ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.
SEMIANNUAL FINANCIAL REPORT 2020
August 2020
1
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Financial Statements
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
30 June 2020
Unit: RMB
Item 30 June 2020 31 December 2019
Current assets:
Monetary assets 3,078,941,673.62 3,297,890,935.91
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 282,865,426.42 216,923,663.25
Accounts receivable financing
Prepayments 84,983,434.54 69,546,774.17
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 800,159,718.50 917,981,165.74
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
2
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Inventories 5,369,131,564.81 4,913,510,876.66
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 16,500,466.62 42,500,585.94
Total current assets 9,632,582,284.51 9,458,354,001.67
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 45,233,184.51 45,076,122.72
Investments in other equity
1,134,803.13 1,580,475.86
instruments
Other non-current financial assets
Investment property 488,451,134.18 503,323,428.61
Fixed assets 89,296,825.77 93,557,782.83
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 591,207.45 700,369.66
Development costs
Goodwill
Long-term prepaid expense 6,394,067.52 7,034,472.79
Deferred income tax assets 666,441,069.33 658,153,122.73
Other non-current assets 18,722,496.18 4,711,963.66
Total non-current assets 1,316,264,788.07 1,314,137,738.86
Total assets 10,948,847,072.58 10,772,491,740.53
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
3
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Derivative financial liabilities
Notes payable
Accounts payable 536,237,338.50 577,689,139.10
Advances from customers 32,536,548.73 728,186,032.63
Contract liabilities 480,801,605.00
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 116,373,374.33 143,493,868.80
Taxes payable 1,245,432,747.80 2,598,283,291.68
Other payables 820,188,462.69 1,149,104,928.85
Including: Interest payable
Dividends payable 12,202,676.04 12,202,676.04
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
755,325,505.51 3,921,032.24
liabilities
Other current liabilities
Total current liabilities 3,986,895,582.56 5,200,678,293.30
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3,615,800,000.00 2,193,833,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions 2,903,327.87 2,903,327.87
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Deferred income 316,883.94 341,259.63
Deferred income tax liabilities 3,821.08 3,821.08
Other non-current liabilities 111,632,315.06 108,164,737.46
Total non-current liabilities 3,730,656,347.95 2,305,246,146.04
Total liabilities 7,717,551,930.51 7,505,924,439.34
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 80,488,045.38
Less: Treasury stock
Other comprehensive income -2,121,506.10 -2,698,371.44
Specific reserve
Surplus reserves 17,060,448.05 17,060,448.05
General reserve
Retained earnings 2,454,535,057.03 2,457,119,795.39
Total equity attributable to owners of
3,145,941,136.36 3,147,949,009.38
the Company as the parent
Non-controlling interests 85,354,005.71 118,618,291.81
Total owners’ equity 3,231,295,142.07 3,266,567,301.19
Total liabilities and owners’ equity 10,948,847,072.58 10,772,491,740.53
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 30 June 2020 31 December 2019
Current assets:
Monetary assets 2,154,367,596.65 2,455,001,204.14
Held-for-trading financial assets
Derivative financial assets
Notes receivable
5
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Accounts receivable 6,816,835.17 755,932.14
Accounts receivable financing
Prepayments 496,729.09 496,729.09
Other receivables 307,850,283.10 501,082,153.81
Including: Interest receivable
Dividends receivable
Inventories 629,116,380.81 624,499,208.02
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 623,156.37 1,113,935.28
Total current assets 3,099,270,981.19 3,582,949,162.48
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1,070,699,064.90 1,070,542,003.11
Investments in other equity
1,365,303.13 1,810,975.86
instruments
Other non-current financial assets
Investment property 302,442,174.75 312,638,785.76
Fixed assets 24,078,822.67 26,337,488.29
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development costs
Goodwill
Long-term prepaid expense 518,928.15 605,416.29
Deferred income tax assets 255,701,915.93 343,958,821.07
Other non-current assets 1,128,851,036.88 1,613,657,031.92
Total non-current assets 2,783,657,246.41 3,369,550,522.30
Total assets 5,882,928,227.60 6,952,499,684.78
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 39,479,676.40 64,503,938.37
Advances from customers 320,469.53
Contract liabilities
Employee benefits payable 34,698,693.85 36,735,205.68
Taxes payable 5,564,387.78 1,322,751,671.37
Other payables 2,995,125,768.00 3,146,684,268.89
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
698,988.89
liabilities
Other current liabilities
Total current liabilities 3,075,567,514.92 4,570,995,553.84
Non-current liabilities:
Long-term borrowings 616,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities 40,000,000.00 40,000,000.00
Total non-current liabilities 656,000,000.00 40,000,000.00
Total liabilities 3,731,567,514.92 4,610,995,553.84
Owners’ equity:
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 53,876,380.11 53,876,380.11
Less: Treasury stock
Other comprehensive income -2,506,414.40 -2,051,268.24
Specific reserve
Surplus reserves 16,403,637.61 16,403,637.61
Retained earnings 1,487,608,017.36 1,677,296,289.46
Total owners’ equity 2,151,360,712.68 2,341,504,130.94
Total liabilities and owners’ equity 5,882,928,227.60 6,952,499,684.78
3. Consolidated Income Statement
Unit: RMB
Item H1 2020 H1 2019
1. Revenue 1,421,077,767.83 1,065,480,882.30
Including: Operating revenue 1,421,077,767.83 1,065,480,882.30
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 1,159,861,807.33 871,169,645.40
Including: Cost of sales 611,694,943.80 599,675,528.78
Interest expense
Handling charge and
commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 394,743,480.61 125,065,024.86
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Selling expense 11,544,060.19 18,292,724.72
Administrative expense 88,433,004.35 83,229,296.11
R&D expense
Finance costs 53,446,318.38 44,907,070.93
Including: Interest
84,859,496.80 73,970,116.57
expense
Interest
-31,227,361.24 -31,182,804.42
income
Add: Other income 2,921,993.51 371,820.52
Return on investment (“-” for loss) 157,061.79 780,826.57
Including: Share of profit or loss
157,061.79 780,826.57
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
1,115,927.46 -3,911,410.39
loss)
Asset impairment loss (“-” for loss) 1,832.91 1,333,825.60
Asset disposal income (“-” for
loss)
3. Operating profit (“-” for loss) 265,412,776.17 192,886,299.20
Add: Non-operating income 4,244,175.90 6,875,418.46
Less: Non-operating expense 2,399,487.70 1,813,599.30
4. Profit before tax (“-” for loss) 267,257,464.37 197,948,118.36
Less: Income tax expense 89,394,015.71 69,721,304.50
5. Net profit (“-” for net loss) 177,863,448.66 128,226,813.86
5.1 By operating continuity
5.1.1 Net profit from continuing
177,863,448.66 128,226,813.86
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to 211,967,734.76 155,922,425.40
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
owners of the Company as the parent
5.2.1 Net profit attributable to
-34,104,286.10 -27,695,611.54
non-controlling interests
6. Other comprehensive income, net of
576,865.34 202,824.25
tax
Attributable to owners of the Company
576,865.34 202,824.25
as the parent
6.1 Items that will not be
-455,146.16
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
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
-455,146.16
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
1,032,011.50 202,824.25
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 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for investments in other debt
obligations
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising from the
translation of foreign
1,032,011.50 202,824.25
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
interests
7. Total comprehensive income 178,440,314.00 128,429,638.11
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Attributable to owners of the Company
212,544,600.10 156,125,249.65
as the parent
Attributable to non-controlling
-34,104,286.10 -27,695,611.54
interests
8. Earnings per share
8.1 Basic earnings per share 0.3557 0.2616
8.2 Diluted earnings per share 0.3557 0.2616
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees bef ore
the combinations was RMB0.00, with the amount for the same period of last year being RMB52,922,401.49.
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 H1 2020 H1 2019
1. Operating revenue 25,828,330.02 341,910,051.35
Less: Cost of sales 15,835,977.53 64,705,194.33
Taxes and surcharges 6,073,285.87 106,581,164.55
Selling expense 596,897.00 6,932,430.59
Administrative expense 31,193,084.64 26,365,324.28
R&D expense
Finance costs -27,995,222.26 -20,211,072.23
Including: Interest expense 3,075,551.11
Interest income -29,309,100.65 -20,445,143.13
Add: Other income
Return on investment (“-” for
62,573,990.52 16,880,145.24
loss)
Including: Share of profit or
157,061.79 780,826.57
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)
Gain on changes in fair value (“-”
for loss)
11
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Credit impairment loss (“-” for
86,608.96 475,313.54
loss)
Asset impairment loss (“-” for
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 62,784,906.72 174,892,468.61
Add: Non-operating income 536,196.80 320,000.00
Less: Non-operating expense 2,138,000.00 1,102,131.09
3. Profit before tax (“-” for loss) 61,183,103.52 174,110,337.52
Less: Income tax expense 36,318,902.50 41,331,071.98
4. Net profit (“-” for net loss) 24,864,201.02 132,779,265.54
4.1 Net profit from continuing
24,864,201.02 132,779,265.54
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-455,146.16
tax
5.1 Items that will not be reclassified
-455,146.16
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
-455,146.16
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
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
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
12
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
5.2.4 Credit impairment allowance
for investments in other debt
obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 24,409,054.86 132,779,265.54
7. Earnings per share
7.1 Basic earnings per share 0.0417 0.2228
7.2 Diluted earnings per share 0.0417 0.2228
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2020 H1 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,233,830,460.59 1,882,218,982.52
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
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 11,517,514.19
13
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Cash generated from other operating
333,720,016.38 115,887,594.42
activities
Subtotal of cash generated from
1,579,067,991.16 1,998,106,576.94
operating activities
Payments for commodities and
879,596,446.23 1,570,821,818.52
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 330,739,905.05 310,010,627.06
Taxes paid 1,900,688,223.09 469,271,389.64
Cash used in other operating
91,225,555.69 44,690,753.42
activities
Subtotal of cash used in operating
3,202,250,130.06 2,394,794,588.64
activities
Net cash generated from/used in
-1,623,182,138.90 -396,688,011.70
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 4,408.08 5,655.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
4,408.08 5,655.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 16,277,097.63 10,767,529.25
long-lived assets
Payments for investments
14
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Net increase in pledged loans granted
Net payments for the acquisition of
465,807,569.82 1,555,272.25
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
482,084,667.45 12,322,801.50
activities
Net cash generated from/used in
-482,080,259.37 -12,317,146.50
investing activities
3. Cash flows from financing activities:
Capital contributions received 840,000.00 1,750,000.00
Including: Capital contributions by
840,000.00 1,750,000.00
non-controlling interests to subsidiaries
Borrowings raised 2,172,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
2,172,840,000.00 1,750,000.00
financing activities
Repayment of borrowings 1,033,000.00
Interest and dividends paid 296,891,168.14 424,264,720.04
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
297,924,168.14 424,264,720.04
activities
Net cash generated from/used in
1,874,915,831.86 -422,514,720.04
financing activities
4. Effect of foreign exchange rates
1,071,103.91 214,256.25
changes on cash and cash equivalents
5. Net increase in cash and cash
-229,275,462.50 -831,305,621.99
equivalents
Add: Cash and cash equivalents,
3,285,345,233.47 3,881,027,257.89
beginning of the period
6. Cash and cash equivalents, end of the
3,056,069,770.97 3,049,721,635.90
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2020 H1 2019
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities
16,901,714.03 293,652,100.60
and rendering of services
Tax rebates
Cash generated from other operating
1,354,954,984.16 1,298,822,878.54
activities
Subtotal of cash generated from
1,371,856,698.19 1,592,474,979.14
operating activities
Payments for commodities and
34,769,898.91 567,588,715.82
services
Cash paid to and for employees 22,444,977.67 24,332,201.12
Taxes paid 1,278,080,688.35 326,980,098.56
Cash used in other operating
831,802,326.79 379,603,435.53
activities
Subtotal of cash used in operating
2,167,097,891.72 1,298,504,451.03
activities
Net cash generated from/used in
-795,241,193.53 293,970,528.11
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 565,000,000.00
Return on investment 14,575,000.01
Net proceeds from the disposal of
fixed assets, intangible assets and other 3,955.86 690.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
565,003,955.86 14,575,690.01
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 14,226,899.52 8,631,309.56
long-lived assets
Payments for investments 850,000,000.00
Net payments for the acquisition of
465,807,569.82 1,600,000.00
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
480,034,469.34 860,231,309.56
activities
Net cash generated from/used in 84,969,486.52 -845,655,619.55
16
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 616,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
616,000,000.00
financing activities
Repayment of borrowings
Interest and dividends paid 216,929,035.34 178,793,727.60
Cash used in other financing
activities
Subtotal of cash used in financing
216,929,035.34 178,793,727.60
activities
Net cash generated from/used in
399,070,964.66 -178,793,727.60
financing activities
4. Effect of foreign exchange rates
4,949.10 2,634.28
changes on cash and cash equivalents
5. Net increase in cash and cash
-311,195,793.25 -730,476,184.76
equivalents
Add: Cash and cash equivalents,
2,450,935,673.17 2,520,788,994.16
beginning of the period
6. Cash and cash equivalents, end of the
2,139,739,879.92 1,790,312,809.40
period
7. Consolidated Statements of Changes in Owners’ Equity
H1 2020
Unit: RMB
H1 2020
Equity attributable to owners of the Company as the parent
Other equity Other Non-c
Total
instruments Less: compr Surplu Retain ontroll
Item Capital Specifi Genera owners
Share
Treasu ehensi s ed Subtot ing
Prefe Perpe ’
capita reserve c l Other
ry ve reserve earnin al interes
rred tual equity
l Other s reserve reserve
stock incom s gs ts
share bond
s s e
1. Balance as at 595,9 80,488 17,060 2,457, 3,147, 118,61 3,266,
-2,698,
the end of the 79,09 ,045.3 ,448.0 119,79 949,00 8,291. 567,30
371.44
prior year 2.00 8 5 5.39 9.38 81 1.19
Add:
17
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Adjustment for
change in
accounting
policy
Adjustment
for correction of
previous error
Adjustment
for business
combination
under common
control
Other
adjustments
2. Balance as at 595,9 80,488 17,060 2,457, 3,147, 118,61 3,266,
-2,698,
the beginning of 79,09 ,045.3 ,448.0 119,79 949,00 8,291. 567,30
371.44
the year 2.00 8 5 5.39 9.38 81 1.19
3. Increase/
-33,26 -35,27
decrease in the 576,86 -2,584, -2,007,
4,286. 2,159.
