ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
Stock Code: 000011, 200011 Stock Name: PRD, PRD-B Announcement No. 2020-35
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT
(GROUP) LTD.
INTERIM REPORT 2020 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the Interim Report of ShenZhen Properties & Resources Development (Group) Ltd.
(together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full
understanding of the Company’s operating results, financial condition and future development plans, investors should carefully read
the aforesaid full text, which has been disclosed together with this Summary on the media designated by the China Securities
Regulatory Commission (the “CSRC”).
Except for the following directors, all the other directors attended in person the Board meeting for the review of this Repor t and its
summary.
Reason for not attending
Name Office title Proxy
meeting in person
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese versions shall prevail.
Part II Key Corporate Information
1. Stock Profile
Stock name PRD, PRD-B Stock code 000011, 200011
Stock exchange for stock
Shenzhen Stock Exchange
listing
Contact information Board Secretary Securities Representative
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
Name Fan Weiping
Qian Zhong and Ding Minghua
39/F, International Trade Center, Renmin South 39/F, International Trade Center, Renmin South
Office address Road, Luohu District, Shenzhen, Guangdong Road, Luohu District, Shenzhen, Guangdong
Province, P.R.China Province, P.R.China
Tel. 0755-82211020 0755-82211020
E-mail address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Business combination under common control
H1 2019 Change (%)
H1 2020
Before Restated Restated
Operating revenue (RMB) 1,421,077,767.83 755,390,079.96 1,065,480,882.30 33.37%
Net profit attributable to the listed
211,967,734.76 103,749,398.16 155,922,425.40 35.94%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 210,621,623.38 103,686,185.29 103,686,185.29 103.13%
exceptional gains and losses (RMB)
Net cash generated from/used in operating
-1,623,182,138.90 -459,952,236.98 -396,688,011.70 309.18%
activities (RMB)
Basic earnings per share (RMB/share) 0.3557 0.1741 0.2616 35.97%
Diluted earnings per share (RMB/share) 0.3557 0.1741 0.2616 35.97%
Weighted average return on equity (%) 6.66% 3.09% 4.19% 2.47%
31 December 2019 Change (%)
30 June 2020
Before Restated Restated
Total assets (RMB) 10,948,847,072.58 10,772,491,740.53 10,772,491,740.53 1.64%
Equity attributable to the listed company’s
3,145,941,136.36 3,147,949,009.38 3,147,949,009.38 -0.06%
shareholders (RMB)
3. Shareholders and Their Holdings as at the End of the Reporting Period
Unit: share
Number of preferred
shareholders with
Number of ordinary shareholders 42,099 0
resumed voting rights (if
any)
Top 10 shareholders
Nature of Shareholding Number of Restricted ordinary Shares in pledge or frozen
Name of shareholder
shareholder percentage shares shares Status Shares
Shenzhen Investment State-owned legal
57.96% 345,412,223 3,326
Holdings Corporation person
China Orient Asset State-owned legal
5.87% 34,970,000 0
Management Co., Ltd. person
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
ICBC- Fullgoal
Growth Selected
Open-End Dynamic
Asset Allocation Other 0.62% 3,682,638 0
Mixed Type Securities
Fund with A Fixed
Period of 3 Years
ICBC-Hua An
Mid-cap and
Small-cap Growth Other 0.41% 2,458,951 0
Mixed Type Securities
Investment Fund
Domestic natural
Duan Shaoteng 0.30% 1,777,555 0
person
Shenzhen Duty-Free Domestic
Commodity non-state-owned 0.29% 1,730,300 1,730,300
Enterprises Co., Ltd. legal person
Industrial Bank Co.,
Ltd.- ICBC Credit
Suisse Financial Real
Other 0.24% 1,439,900 0
Estate Industry Mixed
Type Securities
Investment Fund
Domestic natural
Yang Yaochu 0.24% 1,425,020 0
person
National Social
Security Fund 504 Other 0.22% 1,308,200 0
Portfolio
Domestic natural
Mai Furong 0.20% 1,221,500 0
person
The largest shareholder Shenzhen Investment Holding Corporation is the actual
Related or acting-in-concert parties among
controlling shareholder of the Company. And the Company does not know whether
the shareholders above
there are related parties or acting-in-concert parties among the other 9 shareholders.
