ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
ANNUAL REPORT 2020
(Announcement No. 2021-07)
March 2021
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material
omissions therein.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Liu Qiang, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on
Information Disclosure by Industry—for Listed Companies Engaging in Real Estate.
The Company has described in detail in this Report the possible risks facing it, along with
countermeasures. Please refer to the section headed “Prospects” of “Part IV Operating
Performance Discussion and Analysis” of this Report.
The Board has approved a final dividend plan as follows: based on the share capital of
595,979,092 shares, a cash dividend of RMB4.1 (tax inclusive) per 10 shares is to be
distributed to the shareholders, with no bonus issue from either profit or capital reserves.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 5
Part III Business Summary............................................................................................................. 10
Part IV Operating Performance Discussion and Analysis............................................................16
Part V Significant Events.................................................................................................................47
Part VI Share Changes and Shareholder Information................................................................. 65
Part VII Preferred Shares................................................................................................................75
Part VIII Convertible Corporate Bonds........................................................................................ 76
Part IX Directors, Supervisors, Senior Management and Staff...................................................77
Part X Corporate Governance........................................................................................................ 87
Part XI Corporate Bonds.................................................................................................................95
Part XII Financial Statements.........................................................................................................96
Part XIII Documents Available for Reference............................................................................. 252
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Definitions
Term Definition
ShenZhen Properties & Resources Development (Group) Ltd. and its
The “Company”, the “Group”, “SZPRD” or “we”
consolidated subsidiaries, except where the context otherwise requires
SIHC Shenzhen Investment Holdings Co., Ltd.
ITC Technology Park Shenzhen ITC Technology Park Service Co., Ltd.
Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co., Ltd.
Dongguan Company Dongguan ITC Changsheng Real Estate Development Co., Ltd.
Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.
Yangzhou Company SZPRD Yangzhou Real Estate Development Co., Ltd.
Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co., Ltd.
ITC Property Management Shenzhen International Trade Center Property Management Co., Ltd.
Huangcheng Property Management Shenzhen Huangcheng Property Management Co., Ltd.
Shandong Shenguomao Real Estate Management Shandong Shenguomao Real Estate Management Co., Ltd.
Chongqing Shenguomao Real Estate Management Chongqing Shenguomao Real Estate Management Co., Ltd.
Shouxihu Jingyue Yangzhou Shouxihu Jingyue Property Development Co., Ltd.
Shenzhen Shenshan Special Cooperation Zone Guomao Property
Shenshan Guomao Property Development
Development Co., Ltd.
Guomao Tongle Property Management Shenzhen Guomao Tongle Property Management Co., Ltd.
Commercial Operation Company Shenzhen SZPRD Commercial Operation Co., Ltd.
Guomao Catering Shenzhen Guomao Catering Co., Ltd.
Supervision Company Shenzhen Property Engineering and Construction Supervision Co., Ltd.
Expressed in the Chinese currency of Renminbi, expressed in tens of
RMB, RMB’0,000, RMB’00,000,000
thousands of Renminbi, expressed in hundreds of millions of Renminbi
COVID-19 The novel coronavirus disease that started in 2019
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name PRD, PRD-B Stock code 000011, 200011
Changed stock name (if any) N/A
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 深圳市物业发展(集团)股份有限公司
Abbr. 深物业集团
Company name in English (if
ShenZhen Properties & Resources Development (Group) Ltd.
any)
Abbr. (if any) SZPRD
Legal representative Liu Shengxiang
39/F and 42/F, International Trade Center, Renmin South Road, Luohu District, Shenzhen,
Registered address
Guangdong Province, P.R.China
Zip code 518014
16/F, 20/F, 39/F and 42/F, International Trade Center, Renmin South Road, Luohu District,
Office address
Shenzhen, Guangdong Province, P.R.China
Zip code 518014
Company website www.szwuye.com.cn
Email address 000011touzizhe@szwuye.com.cn
II Contact Information
Board Secretary Securities Representative
Name Zhang Gejian Ding Minghua and Chen Qianying
20/F, International Trade Center, Renmin South 39/F, International Trade Center, Renmin South Road,
Address Road, Luohu District, Shenzhen, Guangdong Luohu District, Shenzhen, Guangdong Province,
Province, P.R.China P.R.China
Tel. 0755-82211020 0755-82211020
Fax 0755-82210610 82212043 0755-82210610 82212043
Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
III Media for Information Disclosure and Place where this Report Is Lodged
Newspapers designated by the Company for For A-stock investors: Securities Times
information disclosure For B-stock investors: Ta Kung Pao (HK)
Website designated by CSRC for publication of this
www.cninfo.com.cn
Report
Board Office, 39/F, International Trade Center, Renmin South Road, Luohu
Place where this Report is lodged
District, Shenzhen, Guangdong Province, P.R.China
IV Change to Company Registered Information
Unified social credit code No change
Change to principal activity of the
No change
Company since going public (if any)
On 29 September 2004, the State-Owned Assets Supervision and Administration
Commission of Shenzhen Municipality (“SASAC Shenzhen”) decided to incorporate
Shenzhen Investment Holdings Co., Ltd. (“SIHC”) to include Shenzhen Investment
Management Co., Ltd. (“SIM”, the former controlling shareholder of the Company)
and Shenzhen Construction Investment Holdings Corporation (“SCIHC”). SCIHC and
SIM hold 323,796,324 and 56,582,573 shares respectively in the Company,
Every change of controlling shareholder
representing a combined stake of 63.82%.
since incorporation (if any)
On 19 October 2018, the Company was notified by its actual controlling shareholder
SIHC that it had received the Confirmation of Securities Transfer Registration from
China Securities Depository and Clearing Co., Ltd. (Shenzhen branch), marking the
completion of the equity transfer to SIHC. As such, SIHC has become the controlling
shareholder of the Company.
The controlling shareholder remained unchanged during the Reporting Period.
V Other Information
The independent audit firm hired by the Company:
Name Baker Tilly China Certified Public Accountants LLP
9/F, Zhonghe Plaza, 2002 Shennan Middle Road, Futian District, Shenzhen, Guangdong
Office address
Province, China
Accountants writing signatures Li Ming and Chen Zihan
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for the retrospective restatements:
Business combination involving entities under common control
2020-over-2019 2018
2020 2019
change (%) Before Restated
Operating revenue (RMB) 4,104,374,646.02 3,961,669,942.44 3.60% 2,787,240,632.53 3,376,673,249.90
Net profit attributable to
the listed company’s 798,572,121.74 817,805,780.12 -2.35% 592,723,852.71 698,050,728.96
shareholders (RMB)
Net profit attributable to
the listed company’s
shareholders before 788,377,322.39 695,675,201.19 13.33% 591,362,024.37 591,362,024.37
exceptional gains and
losses (RMB)
Net cash generated
from/used in operating 385,497,782.12 939,789,565.96 -58.98% 1,123,594,927.59 1,231,718,056.18
activities (RMB)
Basic earnings per share
1.3399 1.3722 -2.35% 0.9945 1.1713
(RMB/share)
Diluted earnings per share
1.3399 1.3722 -2.35% 0.9945 1.1713
(RMB/share)
Weighted average return on
23.47% 20.46% 3.01% 18.94% 19.47%
equity (%)
Change of 31 31 December 2018
December 2020
31 December 2020 31 December 2019 over 31
Before Restated
December 2019
(%)
Total assets (RMB) 12,207,356,912.54 10,772,491,740.53 13.32% 5,820,202,137.54 7,023,354,613.55
Equity attributable to the
listed company’s 3,727,917,440.03 3,147,949,009.38 18.42% 3,337,949,324.64 3,872,406,104.67
shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was
uncertainty about the Company’s ability to continue as a going concern.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative.
□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 861,546,080.08 559,531,687.75 332,619,949.47 2,350,676,928.72
Net profit attributable to the
152,014,318.10 59,953,416.66 -19,555,182.58 606,159,569.56
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders
152,909,860.77 57,711,762.61 -19,618,268.67 597,373,967.68
before exceptional gains and
losses
Net cash generated from/used in
-609,307,576.52 -1,013,874,562.38 1,170,415,181.72 838,264,739.30
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Item 2020 2019 2018 Note
Gain or loss on disposal of non-current
assets (inclusive of impairment allowance -322,603.77 47,015.23 -79,489.58
write-offs)
Government subsidies charged to current
profit or loss (exclusive of government
subsidies given in the Company’s ordinary Pandemic-related
7,100,657.34 2,410,184.82 165,676.08
course of business at fixed quotas or government grant
amounts as per the government’s uniform
standards)
Current profit or loss on subsidiaries
obtained in business combinations
involving enterprises under common 118,680,871.93 105,442,907.48
control from the period-beginning to
combination dates, net
Gain or loss on contingencies that do not
Expected lawsuit-related
arise in the Company’s ordinary course of -2,396,947.00
compensation
business
Reversed portions of impairment
allowances for receivables and contract
19,900.00
assets which are tested individually for
impairment
Non-operating income and expense other Demolition compensation
9,089,508.74 2,048,751.21 1,724,017.41
than the above received
Other gains and losses that meet the
94,284.37 91,337.56
definition of exceptional gain/loss
Less: Income tax effects 3,470,226.55 1,146,936.51 448,375.57
Non-controlling interests effects (net of
-80,226.22 645.31 116,031.23
tax)
Total 10,194,799.35 122,130,578.93 106,688,704.59 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part III Business Summary
I Principal Activity of the Company in the Reporting Period
(I) Core Business Overview
Established in 1982, the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed
"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of
pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government, the Company renamed
to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD, A/B;
stock code: 000011, 200011) was officially listed in Shenzhen Stock Exchange in March 1992.
The Company contracted and built Shenzhen International Trade Center Building as Party A and created, planned, and organized the
world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the
south. SZPRD came into being because of the building and has risen amid the Reform and Opening up campaign. Emerging and
growing together with Shenzhen, a city of miracles, the Company has been “a loyal practitioner of the spirit of the ox” and overcome
difficulties in proposing new services in the new era. In the past four decades of trials and hardships, generations of SZPRD
employees have manifested the enterprise spirit of "going ahead and reforming" and centered on the functional positioning as state
assets of "serving national economic and social development, the city, the industry, and the people". The Company has adhered to the
original aspiration and striven ahead to be a pioneer. Therefore, it has made remarkable achievements in development speed and
quality. So far, the Company has grown into a large comprehensive industrial group from the project company that built Shenzhen
International Trade Center Building. Looking ahead, it will size up the situation and seize the momentum in the new era and phase
and forge ahead toward the goal and vision of becoming a "leading smart operator of industry-city space in China".
The year 2020 marks the end of the "13th Five-Year" plan and is a key year for the Company to make major adjustments to win
critical battles in implementing its reforms on all fronts. In the Reporting Period, facing the abrupt COVID-19 and deep regulation
and control in real estate, the Company vigorously explored ways to make breakthroughs in transformation and integrated and
renovated traditional businesses, such as real estate, property management, and house asset operations. Besides, it optimized and
reshaped its business segments so as to form four major business segments, that is, industry-city space development, property
management services, industrial ecosystem operation, and main business ecosystem investment. SZPRD endeavored to further
consolidate and highlight its advantages of industry-city integration and the whole industry chain through expanding the main
business and making breakthroughs.
1. Industrial & urban space development
In terms of the space development segment, the Company is specialized in developing the residence, the hi-end apartment, the office
building, and the industrial park and has developed a batch of brand projects, including Shenzhen International Trade Center Building,
Huanggang Port, Tian'an International Building, Qianhai Gangwan Garden, and Golden Collar Holiday Apartment. Based on its
present real estate development business, the Company will improve its existing portfolio and plan for new businesses. It will engage
a number of subsidiaries in property development and urban renewals, including Huangcheng Real Estate, Rongyao Real Estate, the
Urban Renewal Company, Dongguan Company, Xuzhou Company, and Yangzhou Company, strengthen capital operation via the
listing platform, and make a reasonable layout of the city space development segment. In the Reporting Period, SZPRD made
multiple efforts for this segment. For instance, it steadily advanced the existing project development inside and outside Shenzhen,
accelerated the sales of projects in Xuzhou, Yangzhou, and Dongguan, and sped up the recovery of investment. Moreover, it focused
on the development and construction of industry-city complexes and accelerated to create an integrated and co-existing model for the
development of boutique urban residences and high-end industry space.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
2. Property management services
In the Reporting Period, SZPRD deeply integrated its property management segment to establish a business layout featuring the
platform of ITC Property Management and "1+1>2" coordinated development. The total area of property management exceeded 24
million square meters. Over more than 30 years of development, ITC Property Management has developed into a domestic top
branded property service provider of industrial parks. It has won the titles of "Top 100 National Property Management Enterprises"
and "Excellent Enterprise of Property Management of Industrial Park in China" for several years successively, and has subsidiaries,
including Shenzhen Guomaomei Life Service Co., Ltd., Shandong Shenguomao Real Estate Management, and Chongqing
Shenguomao Real Estate Management, and three joint ventures, namely, Shenshan Guomao Property Management, Guomao Tongle
Property Management, and Shouxihu Jingyue. It has built striking brand advantages and established property service projects all over
the country. Next, the Company will take advantage of the brand, ITC Property Management, strive to integrate property
management resources inside and outside the system, quickly expand channel space, upgrade property management, and significantly
enhance channel service quality. In addition, it will combine industry chain and new requirements of community development and
earnestly utilize new technologies, such as the Internet of Things (IoT), big data, and artificial intelligence (AI) to develop a smart
service platform where production and life services can be scheduled in a unified manner.
3. Industrial ecosystem operation
With respect to the industrial ecosystem operation segment, the Company gave full play to its foundation in the three basic industries,
namely, real estate development, property management, and leasing and the advantage of the whole industry chain and deepened
internal and external strategic cooperation. It is committed to creating a closed loop of the whole industrial ecosystem, covering
project development services, park operation services, and supporting rental operations, and keeping improving the space service and
rental ecosystem in the industrial park. The Company is expediting the stock taking and assessment of its properties in stock and
strengthening the management over them. In the future, it will gradually expand the scope of leasing and raise the development
capability of property rental. Moreover, the Company will gradually shift the focus of industrial ecosystem operation to sci-tech
parks, provide supporting services covering the whole value chain, such as the import of industrial ecosystem, project development
services, and park operation services, and serve the role of "space service provider" centering on sci-tech parks.
4. Other business
In the Reporting Period, the Company's businesses also included catering service and project supervision service. The catering
service is operated by Shenzhen Guomao Catering Co., Ltd. Guomao Catering Co., Ltd., established in 1986, became famous at
home and abroad, as it was the place where President Deng Xiaoping gave talks during his inspection to the south in 1992. Since its
establishment, it has received more than 600 domestic and overseas state heads, famous people, and numerous domestic and overseas
guests, with its reputation spreading all over the world. The revolving restaurant had its integrated renovation completed and was
reopened in 2020. The project supervision service is handled by the subordinated supervision company of the Group. The company
has the Grade A supervision qualification of building works of the Ministry of Housing and Urban-Rural Development (MOHURD).
It was originally known as Shenzhen Property Engineering Management Department, and takes part in the construction and
management work of Shenzhen International Trade Center Building. It is a witness of the whole process of "Shenzhen speed", and
mainly serves for the development project of the Group.
(II) Industry development stage and cyclic characteristics of the Company, and industry position of the Company during the
Reporting Period
1. Real estate industry
During the Reporting Period, China maintained the basic tone of real estate policy regulation and control unchanged, including
"Houses are for living in, not for speculating on." and "three stabilities" and further reinforced its financial regulation. In order to
fight against the COVID-19 pandemic, the primary objectives for the first half of the year were "six stabilities" and "six guarantees".
Local governments adopted more flexible policies commensurate with their local situations. Multiple regions released an
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
underpinning policy for the real estate market. Thus, real estate sales remained high in the country. In the second half of the year,
China constantly tightened its real estate financing policies, issued new regulations for the investment of insurance funds and trusts in
real estate, and strictly investigated the rule-violating transfer of funds from the bank to the real estate industry. Under such a policy
background, China's real estate industry mainly presents the following characters:
(1) Real estate market remains resilient and has broad prospects
According to the National Bureau of Statistics, in 2020, the sales area of national commercial housing was 1,761 million square
meters, with an increase of 2.6% year-on-year (YoY), while the sales amount was RMB17.36 trillion, up by 8.7% YoY and higher
than the growth rate of 6.5% in 2019. The sales amount of residential housing reached RMB15.46 trillion, rising by 10.8% YoY,
representing nearly 90% of the total sales amount of commercial housing. However, the sales amount of office buildings and houses
for business use dropped by 5.3% and 11.2%, respectively, from the same period last year. Prices of commercial housing generally
climbed and demonstrated apparent differences by region. The dramatic increase in the prices in core cities, such as those in the
Yangtze River Delta and the Pearl River Delta, drove the growth in surrounding areas. The real estate industry remained resilient
amid the pandemic.
(2) Financing regulation turned stricter than expectations. The capital chain of real estate enterprises became tight
The central monetary policies were loose so as to effectively promote the resumption of work and production at the beginning of the
year. Governments in multiple regions loosened the regulation and credit policies for real estate enterprises. Monetary policies have
resume tight since May, as the adverse impact of the pandemic turned weaker and weaker and the sales of commercial housing and
land remained hot. The principle that "Houses are for living in, not for speculating on." has been stressed again. The monitoring of
the flow of funds from the bank to real estate enterprises has been intensified. The "Three Red Lines" policy was introduced and
piloted in August to further regulate the financing of real estate enterprises. Financing in the real estate industry slowed down in 2020
amid stricter regulation over financing and growth in the scale of debts due. The financing scale fell. The overall financing cost
dropped slightly. In terms of structure, self-raised funds and mortgage loans accounted for a higher proportion. Bond issuance
continued to grow in China, while the scale of bonds overseas plunged drastically. Innovative products like ABS became increasingly
important. The peak of the repayment of overseas bonds brought some cash flow risks to real estate enterprises. The industry might
usher in a new cycle of supply-side reform.
(3) Land sales remained hot. Both sales volumes and prices increased
Real estate enterprises showed an increasing willingness to purchase land, attributable to the loose monetary policies and
performance of the commercial housing market better than expectations. Besides, local governments accelerated to promote land
sales. Both the supply and demand sides jointly pushed forward the increase in sales volumes and prices. In 2020, turnover of land
sales through tendering, auctioning and listing was approximately RMB8.05 trillion, rising by 18.8% YoY. 4,925 million square
meters of planned building area were transferred with a YoY increase of 14.9%. The average sales price of land was
RMB1,635/square meter throughout the year, which climbed by 3.5% YoY. By regions, tier-1 cities represented by those in the
Yangtze River Delta, the Pearl River Delta, and the Beijing-Tianjin-Hebei Region maintained high increases in both the sales area
and amount of land, followed by tier-3 cities. Because of a high inventory, the growth rates in tier-2 cities were weak and at the
downside of the cycle.
2. Industry of property management
With the acceleration of urbanization, the upgrading of citizen's consumption level, and the constant increase of stock property area,
the Chinese property management industry enters a cycle of rapid progress, as driven by favorable policies. At present, the property
management industry is scattered in China. In other words, its market concentration is not high. Large property management
enterprises will occupy a higher market share, along with the progress of M&As of such enterprises. China's property management
industry mainly presents the following characteristics:
(1) Market prospects are broad. Revenue grows rapidly
According to the Evaluation Report of Comprehensive Strengths of Property Service Enterprises for 2020, in 2019, the total national
management area of the property management industry was 31 billion square meters with a YoY increase of 11%. The top 100
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
property management enterprises actively implemented diversified expansion strategies. Their number of projects under management
in 2019 averaged 212, up by 10.42% YoY, while the area under management, 42,788,300 square meters with a YoY increase of
15.08%. The market share of the top 100 property management enterprises was approximately 43.6%. The industry concentration
further increased. The gap among enterprises at different levels turned wider. In general, the property service fee grew. In December
2020, the composite index of property service prices in 20 major cities reached 1070.32, up by 0.6% YoY. The property service
industry in China will enter a golden period of rapid development, along with the increase in the existing and new properties and the
progress of new types of communities. The industry scale will hopefully surpass RMB2 trillion.
(2) The craze of listing among property management enterprises continues. Industry competition is becoming stronger
Property management enterprises have endeavored to get listed since 2018, thanks to the high valuation in the market. The year 2020
witnessed the listing of 17 such enterprises, most of which were H-share-listed, indicating an apparent Matthew Effect. Nevertheless,
the stock prices on the first day of over half of the property management enterprises listed in 2020 were lower than their issue prices,
which implied that the valuation of property management enterprises diverged from reality. Property management enterprises
accelerate to perform M&As and integration in order to cope with the increasingly fierce industry competition and expand scale and
business. Quality underlying assets are like "sweet pastries". Leading enterprises have raised the area under management to a new
level of 500 million square meters through M&As.
(3) The industry speeds up to transform and vigorously expand the Blue Ocean Market
The ten ministries and departments of China published the Notice on Strengthening and Improving Residential Property Management
in January 2021. The document encourages property service enterprises to proactively employ technologies, such as the IoT, cloud
computing, big data, blockchain, and AI, to build a smart property management service platform and explore the "property service +
life service" model. As property services are expanding to cover elderly and child care, housekeeping, culture, health, house agency,
and express delivery and receipt, multi-level and diversified residential and life demands of owners will be better satisfied.
Furthermore, property management enterprises will hopefully expand the Blue Ocean Market and improve the profitability per unit
area. The legal status of the owners' committee of the community is specified upon the implementation of the Civil Code. The
committee is becoming stronger. Disputes over the rights to operations and earnings of public space are surging, leading to pressure
on the sustainable development of the property management industry.
3. Industry position of the Company
SZPRD arises together with Shenzhen opening up and devotes to Shenzhen real estate and property management and other fields for
more than 30 years. Its comprehensive capacity and brand influence is getting stronger. Its industry position improves gradually. It
has won many honors and awards in the past years. During the Reporting Period, at the 10th Grand Ceremony of Shenzhen Real
Estate held by the Shenzhen Real Estate Association, the Group won the honor of "Brand Value Enterprise of Shenzhen Real Estate
Development Industry".
ITC Property Management was among the first batch of national qualified Level I enterprises of property management. During the
Reporting Period, thanks to its continuous improvement in internal control, steady progress in property management quality, and
constant R&D of services and products matching customer requirements, ITC Property Management was granted the titles of "Top
100 Enterprises of China's Property Management in 2020" and "Property Management Enterprises of China's Industrial Park in
2020". Additionally, it was ranked 27th among China's top 100 property services for comprehensive competency, up by six places
over 2019. It has been included in the Top 100 Enterprises of China's Property Service for five consecutive years since 2016. Besides,
it was ranked 11th of the "Top 100 of Comprehensive Capacity of Shenzhen Property Service Enterprises in 2019".
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Main reason for significant changes
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Up 1.41% from the beginning amount, primarily driven by return on investment in
Equity assets
joint ventures recognized at the equity method
Up 24.24% from the beginning amount, primarily driven by decoration spending for
Fixed assets
the Company’s own housing properties
Intangible assets Down 31.17% from the beginning amount, primarily driven by amortization
Construction in progress No such assets
Up 27.54% from the beginning amount, primarily driven by settlement of sales and an
Monetary assets
increase in bank borrowings
Up 68.64% from the beginning amount, primarily driven by additional decoration
Long-term prepaid expenses
spending for housing properties in the lease business
Up 44.45% from the beginning amount, primarily driven by an increase in tax-related
Deferred income tax assets
deductible loss
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Long-lasting enterprise spirit The enterprise spirit of "going ahead and reforming" has run through the development of the
Company, from the pioneering implementation of the joint-stock system reform at the end of the 1980s to the acquisition of the ITC
Sci-tech Park, epitomizing the "Shenzhen Speed" of marketized incorporation of state-owned enterprises in Shenzhen and the first
adoption of the following investment system of urban renewal projects in municipal state-owned asset system. The key of the
Company to maintain its vitality over the past three decades lies in being brave and courageous to reform and good at reform. The
Company will fully study and judge the macro-economic environment and the industry development progress and deeply analyze its
advantages and disadvantages, while stepping on the new journey of the "14th Five-year Plan". It will make a forward-looking layout,
transform in an appropriate time, and seek progress based on reform.
Rise of all major businesses based on accumulated strength The Company has devoted enormous resources in real estate and
property management industries. It has kept a foothold in Shenzhen and earnestly expanded the external market. Up to now, it has
created a market layout where key businesses are highlighted and promoted hierarchically. In regard to the real estate business, the
Company regards Huangcheng Real Estate as its primary platform and Rongyao Real Estate, Xuzhou Company, Yangzhou Company,
and Dongguan Company as property development entities. At present, its main projects are distributed in Shenzhen, Xuzhou,
Yangzhou, and Dongguan. In terms of the property management business, ITC Property Management embraces subsidiaries, such as
Shenzhen Guomaomei Life Service Co., Ltd., Chongqing Shenguomao Real Estate Management, and Yangzhou Jingyue Property
Management Co., Ltd., and has grown into a first-class property service provider for industrial parks in China. Currently, its area
under management exceeds 24 million square meters, including nearly 8 million square meters in high-end industrial parks,
demonstrating its ever-growing business expansion capabilities.
Standardized and effective corporate governance Guided by the philosophy of running by law, the Company constantly
deepened system construction and improved its governance structure. It revised nearly 30 regulations and rules in the year, including
the Articles of Association, the Rules of Procedure of Shareholders' Meeting, the Rules of Procedure of the Board of Directors, the
Rules of Procedure of Board of Supervisors, implementation rules of special committees under the Board of Directors, as well as
14
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
documents on bidding and tendering, investment and merger, internal control, and authorities. The internal governance structure is
clear and sound. In the meantime, the Group deeply implemented the remuneration reform, established market-oriented and
multi-level incentive and performance assessment mechanisms, and stimulated the enthusiasm of all employees for work and
entrepreneurship.
Widely recognized brand value SZPRD arises together with Shenzhen opening up and has been highly recognized in the market
by virtue of its "ITC" brand that carries the spirit of opening up. At the 10th Grand Ceremony of Shenzhen Real Estate held by the
Shenzhen Real Estate Association, the Group won the honor of "Brand Value Enterprise of Shenzhen Real Estate Development
Industry". Moreover, it has won multiple honors for years consecutively, such as the "Best 500 of China Real Estate Developers" and
the "Guangdong Top 500 Enterprises", with its social influence and brand reputation improved constantly.
15
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part IV Operating Performance Discussion and Analysis
I Overview
The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
Companies Engaging in Real Estate.
(I) Industry review for the Reporting Period
1. Macro economic situation
The COVID-19 pandemic exerted a severe impact across the world in 2020 and became a systematic system with extremely great
uncertainties co-existing with trade frictions and geopolitics. It constituted a tremendous shock to the world economy. Currently,
COVID-19 has been effectively controlled in China, while the situation overseas is still not optimistic. In the financial field, the
economic downturn has resulted in soaring risk aversion and frequent fluctuations in the global stock market. Rising unemployment
rates and decreasing income are inhibiting consumption. Central banks in all countries have taken loose monetary policies to promote
economic recovery. Global debts have hit a new high. Generally, pandemic rebound hinders economic recovery in the United States
and Europe. Global inflation remains sluggish. It is predicted that the economy in 2020 would shrink by 3.5%. That said, the severest
moment has passed. The world economy will hopefully enter a recovery cycle, as the pandemic across the world becomes a new
normal, the world political situation turns stable, and trade protection measures are expected to decrease. The recovery progress is
mainly determined by the pandemic trend all over the world.
In the context of the global economic depression, China recorded a GDP of RMB101.6 trillion in 2020 with a YoY increase of 2.3%.
It was the first time for China to surpassed RMB10 billion. Besides, China was the only major economy in the world that achieved
positive growth in the year. Most regions across the country stopped work and production, as influenced by the sudden outbreak of
COVID-19 at the beginning of the year. Consequently, the first quarter (Q1) witnessed a YoY decrease of 6.8% in GDP. However, as
the pandemic was gradually controlled and the resumption of work and production was orderly promoted, China's economy steadily
recovered. The YoY growth rates of GDP in Q2, Q3, and Q4 were 3.2%, 4.9%, and 6.5%, respectively. China took the lead in
controlling the pandemic, while repeated outbreaks occurred overseas. Hence, China had an outstanding performance in exports. The
export trade totaled RMB32.16 trillion in the year, growing by 1.9% YoY. Specifically, exports rose by 4%, while imports declined
by 0.7%. Total retail sales of consumer goods amounted to RMB3.92 billion, down by 3.9% YoY. Prices slowly recovered after a
slight decrease at the beginning of the year. The annual CPI climbed by 2.5%. Generally, investment in fixed assets first declined and
then rose. The growth rates of investment in manufacturing and infrastructure construction gradually picked up. Investment in the
real estate industry continued to be resilient. From January to November, investment in real estate development amounted to
RMB12,949.2 billion with a YoY increase of 6.8%. The industry prospects kept recovering.
The year 2021 marks the start of the "14th Five-year Plan". The pandemic still exists. China is recovering its economy. Its fiscal and
monetary policies will resume neutral. Endogenous consumption and manufacturing investment will become the main engine of
economic growth. It is expected that China's economy will gradually return to normal in 2021 and make significant contributions to
the global economic recovery. In general, the momentum of the steady economic progress in China will remain unchanged.
2. Policy environment of the industry
In 2020, the central government of China observed the basic tone that "Houses are for living in, not for speculating on." in terms of
real estate regulation and control. It adopted loose monetary policies, when the pandemic was the most severe in the first half of the
year. As a result, the fund environment of the real estate industry was improved. Local governments implemented more flexible
policies in line with their actual situations. For the demand side, priority was given to the talent attraction policy and loosened
requirements for household registration. For the supply side, relevant market support policies were released. For instance, Shanghai,
16
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Hangzhou, and Nanjing relaxed the time limit for real estate enterprises to pay the land transfer fee. Fuzhou, Huzhou, and Tianjin
allowed the delay of the start and completion of projects. Xuzhou and Dongguan adjusted the pre-sale conditions for commercial
housing. Nanchang, Jinan, Wuxi, and Xi'an reduced the regulatory requirements for funds. Xiamen, Shenzhen, and Guangzhou raised
credit lines.
In the second half of the year, as the pandemic turned weaker and the real estate market enjoyed high popularity against the trend,
regulation and control policies turned tighter. Financial regulation was constantly reinforced. In August, the MOHURD and the
People's Bank of China (PBoC) held a symposium attended by key real estate enterprises in order to stress again that "Houses are for
living in, not for speculating on.", stabilize land prices, house prices, and expectations, and maintain the continuity and stability of
regulation and control policies for the real estate industry. Fund monitoring and financing management rules were formulated for key
real estate enterprises at the symposium. Through the "Three Red Lines", new requirements were raised to change the traditional
financing model of real estate enterprises, which would be beneficial to guide the benign development of the real estate industry.
Eight key tasks of the central government of China were proposed for 2021 at the Central Economic Work Conference held in
December 2020. Prominent problems about housing in major cities should be properly addressed. Housing problems are related to
the well-being of the people. Multiple policies should be adopted in line with the actual situation to push forward the steady and
wholesome progress of the real estate market. Great importance should be attached to the construction of security rental houses. The
long-term rental market should be strictly standardized. Moreover, more land should be provided for the construction of rental houses.
Real estate enterprises should be encouraged to utilize collective land for construction and self-owned idle land to construct rental
houses. Meanwhile, the tax burden of rental houses should be reduced. The rental market should be remedied. The rent level should
be reasonably regulated and controlled.
The PBoC and the China Banking and Insurance Regulatory Commission (CBIRC) jointly published a notice on December 31, 2020,
to decide to formulate a policy for managing the concentration of real estate loans provided by financial institutions in the banking
industry. The policy is designated to facilitate market entities to form stable policy expectations and promote the sustainable
development of the real estate market.
3. Regional market layout
In 2020, the real estate market in Shenzhen led the national market in both supply and demand despite the pandemic and policy
regulation and control. In Q1, due to the impact of the pandemic, the real estate market was basically stagnant. In Q2, as the
pandemic was gradually controlled and policies were relaxed, a large amount of capital flew in to boost the real estate market. House
prices surged dramatically, resulting in pain points, such as hot housing speculation, the rule-violating flow of funds, and
supply-demand imbalance. In view of this, the Shenzhen Municipal Bureau of Housing and Urban-Rural Development issued eight
measures on July 15 to regulate and control the real estate market from eight aspects, including identification of the house purchase
qualification and time of household registration, adjustment of the policy for the restricted purchase of commercial houses, and
promotion of signing of the mortgage loan contract online. The market quickly recovered upon the implementation of new policies.
Second-hand houses were sold at a low price. The government relaxed the pre-sales policy, followed by an increase in the supply of
houses. Q4 marked the 40th anniversary of the establishment of the Shenzhen Special Economic Zone. The construction of the
Guangdong-Hong Kong-Macao Greater Bay Area and the Demonstration Area of Socialism with Chinese Characteristics was
promoted constantly. There were high expectations for the long-term prospects of the real estate market. The enthusiasm of buyers
ran high again.
Generally, in 2020, Shenzhen supplied 54,000 sets of new houses. 4,489,000 square meters/45,384 sets of new residential houses
were sold, up by 20.5% and 19.8% YoY, respectively. The transaction scale had reached a record high since 2016. Throughout the
year, the sales rate on the opening day was higher than 60%, setting a new record in the past three years. The average annual
transaction price of new houses was RMB53,000/square meter, which was stable with a slight decline. 95,273 sets of second-hand
houses were sold in the year, rising by 23.5% YoY. The Longgang Center, Buji, and Xixiang took the first three places in transaction
volumes. The average transaction price in the city was RMB66,000/square meter, higher than that in the same period last year.
Throughout the year, 24,910 sets of commercial apartments were approved and sold with a total area of 1.47 million square meters.
17
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
The two figures increased by 23.6% and 23.7% over the same period last year. Apartments demonstrated a stronger quasi-residential
property. In 2020, Shenzhen listed and transferred 96 plots of land, including 34 plots of residential land with an accumulative land
transfer fee of RMB80 billion. Looking into 2021, the real estate market in Shenzhen will continue the basic tone that "Houses are
for living in, not for speculating on." and raise house supply. Shenzhen will stabilize land prices, house prices, and expectations,
drive the steady and wholesome progress of the real estate market, and effectively prevent and mitigate risks in the market.
(II) Business Review for the Company in 2020
In 2020, the Company successfully accomplished various objectives. For the year, it recorded operating revenue of approximately
RMB4.1 billion and a gross profit of around RMB1.03 billion. In addition, its total assets reached RMB12.2 billion, hitting a record
high. All these remarkable results represented a perfect ending for the “13th Five-Year Plan” of the Company.
For the 13th Five Year, the Company cumulatively recorded operating revenue, a gross profit and a net profit of RMB16.82 billion,
RMB4.33 billion and RMB3.19 billion respectively, up 132%, 114% and 112% compared to the 12th Five Year; and its total assets
and net assets as at the end of the period went up 179% and 80% respectively from five years ago. These data represented
considerable over-fulfillment of the goals set. During the 13th Five Year, the Company adopted a sustained, consistent and active
dividend policy, taking into account both reasonable return to investors and the sustainability of the Company. The five-year period
saw a total dividend payout amount of RMB924 million (including the 2020 dividend payout plan).
1. A phased victory was achieved in fighting against the pandemic through unity of efforts
In the face of the sudden outbreak of the COVID-19 pandemic, the Group immediately established an anti-pandemic leading group,
accurately implemented all anti-pandemic tasks, and spared no pains to arrange the resumption of work and production. No
suspicious or confirmed cases were identified among over 8,000 employees of the Group. In addition, the Group actively adopted the
policy requirement for rent reduction and exemption and joined hands with small- and medium-sized private enterprises to respond to
challenges. Approximately RMB38 million of rents were reduced and exempted, benefiting nearly 700 tenants. The Group and
individuals donated over RMB2 million, which fully reflected the mission and responsibility as a state-owned enterprise.
2. The Company stuck to the business philosophy of market orientation and achieved remarkable performances in the two
major segments
In the Reporting Period, the Company hosted a real estate work meeting and introduced a whole-cycle development management
system. It specified the goal of "efficiency, benefits and effects" of operations and management of real estate projects and strove to
manage the process in a planned, coordinated, and cooperative manner. Furthermore, it followed the "117" specific implementation
path to holistically and constantly improve the operations and management of real estate projects. The Company planned and
precisely implemented strategies amid the pandemic. It delivered 100% of finely decorated Tower C of Golden Collar Holiday
Apartment in advance and successfully sold Phase II of Xuzhou out. Throughout the year, the Company recorded revenue of
approximately RMB2.9 billion in real estate and a net profit of around RMB661 million. Project resources were expanded through
multiple channels, such as tendering, auctioning, listing, and cooperative development. Substantial progress was made in the
Integrated Industry-city Project of the Ecological Health Valley of Yangzhou Shouxihu, the urban renewal project in the Fuyuan
Industry Park, the Guangming Tangjia Project, and the Baolu Project in the year.
With respect to the property management segment, the Company vigorously blazed a trail based on endogenous expansion and
M&As. In 2020, it accumulatively had 27 new projects with a total area of over 3 million square meters, better than the annual
objective for endogenous growth. Moreover, the Company explored non-conventional investment methods for the first time, such as
overseas investment and private non-controlling investment so as to open a new path to cope with the fierce competition. First, it
successfully expanded the overseas market by establishing a subsidiary in Vietnam. Besides, it entered into an agreement with VCEP
to jointly create a national demonstration zone of the "the Belt and Road" initiative. The new area under property management in the
park was approximately 1.96 million square meters. Second, new investment cooperation models were proposed. The three joint
ventures, namely, Shenzhen Guomao Tongle Property Management Co., Ltd., Shenshan Guomao Property Development, and
Shouxihu Jingyue, have grown gradually by taking advantage of the resources of their partners. Especially, Shouxihu Jingyue won
18
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
key projects like Sanwan Scenic Spot of Yangzhou Canal, Songjia City, and Hua Du Hui. Its area under management was up to
around 3.7 million square meters. It is an effective example of the market-oriented expansion of the property management business.
3. The Company adhered to the idea that development is the top priority and addressed many prominent problems
concerning overall operations and development.
First, it actively promoted the demolition of the Bangling Project, held the opening ceremony in October, and started the substantial
construction of Phase II. Second, it assisted foreign trade groups in activating assets. The first batch of assets have been disposed of.
Over RMB1.5 billion was realized. Third, it actively supported the tax examination over the key and large enterprises specified by
the State Taxation Administration, spared no effort to solve the historical problem of land costs in the Huangyuyuan Area, and
basically eliminated the risk of a supplementary payment of increment tax on land value. Fourth, it strongly supported shanty house
renovation projects of the government and completed the signing for the removal of tenants and house delivery of tenants on
Chuanbu Street. It is estimated that the Group will obtain an area of relocated property of approximately 14,000 square meters by
2025. For other aspects, a comprehensive agreement was signed for Yupinluanshan Garden project after nearly one decade. The
Fumin Complex was renovated and put into operation, becoming the first rental house project for special talent of professional
lawyers. Effective measures have been adopted to promote Phase II of Fuchang, upon negotiation with several parties. Basements
were constructed in the Reporting Period.
4. Internal reform was deepened. Vitality and power of quality development of the Group were significantly stimulated
The remuneration reform was earnestly promoted. The long-acting incentive and restraint plan for the first phase has been
implemented. The integration of business segments was coordinated. Incentive and performance assessment mechanisms, such as the
remuneration reform and incremental sharing, were comprehensively conducted in all subordinated companies from top to bottom. In
addition, the Company orderly promoted the optimization of the organizational structure after the acquisition of TK Property and the
integration of property management and rental segments. The Project Management Department and the Industry Operation Office
were newly set up in the Headquarters. Shortcomings in operations were improved. A development platform was created for the four
major businesses. A platform business system with a reasonable structure and independent operations was developed. Furthermore,
policies were revised as appropriate. Over 30 regulations and rules were revised, including the Articles of Association, to practically
improve corporate governance. In terms of other aspects, a new stride was made in integrated financial management. Approximately
RMB1.6 billion new financing was added. Tendering and the determination of bid winners were strengthened. Cost control was
reinforced. Additionally, the Company firmly upheld the concept of safe development and took multiple measures to ensure
production safety.
(III) Land Bank
1. New additions to the land bank
There were no new additions to the land bank in the current period.