period (“-” for 5.34 738.36 873.02
10 12
decrease)
3.1 Total 211,96 212,54 -34,10 178,44
576,86
comprehensive 7,734. 4,600. 4,286. 0,314.
5.34
income 76 10 10 00
3.2 Capital
increased and 840,00 840,00
reduced by 0.00 0.00
owners
3.2.1
Ordinary shares 840,00 840,00
increased by 0.00 0.00
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
18
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
3.2.4 Other
-214,5 -214,5 -214,5
3.3 Profit
52,473 52,473 52,473
distribution
.12 .12 .12
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
-214,5 -214,5 -214,5
Appropriation
52,473 52,473 52,473
to owners (or
.12 .12 .12
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
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
19
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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. Balance as at 595,9 80,488 17,060 2,454, 3,145, 85,354 3,231,
-2,121,
the end of the 79,09 ,045.3 ,448.0 535,05 941,13 ,005.7 295,14
506.10
period 2.00 8 5 7.03 6.36 1 2.07
H1 2019
Unit: RMB
H1 2019
Equity attributable to owners of the Company as the parent
Other equity Other Non-co
instruments Less: compr Surplu Retain ntrollin Total
Item Capital Specifi Genera
Share
Treasu ehensi s ed Subtot g owners’
Prefe Perp
capita reserve c l Other
ry ve reserve earnin al interest equity
rred etual
l Other s reserve reserve
stock incom s gs s
share bond
s s e
1. Balance as at 595,9 483,34 299,56 2,495, 3,872, 3,881,5
-1,786, 9,111,4
the end of the 79,09 7,184. 9,569. 296,44 406,10 17,514.
181.69 09.91
prior year 2.00 25 96 0.15 4.67 58
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction
of previous
error
Adjustment
for business
combination
under common
control
20
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Other
adjustments
2. Balance as at 595,9 483,34 299,56 2,495, 3,872, 3,881,5
-1,786, 9,111,4
the beginning 79,09 7,184. 9,569. 296,44 406,10 17,514.
181.69 09.91
of the year 2.00 25 96 0.15 4.67 58
3. Increase/
-129,6 -226,8 -356,3 -199,35
decrease in the 202,82 156,953
20,559 86,860 04,594 0,620.1
period (“-” for 4.25 ,974.84
.03 .17 .95 1
decrease)
3.1 Total 155,92 156,12
202,82 -27,695 128,429
comprehensive 2,425. 5,249.
4.25 ,611.54 ,638.11
income 40 65
3.2 Capital
-129,6 -204,0 -333,6 -148,98
increased and 184,649
20,559 15,557 36,117 6,530.6
reduced by ,586.38
.03 .97 .00 2
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
-129,6 -204,0 -333,6 -148,98
3.2.4 184,649
20,559 15,557 36,117 6,530.6
Other ,586.38
.03 .97 .00 2
-178,7 -178,7 -178,79
3.3 Profit
93,727 93,727 3,727.6
distribution
.60 .60 0
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
21
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
to general
reserve
3.3.3
-178,7 -178,7 -178,79
Appropriation
93,727 93,727 3,727.6
to owners (or
.60 .60 0
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
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
22
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at 595,9 353,72 299,56 2,268, 3,516, 3,682,1
-1,583, 166,065
the end of the 79,09 6,625. 9,569. 409,57 101,50 66,894.
357.44 ,384.75
period 2.00 22 96 9.98 9.72 47
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2020
Unit: RMB
H1 2020
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
1. Balance 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
prior year 0 46
Add: Adjustment
for change in
accounting
policy
Adjustment
for correction of
previous error
Other
adjustments
2. Balance as at 595,97 1,677,2
53,876,3 -2,051,2 16,403,6 2,341,504,
the beginning of 9,092.0 96,289.
80.11 68.24 37.61 130.94
the year 0 46
3. Increase/
-189,68
decrease in the -455,146 -190,143,4
8,272.1
period (“-” for .16 18.26
0
decrease)
3.1 Total
-455,146 24,864, 24,409,05
comprehensive
.16 201.02 4.86
income
23
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
-214,55
3.3 Profit -214,552,4
2,473.1
distribution 73.12
2
3.3.1
Appropriation to
surplus reserves
3.3.2
-214,55
Appropriation to -214,552,4
2,473.1
owners (or 73.12
2
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
24
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
3.4.3 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
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. Balance as at 595,97 1,487,6
53,876,3 -2,506,4 16,403,6 2,151,360,
the end of the 9,092.0 08,017.
80.11 14.40 37.61 712.68
period 0 36
H1 2019
Unit: RMB
H1 2019
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. Balance as at 595,97
92,326, 298,912 2,080,513 3,067,732,0
the end of the 9,092.
467.62 ,759.52 ,737.62 56.76
prior year 00
Add:
Adjustment for
change in
accounting
policy
25
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as at 595,97
92,326, 298,912 2,080,513 3,067,732,0
the beginning 9,092.
467.62 ,759.52 ,737.62 56.76
of the year 00
3. Increase/
decrease in the -46,014,4 -46,014,462
period (“-” for 62.06 .06
decrease)
3.1 Total
132,779,2 132,779,26
comprehensive
65.54 5.54
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 -178,793, -178,793,72
26
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Appropriation 727.60 7.60
to owners (or
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
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. Balance as at 595,97 92,326, 298,912 2,034,499 3,021,717,5
27
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
the end of the 9,092. 467.62 ,759.52 ,275.56 94.70
period 00
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:
1,898,306 A shares and 0 B shares; unrestricted public shares: 526,475,543 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 17th Meeting of the 9th Board of Directors of the Company on
19 August 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 this report. 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 statement prepared by the Company complies with the requirements of the latest accounting standards for busines s
enterprises as well as the application guidelines, interpretations and other relevant regulations (hereinafter referred to as the
“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions,
28
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
operating results, cash flow and other related information in a truthful and complete manner.
In addition, in the preparation of the financial report, reference was made to the presentation and disclosure requirements of the Rule
for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014
Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by Listed
Companies (KJBH [2018] No. 453).
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 cyc le 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 carryin g amount
combined party in the consolidated financial statements of the final controller on the combining date. As for the balance betwe en
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 ass ets
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. Ba sed 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.
29
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 operat ion:
(1) Recognize the assets held independently, and recognize the assets held jointly in the holding portion;
(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 pa yment 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 t he 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 prof it 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 excha nge rate at the time
when they are incurred. The income and expense items in the income statements shall be translated at the approximate spot exc hange
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 fa ir 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 re quirements of
derecognition or continuous involvement of transferred financial assets; (3) financial guarantee contracts not belonging to above (1)
30
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
or (2), and loan commitments not belonging to above (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 financ ial 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 relationsh ip 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 adoptin g 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 throu gh 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 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
31
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 Meas urement 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 asse t, 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 transferre d 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 asse t 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 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 f or 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;
32
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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 condit ion 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 breac h
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.
For accounts receivable that do not contain significant financing components as specified in the Accounting Standards for Business
Enterprises No. 14 - Revenue (including cases in which financing components in contracts with a period of less than one year are not
considered according to the Standards), the Company uses the simplified model of expected credit loss, and consistently measures the
loss provision according to the amount of expected credit loss of the entire duration.
For accounts receivable that contain significant financing components and the rentals receivable as specified in the Accounting
Standards for Business Enterprises No. 21 - Leases, the Group has made the accounting policy choice and selected the simplified
model of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount of expected
credit loss of the entire duration.
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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 Accounts nature Consulting historical experience in credit losses,
among related party group within the combining actual situation and prediction for future
consolidation scope economic situation, the group’s expected credit loss
Other receivables-interest receivable rate shall be accounted through exposure at default
group and the expected credit loss rate within the next 12
Other receivables-other intercourse funds months or the entire life
among related party group
Other receivables-credit risk Aging group Consulting historical experience in credit losses,
characteristics group 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 losses
Bank’s acceptance bills receivable Bill type Consulting historical experience in credit losses,
combining actual situation and prediction for future
Trade acceptance bills receivable 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 Account nature Consulting historical experience in credit losses,
funds among related party group 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 Aging group Prepare the comparative list between aging of
characteristics group 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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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) T he 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.
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 equ ipment,
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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 inventor ies and the net realizable value.
Inventories directly for sale, under normal producing process, to the amount after deducting the estimated sale expense and r elevant
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, the net re alizable
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. Contract Assets
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship be tween the fulfillment
of its contract performance obligations and its customers’ payment. Considerations that the Company has the right to collect for
commodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.
For contract assets that do not contain significant financing components, the Company uses the simplified model of expected credit
loss, measuring the loss provision according to an amount that is equivalent to the amount of expected credit loss of the entire
duration. The increased loss provision or reversed amount thereof shall be recorded into the current profit or loss as impairment
losses or gains.
For contract assets that contain significant financing components, the Company has made the accounting policy choice and selected
the simplified model of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount of
expected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the current
profit or loss as impairment losses or gains.
17. Contract Costs
Contract costs comprise contract performance cost and contract acquisition cost.
The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meets
the following conditions:
1) This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor, direct materials,
manufacture costs (or similar costs), costs specified to be borne by the customer and other costs incurred from this contract solely.
2) This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
3) This cost is expected to be recovered.
An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an asset
as contract acquisition cost. However, for such asset with an amortization period of less than one year, the Company recognizes them
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
into current profit/loss at their occurrence.
Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related to
such assets.
When the carrying va lue of an asset related to contract costs is higher than the difference between the following two items, the
Company will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
1) Residual consideration expected to be gained from transferring commodities and services related to this asset;
2) Costs expected to be incurred from transferring such commodities or services.
When the aforementioned asset impairment provision is reversed later, the carrying value of the asset afte r the reversal should not
exceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.
18. 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, a nd 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 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.
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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
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
38
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 account ing
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 a ssets 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 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 throug h 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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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.
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 subse quent
measurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciat ion
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 fis cal 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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 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 c osts 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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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. Right-of-use 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 accordin g to the costs.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably within the ir service life
according to the expected implementation of economic interests related to the intangible assets. If it can’t recogn ize 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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 pe riod.
33. Contract Liabilities
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment
of its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferring
commodities or providing services to customers, as the Company has received or should receive customers’ considerations, are
presented as contract liabilities.
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 (1) During the
accounting period when the employee providing service for the Company, the amount paid in line with the setting draw ing 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 t he 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 servic es 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 a mounts
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.
43
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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 account ing 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 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
The Accounting Policy Adopted for Recognition and Measurement of Revenue
(1) Recognition of revenue
The Company gains revenue mainly from property sales, property management and property leasing (refer to 42. Leasing for more
detail).
The Company recognizes revenue when it has fulfilled the obligation of contract performance, namely, when it has acquired the
control of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of the
commodity and to gain almost all economic interests thereof.