Shareholders involved in securities margin
N/A
trading (if any)
4. Change of the Controlling Shareholder or the Actual Controller in the Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
6. Corporate bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of t his
Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
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.
In the first half year of 2020, the epidemic caused by the novel coronavirus produced big impa ct on the country’s overall economy
and real estate market. As an effort to counter the impact, China substantially increased the effort in the counter-cyclical adjustment
to its macro policy, leading to more flexible implementation of policies according t o local conditions of different cities. During the
Reporting Period, the overall development of the real estate industry in China took on the following characteristics:
In terms of policy, the industrial fund environment was quite relaxed in the context of “six stabilities and six guarantees”. At the
same time, greater efforts were made in driving new urbanization and promoting regional development strategies. Measures such as
delegating the authority for land approval, improving the market-based allocation of factors of production, and accelerating the
renovation of aged and dilapidated residences, were beneficial to the medium- and long-term development of the real estate industry.
In terms of real estate control, the central government persisted in the positioning of “Houses are for living in, not for speculating on” ,
with continuously strict financial regulation over the real estate sector. Local governments in many places introduced real e state
supporting policies from both supply and demand ends. They stuck to the bottom line of “housing purchase restriction and loan
restriction”, and promoted the stable operations of the real estate market by easing restrictions for household register policies,
lowering the threshold for talent introduction, and increasing housing subsidies.
In terms of market volume and price, the real estate experienced from depression to continuous recovery. From the perspective of
price, according to the data of China’s real estate index system, the cumulative rise in the average price of newly built residences in
100 cities was the lowest for the same period in recent five years; the month-on-month rise had increased slightly since March; and
the cumulative increase in the price for the first half year dropped by 0.18% to 1.27% compared to the same period of last year. In
terms of transaction volume, the year-on-year drops in both new and secondhand houses reached the peak in recent years. Within a
short period, the regular epidemic prevention and control and the economic development pressure will increase the instability of the
real estate market.
In terms of transaction structure, affected by factors such as city fundamentals and the development stages of real estate ma rket, the
market differentiation trend was obvious in different cities, with some popular cities witnessing a strong momentum in the recovery
of demands and faster release of improvement demands. As the epidemic impact weakens in the future, market transaction volume is
expected to continuously recover, with great room for the release of improvement demands, and the proportion of mid- and high-end
quality projects expected to rise.
In terms of land market, the market launch of land for houses increased by a small margin in the first half year, with a slig ht fall in
transactions. The central bank continued to maintain reasonably sufficient liquidity through positive monetary measures, includin g
cutting the reserve requirement ratio and interest rates. Some enterprises are facing less pressure for funds. The land marke t is
expected to develop towards rationality, but remain popular in some favored cities.
(I) Characteristics of the Company’s Main Business Operations
First, the Company’s city space development stood out from other segments and sustained the challenges of the epidemic. In
the first half year, the Company achieved operating revenue of RMB859 million from its real estate business, accounting for 6 0.43%
of the total revenue, representing a growth rate of as much as 82.71% year-on-year; and the gross profit margin reached 82.55%,
representing a growth of 12.58% year-on-year. During the Reporting Period, the revenue from real estate mainly comprised RMB807
million from SZPRD-Golden Collar’s Resort, RMB18 million from SZPRD-Banshan Yujing, and RMB17 million from
SZPRD-Songhu Langyuan, with SZPRD-Golden Collar’s Resort contributing the majority of the substantial growth in revenue and
gross profit. In addition, Fuchang Phase II, Yupinluanshan Garden and Fuyuan Industrial Park were advanced orderly; Shenzhen
Rongyao Real Estate Development Co., Ltd., SZPRD Yangzhou Real Estate Development Co., Ltd. and SZPRD Xuzhou Dapeng
Real Estate Development Co., Ltd. maintained normal operations under the impact of COVID-19, and will drive the progress of all
projects in the second half year.
