forward the “12345” overall development idea of “1 Vision + 2 Major Sectors + 3 Driving
Factors + 4 Businesses + 5 Value-added Services”. In other words, the Company will take effective measures with the focus on
“Hi-tech Industrial Park” and “Resident Community”, and relying on the driving innovation power, the leverage of capital and the
platform linkage mechanism as the inexhaustible motive force for development, pay special attention to develop four major
businesses through expanding the main business and making breakthroughs including the urban space development, the industrial
ecological operation, property management services, and high-end value-added services. Meanwhile, the Company will realize the
rapid deployment and integration of five major value-added services.
The Company will moderately deploy the high-quality heavy-asset operating properties, and the highly market-operated light-assets
operating properties, and simultaneously carry out the heavy-assets operation and the light-assets operation with the priority given to
the light-assets operation, highlighting the asset value management capability, the industrial ecological operational capability and the
channel resources platform integration capability; the Company will also strengthen the driving role played by the strategic objective,
establish the humanistic thought, broaden the horizon of human resources allocation, build and improve the mechanism and
proportion of all employees to share various development results, and strive to shape a beautiful life scene. In 2025, the Company
will make its four business segments advance side by side, complement each other, realize the coordinated development, catch up
with and surpass the world’s advanced level. With strong comprehensive strength and unique brand advantages, it will become Top 1
Intelligent Technology Industrial Park Full Eco-chain Integrated Operator in China and even Leading the World, and further promote
the core competitiveness of Shenzhen.
(III) Major Works and Tasks for 2020
In 2020, the guiding ideology of the Group is: being guided by Xi Jinping's thought on Socialism with Chinese Characteristics for
a New Era, comprehensively implemented the spirit of the 19th CPC National Congress, the spirit of the 2nd, 3rd and 4th plenary
sessions of the 19th CPC Central Committee and the spirit of the Central Economic Working Conference, actively devoting to
Shenzhen for the construction of Pilot Demonstration Area of Socialism with Chinese Characteristics, promoting the great practice of
the construction of GBA, overall implementing series decision and deployment of municipal SASAC, adhering to being oriented by
problems, development and solid work, properly seizing the major historical opportunities of big reform and big integration of state
owned assets and state owned enterprises in Shenzhen, keeping steady, seeking progress in stability, and doing things well with
concentration and devotion, keeping on fighting the three battles of “project development, capital operation and sales payment
collection”, making efforts in “revitalization, digestion, turnover, effect”; following the Group to promote merger process based on
scale and resources, timely initiating coordination of strategic principles, organizing framework optimization, integrating business
line, reconstructing control process, integrating enterprise culture, etc, and other integral reform, and forming institution, process,
system and information advantages at new level; strengthening technological innovation carrier construction and capability
construction, enhancing the Group products and service development ability, being oriented by the market, taking customers as the
center, benchmarking the world class, and building operation and management mode of high end intelligent technological park;
giving full play to the platform advantages of listed companies, actively carrying out market value management, and building the
39
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
listed company image of being active, positive and responsible; implementing elite talent program, cultivating and introducing to
accelerate the backbone talents and core talents cultivation process, forming backbone talents foundation for leaping development
and transformation development of the Group as soon as possible; continuing reinforcing Party guidance work of the Group,
implementing the Party Committee to control the direction and the major situation overall to ensure execution and positioning,
promoting the construction of a honest and clean Party solidly, consolidating the clean and righteous work and entrepreneurship
atmosphere, practically changing the political advantages into core competitiveness of the Group Company and high quality
development efficiency, striving for completing various objectives and tasks of 2020 thoroughly with solid belief, noble mission
awareness, strong responsibility and high fighting posture, and laying solid foundation for the blueprint of “the 14th Five-Year Plan”
of the Group Company. The specific is as following:
Firstly, the Company shall seize the opportunity and take the initiative to occupy three heavily-fortified positions,
continuously reinforce its development potentials and firmly promote the group’s high-quality development. Strictly adhering
to the functional orientation of establishing the main Company and the platform Company, the Company will accordingly take the
initiative to occupy three heavily-fortified positions in relation Sales Outstanding, Project Development and Capital Operation, and
flexibly apply various marketing methods to guarantee the full completion of the annual sales target. The Group will ensure to realize
the collection objective of RMB2.5 billion of sales payment in 2020, to obtain 200,000 square meters of industrial park type land and
200,000 square meters of residential land reserve successfully by marketized means, and to actively explore multiple financing
channels to raise funds for project development and construction. By occupying three heavily-fortified positions, the Company’s
development potentials will be further enhanced. In addition, the Company will continuously optimize its business development
structure, improve its business development quality, strive to realize the high-quality foundation, operation level and development
potentials, and firmly drive the Company’s high-quality growth.
Secondly, the Company will spare no effort to guarantee the fulfillment of annual business target. Based on the comprehensive
budget, the Company will effectively implement the budget plan, figure out various in-depth potential factors and formulate the
operating budget for the year 2020 in a scientific and reasonable way, complete various budget objectives, carry out strict assessment
work and properly implement the supervision and inspection. Various branches not involved in the real estate are required to increase
the income and reduce the expenditure, save the cost and improve the efficiency, contributing to the increase of operating profits of
the group. Constantly strengthen coordination and control for general project objective, node objective, progress time table, and
investment plan, with the key on fine decoration of Tower A and C of SZPRD-Golden Collar’s Resort, construction commencement
of Phase I and II of Guanlan Bangling, making efforts to complete project setting of Fuyuan Industry Park, land replacement for
Baolu, the ceiling of Phase II of Fuchang, and promoting the construction of Phase II of Xuzhou and Yupin Luanshan.
Thirdly, the Company shall stick to the development strategy of externally expanding its property management business,
realize its large-scale expansion, enhance its core competitiveness and expand the brand influence. By continuously learning
from the leading enterprise within the bench-marking industry, the Company will seek ways for expanding its property management
business to the overseas market, and facilitate the Company to transform from the supplier of traditional property management
services to the supplier of internationalized and modernized comprehensive social services. Regarding high-end high-tech industrial
parks, cultural tourism, municipal engineering and medium and high-end residence communities as key points, the Company will
realize its large-scale expansion by means of merges and acquisitions and the establishment of industrial acquisition fund, emphasize
the improvement of various competitive advantages in the field of industrial parks, continuously improve the service innovation
ability, form the unique brand influence and core competitiveness, enhance the introduction and training of core property
management cadres and talents, and establish the talent base for its rapid expansion. In this year, the Company shall try its best to
make the expanded property management area through M&A no less than 10 million square meters and the self-developed area no
less than 1 million square meters.
Fourthly, the Company will insist on the comprehensive deepening of the reform, further optimize the system, define the
power-responsibility system, firmly implement the system and strengthen the development momentum. The Company must
respect the laws of the market, optimize the rational allocation of resources, and effectively establish a mechanism for sharing
40
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
benefits. Meanwhile, it is required to strengthen the market-oriented management in the business areas of group real estate, property
management, and long-term rental apartments etc., improve the decision-making efficiency and level, rationally allocate resources
according to the rules of market value, provide all necessary support, and ensure the unification of “efficiency, benefits and effects”.
At the same time, the Company will further set up multi-layered incentive and restraint systems based on completing the Group’s
internal remuneration reform, and the real estate project investment system, fully introduce the incremental sharing mechanism,
strengthen the assessment, lay the common material benefits foundation for all members’ fulfillment of core values such as
Concentric Effort, Co-creation and Sharing, and guarantee the long-term, stable and sustainable development of the Group.
In the fifth step, the Company shall focus on the new mission for its development, continuously strengthen its basic
management ability, and help the Group become the first-class enterprise in this industry. The first is to accelerate the
informationization process of the Group, and pull the comprehensive system construction of OA integration of the whole Group,
online operation of internal bid invitation and purchase of the Group and financial EAS; the second is to adapt to the new situation,
properly optimizes control framework and process design of the Group, and complete the responsibility and right division system of
the Group with subordinated enterprises; the third is to complete brand construction of the Group and re-sorting work of enterprise
culture, and form the brand strategy and culture recognition of upper to lower consistency and plate synergy; the forth is to steadily
promote standardization construction of product and service of the Group, establish R&D center of the Group and reserve fund
system of R&D, construct scientific and technological system of the Group, and gradually enhance scientific and technological
innovation ability of the Group and improve the contribution of scientific and technological innovation in development of the Group;
the fifth is set up special organization of urban renewal at Group level to be specially in charge of early stage work of urban renewal,
study activation and development solution of stock land and house property, and ownership confirmation of land and house property.
The sixth is to further complete the governing of listed company and strengthen the construction of board of directors and
supervisory committee. Start and complete the amendment work of articles of association of the Group, overall implement and
imbed the latest supervision requirements of state owned assets, specify the operation mode of “blank belt” of supervision and
authorization, make the board of directors more practical and stronger and enlarge the authorization of operation team, and
practically improve the supervisors’ ability to perform duties and communication and coordination with board of supervisors before
major decision making practically.
The seventh is to be guided by the Party, and to fully exert the leading function of the Party organization”. The Group will
thoroughly promote the front square construction of International Trade Center Building and exhibition hall of reform and opening
up on the 42th floor, and open the revolving restaurant on the 49th floor, completely manifest the profound history of the Group,
rebuild the Group brand quality image of “going ahead and reforming”. The Group will practically strengthen to integrate the Party
guidance with business, cultivate healthy work style and morality, grow positive energy, foster innovative atmosphere, create new
pattern of operation and development, and effectively exert the Party Committee of the enterprise’s role in controlling directions,
grasping the overall situation and ensuring implementation. The Group will promote the construction of a clean and honest Party,
enhance the construction of anti-corruption management system, give full play to the sharp weapon function of discipline
construction in treating both principal and secondary problems, complete brand construction of the Group overall and re-sorting work
of enterprise culture, and form the brand strategy and culture recognition of upper to lower consistency and plate synergism.
The eighth is to enhance risk control and stick to safe production bottom line firmly. The Group will strictly implement the
deployment of safe production of top units, constantly promote standardization of safe production and the construction of “double
prevention mechanism, carry out list management for risk of key fields and important links, and strive for improving the ability of
“accident prevention” and “emergency handling”. The Group will constantly follow up litigation cases, contract review, risk removal
and other work, strengthen follow-up and implementation of major risk momentum. The Group will enhance supervision for petition
letter and visits, and stability maintenance and investigation on hidden problems, and reinforce to handle left historical problems,
solve petition letter and visits problems appropriately, and make sure that no safe production accident happens in the whole year, and
make the situation stable and controllable.
(IV) Analysis of the Company’s Possible Risks
41
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
1. Market-related Risks
Affected by factors such as Sino-US trade friction, financial de-leveraging and industrial upgrading and transformation, in 2019,
China’s economy suffered increasing downturn pressure, which may cause a decline in the effective demand and exert adverse
influence on the Company’s continuing operation. At present, the real estate market has reached its later period of adjustment and
control. In despite of a downturn, under the guide of the policy “Houses are for living in, not for speculating on”, the adjustment
made to the real estate market is still strictly controlled. From the perspective of demand, the real estate sales still declined in 2019;
from the perspective of supply, the real estate financing from various channels was relatively difficult and the sales payment returned
continuously dropped. It is estimated that the pressure on the fund end would continue to increase.
The Company has made great effort to probe deeply into various opportunities and challenges posed by the macro-economic trend
and policies, positively realize a strategic breakthrough and put forward the development vision of “China’s First Smart Technology
Park Ecological Chain Comprehensive Operator Toping the World” in order to follow the significant trend of the real estate market
evolving from the age of increment to the age of stock and firmly hang on to the core link of stock assets value management and
industrial ecological operation service. In addition, while strengthening the traditional mainstream business, the Company will also
expand its property business and accelerate the layout of house renting business as well as implement diversified development
strategy so as to gain various opportunities for its future sustainable development.
2. Land Reserve Risk
As a matter of fact, the Company still lacks enough land reserves and development power at later stages. In recent years, the supply
of residential land on Shenzhen Market has continuously declined. As the price of each single plot increases year after year, various
large-scale real estate enterprises have enlarged their market shares and accelerated their M&A pace. While the real estate industry is
centralizing, the degree of centralization of the land reserve scale has also been enhanced. As the external environment and the
industry’s trend become much more complicated and severe, the increment market scale will further shrink and the market
competition will become increasingly fierce.
Impacted by various factors including the refined regulatory policies, the fiercer industrial competition and insufficient resources, the
Company will deepen its internal reform, reinforce the market management and make special effort to improve the business
development mode and internal management measures. External cooperation in various forms will also be developed in line with
corresponding urban renewal policies and the city’s development planning. Except for the land bid, auction and listing, diversified
land purchase policies obtained by means of cooperation, acquisition and strategic operation will be applied to obtain various lands.
3. Financing Risk
In 2019, a new round of real estate financing was tightened and various measures were taken to reorganize the real estate trust
financing. Currently, various means of financing have been under strict supervision, including the bank loan, trust, bond and private
equity etc. Various real estate financing policies have become unprecedentedly stringent. In the process of actively increasing land
reserves and accelerating the business development, the Company needs to invest a large amount of funds for land acquisition and
project development. In addition to its own funds, the Company’s project development funds need to be externally financed through
bank loans and issuing securities. If the country’s macroeconomic situation, credit policy and capital market undergo ultra-expected
major changes or adjustments, it may lead to restrictions on the Company’s financing or the Company’s financing costs, which will
adversely affect the Company’s production and operation.
Currently, the Company has steady financial situation, sufficient cash flow and good credit condition, and will further strictly control
financial risks, actively explore various financing channels so as to raise funds for project development in the future.
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2020. Whether it
can be achieved depends on various factors including changes in market conditions and the effort made by the management
team. Investors must pay special attention to that because there exists huge uncertainty.
42
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
X Communications with the Investment Community such as Researches, Inquiries and
Interviews
1. During the Reporting Period
√ Applicable □ Not applicable
Type of communication
Date Way of communication Index to main information communicated
party
Inquired of stock prices and business
22 February 2019 By phone Individual
development of the Company
Inquired of stock prices of the Company and
27 February 2019 By phone Individual
Bangling Project and Qianhai Project
Inquired of the acquisition progress of TK
5 March 2019 By phone Individual
Property
8 March 2019 By phone Individual Inquired of project progress of the Company
Inquired of stock prices and business
14 March 2019 By phone Individual
development of the Company
Inquired of the acquisition progress of TK
25 March 2019 By phone Individual
Property
Easy Interaction Platform of
4 April 2019 Individual Inquired of land reserve of the Company
Shenzhen Stock Exchange
Inquired of performance and stock prices of
17 April 2019 By phone Individual
the Company
Easy Interaction Platform of
18 April 2019 Individual Inquired of Golden Collar’s Resort Project
Shenzhen Stock Exchange
29 April 2019 By phone Individual Inquired of stock prices of the Company
Easy Interaction Platform of Inquired of progress of Shouxihu Sci-Tech
9 May 2019 Individual
Shenzhen Stock Exchange Innovative Ecological Park
Inquired of progress of the Special Pilot Area
Easy Interaction Platform of
9 May 2019 Individual of Shenzhen-Bama Health Cooperation
Shenzhen Stock Exchange
Project
Easy Interaction Platform of Inquired of the Company’s market value
9 May 2019 Individual
Shenzhen Stock Exchange management
Easy Interaction Platform of Inquired of progress of Golden Collar’s
17 June 2019 Individual
Shenzhen Stock Exchange Resort Project
Easy Interaction Platform of Inquired of sales of Golden Collar’s Resort
23 June 2019 Individual
Shenzhen Stock Exchange Project
Inquired of the annual report and project
27 June 2019 By phone Individual
construction of the Company
43
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Easy Interaction Platform of Inquired of disclosure of the Company’s
2 July 2019 Individual
Shenzhen Stock Exchange interim report
Easy Interaction Platform of Inquired of business development of the
6 July 2019 Individual
Shenzhen Stock Exchange Company
Easy Interaction Platform of Inquired of property management of Golden
8 July 2019 Individual
Shenzhen Stock Exchange Collar Project
Easy Interaction Platform of Inquired of the Company’s performance in
8 July 2019 Individual
Shenzhen Stock Exchange the first half of the year
Inquired of business progress of the
9 July 2019 By phone Individual
Company
Easy Interaction Platform of Inquired of Golden Collar Project’s property
9 July 2019 Individual
Shenzhen Stock Exchange market value
Easy Interaction Platform of
11 July 2019 Individual Inquired of Golden Collar Project
Shenzhen Stock Exchange
Easy Interaction Platform of Inquired of commercial buildings selling of
11 July 2019 Individual
Shenzhen Stock Exchange the Company
Easy Interaction Platform of
13 July 2019 Individual Inquired of Fuchang II Project
Shenzhen Stock Exchange
Inquired of project construction progress and
15 July 2019 By phone Individual
financial condition of the Company
Easy Interaction Platform of Inquired of commercial buildings selling of
17 July 2019 Individual
Shenzhen Stock Exchange the Company
Easy Interaction Platform of Inquired of the desterilization of restricted
19 July 2019 Individual
Shenzhen Stock Exchange shares
Easy Interaction Platform of Inquired of number of the Company’s
23 August 2019 Individual
Shenzhen Stock Exchange shareholders
Easy Interaction Platform of
11 September 2019 Individual Inquired of shareholders of the Company
Shenzhen Stock Exchange
Inquired of B-shares repurchase by the
12 September 2019 By phone Individual
Company and acquisition of TK Property
Easy Interaction Platform of
19 September 2019 Individual Inquired of shareholders of the Company
Shenzhen Stock Exchange
Easy Interaction Platform of Inquired of the Company’s internal control
9 October 2019 Individual
Shenzhen Stock Exchange system
Inquired of the reasons for falling stock
13 November 2019 By phone Individual
prices of the Company
Easy Interaction Platform of Inquired of number of the Company’s
13 November 2019 Individual
Shenzhen Stock Exchange shareholders
44
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Inquired of the reasons for falling stock
14 November 2019 By phone Individual
prices of the Company
Easy Interaction Platform of Inquired of the acquisition progress of TK
21 November 2019 Individual
Shenzhen Stock Exchange Property
Easy Interaction Platform of
6 December 2019 Individual Inquired of the Company’s property assets
Shenzhen Stock Exchange
Inquired of the reasons for share transfer to
16 December 2019 By phone Individual China Orient Asset Management Co., Ltd. by
Shenzhen Investment Holdings Co., Ltd.
Inquired of the reasons for falling stock
20 December 2019 By phone Individual
prices of the Company
Inquired of performance and project
24 December 2019 By phone Individual
construction of the Company
Times of communications 41
Number of institutions communicated with 0
Number of individuals communicated with 41
Number of other communication parties 0
Tip-offs or leakages of substantial
supposedly-confidential information during None
communications
45
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part V Significant Events
I Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, for ordinary shareholders was formulated, executed or revised
in the Reporting Period:
□ Applicable √ Not applicable
The profit distributions to ordinary shareholders, either in the form of cash or stock, in the past three years (including the Reporting
Period) are summarized as follows:
Year Profit distributions (in the form of cash or stock)
2019 A cash dividend of RMB3.60 (tax included) per 10 shares and no share capital increase from capital
reserve
2018 A cash dividend of RMB3.00 (tax included) per 10 shares and no share capital increase from capital
reserve
2017 A cash dividend of RMB3.00 (tax included) per 10 shares and no share capital increase from capital
reserve
Cash dividend for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
Net profit
attributable to
ordinary Total cash
Cash shareholders Cash dividends dividends
A as % of B in other forms C as % of B D as % of B
Year dividends (tax of the listed (including
(%) (such as share (%) (%)
inclusive) (A) company in repurchase) (C) those in other
consolidated forms) (D)
statements for
the year (B)
2019 214,552,473.12 817,805,780.12 26.24% 214,552,473.12 26.24%
2018 178,793,727.60 698,050,728.96 25.61% 178,793,727.60 25.61%
2017 178,793,727.60 663,742,776.33 26.94% 178,793,727.60 26.94%
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for the ordinary shareholders despite the
facts that the Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to the
ordinary shareholders are positive.
□ Applicable √ Not applicable
II Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
46
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 3.60
Additional shares to be converted from capital
0
reserve for every 10 shares (share)
Total shares as the basis for the profit distribution
595,979,092.00
proposal (share)
Cash dividends (RMB) (tax inclusive) 214,552,473.12
Cash dividends in other forms (such as share
0.00
repurchase) (RMB)
Total cash dividends (including those in other
214,552,473.12
forms) (RMB)
Distributable profit (RMB) 1,677,296,289.46
Total cash dividends (including those in other
100%
forms) as % of total profit distribution
Cash dividend policy
If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
According to the Company’s Articles of Association as well as the actual situation of its development and operation, the proposal of
the Company for 2019 annual profit distribution is as follows: Based on the total 595,979,092 shares of the Company as at 31
December 2019, a cash dividend of RMB3.60 (tax included) will be distributed to all its shareholders for every 10 shares they hold,
with the total cash dividends to be distributed amounting to RMB214,552,473.12. And the retained profits will be carried over for
distribution in the future. No capital reserves will be turned into share capital for 2019.
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
Date of Term of
Type of
Commitment Promisor Details of commitment commitme commitme Fulfillment
commitment
nt making nt
47
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Wholly-owned subsidiary Shenzhen
Expander and subsidiary holding SPG
of Shenzhen Investment Holdings
Commitments on
deal with real estate operation and
Shenzhen horizontal
commercial house sales, which belong 6
Investment competition, Three Normal
Commitments to the same industry of the Listed September
Holdings Co., related-party years performance
made in Company, and has horizontal 2018
Ltd. transactions and
acquisition competition with the Listed Company.
capital occupation
documents or To avoid horizontal competition,
shareholding Shenzhen Investment Holdings make
alteration the following commitments1.
documents Commitments on
Shenzhen horizontal To reduce and standardize related
6
Investment competition, transactions with the Listed Company, Normal
September Long-term
Holdings Co., related-party Shenzhen Investment Holdings makes performance
2018
Ltd. transactions and the following commitments . 2
capital occupation
Shenzhen Investment Holdings sighed
Other
Shenzhen Performance equity transfer contract on 100%
commitments 23
Investment commitment and equity transfer of TK Property with Three Normal
made to September
Holdings Co., compensation the Company, and the contract years performance
minority 2019
Ltd. arrangement stipulated relevant commitments on
shareholders
performance3.
Fulfilled on time Yes
Note 1: Wholly-owned subsidiary Shenzhen Expander and subsidiary holding SPG of Shenzhen Investment Holdings deal with real
estate operation and commercial house sales, which belong to the same industry of the Listed Company, and has horizontal
competition with the Listed Company. To avoid horizontal competition, Shenzhen Investment Holdings make the following
commitments: 1. On the horizontal competition solution of Shenzhen Expander: as the holding shareholder of the Listed Company,
during the listing period at Shenzhen Stock Exchange of the Listed Company, as for the current business of Shenzhen Expander
which has horizontal competition with the Listed Company, within the scope permitted by law and regulation, within 12 months from
the equity of SZPRD being transferred to Shenzhen Investment Holdings, Shenzhen Investment Holdings will start the solution with
practical operability among below horizontal competition solution timely and complete implementation of the solution within 3 years
from the date that the equity of SZPRD is transferred to Shenzhen Investment Holdings to solve current horizontal competition
problems: (1) Shenzhen Expander signs asset custody agreement with the Listed Company, entrusts the assets which has direct
competition with the Listed Company to the Listed Company, confirms fair custodian fee at the same time, and takes effective
measures to solve horizontal competition within commitment period; (2) Inject assets with direct competition with the Listed
Company into the Listed Company; (3) Transfer assets with direct competition with the Listed Company to unrelated third party; (4)
other measures which can solve horizontal competition effectively and is favorable for protecting the interest of the Listed Company
and legal interests of other shareholders. Before solving current horizontal competition, while company, enterprise, economic
organization (not including enterprises controlled by the Listed Company, hereinafter referred to as subordinated Companies) which
the Listed Company and Shenzhen Investment Holdings hold controlling shares or controls actually have business, in case the
involved dispute, etc. have major influence on the business, Shenzhen Investment Holdings should keep neutral as a controlling
shareholder to ensure that the Listed Company and subordinated Companies can take part in market competition on the principle of
48
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
fair competition. 2. Horizontal competition solution of SPG: From 14 September 2016 to now, SPG has had stock suspension
because of major assets reconstruction. According to Review Opinions on Delaying Stock Resumption because of Major Assets
Reconstruction of SPG announced by CITIC Securities and Huatai Securities on 26 November 2016, the reconstruction solution is
that SPG plans to issue A share and / or use currency to purchase 100% equity of Evergrande Group (hereinafter referred to as “the
reconstruction of SPG”). After SPG completes this reconstruction, Guangzhou Kailong Real Estate Co., Ltd. will become the
controlling shareholder of SPG. Therefore, in case the reconstruction of SPG completes successfully, Shenzhen Investment Holdings
will lose the control on SPG. By then, the horizontal competition between SPG and SZPRD will be solved. In case the reconstruction
of SPG is terminated for some reasons, for business of SPG which has horizontal competition with the Listed Company, Shenzhen
Investment Holdings, within the scope permitted by law and regulation, Shenzhen Investment Holdings will start a rational horizontal
competition solution according to actual situation at the time within 12 months after the termination of reconstruction of SPG and
stock resumption announcement date, and fulfill announcement obligation, and SPG will complete to implement the solution and
solve the horizontal competition between SZPRD and SPG within 3 years from the date SPG terminates the reconstruction and
announces stock resumption. 3. Other commitments to avoid horizontal competition: as the controlling shareholder of the Listed
Company and during the listing period of the Listed Company at Shenzhen Stock Exchange, other subordinated Companies of
Shenzhen Investment Holdings will not engage in relevant business which has direct horizontal business competition with the Listed
Company in new business fields except for in the business field where it already has had horizontal competition with the Listed
Company. Shenzhen Investment Holdings promises not to seek improper benefits with the position of controlling shareholder of the
Listed Company and damage the interest of the Listed Company and its shareholders. In case of violating above commitment,
Shenzhen Investment Holdings shall undertake corresponding legal liabilities, including but not limited to undertaking compensation
responsibilities for all losses caused to the Listed Company.
On 17 October 2019, the Company received Correspondence on the Progress of Horizontal Competition Solving from controlling
shareholder Shenzhen Investment Holdings. During the commitment period of horizontal competition solving, Shenzhen Investment
Holdings actively fulfilled its relevant commitments, with the details as the following: 1. Shenzhen Investment Holdings is sorting
out the relevant assets and business of Shenzhen Expander, and studying to formulate the solution of horizontal competition. Due to
the long history of Shenzhen Expander and the complicated asset state, relevant solution needs to be further analyzed and
demonstrated. Shenzhen Investment Holdings will active promote relevant work, strives for solve competition problem within
commitment period. 2. The reconstruction of SPG with Evergrande Group is in the process, Shenzhen Investment Holdings will start
a rational horizontal competition solving solution according to ongoing situation of reconstruction and announce timely. 3. Within the
commitment period, Shenzhen Investment Holdings will not engage in relevant business which has direct horizontal business
competition with SZDRP in new business fields except for in the business field where it already has had horizontal competition with
SZDRP. Shenzhen Investment Holdings does not seek improper benefits with the position of controlling shareholder of SZPRD and
damage the interest of the Listed Company and its shareholders.
Note 2: To reduce and standardize related transactions with the Listed Company, as controlling shareholder of the Listed company
and during the listing period of the Listed Company at Shenzhen Exchange Stock, Shenzhen Investment Holdings promises: 1.
Shenzhen Investment Holdings and its controlling or actually controlled companies, enterprises, economic organizations (not
including enterprises controlled by the Listed Company, hereinafter referred to as the “subordinated companies”) will strictly
exercise the rights of shareholders according to provisions of laws, regulations, and other normative documents, and fulfill the
obligations of shareholders, and keep the independence of the Listed Company in assets, finance, employees, business and agency,
etc. 2. Shenzhen Investment Holdings promises not to use its position of controlling shareholder to promote board of shareholders or
board of directors to make resolutions which may damage the legal interest of the Listed Company or other shareholders; 3.
Shenzhen Investment Holdings and its subordinated companies will try their best to avoid having related transactions with the Listed
Company. In case the transaction with the Listed Company is inevitable, Shenzhen Investment Holdings and its subordinated
companies will have transaction with the Listed Company on the basis of equality and free will, according to fair, rational and normal
commercial transaction conditions, will not require or accept conditions which is more preferential than the Listed Company gives to
49
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
the third party in any fair market transactions, and strictly fulfill various related transactions with the Listed Company with good will.
4. Shenzhen Investment Holdings and its subordinated companies will strictly fulfill decision making procedures and relevant
information disclosure obligations of related transactions according to articles of association of the Listed Company and relevant
laws and regulations. 5. Shenzhen Investment Holdings and its subordinated companies will make sure that they will not seek special
interests beyond above stipulations by having related transactions with the Listed Company, will not use related transactions to
illegally transfer funds and profits of the Listed Company and to maliciously damage the legal interests of the Listed Company and
its shareholders. 6. As for current related transaction with the Listed Company, within the scope permitted by laws and regulations,
Shenzhen Investment Holdings promises to confirm rational related transaction solution within 12 months after the Company shares
are transferred to Shenzhen Investment Holdings, and complete to implement the solution within 5 years after the Company shares
are transferred to Shenzhen Investment Holdings, to solve such related transactions completely. The specific forms include: (1) After
current related transaction contract expires, it will not be renewed. In case contract renewal is necessary according to the operation
needs of the Listed Company, it will fulfill relevant decision making procedures strictly according to procedures of related
transactions. (2) Under the precondition of possible realization, terminate contract which is being fulfilled, and adopt marketized and
open bid invitation, etc., inquire again on service items involved in such related transactions to confirm appropriate service provider.
In case related transaction is involved, it should fulfill relevant decision making procedures according to related transaction
procedures. (3) In case there is possibility of price re-negotiation in the related transaction contract which is being fulfilled, conduct
price negotiation again, make the contract amount after re-pricing conform to market price and not higher than the amount of contract
which is being fulfilled, and strictly fulfill relevant decision making procedures according to related transaction procedures.(4) Other
appropriate measures which can reduce and finally eliminate current related transaction but not necessary. 7. In case of violating
above commitments, Shenzhen Investment Holdings shall undertake corresponding legal liabilities, including but not limited to
undertaking compensation liability for all the losses caused to the Listed Company.
Note 3: Shenzhen Investment Holdings sighed equity transfer contract on 100% equity transfer of TK Property with the Company,
and the contract stipulated: 1. Shenzhen Investment Holdings promises that the cumulative net profits (net profit after deducting
extraordinary items) of TK Property from 2019 to 2021 will not be less than 18% of the equity transfer payment amount of this
transaction, i.e. three-year cumulative net profits ≥ equity transfer payment * 18%. The above net profits are subject to the amount
which is confirmed by audited financial report of TK Property. 2. In case three-year cumulative profits of TK Property fails to reach
above promised amount, TP Property shall compensate the insufficient part to the Company in full amount by cash. In case three-year
cumulative profits (net profit after deducting extraordinary items) of TK Property is more than the promised amount, the Company
will not refund. 3. In case Shenzhen Investment Holdings needs to fulfill performance compensation obligation, it shall complete the
performance compensation obligation within 30 days after receiving the compensation notice of the Company, and the specific
delivery method will be agreed by both parties. In case Shenzhen Investment Holdings delays to pay the performance compensation,
it shall pay liquidated damages of 3/10000 of unpaid amount for each day delay. In case of failing to pay for more than 90 days, then
Company has the right to cancel the contract.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□Applicable √ Not applicable
IV 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.
50
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□Applicable √ Not applicable
VI YoY Changes to Accounting Policies, Estimates and Methods
√ Applicable □ Not applicable
Changes to main accounting policies:
1. The Company prepared 2019 Financial Statements in accordance with the Notice on Revising and Printing the Format of 2019
General Enterprises Financial Statement (CK [2019] No. 6), the Notice on Revising and Printing the Format of Consolidated
Financial Statements (2019) (CK [2019] No. 16) issued by the Ministry of Finance and the requirements of the Accounting Standards
for Business Enterprises. Retroactive adjustment was adopted for the changes in the accounting policy. The significantly affected
items and amounts in 2018 Financial Statements are as follows:
Item and amount in original financial statement Item and amount in new financial statement
Notes receivable and accounts Notes receivable
155,898,006.77
receivable
Accounts receivable 155,898,006.77
Notes payable and accounts Notes payable
435,350,850.19
payable
Accounts payable 435,350,850.19
2. The Company starts to implement the Accounting Standards for Business Enterprises No.22-Recognition and Measurement of
Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets, Accounting Standards for
Business Enterprises No. 24-Hedging and Accounting Standards for Business Enterprises No.37-Presentation of Financial
Instruments (hereinafter referred to as the new standards governing financial instruments) revised by the Ministry of Finance. As
required by the connection regulation for the old and new standards, the information of comparative period was not adjusted, and the
beginning retained earnings or other comprehensive income of the Reporting Period shall be retroactively adjusted for the difference
between the original standards and the new one when implemented on the first execution date. For more details, please refer to the
Note V Changes to Main Accounting Policies and Accounting Estimates in the Company’s 2019 Financial Statements.
3. The Company starts to implement the revised Accounting Standards for Business Enterprise No. 7-Exchange of Non-monetary
Assets since 10 June 2019 and implement the revised Accounting Standards for Business Enterprises No. 12-Debt Restructuring
since 17 June 2019. Prospective application method will be adopted to treat this change to accounting policies.
VII Retrospective Restatements due to Correction of Material Accounting Errors in the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
For the detailed changes to the Company’s consolidated statements of the Reporting Period, see “Part XII Financial Statements”,
51
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
VIII.
IX Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor Pan-China Certified Public Accountants (LLP)
The Company’s payment to the domestic independent auditor
85
(RMB’0,000)
How many consecutive years the domestic independent auditor
One year
has provided audit service for the Company
Names of the certified public accountants from the domestic
Wang Huansen, Chen Yan
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
Two years for Wang Huansen and one year for Chen Yan
have provided audit service for the Company
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
√ Yes □ No
Indicate by tick mark whether the independent auditor was changed during the audit period.
□ Yes √ No
Indicate by tick mark whether an approval procedure was implemented for the change of independent auditor.
√ Yes □ No
Further details about the change of independent auditor:
Reviewed and approved by the Annual General Meeting of 2018, the Company hired Ruihua Certified Public Accountants (LLP)
(hereinafter referred to as “Ruihua CPA”) as the Company’s independent auditor in 2019 providing audit service for the Company.
Ruihua CPA adhered to the principle of independent audit in the course of practicing, and reflected the financial status of the
Company in an objective, fair and impartial way, earnestly fulfilled their due responsibilities, and effectively safeguarded the
legitimate rights and interests of the Company and its shareholders from a professional perspective.
Based on the demand of business development and future audit of the Company and bilateral communication and negotiation, Ruihua
CPA was no longer the independent auditor of the Company. The Company held the 12th Meeting of the 9th Board of Directors and
the 1st Extraordinary General Meeting of 2020 respectively on 30 December 2019 and 15 January 2020 and determined to hire
Pan-China Certified Public Accountants (LLP) as the auditor for the 2019 Financial Statements and internal control of the Company.
The said proposal has been approved both on the board meeting and shareholders meeting.
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
In this Reporting Period, the Company engaged Pan-China Certified Public Accountants (LLP) for its internal control audit and paid
an internal control audit fee of RMB0.25 million to it for the period.