(2) The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a time
period” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards, and
recognizes revenue according to the following principles.
44
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
1) When the Company meets one of the following conditions, the obligation should be classified as a contract performance obligation
fulfilled in a specific time period:
① The customer gains and consumes the economic interests brought by the Company’s contract performance when the Company
performs the contract.
② The customer is able to control the assets in progress during the Company’s contract performance.
③ The assets produced during the Company’s contract performance have irreplaceable use, and the Company has the right to collect
payment in respect of its completed contract performance accumulated as of now throughout the entire contract period.
For a contract performance obligation fulfilled in a time period, the Company recognizes revenue according to the progress towards
contract completion in that period, but excluding the case when such progress cannot be reasonably determined. The Company uses the
output or input method to determine the right progress towards contract completion by considering the nature of the commodity.
2) For one that is classified as a contract performance obligation fulfilled at a time point instead of in a time period, the Company
recognizes revenue when the customer acquires the control over the related commodity.
In judging whether the customer has acquired the control over a commodity, the Company considers the following signs:
① The Company is entitled to the current right of payment collection in respect of the commodity. In other words, the customer has the
current obligation to pay for the commodity.
② The Company has transferred the legal ownership of the commodity to the customer. In other words, the customer has owned the
legal ownership of the commodity.
③ The Company has transferred the physical commodity to the customer. In other words, the customer has taken physical possession
of the commodity.
④ The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words, t he
customer has acquired the major risks and remunerations in respect of the ownership of the commodity.
⑤ The customer has accepted the commodity.
⑥ Other signs indicating that the customer has acquired control over the commodity.
Specific policies of the Company for recognizing revenue:
(1) Real Estate Sales Contracts
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 ris ks 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.
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 certif icate (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
45
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 balanc e sheet,
reliably estimate the outcome of a transaction concerning the labor services it provides, it shall be handled under the following
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 conditio ns 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 mo netary 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.
(3) Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performance
obligations. In determining a transaction price, the Company considers the impact of a number of factors, including variable
consideration, significant financing components in contracts, non-cash consideration, and consideration payable to customers.
1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely to
occur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognized
revenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whethe r the
significant reversal of accumulated recognized revenue is almost imposs ible or not, a company should concurrently consider the
possibility and weight of the revenue reversal.
2) Significant financing component
When a contract contains any financing component, the Company should determine the transaction price according to the amount
payable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference betwee n the
transaction price and the contract consideration should be amortized in the effective interest method during the contract period.
3) Non-cash consideration
When a customer pays non-cash consideration, the Company should determine the transaction price according to the fair value of the
non-cash consideration. When such fair value cannot be reasonably estimated, the Company w ill indirectly determine the transaction
price by reference to the individual price committed by the Company for transferring the commodity to the customer.
4) Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, and
deduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of the
consideration to the customer, whichever is earlier, but excluding the case in which the consideration payable to the custome r is for
46
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
the purpose of acquiring from the customer other commodities that can be obviously distinguished.
If the Company’s consideration payable to a customer is for the purpose of acquiring from the customer other commodities that can
be obviously distinguished, the Company should confirm the commodity purchased in the same way as in its other purchases. Whe n
the Company’s consideration payable to a customer exceeds the fair value of the commodity that can be obviously distinguished, the
exceeded amount should be used to deduct the transaction price. If the fair value of the commodity acquired from the customer that
can be obviously distinguished cannot be reasonably estimated, the Company should deduct the transaction price from the
consideration payable to the customer.
Differences in accounting policies for the recognition of revenue caused by different business models for the same type of business
Not applicable.
40. Government Grants
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, dispos ed 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 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 t he period
when the asset is realized or the liability is settled.
47
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 pr ofit 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 e vent 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 s traight-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.
The Company as a lessor recognizes the payment from its operating lease as rental revenue in the straight line method in different
periods of a lease term. It capitalizes the initial direct costs incurred relating to the operating lease, amortizes the costs on the same
basis for the recognition of rental revenue during the lease term, and records them into current profits/losses across different periods.
For the fixed assets in operating lease assets, the Company should depreciate them according to the depreciation policy for s imilar
assets; for other operating lease assets, the Company should amortize them in systematic and reasonable methods according to the
accounting standards for business enterprises application to such assets. The Company determines whether there is any impairment to
its operating lease assets according to the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets, and performs
the corresponding accounting treatment.
(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 effective interest rate method shall be adopted to calculate a nd 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
48
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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.
(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 balanc e 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.
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□ Applicable √ Not applicable
(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 Revenue or Leases since 2020
Applicable
Whether items of balance sheets at the beginning of the year need to be adjusted
√ Yes □ No
Consolidated balance sheet
Unit: RMB
Item 31 December 2019 1 January 2020 Adjustment
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Current assets:
Monetary assets 3,297,890,935.91 3,297,890,935.91
Settlement reserve
Interbank loans granted
Held-for-trading financial
assets
Derivative financial assets
Notes receivable
Accounts receivable 216,923,663.25 216,923,663.25
Accounts receivable
financing
Prepayments 69,546,774.17 69,546,774.17
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 917,981,165.74 917,981,165.74
Including: Interest
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 4,913,510,876.66 4,913,510,876.66
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 42,500,585.94 42,500,585.94
Total current assets 9,458,354,001.67 9,458,354,001.67
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Investments in other debt
obligations
Long-term receivables
50
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Long-term equity
45,076,122.72 45,076,122.72
investments
Investments in other equity
1,580,475.86 1,580,475.86
instruments
Other non-current financial
assets
Investment property 503,323,428.61 503,323,428.61
Fixed assets 93,557,782.83 93,557,782.83
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 700,369.66 700,369.66
Development costs
Goodwill
Long-term prepaid
7,034,472.79 7,034,472.79
expense
Deferred income tax assets 658,153,122.73 658,153,122.73
Other non-current assets 4,711,963.66 4,711,963.66
Total non-current assets 1,314,137,738.86 1,314,137,738.86
Total assets 10,772,491,740.53 10,772,491,740.53
Current liabilities:
Short-term borrowings
Borrowings from the
central bank
Interbank loans obtained
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 577,689,139.10 577,689,139.10
Advances from customers 728,186,032.63 33,972,360.94 -694,213,671.69
Contract liabilities 694,213,671.69 694,213,671.69
Financial assets sold under
repurchase agreements
Customer deposits and
51
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
interbank deposits
Payables for acting trading
of securities
Payables for underwriting
of securities
Employee benefits payable 143,493,868.80 143,493,868.80
Taxes payable 2,598,283,291.68 2,598,283,291.68
Other payables 1,149,104,928.85 1,149,104,928.85
Including: Interest
payable
Dividends
12,202,676.04 12,202,676.04
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Current portion of
3,921,032.24 3,921,032.24
non-current liabilities
Other current liabilities
Total current liabilities 5,200,678,293.30 5,200,678,293.30
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 2,193,833,000.00 2,193,833,000.00
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions 2,903,327.87 2,903,327.87
Deferred income 341,259.63 341,259.63
Deferred income tax
3,821.08 3,821.08
liabilities
Other non-current 108,164,737.46 108,164,737.46
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
liabilities
Total non-current liabilities 2,305,246,146.04 2,305,246,146.04
Total liabilities 7,505,924,439.34 7,505,924,439.34
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 80,488,045.38
Less: Treasury stock
Other comprehensive
-2,698,371.44 -2,698,371.44
income
Specific reserve
Surplus reserves 17,060,448.05 17,060,448.05
General reserve
Retained earnings 2,457,119,795.39 2,457,119,795.39
Total equity attributable to
owners of the Company as 3,147,949,009.38 3,147,949,009.38
the parent
Non-controlling interests 118,618,291.81 118,618,291.81
Total owners’ equity 3,266,567,301.19 3,266,567,301.19
Total liabilities and owners’
10,772,491,740.53 10,772,491,740.53
equity
Notes to the adjustments
The Company starts to implement the Accounting Standards for Business Enterprises No.14-Revenue revised by
the Ministry of Finance since 1 January 2020. 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
Item 31 December 2019 1 January 2020 Adjustment
Current assets:
Monetary assets 2,455,001,204.14 2,455,001,204.14
Held-for-trading financial
assets
53
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Derivative financial assets
Notes receivable
Accounts receivable 755,932.14 755,932.14
Accounts receivable
financing
Prepayments 496,729.09 496,729.09
Other receivables 501,082,153.81 501,082,153.81
Including: Interest
receivable
Dividends
receivable
Inventories 624,499,208.02 624,499,208.02
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 1,113,935.28 1,113,935.28
Total current assets 3,582,949,162.48 3,582,949,162.48
Non-current assets:
Investments in debt
obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity
1,070,542,003.11 1,070,542,003.11
investments
Investments in other equity
1,810,975.86 1,810,975.86
instruments
Other non-current financial
assets
Investment property 312,638,785.76 312,638,785.76
Fixed assets 26,337,488.29 26,337,488.29
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
54
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Development costs
Goodwill
Long-term prepaid
605,416.29 605,416.29
expense
Deferred income tax assets 343,958,821.07 343,958,821.07
Other non-current assets 1,613,657,031.92 1,613,657,031.92
Total non-current assets 3,369,550,522.30 3,369,550,522.30
Total assets 6,952,499,684.78 6,952,499,684.78
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable
Accounts payable 64,503,938.37 64,503,938.37
Advances from customers 320,469.53 320,469.53
Contract liabilities
Employee benefits payable 36,735,205.68 36,735,205.68
Taxes payable 1,322,751,671.37 1,322,751,671.37
Other payables 3,146,684,268.89 3,146,684,268.89
Including: Interest
payable
Dividends
payable
Liabilities directly
associated with assets held
for sale
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 4,570,995,553.84 4,570,995,553.84
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
55
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
liabilities
Other non-current
40,000,000.00 40,000,000.00
liabilities
Total non-current liabilities 40,000,000.00 40,000,000.00
Total liabilities 4,610,995,553.84 4,610,995,553.84
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 53,876,380.11
Less: Treasury stock
Other comprehensive
-2,051,268.24 -2,051,268.24
income
Specific reserve
Surplus reserves 16,403,637.61 16,403,637.61
Retained earnings 1,677,296,289.46 1,677,296,289.46
Total owners’ equity 2,341,504,130.94 2,341,504,130.94
Total liabilities and owners’
6,952,499,684.78 6,952,499,684.78
equity
Notes to the adjustments
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any New
Standards Governing Revenue or Leases since 2020
√ Applicable □ Not applicable
In accordance with the coherent regulations of the new revenue standards, the Company has started to disclose accounting statements
according to the requirements of the new revenue standards since the first quarter of 2020, with no retroactive adjustment to the
comparable data of 2019, and thus no impact on the Company’s related financial indicators of 2019. It is expected that the
56
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
implementation of the new revenue standards will not result in significant changes in the Company’s method of recognizing its
revenue, and thus will not produce significant influence on the its net profits, total assets and net assets for both the pre vious and
current periods.
45. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1 January 2020; the
data of the period-end refers to the financial statement data on 30 June 2020; the Reporting Period refers to the first half of 2020; the
same period of last year refers to the first half of 2019. 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
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.