2. Cumulative land bank
Floor area available for
Name of project/area Site area（0,000 ㎡） Floor area（0,000 ㎡）
development（0,000 ㎡）
Yupinluanshan Garden
2.19 7.89 7.89
project
Baolu project 3.24 8.16 8.16
Land in Danshui, Huiyang
1.77 6.20 6.20
District, Huizhou City
Land in Hongqi Town,
15.8 - -
Haikou City
19
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Total 23 22.25 22.25
Note: The floor areas of the Yupinluanshan Garden project, the Baolu project and the land in Danshui, Huiyang District, Huizhou
City are floor areas with plot ratio.
(IV) Development status of major projects
Floor
area
Cumulat
that
ive floor
Time for comple Estimate Cumulat
Planned area that
The commen ted d total ive
% % that has floor has
City/regi Name of Locatio Compa cement Site area constru investme investme
Usage develo completed area with complete
on project n ny’s of （㎡） ction in nt nt
ped construction plot ratio d
interest construct the (RMB’0, (RMB’0,
（㎡） construct
ion Curren 000) 000)
ion
t
（㎡）
Period
（㎡）
Golden
Collar’s
Shenzhe Futian Resid
Resort 100% 2014.03 100% 100% 12,598 133,800 0 183,295 138,311 108,406
n District ential
apartmen
ts
Concrete roof
completed for
the basements
Affor
Under in Section 1
Shenzhe Fuhui Futian dable
100% 2018.12 constru and 2; 4,274 33,430 0 0 90,439 60,072
n Huayuan District housin
ction structure
g
completed for
-2/F of Section
3
Banshan Tongsha Under Pre-acceptance
Xuzhou Resid
Yujing n 100% 2019.03 constru completed for 31,537 22,795 0 0 23,581 15,997
City ential
(Phase II) District ction the main frame
Shenzhe Guanlan Longhu Resid Under 75.88%
n Bangling a ential, constru completed for
District comm ction demolition
ercial
69% 2020.10 68,300 433,640 0 0 694,150 330,262
apart
ments
and
indust
20
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
rial
(V) Sales status of major projects
Pre-sale/
Floor Pre-sale/sal sales
Floor area
The Cumulativ area es revenue revenue
Floor area Cumulativ settled in
Name Comp Floor area e pre-sold/s generate in settled
City/re available e settled the
of Location Usage any’s with plot pre-sold/s old in the the Current in the
gion for sale floor area Current
project interes ratio （㎡） old floor Current Period Current
（㎡） (㎡) Period
t area （㎡） Period (RMB’0,00 Period
（㎡）
（㎡） 0) (RMB’0
,000)
Intersecti
Golde on of
Residenti
n Futian
al, studio
Collar’ South
Shenz apartmen
s Road and 100% 133,800.6 125,231.07 68,323.44 33,414.96 262,382 64,287.07 37,184.94 274,075
hen ts and
Resort Binhe
commerc
apartm Road in
ial
ents Futian
District
Songh Residenti
Dongg
u Dalang al,
uan 100% 147,139.96 140,911 140,911 0 0 145,443 0 0
Langy Town commerc
City
uan ial
Intersecti
on of
SZPR Yueliang
D-Qia wan
nhai Boulevar
Shenz Residenti
Gang d and 100% 64,625.13 63,448.26 63,448.26 0 0 63,336.29 0 0
hen al
wan Xinghai
Garde Boulevar
n d in
Nanshan
District
6
Bansh Huashan
an Road,
Xuzho
Yujing Tongshan Villa 100% 54,589.12 85,652.81 85,652.81 0 0 85,652.81 2,331.54 1,802.17
u City
(Phase District,
I) Xuzhou
City,
21
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Jiangsu
Province
6
Huashan
Residenti
Bansh Road,
al
an Tongshan
Xuzho (elevator
Yujing District, 100% 22,794.76 21,720.72 21,720.72 9992.97 12,256.85 0 0 0
u City houses of
(Phase Xuzhou
4-7
II) City,
floors)
Jiangsu
Province
Residenti
Intersecti al units,
Hupan on of shops,
Yangz
Yujing Shouxihu apartmen
hou 100% 36,141.28 48,870.98 42,349.26 870.59 332.2 42,215.85 944.67 575.03
Phase Road and ts,
City
I Hangou parking
Road garages
and lots
Residenti
Intersecti al units,
Hupan on of shops,
Yangz
Yujing Shouxihu apartmen
hou 100% 56,935.75 73,121.96 67,523.37 1,317.54 1,678.47 64,177.89 1,060.9 1,042.74
Phase Road and ts,
City
II Hangou parking
Road garages
and lots
(VI) Rental status of major projects
The Company’s Cumulative
Locatio Rentable area Average
Name of project Usage working rented area
n （㎡） occupancy rate
interest （㎡）
Apartments
Xi Apartments Shenzhe for
100.00% 3967 3967 100.00%
(Longyuan) n long-term
rental
Apartments
Shenzhe for
Xi Apartments (Longhua) 100.00% 1609 1609 100.00%
n long-term
rental
Shenzhe Apartments
Xi Apartments (Xinhu) 100.00% 1600 1600 100.00%
n for
22
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
long-term
rental
Food Court in the Shenzhe
Commercial 100.00% 4049 2645 65.00%
International Trade Center n
Shenzhe Commercial
Fumin Complex 100.00% 6450 4576 71.00%
n , apartments
Tower A of Wenjindu Port Shenzhe Office
75.00% 5884 5703 97.00%
Building n building
Commercial
Shenzhe
Haiwai Lianyi Building units and 75.00% 9788 9788 100.00%
n
offices
Shenzhe
Anhua Building Offices 75.00% 1414 1414 100.00%
n
Residential
Training Shenzhe units/offices
75.00% 4244 4244 100.00%
Building/Dormitory n /commercial
units
Shenzhe
Pengfu Building Offices 75.00% 6494 6494 100.00%
n
Shenzhe
n
Jinfu Building Commercial 75.00% 1702 1702 100.00%
Shenzhe
n
Shenzhe
n
Jinfu Building Commercial 100.00% 568 568 100.00%
Shenzhe
n
Shenzhe Residential/
Fuxing Garden 75.00% 5877 5877 100.00%
n commercial
Shenzhe
Fuxing Garden Commercial 100.00% 1417 1417 100.00%
n
Plant area in Tangxia Donggu
Plant 75.00% 22034 22034 100.00%
Town, Dongguan City an City
Shenzhe Commercial
Pacific Business Building 75.00% 3199 3199 100.00%
n units/offices
Shenzhe Commercial
Pacific Business Building 15.00% 14889 14718 99.00%
n units/offices
Shenzhe Commercial
Kangti Building 75.00% 2096 2096 100.00%
n units/offices
23
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Shenzhe Commercial
Kangti Building 15.00% 1147 1147 100.00%
n units/offices
Commercial
Shenzhe
Lyuhua Building and 75.00% 6960 6578 94.51%
n
residential
Shops on the ground floor
Shenzhe
of Tower 48 in Lianhua Shops 75.00% 1000 1000 100.00%
n
North Village
Apartments
Shenzhe and
Haonianhua Building 100.00% 1803 1774 98.00%
n commercial
units
Apartments
Shenzhe and
Haonianhua Building 75.00% 2278 2235 98.00%
n commercial
units
Shenzhe
Hostel 2 at Yuxin School Hostel 75.00% 3000 3000 100.00%
n
Kaifeng Garden in Shenzhe
Residential 100.00% 1307 1084 83.00%
Shangmeilin n
Shenzhe
Fuyuan Industrial Zone Plant area 75.00% 47130 47130 100.00%
n
Shenzhe
Tonglu Industrial Zone Plant area 100.00% 76886 73221 95.00%
n
Shenzhe Commercial
Gonglu Building 75.00% 317 317 100.00%
n /offices
Shenzhe
Gonglu Building Offices 100.00% 89 89 100.00%
n
Shenzhe
Jiangling Industrial Zone Plant area 75.00% 10397 10397 100.00%
n
Shenzhe Commercial
Zone 21 75.00% 9514 9514 100.00%
n /offices
Shenzhe
Baoli Community Residential 75.00% 9020 9003 99.81%
n
Shenzhe
Songgang Plant Plant area 75.00% 5700 5700 100.00%
n
Shenzhe
Longbu Plant Plant area 75.00% 7471 7471 100.00%
n
Gonglu Building in Shenzhe Offices 75.00% 4600 4461 96.98%
24
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Huanggang n
Shenzhe
Yuetong Complex Offices 75.00% 3044 3044 100.00%
n
(VII) Primary land development
□ Applicable √ Not applicable
(VIII) Financing channels
Financing cost Maturity structure
Ending balance of
Financing channel range/average Within 1
financings 1-2 years 2-3 years Over 3 years
financing cost year
Bank loans 3,618,800,000.00 4%-6% 3,000,000.00 3,615,800,000.00
Total 3,618,800,000.00 4%-6% 3,000,000.00 3,615,800,000.00
(IX) Development strategy and operating plan for the coming year
In regard to land reserves, the Company will continue to expand its land reserves through market competition and capital operation in
2021. It will exert more efforts in this aspect and push forward the fast launch of projects. By property types, residential projects will
be mainly distributed in the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta Metropolitan Area, and the
areas with existing projects. Besides, the Company will gradually pay attention to and expand its presence in key cities in the central
urban agglomeration centering on Wuhan, the Chengdu-Chongqing Region in western China, and the Beijing-Tianjin-Hebei Region.
Urban renewal projects will primarily be launched in Shenzhen and the areas surrounding Shenzhen like Dongguan and Huizhou.
The Company will gradually track such projects in Guangzhou. Most of the comprehensive industry-city projects will be located in
the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, central China centering on Wuhan, and the
Chengdu-Chongqing Region in western China.
In regard to sales, in 2021, the Company will constantly enhance the overall control over the general goal, phased objectives,
schedule, and investment plan of all projects, pay close attention to the whole sales of Tower A and the remaining houses of Tower C
of Golden Collar Holiday Apartment, and fully promote the construction of Phases I and II of Guanlan Bangling. Furthermore, it will
strive to sell all houses of Hupan Yujing out and complete and deliver Banshan Yujing Phase II in Xuzhou and endeavor to complete
the project setup of the Fuyuan Industry Park, the land replacement of Baolu, the capping of Phase II of Fuchang, and the
construction of Yupin Luanshan.
Please refer to “IX Prospects” in “Part IV Operating Performance Discussion and Analysis”.
(X) Provision of guarantees for homebuyers on bank mortgages
√ Applicable □ Not applicable
As a usual practice for real estate developers, the Company has been providing guarantees and security deposits for its homebuyers
on their bank mortgages. As at 31 December 2020, security deposits for such outstanding guarantees amounted to RMB1,148,647.30,
which will be returned upon the expiry of the guarantees, i.e. when the relevant homebuyers paid off their bank mortgages. On the
ground that there have been no default by the homebuyers so far and that the market prices of the relevant properties are currently
higher than the trading prices, the Company believes the risk associated with such guarantees is low.
(XI) Joint investments by directors, supervisors and senior management and the listed company (applicable for such
investments where the directors, supervisors and senior management are the investment entities)
√ Applicable □ Not applicable
Name of Type of investment Amount of % of As % of the Cumu Disinvest Compatibility
project entity investment investmen peak of the lative ment of actual
25
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(RMB’0,00 t amount project funds inco investment
0) me amount and
distributed
income
Urban Mandatory investment
Renewal of entities (including
2,647.00 66.18% N/A 0 None N/A
Bangling directors and senior
Section at management)
Guanlan Voluntary investment
1,353.00 33.82% N/A 0 None N/A
Street entities
Note: Since this is an ongoing project, the peak of the project funds, cumulative income and disinvestment are unknown. For details,
please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.
II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2020 2019
As % of total As % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 4,104,374,646.02 100% 3,961,669,942.44 100% 3.60%
By operating division
Property
2,895,323,736.80 70.54% 2,665,571,690.51 67.28% 8.62%
development
Property
1,070,094,746.33 26.07% 1,097,767,114.02 27.71% -2.52%
management
Property rental 138,956,162.89 3.39% 198,331,137.91 5.01% -29.94%
By product category
Property
2,895,323,736.80 70.54% 2,665,571,690.51 67.28% 8.62%
development
Property
1,070,094,746.33 26.07% 1,097,767,114.02 27.71% -2.52%
management
26
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Property rental 138,956,162.89 3.39% 198,331,137.91 5.01% -29.94%
By operating segment
Shenzhen 3,718,740,286.40 90.60% 3,712,909,688.00 93.72% 0.16%
Other 385,634,359.62 9.40% 248,760,254.44 6.28% 55.02%
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in YoY change in
Operating revenue Cost of sales profit operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Property
2,895,323,736.80 388,253,086.57 86.59% 8.62% -10.56% 2.88%
development
Property
1,070,094,746.33 912,325,050.31 14.74% -2.52% -0.56% -1.68%
management
By product category
Property
2,895,323,736.80 388,253,086.57 86.59% 8.62% -10.56% 2.88%
development
Property
1,070,094,746.33 912,325,050.31 14.74% -2.52% -0.56% -1.68%
management
By operating segment
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2020 2019 Change (%)
Sales volume m2 47,540.93 69,138.45 -31.23%
Property
Output m2 262,098 262,098 0.00%
development
Inventory m2 76,447.91 114,628 -38.18%
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
Due to cyclical changes in the industry, as well as the development and sales progress of projects, etc., the sales volume and the
27
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
inventory both showed a decrease.
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
2020 2019
Operating As % of total As % of total
Item Change (%)
division Cost of sales cost of sales Cost of sales cost of sales
(%) (%)
Property
388,253,086.57 28.00% 434,102,478.63 30.28% -10.56%
development
Property
912,325,050.31 65.79% 917,506,251.33 64.00% -0.56%
management
Property rental 86,132,102.66 6.21% 82,007,155.47 5.72% 5.03%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
One new entity was added to the consolidated financial statements of the year under review compared to last year. See “VIII Changes
to the Consolidation Scope” in “Part XII Financial Statements” in this Report.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 354,418,642.97
Total sales to top five customers as % of total sales of the
8.64%
Reporting Period (%)
Total sales to related parties among top five customers as % of
1.17%
total sales of the Reporting Period (%)
Information about top five customers:
No. Customer Sales revenue contributed As % of total sales revenue (%)
28
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
for the Reporting Period
(RMB)
Property Management Center of the
1 237,929,904.00 5.80%
Government of Futian District, Shenzhen
Shenzhen Bay Technology Development
2 47,871,320.92 1.17%
Co., Ltd.
3 Tencent Technology (Shenzhen) Co., Ltd. 27,967,605.26 0.68%
4 Tao Bao (China) Co., Ltd. 22,981,728.34 0.60%
5 WeBank Co., Ltd. 17,668,084.45 0.43%
Total -- 354,418,642.97 8.64%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 338,484,600.00
Total purchases from top five suppliers as % of total purchases
50.06%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
The Fifth Construction Co., Ltd of
1 China Construction Fourth Engineering 227,074,600.00 33.59%
Bureau
Shenzhen Futian Security Service Co.,
2 34,299,200.00 5.07%
Ltd.
Shenzhen Ruihe Construction
3 29,126,900.00 4.31%
Decoration Co., Ltd.
Shenzhen Weiye Decoration Group Co.,
4 29,004,600.00 4.29%
Ltd.
Shenzhen Shenxu Air-Conditioning Eng.
5 18,979,300.00 2.81%
Co., Ltd.
Total -- 338,484,600.00 50.06%
Other information about major suppliers:
□ Applicable √ Not applicable
29
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
3. Expense
Unit: RMB
2020 2019 Change (%) Reason for any significant change
Decrease in commissions for sales
Selling expenses 44,753,247.18 111,553,952.50 -59.88%
agents and advertising expenditure
Increase in remunerations,
Administrative
238,625,143.31 204,654,552.64 16.60% intermediary agent expense, and
expenses
depreciation and amortization expense
Decrease in the average interest rate of
Finance costs 111,263,558.80 134,718,833.57 -17.41%
borrowings
4. R&D Investments
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2020 2019 Change (%)
Subtotal of cash generated from
4,809,961,005.82 5,264,435,040.93 -8.63%
operating activities
Subtotal of cash used in operating
4,424,463,223.70 4,324,645,474.97 2.31%
activities
Net cash generated from/used in
385,497,782.12 939,789,565.96 -58.98%
operating activities
Subtotal of cash generated from
136,131.48 357,613.40 -61.93%
investing activities
Subtotal of cash used in investing
48,482,853.70 1,031,698,003.98 -95.30%
activities
Net cash generated from/used in
-48,346,722.22 -1,031,340,390.58 -95.31%
investing activities
Subtotal of cash generated from
2,176,820,000.00 2,236,220,000.00 -2.66%
financing activities
Subtotal of cash used in financing
1,627,885,573.80 2,740,366,078.11 -40.60%
activities
Net cash generated from/used in
548,934,426.20 -504,146,078.11 -208.88%
financing activities
Net increase in cash and cash
882,809,678.36 -595,682,024.42 -248.20%
equivalents
30
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from operating activities decreased year on year, primarily driven by the payment of a large amount of taxes
and levies in the Reporting Period for which provisions were made in the prior period.
② Net cash used in investing activities decreased year on year, primarily driven by a decrease in payments for the acquisition of
equity investments in the Reporting Period.
③ Net cash generated from financing activities increased year on year, primarily driven by new bank borrowings.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
√ Applicable □ Not applicable
For the Reporting Period, net cash generated from operating activities stood at RMB385,497,782.12, representing a big difference
from the net profit of RMB731,337,869.73, primarily driven by the time difference between making tax provisions for real estate
development projects and the actual payments, as well as between the receipt of property sales and the recognition of these sales.
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Source/Reason Recurrent or not
Return on
634,098.07 0.06% Share of profits of joint ventures Yes
investment
Asset
-51,185.46 0.00% Changes in inventory valuation allowances Not
impairments
Non-operati
11,697,661.23 1.13% Compensation for demolition Not
ng income
Non-operati Lawsuit-related compensation and
5,244,329.50 0.51% Not
ng expense compensation for removing tenants
Credit Changes in allowances for doubtful
4,623,356.81 0.45% Not
impairments receivables
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since 2020 and restated the
beginning amounts of relevant financial statement line items in the year.
Applicable.
Unit: RMB
31 December 2020 1 January 2020 Change in
Reason for any
percentage
Amount As % of Amount As % of significant change
(%)
31
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
total total
assets assets
Increase in sales
Monetary assets 4,206,266,629.32 34.46% 3,297,890,935.91 30.61% 3.85% recognized and bank
borrowings
Decrease in arrears
due to greater efforts
Accounts spent by the property
187,697,631.47 1.54% 216,923,663.25 2.01% -0.47%
receivable management
subsidiaries on
payment collection
Recognition of cost
of the Golden Collar
project, and increase
Inventories 5,312,489,258.20 43.52% 4,913,510,876.66 45.61% -2.09% in capitalized
expense of the
Bangling and other
projects
Investment Depreciation
484,738,506.83 3.97% 503,323,428.61 4.67% -0.70%
property allowances
Long-term equity
45,710,220.79 0.37% 45,076,122.72 0.42% -0.05%
investments
Increase in
decoration expense
Fixed assets 116,233,936.04 0.95% 93,557,782.83 0.87% 0.08% on the Company’s
own housing
properties
Long-term New borrowing in
3,587,800,000.00 29.39% 2,193,833,000.00 20.37% 9.02%
borrowings the Reporting Period
Settlement of certain
Other receivables 789,050,350.51 6.46% 917,981,165.74 8.52% -2.06% receivables from
external parties
Increase in
Deferred income
950,681,245.50 7.79% 658,153,122.73 6.11% 1.68% tax-related
tax assets
deductible loss
Decrease in accounts
Accounts payable 468,269,685.65 3.84% 577,689,139.10 5.36% -1.52% payable for
engineering
Recognition of
Contract liabilities 666,893,629.72 5.46% 690,543,580.95 6.41% -0.95%
operating revenue
32
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Other non-current
108,778,327.45 0.89% 108,164,737.46 1.00% -0.11%
liabilities
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss
Impairme
on Cumulative
nt Purchas Sold in
fair-value fair-value
Beginning allowance ed in the the Other Ending
Item changes in changes
amount for the Reportin Reportin changes amount
the charged to
Reporting g Period g Period
Reporting equity
Period
Period
Financial
assets
Investments
in other
1,580,475.86 -494,182.95 -41,387.79 1,044,905.12
equity
instruments
Subtotal of
financial 1,580,475.86 -494,182.95 -41,387.79 1,044,905.12
assets
Total of the
1,580,475.86 -494,182.95 -41,387.79 1,044,905.12
above
Financial
0.00 0.00 0.00 0.00
liabilities
Other changes are impacts of exchange rate fluctuations.
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
(1) In term of monetary assets with restricted right to use at the period-end, there was limited capital of frozen account with
RMB11,031.58 in the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd.
(2) In term of monetary assets with restricted right to use at the period-end, there was custody deposit account with RMB44,554.35 in
the subsidiary company Catering Branch of Shandong Shenguomao Real Estate Management.
(3) In term of monetary assets with restricted right to use at the period-end, there was RMB1,148,647.30, which is the Company as a
real estate developer and historically provided mortgage guarantees and paid loan guarantees for commercial housing purchasers in
accordance with real estate business practices.
(4) In term of monetary assets with restricted right to use at the period-end, there was payment guarantee with RMB11,213,310.06
33
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(principal of RMB11,075,002.60 and interest of RMB138,307.46) in the subsidiary company Xuzhou Company, which signed the No.
Xingyin Xubao (2020) 25 payment guarantee with Jiangsu Hanjian Group on 1 June 2020.
(5) In term of monetary assets with restricted right to use at the period-end, there was RMB25,394,174.20 which is the interest of
fixed deposits accrued at the end of the period.
(6) In term of monetary assets with restricted right to use at the period-end, there was an guarantee letter of RMB300,000.00 issued
by the subsidiary company Supervision Company for the second phase project supervision and service project of Bangling District,
Guanlan Street, Longhua District of Rongyao Real Estate in 2020.
(7) The Company applied for a loan from Shenzhen Branch of Bank of Communication Co., Ltd. with the land use right of Fumin
New Village, Futian District as the pledge due to the needs of its daily business activities. The period of the loan is from 27
November 2020 to 27 November 2023. The interest of the loan is a floating interest rate and the first execution interest rate is
4.655%.
V Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
2. Major Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gai
n/L
oss
on Accum
Accou fair ulated Purc Sourc
Variet Name Initial Sold
nting valu fair hase Gain/lo
Beginni in e of
y of Code of of measu e value d in ss in Ending Account
investm ng Repor
remen cha change Repo Reporti carrying invest
securit security securit carrying ting ing title
t nge s rting ng value
ent cost value Perio ment
y y metho s in charge Perio Period
d
d Rep d to d funds
orti equity
ng
Peri
od
34
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Obtain
Investm
ed in
Dome Gintia Fair ents in
Gintia
stic/Fo 400016、 n A, 3,565,85 value 1,580,47 -494,1 -41,387. 1,044,90 other
0.00 0.00 0.00 n’s
reign 420016 Gintia 6.06 metho 5.86 82.95 79 5.12 equity
debt
stock nB d instrume
restruc
nts
turing
3,565,85 1,580,47 -494,1 -41,387. 1,044,90
Total -- 0.00 0.00 0.00 -- --
6.06 5.86 82.95 79 5.12
Disclosure date of
announcement on Board’s
consent for securities
investment
Disclosure date of
announcement on
shareholders’ meeting’s
consent for securities
investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Major Subsidiaries
√ Applicable □ Not applicable
35
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationsh
Principal Registered Operating Operating
Name ip with the Total assets Net assets Net profit
activity capital revenue profit
Company
Shenzhen Developme
Huangcheng nt and sales 2,842,263, 1,111,460,7
Subsidiary 30000000 4,640,791,319.39 1,592,008,734.84 831,385,847.81
Real Estate of real 700.56 91.87
Co., Ltd. estate
Shenzhen
Developme
Rongyao
nt and sales -289,665,8
Real Estate Subsidiary 10000000 4,379,435,501.61 125,509,116.39 0.00 -217,986,090.23
of real 46.19
Developme
estate
nt Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and
Subsidiary
disposed in the Reporting Period operating performance
Shenzhen SZPRD Fuyuantai Income was of RMB0, and the loss was
Newly established
Development Co., Ltd. of RMB2000
VIII Structured Bodies Controlled by the Company
√ Applicable □ Not applicable
For details, see IX 1. Equity interests in subsidiaries in Part XII Financial Report herein.
IX Prospects
(I) Development Environment Analysis
Refer to "(I) Review of industry development during the reporting period" in "Part IV: Operating Performance Discussion and
Analysis"
(II) The Company’s Future Development Strategy
As the traditional real estate market’s development declines on the whole, various industrial resources have been continuously
occupied by the large-scale brand houses, which has threatened the survival and development of medium and small-sized property
companies. “Large-scale Enterprises Taking All Advantages” has become normal in the industry, and the positioning of “Houses are
for living in, not for speculating on” has already been established. In this case, Shenzhen Properties & Resources Development
(Group)Ltd. specialized in the traditional real estate will be confronted with the extremely severe industrial situation.
In this context, the Company put forward the “12345” overall development idea of “1 Vision + 2 Major Sectors + 3 Driving Factors +
4 Businesses + 5 Value-added Services”. In other words, the Company will take effective measures with the focus on “spatial asset
management” and “data asset management” to develop four major businesses including industrial and urban space development,
36
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
industrial ecological operation, property management services, and main ecological investment through expanding the main business
and making breakthroughs. Meanwhile, the Company will realize rapid deployment and integration of five major value-added
services including high-end consulting services, customized housekeeper services, intelligent operation platform, big data operation
and ecosystem integration. Base on Shenzhen with scientific and technological innovation as the primary driving force, the Company
will include Guangdong, Hong Kong and Macao metropolitan area and surrounding areas to maximize the leverage of capital to build
a door type intelligent management and control service platform with basic functions, aiming to build “the world’s leading intelligent
operator of industrial and urban space”.
In accordance with three-step strategic implementation route of “strengthening bases, brink breakthrough, and focus on leading”, the
Company will seek transformation and upgrading in the development base on the current development conditions, and promote
incremental development in the transformation to build unique development advantages and create a new pattern of innovation and
development of the Company.
(III) Key tasks in 2021
Standing at the new historical starting point, the Company will keep the general principal of steady and progress in 2021 and focus
on promoting high-quality transformation and development based on the guide line of “expansion, acceleration, transformation,
empowerment and effectiveness”.
I. Focusing on project launch. The Company will increase investment in expansion to cover the planned construction of new
integration project of production towns over 600,000 ㎡ in the year, including the promotion of launch of projects of Yangzhou
Slender West Lake Ecological Health Valley and urban renewal of Fuyuan Industrial Zone, the signing of cooperation development
agreement on Tianjun Industrial Park project, and completion of adjustment of the renewal direction of Guangming Tangjia project
and functional substitution of industrial land of Baolu.
II. Overall control and promotion of project construction. The newly started construction area is over 620,000m2, including the
construction of Phase I and II of Bengling project, which shall be fully and legally started, the advance booking of Phase II of
Bengling project; the completion of improvement of Block A of Jinling project to ensure sales and admission; the signing of contract
on the capping and counter-purchase of the main part of Fuchang Phase II project; and the construction of Yupinluanshan Garden to ±
0 level, focusing on the completion of approval procedure of project separation and transfer and listing.
III. Consolidation of the base of four business platforms. The Company will basically form platform operation capability of space
development plate with the ability to independently execute project operation in the whole process; construct investment
management system of industrial ecological operation section to explore operation transformation and upgrading and improve asset
operation ability, aiming to complete the industrial positioning report and investment operation plan of Bengling project, Yangzhou
project and Fuyuan Industrial Zone; complete the construction of professional operation standard model and precise assessment
system, focusing on the completion of repositioning and system process reconstruction of the headquarters of ITC Property
Management Co., Ltd.; achieve new material management area not less than 10 million ㎡ and endogenous growth not less than 1
million ㎡ by means of M&A and joint venture cooperation, and try to complete the establishment and operation mechanism
construction of the industrial investment platform company of the Group, establish and operate industrial funds, and carry out
targeted investment.
IV. Financial management enhancement for business development. The Company will enhance comprehensive budget
management to control and assess budget; improve the integration of industry and finance, financial analysis and tax planning, and
dynamic traction of asset liability ratio, ROE and IRR on business operation; innovate financing methods, broaden financing
channels, reduce overall capital cost, and raise funds from multiple channels according to the company’s financial standing and actual
conditions to ensure business development of the Group.
V. Risk control enhancement for safety in production. The Company will keep promoting the standardization of safe production
and the construction of “dual prevention mechanism” by implementing list management on key areas and risk points of important
links and building information platform for safe production and construction for accident prevention throughout the year. The
Company will also work on request from complaint letters and visits and risk investigation and prevention, and strengthen dynamic
37
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
tracking and implementation of major risks to maintain stable operation and development of the Group.
VI. Talent team development for joint force of development. The Company will actively promote the construction of multi-level
incentive mechanism, focusing on the tenure system and contractual management of managers, by formulating and implementing
incentive schemes such as long-term incentive, excess bonus, project node award and incremental sharing of subordinate enterprises
on the basis of salary benchmarking market, and realize full coverage of incentive principles for incremental performance determined
by incremental revenue. The Company will develop cadre teams by broadening personnel selection and employment, and optimize
talent introduction, reservation, training and use to meet the business development needs of the Group. The Company will also
strengthen branding of the Group training center, build a high-level talent training system, and increase the exchange and rotation of
Group employees to fully improve the comprehensive ability and quality of employees for group business development.
(IV) Risk analysis
1. Market risk
Affected by the epidemic, China’s economic growth rate declined in 2020. As consumption decreased, the Company faces business
development opportunities and challenges. The guidance of polices of “ensuring stability in employment, financial operation, foreign
trade, foreign investment, domestic investment and expectations”, “ensuring security in job, basic living needs, operations of market
entities, food and energy security, stable industrial and supply chains, and the normal functioning of primary-level government”,
“three red lines” and “houses are for living in, not for speculating on” which remain unchanged led to a downward track of the
demand end of real estate market, and the central government is implementing strict financial supervision on the real estate market.
Due to the epidemic, the construction period of some projects under construction has lagged behind. As payment rate of property
management fee is low and main income from sales and rent are under downward pressure, the market environment is complex.
Facing the difficulties, the Company studied the opportunities and challenges brought by macroeconomic and policy trend for
strategic breakthrough. The Company put forward the “12345” overall development idea of “1 Vision + 2 Major Sectors + 3 Driving
Factors + 4 Businesses + 5 Value-added Services”, and included Guangdong, Hong Kong and Macao metropolitan area and
surrounding areas in expansion target based on Shenzhen to improve sustainable development ability.
2. Land Reserve Risk
As a matter of fact, the Company still lacks enough land reserves and development power at later stages. In recent years, the supply
of residential land on Shenzhen Market has continuously declined. As the price of each single plot increases year after year, various
large-scale real estate enterprises have enlarged their market shares and accelerated their M&A pace. While the real estate industry is
centralizing, the degree of centralization of the land reserve scale has also been enhanced. As the external environment and the
industry’s trend become much more complicated and severe, the increment market scale will further shrink and the market
competition will become increasingly fierce.
Facing the challenges, the Company will continue to expand through market competition, capital operation and urban renewal,
increase land reserves and promote the launch of projects. In respect to property type, residential projects will focus on
Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta metropolitan area and areas where existing projects locate,
and gradually turn to central urban agglomeration surrounding Wuhan, key cities in Chengdu- Chongqing in the West and those in
Beijing, Tianjin and Hebei. Urban renewal projects will focus on Shenzhen, Dongguan and Huizhou, and follow-up of urban renewal
projects in Guangzhou. Comprehensive industry and urban projects will focus on Guangdong-Hong Kong-Macao Greater Bay Area,
Yangtze River Delta region, Wuhan region in the central part and Chengdu-Chongqing area in the West.
3. Financing Risk
As the central government tightened financial supervision over real estate and implemented the “three red lines” in the second half of
2020, financing of real estate enterprises are further restricted. In the process of actively increasing land reserves and accelerating the
business development, the Company needs to invest a large amount of funds for land acquisition and project development. In
addition to its own funds, the Company’s project development funds need to be externally financed through bank loans and issuing
securities.
Currently, the Company has steady financial situation, sufficient cash flow and good credit condition, and will further strictly control
38
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
financial risks, actively explore various financing channels so as to raise funds for project development in the future.
The above business plan and business objectives do not represent the listed Company’s profit forecast for 2021. Whether it
can be achieved depends on various factors including changes in market conditions and the effort made by the management
team. Investors must pay special attention to that because there exists huge uncertainty.
X Communications with the Investment Community such as Researches, Inquiries and
Interviews
1. During the Reporting Period
√ Applicable □ Not applicable
Place
Date of visit Way of visit Type of visitor Visitor Contents and materials provided
of visit
The
Inquired of disclosure of the Company’s
2020-01-02 Compa Others Individual Individual
2011 annual report
ny
The
Inquired of completion of occupation of
2020-01-06 Compa Others Individual Individual
Golden Collar’s Resort Project
ny
The
Inquired of the transfer of some shares by
2020-02-24 Compa Others Individual Individual
SIHC Agreement
ny
The
Inquired of the Company’s stock price
2020-03-04 Compa By phone Individual Individual
performance and result
ny
The
Inquired of the custody situation of China
2020-03-05 Compa Others Individual Individual
Shenzhen Foreign Trade Group
ny
The
Inquired of the construction status of the
2020-03-18 Compa By phone Individual Individual
project in the annual report
ny
The
Inquired of the inventory and project
2020-03-18 Compa By phone Individual Individual
construction status in the annual report
ny
The Inquired of the income of the property
2020-03-18 Compa By phone Individual Individual management sector and the progress of the
ny Bangling project in the annual report
The
Inquired of the performance of Rongyao
2020-03-21 Compa Others Individual Individual
Real Estate
ny
2020-03-23 The By phone Individual Individual Inquired of the proportion of business
39
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Compa sectors and project progress in the annual
ny report
The
Inquired of the Company's share price
2020-04-02 Compa By phone Individual Individual
performance
ny
The
Inquired of the Company’s general meeting
2020-04-02 Compa By phone Individual Individual
of shareholders
ny
The
2020-04-02 Compa Others Individual Individual Inquired of the Company's work resumption
ny
The
Inquired of the Company's first-quarter
2020-04-03 Compa Others Individual Individual
report disclosure time
ny
The Inquired of the profitability of the
2020-04-07 Compa By phone Individual Individual Company's 2019 property management
ny sector
The
Inquired of the Company's implementation
2020-04-08 Compa By phone Individual Individual
of dividends
ny
The
Inquired of the Company’s leasing business
2020-04-08 Compa By phone Individual Individual
development
ny
The Inquired of the Company's 2020 sales
2020-04-13 Compa By phone Individual Individual forecast, dividends, restructuring, project
ny progress
The Inquired of the Company’s sales and
2020-04-14 Compa By phone Individual Individual construction of Bangling project and
ny Golden Collar’s Resort project
The
Inquired of the Company's annual report
2020-04-15 Compa Others Individual Individual
information disclosure
ny
The
2020-04-16 Compa Others Individual Individual Inquiry of the date of equity registration
ny
The
Inquired of the Company's saleable real
2020-04-18 Compa Others Individual Individual
estate projects
ny
The Inquired of the Company's Golden Collar’s
2020-04-23 By phone Individual Individual
Compa Resort project sales
40
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
ny
The
Inquired of the Company’s three main
2020-04-23 Compa Others Individual Individual
businesses
ny
The
Inquired of the Company’s general meeting
2020-04-27 Compa By phone Individual Individual
of shareholders
ny
The
2020-04-27 Compa Others Individual Individual Inquired of stock dividends
ny
The
Inquired of the impact of COVID-19 on the
2020-04-29 Compa By phone Individual Individual
Company's first-quarter operations
ny
The
Inquired of the Company's net profit and
2020-04-29 Compa Others Individual Individual
dividend in the first quarter
ny
The
Inquiry of the implementation of dividend
2020-05-06 Compa By phone Individual Individual
distribution of the Company
ny
The
2020-05-11 Compa By phone Individual Individual Inquired of the Bangling and other projects
ny
The
Inquiry of the Company's property
2020-05-12 Compa Others Individual Individual
management business scope
ny
The
Inquired of the demolition progress of
2020-05-14 Compa Others Individual Individual
Bangling project
ny
The Inquired of the Company's first-quarter
2020-05-18 Compa Others Individual Individual revenue and profit in the property
ny management sector
The
Inquired of the Company's B-share stock
2020-05-20 Compa Others Individual Individual
price
ny
The
Inquired of number of the Company’s
2020-05-26 Compa Others Individual Individual
shareholders
ny
The
Inquired of the Company's dividend
2020-05-26 Compa By phone Individual Individual
payment status
ny
41
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
The
Inquired of the impact of the mixed reform
2020-05-27 Compa Others Individual Individual
of state-owned enterprises for the Company
ny
The
Inquired of the Company's stock XR
2020-05-28 Compa Others Individual Individual
dividends
ny
The Inquired of the Company's property
2020-05-28 Compa By phone Individual Individual management sector composition and project
ny construction progress
The
Inquired of number of the Company’s
2020-06-01 Compa Others Individual Individual
shareholders
ny
The
Inquiry of the Company's expected
2020-06-03 Compa Others Individual Individual
performance in the first half of the year
ny
The
Inquiry of the Company's Huiyang plot
2020-06-03 Compa By phone Individual Individual
construction progress
ny
The
Inquiry of the Company's stock price
2020-06-04 Compa By phone Individual Individual
changes
ny
The
2020-06-04 Compa Others Individual Individual Inquiry of the Company's market value
ny
The
Inquiry of the Company's stock price
2020-06-05 Compa Others Individual Individual
changes
ny
The
Inquiry of if the Company has any major
2020-06-08 Compa Others Individual Individual
investment plans in the near future
ny
The
Inquiry of the Company's stock price
2020-06-10 Compa By phone Individual Individual
changes
ny
The
2020-06-12 Compa Others Individual Individual Inquiry of managers of the Company
ny
The
Inquiry of the Company's stock price
2020-06-12 Compa By phone Individual Individual
changes
ny
2020-06-15 The Others Individual Individual Inquiry of managers of the Company
42
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Compa
ny
Researche
rs from
The Inquiry of the Company's business in 2019,
several
2020-06-16 Compa Field research Institution project construction and future business
funds and
ny plans
securities
companies
The
Inquiry of the Company's stock price
2020-06-17 Compa By phone Individual Individual
changes
ny
The
Inquiry of the Company's B-share stock
2020-06-17 Compa By phone Individual Individual
price
ny
The
Inquiry of the Company's stock price rise,
2020-06-19 Compa By phone Individual Individual
property management model
ny
The
Inquiry of the Company's stock price rise
2020-06-19 Compa By phone Individual Individual
and the recovery of the inquiry letter
ny
The
Inquiry of the Company's major asset
2020-06-23 Compa Others Individual Individual
restructuring plan
ny
The
Inquiry of the Company's real estate
2020-06-24 Compa Others Individual Individual
subsidiary
ny
The
Inquiry of the Company's progress of
2020-06-28 Compa Others Individual Individual
Bangling project
ny
The
Inquiry of the Company's partial equity
2020-06-29 Compa Others Individual Individual
transfer
ny
The
Inquiry of the inventory in the Company's
2020-07-01 Compa Others Individual Individual
financial statements
ny
The
Inquiry of the Company's semi-annual
2020-07-01 Compa Others Individual Individual
report
ny
The Inquiry of the Company's performance in
2020-07-02 Others Individual Individual
Compa the first half of the year
43
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
ny
The
Inquiry of if the Company has applied for a
2020-07-06 Compa Others Individual Individual
tax-exempt business license plan
ny
The
Inquiry of the Company's semi-annual
2020-07-06 Compa By phone Individual Individual
report
ny
The
Inquiry of the cooperation between the
2020-07-07 Compa Others Individual Individual
Company and Shenzhen Duty Free Group
ny
The
2020-07-15 Compa Others Individual Individual Inquiry of the Company's property rights
ny
The
Inquiry of major shareholders' shareholding
2020-07-20 Compa By phone Individual Individual
reduction
ny
The
Inquiry of the cooperation between the
2020-07-23 Compa By phone Individual Individual
Company and Shenzhen Duty Free Group
ny
The
Inquiry of the impact of Sino-U.S. relations
2020-07-24 Compa Others Individual Individual
for the Company’s performance
ny
The
Inquiry of the Company's future
2020-07-27 Compa Others Individual Individual
development plans
ny
The Inquiry of the revitalization project of the
2020-08-10 Compa Others Individual Individual Renmin South Commercial District in
ny Luohu District is led by the Company
Inquiry of the Company whether to
The
undertake the construction project of the
2020-08-17 Compa Others Individual Individual
"Shenzhen Demonstration Pilot Zone” or
ny
provide property services for it
The
Inquiry of the reasons for the sharp drop in
2020-08-25 Compa By phone Individual Individual
the Company's share price
ny
The
Inquiry of the Company's stock price
2020-08-28 Compa Others Individual Individual
changes
ny
The Inquiry of the progress of the Renmin South
2020-08-31 Others Individual Individual
Compa Commercial District renovation plan
44
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
ny
The
2020-09-07 Compa Others Individual Individual Inquiry of the progress of Bangling project
ny
The
Inquiry of the cooperation between the
2020-09-14 Compa Others Individual Individual
Company and Shenzhen Duty Free Group
ny
The Inquiry of the Company's land reserves,
2020-10-15 Compa Others Individual Individual area under construction, and sales of
ny Golden Collar’s Resort project
The
Inquiry of if the Company has plans to
2020-10-18 Compa Others Individual Individual
invest in marine industry clusters
ny
The
Inquiry of the cash flow of the semi-annual
2020-10-20 Compa Others Individual Individual
report
ny
The
Inquiry of the Company's future business
2020-10-21 Compa Others Individual Individual
plans
ny
The
Inquiry of the Company's third-quarter
2020-10-26 Compa Others Individual Individual
report revenue and cash flow
ny
The
Inquiry of number of the Company’s
2020-10-27 Compa Others Individual Individual
shareholders
ny
The
Inquiry of the progress of the Bangling
2020-10-28 Compa Others Individual Individual
project and Fuchang Building
ny
The
2020-10-29 Compa Others Individual Individual Inquiry of the operation of smart park
ny
The
Inquiry of the progress of the Company's
2020-11-20 Compa Others Individual Individual
major shareholders' shareholding reduction
ny
The
Inquiry of the reasons for the sharp drop in
2020-11-26 Compa By phone Individual Individual
the Company's share price
ny
The
Inquiry of the reasons for the sharp drop in
2020-11-26 Compa Others Individual Individual
the Company's share price
ny
45
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
The
2020-12-08 Compa Others Individual Individual Inquiry of the progress of Vietnam project
ny
The
Inquiry of the Company's cash flow and tax
2020-12-19 Compa Others Individual Individual
expenditures
ny
Times of communications 90
Number of institutions communicated with 1
Number of individuals communicated with 89
Number of other communication parties 0
Tip-offs or leakages of substantial
supposedly-confidential information during None
communications
46
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part V Significant Events
I Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, for ordinary shareholders was formulated, executed or revised
in the Reporting Period:
□ Applicable √ Not applicable
The profit distributions to ordinary shareholders, either in the form of cash or stock, in the past three years (including the Reporting
Period) are summarized as follows:
Year Profit distributions (in the form of cash or stock)
2020 A cash dividend of RMB4.10 (tax included) per 10 shares and no share capital increase from capital
reserve
2019 A cash dividend of RMB3.60 (tax included) per 10 shares and no share capital increase from capital
reserve
2018 A cash dividend of RMB3.00 (tax included) per 10 shares and no share capital increase from capital
reserve
Cash dividend for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
Net profit
attributable to
Cash
ordinary Total cash
dividends
Cash shareholders of in other dividends
A as % of forms C as % of D as % of
Year dividends (tax the listed (including those
B (%) (such as B (%) B (%)
inclusive) (A) company in share in other forms)
repurchase
consolidated (D)
) (C)
statements for
the year (B)
2020 244,351,427.72 798,572,121.74 30.60% 244,351,427.72 30.60%
2019 214,552,473.12 817,805,780.12 26.24% 214,552,473.12 26.24%
2018 178,793,727.60 698,050,728.96 25.61% 178,793,727.60 25.61%
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for the ordinary shareholders despite the
facts that the Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to the
ordinary shareholders are positive.