X Possibility of Listing Suspension or Termination after Disclosure of this Report
□ Applicable √ Not applicable
52
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Major Legal Matters
√ Applicable □ Not applicable
Index
to
Disclo disclo
Involved amount Decisions and Execution of
General information Provision Progress sure sed
(RMB’0,000) effects decisions
date infor
matio
n
Litigation matters in
disputes over See Part XII See Part XII See Part XII
environmental pollution 815.4 None Financial Financial Financial
liability of Fuchang Report-XIV-2 Report-XIV-2 Report-XIV-2
Building II
See Part XII See Part XII See Part XII
Summary of other
840.62 Yes Financial Financial Financial
contract disputes
Report-XIV-2 Report-XIV-2 Report-XIV-2
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
53
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
XVI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
As % of
Index
total Approv
Relation Over Obtainable to
Total value of ed Method
ship Type of Specific Pricing Transa the market Disclo disclo
Related value all transacti of
with the transacti transacti principl ction approve price for sure sed
party (RMB’0, same-ty on line settleme
Compan on on e price d line or same-type date infor
000) pe (RMB’0 nt
y not transactions matio
transacti ,000)
n
ons
Related-
party
transacti
Shenzhen Wholly-
ons
Bay owned
governi Property
Technolo subsidia Market Agree
ng sales manage
gy ry of the principl ment 3,037.18 2.54% N/A N/A Cash 3,037.18
of ment
Develop Compan e price
commo services
ment Co., y as the
dity and
Ltd. parent
providin
g of
labors
Wholly- Related-
owned party
Shenzhen subsidia transacti
Hi-Tech ry of ons
Zone Shenzhe governi Property
Market Agree
Develop n Bay ng sales manage
principl ment 142.09 0.12% N/A N/A Cash 142.09
ment Technol of ment
e price
Construct ogy commo services
ion Develop dity and
Company ment providin
Co., g of
Ltd. labors
54
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen Wholly-
Shentou owned
Real subsidia Market Agree
Estate ry of the Lease Office principl ment 37.32 0.01% N/A N/A Cash 37.32
Develop Compan e price
ment y as the
Co.,Ltd. parent
Shenzhen Wholly- Entruste
Shentou owned d
Real subsidia Investm manage Market Agree
Estate ry of the ent ment principl ment 455.24 1.66% N/A N/A Cash 455.24
Develop Compan property services e price
ment y as the of
Co.,Ltd. parent houses
Total -- -- 3,671.83 -- -- -- -- -- --
Large-amount sales return in detail N/A
Give the actual situation in the
Reporting Period (if any) where an
estimate had been made for the total The Company’s wholly-owned subsidiary TK Property has completed equity change
value of continuing related-party registration in November 2019, relevant estimated approval procedure is not applicable.
transactions by type to occur in the
Reporting Period
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
√ Applicable □ Not applicable
Carrying Assessed
Profit or
value of value of
Relations Transfer loss of the Index to
Type of Specific the the Method
Related hip with Pricing price transactio Disclosur disclosed
transactio transactio transferre transferre of
party the principle (RMB’0, n e date informati
n n d assets d assets settlement
Company 000) (RMB’0, on
(RMB’0, (RMB’0,
000)
000) 000)
55
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Announc
ement on
Acquisiti
on of
100% of
Equity
Interests
in
Shenzhen Equity
The Equity Shenzhen
Investme interests 21
Company interests Market 105,946.0 102,738.2 Toukong
nt acquisitio 39,614.40 Cash 0 Septembe
as the acquisitio valuation 4 5 Property
Holdings n of TK r 2019
parent n Managem
Co., Ltd. Property
ent Co.,
Ltd. And
Relate-Pa
rty
Transacti
ons (No.:
2019-33)
on Cninfo
Reasons for relatively large difference
between the transfer price and the carrying N/A
value or assessed value (if any)
Influence on the Company’s operating
Refer to Part XII Financial Report-VIII Changes of Consolidation Scope for details
results and financial condition
The equity transfer contract agrees that the accumulative net profit (deducted
Performance realization during the
non-recurring profit or loss) of three years from 2019 to 2021 of TK Property shall be
Reporting Period when relative
not less 18% of the amount paid for the equity transfer. The net profit of TK Property
transactions involved performance promise
for the Reporting Period was RMB114 million.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.
√ Yes □ No
Receivable from related parties
56
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Capital
Beginning Amount Amount Ending
occupation for newly added received in Current
Related Relationship with balance in current current Interes interest balance
Reason non-operating
party the Company (RMB’0,0 period period t rate (RMB’0,0 (RMB’0,
purposes (RMB’0,000 (RMB’0,000 00)
00) ) ) 000)
(yes/no)
Shenzhen
Wholly-owned
Bay Business
subsidiary of the
Technology circulating No 5,406.18 7,252.6 3,279.75 0.00% 0 9,379.03
Company as the
Developme funds
parent
nt Co., Ltd.
Shenzhen
Wholly-owned
Hi-Tech
subsidiary of
Zone Business
Shenzhen Bay
Developme circulating No 95.10 136.38 113.05 0.00% 0 118.43
Technology
nt funds
Development
Constructio
Co., Ltd.
n Company
The parent
company of the
Shenzhen Business
subsidiary
Xinhai circulating
Rongyao Real No 105,790 50,640 0.00% 0 55,150
Holdings funds before
Estate’s minority
Co., Ltd. acquisition
shareholder
Xinhai Rongyao
Shenzhen
Minority
Xinhai Business
shareholder of
Rongyao circulating
the subsidiary No 33,207.29 160 0.00% 0 33,047.29
Real Estate funds before
Rongyao Real
Developme acquisition
Estate
nt Co., Ltd.
Shenzhen
Wufang
26% equities Business
Pottery &
held by the circulating No 174.73 0.00% 0 174.73
Porcelain
Company funds
Industrial
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
financial conditions.
condition
Liabilities payable to related parties
57
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Amount Amount
Beginning newly added returned in
Relation with Formation Interest Current interest
Related party balance in current current
the Company reason rate (RMB’0,000) Ending balance
(RMB’0,000) period period (RMB’0,000)
(RMB’0,000) (RMB’0,000)
Shenzhen Jifa
Intercourse
Warehouse Joint venture 2,929.67 650 3,579.67
funds
Co., Ltd.
Shenzhen
Tian’an
International
Intercourse
Building Joint venture 521.43 521.43
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 Major Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
√Applicable □ Not applicable
Description of trusteeship situation:
1) On 20 August 2018, the Company signed Entrusted Management Agreement with Shenzhen Investment Holdings, and agreed that
Shenzhen Investment Holdings entrusts the Company to manage its sole subsidiary - TK Property, with the entrusted management
term from 20 August 2018 to 20 January 2019, totally 6 months. During the entrusted management period, Shenzhen Investment
Holdings entrusted the daily operation and management power of TK Property for our party to exercise. Shenzhen Investment
Holdings continues to have the ownership, rights to earnings and disposal right of TK Property, and make decisions for major events
according to provisions of state owned asset supervision and articles of association of TK Property.
2）On 6 November 2019, Shenzhen Investment Holdings signed Equity Transfer Contract of TK Property with our party, our party
plans to purchase 100% equity of TK Property held by Shenzhen Investment Holding. Regarding to historical problems left in part
land and properties of TK Property and the complexity for handling, Shenzhen Investment Holdings and TK Property signed
Entrusted Operation and Management Agreement of Stripped Land and Assets of TK Property with TK Property, Shenzhen
Investment Holdings, TK Property and our party all confirmed that it is the consensus of three parties to “entrust land and properties
which is stripped to Shenzhen Investment Holdings in land and property disposal solution of TK Property to TK Property for
operation and management again before ownership confirmation and being transferred to SZPRD according to price evaluation
58
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
agreement. Refer to Reference No.: 2019-33 announcement-Announcement on Purchasing 100% Equity and Related Transactions of
TK Property disclosed by cninfo on 21 September 2019 for details.
Projects whose profits and losses for the Company reached more than 10% of the total profits during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major guarantees
√ Applicable □ Not applicable
(1) Guarantees
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure
Guarante
date of the
Actual Having e for a
guarantee Line of Actual Type of Term of
Obligor guarantee expired related
line guarantee occurrence date guarantee guarantee
amount or not party or
announcem
not
ent
Guarantees provided by the Company for its subsidiaries
Disclosure
Guarante
date of the
Actual Having e for a
guarantee Line of Actual Type of Term of
Obligor guarantee expired or related
line guarantee occurrence date guarantee guarantee
amount not party or
announcem
not
ent
Shenzhen Rongyao 27 November
Real Estate 18 October 27 November 2019 to 20
500,000 219,300 Joint-liability No Yes
Development Co., 2019 2019 November
Ltd. 2024
59
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen 20 July 2018
29 March General
Huangcheng Real 75,000 20 July 2018 93.3 to 20 June No Yes
2018 guaranty
Estate Co., Ltd. 2021
Total approved line for such Total actual amount of such
guarantees in the Reporting Period 500,000 guarantees in the Reporting 219,300
(B1) Period (B2)
Total approved line for such Total actual balance of such
guarantees at the end of the 575,000 guarantees at the end of the 219,393.3
Reporting Period (B3) Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure
Guarante
date of the
Actual Having e for a
guarantee Line of Actual Type of Term of
Obligor guarantee expired related
line guarantee occurrence date guarantee guarantee
amount or not party or
announcem
not
ent
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved in
500,000 amount in the Reporting 219,300
the Reporting Period (A1+B1+C1)
Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee line at
balance at the end of the
the end of the Reporting Period 575,000 219,393.3
Reporting Period
(A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the
69.69%
Company’s net assets
Of which:
Balance of guarantees provided for shareholders, actual controller
0
and their related parties (D)
Balance of debt guarantees provided directly or indirectly for
219,393.3
obligors with an over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the
61,995.85
Company’s net assets (F)
Total of the three amounts above (D+E+F) 219,393.3
Compound guarantees:
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
60
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
√ Applicable □ Not applicable
Carrying
value of Assessed Rela
Name of Name of Base Prici Execution
the value of the Transact ted
Name of the other evaluati date of ng Related as of the Disclo Index to
Signing involved involved ion price trans
contracti party of Target ve evalua prin relations end of the sure disclosed
date assets assets (RMB’0 actio
ng party the agency tion (if ciple hip Reporting date information
(RMB’0,0 (RMB’0,000 ,000) ns or
contract (if any) any) s Period
00) (if ) (if any) not
any)
Shenzhe 69% of Shenzhe Announcement
n Shenzhen equity n on the
Has
Properti Xinhai interests in Pengxin Acquisition of
Asse completed
es & Rongyao Shenzhen Assets, 11 Equity Interests
26 31 t-bas the
Resourc Real Rongyao Land Not Februa in the Target
February -26,373.23 74,650.4 July ed 50,800 No acquisition
es Estate Real and Real related ry Company and
2019 2018 appr of related
Develop Developm Estate Estate 2019 Providing
oach equity
ment ent Co., Developm Appraisa Guarantees for it
interests
(Group) Ltd. ent Co., l Co., (No.: 2019-6) on
Ltd. Ltd. Ltd. Cninfo
61
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhe
n
Announcement
Investm
on the
ent
Shenzhe Acquisition of
100% of Holding
n 100% of Equity
equity s Co., Has
Properti Interests in
interests in Pan-Chi Asse Ltd. is completed
es & Shenzhen 21 Shenzhen
Shenzhen 6 na 31 t-bas the the
Resourc Investmen 102,738. Septe Toukong
Toukong November 39,614.4 105,946.05 Appraisa March ed Yes Controlli acquisition
es t Holdings 25 mber Property
Property 2019 l Co., 2019 appr ng of related
Develop Co., Ltd. 2019 Management
Managem Ltd. oach sharehol equity
ment Co., Ltd. and
ent Co., der of interests
(Group) Related-Party
Ltd. the
Ltd. Transactions
Compan
(No.: 2019-33)
y and
on Cninfo
TK
Property
XVIII Corporate Social Responsibility (CSR)
1. Measures Taken to Fulfill CSR Commitment
Since its inception, SZPRD has been adhering to the concept of honesty, responsibility and win-win cooperation for the benefit of
society. The Company actively fulfills its social responsibilities and always takes repaying the society as an important development
concept. It actively fulfills its statutory social responsibilities and ethical social obligations, and unifies the realization of economic
and social benefits to create an excellent corporate image. The Company carried out the following activities to perform its social
responsibility in 2019:
1) Actively Organize and Conduct the Voluntary Blood Donation Activity
In order to commemorate the 98th anniversary of the founding of the Communist Party of China and carry forward the good moral
integrity of being helpful and selfless, on 1 July, the party committee of Shenzhen International Trade Center Property Management
Co., Ltd. subordinated to SZPRD together with the Jiabei Community Station of Nanhu Sub-district in Luohu District and
International Trade Center Sub-branch of Shenzhen Branch of Bank of China held the activity of “Red Banner & Red Action”
Voluntary Blood Donation, attracting a total of 132 people to voluntarily donate their blood on the day with the total amount of blood
donation 45,700 ml. In fact, the number of people involving the blood donation and the donated blood volume all exceeded that in
previous years.
Since 2011, the party committee of Shenzhen International Trade Center Property Management Co., Ltd. has insisted on carrying out
the theme activity for public benefits of “Red Banner & Red Action” to commemorate the party’s birthday every year, allowing party
member volunteers to play an exemplary role. Fortunately, the activity has attracted the active response from the owners and tenants
of ITC Building, various party organizations in the southern business district and Jiabei Community station and people from all walks
of life, and become a unique party building activity featuring “the secretary controls the activity, the party branch creates the brand,
and the party members strive for becoming the vanguard”. This activity has been held for consecutive nine years. In terms of this
activity, more than 600 people have donated their blood voluntarily with the total unpaid blood donation volume exceeding 225,000
ml.
2) Care for the employees and shoulder social responsibilities
62
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
On January 10 when the spring festival was coming, to make grass-root employees, especially employees who has financial problems,
have a warm and harmonious spring festival, Party secretary and president of SZPRD, Liu Shengxiang, deputy secretary of the Party
committee, secretary of the Commission for Discipline Inspection and chairman of the labor union, Wei Xiaodong, vice general
president Zhang Gejian, and other leaders went to the grass roots for visit and consolation, brought consolation products and money
for them, and made grass-root employees feel the warmth of the enterprise.
On May 26 to enrich the culture life of employees, display enterprise culture of pioneering, innovation and keeping pace with the age,
SZPRD held the first competition of “fitness test”. The competition carried out in a compact and orderly way. All the participants
gave the best account of oneself and displayed fine sportsmanship, manifested the enterprise spirit of “going ahead and reforming” of
SZPRD personnel, and reflected the good team spirit of “uniting together and making efforts together”.
On July 10 to practice the spirit of the 19th National Congress of the Communist Party of China, implement work assisting
mechanism within the Party, normalize Party member’s consolation activities on major festivals, combining with the theme education
of “staying true to our founding mission”, Party Committee of SZPRD carried out “July 1” symposia to console Party members who
have difficulty, and sent care and warmth of the Party organization to them.
To actively respond the call of municipal SASAC, combining with the theme education work arrangement of “staying true to our
founding mission”, from August 8 on, direct subordinated Party Organization of SZPRD carried out money donation on Guangdong
Poverty Relief Day of 2019 on and off. By August 26 totally RMB38,495.50 was raised. Since Party Committee of SZPRD
initialized to carry out money donation activity, each direct subordinated Party organization actively prepared for it, and called for
Party members and common people for wide participation. Charity fund raised this time will be donated to targeted poverty
alleviation village -- Shima Village, Beiling Town, Longchuan County, Heyuan City according to a certain ratio. The rest funds will
be listed into poverty relief fund of the Group for help internal employees who have difficulties.
3) Construct red education bases, and carry forward the spirit of reform and opening up
In March, to fully dig the historic value of ITC Building, SZPRD started the construction preparation work of historic exhibition
center of reform and opening up in ITC Building. After its construction, it will boast education, study, display and exchange functions,
as well as become a red education base which displays the historic value of reform and opening up and spirits of the time.
As the birth place of “Shenzhen Speed” and former place of talks given by Chairman Deng Xiaoping in his inspection to the south in
1992, ITC Building wins the attention and worship of the whole country again. In 2019, totally 20 batches of trainees of the training
course of the Party School of the CPC Municipal Committee, totally 2000 persons, visited ITC Building. SZPRD powerfully carries
forward the spirit of reform and opening up and makes the spirit pass down forever.
4) Social honors won
On March 8 the winners list of first IFMA held by IFMA China came out, and “Renovation Project of ITC Building Air Conditioner
Energy Saving” declared by subordinated ITC Property Management of SZPRD won “Best Innovation Award”.
On July 3 at Grand Ceremony of Shenzhen Real Estate in 2019 as well as Comprehensive Evaluation Briefing of the Industry” held
by SREA, SZPRD won “Brand Value Enterprise of Shenzhen Real Estate Development Industry” and “30-Year Vice President Unit
Since the Establishment of Shenzhen”.
On July 15 Shenzhen Property Management Association released Ranking Analysis Report of Top 50 Property Management
enterprises in Comprehensive Capacity of Shenzhen in 2018 to disclose top 50 enterprises, and TK Property ranked the 15th in it,
ranking three places higher than in 2017.
In August, the selection result of “Guangdong Top 500 Enterprises in 2019” jointly held by Guangdong Provincial Federation of
Enterprises and Guangdong Federation of Entrepreneurs came out. The comprehensive capacity of SZPRD won thorough recognition
and highly evaluation, and was selected as “Guano Top 500 Enterprises in 2019”, which is its 15th time to win such a honor. The
selection has been carried out for 15 years consecutively, has stirred up a lot of attention and been attached more importance, and has
become the authoritative reference for measuring influence, scale and comprehensive capacity of an enterprise.
In September, China Civil Engineering Society, CCES, disclosed the selection result of Tien-yow Jeme Civil Engineering Prize,
63
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
SZPRD-Hupan Yujing won “Gold Prize of Residential Community of Tien-yow Jeme Civil Engineering Prize”, with its product
quality winning the authoritative recognition of the industry. There were 31 residential communities winning “Gold Prize of
Residential Community of Tien-yow Jeme Civil Engineering Prize” in 2019, and 14 projects (single excellence”) were praised.
Yangzhou Hupan Yujing project of SZPRD finally Gold Prize of Residential Community after experts’ comprehensive evaluation in
planning design, architectural design, environment design, engineering quality, scientific and technological innovation. The project
team always remain true to quality, emphasize details, quality and brand, stick to striving for perfection in each link of design,
construction, and management, which finally win such a honor.
In December, Shenzhen Property Management Association held summary and commendation conference of 2019, ITC Property
Management won the honor of “Enthusiastic Charity Enterprise in the Industry of Shenzhen Property Management in 2019”. ITC
Property Management is keen on social public welfare. In 2019, it carried out the money donation activity of “Alleviating Poverty
and Passing Love”, solved medical equipment project for Daping Township Hospital of Puge County, Liangshan Yi Autonomous
Prefecture, Sichuan, displayed the spirit of being brave to shoulder social responsibility and selfless in devotion, and won the
recognition of the industry and the society.
2. Measures Taken for Targeted Poverty Alleviation
The Company didn’t take any targeted measures to help people lift themselves out of poverty during the Reporting Period, no
targeted poverty alleviation plan temporarily too.
3. Issues Related to Environmental Protection
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection
authorities.
No.
No such cases in the Reporting Period.
XIX Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
64
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Shares
as
as
divide
dividend
Percenta New nd Percentag
Shares converte Other Subtotal Shares
ge (%) issues conver e (%)
d from
ted
capital
from
reserves
profit
I. Restricted shares 352,511,223 59.15% 0 0 0 -350,579,943 -350,579,943 1,931,280 0.33%
1. Shares held by State 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by
350,579,943 58.82% 0 0 0 -350,579,943 -350,579,943 0 0.00%
state-owned legal person
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 by domestic legal 1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
person
Shares held
by domestic natural 36,300 0.01% 0 0 0 0 0 36,300 0.01%
person
4. Shares held by other
0 0.00% 0 0 0 0 0 0 0.00%
foreign investors
II. Unrestricted shares 243,467,869 40.85% 0 0 0 350,579,943 350,579,943 594,047,812 99.67%
1. RMB common shares 175,862,626 29.51% 0 0 0 350,579,943 350,579,943 526,442,569 88.33%
2. Domestically listed
67,605,243 11.34% 0 0 0 0 0 67,605,243 11.34%
foreign shares
III. Total shares 595,979,092 100.00% 0 0 0 0 0 595,979,092 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
According to the share reform commitment of Shenzhen Investment Holdings Co., Ltd., as of 4 November 2012, shares can be
unblocked of Shenzhen Investment Holdings are 350,579,943 accounting for 58.82% of the Company’s total share capital. During
65
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
the Reporting Period, the Company completed related procedures regarding the desterilization of non-tradable shares and
350,579,943 restricted shares held by Shenzhen Investment Holdings have been listed for trading on 19 July 2019. For more
information, please refer to the Indicative Announcement on the Desterilization of Non-Tradable Shares (No.: 2019-23) disclosed by
the Company on Cninfo on 18 July 2019.
Approval of share changes:
√ Applicable □ Not applicable
Above-mentioned desterilization of non-tradable shares has been approved by Shenzhen Stock Exchange and completed the change
registration in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
√ Applicable □ Not applicable
On 16 January 2020, the shareholder with restricted public shares of the Company Han Yihua repaid the advanced shares for share
reform of 3,326 to the Company’s controlling shareholder Shenzhen Investment Holdings and transferred the share ownership to the
latter. Since then, the shareholding of Shenzhen Investment Holdings increased to 380,382,223 shares from 380,378,897 shares. On 4
March 2020, Shenzhen Investment Holdings transferred some shares of the Company to China Orient Asset Management Co., Ltd.
（ hereinafter referred to as “Orient Asset”) by means of contract and completed the ownership transfer registration in China
Securities Depository and Clearing Corporation Limited. After the transfer, Shenzhen Investment Holdings held 345,412,223 shares
of the Company with the shareholding decreasing to 57.96% from 63.82% but is still the controlling shareholder of the Company.
Orient Asset holds 34,970,000 shares of the Company accounting for 5.87% of the Company’s total share capital and becomes the
second largest shareholder with over 5% of shares in the Company. For more details, please refer to the Announcement on
Completing the Ownership Transfer of Some Shares of the Company through Contract by the Controlling Shareholder (No.: 2020-6)
disclosed on Cninfo on 6 March 2020 by the Company.
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Number of
Number of Number of
Name of restricted Number of released Reason for Date of restriction
increased restricted restricted shares
shareholders shares at the restricted shares restriction release
shares at the period-end
period-begin
Shenzhen
Share reform
Investment 350,579,943 0 350,579,943 0 19 July 2019
commitments
Holdings Co., Ltd.
66
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Total 350,579,943 0 350,579,943 0 -- --
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable √ Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of preferred
Number of ordinary Number of preferred
Number of shareholders with resumed
shareholders at the shareholders with
ordinary 40,412 39,277 0 voting rights at the month-end 0
month-end prior to the resumed voting rights
shareholders prior to the disclosure of this
disclosure of this Report (if any) (see note 8)
Report (if any) (see note 8)
5% or greater shareholders or top 10 shareholders
Increase/d Shares in pledge or
Sharehol
Total shares ecrease in frozen
Name of Nature of ding Restricted Unrestricted
held at the the
shareholder shareholder percenta shares held shares held
period-end Reporting Status Shares
ge
Period
Shenzhen
State-owned legal
Investment 63.82% 380,378,897 0 0 380,378,897
person
Holdings Co., Ltd.
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% 1,425,020 14,400 0 1,425,020
person
67
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Domestic natural
Mai Furong 0.20% 1,181,500 51,000 0 1,181,500
person
Domestic natural
Li Jing 0.20% 1,176,740 0 0 1,176,740
person
Domestic natural
Duan Shaoteng 0.18% 1,067,700 1,067,700 0 1,067,700
person
Domestic natural
Wang Hui 0.15% 900,000 152,000 0 900,000
person
Domestic natural
Chen Yutang 0.15% 865,400 705,400 0 865,400
person
Domestic
Shantou Property
non-state-owned 0.14% 850,000 250,000 0 850,000
Hexin Co.,Ltd.
legal person
Domestic natural
Li Baorong 0.13% 800,000 400,000 0 800,000
person
Strategic investor or general legal person
becoming a top-10 ordinary shareholder due to N/A
rights issue (if any) (see note 3)
The first largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the
Related or acting-in-concert parties among the actual controlling shareholder of the Company. And the Company does not know
shareholders above whether there are related parties or acting-in-concert parties among the other 9
shareholders.
Top 10 unrestricted shareholders
Unrestricted shares held at the Shares by type
Name of shareholder
period-end Type Shares
Shenzhen Investment Holdings Co.,
380,378,897 RMB common share 380,378,897
Ltd.
Domestically listed foreign
Yang Yaochu 1,425,020 1,425,020
share
Domestically listed foreign
Mai Furong 1,181,500 1,181,500
share
Domestically listed foreign
Li Jing 1,176,740 1,176,740
share
Duan Shaoteng 1,067,700 RMB common share 1,067,700
Domestically listed foreign
Wang Hui 900,000 900,000
share
Chen Yutang 865,400 RMB common share 865,400
Shantou Property Hexin Co.,Ltd. 850,000 RMB common share 850,000
68
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Li Baorong 800,000 RMB common share 800,000
Domestically listed foreign
He Simo 762,650 762,650
share
Related or acting-in-concert parties among top The first largest shareholder, Shenzhen Investment Holding Corporation, is the
10 unrestricted public shareholders, as well as actual controlling shareholder of the Company. And the Company does not know
between top 10 unrestricted public shareholders whether there are related parties or acting-in-concert parties among the other 9
and top 10 shareholders shareholders.
Top 10 ordinary shareholders involved in
N/A
securities margin trading (if any) (see note 4)
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.
□ Yea √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling Date of Unified social credit
representative/person in Principal activity
shareholder establishment code
charge
69
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
To execute investments and
M&A on financial equity
such as banks, securities,
insurance, funds and
guarantees and
pseudo-banking equity; to
engage in the property
development and operation
business within the scale of
legally acquire the land use
right; to execute
investments and services in
strategic emerging industry;
to execute the investment,
operating and management
of the state-owned equities
Shenzhen Investment of the wholly-owned,
Wang Yongjian 13 October 2004 914403007675664218
Holdings Co., Ltd. controlling and
stock-participating
enterprises through the
methods such as the
restructuring integration,
capital operation and assets
disposal; other business
developed with the
authority from the
Municipal State-owned
Assets Supervision and
Administration
Commission (if the activity
needs approval as required
by state regulations, it shall
not be operated until it is
approved).
70
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen Textile (000045) holds 234.07 million shares, accounting for 45.96%; SPG A (000029)
holds 642.88 million shares, accounting for 63.55%; Shenzhen Universe A (000023) holds 12.27
million shares, accounting for 8.85%; Ping’an (601318) holds 962.72 million shares, accounting for
5.27%; Guosen Securities (002736) holds 2,749.53 million shares, accounting for 33.53%; Guotai
Jun’an (601211) holds 609.24 million A-shares and 103.37 million H-shares, totally accounting for
Shareholdings of the
8.00%; Telling Telecommunication (000829) holds 195.03 million shares, accounting for 18.80%;
controlling shareholder in
Shenzhen International (00152) holds 952.01 million shares, accounting for 44.04%; Beauty Star
other listed companies at
(002243) holds 604.82 million shares, accounting for 51.93%; Bay Area Development (00737) holds
home or abroad in this
2,213.45 million shares, accounting for 71.83%; Infinova (002528) holds 315.83 million shares,
Reporting Period
accounting for 26.35%; Eternal Asia (002183) holds 388.45 million shares, accounting for 18.30%;
Shenzhen Energy (000027) holds 5.64 million shares, accounting for 0.14%; Bank of
Communications (601328) holds 9.52 million shares, accounting for 0.01%; Techand (300197) holds
113.98 million shares, accounting for 4.86%; Vanke (02202) holds 77.27 million shares, accounting
for 0.68%.
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: local institution for state-owned assets management
Type of the actual controller: legal person
Legal
Date of
Name of actual representative/ Unified social
establishme Principal activity
controller person in credit code
nt
charge
71
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(I) Implementing and practicing state, provincial and municipal
laws and regulations related to management on state-owned
assets, drafting local laws, regulations, and policies about
management on state-owned assets, and organizing
implementation activities upon approvals. Intending to draft
supervision systems and methods about operational state-owned
assets, and organizing implementation activities.
(II) On the basis of authorization from municipal government,
fulfilling duties of investors according to laws and regulations,
and protecting the rights and interests of investors for
state-owned assets according to laws
(III) Taking charge of Party-building work for enterprises in its
supervision and organs entrusted
(IV) Undertaking the supervision over state-owned assets of
municipal enterprises, strengthening management on
state-owned assets, further perfecting the management
mechanism for state-owned assets with the unification of power,
obligation, and duties, as well as the combination of managing
assets, people, and affairs
(V) Being responsible for hedging and appreciation of the value
of state-owned assets of enterprises in its supervision,
establishing and perfecting the index system for hedging and
appreciation of the value of state-owned assets, setting out
assessment standards, supervising on hedging and appreciation
of the value of state-owned assets of enterprises in its
supervision by statistics, audit, and check, and urging enterprises
in its supervision to fulfill social duties
(VI) In charge of researching and preparing the general planning
for transformation and development of state-owned enterprise in
its supervision, guiding and boosting transformation and
re-organization of state-owned enterprises, prompting the
construction of modern enterprise system, carrying forward
Shenzhen
operation of state-owned capital, pushing the strategic
Municipal
adjustment on state-owned economy layout and structure, and
State-owned
making state-owned capital play the role in significant industries
Assets Yu Gang 1 July 2004 K31728067
and key fields including national security, national economy
Supervision and
lifeline, etc.
Administration
(VII) Directing and propelling enterprises in its supervision to
Commission
perfect company governance structure, intensifying construction
of Board and Supervision Committees of enterprises in its
supervision, and forming the governance mechanism with
specific duties, coordinating operation, and effective
counterbalance
(VIII) Assuming the management work of income distribution
for enterprises in its supervision, and standardizing the income72
distribution and position-related consumption over people in
charge of enterprises in its supervision
(IX) In line with rules of municipal Party committee, appointing
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shareholdings of the actual controller in other
Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen
listed companies at home or abroad in this
Zhenye, Shenzhen Tagen, Agricultural Products and SDGI.
Reporting Period
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
□ Applicable √ Not applicable
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
73
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
74
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.
75
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part IX Directors, Supervisors, Senior Management and Staff
I Change in Shareholdings of Directors, Supervisors and Senior Management
Beginni Increase in Decrease
Other Ending
Incum Ge ng the in the
Ag increase/ sharehol
Name Office title bent/F nd Start of tenure End of tenure sharehol Reporting Reporting
e decrease ding
ormer er ding Period Period
(share) (share)
(share) (share) (share)
Liu Party Secretary
Incum M
Shengxi and Chairman of 49 15 June 2018 14 June 2021 0 0 0 0 0
bent ale
ang the Board
Director, Deputy
Wang Incum M
Party Secretary, 54 15 June 2018 14 June 2021 0 0 0 0 0
Hangjun bent ale
GM
Wei
Director, Deputy Incum M
Xiaodon 50 15 June 2018 14 June 2021 0 0 0 0 0
Party Secretary bent ale
g
Fe
Shen Director and Incum
ma 51 15 June 2018 14 June 2021 0 0 0 0 0
Xueying CFO bent
le
Wang Incum M
Director 49 15 June 2018 14 June 2021 0 0 0 0 0
Ge bent ale
Zhang Incum M
Director 42 15 June 2018 14 June 2021 0 0 0 0 0
Shilei bent ale
Yuan
Independent Incum M
Hongcha 49 14 April 2017 14 June 2021 0 0 0 0 0
Director bent ale
ng
Mei
Independent Incum M
Yonghon 56 15 June 2018 14 June 2021 0 0 0 0 0
Director bent ale
g
Li
Independent Incum M
Qingyua 43 15 June 2018 14 June 2021 0 0 0 0 0
Director bent ale
n
Chairman of the
Dai Incum M
Supervisory 58 15 June 2018 14 June 2021 0 0 0 0 0
Xianhua bent ale
Committee
76
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Zhang Incum M
Supervisor 45 15 June 2018 14 June 2021 0 0 0 0 0
Manhua bent ale
Li Incum M
Supervisor 38 15 June 2018 14 June 2021 0 0 0 0 0
Qinghua bent ale
Employee
Fe
Wang supervisor, GM Incum
ma 50 15 June 2018 14 June 2021 0 0 0 0 0
Qiuping of ITC Property bent
le
Management
Employee
supervisor, vice Fe
Gu Incum
minister of ma 39 15 June 2018 14 June 2021 0 0 0 0 0
Weimin bent
Audit le
Department
Vice GM,
Fan General Incum M
55 15 June 2018 14 June 2021 0 0 0 0 0
Weiping Counsel, Board bent ale
Secretary
Fe
Incum
Cai Lili Vice GM ma 48 15 June 2018 14 June 2021 0 0 0 0 0
bent
le
Incum M
Li Peng Vice GM 44 15 June 2018 14 June 2021 0 0 0 0 0
bent ale
Zhang Incum M
Vice GM 45 15 June 2018 14 June 2021 0 0 0 0 0
Gejian bent ale
Total -- -- -- -- -- -- 0 0 0 0 0
II Change of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
III Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and
senior management:
Members of the Board of Directors:
Mr. Liu Shengxiang, born in August 1971, is a now member of the Communist Party of China, professor-level senior engineer,
National Certified Architect (Level 1), and has obtained his Bachelor Degree, Master of Engineering, and MBA. In June 1994, he
joined Shenzhen Tagen Group Co., Ltd., and successively served as the deputy general manager, general manager, and general Party
branch secretary of Shenzhen Municipal Engineering Corp. and the deputy general manager of Shenzhen Tagen Group Co., Ltd. In
June 2013, he joined Shenzhen Road & Bridge Group as the executive director, Secretary of the Party Committee and general
manager. He now is the Secretary of the Party Committee and the Chairman of the Company. Mr. Liu Shengxiang was awarded the
title of Outstanding Communist Party Member of Shenzhen in 2001, and obtained Tien-yow Jeme Civil Engineering Prize in 2013,
77
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
and May 1st Labor Medal of Shenzhen in 2015, the Party representative of the 6th Party Congress in Shenzhen.
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Wei Xiaodong, born in January 1970, is a member of the Communist Party of China with the Bachelor’s Degree. Mr. Wei
Xiaodong ever worked in the municipal government department of Shenzhen for many years. In 2008, he began to work for
Shenzhen State-owned Assets Supervision and Administration Commission, and successively served as the deputy director and
director of Shenzhen SASAC Office. In June 2014, he served as the deputy director of Shenzhen SASAC Office, and now, he is the
Director, deputy secretary of the Party committee, Secretary of Committee for Discipline Inspection.
Ms. Shen Xueying, born in October 1969, Bachelor of Economics, is a senior accountant. Ms. Shen Xueying has been engaged in
the financial management of listed companies for more than 20 years. She joined the Finance Department of the Company in 1991
and successively served as the clerk and deputy manager of the financial management department of the Company. She was the
manager of the financial management department of the Company from 2007-2018 and now she is currently the Director and Chief
Financial Officer of the Company.
Mr. Wang Ge, born in October 1971, the member of the Communist Party of China, is now the senior engineer with the degree of
Bachelor of Engineering. Mr. Wang Ge has been engaged in the enterprise management for many years. He successively served as
the deputy director and director of the engineering department of Shenzhen Jian’an (Group) Co., Ltd., the manager and the deputy
secretary of the Party Branch of Jian’an Group Construction and Municipal Engineering Company, and the deputy general manager,
director, the deputy secretary of the Party Committee and the general manager of Jian’an Group. From March 2017 to present, he has
served as the Chief Engineer of Shenzhen Investment Holdings Co., Ltd.
Mr. Zhang Shilei, Born in December 1976, is the member of the Communist Party of China with the degree of Master of
Management, and successively served as the office director of Shenzhen Information Pipeline Co., Ltd., the deputy director of the
general office of Shenzhen Investment Holdings Co., Ltd., the director of Shenzhen Wuzhou Hotel Co., Ltd., the deputy secretary of
the Party Committee and the secretary of the Committee for Discipline Inspection. From September 2017 to present, he serves as the
director of the general management department of Shenzhen Investment Holdings Co., Ltd.
Mr. Yuan Hongchang, born in Mar. 1971, Chinese nationality without overseas residency, is a undergraduate and postgraduate of
Tsinghua University, EMBA of Central Europe. He holds professional qualification of registered land appraiser of China and
registered real estate broker. He joined in Shenzhen WorldUnion Properties Consultancy Incorporated in 2001, and acted as Vice GM
in East China Region, GM of Shanghai WorldUnion, GM in East China Region. Now he works as Vice GM and Secretary of Board
in Shenzhen WorldUnion Properties Consultancy Incorporated. Mr. Yuan Hongchang has attended the 80th phase of independent
directors’ training class of Shenzhen Stock Exchange with qualification certificate of independent director.
Mr. Mei Yonghong, born in October 1964, is the member of the Communist Party of China, and graduated from the Department of
Agriculture of Huazhong Agricultural University with the Degree of Bachelor of Agriculture. He successively served as the deputy
director of the General Office of Ministry of Science and Technology and the director of the information research office, the director
of the Policy, Regulations and System Reform Department of Ministry of Science and Technology and the mayor of Jining City in
Shandong Province. From September 2015 to present, he has served as the director of China National GeneBank (CNGB) and the
chairman of BGI Agricultural Group.
Mr. Li Qingyuan, Born in 1977, is the member of the Communist Party of China with the Chinese nationality. After he obtained the
degree of the Doctor of Accountancy, he became a visiting scholar of Columbia University, and was successively supported by
Program for New Century Excellent Talents in University of Ministry of Education in 2012, 351 Program for Talents of Wuhan
University in 2011 and Outstanding Accounting Talents (Academic) of Ministry of Finance in 2008. Meanwhile, he also serves as the
78
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
member of the Academic Exchange Committee of Accounting Society of China, the editor member of China Journal of Accounting
Studies, the professional editor-in-chief of Luojia Management Review and the director of the Board of Journal of Management
Accounting Studies. As a professor (Level 4), he is nominated and elected into National Support Program for Outstanding Young
Talents, and now serves as the deputy dean of the department of economy and management and the director of the department of
accounting of Wuhan University.
Members of the Supervisory Committee:
Mr. Dai Xianhua, was born in April 1962, doctor degree, Party member of CPC. He worked as a lecturer in School of Business and
Economy of Zhongnan University of Economics and Law from 1986 to 1989. He took posts of editor of department of theory and
review, vice director, and editor-in-chief, in Shenzhen Economic Daily from 1992 to 1997; worked in Shenzhen State Assets
Administration Committee (hereinafter referred as “Shenzhen SAC”) as Vice Section Chief of Assets Management Department,
investigator of property right management Department, Vice Director, investigator of Office, and investigator of Appraisal and
Distribution Department from 1997 to 2012. Since 2012 he is the Chairman of the Supervisory Committee of the Company and is the
Party Secretary since 2020.