57
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
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 industry met with the conditions should be collec ted
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 M icro
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 9% 5%
Rent of real estate 9% 5%
Property service 6% 3%
Catering service 6% 3%
Others 13% --
58
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 164,191.19 130,048.49
Bank deposits 3,056,664,559.86 3,276,826,087.46
Other monetary assets 22,112,922.57 20,934,799.96
Total 3,078,941,673.62 3,297,890,935.91
Of which: the total amount deposited
55,767,421.33 54,480,940.07
overseas
The total amount with
restricted right of use for mortgage, pledge 22,871,902.65 12,545,702.44
or freeze
Other notes:
Other monetary assets were RMB22,112,922.57, 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 RMB3,078,941,673.62 including
RMB14,627,716.73 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
59
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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:
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
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
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
60
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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
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
106,118, 104,557, 1,560,295 106,958,3 105,293,3 1,665,006.4
with single bad debt 26.14% 98.53% 31.79% 98.44%
180.93 885.00 .93 70.47 64.00 7
provision accrued
61
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Of which:
Accounts receivable
with bad debt 299,789, 18,484,4 281,305,1 229,476,4 14,217,82 215,258,65
73.86% 6.17% 68.21% 6.20%
provision withdrawn 574.27 43.78 30.49 81.62 4.84 6.78
according to groups
Of which:
405,907, 123,042, 282,865,4 336,434,8 119,511,1 216,923,66
Total 100.00% 30.31% 100.00% 35.52%
755.20 328.78 26.42 52.09 88.84 3.25
Single bad debt provision accrued:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Shenzhen Jiyong
Involved in lawsuit and
Properties & Resources 93,811,328.05 93,811,328.05 100.00%
no executable property
Development Company
Shenzhen Tewei Industry Uncollectible for a long
2,836,561.00 2,836,561.00 100.00%
Co., Ltd. period
Poor operating
Lunan Industry
2,818,284.84 2,818,284.84 100.00% conditions, uncollectible
Corporation
for a long period
Those with insignificant
single amount for which Uncollectible for a long
6,652,007.04 5,091,711.11 76.54%
bad debt provision period
separately accrued
Total 106,118,180.93 104,557,885.00 -- --
Single bad debt provision accrued: 104,557,885.00
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
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:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
62
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Within 1 year 264,110,788.95 7,923,323.67 3.00%
1 to 2 years 20,041,644.72 2,004,164.47 10.00%
2 to 3 years 9,164,177.05 2,749,253.12 30.00%
3 to 4 years 1,022,267.33 511,133.66 50.00%
4 to 5 years 770,636.82 616,509.46 80.00%
Over 5 years 4,680,059.40 4,680,059.40 100.00%
Total 299,789,574.27 18,484,443.78 --
Notes of the basis of recognizing the group:
Bad debt provision withdrawn according to groups: 18,484,443.78
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
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) 264,110,788.95
1 to 2 years 20,041,644.72
2 to 3 years 9,164,177.05
Over 3 years 112,591,144.48
3 to 4 years 1,022,267.33
4 to 5 years 770,636.82
Over 5 years 110,798,240.33
Total 405,907,755.20
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Bad debt provision withdrawn for the Reporting Period:
Unit: RMB
63
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Bad debt provision
105,293,364.00 735,479.00 104,557,885.00
separately accrued
Bad debt provision
withdrawn 14,217,824.84 6,014,981.36 1,748,362.42 18,484,443.78
according to groups
Total 119,511,188.84 6,014,981.36 2,483,841.42 123,042,328.78
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:
(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 Ending balance of bad debt
Name of units
receivable accounts receivable provision
Shenzhen Bay Technology
112,143,815.18 27.63% 3,364,314.46
Development Co., Ltd.
Shenzhen Jiyong
Properties & Resources 93,811,328.05 23.11% 93,811,328.05
Development Company
Shenzhen Meiya Industry
8,282,669.14 2.04% 248,480.07
Development Co.,Ltd.
Shenzhen Canglege
7,355,950.65 1.81% 735,595.07
Culture Development
64
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Co.,Ltd.
Tao Bao(China)Software
6,733,723.71 1.66% 202,011.71
Co.,Ltd.
Total 228,327,486.73 56.25%
(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 receiva bles:
□ 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 33,261,589.57 39.14% 36,985,187.03 53.18%
1 to 2 years 21,767,574.33 25.61% 3,797,085.70 5.46%
2 to 3 years 6,611,483.93 7.78% 8,360,467.04 12.36%
Over 3 years 23,342,786.71 27.47% 20,404,034.40 29.00%
Total 84,983,434.54 -- 69,546,774.17 --
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.
65
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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 (%)
Shenzhen Qianhai Advanced Information Service 24,000,000.00 28.24%
Co., Ltd.
Financial Committee of Shenzhen 19,509,471.00 22.96%
Tax Bureau of Tongshan District in 14,632,771.32 17.22%
Xuzhou-prepaid taxes
Tax Bureau of Hanjiang District in 14,590,007.43 17.17%
Yangzhou-prepaid taxes
Jiangsu Hanjian Group 6,000,000.00 7.06%
Subtotal 78,732,249.75 92.64%
Other notes:
The total amount of top 5 of the ending balance of the prepayments was RMB78,732,249.75, accounting for 92.64% of the total
ending balance of the prepayments.
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 800,159,718.50 917,981,165.74
Total 800,159,718.50 917,981,165.74
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and the
judgment basis
Other notes:
66
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 11,937,978.73 13,439,816.18
Cash deposit 50,181,204.02 30,202,817.84
Petty cash 3,372,169.60 1,853,585.88
Payments on behalf 3,614,977.44 5,218,908.47
External intercourse funds 772,468,837.47 915,411,567.13
Other 11,171,931.51 9,087,762.19
Total 852,747,098.77 975,214,457.69
2) Withdrawal of Bad Debt Provision
Unit: RMB
Bad debt provision First stage Second stage Third stage Total
67
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
29,257,660.02 27,975,631.93 57,233,291.95
2020
Balance of 1 January
2020 in the Current —— —— —— ——
Period
Withdrawal of the
644,205.48 644,205.48
Current Period
Reversal of the Current
5,290,117.16 5,290,117.16
Period
Balance of 30 June 2020 24,611,748.34 27,975,631.93 52,587,380.27
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 65,695,400.47
1 to 2 years 10,979,858.36
2 to 3 years 735,332,705.48
Over 3 years 40,739,134.46
3 to 4 years 1,256,744.97
4 to 5 years 1,456,487.66
Over 5 years 38,025,901.83
Total 852,747,098.77
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Changes
Beginning
Category Recovery or Ending balance
balance Withdrawal Write-off Other
reversal
Individual
withdrawal of bad 27,975,631.93 27,975,631.93
debt provision
68
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Withdrawal of
bad debt
29,257,660.02 644,205.48 5,290,117.16 24,611,748.34
provision by
groups
Total 57,233,291.95 644,205.48 5,290,117.16 52,587,380.27
Of which bad debt provision revered or recovered with significant amount:
Unit: RMB
Name of the entity Reversed or collected amount Method
Not applicable.
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
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 of
Name of the entity Nature Ending balance Aging balance of other
bad debt provision
receivables%
Shenzhen Xinhai
Intercourse funds 401,499,990.18 1 to 2 years 47.10%
Holding Co., Ltd.
Shenzhen Xinhai
Rongyao Real Estate
Intercourse funds 330,472,932.33 1 to 2 years 38.80%
Development Co.,
Ltd.
Shenzhen Bangling
Stock Cooperative Margin 30,000,000.00 Within 1 year 3.50% 900,000.00
Company
Affordable Housing Regulatory capital
Development Center for presale of 18,700,000.00 Within 1 year 2.20% 561,000.00
of Tongshan District commercial
69
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
in Xu Zhou buildings
Shanghai Yutong
Real estate External intercourse
5,676,000.00 Over 5 years 0.70% 5,676,000.00
development Co., funds
Ltd.
Total -- 786,348,922.51 -- 92.21% 7,137,000.00
6) Accounts Receivable Involving Government Grants
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Aging at period-end
grants 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 needs to comply with the disclosure requirements for real estate industry
Yes
(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
Development
5,124,846,218.88 6,648,404.13 5,118,197,814.75 4,528,429,076.71 6,648,404.13 4,521,780,672.58
costs
Development of 249,723,454.92 249,723,454.92 390,363,836.20 390,363,836.20
70
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
products
Raw materials 1,579,497.98 482,284.52 1,097,213.46 1,743,790.82 484,117.43 1,259,673.39
Inventory good 2,137,983.91 2,094,300.39 43,683.52 2,132,162.67 2,094,300.39 37,862.28
Low-value
consumption 69,398.16 69,398.16 68,832.21 68,832.21
goods
Total 5,378,356,553.85 9,224,989.04 5,369,131,564.81 4,922,737,698.61 9,226,821.95 4,913,510,876.66
Disclose main items of development costs and interest capitalization in the following format:
Unit: RMB
Transferr
Increase Of which:
ed to Accumula
Estimated Estimated Other (Develop amount of
Date of developm tive
Name of date of total Beginnin decrease ment Ending capitalize Capital
commenc ent of amount of
project completio investmen g balance for this costs) for balance d interests resources
ement products capitalize
n t period this for this
for this d interests
period period
period
Guanlan
6,433,000 3,004,198 512,610,6 3,516,808
Bangling Bank loan
,000.00 ,155.43 32.86 ,788.29
project
SZPRD-B
anshan 15 March 30 June 110,750,0 103,895,1 24,663,37 128,558,5
Other
Yujing 2019 2021 00.00 47.96 1.66 19.62
Phase II
SZPRD-
Golden Bank
Collar’s 1 March 1 July 1,100,000 579,765,8 32,705,48 612,471,3 6,299,523 3,628,687 loan;
Resort 2014 2019 ,000.00 54.55 3.60 38.15 .27 .20 other
–Building
A&CA
SZPRD-F
1 31
uchang 969,290,0 581,416,9 4,506,740 585,923,7
December December Other
Garden 00.00 71.33 .21 11.54
2018 2022
Phase II
Yupin 215,502,5 21,930,91 237,433,4
Other
Luanshan 12.42 3.84 26.26
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
71
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
8,613,040 4,528,429 596,417,1 5,124,846 6,299,523 3,628,687
Total -- -- --
,000.00 ,076.71 42.17 ,218.88 .27 .20
Disclose main items of “Development of products” 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 64,058,372.70 3,120,801.03 60,937,571.67 10,446,911.43
Phase I
SZPRD-Ba
30
nshan
November 29,392,977.73 14,355,009.56 15,037,968.17 27,205,315.95
Yujing
2016
Phase I
SZPRD-So
nghu 1 July 2017 27,098,111.12 1,439,087.77 25,659,023.35 30,539,392.65
Langyuan
SZPRD-Hu 1
pan Yujing November 90,059,024.33 3,521,708.01 86,537,316.32
Phase II 2017
SZPRD-Go
lden
Collar’s 1 December 158,235,034.4 118,203,774.9
40,031,259.51 1,206,675.51 0.00
Resort 2019 2 1
–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
72
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Other
3,728,363.46 3,728,363.46 83,077,702.96
projects
390,363,836.2 140,640,381.2
Total -- 249,723,454.92 167,109,484.65 0.00
0 8
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 and Depreciation 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
Development 6,648,404.
6,648,404.13
costs 13
Raw materials 484,117.43 1,832.91 482,284.52
2,094,300.
Inventory good 2,094,300.39
39
9,226,821.
Total 1,832.91 9,224,989.04 --
95
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
6,648,404.
Total 6,648,404.13 --
13
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Item Period-begin Reporting Period Carry-over in Current Period-end
Period
SZPRD-Banshan Yujing 740,173.97 740,173.97 0.00
73
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Phase I
SZPRD-Songhu 43,719.56 43,719.56 0.00
Langyuan
SZPRD-Langqiao 2,971,986.54 2,971,986.54
International
SZPRD-Hupan Yujing 1,624,566.49 7,148.09 1,617,418.40
Phase I
SZPRD-Golden Collar’s 3,097,352.86 3,628,687.20 873,040.00 5,853,000.06
Resort
Subtotal 8,477,799.43 3,628,687.20 1,664,081.62 10,442,405.00
(4) Inventory Limit
Disclosed by project
Unit: RMB
Name of project Beginning balance Ending balance Reason for the Limit
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
74
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Other notes:
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
Unit: RMB
Item Ending balance Beginning balance
Pre-paid VAT 2,685,619.81 34,043,807.16
Deducted input tax 13,798,096.71 8,191,279.34
Other 16,750.10 265,499.44
Total 16,500,466.62 42,500,585.94
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
First stage Second stage Third stage
Bad debt provision Expected loss in the Expected loss in the Total
Expected credit loss
duration (credit impairment duration (credit impairment
75
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
of the next 12 months not occurred) occurred)
Balance of 1 January
2020 in the Reporting —— —— —— ——
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 Note
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
2020 in the Reporting —— —— —— ——
Period
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
Other notes:
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
76
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
2020 in the Reporting —— —— —— ——
Period
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
(2) Derecogniziton 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
Jifa
Warehous 38,614,77 38,658,58
43,811.79
e Co., 1.66 3.45
Ltd.
Shenzhen 6,461,351 113,250.0 6,574,601
Tian’an .06 0 .06
77
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Internatio
nal
Building
Property
Managem
ent Co.,
Ltd.
45,076,12 157,061.7 45,233,18
Subtotal
2.72 9 4.51
II. Associated enterprises
Shenzhen
Wufang
Pottery & 18,983,6 18,983,61 18,983,61
Porcelain 14.14 4.14 4.14
Industrial
Co., Ltd.
Shenzhen
Kangfu
165,000. 165,000.0 165,000.0
Health
00 0 0
Products
Co., Ltd.
Shenzhen
Xinghao
756,670. 756,670.6 756,670.6
Imitation
68 8 8
Porcelain
Co., Ltd.
Shenzhen
Social
Welfare
326,693. 326,693.2 326,693.2
Company
24 4 4
Fuda
Electronic
s Factory
Shenzhen
Fulong
Industry 1,684,35 1,684,350 1,684,350
Developm 0.00 .00 .00
ent Co. ,
Ltd.