□ Applicable √ Not applicable
II Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
47
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 4.1
Total shares as the basis for the profit distribution proposal
595,979,092
(share)
Cash dividends (RMB) (tax inclusive) 244,351,427.72
Cash dividends in other forms (such as share repurchase)
0.00
(RMB)
Total cash dividends (including those in other forms) (RMB) 244,351,427.72
Distributable profit (RMB) 1,487,964,894.53
Total cash dividends (including those in other forms) as % of
100%
total profit distribution
Cash dividend policy
If the Company is in a mature development stage and has no plans for any significant expenditure, in profit allocation, the ratio of
cash dividends in the profit allocation shall be 80% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
According to the Company’s Articles of Association as well as the actual situation of its development and operation, the proposal of
the Company for 2020 annual profit distribution is as follows: Based on the total 595,979,092 shares of the Company as at 31
December 2020, a cash dividend of RMB4.1 (tax included) will be distributed to all its shareholders for every 10 shares they hold,
with the total cash dividends to be distributed amounting to RMB244,351,427.72. No capital reserves will be turned into share
capital for 2020.
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
Date of Term of
Type of
Commitment Promisor Details of commitment commitme commitme Fulfillment
commitment
nt making nt
Wholly-owned subsidiary Shenzhen
Expander and subsidiary holding SPG
Commitments
Commitments on of Shenzhen Investment Holdings
made in
Shenzhen horizontal deal with real estate operation and
acquisition 6
Investment competition, commercial house sales, which belong Three Normal
documents or September
Holdings Co., related-party to the same industry of the Listed years performance
shareholding 2018
Ltd. transactions and Company, and has horizontal
alteration
capital occupation competition with the Listed Company.
documents
To avoid horizontal competition,
Shenzhen Investment Holdings make
48
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
the following commitments1.
Commitments on
Shenzhen horizontal To reduce and standardize related
6
Investment competition, transactions with the Listed Company, Normal
September Long-term
Holdings Co., related-party Shenzhen Investment Holdings makes performance
2018
Ltd. transactions and the following commitments .
2
capital occupation
Shenzhen Investment Holdings sighed
Other
Shenzhen Performance equity transfer contract on 100%
commitments 23
Investment commitment and equity transfer of TK Property with Three Normal
made to September
Holdings Co., compensation the Company, and the contract years performance
minority 2019
Ltd. arrangement stipulated relevant commitments on
shareholders
performance3.
Fulfilled on time Yes
Note 1: Wholly-owned subsidiary Shenzhen Expander and subsidiary holding SPG of Shenzhen Investment Holdings deal with real
estate operation and commercial house sales, which belong to the same industry of the Listed Company, and has horizontal
competition with the Listed Company. To avoid horizontal competition, Shenzhen Investment Holdings make the following
commitments: 1. On the horizontal competition solution of Shenzhen Expander: as the holding shareholder of the Listed Company,
during the listing period at Shenzhen Stock Exchange of the Listed Company, as for the current business of Shenzhen Expander
which has horizontal competition with the Listed Company, within the scope permitted by law and regulation, within 12 months from
the equity of SZPRD being transferred to Shenzhen Investment Holdings, Shenzhen Investment Holdings will start the solution with
practical operability among below horizontal competition solution timely and complete implementation of the solution within 3 years
from the date that the equity of SZPRD is transferred to Shenzhen Investment Holdings to solve current horizontal competition
problems: (1) Shenzhen Expander signs asset custody agreement with the Listed Company, entrusts the assets which has direct
competition with the Listed Company to the Listed Company, confirms fair custodian fee at the same time, and takes effective
measures to solve horizontal competition within commitment period; (2) Inject assets with direct competition with the Listed
Company into the Listed Company; (3) Transfer assets with direct competition with the Listed Company to unrelated third party; (4)
other measures which can solve horizontal competition effectively and is favorable for protecting the interest of the Listed Company
and legal interests of other shareholders. Before solving current horizontal competition, while company, enterprise, economic
organization (not including enterprises controlled by the Listed Company, hereinafter referred to as subordinated Companies) which
the Listed Company and Shenzhen Investment Holdings hold controlling shares or controls actually have business, in case the
involved dispute, etc. have major influence on the business, Shenzhen Investment Holdings should keep neutral as a controlling
shareholder to ensure that the Listed Company and subordinated Companies can take part in market competition on the principle of
fair competition. 2. Horizontal competition solution of SPG: From 14 September 2016 to now, SPG has had stock suspension
because of major assets reconstruction. According to Review Opinions on Delaying Stock Resumption because of Major Assets
Reconstruction of SPG announced by CITIC Securities and Huatai Securities on 26 November 2016, the reconstruction solution is
that SPG plans to issue A share and / or use currency to purchase 100% equity of Evergrande Group (hereinafter referred to as “the
reconstruction of SPG”). On 9 November 2020, SPG issued an announcement that the current condition to continue to promote the
major assets reconstruction was not sound yet based on the current market environment and decided to terminate this transaction to
safeguard interests of the Company and all shareholders. After the termination of this transaction, Shenzhen Investment Holdings is
still the controlling shareholder of SPG. For business of SPG which has horizontal competition with the Listed Company, Shenzhen
Investment Holdings, within the scope permitted by law and regulation, Shenzhen Investment Holdings will start a rational horizontal
competition solution according to actual situation at the time within 12 months after the termination of reconstruction of SPG and
49
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
stock resumption announcement date, and fulfill announcement obligation, and SPG will complete to implement the solution and
solve the horizontal competition between SZPRD and SPG within 3 years from the date SPG terminates the reconstruction and
announces stock resumption. 3. Other commitments to avoid horizontal competition: as the controlling shareholder of the Listed
Company and during the listing period of the Listed Company at Shenzhen Stock Exchange, other subordinated Companies of
Shenzhen Investment Holdings will not engage in relevant business which has direct horizontal business competition with the Listed
Company in new business fields except for in the business field where it already has had horizontal competition with the Listed
Company. Shenzhen Investment Holdings promises not to seek improper benefits with the position of controlling shareholder of the
Listed Company and damage the interest of the Listed Company and its shareholders. In case of violating above commitment,
Shenzhen Investment Holdings shall undertake corresponding legal liabilities, including but not limited to undertaking compensation
responsibilities for all losses caused to the Listed Company.
On 17 October 2019, the Company received Correspondence on the Progress of Horizontal Competition Solving from controlling
shareholder Shenzhen Investment Holdings. During the commitment period of horizontal competition solving, Shenzhen Investment
Holdings actively fulfilled its relevant commitments, with the details as the following: 1. Shenzhen Investment Holdings is sorting
out the relevant assets and business of Shenzhen Expander, and studying to formulate the solution of horizontal competition. Due to
the long history of Shenzhen Expander and the complicated asset state, relevant solution needs to be further analyzed and
demonstrated. Shenzhen Investment Holdings will active promote relevant work, strives for solve competition problem within
commitment period. 2. The reconstruction of SPG with Evergrande Group is terminated for some reason, Shenzhen Investment
Holdings will start a rational horizontal competition solving solution according to ongoing situation of reconstruction and announce
timely. 3. Within the commitment period, Shenzhen Investment Holdings will not engage in relevant business which has direct
horizontal business competition with SZDRP in new business fields except for in the business field where it already has had
horizontal competition with SZDRP. Shenzhen Investment Holdings does not seek improper benefits with the position of controlling
shareholder of SZPRD and damage the interest of the Listed Company and its shareholders.
Note 2: To reduce and standardize related transactions with the Listed Company, as controlling shareholder of the Listed company
and during the listing period of the Listed Company at Shenzhen Exchange Stock, Shenzhen Investment Holdings promises: 1.
Shenzhen Investment Holdings and its controlling or actually controlled companies, enterprises, economic organizations (not
including enterprises controlled by the Listed Company, hereinafter referred to as the “subordinated companies”) will strictly
exercise the rights of shareholders according to provisions of laws, regulations, and other normative documents, and fulfill the
obligations of shareholders, and keep the independence of the Listed Company in assets, finance, employees, business and agency,
etc. 2. Shenzhen Investment Holdings promises not to use its position of controlling shareholder to promote board of shareholders or
board of directors to make resolutions which may damage the legal interest of the Listed Company or other shareholders; 3.
Shenzhen Investment Holdings and its subordinated companies will try their best to avoid having related transactions with the Listed
Company. In case the transaction with the Listed Company is inevitable, Shenzhen Investment Holdings and its subordinated
companies will have transaction with the Listed Company on the basis of equality and free will, according to fair, rational and normal
commercial transaction conditions, will not require or accept conditions which is more preferential than the Listed Company gives to
the third party in any fair market transactions, and strictly fulfill various related transactions with the Listed Company with good will.
4. Shenzhen Investment Holdings and its subordinated companies will strictly fulfill decision making procedures and relevant
information disclosure obligations of related transactions according to articles of association of the Listed Company and relevant
laws and regulations. 5. Shenzhen Investment Holdings and its subordinated companies will make sure that they will not seek special
interests beyond above stipulations by having related transactions with the Listed Company, will not use related transactions to
illegally transfer funds and profits of the Listed Company and to maliciously damage the legal interests of the Listed Company and
its shareholders. 6. As for current related transaction with the Listed Company, within the scope permitted by laws and regulations,
Shenzhen Investment Holdings promises to confirm rational related transaction solution within 12 months after the Company shares
are transferred to Shenzhen Investment Holdings, and complete to implement the solution within 5 years after the Company shares
are transferred to Shenzhen Investment Holdings, to solve such related transactions completely. The specific forms include: (1) After
50
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
current related transaction contract expires, it will not be renewed. In case contract renewal is necessary according to the operation
needs of the Listed Company, it will fulfill relevant decision making procedures strictly according to procedures of related
transactions. (2) Under the precondition of possible realization, terminate contract which is being fulfilled, and adopt marketized and
open bid invitation, etc., inquire again on service items involved in such related transactions to confirm appropriate service provider.
In case related transaction is involved, it should fulfill relevant decision making procedures according to related transaction
procedures. (3) In case there is possibility of price re-negotiation in the related transaction contract which is being fulfilled, conduct
price negotiation again, make the contract amount after re-pricing conform to market price and not higher than the amount of contract
which is being fulfilled, and strictly fulfill relevant decision making procedures according to related transaction procedures.(4) Other
appropriate measures which can reduce and finally eliminate current related transaction but not necessary. 7. In case of violating
above commitments, Shenzhen Investment Holdings shall undertake corresponding legal liabilities, including but not limited to
undertaking compensation liability for all the losses caused to the Listed Company.
Note 3: Shenzhen Investment Holdings sighed equity transfer contract on 100% equity transfer of TK Property with the Company,
and the contract stipulated: 1. Shenzhen Investment Holdings promises that the cumulative net profits (net profit after deducting
extraordinary items) of TK Property from 2019 to 2021 will not be less than 18% of the equity transfer payment amount of this
transaction, i.e. three-year cumulative net profits ≥ equity transfer payment * 18%. The above net profits are subject to the amount
which is confirmed by audited financial report of TK Property. 2. In case three-year cumulative profits of TK Property fails to reach
above promised amount, TP Property shall compensate the insufficient part to the Company in full amount by cash. In case three-year
cumulative profits (net profit after deducting extraordinary items) of TK Property is more than the promised amount, the Company
will not refund. 3. In case Shenzhen Investment Holdings needs to fulfill performance compensation obligation, it shall complete the
performance compensation obligation within 30 days after receiving the compensation notice of the Company, and the specific
delivery method will be agreed by both parties. In case Shenzhen Investment Holdings delays to pay the performance compensation,
it shall pay liquidated damages of 3/10000 of unpaid amount for each day delay. In case of failing to pay for more than 90 days, then
Company has the right to cancel the contract. On 27 November 2019, the Company completed the procedures for registration
changes in industry and commerce regarding 100% equity transfer of Shenzhen Investment Holdings. According to the Equity
Transfer Contract and the audit result on profit or loss of transitional period in the audit report, the final price for this equity transfer
was determined bilaterally as RMB1,027,382,513.56. As of 28 April 2020, the Company had paid off above accounts and the
related-party transaction was formally completed. Above commitments are under normal performance.
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□Applicable √ Not applicable
IV Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□Applicable √ Not applicable
51
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
VI YoY Changes to Accounting Policies, Estimates and Methods
√ Applicable □ Not applicable
The Company has adopted the provisions of Accounting Standard for Business Enterprises No. 14 –Revenue (CK [2017] No. 22)
since 1 January 2020. According to cumulative effects, the Company adjusted retained earnings at the beginning of the year and other
relevant items in the financial statements, without adjustment of any information of the comparable period. The impact of accounting
policy changes includes:
Contents of changes in accounting policies and reasons
Items and amounts of financial statements affected
thereof
Consideration paid by customers before the delivery of goods In the consolidated balance sheet on 1 January 2020, “Advances
is listed as “contract liabilities” in accordance with the newfrom customers” are RMB516,988.76, “Contract liabilities” are
standard for income, and tax included is listed as “other RMB690,543,580.95 and “Other current liabilities” are
current liabilities”. RMB37,125,462.92;
In the balance sheet of the Company as the Parent on 1 January
2020, “Advances from customers” are RMB320,469.53, “Contract
liabilities” are RMB0.00 and “Other current liabilities” are
RMB0.00.
The right to receive consideration for goods or services thatIn the consolidated balance sheet on 1 January 2020, “Contract
have been transferred to customers (which depends on otherassets” are RMB0.00;
factors other than time) is listed as “contract assets” inIn the balance sheet of the Company as the Parent on 1 Januray
accordance with the new standard for income. 2020, “Contract assets” are RMB0.00.
Incremental cost (such as sales commission) incurred forIn the consolidated balance sheet on 1 January 2020, “Other current
contract acquisition is recognized as an asset as cost ofassets” are RMB0.00 and “Other non-current assets” are RMB0.00;
contract acquisition, and listed as cost of contract acquisition
In the balance sheet of the Company as the Parent on 1 Januray
in “other current assets” or “other non-current assets” in
2020, “Other current assets” are RMB0.00 and “Other non-current
accordance with the new standard for income. However, if the
assets” are RMB0.00.
amortization of asset is within one year, it can be included in
the current profit and loss when it occurs.
The Company adopts simple treatment method to include sales commission with amortization period within one year in the current
profit and loss when it occurs. The amortization period of sales commission in 2019 is within one year.
VII Retrospective Restatements due to Correction of Material Accounting Errors in the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
For the detailed changes to the scope of the Company’s consolidated statements of the Reporting Period, see “Part XII Financial
Statements”, VIII.
52
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
IX Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor Baker Tilly China Certified Public Accountants (LLP)
The Company’s payment to the domestic independent auditor
84
(RMB’0,000)
How many consecutive years the domestic independent auditor
One year
has provided audit service for the Company
Names of the certified public accountants from the domestic
Li Ming, Chen Zihan
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
One year for Li Ming and one year for Chen Zihan
have provided audit service for the Company
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
√ Yes □ No
Indicate by tick mark whether the independent auditor was changed during the audit period.
□ Yes √ No
Indicate by tick mark whether an approval procedure was implemented for the change of independent auditor.
√ Yes □ No
Further details about the change of independent auditor:
Pan-China Certified Public Accountants (LLP) (hereinafter referred to as “Pan-China CPA”) originally hired by the Company
provided the audit service for the Company. Pan-China CPA adhered to the principle of independent audit in the course of practicing,
and reflected the financial status of the Company in an objective, fair and impartial way, earnestly fulfilled their due responsibilities,
and effectively safeguarded the legitimate rights and interests of the Company and its shareholders from a professional perspective.
Based on the demand of business development and future audit of the Company and bilateral communication and negotiation,
Pan-China CPA was no longer the independent auditor of the Company. The Company held the 12th Meeting of the 9th Board of
Directors and the 2019 Annual General Meeting of Shareholders respectively on 7 April 2020 and 28 April 2020 and determined to
hire Baker Tilly China Certified Public Accountants (LLP) as the auditor for the 2020 Financial Statements and internal control of the
Company. The said proposal has been approved both on the board meeting and shareholders meeting.
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
In this Reporting Period, the Company engaged Baker Tilly China Certified Public Accountants (LLP) for its internal control audit
and paid an internal control audit fee of RMB0.15 million to it for the period.
X Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
53
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
XII Major Legal Matters
√ Applicable □ Not applicable
Index
to
Involved
Disclo discl
General amount Decisions and Execution of
Provision Progress sure osed
information (RMB’0,00 effects decisions
date infor
0)
matio
n
Litigation matters The first
in disputes over The verdict was instance judged
environmental reached in the that the
No need to
pollution liability 815.4 Not first instance Company
perform
of CSCEC and the and the plaintiff undertook no
Company (180 appealed compensation
cases in total) liabilities.
See Part XII See Part XII See Part XII See Part XII
Summary of other
840.62 Financial Financial Financial Financial
contract disputes
Report-XIV-2 Report-XIV-2 Report-XIV-2 Report-XIV-2
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
Related Relati Type Specif Pricin Trans Total As % Appro Over Metho Obtaina Disc Ind
54
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
party onshi of ic g action value of ved the d of ble losu ex
p with transa transa princi price (RM total transa appro settle market re to
the ction ction ple B’0,0 value ction ved ment price for date dis
Comp 00) of all line line or same-ty clo
any same- (RM not pe sed
type B’0,0 transacti inf
transa 00) ons or
ctions mat
ion
Relate
d-part
y
Wholl transa
Shenzh y-own ctions
en Bay ed gover Proper
Technol subsid ning ty Mark
Agree
ogy iary sales manag et 4,787. 4.47
ment 3,792 Yes Cash 4,787.13
Develo of the of ement princi 13 %
price
pment Comp comm servic ple
Co., any as odity es
Ltd. the and
parent provi
ding
of
labors
Relate
d-part
y
Wholl transa
Shenzh y-own ctions
en Bay ed gover
Mana
Technol subsid ning Mark
gemen Agree
ogy iary purch et 6,460. 7.08
t ment 6,692 Not Cash 6,460.99
Develo of the ase of princi 99 %
servic price
pment Comp comm ple
es
Co., any as odity
Ltd. the and
parent provi
ding
of
labors
Shenzh Wholl Entrus Mark Agree 4,834. 34.79
Lease 6,080 Not Cash 4834.13
en y-own ted et ment 13 %
55
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Shento ed manag princi price
u Real subsid ement ple
Estate iary servic
Develo of the es of
pment Comp house
Co.,Ltd any as s
. the
parent
16,08 16,56
Total -- -- -- -- -- -- -- --
2.25 4
Large-amount sales return in detail N/A
Give the actual situation in the
The total amount of daily related-party transactions of the Company in 2020 is expected
Reporting Period (if any) where an
to be RMB168.87 million, and actual total amount of daily related-party transactions is
estimate had been made for the total
RMB170.39 million. The excess amount is lower than the disclosure standard. For
value of continuing related-party
details, please refer to the Proposal on Daily-Related Party Transactions in 2021 disclosed
transactions by type to occur in the
on the same day of this report.
Reporting Period
Reason for any significant
difference between the transaction
N/A
price and the market reference price
(if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.
√ Yes □ No
Receivable from related parties
Capital Beginning Amount Amount Ending
Relationship newly received in Current
Related occupati balance added in current Intere interest balance
with the Reason
party on for (RMB’0,0 current period st rate (RMB’0, (RMB’0,0
Company period (RMB’0,00 000)
non-ope 00) (RMB’0 0) 00)
56
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
rating ,000)
purpose
s
(yes/no)
The parent
company of
the
Business
subsidiary
Shenzhen circulating
Rongyao
Xinhai funds
Real No 55,150 15,000 40,150
Holdings before
Estate’s
Co., Ltd. acquisitio
minority
n
shareholder
Xinhai
Rongyao
Shenzhen
Xinhai Minority Business
Rongyao shareholder circulating
Real of the funds
No 33,047.29 33,047.29
Estate subsidiary before
Developm Rongyao acquisitio
ent Co., Real Estate n
Ltd.
Influence on the
Company’s operating All were within the risks control of the Company and not influenced the operating results and the
results and financial financial conditions.
condition
Liabilities payable to related parties
Amount
Amount
Beginning returned in Current
Relation newly added Inter Ending
Formation balance current interest
Related party with the in current est balance
reason (RMB’0,0 period (RMB’0,0
Company period rate (RMB’0,00
00) (RMB’0,00 00)
(RMB’0,000) 0)
0)
Shenzhen Jifa
Joint vent Intercours
Warehouse Co., 3,579.67 3,579.67
ure e funds
Ltd.
Shenzhen
Tian’an
International
Joint vent Intercours
Building 521.43 521.43
ure e funds
Property
Management
Co., Ltd.
57
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Influence on the Company’s
All were within the risks control of the Company and not influenced the operating results and
operating results and financial
the financial conditions.
condition
5. Other Major Related-Party Transactions
√Applicable □ Not applicable
1. On September 6 and 23, 2019, the Company held the eighth meeting of the ninth session of the Board of Directors and the 2019
second extraordinary general meeting of shareholders respectively to review and pass the Proposal on Acquisition of 100% of Equity
Interests in TK Property and Related-party Transaction. The Company purchased 100% equity of TK Property held by Shenzhen
Investment Holdings Co., Ltd., the controlling shareholder of TK Property, in the form of cash payment. On November 27, 2019, the
Company completed the industrial and commercial registration procedures for the transfer of 100% equity interests of TK Property.
According to the agreement on Equity Interest Transfer Contract and audit report on the profit and loss of the transition period, both
parties confirmed that the final price of equity interests transfer was RMB 1,027,382,513.56. As of April 28, 2020, the Company has
paid the above amount, and completed the related-party transaction. For details, please refer to the Announcement on Acquisition of
100% of Equity Interests in TK Property and Related-party Transaction published on www.cninfo.com.cn on April 28, 2020.
2. On December 28, 2020, the Company held the 21st meeting of the ninth session of Board of Directors to review and pass the
Proposal on Signing the Property Management Service Contract with An Duong Industrial Park of Haiphong, Vietnam and
Related-Party Transaction. VCEP entrusted ITC Property Management to provide property management services to An Duong
Industrial Park located in Hongfeng Township, An Duong Town, Haiphong City, Vietnam, with a service area of 1.961 million square
meters of industrial park (including administrative office and dormitory buildings). VCEP, a wholly-owned subsidiary of Shenzhen
Investment Holdings, the controlling shareholder of the Company, is a related party of the Company, and this transaction constituted
a related-party transaction. For details, please refer to the Announcement on Signing the Property Management Service Contract with
An Duong Industrial Park of Haiphong, Vietnam and Related-Party Transaction published on www.cninfo.com on December 28,
2020.
XVII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
√Applicable □ Not applicable
Description of trusteeship situation:
The Company signed the Agreement for Engagement in Assisted Management with its controlling shareholder Shenzhen Investment
Holdings Co., Ltd. (SIHC) on 1 March 2020. According to the Agreement, the Company was appointed to exercise assisted
management over China Shenzhen Foreign Trade (Group) Co., Ltd., a wholly-owned subsidiary of SIHC. The assisted management
period would be six months, from 1 March 2020 to 31 August 2020. For the specific content, please refer to the Company’s Voluntary
Information Disclosure Announcement on the Agreement for Engagement in Assisted Management Signed with the Controlling
Shareholder, No. 2020-5, disclosed on http://www.cninfo.com.cn on 3 March 2020.
Projects whose profits and losses for the Company reached more than 10% of the total profits during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
58
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major guarantees
√ Applicable □ Not applicable
(1) Guarantees
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure Guaran
date of the tee for
Actual Actual Type of Having
guarantee Line of Term of a
Obligor occurrence guarantee guarante expired
line guarantee guarantee related
date amount e or not
announcem party
ent or not
Guarantees provided by the Company for its subsidiaries
Disclosure Guaran
date of the tee for
Actual Actual Type of Having
guarantee Line of Term of a
Obligor occurrence guarantee guarante expired
line guarantee guarantee related
date amount e or not
announcem party
ent or not
Shenzhen 27
Rongyao Real November
18 October 27 November Joint-lia
Estate 500,000 299,980 2019 to 20 No Yes
2019 2019 bility
Development Co., November
Ltd. 2024
Total approved line for such Total actual amount of
guarantees in the Reporting 0 such guarantees in the 80,700
Period (B1) Reporting Period (B2)
Total approved line for such Total actual balance of
guarantees at the end of the 500,000 such guarantees at the 299,980
Reporting Period (B3) end of the Reporting
59
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Period (B4)
Guarantees provided between subsidiaries
Disclosure Guaran
date of the tee for
Actual Actual Type of Having
guarantee Line of Term of a
Obligor occurrence guarantee guarante expired
line guarantee guarantee related
date amount e or not
announcem party or
ent not
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved in
amount in the
the Reporting Period 80,700
Reporting Period
(A1+B1+C1)
(A2+B2+C2)
Total actual guarantee
Total approved guarantee line at
balance at the end of
the end of the Reporting Period 500,000 299,980
the Reporting Period
(A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the
80.47%
Company’s net assets
Of which:
Balance of guarantees provided for shareholders, actual
0
controller and their related parties (D)
Balance of debt guarantees provided directly or indirectly for
299,980
obligors with an over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of
113,584
the Company’s net assets (F)
Total of the three amounts above (D+E+F) 299,980
Compound guarantees:
Naught
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
60
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Continuing Major Contracts
□ Applicable √ Not applicable
5. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVIII Corporate Social Responsibility (CSR)
1. Measures Taken to Fulfill CSR Commitment
Since its inception, SZPRD has been adhering to the concept of honesty, responsibility and win-win cooperation for the benefit of
society. The Company actively fulfills its social responsibilities and always takes repaying the society as an important development
concept. It actively fulfills its statutory social responsibilities and ethical social obligations, and unifies the realization of economic
and social benefits to create an excellent corporate image. The Company carried out the following activities to perform its social
responsibility in 2020:
(1) Carry forward the spirit of reform and opening-up, create a building brand with CCP characteristics
To maximize the historical value of International Trade Center Building, and inherit and carry forward the spirit of reform and
opening-up, SZPRD started the preparation of history exhibition in Shenzhen International Trade Center in early 2019 to create a red
tour route on the basis of functioning as on-site teaching center of Shenzhen Party School on reform and opening up. The exhibition
was completed at the end of August 2020 and launched on September 1.
The exhibition in Shenzhen International Trade Center truly presented the building in the 1980s, which was famous for the
“Shenzhen Speed” that “one floor was completed in three days”, and reproduced the important historical scene of Deng Xiaoping's
Talks in the South. The exhibition consists of six parts to show the scenes of Deng Xiaoping, Jiang Zemin, Hu Jintao and other
leader’s visit to Shenzhen International Trade Center and reform and opening up of Shenzhen Special Economic Zone, including the
Preface Hall (Leaders’ care), Shenzhen Speed, Talks in the South, Historical Moment, Video stories and Enterprise Development,
which display precious historical materials to show “Shenzhen story” and the spirit of “venture, courage and work hard” of Shenzhen
Special Zone.
SZPRD created a red education route in International Trade Center to innovate and promote the building work with CCP
characteristics, and strengthen the construction of Party Member Service Center to share with government departments, streets and
communities, and provide a learning platform and rich teaching materials to SZPRD internal staff, Party members and the public.
Since its opening, the exhibition hall has received 147 interviews of People.cn, Xuexi.cn and other media, who made 114 reports, and
visits of 2755 person-time, including important receptions of leaders of the Organization Department of the CPC Central Committee,
Guangdong Provincial Government and Shenzhen Municipal Government. The building with CCP characteristics built by SZPRD is
recognized by Shenzhen municipal and Luohu district departments. It has become an important part of red education resources in
Shenzhen, being listed as a red route visiting spot by the Organization Department of the Municipal Party Committee and education
site on reform and opening up of the Party School.
61
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
SZPRD held the exhibition on reform and opening up to revitalize and reshape the cultural image and business atmosphere of
International Trade Center for the landing of duty-free town in Guangdong-Hong Kong-Macao Greater Bay Area to promote the
revitalization of Renmin South Business District of Luohu.
(2) Carry out blood donation, create projects with CCP characteristics on the principals of “projects led by the Secretary,
brands created by branches, achievements made by Party members”
To celebrate the 99th anniversary of the founding of CCP, consolidate the educational achievements of the theme of “remain true to
our original aspiration and keep our mission firmly in mind”, on 1 July, the party committee of Shenzhen International Trade Center
Property Management Co., Ltd. subordinated to SZPRD together with the Jiabei Community Station of Nanhu Sub-district in Luohu
District and International Trade Center Sub-branch of Shenzhen Branch of Bank of China held the activity of “Red Banner & Red
Action” Voluntary Blood Donation, attracting a total of 115 people to voluntarily donate their blood on the day with the total amount
of blood donation 41,950 ml.
Since 2011, the party committee of Shenzhen International Trade Center Property Management Co., Ltd. has insisted on carrying out
the theme activity for public benefits of “Red Banner & Red Action” to commemorate the party’s birthday every year, allowing party
member volunteers to play an exemplary role. Fortunately, the activity has attracted the active response from the owners and tenants
of ITC Building, various party organizations in the southern business district and Jiabei Community station and people from all walks
of life, and become a unique party building activity featuring “the secretary controls the activity, the party branch creates the brand,
and the party members strive for becoming the vanguard”. This activity has been held for consecutive nine years. In terms of this
activity, more than 700 people have donated their blood voluntarily with the total unpaid blood donation volume nearly 270,000 ml.
In addition, to support Shenzhen blood bank to meet the urgent demand after the outbreak of the epidemic this year and carry forward
the voluntary service spirit of “dedication, fraternal love, mutual aid and progress”, the Youth League Committee of SZPRD
organized and carried out the public welfare activity of “Fraternal Love, TK’s Support in People’s Livelihood” for blood donation
from March 24 to 25. About 110 Youth League members from Youth League Committees of TK Property, and Youth League
branches of Huangcheng Real Estate and Huangcheng Property Management, which are affiliated to the Youth League Committee of
the Group, participated in blood donation and donated 43400ml blood in total. Grass-roots Youth League members supported the
epidemic prevention and control voluntarily to respond to the activity of “show your party member identities in epidemic prevention
and build brands with love” held by the Group, fully demonstrating the actions of the new era youth fresh troops and commandos of
Shenzhen property group, and make great contributions to the promotion of urban civilization in Shenzhen and epidemic prevention
and control.
(3) Donate RMB2 Million to support epidemic prevention and control, exempt small and medium-sized enterprises from
payment of rent approximating RMB38 Million
After the outbreak of COVID-19 epidemic in 2020, residential quarters, office buildings and industrial parks managed by property
management enterprises of the Group worked hard on epidemic prevention and control and work resumption. Leaders and staff of
property management enterprises made great contributions to epidemic prevention and control and recognized by the society and
property owners. In March 2020, the Group donated RMB2 million to support Hubei and Wuhan to tackle the epidemic, including
RMB50 thousand donated by Party members.
To implement the policies and requirements of the Municipal Party Committee, Municipal Government and Municipal State-owned
Assets Supervision and Administration Commission (SASAC) on tackling the epidemic and supporting enterprises to tide over the
difficulties, SZPRD acted quickly to implement property rent reduction policy to support private enterprises to relieve operation
difficulties.
In March 2020, SZPRD exempted non-state-owned enterprises, scientific research institutions, medical institutions and individual
businesses from payment of two months’ rent in three stages. Based on the policy of moderate leniency, the Group also included
natural persons who rent properties for production and operation in the scope of two months’ rent exemption, covering office
buildings, shops, factories, supporting service facilities and other properties with an area of about 310,000m2, which accounted for
about 83% of the Company’s total areas for lease, benefiting 447 leasees and 700 companies by rent reduction of RMB24.88 million
62
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
in total.
In August 2020, to respond to the requirements of the Municipal Government and SASAC on alleviation rent pressure of small and
micro enterprises in the service industry and individual business, SZPRD extended the rent exemption period of state-owned property
for one month, which involved a property area of about 270,000m2, benefiting 584 leasees by rent reduction of approximating
RMB13 million. So far, SZPRD exempted rent payment approximating RMB38 million in total.
(4) Carry out poverty alleviation work
The Group carried out pro-consumption activities to aid poverty alleviation, and purchased agricultural and side-line products
totalled RMB865,432 from poor areas online.
Meanwhile, Huangcheng Real Estate Co., Ltd. of the Group supported targeted poverty alleviation and elimination, and made a
targeted donation of RMB10,000 to Mulam Nationality in Luocheng.
(5) Care for employees, take on social responsibility
To implement the Group’s assistance mechanism, SZPRD Party Committee carried out activities before the Spring Festival to express
care for employees with difficulties on January 17. Liu Shengxiang, Secretary of the Party Committee and Chairman of the Group,
Wang Hangjun, Deputy Secretary of the Party committee and General Manager of the Group, Wei Xiaodong, Deputy secretary of the
Party Committee and Secretary of the Discipline Inspection Commission visited employee families in difficulties and sent gifts and
consolation money to express care and greetings on behalf of the Group.
To celebrate the 99th anniversary of the founding of the CCP and implement the inner-party incentive, care and assistance
mechanism, SZPRD Party Committee carried out “July 1st conversations” to express care to Party members in difficulties in the
morning of August 3. To help party members in need in an effective way, the Party Committee and Party branches of the Group
conducted an in-depth investigation on family life of party members and determined member families to visit.
(6) Social honors
In 2020, Housing and Urban-Rural Development of Shandong Province announced the list of outstanding enterprises in the property
service industry in Shandong Province. Shandong Shenguomao Real Estate Management of SZPRD was awarded the title of
“Provincial Model Enterprise for Civilization of the Property Management Service Industry”, and Zhang Ning, employee of the
Company, was awarded the title of “Provincial Service Star for Civilization of the Property Management Service Industry”.
On May 13, China Index Academy released the list of China’s Top 100 Property Management Service Enterprises 2020. ITC
Property Management of SZPRD was awarded the title of “China’s Top 100 Property Management Service Enterprises 2020” and
“China’s Excellent Enterprises in Industrial Park Service 2020” by virtue of continuous improvement of internal control, property
management quality and service products meeting customers’ needs. ITC Property Management ranked 27th in the top 100 property
management service companies. It is the fifth consecutive year that ITC Property Management won this honor.
At the 10th Grand Ceremony hosted by Shenzhen Real Estate Association on August 28, SZPRD was awarded the title of “enterprise
with brand value” in Shenzhen real estate development industry. Wang Hangjun, General Manager of the Group, was awarded the
title of “40 Outstanding Persons of Real Estate Industry in Shenzhen Special Economic Zone”.
2. Measures Taken for Targeted Poverty Alleviation
The Company didn’t take any targeted measures to help people lift themselves out of poverty during the Reporting Period, no
targeted poverty alleviation plan temporarily too.
3. Issues Related to Environmental Protection
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection
authorities.
□ Yes √ No
63
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
XIX Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
64
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares Shares
as as
dividen dividend
Percenta New Percentag
Shares d converte Other Subtotal Shares
ge (%) issues e (%)
convert d from
ed from capital
profit reserves
I. Restricted shares 1,931,280 0.33% 0 0 0 -32,974 -32,974 1,898,306 0.32%
1. Shares held by State 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by
0 0.00% 0 0 0 3,326 3,326 3,326 0.00%
state-owned legal person
3. Shares held by other
1,931,280 0.33% 0 0 0 -36,300 -36,300 1,894,980 0.32%
domestic investors
Among which: Shares
held by domestic legal 1,894,980 0.32% 0 0 0 0 0 1,894,980 0.32%
person
Shares held by domestic
36,300 0.01% 0 0 0 -36,300 -36,300 0 0.00%
natural person
4. Shares held by other
0 0.00% 0 0 0 0 0 0 0.00%
foreign investors
II. Unrestricted shares 594,047,812 99.67% 0 0 0 32,974 32,974 594,080,786 99.68%
1. RMB common shares 526,442,569 88.33% 0 0 0 32,974 32,974 526,475,543 88.34%
2. Domestically listed
67,605,243 11.34% 0 0 0 0 0 67,605,243 11.34%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 595,979,092 100.00% 0 0 0 0 0 595,979,092 100.00%
Reasons for share changes:
65
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
√ Applicable □ Not applicable
On 16 January 2020, the shareholder with restricted public shares of the Company Han Yihua repaid the advanced shares for share
reform of 3,326 to the Company’s controlling shareholder Shenzhen Investment Holdings and transferred the share ownership to the
latter. On 30 April 2020, all 32,974 restricted shares held by Han Yihua were desterilized and officially circulated in the market.
