(000029 SHENSHENFANG-A 200029 SHENSHENFANG-B)
Shenzhen Special Economic Zone Real Estate
& Properties (Group) Co., Ltd.
Semi-Annual Report 2009
15 August 20091
Contents
I. Important Notice………………………………………………………………….…1
II. Company Profile……………………………………………………………………2
III. Change of Capital Share and Shares Held by Principal Shareholders………….....4
IV. Particulars about the Directors, Supervisors and Senior Executives………………4
V. Discussion and Analysis of Executives……………………………………………..6
VI. Significant Events…………………………………………………………………10
VII. Financial Report………………………………………………………….……...14
VIII. Documents Available for Reference……………………………………………91
Section I. Important Notice
The Board of Directors and directors of Shenzhen Special Economic Zone Real Estate &
Properties (Group) Co., Ltd (hereinafter referred to as the Company) guarantee that there
are no any omissions, fictitious or serious misleading statements carried in the report and
will take all responsibilities, individual and/or joint for the authenticity, accuracy and
integrality of the whole contents.
None of the directors declared uncertainty or disagreement about the truthfulness,
accuracy, and completeness of this interim report.
All the directors attend the Board Meeting.
Zhou Jianguo, person in charge of the Company, Guo Hongzhuang, chief in charge of
accounting work and Chen Jincai, person in charge of accounting firm hereby confirm the
financial report in semi-annual report is true and complete.
Semil-Annual Report 2009 has not been audited.
The Report is written in both English and Chinese. In case of any discrepancy between
the two versions, Chinese version prevails.2
Section II Company Profile
I. Company profile
1. Legal Name of the Company
In Chinese: 深圳经济特区房地产（集团）股份有限公司
In English: SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE &
PROPERTIES (Group) CO., LTD
Abbreviation in Chinese: 深房集团
Abbreviation in English: SPG
2. Stock Listed in: Shenzhen Stock Exchange
Short Form of A Share: SHENSHENFANG A Stock Code: 000029
Short Form of B share: SHENSHENFANG B Stock Code: 200029
3. Registered Address: 47/F, SPG Plaza, No. 3005, Renmin South Road, Shenzhen
Office Address: 46/F-48/F, SPG Plaza, No. 3005, Renmin South Road, Shenzhen
Postal Code: 518001
E-mail: spg@163.net
4. Legal Representative: Zhou Jianguo
5. Secretary of the Board: Chen Ji
Securities Affairs Representative: Feng Hongwei
Tel.: (0755) 82293000-4718, 4715
Fax: (0755) 82294024
E-mail: spg@163.net
6. Newspapers for Disclosing Information: China Securities Journal and Ta Kung Pao
Internet Website Designated by CSRC: http://www.cninfo.com.cn
The Place Where the Interim Report is Prepared and Placed: Room 4703, 47/F of SPG
Plaza, No. 3005, Renmin South Road, Shenzhen
7. Other Information of the Company
Business Scope of the Company: real estate development and sales of commercial
housing, property lease and management, decoration and installation of buildings, retails
and trade of commodity, hotel and catering services.
Initial Registration Date: 8 Jan. 1980
Registration Place: Shenzhen Administration for Industry and Commerce
Registration Number of Business License: 440301103225878
Registration number of Taxation: 440300192179585
Name and Address of Certified Public Accountant engaged by the Company:
Name: Shenzhen Nanfang Minhe Certified Public Accountants
Address: 8/F, Electronics Tech. Bldg., No. 2007, Shennan Middle Road, Shenzhen
II. Main Financial Data and Indices
1. Main financial data and indices3
Unit: Yuan
At the end of the
report period
At the period-end
of last year
Increase/decrease
compared with the
period-end of last year (%)
Total assets 2,171,299,597.84 2,265,656,678.91 -4.16%
Shareholders’ equity attributable to listed company 1,216,101,576.35 1,208,288,874.76 0.65%
Net assets attributable to shareholders of listed company
per share 1.20 1.19 0.84%
In current period The same period
of last year
Increase/decrease
year-on-year (%)
Operating profit 12,022,240.15 22,577,035.84 -46.75%
Net profit attributable to shareholders of listed company 7,725,323.97 13,925,382.42 -44.52%
Net profit attributable to shareholders of listed company
after deducting non-recurring profit and loss 7,628,241.73 11,842,513.81 -35.59%
Net cash flow from operating activities -21,003,143.36 -18,881,571.47 -11.24%
Net cash flow from operating activities per share -0.0208 -0.0187 -11.23%
Basic earnings per share 0.0076 0.0138 -44.93%
Diluted earnings per share 0.0076 0.0138 -44.93%
Basic EPS after deducting non-recurring profit and loss 0.0075 0.0117 -35.89%
Net return on equity (diluted) 0.64% 1.15% -0.51%
Net return on equity after deducting non-recurring profit
and loss (diluted) 0.63% 0.98% -0.35%
2. Items of non-recurring gains and losses
Unit: RMB Yuan
Items Amount
Gains and losses from disposal of non-current assets -48,232.00
Gains and losses from changes in fair value of transaction financial assets and transaction financial
responsibilities, and investment income from disposal of transaction financial assets/responsibilities and
financial assets available for sale, excluding valid hedging business relating to normal operation.
142,368.98
Other operating income and expense -6,693.95
Impact on income tax 9,639.21
Total 97,082.244
Section III Changes in Share Capital and Particulars about Shares Held by
Principal Shareholders
I. Particulars about changes in share capital
The Company’s share capital remained unchanged in the report period.