78
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Haonianhu 2,733,57 2,733,570 2,733,570
a Hotel 0.05 .05 .05
Shenzhen
Education
Fund 500,000. 500,000.0 500,000.0
Longhua 00 0 0
Investmen
t
Shenzhen
Kangle
Sports 540,060. 540,060.0 540,060.0
Club 00 0 0
Huangfa
Branch
Dankeng
village
plants of 1,168,97 1,168,973 1,168,973
Fumin in 3.20 .20 .20
Guanlan
town
Shenzhen
Bull
500,000. 500,000.0 500,000.0
Entertain
00 0 0
ment Co. ,
Ltd.
Shenzhen
Lianhua
Caitian
1,475,46 1,475,465 1,475,465
Property
5.91 .91 .91
Managem
ent Co.,
Ltd.
Shenzhen
Yangyuan 1,030,00 1,030,000 1,030,000
Industrial 0.00 .00 .00
Co., Ltd.
Jiakaifeng
Co., Ltd. 600,000. 600,000.0 600,000.0
Bao’an 00 0 0
Company
Guiyuan 350,000. 350,000.0 350,000.0
Garage 00 0 0
79
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Shenzhen
Wuweiben
500,000. 500,000.0 500,000.0
Roof
00 0 0
Greening
Co., Ltd.
Shenzhen
Yuanping
Plastic 240,000. 240,000.0 240,000.0
Steel 00 0 0
Doors Co.,
Ltd.
Shenzhen
Youfang 100,000. 100,000.0 100,000.0
Printing 00 0 0
Co., Ltd.
Shenzhen
Lusheng
Industrial 100,000. 100,000.0 100,000.0
Developm 00 0 0
ent Co.,
Ltd.
31,754,39 31,754,39 31,754,39
Subtotal
7.22 7.22 7.22
76,830,51 76,987,58 31,754,39
Total
9.94 1.73 7.22
Other notes
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co., Ltd. 1,134,803.13 1,580,475.86
Total 1,134,803.13 1,580,475.86
Disclosure of non-trading equity instrument investment
Unit: RMB
Reason for
Amount of other Reason of other
assigning to
comprehensive comprehensive
Dividend income Accumulative Accumulative measure by fair
Name income income
recognized gains losses value and the
transferred to transferred to
changes be
retained earnings retained earnings
included in other
80
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
comprehensive
income
Not aiming at
Gintian Industry
2,496,940.97 gaining earnings
(Group) Co., Ltd.
by selling equity
Other notes:
19. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original carrying value
1. Beginning balance 835,776,692.89 30,262,437.05 866,039,129.94
2.Increased amount of
3,495,053.34 3,495,053.34
the period
(1) Outsourcing
(2)Transfer from
inventory/fixed assets/ 3,252,075.05 3,252,075.05
construction in progress
(3)Enterprise
combination increase
(4) Translation of foreign
currency denominated 242,978.29 242,978.29
financial statements
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 839,271,746.23 30,262,437.05 869,534,183.28
81
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
II.Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 347,900,357.76 14,815,343.57 362,715,701.33
2.Increased amount of
18,103,551.47 263,796.30 18,367,347.77
the period
(1)Withdrawal or
18,103,551.47 263,796.30 18,367,347.77
amortization
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 366,003,909.23 15,079,139.87 381,083,049.10
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 473,267,837.00 15,183,297.18 488,451,134.18
2.Beginning carrying
487,876,335.13 15,447,093.48 503,323,428.61
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
82
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Investment properties measured in fair value disclosed by project:
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
Replaced from the construction of
02-01 plot of Statutory plan in Baolong
9,170,778.00 Xiamen-Shenzhen Railway, and hasn’t
East Area
exchanged for the new certification
The house is used for property
management, once occupied by the third
507 units, Block No. 6, Maguling 27,263.51 party, a property management company,
now has been recovered, but hasn’t
handled the warrant yet.
Other notes
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 89,296,825.77 93,557,782.83
Total 89,296,825.77 93,557,782.83
(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
83
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
1. Beginning
161,336,884.91 23,105,646.54 205,747.00 14,123,435.60 27,601,069.63 226,372,783.68
balance
2. Increased
amount of the 112,446.31 1,029,996.87 186,000.00 89,100.00 439,252.23 1,856,795.41
period
(1) Purchase 1,029,996.87 186,000.00 89,100.00 439,252.23 1,744,349.10
(2) Transfer from
construction in
progress
(3) Enterprise
combination
increase
(4) Translation of
foreign
currency-denomi 112,446.31 112,446.31
nated financial
statements
3. Decreased
amount of the 246,401.90 18,000.00 28,734.05 293,135.95
period
(1) Disposal or
246,401.90 18,000.00 28,734.05 293,135.95
scrap
4. Ending balance 161,449,331.22 23,889,241.51 391,747.00 14,194,535.60 28,011,587.81 227,936,443.14
II. Accumulative
depreciation
1. Beginning
101,657,814.19 4,449,605.68 2,549.40 9,697,922.59 16,931,391.83 132,739,283.69
balance
2. Increased
amount of the 2,024,795.66 2,624,754.07 49,176.02 556,399.98 801,059.96 6,056,185.69
period
(1) Withdrawal 2,024,795.66 2,624,754.07 49,176.02 556,399.98 801,059.96 6,056,185.69
3. Decreased
amount of the 195,806.55 17,100.00 18,662.62 231,569.17
period
(1) Disposal or
195,806.55 17,100.00 18,662.62 231,569.17
scrap
84
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
4. Ending balance 103,682,609.85 6,878,553.20 51,725.42 10,237,222.57 17,713,789.17 138,563,900.21
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
57,766,721.37 17,010,688.31 340,021.58 3,957,313.03 10,222,081.48 89,296,825.77
carrying value
2. Beginning
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) 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
Accumulative
Item Original carrying value Depreciation reserves Carrying value
depreciation
(4) Fixed Assets Leased out by Operation Lease
Unit: RMB
85
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
2,854,810.18 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
845,393.96
Building Office Building shall be replaced after the completion of
the new office building. Thus, the
certification of the property is failed to
transact.
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
Ending balance Beginning balance
Item 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
Item Budget Beginnin Increase Transferr Other Ending Proporti Job Accumul Of Capitaliz Capital
86
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
g d amount ed in decrease balance on of schedule ated which: ation rate resources
balance fixed d amount accumul amount Amount of
assets ated of of interests
investme interest capitaliz for the
nt in capitaliz ed Reportin
construct ation interests g Period
ions to for the
budget Reportin
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
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Unit: RMB
Item Total
Other notes:
87
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Item Land use right Patent right Non-patent right Software Total
I. Original
carrying value
1. Beginning
1,234,387.66 1,234,387.66
balance
2. Increased
amount of the
period
(1) Purchase
(2) Internal
development
(3) Business
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
534,018.00 534,018.00
balance
2. Increased
amount of the 109,162.21 109,162.21
period
(1) Withdrawal 109,162.21 109,162.21
3. Decreased
amount of the
period
(1) Disposal
88
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
4. Ending balance 622,370.21 622,370.21
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
591,207.45 591,207.45
carrying value
2. Beginning
700,369.66 700,369.66
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.
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
Other notes:
27. Development Costs
Unit: RMB
Increase Decrease
Beginning Internal Recognized Ending
Item Transfer to
balance development Other as intangible balance
profit or loss
costs assets
89
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 588,336.00 169,454.68 418,881.32
Renovation costs 6,446,136.79 914,680.87 1,385,631.46 5,975,186.20
Total 7,034,472.79 914,680.87 1,555,086.14 6,394,067.52
90
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
152,825,318.94 38,847,987.80 157,586,654.91 38,312,198.03
of assets
Internal unrealized profit 46,353,414.96 11,588,353.74 49,316,338.72 12,329,084.68
Deductible losses 1,208,292,983.24 302,073,245.81 162,281,053.40 40,570,263.35
Accrued land VAT 1,219,229,090.00 304,807,272.50 2,148,670,831.53 537,167,707.90
Estimated profit
calculated at pre-sale
36,496,723.60 9,124,180.90 119,095,335.72 29,773,833.93
revenue of property
enterprises
Payroll payable unpaid
114.34 28.59 139.36 34.84
but withdrawn
Total 2,663,197,645.08 666,441,069.34 2,636,950,353.64 658,153,122.73
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
The carrying value of
fixed assets was larger 15,284.32 3,821.08 15,284.32 3,821.08
than the tax basis
Total 15,284.32 3,821.08 15,284.32 3,821.08
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount of Ending balance of Mutual set-off amount of Beginning balance of
Item deferred income tax deferred income tax deferred income tax deferred income tax
assets and liabilities at assets or liabilities after assets and liabilities at assets or liabilities after
91
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
the period-end off-set the period-begin off-set
Deferred income tax
666,441,069.33 658,153,122.73
assets
Deferred income tax
3,821.08 3,821.08
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 71,272,757.95 60,809,797.81
Deductible losses 312,848,147.29 187,768,845.36
Total 384,120,905.24 248,578,643.17
(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 The deductible losses of 2014
Y2020 8,494.90 8,494.90 The deductible losses of 2015
Y2021 3,456.91 3,456.91 The deductible losses of 2016
Y2022 62,919,255.68 62,919,255.68 The deductible losses of 2017
Y2024 246,980,657.57 124,830,194.64 The deductible losses of 2019
Y2025 2,936,282.23 The deductible losses of 2020
Total 312,848,147.29 187,768,845.36 --
Other notes:
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserves value amount reserves value
Prepayment for purchase of fixed assets, 18,722,496.1 18,722,496.1
4,711,963.66 4,711,963.66
investment properties and intangible assets 8 8
18,722,496.1 18,722,496.1
Total 4,711,963.66 4,711,963.66
8 8
Other notes:
92
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of short-term borrowings category:
Not applicable.
(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:
Not applicable.
33. Trading Financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
Not applicable.
34. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable.
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMBXXX.
93
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense payable 390,519,470.90 420,433,422.07
Accrued expense 50,084,943.28 90,484,298.98
Other 95,632,924.32 66,771,418.05
Total 536,237,338.50 577,689,139.10
(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) 30,383,169.67 Settled but outstanding
Shanghai Mingpeng Construction Group
25,976,705.79 Unsettled
Co., Ltd.
Shenzhen Luohu District Land and
25,000,000.00 Unsettled
Resources Bureau
Construction cost in arrears accounted by
Jiangsu Hanjian Group Co., Ltd. 15,179,202.67
verified output value
The Second Construction Co., Ltd. of
China Construction Third Engineering 6,345,592.81 Construction deposit
Bureau
Total 102,884,670.94 --
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
House payment in advance
Property fee in advance 26,745,590.38 17,463,948.02
Other 5,790,958.35 16,508,412.92
Total 32,536,548.73 33,972,360.94
94
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Other notes:
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
The proceeds information of top 5 advance sale amount:
Unit: RMB
Expected completion Advance sale
No. Name Beginning balance Ending balance
date proportion
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 480,801,605.00 694,213,671.69
Total 480,801,605.00 694,213,671.69
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 141,448,850.23 309,840,720.08 336,075,756.59 115,213,813.72
II. Post-employment
benefit-defined 1,921,102.65 8,808,402.36 9,569,944.40 1,159,560.61
contribution plans
III. Termination benefits 123,915.92 222,637.17 346,553.09
Total 143,493,868.80 318,871,759.61 345,992,254.08 116,373,374.33
(2) List of Short-term Salary
Unit: RMB
95
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
127,467,198.54 276,897,637.28 304,005,337.59 100,359,498.23
allowance, subsidy
2. Employee welfare 179,903.05 7,188,412.27 7,368,315.32
3. Social insurance 309,821.38 11,456,304.82 10,933,885.96 832,240.24
Of which: Medical
307,218.00 10,684,567.95 10,167,853.76 823,932.19
insurance premiums
Work-re
99,350.62 97,151.78 2,198.84
lated injury insurance
Materni
2,603.38 347,289.65 343,783.82 6,109.21
ty insurance
4. Housing fund 552,529.86 8,806,603.27 8,923,102.27 436,030.86
5. Labor union budget
and employee education 12,939,397.40 5,491,762.44 4,845,115.45 13,586,044.39
budget
Total 141,448,850.23 309,840,720.08 336,075,756.59 115,213,813.72
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 168,430.00 4,760,055.00 4,639,457.12 289,027.88
2. Unemployment
50,226.78 43,770.68 6,456.10
insurance
3. Annuity 1,752,672.65 3,998,120.58 4,886,716.60 864,076.63
Total 1,921,102.65 8,808,402.36 9,569,944.40 1,159,560.61
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 13,493,598.74 70,818,175.32
Corporate income tax 2,674,867.69 368,461,498.66
Personal income tax 2,749,244.89 1,556,780.71
Urban maintenance and construction tax 643,366.29 3,668,311.19
Land VAT 1,219,264,403.13 2,149,507,199.99
Property tax 4,641,483.50 526,309.33
96
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Land use tax 1,471,587.45 942,757.19
Education surcharge 215,012.67 1,592,152.99
Local education surtax 279,183.44 1,067,591.60
Other 142,514.70
Total 1,245,432,747.80 2,598,283,291.68
Other notes:
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12,202,676.04 12,202,676.04
Other payables 807,985,786.65 1,136,902,252.81
Total 820,188,462.69 1,149,104,928.85
(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:
Not applicable.