Approval of share changes:
√ Applicable □ Not applicable
Above-mentioned desterilization of non-tradable shares has been approved by Shenzhen Stock Exchange and completed the change
registration in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
√ Applicable □ Not applicable
On January 29, 2021, the Company disclosed the Announcement of Shenzhen Properties & Resources Development (Group) Ltd. on
the Transfer of Some State-owned Shares Held by Controlling Shareholders to Social Security Fund without Compensation. The
controlling shareholders of the Company decided to transfer 38037, 890 unrestricted common A shares of the Company to Shenzhen
State-owned Equity Management Co., Ltd. for the purpose of replenishing social security fund. On March 15, the transfer procedures
of state-owned shares without Compensation were completed by China Securities Depository and Clearing Corporation Limited.
After the transfer, Shenzhen Investment Holdings holds 301,414,637 shares of the Company, accounting for 50.575% of the total
share capital, and Shenzhen State-owned Equity Management Co., Ltd. holds 38,037,890 shares of the Company, accounting for
6.382% of the total share capital. Shenzhen State-owned Equity Management became the second largest shareholder of the Company.
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Number of Number of Number of Number of
Date of
Name of restricted increased released restricted Reason for
restriction
shareholders shares at the restricted restricted shares at the restriction
release
period-begin shares shares period-end
Share reform
Han Yihua 36,300 0 32,974 0 30 April 2020
commitments
Shenzhen Repayment
Investment 0 3,326 0 3,326 of advance -
Holdings Co., shares for
66
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Ltd. stock reform
Total 36,300 3,326 32,974 3,326 -- --
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable √ Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
Number of preferred
ordinary Number of shareholders
Number of shareholders at preferred with resumed
ordinary 52,587 the month-end 54,313 shareholders with 0 voting rights at 0
shareholders prior to the resumed voting the month-end
disclosure of this rights (if any) prior to the
Report disclosure of this
Report (if any)
5% or greater shareholders or top 10 shareholders
Sharehol Increase/dec Shares in pledge or frozen
Total shares Restricted
Name of Nature of ding rease in the Unrestricted
held at the shares
shareholder shareholder percenta Reporting shares held Status Shares
period-end held
ge Period
Shenzhen
State-owned
Investment 56.96% 339,452,527 -40,926,370 3,326 339,449,201
legal person
Holdings Co., Ltd.
China Orient Asset
State-owned
Management Co., 4.99% 29,798,300 29,798,300 0 29,798,300
legal person
Ltd.
67
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Hong Kong
Foreign legal
Securities Clearing 0.31% 1,874,823 1,874,823 0 1,874,823
person
Company Ltd.
Shenzhen
Domestic
Duty-Free
non-state-own
Commodity 0.29% 1,730,300 0 1,730,300 0
ed legal
Enterprises Co.,
person
Ltd.
Domestic
Duan Shaoteng 0.27% 1,618,565 550,865 0 1,618,565
natural person
Domestic
Yang Yaochu 0.25% 1,500,384 75,364 0 1,500,384
natural person
Domestic
Mai Furong 0.18% 1,049,200 -132,300 0 1,049,200
natural person
Foreign legal
UBS AG 0.17% 1,036,938 1,036,938 0 1,036,938
person
Domestic
He Simo 0.17% 1,011,750 249,100 0 1,011,750
natural person
China Construction
Bank-Wanjia
Selected Mixed Other 0.16% 982,300 982,300 0 982,300
Type Securities
Investment Fund
Strategic investor or general legal
person becoming a top-10 ordinary
N/A
shareholder due to rights issue (if
any)
The first largest shareholder, Shenzhen Investment Holdings Co., Ltd., is the actual controlling
Related or acting-in-concert parties
shareholder of the Company. And the Company does not know whether there are related parties
among the shareholders above
or acting-in-concert parties among the other 9 shareholders.
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
Shenzhen Investment Holdings
339,449,201 RMB common share 339,449,201
Co., Ltd.
China Orient Asset Management
29,798,300 RMB common share 29,798,300
Co., Ltd.
Hong Kong Securities Clearing
1,874,823 RMB common share 1,874,823
Company Ltd.
Duan Shaoteng 1,618,565 RMB common share 1,618,565
Yang Yaochu 1,500,384 Domestically listed 1,500,384
68
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
foreign share
Domestically listed
Mai Furong 1,049,200 1,049,200
foreign share
UBS AG 1,036,938 RMB common share 1,036,938
Domestically listed
He Simo 1,011,750 1,011,750
foreign share
China Construction Bank-Wanjia
Selected Mixed Type Securities 982,300 RMB common share 982,300
Investment Fund
Shenzhen Junhao Trading Co., Ltd. 831,200 RMB common share 831,200
Related or acting-in-concert parties among top 10 The first largest shareholder, Shenzhen Investment Holding Corporation,
unrestricted public shareholders, as well as between top is the actual controlling shareholder of the Company. And the Company
10 unrestricted public shareholders and top 10 does not know whether there are related parties or acting-in-concert
shareholders parties among the other 9 shareholders.
Top 10 ordinary shareholders involved in securities
N/A
margin trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling Date of Unified social credit
representative/pers Principal activity
shareholder establishment code
on in charge
To execute investments
and M&A on financial
equity such as banks,
securities, insurance,
funds and guarantees and
pseudo-banking equity;
Shenzhen Investment
Wang Yongjian 13 October 2004 914403007675664218 to engage in the property
Holdings Co., Ltd.
development and
operation business within
the scale of legally
acquire the land use right;
to execute investments
and services in strategic
69
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
emerging industry; to
execute the investment,
operating and
management of the
state-owned equities of
the wholly-owned,
controlling and
stock-participating
enterprises through the
methods such as the
restructuring integration,
capital operation and
assets disposal; other
business developed with
the authority from the
Municipal State-owned
Assets Supervision and
Administration
Commission (if the
activity needs approval as
required by state
regulations, it shall not be
operated until it is
approved).
Shenzhen Textile A (000045) holds 234.07 million shares, accounting for 46.10%; SPG A
(000029) holds 642.88 million shares, accounting for 63.55%; Shenzhen Universe A (000023)
holds 9.59 million shares, accounting for 6.91%; Ping’an (601318) holds 962.72 million shares,
accounting for 5.27%; Guosen Securities (002736) holds 3,223.11 million shares, accounting for
33.53%; Guotai Jun’an (601211) holds 609.43 million A-shares and 103.37 million H-shares,
Shareholdings of the
totally accounting for 8.00%; Telling Telecommunication (000829) holds 195.03 million shares,
controlling shareholder in
accounting for 18.89%; Shenzhen International (00152) holds 952.01 million shares, accounting
other listed companies at
for 43.39%; Beauty Star (002243) holds 604.82 million shares, accounting for 49.96%; Bay Area
home or abroad in this
Development (00737) holds 2,213.45 million shares, accounting for 71.83%; Infinova (002528)
Reporting Period
holds 315.83 million shares, accounting for 26.35%; Eternal Asia (002183) holds 388.45 million
shares, accounting for 18.30%; Shenzhen Energy (000027) holds 6.77 million shares, accounting
for 0.14%; Bank of Communications (601328) holds 9.52 million shares, accounting for 0.01%;
Techand (300197) holds 113.98 million shares, accounting for 4.84%; Vanke (02202) holds 77.27
million shares, accounting for 0.67%.
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: local institution for state-owned assets management
Type of the actual controller: legal person
Legal
Date of
Name of actual representative/ Unified social credit
establishme Principal activity
controller person in code
nt
charge
(I) Implementing and practicing state,
provincial and municipal laws and regulations
related to management on state-owned assets,
drafting local laws, regulations, and policies
about management on state-owned assets, and
organizing implementation activities upon
approvals. Intending to draft supervision
systems and methods about operational
state-owned assets, and organizing
implementation activities.
(II) On the basis of authorization from
municipal government, fulfilling duties of
investors according to laws and regulations,
and protecting the rights and interests of
investors for state-owned assets according to
Shenzhen Municipal laws
State-owned Assets (III) Taking charge of Party-building work for
Supervision and Yu Gang 1 July 2004 K31728067 enterprises in its supervision and organs
Administration entrusted
Commission (IV) Undertaking the supervision over
state-owned assets of municipal enterprises,
strengthening management on state-owned
assets, further perfecting the management
mechanism for state-owned assets with the
unification of power, obligation, and duties, as
well as the combination of managing assets,
people, and affairs
(V) Being responsible for hedging and
appreciation of the value of state-owned assets
of enterprises in its supervision, establishing
and perfecting the index system for hedging
and appreciation of the value of state-owned
assets, setting out assessment standards,
supervising on hedging and appreciation of the
value of state-owned assets of enterprises in its
71
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
supervision by statistics, audit, and check, and
urging enterprises in its supervision to fulfill
social duties
(VI) In charge of researching and preparing
the general planning for transformation and
development of state-owned enterprise in its
supervision, guiding and boosting
transformation and re-organization of
state-owned enterprises, prompting the
construction of modern enterprise system,
carrying forward operation of state-owned
capital, pushing the strategic adjustment on
state-owned economy layout and structure,
and making state-owned capital play the role
in significant industries and key fields
including national security, national economy
lifeline, etc.
(VII) Directing and propelling enterprises in
its supervision to perfect company governance
structure, intensifying construction of Board
and Supervision Committees of enterprises in
its supervision, and forming the governance
mechanism with specific duties, coordinating
operation, and effective counterbalance
(VIII) Assuming the management work of
income distribution for enterprises in its
supervision, and standardizing the income
distribution and position-related consumption
over people in charge of enterprises in its
supervision
(IX) In line with rules of municipal Party
committee, appointing and dismissing,
appraising, as well as, in accordance with
business performance, rewarding and
punishing people in charge of enterprises in its
supervision by applying legal procedures,
establishing the mechanism of selecting and
choosing candidates meeting the requirements
of socialist market economy system and
modern enterprise system, and perfecting the
incentive and control system for operators
(X) Being responsible for appointing or
recommending board directors, supervisors,
72
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
CFOs to enterprises in its supervision, and
auditing on economic duties of people in
charge of enterprises in its supervision
according to rules about management
authorization to people in charge of enterprises
(XI) In charge of preparing the draft of
budgets and final accounts of annual
state-owned capital of enterprises in its
supervision, including it to the government
budget system, organizing the execution upon
approvals, and collecting earnings of
state-owned capital handed in by enterprises in
its supervision
(XII) In charge of strategy research, policy
formulation, and guidance for transformation,
development, and asset management related to
collectively-owned enterprises
(XIII) Assuming other assignments assigned
by municipal government and superior
departments
Shareholdings of the actual controller in
Listed companies such as the Shenzhen Airport, YTP, Shenzhen Energy, Shenzhen
other listed companies at home or
Zhenye, Shenzhen Tagen and SDGI.
abroad in this Reporting Period
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
73
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
□ Applicable √ Not applicable
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
74
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
75
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.
76
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part IX Directors, Supervisors, Senior Management and Staff
I Change in Shareholdings of Directors, Supervisors and Senior Management
Increas Decreas
Beginn Other
Incum e in the e in the Ending
Ge ing increas
bent/ Ag Reporti Reporti shareho
Name Office title nde Start of tenure End of tenure shareh e/decre
Form e ng ng lding
r olding ase
er Period Period (share)
(share) (share)
(share) (share)
Liu Party Secretary and
Incum Ma
Shengxi Chairman of the 50 15 June 2018 14 June 2021 0 0 0 0 0
bent le
ang Board
Director, Deputy
Wang Incum Ma
Party Secretary, 55 15 June 2018 14 June 2021 0 0 0 0 0
Hangjun bent le
GM
Wei
Director, Deputy Incum Ma
Xiaodon 51 15 June 2018 14 June 2021 0 0 0 0 0
Party Secretary bent le
g
Fe
Shen Incum
Director and CFO mal 52 15 June 2018 14 June 2021 0 0 0 0 0
Xueying bent
e
Wang Incum Ma
Director 50 15 June 2018 14 June 2021 0 0 0 0 0
Ge bent le
Xie Incum Ma
Director 49 7 April 2020 14 June 2021 0 0 0 0 0
Chang bent le
Zhang Form Ma
Director 43 15 June 2018 6 April 2020 0 0 0 0 0
Shilei er le
Yuan
Independent Incum Ma
Hongcha 50 14 April 2017 14 June 2021 0 0 0 0 0
Director bent le
ng
Mei
Independent Incum Ma
Yonghon 57 15 June 2018 14 June 2021 0 0 0 0 0
Director bent le
g
Li
Independent Incum Ma
Qingyua 44 15 June 2018 14 June 2021 0 0 0 0 0
Director bent le
n
Dai Chairman of the Incum Ma 59 15 June 2018 14 June 2021 0 0 0 0 0
77
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Xianhua Supervisory bent le
Committee,
Secretary of
Committee for
Discipline
Inspection
Zhang Incum Ma
Supervisor 46 15 June 2018 14 June 2021 0 0 0 0 0
Manhua bent le
Li Incum Ma
Supervisor 39 15 June 2018 14 June 2021 0 0 0 0 0
Qinghua bent le
Employee
supervisor,
Fe
Wang executive director Incum
mal 51 15 June 2018 14 June 2021 0 0 0 0 0
Qiuping of ITC Technology bent
e
Park, Party
Secretary, GM
Employee
supervisor, Fe
Gu Incum
Director of mal 40 15 June 2018 14 June 2021 0 0 0 0 0
Weimin bent
Discipline e
Inspection Office
Member of the
Party Committee,
Fan Form Ma
Vice GM, General 56 15 June 2018 28 December 2020 0 0 0 0 0
Weiping er le
Counsel, Board
Secretary
Member of the
Chen Incum Ma
Party Committee, 52 28 December 2020 14 June 2021 0 0 0 0 0
Hongji bent le
Vice GM
Member of the Fe
Incum
Cai Lili Party Committee, mal 49 15 June 2018 14 June 2021 0 0 0 0 0
bent
Vice GM e
Member of the
Incum Ma
Li Peng Party Committee, 45 15 June 2018 14 June 2021 0 0 0 0 0
bent le
Vice GM
Member of the
Zhang Party Committee, Incum Ma
46 15 June 2018 14 June 2021 0 0 0 0 0
Gejian Vice GM, Board bent le
Secretary (Acting)
Total -- -- -- -- -- -- 0 0 0 0 0
78
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
II Change of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Reason for
Name Office title Type of change Date of change
change
Leaving for job
Zhang Shilei Director Leaving 7 April 2020
turnover
Leaving for job
Fan Weiping Vice GM, Board Secretary Leaving 28 December 2020
turnover
III Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and
senior management:
Members of the Board of Directors:
Mr. Liu Shengxiang, born in August 1971, is a now member of the Communist Party of China, professor-level senior engineer,
National Certified Architect (Level 1), and has obtained his Bachelor Degree, Master of Engineering, and MBA. In June 1994, he
joined Shenzhen Tagen Group Co., Ltd., and successively served as the deputy general manager, general manager, and general Party
branch secretary of Shenzhen Municipal Engineering Corp. and the deputy general manager of Shenzhen Tagen Group Co., Ltd. In
June 2013, he joined Shenzhen Road & Bridge Group as the executive director, Secretary of the Party Committee and general
manager. He starts to serve as the Secretary of the Party Committee and the Chairman (June 2018) of the Company & the Secretary
of the Party Committee, Executive director and GM (from August 2018 to May 2020) in Shenzhen Toukong Property Management
Co., Ltd. & the Secretary of the Party Committee and the Chairman of the Board (from March 2020 to now) in China Shenzhen
Foreign Trade (Group) Corp. Ltd. since September 2017. Mr. Liu Shengxiang was awarded the title of Outstanding Communist Party
Member of Shenzhen in 2001, and obtained Tien-yow Jeme Civil Engineering Prize in 2013, and May 1st Labor Medal of Shenzhen
in 2015, the Party representative of the 6th Party Congress in Shenzhen.
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Wei Xiaodong, born in January 1970, is a member of the Communist Party of China with the Bachelor’s Degree. Mr. Wei
Xiaodong ever worked in the municipal government department of Shenzhen for many years. In 2008, he began to work for
Shenzhen State-owned Assets Supervision and Administration Commission, and successively served as the deputy director and
director of Shenzhen SASAC Office. In June 2014, he served as the deputy director of Shenzhen SASAC Office, and now, he is the
Director, deputy secretary of the Party committee and Chairman of the Labor Union in the Company.
Ms. Shen Xueying, born in October 1969, Bachelor of Economics, is a senior accountant. Ms. Shen Xueying has been engaged in
the financial management of listed companies for more than 20 years. She joined the Finance Department of the Company in 1991
and successively served as the clerk and deputy manager of the financial management department of the Company. She was the
manager of the financial management department of the Company from 2007-2018 and now she is currently the Director and Chief
Financial Officer of the Company.
Mr. Wang Ge, born in October 1971, the member of the Communist Party of China, is now the senior engineer with the degree of
Bachelor of Engineering. Mr. Wang Ge has been engaged in the enterprise management for many years. He successively served as
79
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
the deputy director and director of the engineering department of Shenzhen Jian’an (Group) Co., Ltd., the manager and the deputy
secretary of the Party Branch of Jian’an Group Construction and Municipal Engineering Company, and the deputy general manager,
director, the deputy secretary of the Party Committee and the general manager of Jian’an Group. From March 2017 to present, he has
served as the Chief Engineer of Shenzhen Investment Holdings Co., Ltd.
Mr. Xie Chang, born in November 1971, CPC member, bachelor of engineering, senior engineer, economist, and political engineer.
He used to be the head of the Party and Mass Work Department, member of the Disciplinary Committee, and head of the Asset
Management Department of Shenzhen Jian'an (Group) Co., Ltd.; the deputy GM of Shenzhen Sibiono GeneTech Co., Ltd.; the head
of the operation management department, office director, secretary of the Board of Directors of Shenzhen Foreign Labor Service Co.,
Ltd.; office director of Shenzhen Talent Exchange Service Center Co., Ltd. He has served as the head of the comprehensive
management department of Shenzhen Investment Holdings Co., Ltd. from September 2017, and plans to be the director of the
Company from April 2020.
Mr. Yuan Hongchang, born in Mar. 1971, Chinese nationality without overseas residency, is a undergraduate and postgraduate of
Tsinghua University, EMBA of Central Europe. He holds professional qualification of registered land appraiser of China and
registered real estate broker. He joined in Shenzhen WorldUnion Properties Consultancy Incorporated in 2001, and acted as Secretary
of Board, vice GM of Director Group, director in Shenzhen WorldUnion Properties Consultancy Incorporated. Now he works as
Chairman of the Supervisory Committee of Shenzhen WorldUnion Properties Consultancy Incorporated. & GM of Shanghai
WorldUnion.
Mr. Mei Yonghong, born in October 1964, is the member of the Communist Party of China, and graduated from the Department of
Agriculture of Huazhong Agricultural University with the Degree of Bachelor of Agriculture. He successively served as the deputy
director of the General Office of Ministry of Science and Technology and the director of the information research office, the director
of the Policy, Regulations and System Reform Department of Ministry of Science and Technology and the mayor of Jining City in
Shandong Province. Now he serves as the Chairman of the Board of BGI Agricultural Group, Vice president of Country Garden
Group & CEO of Country Garden Holdings Co. Ltd.
Mr. Li Qingyuan, Born in 1977, is the member of the Communist Party of China with the Chinese nationality. After he obtained the
degree of the Doctor of Accountancy, he became a visiting scholar of Columbia University, and was successively supported by
Program for New Century Excellent Talents in University of Ministry of Education in 2012, 351 Program for Talents of Wuhan
University in 2011 and Outstanding Accounting Talents (Academic) of Ministry of Finance in 2008. Meanwhile, he also serves as
the member of the Academic Exchange Committee of Accounting Society of China, the editor member of China Journal of
Accounting Studies, the professional editor-in-chief of Luojia Management Review and the director of the Board of Journal of
Management Accounting Studies. As a professor (Level 4), he is nominated and elected into National Support Program for
Outstanding Young Talents, and now serves as the deputy dean of the department of economy and management and the director of
the department of accounting of Wuhan University.
Members of the Supervisory Committee:
Mr. Dai Xianhua, was born in April 1962, doctor degree, Party member of CPC. He worked as a lecturer in School of Business and
Economy of Zhongnan University of Economics and Law from 1986 to 1989. He took posts of editor of department of theory and
review, vice director, and editor-in-chief, in Shenzhen Economic Daily from 1992 to 1997; worked in Shenzhen State Assets
Administration Committee (hereinafter referred as “Shenzhen SAC”) as Vice Section Chief of Assets Management Department,
investigator of property right management Department, Vice Director, investigator of Office, and investigator of Appraisal and
Distribution Department from 1997 to 2012. Since 2012 he is the Chairman of the Supervisory Committee of the Company and is the
Party Secretary since 2020.
Mr. Zhang Manhua, born in Feb. 1975, master’s degree, member of the Communist Party of China, studied and worked in Central
South University from 1992 to 2004; Senior Manager in the Investment Center of Konka Group and concurrently worked as the
Board Secretary for Shenzhen Jvlong Optoelectronic Co., Ltd., and Investment Manager in Shenchao Technological Investment Co.,
Ltd. from 2004 to 2013; he worked as deputy director in the Strategy & Development Department in Shenzhen Investment Holding
80
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Co., Ltd from 2013 to 2018. He is the director in Law and Risks Management department of Shenzhen Investment Holdings Co., Ltd
since 2018.
Mr. Li Qinghua, born in April 1982, has obtained his Bachelor degree. From 2003 to 2013, he worked for DZX International
Appraisal Limited, and successively served as the project assistance, the project manager and the senior manager; from 2013 to 2017,
he served as the senior executive of the property right management and legal affairs department of Shenzhen Investment Holdings
Co., Ltd., and from 2017 till now, he serves as the deputy director of the audit department of Shenzhen Investment Holdings Co., Ltd.
Ms. Wang Qiuping, born in Jan. 1970, Bachelor degree, member of the Communist Party of China, is a senior economist. From
1992 to 2015, she ever took post in GM office, Plan and Finance Department, and Development Management. Now she is the
Executive director and GM of Shenzhen ITC Technology Park Property Management Co., Ltd.
Ms. Gu Weimin, Born in October 1981, is the member of the Communist Party of China with the Master’s Degree. From 2007 to
2010, he served as the audit assistance manager of KPMG Shenzhen; from 2011 till now, he has worked for the Company in the audit
department (the office of the board of supervisors), and is now the director of the Discipline Inspection Office.
Executive officers:
Mr. Wang Hangjun, born in Nov. 1966, member of Communist Party of China, is a senior auditor with a master degree of economy.
He ever took post of Deputy Chief of Audit Bureau of Nanshan District, Shenzhen; Vice Minister, Minister of Audit Department of
Shenzhen Investment and Management Company; Vice Minister, Minister of Supervision Department of Shenzhen Investment and
Management Company; Minister of Audit and Inspection Department of Shenzhen Investment Holding Co., Ltd. He has been Deputy
GM of the Company since Oct. 2007. Now he is the Director, deputy Party Secretary and GM of the Company.
Mr. Chen Hongji, born in May 1968, CPC member, postgraduate degree, and master of philosophy. He has worked in Shenzhen
Municipal People's Government for many years. He joined Shenzhen Construction Investment Holding Co., Ltd. in January 1998 and
successively served as section chief of development research department, deputy director of office, deputy director of Party
committee office and director of secretary office of board of directors. In October 2004, he joined Shenzhen Investment Holding Co.,
Ltd. and successively served as director of the party mass department and director of the board office. Since July 2012, he has been
the deputy GM of Shenzhen Expander. From December 2020, he has served as a member of the party committee and deputy GM of
the Company.
Ms. Cai Lili, Born in November 1972, is the member of the Communist Party of China, and has obtained the Master’s Degree in
Economics. Since 1995, he has worked in Shenzhen Tax Service, SAT, and ever served as the deputy chief of the taxation and
scientific and technological development department of Shenzhen Tax Service, SAT, and the member of the Party Organization and
the deputy director of Futian District Tax Bureau in Shenzhen. Currently, he is the member of the Party Committee, deputy general
manager and Chief Financial Officer.
Mr. Li Peng, Born in May 1976, is the member of the Communist Party of China, the Bachelor of Engineering and the intermediate
economist. Since July 1999, he has worked for the Company as the operation manager, and successively served as the deputy
manager of the Company’s development management department, the manager of the cost control department, and the secretary of
the Party branch and the deputy general manager of Shenzhen Huangcheng Real Estate Co., Ltd. Currently, he now is the member of
the Party Committee, and deputy general manager.
Mr. Zhang Gejian, born in September 1975, the member of the Communist Party of China, MBA, is an Accountant as well as
Auditor. He was engaged in internal auditing work in Audit Department of the Company since July 1997. He acted as the audit
manager, Supervisor of the Company and concurrently the Cost Control Manager. Now he is the member of the Party Committee, the
vice GM and Board Secretary (Acting) of the Company.
Ms. Shen Xueying, born in October 1969, the member of the Communist Party of China, Bachelor of Economics, is a senior
accountant. Ms. Shen Xueying has been engaged in the financial management of listed companies for more than 20 years. She joined
the Finance Department of the Company in 1991 and successively served as the clerk and deputy manager of the financial
management department of the Company. She has been the manager of the financial management department of the Company from
2007 to 2018, and now she is the Director, and Chief Financial Officer of the Company.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Remuneration or
Office held in the End of allowance from
Name Shareholding entity Start of tenure
shareholding entity tenure the shareholding
entity
Chief Engineer of
Shenzhen Investment
Wang Ge Shenzhen Investment 1 March 2017 Yes
Holdings Co., Ltd.
Holdings Co., Ltd.
Director of the
general management
Shenzhen Investment department of
Xie Chang 7 April 2020 Yes
Holdings Co., Ltd. Shenzhen Investment
Holdings Co., Ltd.
Director of the legal
and risk management
Shenzhen Investment
Zhang Manhua department of 1 January 2017 Yes
Holdings Co., Ltd.
Shenzhen Investment
Holdings Co., Ltd.
Deputy director of the
Shenzhen Investment audit department of
Li Qinghua 1 January 2017 Yes
Holdings Co., Ltd. Shenzhen Investment
Holdings Co., Ltd.
Offices held concurrently in other entities:
√Applicable □Not applicable
Remuneration or
End of
Name Other entity Office held in the entity Start of tenure allowance from
tenure
the entity
Chairman of the
Supervisory Committee of
Shenzhen WorldUnion
Yuan Shenzhen WorldUnion
Properties Consultancy 1 September 2013 Yes
Hongchang Properties Consultancy
Incorporated
Incorporated & GM of
Shanghai WorldUnion
Chairman of BGI
Agricultural Group, Vice
BGI Agricultural president of County
Mei Yonghong 1 September 2015 Yes
Group, County Garden Garden Group & CEO of
Country Garden Holdings
Co. Ltd.
Deputy dean of the
Li Qingyuan Wuhan University 1 December 2015 Yes
department of economy
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
and management and the
director of the department
of accounting of Wuhan
University.
Chairman of the
ShenZhen Special Supervisory Committee of
31
Economic Zone Real ShenZhen Special
Dai Xianhua 16 January 2020 Decemb No
Estate & Properties Economic Zone Real
er 2020
(Group) Co., Ltd. Estate & Properties
(Group) Co., Ltd.
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management:
During this Reporting Period, the board and the management of the Company signed statement of operation objectives responsibility
for 2020, conducted appraisal system integrating operation indicators, classification indicators with management objectives. After the
end of this Reporting Period, assessment was implemented by the board. Remuneration of senior executives was determined
according to “Management Method of Annual salary System of Directors, Supervisors and Senior Executives” and “Long-term
Incentive-and-Restraint Mechanism of ShenZhen Properties & Resources Development (Group) Ltd.” and need to be implemented
after the annual assessment of the board.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total before-tax
Any
Incumbent/For remuneration
Name Office title Gender Age remuneration
mer from the
from related party
Company
Liu
Party Secretary and Chairman of the
Shengxian Male 50 Incumbent 226.33 No
Board
g
Wang
Director, Deputy Party Secretary, GM Male 55 Incumbent 201.63 No
Hangjun
Wei
Director, Deputy Party Secretary Male 51 Incumbent 161.75 No
Xiaodong
Shen
Director and CFO Female 52 Incumbent 129.42 No
Xueying
Wang Ge Director Male 50 Incumbent 0 Yes
Xie Chang Director Male 49 Incumbent 0 Yes
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Zhang
Director Male 43 Former 0 Yes
Shilei
Yuan
Hongchan Independent Director Male 50 Incumbent 8 Yes
g
Mei
Independent Director Male 57 Incumbent 8 Yes
Yonghong
Li
Independent Director Male 44 Incumbent 8 Yes
Qingyuan
Chairman of the Supervisory Committee,
Dai
Secretary of Committee for Discipline Male 59 Incumbent 133.63 No
Xianhua
Inspection
Zhang
Supervisor Male 46 Incumbent 0 Yes
Manhua
Li
Supervisor Male 39 Incumbent 0 Yes
Qinghua
Employee supervisor, executive director
Wang
of ITC Technology Park, Party Secretary, Female 51 Incumbent 61.49 No
Qiuping
GM
Gu Employee supervisor, Director of
Female 40 Incumbent 57.15 No
Weimin Discipline Inspection Office
Fan Member of the Party Committee, Vice
Male 56 Former 161.93 No
Weiping GM, General Counsel, Board Secretary
Chen Member of the Party Committee, Vice
Male 52 Incumbent 0 Yes
Hongji GM
Member of the Party Committee, Vice
Cai Lili Female 49 Incumbent 173.33 No
GM
Member of the Party Committee, Vice
Li Peng Male 45 Incumbent 173.54 No
GM
Zhang Member of the Party Committee, Vice
Male 46 Incumbent 141.04 No
Gejian GM, Board Secretary (Acting)
Total -- -- -- -- 1,645.24 --
Equity incentives for directors, supervisors and senior management in the Reporting Period:
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent 101
Number of in-service employees of major subsidiaries 7,934
Total number of in-service employees 8,035
Total number of paid employees in the Reporting Period 8,035
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 5,557
Sales 214
Technical 1,380
Financial 244
Administrative 453
Managerial 187
Total 8,035
Educational backgrounds
Educational background Employees
College and Technical secondary school graduates and above 3,273
High school graduates and below 4,762
Total 8,035
2. Employee Remuneration Policy
In 2020, the Group stuck to remuneration system of industrialization within the Group and marketization in the industry, referred to
market remuneration level of the same industry, reformed bravely and promoted the income distribution system reform and
upgrading of the subordinate companies stably by learning from external experience as well as multiple demonstration, completed
remuneration performance management system, established incremental sharing mechanism, studied and revised organization
framework design, department function division, fixed position and fixed arrangement and remuneration performance of
subordinated Companies based on marketized principle.
3. Employee Training Plans
In 2020, the Group promoted the construction of learning type organization, formulated training plan according to operation
development needs, with the key contents including special courses of real estate, comprehensive management ability, team
expansion, position ability and quality improvement, and other courses, taking the method of combining internal training and external
85
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
training, organized all the employees to take part in training by grade as planned, improved the professional quality, business ability
and execution ability of staff team, enhanced the understanding and conscientiousness for governing the enterprise by law and acting
according to rules.
4. Labor Outsourcing
□ Applicable √ Not applicable
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part X Corporate Governance
I General Information of Corporate Governance
The internal control system of the Company is complete, accomplished and defined that in accordance with Company Law, Articles
of Association and other laws and regulations as well as requirements of regulatory documents. The convene of Shareholders’
General Meeting, the Board of Directors and Supervisory Board are strictly in accordance with relevant rules and regulations, all
directors and supervisors earnestly and diligently commit their responsibilities. Corporate structure of the Company is complete and
the operation of the Company is standardized.
During the reporting period, the Company revised the Articles of Association, Rules of Procedures for General Meeting of
Shareholders, Rules of Procedures for the Board of Directors, Rules of Procedures for the Board of Supervisors and regulations on
the work of special committees under the Board of Directors in accordance with the Company Law, Securities Law, Listing Rules
and other relevant provisions based on the actual conditions of the Company to establish and improve internal management and
control system.
Abiding by the principle of being scientific, simplified and high efficient, the Company adjusted the its setting of departments and
institutions, currently set up Party-mass office, discipline inspection and supervision office (the audit department, office of the
supervisory committee, office of board of directors, comprehensive office (procedure and information center, letters and visits office),
HR department (training center), financial management department (settlement center), investment development department,
operation and management department, design management department (technological center), cost contract department, engineering
management department (office of security committee), office of industrial operation. Each department performs its own functions,
and strictly carries out work according to internal control system, to ensure the normal and efficient operation of the Company.
The Company has always attached great importance on standardizing insider information management, formulated and completed
Management Provisions on Information Disclosure, Work Procedures of Annual Report of Auditing Committee, Accountability
System of Major Errors in Information Disclosure of Annual Report, Work System of Annual Report, Insider Management System of
Insider Information, Management System of Investor Relationship, and other internal control system, to ensure the authenticity,
accuracy and completeness of Company information disclosure. During the reporting period, the Company strictly carried out
information disclosure, corporate governance conference organization, and other work according to requirements of securities
supervision, disclosed information timely, accurately and completely, without any accidents which violate relevant internal control
system of information disclosure.
At the end of the reporting period, the Company carried out quality self-examination of listed companies according to the
requirements of Shenzhen Securities Regulatory Bureau to find out deficiencies in the operation of the Company and formulate
rectification plan to improve company governance and standard operation.
Indicate by tick market whether there is any material incompliance with the regulatory documents issued by the CSRC governing the
governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder in Business, Personnel,
Asset, Organization and Financial Affairs
The Company was independent from the controlling shareholder in business, personnel, assets, organization and finance to realize
that independent personnel, independent finance, complete assets, independent organization and independent business.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
1. In aspect of business: The Company was independent from the controlling shareholder with independent and complete business
and independent operation capability. There was no business which was same or competitive with the controlling shareholder.
2. In aspect of personnel: The Company was complete independent from the controlling shareholder in terms of labor and personnel,
management on remuneration. Personnel of the Company are independent, all ones signed labor contract with the Company. The
Company was independent from the shareholders or other related parties in personnel management, social security, salary etc.
3. In aspect of asset: The Company’s assets were complete and independent, the property relationship was clear. There was no capital
occupation by controlling shareholder, and assets of the Company were completely independent from controlling shareholder.
4. In aspect of organization: The Company’s organization was independent, and the Company implemented rules and regulations as
well as responsibilities for all departments, formed independent responsibilities and rights, scientific and rational internal control
system.
5. In aspect of finance: The Company’s finance was independent with independent finance department. The Company established the
independent finance settling system and financial management system, had its own finance account and paid the tax in line with laws,
run finance decision-making independently.
The controlling shareholder of the Company performed normatively with no conduct that intervened with the operation
decision-making and operation activities directly or indirectly over the shareholders’ general meeting, however, the controlling
shareholder could influence on the significant decision-making through the shares holding.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Date of the meeting Disclosure date
participation ratio information
Announcement on
The 1st Resolutions of the 1st
Extraordinary
Extraordinary Extraordinary
General 63.90% 15 January 2020 16 January 2020
General General Meeting of
Meeting
Meeting of 2020 2020 (No.: 2020-3)
on Cninfo
Announcement on
The 2019 Resolutions of the
Annual General
Annual General 63.90% 28 April 2020 29 April 2020 2019 Annual General
Meeting
Meeting Meeting (No.:
2020-21) on Cninfo
Announcement on
The 2nd
Extraordinary Resolutions of the
Extraordinary
General 62.91% 12 October 2020 13 October 2020 2nd Extraordinary
General
Meeting General Meeting of
Meeting of 2020
2020 (No.: 2020-47)
88
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
on Cninfo
2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
Attendance of independent directors at board meetings and general meetings
The
Total
independent
number of Board Board
Board director
board Board meetings meetings the
meetings failed to General
Independent meetings the meetings attended by independent
attended attend two meetings
director independent attended on way of director
through a consecutive attended
director was site telecommuni failed to
proxy board
eligible to cation attend
meetings
attend
(yes/no)
Yuan
9 0 9 0 0 No 3
Hongchang
Mei Yonghong 9 0 9 0 0 No 3
Li Qingyuan 9 0 9 0 0 No 3
Why any independent director failed to attend two consecutive board meetings:
Not applicable
2. Objections Raised by Independent Directors on Matters of the Company
Indicate by tick mark whether any independent directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Independent Directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the Company:
With attitude of credibility and diligence to the Company and all shareholders, independent directors was diligent and responsible,
reviewed all resolutions, and in line with their professional knowledge and capability, made independent, objective and fair judgment
away from influence from the Company and principal shareholders of the Company. Also, independent directors expressed
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
independent, objective and fair opinion on relevant events, which made practical efforts to safeguard interests of the Company and
minority shareholders.
VI Performance of Duty by Specialized Committees under the Board in the Reporting Period
The four special committees under the 9th board—the Strategic Development and Investment Decision-Making Committee, the
Nomination Committee, the Remuneration and Appraisal Committee and the Audit Committee—according to “Governance Principle
of listed Company”, “Articles of Association”, “and Rules of Procedure of the Board of Directors” and implementation rules of
special committee, earnestly performed their duties.
During this Reporting Period, strategic development and investment decision-making committee paid attention to authorization of the
board to project development and financing, kept good contact with the management and had a good knowledge of matters within
their power.
The Nomination Committee communicated and exchanged with relevant departments of the Company on the demand for directors
and senior executives to adapt to the development and changes of the Company’s business pattern and asset scale, and held a meeting
to review the qualification of Mr. Chen Hongji to act as a Senior Manager and offered opinions.
The Compensation and Assessment Committee communicated with the Management and held four meetings to respectively review
the performance appraisal of company organizations in 2019, the Long-term Incentive and Restraint Plan, executive appraisal method
and executive appraisal results for 2019.
The Audit Committee held five meetings to listen to the audit opinions on the Company’s audit work report for 2019 and audit work
plan for 2020, offer audit opinions on the re-employment of accounting firm, internal audit work in the first half of 2020 and internal
audit work in the third quarter of 2020, and review the comprehensive budget for 2021 (draft).
VII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.
VIII Appraisal of and Incentive for Senior Management
During the reporting period, the Board of Directors signed the Letter of Responsibility for Business Objectives of 2020 with the
Management of the Company referring to the Measures for Assessment of Senior Management by the Board of Directors of SZPRD
and Measures for Performance Assessment of Deputy General Manager of SZPRD, and adopted the assessment method integrating
performance assessment with bonus item for assessment at the end of the year. The salary system of the Company’s senior managers
is based on the Management Measures for Annual Salary of Directors, Supervisors and Senior Managers, which is implemented after
annual assessment of the Board of Directors. The first long-term incentive and restraint plan of the Group has been implemented,
which is conducive to better motivate senior executives to achieve good performance.
IX Internal Control
1. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
2. Internal Control Self-Evaluation Report
Disclosure date of the internal control
31 March 2021
self-evaluation report
Index to the disclosed internal control
http://www.cninfo.com.cn
self-evaluation report
Evaluated entities’ combined assets as %
99.00%
of consolidated total assets
Evaluated entities’ combined operating
revenue as % of consolidated operating 99.00%
revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over Weaknesses in internal control not
Type
financial reporting related to financial reporting
Indications of the serious defect of the
Major defects include: 1. Serious
financial report were including: 1. the
violation of national laws and
control environment is invalid;
regulations leading to major litigation,
2. Commitment of major fraud by
or investigation of regulatory agencies,
directors, supervisors or senior
ordered suspension of business for
management of the Company;
rectification, investigation for criminal
3. the audit institution discovered the responsibility or replacement of senior
current financial report had great defect managers;
while the internal control of the Company
2. Abnormal major changes of
didn’t found out during the operating
directors, supervisors, senior
process;
management and main technical
4. Correction of major misstatement in personnel of the Company;
financial reports reported or disclosed by
3. Major decision-making errors due to
the Company;
Nature standard lack of internal democratic
5. the supervision of the Company’s Audit decision-making procedures or
Committee and the internal audit unscientific procedures;
department on the internal control was
4. Serious loss of core management or
invalid.
technical personnel;
Indications of the important defect of the
5. Vicious negative news frequently
financial report were including: 1. didn’t
appeared in the media, involving a
abide by the universally acknowledged
wide range and negative existing
accounting standard to choose and apply
influence;
the accounting policies; 2. had not built up
6. Significant impact on the
the anti-fraud process and the control
Company’s production and operation
measures; 3. had not built up the
due to lack of system control or system
corresponding control mechanism or had
failure of important business;
not executed the corresponding
7. Major defects of internal control
compensating control for the accounting
91
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
treatment which was unconventional or evaluation to be rectified;
with special transaction; 4. the control 8. Any other negative circumstances
during the process of the financial report at generating significant impact on the
the period-end existed one or multiple Company.
defects that could not guarantee the Significant defects include: 1.
compile of the financial report reach the Incomplete democratic
goal of being real and complete; decision-making process that affects
5. Important or general defects of internal production and operation of the
control to be rectified. Company;
Common defect: refers to the other control 2. Violation of internal rules and
defect except for the above great defect regulations leading to important losses;
and significant defect. 3. Exposure of negative news by the
media leading to significant impact on
the Company;
4. Important defects of important
business regulations or system to be
rectified;
5. Any other negative case leading to
great impact on the Company.