Second, the Company’s property management saw growth in stability with continued faster market expansion. In the first half
year, under the impact of COVID-19, some subsidiaries experienced low collection rates of property management fees but higher
costs in the epidemic prevention and control. In light of the situation, the Company proactively took countermeasures by taking the
initiative to communicate with customers and steadily promoting the normal operations of projects under management. During the
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
Reporting Period, the Company achieved operating revenue of RMB491 million from its property management business, accounting
for 34.52% of the total revenue and remaining the second biggest source of operating revenue; and the gross profit margin was
14.73%, representing a slight increase year-on-year. The Company climbed to the 27th place in the ranking among China’s top 100
property services for comprehensive competency, with continuously rising brand values and expanded market influence. In the
second half year, the Company will proactively drive the market development of its property management business, improve serv ice
quality, enhance customer loyalty, and achieve the growth of projects in stock and the advancement of new projects.
Third, the Company’s industrial ecosystem operations and other segments were advanced orderly, with achievements made
from the strategy of diversified operations. Housing Assets Operation and Management Company grasped the development
opportunity brought by the transformation and upgrading for the post-pandemic era, fully implemented the rental exemption policy,
and took effective measures to maintain quality customers. Steady progress was made as scheduled in a number of projects, inc luding
the Six-Storey Building at Yingchun Road in Luohu, Food Court in the International Trade Center, and Fumin Complex. Supervision
Company performed supervision over a group of key projects, including refined decorations of SZPRD-Golden Collar’s Resort, and
decoration works of Fuchang Phase II, Xuzhou Phase II and International Trade Building, continued to step up efforts in expansion,
and acquired external projects through multiple channels. Guomao Catering was in business suspension due to decoration works.
While cooperating with the restaurants in the decoration and renovation works, Guomao Catering carried out market survey,
developed new dishes, and improved the standard management mechanism for catering services. It increased efforts in the publicity
before opening to enhance the brand visibility and professional service quality, demonstrating the new vitality, new start point and
new height of Shenzhen International Trade Revolving Restaurant as a “time-honored” catering brand.
(II) Progress of Major Projects under Construction
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.
1. New additions to the land bank
There were no new additions to the Company’s land bank during the Reporting Period.
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 61.33 61.33
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
15.8 - -
City
Total 29.83 83.58 83.58
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.
3. Development status of major projects
Floor
Cumulat
area that
Time Planned ive floor
% that complet Estimat Cumulat
for floor area that
The has ed ed total ive
commen % area has
City/reg Name of Locatio Compan complet Site area with construc complet investm investm
Usage cement develop
ion project n y’s ed （㎡） plot
tion in
ed ent ent
of ed
interest construc the (RMB’0 (RMB’0
construc ratio construc
tion Current ,000) ,000)
tion （㎡） Period tion
（㎡）
（㎡）
Golden
Collar’s
Shenzhe Futian Residen March
Resort 100% 100% 100% 12,598 133,800 182,585 182,585 138,311 94,995