(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 12,202,676.04
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.
97
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
Subtotal 12,202,676.04
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Deposit 211,312,547.96 201,013,437.65
Guarantee 50,698,328.84 51,062,427.71
Residual funds of equity transfer unpaid 465,807,569.82
Agency fund 5,972,288.11 7,531,813.31
Intercourse fund 404,317,342.84 316,244,391.26
Accrued expenses 107,685,432.23 64,684,769.05
Payment on behalf 5,538,460.34 9,235,637.59
Other 22,461,386.33 21,322,206.42
Total 807,985,786.65 1,136,902,252.81
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
196,416,155.45
Co., Ltd. completion of the project
Margin of sporadic lease 8,508,355.59 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 248,315,522.08 --
Other notes
98
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
42. Liabilities Held for Sale
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable.
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 755,325,505.51 3,921,032.24
Total 755,325,505.51 3,921,032.24
Other notes:
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Increase/decrease of the short-term bonds payable:
Unit: RMB
Amortizat
Withdraw
ion of Repayme
The al of
Bonds Issuing Issuing Beginnin premium nt in the Ending
Par value Duration current interest
name date amount g balance and Reporting balance
issue by par
depreciati Period
value
on
Other notes:
Not applicable.
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged borrowings 2,999,800,000.00 2,192,900,000.00
Guaranteed borrowings 933,000.00
Credit borrowings 616,000,000.00
Total 3,615,800,000.00 2,193,833,000.00
99
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 with one-year level of loan prime rate. And 69%
equity of Rongyao Real Estate held by the Company was pledged and the guarantee mode was the joint liability guaranty.
The credit borrowings at the period-end were used for the transaction payment of equity of Shenzhen Toukong Property Management
Co., Ltd. with the duration from 18 May 2020 to 10 May 2023, applying the borrowing rate by adding 23.5 basis points complying
with one-year level of loan prime rate.
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
100
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Other notes
Not applicable.
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes
Not applicable.
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:
101
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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:
Not applicable.
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Pending litigation 2,903,327.87 2,903,327.87 Contract disputes
Total 2,903,327.87 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
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Government grants
Government grants 341,259.63 24,375.69 316,883.94 for Huangyuyuan
Primary School
Total 341,259.63 24,375.69 316,883.94 --
Item involving government grants:
Unit: RMB
Amount Amount
recorded into recorded into Amount
Amount of Related to
Beginning non-operatin other income offset cost in Other Ending
Item newly assets/related
balance g income in in the the Reporting changes balance
subsidy to income
the Reporting Reporting Period
Period Period
Government
341,259.63 24,375.69 316,883.94 Related to
grants for
102
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Huangyuyua assets
n Primary
School
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 237,163.63 237,163.63
Housing principle fund 11,841,425.22 13,215,811.13
House warming deposit 7,034,466.22 7,052,274.22
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed maintenance fund 47,144,427.77 36,337,634.47
Follow-up investment of employees for
40,000,000.00 40,000,000.00
Guanlan Bangling project
Other 1,355,416.78 7,302,438.57
Total 111,632,315.06 108,164,737.46
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
103
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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:
Not applicable.
55. Capital Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other capital reserves 80,488,045.38 80,488,045.38
Total 80,488,045.38 80,488,045.38
Other notes, including changes and reason of change:
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
Not applicable.
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less:
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
Beginning Ending
Item taxation in prior period prior Income the non-contro
balance balance
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 -455,146.1 -455,146.1 -2,506,4
that may not be reclassified to 4 6 6 14.40
104
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
profit or loss
Changes in fair value of
-2,051,268.2 -455,146.1 -455,146.1 -2,506,4
other equity instrument
4 6 6 14.40
investment\
II. Other comprehensive income
1,032,011. 1,032,011. 384,908.
that may subsequently be -647,103.20
50 50 30
reclassified to profit or loss
Differences arising from
1,032,011. 1,032,011. 384,908.
translation of foreign currency -647,103.20
50 50 30
denominated financial statements
Total of other comprehensive -2,698,371.4 576,865.3 576,865.3 -2,121,5
income 4 4 4 06.10
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
Not applicable.
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
16,695,044.92 16,695,044.92
reserves
Discretionary surplus
365,403.13 365,403.13
reserve
Total 17,060,448.05 17,060,448.05
Notes, including changes and reason of change:
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
2,457,119,795.39 2,495,296,440.15
adjustments
Beginning balance of retained earnings after
2,457,119,795.39 2,495,296,440.15
adjustments
105
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Add: Net profit attributable to owners of the
211,967,734.76 155,922,425.40
Company as the parent
Dividend of ordinary shares payable 214,552,473.12 178,793,727.60
Other 204,015,557.97
Ending retained earnings 2,454,535,057.03 2,268,409,579.98
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standa rds
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) RMB0.00 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 1,388,266,376.69 596,935,670.85 1,023,860,469.96 582,867,402.64
Other operations 32,811,391.14 14,759,272.95 41,620,412.34 16,808,126.14
Total 1,421,077,767.83 611,694,943.80 1,065,480,882.30 599,675,528.78
Relevant information of revenue:
Unit: RMB
Category of Segment of real Segment of property
Segment 1 Segment 2 Total
contracts estate management
Of which:
Real estate 858,698,806.07 858,698,806.07
Lease 71,395,976.18 71,395,976.18
Property
490,591,863.98 490,591,863.98
management
Other 391,121.60 391,121.60
Total 930,485,903.85 490,591,863.98 1,421,077,767.83
Of which:
Shenzhen 887,005,216.90 323,029,209.74 1,210,034,426.64
Dongguan 17,218,092.99 3,500,404.46 20,718,497.45
Other 26,262,593.96 164,062,249.78 190,324,843.74
106
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Total 930,485,903.85 490,591,863.98 1,421,077,767.83
Of which:
Of which:
Of which:
Products (transfer to
revenue in certain 858,698,806.07 858,698,806.07
time and place)
Services and labor
services (withdraw
71,787,097.78 490,591,863.98 562,378,961.76
revenue in certain
time)
Total 930,485,903.85 490,591,863.98 1,421,077,767.83
Of which:
Of which:
Information related to performance obligations:
On 30 June 2020, the transaction price assigned to unfulfilled (or partially unfulfilled) performance obligations was estimated to
RMB319 million, which is mainly expected future revenue of transaction price that haven’t met the delivery conditions stipulated in
sales contracts of real estate. The Company is expected to recognize the realization of sales revenue within one to two years when the
house property is completed and passed the acceptance which meet the delivery conditions stipulated in sales contracts, and when the
customers acquire the control rights of relevant goods or services.
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet
was RMB319,303,958.11 at the period-end, among which RMB120,122,226.00 was expected to be recognized in 2020,
RMB199,181,732.11 in 2021 and RMBXXX in XXX year.
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 B Building 806,676,918.09
2 Banshan Yujing Phase I 18,021,691.42
3 SZPRD-Songhu Langyuan 17,218,092.99
4 Hupan Yujing Phase II 4,910,299.99
5 Hupan Yujing Phase I 3,169,110.11
62. Taxes and Surtaxes
Unit: RMB
107
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Item Reporting Period Same period of last year
Urban maintenance and construction tax 4,909,118.92 3,492,372.40
Education Surcharge 2,190,590.78 1,527,504.48
Property tax 4,767,394.20 5,537,862.44
Land use tax 416,264.69 515,594.86
Stamp tax 349,634.68 679,836.88
Local education surtax 1,342,087.15 1,020,664.08
Land VAT 380,741,616.91 112,267,887.84
Other taxes 26,773.28 23,301.88
Total 394,743,480.61 125,065,024.86
Other notes:
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Agency fee 2,151,630.50 2,482,978.21
Consultancy and sales service charges 3,853,286.19 9,063,475.32
Advertising 914,173.18 3,240,236.82
Employee benefits 2,569,826.33 1,972,134.95
Other 2,055,143.99 1,533,899.42
Total 11,544,060.19 18,292,724.72
Other notes:
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 63,277,704.59 56,827,778.30
Administrative office cost 4,730,219.94 8,030,632.94
Assets amortization and depreciation
5,064,453.12 2,630,845.23
expense
Litigation costs 521,647.00 1,496,981.13
Other 14,838,979.70 14,243,058.51
Total 88,433,004.35 83,229,296.11
Other notes:
108
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
65. Development Expense
Unit: RMB
Item Reporting Period Same period of last year
Other notes:
Not applicable.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 84,859,496.80 73,970,116.57
Less: Interest income (fill in by negative) -31,227,361.24 -31,182,804.42
Foreign exchange gains or losses 100,514.83 1,473,105.81
Other -286,332.01 646,652.97
Total 53,446,318.38 44,907,070.93
Other notes:
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Government grants related to income 82,514.69 15,668.48
Government grants related to assets 24,375.69
Commission charges return of deductible
196,952.96 9,501.12
income tax
Additional deduction of VAT 2,618,150.17 346,650.92
Total 2,921,993.51 371,820.52
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
157,061.79 780,826.57
accounted by equity method
Total 157,061.79 780,826.57
Other notes:
109
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
69．Net Gain on Exposure Hedges
Unit: RMB
Item Reporting Period Same period of last year
Other notes:
Not applicable.
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Other notes:
Not applicable.
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss of other receivables 1,115,927.46 -3,911,410.39
Total 1,115,927.46 -3,911,410.39
Other notes:
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and
1,832.91 1,333,825.60
contract performance cost
Total 1,832.91 1,333,825.60
Other notes:
73. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
74. Non-operating Income
Unit: RMB
Item Reporting Period Same period of last year Amount recorded in the current
110
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
non-recurring profit or loss
Government grants 3,588,738.19 787,776.97 3,340,160.83
Gains on damage and scrap of
14,826.92 240.00 14,826.92
non-current assets
Compensation income 313,043.22 578,755.77 313,043.22
Accounts unpayable 4,894,354.00
Other 327,567.57 614,291.72 576,144.93
Total 4,244,175.90 6,875,418.46 4,244,175.90
Government grants recorded into current profit or loss
Unit: RMB
Whether
influence the Special Related to
Distribution Distribution Reporting Same period
Item Nature profits or subsidy or assets/related
entity reason Period of last year
losses of the not to income
year or not
Obtained by
undertaking
state’s
functions of
Relevant ensuring
Subsidy of
departments certain public Related to
epidemic Subsidy No No 3,588,738.19
of local service or income
prevention
governments social
necessary
products
supply or
price control
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
Donation 2,030,000.00 5,000.00 2,030,000.00
Penalty and fine for delaying
27,535.95 64,407.89 27,535.95
payment
Other 341,951.75 1,744,191.41 341,951.75
Total 2,399,487.70 1,813,599.30 2,399,487.70
Other notes:
111
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 97,681,962.31 92,279,418.86
Deferred income tax expense -8,287,946.60 -22,558,114.36
Total 89,394,015.71 69,721,304.50
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 267,257,464.37
Current income tax expense accounted at statutory/applicable tax
66,814,366.09
rate
Influence of applying different tax rates by subsidiaries -284,867.54
Influence of income tax before adjustment 2,188,240.96
Influence of non-deductible costs, expenses and losses 1,406,601.97
Influence of deductible temporary difference or deductible losses
19,269,674.23
of unrecognized deferred income tax in the Reporting Period
Income tax expense 89,394,015.71
Other notes
77. Other Comprehensive Income
Refer to Note VII-57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Large intercourse funds received 274,561,798.03 31,787,416.36
Interest income 20,729,921.32 30,258,952.97
Net margins, security deposit and various
2,825,399.61 118,506.00
special funds received
112
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Accident fee and other payments on behalf
32,970,968.51 51,880,090.73
received
Other small receivables 2,631,928.91 1,842,628.36
Total 333,720,016.38 115,887,594.42
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Paying administrative expense in cash 20,150,492.86 22,944,468.53
Paying selling expense in cash 20,841,852.20 18,292,724.74
Large intercourse funds paid 48,968,020.00
Other small payments 1,265,190.63 3,453,560.15
Total 91,225,555.69 44,690,753.42
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
Not applicable.