Common defects: any other control
defect except for the above major and
significant defects.
Serious defect: potential misstatement of Major defects: direct property loss ≥
the operating income≥1% of the operating 1.00% of net assets of the previous
income of the consolidated statements of year;
the Company, potential misstatement of Significant defects: 0.5% of net assets
the total assets amount≥0.40% of the total of the previous year ≤ direct property
assets of the consolidated statements of the loss < 1.00% of net assets of the
Company, potential misstatement of the previous year;
net assets≥1.00% of the net assets of the Common defects: direct property loss
consolidated statements of the Company. < 0.5% of net assets of the previous
Important defect: 0.50% of the operating year.
Quantitative standard income of the consolidated statements of
the Company≤misstatement<1% of the
operating income of the consolidated
statements of the Company; 0.2% of the
total assets of the consolidated statements
of the Company ≤misstatement<0.4% of
the total assets of the consolidated
statements of the Company, 0.5% of the
net assets of the consolidated statements of
the Company ≤misstatement<1% of the
net assets of the consolidated statements of
92
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
the Company. Common defect:
misstatement of the operating
income<0.5% of the operating income of
the consolidated statements of the
Company, misstatement of the total assets
amount<0.2% of the total assets amount of
the consolidated statements of the
Company, misstatement of the net
assets<0.5% of the net assets of the
consolidated statements of the Company.
Number of material weaknesses in
0
internal control over financial reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in
0
internal control over financial reporting
Number of serious weaknesses in
internal control not related to financial 0
reporting
X Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that Shenzhen Properties & Resources Development (Group) Ltd. maintained efficient internal control of financial
reports in all significant aspects according to “Basic Standards of Corporate Internal Control” and relevant regulations.
Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 31 March 2021
Index to such report disclosed http://www.cninfo.com.cn
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal
control not related to financial None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.
93
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
√ Yes □ No
94
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part XI Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of this
Report’s approval or were due but could not be redeemed in full?
No.
95
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part XII Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 30 March 2021
Name of the independent auditor Baker Tilly China Certified Public Accountants (LLP)
Reference number of Audit Report Baker Tilly YZ[2021]No.14873
Name of the certified public accountants Li Ming, Chen Zihan
Text of the Auditor’s Report
All shareholders of Shenzhen Properties & Resources Development (Group) Ltd.:
1. Opinion
We have audited the financial statements of Shenzhen Properties & Resources Development (Group) Ltd. (the “Company”), which
comprise the consolidated and parent company balance sheets as of 31 December 2020, the consolidated and parent company
statements of income, cash flows and changes in shareholders’ equity for the year then ended, as well as the notes to the financial
statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated and parent company
financial position of the Company at 31 December 2020, and the consolidated and parent company operating results and cash flows
for the year then ended, in conformity with the Chinese Accounting Standards (CAS).
2. Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
3. Key audit items
Key audit items are the items that are considered most important for the audit of the current financial statements based on our
professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation of
audit opinions. We do not comment on these items separately.
Key audit item Audit response
1. Recognition and measurement of revenue from real estate development and sales
SZPRD achieved a revenue of RMB2.792 billion from realOur audit procedures for this key audit issue include:
estate development projects in 2020, accounting for 68.03% ofUnderstanding and sampling key control measures related to
the total operating revenue. SZPRD confirms revenue from realproperty sales business to evaluate the effectiveness of
estate development projects when all the following conditionsimplementation of control procedures.
are met: (1) Real estate products of sales contracts underObtaining and reviewing completion acceptance documents of
development are completed and accepted; (2) Irreversible salesprojects; reviewing property sales contracts and verifying the
96
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
contracts are signed and buyers’ payment certificates areauthenticity of revenue from property sales recognized in this
received; (3) Notice of property acceptance is issued. year; checking original collection certificates or certificates of
The recognition and measurement of revenue from real estatebank mortgage procedures to determine whether full payment
business has a significant impact on the operating results ofamount is received; reviewing admission notice or other
SZPRD, which may be inaccurately measured or recognized insupporting documents on delivery of properties to evaluate
improper accounting period. Therefore, we regard thewhether revenue from property sales meets the conditions for
recognition and measurement of real estate development andrevenue recognition as stipulated by the Company’s accounting
sales revenue as key audit issues. policy.
For accounting policies and details of revenue from real estateObtaining and reviewing supporting documents for property
development and sales, please refer to Note III, (26), VI, (32) todelivery before and after the balance sheet date to evaluate
the financial statement. whether revenue from property sales is recorded in proper
accounting period.
2. Provision of increment tax on land value
The Company shall pay increment tax on land value at the rateOur audit procedures for this key audit issue include:
of 30-60% of extra progressive tax rate of increment amount onObtaining calculation data of increment tax on land value of
land value for real estate sales and development. At the end ofmain real estate development projects to review and calculate
each financial reporting period, the Management shall estimatethe accuracy of amount of increment tax on land value accrued
the provision amount of increment tax on land value. When by the Company in this year.
making estimation judgment, main factors to be included in Combining the audit revenue from real estate sales to review the
consideration shall include the provisions and explanations ofrationality of estimated amount of revenue from real estate sales
relevant tax laws and regulations, the amount of estimated made by the Management in the calculation of increment tax on
revenue from sale of real estate minus estimated deductible landland value.
cost, real estate development cost, interest expense andCombining inventory audit to review the accuracy of land cost,
development cost, etc. The actual amount in final settlement real estate development cost, interest expense and development
payable by SZPRD for increment tax on land value may becost deducted by the Management in the calculation of
different from the estimated amount. increment tax on land value.
As the importance of provision of increment tax on land value
on the profit and loss of real estate enterprises, and Management
includes the understanding of relevant tax laws and regulations
and actual practices in consideration for estimation judgment,
we determine the provision of increment tax on land value of
SZPRD as a key audit issue.
4. Other Information
The Company’s management (hereinafter referred to as the Management”) is responsible for the other information. The other
information comprises all of the information included in the Company’s 2020 Annual Report other than the financial statements and
our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
5. Responsibilities of Management and Those Charged with Governance for Financial Statements
The Management is responsible for the preparation of the financial statements that give a fair view in accordance with CAS, and for
designing, implementing and maintaining such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance (hereinafter referred to as the “Governance”) are responsible for overseeing the Company’s financial
reporting process.
6. Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by CAS to draw
users’ attention in our auditor’s report to the related disclosures in the financial statements or. if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the
Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit
findings, including any noteworthy deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
98
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Baker Tilly YZ[2021]No.14873
BeijingChina
30 March 2021
Chinese CPA
(Engagement Partner): Li Ming
Chinese CPA: Chen Zihan
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
31 December 2020
Unit: RMB
Item 31 December 2020 31 December 2019
Current assets:
Monetary assets 4,206,266,629.32 3,297,890,935.91
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 187,697,631.47 216,923,663.25
Accounts receivable financing
Prepayments 50,543,422.85 69,546,774.17
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 789,050,350.51 917,981,165.74
99
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 5,312,489,258.20 4,913,510,876.66
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 48,991,965.92 42,500,585.94
Total current assets 10,595,039,258.27 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 45,710,220.79 45,076,122.72
Investments in other equity
1,044,905.12 1,580,475.86
instruments
Other non-current financial assets
Investment property 484,738,506.83 503,323,428.61
Fixed assets 116,233,936.04 93,557,782.83
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 482,049.51 700,369.66
Development costs
Goodwill
Long-term prepaid expense 11,862,716.14 7,034,472.79
Deferred income tax assets 950,681,245.50 658,153,122.73
Other non-current assets 1,564,074.34 4,711,963.66
Total non-current assets 1,612,317,654.27 1,314,137,738.86
Total assets 12,207,356,912.54 10,772,491,740.53
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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 468,269,685.65 577,689,139.10
Advances from customers 473,274.48 728,186,032.63
Contract liabilities 666,893,629.72
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 177,190,197.36 143,493,868.80
Taxes payable 2,487,212,979.37 2,598,283,291.68
Other payables 847,142,613.09 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
36,722,824.88 3,921,032.24
liabilities
Other current liabilities 43,354,691.51
Total current liabilities 4,727,259,896.06 5,200,678,293.30
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3,587,800,000.00 2,193,833,000.00
Bonds payable
101
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions 2,396,947.00 2,903,327.87
Deferred income 341,259.63
Deferred income tax liabilities 262.20 3,821.08
Other non-current liabilities 108,778,327.45 108,164,737.46
Total non-current liabilities 3,698,975,536.65 2,305,246,146.04
Total liabilities 8,426,235,432.71 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 -6,749,589.41 -2,698,371.44
Specific reserve
Surplus reserves 19,205,979.63 17,060,448.05
General reserve
Retained earnings 3,038,993,912.43 2,457,119,795.39
Total equity attributable to owners of
3,727,917,440.03 3,147,949,009.38
the Company as the parent
Non-controlling interests 53,204,039.80 118,618,291.81
Total owners’ equity 3,781,121,479.83 3,266,567,301.19
Total liabilities and owners’ equity 12,207,356,912.54 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
102
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Item 31 December 2020 31 December 2019
Current assets:
Monetary assets 3,216,703,036.69 2,455,001,204.14
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 2,624,500.42 755,932.14
Accounts receivable financing
Prepayments 496,729.09
Other receivables 145,325,697.20 501,082,153.81
Including: Interest receivable
Dividends receivable
Inventories 653,885,107.24 624,499,208.02
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 496,729.09 1,113,935.28
Total current assets 4,019,035,070.64 3,582,949,162.48
Non-current assets:
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 1,071,176,101.18 1,070,542,003.11
Investments in other equity
1,275,405.12 1,810,975.86
instruments
Other non-current financial assets
Investment property 303,827,356.62 312,638,785.76
Fixed assets 51,091,963.72 26,337,488.29
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
103
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Development costs
Goodwill
Long-term prepaid expense 432,440.01 605,416.29
Deferred income tax assets 252,331,518.26 343,958,821.07
Other non-current assets 1,197,407,234.55 1,613,657,031.92
Total non-current assets 2,877,542,019.46 3,369,550,522.30
Total assets 6,896,577,090.10 6,952,499,684.78
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable
Accounts payable 55,887,947.36 64,503,938.37
Advances from customers 320,469.53
Contract liabilities
Employee benefits payable 50,710,148.02 36,735,205.68
Taxes payable 3,736,082.67 1,322,751,671.37
Other payables 3,971,988,862.11 3,146,684,268.89
Including: Interest payable
Dividends payable 29,642.40 29,642.40
Liabilities directly associated with
assets held for sale
Current portion of non-current
31,573,154.86
liabilities
Other current liabilities
Total current liabilities 4,113,896,195.02 4,570,995,553.84
Non-current liabilities:
Long-term borrowings 588,200,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
104
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities 40,000,000.00 40,000,000.00
Total non-current liabilities 628,200,000.00 40,000,000.00
Total liabilities 4,742,096,195.02 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 income -2,545,451.19 -2,051,268.24
Specific reserve
Surplus reserves 19,205,979.63 16,403,637.61
Retained earnings 1,487,964,894.53 1,677,296,289.46
Total owners’ equity 2,154,480,895.08 2,341,504,130.94
Total liabilities and owners’ equity 6,896,577,090.10 6,952,499,684.78
3. Consolidated Income Statement
Unit: RMB
Item 2020 2019
1. Revenue 4,104,374,646.02 3,961,669,942.44
Including: Operating revenue 4,104,374,646.02 3,961,669,942.44
Interest income
Insurance premium income
Handling charge and commission
income
2. Costs and expenses 3,094,700,417.31 2,966,054,505.18
Including: Cost of sales 1,386,710,239.54 1,433,615,885.43
Interest expense
Handling charge and commission
expense
Surrenders
105
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Net insurance claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 1,313,348,228.48 1,081,511,281.04
Selling expense 44,753,247.18 111,553,952.50
Administrative expense 238,625,143.31 204,654,552.64
R&D expense
Finance costs 111,263,558.80 134,718,833.57
Including: Interest expense 182,930,469.55 194,545,794.14
Interest
72,357,101.87 61,860,403.42
income
Add: Other income 12,770,810.75 5,150,377.43
Return on investment (“-” for
634,098.07 5,076,839.48
loss)
Including: Share of profit or loss of
634,098.07 5,076,839.48
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 loss) 4,623,356.81 -18,701,016.31
Asset impairment loss (“-” for loss) -51,185.46 -1,234,250.84
Asset disposal income (“-” for loss) 2,311.70
3. Operating profit (“-” for loss) 1,027,653,620.58 985,907,387.02
Add: Non-operating income 11,697,661.23 23,732,348.28
Less: Non-operating expense 5,244,329.50 4,793,503.85
4. Profit before tax (“-” for loss) 1,034,106,952.31 1,004,846,231.45
Less: Income tax expense 302,769,082.58 262,716,180.91
5. Net profit (“-” for net loss) 731,337,869.73 742,130,050.54
5.1 By operating continuity
5.1.1 Net profit from continuing 731,337,869.73 742,061,273.73
106
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
operations (“-” for net loss)
5.1.2 Net profit from discontinued
68,776.81
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 798,572,121.74 817,805,780.12
parent
5.2.1 Net profit attributable to
-67,234,252.01 -75,675,729.58
non-controlling interests
6. Other comprehensive income, net of
-4,051,217.97 -912,189.75
tax
Attributable to owners of the Company
-4,051,217.97 -912,189.75
as the parent
6.1 Items that will not be reclassified to
-494,182.95 -2,051,268.24
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
-494,182.95 -2,051,268.24
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
-3,557,035.02 1,139,078.49
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 -3,557,035.02 1,139,078.49
currency-denominated financial
107
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
statements
6.2.7 Other
Attributable to non-controlling
interests
7. Total comprehensive income 727,286,651.76 741,217,860.79
Attributable to owners of the Company
794,520,903.77 816,893,590.37
as the parent
Attributable to non-controlling
-67,234,252.01 -75,675,729.58
interests
8. Earnings per share
8.1 Basic earnings per share 1.3399 1.3722
8.2 Diluted earnings per share 1.3399 1.3722
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB118,680,871.93.
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 2020 2019
1. Operating revenue 64,151,369.60 393,330,909.38
Less: Cost of sales 45,749,528.01 61,706,002.23
Taxes and surcharges 8,552,661.46 152,745,770.45
Selling expense 2,287,301.10 13,078,323.49
Administrative expense 98,340,542.43 77,139,133.61
R&D expense
Finance costs -43,492,708.54 -43,712,067.17
Including: Interest expense 15,950,523.75
Interest income 65,751,243.49 42,193,217.20
Add: Other income 253,884.96 85,442.53
Return on investment (“-” for
116,246,519.46 86,697,646.64
loss)
Including: Share of profit or loss of
634,098.07 5,076,839.48
joint ventures and associates
Income from the derecognition of
financial assets at amortized cost (“-”
108
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss)
Credit impairment loss (“-” for loss) -116,544.34 811,051.45
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) 69,097,905.22 219,967,887.39
Add: Non-operating income 9,989,210.85 359,518.50
Less: Non-operating expense 374,965.45 1,292,469.73
3. Profit before tax (“-” for loss) 78,712,150.62 219,034,936.16
Less: Income tax expense 50,688,730.41 54,998,560.04
4. Net profit (“-” for net loss) 28,023,420.21 164,036,376.12
4.1 Net profit from continuing
28,023,420.21 164,036,376.12
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net
-494,182.95 -2,051,268.24
of tax
5.1 Items that will not be reclassified
-494,182.95 -2,051,268.24
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
investments in other equity -494,182.95 -2,051,268.24
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
109
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
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 27,529,237.26 161,985,107.88
7. Earnings per share
7.1 Basic earnings per share 0.0470 0.2752
7.2 Diluted earnings per share 0.0470 0.2752
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities and
4,390,400,364.60 4,536,821,506.05
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
110
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
transactions
Net proceeds from acting trading of
securities
Tax rebates 17,586,334.90
Cash generated from other operating
401,974,306.32 727,613,534.88
activities
Subtotal of cash generated from operating
4,809,961,005.82 5,264,435,040.93
activities
Payments for commodities and services 1,398,688,587.24 2,805,353,837.83
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 660,768,525.22 635,119,649.94
Taxes paid 2,200,056,926.04 698,846,233.34
Cash used in other operating activities 164,949,185.20 185,325,753.86
Subtotal of cash used in operating activities 4,424,463,223.70 4,324,645,474.97
Net cash generated from/used in operating
385,497,782.12 939,789,565.96
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 136,131.48 357,613.40
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 investing
136,131.48 357,613.40
activities
Payments for the acquisition of fixed assets,
48,482,853.70 62,167,787.99
intangible assets and other long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for the acquisition of
969,530,215.99
subsidiaries and other business units
111
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Cash used in other investing activities
Subtotal of cash used in investing activities 48,482,853.70 1,031,698,003.98
Net cash generated from/used in investing
-48,346,722.22 -1,031,340,390.58
activities
3. Cash flows from financing activities:
Capital contributions received 1,820,000.00 3,220,000.00
Including: Capital contributions by
1,820,000.00 3,220,000.00
non-controlling interests to subsidiaries
Borrowings raised 2,175,000,000.00 2,193,000,000.00
Cash generated from other financing
40,000,000.00
activities
Subtotal of cash generated from financing
2,176,820,000.00 2,236,220,000.00
activities
Repayment of borrowings 750,133,000.00 2,193,067,000.00
Interest and dividends paid 411,945,003.98 423,796,908.60
Including: Dividends paid by subsidiaries to
non-controlling interests
Cash used in other financing activities 465,807,569.82 123,502,169.51
Subtotal of cash used in financing activities 1,627,885,573.80 2,740,366,078.11
Net cash generated from/used in financing
548,934,426.20 -504,146,078.11
activities
4. Effect of foreign exchange rates changes
-3,275,807.74 14,878.31
on cash and cash equivalents
5. Net increase in cash and cash equivalents 882,809,678.36 -595,682,024.42
Add: Cash and cash equivalents, beginning
3,285,345,233.47 3,881,027,257.89
of the period
6. Cash and cash equivalents, end of the
4,168,154,911.83 3,285,345,233.47
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities and
64,857,663.10 338,520,399.21
rendering of services
Tax rebates
Cash generated from other operating
2,041,809,928.38 3,301,015,120.23
activities
Subtotal of cash generated from operating
2,106,667,591.48 3,639,535,519.44
activities
Payments for commodities and services 67,846,809.36 617,310,657.83
Cash paid to and for employees 50,551,468.21 47,049,144.09
112
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Taxes paid 1,296,096,715.75 342,530,888.32
Cash used in other operating activities 377,760,390.30 45,901,384.05
Subtotal of cash used in operating activities 1,792,255,383.62 1,052,792,074.29
Net cash generated from/used in operating
314,412,207.86 2,586,743,445.15
activities
2. Cash flows from investing activities:
Proceeds from disinvestment 565,000,000.00 100,000,000.00
Return on investment 42,319,444.45
Net proceeds from the disposal of fixed
assets, intangible assets and other 7,398.06 690.00
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 investing
565,007,398.06 142,320,134.45
activities
Payments for the acquisition of fixed assets,
33,629,541.56 25,563,107.56
intangible assets and other long-lived assets
Payments for investments 495,807,569.82 2,634,574,943.74
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 529,437,111.38 2,660,138,051.30
Net cash generated from/used in investing
35,570,286.68 -2,517,817,916.85
activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 619,000,000.00
Cash generated from other financing
40,000,000.00
activities
Subtotal of cash generated from financing
619,000,000.00 40,000,000.00
activities
Repayment of borrowings
Interest and dividends paid 229,729,842.01 178,793,727.60
Cash used in other financing activities
Subtotal of cash used in financing activities 229,729,842.01 178,793,727.60
Net cash generated from/used in financing
389,270,157.99 -138,793,727.60
activities
4. Effect of foreign exchange rates changes
-28,110.51 14,878.31
on cash and cash equivalents
5. Net increase in cash and cash equivalents 739,224,542.02 -69,853,320.99
Add: Cash and cash equivalents, beginning 2,450,935,673.17 2,520,788,994.16
113
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
of the period
6. Cash and cash equivalents, end of the
3,190,160,215.19 2,450,935,673.17
period
7. Consolidated Statements of Changes in Owners’ Equity
2020
Unit: RMB
2020
Equity attributable to owners of the Company as the parent
Other equity Othe
Non Tota
instruments Less r
-con l
Item Sha Capi : com Spec Surp Gen Reta
trolli own
Pre Per
re tal Trea preh ific lus eral ined Othe Subt
ng ers’
fer pet
cap Ot reser sury ensi reser reser reser earni r otal
inter equit
red ual
ital her ves stoc ve ve ves ve ngs
ests y
sha bo
k inco
res nds
me
595
80,4 -2,6 17,0 2,45 3,14 118, 3,26
1. Balance as ,97
88,0 98,3 60,4 7,11 7,94 618, 6,56
at the end of 9,0
45.3 71.4 48.0 9,79 9,00 291. 7,30
the prior year 92.
8 4 5 5.39 9.38 81 1.19
00
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
2. Balance as 595 80,4 -2,6 17,0 2,45 3,14 118, 3,26
at the ,97 88,0 98,3 60,4 7,11 7,94 618, 6,56
beginning of 9,0 45.3 71.4 48.0 9,79 9,00 291. 7,30
114
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
the year 92. 8 4 5 5.39 9.38 81 1.19
00
3. Increase/
-4,0 581, 579, -65, 514,
decrease in 2,14
51,2 874, 968, 414, 554,
the period 5,53
17.9 117. 430. 252. 178.
(“-” for 1.58
7 04 65 01 64
decrease)
-4,0 798, 794, -67, 727,
3.1 Total
51,2 572, 520, 234, 286,
comprehensiv
17.9 121. 903. 252. 651.
e income
7 74 77 01 76
3.2 Capital
1,82 1,82
increased and
0,00 0,00
reduced by
0.00 0.00
owners
3.2.1
Ordinary 1,82 1,82
shares 0,00 0,00
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
3.2.4 Other
-216 -214 -214
2,14
3.3 Profit ,698, ,552, ,552,
5,53
distribution 004. 473. 473.
1.58
70 12 12
3.3.1 -2,8
2,80
Appropriation 02,3
2,34
to surplus 42.0
2.02
reserves 2
3.3.2
Appropriation
to general
115
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
reserve
3.3.3 -214 -214 -214
Appropriation ,552, ,552, ,552,
to owners (or 473. 473. 473.
shareholders) 12 12 12
-656 656,
3.3.4
,810. 810.
Other
44 44
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
comprehensiv
e income
transferred to
retained
116
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
595
80,4 -6,7 19,2 3,03 3,72 53,2 3,78
4. Balance as ,97
88,0 49,5 05,9 8,99 7,91 04,0 1,12
at the end of 9,0
45.3 89.4 79.6 3,91 7,44 39.8 1,47
the period 92.
8 1 3 2.43 0.03 0 9.83
00
2019
Unit: RMB
2019
Equity attributable to owners of the Company as the parent
Other equity
Othe
instruments
Less r Non- Total
Pr Pe contr owne
Item Sha Capi : com Spec Surp Gen Reta
efe rpe olling rs’
re tal Trea preh ific lus eral ined Othe Subt
rre tua intere equit
cap Oth reser sury ensi reser reser reser earni r otal
d l sts y
ital er ves stoc ve ve ves ve ngs
sh bo
k inco
are nd
me
s s
595
483, -1,7 299, 2,49 3,87 3,881
1. Balance as ,97 9,111
347, 86,1 569, 5,29 2,40 ,517,
at the end of 9,0 ,409.
184. 81.6 569. 6,44 6,10 514.5
the prior year 92. 91
25 9 96 0.15 4.67 8
00
Add:
Adjustment
for change in
accounting
policy
Adjustment
117
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
for correction
of previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
595
2. Balance as 483, -1,7 299, 2,49 3,87 3,881
,97 9,111
at the 347, 86,1 569, 5,29 2,40 ,517,
9,0 ,409.
beginning of 184. 81.6 569. 6,44 6,10 514.5
92. 91
the year 25 9 96 0.15 4.67 8
00
3. Increase/
-402 -282 -38, -724
decrease in -912 109,5 -614,
,859, ,509, 176, ,457
the period ,189. 06,88 950,2
138. 121. 644. ,095
(“-” for 75 1.90 13.39
87 91 76 .29
decrease)
817, 816,
3.1 Total -912 -75,6 741,2
805, 893,
comprehensi ,189. 75,72 17,86
780. 590.
ve income 75 9.58 0.79
12 37
-1,3
3.2 Capital -402 -298 -660 -1,17
62,5 185,1
increased and ,859, ,912, ,785, 7,374
56,9 82,61
reduced by 138. 759. 059. ,346.
58.0 1.48
owners 87 52 67 58
6
3.2.1
Ordinary 3,220 3,220
shares ,000. ,000.
increased by 00 00
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
118
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
payments
included in
owners’
equity
-1,3
-402 -298 -660 -1,18
62,5 181,9
,859, ,912, ,785, 0,594
3.2.4 Other 56,9 62,61
138. 759. 059. ,346.
58.0 1.48
87 52 67 58
6
16,4 -195 -178
-178,
3.3 Profit 03,6 ,197, ,793
793,7
distribution 37.6 365. ,727
27.60
1 21 .60
3.3.1 16,4 -16,
Appropriatio 03,6 403,
n to surplus 37.6 637.
reserves 1 61
3.3.2
Appropriatio
n to general
reserve
3.3.3
-178 -178
Appropriatio -178,
,793, ,793
n to owners 793,7
727. ,727
(or 27.60
60 .60
shareholders)
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
119
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
comprehensi
ve 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
595
80,4 -2,6 17,0 2,45 3,14 3,266
4. Balance as ,97 118,6
88,0 98,3 60,4 7,11 7,94 ,567,
at the end of 9,0 18,29
45.3 71.4 48.0 9,79 9,00 301.1
the period 92. 1.81
8 4 5 5.39 9.38 9
00
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2020
Unit: RMB
Item 2020
120
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Other equity Other
instruments Capita Less: compr Specifi Surplu Retai
Share Total
Prefe Perp l Treasu ehensi c s ned
capit Other owners’
rred etual Othe reserv ry ve reserv reserv earni
al equity
share bond r es stock incom e es ngs
s s e
1,67
1. Balance as 595,9 53,876 16,403
-2,051, 7,29 2,341,50
at the end of 79,09 ,380.1 ,637.6
268.24 6,28 4,130.94
the prior year 2.00 1 1
9.46
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 1,67
595,9 53,876 16,403
at the -2,051, 7,29 2,341,50
79,09 ,380.1 ,637.6
beginning of 268.24 6,28 4,130.94
2.00 1 1
the year 9.46
3. Increase/ -189,
decrease in the -494,1 2,802, 331, -187,023
period (“-” for 82.95 342.02 394. ,235.86
decrease) 93
28,0
3.1 Total
-494,1 23,4 27,529,2
comprehensive
82.95 20.2 37.26
income
1
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
3.2.2 Capital
121
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4 Other
-217,
3.3 Profit 2,802, 354, -214,552
distribution 342.02 815. ,473.12
14
3.3.1
-2,80
Appropriation 2,802,
2,34
to surplus 342.02
2.02
reserves
3.3.2 -214,
Appropriation 552, -214,552
to owners (or 473. ,473.12
shareholders) 12
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
122
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
1,48
4. Balance as 595,9 53,876 19,205
-2,545, 7,96 2,154,48
at the end of 79,09 ,380.1 ,979.6
451.19 4,89 0,895.08
the period 2.00 1 3
4.53
2019
Unit: RMB
2019
Other equity
Other
instruments
Shar Capit Less: compr Surpl Retaine
Pref Specifi Total
Item e al Treas ehensi us d
Perp
erre c Other owners’
capit etual Othe reserv ury ve reserv earning
d reserve equity
al bon r es stock incom es s
shar
ds e
es
1. Balance as 595, 92,32 298,9 2,080,5 3,067,73
at the end of 979, 6,467. 12,75 13,737. 2,056.76
123
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
the prior year 092. 62 9.52 62
00
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as 595,
92,32 298,9 2,080,5
at the 979, 3,067,73
6,467. 12,75 13,737.
beginning of 092. 2,056.76
62 9.52 62
the year 00
3. Increase/
decrease in -38,45 -2,051 -282, -403,21
-726,227,
the period 0,087. ,268.2 509,1 7,448.1
925.82
(“-” for 51 4 21.91 6
decrease)
3.1 Total -2,051 164,03
161,985,
comprehensiv ,268.2 6,376.1
107.88
e income 4 2
3.2 Capital
-38,45 -298, -372,05
increased and -709,419,
0,087. 912,7 6,459.0
reduced by 306.10
51 59.52 7
owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
124
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
owners’
equity
-38,45 -298, -372,05
-709,419,
3.2.4 Other 0,087. 912,7 6,459.0
306.10
51 59.52 7
16,40 -195,19
3.3 Profit -178,793,
3,637 7,365.2
distribution 727.60
.61 1
3.3.1
16,40
Appropriatio -16,403
3,637
n to surplus ,637.61
.61
reserves
3.3.2
Appropriatio -178,79
-178,793,
n to owners 3,727.6
727.60
(or 0
shareholders)
3.3.3
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
125
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensiv
e 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
595,
4. Balance as 53,87 -2,051 16,40 1,677,2
979, 2,341,50
at the end of 6,380. ,268.2 3,637 96,289.
092. 4,130.94
the period 11 4 .61 46
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.
126
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
The financial statements were approved and authorized for issue by the 22nd Meeting of the 9th Board of Directors of the Company on
30 March 2021.
The consolidation scope of the Company’s consolidated financial statements was determined based on the control. There were 44
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 report for details.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
Based on the continuing operation, the financial statements of the Company are prepared in accordance with the actual transactions,
governing provisions of the Accounting Standards for Business Enterprises and the following major accounting policies and
estimates.
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 business
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,
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 cycle shall be determined by the
development project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
127
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
5. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
The assets and liabilities that the Company obtains in a business combination shall be measured on the basis of their carrying amount
combined party in the consolidated financial statements of the final controller on the combining date. As for the balance between
the carrying amount of combined party’s owners equities in the consolidated financial statements of the final controller and the
carrying amount of the consideration paid by it or the total par value of the shares issued), the additional paid-in capital shall be
adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Company shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets
obtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable net
assets obtained from the acquire, the Company shall recheck the various identifiable assets and liabilities obtained from the acquire,
fair value with liabilities, and measurement of combination costs. If the combination costs are less than the fair value of the
identifiable net assets obtained from the acquire after recheck, the Company shall the record the balance into the profit and loss of the
current period.
6. Methods for Preparing Consolidated Financial Statements
The Company as the parent included its all subsidiaries into the consolidation scope of consolidated financial statements. Based on
the financial statements of the Company as the parent and its subsidiaries and other related materials, the consolidated financial
statements were prepared by the Company as the parent according to Accounting Standards for Enterprises No. 33 –Consolidated
Financial Statements.
7. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Joint arrangement is classified into joint operation and joint ventures.
2. When the Company is a party of a joint operation, recognize the following items related to the profits in the joint operation:
(1) Recognize the assets held independently, and recognize the assets held jointly in the holding portion;
(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
In the Company’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and
short-term (usually due within 3 months since the day of purchase) and high circulating investments, which are easily convertible
into known amount of cash and whose risks in change of value are minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition, the amount in the foreign currency shall be translated into the amount
in the Renminbi at the spot exchange rate of the transaction date. On balance sheet date, the foreign currency monetary items shall be
translated as the spot exchange rate on the balance sheet date, the balance occurred thereof shall be recorded into the profits and
losses at the current period except that the balance of exchange arising from the principal and interests of foreign currency
borrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetary
items measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount of
functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated at
the spot exchange rate on the confirming date of fair value, of which the balance of exchange shall be included into the profit and
128
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
loss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among the
owner’s equity items, except for the items as “retained earnings”, other items shall be translated at the spot exchange rate at the time
when they are incurred. The income and expense items in the income statements shall be translated at the approximate spot exchange
rate at the time when they are incurred. The difference from translation of foreign currency financial statements thereof shall be
recorded into other comprehensive income.
10. Financial Instruments
1. Classification of Financial Assets and Financial Liabilities
Financial assets shall be classified into the following three categories when they are initially recognized: (1) financial assets
measured at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair value
through profit or loss.
Financial liabilities shall be classified into the following four categories when they are initially recognized: (1) financial liabilities at
fair value through profit or loss; (2) financial liabilities generated from transfer of financial assets not conforming to requirements of
derecognition or continuous involvement of transferred financial assets; (3) financial guarantee contracts not belonging to above (1)
or (2), and loan commitments not belonging to above (1) and at lower interest rate than the market interest rate; (4) financial
liabilities measured at amortized cost.
2. Recognition Basis, Calculation Method, and Termination of Recognition of Financial Assets and Liabilities
(1) Recognition basis and initial calculation method of financial assets and liabilities
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial liability. The financial
assets and financial liabilities initially recognized shall be measured at their fair values. For the financial assets and liabilities
measured at their fair values and of which the variation is recorded into the profits and losses of the current period, the transaction
expenses thereof shall be directly recorded into the profits and losses of the current period; for other categories of financial assets and
financial liabilities, the transaction expenses thereof shall be included into the initially recognized amount. However, when the
accounts receivable initially recognized by the Company do not include significant financing or the Company does not consider the
financing in contracts not over one year, it shall be initially calculated at the transaction price.
(2) Subsequent calculation method of financial assets
1) Financial assets at amortized cost
The Company shall make subsequent measurement on its financial assets at amortized cost by adopting the actual interest rate
method. The gains or losses generated from the financial assets at amortized cost and not belonging to any hedging relationship shall
be recorded into the current profit of loss when decognized, reclassified, amortized with the actual interest rate method or
recognizing impairments.
Investments in debt instruments at fair value through other comprehensive income
The Company shall make subsequent measurement at fair value. The interest calculated by adopting the actual interest rate method,
impairment losses or profits and foreign exchange gains shall be recorded into the current profit or loss, and other profits or losses
shall be recorded into other comprehensive income. When derecognized, the accumulative profits or losses thereof originally
recorded into other comprehensive income shall be transferred out and then recorded into the current profit or loss.
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.
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)
129
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
shall be recorded into the current profit or loss, unless the financial asset is one part of a hedging relationship.
Subsequent calculation method of financial liabilities
Financial liabilities at fair value through profit or loss
Such financial liabilities include trading financial liabilities (include derivative instruments belonging to financial liabilities) and
those designated as financial liabilities at fair value through profit or loss. For such financial liabilities, the subsequent measurement
shall be conducted at fair value. The amount of changes in fair value of designated financial liabilities at fair value through profit or
loss due to the Company’s credit risk changes shall be recorded into other comprehensive income, unless this treatment will result in
or enlarge accounting mismatch of the profit or loss. The other gains or losses generated from such financial liabilities (including
interest expense, changes of fair value not caused by the Company’s credit risk changes) shall be recorded into the current profit or
loss, unless the they are one part of a hedging relationship. And when derecognized, the accumulative gains or losses thereof
originally recorded into other comprehensive income shall be transferred out and then recorded into the retained earnings.
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
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.
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.
Derecognition of financial assets and financial liabilities
Derecognize financial assets when meeting one of the following conditions:
① The contract rights for collecting cash flow of financial assets have terminated;
② Financial asset has been transferred and the transfer meets the provisions of Accounting Standards for Business Enterprises
No.23-Transfer of Financial Assets governing the derecognition of financial assets.
2) When the current obligation of the financial liability (or some of it) has been relieved, the financial liability (or some of it) shall be
accordingly derecognized.
3. Recognition Basis and Measurement of Transfer of Financial Assets
Where the Company has transferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee,
it shall stop recognizing the financial asset and separately recognize the rights and obligations generated retained from the transfer as
assets or liabilities. If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall continue to
recognize the transferred financial asset. Where the Company does not transfer or retain nearly all of the risks and rewards related to
the ownership of a financial asset, it shall deal with it according to the circumstances as follows, respectively: (1) If it gives up its
control over the financial asset, it shall stop recognizing the financial asset and separately recognize the rights and obligations
generated retained from the transfer as assets or liabilities; (2) If it does not give up its control over the financial asset, it shall,
according to the extent of its continuous involvement in the transferred financial asset, recognize the related financial asset and
recognize the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between the amounts of the
following 2 items shall be recorded in the profits and losses of the current period: (1) The carrying value of the transferred financial
asset on the derecognition date; (2) The sum of consideration received from the transfer of financial assets, and derecognition amount
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among the accumulative amount of the changes of the fair value originally recorded in the other comprehensive income (the financial
assets involve transfer are investments in debt instruments at fair value through other comprehensive income. If the transfer of partial
financial asset satisfies the conditions to stop the recognition, the entire carrying value of the transferred financial asset shall,
between the portion whose recognition has been stopped and the portion whose recognition has not been stopped, be apportioned
according to their respective relative fair value on the transfer date, and the difference between the amounts of the following two
items shall be included into the profits and losses of the current period: (1)The carrying value of the portion whose recognition has
been stopped; (2)The sum of consideration of the portion whose recognition has been stopped, and derecognition amount among the
accumulative amount of the changes of the fair value originally recorded in the other comprehensive income (the financial assets
involve transfer are investments in debt instruments at fair value through other comprehensive income.
4. Recognition Method of Financial Assets and Financial Liabilities’ Fair Value
The Company adopts the valuation technique with sufficient useful data and supported by other information which is suitable for the
current situation to recognize the fair value of related financial assets and liabilities. The Company classifies the input value used in
the valuation technique into the following levels and uses them in sequence:
(1) The first level of input value is the non-adjustable offer of the same assets or liabilities in the active market on the calculation
date;
(2) The second level of input value is the directly or indirectly observable input value of related assets or liabilities except the input
value on the first level, including: offer of similar assets or liabilities in the active market; offer of identical or similar assets or
liabilities in the non-active market; other observable input value except offer, including the observable interest rate during the interval
period of common offer, profit rate curve, etc.; the input value for market verification etc..
(3) The third level of input value is the non-observable input value of related assets or liabilities, including interest rates that cannot
be observed directly or verified by the data of observable market, stock fluctuation rate, future cash flow of the disposal obligation
borne in corporate mergers, financial forecast based on self-data, etc..
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial assets which is
measured by amortized cost, debt instrument investment which is measured by fair value and whose change is calculated into other
comprehensive profits, accounts receivable of rental, loan commitment which is beyond financial debt classified as the one which is
measured by fair value and whose change is calculated into current profits and losses, financial debt which does not belong to the one
which is measured by fair value and whose change is calculated into current profits or losses, or financial guarantee contract of
financial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition of
termination or keeps on being involved in transferred financial asset.
Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breach
occurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according to
actual interest rate and receivable according to contract and all cash flow which to be charged as expected, i.e. current value of all
cash shortage. Among it, as for financial asset purchased or original which has had credit impairment, it should be converted into
cash according actual interest rate of this financial asset after credit adjustment.
As for financial asset purchased or original which has had credit impairment, the Company only confirms cumulative change of
expected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.
As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents in
contract which is less than one year, the Company applies simplified measurement method, and measures loss reserve according to
amount of expected credit loss within the whole duration.
As for account receivable of rental and accounts receivable including major financing contents, the Company applies simplified
measurement method, and measure loss reserve according to amount of expected credit loss within the whole duration.
As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit risk has increased
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obviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously, the Company
measures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does not
increase obviously, the Company measures loss reserve according to the amount of expected credit loss in next 12 months.
By utilizing obtainable rational and well grounded information, including forward-looking information, comparing the risk of
contract breach on balance sheet date and risk of contract breach on initial confirmation date, the Company confirms whether the
credit risk of financial instrument has increased obviously from initial confirmation.
On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk, then it will be
assumed that credit risk of the financial instrument has not increased obviously.
Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and measures expected credit
loss. When based on financial instrument portfolio, the Company takes common risk characteristics as the basis, and divides financial
instruments into different portfolios.