Mr. Zhang Manhua, born in Feb. 1975, master’s degree, member of the Communist Party of China, studied and worked in Central
South University from 1992 to 2004; Senior Manager in the Investment Center of Konka Group and concurrently worked as the
Board Secretary for Shenzhen Jvlong Optoelectronic Co., Ltd., and Investment Manager in Shenchao Technological Investment Co.,
Ltd. from 2004 to 2013; he worked as deputy director in the Strategy & Development Department in Shenzhen Investment Holding
Co., Ltd from 2013 to 2018. He is the director in Law and Risks Management department of Shenzhen Investment Holdings Co., Ltd
since 2018.
Mr. Li Qinghua, born in April 1982, has obtained his Bachelor degree. From 2003 to 2013, he worked for DZX International
Appraisal Limited, and successively served as the project assistance, the project manager and the senior manager; from 2013 to 2017,
he served as the senior executive of the property right management and legal affairs department of Shenzhen Investment Holdings
Co., Ltd., and from 2017 till now, he serves as the deputy director of the audit department of Shenzhen Investment Holdings Co., Ltd.
Ms. Wang Qiuping, born in Jan. 1970, Bachelor degree, member of the Communist Party of China, is a senior economist. From
1992 to 2015, she ever took post in GM office, Plan and Finance Department, and Development Management. Since 2015, she is the
Party Committee Secretary and GM of Shenzhen International Trade Center Property Management Co., Ltd.
Ms. Gu Weimin, Born in October 1981, is the member of the Communist Party of China with the Master’s Degree. From 2007 to
2010, he served as the audit assistance manager of KPMG Shenzhen; from 2011 till now, he has worked for the Company in the audit
department (the office of the board of supervisors), and is now the deputy director of the audit department.
Executive officers:
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Fan Weiping, born in Apr. 1965, is a member of the Communist Party of China with postgraduate degree. He used to work in
Shenhua Group successively as the Chief of the Legal Affairs Section in the Supervisory and Audit Department; the Vice Manager
and Manager of the Legal Affairs Department; the GM Assistant; and the Chief Legal Adviser. Since Jan. 2009, he has become the
Board Secretary and the Chief Legal Adviser for the Company. And he has been a Vice GM, the Board Secretary and the Chief Legal
Adviser for the Company since Feb. 2012, and he got the qualification certificate of Board Secretary in Shenzhen Stock Exchange in
2009. Now he is the member of the Party Committee, vice GM, Chief Legal Adviser, and Board Secretary of the Company.
Ms. Cai Lili, Born in November 1972, is the member of the Communist Party of China, and has obtained the Master’s Degree in
Economics. Since 1995, he has worked in Shenzhen Tax Service, SAT, and ever served as the deputy chief of the taxation and
79
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
scientific and technological development department of Shenzhen Tax Service, SAT, and the member of the Party Organization and
the deputy director of Futian District Tax Bureau in Shenzhen. Currently, he is the member of the Party Committee, deputy general
manager and Chief Financial Officer.
Mr. Li Peng, Born in May 1976, is the member of the Communist Party of China, the Bachelor of Engineering and the intermediate
economist. Since July 1999, he has worked for the Company as the operation manager, and successively served as the deputy
manager of the Company’s development management department, the manager of the cost control department, and the secretary of
the Party branch and the deputy general manager of Shenzhen Huangcheng Real Estate Co., Ltd. Currently, he now is the member of
the Party Committee, and deputy general manager.
Mr. Zhang Gejian, born in September 1975, the member of the Communist Party of China, MBA, is an Accountant as well as
Auditor. He was engaged in internal auditing work in Audit Department of the Company since July 1997. He acted as the audit
manager, Supervisor of the Company and concurrently the Cost Control Manager. Now he is the member of the Party Committee,
and the vice GM of the Company.
Ms. Shen Xueying, born in October 1969, the member of the Communist Party of China, Bachelor of Economics, is a senior
accountant. Ms. Shen Xueying has been engaged in the financial management of listed companies for more than 20 years. She joined
the Finance Department of the Company in 1991 and successively served as the clerk and deputy manager of the financial
management department of the Company. She has been the manager of the financial management department of the Company from
2007-2018, and now she is the Director, and Chief Financial Officer of the Company.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Remuneration or
Office held in the allowance from
Name Shareholding entity Start of tenure End of tenure
shareholding entity the shareholding
entity
Chief Engineer of
Shenzhen Investment
Wang Ge Shenzhen Investment 1 March 2017 Yes
Holdings Co., Ltd.
Holdings Co., Ltd.
Director of the general
management department
Shenzhen Investment
Zhang Shilei of Shenzhen Investment 1 September 2017 Yes
Holdings Co., Ltd.
Holdings Co., Ltd.
Deputy director in capital
Shenzhen Investment operation department of
Zhang Manhua 1 January 2017 Yes
Holdings Co., Ltd. Shenzhen Investment
Holdings Co., Ltd
Deputy director of the
Shenzhen Investment audit department of
Li Qinghua 1 January 2017 Yes
Holdings Co., Ltd. Shenzhen Investment
Holdings Co., Ltd.
Offices held concurrently in other entities:
√Applicable □Not applicable
Remuneration or
End of
Name Other entity Office held in the entity Start of tenure allowance from
tenure
the entity
80
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen WorldUnion Vice GM and Secretary of Board in
Yuan
Properties Consultancy Shenzhen WorldUnion Properties 1 September 2013 Yes
Hongchang
Incorporated Consultancy Incorporated.
China National Director of China National GeneBank
Mei Yonghong GeneBank, BGI (CNGB) and the chairman of BGI 1 September 2015 Yes
Agricultural Group Agricultural Group
Deputy dean of the department of
economy and management and the
Li Qingyuan Wuhan University 1 December 2015 Yes
director of the department of
accounting of Wuhan University.
ShenZhen Special Chairman of the Supervisory
Economic Zone Real Committee of ShenZhen Special
Dai Xianhua 16 January 2020 No
Estate & Properties Economic Zone Real Estate &
(Group) Co., Ltd. Properties (Group) Co., Ltd.
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management:
During this Reporting Period, the board and the management of the Company signed statement of operation objectives responsibility
for 2019, conducted appraisal system integrating operation indicators, classification indicators with management objectives. After the
end of this Reporting Period, assessment was implemented by the board. Remuneration of senior executives, according to
“Management Method of Annual salary System of Directors, Supervisors and Senior Executives”, adopted annual salary system, and
need to be implemented after assessment of the board.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total before-tax
Any
Incumbent/F remuneration
Name Office title Gender Age remuneration
ormer from the
from related party
Company
Liu
Party Secretary and Chairman of the
Shengxian Male 49 Incumbent 113.31 No
Board
g
Wang
Director, Deputy Party Secretary, GM Male 54 Incumbent 136.11 No
Hangjun
Wei
Director, Deputy Party Secretary Male 50 Incumbent 121.03 No
Xiaodong
81
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shen
Director and CFO Female 51 Incumbent 97.12 No
Xueying
Wang Ge Director Male 49 Incumbent Yes
Zhang
Director Male 42 Incumbent Yes
Shilei
Yuan
Hongchan Independent Director Male 49 Incumbent 8 No
g
Mei
Independent Director Male 56 Incumbent 8 No
Yonghong
Li
Independent Director Male 43 Incumbent 8 No
Qingyuan
Dai Chairman of the Supervisory
Male 58 Incumbent 100.19 No
Xianhua Committee
Zhang
Supervisor Male 45 Incumbent Yes
Manhua
Li
Supervisor Male 38 Incumbent Yes
Qinghua
Wang Employee supervisor, GM of ITC
Female 50 Incumbent 62.4 No
Qiuping Property Management
Gu Employee supervisor, vice minister of
Female 39 Incumbent 56.6 No
Weimin Audit Department
Fan Vice GM, General Counsel, Board
Male 55 Incumbent 116.72 No
Weiping Secretary
Cai Lili Vice GM Female 48 Incumbent 116.54 No
Li Peng Vice GM Male 44 Incumbent 121.03 No
Zhang
Vice GM Male 45 Incumbent 121.08 No
Gejian
Total -- -- -- -- 1,186.11 --
Equity incentives for directors, supervisors and senior management in the Reporting Period:
□ Applicable √ Not applicable
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent 96
Number of in-service employees of major subsidiaries 7,673
Total number of in-service employees 7,769
82
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Total number of paid employees in the Reporting Period 7,769
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 5,382
Sales 211
Technical 1,286
Financial 249
Administrative 467
Managerial 174
Total 7,769
Educational backgrounds
Educational background Employees
College and Technical secondary school graduates and above 3,269
High school graduates and below 4,500
Total 7,769
2. Employee Remuneration Policy
In 2019, the Group stuck to remuneration system of industrialization within the Group and marketization in the industry, referred to
market remuneration level of the same industry, reformed bravely and promoted the income distribution system reform of the whole
Group stably by learning from external experience as well as multiple demonstration, completed remuneration performance
management system, established incremental sharing mechanism, the Company HQ revised and implemented new remuneration
performance system according to procedures; studied and revised organization framework design, department function division, fixed
position and fixed arrangement, remuneration performance and incremental sharing system of subordinated Companies based on
marketized principle; property management plate also has had policy study reserve according to business development needs and will
launch at proper time.
3. Employee Training Plans
In 2019, the Group promoted the construction of learning type organization, formulated training plan according to operation
development needs, with the key contents including special courses of real estate, comprehensive management ability, team
expansion, position ability and quality improvement, and other courses, taking the method of combining internal training and external
training, organized all the employees to take part in training by grade as planned, improved the professional quality, business ability
and execution ability of staff team, enhanced the understanding and conscientiousness for governing the enterprise by law and acting
according to rules.
83
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
4. Labor Outsourcing
□ Applicable √ Not applicable
84
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part X Corporate Governance
I General Information of Corporate Governance
During this Reporting Period, in accordance with the requirement of the Company Law, Securities Law, Code of Corporate
Governance for Listed Companies in China and Stock Listing Rules of Shenzhen Stock Exchange as well as relevant laws and
statutes of CSRC, the Company continuously regulated and perfected corporate governance structure, established and perfected
internal management and control system and investigated in management activities of the Company, which promoted the Company’s
standard management level.
As to the end of this Reporting Period, the internal control system of the Company is complete, accomplished and defined that in
accordance with Company Law, Articles of Association and other laws and regulations as well as requirements of regulatory
documents. The convene of Shareholders’ General Meeting, the Board of Directors and Supervisory Board are strictly in accordance
with relevant rules and regulations, all directors and supervisors earnestly and diligently commit their responsibilities. Corporate
structure of the Company is complete and the operation of the Company is standardized.
With the goal of constructing a standard management structure, the Company has established related regulations on Shareholders’
Meeting, Board of Directors and Board of Supervisors, to ensure effective rights to decision-making, execution and supervision
respectively.
The Shareholders’ Meeting shall have the highest right to review and make decision on major issues, including the Company’s
business idea, investment plan, major trading items, capital changes, appointment and dismissal of directors and supervisors, within
the legal scope as defined by laws, regulations and rules like the Company Law and Articles of Corporation. The Company has
established and strictly followed various regulations, including Rules of Procedure of Shareholders’ Meeting, to ensure all
shareholders’ rights.
The Board of Directors has the right to business decision-making, responsible for the establishment and effective execution of the
Company’s internal control as well. Besides, it further sets up four special committees, namely, Strategic Development & Investment
Committee, Remuneration and Assessment Committee, Audit Committee and Nomination Committee, to improve its operating
efficiency based on corresponding work rules.
The Board of Supervisors acts as a supervising organ for the Company. It checks the Company’s finance, and supervises all jobs of
the Company’s directors and senior management. Also, it is responsible for and reports to the Shareholders’ Meeting.The Company
formulated and strictly executed Rules of Procedure of Board of Supervisors, Joint Conference System of Supervision Work and
several other systems, to ensure the work of board of supervisors to carry out smoothly.The business management have the right to
execution. They are appointed by the Board of Directors, and responsible for daily running of business management and internal
control.
The Company abided by the principle of being scientific, simplified and high efficient, set up Party-mass office, discipline inspection
and supervision office, office of board of directors, comprehensive office (procedure and information center), HR department,
financial management department (settlement center), investment development department, operation and management department,
product management department (technological center), law and risk management department (letters and visits office, office of
security committee), auditing department (office of board of supervisors). Each department perform its own functions, and strictly
carries out work according to internal control system, to ensure the normal operation of the Company.
The Company has always attached great importance on standardizing insider information management, formulated and completed
Management Provisions on Information Disclosure, Work Procedures of Annual Report of Auditing Committee, Accountability
System of Major Errors in Information Disclosure of Annual Report, Work System of Annual Report, Insider Management System of
85
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Insider Information, Management System of Investor Relationship, and other internal control system, to ensure the authenticity,
accuracy and completeness of Company information disclosure. During the reporting period, the Company strictly carried out
information disclosure, corporate governance conference organization, an other work according to requirements of securities
supervision, disclosed information timely, accurately and completely, without any accidents which violate relevant internal control
system of information disclosure.
Indicate by tick market whether there is any material incompliance with the regulatory documents issued by the CSRC governing the
governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder in Business, Personnel,
Asset, Organization and Financial Affairs
The Company was independent from the controlling shareholder in business, personnel, assets, organization and finance to realize
that independent personnel, independent finance, complete assets, independent organization and independent business.
1. In aspect of business: The Company was independent from the controlling shareholder with independent and complete business
and independent operation capability. There was no business which was same or competitive with the controlling shareholder.
2. In aspect of personnel: The Company was complete independent from the controlling shareholder in terms of labor and personnel,
management on remuneration. All Senior Executives drew the remuneration from the Company, and none held a post concurrently in
shareholders’ company. Personnel of the Company are independent, all ones signed labor contract with the Company. The Company
was independent from the shareholders or other related parties in personnel management, social security, salary etc.
3. In aspect of asset: The Company’s assets were complete and independent, the property relationship was clear. There was no capital
occupation by controlling shareholder, and assets of the Company were completely independent from controlling shareholder.
4. In aspect of organization: The Company’s organization was independent, and the Company implemented rules and regulations as
well as responsibilities for all departments, formed independent responsibilities and rights, scientific and rational internal control
system. Independence of the Company on operation and management is free from impact from controlling shareholders and other
subordinated units. There were no controlling shareholders intervene organization of the Company.
5. In aspect of finance: The Company’s finance was independent with independent finance department. The Company established the
independent finance settling system and financial management system, had its own finance account and paid the tax in line with laws,
run finance decision-making independently.
The controlling shareholder of the Company performed normatively with no conduct that intervened with the operation
decision-making and operation activities directly or indirectly over the shareholders’ general meeting, however, the controlling
shareholder could influence on the significant decision-making through the shares holding.
III Horizontal Competition
□ Applicable √ Not applicable
86
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type Date of the meeting Disclosure date Index to disclosed information
participation ratio
The 1st Announcement on Resolutions
Extraordinary Extraordinary of the 1st Extraordinary
63.92% 26 February 2019 27 February 2019
General Meeting General Meeting General Meeting of 2019 (No.:
of 2019 2019-8) on Cninfo
Announcement on Resolutions
The 2018
Annual General of the 2018 Annual General
Annual General 63.99% 19 April 2019 20 April 2019
Meeting Meeting (No.: 2019-17) on
Meeting
Cninfo
The 2nd Announcement on Resolutions
Extraordinary Extraordinary of the 2nd Extraordinary
2.05% 23 September 2019 24 September 2019
General Meeting General Meeting General Meeting of 2019 (No.:
of 2019 2019-34) on Cninfo
The 3rd Announcement on Resolutions
Extraordinary Extraordinary of the 3rd Extraordinary
63.96% 4 November 2019 5 November 2019
General Meeting General Meeting General Meeting of 2019 (No.:
of 2019 2019-43) on Cninfo
The 4th Announcement on Resolutions
Extraordinary Extraordinary of the 4th Extraordinary
63.90% 25 November 2019 26 November 2019
General Meeting General Meeting General Meeting of 2019 (No.:
of 2019 2019-49) on Cninfo
2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
Attendance of independent directors at board meetings and general meetings
87
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Total number Board
Board
of board Board meetings The independent
Board meetings
meetings the meetings the director failed to General
Independent meetings attended by
independent attended independe attend two meetings
director attended on way of
director was through a nt director consecutive board attended
site telecommunica
eligible to proxy failed to meetings (yes/no)
tion
attend attend
Yuan Hongchang 9 2 7 0 0 No 5
Mei Yonghong 9 2 7 0 0 No 5
Li Qingyuan 9 2 7 0 0 No 5
Why any independent director failed to attend two consecutive board meetings:
Not applicable
2. Objections Raised by Independent Directors on Matters of the Company
Indicate by tick mark whether any independent directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Independent Directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the Company:
With attitude of credibility and diligence to the Company and all shareholders, independent directors was diligent and responsible,
reviewed all resolutions, and in line with their professional knowledge and capability, made independent, objective and fair judgment
away from influence from the Company and principal shareholders of the Company. Also, independent directors expressed
independent, objective and fair opinion on relevant events, which made practical efforts to safeguard interests of the Company and
minority shareholders.
VI Performance of Duty by Specialized Committees under the Board in the Reporting Period
The four special committees under the board—the Strategic Development and Investment Committee, the Nomination Committee,
the Remuneration and Appraisal Committee and the Audit Committee—according to “Governance Principle of listed Company”,
“Articles of Association”, “and Rules of Procedure of the Board of Directors” and implementation rules of special committee,
earnestly performed their duties.
1. Duty Performance of Strategic Development and Investment Committee
During this Reporting Period, strategic development and investment committee paid attention to authorization of the board to project
development and financing, kept good contact with the management and had a good knowledge of matters within their power.
2. Duty Performance of Nomination Committee
During the Reporting Period, the Nomination Committee actively kept good contact with relevant departments, studied the demand
for directors and senior management fitting the development and changes of the Company’s operation pattern and assets scale and
put forward suggestions to the Board of Directors.
88
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3. Duty Performance of Remuneration and Assessment Committee
During this Reporting Period, remuneration and assessment committee earnestly performed their duties, kept good contact with the
management and conducted three meetings respectively to review the performance appraisal result of the organization, remuneration
performance management system, enterprise annuity plan and appraisal result of vice GMs.
4. Duty Performance of Audit Committee
During this Reporting Period, audit committee held on-the-spot working conference four times, listened to report of Ruihua Certified
Public Accountants (LLP) on audit work, deliberate preliminary audit opinion issued by Ruihua Certified Public Accountants (LLP)
and proposed their opinions about 2018 Financial Statement of the Company. In addition, it reviewed and approved the Proposal on
2020 Comprehensive Budget (Draft) and issued written opinions about the Company’s change of CPAs.
VII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.
VIII Appraisal of and Incentive for Senior Management
Within this Reporting Period, the annual operating target plan 2019 was went forth to the management team by the Board of
Directors, of which the Company adopted appraisal method by the score combination of operation index, category index and
administrative goal. At the end of the fiscal year, the Board of Directors examined the final score. For senior executives of the
Company, the Company adopted annual salary system in accordance with Management Measure for Annual Salary System of
Directors, Supervisors and Senior Executives, which shall be implemented after the Board of Directors completing fiscal
examination.
IX Internal Control
1. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
2. Internal Control Self-Evaluation Report
Disclosure date of the internal
18 March 2020
control self-evaluation report
Index to the disclosed internal
http://www.cninfo.com.cn
control self-evaluation report
Evaluated entities’ combined assets
99.00%
as % of consolidated total assets
Evaluated entities’ combined
operating revenue as % of 100.00%
consolidated operating revenue
89
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Identification standards for internal control weaknesses
Weaknesses in internal control over financial Weaknesses in internal control not
Type
reporting related to financial reporting
If the following situation occurred, could
be recognized as the serious defect and
other situation should be recognized as
Indications of the serious defect of the financial the important defect or the common
report were including: (1) to execute the defect respectively according to the
misstatement correction of the great defect occurred influenced degree: (1) the
on the reported and disclosed financial report by the decision-making of the significant events
Company; (2) the audit institution discovered the of the Company lacked of the collective
current financial report had great defect while the democratic decision-making process or
internal control of the Company didn’t found out the collective democratic
during the operating process; (3) the supervision of decision-making process was not
the Company’s Audit and Risk Committee and the normative; (2) the decision-making of
internal audit department on the internal control the Company was not scientific or the
was invalid; (4) there was significant corrupt decision-making occurred serious
practice among the Directors, Supervisors or Senior mistakes; (3) the operating or the
Management. Indications of the important defect of decision-making seriously violated the
the financial report were including: (1) didn’t abide national laws and regulations; (4) the
Nature standard by the universally acknowledged accounting Company occurred serious
standard to choose and apply the accounting environmental pollution or other events
policies; (2) had not built up the anti-fraud process seriously effected the social public
and the control measures; (3) had not built up the interests; (5) the media frequently
corresponding control mechanism or had not occurred the significant negative news;
executed the corresponding compensating control (6) lacked of the important business
for the accounting treatment which was management system or the
unconventional or with special transaction; (4) the systematicness of the system operation
control during the process of the financial report at was invalid; (7) the constantly outflow of
the period-end existed one or multiple defects that the key management personnel and
could not guarantee the compile of the financial technical personnel of the Company; (8)
report reach the goal of being real and complete. the great or significant internal control
Common defect: refers to the other control defect defect of the Company could not be
except for the above great defect and significant timely modified; (9) the Company
defect. constantly or plentifully occurred the
significant internal control defects; (10)
other situation may lead the Company to
seriously deviate from the control target.
90
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Serious defect: potential misstatement of the
operating income≥1% of the operating income of
the consolidated statements of the Company,
potential misstatement of the total assets
amount≥0.40% of the total assets of the
consolidated statements of the Company, potential
misstatement of the net assets≥1.00% of the net
assets of the consolidated statements of the
Company. Important defect: 0.50% of the operating
Quantitative identification standard of
income of the consolidated statements of the
internal control defects in non financial
Company≤misstatement<1% of the operating
statement confirmed by the company will
income of the consolidated statements of the
mainly execute according to the amount
Company; 0.2% of the total assets of the
of direct economic loss caused by control
Quantitative standard consolidated statements of the Company
defectives and by referring to
≤misstatement<0.4% of the total assets of the
quantitative identification standard
consolidated statements of the Company, 0.5% of
internal control defects in non financial
the net assets of the consolidated statements of the
statement.
Company ≤misstatement<1% of the net assets of
the consolidated statements of the Company.
Common defect: misstatement of the operating
income<0.5% of the operating income of the
consolidated statements of the Company,
misstatement of the total assets amount<0.2% of the
total assets amount of the consolidated statements
of the Company, misstatement of the net
assets<0.5% of the net assets of the consolidated
statements of the Company.
Number of material weaknesses in
internal control over financial 0
reporting
Number of material weaknesses in
internal control not related to 0
financial reporting
Number of serious weaknesses in
internal control over financial 0
reporting
Number of serious weaknesses in
internal control not related to 0
financial reporting
X Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
91
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Opinion paragraph in the independent auditor’s report on internal control
We believe that Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 18 March 2020
Index to such report disclosed http://www.cninfo.com.cn
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal
control not related to financial None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.
√ Yes □ No
92
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part XI Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of this
Report’s approval or were due but could not be redeemed in full?
No.
93
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part XII Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 17 March 2020
Name of the independent auditor Pan-China Certified Public Accountants (LLP)
Reference number of Audit Report Pan-China Audit Report [2020] No 7-90.
Name of the certified public accountants Wang Huansen, Chen Yan
Text of the Auditor’s Report
Pan-China Audit Report [2020] No. 7-90
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
1. Opinion
We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Ltd. (the “Company”), which
comprise the consolidated and parent company balance sheets as of 31 December 2019, the consolidated and parent company
statements of income, cash flows and changes in owners’ equity for the year then ended, as well as the notes to the financial
statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated and parent company
financial position of the Company at 31 December 2019, and the consolidated and parent company operating results and cash flows
for the year then ended, in conformity with the Chinese Accounting Standards (CAS).
2. Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
3. Key audit items
Key audit items are the items that are considered most important for the audit of the current financial statements based on our
professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation of
audit opinions. We do not comment on these items separately.
(I) Revenue Recognition
1. Description
See Note III (XXIII) and Note V (II) 1 of the financial report for details.
The operating revenue of the Company was mainly generated from the sales of real estate developed by itself. In 2019, the operating
revenue of the Company was RMB3,961,669,942.44, of which the operating revenue from sales of real estate was
RMB2,666,917,880.15, accounting for 67.32% of total operating revenue.
94
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
According to the revenue recognition accounting policy of SZPRD, the recognition of the Company’s real estate sales income must
meet the following conditions: the development product has been completed and qualified for acceptance, and the realization of sales
revenue is recognized after the property is handed over to the owner in accordance with the contract.
As operating revenue is one of the key performance indicators of the Company, there might be the inherent risk of the management
of the Company intending to achieve certain goals or expectations through improper revenue recognition. Therefore, we identify
revenue recognition as a key audit event.
2. Audit Response
Audit procedures we implemented against revenue recognition mainly include:
(1) Understand key internal control related to revenue recognition, evaluate its design and execution and test the operation
effectiveness of relevant internal control;
(2) Check key sale contracts, identify the terms related to the major risks and remuneration shift of commodity ownership, evaluate
whether the revenue recognition policy complies with the regulation of the accounting standards for enterprises;
(3) Implement the gross margin analysis on revenue by real estate projects, identify whether there are any significant or unusual
fluctuations and find out the reasons;
(4) We took samples from the project whose real estate sales revenue was recognized to check the sales contract, the payment status
and the receipt of the building and to evaluate whether relevant real estate sales were recognized in accordance with the Group’s
revenue recognition policy
(5) For various projects whose real estate sales revenue was recognized before and after the balance sheet date, we selected some
samples, checked the sales contract, the payment status and the receipt of the building to evaluate whether relevant real estate sales
revenue was recognized during the appropriate period;
(6) Check whether the information related to operating revenue has been properly presented in the financial statements.
(II) Calculation and Withdrawal of VAT of Land
1. Description
The land value-added tax is one of the major taxes payable by SZPRD, and for the real estate sold and developed by SZPRD, it’s
required to pay the land value-added tax based on the land value-added amount and the progressive tax rate of 30% to 60%. However,
for various real estate development enterprises specialized in constructing ordinary standard residential buildings for sales, if the
value-added amount does not exceed 20% of the deducted project amount, they shall be exempted from paying the land value-added
tax; otherwise, related taxes shall be calculated based on the added value. Therefore, at the end of each financial reporting period, the
management needs to estimate the amount of the land value-added tax. In making the judgment on the estimation, main factors
required to be considered include the provisions and explanations of relevant tax laws and regulations, and the estimated real estate
sales revenue minus the estimated deductible land costs, real estate development costs, interest expenses, development costs etc.
When SZPRD clears the land value-added tax, the actual tax payable may differ from the amount estimated by SZPRD. As the
accrued land value-added tax accounts for a large proportion in the taxes and surcharges and taxes payable reflected in the
consolidated financial statements, and the management’s judgment on the estimation includes various considerations such as the
understanding of relevant tax laws, regulations and practices. Therefore, we have recognized the accrual of the land value-added tax
of SZPRD as a key audit matter.
2. Audit Response
(1) Understand key internal control related to VAT of land, evaluate its design and execution and test the operation effectiveness of
relevant internal control;
(2) Evaluate the accrual of the land value-added tax on 31 December 2019 by SZPRD, including the evaluation of SZPRD’s
assumptions and judgment based on our understanding of the actual implementation of related tax laws by various local tax
authorities,
(3) Evaluate the management’s estimations on the deductible amount and SZPRD’s assumptions and judgment;
(4) Re-calculate the land value-added tax accrued by SZPRD, and make a comparison between our calculated results and the amount
95
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
recorded by SZPRD.
4. Other Information
The Company’s management (hereinafter referred to as the Management”) is responsible for the other information. The other
information comprises all of the information included in the Company’s 2019 Annual Report other than the financial statements and
our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
5. Responsibilities of Management and Those Charged with Governance for Financial Statements
The Management is responsible for the preparation of the financial statements that give a fair view in accordance with CAS, and for
designing, implementing and maintaining such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance (hereinafter referred to as the “Governance”) are responsible for overseeing the Company’s financial
reporting process.
6. Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances without the purpose of issuing opinions about the effectiveness of internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by CAS to draw
users’ attention in our auditor’s report to the related disclosures in the financial statements or. if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
96
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the
Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit
findings, including any noteworthy deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Pan-China Certified Public Accountants (LLP) Chinese CPA:
(Engagement Partner)
Wang Huansen
HangzhouChina Chinese CPA
Chen Yan
17 March 2020
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 December 2019
Unit: RMB
Item 31 December 2019 31 December 2018
Current assets:
Monetary assets 3,297,890,935.91 3,894,546,925.52
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
97
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 216,923,663.25 155,898,006.77
Accounts receivable financing
Prepayments 69,546,774.17 59,546,657.35
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 917,981,165.74 80,037,483.65
Including: Interest receivable 13,055,107.15
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 4,913,510,876.66 1,396,154,603.04
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 42,500,585.94 17,233,435.58
Total current assets 9,458,354,001.67 5,603,417,111.91
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 3,621,381.11
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 45,076,122.72 39,999,283.24
Investments in other equity
1,580,475.86
instruments
Other non-current financial assets
Investment property 503,323,428.61 639,167,209.48
Fixed assets 93,557,782.83 102,516,975.36
98
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Construction in progress
Productive living assets
Oil and gas assets
Use rights assets
Intangible assets 700,369.66 455,300.38
R&D expense
Goodwill
Long-term prepaid expense 7,034,472.79 3,493,237.29
Deferred income tax assets 658,153,122.73 520,832,796.49
Other non-current assets 4,711,963.66 109,851,318.29
Total non-current assets 1,314,137,738.86 1,419,937,501.64
Total assets 10,772,491,740.53 7,023,354,613.55
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 577,689,139.10 435,350,850.19
Advances from customers 728,186,032.63 278,045,801.46
Contractual liabilities
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Payroll payable 143,493,868.80 126,062,756.70
Taxes payable 2,598,283,291.68 1,580,024,773.11
Other payables 1,149,104,928.85 656,720,054.30
99
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Including: Interest payable 1,669.10
Dividends payable 12,202,676.04 12,434,579.81
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
3,921,032.24
liabilities
Other current liabilities
Total current liabilities 5,200,678,293.30 3,076,204,235.76
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 2,193,833,000.00 1,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions 2,903,327.87
Deferred income 341,259.63
Deferred income tax liabilities 3,821.08 5,275.60
Other non-current liabilities 108,164,737.46 64,627,587.61
Total non-current liabilities 2,305,246,146.04 65,632,863.21
Total liabilities 7,505,924,439.34 3,141,837,098.97
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 80,488,045.38 483,347,184.25
Less: Treasury stock
Other comprehensive income -2,698,371.44 -1,786,181.69
Specific reserve
100
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Surplus reserves 17,060,448.05 299,569,569.96
General reserve
Retained earnings 2,457,119,795.39 2,495,296,440.15
Total equity attributable to owners of
3,147,949,009.38 3,872,406,104.67
the Company as the parent
Non-controlling interests 118,618,291.81 9,111,409.91
Total owners’ equity 3,266,567,301.19 3,881,517,514.58
Total liabilities and owners’ equity 10,772,491,740.53 7,023,354,613.55
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2019 31 December 2018
Current assets:
Monetary assets 2,455,001,204.14 2,520,788,994.16
Held-for-trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 755,932.14 1,853,494.72
Accounts receivable financing
Prepayments 496,729.09 829,683.68
Other receivables 501,082,153.81 1,306,715,826.93
Including: Interest receivable 8,229,503.58
Dividends receivable
Inventories 624,499,208.02 105,840,115.24
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 1,113,935.28
Total current assets 3,582,949,162.48 3,936,028,114.73
101
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 3,851,881.11
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 1,070,542,003.11 239,501,956.17
Investments in other equity
1,810,975.86
instruments
Other non-current financial assets
Investment property 312,638,785.76 317,313,917.65
Fixed assets 26,337,488.29 9,121,637.65
Construction in progress
Productive living assets
Oil and gas assets
Use rights assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 605,416.29 778,392.57
Deferred income tax assets 343,958,821.07 315,888,967.26
Other non-current assets 1,613,657,031.92 104,132,920.00
Total non-current assets 3,369,550,522.30 990,589,672.41
Total assets 6,952,499,684.78 4,926,617,787.14
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 64,503,938.37 124,501,464.28
Advances from customers 320,469.53 75,895,087.75
Contractual liabilities
Payroll payable 36,735,205.68 31,224,455.28
102
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Taxes payable 1,322,751,671.37 1,402,388,742.76
Other payables 3,146,684,268.89 224,875,980.31
Including: Interest payable
Dividends payable 29,642.40 29,642.40
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 4,570,995,553.84 1,858,885,730.38
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities 40,000,000.00
Total non-current liabilities 40,000,000.00
Total liabilities 4,610,995,553.84 1,858,885,730.38
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 53,876,380.11 92,326,467.62
Less: Treasury stock
Other comprehensive income -2,051,268.24
Specific reserve
Surplus reserves 16,403,637.61 298,912,759.52
Retained earnings 1,677,296,289.46 2,080,513,737.62
103
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Total owners’ equity 2,341,504,130.94 3,067,732,056.76
Total liabilities and owners’ equity 6,952,499,684.78 4,926,617,787.14
3. Consolidated Income Statement
Unit: RMB
Item 2019 2018
1. Revenue 3,961,669,942.44 3,376,673,249.90
Including: Operating revenue 3,961,669,942.44 3,376,673,249.90
Interest income
Premium income
Handling charge and
commission income
2. Costs and expenses 2,966,054,505.18 2,477,752,293.95
Including: Cost of sales 1,433,615,885.43 1,710,290,550.93
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 surcharges 1,081,511,281.04 624,413,173.01
Selling expense 111,553,952.50 46,501,225.18
Administrative expense 204,654,552.64 162,378,284.09
R&D expense
Finance costs 134,718,833.57 -65,830,939.26
Including: Interest
194,545,794.14 284,918.67
expense
Interest
61,860,403.42 67,282,441.97
income
Add: Other income 5,150,377.43 312,339.94
Return on investment (“-” for loss) 5,076,839.48 1,889,021.11
104
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Including: Share of profit or loss
5,076,839.48 1,268,890.28
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
-18,701,016.31
loss)
Asset impairment loss (“-” for loss) -1,234,250.84 2,592,077.88
Asset disposal income (“-” for
-8,096.97
loss)
3. Operating profit (“-” for loss) 985,907,387.02 903,706,297.91
Add: Non-operating income 23,732,348.28 19,094,959.16
Less: Non-operating expense 4,793,503.85 4,435,733.97
4. Profit before tax (“-” for loss) 1,004,846,231.45 918,365,523.10
Less: Income tax expense 262,716,180.91 220,260,863.60
5. Net profit (“-” for net loss) 742,130,050.54 698,104,659.50
5.1 By operating continuity
5.1.1 Net profit from continuing
742,061,273.73 698,866,085.82
operations (“-” for net loss)
5.1.2 Net profit from discontinued
68,776.81 -761,426.32
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
817,805,780.12 698,050,728.96
owners of the Company as the parent
5.2.1 Net profit attributable to
-75,675,729.58 53,930.54
non-controlling interests
6. Other comprehensive income, net of
-912,189.75 2,325,405.45
tax
Attributable to owners of the Company
-912,189.75 2,325,405.45
as the parent
6.1 Items that will not be
-2,051,268.24
reclassified to profit or loss
105
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
6.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
-2,051,268.24
investments in other equity instruments
6.1.4 Changes in the fair value of
the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to
1,139,078.49 2,325,405.45
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial
assets
6.2.4 Other comprehensive
income arising from the reclassification
of financial assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.6 Allowance for credit
impairments in investments in other debt
obligations
6.2.7 Reserve for cash flow
hedges
6.2.8 Differences arising from the
translation of foreign
1,139,078.49 2,325,405.45
currency-denominated financial
statements
6.2.9 Other
Attributable to non-controlling
interests
106
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
7. Total comprehensive income 741,217,860.79 700,430,064.95
Attributable to owners of the Company
816,893,590.37 700,376,134.41
as the parent
Attributable to non-controlling
-75,675,729.58 53,930.54
interests
8. Earnings per share
8.1 Basic earnings per share 1.3722 1.1713
8.2 Diluted earnings per share 1.3722 1.1713
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB118,680,871.93, with the amount for last year being RMB105,442,907.48.