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
Not applicable.
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
Not applicable.
113
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
Not applicable.
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 177,863,448.66 128,226,813.86
Add: Provision for impairment of assets -1,117,760.37 2,577,584.79
Depreciation of fixed assets, oil and gas
24,423,533.46 22,093,496.17
assets, and productive living assets
Amortization of intangible assets 109,162.21 109,162.21
Amortization of long-term prepaid expenses 1,555,086.14 727,444.43
Los on disposal of fixed assets, intangible
assets and other long-term assets (gains: 0.00 0.00
negative)
Losses on scrap of fixed assets (gains:
-14,826.92 -240.00
negative)
Finance costs (gains: negative) 84,859,496.80 73,970,116.57
Investment loss (gains: negative) -157,061.79 -780,826.57
Decrease in deferred income tax assets
-8,287,946.60 -22,558,114.36
(gains: negative)
Increase in deferred income tax liabilities
0.00 -994.04
(“-” means decrease)
Decrease in inventory (gains: negative) -455,620,688.15 -955,764,832.88
Decrease in accounts receivable generated
32,911,883.76 -87,626,285.03
from operating activities (gains: negative)
Increase in accounts payable used in
-1,479,706,466.10 442,338,663.15
operating activities (decrease: negative)
Net cash generated from/used in operating
-1,623,182,138.90 -396,688,011.70
activities
114
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 3,056,069,770.97 3,049,721,635.90
Less: Beginning balance of cash 3,285,345,233.47 3,881,027,257.89
Net increase in cash and cash equivalents -229,275,462.50 -831,305,621.99
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Add: Payment of cash or cash equivalents in the Current Period for
465,807,569.82
previous enterprise combination
Of which: --
Net payments for acquisition of subsidiaries 465,807,569.82
Other notes:
The final payment for acquisition of equity in Shenzhen Toukong Property Management Co., Ltd..
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
Not applicable.
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 3,056,069,770.97 3,285,345,233.47
Including: Cash on hand 164,191.19 130,048.49
115
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Bank deposit on demand 3,043,214,965.74 3,272,524,570.94
Other monetary assets on demand 12,690,614.04 12,690,614.04
III. Ending balance of cash and cash
3,056,069,770.97 3,285,345,233.47
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 of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary assets 22,871,902.65 Note 1, Note 2, Note 3, Note 4
Total 22,871,902.65 --
Other notes:
Note 1: In terms 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 XIV-(II)1 for relevant matters involved
with lawsuit for details.
Note 2: In terms 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.
Note 3: In terms 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 XIV-(II) 2 for details.
Note 4: In terms of monetary assets with restricted right to use at the period-end, there was interest of fixed time deposit of
RMB14,627,716.73 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 -- --
Of which: USD
116
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
EUR
HKD 61,337,962.53 0.9134 56,026,094.97
Accounts receivable -- --
Of which: USD
EUR
HKD
Long-term borrowings -- --
Of which: USD
EUR
HKD
Other equity instrument
investment
Of which: USD 91,707.93 7.0795 649,246.29
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
Main
Item 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:
Not applicable.
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Category Amount Listed items Amount recorded in the current
117
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
profit or loss
Small and micro businesses
23,941.71 Non-operating income 23,941.71
VAT exemption
Reinforcement subsidy of
24,375.69 Other income 24,375.69
Huangyuyuan Primary School
Stable post subsidy 58,572.98 Other income 58,572.98
Subsidy of epidemic prevention 3,588,738.19 Non-operating income 3,588,738.19
Total 3,695,628.57 3,695,628.57
(2) Return of Government Grants
□ Applicable √ Not applicable
Other notes:
85. Other
Not applicable.
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Unit: RMB
Income of Net profits of
Time and
Cost of Recognition acquiree from acquiree from
Name of place of Proportion of Way to gain
gaining the Purchase date basis of the purchase the purchase
acquiree gaining the equity the equity
equity purchase date date to date to
equity
period-end period-end
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
Note to determination method of the fair value of the combination cost, consideration and changes:
The main formation reason for the large goodwill:
Other notes:
118
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Carrying value on purchase date
The determination method of the fair value of identifiable assets and liabilities :
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
Not applicable.
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
Other notes:
(2) Combination Cost
Unit: RMB
Combination cost
Contingent liabilities of the combined party undertaken in the business combination
Other notes:
119
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Combination date Period-end of the last period
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
Not applicable.
3. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies
whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights
and interests in accordance with the equity transaction process:
Not applicable.
4. Disposal of Subsidiary
Whether there is a single disposa l 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 new establishment or liquidation of subsidiaries, etc.) and relevant
information:
Not applicable.
6. Other
Not applicable.
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Shenzhen Shenzhen Shenzhen Real estate 100.00% Set-up
120
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Huangcheng Real
Estate Co., Ltd.
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 Real
Estate 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.
Chongqing
Chongqing Chongqing Real estate 100.00% Set-up
Shenzhen
121
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
International
Trade Center
Property
Management Co.,
Ltd.
Chongqing Aobo
Chongqing Chongqing Service 100.00% Set-up
Elevator Co., Ltd.
Chongqing
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.
Wayhang
Hong Kong Hong Kong Real estate 100.00% Set-up
Development Co.,
122
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
Shenzhen Julian Business
Shenzhen Shenzhen Service 100.00%
Human Resources combination
123
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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.
Shenzhen Shenlv
Business
Garden
Public facilities combination
Technology Shenzhen Shenzhen 90.00%
management under the same
Industrial Co.,
control
Ltd.
124
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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:
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:
125
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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% -33,405,822.54 0.00 73,077,691.51
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 4,399,87 78,465,1 4,478,34 139,937, 3,999,80 4,139,73 4,111,81 42,716,5 4,154,53 53,136,9 3,757,90 3,811,03
Estate 9,370.25 24.43 4,494.68 223.37 0,000.00 7,223.37 5,612.87 64.22 2,177.09 70.47 0,000.00 6,970.47
Develop
ment
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
-107,760,717. -107,760,717. -386,770,711. -91,139,605.7 -91,139,605.7 -576,763,060.
Real Estate 0.00 0.00
87 87 35 1 1 18
Development
Co., Ltd.
Other notes:
126
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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
Not applicable.
(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 Jifa
Warehouse
Warehouse Co., Shenzhen Shenzhen 50.00% Equity method
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:
Not applicable.
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but doe s not
127
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
have a significant impact:
(2) Main Financial Information of Significant Joint Ventures
Unit: RMB
Ending balance/Reporting Period Beginning balance/The same period of last year
Tian’an International Tian’an International
Shenzhen Jifa Warehouse Building Property Shenzhen Jifa Warehouse Building Property
Co., Ltd. Management Company Co., Ltd. Management Company
of Shenzhen of Shenzhen
Current assets 3,868,284.61 53,933,973.04 8,330,101.77 53,771,789.30
Of which: Cash and cash
1,849,825.84 33,715,032.55 3,913,864.25 34,531,027.99
equivalents
Non-current assets 75,623,155.59 43,779.72 75,129,933.91 42,265.30
Total assets 79,491,440.20 53,977,752.76 83,460,035.68 53,814,054.60
Current liabilities 2,174,273.25 24,695,642.12 6,230,492.36 24,725,254.19
Non-current liability 16,132,908.53 16,166,098.30
Total liabilities 2,174,273.25 40,828,550.65 6,230,492.36 40,891,352.49
Equity attributable To
owners of the Company 77,317,166.95 13,149,202.11 77,229,543.32 12,922,702.11
as the parent
Portion of net assets
calculated according to
38,658,583.48 6,574,601.06 38,614,771.66 6,461,351.06
proportion of
shareholdings
Carrying value of equity
investment to joint 38,658,583.48 6,574,601.06 38,614,771.66 6,461,351.06
ventures
Operating revenue 2,523,193.69 8,588,350.29 3,127,168.02 10,118,037.30
Finance expense -2,946.63 24,599.52 -12,030.91 3,608.49
Income tax expense 29,207.88 75,648.84 467,887.30 99,490.19
Net profit 87,623.63 226,500.00 1,321,510.93 240,142.21
Total comprehensive
87,623.63 226,500.00 1,321,510.93 240,142.21
income
Other notes
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
128
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Beginning balance/The same period of last
Ending balance/Reporting Period
year
Other notes
Not applicable.
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/The same period of last
Ending balance/Reporting Period
year
Joint 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
Not applicable.
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Not applicable.
(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
Not applicable.
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Not applicable.
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Not applicable.
129
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
Not applicable.
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:
Not applicable.
6. Other
Not applicable.
X. The Risk Related to Financial Instrume nts
The Company is engaged in risk management to achieve balance between risks and returns, minimizing the 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 instrume nts 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 unne cessary 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.
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 de fine 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
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 ris ks, 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 acc ounts
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 30 June 2020, there are certain credit concentration risks, and
56.25% of accounts receivable of the Company (63.81% on 31 December 2019) 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 the 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
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capital expenditure.
Financial liabilities classified by remaining maturity
Ending balance
Item Undiscounted
Carrying value Within 1 year 1 to 3 years Over 3 years
contract amount
Bank loans 3,584,900,000.00 4,431,761,984.50 219,719,134.06 492,504,754.00 3,719,538,096.44
Accounts 577,689,139.10 577,689,139.10 577,689,139.10
receivable
Other 807,985,786.65 807,985,786.65 807,985,786.65
receivables
Current 786,239,116.67 787,520,246.39 787,520,246.39
portion for
other
non-current
liabilities
Subtotal 5,756,814,042.42 6,604,957,156.64 2,392,914,306.20 492,504,754.00 3,719,538,096.44
(Continued)
Beginning balance
Item Undiscounted
Carrying value 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
payable
Other 1,136,902,252.81 1,136,902,252.81 1,136,902,252.81
payables
Current 3,921,032.24 3,926,732.24 3,926,732.24
portion for
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
(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 interest rate. The Company will
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.
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
As of 30 June 2020, under the assumption of fixed variables with 50 basis points changed in interest rate, the bank loan with
RMB2,999,900,000.00 (RMB2,193,933,000.00 on 31 December 2019) 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 VII-82 for the information of foreign currency monetary assets and liabilities at the period-end for 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
1,134,803.13 1,134,803.13
instrument investment
Total amount of assets at
1,134,803.13 1,134,803.13
fair 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
30 June 2020 shall be regarded as the fair value.
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
Name Registration place Nature of business Registered capital Company as the Company as the
parent against the parent against the
Company (%) Company (%)
Shenzhen
Managing
Investment Holdings Shenzhen RMB25,349 million 57.96% 57.96%
state-owned assets
Co., Ltd
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 Subsidiary for details.
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
Not applicable.
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
Shenzhen Bay Area Urban Construction and Development Co., Wholly-owned subsidiary of the Company as the parent of the
Ltd. 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
Shenzhen Bay
Management
Technology 33,458,508.93 27,169,639.46
service
Development Co.,
135
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Ltd.
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 18,958,078.79 5,394,746.24
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and Development Property management 713,736.06 0.00
Co., Ltd.
Shenzhen Hi-tech Zone
Development Construction Co., Property management 669,509.81 683,947.62
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 19,566,423.45
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
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
The Company was lessee:
Unit: RMB
The lease fee confirmed in the The lease fee confirmed in the
Name of lessor Category of leased assets
Reporting Period Same period of last year
Shenzhen Shentou Property
Investment property 190,340.58 133,177.08
Development Co., Ltd.
Notes:
(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:
Not applicable.
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related party Amount Start date End date Note
Borrowing
Lending
(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
6,604,773.44 4,115,229.51
personnel
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(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 effic iency 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 with no accumulated back-up fund. There is no change in
follow-up investment and accumulated back-up fund in 2020. The follow-up investment of the item is as follows:
Item Total amount Accumulative return
Bangling urban renewal project (Note) 40,000,000.00
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Shenzhen Bay
Technology
Accounts receivable 112,143,815.18 3,364,314.46 93,790,305.70 4,689,515.29
Development Co.,
Ltd.
Shenzhen Hi-tech
Zone Development
954,769.70 28,643.09 1,045,589.81 31,367.69
Construction Co.,
Ltd.
Shenzhen Bay Area
Urban Construction
713,736.06 21,412.08
and Development
Co., Ltd.
Shenzhen Xinhai
Other receivables 401,499,990.18 551,499,990.18
Holding Co., Ltd.