The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or amount which is
transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset which
is measured by amortized cost, loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debt
investment which is measured by fair value and whose change is calculated into other comprehensive profits, the Company confirms
its loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
Item Recognition basis Method of measuring expected credit losses
Other receivables-intercourse funds among Accounts nature Consulting historical experience in credit losses,
related party group within the consolidation combining actual situation and prediction for future
scope economic situation, the group’s expected credit loss
Other receivables-interest receivable group rate shall be accounted through exposure at default
Other receivables-other intercourse funds and the expected credit loss rate within the next 12
among related party group months or the entire life
Other receivables-credit risk characteristics Aging group Consulting historical experience in credit losses,
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 funds Account nature Consulting historical experience in credit losses,
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
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and the expected credit loss rate within the entire life
Accounts receivable-credit risk characteristics Aging group Prepare the comparative list between aging of
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
2 to 3 years 30.00
3 to 4 years 50.00
4 to 5 years 80.00
Over 5 years 100.00
6. Offset between financial asset and financial debt
Financial asset and financial debt are listed in the balance sheet separately and don’t offset each other. However, when the following
conditions are met at the same time, the Company will list the net amount after mutual offset in the balance sheet: (1) The Company
has the legal right to offset the confirmed amount, and the legal right is executable currently; (2) The Company plans to settle by net
amount, or monetize the financial asset and liquidate the financial debt at the same time.
For those transfers of financial assets not meeting the derecognition conditions, the Company does not offset the transferred financial
assets and relative liabilities.
11. Notes Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
12. Accounts Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
13. Accounts Receivable Financing
Not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivables
Refer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation, development
products, temporarily leased development products which intended for sale, relocation housing, stock materials, inventory equipment,
and low-value consumables, etc., as well as development costs in the process of development.
(2) Cost Flow Assumption
1) Send-out materials 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.
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3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely by
stages according to the expected useful life of the same kind of fixed assets of the Company.
5) If the public supporting facilities are completed earlier than the relevant development products, after the final account of the public
supporting facilities， it shall be account into the development cost of the relevant development projects according to the building
area; If the public supporting facilities are completed later than the relevant development products, the relevant development products
shall withhold the public supporting facilities fees, and adjust the relevant development product costs according to the difference
between the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date, inventory shall be measured at the lower of cost or net realizable value, and provision shall be made for
falling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.
Inventories directly for sale, under normal producing process, to the amount after deducting the estimated sale expense and relevant
taxes from the estimated sell price of the inventory, the net realizable value has been recognized; inventories which need to be
processed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expense
and relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized; on the
balance sheet date, in the same item of inventories, if some have contractual price agreement while others do not, the net realizable
value shall be recognized respectively and compared with their cost, and the amount of provision withdrawal or reversal for falling
price of inventories shall be recognized respectively.
(4) Inventory System for Inventories
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
One-off amortization method
16. Contract Assets
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. 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:
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.
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This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
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
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 value 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:
Residual consideration expected to be gained from transferring commodities and services related to this asset;
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 after 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
The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)
Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in
similar transactions; (2) The sale is likely to occur, and a resolution has been made on a sale plan and a firm purchase commitment is
obtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties,
which contains important terms such as transaction price, time and severe penalty for breach of contract to minimize the possibility
of major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved by
relevant authorities or regulatory authorities according to relevant regulations.
The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the selling
expenses (which shall not exceed the original book value of the assets available for sale). The difference between the original book
value and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment, and
provisions for impairment of assets available for sale shall be made. For the amount of impairment loss of disposal group available
for sale recognized, the book value of goodwill of the disposal group shall be offset first, and then the book value of disposal group
shall be offset in proportion according to the share of the book value of non-current assets in the disposal group measured according
to this Standard.
When the net amount of fair value of non-current assets available for sale minus the selling expenses increases on the subsequent
balance sheet date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss
recognized after being classified as available for sale assets, and the reversed amount shall be included in the current profits and
losses. The impairment loss of assets recognized before being classified as available for sale assets shall not be reversed. When the
net amount of fair value of disposal group available for sale minus the selling expenses increases on the subsequent balance sheet
date, the amount previously written down shall be restored and reversed within the amount of asset impairment loss recognized as
non-current assets in the disposal group measured according to this Standard after being classified into the categories available for
sale assets, and the reversed amount shall be included in the current profits and losses. The book value of goodwill that has been
offset and the impairment loss of non-current assets measured according to this Standard shall not be reversed before they are
classified as available for sale assets. The subsequent reversal amount of asset impairment loss recognized as disposal group
available for sale shall be increased in proportion to the share of the book value of non-current assets in the disposal group, except
goodwill, which are measured according to this Standard. In case that an enterprise loses its control over a subsidiary due to sale of
its investment in the subsidiary, the investment in the subsidiary to be sold shall be divided into the available for sale category in
individual financial statement of the parent company when the proposed investment in the subsidiary meets the conditions for
classification of available for sale category, and all assets and liabilities of the subsidiary shall be classified into available for sale
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category in the consolidated financial statements, no matter whether the enterprise retains part of equity investment after the sale.
19. Investments in Debt Obligations
Not applicable.
20. Investments in other Debt Obligations
Not applicable.
21. Long-term 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
cost of the long-term equity investment and the carrying amount of the paid combination or the total amount of the issued shares
should be adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earnings are adjusted respectively.
When a long-term equity investment is formed from the business combination under common control through the Company’s
multiple transactions step by step, the treatment shall be carried out based on whether the transactions constitute the “package deal”.
If they do, the accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with the
acquisition of control. If they do not, the initial investment cost shall be the portion of the carrying value of acquiree’s net assets
entitled in the consolidated financial statements of the final controller after the consolidation. The difference between the initial
investment cost of the long-term equity investment on the combination date and the carrying value of the investment before the
combination plus the carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shall
be adjusted to capital reserve; if the capital reserve is insufficient for the adjustment, retained earnings should be adjusted
accordingly.
(2) For those formed from the business combination under different control, the initial investment cost is the fair value of the
combination consideration paid on the acquisition date.
When a long-term equity investment is formed from the business combination under different control through the Company’s
multiple transactions step by step, the accounting treatment shall be carried out based on whether the financial statements are
individual or consolidated:
1) In individual financial statements, the initial investment cost accounted in cost method is the sum of the carrying value of the
equity investment originally held and the cost of new investment.
2) In consolidate financial statements, judge whether the transactions constitute the “package deal”. If they do, the accounting
treatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they do
not, for the acquiree’s equity held before the acquisition date, re-measurement shall be carried out according to the fair value of the
equity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into current
investment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted in
equity method, other comprehensive income related to it shall be transferred into the income for the period in which the acquisition
date falls, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of
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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 through multiple transactions until the loss
of the controlling right
(1) Individual financial statements
For the disposed equity, the difference between its fair value and the actually obtained price shall be recorded into current profits or
losses. For the residual equity, the part that still has significant effects on investees or with common control jointly with other parties
shall be accounted in equity method; the part that has no more control, common control or significant effects on investees shall be
accounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition and
Measurement of Financial Instruments.
(2) Consolidated financial statements
1) For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which do not constitute the “package deal”
Before the loss of the controlling right, for the balance between the disposal remuneration and the shares of net assets in the
subsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-term
equity investment, capital reserve (capital premium) shall be adjusted, and if the capital premium is not sufficient for the write-down,
the retained earnings shall be written down.
At the loss of the controlling right over the original subsidiaries, the residual equity shall be re-measured at its fair value on the date
of losing the controlling right. The difference between the consideration obtained in the equity disposal, plus the fair value of the
remaining equities, less the Company’s share of net assets enjoyed of the former subsidiary that has been calculated since the
acquisition date or combination date according to the former shareholding ratio, shall be recorded into the investment gains for the
period when the control ceases; meanwhile, goodwill shall be written down. Other comprehensive income related to former
subsidiary's equity investment shall be transferred into current investment income when the control ceases.
2) For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,
which constitute the “package deal”
The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiary
and losing control. However, before losing control, the difference between each disposal price before losing the control, and the
corresponding net assets share enjoyed of subsidiary when disposing long-term equity investment, shall be recognized as other
comprehensive income in the consolidated financial statements and when the control ceases, transferred into current profits or losses
of the period of losing control.
(5) Impairment test method and impairment provision method
When there is objective evidence indicating impairment of the investment in subsidiaries, joint ventures and cooperative enterprises
on the balance sheet date, corresponding provision for impairment shall be made according to the difference between the book value
and recoverable amount.
23. Investment Property
Measurement mode of investment real estates
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Measurement of cost method
Depreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to use any land which
is held and prepared for transfer after appreciation, and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in the subsequent
measurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciation
or amortization. When there is any indication of impairment of investment property on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount.
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake of
producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal year.
No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits are likely to
flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
Expected net salvage
Category Depreciation method Useful life (year) Annual deprecation
value
Straight-line
Houses and buildings 20-25 5-10 3.6-4.75
depreciation
Straight-line
Transportation 5 5 19
depreciation
Straight-line
Other equipment 5 5 19
depreciation
Straight-line
Machinery equipment 5 5 19
depreciation
Decoration of fixed Straight-line
5 0 20
assets depreciation
(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.
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26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses when it occurred, and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The asset
disbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction or
production activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during such
period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition and
construction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intended
use or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of
borrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discount
and premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment
income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose of
acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applying
a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose
borrowing.
27. Biological Assets
Not applicable.
28. Oil and Gas Assets
Not applicable.
29. 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 according to the
costs.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably within their service
life according to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expected
implementation reliably, it shall be amortized by straight-line method. The specific useful lives are as follows:
Items Useful life for amortization (years)
Use right of lands Statutory life of land use right
Use right of software 5
The intangible assets with uncertain service life shall not be amortized, and the Company rechecks the service life of the intangible
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assets in every accounting period. For intangible assets with uncertain service, the recognition basis is without certain service life and
expected benefit life.
3. For intangible assets with definite service life, when there is any indication of impairment on the balance sheet date, corresponding
provision for impairment shall be made according to the difference between the book value and recoverable amount; for intangible
assets with uncertain service life and those not ready for service, impairment test shall be conducted every year no matter whether
there is any indication of impairment.
(2) Accounting Policies of Internal R&D Expenses
Not applicable.
31. Impairment of Long-term Assets
For long-term assets, such as long-term equity investment, investment property measured by cost model, fixed assets, construction in
progress, and intangible assets with limited service life, the Company shall estimate the recoverable amount if there are signs of
impairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination,
whether or not there is sign of impairment, impairment test shall be conducted every year. Goodwill combination and its related
assets group or combination of assets group shall be conducted the impairment test.
If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value, it shall make the preparation for
assets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that have
occurred. Long-term prepaid expense shall be recorded into the account according to the actual accrual. Long-term prepaid expense
shall be amortized averagely within benefit period or specified period. In case of no benefit in the future accounting period, the
amortized value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
33. 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 drawing plan will
be recognized as liabilities and recorded into current profits or losses or cost of relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method, adopt unbiased and mutually consistent actuarial assumptions to
evaluate related demographic variables and financial variables, measure the obligations generated from defined benefit plans and
recognize the period in respect of related obligations. Meanwhile, discount the obligations generated from defined benefit plans to
recognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan, the deficit or surplus formed from the present value of the defined benefit plan
obligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefit
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
plan. If there is any surplus in a defined benefit plan, the net assets of the plan shall be measured at the lower of the surplus or the
upper asset limit;
3) At the end of the period, the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs,
net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets of
the plan. Service costs and net interests of the net liabilities or net assets of the plan shall be recorded into the current profits or losses
or related asset costs, while changes from the re-measurement of the net liabilities or net assets of the plan shall be recorded into
other comprehensive income and shall not be transferred back to profits or losses in subsequent accounting periods. But the amounts
recognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of Demission Welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, or
when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission
welfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting Treatment of Other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees, and for those met with the defined contribution
plans, accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for the
others long-term employee benefits except for the former, accounting treatment should be conducted according to the related
regulations of the defined benefit plans. In order to simplify the related accounting treatment, the payrolls shall be recognized as
service costs, the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total net
amounts made up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees again
shall be recorded into the current profits and losses or related assets costs.
35. Lease Liabilities
Not applicable.
36. Provisions
1. The obligation such as external guaranty, litigation or arbitration, product quality assurance, loss contract, pertinent to a
contingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: ① That obligation
is a current obligation of the enterprise; ② It is likely to cause any economic 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 Preference 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
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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.
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:
The customer gains and consumes the economic interests brought by the Company’s contract performance when the Company
performs the contract.
The customer is able to control the assets in progress during the Company’s contract performance.
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.
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:
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.
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.
The Company has transferred the physical commodity to the customer. In other words, the customer has taken physical possession of
the commodity.
The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words, the
customer has acquired the major risks and remunerations in respect of the ownership of the commodity.
The customer has accepted the commodity.
Other signs indicating that the customer has acquired control over the commodity.
3) 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 risks and
rewards of ownership of the developed products have been transferred to the buyer at the same time, the Company shall no longer
retain the continuous management rights normally associated with ownership and effectively control the sold developed products, the
revenue amount can be measured reliably, the related economic benefits are likely to flow in, and the related costs that have occurred
or will occur can be measured reliably.
For the sale of self-occupied housing, the realization of sales income shall be recognized under the following conditions: the main
risks and rewards of ownership of self-occupied houses are transferred to the buyer, the Company will no longer retain the
continuous management rights normally associated with ownership and effectively control the sold development products, the
amount of income can be measured reliably, relevant economic benefits are likely to flow in, the relevant costs that have occurred or
will occur can be measured reliably.
Only recognizing the sales income realization under the following conditions: acquired the real estate completed and accepted as
qualified (the completion and acceptance reports), signed an irreversible sales contract, obtained the buyer's payment certificate (for
those who chose bank mortgage, the first installment and the full amount of bank mortgage must be required; for those who did not
choose the bank mortgage to make their payment, the full house payment must be required) issued the notice of repossession (if the
owner fails to go through the formalities in time within the specified time limit the building shall be deemed as repossessed).
(2) Providing Labor Services
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If the provision of labor services can be reliably estimated (all the following conditions are met: ① The amount of income can be
measured reliably; ②The relevant economic benefits are likely to inflow to the Company; ③ The progress of the transaction can be
reliably determined; ④ The cost incurred and to be incurred in the transaction can be measured reliably), it shall recognize the
revenue from providing services employing the percentage-of-completion method, and confirm the completion of labor service
according to the costs incurred as a percentage of the total estimated costs. If the Company can’t, on the date of the balance sheet,
reliably estimate the outcome of a transaction concerning the labor services it provides, it shall be handled under the following
conditions: If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shall
be recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried
forward at the same amount; If the cost of labor services incurred is not expected to compensate, the cost incurred should be included
in the current profits and losses, and no revenue from the providing of labor services may be recognized.
Property management revenue shall be recognized when property management services have been provided, economic benefits
related to property management services can flow into the enterprise, and costs related to property management can be reliably
measured.
(3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevant
economic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall be
recognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenue
shall be recognized according to the chargeable time and method stipulated in related contracts and agreements.
According to the lease date and lease amount agreed in the lease contract and agreement, the realization of rental property income
shall be recognized when relevant economic benefits are likely to flow in.
(4) Other Business Income
According to the stipulations of relevant contracts and agreements, when the economic benefits related to the transaction can flow
into the enterprise and the costs related to the income can be reliably measured, the realization of other business income shall be
confirmed.
(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.
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 whether the
significant reversal of accumulated recognized revenue is almost impossible or not, a company should concurrently consider the
possibility and weight of the revenue reversal.
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 between the
transaction price and the contract consideration should be amortized in the effective interest method during the contract period.
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 will indirectly determine the transaction
price by reference to the individual price committed by the Company for transferring the commodity to the customer.
Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, and
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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 customer is for
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. When
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, disposed of or
destroyed before the end of their life, the undistributed balance of related deferred income shall be transferred into the profits or
losses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. For
government subsidies consisting of both asset-related parts and profits-related parts, which are 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 the period when the
asset is realized or the liability is settled.
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2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductible
temporary differences. At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be
available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shall
be recognized.
3. The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that sufficient taxable
profit will not be available against which the deductible temporary difference can be utilized, the Company shall write down the
carrying amount of deferred tax asset, or reverse the amount written down later when it’s probable that sufficient taxable profit will
be available.
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income tax
expenses or revenue, except in the following circumstances: (1) Business combination; (2) The transaction or event directly included
in owner’ equity.
42. Lease
(1) Accounting Treatment of Operating Lease
As a Lessee, the Company shall record the rent into relevant assets cost or recognize it as the current profit or loss on a straight-line
basis over the lease term. The initial direct costs incurred shall be recognized as the current profit or loss; Contingent rents shall be
charged into the current profit or loss when they are incurred.
When the Company acts as lessor, rents shall be recognized as the current profit and loss according to straight-line method in each
period of the lease term. Initial direct expenses incurred shall be directly included in the current profit and loss, except for those with
large amount which are capitalized and included in the profit and loss by stages. Contingent rents shall be included in the current
profits and losses when they actually incur.
(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 and confirm
the current financing charge.
On the initial date of financial lease, lessee of the financial lease shall record the sum of the minimum lease payments and initial
direct costs as the financing lease accounts receivable, and also record the non-guaranteed residual value; recognize the difference
between the total minimum lease payments, initial direct costs, non-guaranteed residual value and sum of the present value as the
unrealized financing income; At each period during the lease term, the effective interest rate method shall be adopted to calculate and
confirm the current financing income.
43. Other Important Accounting Policies and Accounting Estimations
(1) Confirmation standard and accounting handling method for operation termination
Components which meet one of the following conditions, have been disposed or divided as held for sale category and can be
distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operation
area.
3) The component is a subsidiary which is obtained for resale specially.
(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),
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
and shall uniformly turn them over to the maintenance fund management department.
2) Quality deposit accounting method
The quality guarantee fund shall be reserved from the project fund of the construction unit according to the provisions of the
construction contract. Maintenance fees incurred during the warranty period of the developed products shall be offset against the
quality guarantee deposit; After the expiration of the warranty period agreed upon in the development of products, the balance of the
quality guarantee deposit shall be returned to the construction unit.
(3) Segmental report
The Group recognizes the operating segments according to the internal organization structure, the management requirements and the
internal report system. Operating segments refer to the compose parts of the Group which meet with the following conditions at the
same time:
the compose part could cause revenues and expenses in the daily activities;
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
1. The Company has adopted the provisions of Accounting Standard for Business Enterprises No. 14 –Revenue (CK [2017] No. 22)
since January 1, 2020. According to cumulative effects, the Company adjusted retained earnings at the beginning of the year and
other relevant items in the financial statements, without adjustment of any information of the comparable period. The impact of
accounting policy changes includes:
Items and amounts of financial statements
Contents of changes in accounting policies and reasons thereof
affected
Consideration paid by customers before the delivery of goods is listed asIn the consolidated balance sheet on 1 January
“contract liabilities” in accordance with the new standard for income, and2020, “Advances from customers” are
tax included is listed as “other current liabilities”. RMB516,988.76, “Contract liabilities” are
RMB690,543,580.95 and “Other current
liabilities” are RMB37,125,462.92;
In the balance sheet of the Company as the Parent
on 1 Januray 2020, “Advances from customers”
are RMB320,469.53, “Contract liabilities” are
RMB0.00 and “Other current liabilities” are
RMB0.00.
The right to receive consideration for goods or services that have beenIn the consolidated balance sheet on 1 January
transferred to customers (which depends on other factors other than time)2020, “Contract assets” are RMB0.00;
is listed as “contract assets” in accordance with the new standard forIn the balance sheet of the Company as the Parent
income. on 1 Januray 2020, “Contract assets” are
RMB0.00.
Incremental cost (such as sales commission) incurred for contractIn the consolidated balance sheet on 1 January
acquisition is recognized as an asset as cost of contract acquisition, and2020, “Other current assets” are RMB0.00 and
listed as cost of contract acquisition in “other current assets” or “other
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
non-current assets” in accordance with the new standard for income.“Other non-current assets” are RMB0.00;
However, if the amortization of asset is within one year, it can be
In the balance sheet of the Company as the Parent
included in the current profit and loss when it occurs.
on 1 Januray 2020, “Other current assets” are
RMB0.00 and “Other non-current assets” are
RMB0.00.
The Company adopts simple treatment method to include sales commission with amortization period within one year in the current
profit and loss when it occurs. The amortization period of sales commission in 2019 is within one year.
(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
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
Long-term equity
45,076,122.72 45,076,122.72
investments
Investments in other
1,580,475.86 1,580,475.86
equity 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
658,153,122.73 658,153,122.73
assets
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
728,186,032.63 516,988.76 -727,669,043.87
customers
Contract liabilities 690,543,580.95 690,543,580.95
Financial assets sold
under repurchase
agreements
Customer deposits and
interbank deposits
Payables for acting
trading of securities
Payables for
underwriting of securities
Employee benefits
143,493,868.80 143,493,868.80
payable
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
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for sale
Current portion of
3,921,032.24 3,921,032.24
non-current liabilities
Other current liabilities 37,125,462.92 37,125,462.92
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
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
10,772,491,740.53 10,772,491,740.53
owners’ equity
Notes to the adjustments
All above adjustments are caused by implementing the new standards governing financial instruments.
1. Influence of implementing the new standards governing revenue on the Company’s financial statements on 1 January 2020 is as
follows:
Item Balance sheet
31 December 2019 Influenced 1 January 2020
Advances from customers 728,186,032.63 -727,669,043.87 516,988.76
Contract liabilities 690,543,580.95 690,543,580.95
Other current liabilities 37,125,462.92 37,125,462.92
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
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
1,810,975.86 1,810,975.86
equity 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
Development costs
Goodwill
Long-term prepaid
605,416.29 605,416.29
expense
Deferred income tax
343,958,821.07 343,958,821.07
assets
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Derivative financial
liabilities
Notes payable
Accounts payable 64,503,938.37 64,503,938.37
Advances from
320,469.53 320,469.53
customers
Contract liabilities
Employee benefits
36,735,205.68 36,735,205.68
payable
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
29,642.40 29,642.40
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
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
6,952,499,684.78 6,952,499,684.78
owners’ 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
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 31 December 2020; the Reporting Period refers to the 2020; the same
period of last year refers to the 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%, 5%, 1% separately
Urban maintenance and construction tax Turnover tax payable
according to the regional level
Enterprise income tax Taxable income 25%、20%、15%、16.5% [Note 2]
Added value generated from paid
VAT of land transfer of the use right of state-owned 30%-60%
lands and property right of above-ground
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buildings and other attachments
Levied according to price: paid
according to 1.2% of the residual value
of the real estate’s original value after
Real estate tax 1.2%、12%
deducted 30% at once; levied according
to lease: paid according to 12% of the
rental income
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Chongqing Shenzhen International Trade Center Property
15%
Management Co., Ltd.
Shenzhen SZPRD Housing Assets Operation and Management
20%
Co., Ltd.
Shenzhen Guomao Catering Co., Ltd. 20%
Shenzhen Property Engineering and Construction Supervision
20%
Co., Ltd.
Shenzhen Julian Human Resources Development Co.,Ltd. 20%
Shenzhen Huazhengpeng Property Management Development
20%
Co., Ltd.
Shenzhen Jinhailian Property Management Co.,Ltd. 20%
Shenzhen Zhongtongda House Xiushan Service Co.,Ltd. 20%
Shenzhen Kangping Industry Co.,Ltd. 20%
Shenzhen Teacher Family Training Co., Ltd. 20%
Shenzhen Education Industry Co., Ltd. 20%
Shenzhen Yufa Industry Co., Ltd. 20%
Chongqing Aobo Elevator Co., Ltd. 20%
Subsidiaries registered in Hong Kong area 16.50%
Other taxpaying bodies within the consolidated scope 25%
2. Tax Preference
[Note 2]: According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging category of
the Guidance Catalogue of Industry Structure Adjustment (Y2011), the western industry met with the conditions should be collected
the corporate income tax according to 15% of the tax rate. The subsidiary of the Group Chongqing Shenzhen International Trade
Center Property Management Co., Ltd. applies to above policy.
According to the State Administration of Taxation Notice on the Implementation of Inclusive Tax Relief Policy for Small and Micro
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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% --
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 96,389.26 130,048.49
Bank deposits 4,193,301,592.08 3,276,826,087.46
Other monetary assets 12,868,647.98 20,934,799.96
Total 4,206,266,629.32 3,297,890,935.91
Of which: the total amount deposited
51,323,986.36 54,480,940.07
overseas
The total amount with restricted right
38,111,717.09 12,545,702.44
of use for mortgage, pledge or freeze
Other notes
The RMB 12,868,647.98 other monetary assets mainly include RMB 1,148,647.30 guarantee deposit, RMB 11,557,864.41 cash
deposits for L/G and RMB 11,031.58 bank frozen assets; The RMB 4,193,301,592.08 bank deposits include RMB 25,394,174.20
accrued interest on time deposits at Period-end. The above amount is not regarded as cash and cash equivalents due to restrictions on
use.
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2. Held-for-trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
3. Derivative Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
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,
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
(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
Name of the entity Nature Amount Reason Procedure because of
related-party
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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 Carrying value
Category Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount
proportion proportion
Accounts
receivable
with single 105,273,5 105,273,5 106,958,370. 105,293,3 1,665,006.
34.37% 100.00% 31.79% 98.44%
bad debt 64.00 64.00 47 64.00 47
provision
accrued
Of which:
Accounts
receivable
with bad
debt 201,040,0 13,342,37 187,697,6 229,476,481. 14,217,82 215,258,65
65.63% 6.64% 68.21% 6.20%
provision 06.98 5.51 31.47 62 4.84 6.78
withdrawn
according
to groups
Of which:
306,313,5 118,615,9 187,697,6 336,434,852. 119,511,1 216,923,66
Total 100.00% 38.72% 100.00% 35.52%
70.98 39.51 31.47 09 88.84 3.25
Bad debt provision separately accrued: 105,273,564.00
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Shenzhen Jiyong
Properties & Involved in the lawsuit
Resources 93,811,328.05 93,811,328.05 100.00% and no executable
Development property
Company
Shenzhen Tewei 2,836,561.00 2,836,561.00 100.00% Uncollectible for a
159
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Industry Co., Ltd. long period
Poor operating
Lunan Industry conditions,
2,818,284.84 2,818,284.84 100.00%
Corporation uncollectible for a long
period
Those with
insignificant single
Uncollectible for a
amount for which bad 5,807,390.11 5,807,390.11 100.00%
long period
debt provision
separately accrued
Total 105,273,564.00 105,273,564.00 -- --
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: 13,342,375.51
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 105,789,544.65 3,173,686.37 3.00%
1 to 2 years 13,591,883.22 1,359,188.34 10.00%
2 to 3 years 3,170,747.25 951,224.18 30.00%
3 to 4 years 2,893,200.67 1,446,600.35 50.00%
4 to 5 years 635,598.25 508,478.60 80.00%
Over 5 years 3,767,450.19 3,767,450.19 100.00%
Total 129,854,860.25 11,206,821.11 --
Notes of the basis of recognizing the group:
Bad debt provision withdrawn according to groups: 13,342,375.51
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk
129,848,424.23 11,206,628.03 8.63%
features
Other intercourse funds
71,191,582.75 2,135,747.48 3.00%
among related party group
Total 201,040,006.98 13,342,375.51 --
Notes of the basis of recognizing the group:
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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 Carrying amount
Within 1 year (including 1 year) 177,505,054.92
1 to 2 years 13,067,955.70
2 to 3 years 3,170,747.25
Over 3 years 112,569,813.11
3 to 4 years 2,893,200.67
4 to 5 years 635,598.25
Over 5 years 109,041,014.19
Total 306,313,570.98
(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
Bad debt
provision
105,293,364.00 19,800.00 105,273,564.00
separately
accrued
Bad debt
provision
withdrawn 14,217,824.84 -875,449.33 13,342,375.51
according to
groups
Total 119,511,188.84 -875,449.33 19,800.00 118,615,939.51
Of which, bad debt provision collected or reversed with significant amount:
161
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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
Of which, verification of significant accounts receivable:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
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 the entity
receivable accounts receivable provision
Shenzhen Jiyong
Properties & Resources 93,811,328.05 30.63% 93,811,328.05
Development Company
Shenzhen Bay
Technology 60,785,586.79 19.84% 1,823,567.60
Development Co., Ltd.
Shenzhen Investment
8,357,589.14 2.73% 250,727.67
Holdings Co., Ltd.
SF Technology Co.,
4,310,687.27 1.41% 129,320.62
Ltd.
Shenzhen Tewei
2,836,561.00 0.93% 2,836,561.00
Industry Co., Ltd.
Total 170,101,752.25 55.54%
(5) Accounts Receivable Derecognized 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:
162
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6. Accounts Receivable Financing
Unit: RMB
Item Ending balance Beginning balance
Increase or decrease of accounts receivable financing and changes in fair value thereof
□ Applicable √ Not applicable
If the depreciation reserve for accounts receivable financing was withdrawn in accordance with the general model of expected credit
losses, the information related to depreciation reserve shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Other notes:
7. Prepayment
(1) List by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 28,553,066.87 55.83% 36,985,187.03 53.18%
1 to 2 years 1,208,311.68 2.36% 3,797,085.70 5.46%
2 to 3 years 769,153.00 1.50% 8,360,467.04 11.36%
Over 3 years 20,012,891.30 40.31% 20,404,034.40 29.00%
Total 50,543,422.85 -- 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 one year are the various prepaid taxes, like land VAT, urban construction tax and educational surtax of
prepayment of real estate projects still not reaching the recognition of income conditions according to tax law; the relevant
procedures of conscience money including land price transaction fees and municipal supporting facilities fee hasn’t been completed
yet.
(2) Top 5 of the Ending Balance of the Prepayment Collected according to the Prepayment Target
Name of the entity Carrying amount As % of the total ending balance of the
prepayments (%)
Shenzhen Qianhai Advanced 25,900,000.00 51.24
Information Service Co., Ltd.
Financial Committee of Shenzhen 19,509,471.00 38.60
Beijing Jingdong Century Information 805,068.25 1.59
Technology Co., Ltd.
Shenzhen Yuetong Construction 771,452.87 1.53
163
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Engineering Co., Ltd.
Chongqing Electric Power Corporation 435,482.12 0.86
Subtotal 47,421,474.24 93.82
Other notes:
The total prepayments of the top 5 ending balances are RMB 47,421,474.24, accounting for 93.82% of the total ending balances of
prepayments.
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other Receivables 789,050,350.51 917,981,165.74
Total 789,050,350.51 917,981,165.74
(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:
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
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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 10,259,805.89 13,439,816.18
Cash deposit 45,948,194.30 30,202,817.84
Petty cash 595,148.50 1,853,585.88
Payments on behalf 8,381,989.28 5,218,908.47
External intercourse funds 763,481,109.87 915,411,567.13
Other 13,537,736.74 9,087,762.19
Total 842,203,984.58 975,214,457.69
2) Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Bad debt provision Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment 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 Reporting —— —— —— ——
Period
Withdrawal of the
-4,076,276.51 -4,076,276.51
Reporting Period
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Reversal of the
-3,281.37 -100.00 -3,381.37
Reporting Period
Balance of 31
25,178,102.14 0.00 27,975,531.93 53,153,634.07
December 2020
Changes of carrying amount with significant amount changed of loss provision in the reporting period
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
Aging Carrying amount
Within 1 year (including 1 year) 763,219,151.59
1 to 2 years 17,722,590.46
2 to 3 years 3,599,266.14
Over 3 years 57,662,976.39
3 to 4 years 2,598,698.34
4 to 5 years 436,932.23
Over 5 years 54,627,345.82
Total 842,203,984.58
3) 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
Bad debt
provision 27,975,631.
-100.00 27,975,531.93
separately 93
accrued
Withdrawal of
bad debt 29,257,660. -4,076,276.5
-3,281.37 25,178,102.14
provision by 02 1
groups
57,233,291. -4,076,276.5
Total -3,381.37 53,153,634.07
95 1
Individual withdrawal of bad debt provision of other receivables at the period-end
Name of the entity Carrying amount Bad debt Withdrawal Withdrawal reason
provision proportion (%)
166
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Shanghai Yutong Real Estate 5,676,000.00 5,676,000.00 100.00 Difficult to recover the lawsuit
Development Co., Ltd. judgment
Hong Kong Yueheng Development Co., 3,271,837.78 3,271,837.78 100.00 Uncollectible for a long period
Ltd.
Dameisha Tourism Center 2,576,445.69 2,576,445.69 100.00 Projects construction ceased
Elevated train project 2,542,332.43 2,542,332.43 100.00 Projects construction ceased
Those with insignificant single amount 13,908,916.03 13,908,916.03 100.00 Uncollectible for a long period
for which bad debt provision separately
accrued
Subtotal 27,975,531.93 27,975,531.93 100.00
Of which bad debt provision revered or recovered with significant amount:
Unit: RMB
Name of the entity Reversed or collected amount Method
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount
Of which significant actual verification of other receivables:
Unit: RMB
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 balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
Shenzhen Xinhai External
401,499,990.18 Within 1 year 47.67%
Holding Co., Ltd. intercourse funds
Shenzhen Xinhai
Rongyao Real
External
Estate 330,472,932.33 Within 1 year 39.24%
intercourse funds
Development Co.,
Ltd.
167
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Shenzhen
Bangling Stock External
30,000,000.00 Within 1 year 3.56% 900,000.00
Cooperative intercourse funds
Company
Shanghai Yutong
Real Estate External
5,676,000.00 Over 5 years 0.67% 5,676,000.00
Development Co., intercourse funds
Ltd.
Hong Kong
Yueheng External
3,271,837.78 Over 5 years 0.39% 3,271,837.78
Development Co., intercourse funds
Ltd.
Total -- 770,920,760.29 -- 91.53% 9,847,837.78
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Aging at period-end
subsidies time, amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other
Receivables
Other notes:
9. Inventories
Whether the Company 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
Classification by nature:
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
Item Carrying Carrying
reserves of Carrying value reserves of Carrying value
amount amount
inventory or inventory or
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ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
depreciation depreciation
reserves of reserves of
contract contract
performance performance
cost cost
4,867,562,388. 4,860,913,984. 4,528,429,076. 4,521,780,672.
R&D expenses 6,648,404.13 6,648,404.13
16 03 71 58
Developing
450,832,522.28 450,832,522.28 390,363,836.20 390,363,836.20
properties
Raw materials 1,169,494.26 535,302.89 634,191.37 1,743,790.82 484,117.43 1,259,673.39
Inventory
2,141,714.37 2,094,300.39 47,413.98 2,132,162.67 2,094,300.39 37,862.28
goods
Low-value
consumption 61,146.54 61,146.54 68,832.21 68,832.21
goods
5,321,767,265. 5,312,489,258. 4,922,737,698. 4,913,510,876.
Total 9,278,007.41 9,226,821.95
61 20 61 66
169
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Disclose main items of "R&D expenses" and interest capitalization in the following format:
Unit: RMB
Increase
Transferred to Other Accumulative Of which: amount
Estimated Estimated (R&D
Name of Date of Beginning developing decrease Ending amount of of capitalized Capital
date of total expenses)
project commencement balance properties for for this balance capitalized interests for this resources
completion investment for this
this period period interests period
period
Guanlan
6,941,500,0 3,004,198, 566,300,9 3,570,49
Bangling Bank loan
00.00 155.43 73.66 9,129.09
Project
SZPRD-Bansh
31 May 235,810,000 103,895,1 64,920,18 168,815,
an Yujing 15 March 2019 Other
2021 .00 47.96 7.23 335.19
Phase II
SZPRD-Golde
31
n Collar’s 138,311,000 579,765,8 499,347,853.0 165,178,3 245,596,
1 March 2014 December 1,059,684.29 Other
Resort-Buildin .00 54.55 4 91.56 393.07
2021
gA
SZPRD-Fucha
904,390,000 581,416,9 27,163,88 608,580,
ng Garden 1 December 2018 1 June 2021 Other
.00 71.33 8.88 860.21
Phase II
Yupinluanshan 215,502,5 11,111,41 226,613,
Other
Garden 12.42 3.82 926.24
Hainan
6,648,404. 6,648,40
Qiongshan Other
13 4.13
Land
Shenhui 37,002,03 37,002,0
Other
Garden 0.89 30.89
170
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Fuyuantai 1,143,184. 1,143,18
Other
Project 20 4.20
2,663,125. 2,663,12
Other projects Other
14 5.14
8,220,011,0 4,528,429, 499,347,853.0 838,481,1 4,867,56
Total -- -- 1,059,684.29 --
00.00 076.71 4 64.49 2,388.16
171
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Disclose main items of “Developing properties” in the following format:
Unit: RMB
Of which:
Accumulative
amount of
Name of Date of Beginning amount of
Increase Decrease Ending balance capitalized
project completion balance capitalized
interests for this
interests
period
SZPRD-Langq
1 December 11,517,19 8,132,833
iao 3,384,362.24
2012 6.11 .87
International
SZPRD-Hupa
64,058,37 -7,428,92 -2,317,60
n Yujing Phase 1 June 2015 58,947,050.77 10,446,911.43
2.70 2.82 0.89
I
SZPRD-Bansh
1 November 29,392,97 2,956,082. 13,564,09
an Yujing 18,784,966.55 27,205,315.95
2016 7.73 10 3.28
Phase I
SZPRD-Songh 27,098,11 1,947,935
1 July 2017 25,150,175.95 30,539,392.65
u Langyuan 1.12 .17
SZPRD-Hupa
1 November 90,059,02 -30,607,0 -20,758,1
n Yujing Phase 80,210,044.87
2017 4.33 95.50 16.04
II
SZPRD-Golde
n Collar’s
1 December 158,235,0 499,347,8 402,758,8
Resort-Buildin 254,824,025.85 25,325,952.00 22,508,124.71
2019 34.42 53.04 61.61
g B and
Building C
International
1 December 4,839,083.
Trade Center 4,839,083.10
1995 10
Plaza
Huangyuyuan 790,140.5
1 June 2001 790,140.58
A Area 8
Podium
Building of 1 November 645,532.6
645,532.65
Fuchang 1999 5
Building
3,728,363. 404,216.8 875,440.5
Other projects 3,257,139.72 83,077,702.96
46 5 9
390,363,8 464,672,1 404,203,4
Total -- 450,832,522.28 176,595,274.99 22,508,124.71
36.20 33.67 47.59
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and
172
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
“Temporary Housing”:
Unit: RMB
Name of
Beginning balance Increase Decrease Ending balance
project
(2) Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Disclosure of falling provision withdrawal of inventory in the following format:
Classification by nature:
Unit: RMB
Increase Decrease
Beginning Ending
Item Reversal or Note
balance Withdrawn Other Other balance
write-off
R&D 6,648,404.
6,648,404.13
expenses 13
Raw 484,117.4
51,185.46 535,302.89
materials 3
Inventory 2,094,300.
2,094,300.39
goods 39
9,226,821.