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2019 2018
1. Operating revenue 393,330,909.38 1,280,644,589.75
Less: Cost of sales 61,706,002.23 225,828,386.48
Taxes and surcharges 152,745,770.45 525,630,333.93
Selling expense 13,078,323.49 19,343,750.44
Administrative expense 77,139,133.61 47,578,406.12
R&D expense
Finance costs -43,712,067.17 -54,255,168.19
Including: Interest expense
Interest income 42,193,217.20 50,378,375.05
Add: Other income 85,442.53
Return on investment (“-” for
86,697,646.64 1,834,522.57
loss)
Including: Share of profit or
5,076,839.48 1,268,890.28
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
107
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
811,051.45
loss)
Asset impairment loss (“-” for
-47,377,759.48
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 219,967,887.39 470,975,644.06
Add: Non-operating income 359,518.50 963,333.70
Less: Non-operating expense 1,292,469.73 711,102.23
3. Profit before tax (“-” for loss) 219,034,936.16 471,227,875.53
Less: Income tax expense 54,998,560.04 132,509,442.15
4. Net profit (“-” for net loss) 164,036,376.12 338,718,433.38
4.1 Net profit from continuing
164,036,376.12 338,718,433.38
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-2,051,268.24
tax
5.1 Items that will not be reclassified
-2,051,268.24
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or -2,051,268.24
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
108
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 161,985,107.88 338,718,433.38
7. Earnings per share
7.1 Basic earnings per share 0.2752 0.5683
7.2 Diluted earnings per share 0.2752 0.5683
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2019 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
4,536,821,506.05 3,243,653,946.59
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
109
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 51,795.24
Cash generated from other operating
727,613,534.88 124,455,322.34
activities
Subtotal of cash generated from
5,264,435,040.93 3,368,161,064.17
operating activities
Payments for commodities and
2,805,353,837.83 680,343,701.88
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 635,119,649.94 550,174,464.52
Taxes paid 698,846,233.34 792,878,768.68
Cash used in other operating
185,325,753.86 113,046,072.91
activities
Subtotal of cash used in operating
4,324,645,474.97 2,136,443,007.99
activities
110
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Net cash generated from/used in
939,789,565.96 1,231,718,056.18
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of
fixed assets, intangible assets and other 357,613.40 115,576.54
long-lived assets
Net proceeds from the disposal of
79,901,686.57
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
357,613.40 80,017,263.11
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 62,167,787.99 25,212,463.57
long-lived assets
Payments for investments 100,000,000.00
Net increase in pledged loans granted
Net payments for the acquisition of
969,530,215.99
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
1,031,698,003.98 125,212,463.57
activities
Net cash generated from/used in
-1,031,340,390.58 -45,195,200.46
investing activities
3. Cash flows from financing activities:
Capital contributions received 3,220,000.00 2,450,000.00
Including: Capital contributions by
3,220,000.00 2,450,000.00
non-controlling interests to subsidiaries
Borrowings obtained 2,193,000,000.00 1,000,000.00
Cash generated from other financing
40,000,000.00
activities
Subtotal of cash generated from
2,236,220,000.00 3,450,000.00
financing activities
Repayments of borrowings 2,193,067,000.00 11,000,000.00
Payments for interest and dividends 423,796,908.60 187,234,654.66
111
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
123,502,169.51
activities
Subtotal of cash used in financing
2,740,366,078.11 198,234,654.66
activities
Net cash generated from/used in
-504,146,078.11 -194,784,654.66
financing activities
4. Effect of foreign exchange rate
14,878.31 5,376.09
changes on cash and cash equivalents
5. Net increase in cash and cash
-595,682,024.42 991,743,577.15
equivalents
Add: Cash and cash equivalents,
3,881,027,257.89 2,889,283,680.74
beginning of the period
6. Cash and cash equivalents, end of the
3,285,345,233.47 3,881,027,257.89
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2019 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
338,520,399.21 1,414,305,014.68
and rendering of services
Tax rebates
Cash generated from other operating
3,301,015,120.23 43,112,205.17
activities
Subtotal of cash generated from
3,639,535,519.44 1,457,417,219.85
operating activities
Payments for commodities and
617,310,657.83 7,075,382.01
services
Cash paid to and for employees 47,049,144.09 38,651,894.17
Taxes paid 342,530,888.32 148,571,148.46
Cash used in other operating
45,901,384.05 246,528,170.36
activities
Subtotal of cash used in operating
1,052,792,074.29 440,826,595.00
activities
112
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Net cash generated from/used in
2,586,743,445.15 1,016,590,624.85
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 100,000,000.00
Return on investment 42,319,444.45
Net proceeds from the disposal of
fixed assets, intangible assets and other 690.00
long-lived assets
Net proceeds from the disposal of
73,001,849.11
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
142,320,134.45 73,001,849.11
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 25,563,107.56 4,936,323.59
long-lived assets
Payments for investments 2,634,574,943.74 100,000,000.00
Net payments for the acquisition of
39,351,392.06
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
2,660,138,051.30 144,287,715.65
activities
Net cash generated from/used in
-2,517,817,916.85 -71,285,866.54
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Cash generated from other financing
40,000,000.00
activities
Subtotal of cash generated from
40,000,000.00
financing activities
Repayments of borrowings
Payments for interest and dividends 178,793,727.60 178,793,727.60
Cash used in other financing
activities
113
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Subtotal of cash used in financing
178,793,727.60 178,793,727.60
activities
Net cash generated from/used in
-138,793,727.60 -178,793,727.60
financing activities
4. Effect of foreign exchange rate
14,878.31 5,212.00
changes on cash and cash equivalents
5. Net increase in cash and cash
-69,853,320.99 766,516,242.71
equivalents
Add: Cash and cash equivalents,
2,520,788,994.16 1,754,272,751.45
beginning of the period
6. Cash and cash equivalents, end of the
2,450,935,673.17 2,520,788,994.16
period
7. Consolidated Statements of Changes in Owners’ Equity
2019
Unit: RMB
2019
Equity attributable to owners of the Company as the parent
Other equity Other Non-c
Total
instruments Less: compr Surplu Retain ontroll
Item owners
Share Capital Specifi Genera
Prefe Perpe Treasu ehensi s ed Subtot ing
capita reserve c l Other ’
rred tual ry ve reserve earnin al interes
l Other s reserve reserve equity
share bond stock incom s gs ts
s s e
1. Balances as 595,9 483,34 299,56 2,495, 3,872, 3,881,
-1,786, 9,111,4
at the end of the 79,09 7,184. 9,569. 296,44 406,10 517,51
181.69 09.91
prior year 2.00 25 96 0.15 4.67 4.58
Add:
Adjustments for
changed
accounting
policies
Adjustments
for corrections
of previous
errors
114
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Adjustments
for business
combinations
under common
control
Other
adjustments
2. Balances as 595,9 483,34 299,56 2,495, 3,872, 3,881,
-1,786, 9,111,4
at the beginning 79,09 7,184. 9,569. 296,44 406,10 517,51
181.69 09.91
of the year 2.00 25 96 0.15 4.67 4.58
3. Increase/
-402,8 -282,5 -38,17 -724,4 109,50 -614,9
decrease in the -912,1
59,138 09,121 6,644. 57,095 6,881. 50,213
period (“-” for 89.75
.87 .91 76 .29 90 .39
decrease)
3.1 Total 817,80 816,89 -75,67 741,21
-912,1
comprehensive 5,780. 3,590. 5,729. 7,860.
89.75
income 12 37 58 79
3.2 Capital
-402,8 -298,9 -660,7 -1,362, 185,18 -1,177,
increased and
59,138 12,759 85,059 556,95 2,611. 374,34
reduced by
.87 .52 .67 8.06 48 6.58
owners
3.2.1
Ordinary shares 3,220, 3,220,
increased by 000.00 000.00
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
-402,8 -298,9 -660,7 -1,362, 181,96 -1,180,
3.2.4 Other 59,138 12,759 85,059 556,95 2,611. 594,34
.87 .52 .67 8.06 48 6.58
115
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
16,403 -195,1 -178,7 -178,7
3.3 Profit
,637.6 97,365 93,727 93,727
distribution
1 .21 .60 .60
3.3.1
16,403 -16,40
Appropriation
,637.6 3,637.
to surplus
1 61
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
-178,7 -178,7 -178,7
Appropriation
93,727 93,727 93,727
to owners (or
.60 .60 .60
shareholders)
3.3.4 Other
3.4 Transfers
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 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
pension
schemes
transferred to
retained
earnings
116
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3.4.5 Other
comprehensive
income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balances as 595,9 80,488 17,060 2,457, 3,147, 118,61 3,266,
-2,698,
at the end of the 79,09 ,045.3 ,448.0 119,79 949,00 8,291. 567,30
371.44
period 2.00 8 5 5.39 9.38 81 1.19
2018
Unit: RMB
2018
Equity attributable to owners of the Company as the parent
Other equity Other Non-co
instruments Less: compr Surplu Retain ntrollin Total
Item Share Capital Specifi Genera
Prefe Perp Treasu ehensi s ed Subtot g owners’
capita reserve c l Other
rred etual ry ve reserve earnin al interest equity
l Other s reserve reserve
share bond stock incom s gs s
s s e
1. Balances as 595,9 118,93 299,56 1,911, 2,921, 2,922,5
-4,111, 862,087
at the end of 79,09 8,132. 9,569. 318,58 693,79 55,881.
587.14 .06
the prior year 2.00 89 96 6.37 4.08 14
Add:
Adjustments
for changed
accounting
policies
Adjustments
for corrections
of previous
errors
117
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Adjustments
for business 364,30 72,876 437,18
5,745,3 442,931
combinations 9,051. ,860.8 5,912.
92.31 ,304.48
under common 36 1 17
control
Other
adjustments
2. Balances as
595,9 483,24 299,56 1,984, 3,358, 3,365,4
at the -4,111, 6,607,4
79,09 7,184. 9,569. 195,44 879,70 87,185.
beginning of 587.14 79.37
2.00 25 96 7.18 6.25 62
the year
3. Increase/
511,10 513,52
decrease in the 100,00 2,325, 2,503,9 516,030
0,992. 6,398.
period (“-” for 0.00 405.45 30.54 ,328.96
97 42
decrease)
3.1 Total 698,05 700,37
2,325, 53,930. 700,430
comprehensive 0,728. 6,134.
405.45 54 ,064.95
income 96 41
3.2 Capital
increased and 100,00 100,00 2,450,0 2,550,0
reduced by 0.00 0.00 00.00 00.00
owners
3.2.1
Ordinary shares 100,00 100,00 2,450,0 2,550,0
increased by 0.00 0.00 00.00 00.00
owners
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
118
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
-186,9 -186,9 -186,94
3.3 Profit
49,735 49,735 9,735.9
distribution
.99 .99 9
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
-186,9 -186,9 -186,94
Appropriation
49,735 49,735 9,735.9
to owners (or
.99 .99 9
shareholders)
3.3.4
Other
3.4 Transfers
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 Loss
offset by
surplus reserves
119
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3.4.4
Changes in
defined benefit
pension
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balances as 595,9 483,34 299,56 2,495, 3,872, 3,881,5
-1,786, 9,111,4
at the end of 79,09 7,184. 9,569. 296,44 406,10 17,514.
181.69 09.91
the period 2.00 25 96 0.15 4.67 58
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2019
Unit: RMB
2019
Other equity
Other Retaine
instruments Less: Total
Item Share Capital compreh Specific Surplus d
Preferr Perpet Treasury Other owners’
capital reserves ensive reserve reserves earning
ed ual Other stock equity
income s
shares bonds
120
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
1. Balances as at 595,97 2,080,5
92,326,4 298,912, 3,067,732,
the end of the 9,092.0 13,737.
67.62 759.52 056.76
prior year 0 62
Add:
Adjustments for
changed
accounting
policies
Adjustments
for corrections of
previous errors
Other
adjustments
2. Balances as at 595,97 2,080,5
92,326,4 298,912, 3,067,732,
the beginning of 9,092.0 13,737.
67.62 759.52 056.76
the year 0 62
3. Increase/
-403,21
decrease in the -38,450, -2,051,2 -282,509 -726,227,9
7,448.1
period (“-” for 087.51 68.24 ,121.91 25.82
6
decrease)
3.1 Total 164,03
-2,051,2 161,985,1
comprehensive 6,376.1
68.24 07.88
income 2
3.2 Capital
-372,05
increased and -38,450, -298,912 -709,419,3
6,459.0
reduced by 087.51 ,759.52 06.10
7
owners
3.2.1
Ordinary shares
increased by
owners
3.2.2
Capital increased
by holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
121
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
-372,05
-38,450, -298,912 -709,419,3
3.2.4 Other 6,459.0
087.51 ,759.52 06.10
7
-195,19
3.3 Profit 16,403,6 -178,793,7
7,365.2
distribution 37.61 27.60
1
3.3.1
16,403,6 -16,403
Appropriation to
37.61 ,637.61
surplus reserves
3.3.2
-178,79
Appropriation to -178,793,7
3,727.6
owners (or 27.60
0
shareholders)
3.3.3 Other
3.4 Transfers
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 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
pension schemes
transferred to
retained earnings
3.4.5 Other
comprehensive
income
transferred to
retained earnings
122
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balances as at 595,97 1,677,2
53,876,3 -2,051,2 16,403,6 2,341,504,
the end of the 9,092.0 96,289.
80.11 68.24 37.61 130.94
period 0 46
2018
Unit: RMB
2018
Other equity
Other
instruments Less: Total
Item Share Capital compre Specific Surplus Retained
Preferr Perpet Treasur Other owners’
capital reserves hensive reserve reserves earnings
ed ual Other y stock equity
income
shares bonds
1. Balances as 595,97
94,057, 298,912 1,920,589 2,909,538,7
at the end of the 9,092.
859.68 ,759.52 ,031.84 43.04
prior year 00
Add:
Adjustments for
changed
accounting
policies
Adjustments
for corrections
of previous
errors
Other
adjustments
2. Balances as 595,97
94,057, 298,912 1,920,589 2,909,538,7
at the beginning 9,092.
859.68 ,759.52 ,031.84 43.04
of the year 00
123
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3. Increase/
decrease in the -1,731,3 159,924,7 158,193,31
period (“-” for 92.06 05.78 3.72
decrease)
3.1 Total
338,718,4 338,718,43
comprehensive
33.38 3.38
income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary shares
increased by
owners
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
3.3 Profit -178,793, -178,793,72
distribution 727.60 7.60
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation -178,793, -178,793,72
to owners (or 727.60 7.60
shareholders)
3.3.3 Other
3.4 Transfers
-1,731,392.
within owners’
06
equity
124
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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 Loss
offset by
surplus reserves
3.4.4
Changes in
defined benefit
pension
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
transferred to
retained
earnings
-1,731,392.
3.4.6 Other
06
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
-1,731,3
3.6 Other
92.06
4. Balances as 595,97
92,326, 298,912 2,080,513 3,067,732,0
at the end of the 9,092.
467.62 ,759.52 ,737.62 56.76
period 00
125
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “the Company” or
“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. It
was registered with Shenzhen Industrial and Commercial Administration Bureau on 17 January 1983 with
Shenzhen as its headquarters. Now the Company holds the business license for legal person with the registration
number/unified social credit code of 91440300192174135N. The registered capital was RMB595,979,092 with the
total shares of 595,979,092 (RMB1 face value per share), among which, restricted public shares: 1,931,280 A
shares and 0 B shares; unrestricted public shares: 526,442,569 A shares and 67,605,243 B shares. The stock of the
Company has been listed on the Shenzhen Stock Exchange on 30 March 1992.
The Company is in the real estate sector. Its main business includes development of real estate and sale of
commercial housing, construction and management of buildings, house rent, supervision of construction, domestic
trading and materials supply and marketing (excluding exclusive dealing and monopoly sold products and
commodities under special control to purchase). Main products or services rendered mainly include the
development and sales of commercial residential housing; property management; buildings and the building
devices maintenance, garden afforest and cleaning service; property leasing; supervise and management of the
engineering; retails of the Chinese food, Western-style food and wines, and etc.
The financial statements were approved and authorized for issue by the 13th Meeting of the 9th Board of Directors
of the Company on 17 March 2020.
There were 43 subsidiaries including Shenzhen Huangcheng Real Estate Co., Ltd., Dongguan Guomao
Changsheng Real Estate Development Co., Ltd., Shenzhen International Trade Center Property Management Co.,
Ltd. included in the consolidation financial statements in 2019. Please refer to the Note VIII and Note IX of the
financial statements for details.
IV. Basis for the Preparation of Financial Statements
1. Preparation Basis
The financial statement of the Company was prepared on the base of the assumption of continuation.
2. Continuation
There was no such case where the sustainable operation ability within 12 months since the end of the Reporting
Period was highly doubted.
V. Important Accounting Policies and Estimations
Indication of specific accounting policies and estimations:
1. Statement for Complying with the Accounting Standard for Business Enterprise
The financial statements for the Reporting Period prepared by the Company are in compliance with the
requirements of the accounting standard for business enterprise, and have reflected the Company’s financial status,
operating results and cash flows in an accurate and complete way.
126
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
2. Fiscal Period
The fiscal year of the Company is a solar calendar year, which is from 1 January to 31 December.
3. Operating Cycle
Except for the real estate industry, other businesses run by the Company have relatively short operating cycles
according to the classification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the
real estate industry shall be generally more than 12 months from real estate development to cash the sales. The
specific cycle shall be determined by the development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
The assets and liabilities that the Company obtains in a business combination shall be measured on the basis of
their carrying amount combined party in the consolidated financial statements of the final controller on the
combining date. As for the balance between the carrying amount of combined party’s owners equities in the
consolidated financial statements of the final controller and the carrying amount of the consideration paid by it or
the total par value of the shares issued), the additional paid-in capital shall be adjusted. If the additional paid-in
capital is not sufficient to be offset, the retained earnings shall be adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Company shall recognize the positive balance between the combination costs and the fair value of the
identifiable net assets obtained from the acquiree on purchase date as goodwill. If the combination costs are less
than the fair value of the identifiable net assets obtained from the acquire, the Company shall recheck the various
identifiable assets and liabilities obtained from the acquire, fair value with liabilities, and measurement of
combination costs. If the combination costs are less than the fair value of the identifiable net assets obtained from
the acquire after recheck, the Company shall the record the balance into the profit and loss of the current period.
6. Methods for Preparing Consolidated Financial Statements
The Company as the parent included its all subsidiaries into the consolidation scope of consolidated financial
statements. Based on the financial statements of the Company as the parent and its subsidiaries and other related
materials, the consolidated financial statements were prepared by the Company as the parent according to
Accounting Standards for Enterprises No. 33 –Consolidated Financial Statements.
7. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Joint arrangement is classified into joint operation and joint ventures.
2. When the Company is a party of a joint operation, recognize the following items related to the profits in the
joint operation:
(1) Recognize the assets held independently, and recognize the assets held jointly in the holding portion;
127
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(2) Recognize the liabilities borne independently, and recognize the liabilities held jointly in the holding portion;
(3) Recognize the revenue generated from the output portion of joint operation shared for selling the Company;
(4) Recognize the revenue generated from the sale of assets in joint operation in the holding portion of the
Company;
(5) Recognize the expenses incurred independently, and recognize the expenses incurred in joint operation in the
holding portion of the Company.
8. Recognition Standard for Cash and Cash Equivalents
The term “cash” listed and presented in the cash flow statement refers to cash on hand and deposits that are
available for payment at any time. The term “cash equivalents” refers to short-term and highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in
value.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition, the amount in the foreign currency shall be
translated into the amount in the Renminbi at the spot exchange rate of the transaction date. On balance sheet date,
the foreign currency monetary items shall be translated as the spot exchange rate on the balance sheet date, the
balance occurred thereof shall be recorded into the profits and losses at the current period except that the balance
of exchange arising from the principal and interests of foreign currency borrowings for the purchase and
construction or production of assets eligible for capitalization. The foreign currency non-monetary items measured
at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount
of functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value
shall be translated at the spot exchange rate on the confirming date of fair value, of which the balance of exchange
shall be included into the profit and loss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet
date. Among the owner’s equity items, except for the items as “retained earnings”, other items shall be translated
at the spot exchange rate at the time when they are incurred. The income and expense items in the income
statements shall be translated at the approximate spot exchange rate at the time when they are incurred. The
difference from translation of foreign currency financial statements thereof shall be recorded into other
comprehensive income.
10. Financial Instruments
1. Classification of Financial Assets and Financial Liabilities
Financial assets shall be classified into the following three categories when they are initially recognized: (1)
financial assets measured at amortized cost; (2) financial assets at fair value through other comprehensive income;
(3) financial assets at fair value through profit or loss.
Financial liabilities shall be classified into the following four categories when they are initially recognized: (1)
financial liabilities at fair value through profit or loss; (2) financial liabilities generated from transfer of financial
assets not conforming to requirements of derecognition or continuous involvement of transferred financial assets;
(3) financial guarantee contracts not belonging to above (1) or (2), and loan commitments not belonging to above
128
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(1) and at lower interest rate than the market interest rate; (4) financial liabilities measured at amortized cost.
2. Recognition Basis, Calculation Method, and Termination of Recognition of Financial Assets and
Liabilities
(1) Recognition basis and initial calculation method of financial assets and liabilities
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial
liability. The financial assets and financial liabilities initially recognized shall be measured at their fair values. For
the financial assets and liabilities measured at their fair values and of which the variation is recorded into the
profits and losses of the current period, the transaction expenses thereof shall be directly recorded into the profits
and losses of the current period; for other categories of financial assets and financial liabilities, the transaction
expenses thereof shall be included into the initially recognized amount. However, when the accounts receivable
initially recognized by the Company do not include significant financing or the Company does not consider the
financing in contracts not over one year, it shall be initially calculated at the transaction price.
(2) Subsequent calculation method of financial assets
1) Financial assets at amortized cost
The Company shall make subsequent measurement on its financial assets at amortized cost by adopting the actual
interest rate method. The gains or losses generated from the financial assets at amortized cost and not belonging to
any hedging relationship shall be recorded into the current profit of loss when decognized, reclassified, amortized
with the actual interest rate method or recognizing impairments.
2) Investments in debt instruments at fair value through other comprehensive income
The Company shall make subsequent measurement at fair value. The interest calculated by adopting the actual
interest rate method, impairment losses or profits and foreign exchange gains shall be recorded into the current
profit or loss, and other profits or losses shall be recorded into other comprehensive income. When derecognized,
the accumulative profits or losses thereof originally recorded into other comprehensive income shall be transferred
out and then recorded into the current profit or loss.
3) Investments in equity instruments at fair value through other comprehensive income
The Company shall make subsequent measurement at fair value. The dividends obtained (exclude those belong to
recovery of investment cost) shall be recorded into the current profit or loss, and other gains or losses recorded
into other comprehensive income. When derecognized, the accumulative gains or losses thereof originally
recorded into other comprehensive income shall be transferred out and then recorded into the retained earnings.
4) Financial assets at fair value through profit or loss
The Company shall make subsequent measurement at fair value. The gains or losses generated (include interest
and dividend income) shall be recorded into the current profit or loss, unless the financial asset is one part of a
hedging relationship.
(3) Subsequent calculation method of financial liabilities
1) Financial liabilities at fair value through profit or loss
Such financial liabilities include trading financial liabilities (include derivative instruments belonging to financial
liabilities) and those designated as financial liabilities at fair value through profit or loss. For such financial
liabilities, the subsequent measurement shall be conducted at fair value. The amount of changes in fair value of
designated financial liabilities at fair value through profit or loss due to the Company’s credit risk changes shall be
recorded into other comprehensive income, unless this treatment will result in or enlarge accounting mismatch of
the profit or loss. The other gains or losses generated from such financial liabilities (including interest expense,
changes of fair value not caused by the Company’s credit risk changes) shall be recorded into the current profit or
loss, unless the they are one part of a hedging relationship. And when derecognized, the accumulative gains or
losses thereof originally recorded into other comprehensive income shall be transferred out and then recorded into
129
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
the retained earnings.
2) Financial liabilities generated from financial assets transfer not conforming to derecognition conditions or
continuous involvement of transferred financial assets
They shall be measured in accordance with regulations of Accounting Standards for Business Enterprises
No.23-Transfer of Financial Assets
3) financial guarantee contracts not belonging to above (1) or (2), and loan commitments not belonging to above
(1) and at lower interest rate than the market interest rate;
The subsequent measurement shall be conducted according to the higher of the following two amounts after initial
recognition: ① amount of allowance for impairments recognized in accordance with the impairment provisions of
financial instruments; ② the residual of initial recognized amount after deducted accumulative amortized amount
recognized as relevant regulations.
4) Financial liabilities at amortized cost
The Company shall measure at amortized cost by adopting actual interest rate method. The gains or losses
generated from financial liabilities at amortized cost and not belonging to any hedging relationship shall be
recorded into the current profit or loss when derecognized or amortized with actual interest rate method.
(4) Derecognition of financial assets and financial liabilities
1) Derecognize financial assets when meeting one of the following conditions:
① The contract rights for collecting cash flow of financial assets have terminated;
② Financial asset has been transferred and the transfer meets the provisions of Accounting Standards for Business
Enterprises No.23-Transfer of Financial Assets governing the derecognition of financial assets.
2) When the current obligation of the financial liability (or some of it) has been relieved, the financial liability (or
some of it) shall be accordingly derecognized.
3. Recognition Basis and Measurement of Transfer of Financial Assets
Where the Company has transferred nearly all of the risks and rewards related to the ownership of the financial
asset to the transferee, it shall stop recognizing the financial asset and separately recognize the rights and
obligations generated retained from the transfer as assets or liabilities. If it retained nearly all of the risks and
rewards related to the ownership of the financial asset, it shall continue to recognize the transferred financial asset.
Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of a
financial asset, it shall deal with it according to the circumstances as follows, respectively: (1) If it gives up its
control over the financial asset, it shall stop recognizing the financial asset and separately recognize the rights and
obligations generated retained from the transfer as assets or liabilities; (2) If it does not give up its control over the
financial asset, it shall, according to the extent of its continuous involvement in the transferred financial asset,
recognize the related financial asset and recognize the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between
the amounts of the following 2 items shall be recorded in the profits and losses of the current period: (1) The
carrying value of the transferred financial asset on the derecognition date; (2) The sum of consideration received
from the transfer of financial assets, and derecognition amount among the accumulative amount of the changes of
the fair value originally recorded in the other comprehensive income (the financial assets involve transfer are
investments in debt instruments at fair value through other comprehensive income. If the transfer of partial
financial asset satisfies the conditions to stop the recognition, the entire carrying value of the transferred financial
asset shall, between the portion whose recognition has been stopped and the portion whose recognition has not
been stopped, be apportioned according to their respective relative fair value on the transfer date, and the
difference between the amounts of the following two items shall be included into the profits and losses of the
current period: (1)The carrying value of the portion whose recognition has been stopped; (2)The sum of
130
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
consideration of the portion whose recognition has been stopped, and derecognition amount among the
accumulative amount of the changes of the fair value originally recorded in the other comprehensive income (the
financial assets involve transfer are investments in debt instruments at fair value through other comprehensive
income.
4. Recognition Method of Financial Assets and Financial Liabilities’ Fair Value
The Company adopts the valuation technique with sufficient useful data and supported by other information
which is suitable for the current situation to recognize the fair value of related financial assets and liabilities. The
Company classifies the input value used in the valuation technique into the following levels and uses them in
sequence:
(1) The first level of input value is the non-adjustable offer of the same assets or liabilities in the active market on
the calculation date;
(2) The second level of input value is the directly or indirectly observable input value of related assets or liabilities
except the input value on the first level, including: offer of similar assets or liabilities in the active market; offer of
identical or similar assets or liabilities in the non-active market; other observable input value except offer,
including the observable interest rate during the interval period of common offer, profit rate curve, etc.; the input
value for market verification etc..
(3) The third level of input value is the non-observable input value of related assets or liabilities, including interest
rates that cannot be observed directly or verified by the data of observable market, stock fluctuation rate, future
cash flow of the disposal obligation borne in corporate mergers, financial forecast based on self-data, etc..
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial
assets which is measured by amortized cost, debt instrument investment which is measured by fair value and
whose change is calculated into other comprehensive profits, accounts receivable of rental, loan commitment
which is beyond financial debt classified as the one which is measured by fair value and whose change is
calculated into current profits and losses, financial debt which does not belong to the one which is measured by
fair value and whose change is calculated into current profits or losses, or financial guarantee contract of financial
debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation
condition of termination or keeps on being involved in transferred financial asset.
Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of
contract breach occurrence as the weight. Credit loss refers to the difference between all contract cash flow which
is converted into cash according to actual interest rate and receivable according to contract and all cash flow
which to be charged as expected, i.e. current value of all cash shortage. Among it, as for financial asset purchased
or original which has had credit impairment, it should be converted into cash according actual interest rate of this
financial asset after credit adjustment.
As for financial asset purchased or original which has had credit impairment, the Company only confirms
cumulative change of expected credit loss within the whole duration after initial confirmation on the balance sheet
date as loss reserve.
As for accounts receivable which don’t include major financing contents or the Company does not consider
financing contents in contract which is less than one year, the Company applies simplified measurement method,
and measures loss reserve according to amount of expected credit loss within the whole duration.
As for account receivable of rental and accounts receivable including major financing contents, the Company
applies simplified measurement method, and measure loss reserve according to amount of expected credit loss
within the whole duration.
131
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit
risk has increased obviously since the initial confirmation on each balance sheet date. In case credit risk has
increased obviously, the Company measures the loss reserve according to amount of expected credit loss within
the whole duration; in case the credit risk does not increase obviously, the Company measures loss reserve
according to the amount of expected credit loss in next 12 months.
By utilizing obtainable rational and well grounded information, including forward-looking information,
comparing the risk of contract breach on balance sheet date and risk of contract breach on initial confirmation date,
the Company confirms whether the credit risk of financial instrument has increased obviously from initial
confirmation.
On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk,
then it will be assumed that credit risk of the financial instrument has not increased obviously.
Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and
measures expected credit loss. When based on financial instrument portfolio, the Company takes common risk
characteristics as the basis, and divides financial instruments into different portfolios.
The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or
amount which is transfer back generated by it is calculated into current profits and losses as impairment profits or
losses. As for financial asset which is measured by amortized cost, loss reserve offsets the carrying value of the
financial asset listed in the balance sheet; as for debt investment which is measured by fair value and whose
change is calculated into other comprehensive profits, the Company confirms its loss reserve in other
comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
Item Recognition basis Method of measuring expected credit
losses
Other receivables-intercourse funds among Accounts nature Consulting historical experience in
related party group within the consolidation credit losses, combining actual
scope situation and prediction for future
Other receivables-interest receivable group economic situation, the group’s
Other receivables-other intercourse funds expected credit loss rate shall be
among related party group accounted through exposure at
default and the expected credit loss
rate within the next 12 months or the
entire life
Other receivables-credit risk characteristics Aging group Consulting historical experience in
group credit losses, combining actual
situation and prediction for future
economic situation, the group’s
expected credit loss rate shall be
accounted through exposure at
default and the expected credit loss
rate within the next 12 months or the
entire life
(3) Accounts receivable with expected credit losses measured by groups
① Specific groups and method of measuring expected credit loss
Item Recognition basis Method of measuring expected credit
132
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
losses
Bank’s acceptance bills receivable Bill type Consulting historical experience in
credit losses, combining actual
Trade acceptance bills receivable situation and prediction for future
economic situation, the group’s
expected credit loss rate shall be
accounted through exposure at default
and the expected credit loss rate
within the entire life
Accounts receivable-other intercourse fundsAccount nature Consulting historical experience in
among related party group credit losses, combining actual
situation and prediction for future
economic situation, the group’s
expected credit loss rate shall be
accounted through exposure at default
and the expected credit loss rate
within the entire life
Accounts receivable-credit risk characteristics Aging group Prepare the comparative list between
group aging of accounts receivable and
expected credit loss rate over the
entire life by consulting historical
experience in credit losses,
combining actual situation and
prediction for future economic
situation
② Accounts receivable-the comparative list between aging of common customer group and expected credit loss
rate over the entire life
Aging Expected credit loss rate of accounts
receivable (%)
Within 1 year (inclusive, the same below) 3.00
1 to 2 years 10.00
2 to 3 years 30.00
3 to 4 years 50.00
4 to 5 years 80.00
Over 5 years 100.00
6. Offset between financial asset and financial debt
Financial asset and financial debt are listed in the balance sheet separately and don’t offset each other. However,
when the following conditions are met at the same time, the Company will list the net amount after mutual offset
in the balance sheet: (1) The Company has the legal right to offset the confirmed amount, and the legal right is
executable currently; (2) The Company plans to settle by net amount, or monetize the financial asset and liquidate
the financial debt at the same time. For those transfers of financial assets not meeting the derecognition conditions,
the Company does not offset the transferred financial assets and relative liabilities.
133
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
11. Notes Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
12. Accounts Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
13. Accounts Receivable Financing: not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivables
Refer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation,
development products, temporarily leased development products which intended for sale, relocation housing,
stock materials, inventory equipment, and low-value consumables, etc., as well as development costs in the
process of development.
(2) Cost Flow Assumption
1) Send-out materials and equipment shall adopt the moving weighted average method.
2) During the development of the project, the development land shall be included in the development cost of the
project by the floor area apportion of the developed products.
3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be
amortized averagely by stages according to the expected useful life of the same kind of fixed assets of the
Company.
5) If the public supporting facilities are completed earlier than the relevant development products, after the final
account of the public supporting facilities ， it shall be account into the development cost of the relevant
development projects according to the building area; If the public supporting facilities are completed later than the
relevant development products, the relevant development products shall withhold the public supporting facilities
fees, and adjust the relevant development product costs according to the difference between the actual occurrence
and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date, inventory shall be measured at the lower of cost or net realizable value, and provision
shall be made for falling price of inventories on the ground of the difference between the cost of each item of
inventories and the net realizable value. Inventories directly for sale, under normal producing process, to the
amount after deducting the estimated sale expense and relevant taxes from the estimated sell price of the inventory,
the net realizable value has been recognized; inventories which need to be processed, under normal producing
process, to the amount after deducting the estimated cost of completion, estimated sale expense and relevant taxes
from the estimated sale price of produced finished goods, the net realizable value has been recognized; on the
balance sheet date, in the same item of inventories, if some have contractual price agreement while others do not,
134
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
the net realizable value shall be recognized respectively and compared with their cost, and the amount of
provision withdrawal or reversal for falling price of inventories shall be recognized respectively.
(4) Inventory System for Inventories:
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
One-off amortization method
16. Contractual Assets: not applicable.
17. Contractual Costs: not applicable
18. Divided as Assets Held for Sale
1. Classification of Non-current assets or disposal group Held for Sale
Non-current assets or disposal group are confirmed to be the components held for sale when the following
conditions are simultaneously satisfied: (1) According to the convention of similar transactions selling this kind of
assets or disposal group, they can be sold instantly in such conditions. (2) Sale is extremely likely to happen, that
is, the Company has made the decision of a sale plan, and got the confirmed purchase commitment. It is estimated
that the sale will be finished within 1 year.
Non-current assets or disposal groups specifically obtained by the Company 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).
If any transaction between non-related parties fails to complete within one year due to one of the following
reasons outside the Company’s control, and the Company still commits to sell non-current assets or disposal
groups, the non-current assets or disposal groups shall be still classified as the held-for-sale category: (1) For
conditions of sale delay resulting from the accidental setting by the buyer or another party, the Company has duly
taken actions against those conditions and it is expected that the delay factors can be smoothly solved within one
year since the conditions of sale delay resulting from the setting; (2) Non-current assets or disposal groups held
for sale fail to be sold within one year due to rare circumstances, and the Company has taken necessary measures
against those new situations within the first year and re-satisfied the conditions for classifying them into the
held-for-sale category.
2. Measurement of held-for-sale non-current assets or disposal groups
(1) Initial measurement and subsequent measurement
For the initial measurement and the re-measurement of held-for-sale non-current assets or disposal groups on the
balance sheet date, if the carrying value is higher than the net amount of the fair value deducting the selling
expenses, the carrying value shall be written down to the net amount of the fair value deducting the selling
expenses. The written down amount shall be recognized as asset impairment losses and recorded into current
profits or losses, and at the same time, the held-for-sale asset impairment provision shall be withdrawn.
In respect of non-current assets or disposal groups classified into the held-for-sale category on the date of
obtainment, when initially measuring them, compare the initially measured amount supposing that they are not
135
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
classified into the held-for-sale category and the amount of the fair value deducting the selling expenses, and
measure them at the lower amount. Other than the non-current assets or disposal groups obtained in corporate
mergers, the difference generated from the net amount of the fair value of non-current assets or disposal groups
deducting the selling expenses as the initially measured amount shall be recorded into current profits or losses.
For the amount of asset impairment losses recognized in respect of held-for-sale disposal groups, first write off the
carrying value of goodwill in the disposal groups, and then write off their carrying value in proportion according
to the percentage of the carrying value of each non-current asset in the disposal groups.
Depreciation or amortization shall not be withdrawn for held-for-sale non-current assets or the non-current assets
in disposal groups, while the interests of liabilities and other expenses in held-for-sale disposal groups shall still
be recognized.
(2) Accounting Methods for the Recovery of Assets Impairment Losses
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 carrying 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
carrying value shall be increased proportionately to the proportion of the carrying value of various non-current
assets measured by the disposal group in addition to goodwill.
(3) Accounting Methods for Ceasing to be classified as held-for-sale and Termination of Recognition
When a non-current asset or disposal group ceases to 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 carrying 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.
When terminating the recognition of non-current assets or disposal group held for sale, the unconfirmed gains or
losses shall be recorded into the current profits and losses.
19. Investments in Debt Obligations: not applicable
20. Investments in other Debt Obligations: not applicable
21. Long-term Accounts Receivable: not applicable
22. Long-term Equity Investments
1. Judgment of Joint Control and Significant Influences
136
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
The term "joint control" refers to the joint control over an arrangement in accordance with the related agreements,
which does not exist unless the participants sharing the control power agree with each other about the related
arranged activity. The term "significant influences" refers to the power to participate in making decisions on the
financial and operating policies of an enterprise, but not to control or do joint control together with other parties
over the formulation of these policies.
2. Recognition of Investment Cost
(1) 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, bearing acquiree’s liabilities, or the issuance of equity
securities, the initial cost is the carrying amount of the proportion of the acquiree’s owner’s equity at the
acquisition date. The difference between the initial cost of the long-term equity investment and the carrying
amount of the paid combination or the total amount of the issued shares should be adjusted to capital surplus. If
the capital surplus is not sufficient for adjustment, retained earnings are adjusted respectively.