Shenzhen Xinhai
Rongyao Real Estate
330,472,932.33 330,472,932.33
Development Co.,
Ltd.
138
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Shenzhen Hi-tech
Zone Development
138,689.46 69,344.73 138,689.46 69,344.73
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.
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Shenzhen Real Estate Jifa
Other payables 35,796,665.14 35,796,665.14
Warehousing Co., Ltd.
Shenzhen Tian’an International
Mansion Property 5,214,345.90 5,214,345.90
Administration Co., Ltd.
Shenzhen Bay Technology
33,458,508.93
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and Development 358,252.18
Co., Ltd.
Shenzhen Shentou Property
6,888,594.77
Development Co., Ltd.
7. Commitments of Related Party
8. Other
XIII. Stock Payment
1. The Overall Situation of Stock Payme nt
□ Applicable √ Not applicable
2. The Stock Payment Settled in Equity
□ Applicable √ Not applicable
3. The Stock Payment Settled in Cash
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
4. Modification and Termination of the Stock Payment
5. Other
XIV. Commitments and Contingency
1. Significant Commitments
Significant Contingency on Balance Sheet Date
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 147,758,430.24 498,279,835.00
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 31 October 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
ruling and has appealed to Shenzhen Intermediate People’s Court. On 29 April 2020, Guangdong Higher People's Court judged to
reject the appeal of the Company and maintained the original judgment. 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” develope d
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 asked for stopping nuisance and 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 invo lved
in the series of cases was RMB8.154 million. Futian District People’s Court has opened the trial, but hasn’t given the judgment. As
of the issuance date of the report, there is no new progress in the case. Due to no judgment given from the court, the Company hasn’t
accrued the estimated liability for the case.
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. on 23 June 2019, the bank account balance under
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Huazhengpeng's name was deducted RMB 111,545.36 during the enforcement process by Futian District People’s Court, and the
account of Huazhengpeng Company was frozen, at this point, there are no executable assets under Huazhengpeng's name.
Huazhengpeng accrued the 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 fa ct 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. Cai Xuesen applied for a retrial, and Guangdong Higher People's Court judged to reject the retrial application on 17
September 2019. The Compant has accrued the estimated liability in full 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. On 5
November 2019, the court ruled in the first instance that the service contrict signed shall be terminated on 21 May 2019, and Taixinli
should pay the residual supervision service fees of RMB2.3379 million and its interest to Lubanhang. Taixinli has instituted the
appeal, and the second trial has opened but no judgment. Taixinli has paid part of the supervision service fees and corresponding
interest according to the fault liability. 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
①As 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 30 June 2020, the balance of the cash deposit that have not been released
is RMB1,120,910.60. That guarantee will be released on the date when the mortgage money is paid off.
②The 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 30 June 2020 is RMB291,699.484.08 and since so far, purchasers have not defaulted, and the current market price of 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.
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
3. Sales Return
Not applicable.
4. Notes to Other Events after Balance Sheet Date
Not applicable.
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
2. Debt Restructuring
Not applicable.
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
Other notes
Not applicable.
6. Segment Information
(1) Determination Basis and Accounting Policies of 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 bus iness
and latex business. The assets and liabilities sharing with other segments shall be proportionally distributed among segments by
scales.
(2) The Financial Information of Reportable Segment
Unit: RMB
Property Offset among
Item Real estate House rental Others Total
management segment
Main operation 858,698,806.07 503,900,511.94 74,034,931.14 2,350,593.28 -17,907,074.60 1,421,077,767.83
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ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
revenue
Main operation
147,212,422.45 430,811,529.01 45,663,839.65 1,791,479.94 -13,784,327.25 611,694,943.80
cost
14,202,954,456.2 -4,864,331,432.4 10,948,847,072.5
Total assets 1,103,321,905.06 503,444,362.38 3,457,781.30
7 3 8
11,743,875,757.0 -4,894,458,753.0
Total liabilities 659,755,316.00 202,923,139.56 5,456,470.96 7,717,551,930.51
4 5
(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
Not applicable.
8. Other
Not applicable.
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
93.20% 100.00% 0.00 99.16% 100.00% 0.00
provision separately 69.40 69.40 9.40 9.40
accrued
Of which:
Accounts receivable 7,051,08 234,254. 6,816,835 820,241.3
6.80% 3.32% 0.84% 64,309.16 7.84% 755,932.14
withdrawal of bad 9.35 18 .17 0
144
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
debt provision by
group
Of which:
103,753, 96,936,5 6,816,835 97,522,51 96,766,57
Total 100.00% 93.43% 100.00% 99.22% 755,932.14
358.75 23.58 .17 0.70 8.56
Accounts receivable for which bad debt provision separately accrued: RMB 96,702,269.40
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
Development Company property
Shenzhen Tewei Industry
Long aging and expected
Co., Ltd. (Chenhui 2,836,561.00 2,836,561.00 100.00%
to be irrecoverable
Building)
Luohu District Economic Long aging and expected
54,380.35 54,380.35 100.00%
Development Company to be unrecoverable
Total 96,702,269.40 96,702,269.40 -- --
Accounts receivable for which bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Accounts receivable withdrawal of bad debt provision by group: RMB234,254.18
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk features group 7,051,089.35 234,254.18 3.32%
Total 7,051,089.35 234,254.18 --
Notes to the determination basis for the group:
Accounts receivable withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 6,726,496.58 201,794.90 3.00%
1 to 2 years 324,592.77 32,459.28 10.00%
Total 7,051,089.35 234,254.18 --
Notes to the determination basis for the group:
145
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Accounts receivable 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 notes receivable.
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 6,726,496.58
1 to 2 years 324,592.77
2 to 3 years 0.00
Over 3 years 96,702,269.40
3 to 4 years 0.00
4 to 5 years 0.00
Over 5 years 96,702,269.40
Total 103,753,358.75
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
Bad Debt Provision Withdrawal in the Reporting Period:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Accounts
receivable for
which bad debt
96,702,269.40 0.00 0.00 0.00 0.00 96,702,269.40
provision
separately
accrued
Accounts
receivable
withdrawal of bad 64,309.16 169,945.02 0.00 0.00 0.00 234,254.18
debt provision by
group
146
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Total 96,766,578.56 169,945.02 0.00 0.00 0.00 96,936,523.58
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
(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:
Not applicable.
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Proportion to the total ending
Ending balance of accounts Ending balance of bad debt
Name of entity balance of accounts receivable
receivable provision
(%)
Shenzhen Jiyong Properties &
Resources Development 93,811,328.05 90.42% 93,811,328.05
Company
Shenzhen Tewei Industry Co.,
2,836,561.00 2.73% 2,836,561.00
Ltd. (Chenhui Building)
Shenzhen Rainbow Department
2,561,709.85 2.47% 99,572.79
Store Co., Ltd.
Agency Property Management
1,167,132.00 1.12% 35,013.96
Office of Luohu
China Pacific Insurance
592,021.00 0.57% 17,760.63
(Group) Co., Ltd.
Total 100,968,751.90 97.31%
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
Not applicable.
147
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement of
Accounts Receivable
Not applicable.
Other notes:
Not applicable.
2. Other Accounts Receivable
Unit: RMB
Item Ending balance Beginning balance
Other accounts receivable 307,850,283.10 501,082,153.81
Total 307,850,283.10 501,082,153.81
(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
148
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
Nature Ending carrying amount Beginning carrying amount
Deposit 2,209,111.80 2,139,511.80
Payment on behalf 16,557.82
External intercourse funds 23,164,684.06 23,164,046.99
Intercourse funds to subsidiary 314,881,167.01 508,280,508.64
Total 340,254,962.87 533,600,625.25
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
16,036,529.31 16,481,942.13 32,518,471.44
2020
Balance of 1 January
2020 in the Current —— —— —— ——
Period
Withdrawal of the
29,442.69 29,442.69
Current Period
Reversal of the Current
143,234.36
Period
Balance of 30 June 2020 15,922,737.64 16,481,942.13 32,404,679.77
Changes of carrying amount with significant amount changed of loss provision in the Reporting Period
□ Applicable √ Not applicable
149
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 years (including 1 year) 950,168.04
1 to 2 years 36,905,250.20
2 to 3 years 1,883,905.23
Over 3 years 300,515,639.40
3to 4 years 46,488,872.67
4to 5 years 52,823,059.02
Over 5 years 201,203,707.71
Total 340,254,962.87
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Bad debt
provision
23,748,219.30 143,234.36 23,604,984.94
withdrawn
separately
Bad debt
provision
8,770,252.14 29,442.69 8,799,694.83
withdrawn by
group
Total 32,518,471.44 29,442.69 143,234.36 32,404,679.77
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
150
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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 other
bad debt provision
receivables %
Shum Yip Properties Intercourse funds to
112,060,954.38 Over 5 years 32.93% 7,123,042.81
Development Limited subsidiary
SZPRD Xuzhou
Dapeng Real Estate Intercourse funds to
69,746,069.13 1 to 3 years 20.50%
Development Co., subsidiary
Ltd.
Shenzhen
Intercourse funds to
Huangcheng Property 63,125,906.77 2 to 3 years 18.55%
subsidiary
Management Co., Ltd.
SZPRD Yangzhou
Real Estate Intercourse funds to
28,954,840.54 3 to 4 years 8.51%
Development Co., subsidiary
Ltd.
Shanghai Yutong Real External intercourse
5,676,000.00 Over 5 years 1.67% 5,676,000.00
Estate Co., Ltd. funds
Total -- 279,563,770.82 -- 82.16% 12,799,042.81
6) Accounts Receivable Involving Government Grants
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
grants time, amount and basis
Not applicable.
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Not applicable.
151
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Not applicable.
Other notes:
Not applicable.
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Investment to
1,095,429,880.39 69,964,000.00 1,025,465,880.39 1,095,429,880.39 69,964,000.00 1,025,465,880.39
subsidiaries
Investment to
joint ventures and
64,216,798.65 18,983,614.14 45,233,184.51 64,059,736.86 18,983,614.14 45,076,122.72
associated
enterprises
Total 1,159,646,679.04 88,947,614.14 1,070,699,064.90 1,159,489,617.25 88,947,614.14 1,070,542,003.11
(1) Investment to Subsidiaries
Unit: RMB
Beginning Increase/decrease
Ending balance
balance Depreciation Ending balance
Investee Additional Reduced of depreciation
(carrying reserve Other (carrying value)
investment investment reserve
value) withdrawn
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.
152
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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.
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 508,000,000.0
508,000,000.00
Rongyao Real 0
153
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
Estate
Development
Co., Ltd.
Shenzhen
Toukong
317,963,207.4
Property 317,963,207.46
6
Management
Co., Ltd.
1,025,465,880. 1,025,465,880.
Total 69,964,000.00
39 39
(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
Shenzhen
Real
Estate
38,614,77 38,658,58
Jifa 43,811.79
1.66 3.45
Warehous
ing Co.,
Ltd.
Tian’an
Internatio
nal
Building
Property 6,461,351 113,250.0 6,574,601
Managem .06 0 .06
ent
Company
of
Shenzhen
45,076,12 157,061.7 45,233,18
Subtotal
2.72 9 4.51
154
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
II. Associated enterprises
Shenzhen
Wufang
18,983,61
Ceramics
4.14
Industrial
Co., Ltd.
18,983,61
Subtotal
4.14
45,076,12 157,061.7 45,233,18 18,983,61
Total
2.72 9 4.51 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 25,828,330.02 15,835,977.53 341,910,051.35 64,045,206.33
Other operations 659,988.00
Total 25,828,330.02 15,835,977.53 341,910,051.35 64,705,194.33
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Information related to performance obligations:
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet was
RMB0.00 at the period-end, among which RMB0.00 was expected to be recognized in the year, RMBXXX in the year and RMBXXX
in the year.
Other notes:
155
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
157,061.79 780,826.57
accounted by equity method
Investment income of financial instrument
62,416,928.73 16,099,318.67
during holding period
Total 62,573,990.52 16,880,145.24
6. Other
Not applicable.
XVIII. Supple mentary 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
1,901.04 Disposal of retail assets
assets
Government grants recognized in the Current
Period, except for those acquired in the
ordinary course of business or granted at 3,647,311.17 Subsidy of epidemic prevention received
certain quotas or amounts according to the
government’s unified standards
Other non-operating income and expense
-1,905,036.49
other than the above
Less: Income tax effects 400,624.88
Non-controlling interests effects -2,560.54
Total 1,346,111.38 --
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
156
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
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
6.66% 0.3557 0.3557
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
6.62% 0.3534 0.3534
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
157
ShenZhen Properties & Resources Development (Group) Ltd. Semiannual financial Report 2020
158