n District tial 2014
apartme
nts
Pile
Fuhui Afforda Under foundati
Shenzhe Futian Decemb
Huayua ble 100% construc on 4,274 32,050 0 0 90,439 58,377
n District er 2018
n housing tion complet
ed
Tongsha Under Interior
Xuzhou Banshan Residen March
Yujing n 100% construc and 31,537 22,605 0 0 23,581 12,738
City tial 2019
(Phase District tion exterior
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
II) decorati
on
ongoing
,
scaffold
s of
certain
building
remove
d
4. Sales status of major projects
Pre-sale/ Pre-sale/
Floor
Cumulati sales Floor sales
area
ve revenue Cumulati area revenue
The Floor area pre-sold/
Floor area pre-sold/ generate ve settled in settled in
City/re Name of Compan with plot available sold
sold in
settled the
Location Usage in the the
gion project y’s for sale the
ratio （㎡） floor Current floor Current Current
interest （㎡） area
Current
Period area (㎡) Period Period
Period
（㎡） (RMB’0, （㎡） (RMB’0,
（㎡）
000) 000)
Resident
Golden ial,
Collar’s studio
Shenz Futian 40,345.3 39,842.1 12,739.9 80,667.6
Resort apartme 100% 133,800.6 125,234.63 5,502.54 29,941
hen District 2 2 9 9
apartme nts and
nts commer
cial
80
Yangz Hangou Multi-st
Hupan 41,817.5 41,609.8
hou Road, orey, 100% 36,141.28 48,870.98 338.9 131.6 338.63 345.43
Yujing 7 1
City Yangzho Phase I
u City
80
Yangz Hangou Multi-st
Hupan 66,307.5 63,775.5
hou Road, orey, 100% 56,935.75 73,121.96 101.69 40.98 655.59 535.22
Yujing 2 8
City Yangzho Phase II
u City
6
Huashan
Road,
Tongsha
Banshan
Xuzho n 85,652.8 85,652.8
Yujing Villa 100% 53,921.82 87,447.35 0 0 2,331.54 1,802.17
u City District, 1 1
(Phase I)
Xuzhou
City,
Jiangsu
Province
6
Huashan
Road,
Banshan Tongsha Low-den
Xuzho Yujing n sity 11,035.8
100% 22,604.96 21,720.72 20,769 9,041 0 0 0
u City (Phase District, residenti 9
II) Xuzhou al units
City,
Jiangsu
Province
5. Rental status of major projects
The Company’s Rentable area Cumulative Average
Name of project Location Usage
working interest （㎡） rented area （㎡） occupancy rate
Xi Apartments Apartments for
Shenzhen 100.00% 3967 3967 100.00%
(Longyuan) long-term rental
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
Xi Apartments Apartments for
Shenzhen 100.00% 1609 1609 100.00%
(Longhua) long-term rental
Xi Apartments Apartments for
Shenzhen 100.00% 1600 1600 100.00%
(Xinhu) long-term rental
Food Court in the
International Shenzhen Commercial 100.00% 4080 3250 80.00%
Trade Center
Tower A of
Wenjindu Port Shenzhen Office building 75.00% 5884 5703 97.00%
Building
Haiwai Lianyi Commercial units
Shenzhen 75.00% 9788 9788 100.00%
Building and offices
Anhua Building Shenzhen Offices 75.00% 1414 757 54.00%
Training Residential
Building/Dormitor Shenzhen units/offices/com 75.00% 2796 2796 100.00%
y mercial units
Pengfu Building Shenzhen Offices 75.00% 6494 6494 100.00%
Jinfu Building Shenzhen Commercial 75.00% 1702 1702 100.00%
Jinfu Building Shenzhen Commercial 100.00% 568 568 100.00%
Residential/comm
Fuxing Garden Shenzhen 75.00% 5877 5877 100.00%
ercial
Fuxing Garden Shenzhen Commercial 100.00% 1417 1417 100.00%
Plant area in
Tangxia Town, Dongguan City Plant 75.00% 22034 22034 100.00%
Dongguan City
Pacific Business Commercial
Shenzhen 75.00% 3199 3029 95.00%
Building units/offices
Pacific Business Commercial
Shenzhen 15.00% 14889 14714 99.00%
Building units/offices
Commercial
Kangti Building Shenzhen 75.00% 2096 2096 100.00%
units/offices
Commercial
Kangti Building Shenzhen 15.00% 1147 1147 100.00%
units/offices
Commercial and
Lyuhua Building Shenzhen 75.00% 6960 6484 93.00%
residential
Shops on the
ground floor of
Tower 48 in Shenzhen Shops 75.00% 1000 1000 100.00%
Lianhua North
Village
Haonianhua Apartments and
Shenzhen 100.00% 1803 1758 98.00%
Building commercial units
Haonianhua Apartments and
Shenzhen 75.00% 2329 2233 96.00%
Building commercial units