When a long-term equity investment is formed from the business combination under common control through the
Company’s multiple transactions step by step, the treatment shall be carried out based on whether the transactions
constitute the “package deal”. If they do, the accounting treatment shall be carried out on the basis of assuming all
transactions as one transaction with the acquisition of control. If they do not, the initial investment cost shall be
the portion of the carrying value of acquiree’s net assets entitled in the consolidated financial statements of the
final controller after the consolidation. The difference between the initial investment cost of the long-term equity
investment on the combination date and the carrying value of the investment before the combination plus the
carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shall be
adjusted to capital reserve; if the capital reserve is insufficient for the adjustment, retained earnings should be
adjusted accordingly.
(2) For those formed from the business combination under different control, the initial investment cost is the fair
value of the combination consideration paid on the acquisition date.
When a long-term equity investment is formed from the business combination under different control through the
Company’s multiple transactions step by step, the accounting treatment shall be carried out based on whether the
financial statements are individual or consolidated:
1) In individual financial statements, the initial investment cost accounted in cost method is the sum of the
carrying value of the equity investment originally held and the cost of new investment.
2) In consolidate financial statements, judge whether the transactions constitute the “package deal”. If they do, the
accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with the
acquisition of control. If they do not, for the acquiree’s equity held before the acquisition date, re-measurement
shall be carried out according to the fair value of the equity on the acquisition date and the difference between the
fair value and the carrying value shall be recorded into current investment income; if the acquiree’s equity held
before the acquisition date involves other comprehensive income accounted in equity method, other
comprehensive income related to it shall be transferred into the income for the period in which the acquisition date
falls, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or
net assets of the defined benefit pension plans be re-measured for setting by the investees.
3) For those formed other than from business combination: If they are acquired in cash payment, the initial
investment cost is the purchase price actually paid; if they are acquired in the issue of equity securities, the initial
137
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
investment cost is the fair value of the issued equity securities; if they are acquired in debt restructuring, the initial
investment cost shall be recognized according to the Accounting Standards for Enterprises No. 12 - Debt
Restructuring; if they are acquired in the exchange of non-monetary assets, the initial investment shall be
recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-Monetary Assets.
3. Method of subsequent measurement and recognition of profits and losses
Long-term equity investment with control over investees shall be accounted in cost method; long-term equity
investment on associated enterprises and joint ventures shall be accounted in equity method.
4. Method of treating the disposal of the investment in a subsidiary stem by step through multiple
transactions until the loss of the controlling right
(1) Individual financial statements
For the disposed equity, the difference between its fair value and the actually obtained price shall be recorded into
current profits or losses. For the residual equity, the part that still has significant effects on investees or with
common control jointly with other parties shall be accounted in equity method; the part that has no more control,
common control or significant effects on investees shall be accounted in accordance with the relevant regulation
of the Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
(2) Consolidated financial statements
1) For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through
multiple transactions, which do not constitute the “package deal”
Before the loss of the controlling right, for the balance between the disposal remuneration and the shares of net
assets in the subsidiaries that have been calculated since the acquisition date or combination date corresponding to
the disposal of long-term equity investment, capital reserve (capital premium) shall be adjusted, and if the capital
premium is not sufficient for the write-down, the retained earnings shall be written down.
At the loss of the controlling right over the original subsidiaries, the residual equity shall be re-measured at its fair
value on the date of losing the controlling right. The difference between the consideration obtained in the equity
disposal, plus the fair value of the remaining equities, less the Company’s share of net assets enjoyed of the
former subsidiary that has been calculated since the acquisition date or combination date according to the former
shareholding ratio, shall be recorded into the investment gains for the period when the control ceases; meanwhile,
goodwill shall be written down. Other comprehensive income related to former subsidiary's equity investment
shall be transferred into current investment income when the control ceases.
2) For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through
multiple transactions, which constitute the “package deal”
The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of
disposing the subsidiary and losing control. However, before losing control, the difference between each disposal
price before losing the control, and the corresponding net assets share enjoyed of subsidiary when disposing
long-term equity investment, shall be recognized as other comprehensive income in the consolidated financial
statements and when the control ceases, transferred into current profits or losses of the period of losing control.
138
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
23. Investment Property
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to
use any land which is held and prepared for transfer after appreciation, and the right to use any building which has
already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in
the subsequent measurement of investment property, and adopts the same methods with fixed assets and intangible
assets to withdraw depreciation or amortization.
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are
held for the sake of producing commodities, rendering labor service, renting or business management; and their
useful life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously meets the
conditions as follows: (1) The economic benefits are likely to flow into the enterprise; (2) The cost of the fixed
asset can be measured reliably.
(2) Depreciation Method
Expected net salvage
Category Depreciation method Useful life (year) Annual deprecation
value
Houses and buildings Straight-line depreciation 20-25 5-10 3.6-4.75
Transportation Straight-line depreciation 5 5 19
Other equipment Straight-line depreciation 5 5 19
Machinery equipment Straight-line depreciation 5 5 19
Decoration of fixed
Straight-line depreciation 5 0 20
assets
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease: not applicable
25. Construction in Progress
1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1)
The economic benefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured
reliably. Construction in progress shall be measured according to the occurred actual costs before the assets
available for the intended use.
2. When the construction in progress is available for the intended use, it shall be transferred to fixed assets
according to the actual cost of the project. For construction in progress available for the intended use but not
139
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
dealing with final accounts of completed project, it shall be transferred to fixed assets according to the estimated
value first, and then adjust original temporarily estimated value based on the actual costs after the final accounts
of completed project, but not adjust the depreciation that was already calculated.
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization, it shall be capitalized and recorded into the costs of
relevant assets. Other borrowing costs shall be recognized as expenses when it occurred, and shall be recorded
into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1)
The asset disbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition
and construction or production activities which are necessary to prepare the asset for its intended use or sale have
already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The
borrowing costs incurred during such period shall be recognized as expenses, and shall be recorded into the profits
and losses of the current period, till the acquisition and construction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are
available for its intended use or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and 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 interest costs
(including amortization of discount and premium confirmed according to effective interest method) 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.
27. Biological Assets: not applicable
28. Oil and Gas Assets: not applicable
29. Use Right Assets: not applicable
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Intangible assets include right to use land sites, use right of software etc. and conduct the initial measurement
according to the costs.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably
140
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
within their service life according to the expected implementation of economic interests related to the intangible
assets. If it can’t recognize the expected implementation reliably, it shall be amortized by straight-line method.
The specific useful lives are as follows:
Items Useful life for amortization (years)
Use right of lands Statutory life of land use right
Use right of software 5
The intangible assets with uncertain service life shall not be amortized, and the Company rechecks the service life
of the intangible assets in every accounting period. For intangible assets with uncertain service, the recognition
basis is without certain service life and expected benefit life.
(2) Accounting Policies of Internal R&D Expenses: not applicable
31. Impairment of Long-term Assets
For long-term assets, such as investment property measured by cost model, fixed assets, construction in progress,
and intangible assets with limited service life measured by cost model, the Company shall estimate the
recoverable amount if there are signs of impairment on balance sheet date. For intangible assets with uncertain
goodwill or service life formed by enterprise combination, whether or not there is sign of impairment, impairment
test shall be conducted every year. Goodwill combination and its related assets group or combination of assets
group shall be conducted the impairment test.
If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value, it shall make
the preparation for assets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year
excluded) that have occurred. Long-term prepaid expense shall be recorded into the account according to the
actual accrual. Long-term prepaid expense shall be amortized averagely within benefit period or specified period.
In case of no benefit in the future accounting period, the amortized value of such project that fails to be amortized
shall be transferred into the profits and losses of the current period.
33. Contractual Liabilities: not applicable
34. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period when the employees providing the service for the Company, the actual short-term
compensation shall be recognized as liabilities, and be recorded into the current profits and losses or related assets
costs.
(2) Accounting Treatment of the Welfare after Demission
The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans
141
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(1) During the accounting period when the employee providing service for the Company, the amount paid in line
with the setting drawing plan will be recognized as liabilities and recorded into current profits or losses or cost of
relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method, adopt unbiased and mutually consistent actuarial
assumptions to evaluate related demographic variables and financial variables, measure the obligations generated
from defined benefit plans and recognize the period in respect of related obligations. Meanwhile, discount the
obligations generated from defined benefit plans to recognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan, the deficit or surplus formed from the present value of the
defined benefit plan obligations less the fair value of the defined benefit plan assets shall be recognized as net
liabilities or net assets of a defined benefit plan. If there is any surplus in a defined benefit plan, the net assets of
the plan shall be measured at the lower of the surplus or the upper asset limit;
3) At the end of the period, the staff remuneration costs generated from a defined benefit plan shall be recognized
as services costs, net interests of the net liabilities or net assets of the plan and changes from the re-measurement
of the net liabilities or net assets of the plan. Service costs and net interests of the net liabilities or net assets of the
plan shall be recorded into the current profits or losses or related asset costs, while changes from the
re-measurement of the net liabilities or net assets of the plan shall be recorded into other comprehensive income
and shall not be transferred back to profits or losses in subsequent accounting periods. But the amounts recognized
in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of 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 other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees, and for those met with the
defined contribution plans, accounting treatment should be conducted according to the related regulations of the
defined contribution plans; the for the others long-term employee benefits except for the former, accounting
treatment should be conducted according to the related regulations of the defined benefit plans. In order to
simplify the related accounting treatment, the payrolls shall be recognized as service costs, the net amount of
interest of net liabilities and net assets of other welfare of the long-term employees. The total net amounts made
up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees
again shall be recorded into the current profits and losses or related assets costs.
35. Lease Liabilities: not applicable
36. Provisions
1. The obligation such as external guaranty, litigation or arbitration, product quality assurance, loss contract,
pertinent to a contingencies shall be recognized as the provisions when the following conditions are satisfied
simultaneously: ① That obligation is a current obligation of the enterprise; ② It is likely to cause any economic
142
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
benefit to flow out of the enterprise as a result of performance of the obligation; and ③ The amount of the
obligation can be measured in a reliable way.
2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed
for performing the related current obligation and recheck the carrying value of accrued liabilities on balance sheet
date.
37. Share-based Payment: not applicable
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds: not applicable
39. Revenue
Has implemented new standards governing revenue
□ Yes √ No
(1) Real Estate Sales Revenue
1) Real Estate Sales Revenue Recognition Principle
The realization of sales revenue shall be recognized under the following conditions: the developed products have
been completed and accepted, the sales contract has been signed and the obligations stipulated in the contract have
been fulfilled, the main risks and rewards of ownership of the developed products have been transferred to the
buyer at the same time, the Company shall no longer retain the continuous management rights normally associated
with ownership and effectively control the sold developed products, the revenue amount can be measured reliably,
the related economic benefits are likely to flow in, and the related costs that have occurred or will occur can be
measured reliably.
For the sale of self-occupied housing, the realization of sales income shall be recognized under the following
conditions: the main risks and rewards of ownership of self-occupied houses are transferred to the buyer, the
Company will no longer retain the continuous management rights normally associated with ownership and
effectively control the sold development products, the amount of income can be measured reliably, relevant
economic benefits are likely to flow in, the relevant costs that have occurred or will occur can be measured
reliably.
2) Specific methods for recognizing real estate sales revenue
Only recognizing the sales income realization under the following conditions: acquired the real estate completed
and accepted as qualified (the completion and acceptance reports), signed an irreversible sales contract, obtained
the buyer's payment certificate (for those who chose bank mortgage, the first installment and the full amount of
bank mortgage must be required; for those who did not choose the bank mortgage to make their payment, the full
house payment must be required) issued the notice of repossession (if the owner fails to go through the formalities
in time within the specified time limit the building shall be deemed as repossessed).
(2) Providing labor services
If the provision of labor services can be reliably estimated (all the following conditions are met: ① The amount of
income can be measured reliably; ②The relevant economic benefits are likely to inflow to the Company; ③ The
progress of the transaction can be reliably determined; ④ The cost incurred and to be incurred in the transaction
can be measured reliably), it shall recognize the revenue from providing services employing the
percentage-of-completion method, and confirm the completion of labor service according to the costs incurred as
a percentage of the total estimated costs. If the Company can’t, on the date of the balance sheet, reliably estimate
the outcome of a transaction concerning the labor services it provides, it shall be handled under the following
143
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
conditions: If the cost of labor services incurred is expected to be compensated, the revenue from the providing of
labor services shall be recognized in accordance with the amount of the cost of labor services incurred, and the
cost of labor services shall be carried forward at the same amount; If the cost of labor services incurred is not
expected to compensate, the cost incurred should be included in the current profits and losses, and no revenue
from the providing of labor services may be recognized.
Property management revenue shall be recognized when property management services have been provided,
economic benefits related to property management services can flow into the enterprise, and costs related to
property management can be reliably measured.
(3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both
met: the relevant economic benefits are likely to inflow to the Company; and the revenue can be reliably measured.
The interest income shall be recognized according to the time and actual interest rate in which other people use
the Company’s monetary funds. Royalty revenue shall be recognized according to the chargeable time and method
stipulated in related contracts and agreements.
According to the lease date and lease amount agreed in the lease contract and agreement, the realization of rental
property income shall be recognized when relevant economic benefits are likely to flow in.
(4) Other Business Income
According to the stipulations of relevant contracts and agreements, when the economic benefits related to the
transaction can flow into the enterprise and the costs related to the income can be reliably measured, the
realization of other business income shall be confirmed.
40. Government Subsidies
1. If the government subsidies meet with the following conditions at the same, it should be recognized: (1)
The entity will comply with the condition attaching to them; (2) The grants will be received from government. If a
government subsidy is a monetary asset, it shall be measured according to the amount received or receivable. If a
government subsidy is a non-monetary asset, it shall be measured at its fair value, and shall be measured at a
nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to
government documents shall be defined as asset-related government subsidies. For those not specified in
government documents, the judgment shall be made based on the compulsory fundamental conditions for
acquiring the subsidies. If the subsidies are acquired with construction or the formation of long-term assets in
other ways as fundamental conditions, they shall be recognized as asset-related government subsidies. For
asset-related government subsidies, the carrying value of related assets shall be written down or recognized as
deferred income. If asset-related government subsidies are recognized as deferred income, it shall be recorded into
profits or losses by period in a reasonable and systemic manner within the life of related assets. Government
subsidies measured at the nominal amount shall be directly recorded into current profits or losses. If related assets
are sold, transferred, disposed of or destroyed before the end of their life, the undistributed balance of related
deferred income shall be transferred into the profits or losses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related
government subsidies. For government subsidies consisting of both asset-related parts and profits-related parts,
which is difficult to judge whether they are related to assets or profits, the entirety shall be classified as
144
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
profits-related government subsidies. Profits-related government subsidies that are used to compensate the related
future expenses or losses shall be recognized as deferred income and shall be included into the current
profit/losses during the period when the relevant expenses or losses are recognized; those subsidies used to
compensate the related expenses or losses incurred shall be directly included into the current profits/losses.
4. Government subsidies related to the Company’s routine operating activities shall be included into other
income or write down related costs according to the economic business nature. Government subsidies not related
to the Company’s routine activities shall be included into non-operating income and expenditure.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases
according to the tax law, the balance between the tax bases and its carrying amount) between the carrying amount
of assets or liabilities and their tax bases, deferred tax assets and deferred tax liabilities should be recognized at
the tax rates that are expected to apply to the period when the asset is realized or the liability is settled.
2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset
the deductible temporary differences. 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.
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses
as income tax expenses or revenue, except in the following circumstances: (1) Business combination; (2) The
transaction or event directly included in owner’ equity.
42. Lease
(1) Accounting Treatment of Operating Lease
As a Lessee, the Company shall record the rent into relevant assets cost or recognize it as 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 into the current profit or loss when they are incurred.
As a lessor, the Company shall recognize the rent as the current profit or loss on a straight-line basis over the lease
term. Initial direct costs incurred by the lessor shall be directly recognized as the current profit or loss except that
costs with larger amounts shall be capitalized and recorded into the current profit and loss by stages; Contingent
rents shall be charged into the current profit or loss when 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 shall be directly recorded into leasing asset value. At each period during the lease term, the
145
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
effective interest rate method shall be adopted to calculate and confirm the current financing charge.
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; At each period
during the lease term, the effective interest rate method shall be adopted to calculate and confirm the current
financing income.
43. Other Important Accounting Policies and Accounting Estimations
(1) Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions, have been disposed or divided as held for sale category
and can be distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one
single main operation area.
3) The component is a subsidiary which is obtained for resale specially.
Refer to the Note XVI (5) of the financial statements for detailed situation of the Company operation termination.
(2) Accounting Method for Maintenance fund and Quality Deposit
1) Maintenance fund accounting method
According to the local relevant regulations of the development project, the maintenance fund shall collect from
the buyers, or withdraw from the development costs of the Company’s relevant development products when
development products sell (pre-sell), and shall uniformly turn them over to the maintenance fund management
department.
2) Quality deposit accounting method
The quality guarantee fund shall be reserved from the project fund of the construction unit according to the
provisions of the construction contract. Maintenance fees incurred during the warranty period of the developed
products shall be offset against the quality guarantee deposit; After the expiration of the warranty period agreed
upon in the development of products, the balance of the quality guarantee deposit shall be returned to the
construction unit.
(3) Segmental report
The Group recognizes the operating segments according to the internal organization structure, the management
requirements and the internal report system. Operating segments refer to the compose parts of the Group which
meet with the following conditions at the same time:
1) the compose part could cause revenues and expenses in the daily activities;
2) the management layer could periodically evaluate the operation results of the compose part and base which to
distribute the resources and evaluate the performance;
3) the Group could acquire the relevant accounting information of the financial conditions, operation results and
the cash flows of the compose part through analysis.
146
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
√Applicable □ Not applicable
Contents and reasons Procedures Remarks
1) Change of accounting policies caused by change of Accounting Standards for Business Enterprises
① The Company prepared 2019 Financial Statements in accordance with the Notice on Revising and Printing the
Format of 2019 General Enterprises Financial Statements (CK [2019] No. 6), the Notice on Revising and Printing
the Format of Consolidated Financial Statements (2019) (CK [2019] No. 16) issued by the Ministry of Finance
and the requirements of the Accounting Standards for Business Enterprises. Retroactive adjustment was adopted
for the changes in the accounting policy. The significantly affected items and amounts in 2018 Financial
Statements are as follows:
Item and amount in original financial statement Item and amount in new financial statement
Notes receivable and Notes receivable
accounts receivable 155,898,006.77
Accounts receivable 155,898,006.77
Notes payable and accounts Notes payable
payable 435,350,850.19
Accounts payable 435,350,850.19
2) The Company starts to implement the Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedging and Accounting Standards for
Business Enterprises No.37-Presentation of Financial Instruments (hereinafter referred to the new standards
governing financial instruments) revised by the Ministry of Finance since 1 January 2019. As required by the
connection regulation for the old and new standards, the information of comparative period was not adjusted, and
the beginning retained earnings or other comprehensive income of the Reporting Period shall be retroactively
adjusted for the difference between the original standards and the new one when implemented on the first
execution date.
① The impacts of implementing the new standards governing financial instruments on the Company’s financial
statements on 1 January 2019:
Item Balance sheet
31 December 2018 Impacts 1 January 2019
Monetary assets 3,894,546,925.52 13,055,107.15 3,907,602,032.67
Other receivables 80,037,483.65 -13,055,107.15 66,982,376.50
Other payables 656,720,054.30 -1,669.10 656,718,385.20
Current portion of non-current 1,669.10 1,669.10
liabilities
② The comparison statement of financial assets and financial liabilities of the Company classified and measured
respectively according to the new standards governing financial instruments and the original one on 1 January
2019:
Item Original standards New standards
Measurement Carrying value Measurement category Carrying value
147
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
category
Monetary assets Loans and accounts 3,894,546,925.52Financial assets at amortized 3,907,602,032.67
receivable cost
Accounts receivable Loans and accounts 155,898,006.77Financial assets at amortized 155,898,006.77
receivable cost
Other receivables Loans and accounts 80,037,483.65Financial assets at amortized 66,982,376.50
receivable cost
Available-for-sale Available-for-sale 3,621,381.11
financial assets financial assets
Investments in other Financial assets at fair value 3,621,381.11
equity instruments through other comprehensive
income
Accounts payable Other financial 435,350,850.19Financial liabilities at 435,350,850.19
liabilities amortized cost
Other payables Other financial 656,720,054.30Financial liabilities at 656,718,385.20
liabilities amortized cost
Current portion of Other financial Financial liabilities at 1,669.10
non-current liabilities liabilities amortized cost
Long-term Other financial 1,000,000.00Financial liabilities at 1,000,000.00
borrowings liabilities amortized cost
③ The reconciliation statement of carrying value of original financial assets and financial liabilities of the
Company reclassified and remeasured according to the new standards governing financial instruments on 1
January 2019
Item Carrying value listed Reclassified Remeasured Carrying value listed
according to original according to new
standards standards
(31 December 2018) (1 January 2019)
A. Financial assets
a. Amortized cost
Monetary assets 3,894,546,925.52 13,055,107.15 3,907,602,032.67
Accounts receivable 155,898,006.77 155,898,006.77
Other receivables 80,037,483.65 -13,055,107.15 66,982,376.50
Total financial assets 4,130,482,415.94 4,130,482,415.94
at amortized cost
b. At fair value through other comprehensive income
Available-for-sale 3,621,381.11 -3,621,381.11
financial assets
Investments in other 3,621,381.11 3,621,381.11
equity instruments
Total financial assets 3,621,381.11 3,621,381.11
at fair value through
other comprehensive
148
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
income
B. Financial liabilities
a. Amortized cost
Accounts payable 435,350,850.19 435,350,850.19
Other payables 656,720,054.30 -1,669.10 656,718,385.20
Current portion of 1,669.10 1,669.10
non-current liabilities
Long-term borrowings 1,000,000.00 1,000,000.00
Total liabilities at 1,093,070,904.49 1,093,070,904.49
amortized cost
3) The Company starts to implement the revised Accounting Standards for Business Enterprises
No.7-Non-Monetary Assets Exchange since 10 June 2019 and to implement the revised Accounting Standards for
Business Enterprises No.12-Debt Restructuring since 17 June 2019. This change of accounting policy was treated
with prospective application.
(2) Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases since 2019
√ Applicable □ Not applicable
Consolidated balance sheet:
Unit: RMB
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary assets 3,894,546,925.52 3,907,602,032.67 13,055,107.15
Settlement reserve
Interbank loans granted
Held-for-trading financial
assets
Financial assets at fair
value through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 155,898,006.77 155,898,006.77
Accounts receivable
financing
149
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Prepayments 59,546,657.35 59,546,657.35
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 80,037,483.65 66,982,376.50 -13,055,107.15
Including: Interest
13,055,107.15 -13,055,107.15
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 1,396,154,603.04 1,396,154,603.04
Contract assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 17,233,435.58 17,233,435.58
Total current assets 5,603,417,111.91 5,603,417,111.91
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Available-for-sale financial
3,621,381.11 -3,621,381.11
assets
Investments in other debt
obligations
Held-to-maturity
investments
Long-term receivables
Long-term equity
39,999,283.24 39,999,283.24
investments
Investments in other equity
3,621,381.11 3,621,381.11
instruments
150
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Other non-current financial
assets
Investment property 639,167,209.48 639,167,209.48
Fixed assets 102,516,975.36 102,516,975.36
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 455,300.38 455,300.38
R&D expense
Goodwill
Long-term prepaid
3,493,237.29 3,493,237.29
expense
Deferred income tax assets 520,832,796.49 520,832,796.49
Other non-current assets 109,851,318.29 109,851,318.29
Total non-current assets 1,419,937,501.64 1,419,937,501.64
Total assets 7,023,354,613.55 7,023,354,613.55
Current liabilities:
Short-term borrowings
Borrowings from central
bank
Interbank loans obtained
Held-for-trading financial
liabilities
Financial liabilities at fair
value through profit or loss
Derivative financial
liabilities
Notes payable
Accounts payable 435,350,850.19 435,350,850.19
Advances from customers 278,045,801.46 278,045,801.46
Contract liabilities
Financial assets sold under
repurchase agreements
Customer deposits and
interbank deposits
151
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Payables for acting trading
of securities
Payables for underwriting
of securities
Payroll payable 126,062,756.70 126,062,756.70
Taxes payable 1,580,024,773.11 1,580,024,773.11
Other payables 656,720,054.30 656,718,385.20 -1,669.10
Including: Interest
1,669.10 -1,669.10
payable
Dividends
12,434,579.81 12,434,579.81
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets
classified as held for sale
Current portion of
1,669.10 1,669.10
non-current liabilities
Other current liabilities
Total current liabilities 3,076,204,235.76 3,076,204,235.76
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 1,000,000.00 1,000,000.00
Bonds payable
Including: Preferred
shares
Perpetu
al bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax
5,275.60 5,275.60
liabilities
152
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Other non-current
64,627,587.61 64,627,587.61
liabilities
Total non-current liabilities 65,632,863.21 65,632,863.21
Total liabilities 3,141,837,098.97 3,141,837,098.97
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred
shares
Perpetu
al bonds
Capital reserves 483,347,184.25 483,347,184.25
Less: Treasury stock
Other comprehensive
-1,786,181.69 -1,786,181.69
income
Specific reserve
Surplus reserves 299,569,569.96 299,569,569.96
General reserve
Retained earnings 2,495,296,440.15 2,495,296,440.15
Total equity attributable to
owners of the Company as 3,872,406,104.67 3,872,406,104.67
the parent
Non-controlling interests 9,111,409.91 9,111,409.91
Total owners’ equity 3,881,517,514.58 3,881,517,514.58
Total liabilities and owners’
7,023,354,613.55 7,023,354,613.55
equity
Notes to the adjustments:
The Company starts to implement the Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedging and Accounting Standards for
Business Enterprises No.37-Presentation of Financial Instruments (hereinafter referred to the new standards
governing financial instruments) revised by the Ministry of Finance since 1 January 2019. As required by the
connection regulation for the old and new standards, the information of comparative period was not adjusted, and
the beginning retained earnings or other comprehensive income of the Reporting Period shall be retroactively
adjusted for the difference between the original standards and the new one when implemented on the first
execution date.
Balance sheet of the Company as the parent:
Unit: RMB
153
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary assets 2,520,788,994.16 2,529,018,497.74 8,229,503.58
Held-for-trading financial
assets
Financial assets at fair
value through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 1,853,494.72 1,853,494.72
Accounts receivable
financing
Prepayments 829,683.68 829,683.68
Other receivables 1,306,715,826.93 1,298,486,323.35 -8,229,503.58
Including: Interest
8,229,503.58 -8,229,503.58
receivable
Dividends
receivable
Inventories 105,840,115.24 105,840,115.24
Contract assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets
Total current assets 3,936,028,114.73 3,936,028,114.73
Non-current assets:
Investments in debt
obligations
Available-for-sale financial
3,851,881.11 -3,851,881.11
assets
Investments in other debt
obligations
Held-to-maturity
investments
Long-term receivables
154
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Long-term equity
239,501,956.17 239,501,956.17
investments
Investments in other equity
3,851,881.11 3,851,881.11
instruments
Other non-current financial
assets
Investment property 317,313,917.65 317,313,917.65
Fixed assets 9,121,637.65 9,121,637.65
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid
778,392.57 778,392.57
expense
Deferred income tax assets 315,888,967.26 315,888,967.26
Other non-current assets 104,132,920.00 104,132,920.00
Total non-current assets 990,589,672.41 990,589,672.41
Total assets 4,926,617,787.14 4,926,617,787.14
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Financial liabilities at fair
value through profit or loss
Derivative financial
liabilities
Notes payable
Accounts payable 124,501,464.28 124,501,464.28
Advances from customers 75,895,087.75 75,895,087.75
Contract liabilities
Payroll payable 31,224,455.28 31,224,455.28
Taxes payable 1,402,388,742.76 1,402,388,742.76
Other payables 224,875,980.31 224,875,980.31
155
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Including: Interest
payable
Dividends
29,642.40 29,642.40
payable
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 1,858,885,730.38 1,858,885,730.38
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetu
al bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities
Total liabilities 1,858,885,730.38 1,858,885,730.38
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred
shares
Perpetu
al bonds
Capital reserves 92,326,467.62 92,326,467.62
156
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Less: Treasury stock
Other comprehensive
income
Specific reserve
Surplus reserves 298,912,759.52 298,912,759.52
Retained earnings 2,080,513,737.62 2,080,513,737.62
Total owners’ equity 3,067,732,056.76 3,067,732,056.76
Total liabilities and owners’
4,926,617,787.14 4,926,617,787.14
equity
Notes to the adjustments:
The Company starts to implement the Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedging and Accounting Standards for
Business Enterprises No.37-Presentation of Financial Instruments (hereinafter referred to the new standards
governing financial instruments) revised by the Ministry of Finance since 1 January 2019. As required by the
connection regulation for the old and new standards, the information of comparative period was not adjusted, and
the beginning retained earnings or other comprehensive income of the Reporting Period shall be retroactively
adjusted for the difference between the original standards and the new one when implemented on the first
execution date.
(4) Retroactive Adjustments to Comparative Data of Prior Years when Execution of any New Standards
Governing Financial Instruments or Leases since 2019
□ Applicable √ Not applicable
45. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1
January 2019; the data of the period-end refers to the financial statement data on 31 December 2019; the
Reporting Period refers to the year of 2019; the same period of last year refers to the year of 2018. The same to
the Company as the parent.
VI Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales of goods or provision of taxable
VAT [Note 1]
services
Applied to 7%, 1% separately according to
Urban maintenance and construction tax Turnover tax payable
the regional level
157
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Enterprise income tax Taxable income 25% [Note 2]
Added value generated from paid transfer
Four progressive levels with the tax rate
of the use right of state-owned lands and
VAT of land ranging from 30% to 60% of transferring
property right of above-ground buildings
real estate added value
and other attachments
Levied according to price: paid according
to 1.2% of the residual value of the real
Real estate tax estate’s original value after deducted 30%
at once; levied according to lease: paid
according to 12% of the rental income
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
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.
Shenzhen SZPRD Housing Assets Operation and Management
20%
Co., Ltd.
Shenzhen Guomao Catering Co., Ltd. 20%
Shenzhen Property Engineering and Construction Supervision
20%
Co., Ltd.
Shenzhen Julian Human Resources Development Co.,Ltd. 20%
Shenzhen Huazhengpeng Property Management Development
20%
Co., Ltd.
Shenzhen Jinhailian Property Management Co.,Ltd. 20%
Shenzhen Zhongtongda House Xiushan Service Co.,Ltd. 20%
Shenzhen Kangping Industry Co.,Ltd. 20%
Shenzhen Teacher Family Training Co., Ltd. 20%
Shenzhen Education Industry Co., Ltd. 20%
Shenzhen Yufa Industry Co., Ltd. 20%
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
[Note 2] According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the
encouraging category of the Guidance Catalogue of Industry Constructure Adjustment (Y2011), the western
158
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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.
applies to above policy.
According to the State Administration of Taxation Notice on the Implementation of Inclusive Tax Relief Policy for
Small and Micro Enterprises (Fiscal [2019] No.13), from 1 January 2019, to 31 December 2021, the portion of the
annual taxable income of small and micro enterprises that does not exceed RMB1 million shall be included in the
taxable income at a reduced rate of 25%, and the enterprise income tax shall be paid at a tax rate of 20%. If the
annual taxable income exceeds RMB1 million and does not exceed RMB3 million, it shall be included in the
taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at a tax rate of 20%. This
policy applies to 12 subsidiaries of our group from 2019 onwards, including Chongqing Aobo Elevator Co., Ltd.,
Shenzhen International Trade Center Catering Co., Ltd., etc.
3. Other
[Note 1] Taxable items and tax rate of the VAT of the Company and its subsidiaries are as follows:
Type of the revenue General rate Percentage charges of
Sales of house property 10% 5%
Rent of real estate 10% 5%
Property service 6% 3%
Catering service 6% 3%
Others 16% --
VII. Notes to Major Items in the Consolidated Financial Statements of the Company
1. Monetary Assets
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 130,048.49 184,219.12
Bank deposits 3,276,826,087.46 3,631,118,250.16
Other monetary assets 20,934,799.96 276,299,563.39
Total 3,297,890,935.91 3,907,602,032.67
Of which: the total amount deposited
54,480,940.07 52,976,296.80
overseas
The total amount with
restricted right of use for mortgage, pledge 12,545,702.44 26,574,774.78
or freeze
Note: please refer to the Note V 44 for details of the difference between the data of the period-beginning and the
ending balance of last year (31 December 2018).
Other notes:
159
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Other monetary assets were RMB20,934,799.96, among which, the cash deposits for guarantees of
RMB1,120,910.60, cash deposits for L/G of RMB49,020.00, frozen assets of bank’s account of RMB7,074,255.32,
bank deposits of RMB3,276,826,087.46 including RMB4,301,516.52 of interest of fixed time deposits withdrawn
at the end of the Reporting Period. The above was not recognized as cash and cash equivalents for restrictions on
use.
2. Held-for-trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
3. Derivative Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra Withdraw
Carrying Carrying
Proportio wal Proportio al
Amount Amount value Amount Amount value
n proportio n proportio
n n
Of which:
Of which:
Bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Bad debt provision withdrawn according to groups:
160
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes of the basis of recognizing the group:
If the bad debt provision for notes receivable was withdrawn in accordance with the general model of expected credit losses,
information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Bad debt provision withdrawn in the Reporting Period:
Unit: RMB
Increase/decrease
Category Beginning balance Reversed or Ending balance
Withdrawn Verified
collected
Of which, bad debt provision collected or reversed with significant amount:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Amount
(4) 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
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contract
or Agreement
Unit: RMB
Amount of the notes transferred to accounts receivable at the
Item
period-end
Other notes:
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
161
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Item Amount
Of which, verification of significant notes receivable:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
Notes of the verification of notes receivable:
5. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra Withdraw
Carrying Carrying
Proportio wal Proportio al
Amount Amount value Amount Amount value
n proportio n proportio
n n
Accounts receivable
106,958, 105,293, 1,665,006 106,653,2 101,925,4 4,727,793.0
with single bad debt 31.79% 98.44% 40.50% 95.57%
370.47 364.00 .47 10.92 17.89 3
provision accrued
Of which:
Accounts receivable 158,966,4 59.85 7,796,282 4.90 151,170,21
with bad debt 229,476, 14,217,8 215,258,6 96.11 .37 3.74
68.21% 6.20%
provision withdrawn 481.62 24.84 56.78
according to groups
Of which:
336,434, 119,511, 216,923,6 265,619,7 100.00 109,721,7 41.31 155,898,00
Total 100.00% 35.52%
852.09 188.84 63.25 07.03 00.26 6.77
Single bad debt provision accrued: 105,293,364.00
Unit: RMB
Ending balance
Name Withdrawal
Carrying amount Bad debt provision Withdrawal reason
proportion
Shenzhen Jiyong Properties & Involved in lawsuit and no
93,811,328.05 93,811,328.05 100.00%
Resources Development Company executable property
162
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Uncollectible for a long
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2,836,561.00 100.00%
period
Poor operating conditions,
Lunan Industry Corporation 2,818,284.84 2,818,284.84 100.00% uncollectible for a long
period
Those with insignificant single amount
Uncollectible for a long
for which bad debt provision separately 7,492,196.58 5,827,190.11 77.78%
period
accrued
Total 106,958,370.47 105,293,364.00 -- --
Single bad debt provision accrued:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Bad debt provision withdrawn according to groups: 14,217,824.84
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 201,616,202.70 6,048,650.44 3.00%
1 to 2 years 15,256,204.99 1,525,620.50 10.00%
2 to 3 years 7,883,460.64 2,365,038.19 30.00%
3 to 4 years 662,992.00 331,496.00 50.00%
4 to 5 years 553,007.94 442,406.36 80.00%
Over 5 years 3,504,613.35 3,504,613.35 100.00%
Total 229,476,481.62 14,217,824.84 --
Notes of the basis of recognizing the group:
Bad debt provision withdrawn according to groups:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes of the basis of recognizing the group:
If the bad debt provision for accounts receivable was withdrawn in accordance with the general model of expected credit losses,
information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 201,616,202.70
163
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
1 to 2 years 15,256,204.99
2 to 3 years 7,883,460.64
Over 3 years 111,678,983.76
3 to 4 years 662,992.00
4 to 5 years 553,007.94
Over 5 years 110,462,983.82
Total 336,434,852.09
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Bad debt provision withdrawn for the Reporting Period:
Unit: RMB
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified
collected
Bad debt provision
101,925,417.89 3,367,946.11 105,293,364.00
separately accrued
Bad debt provision
withdrawn according to 7,796,282.37 6,449,091.52 27,549.05 14,217,824.84
groups
Total 109,721,700.26 9,817,037.63 27,549.05 119,511,188.84
Of which, bad debt provision reversed or collected with significant amount:
Unit: RMB
Name of the entity Amount reversed or collected Method
(3) Accounts Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount verified
Of which, verification of significant accounts receivable:
Unit: RMB
Whether occurred
Reason for because of
Name of the entity Nature Amount verified Procedure
verification related-party
transactions
Notes of the verification of accounts receivable:
164
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Ending balance of accounts % of total ending balance of accounts Ending balance of bad
Name of units
receivable receivable debt provision
Shenzhen Jiyong Properties &
93,811,328.05 27.88% 93,811,328.05
Resources Development Company
Shenzhen Bay Technology
93,790,305.70 27.88% 2,813,709.17
Development Co., Ltd.