Total 51,185.46 9,278,007.41 --
95
Classified by nature:
Unit: RMB
Increase Decrease
Name of Beginning Ending
Reversal or Note
project balance Withdrawn Other Other balance
write-off
Hainan
6,648,404.1
Qiongshan 6,648,404.13
3
Land
6,648,404.1
Total 6,648,404.13 --
3
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Name of project Period-begin Reporting Period Carry-over in Period-end
Reporting Period
SZPRD-Banshan Yujing 740,173.97 740,173.97
Phase I
SZPRD-Songhu Langyuan 43,719.57 43,719.57
SZPRD-Langqiao 2,971,986.54 2,971,986.54
173
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
International
SZPRD-Hupan Yujing Phase 1,624,566.49 201,937.59 1,422,628.90
I
SZPRD-Golden Collar’s 3,097,352.86 22,508,124.71 12,865,212.06 12,740,265.51
Resort
Subtotal 8,477,799.43 22,508,124.71 13,851,043.19 17,134,880.95
(4) Inventory restrictions
Disclosing restricted inventory 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 Depreciation Carrying Carrying Depreciation
Carrying value
amount reserves value 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
Withdrawal of the Reversal of the
Item Write-off/verified Reason
Reporting Period Reporting Period
Other notes:
11. Held-for-sale Assets
Unit: RMB
Ending Estimated
Depreciation Ending Estimated
Item carrying Fair value disposal
reserves carrying value disposal time
amount expense
Other notes:
174
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
Actual Actual
Item Coupon Maturity Coupon Maturity
Par value interest Par value interest
rate date rate date
rate rate
Other notes:
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Prepaid VAT 7,467,152.90 34,291,844.93
Deducted input tax 11,705,028.57 8,191,279.34
Prepaid income tax 17,461.67
Prepaid land VAT 28,960,506.43
Prepaid urban construction tax 501,245.53
Prepaid education surcharge 358,032.49
Total 48,991,965.92 42,500,585.94
Other notes:
14. Investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Significant investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Actual Actual
Item Coupon Maturity Coupon Maturity
Par value interest Par value interest
rate date rate date
rate rate
Withdrawal of impairment provision
175
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Unit: RMB
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Bad debt provision Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
2020 in the Reporting —— —— —— ——
Period
Changes of carrying amount with significant amount changed of loss provision in the reporting period
□ Applicable √ Not applicable
Other notes:
15. Other Investments in Debt Obligations
Unit: RMB
Accumulated
Change in provision for
fair value Accumulated losses
Beginning Accrued Ending
Item in the Costs changes in recognized in Note
balance interest balance
Reporting fair value other
Period comprehensive
income
Significant other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Actual Actual
Item Coupon Maturity Coupon Maturity
Par value interest Par value interest
rate date rate date
rate rate
Withdrawal of impairment provision
Unit: RMB
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Bad debt provision Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
2020 in the Reporting —— —— —— ——
Period
Changes of carrying amount with significant amount changed of loss provision in the reporting period
□ Applicable √ Not applicable
Other notes:
176
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
Ending balance Beginning balance
Interval of
Item Carrying Bad debt Carrying Carrying Bad debt Carrying
discount rate
amount provision value amount provision value
Impairment of bad debt provision
Unit: RMB
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Bad debt provision Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
2020 in the Reporting —— —— —— ——
Period
Changes of carrying amount with significant amount changed of loss provision in the reporting period
□ Applicable √ Not applicable
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Long-term
Receivables
Other notes
177
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Beginning Gains and Ending
Adjustment Cash bonus Withdrawal
balance losses Changes balance Ending balance of
Investees Additional Reduced of other or profits of
(carrying recognized of other Other (carrying depreciation reserves
investment investment comprehens announced depreciation
value) under the equity value)
ive income to issue reserves
equity method
I. Joint ventures
Shenzhen Real
Estate Jifa 38,614,77
439,152.26 39,053,923.92
Warehousing 1.66
Co., Ltd.
Shenzhen
Tian’an
International
6,461,351.
Mansion 194,945.81 6,656,296.87
06
Property
Administration
Co., Ltd.
45,076,12
Subtotal 634,098.07 45,710,220.79
2.72
II. Associated enterprises
Shenzhen 18,983,61 18,983,614.1
18,983,614.14
Wufang Pottery 4.14 4
178
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
& Porcelain
Industrial Co.,
Ltd.
Shenzhen
Kangfu Health 165,000.0
165,000.00 165,000.00
Products Co., 0
Ltd.
Shenzhen
Xinghao
756,670.6
Imitation 756,670.68 756,670.68
8
Porcelain Co.,
Ltd.
Shenzhen Social
Welfare
326,693.2
Company Fuda 326,693.24 326,693.24
4
Electronics
Factory
Shenzhen
Fulong Industry 1,684,350.
1,684,350.00 1,684,350.00
Development 00
Co. , Ltd.
Haonianhua 2,733,570.
2,733,570.05 2,733,570.05
Hotel 05
Shenzhen
Education Fund 500,000.0
500,000.00 500,000.00
Longhua 0
Investment
179
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Shenzhen
Kangle Sports 540,060.0
540,060.00 540,060.00
Club Huangfa 0
Branch
Dankeng Village
Plants of Fumin
1,168,973.
in Guanlan 1,168,973.20 1,168,973.20
20
Town, Shenzhen
City
Shenzhen Bull
500,000.0
Entertainment 500,000.00 500,000.00
0
Co., Ltd.
Shenzhen
Lianhua Caitian
1,475,465.
Property 1,475,465.91 1,475,465.91
91
Management
Co., Ltd.
Shenzhen
Yangyuan 1,030,000.
1,030,000.00 1,030,000.00
Industrial Co., 00
Ltd.
Jiakaifeng Co.,
600,000.0
Ltd. Bao’an 600,000.00 600,000.00
0
Company
350,000.0
Guiyuan Garage 350,000.00 350,000.00
0
Shenzhen 500,000.0 500,000.00 500,000.00
180
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Wuweiben Roof 0
Greening Co.,
Ltd.
ShenzhenYuanpi
240,000.0
ng Plastic Steel 240,000.00 240,000.00
0
Doors Co., Ltd.
ShenzhenYoufan
100,000.0
g Printing Co., 100,000.00 100,000.00
0
Ltd.
Shenzhen
Lusheng
100,000.0
Industrial 100,000.00 100,000.00
0
Development
Co., Ltd.
31,754,39 31,754,397.2
Subtotal 31,754,397.22
7.22 2
76,830,51 31,754,397.2
Total 634,098.07 77,464,618.01
9.94 2
Other notes
181
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
18. Other equity instrument investment
Unit: RMB
Item Ending balance Beginning balance
Gintian Industry (Group) Co., Ltd. 1,044,905.12 1,580,475.86
Total 1,044,905.12 1,580,475.86
Non-trading equity instrument investment in the Reporting Period disclosed by items
Unit: RMB
Reason for
Amount of Reason for
assigning to
other other
measure in fair
Dividend comprehensive comprehensive
Name of Accumulative Accumulative value of which
income income income
project gains losses changes
recognized transferred to transferred to
included other
retained retained
comprehensive
earnings earnings
income
Gintian Not aiming at
Industry gaining
2,545,451.19
(Group) Co., earnings by
Ltd. 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
Construction in
Item Houses and buildings Land use right Total
progress
I. Original carrying
value
1. Beginning balance 813,946,283.50 30,262,437.05 21,830,409.39 866,039,129.94
182
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
2. Increased amount of
16,353,757.18 11,489,350.36 27,843,107.54
the period
(1) Outsourcing 11,489,350.36 11,489,350.36
(2) Transfer from
inventories/fixed
14,410,282.68 14,410,282.68
assets/construction in
progress
(3) Enterprise
combination increase
4. Others 1,943,474.50 1,943,474.50
3. Decreased amount
23,813,335.30 23,813,335.30
of the period
(1) Disposal 16,874,291.98 16,874,291.98
(2) Other transfer 1,197,548.71 1,197,548.71
(3) Exchange
748,262.70 748,262.70
adjustment
4. Others 4,993,231.91 4,993,231.91
4. Ending balance 806,486,705.38 30,262,437.05 33,319,759.75 870,068,902.18
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 345,223,823.39 14,815,343.57 2,676,534.37 362,715,701.33
2. Increased amount of
28,936,867.75 527,566.50 4,366,082.76 33,830,517.01
the period
(1) Withdrawal or
27,087,701.73 527,566.50 4,366,082.76 31,981,350.99
amortization
(2) Others 1,849,166.02 1,849,166.02
3. Decreased amount
11,215,822.99 11,215,822.99
of the period
(1) Disposal 9,367,302.16 9,367,302.16
(2) Other transfer 1,137,671.27 1,137,671.27
(3) Exchange
710,849.56 710,849.56
adjustment
4. Ending balance 362,944,868.15 15,342,910.07 7,042,617.13 385,330,395.35
III. Depreciation
reserves
183
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
443,541,837.23 14,919,526.98 26,277,142.62 484,738,506.83
value
2. Beginning carrying
468,722,460.11 15,447,093.48 19,153,875.02 503,323,428.61
value
(2) Investment Property Adopting the Fair Value Measurement Mode
□ Applicable √ Not applicable
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
Investment properties measured in fair value by project disclosure:
Unit: RMB
Lease
income Range of fair
Geographic Date of Building Beginning Ending Reason for fair value
Name of project during this value
location completion area fair value fair value changes and report index
Reporting changes
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
02-01 plot of Statutory plan in Baolong 9,013,112.34 Replaced from the construction of
184
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
East Area Xiamen-Shenzhen Railway, and hasn’t
exchanged for the new certification
Obtained after the success in the last
Meilin land 0.00 instance in 2017, relevant certifications
of property are in the procedure [note 1]
The house is used for property
management, once occupied by the third
507 units, Block No. 6, Maguling 20,608.61 party, a property management company,
now has been recovered, but hasn’t
handled the warrant yet.
Subtotal 13,246,672.70
Other notes
[Note 1] As of 31 December 2020, with regard to the Meilin land, the gross amount was RMB3,885,469.40, the cumulative
depreciation was RMB3,885,469.40, and the carrying amount was RMB0.
21. Fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 116,233,936.04 93,557,782.83
Total 116,233,936.04 93,557,782.83
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Decoration of Other
Item Transportation Total
buildings equipment the fixed assets equipment
I. Original
carrying value
1. Beginning
160,964,738.86 965,877.00 14,203,435.60 16,304,309.37 33,934,422.85 226,372,783.68
balance
2. Increased
amount of the 1,547,351.71 3,967,320.00 1,630,549.05 42,999,040.72 12,833,497.84 62,977,759.32
period
(1) Purchase 187,320.00 1,630,549.05 2,225,259.53 5,348,684.10 9,391,812.68
(2) Transfer
from
3,780,000.00 23,016,667.70 26,796,667.70
construction in
progress
(3) Enterprise
185
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
combination
increase
4. Others 1,547,351.71 17,757,113.49 7,484,813.74 26,789,278.94
3. Decreased
amount of the 1,584,535.32 857,501.65 25,241,927.23 4,237,649.51 31,921,613.71
period
(1) Disposal or
857,501.65 4,181,519.54 5,039,021.19
scrap
(2) Exchange
346,283.53 346,283.53
adjustment
(3) Others 1,238,251.79 25,241,927.23 56,129.97 26,536,308.99
4. Ending
160,927,555.25 4,933,197.00 14,976,483.00 34,061,422.86 42,530,271.18 257,428,929.29
balance
II.
Accumulative
depreciation
1. Beginning
101,569,557.74 24,064.14 9,779,304.95 815,215.47 20,551,141.39 132,739,283.69
balance
2. Increased
amount of the 4,982,612.30 195,621.04 1,068,162.08 5,390,567.94 4,103,430.91 15,740,394.27
period
(1) Withdrawal 3,844,941.03 195,621.04 1,068,162.08 4,517,454.59 3,734,694.51 13,360,873.25
(2) Others 1,137,671.27 873,113.35 368,736.40 2,379,521.02
3. Decreased
amount of the 1,491,097.31 807,303.83 1,241,849.75 3,820,150.98 7,360,401.87
period
(1) Disposal or
807,303.83 3,816,978.00 4,624,281.83
scrap
(2) Exchange
314,758.11 314,758.11
adjustment
(3) Others 1,176,339.20 1,241,849.75 3,172.98 2,421,361.93
4. Ending
105,061,072.73 219,685.18 10,040,163.20 4,963,933.66 20,834,421.32 141,119,276.09
balance
III.
Depreciation
reserves
1. Beginning
75,717.16 75,717.16
balance
2. Increased
186
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal or
scrap
4. Ending
75,717.16 75,717.16
balance
IV. Carrying
value
1. Ending
55,866,482.52 4,713,511.82 4,936,319.80 29,097,489.20 21,620,132.70 116,233,936.04
carrying value
2. Beginning
59,395,181.12 941,812.86 4,424,130.65 15,489,093.90 13,307,564.30 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
Item Ending carrying value
(5) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
187
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Item Carrying value Reason
Property right disputes before, now has
Room 406, 2 units, Hulunbuir Guangxia
2,756,744.14 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
Room 401, 402, Sanxiang Business nearby the present address. The existing
806,859.50
Building Office Building property shall be replaced after the
completion of the new office building.
Thus, the certification of the property is
failed to transact.
Subtotal 3,563,603.64
Other notes
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes
22. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Proportion of Of which: Capitalization
Other Accumulative
Name Transferred accumulated Amount of rate of
Beginning decrease Ending Job amount of Capital
of Budget Increase in fixed investment capitalized interests for
balance for this balance schedule capitalized resources
project assets in interests the Reporting
period interests
constructions for the Period
188
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
to budget Reporting
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 Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserves value amount reserves value
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:
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
189
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Non-patent
Item Land use right Patent right Software use right Total
technology
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 R&D
(3) Enterprise
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 218,320.15 218,320.15
period
(1) Withdrawal 218,320.15 218,320.15
3. Decreased
amount of the
period
(1) Disposal
4. Ending balance 752,338.15 752,338.15
III. Depreciation
reserves
190
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
1. Beginning
balance
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
482,049.51 482,049.51
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 0.00%.
(2) Land Use Right Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes:
27. Development Costs
Unit: RMB
Increase Decrease
Beginning Recognized Transfer to Ending
Item Internal
balance Other as intangible current gains balance
development
assets and losses
Total
Other notes
191
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the Increase Decrease
invested units
Beginning Formed by
or events Ending balance
balance business Disposal
generating
combination
goodwill
Total
(2) Depreciation Reserves of Goodwill
Unit: RMB
Name of the Increase Decrease
invested units
Beginning
or events Ending balance
balance Withdrawn Disposal
generating
goodwill
Total
Information on the assets group or combination of assets groups which goodwill belongs to
Notes of the testing process of goodwill impairment, 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 Increase amount of the Ending balance
amount
period
Renovation costs 6,446,136.79 8,615,879.18 3,199,299.83 11,862,716.14
Rental fees 588,336.00 588,336.00
Total 7,034,472.79 8,615,879.18 3,787,635.83 11,862,716.14
Other notes
192
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
152,217,586.91 36,392,566.23 157,586,654.91 38,312,198.03
impairment of assets
Unrealized profit of
28,484,507.52 7,121,126.86 49,316,338.72 12,329,084.68
internal transactions
Deductible losses 1,340,927,414.29 334,560,251.68 162,281,053.40 40,570,263.35
Accrued land VAT 1,979,350,706.70 494,837,676.67 2,148,670,831.53 537,167,707.90
Estimated profit
calculated at pre-sale
307,175,110.51 76,793,777.63 119,095,335.72 29,773,833.93
revenue of property
enterprises
Advertising expenses 1,272,210.76 318,052.69
Other accrued
4,548,732.57 657,793.74
expenses
Payroll payable unpaid
139.36 34.84
but withdrawn
Total 3,813,976,269.26 950,681,245.50 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 Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
The carrying value of
fixed assets was larger 1,048.80 262.20 15,284.32 3,821.08
than the tax basis
Total 1,048.80 262.20 15,284.32 3,821.08
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
193
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Mutual set-off amount Ending balance of Mutual set-off amount Beginning balance of
of deferred income tax deferred income tax of deferred income tax deferred income tax
Item
assets and liabilities at assets or liabilities assets and liabilities at assets or liabilities
the period-end after off-set the period-begin after off-set
Deferred income tax
950,681,245.50 658,153,122.73
assets
Deferred income tax
262.20 3,821.08
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 61,255,144.06 60,809,797.81
Deductible losses 201,769,872.08 187,768,845.36
Total 263,025,016.14 248,578,643.17
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Note
Y2019 7,443.23 The deductible losses of 2014
Y2020 8,494.90 The deductible losses of 2015
Y2021 3,456.91 The deductible losses of 2016
Y2022 55,165,608.46 62,919,255.68 The deductible losses of 2017
Y2024 124,830,194.64 124,830,194.64 The deductible losses of 2019
Y2025 21,774,068.98 The deductible losses of 2020
Total 201,769,872.08 187,768,845.36 --
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, 867,619.1 4,711,963. 4,711,96
867,619.10
investment properties and intangible 0 66 3.66
194
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
assets
696,455.2
Other 696,455.24
4
1,564,074. 1,564,074 4,711,963. 4,711,96
Total
34 .34 66 3.66
Other notes:
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of short-term borrowings category:
(2) List of the Short-term Borrowings Overdue but not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was RMB , of which the significant overdue unpaid
short-term borrowings are as follows:
Unit: RMB
Entity Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Of which:
Other notes:
34. Derivative Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
35. Notes Payable
Unit: RMB
195
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Item Ending balance Beginning balance
The total amount of notes payable due but unpaid was RMB XXX.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Engineering construction expense
334,297,738.31 420,433,422.07
payable
Accrued expenses 46,894,644.22 90,484,298.98
Other 87,077,303.12 66,771,418.05
Total 468,269,685.65 577,689,139.10
(2) Significant Accounts Payable Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
China Construction Fourth Engineering
91,604,763.90 Unsettled
Division Corp., Ltd.
Shenzhen Planning Bureau of Land
25,000,000.00 Historical problems
Resources
The Second Construction Company Ltd.
of China Construction Third Engineering 14,657,519.42 Unsettled
Bureau
Shenzhen Hongtao Group Co., Ltd. 8,425,583.78 Unsettled
Shenzhen Ruihe Construction &
8,180,740.76 Unsettled
Decoration Co., Ltd.
Total 147,868,607.86 --
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
196
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Rent 473,274.48 516,988.76
Total 473,274.48 516,988.76
(2) Significant Advances from Customers Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
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 proceeds information of top five advance sale amount:
38. Contract Liabilities
Unit: RMB
Estimated date of Advance sale
S/N Name of project Beginning balance Ending balance
completion proportion
Golden Collar’s
1 Resort Building 358,877,583.81 557,454,007.62 25 December, 2019 80.54%
B/C
Banshan Yujing
2 247,769,597.25 64,990,744.95 31 March, 2020 90.67%
Phase II
Banshan Yujing
3 20,523,809.52 13,507,405.72 30 November, 2016 100.00%
Phase I
HupanYujing
4 5,766,348.62 5,850,395.41 30 November, 2017 86.80%
Phase II
HupanYujing
5 128,440.37 91,743.12 1 June 2015 86.39%
Phase I
Unit: RMB
Item Ending balance Beginning balance
House payment in advance 633,340,922.42 657,977,482.24
Property fee in advance 13,124,519.01 10,572,288.04
Other payment in advance 20,428,188.29 21,993,810.67
Total 666,893,629.72 690,543,580.95
Significant changes in amount of carrying value and the reason in the Reporting Period
Unit: RMB
Item Amount changed Reason
Golden Collar’s Resort 198,576,423.81 Golden Collar’s Resort Building B/C received the sales return
197
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Building B/C and carried forward the income.
Total 198,576,423.81 ——
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 141,448,850.23 676,721,649.24 642,788,460.56 175,382,038.91
II. Post-employment
benefit-defined 1,921,102.65 21,148,241.17 21,261,185.37 1,808,158.45
contribution plans
III. Termination
123,915.92 592,872.83 716,788.75
benefits
Total 143,493,868.80 698,462,763.24 664,766,434.68 177,190,197.36
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
127,467,198.54 599,497,889.31 566,041,720.26 160,923,367.59
allowance, subsidy
2. Employee welfare 179,903.05 24,307,049.83 22,717,286.25 1,769,666.63
3. Social insurance 309,821.38 15,124,241.03 15,211,021.61 223,040.80
Of which: Medical
307,218.00 13,472,063.18 13,556,240.38 223,040.80
insurance premiums
Work-related injury
202,038.26 202,038.26
insurance
Maternity insurance 2,603.38 958,192.93 960,796.31
Other commercial
491,946.66 491,946.66
insurance
4. Housing fund 552,529.86 18,768,120.78 18,811,139.67 509,510.97
5. Labor union budget
and employee 12,939,397.40 12,280,851.65 13,263,796.13 11,956,452.92
education budget
8. Non-monetary
6,743,496.64 6,743,496.64
welfare
Total 141,448,850.23 676,721,649.24 642,788,460.56 175,382,038.91
198
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
168,430.00 9,240,950.41 9,409,380.41
benefits
2. Unemployment
213,627.75 213,627.75
insurance
3. Annuity 1,752,672.65 11,693,663.01 11,638,177.21 1,808,158.45
Total 1,921,102.65 21,148,241.17 21,261,185.37 1,808,158.45
Other notes:
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 47,751,975.47 70,818,175.32
Corporate income tax 448,111,036.28 368,461,498.66
Personal income tax 4,826,634.10 1,556,780.71
Urban maintenance and construction tax 3,165,158.73 3,668,311.19
Land VAT 1,979,388,881.01 2,149,507,199.99
Land use tax 941,099.10 942,757.19
Property tax 447,199.94 526,309.33
Education surcharge 1,372,723.27 1,592,152.99
Local education surcharge 918,545.34 1,067,591.60
Other 289,726.13 142,514.70
Total 2,487,212,979.37 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 834,939,937.05 1,136,902,252.81
Total 847,142,613.09 1,149,104,928.85
199
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(1) Interest payable
Unit: RMB
Item Ending balance Beginning balance
List of the significant overdue unpaid interest:
Unit: RMB
Entity Overdue amount Overdue reason
Other notes:
(2) Dividends payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 12,202,676.04 12,202,676.04
Total 12,202,676.04 12,202,676.04
Other notes, including significant dividends payable unpaid for over 1 year, the unpaid reason shall be disclosed:
Significant Other Payables Aged over 1 Year
Item Amount unpaid Unpaid reason
Shenzhen South China Investment Development Co., 9,871.20 Without access to its account
Ltd.
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) 0.18 Without access to its account
Co., Ltd.
Shenzhen Greening Department 10,869,036.68 Company restructured without clearing payment
object
Labor Union of Shenzhen Greening Department 1,300,000.00 Company restructured without clearing payment
object
Shenzhen Sports Administration 3,996.96 Final payment unpaid
Total 12,202,676.04
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Margin 236,714,842.73 201,013,437.65
200
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Cash deposit 18,041,272.10 51,062,427.71
Residual funds of equity transfer unpaid 465,807,569.82
Agency fund 12,818,680.31 7,531,813.31
Intercourse fund 426,354,105.87 316,244,391.26
Accrued expenses 93,276,622.77 64,684,769.05
Payments on behalf 14,038,360.90 9,235,637.59
Other 33,696,052.37 21,322,206.42
Total 834,939,937.05 1,136,902,252.81
2) Significant Other Payables Aged over 1 Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Shenzhen Pason Aluminum Technology Did not submit the payment application
198,352,106.44
Co., Ltd. due to redundant reasons
Shenzhen Real Estate Jifa Warehousing Come-and-go accounts without specific
35,796,665.14
Co., Ltd. payment term
Shenzhen Tian’an International Mansion Come-and-go accounts without specific
5,214,345.90
Property Administration Co., Ltd. payment term
Shenzhen Social Commonweal
3,323,202.00 Did not submit the payment application
Foundation
Rainbow Co., Ltd. 2,380,000.00 Margin within the leasing period
Total 245,066,319.48 --
Other notes
42. Held-for-sale Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 36,722,824.88 3,921,032.24
Total 36,722,824.88 3,921,032.24
Other notes:
201
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Taxes to be written off 43,354,691.51 37,125,462.92
Total 43,354,691.51 37,125,462.92
Increase/decrease of the short-term bonds payable:
Unit: RMB
Amortization Repayment
The Withdrawal
Bonds Par Issuing Issuing Beginning of premium in the Ending
Duration current of interest by
name value date amount balance and Reporting balance
issue par value
depreciation Period
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged borrowings 2,999,600,000.00 2,192,900,000.00
Mortgage loan 3,000,000.00
Guaranteed borrowings 933,000.00
Credit borrowings 585,200,000.00
Total 3,587,800,000.00 2,193,833,000.00
Notes to the category of long-term borrowings:
Other notes, including the interval of interest rate:
The pledged 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 pledged borrowings at the period-end were used for the daily operating activities of ShenZhen Properties & Resources
Development (Group) Ltd. (hereinafter referred to as the Company) with the duration from 27 November 2020 to 27 November 2023,
applying a floating interest rate. The first-phase execution interest rate was 4.655%, and the pledge was the land use right of Fumin
New Village in Futian District of the Company.
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
202
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Amorti
Repay
Withdr zation
ment in
Beginni The awal of of
Bonds Par Issuing Duratio Issuing the Ending
ng current interest premiu
name value date n amount Reporti balance
balance issue by par m and
ng
value depreci
Period
ation
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
Outstandin Period-begin Increase Decrease Period-end
g financial Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
instrument value value value value
Notes to basis for the classification of other financial instruments as financial liabilities
Other notes
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes
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:
203
ShenZhen Properties & Resources Development (Group) Ltd. Annual 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:
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Cai Baolin's lawsuit on the
Pending litigation 2,396,947.00 2,903,327.87
residual value of decoration
Total 2,396,947.00 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
341,259.63 341,259.63 0.00
grants
Total 341,259.63 341,259.63 --
Item involving government grants:
Unit: RMB
Amount
recorded Amount
into recorded Amount
Related to
Amount of non-operat into other offset cost
Beginning Other Ending assets/relat
Item newly ing income in in the
balance changes balance ed to
subsidy income in the Reporting
income
the Reporting Period
Reporting Period
Period
Governme
nt grants
for
341,259.6 Related to
Huangyuy 341,259.63
3 assets
uan
Primary
School
341,259.6
Total 341,259.63
3
204
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Utility specific fund 490,603.18 237,163.63
Housing principle fund 16,825,921.62 13,215,811.13
House warming deposit 6,925,380.49 7,052,274.22
Electric Equipment Maintenance fund 4,019,415.44 4,019,415.44
Deputed maintenance fund 34,453,351.12 36,337,634.47
Follow-up investment of employees for
40,000,000.00 40,000,000.00
Guanlan Bangling project
Other 6,063,655.60 7,302,438.57
Total 108,778,327.45 108,164,737.46
Other notes:
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Ending
New shares Bonus issue
balance Bonus shares Other Subtotal balance
issued from profit
The sum of 595,979,092. 595,979,092.
shares 00 00
Other notes:
Other notes:
(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
Outstandin Period-begin Increase Decrease Period-end
g financial Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
instruments value value value value
The current changes in other equity instruments and the corresponding reasons and the basis of the relevant accounting treatment
Other notes:
55. Capital Reserve
Unit: RMB
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:
205
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less:
Recorde
Less: d into
Recorded other
in other compreh
Attribut
comprehen ensive
Income able to Attribut
sive income Endin
before Less: owners able to
Beginning income in in prior g
Item taxation Income of the non-con
balance prior period balanc
in the tax Compan trolling
period and and e
Current expense y as the interests
transferred transferr
Period parent after tax
in profit or ed in
after tax
loss in the retained
Current earnings
Period in the
Current
period
I. Other comprehensive income
-2,051,26 -494,18 -494,18 -2,545,
that may not be reclassified to
8.24 2.95 2.95 451.19
profit or loss
Changes in fair value of
-2,051,26 -494,18 -494,18 -2,545,
other equity instrument
8.24 2.95 2.95 451.19
investment\
II. Other comprehensive income
-647,103. -3,557,0 -3,557,0 -4,204,
that may subsequently be
20 35.02 35.02 138.22
reclassified to profit or loss
Differences arising from
translation of foreign currency -647,103. -3,557,0 -3,557,0 -4,204,
denominated financial 20 35.02 35.02 138.22
statements
Total of other comprehensive -2,698,37 -4,051,2 -4,051,2 -6,749,
income 1.44 17.97 17.97 589.41
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus 16,695,044.92 2,145,531.58 18,840,576.50
206
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
reserves
Discretionary surplus
365,403.13 365,403.13
reserve
Total 17,060,448.05 2,145,531.58 19,205,979.63
Notes, including changes and reason of change:
The increase in surplus reserve in the current period is the statutory surplus reserve provided at 10% of net profit.
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
Add: Net profit attributable to owners of the
798,572,121.74 817,805,780.12
Company as the parent
Less: Appropriate statutory surplus reserve 2,802,342.02 16,403,637.61
Dividend of ordinary shares payable 214,552,473.12 178,793,727.60
Other -656,810.44 660,785,059.67
Ending retained earnings 3,038,993,912.43 2,457,119,795.39
List of adjustment of beginning retained earnings:
1) RMBXXX beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
2) RMBXXX beginning retained earnings was affected by changes in accounting policies.
3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.
4) RMBXXX beginning retained earnings was affected by changes in combination scope arising from same control.
5) RMBXXX beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 3,970,087,178.43 1,355,179,663.50 3,878,813,785.99 1,412,220,130.41
Other operations 134,287,467.59 31,530,576.04 82,856,156.45 21,395,755.02
Total 4,104,374,646.02 1,386,710,239.54 3,961,669,942.44 1,433,615,885.43
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□ Yes √ No
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product Types 4,104,374,646.02 4,104,374,646.02
Of which:
Real estate business 2,895,323,736.80 2,895,323,736.80
Property management 1,070,094,746.33 1,070,094,746.33
Leasing business 138,956,162.89 138,956,162.89
207
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Classified by business
4,104,374,646.02 4,104,374,646.02
area
Of which:
Shenzhen 3,718,740,286.40 3,718,740,286.40
Other areas 385,634,359.62 385,634,359.62
Of which:
Of which:
Of which:
Of which:
Of which:
Information related to performance obligations:
On 31 December 2020, the transaction price assigned to unfulfilled (or partially unfulfilled) performance obligations was estimated
to RMB667 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 year 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 RMB667,344,367.32 at the period-end, among which RMB667,344,367.32 was expected to be recognized in 2021, RMBXXX
in XXX year 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 2,740,747,887.62
2 Huangyuyuan 82,739,428.57
3 Songhu Langyuan 18,585,235.82
4 Banshan Yujing Phase I 18,021,691.42
5 Hupan Yujing Phase I, II 14,842,021.18
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 14,940,404.05 13,199,586.55
Education Surcharge 6,420,882.98 5,689,568.83
Resource tax 104,316.94
Property tax 10,257,159.82 10,984,861.45
Land use tax 1,310,782.19 1,647,805.28
Business tax 41,966.40
Local education surtax 4,278,425.22 3,716,788.54
Land VAT 1,273,927,485.51 1,043,898,373.56
Other taxes 2,171,122.31 2,269,979.89
208
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Total 1,313,348,228.48 1,081,511,281.04
Other notes:
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Agency fee 7,676,210.19 84,330,766.24
Consultancy and sales service charges 10,939,043.07 8,639,346.44
Advertising 10,794,534.19 6,975,770.00
Employee benefits 5,534,877.38 3,847,637.11
Other 9,808,582.35 7,760,432.71
Total 44,753,247.18 111,553,952.50
Other notes:
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 166,493,999.24 143,843,884.07
Administrative office cost 35,213,262.38 38,579,803.69
Assets amortization and depreciation
10,987,180.16 6,357,837.46
expense
Litigation costs 482,904.31 1,596,900.60
Other 25,447,797.22 14,276,126.82
Total 238,625,143.31 204,654,552.64
Other notes:
65. Development Expense
Unit: RMB
Item Reporting Period Same period of last year
Other notes:
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 182,930,469.55 194,545,794.14
Less: Interest income -72,357,101.87 -61,860,403.42
Foreign exchange gains or losses -421,264.01 770,739.07
Other 1,111,455.13 1,262,703.78
Total 111,263,558.80 134,718,833.57
Other notes:
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Government grants related to income
6,837,267.10 1,015,033.29
[Note]
Government grants related to assets
341,259.63 48,751.37
[Note]
209
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Commission charges return of deductible
94,284.37 91,337.56
income tax
Additional deduction of VAT 5,476,769.70 3,995,255.21
Other 55,729.95
Total 12,770,810.75 5,150,377.43
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
634,098.07 5,076,839.48
accounted by equity method
Total 634,098.07 5,076,839.48
Other notes:
69．Net Gain on Exposure Hedges
Unit: RMB
Item Reporting Period Same period of last year
Other notes:
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Other notes:
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss 4,623,356.81 -18,701,016.31
Total 4,623,356.81 -18,701,016.31
Other notes:
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and
-51,185.46 -1,234,250.84
contract performance cost
Total -51,185.46 -1,234,250.84
Other notes:
73. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Income from disposal of fixed assets 2,311.70
Total 2,311.70
74. Non-operating Income
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit
or loss
210
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Government grants 34,500.00 1,543,085.40 34,500.00
Gains on damage and scrap
2,000.00 70,145.12 2,000.00
of non-current assets
Compensation income 759,208.33 537,474.45 759,208.33
Accounts unpayable 689,801.09 19,416,063.33 689,801.09
Other 10,212,151.81 2,165,579.98 10,212,151.81
Total 11,697,661.23 23,732,348.28 11,697,661.23
Government grants recorded into current profit or loss
Unit: RMB
Whether
influence Related to
Special Same
Distributio Distributio the profits Reporting assets/relat
Item Nature subsidy or period of
n entity n reason or losses of Period ed to
not last year
the year or income
not
Obtained
by
undertakin
g state’s
functions
Social
of ensuring
Security
certain
Difficult Bureau of Related to
Subsidy public No No 718,712.26
subsidies Jiulongpo income
service or
District,
social
Chongqing
necessary
products
supply or
price
control
Obtained
by
undertakin
g state’s
Chongqing functions
Public
Beibei of ensuring
rental
Financial certain Related to
housing Subsidy No No 777,708.00
Treasury public income
decoration
Payment service or
subsidies
Center social
necessary
products
supply or
price
211
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
control
Obtained
by
undertakin
g state’s
functions
of ensuring
certain
Related to
Other Subsidy public No No 34,500.00 36,665.14
income
service or
social
necessary
products
supply or
price
control
Other notes:
75. Non-operating Expense
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit
or loss
Donation 476,485.29 35,000.00 476,485.29
Loss of non-current assets
275,730.01 510,294.93 275,730.01
damaged and scrapped
Litigation expenses 2,396,947.00 1,696,470.00 2,396,947.00
Penalty and fine for delaying
237,572.81 128,035.72 237,572.81
payment
Other 1,857,594.39 2,423,703.20 1,857,594.39
Total 5,244,329.50 4,793,503.85 5,244,329.50
Other notes:
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 588,275,917.87 400,037,961.67
Deferred income tax expense -285,506,835.29 -137,321,780.76
Total 302,769,082.58 262,716,180.91
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 1,034,106,952.31
Current income tax expense accounted at statutory/applicable 258,437,901.32
212
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
tax rate
Influence of applying different tax rates by subsidiaries -224,819.33
Influence of income tax before adjustment -4,500,274.91
Influence of non-deductible costs, expenses and losses 33,187,291.63
The effect of using deductible losses of deferred income tax
-7,327,696.02
assets that have not been recognized in the previous period
Influence of deductible temporary difference or deductible
losses of unrecognized deferred income tax in the Reporting 21,774,068.98
Period
The tax rate adjustment results in changes in the balance of
1,422,610.91
deferred tax assets/liabilities at the beginning of the period
Income tax expense 302,769,082.58
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 225,792,047.12 599,052,281.39
Interest income 46,807,781.51 70,613,994.05
Security deposit and various special
83,064,444.34 31,810,440.56
funds received
Government subsidy received 7,178,526.73 2,751,444.45
Other small receivables 39,131,506.62 23,385,374.43
Total 401,974,306.32 727,613,534.88
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Paying administrative expense in cash 62,579,627.01 54,452,831.11
Paying selling expense in cash 39,218,369.80 96,486,380.21
Net amount of utilities, miscellaneous
fees and accident fee and other payments 26,822,888.41 23,473,862.52
on behalf
Other small payments 36,328,299.98 10,912,680.02
Total 164,949,185.20 185,325,753.86
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
213
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Follow-up investment of Guanlan
40,000,000.00
Bangling project
Total 40,000,000.00
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Distribution of profit to original
shareholder by merged company under 123,502,169.51
the same control
Cash paid in current period due to
business consolidation occurring in 465,807,569.82
previous period
Total 465,807,569.82 123,502,169.51
Notes:
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 731,337,869.73 742,130,050.54
Add: Provision for impairment of assets -4,572,171.35 20,061,463.19
Depreciation of fixed assets, oil-gas assets,
45,342,224.24 49,096,658.15
and productive living assets
Depreciation of right assets
Amortization of intangible assets 218,320.15 204,396.36
Amortization of long-term prepaid
3,787,635.84 2,254,888.85
expenses
Los on disposal of fixed assets, intangible
assets and other long-term assets (gains: -2,311.70
negative)
Losses on scrap of fixed assets (gains:
273,730.01 440,149.81
negative)
Loss from fair value change (gains:
negative)
214
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Finance costs (gains: negative) 183,674,281.47 194,530,915.83
Investment loss (gains: negative) -634,098.07 -5,250,050.75
Decrease in deferred income tax assets
-292,528,122.77 -137,320,326.24
(gains: negative)
Increase in deferred income tax liabilities
-3,558.88 -1,454.52
(“-” means decrease)
Decrease in inventory (gains: negative) -391,011,344.87 -1,903,681,041.67
Decrease in accounts receivable generated
150,130,667.50 458,314,454.42
from operating activities (gains: negative)
Increase in accounts payable used in
-40,515,339.18 1,519,009,461.99
operating activities (decrease: negative)
Other
Net cash generated from/used in operating
385,497,782.12 939,789,565.96
activities
2.Significant investing and financing
activities without involvement of cash -- --
receipts and payments
Conversion of debt into capital
Convertible corporate bonds due within
one year
Fixed assets under financing lease
3. Net increase/decrease of cash and cash
-- --
equivalent:
Ending balance of cash 4,168,154,911.83 3,285,345,233.47
Less: Beginning balance of cash 3,285,345,233.47 3,881,027,257.89
Add: Ending balance of cash equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents 882,809,678.36 -595,682,024.42
(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
465,807,569.82
for previous enterprise combination
Of which: --
Shenzhen International Trade Science Park Service Co., Ltd.
(formerly known as Shenzhen Investment Property Management 465,807,569.82
Co., Ltd.)
Net payments for acquisition of subsidiaries 465,807,569.82
Other notes:
215
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 4,168,154,911.83 3,285,345,233.47
Including: Cash on hand 96,389.26 130,048.49
Bank deposit on demand 4,167,907,417.88 3,272,524,570.94
Other monetary assets on demand 151,104.69 12,690,614.04
III. Ending balance of cash and cash
4,168,154,911.83 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:
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Note 1, Note 2, Note 3, Note 4, Note 5,
Monetary assets 38,111,717.49
Note 6
Land use right of Fumin New Village,
542,507,314.43 Note 7
Futian District
Total 580,619,031.92 --
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
RMB11,031.58 in the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd. Refer to Note XI-(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 escrow margin amount with
RMB44,554.35 in the catering branch of the subsidiary company Shandong Shenguomao Real Estate Management Co., Ltd.
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 RMB1,148,647.30 according to real
estate business practices. Refer to Note XI-(II) 2 for details.
Note 4: In terms of monetary assets with restricted right to use at the period-end, there was payment guarantee of RMB
11,213,310.06 signed by the Company's subsidiary SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd. and Jiangsu Hanjian
Group Co., Ltd. on 1 June 2020, of which the principal was RMB 11,075,002.60 and the interest was RMB 138,307.46. The number
of the payment guarantee was Xingyin Xubao (2020) 25.
Note 5: In terms of monetary assets with restricted right to use at the period-end, there was interest of fixed time deposit of
RMB25,394,174.20 undue but withdrawn at the period-end.
Note 6: In terms of monetary assets with restricted right to use at the period-end, there was letter of guarantee of RMB 300,000.00
issued by Shenzhen Property Engineering and Construction Supervision Co., Ltd. for project bidding for supervision service of
216
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Shenzhen Rongyao Real Estate Development Co., Ltd. phase II urban renewal unit project of Bangling Area, Guanlan Street,
Longhua District in 2020.
Note 7: Due to the needs of daily business activities, the company applied for loan from Bank of Communications, Shenzhen Branch
to mortgage the land use right of Fumin New Village, Futian District. The term of the loan was from 27 November 2020 to 27
November 2023. The interest rate of the loan was floating, and the first execution interest rate was 4.655%.