Hostel 2 at Yuxin
Shenzhen Hostel 75.00% 3000 3000 100.00%
School
Kaifeng Garden in
Shenzhen Residential 100.00% 1307 1277 98.00%
Shangmeilin
West Tower of Commercial
Shenzhen 100.00% 13632 13632 100.00%
Baihuo Square units/offices
Nanzheng
Shenzhen Offices 100.00% 8810 6590 75.00%
Building
Building 409 in
Sangda Industrial Shenzhen Plant 100.00% 3309 3309 100.00%
Zone
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ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
Mianshui Studio
Shenzhen Apartments 100.00% 3440 3440 100.00%
Apartments
Xiangfu Building Shenzhen Commercial units 100.00% 3109 3109 100.00%
Fuyuan Industrial
Shenzhen Plant 75.00% 59596 58887 99.00%
Zone
Tonglu Industrial
Shenzhen Plant 100.00% 76886 73221 95.00%
Zone
Commercial/offic
Gonglu Building Shenzhen 75.00% 317 317 100.00%
es
Gonglu Building Shenzhen Offices 100.00% 89 89 100.00%
Jiangling
Shenzhen Plant 75.00% 10397 10397 100.00%
Industrial Zone
Commercial/offic
District 21 Shenzhen 75.00% 9514 9514 100.00%
es
Baoli Estate Shenzhen Residential 75.00% 9020 9020 100.00%
Songgang Plant Shenzhen Plant 75.00% 5700 5700 100.00%
Bulong Plant Shenzhen Plant 75.00% 7471 7471 100.00%
Huanggang Road
Shenzhen Offices 75.00% 4600 4600 100.00%
Building
Yuetong Complex Shenzhen Offices 75.00% 3044 3044 100.00%
6. Primary land development
□ Applicable √ Not applicable
7. 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 436,490.00 4%-6% 78,000.00 6,180.00 6,180.00 346,130.00
Total 436,490.00 78,000.00 6,180.00 6,180.00 346,130.00
8. Development Strategy and the Business Plan for the Coming Year
First, the Company will promote the construction of key projects, focus on project implementation, continue to strengthen
management and control over the projects’ general goals, goals for different stages, schedules and investment plans. It will focus on
driving the progress of Block C of SZPRD-Golden Collar’s Resort, Guanlan Bangling, Fuchang Phase II, Xuzhou Phase II and
Yupinluanshan. Second, the Company will make full effort to collect payment from sales, speed up recovery of investment, duly
adjust its marketing strategy based on the market situation, and grasp opportunities and timings through flexible use of multiple
marketing approaches and channels. Third, the Company will fully activate and exert the efficiency of assets operation, activate
assets in stock and improve both quality and efficiency while exercising routine leasing management. Fourth, the Company will
speed up the expansion of its property management segment, expand the brand influence, and persist in the double drive forces of
acquisition and self-expansion to rapidly achieve the expansion of property management across the country. It will co mplete the
standardization of products and services in the segment of project management to form advantages in system, brand and standard.
9. 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 30 June 2020, security deposits for such outstanding guarantees amounted to RMB 1,120,910.60,
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 30 June 2020, the outstanding guarantee
amount was RMB291,699.484.08 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.
10. Joint investments by directors, supervisors and senior management and the listed company (applic able for such
investments where the directors, supervisors and senior management are the investment entities)
√ Applicable □ Not applicable
8
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2020 (Summary)
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.
2. Matters Related to Financial Reporting
(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the Last
Accounting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the Reporting
Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
9