Alibaba Internet Technology Co., Ltd 11,395,058.57 3.39% 341,851.76
Alibaba Cloud Computing Ltd. 9,401,805.01 2.79% 282,054.15
Tao Bao(China)Software Co.,Ltd. 6,297,347.40 1.87% 188,920.42
Total 214,695,844.73 63.81%
(5) Derecogniziton of Accounts Receivable due to the Transfer of Financial Assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Other notes:
6. Accounts Receivable Financing
Unit: RMB
Item Ending balance Beginning balance
Increase or decrease of accounts receivable financing and changes in fair value thereof
□ Applicable √ Not applicable
If the depreciation reserve for accounts receivable financing was withdrawn in accordance with the general model of expected credit
losses, the information related to depreciation reserve shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Other notes:
7. Prepayments
(1) List by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 36,985,187.03 53.18% 30,184,640.40 50.69%
165
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
1 to 2 years 3,797,085.70 5.46% 8,360,467.04 14.04%
2 to 3 years 8,360,467.04 12.36% 20,009,974.40 33.60%
Over 3 years 20,404,034.40 29.00% 991,575.51 1.67%
Total 69,546,774.17 -- 59,546,657.35 --
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 are the various prepaid taxes, like land VAT, urban construction tax and educational surtax of
prepayment of real estate projects still not reaching the recognition of income conditions according to tax law; the relevant
procedures of conscience money including land price transaction fees and municipal supporting facilities fee hasn’t been completed
yet.
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Name of units Carrying amount As % of the total ending balance of the
prepayments (%)
Deferred tax-land VAT 36,435,166.41 51.95
Financial Committee of Shenzhen 19,509,471.00 27.81
Jiangsu Hanjian Group 8,000,000.00 11.41
State Grid Chongqing Electric Power Co., Ltd 475,000.00 0.68
Property management center of Tongshan District 304,992.00 0.43
in Xuzhou
Total 64,724,629.41 92.28
Other notes:
The total amount of top 5 of the ending balance of the prepayments was RMB64,724,629.41, accounting for
92.28% of the total ending balance of the prepayments.
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 917,981,165.74 66,982,376.50
Total 917,981,165.74 66,982,376.50
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
166
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and the
judgment basis
Other notes:
3) Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Category of Dividends Receivable
Unit: RMB
Item (or investees) Ending balance Beginning balance
2) Significant Dividends Receivable Aged over 1 Year
Unit: RMB
Whether occurred
Item (or investees) Ending balance Aging Reason impairment and the
judgment basis
3) Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Margin 13,439,816.18 15,537,472.90
Cash deposit 30,202,817.84 5,162,622.32
Petty cash 1,853,585.88 1,322,262.16
Payments on behalf 5,218,908.47 6,174,369.06
167
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
External intercourse funds 915,411,567.13 77,833,645.12
Other 9,087,762.19 9,504,197.22
Total 975,214,457.69 115,534,568.78
2) Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Bad debt provision Expected credit loss Total
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
20,576,560.35 27,975,631.93 48,552,192.28
2019
Balance of 1 January
2019 in the Current —— —— —— ——
Period
--Reverse to First Stage
Withdrawal of the
9,315,041.60 9,315,041.60
Current Period
Reversal of the Current
633,941.93 633,941.93
Period
Balance of 31 December
29,257,660.02 27,975,631.93 57,233,291.95
2019
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 909,014,689.39
1 to 2 years 5,209,826.38
2 to 3 years 2,747,772.38
Over 3 years 58,242,169.54
3 to 4 years 3,983,260.15
4 to 5 years 6,351,427.61
Over 5 years 47,907,481.78
Total 975,214,457.69
168
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Beginning Changes
Category Ending balance
balance Withdrawal Recovery or reversal Write-off
Individual withdrawal
27,975,631.93 27,975,631.93
of bad debt provision
Withdrawal of bad
debt provision by 20,576,560.35 9,315,041.60 633,941.93 29,257,660.02
groups
Total 48,552,192.28 9,315,041.60 633,941.93 57,233,291.95
Individual withdrawal of bad debt provision of other receivables at the period-end:
Name of the entity Carrying amount Bad debt provision Withdrawal Withdrawal reason
proportion (%）
Shanghai Yutong Real Estate 5,676,000.00 5,676,000.00 100.00 Difficult to recover the
Development Co., Ltd. lawsuit judgment
Hong Kong Yueheng Development Co., 3,271,837.78 3,271,837.78 100.00 Unrecoverable for a long
Ltd. term
Dameisha tourism center 2,576,445.69 2,576,445.69 100.00 Projects construction
ceased
Elevated train project 2,542,332.43 2,542,332.43 100.00 Projects construction
ceased
Other receivables with insignificant single 13,909,016.03 13,909,016.03 100.00 Unrecoverable for a long
amount for which bad debt provision term
separately accrued
Subtotal 27,975,631.93 27,975,631.93 100.00
Of which bad debt provision revered or recovered with significant amount:
Unit: RMB
Name of the entity Reversed or collected amount Method
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount
Of which: significant actual verification of other receivables:
Unit: RMB
169
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
Notes of verification of other receivables:
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to ending Ending balance
Name of the entity Nature Ending balance Aging balance of other of bad debt
receivables% provision
Shenzhen Xinhai Holding External intercourse
551,499,990.18 Within 1 year 56.55%
Co., Ltd. funds
Shenzhen Xinhai Rongyao
External intercourse
Real Estate Development 330,472,932.33 Within 1 year 33.89%
funds
Co., Ltd.
Shanghai Yutong Real estate External intercourse
5,676,000.00 Over 5 years 0.58% 5,676,000.00
development Co., Ltd. funds
Shenzhen Banglingstock 4 to 5 years and
Margin 5,031,980.00 0.52% 4,031,980.00
Cooperative Company over 5 years
Hong Kong Yueheng External intercourse
3,271,837.78 Over 5 years 0.34% 3,271,837.78
Development Co., Ltd. funds
Total -- 895,952,740.29 -- 91.88% 12,979,817.78
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Aging at period-end
subsidies time, amount and basis
7)Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Other notes:
9. Inventories
Whether the Company has already executed the new income standards
□ Yes √ No
170
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(1) Category of Inventories
The Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No.3-Listed Companies Engaged in Real Estate Industry
Classified by nature
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
reserves of reserves of
inventory or inventory or
Item
Carrying amount depreciation Carrying value Carrying amount depreciation Carrying value
reserves of reserves of
contract contract
performance cost performance cost
R&D expenses 4,528,429,076.71 6,648,404.13 4,521,780,672.58 953,871,537.48 6,648,404.13 947,223,133.35
R&D of products 390,363,836.20 390,363,836.20 448,118,524.87 1,611,969.40 446,506,555.47
Raw materials 1,743,790.82 484,117.43 1,259,673.39 1,309,072.68 489,471.79 819,600.89
Inventory good 2,132,162.67 2,094,300.39 37,862.28 2,148,716.42 859,790.85 1,288,925.57
Low-value
consumption 68,832.21 68,832.21 316,387.76 316,387.76
goods
Total 4,922,737,698.61 9,226,821.95 4,913,510,876.66 1,405,764,239.21 9,609,636.17 1,396,154,603.04
Disclose main items of R&D expenses and interest capitalization in the following format:
Unit: RMB
Transferr
Increase Of which:
ed to Accumula
Estimated Estimated Other (Costs of amount of
Date of developin tive
Name of date of total Beginnin decrease developm Ending capitalize Capital
commenc g amount of
project completio investmen g balance for this ent) for balance d interests resources
ement properties capitalize
n t period this for this
for this d interests
period period
period
Guanlan
6,433,000 3,004,198
Bangling Bank loan
,000.00 ,155.43
project
SZPRD-B
anshan 15 March 11 March 110,750,0 71,739,68 32,155,46 103,895,1
Other
Yujing 2019 2020 00.00 2.14 5.82 47.96
Phase II
171
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
SZPRD-
Golden
Collar’s 1 March 1 July 1,595,600 618,616,8 479,743,1 440,892,1 579,765,8 2,670,836
38,071.34 Other
Resort 2014 2019 ,000.00 46.23 29.07 37.39 54.55 .07
–Building
A&CA
SZPRD-F
1
uchang 1 June 969,290,0 6,851,663 574,565,3 581,416,9
December Other
Garden 2020 00.00 .65 07.68 71.33
2018
Phase II
Yupin 213,012,9 2,489,601 215,502,5
Other
Luanshan 10.44 .98 12.42
Hainan
6,648,404 6,648,404
Qiongsha Other
.13 .13
n Land
Shenhui 37,002,03 37,002,03
Other
Garden 0.89 0.89
9,108,640 953,871,5 479,743,1 1,050,102 4,528,429 2,670,836
Total -- -- 38,071.34 --
,000.00 37.48 29.07 ,512.87 ,076.71 .07
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Accumulative Of which: amount
Name of Date of Beginning amount of of capitalized
Increase Decrease Ending balance
project completion balance capitalized interests for this
interests period
SZPRD-La
ngqiao 1 December
11,517,196.11 11,517,196.11
Internationa 2012
l
SZPRD-Hu
pan Yujing 1 June 2015 73,821,561.41 9,763,188.71 64,058,372.70 10,446,911.43
Phase I
SZPRD-Qia
nhai 1 January
51,179,063.15 51,179,063.15 14,633,486.15
Gangwan 2016
Garden
SZPRD-Ba
nshan
67,659,187.47 38,266,209.74 29,392,977.73 27,205,315.95
Yujing
Phase I
172
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
SZPRD-So
nghu 1 July 2017 68,099,027.29 41,000,916.17 27,098,111.12 30,539,392.65
Langyuan
SZPRD-Hu
11 January 165,839,369.6
pan Yujing 49,456.79 75,829,802.11 90,059,024.33
2017 5
Phase II
SZPRD-Go
lden
Collar’s 1 December 479,743,129.0 321,508,094.6
158,235,034.42 1,206,675.51 17,200.51
Resort 2019 7 5
–Building
B
Internationa
l Trade 1 December
4,839,083.10 4,839,083.10
Center 1995
Plaza
Huangyuyu
1 June 2001 790,140.58 790,140.58
an A Area
Podium
1
Building of
November 645,532.65 645,532.65
Fuchang
1999
Building
Other
3,728,363.46 3,728,363.46 83,077,702.96
projects
448,118,524.8 479,792,585.8 537,547,274.5
Total -- 390,363,836.20 167,109,484.65 17,200.51
7 6 3
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
“Temporary Housing”:
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
(2)Falling Price Reserves of Inventory andDepreciation Reserves of Contract Performance Cost
Disclosure of falling provision withdrawal of inventory in the following format:
Classified by nature:
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance Note
balance Withdrawal Other Other
write-off
173
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
6,648,404.
R&D costs 6,648,404.13
13
1,611,969.
R&D products 1,611,969.40
40
Raw materials 489,471.79 5,354.36 484,117.43
Inventory good 859,790.85 1,234,509.54 2,094,300.39
9,609,636.
Total 1,234,509.54 1,617,323.76 9,226,821.95 --
17
Classification by main project:
Unit: RMB
Increase Decrease
Beginning
Name of project Reversal or Ending balance Notes
balance Withdrawal Other Other
write-off
Hainan 6,648,404.
6,648,404.13
Qiongshan Land 13
SZPRD-Banshan 1,611,969.
1,611,969.40
Yujing Phase I 40
8,260,373.
Total 1,611,969.40 6,648,404.13 --
53
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
The details of ending balance of the inventory included a total amount of the capitalized borrowings as follows:
Item Period-begin Reporting Period Carry-over in Current Period-end
Period
SZPRD-Banshan Yujing 2,285,133.71 1,544,959.74 740,173.97
Phase I
SZPRD-Qianhai Gangwan 1,069,665.60 1,069,665.60
Garden
SZPRD-Songhu Langyuan 1,116,092.96 1,072,373.39 43,719.56
SZPRD-Langqiao 2,971,986.54 2,971,986.54
International
SZPRD-Hupan Yujing 2,140,112.62 515,546.13 1,624,566.49
Phase I
SZPRD-Golden Collar’s 3,882,239.73 55,271.85 840,158.72 3,097,352.86
Resort
Subtotal 13,465,231.16 55,271.85 5,042,703.58 8,477,799.43
174
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(4) Inventory Limit
Disclosed by project
Unit: RMB
Name of project Beginning balance Ending balance Reason for the Limit
(5) Category of Inventory
The Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No.3-Listed Companies Engaged in Real Estate Industry
Classified by nature:
Unit: RMB
Ending balance Beginning balance
Item Falling price Falling price
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
R&D costs 4,528,429,076.71 6,648,404.13 4,521,780,672.58 953,871,537.48 6,648,404.13 947,223,133.35
R&D products 390,363,836.20 390,363,836.20 448,118,524.87 1,611,969.40 446,506,555.47
Raw materials 1,743,790.82 484,117.43 1,259,673.39 1,309,072.68 489,471.79 819,600.89
Inventory goods 2,132,162.67 2,094,300.39 37,862.28 2,148,716.42 859,790.85 1,288,925.57
Low-value
consumption 68,832.21 68,832.21 316,387.76 316,387.76
goods
Total 4,922,737,698.61 9,226,821.95 4,913,510,876.66 1,405,764,239.21 9,609,636.17 1,396,154,603.04
Disclose main items of R&D expenses and interest capitalization in the following format:
Unit: RMB
Transferr
Increase Of which:
ed to Accumula
Estimated Estimated Other (Costs of amount of
Date of developin tive
Name of date of total Beginnin decrease developm Ending capitalize Capital
commenc g amount of
project completio investmen g balance for this ent) for balance d interests resources
ement properties capitalize
n t period this for this
for this d interests
period period
period
Guanlan
6,433,000 3,004,198
Bangling Bank loan
,000.00 ,155.43
project
SZPRD-B
anshanyuj 15 March 11 March 110,750,0 71,739,68 32,155,46 103,895,1
Other
ing Phase 2019 2020 00.00 2.14 5.82 47.96
II
175
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
SZPRD-
Golden
Collar’s 1 March 1 July 1,595,600 618,616,8 479,743,1 440,892,1 579,765,8 2,670,836
38,071.34 Other
Resort 2014 2019 ,000.00 46.23 29.07 37.39 54.55 .07
–Building
A&C
SZPRD-F
1
uchang 1 June 969,290,0 6,851,663 574,565,3 581,416,9
December Other
Garden 2020 00.00 .65 07.68 71.33
2018
Phase II
Yupin 213,012,9 2,489,601 215,502,5
Other
Luanshan 10.44 .98 12.42
Hainan
6,648,404 6,648,404
Qiongsha Other
.13 .13
n Land
Shenhui 37,002,03 37,002,03
Other
Garden 0.89 0.89
9,108,640 953,871,5 479,743,1 1,050,102 4,528,429 2,670,836
Total -- -- 38,071.34 --
,000.00 37.48 29.07 ,512.87 ,076.71 .07
Disclosing main items of “Developing properties” in the following format:
Unit: RMB
Accumulative Of which: amount
Name of Date of Beginning amount of of capitalized
Increase Decrease Ending balance
project completion balance capitalized interests for this
interests period
SZPRD-La
ngqiao 1 February
11,517,196.11 11,517,196.11
Internationa 2012
l
SZPRD-Hu
pan Yujing 1 June 2015 73,821,561.41 9,763,188.71 64,058,372.70 10,446,911.43
Phase I
SZPRD-Qia
nhai 1 January
51,179,063.15 51,179,063.15 14,633,486.15
Gangwan 2016
Garden
SZPRD-Ba
nshan
67,659,187.47 38,266,209.74 29,392,977.73 27,205,315.95
Yujing
Phase I
176
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
SZPRD-So
nghu 1 July 2017 68,099,027.29 41,000,916.17 27,098,111.12 30,539,392.65
Langyuan
SZPRD-Hu 1
165,839,369.6
pan Yujing November 49,456.79 75,829,802.11 90,059,024.33
5
Phase II 2017
SZPRD-Go
lden
1 February 479,743,129.0 321,508,094.6
Collar’s 158,235,034.42 1,206,675.51 17,200.51
2019 7 5
Resort-Buil
ding B
Internationa
l Trade 1 December
4,839,083.10 4,839,083.10
Center 1995
Plaza
Huangyuyu
1 June 2001 790,140.58 790,140.58
an A Area
Podium
1
Building of
November 645,532.65 645,532.65
Fuchang
1999
Building
Other
3,728,363.46 3,728,363.46 83,077,702.96
projects
448,118,524.8 479,792,585.8 537,547,274.5
Total -- 390,363,836.20 167,109,484.65 17,200.51
7 6 3
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
“Temporary Housing”:
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
(6) Falling Price Reserves of Inventories
Disclosure of falling provision withdrawal of inventory in the following format:
Classified by nature:
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance Notes
balance Withdrawal Other Other
write-off
6,648,404.
R&D costs 6,648,404.13
13
177
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
1,611,969.
R&D products 1,611,969.40
40
Raw materials 489,471.79 5,354.36 484,117.43
Inventory goods 859,790.85 1,234,509.54 2,094,300.39
9,609,636.
Total 1,234,509.54 1,617,323.76 9,226,821.95 --
17
Classification by main project:
Unit: RMB
Increase Decrease
Beginning
Name of project Reversal or Ending balance Notes
balance Withdrawal Other Other
write-off
Hainan 6,648,404.
6,648,404.13
Qiongshan Land 13
SZPRD-Banshan 1,611,969.
1,611,969.40
Yujing Phase I 40
8,260,373.
Total 1,611,969.40 6,648,404.13 --
53
(7) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
The details of ending balance of the inventory included a total amount of the capitalized borrowings as follows:
Item Period-begin Reporting Period Carry-over in current Period-end
period
SZPRD-Banshan Yujing 2,285,133.71 1,544,959.74 740,173.97
Phase I
SZPRD-Qianhai 1,069,665.60 1,069,665.60
Gangwan Garden
SZPRD-Songhu 1,116,092.96 1,072,373.39 43,719.56
Langyuan
SZPRD-Langqiao 2,971,986.54 2,971,986.54
International
SZPRD-Hupan Yujing 2,140,112.62 515,546.13 1,624,566.49
Phase I
SZPRD-Golden Collar’s 3,882,239.73 55,271.85 840,158.72 3,097,352.86
Resort
Subtotal 13,465,231.16 55,271.85 5,042,703.58 8,477,799.43
(8) Inventory Limit
Disclosed by project
Unit: RMB
178
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Name of project Beginning balance Ending balance Reason for the Limit
(9) Completed but Unsettled Assets Generated from Construction Contacts at the Period-end
Unit:
Item Amount
Other notes:
(10) Categoryof Inventory
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
reserves of reserves of
inventory or inventory or
Item
Carrying amount depreciation Carrying value Carrying amount depreciation Carrying value
reserves of reserves of
contract contract
performance cost performance cost
Total 4,913,510,876.66 1,396,154,603.04
(11)Falling Price Reserves of Inventory andDepreciation Reserves of Contract Performance Cost
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Other Other
write-off
(12) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
(13) Notes to Amortized Amount of Contract Performance Cost
(14) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Item Falling price Falling price
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Total 4,913,510,876.66 1,396,154,603.04
179
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(15) Falling Price Reserves of Inventory
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Other Other
write-off
(16) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
(17) Completed but Unsettled Assets Generated from Construction Contacts at the Period-end
Unit: RMB
Item Amount
Other notes:
10. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Falling price Carrying Falling price
Carrying value Carrying value
amount reserves amount reserves
Amount of significant changes in carrying value of contract assets in the Reporting Period and reasons thereof:
Unit: RMB
Item Amount changed Reason
If the bad debt provision for contract assets in accordance with the general model of expected credit losses, the information related to
the bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Withdrawal of impairment provision for contract assets in the Reporting Period
Unit: RMB
Item Withdrawn Reversed Write-off/verified Reason
Other notes:
11. Held-for-sale Assets
Unit: RMB
Ending carrying Impairment Ending carrying Estimated Estimated
Item Fair value
amount provision value disposal expense disposal time
Other notes:
180
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
12. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Significant investments in debt obligations /other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Actual Maturity Actual Maturity
Par value Coupon rate Par value Coupon rate
interest rate date interest rate date
Other notes:
13. Other Current Assets
Whether the Company has already executed the new income standards
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 34,043,807.16 16,981,072.00
Deducted input tax 8,191,279.34 252,363.58
Entrusted loan-business tax 248,037.77
Prepaid income tax 17,461.67
Total 42,500,585.94 17,233,435.58
Other notes:
14. Investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Significant investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Actual Maturity Actual Maturity
Par value Coupon rate Par value Coupon rate
interest rate date interest rate date
Withdrawal of impairment provision
Unit: RMB
Bad debt provision First stage Second stage Third stage Total
181
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Expected loss in the Expected loss in the
Expected credit loss
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
2019 in the Current —— —— —— ——
Period
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
Other notes:
15. Other Investments in Debt Obligations
Unit: RMB
Accumulated
Change in provision for
fair value in Accumulated losses
Beginning Accrued Ending
Item the Costs changes in recognized in Notes
balance interest balance
Reporting fair value other
Period comprehensi
ve income
Significant other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Actual Maturity Actual Maturity
Par value Coupon rate Par value Coupon rate
interest rate date interest rate date
Withdrawal of impairment provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Bad debt provision Expected credit loss Total
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
2019 in the Current —— —— —— ——
Period
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
Other notes:
182
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
16. Long-term Receivables
(1) List of Long-term Receivables
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
Impairment of bad debt provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Bad debt provision Expected credit loss Total
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
2019 in the Current —— —— —— ——
Period
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Long-term Receivables
Other notes
17. Long-term Equity Investments
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Beginnin Cash Withdraw Ending balance
Additiona losses nt of
g balance Reduced Changes bonus or al of balance of
Investees l recognize other
(carrying investmen of other profits depreciati Other (carrying depreciati
investmen d under comprehe
value) t equity announce on value) on
t the equity nsive
d to issue reserves reserves
method income
I. Joint ventures
183
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen
Real
Estate
34,103,84 4,510,931 38,614,77
Jifa
0.40 .26 1.66
Warehous
ing Co.,
Ltd.
Shenzhen
Tian’an
Internatio
nal
5,895,442 565,908.2 6,461,351
Building
.84 2 .06
Property
Managem
ent Co.,
Ltd.
39,999,28 5,076,839 45,076,12
Subtotal
3.24 .48 2.72
II. Associated enterprises
Shenzhen
Wufang
18,983,61 18,983,61 18,983,61
Ceramics
4.14 4.14 4.14
Industrial
Co., Ltd.
Shenzhen
Kangfu
165,000.0 165,000.0 165,000.0
Health
0 0 0
Products
Co., Ltd.
Shenzhen
Xinghao
756,670.6 756,670.6 756,670.6
Imitation
8 8 8
Porcelain
Co., Ltd.
184
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen
Social
Welfare
326,693.2 326,693.2 326,693.2
Company
4 4 4
Fuda
Electronic
s Factory
Shenzhen
Fulong
Industry 1,684,350 1,684,350 1,684,350
Develop .00 .00 .00
ment
Co. , Ltd.
Haonianh 2,733,570 2,733,570 2,733,570
ua Hotel .05 .05 .05
Shenzhen
Education
Fund 500,000.0 500,000.0 500,000.0
Longhua 0 0 0
Investme
nt
Shenzhen
Kangle
Sports 540,060.0 540,060.0 540,060.0
Club 0 0 0
Huangfa
Branch
Dankeng
village
plants of 1,168,973 1,168,973 1,168,973
Fumin in .20 .20 .20
Guanlan
town
Shenzhen
Bull
500,000.0 500,000.0 500,000.0
Entertain
0 0 0
ment
Co. , Ltd.
185
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen
Lianhua
Caitian
1,475,465 1,475,465 1,475,465
Property
.91 .91 .91
Managem
ent Co.,
Ltd.
Shenzhen
Yangyuan 1,030,000 1,030,000 1,030,000
Industrial .00 .00 .00
Co., Ltd.
Jiakaifeng
Co., Ltd. 600,000.0 600,000.0 600,000.0
Bao’an 0 0 0
Company
Guiyuan 350,000.0 350,000.0 350,000.0
Garage 0 0 0
Shenzhen
Wuweibe
500,000.0 500,000.0 500,000.0
n Roof
0 0 0
Greening
Co., Ltd.
Shenzhen
Yuanping
Plastic 240,000.0 240,000.0 240,000.0
Steel 0 0 0
Doors
Co., Ltd.
Shenzhen
Youfang 100,000.0 100,000.0 100,000.0
Printing 0 0 0
Co., Ltd.
Shenzhen
Lusheng
Industrial 100,000.0 100,000.0 100,000.0
Develop 0 0 0
ment Co.,
Ltd.
31,754,39 31,754,39 31,754,39
Subtotal
7.22 7.22 7.22
186
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
71,753,68 5,076,839 76,830,51 31,754,39
Total
0.46 .48 9.94 7.22
Other notes
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co., Ltd. 1,580,475.86 3,621,381.11
Total 1,580,475.86 3,621,381.11
Disclosure of non-trading equity instrument investment
Unit: RMB
Reason for
assigning to
Amount of other Reason of other
measure by fair
comprehensive comprehensive
Dividend income Accumulative Accumulative value and the
Name income income
recognized gains losses changes be
transferred to transferred to
included in other
retained earnings retained earnings
comprehensive
income
Not aiming at
Gintian Industry
2,051,268.24 gaining earnings
(Group) Co., Ltd.
by selling equity
Other notes:
Note: Refer to Note V-44 (3) of the financial statements for the difference between beginning balance and ending balance of prior
period (31 December 2018) for details.
19. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
20. 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
187
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
I. Original carrying value
1. Beginning balance 1,065,043,700.41 30,594,387.05 1,095,638,087.46
2.Increased amount of
72,696,535.33 72,696,535.33
the period
(1) Outsourcing 21,830,409.39 21,830,409.39
(2)Transfer from
inventory/fixed assets/ 50,595,536.48 50,595,536.48
construction in progress
(3)Enterprise
combination increase
(4) Foreign currency
270,589.46 270,589.46
financial statements
3. Decreased amount of
301,963,542.85 331,950.00 302,295,492.85
the period
(1) Disposal
(2) Other transfer
(3) Assets transfer of
enterprise combination 301,963,542.85 331,950.00 302,295,492.85
under the same control
4. Ending balance 835,776,692.89 30,262,437.05 866,039,129.94
II.Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 442,086,226.27 14,384,651.71 456,470,877.98
2.Increased amount of
36,730,933.12 699,062.38 37,429,995.50
the period
(1)Withdrawal or
36,730,933.12 699,062.38 37,429,995.50
amortization
3. Decreased amount of
130,916,801.63 268,370.52 131,185,172.15
the period
(1) Disposal
(2) Other transfer
(3) Assets transfer of
enterprise combination 130,916,801.63 268,370.52 131,185,172.15
under the same control
4. Ending balance 347,900,357.76 14,815,343.57 362,715,701.33
188
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
III. Depreciation reserves
1. Beginning balance
2.Increased amount of
the period
(1) Withdrawal
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 487,876,335.13 15,447,093.48 503,323,428.61
2.Beginning carrying
622,957,474.14 16,209,735.34 639,167,209.48
value
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable √ Not applicable
The Company needs to comply with the disclosure requirements of Guideline No. 3 of the Shenzhen Stock Exchange on the
Industrial Information Disclosure about Listed Companies’ Engagement in Real Estate Business
Investment properties measured in fair value by project disclosure:
Unit: RMB
Lease
Geograph Date of income Reason for fair
Building Beginning Ending fair Range of fair
Name of project ical completio during this value changes and
area fair value value value changes
location n Reporting report index
Period
Whether the Company has new investment properties in construction period measured in fair value
□ Yes √ No
Whether the Company has new investment properties measured in fair value
□ Yes √ No
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
189
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Replaced from the construction of
02-01 plot of Statutory plan in Baolong
9,328,459.26 Xiamen-Shenzhen Railway, and hasn’t
East Area
exchanged for the new certification
Obtained after the success in the last
Meilin land 3,885,469.40 instance in 2017, relevant certifications of
property are in procedure.
The house is used for property
management, once occupied by the third
507 units, Block No. 6, Maguling 32,744.04 party, a property management company,
now has been recovered, but hasn’t
handled the warrant yet.
Subtotal 13,246,672.70
Other notes
Refer to Note XII-VIII (2) for decrease of assets transfer of business combination under the same control in the current period.
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 93,557,782.83 102,516,975.36
Total 93,557,782.83 102,516,975.36
(1) List of Fixed Assets
Unit: RMB
Houses and Decoration of the Machinery Transportation
Item Other equipment Total
buildings fixed assets equipment equipment
I. Original
carrying value
1. Beginning
243,372,650.59 10,605,513.07 3,056,524.06 14,618,740.14 25,651,572.91 297,305,000.77
balance
2. Increased
amount of the 17,655,696.05 17,455,453.97 1,395,789.21 6,740,730.08 43,247,669.31
period
(1) Purchase 17,521,455.70 17,455,453.97 1,395,789.21 6,292,929.89 42,665,628.77
(2) Transfer from
construction in 240,198.00 240,198.00
progress
190
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(3) Enterprise
combination 207,602.19 207,602.19
increase
(4) Influence of
the translation of
foreign
134,240.35 134,240.35
currency-denomi
nated financial
statements
3. Decreased
amount of the 99,355,639.74 4,955,320.50 2,850,777.06 1,891,093.75 5,127,055.35 114,179,886.40
period
(1) Disposal or
4,388,761.70 1,891,093.75 3,716,782.65 9,996,638.10
scrap
(2) Assets transfer
of enterprise
combination 99,355,639.74 566,558.80 2,850,777.06 1,410,272.70 104,183,248.30
under the same
control
4. Ending balance 161,336,884.91 23,105,646.54 205,747.00 14,123,435.60 27,601,069.63 226,372,783.68
II. Accumulative
depreciation
1. Beginning
156,651,454.95 7,616,459.58 1,741,447.97 9,971,905.81 18,731,039.94 194,712,308.25
balance
2. Increased
amount of the 6,255,103.15 1,683,304.96 2,549.40 1,574,401.63 2,275,624.17 10,975,767.84
period
(1) Withdrawal 6,255,103.15 1,683,304.96 2,549.40 1,574,401.63 2,151,303.51 10,851,447.18
(2) Enterprise
combination 124,320.66 124,320.66
increase
3. Decreased
amount of the 61,248,743.91 4,850,158.86 1,741,447.97 1,848,384.85 4,075,272.28 73,764,007.87
period
(1) Disposal or
4,283,600.06 1,848,384.85 3,257,094.38 9,389,079.29
scrap
191
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(2) Assets transfer
of enterprise
combination 61,248,743.91 566,558.80 1,741,447.97 818,177.90 64,374,928.58
under the same
control
4. Ending balance 101,657,814.19 4,449,605.68 2,549.40 9,697,922.59 16,931,391.83 132,739,283.69
III. Depreciation
reserves
1. Beginning
75,717.16 75,717.16
balance
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal or
scrap
4. Ending balance 75,717.16 75,717.16
IV. Carrying
value
1. Ending
59,679,070.72 18,656,040.86 203,197.60 4,425,513.01 10,593,960.64 93,557,782.83
carrying value
2. Beginning
86,385,373.65 2,989,053.49 1,315,076.09 4,646,834.33 7,180,637.80 102,516,975.36
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulative Depreciation
Item Carrying value Note
value depreciation reserves
(3) Fixed Assets Leased in by Financing Lease
Unit: RMB
192
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Accumulative
Item Original carrying value Depreciation reserves 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
Property right disputes before, now has
Room 406, 2 units, Hulunbuir Guangxia
2,952,876.22 won a lawsuit with unaccomplished
Digital Building
certification of property.
The office building will be removed due to
the project adjustment and a high-rise
office building will be established nearby
Room 401, 402, Sanxiang Business the present address. The existing property
883,928.42
Building Office Building shall be replaced after the completion of
the new office building. Thus, the
certification of the property is failed to
transact.
Subtotal 3,836,804.64
Other notes
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
(1) List of Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
193
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
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 Depreciation Reserves for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Other notes
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Depreciation Carrying Depreciation
Carrying amount Carrying value Carrying value
reserves amount reserves
Other notes:
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□ Applicable √ Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□ Applicable √ Not applicable
194
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-to-use Assets
Unit: RMB
Item Total
Other notes:
26. 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 784,922.02 784,922.02
2. Increased amount
449,465.64 449,465.64
of the period
(1) Purchase 436,315.64 436,315.64
(2) Internal R&D
(3) Business
13,150.00 13,150.00
combination increase
3. Decreased amount
of the period
(1) Disposal
4. Ending balance 1,234,387.66 1,234,387.66
II. Accumulated
amortization
1. Beginning balance 329,621.64 329,621.64
2. Increased amount
204,396.36 204,396.36
of the period
(1) Withdrawal 204,396.36 204,396.36
195
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3. Decreased amount
of the period
(1) Disposal 534,018.00 534,018.00
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
700,369.66 700,369.66
value
2. Beginning
455,300.38 455,300.38
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:
27. R&D Expense
Unit: RMB
Increase Decrease
Beginning Recognized Ending
Item Internal R&D Transfer to
balance Other as intangible balance
expense profit or loss
assets
196
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Total
Other notes
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the Increase Decrease
invested units or Beginning Formed by
Ending balance
events generating balance enterprise Disposal
goodwill combination
Total
(2) Depreciation Reserves of Goodwill
Unit: RMB
Name of the Increase Decrease
invested units or Beginning
Ending balance
events generating balance Withdrawal Disposal
goodwill
Total
Information on the assets group or combination of assets groups which include goodwill
Notes of the testing process of goodwill impairment, key parameters (such as growth rate of the forecast period, growth rate of stable
period, rate of profit, discount rate, forecast period and so on for prediction of future present value of cash flows) and the recognition
method of goodwill impairment losses:
Influence of goodwill impairment testing
Other notes
29. Long-term Prepaid Expense
Unit: RMB
Amortization Other decreased
Item Beginning balance Increased amount Ending balance
amount of the period amount
Rental fees 591,838.00 1,008,576.00 1,012,078.00 588,336.00
Renovation costs 2,901,399.29 4,787,548.35 1,242,810.85 6,446,136.79
Total 3,493,237.29 5,796,124.35 2,254,888.85 7,034,472.79
197
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Other notes
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that 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
Provision for impairment
157,586,654.91 38,312,198.03 126,743,538.44 31,553,045.99
of assets
Internal unrealized profit 49,316,338.72 12,329,084.68 52,189,819.68 13,047,454.92
Deductible losses 162,281,053.40 40,570,263.35 657,498,958.12 164,374,739.53
Accrued land VAT 2,148,670,831.53 537,167,707.90 1,209,109,559.84 302,277,389.96
Estimated profit
calculated at pre-sale
119,095,335.72 29,773,833.93 38,294,088.60 9,573,522.15
revenue of property
enterprises
Payroll payable unpaid
139.36 34.84 26,575.76 6,643.94
but withdrawn
Total 2,636,950,353.64 658,153,122.73 2,083,862,540.44 520,832,796.49
(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 15,284.32 3,821.08 21,102.40 5,275.60
than the tax basis
Total 15,284.32 3,821.08 21,102.40 5,275.60
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
198
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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
658,153,122.73 520,832,796.49
assets
Deferred income tax
3,821.08 5,275.60
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 60,809,797.81 73,565,140.25
Deductible losses 187,768,845.36 117,469,411.97
Total 248,578,643.17 191,034,552.22
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Notes
Y2019 7,443.23 7,443.23 The deductible losses of 2014
Y2020 8,494.90 2,221,261.56 The deductible losses of 2015
Y2021 3,456.91 5,397,820.20 The deductible losses of 2016
Y2022 62,919,255.68 109,842,886.98 The deductible losses of 2017
Y2024 124,830,194.64 The deductible losses of 2019
Total 187,768,845.36 117,469,411.97 --
Other notes:
31. Other Non-current Assets
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance
Prepayment for purchase of fixed assets,
4,711,963.66 9,851,318.29
investment properties and intangible assets
Prepayment for acquisition of long-term
100,000,000.00
equity investment
199
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Total 4,711,963.66 109,851,318.29
Other notes:
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of short-term borrowings category:
(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 RMBXXX, of which the significant overdue unpaid
short-term borrowings are as follows:
Unit: RMB
Borrower Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
33. Trading Financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
34. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
35. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMBXXX.
200
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense payable 420,433,422.07 298,051,672.25
Accrued expense 90,484,298.98 79,416,420.98
Other 66,771,418.05 57,882,756.96
Total 577,689,139.10 435,350,850.19
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Jiangsu Hanjian Group Co., Ltd. (Phase II) 31,568,213.29 Unsettled
Shanghai Mingpeng Construction Group
25,976,705.79 Unsettled
Co., Ltd.
The Second Construction Co., Ltd. of
China Construction Third Engineering 25,955,592.81 Construction deposit
Bureau
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Bureau
Henan First Construction Engineering
9,352,490.51 Construction deposit
Group Co., Ltd.