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 -- -- 51,762,160.28
Of which: USD
EUR
HKD 61,504,468.01 0.8416 51,762,160.28
Prepayment 8,102.52 6,819.08
Of which: HKD 8,102.52 0.8416 6,819.08
Other payables 15,033.42 12,652.13
Of which: HKD 15,033.42 0.8416 12,652.13
Accounts receivable -- --
Of which: USD
EUR
HKD
Long-term borrowings -- --
Of which: USD
EUR
HKD
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 Recording
Item Basis for choosing
operating place currency
Shum Yip Properties Development Co., Ltd. Hong Kong HKD Located in HK, settled by HKD
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
217
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Amount recorded in the
Category Amount Listed items
current profit or loss
Subsidy of epidemic
3,077,722.82 Other income 3,077,722.82
prevention
Stable post subsidy 2,806,695.19 Other income 2,806,695.19
Real estate tax refund from
380,742.93 Other income 380,742.93
rent calculation
Subsidy income of
Huangyuyuan Primary 341,259.63 Other income 341,259.63
School and Kindergarten
Purchase subsidy 148,409.59 Other income 148,409.59
New apprenticeship training
100,000.00 Other income 100,000.00
subsidy for enterprises
Water supply subsidy 94,605.93 Other income 94,605.93
Small and micro
77,869.39 Other income 77,869.39
businessesVAT exemption
Other subsidies 116,721.25 Other income 116,721.25
Other subsidies 34,500.00 Non-operating income 34,500.00
Total 7,178,526.73 7,178,526.73
(2) Return of Government Grants
□ Applicable √ Not applicable
Other notes:
85. Other
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Unit: RMB
Income of Net profits
Time and Recognitio acquiree of acquiree
Cost of Way to
Name of place of Proportion Purchase n basis of from the from the
gaining the gain the
acquiree gaining the of equity date purchase purchase purchase
equity equity
equity date date to date to
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:
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
218
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
Income Net profits
from the from the Income of Net profits
Recognitio period-begi period-begi the of the
Proportion
Combined Combinati n basis of n to the n to the acquiree acquiree
of the Basis
party on date combinatio combinatio combinatio during the during the
equity
n date n date of n date of period of period of
the 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:
(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:
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:
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
219
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and relevant
information:
Increase in combination scope
Name of company Way to gain Time and place of Capital contribution Proportion
equity gaining equity
SZPRD Fuyuantai Development Co., Newly-establishe 20 August 2020 10,000,000.00 100%
Ltd. d subsidiary
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Registration Nature of Holding percentage (%)
Name Way of gaining
place place business Directly Indirectly
Shenzhen
Huangcheng
Shenzhen Shenzhen Real estate 100.00% Set-up
Real Estate
Co., Ltd.
Shenzhen
Wuhe Industry
Investment
Shenzhen Shenzhen Real estate 100.00% Set-up
Development
Co., Ltd. [Note
1]
PRD Group
Xuzhou
Dapeng Real
Xuzhou Xuzhou Real estate 100.00% Set-up
Estate
Development
Co., Ltd.
Dongguan
International
Trade Center
Changsheng Dongguan Dongguan Real estate 100.00% Set-up
Real Estate
Development
Co., Ltd.
PRD Yangzhou
Real Estate
Yangzhou Yangzhou Real estate 100.00% Set-up
Development
Co., Ltd.
Shenzhen Shenzhen Shenzhen Real estate 100.00% Set-up
220
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
International
Trade Center
Property
Management
Co., Ltd.
Shenzhen
Guomao
Meishenghuo Shenzhen Shenzhen Real estate 100.00% Set-up
Service Co.,
Ltd. [Note 2]
Shandong
Shenzhen
International
Trade Center Jinan Jinan Real estate 100.00% Set-up
Property
Management
Co., Ltd.
Chongqing
Shenzhen
International
Trade Center Chongqing Chongqing Real estate 100.00% Set-up
Property
Management
Co., Ltd.
Chongqing
Aobo Elevator Chongqing Chongqing Service 100.00% Set-up
Co., Ltd.
Chongqing
Tianque
Elevator Shenzhen Shenzhen Service 100.00% Set-up
Technology
Co., Ltd.
Shenzhen
Guoguan
Electromechani Shenzhen Shenzhen Service 100.00% Set-up
cal Device Co.,
Ltd.
Shenzhen
International Hotels and
Trade Center Shenzhen Shenzhen catering 100.00% Set-up
Catering Co., services
Ltd.
Shenzhen
Shenzhen Shenzhen Service 100.00% Set-up
Property
221
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Engineering
Construction
Supervision
Co., Ltd.
SZPRD
Commercial
Shenzhen Shenzhen Service 100.00% Set-up
Operation Co.,
Ltd.[Note 3]
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
Development Hong Kong Hong Kong Real estate 100.00% Set-up
Co., Ltd.
Chief Link
Properties Co., Hong Kong Hong Kong Real estate 70.00% Set-up
Ltd.
Business
Syndis
combination
Investment Co., Hong Kong Hong Kong Real estate 70.00%
not under the
Ltd.
same 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 Shenzhen Shenzhen Real estate 65.00% Set-up
Cooperation
Zone Guomao
222
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Property
Development
Co., Ltd.
Shenzhen
Guomao
Tongle
Shenzhen Shenzhen Real estate 51.00% Set-up
Property
Management
Co., Ltd.
Shenzhen
Business
Rongyao Real
combination
Estate Shenzhen Shenzhen Real estate 69.00%
not under the
Development
same control
Co., Ltd.
Shenzhen
Guomao
Business
Science and
combination
Technology Shenzhen Shenzhen Real estate 100.00%
under the same
Park Service
control
Co., Ltd. [Note
4]
Shenzhen
Business
Julian Human
combination
Resources Shenzhen Shenzhen Service 100.00%
under the same
Development
control
Co., Ltd.
Shenzhen
Huazhengpeng Business
Property combination
Shenzhen Shenzhen Real estate 100.00%
Management under the same
Development control
Co., Ltd.
Business
SZPRD Urban
combination
Renewal Co., Shenzhen Shenzhen Real estate 100.00%
under the same
Ltd. [Note 5]
control
Shenzhen
Business
Penghongyuan Hotels and
combination
Industrial Shenzhen Shenzhen catering 100.00%
under the same
Development services
control
Co., Ltd.
Shenzhen Business
Jinhailian Shenzhen Shenzhen Real estate 100.00% combination
Property under the same
223
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Management control
Co., Ltd.
Business
Shenzhen
Health and combination
Social Welfare Shenzhen Shenzhen 100.00%
social work under the same
Co., Ltd.
control
Shenzhen
Fuyuanmin
Business
Property
combination
Management Shenzhen Shenzhen Real estate 100.00%
under the same
Limited
control
Liability
Company
Shenzhen
Business
Meilong
combination
Industrial Shenzhen Shenzhen Service 100.00%
under the same
Development
control
Co., Ltd.
Shenzhen
Business
Guomao
Public facilities combination
Shenlv Garden Shenzhen Shenzhen 90.00%
management under the same
Co., Ltd. [Note
control
6]
Shenzhen
Business
Jiayuan
combination
Property Shenzhen Shenzhen Real estate 54.00%
under the same
Management
control
Co., Ltd.
Shenzhen
Business
Helinhua
combination
Construction Shenzhen Shenzhen Real estate 90.00%
under the same
Management
control
Co., Ltd.
Shenzhen
Business
Zhongtongda
Construction combination
House Xiushan Shenzhen Shenzhen 90.00%
industry under the same
Service Co.,
control
Ltd.
Shenzhen Business
Kangping combination
Shenzhen Shenzhen Retail business 90.00%
Industrial Co., under the same
Ltd. control
Shenzhen Manufacturing Business
Shenzhen Shenzhen 100.00%
Sports Service industry combination
224
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Co., Ltd. under the same
control
Shenzhen Business
Teacher’s combination
Shenzhen Shenzhen Retail business 100.00%
Home Training under the same
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
SZPRD
Fuyuantai
Shenzhen Shenzhen Real estate 100.00% Set-up
Development
Co., Ltd.
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:
Note 1: In November 2020, SZPRD Real Estate Development Co., Ltd. was renamed Shenzhen Wuhe Industrial Investment
Development Co., Ltd.
Note 2: In July 2020, Shenzhen Huangcheng Property Management Co., Ltd. was renamed Shenzhen Guomao Meishenghuo Service
Co., Ltd.
Note 3: In July 2020, Shenzhen SZPRD Housing Assets Operation and Management Co., Ltd. was renamed SZPRD Commercial
Operation Co., Ltd.
Note 4: In July 2020, Shenzhen Toukong Property Management Co., Ltd. was renamed Shenzhen Guomao Science and Technology
Park Service Co., Ltd.
Note 5: In July 2020, Shenzhen Taixinli Property Management Co., Ltd. was renamed SZPRD Urban Renewal Co., Ltd.
Note 6: In October 2020, Shenzhen Shenlv Garden Technology Industrial Co., Ltd. was renamed Shenzhen Guomao Shenlv Garden
Co., Ltd.
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss Declaring dividends Balance of
proportion of attributable to the distributed to non-controlling
Name
non-controlling non-controlling non-controlling interests at the
interests interests interests period-end
Shenzhen Rongyao
31.00% -67,575,687.97 38,907,826.08
Real Estate
225
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Development Co., Ltd.
Yangzhou Shouxihu
Jingyue Property 49.00% 526,848.43 4,818,381.94
Development Co., Ltd.
Shenzhen Guomao
Shenlv Garden Co., 10.00% -90,932.35 270,575.75
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
Curren Non-c Curren Non-c
Non-c Total Non-c Total
Name Curren Total t urrent Curren Total t urrent
urrent liabilit urrent liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabilit
assets ies assets es
es y es y
Shenz
hen
Rongy
ao
4,265, 114,18 4,379, 224,32 4,029, 4,253, 4,111, 42,716 4,154, 53,136 3,757, 3,811,
Real
252,71 2,786. 435,50 6,385. 600,00 926,38 815,61 ,564.2 532,17 ,970.4 900,00 036,97
Estate
5.28 33 1.61 22 0.00 5.22 2.87 2 7.09 7 0.00 0.47
Develo
pment
Co.,
Ltd.
Yangz
hou
Shouxi
hu
Jingyu
15,397 16,275
e 877,95 6,442, 6,442, 8,613, 848,86 9,462, 2,703, 2,703,
,601.2 ,560.0
Proper 8.80 127.49 127.49 306.97 2.50 169.47 937.82 937.82
2 2
ty
Develo
pment
Co.,
Ltd.
Shenz
hen
31,973 33,363 30,657 30,657 32,340 32,937 29,322 29,322
Guom 1,389, 596,87
,980.1 ,528.4 ,770.9 ,770.9 ,229.8 ,106.4 ,025.3 ,025.3
ao 548.34 6.54
1 5 4 4 7 1 6 6
Shenlv
Garde
226
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
n Co.,
Ltd.
Unit: RMB
Reporting Period Same period of last year
Total Cash flows Total Cash flows
Name Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Shenzhen
Rongyao
-217,986,0 -217,986,0 -428,153,6 -243,632,6 -243,632,6 -957,858,9
Real Estate
90.23 90.23 32.73 21.48 21.48 01.03
Developme
nt Co., Ltd.
Yangzhou
Shouxihu
Jingyue 27,454,217 1,075,200. 1,075,200. 3,369,179. 7,340,745. -1,115,032. -1,115,032. -4,922,102.
Property .70 88 88 34 68 25 25 11
Developme
nt Co., Ltd.
Shenzhen
Guomao
13,548,955 -909,323.5 -909,323.5 1,413,554. 21,381,370 6,394,132. 6,394,132. -23,167,20
Shenlv
.86 4 4 68 .38 31 31 1.63
Garden
Co., Ltd.
Other notes:
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of Consolidated
Financial Statements
Other notes:
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity Attributable to the
Company as the Parent
Unit: RMB
Other notes:
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Holding percentage (%) Accounting
treatment of the
Main operating Registration Nature of investment to
Name
place place business Directly Indirectly joint venture or
associated
enterprise
227
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not
have a significant impact:
(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 Building Property Shenzhen Jifa Building Property
Warehouse Co., Ltd. Management Company Warehouse Co., Ltd. Management Company
of Shenzhen of Shenzhen
Current assets 5,408,927.72 56,100,422.58 7,020,791.77 53,771,789.30
Of which: Cash and
5,408,401.36 35,387,944.60 3,913,864.25 34,531,027.99
cash equivalents
Non-current assets 75,370,802.09 49,234.16 75,129,933.91 42,265.30
Total assets 80,779,729.81 56,149,656.74 82,150,725.68 53,814,054.60
Current liabilities 2,671,881.97 26,716,095.36 4,921,182.36 24,725,254.19
Non-current liability 16,120,967.63 16,166,098.30
Total liabilities 2,671,881.97 42,837,062.99 4,921,182.36 40,891,352.49
Equity attributable To
owners of the 78,107,847.84 13,312,593.75 77,229,543.32 12,922,702.11
Company as the parent
Portion of net assets
calculated according to
39,053,923.92 6,656,296.88 38,614,771.66 6,461,351.06
proportion of
shareholdings
Carrying value of
equity investment to 39,053,923.92 6,656,296.88 38,614,771.66 6,461,351.06
joint ventures
Operating revenue 6,298,927.01 18,268,841.02 15,900,285.14 20,445,172.55
Finance expense -7,369.67 -567,932.96 -17,194.43 -421,003.02
Income tax expense 184,895.52 130,585.02 3,097,834.74 379,274.15
Net profit 878,304.52 389,891.64 9,021,862.53 1,131,816.44
Total comprehensive 878,304.52 389,891.64 9,021,862.53 1,131,816.44
228
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
income
Other notes
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
Beginning balance/The same period of
Ending balance/Reporting Period
last year
Other notes
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/The same period of
Ending balance/Reporting Period
last year
Joint ventures: -- --
The total of following items according to
-- --
the shareholding proportions
Associated enterprises: -- --
The total of following items according to
-- --
the shareholding proportions
Other notes
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to Transfer Funds to the
Company
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
The cumulative recognized The derecognized losses (or The accumulative
Name losses in previous the share of net profit) in unrecognized losses in
accumulatively derecognized Reporting Period Reporting Period
Other notes
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
4. Significant Common Operation
Main operating Proportion /Share portion
Name Registration place Nature of business
place Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of classifying as common operation
Other notes
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
6. Other
X. The Risk Related to Financial Instruments
The Company is engaged in risk management to achieve balance between risks and returns, minimizing the 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.
229
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
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.
Credit Risk
Credit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is unable to fulfill its
obligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
On each balance sheet date, the Company shall evaluate whether the credit risk of relevant financial instruments has increased
significantly since the initial recognition. After determining whether the credit risk has increased significantly since the initial
recognition, the Company shall consider obtaining reasonable and reliable information without paying unnecessary extra costs or
efforts, including qualitative and quantitative analysis based on historical data, external credit risk rating and forward-looking
information. On the base of the single financial instrument or combination of financial instruments with similar credit risk
characteristics, the Company compares the risk of default of financial instruments on the balance sheet date with the risk of default
on the initial recognition date to determine the change of default risk of financial instruments during their expected duration.
When one or more of the following quantitative and qualitative criteria prevails, the Company shall believe the credit risk of financial
instruments has increased significantly:
1) For the quantitative standard, it can be mainly analyzed from the probability of default for the remaining duration on the balance
sheet date rises by more than a certain proportion compared with the initial confirmation.
2) For the qualitative standard, it can be mainly analyzed from the major adverse changes in the debtor's operation or financial
situation, changes in existing or expected technology, market, economy or legal environment which shall have major adverse impacts
on the debtor’s repayment ability of the Company, etc.
3) The upper limit is that the debtor’s contract payment (including principal and interest) is overdue for more than 90 days.
(2) Definition of Default and Credit Impairment-Assets
When a financial instrument meets one or more of the following conditions, the Company shall define the financial asset as having
defaulted, and its criteria are consistent with the definition of having incurred credit impairment:
1) Quantitative Standard
The debtor fails to make the payment after the contract payment date for more than 90 days;
2) Qualitative criteria
① The debtor has major financial difficulties;
② The debtor violates the binding provisions on the debtor in the contract;
③ The debtor is likely to go bankrupt or carry out other financial restructurings;
④ The creditor shall give the debtor concessions that will not be made in any other circumstances due to the economic or
contractual considerations related to the debtor's financial difficulties.
2. Measurement of Expected Credit Loss
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 VI (1), VI (2), VI (8) for details of the reconciliation statements of beginning balance and ending balance of financial
instrument loss provision.
4. Credit Risk Exposure and Credit Risk Concentration
The Company’s credit risk mainly comes from bank deposits and accounts receivable. To control the aforementioned relevant risks,
the Company has adopted the following measures.
(1)Bank deposits
230
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
The Company places its bank deposits with financial institutions of high credit ratings. Thus, its credit risk is low.
(2)Accounts receivable
The Company conducts credit assessment on the customers trading in the mode of credit on a regular basis. Based on the credit
assessment result, the Company chooses to trade with recognized customers with good credit and monitor the balance of the accounts
receivable from them to ensure that the Company will not face any significant bad debt risk.
Due to the Company merely trades with the authorized third party with good credit, the guarantee is not required. Credit risk
concentration is managed in accordance with the customers. As of 31 December 2020, there are certain credit concentration risks, and
55.41% 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 balance sheet.
Liquidity Risk
Liquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of cash
delivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as possible;
or from the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure to generate
the expected cash flow.
To control the risk, the Company comprehensively adopts bank loans as financing approach, appropriately combine long-term and
short-term financing modes and optimize the financing structure to maintain the balance between financing sustainability and
flexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs and
capital expenditure.
Financial liabilities classified by remaining maturity
Item Ending balance
Carrying value Undiscounted Within 1 year 1 to 3 years Over 3 years
contract amount
Bank loans 3,587,800,000.00 4,314,545,187.20 184,013,456.59 499,101,299.39 3,631,430,431.22
Accounts 468,269,685.65 468,269,685.65 468,269,685.65
payable
Other payables 834,939,937.05 834,939,937.05 834,939,937.05
Other 36,722,824.88 36,722,824.88 36,722,824.88
non-current
liabilities due
within one year
Subtotal 4,927,732,447.58 5,654,477,634.78 1,523,945,904.17 499,101,299.39 3,631,430,431.22
(Continued)
Item Beginning balance
Carrying value Undiscounted Within 1 year 1 to 3 years Over 3 years
contract amount
Bank loans 2,193,833,000.00 2,809,760,244.87 122,965,009.77 254,890,988.43 2,431,904,246.67
Accounts 577,689,139.10 577,689,139.10 577,689,139.10
payable
Other payables 1,136,902,252.81 1,136,902,252.81 1,136,902,252.81
Other 3,921,032.24 3,926,732.24 3,926,732.24
non-current
liabilities due
231
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
within one year
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
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.
As of 31 December 2020, under the assumption of fixed variables with 50 basis points changed in interest rate, the bank loan with
RMB3,618,800,000.00 (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 RMB. Thus,
the foreign exchange market risk undertaken is insignificant for the Company.
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Fair value Fair value Fair value
Item
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
I. Consistent fair value
-- -- -- --
measurement
(III) Other equity
1,044,905.12 1,044,905.12
instrument investment
Total amount of assets
1,044,905.12 1,044,905.12
at 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.
232
ShenZhen Properties & Resources Development (Group) Ltd. Annual 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
Proportion of
voting rights
share held by the
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 RMB28,009
Investment Shenzhen 56.96% 56.96%
state-owned assets million
Holdings 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 ⅤⅠⅠⅠ for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note ⅤⅠⅠⅠ for details about significant joint ventures or associated enterprises.
Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in Reporting
Period, or forming balance due to related-party transactions made in previous period:
Name Relationship with the Company
Other notes
4. Information on Other Related Parties
Name Relationship with the Company
Shenzhen Investment Holdings Co., Ltd. Wholly-owned subsidiary of the Company as the parent of the
233
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Company
Wholly-owned subsidiary of the Company as the parent of the
Shenzhen Bay Technology Development Co., Ltd.
Company
Wholly-owned subsidiary of Shenzhen Bay Technology Wholly-owned subsidiary of Shenzhen Bay Technology
Development Co., Ltd. Development Co., Ltd.
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
Shenzhen Real Estate Jifa Warehousing Co., Ltd. Joint venture of the Company
Shenzhen Tian’an International Mansion Property
Joint venture of the Company
Administration Co., Ltd.
Shenzhen Wufang Ceramics Industrial Co., Ltd. Associated enterprise of the Company
Hebei Shenbao Investment Development Co., Ltd. Parent company's grandson company
Shenzhen General Institute of Architectural Design and
Wholly-owned subsidiary of the parent company
Research Co., Ltd.
Shenzhen Bay Area Urban Construction Development Co.,
Wholly-owned subsidiary of the parent company
Ltd.
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 Same period of last
Related party Content Reporting Period
credit trade credit or not year
Shenzhen Bay
Technology Management
64,609,934.18 28,161,790.79
Development Co., service fee
Ltd.
Shenzhen General
Institute of
Project
Architectural
architectural 3,326,087.00
Design and
design plan
Research Co.,
Ltd.
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Shenzhen Hi-tech Zone
Development Construction Property service fee 1,432,390.32 1,420,903.83
Co., Ltd
Shenzhen Bay Technology
Property service fee 47,871,320.92 58,533,639.69
Development Co., Ltd.
Hebei Shenbao Investment Property service fee 5,688,129.37
234
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction Development Property service fee 2,072,632.08
Co., Ltd.
Notes on acquisition of goods and reception of labor service
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
Unit: RMB
Income
Name of the Name of the
recognized in
entruster/contra entrustee/ Type Start date Due date Pricing basis
this Reporting
ctee contractor
Period
Shenzhen ShenZhen
Shentou Properties &
Investment 6 November 5 November
Property Resources Market pricing 48,341,260.17
property 2019 2025
Development Development
Co., Ltd. (Group) Ltd.
Notes:
Lists of entrust/contractee
Unit: RMB
Charge
Name of the Name of the
recognized in
entruster/contra entrustee/ Type Start date Due date Pricing basis
this Reporting
ctee contractor
Period
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed
The lease income confirmed
Name of lessee Category of leased assets in the Same period of last
in the Reporting Period
year
The Company was lessee:
Unit: RMB
The lease fee confirmed in The lease fee confirmed in
Name of lessor Category of leased assets
the Reporting Period the Same period of last year
Shenzhen Shentou Property
Investment property 380,681.16 373,194.96
Development Co., Ltd.
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
Execution
Secured party Guarantee amount Start date End date
accomplished or not
The Company was secured party
235
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Unit: RMB
Execution
Guarantor: Guarantee amount Start date End date
accomplished or not
Notes:
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
Related party Amount Start date End date Note
Borrowing
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
16,452,700.40 11,861,114.20
personnel
(8) Other Related-party Transactions
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
Accounts Technology
60,785,586.79 1,823,567.60 93,790,305.70 4,689,515.29
receivable Development Co.,
Ltd.
Hebei Shenbao
Investment
1,465,286.24 43,958.59 1,470,640.73 44,119.22
Development Co.,
Ltd.
Shenzhen Hi-tech
Zone
Development 583,120.29 17,493.61 1,045,589.81 31,367.69
Construction Co.,
Ltd.
Shenzhen
Investment 8,357,589.14 250,727.67 8,282,669.14 248,480.07
Holdings Co., Ltd.
Total 71,191,582.75 2,135,747.48 104,589,205.38 5,013,482.27
Other receivables Shenzhen Xinhai 401,499,990.18 551,499,990.18
236
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Holding Co., Ltd.
Shenzhen Xinhai
Rongyao Real
Estate 330,472,932.33 330,472,932.33
Development Co.,
Ltd.
Shenzhen Wufang
Ceramics 1,747,264.25 1,747,264.25 1,747,264.25 1,747,264.25
Industrial Co., Ltd.
Shenzhen Hi-tech
Zone
Development 138,689.46 110,951.57 138,689.46 69,344.73
Construction Co.,
Ltd.
Shenzhen
Investment 109,148.44 46,829.92 109,148.44 46,829.92
Holdings Co., Ltd.
Shenzhen Bay
Technology
931,784.90 27,953.55
Development Co.,
Ltd.
Total 734,899,809.56 1,932,999.29 883,968,024.66 1,863,438.90
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Shenzhen Shentou Property
Accounts payable 1,338,025.92 109,435.61
Development Co., Ltd.
Total 1,338,025.92 109,435.61
Shenzhen Shentou Property
Other payables 14,781,098.23 133,725.60
Development Co., Ltd.
Shenzhen Bay Technology
29,944,314.56 22,560,522.70
Development Co., Ltd.
Shenzhen Bay Area Urban
Construction and 360,752.18
Development Co., Ltd.
Shenzhen Real Estate Jifa
35,796,665.14 35,796,665.14
Warehousing Co., Ltd.
Shenzhen Tian’an
International Mansion
5,214,345.90 5,214,345.90
Property Administration Co.,
Ltd.
Total 86,097,176.01 63,705,259.34
237
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
7. Commitments of Related Party
8. Other
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□ Applicable √ Not applicable
2. The Stock Payment Settled in Equity
□ Applicable √ Not applicable
3. The Stock Payment Settled in Cash
□ Applicable √ Not applicable
4. Modification and Termination of the Stock Payment
5. Other
XIV. Commitments and Contingency
1. Significant Commitments
Significant Contingency on Balance Sheet Date
1. Large amount contract signed under performance or performance preparation
Item Reporting period Same period of last
year
Signed but derecognized in financial statements — Large 18,400,472.41 145,501,513.44
amount contract
2. Contingency
(1) Important Contingencies Existing on the Balance Sheet Date
(1) The action about transferring Jiabin Building contentious matter
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong Property
Development Co., Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed, the Company
subsequently filed a series of lawsuits against the parties involved in the project, but the outcome was not favorable to the Company.
Therefore, the Company calculated and withdrew bad-debt provisions for accounts receivable from Jiyong Company in full in past
years for the transfer of Jiabin Building. On October 31, 2018, Shenzhen Intermediate People’s Court made a civil award and ruled
that the Company’s application for the bankruptcy of Jiyong Company would not be accepted. The Company appealed against the
ruling. On April 29, 2019, the Guangdong Provincial Higher People's Court ruled to reject the Company's appeal and maintain the
original ruling. As of the issuance date of the report, there is no new progress in the case.
(2) The contentious matters involved with all renovations, decorations, equipment and facilities in the floors 5-8 of Haiwai Lianyi
Building
In 2008, Shenzhen Hailian Guest House, a subsidiary of the Company, signed the Internal Contract of Hailian Guest House, House
Leasing Contract with Cai Baolin, obtained the use right of the rooms in the floors 5-8 of Haiwai Lianyi Building accordingly and
further established Shenzhen Hailian Hotel Co., Ltd. for business operation of the rooms. For the above-mentioned contracts were
terminated, Cai Baolin brought a civil lawsuit against Shenzhen Hailian Guest House, Shenzhen Jinhailian Property Management Co.,
Ltd. (“Jinhailian”) on all of the renovation, decoration, equipment and facilities made and installed in the rooms. The People’s Court
at Luohu District, Shenzhen City issued the civil judgment (2019) Yue 0303 Min Chu 4458 on December 26, 2019 and ordered
Jinhailian to accept the renovation, decoration, equipment and facilities remaining in the floors 5-8 of Haiwai Lianyi Building by the
plaintiff Cai Baolin within ten days after the judgment became effective, and Jinhailian should pay the residual value RMB
2,396,947.00 and Cai Baolin had no right to the above assets. In this year, the estimated liabilities RMB 2,396,947.00 shall be
accrued for Jinhailian according to the amount of compensation payable.
(3) Miscellaneous
238
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
As a real estate developer, the Company provides mortgage loan guarantees for commercial housing purchasers according to the
operation practice of real estate industry and pays loan deposit for them. By December 31, 2020, the balance of deposit not
discharged with guarantee was RMB 1,148,647.30, which guarantee will be discharged when the mortgage loan is paid off.
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
(3) Other information required in the disclosure directive of the industries related to automobile
manufacturing
The sales arising from mortgage sales, financial leasing, etc. account for more than 10% in the operating income
□ Applicable □ Not applicable
The Company’s guarantee to dealers
□ Applicable □ Not applicable
3. Other
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Unit: RMB
Influence number to the
Reason of inability to
Item Content financial position and
estimate influence number
operating results
2. Profit Distribution
Unit: RMB
Profits or dividends planned to distribute 244,351,427.72
Reviewed and approved profits or dividends declared to distribute 244,351,427.72
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
(1) Matters about the Vietnam subsidiary to complete the registration
On 5 January 2021, the Company's grandson company Vietnam Shenzhen Guomao Property Management Co., Ltd. completed the
registration and received the "Enterprise Registration Certificate" issued by the Business Registration Office of the Planning and
Investment Department of Haiphong City, Vietnam. The registered capital was VND 4,640,000,000 (approximately USD200,000).
(2) Matters about the issuance of commercial real estate mortgage asset-backed securitization products
On March 30, 2021, at the 22nd meeting of the 9th Board of Directors of the company, the proposal to issue commercial real estate
mortgage asset-backed securitization products was passed: The Company intended to apply to the Shenzhen Stock Exchange for the
issuance of commercial real estate mortgage asset-backed securitization products of no more than RMB 1.3 billion with the assets
held by the Companies, such as Guomao Tower, Guomao Commercial Building, Guomao Plaza, Longyuan Chuangzhan Building, etc.
The product structure was divided into priority and sub-prime, with a period of 12 years (3+3+3+3), set up sale and redemption rights
every 3 years, and introduced a guarantee structure to increase credit and reduce bond coupon rates and issuance costs. This proposal
will be implemented after approval by the general meeting of shareholders.
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
239
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
period
(2) Prospective Application
Reason for adopting prospective
Content Processing program
application
2. Debt Restructuring
3. Assets Replacement
(1) Non-monetary Assets Exchange
(2) Other Assets Replacement
4. Pension Plans
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
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 business
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 Leasing business Total
management segment
Operation revenue 2,895,323,736.80 1,070,094,746.03 138,956,163.19 4,104,374,646.32
Operation cost 388,253,087.00 912,325,050.54 86,132,102.00 1,386,710,239.00
Total assets 10,343,240,698.51 1,203,685,772.85 660,430,441.18 12,207,356,912.54
Total liabilities 7,406,053,932.88 806,728,741.54 213,452,758.29 8,426,235,432.71
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
(4) Other notes
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
8. Other
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Notes Receivable and Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Category Ending balance Beginning balance
240
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Bad debt
Carrying amount Carrying amount Bad debt provision
provision
Withdr Carryin Withdr Carrying
Amoun Proport Amoun awal g value Amoun Proport Amoun awal value
t ion t proport t ion t proport
ion ion
Accounts
receivable for
96,702, 99.16 96,702, 100.00 96,702, 96,702, 100.00
which bad debt 99.16%
269.40 % 269.40 % 269.40 269.40 %
provision
separately accrued
Of which:
Accounts
receivable
2,735,7 111,28 2,624,5 820,24 64,309. 755,932.
withdrawal of bad 2.75% 4.07% 0.84% 7.84%
81.29 0.87 00.42 1.30 16 14
debt provision by
group
Of which:
99,438, 100.00 96,813, 97.36 2,624,5 97,522, 100.00 96,766, 755,932.
Total 99.22%
050.69 % 550.27 % 00.42 510.70 % 578.56 14
Accounts receivable for which bad debt provision separately accrued: 96,702,269.40
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Shenzhen Jiyong
Properties & Involved in lawsuit and
Resources 93,811,328.05 93,811,328.05 100.00% with no executable
Development property
Company
Long aging and
Shenzhen Tewei
2,836,561.00 2,836,561.00 100.00% expected
Industrial Co., Ltd.
unrecoverable
Luohu District
Long aging and
Economic
54,380.35 54,380.35 100.00% expected
Development
unrecoverable
Company
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
Withdrawal of bad debt provision by group: 111,280.87
Unit: RMB
241
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk
2,735,781.29 111,280.87 4.07%
features
Total 2,735,781.29 111,280.87 --
Notes to the determination basis for the group:
For details, please refer to Part XⅠⅠ Financial Statement.
Withdrawal of bad debt provision by group: 111,280.87
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 2,537,153.09 76,114.59 3.00%
1 to 2 years 122,110.95 12,211.10 10.00%
2 to 3 years 76,517.25 22,955.18 30.00%
Total 2,735,781.29 111,280.87 --
Notes to the determination basis for the group:
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accountsreceivable.
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 2,537,153.09
1 to 2 years 122,110.95
2 to 3 years 76,517.25
Over 3 years 96,702,269.40
Over 5 years 96,702,269.40
Total 99,438,050.69
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Withdrawal
recovery
Bad debt
provision
96,702,269.40 96,702,269.40
withdrawn
separately
242
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Bad debt
provision
64,309.16 46,971.71 111,280.87
withdrawn by
group
Total 96,766,578.56 46,971.71 96,813,550.27
Of which significant amount of reversed or recovered bad debt provision:
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:
(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 Ending balance of bad debt
Name of entity balance of accounts
accounts receivable provision
receivable
Shenzhen Jiyong Properties &
Resources Development 93,811,328.05 94.34% 93,811,328.05
Company
Shenzhen Tewei Industry Co.,
2,836,561.00 2.85% 2,836,561.00
Ltd.
Shenzhen International Trade
Center Property Management Co., 440,850.00 0.44% 13,225.50
Ltd.
State Grain Supply Chain
91,755.00 0.09% 2,752.65
(Shenzhen) Co., Ltd.
Luohu District Economic
54,380.35 0.05% 54,380.35
Development Company
Total 97,234,874.40 97.77%
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement of
Accounts Receivable
Other notes:
2. Other Accounts Receivable
Unit: RMB
Item Ending balance Beginning balance
Other accounts receivable 145,325,697.20 501,082,153.81
243
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Total 145,325,697.20 501,082,153.81
(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
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
Guarantee deposit 2,201,527.00 2,139,511.80
Petty cash
Payment on behalf 19,510.00 16,557.82
External intercourse funds 23,305,386.85 23,164,046.99
Intercourse funds to subsidiary 151,970,155.85 508,280,508.64
Total 177,496,579.70 533,600,625.25
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Bad debt provision Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
8,770,252.14 23,748,219.30 32,518,471.44
2020
Balance of 1 January —— —— —— ——
244
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
2020 in the current
period
Withdrawal of the
41,919.63 41,919.63
current period
Reversal of the current
-389,508.57 -389,508.57
period
Balance of 31
8,812,171.77 23,358,710.73 32,170,882.50
December 2020
Changes of carrying amount with significant amount changed of loss provision in the Reporting Period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 years (including 1 year) 145,269,091.27
2 to 3 years 50,000.00
Over 3 years 32,177,488.43
3to 4 years 56,962.82
Over 5 years 32,120,525.61
Total 177,496,579.70
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 32,518,471.
41,919.63 389,508.57 32,170,882.50
provision 44
32,518,471.
Total 41,919.63 389,508.57 32,170,882.50
44
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount
Of which the verification of significant other receivables:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
Notes to the verification of other receivables:
245
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
total other bad debt provision
receivables%
Shum Yip
Properties Intercourse funds
103,506,232.43 Over 5 years 58.31% 6,876,768.60
Development to subsidiary
Limited
SZPRD Yangzhou
1-2 years
Real Estate Intercourse funds
21,889,836.60 (including 2 12.33%
Development Co., to subsidiary
years)
Ltd.
Shenzhen
Huangcheng 1-2 years
Intercourse funds
Property 17,867,525.15 (including 2 10.07%
to subsidiary
Management Co., years)
Ltd.
Shanghai Yutong
External
Real Estate Co., 5,676,000.00 Over 5 years 3.20% 5,676,000.00
intercourse funds
Ltd.
1-2 years
Shenzhen Guomao Intercourse funds
3,484,831.40 (including 2 1.96%
Catering Co., Ltd. to subsidiary
years)
Total -- 152,424,425.58 -- 85.87% 12,552,768.60
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Other notes:
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserve amount reserve
Investment to 1,093,829,880. 1,025,465,880. 1,095,429,880. 1,025,465,880.
68,364,000.00 69,964,000.00
subsidiaries 39 39 39 39
Investment to
joint ventures 64,693,834.93 18,983,614.14 45,710,220.79 64,059,736.86 18,983,614.14 45,076,122.72
and associated
246
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
enterprises
1,158,523,715. 1,071,176,101. 1,159,489,617. 1,070,542,003.
Total 87,347,614.14 88,947,614.14
32 18 25 11
(1) Investment to Subsidiaries
Unit: RMB
Beginning Increase/decrease Ending Ending
balance Depreciation balance balance of
Investee Additional Reduced
(carrying reserve Other (carrying depreciation
investment investment
value) withdrawn value) reserve
Shenzhen
Huangcheng 35,552,671.9 35,552,671.9
Real Estate 3 3
Co., Ltd.
Shenzhen
Wuhe
Industry 30,950,000.0 30,950,000.0
Investment 0 0
Development
Co., Ltd.
SZPRD
Yangzhou
50,000,000.0 50,000,000.0
Real Estate
0 0
Development
Co., Ltd.
Dongguan
ITC
Changsheng 20,000,000.0 20,000,000.0
Real Estate 0 0
Development
Co., Ltd.
Shenzhen
International
Trade Center 20,000,000.0 24,704,758.0
4,704,758.06
Property 0 6
Management
Co., Ltd.
Shenzhen
International
Trade Center 1.00 -1.00 0.00
Catering Co.,
Ltd.
Shenzhen
Property 3,000,000.00 3,000,000.00
Construction
247
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Supervision
Co., Ltd.
SZPRD
Commercial 40,000,000.0 22,821,767.9 62,821,767.9
Operation 0 0 0
Co., Ltd.
Zhanjiang
Shenzhen
Real Estate 0.00 0.00 2,530,000.00
Development
Co., Ltd.
Shum Yip
Properties 15,834,000.0
0.00 0.00
Development 0
Co., Ltd.
SZPRD
Xuzhou
Dapeng Real 50,000,000.0
0.00 0.00
Estate 0
Development
Co., Ltd.
Shenzhen
Rongyao Real
508,000,000. 508,000,000.
Estate
00 00
Development
Co., Ltd.
Shenzhen
Guomao
Science and 317,963,207. -154,409,952 163,553,254.
Technology 46 .57 89
Park Service
Co., Ltd.
SZPRD
Urban 126,883,427. 126,883,427.
Renewal Co., 61 61
Ltd.
1,025,465,88 1,025,465,88 68,364,000.0
Total 0.00
0.39 0.39 0
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Beginni Increase/decrease Ending Ending
Investe ng Additio Reduce Gains Adjust Change Cash Withdr balance balance
e balance nal d and ment of s of bonus awal of Other (carryin of
(carryin investm investm losses other other or impair g depreci
248
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
g ent ent recogni compre equity profits ment value) ation
value) zed hensive announ provisi reserve
under income ced to on
the issue
equity
method
I. Joint ventures
Shenzh
en Real
Estate
Jifa 38,614, 439,15 39,053,
Wareho 771.66 2.26 923.92
using
Co.,
Ltd.
Tian’an
Internat
ional
Buildin
g
Propert
6,461,3 194,94 6,656,2
y
51.06 5.81 96.87
Manage
ment
Compa
ny of
Shenzh
en
Subtota 45,076, 634,09 45,710,
l 122.72 8.07 220.79
II. Associated enterprises
Shenzh
en
Wufang
Cerami 18,983,
cs 614.14
Industri
al Co.,
Ltd.
Subtota 18,983,
l 614.14
45,076, 634,09 45,710, 18,983,
Total
122.72 8.07 220.79 614.14
249
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
(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 57,579,115.68 36,717,719.01 393,330,909.38 60,386,026.23
Other operations 6,572,253.92 9,031,809.00 1,319,976.00
Total 64,151,369.60 45,749,528.01 393,330,909.38 61,706,002.23
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Product Types 64,151,369.60 64,151,369.60
Of which:
House leasing business 64,151,369.60 64,151,369.60
Of which:
Shenzhen 64,151,369.60 64,151,369.60
Of which:
Of which:
Of which:
Of which:
Of which:
Information related to performance obligations:
The income of the parent company in this period was all income from leasing business.
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 RMBXXX was expected to be recognized in the year, RMBXXX in the year and
RMBXXX in the year.
Other notes:
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
634,098.07 5,076,839.48
accounted by equity method
Interest income from entrusted loans 115,612,421.39 81,620,807.16
Total 116,246,519.46 86,697,646.64
6. Other
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses on the disposal of non-current
-322,603.77
assets
250
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Government grants recognized in the
Current Period, except for those acquired
in the ordinary course of business or
7,100,657.34 Mainly as epidemic subsidy
granted at certain quotas or amounts
according to the government’s unified
standards
Gains and losses arising from
contingencies unrelated to the normal -2,396,947.00 Expected litigation compensation
operation of the company's business
Reversal of provision for impairment of
receivables and contract assets that have 19,900.00
been separately tested for impairment
Other non-operating income and expense Mainly received as compensation for
9,089,508.74
other than the above demolition
Project confirmed with the definition of
94,284.37
non-recurring gains and losses
Less: Income tax effects 3,470,226.55
Non-controllinginterests effects -80,226.22
Total 10,194,799.35 --
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to ordinary
23.47% 1.3399 1.3399
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company
23.17% 1.3228 1.3228
after 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
251
ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2020
Part XIII Documents Available for Reference
I. The financial statements with the signatures and stamps of the Company’s legal
representative, head of financial affairs and head of the financial department
(accounting supervisor);
II. The original copy of the Independent Auditor’s Report with the seal of the CPA
firm as well as the signatures and seals of the certified public accountants;
III. The originals of all the Company’s documents and announcements disclosed to
the public via newspapers designated by the CSRC in the Reporting Period.
252