Total 117,853,002.40 --
Other notes:
Classified by aging:
Item Ending balance Beginning balance
Within 1 year 390,848,867.89 161,755,701.03
1 to 2 years 65,326,341.12 204,934,319.16
2 to 3 years 80,063,934.43 13,628,614.76
Over 3 years 41,449,995.66 55,032,215.24
Total 577,689,139.10 435,350,850.19
37. Advances from Customers
Whether the Company has executed the new income standards
□ Yes √ No
201
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 694,213,671.69 234,024,856.00
Property fee in advance 17,463,948.02 18,043,816.10
Other 16,508,412.92 25,977,129.36
Total 728,186,032.63 278,045,801.46
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
The Company needs to comply with the disclosure requirements of Guideline No. 3 of the Shenzhen Stock Exchange on the
Industrial Information Disclosure about Listed Companies’ Engagement in Real Estate Business
The proceeds information of top 5 advance sale amount:
Unit: RMB
Expected completion Advance sale
No. Name Beginning balance Ending balance
date proportion
Golden Collar’s
1 89,772,140.00 585,316,708.00 25 December 2019 21.64%
Resort Building B
Banshan Yujing
2 70,839,912.00 31 March 2020 53.99%
Phase II
3 Songhu Langyuan 51,299,542.00 16,887,344.69 31 July 2017 93.72%
Banshan Yujing
4 6,222,099.00 14,182,776.00 30 November 2016 97.28%
Phase I
HupanYujing Phase
5 8,687,567.00 6,376,931.00 30 November 2017 85.36%
II
(3) Settled but Uncompleted Projects Formed by Construction Contracts at the Period-end
Unit: RMB
Item Amount
Other notes:
Classified by aging:
Item Ending balance Beginning balance
Within 1 year 719,697,151.63 267,372,347.45
1 to 2 years 8,096,799.09 2,081,948.98
202
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
2 to 3 years 138,377.89
Over 3 years 253,704.02 8,591,505.03
Total 728,186,032.63 278,045,801.46
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Significant changes in amount of carrying value occurred in the Reporting Period and the reasons
Unit: RMB
Item Amount changed Reason
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 123,275,509.23 606,100,200.91 587,926,859.91 141,448,850.23
II. Post-employment
benefit-defined 2,787,247.47 45,689,295.04 46,555,439.86 1,921,102.65
contribution plans
III. Termination benefits 988,384.40 864,468.48 123,915.92
Total 126,062,756.70 652,777,880.35 635,346,768.25 143,493,868.80
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
109,789,933.89 538,846,748.28 521,169,483.63 127,467,198.54
allowance, subsidy
2. Employee welfare 830.00 17,949,213.12 17,770,140.07 179,903.05
3. Social insurance 315,010.52 16,304,815.92 16,310,005.06 309,821.38
Of which: Medical
310,766.46 14,344,628.07 14,348,176.53 307,218.00
insurance premiums
Work-re
629.30 645,788.19 646,417.49
lated injury insurance
203
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Materni
3,614.76 1,212,727.16 1,213,738.54 2,603.38
ty insurance
Other commercial
101,672.50 101,672.50
insurance
4. Housing fund 1,029,715.68 16,552,162.82 17,029,348.64 552,529.86
5. Labor union budget
and employee education 12,140,019.14 14,098,904.25 13,299,525.99 12,939,397.40
budget
8. Other short-term
2,348,356.52 2,348,356.52
salary
Total 123,275,509.23 606,100,200.91 587,926,859.91 141,448,850.23
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 519,489.89 35,030,412.10 35,381,471.99 168,430.00
2. Unemployment
2,247.50 890,563.97 892,811.47
insurance
3. Annuity 2,265,510.08 9,768,318.97 10,281,156.40 1,752,672.65
Total 2,787,247.47 45,689,295.04 46,555,439.86 1,921,102.65
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 70,818,175.32 48,719,838.20
Corporate income tax 368,461,498.66 318,971,724.32
Personal income tax 1,556,780.71 1,176,109.41
Urban maintenance and construction tax 3,668,311.19 2,252,097.30
Land VAT 2,149,507,199.99 1,205,033,788.57
Property tax 526,309.33 1,172,809.91
Land use tax 942,757.19 905,178.31
Education surcharge 1,592,152.99 1,001,486.12
Local education surtax 1,067,591.60 656,617.48
Other 142,514.70 135,123.49
204
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Total 2,598,283,291.68 1,580,024,773.11
Other notes:
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12,202,676.04 12,434,579.81
Other payables 1,136,902,252.81 644,283,805.39
Total 1,149,104,928.85 656,718,385.20
(1) 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:
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 12,202,676.04 12,434,579.81
Total 12,202,676.04 12,434,579.81
Other notes, including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
Item Amount unpaid Reason
Shenzhen South China Investment Development Co., Ltd. 9,871.20 Without access to its account
Wenling Quality Control Association 9,871.02 Without access to its account
Shanghai Weihong Industry & Trade Co., Ltd. 9,900.00 Without access to its account
China Shenzhen International Cooperation (Group) Co., 0.18 Without access to its account
Ltd.
Shenzhen Greening Department 10,869,036.68 Company restructured without
clearing payment object
Labor union of Shenzhen Greening Department 1,300,000.00 Company restructured without
clearing payment object
Shenzhen Sports Administration 3,996.96 Final payment unpaid
205
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Subtotal 12,202,676.04
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Guarantee 201,013,437.65 166,625,218.90
Cash deposit 51,062,427.71 53,640,205.90
residual funds of equity transfer unpaid 465,807,569.82
Agency fund 7,531,813.31 53,492,958.02
Intercourse fund 316,244,391.26 291,519,747.65
Accrued expenses 64,684,769.05 54,494,153.72
Payment on behalf 9,235,637.59 4,981,829.36
Other 21,322,206.42 19,529,691.84
Total 1,136,902,252.81 644,283,805.39
2) Significant Other Payables Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Shenzhen Real Estate Jifa Warehousing Come-and-go accounts without specific
35,796,665.14
Co., Ltd. payment term
Shenzhen Pason Aluminum Technology Cooperative development funds settled in
195,776,155.45
Co., Ltd. completion of the project
Margin of sporadic lease 6,060,127.83 Margin within the leasing period
Shenzhen Tian’an International Building Come-and-go accounts without specific
5,214,345.90
Property Management Co., Ltd. payment term
Rainbow Co., Ltd. 2,380,000.00 Margin within the leasing period
Total 245,227,294.32 --
Other notes
42. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
206
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 3,921,032.24 1,669.10
Total 3,921,032.24 1,669.10
Other notes:
Note: Refer to Note V-44 for the difference between beginning balance and ending balance of prior period (31 December 2018) for
details.
44. Other Current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
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:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged borrowings 2,192,900,000.00
Guaranteed borrowings 933,000.00 1,000,000.00
Total 2,193,833,000.00 1,000,000.00
Notes to the category of long-term borrowings:
Other notes, including the interval of interest rate:
The pledged and guaranteed borrowings at the period-end were used to develop the Bangling urban renewal project of Shenzhen
Rongyao Real Estate Development Co., Ltd. (hereinafter referred to as “Rongyao Real Estate”) with the duration from 29 November
2019 to 20 November 2024, applying the borrowing rate by rising 1.55% complying to one-year level of loan prime rate. And 69%
207
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
equity of Rongyao Real Estate held by the Company was pledged and the guarantee mode was the joint liability guaranty.
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
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
Total -- -- --
(3) Notes to the Conditions and Time of the Shares Transfer of the Convertible Corporate Bonds
(4) Notes to Other Financial Instruments Classified as Financial Liabilities
Basic situation of other financial instruments such as preferred shares and perpetual bonds outstanding at the period-end
Changes in financial instruments such as preferred shares and perpetual bonds outstanding at the period-end
Unit: RMB
Outstanding Period-begin 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 instruments as financial liabilities
Other notes
47. Lease Liabilities
Unit:
Item Ending balance Beginning balance
Other notes
208
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
48. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Other notes:
(2) Specific Payables
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Other notes:
49. 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
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:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
209
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
50. Provisions
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Pending litigation 2,903,327.87 Contract disputes
Total 2,903,327.87 --
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
Refer to Note XIV (2) for details.
51. Deferred Income
Unit: RMB
Item Beginning balance Increase Decrease Ending balance Reason for formation
Government subsidy
Government subsidy 390,011.00 48,751.37 341,259.63 for Huangyuyuan
Primary School
Total 390,011.00 48,751.37 341,259.63 --
Item involving government subsidies:
Unit: RMB
Amount
Amount
recorded
recorded Amount
into
Amount of into other offset cost in Related to
Beginning non-operatin Other
Item newly income in the Ending balance assets/relate
balance g income in changes
subsidy the Reporting d to income
the
Reporting Period
Reporting
Period
Period
Government
subsidy for
Related to
Huangyuyua 390,011.00 48,751.37 341,259.63
assets
n Primary
School
Other notes:
52. Other Non-current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
210
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Item Ending balance Beginning balance
Utility specific fund 237,163.63 237,163.63
Housing principle fund 13,215,811.13 20,469,453.92
House warming deposit 7,052,274.22 6,649,884.71
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed Maintenance fund 36,337,634.47 29,848,516.67
Follow-up investment of employees for
40,000,000.00
Guanlan Bangling project
Other 7,302,438.57 3,403,153.24
Total 108,164,737.46 64,627,587.61
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 Instruments
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual Bond
Outstanding at the End of the Period
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End
of the Period
Unit: RMB
Outstanding Period-begin Increase Decrease Period-end
financial Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
instruments value value value value
The current changes in other equity instruments and the corresponding reasons and the basis of the relevant accounting treatment:
Other notes:
55. Capital Reserve
Unit: RMB
211
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Item Beginning balance Increase Decrease Ending balance
Capital premium
402,859,138.87 402,859,138.87
(premium on stock)
Other capital reserves 80,488,045.38 80,488,045.38
Total 483,347,184.25 402,859,138.87 80,488,045.38
Other notes, including changes and reason of change:
(1) The Company obtained 100% equity of Shenzhen Toukong Property Management Co., Ltd. (hereinafter referred to as “TK
Property”) via business combination under the same control in November 2019. In the process of obtaining the equity, the Company
transferred the assets with defective property rights to original shareholder, Shenzhen Investment Holdings Co., Ltd. After
transferring assets, the accounting treatment will be conducted with capital reserve of RMB206,448,648.94 and surplus reserves of
RMB5,223,626.05 offset.
(2) The Company obtained 100% equity of Shenzhen Toukong Property Management Co., Ltd. (hereinafter referred to as “TK
Property”) via business combination under the same control in November 2019. When preparing the consolidated comparative
statements at the period-end according to the regulations, the equity shall be regarded to exist on the current condition as the ultimate
controller started to exercise control to the margining parties. Thus, when combining the acquirees in prior year, the capital reserve
was increased RMB364,409,051.36. After deducting the influence of the first point above, the capital reserve of RMB157,960,402.42
was increased retroactively by transferring to the prior year on the combination date under the same control.
(3) On the actual merger combination date, the capital reserve of RMB38,450,087.51 was offset by the difference between the
acquisition price and the net assets of acquirees on the combination date, as well as the surplus reserves of RMB298,912,759.52 and
retained earnings with RMB372,056,459.07.
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
57. Other Comprehensive Income
Unit: RMB
Item Beginning Reporting Period Ending
212
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
balance Less: balance
Less: Recorded
Recorded in into other
other comprehe Attributabl
Income comprehensi nsive e to Attributabl
before ve income in income in Less: owners of e to
taxation in prior period prior Income the non-contro
the and period and tax Company lling
Current transferred in transferred expense as the interests
Period profit or loss in retained parent after tax
in the earnings in after tax
Current the
Period Current
period
I. Other comprehensive income
-2,051,268 -2,051,268 -2,051,2
that may not be reclassified to
.24 .24 68.24
profit or loss
Changes in fair value of
-2,051,268 -2,051,268 -2,051,2
other equity instrument
.24 .24 68.24
investment
II. Other comprehensive income
-1,786,181.6 1,139,078. 1,139,078. -647,103
that may subsequently be
9 49 49 .20
reclassified to profit or loss
Differences arising from
-1,786,181.6 1,139,078. 1,139,078. -647,103
translation of foreign currency
9 49 49 .20
denominated financial statements
Total of other comprehensive -1,786,181.6 -912,189.7 -912,189.7 -2,698,3
income 9 5 5 71.44
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:
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
213
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Statutory surplus
299,204,166.83 16,403,637.61 298,912,759.52 16,695,044.92
reserves
Discretionary surplus
365,403.13 365,403.13
reserve
Total 299,569,569.96 16,403,637.61 298,912,759.52 17,060,448.05
Notes, including changes and reason of change:
The increase of the surplus reserves was due to the statutory surplus reserves withdrawn 10% of net profits; refer to the note of
“Capital Reserve” for the reason of decrease.
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
2,495,296,440.15 1,984,195,447.18
adjustments
Beginning balance of retained earnings after
2,495,296,440.15 1,984,195,447.18
adjustments
Add: Net profit attributable to owners of the
817,805,780.12 698,050,728.96
Company as the parent
Less: Withdrawal of statutory surplus reserves 16,403,637.61
Dividend of ordinary shares payable 178,793,727.60 186,949,735.99
Other 660,785,059.67
Ending retained earnings 2,457,119,795.39 2,495,296,440.15
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB72,876,860.81 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings 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 3,878,813,785.99 1,412,220,130.41 3,313,429,162.76 1,689,660,570.09
214
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Other operations 82,856,156.45 21,395,755.02 63,244,087.14 20,629,980.84
Total 3,961,669,942.44 1,433,615,885.43 3,376,673,249.90 1,710,290,550.93
Whether the Company has executed the new income standards
□ Yes √ No
Other notes
The Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No.3-Listed Companies Engaged in Real Estate Industry
The top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
No. Name of project Income balance
1 Golden Collar’s Resort 2,085,500,771.44
2 Qianhai Gangwan 333,068,610.42
3 Songhu Langyuan 104,316,939.42
4 Hupan Yujing Phase II 91,719,392.59
5 Banshan Yujing Phase I 38,883,049.53
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 13,199,586.55 10,157,150.82
Education surcharge 5,689,568.83 4,451,600.16
Property tax 10,984,861.45 11,799,837.72
Land use tax 1,647,805.28 1,677,205.13
Business tax 1,115,668.20
Local education surtax 3,716,788.54 2,976,213.48
Land VAT 1,043,898,373.56 591,164,599.63
Other taxes 2,374,296.83 1,070,897.87
Total 1,081,511,281.04 624,413,173.01
Other notes:
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Agency fee 84,330,766.24 19,774,323.60
Consultancy and sales service charges 8,639,346.44 3,508,647.82
215
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Advertising 6,975,770.00 11,002,256.66
Employee’s remuneration 3,847,637.11 4,024,373.52
Other 7,760,432.71 8,191,623.58
Total 111,553,952.50 46,501,225.18
Other notes:
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 143,843,884.07 118,468,213.91
Administrative office cost 38,579,803.69 30,176,236.34
Assets amortization and depreciation
6,357,837.46 4,888,307.99
expense
Litigation costs 1,596,900.60 182,076.40
Other 14,276,126.82 8,663,449.45
Total 204,654,552.64 162,378,284.09
Other notes:
65. R&D Expense
Unit: RMB
Item Reporting Period Same period of last year
Other notes:
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 194,545,794.14 284,918.67
Less: Interest income -61,860,403.42 -67,282,441.97
Foreign exchange gains or losses 770,739.07 290,983.11
Other 1,262,703.78 875,600.93
Total 134,718,833.57 -65,830,939.26
Other notes:
216
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Government subsidy related to income
1,015,033.29 312,339.94
(Note)
Government subsidy related to assets
48,751.37
(Note)
Commission charges return of deductible
91,337.56
income tax
Additional deduction of VAT 3,995,255.21
Total 5,150,377.43 312,339.94
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
5,076,839.48 1,268,890.28
accounted by equity method
Investment income from disposal of long-term
620,130.83
equity investment
Total 5,076,839.48 1,889,021.11
Other notes:
69．Net Gain on Exposure Hedges
Unit: RMB
Item Reporting Period Same period of last year
Other notes:
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Other notes:
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
217
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Bad debt loss of other receivables -18,701,016.31
Total -18,701,016.31
Other notes:
72. Assets Impairment Loss
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss -3,873,731.34
II. Loss on inventory valuation -1,234,250.84 6,565,809.22
V. Impairment loss of long-term equity
-100,000.00
investment
Total -1,234,250.84 2,592,077.88
Other notes:
73. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Disposal income of fixed assets -8,096.97
74. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Government subsidies 1,543,085.40 284,460.50 1,543,085.40
Compensation income 537,474.45 469,843.98 537,474.45
Accounts unpayable 19,416,063.33 14,098,815.36 19,416,063.33
Total income from scrap of
70,145.12 18,571.33 70,145.12
non-current assets
Other 2,165,579.98 4,223,267.99 2,165,579.98
Total 23,732,348.28 19,094,959.16 23,732,348.28
Government subsidies recorded into current profit or loss
Unit: RMB
218
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Whether
influence the Special Related to
Distribution Distribution Reporting Same period
Item Nature profits or subsidy assets/related
entity reason Period of last year
losses of the or not to income
year or not
Obtained by
undertaking
Social
state’s functions
Security
of ensuring
Difficulty Bureau of Related to
Subsidy certain public No No 718,712.26
subsidy Chongqing income
service or social
Jiulongpo
necessary
District
products supply
or price control
Obtained by
undertaking
Finance state’s functions
Decoration
Payment of ensuring
subsidy of Related to
Center of Subsidy certain public No No 777,708.00
public rental income
Chongqing service or social
housing
Beibei necessary
products supply
or price control
Obtained by
undertaking
state’s functions
of ensuring
Related to
Other Subsidy certain public No No 36,665.14
income
service or social
necessary
products supply
or price control
Total 1,543,085.40
Other notes:
75. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Loss on damage and scrap of
510,294.93 271,572.70 510,294.93
non-current assets
219
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Litigation costs 1,696,470.00 0.00 1,696,470.00
Donation 35,000.00 0.00 35,000.00
Penalty and fine for delaying
128,035.72 2,823,896.10 128,035.72
payment
Other 2,423,703.20 1,340,265.17 2,423,703.20
Total 4,793,503.85 4,435,733.97 4,793,503.85
Other notes:
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 400,037,961.67 352,930,844.22
Deferred income tax expense -137,321,780.76 -132,669,980.62
Total 262,716,180.91 220,260,863.60
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 1,004,846,231.45
Current income tax expense accounted at statutory/applicable tax
251,211,557.86
rate
Influence of applying different tax rates by subsidiaries -3,473,080.27
Influence of income tax before adjustment -5,761,627.90
Influence of non-deductible costs, expenses and losses 2,813,203.94
Influence of deductibleloss of unrecognized deferred income tax
-13,281,421.38
assets in prior period
Influence of deductibletemporary difference or deductible losses
31,207,548.66
of unrecognized deferred income tax in the Reporting Period
Income tax expense 262,716,180.91
Other notes
77. Other Comprehensive Income
Refer to Note VII-57 for details.
220
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Large intercourse funds 599,052,281.39 61,619,596.64
Interest income 70,613,994.05 50,333,967.32
Net margins, security deposit and various
31,810,440.56 3,846,601.06
special funds received
Government subsidy received 2,751,444.45 284,460.50
Other small receivables 23,385,374.43 8,370,696.82
Total 727,613,534.88 124,455,322.34
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Paying administrative expense in cash 54,452,831.11 29,464,167.94
Paying selling expense in cash 96,486,380.21 44,006,125.48
Net amount of utilities, miscellaneous
fees and accident fee and other payments 23,473,862.52 39,575,779.49
on behalf
Other small payments 10,912,680.02
Total 185,325,753.86 113,046,072.91
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:
221
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Follow-up investment of Guanlan
40,000,000.00
Bangling project
Total 40,000,000.00
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Distribution of profit to original
shareholder by merged company under the 123,502,169.51
same control
Total 123,502,169.51
Notes:
79. 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 742,130,050.54 698,104,659.50
Add: Provision for impairment of assets 20,061,463.19 -2,592,077.88
Depreciation of fixed assets, oil-gas assets,
49,096,658.15 42,922,617.35
and productive living assets
Amortization of intangible assets 204,396.36 657,052.94
Amortization of long-term prepaid expenses 2,254,888.85 1,172,170.94
Los on disposal of fixed assets, intangible
assets and other long-term assets (gains: 8,096.97
negative)
Losses on scrap of fixed assets (gains:
440,149.81 244,904.40
negative)
Finance costs (gains: negative) 194,530,915.83 279,706.67
222
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Investment loss (gains: negative) -5,250,050.75 -1,889,021.11
Decrease in deferred income tax assets
-137,320,326.24 -131,757,067.12
(gains: negative)
Increase in deferred income tax liabilities
-1,454.52 -3,392.55
(“-” means decrease)
Decrease in inventory (gains: negative) -1,903,681,041.67 681,042,601.49
Decrease in accounts receivable generated
458,314,454.42 -89,688,923.59
from operating activities (gains: negative)
Increase in accounts payable used in
1,519,009,461.99 33,216,728.17
operating activities (decrease: negative)
Net cash generated from/used in operating
939,789,565.96 1,231,718,056.18
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 3,285,345,233.47 3,881,027,257.89
Less: Beginning balance of cash 3,881,027,257.89 2,889,283,680.74
Net increase in cash and cash equivalents -595,682,024.42 991,743,577.15
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Cash and cash equivalent paid for business combination in the
969,574,943.74
current period
Of which: --
Of which: Shenzhen Rongyao Real Estate Development Co., Ltd. 408,000,000.00
Shenzhen Toukong Property Management Co., Ltd. 561,574,943.74
Less: Cash and cash equivalent held by subsidiaries on purchase
44,727.75
date
Of which: --
Of which: Shenzhen Rongyao Real Estate Development Co., Ltd. 44,727.75
Of which: --
Of which: Shenzhen Rongyao Real Estate Development Co., Ltd.
Net payments for acquisition of subsidiaries 969,530,215.99
Other notes:
223
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 3,285,345,233.47 3,881,027,257.89
Including: Cash on hand 130,048.49 184,219.12
Bank deposit on demand 3,272,524,570.94 3,618,063,143.01
Other monetary assets on demand 12,690,614.04 262,779,895.76
III. Ending balance of cash and cash
3,285,345,233.47 3,881,027,257.89
equivalents
Other notes:
80. 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
81. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary assets 12,545,702.44 Note 1, Note 2, Note 3, Note 4
Total 12,545,702.44 --
Other notes:
Note 1: In term of monetary assets with restricted right to use at the period-end, there was limited capital of frozen account with
RMB11,018.00 in the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd., RMB7,063,237.32 in the
subsidiary company Shenzhen Taixinli Property Management Co., Ltd. as well. Refer to Note X-(II) 1 for relevant matters involved
with lawsuit for details.
Note 2: In term of monetary assets with restricted right to use at the period-end, there was guarantee deposit of RMB49,020.00 paid
to the performance guarantee No. 20190531SLYL signed between the subsidiary company Shenzhen Shenlv Garden Technology
Industrial Co., Ltd. and Shenzhen Urban Greening Management Department on 31 May 2019.
224
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Note 3: In term of monetary assets with restricted right to use at the period-end, as a real estate developer, the Company has provided
mortgage guarantees for commercial housing purchasers and paid loan guarantees of RMB1,120,910.60 according to real estate
business practices.Refer to Note XI-(II) 2 for details.
Note 4: In term of monetary assets with restricted right to use at the period-end, there was interest of fixed time deposit of
RMB4,301,516.52 undue but withdrawn at the period-end.
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary assets -- -- 55,219,084.87
Of which: USD
EUR
HKD 61,642,202.36 0.8958 55,219,084.87
Accounts receivable -- -- 59,316.24
Of which: USD
EUR
HKD 66,215.94 0.8958
Long-term borrowings -- --
Of which: USD
EUR
HKD
Prepayment 6,973.39
Of which: HKD 7,784.54 0.8958 6,973.39
Other equity instrument
639,772.86
investment
Of which: USD 91,707.93 6.9762 639,772.86
Accounts payable 50,164.80
Of which: HKD 56,000.00 0.8958 50,164.80
Other payables 325,745.73
Of which: HKD 363,636.67 0.8958 325,745.73
Long-term payables 439,760.88
225
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Of which: USD 8,768.06 6.9762 61,167.74
HKD 422,631.32 0.8958 378,593.14
Other notes:
(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 currency Basis for choosing
operating place
Shum Yip Properties Development Co., Hong Kong HKD Located in HK, settled by HKD
Ltd. and its subsidiary
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
84. Government Subsidy
(1) Basic Information on Government Subsidy
Unit: RMB
Amount recorded in the current
Category Amount Listed items
profit or loss
Small and micro businessesVAT
196,685.24 Other income 196,685.24
exemption
Stable post subsidy 867,099.42 Other income 867,099.42
Bounty for achieving drainage
10,000.00 Non-operating income 10,000.00
of municipal engineering
Decoration subsidy of Beibei
777,708.00 Non-operating income 777,708.00
Financial Treasury
Social security subsidy of
755,377.40 Non-operating income 755,377.40
Jiulongpo District
Subtotal 2,606,870.06 2,606,870.06
(2) Return of Government Subsidy
□ Applicable √ Not applicable
Other notes:
226
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
85. Other
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
Time and Recognition acquiree Net profits of
Proporti Way to
Name of place of Cost of gaining basis of from the acquiree from the
on of gain the Purchase date
acquiree gaining the equity purchase purchase purchase date to
equity equity
the equity date date to period-end
period-end
Shenzhen
Rongyao Settlement
11 March
Real Estate 508,000,000.00 69.00% Transfer 11 March 2019 date of -243,632,621.48
2019
Developme equity
nt Co., Ltd.
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
--Cash 508,000,000.00
Total combination cost 508,000,000.00
Less: Fair value of identifiable net assets 405,118,201.39
Note to determination method of the fair value of the combination cost, consideration and changes:
The fair value at net assets of combination cost of Rongyao Real Estate was calculated from 100% equity of Rongyao Real Estate
with assessed value of RMB746.504 million on the base date of assets evaluationof 31 July 2018 as well as the equity acquisition
ratio according to the evaluation report (PXZPBZ (2018) No.S117) issued by Shenzhen Pengxin Assets Appraisal Land Real Estate
Appraisal Co., Ltd.
The main formation reason for the large goodwill:
Other notes:
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
227
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Fair value on purchase date Carrying value on purchase date
Monetary assets 44,727.75 44,727.75
Accounts receivable 1,412,020,689.96 1,412,020,689.96
Inventory 1,561,388,969.82 551,161,727.04
Fixed assets 92,297.58 83,281.53
Other current assets 2,157,148.78 2,157,148.78
Long-term prepaid expense 170,945.15 170,945.15
borrowings 2,193,000,000.00 2,193,000,000.00
Accounts payable 117,109,047.60 117,109,047.60
Tax payable 54,276,750.00 54,276,750.00
Other payables 24,361,153.34 24,361,153.34
Net assets 587,127,828.10 -423,108,430.73
Less: Equity of non-controlling interests 182,009,626.71 -131,163,613.53
Net assets obtained 405,118,201.39 -291,944,817.21
The determination method of the fair value of identifiable assets and liabilities
The determination of the fair value: the third level input value of fair value, and estimating the fair value based on the net assets of
investees at the period –end as key reference. The net assets of investees at the period –end will be the base number to estimate the
fair value as it can reflect the fair value; otherwise it will be adjusted according to the assumption used in related assets or liabilities
pricing by market participators.
Contingent liability of acquiree undertaken in the business combination
Other notes:
(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
(6) Other Notes
Notes to the performance promise: In 2019, the Company assigned 69% of equity in Shenzhen Rongyao Real Estate Development
Co., Ltd. (hereinafter referred to as “Rongyao Real Estate”) via business combination not under the same control. According to the
terms of the equity transfer agreement, the original controlling shareholder of Rongyao Real Estate, Shenzhen Xinhai Rongyao
Property Development Co., Ltd. (hereinafter referred to as “Xinhai Rongyao”) promised that in line with the equationof net profit
(operation revenue-operation costs-general expenses-taxes)/operation revenue, if the net profit of sales calculated by the equation is
lower than 10%, the difference shall be complemented by the dividend Xinhai Rongyao enjoyed; if the dividend is insufficient, the
difference shall be complemented by cash or other methods that the Company recognized.
228
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
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 to the 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
Shenzhen Under the
Toukong same control Completed
27 November 638,544,486. 118,680,871. 589,432,617. 105,442,907.
Property 100.00% before and the changes
2019 82 93 37 48
Management after the of equity
Co., Ltd. combination
Other notes:
(2) Combination Cost
Unit: RMB
Combination cost
--Cash 1,027,382,513.56
Contingent liabilities of the combined party undertaken in the business combination
Other notes:
(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
Monetary assets 550,425,217.78 505,312,567.80
Accounts receivable 131,009,306.66 91,666,738.83
Inventory 214,154,473.34 214,392,071.37
Fixed assets 26,489,663.22 69,904,382.96
Intangible assets 759,033.97 1,052,558.22
Prepayment 21,894,861.89 23,633,493.03
Other receivables 67,836,897.30 55,609,072.46
Other current assets 404,645.33 539,027.46
229
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Investment property 63,067,367.78 238,019,261.74
Long-term prepaid expense 825,318.70 1,094,661.00
Deferred income tax assets 4,440,661.60 1,049,264.85
Other non-current assets 2,631.37 879,376.29
Accounts payable 35,887,991.26 36,920,994.23
Provisions 1,231,431.87
Advances from customers 5,290,011.32 12,707,586.12
Payroll payable 21,116,047.39 29,993,235.16
Taxes payable 42,547,295.72 27,304,142.52
Other payables 633,461,988.10 544,217,907.61
Other non-current liabilities 17,244,278.44 11,690,406.80
Net assets 324,487,064.44 540,318,203.57
Less: non-controlling interests 6,523,856.98 5,861,423.54
Net assets obtained 317,963,207.46 534,456,780.03
Contingent liabilities of the combined party undertaken in the business combination
Other notes:
(1)Notes to the assets transfer of business combination under the same control: Shenzhen Toukong Property Management Co., Ltd.
(hereinafter referred to as “TK Property”) acquired via business combination under the same control by the Company, before the
combination date, transferred part of property with defective property rights under its name to original shareholder, Shenzhen
Investment Holdings Co., Ltd., and thus the investment property and fixed assets of TK Property in the current period were decreased
significantly compared with the prior period. In order to maintain the stabilization and development of TK Property after equity
transfer as well as the compatibility and completeness between the employees and asset structure scale, TK Property has signed the
Agreement on Entrusted Operation and Management of Divestiture of Land and Real Estate of Shenzhen Toukong Property
Management Co., Ltd. with Shenzhen Investment Holdings Co., Ltd. and Shenzhen Shentou Property Development Co., Ltd., and
entrusted TK Property to manage the aforesaid transferred assets on behalf.
(2)Notes to the performance promise: In 2019, the Company obtained100% of equity in Shenzhen Toukong Property Management
Co., Ltd. (hereinafter referred to as “TK Property”) via business combination under the same control. According to the terms of the
equity transfer agreement, the original controlling shareholder of TK Property, Shenzhen Investment Holdings Co., Ltd. (hereinafter
referred to as “Shenzhen Investment Holdings”) promised that the 3-year accumulative net profit from 2019 to 2021 of TK Property
(after deducting non-recurring gain or loss) shall be higher than 18% of the equity transfer price;otherwise the difference shall be
complemented through cash by Shenzhen Investment Holdings. The abovementioned net profit shall be subject to the audited amount
of TK Property.
3. Counter Purchase
Basic information of trading, the basis of transactions constituted 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:
230
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
4. 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:
1. Increase in combination scope Unit: RMB
Name of company Way to gain equity Time and place of gaining Capital contribution Proportion
equity
Shenzhen Shenshan Special Newly-established 10 June 2019 3,250,000.00 65.00%
Cooperation Zone Guomao subsidiary
Property Development Co.,
Ltd.
Shenzhen Guomao Tongle Newly-established 19 November 2019 1,020,000.00 51.00%
Property Management Co., subsidiary
Ltd.
2. Decrease in combination scope Unit: RMB
Name of company Disposal way of equity Time and place of Net assets on the Net profit from period-begin to
equity disposal disposal date disposal date
Shenzhen Hefeng Property Liquidation of subsidiary 14 October 2019 491,913.87 68,776.81
Management Co., Ltd.
6. Other
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
Huangcheng Real Shenzhen Shenzhen Real estate 100.00% Set-up
Estate Co., Ltd.
231
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
SZPRD Real
Estate
Shenzhen Shenzhen Real estate 100.00% Set-up
Development Co.,
Ltd.
PRD Group
Xuzhou Dapeng
Real Estate Xuzhou Xuzhou Real estate 100.00% Set-up
Development Co.,
Ltd.
Dongguan
International
Trade Center
Changsheng Real Dongguan Dongguan Real estate 100.00% Set-up
Estate
Development Co.,
Ltd.
PRD Yangzhou
Real Estate
Yangzhou Yangzhou Real estate 100.00% Set-up
Development Co.,
Ltd.
Shenzhen
International
Trade Center
Shenzhen Shenzhen Real estate 100.00% Set-up
Property
Management Co.,
Ltd.
Shenzhen
Huangcheng
Property Shenzhen Shenzhen Real estate 100.00% Set-up
Management Co.,
Ltd.
Shandong
Shenzhen
International
Trade Center Jinan Jinan Real estate 100.00% Set-up
Property
Management Co.,
Ltd.
232
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Chongqing
Shenzhen
International
Trade Center Chongqing Chongqing Real estate 100.00% Set-up
Property
Management Co.,
Ltd.
Chongqing Aobo
Chongqing Chongqing Service 100.00% Set-up
Elevator Co., Ltd.
Shenzhen
Tianque Elevator
Shenzhen Shenzhen Service 100.00% Set-up
Technology Co.,
Ltd.
Shenzhen
Guoguan
Shenzhen Shenzhen Service 100.00% Set-up
Electromechanica
l Device Co., Ltd.
Shenzhen
International Hotels and
Shenzhen Shenzhen 100.00% Set-up
Trade Center catering services
Catering Co., Ltd.
Shenzhen
Property
Engineering
Shenzhen Shenzhen Service 100.00% Set-up
Construction
Supervision Co.,
Ltd.
SZPRD
Operation and
Management of Shenzhen Shenzhen Service 100.00% Set-up
Real Estate
Assets Co., Ltd.
Zhanjiang
Shenzhen Real
Estate Zhanjiang Zhanjiang Real estate 100.00% Set-up
Development Co.,
Ltd.
Shum Yip
Properties
Hong Kong Hong Kong Real estate 100.00% Set-up
Development Co.,
Ltd.
233
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Wayhang
Development Co., Hong Kong Hong Kong Real estate 100.00% Set-up
Ltd.
Chief Link
Properties Co., Hong Kong Hong Kong Real estate 70.00% Set-up
Ltd.
Business
Syndis
combination not
Investment Co., Hong Kong Hong Kong Real estate 70.00%
under the same
Ltd.
control
Yangzhou
Slender West
Lake Jingyue
Yangzhou Yangzhou Real estate 51.00% Set-up
Property
Development Co.,
Ltd.
Shandong
International
Trade Center
Jinan Jinan Real estate 100.00% Set-up
Hotel
Management Co.,
Ltd.
Shenzhen
Shenshan Special
Cooperation Zone
Shenzhen Shenzhen Real estate 65.00% Set-up
Guomao Property
Development Co.,
Ltd.
Shenzhen
Guomao Tongle
Property Shenzhen Shenzhen Real estate 51.00% Set-up
Management Co.,
Ltd.
Shenzhen
Business
Rongyao Real
combination not
Estate Shenzhen Shenzhen Real estate 69.00%
under the same
Development Co.,
control
Ltd.
Shenzhen Business
Toukong Property combination
Shenzhen Shenzhen Real estate 100.00%
Management Co., under the same
Ltd. control
234
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen Julian Business
Human Resources combination
Shenzhen Shenzhen Service 100.00%
Development Co., under the same
Ltd. control
Shenzhen
Huazhengpeng Business
Property combination
Shenzhen Shenzhen Real estate 100.00%
Management under the same
Development Co., control
Ltd.
Shenzhen Taixinli Business
Property combination
Shenzhen Shenzhen Real estate 100.00%
Management Co., under the same
Ltd. control
Shenzhen
Business
Penghongyuan
Hotels and combination
Industrial Shenzhen Shenzhen 100.00%
catering services under the same
Development Co.,
control
Ltd.
Shenzhen
Business
Jinhailian
combination
Property Shenzhen Shenzhen Real estate 100.00%
under the same
Management Co.,
control
Ltd.
Business
Shenzhen Social Health and social combination
Shenzhen Shenzhen 100.00%
Welfare Co., Ltd. work under the same
control
Shenzhen
Fuyuanmin Business
Property combination
Shenzhen Shenzhen Real estate 90.00%
Management under the same
Limited Liability control
Company
Shenzhen
Business
Meilong
combination
Industrial Shenzhen Shenzhen Service 100.00%
under the same
Development Co.,
control
Ltd.
235
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen Shenlv
Business
Garden
Public facilities combination
Technology Shenzhen Shenzhen 90.00%
management under the same
Industrial Co.,
control
Ltd.
Shenzhen Jiayuan Business
Property combination
Shenzhen Shenzhen Real estate 54.00%
Management Co., under the same
Ltd. control
Shenzhen
Business
Helinhua
combination
Construction Shenzhen Shenzhen Real estate 90.00%
under the same
Management Co.,
control
Ltd.
Shenzhen Business
Zhongtongda Construction combination
Shenzhen Shenzhen 90.00%
House Xiushan industry under the same
Service Co., Ltd. control
Shenzhen Business
Kangping combination
Shenzhen Shenzhen Retail business 90.00%
Industrial Co., under the same
Ltd. control
Business
Shenzhen Sports Manufacturing combination
Shenzhen Shenzhen 100.00%
Service Co., Ltd. industry under the same
control
Business
Shenzhen
combination
Teacher’s Home Shenzhen Shenzhen Retail business 100.00%
under the same
Training Co., Ltd.
control
Shenzhen Business
Education combination
Shenzhen Shenzhen Service 100.00%
Industrial Co., under the same
Ltd. control
Business
Shenzhen Yufa
combination
Industrial Co., Shenzhen Shenzhen Retail business 80.95%
under the same
Ltd.
control
Notes to holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not
controlling the investee:
236
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Significant structural entities and controlling basis in the scope of combination:
Basis of determining whether the Company is the agent or the principal:
Other notes:
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding proportion The profit or loss Declaring dividends Balance of
Name of non-controlling attributable to the distributed to non-controlling interests
interests non-controlling interests non-controlling interests at the period-end
Shenzhen Rongyao Real
Estate Development Co., 31.00% -75,526,112.66 106,483,514.05
Ltd.
Yangzhou Shouxihu
Jingyue Property 49.00% -546,365.80 3,311,533.51
Development Co., Ltd.
Shenzhen Shenlv Garden
Technology Industrial 10.00% 728,578.82 4,725,742.78
Co., Ltd.
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Other notes:
(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
Shenzhe
n
Rongyao
Real 4,111,81 42,716,5 4,154,53 53,136,9 3,757,90 3,811,03 3,079,33 263,242. 3,079,59 193,589, 2,193,00 2,386,58
Estate 5,612.87 64.22 2,177.09 70.47 0,000.00 6,970.47 6,186.14 73 9,428.87 802.16 0,000.00 9,802.16
Develop
ment
Co., Ltd.
237
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Yangzho
u
Shouxih
u
8,613,30 848,862. 9,462,16 2,703,93 2,703,93 4,873,26 4,873,26
Jingyue
6.97 50 9.47 7.82 7.82 3.90 3.90
Property
Develop
ment
Co., Ltd.
Shenzhe
n Shenlv
Garden
Technolo 32,340,2 596,876. 32,937,1 29,322,0 29,322,0 30,066,2 31,159,8 61,226,1 33,420,6 33,420,6
gy 29.87 54 06.41 25.36 25.36 73.28 73.35 46.63 70.34 70.34
Industria
l Co.,
Ltd.
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
Shenzhen
Rongyao
-243,632,621. -243,632,621. -957,858,901. -52,393,105.9 -52,393,105.9 -112,947,487.
Real Estate
48 48 03 8 8 91
Development
Co., Ltd.
Yangzhou
Shouxihu
Jingyue
7,340,745.68 -1,115,032.25 -1,115,032.25 -4,922,102.11 -126,736.10
Property
Development
Co., Ltd.
Shenzhen
Shenlv
Garden 21,381,370.3 -23,167,201.6 16,997,131.4
6,394,132.31 6,394,132.31 870,457.45 870,457.45 5,184,728.26
Technology 8 3 9
Industrial
Co., Ltd.
Other notes:
238
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Other notes:
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
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity
Attributable to the Company as the Parent
Unit: RMB
Other notes
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 Real
Estate Jifa Warehouse
Shenzhen Shenzhen 50.00% Equity method
Warehousing Co., service
Ltd.
Tian’an
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:
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:
239
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(2) Main Financial Information of Significant Joint Ventures
Unit: RMB
Beginning balance/Same period of last
Ending balance/Reporting Period
year
Tian’an International Building Property Tian’an International Building Property
Management Company of Shenzhen Management Company of Shenzhen
Current assets 53,771,789.30 50,941,418.43
Of which: Cash and cash equivalents 34,531,027.99 34,496,954.60
Non-current assets 42,265.30 38,523.34
Total assets 53,814,054.60 50,979,941.77
Current liabilities 24,725,254.19 22,970,163.57
Non-current liability 16,166,098.30 16,218,892.53
Total liabilities 40,891,352.49 39,189,056.10
Equity attributable To owners of the
11,790,885.67 11,790,885.67
Company as the parent
Portion of net Assets calculated according
5,895,442.84 5,895,442.84
to proportion of shareholdings
Carrying value of equity investment to
5,895,442.84 5,895,442.84
joint ventures
Operating revenue 20,445,172.55 20,490,161.85
Finance expense -421,003.02 -221,967.51
Income tax expense 379,274.15 444,662.96
Net profit 1,131,816.44 1,327,325.27
Total comprehensive income 1,131,816.44 1,327,325.27
Other notes
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
Beginning balance/Same period of last
Ending balance/Reporting Period
year
Other notes
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
240
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Beginning balance/Same period of last
Ending balance/Reporting Period
year
Joint ventures: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprises: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
(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
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
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:
For common operation as a single entity, basis of classifying as common operation
Other notes
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:
6. Other
X. The Risk Related to Financial Instruments
The Company is engaged in risk management to achieve balance between risks and returns, minimizing the
241
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
negative effects of risks on its operation performance and maximizing the interests of its shareholders and other
equity investors. Based on that risk management goal, the fundamental strategy of its risk management is to
identify and analyze various risks facing the Company, establish an appropriate risk bottom line, carry out risk
management and monitor various risks in a timely and reliable manner to control them within a restricted scope.
The Company faces various risks related to financial instruments in its routine activities, mainly including credit
risk, liquidity risk market risk. The management has reviewed and approved the policies of managing those risks,
which are summarized as follows.
(I) Credit Risk
Credit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is
unable to fulfill its obligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
On each balance sheet date, the Company shall evaluate whether the credit risk of relevant financial
instruments has increased significantly since the initial recognition. After determining whether the credit risk
has increased significantly since the initial recognition, the Company shall consider obtaining reasonable and
reliable information without paying unnecessary extra costs or efforts, including qualitative and quantitative
analysis based on historical data, external credit risk rating and forward-looking information. On the base of
the single financial instrument or combination of financial instruments with similar credit risk characteristics,
the Company compares the risk of default of financial instruments on the balance sheet date with the risk of
default on the initial recognition date to determine the change of default risk of financial instruments during
their expected duration.
When one or more of the following quantitative and qualitative criteria prevails, the Company shall believe
the credit risk of financial instruments has increased significantly:
1) For the quantitative standard, it can be mainly analyzed from the probability of default for the remaining
duration on the balance sheet date rises by more than a certain proportion compared with the initial
confirmation.
2) For the qualitative standard, it can be mainly analyzed from the major adverse changes in the debtor's
operation or financial situation, changes in existing or expected technology, market, economy or legal
environment which shall have major adverse impacts on the debtor’s repayment ability of the Company, etc.
3) The upper limit is that the debtor’s contract payment (including principal and interest) is overdue for more
than 90 days.
(2) Definition of Default and Credit Impairment-Assets
When a financial instrument meets one or more of the following conditions, the Company shall define the
financial asset as having defaulted, and its criteria are consistent with the definition of having incurred credit
impairment:
1) Quantitative Standard
The debtor fails to make the payment after the contract payment date for more than 90 days;
2) Qualitative criteria
① The debtor has major financial difficulties;
② The debtor violates the binding provisions on the debtor in the contract;
③ The debtor is likely to go bankrupt or carry out other financial restructurings;
④ The creditor shall give the debtor concessions that will not be made in any other circumstances due to the
economic or contractual considerations related to the debtor's financial difficulties.
2. Measurement of Expected Credit Loss
242
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Key parameters of the expected credit loss measurement include default probability, loss given default, and
default risk exposure. The Company considers the quantitative analysis and forward-looking information of
historical statistical data (such as counterparty rating, guarantee method, collateral type, repayment method,
etc.) to establish exposure models of default probability, loss given default, and default risk.
3. Refer to Note V-I (2), V-I (4), V-I (8) for details of the reconciliation statements of beginning balance and
ending balance of financial instrument loss provision.
4. Credit Risk Exposure and Credit Risk Concentration
The Company’s credit risk mainly comes from bank deposits and accounts receivable. To control the
aforementioned relevant risks, the Company has adopted the following measures.
(1)Bank deposits
The Company places its bank deposits with financial institutions of high credit ratings. Thus, its credit risk is low.
(2)Accounts receivable
The Company conducts credit assessment on the customers trading in the mode of credit on a regular basis. Based
on the credit assessment result, the Company chooses to trade with recognized customers with good credit and
monitor the balance of the accounts receivable from them to ensure that the Company will not face any significant
bad debt risk.
Due to the Company merely trades with the authorized third party with good credit, the guarantee is not required.
Credit risk concentration is managed in accordance with the customers. As of 31 December 2019, there are certain
credit concentration risks, and 63.81% of accounts receivable of the Company (72.89% on 31 December 2018)
comes from top 5 customers of balance. The Company hasn’t held any guarantee or other credit enhancement for
balance of accounts receivable.
The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset in
balance sheet.
(II)Liquidity Risk
Liquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in
the mode of cash delivery or other financial assets. Liquidity risk may originate from the failure to sell financial
assets at fair value as soon as possible; or from the other party’s failure to pay off its contractual debts; or from the
earlier maturity of debts; or from the failure to generate the expected cash flow.
To control the risk, the Company comprehensively adopts bank loans as financing approach, appropriately
combine long-term and short-term financing modes and optimize the financing structure to maintain the balance
between financing sustainability and flexibility. The Company has obtained the line of credit from a number of
commercial banks to satisfy its operation fund needs and capital expenditure.
Financial liabilities classified by remaining maturity
Item Ending balance
Carrying value Undiscounted Within 1 year 1 to 3 years Over 3 years
contract amount
Bank loans 2,193,833,000.00 2,809,760,244.87 122,965,009.77 254,890,988.43 2,431,904,246.67
Accounts 577,689,139.10 577,689,139.10 577,689,139.10
receivable
Other 1,136,902,252.81 1,136,902,252.81 1,136,902,252.81
receivables
Current 3,921,032.24 3,926,732.24 3,926,732.24
portion for
243
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
other
non-current
liabilities
Subtotal 3,912,345,424.15 4,528,278,369.02 1,841,483,133.92 254,890,988.43 2,431,904,246.67
(Continued)
Item Beginning balance
Carrying value Undiscounted Within 1 year 1 to 3 years Over 3 years
contract amount
Bank loans 1,000,000.00 1,061,292.12 53,826.41 1,007,465.71
Accounts 435,350,850.19 435,350,850.19 435,350,850.19
payable
Other 656,718,385.20 656,718,385.20 656,718,385.20
payables
Current 1,669.10 1,669.10 1,669.10
portion for
other
non-current
liabilities
Subtotal 1,093,070,904.49 1,093,132,196.61 1,092,124,730.90 1,007,465.71
Note: Refer to Note V-(44) for the difference between the beginning balance and ending balance in prior period
(31 December 2018) for details.
(III) Market Risk
Market risk means the fluctuation risk of the fair value of financial instruments or the future cash flow due to
market price changes.
1. Interest rate risk
Interest rate risk means the fluctuation risk of the fair value of financial instruments or the future cash flow due to
changes of market interest rate.The Company has faced the interest rate risk of fair value generated from the
financial instrument with interest of fixed rate, and the interest rate risk of cash flows generated from financial
instrument with interest of floating interestrate. The Companywill determined the proportion between the financial
instrument with interest of fixed rate and floating interest rate according to the market environment, as well as
review regularly, supervise and maintain appropriate portfolio of financial instrument. The interest rate risk of
cash flows facing the Company is mainly related to the bank loans calculated by floating interest rate of the
Company.
As of 31 December 2019, under the assumption of fixed variables with 50 basis points changed in interest rate, the
bank loan with RMB2,193,933,000.00(RMB1,000,000.00 on 31 December 2018) calculated at floating rate will
not result in significant influence on total profit and shareholders’ equity of the Company.
2. Foreign exchange risk
Foreign exchange rate refers to the risk that may lead to the changes of fair value of financial instruments or future
cash flows due to fluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly
related to foreign currency monetary assets and liabilities of the Company.The Company operates in mainland
China, and the main activities are recorded by renminbi. Thus, the foreign exchange market risk undertaken is
insignificant for the Company.
Refer to Note V-(V) 2 for the information of foreign currency monetary assets and liabilities at the period-end for
244
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
details.
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
(III) Other equity instrument
1,580,475.86 1,580,475.86
investment
Total amount of assets at fair
1,580,475.86 1,580,475.86
value
II. Inconsistent fair value
-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
Other equity instrument held by the Company belongs to stocks of listed company, of which the closing price of
stock exchange on 31 December 2019 shall be regarded as the fair value.
245
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
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
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
9. Other
XII. Related Party and Related-party Transactions
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
Registration
Name Nature of business Registered capital Company as the Company as the
place
parent against the parent against the
Company (%) Company (%)
Shenzhen Investment Managing
Shenzhen RMB25,349 million 63.82% 63.82%
Holdings Co., Ltd. state-owned assets
Notes: Information on the Company as the parent
The Company as the parent of the Company is Shenzhen Investment Holdings Co., Ltd., a newly-established and organized
state-owned capital investment company based on the original three state-owned assets management companies in October 2004,
among which the main function is to manage the partial municipal state-owned companies according to the authorization of
Municipal SASAC. 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.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen
Government.
Other notes:
2. Subsidiaries of the Company
Refer to Note IX-(I) Equity in Significant Subsidiary for details.
246
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX-3 for details about significant joint ventures or associated enterprises.
Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in Reporting
Period, or forming balance due to related-party transactions made in previous period:
Name Relationship with the Company
Other notes
4. Information on Other Related Parties
Name Relationship with the Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Investment Holdings Co., Ltd.
Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Bay Technology Development Co., Ltd.
Company
The Company as the parent of Xinhai Rongyao of subsidiary
Shenzhen Xinhai holding Co., Ltd.
Rongyao Real Estate by non-controlling interests
Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. Subsidiary Rongyao Real Estate by non-controlling interests
Wholly-owned subsidiary of Shenzhen Bay Technology
Shenzhen Hi-tech Zone Development Construction Co., Ltd
Development Co., Ltd.
Shenzhen Real Estate Jifa Warehousing Co., Ltd. Joint venture of the Company
Shenzhen Tian’an International Mansion Property Administration
Joint venture of the Company
Co., Ltd.
Shenzhen Wufang Ceramics Industrial Co., Ltd. Associated enterprise of the Company
Other notes
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Related party Content Reporting Period
credit credit or not year
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Shenzhen Bay Technology
Property management 30,371,848.90 48,262,643.06
Development Co., Ltd
247
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen Hi-tech Zone
Development Construction Co., Property management 1,420,903.83 526,391.41
Ltd.
Notes on acquisition of goods and reception of labor service
(2) Information on Related-party Trusteeship/Contract
Lists of 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
Shenzhen
Shenzhen
Toukong
Shentou Property Investment
Property 6 November 2019 5 November 2025 Market pricing 4,552,437.91
Development property
Management Co.,
Co., Ltd.
Ltd.
Notes:
Lists of entrust/contractee
Unit: RMB
Name of the Name of the Charge
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in this
ee contractor Reporting Period
Notes:
(3) Information on Related-party 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
Shenzhen Shentou Property
Investment property 373,194.96 365,868.00
Development Co., Ltd.
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
Notes:
248
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(4) Information on Related-party 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:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related party Amount Start date End date Note
Borrowing
Shenzhen Real Estate Jifa No specific repayment
6,500,000.00 22 July 2019
Warehousing Co., Ltd. period
Lending
249
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
In 2019, the Company
acquired 69% equity of
Shenzhen Rongyao Real
Estate Development co., ltd
(hereinafter referred to as
“Rongyao Real Estate”)
through business
combination under different
control. On the day of merger
and acquisition, Shenzhen
Rongyao Real Estate
Development Co., Ltd. Shall
received a total of
RMB1,390.6049 million
from the former controlling
shareholder Shenzhen Xinhai
Rongyao Real Estate
Development Co., Ltd.
(hereinafter referred to as
“Xinhai Rongyao”) and the
parent company Shenzhen
Shenzhen Xinhai Holding
551,499,990.18 31 July 2018 Xinhai Holdings Co., Ltd.
Co., Ltd.
(hereinafter referred to as
“Xinhai Holdings”). For this
transaction, ShenZhen
Properties & Resources
Development (Group) Ltd.
has made repayment
arrangements with relevant
parties and signed relevant
repayment agreement, which
stipulates that Xinhai
Rongyao and Xinhai Holding
will pay the abovementioned
debts with the balance of
equity transfer fund of
RMB408 million. As for the
repayment plan with the
remaining balance of
RMB982.6049 million: in the
first stage, RMB100 million
shall be repaid during the
demolition of the project;
250
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
in the second stage,
RMB582.6049 million shall
be paid off within 3 months
from the date of completion
of the project (subject to the
signing of the compensation
and resettlement agreement
for the relocation of all
properties within the scope of
the project); in the third
stage, the remaining
RMB300 million can be
extended until the project is
completely liquidated within
one year from the date of
completion of demolition,
but the loan interest shall be
paid at an annual interest rate
of 11% per day to Rongyao
Real Estate from the date of
completion of demolition to
the date of completion of
loan repayment. According to
the terms of the agreement,
Xinhai Rongyao pledged
31% of equity in Rongyao
Estate as the guarantee of
implementation of the
repayment obligation to the
Company. As of the issuance
of the report, the above
pledge procedure hasn’t been
completed.
As of 31 December 2019, the
demolition progress of the
project has not reached the
repayment node of the
second stage, and the balance
due from Xinhai Rongyao
Real Estate and Xinhai
Holdings is RMB881.9729
million.
251
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen Xinhai Rongyao
Real Estate Development Co., 330,472,932.33 22 June 2018 The same
Ltd.
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
Related 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
Remuneration for key management
11,861,114.20 9,764,725.59
personnel
(8) Other Related-party Transactions
Projects Investment Status of Core Staff
To advocate the core staff of the group to share the operating results of market-oriented projects with the Company, share the
operating risks, stimulate their endogenous power to improve efficiency and increase benefits, further improve the project turnover
rate, reduce the risks of land acquisition, development and operation, improve the asset management efficiency and to realize the
maintenance and appreciation of state-owned assets, through the standardized and scientific design of investment follow-up
mechanism and the establishment of the group's long-term incentive and restraint mechanism, the Company has formulated the Staff
Follow-up Investment Management Measures. According to the above management measures, follow-up investment matters will
form related transactions of the joint investment with some core staff of the Company. As of 31 December 2019, the core staff of the
Company has contributed a total of one item within the scope of the consolidated statement of follow-up investment through cash.
The actual investment of follow-up investment is RMB40 million. There is no accumulated back-up fund. The follow-up investment
of the item is as follows:
Item Total amount Accumulative return
Bangling urban renewal project (Note) 40,000,000.00
Note: Bangling urban renewal project belongs to the urban renewal project of Shenzhen Rongyao Real Estate Development Co., Ltd.,
the subsidiary of the Company, located at Guihua Road, Longhua District, Shenzhen. The project is in the early stage of demolition
currently, and after the demolition, the development construction land will be expected to cover 68, 400 square meters with capacity
building area of 434, 600 square meters as well as RMB6, 433 million in the expected total investment of the project.
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Item Related party Ending balance Beginning balance
252
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Carrying amount Bad debt provision Carrying amount Bad debt provision
Shenzhen Bay
Technology
Accounts receivable 93,790,305.70 4,689,515.29 54,061,752.12 2,703,087.61
Development Co.,
Ltd.
Shenzhen Hi-tech
Zone Development
1,045,589.81 31,367.69 669,862.82 20,095.88
Construction Co.,
Ltd.
Subtotal 94,835,895.51 4,720,882.98 54,731,614.94 2,723,183.49
Shenzhen Xinhai
Other receivables 551,499,990.18 1,057,899,990.18
Holding Co., Ltd.
Shenzhen Xinhai
Rongyao Real Estate
330,472,932.33 332,072,932.33
Development Co.,
Ltd.
Shenzhen Hi-tech
Zone Development
138,689.46 69,344.73 281,062.74 84,318.82
Construction Co.,
Ltd.
Shenzhen Wufang
Ceramics Industrial 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
Co., Ltd.
Subtotal 883,858,876.22 1,816,608.98 1,392,001,249.50 1,831,583.07
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Shenzhen Real Estate Jifa Warehousing
Other payables 35,796,665.14 29,296,665.14
Co., Ltd.
Shenzhen Tian’an International
Mansion Property Administration Co., 5,214,345.90 5,214,345.90
Ltd.
Subtotal 41,011,011.04 34,511,011.04
253
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
7. Commitments of Related Party
8. Other
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
5. Other
XIV. Commitments and Contingency
1. Significant Commitments
Significant Contingency on Balance Sheet Date
1. Large amount contract signed under performance or performance preparation
Item Reporting period Same period of last year
Signed but derecognized in financial statements
—Large amount contract 145,501,513.44 11,355,909.38
2. Contingency
(1) Significant Contingency on Balance Sheet Date
1) Contingent liabilities formed by pending action and financial influence
①The action about transferring Jiabin Building contentious matter
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong Property
Development Co., Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed, the Company
subsequently filed a series of lawsuits against the parties involved in the project, but the outcome was not favorable to the Company.
Therefore, the Company calculated and withdrew bad-debt provisions for accounts receivable from Jiyong Company in full in past
years for the transfer of Jiabin Building. On October 31, 2018, Shenzhen Intermediate People’s Court made a civil award and ruled
that the Company’s application for the bankruptcy of Jiyong Company would not be accepted. The Company refused to accept such
254
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
ruling and has appealed to Shenzhen Intermediate People’s Court. As of the issuance date of the report, there is no new progress in
the case.
② Lawsuit items regarding disputes over environmental pollution liability of Fuchang Building Phase II
On 24 May 2019, the Futian District Indemnificatory Talent Housing Project “Fuhuihuayuan, Fuchang Building Phase II” developed
by the Company officially started. The plaintiffs Feng Shuiping and other 180 people filed a civil lawsuit against the Company and
the Second Construction Engineering Co., Ltd. of China Construction Third Engineering Bureau Co., Ltd. (hereinafter referred to as
“The Third Construction Bureau”). The plaintiffs claimed the amount of personal injury compensation at the standard of RMB300
per day during the construction period and the total amount of the subject matter involved in the series of cases was RMB8.154
million. The court initially fixed the court date as 10 December 2019, while another defendant, The Third Construction Bureau filed
a jurisdictional objection with the court. The original court date decided by the court of the first instance was postponed. As of the
issuance date of the report, the notice of the court date has not been received from the court of the first instance. As the court decision
has not yet been obtained, the Company has not accrued the estimated liabilities for the above cases.\
③Lawsuit items regarding Lvxinyuan Company contract dispute
On 23 October 2018, Shenzhen Huazhengpeng Property Management Development Co., Ltd. (hereinafter referred to as
“Huazhengpeng”), a subsidiary of the Company, was sued by the plaintiff Shenzhen Lvxinyuan Agricultural Products Co., Ltd.
(hereinafter referred to as Lvxinyuan) for a dispute over the sales contract. On 11 March 2019, the court ruled that Huazhengpeng
had to pay Lvxinyuan good payments and the interest altogether RMB593,579.23, and the bank account balance under
Huazhengpeng's name was deducted RMB111,545.36 during the enforcement process by the court, and the account of Huazhengpeng
Company was frozen, at this point, there are no executable assets under Huazhengpeng's name. This year, Huazhengpeng accrued an
estimated liability of RMB 482,033.87 according to the compensation amount to be paid.
④ Lawsuit items regarding Cai Xuesen's contract dispute
On 10 August 2005, Shenzhen Taixinli Property Management Co., Ltd. (hereinafter referred to as “Taixinli”), a subsidiary of the
Company, leased two lands located beside original Songgang toll station of national highway 107 to Cai Xuesen (natural person) for
the construction of a factory building. Due to the land can only be used for education, Cai Xuesen was unable to obtain a work permit.
Therefore, on 30 June 2008, Cai Xuesen filed a lawsuit to the court on the ground that Taixinli deliberately concealed the fact that
they had no land use right, and made him impossible to start construction at the agreed time. On 13 January 2019, Shenzhen
Intermediate People’s Court made a final judgment on the case, demanding Taixinli to repay Cai Xuesen’s losses altogether
RMB749,398.00. The Company has fully accrued the estimated liabilities for the above amount.
⑤ Lawsuit items regarding Lubanhang’s contract disputes
On 23 July 2014, Shenzhen Taixinli Property Management Co., Ltd. (hereinafter referred to as “Taixinli”), a subsidiary of the
Company, signed Supervision Service Contract with Guangdong Lubanhang Technology Co., Ltd. (hereinafter referred to as
“Lubanhang”) regarding Yupin Luanshan project. The project was suspended in 2016 for some reason, so Lubanhang filed a lawsuit
with Shenzhen Bao’an District People's Court on 31 March 2019, required to dissolve the Supervision Service Contract and pay
supervision service fees and interest, etc altogether RMB7,063,237.32, and proposed to the court for property preservation and freeze
the total amount of RMB7,063,237.32 in the account of Taixinli Company. On 5 November 2019, the court ruled in the first instance
that Taixinli should pay part of the supervision service fees and corresponding interest according to the fault liability. Accordingly,
the Company has accrued the estimated liability of RMB1,671,896.00 according to the judgment result of the court.
2) Contingent liabilities formed by debt guarantee provided for other units and financial influence
① As a real estate developer, the Company has provided mortgage guarantees for commercial housing purchasers and paid loan
guarantees according to real estate business practices. As of 31 December 2019, the balance of the cash deposit that have not been
released is RMB1,117,507.63. That guarantee will be released on the date when the mortgage money is paid off.
② The Company and its subsidiaries provide mortgage guarantees for commercial housing purchasers according to the real estate
business practice. The purchaser uses the purchased commercial housing as collateral. The guarantee amount that has not been settled
as of 31 December 2019 is RMB1,812,240,875.59 and since so far, purchasers have not defaulted, and the current market price of
255
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
these properties is higher than the selling price, the Company believes that the risks associated with providing such guarantees are
relatively low.
(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
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 214,552,473.12
Reviewed and approved profits or dividends declared to distribute 214,552,473.12
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
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
256
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
2. Debt Restructuring
Not applicable
3. Assets Replacement
(1) Non-monetary Assets Exchange
Not applicable
(2) Other Assets Replacement
Not applicable
4. Pension Plans
Not applicable
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
Shenzhen Hefeng
Property
0.00 928,469.09 68,776.81 0.00 68,776.81 68,776.81
Management Co.,
Ltd.
Other notes
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
The factors considered to determine the reportable segment
In accordance with the internal organization structure, management requirements and internal report system, the
Company identified the reportable segments based on the product segment and assessed the operational
performance of ivory business, printing business and latex business. The assets and liabilities sharing with other
segments shall be proportionally distributed among segments by scales.
257
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(2) The Financial Information of Reportable Segment
Unit: RMB
Property Offset among
Item Real estate Catering service Others Total
management segment
Main operation
2,733,576,693.98 1,149,248,827.13 25,233,345.26 6,164,659.54 -35,409,739.92 3,878,813,785.99
revenue
Main operation
487,948,623.15 944,077,821.52 23,764,400.05 3,335,375.68 -46,906,089.99 1,412,220,130.41
cost
Total assets 14,198,271,884.51 1,518,565,388.80 3,858,917.20 2,265,195.50 -4,950,469,645.48 10,772,491,740.53
Total liabilities 11,419,730,032.77 1,081,903,366.20 3,048,272.47 3,322,033.01 -5,002,079,265.11 7,505,924,439.34
(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
(4) Other notes
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
8. Other
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Notes Receivable and 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 Withdraw
Carrying Carrying
Proportio wal Proportio al
Amount Amount value Amount Amount value
n proportio n proportio
n n
Accounts receivable
for which bad debt 96,702,2 96,702,2 96,702,26 96,702,26
99.16% 100.00% 0.00 99.16% 100.00%
provision separately 69.40 69.40 9.40 9.40
accrued
Of which:
258
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Accounts receivable
withdrawal of bad 820,241. 64,309.1 755,932.1 1,940,446 1,853,494.7
0.84% 7.84% 1.97% 86,951.65 4.48%
debt provision by 30 6 4 .37 2
group
Of which:
97,522,5 96,766,5 755,932.1 98,642,71 96,789,22 1,853,494.7
Total 100.00% 99.22% 100.00% 98.12%
10.70 78.56 4 5.77 1.05 2
Accounts receivable for which bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Shenzhen Jiyong
Involved in lawsuit and
Properties & Resources 93,811,328.05 93,811,328.05 100.00%
with no executable property
Development Company
Shenzhen Tewei Long aging and expected
2,836,561.00 2,836,561.00 100.00%
Industrial Co., Ltd. unrecoverable
Luohu District Economic Long aging and expected
54,380.35 54,380.35 100.00%
Development Company unrecoverable
Total 96,702,269.40 96,702,269.40 -- --
Accounts receivable for which bad debt provision separately accrued: RMB96,702,269.40
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Accounts receivable for which bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Withdrawal of bad debt provision by group: RMB64,309.16
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk features 820,241.30 64,309.16 7.84%
Notes to the determination basis for the group:
For details, please refer to Part X Financial Statement-V-10.
Withdrawal of bad debt provision by group:
Unit: RMB
Name Ending balance
259
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 253,070.99 7,592.13 3.00%
1 to 2 years 567,170.31 56,717.03 10.00%
Total 820,241.30 64,309.16 --
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accountsreceivable.
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 253,070.99
1 to 2 years 567,170.31
Over 3 years 96,702,269.40
Over 5 years 96,702,269.40
Total 97,522,510.70
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period:
Unit: RMB
Beginning Changes in the Reporting Period
Category Ending balance
balance Withdrawal Reversal or recovery Write-off
Bad debt provision
96,702,269.40 96,702,269.40
withdrawn separately
Bad debt provision
86,951.65 22,642.49 64,309.16
withdrawn by group
Total 96,789,221.05 22,642.49 96,766,578.56
Of which significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
260
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(3) 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
Notes to verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Ending balance of accounts Proportion to the total ending balance Ending balance of bad
Name of entity
receivable of accounts receivable (%) debt provision
Shenzhen Jiyong Properties &
93,811,328.05 96.19% 93,811,328.05
Resources Development Company
Shenzhen Tewei Industry Co., Ltd. 2,836,561.00 2.91% 2,836,561.00
Shenzhen Rainbow Department
567,170.31 0.58% 567,170.31
Store Co., Ltd.
Shenzhen Garwon Restaurant
90,956.00 0.09% 2,728.68
Chains Co., Ltd.
Luohu District Economic
54,380.35 0.06% 54,380.35
Development Company
Total 97,360,395.71 99.83%
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement of
Accounts Receivable
Other notes:
2. Other Accounts Receivable
Unit: RMB
Item Ending balance Beginning balance
Other accounts receivable 501,082,153.81 1,298,486,323.35
Total 501,082,153.81 1,298,486,323.35
261
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and its
judgment basis
Other notes:
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Item (or investees) Ending balance Beginning balance
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
Whether occurred
Item (or investees) Ending balance Aging Reason impairment and its
judgment basis
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
262
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Nature Ending carrying amount Beginning carrying amount
Guarantee deposit 2,139,511.80 2,218,894.63
Petty cash 174,311.00
Payment on behalf 16,557.82 511,835.47
External intercourse funds 23,164,046.99 23,110,568.22
Intercourse funds to subsidiary 508,280,508.64 1,305,603,603.25
Total 533,600,625.25 1,331,619,212.57
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Bad debt provision Expected credit loss Total
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
33,132,889.22 33,132,889.22
2019
Balance of 1 January
2019 in the current —— —— —— ——
period
Reversal of the current
614,417.78 614,417.78
period
Balance of 31 December
32,518,471.44 32,518,471.44
2019
Changes of carrying amount with significant amount changed of loss provision in the Reporting Period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 years (including 1 year) 10,420,103.68
1 to 2 years 6,685,717.35
2 to 3 years 281,704,128.54
Over 3 years 234,790,675.68
3to 4 years 42,409,836.60
4to 5 years 5,644,887.62
Over 5 years 186,735,951.46
Total 533,600,625.25
263
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Beginning Changes in the Reporting Period
Category Ending balance
balance Withdrawal Reversal or recovery Write-off
Bad debt provision 33,132,889.22 614,417.78 32,518,471.44
Total 33,132,889.22 614,417.78 32,518,471.44
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
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount
Of which the verification of significant other receivables:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to ending Ending balance of
Name of the entity Nature Ending balance Aging balance of total bad debt
other receivables% provision
SZPRD Xuzhou Dapeng Real Intercourse funds to
222,088,221.77 1 to 3 years 38.18%
Estate Development Co., Ltd. subsidiary
Shum Yip Properties Development Intercourse funds to
109,963,975.18 Over 5 years 18.91% 7,266,277.17
Limited subsidiary
Shenzhen Huangcheng Property Intercourse funds to
66,865,906.77 2 to 3 years 11.49%
Management Co., Ltd. subsidiary
SZPRD Yangzhou Real Estate Intercourse funds to
42,409,836.60 3 to 4 years 7.29%
Development Co., Ltd. subsidiary
264
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shanghai Yutong Real Estate Co., External intercourse
5,676,000.00 Over 5 years 0.98% 5,676,000.00
Ltd. funds
Total -- 447,003,940.32 -- 76.84% 12,942,277.17
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Other notes:
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
1,095,429,880.39 69,964,000.00 1,025,465,880.39 269,466,672.93 69,964,000.00 199,502,672.93
subsidiaries
Investment to
joint ventures and
64,059,736.86 18,983,614.14 45,076,122.72 58,982,897.38 18,983,614.14 39,999,283.24
associated
enterprises
Total 1,159,489,617.25 88,947,614.14 1,070,542,003.11 328,449,570.31 88,947,614.14 239,501,956.17
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease
Beginning Ending balance
Depreciation Ending balance
Investee balance Additional Reduced of depreciation
reserve Other (carrying value)
(carrying value) investment investment reserve
withdrawn
265
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen
Huangcheng
35,552,671.93 35,552,671.93
Real 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
20,000,000.00 20,000,000.00
Property
Management
Co., Ltd.
Shenzhen
International
Trade Center 1.00 1.00 1,600,000.00
Catering Co.,
Ltd.
Shenzhen
Property
Construction 3,000,000.00 3,000,000.00
Supervision Co.,
Ltd.
SZPRD
Housing Assets
Operation and 40,000,000.00 40,000,000.00
Management
Co., Ltd.
266
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Zhanjiang
Shenzhen Real
Estate 0.00 0.00 2,530,000.00
Development
Co., Ltd.
Shum Yip
Properties
0.00 0.00 15,834,000.00
Development
Co., Ltd.
SZPRD Xuzhou
Dapeng Real
Estate 0.00 0.00 50,000,000.00
Development
Co., Ltd.
Shenzhen
Rongyao Real
Estate 508,000,000.00 508,000,000.00
Development
Co., Ltd.
Shenzhen
Toukong
Property 317,963,207.46 317,963,207.46
Management
Co., Ltd.
Total 199,502,672.93 825,963,207.46 1,025,465,880.39 69,964,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Beginnin Cash Withdraw Ending balance
Additiona losses nt of
g balance Reduced Changes bonus or al of balance of
Investee l recognize other
(carrying investmen of other profits impairme Other (carrying depreciati
investmen d under comprehe
value) t equity announce nt value) on
t the equity nsive
d to issue provision reserve
method income
I. Joint ventures
267
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Shenzhen
Real
Estate
34,103,84 4,510,931 38,614,77
Jifa
0.40 .26 1.66
Warehous
ing Co.,
Ltd.
Tian’an
Internatio
nal
Building
Property 5,895,442 565,908.2 6,461,351
Managem .84 2 .06
ent
Company
of
Shenzhen
39,999,28 5,076,839 45,076,12
Subtotal
3.24 .48 2.72
II. Associated enterprises
Shenzhen
Wufang
18,983,61
Ceramics
4.14
Industrial
Co., Ltd.
18,983,61
Subtotal
4.14
39,999,28 5,076,839 45,076,12 18,983,61
Total
3.24 .48 2.72 4.14
(3) Other Notes
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 393,330,909.38 60,386,026.23 1,279,701,193.52 224,508,410.48
Other operations 1,319,976.00 943,396.23 1,319,976.00
Total 393,330,909.38 61,706,002.23 1,280,644,589.75 225,828,386.48
Whether the Company has executed the new income standards
268
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
□ Yes √ No
Other notes:
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
5,076,839.48 1,268,890.28
accounted by equity method
Investment income from disposal of
565,632.29
long-term equity investment
Investment income of financial instrument
81,620,807.16
during holding period
Total 86,697,646.64 1,834,522.57
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
47,015.23
assets
Government grants recognized in the Current
Period, except for those acquired in the
ordinary course of business or granted at 2,410,184.82
certain quotas or amounts according to the
government’s unified standards
Current net gains and losses of subsidiaries
acquired in business combination under the
118,680,871.93
same control from period-begin to
combination date
Other non-operating income and expense
2,048,751.21
other than the above
Project confirmed with the definition of
91,337.56
non-recurring gains and losses
269
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Less: Income tax effects 1,146,936.51
Non-controllinginterests effects 645.31
Total 122,130,578.93 --
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
20.467% 1.3722 1.3722
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
19.82% 1.1673 1.1673
deduction of non-recurring profit or
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
4. Other
270
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2019
Part XIII 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
(accounting supervisor);
II. The original copy of the Independent Auditor’s Report with the seal of the CPA
firm as well as the signatures and seals of the certified public accountants; and
III. The originals of all the Company’s documents and announcements disclosed to
the public via newspapers designated by the CSRC in the Reporting Period.
271