II. Shares held by shareholders
1. Up to 30 Jun. 2009, only Shenzhen Investment Holdings Co., Ltd held over 5% shares
of the Company. Shenzhen Investment Holdings Co., Ltd held 650,980,149 shares not
subject to trading moratorium. From 25 May 2007 to 14 May 2009, Shenzhen Investment
Holdings Co., Ltd reduced 10,183,700 shares, and none of shares were frozen, pledged or
entrusted to manage.
2. Particulars about shares held by the top ten shareholders and the top ten shareholders
holding shares not subject to trading moratorium
Unit: share
Total number of shareholders 103,492
Particulars about shares held by the top ten shareholders
Name of shareholders Nature of shareholders Proportion Total number
of shares held
Shares subject to
trading moratorium held
Shares pledged
or frozen
Shenzhen Investment Holdings
Co., Ltd
State corporation 64.35% 650,980,149 0 0
Shen Yanli Domestic natural person 0.10% 1,009,560 0 0
Ju Xinru Domestic natural person 0.09% 960,000 0 0
Luo Genlian Domestic natural person 0.09% 948,600 0 0
Ma Yao Domestic natural person 0.09% 917,900 0 0
Liu Nan Domestic natural person 0.09% 884,700 0 0
Cao Hongtao Domestic natural person 0.09% 861,305 0 0
BOCI Securities Limited Domestic non-state corporation 0.07% 749,434 0 0
Zhang Rui Domestic natural person 0.07% 730,700 0 0
CHU KOON YUK Foreign natural person 0.07% 720,000 0 0
Particulars about shares held by the top ten shareholders holding tradable shares
Name of shareholders Number of shares not subject to
trading moratorium held Type of share
Shenzhen Investment Holdings Co., Ltd 650,980,149 Renminbi ordinary shares
Shen Yanli 1,009,560 Renminbi ordinary shares
Ju Xinru 960,000 Renminbi ordinary shares
Luo Genlian 948,600 Renminbi ordinary shares
Ma Yao 917,900 Renminbi ordinary shares
Liu Nan 884,700 Renminbi ordinary shares
Cao Hongtao 861,305 Renminbi ordinary shares
BOCI Securities Limited 749,434 Domestically listed foreign shares
Zhang Rui 730,700 Renminbi ordinary shares
CHU KOON YUK 720,000 Domestically listed foreign shares
Explanation on associated relationship or action-in-concert
among the above shareholders Unknown
3. Particulars about controlling shareholders of the Company
During the report period, controlling shareholders of the Company remained unchanged.
Section IV Particulars about Directors, Supervisors and Senior Executives
I. Changes in shares held by directors, supervisors and senior executives
During the report period, shares held by directors, supervisors and senior executives
remained unchanged. 7400 shares held by Shao Zhihe, former Chairman of the Board,
were still subject to trading moratorium.
II. New engagement and dismissal of directors, supervisors and senior executives5
The Company elected new Board of Directors and Supervisory Committee by the
Extraordinary Shareholders’ General Meeting on 11 Feb. 2009 (for details please refer to
public notice in http://www.cnonfo.com.cn dated 12 Feb. 2009.)6
Section V Discussion and Analysis of Executives
I. Overall operations status of the Company in the first half year 2009
1. The Company belongs to real estate industry and is engaged in the development of real
estate and sales of commercial house, lease and management of property, construction
decoration and installation, retail and trade of commodities and hotel and catering
services. In the first half year of 2009, owing to influence of various uncertain factors of
real estate market in Shenzhen, market was fluctuant. Main project of the Company was
Shantou Jinye Island International Garden, and development of real estate and sales
progress were actualized basically as scheduled. The Company will persist in market and
benefit as guidance, in line with the guideline of “preventing risks, for exist, seizing
chance and seeking for development”, further enhance the competition capacity of the
Company, strive to achieve the system innovation and new breakthrough of operation.
2. Analysis and explanation on operating achievements
Unit: RMB Yuan
Items Jan.-Jun. 2009 Jan.-Jun. 2008 Increase/decrease amount Increase/decrease %
Operating income 290,811,601.49 295,167,532.51 -4,355,931.02 -1.48
Operating cost 218,500,804.81 191,144,093.35 27,356,711.46 14.31
Sales tax and extra charges 24,785,610.35 31,822,017.54 -7,036,407.19 -22.11
Sales expenses 3,888,471.54 3,225,825.63 662,645.91 20.54
Administrative expenses 29,658,569.11 36,485,076.90 -6,826,507.79 -18.71
Financial expenses 9,782,087.07 14,797,376.17 -5,015,289.10 -33.89
Expense during reporting period 43,329,127.72 54,508,278.70 -11,179,150.98 -20.51
Income from change of fair value 133,836.40 -302,557.00 436,393.40 144.24
Income from investment 7,692,345.14 5,186,449.92 2,505,895.22 48.32
Operating profit 12,022,240.15 22,577,035.84 -10,554,795.69 -46.75
Non-operating income 30,925.09 2,643,967.88 -2,613,042.79 -98.83
Non-operating expenditure 85,851.04 321,648.85 -235,797.81 -73.31
Total profit 11,967,314.20 24,899,354.87 -12,932,040.67 -51.94
Income tax 4,267,635.56 11,068,922.23 -6,801,286.67 -61.44
Net profit 7,699,678.64 13,830,432.64 -6,130,754.00 -44.33
Net profit attributable to owner of
parent company 7,725,323.97 13,925,382.42 -6,200,058.45 -44.52
Profits and losses of minority
shareholders -25,645.33 -94,949.78 69,304.45 -72.99
Continually influenced by financial crisis during the report period, under lead of the
Board of Directors, management of the Company active replied to change of market with
operating target of 2009 and theme of development and perfected construction of internal
control system. Operating business of the Company was stable, capital quality was nice
and financial status was comparatively stable.
(1) Influenced by the financial crisis, the Company realized total profit amounting RMB
11,967,300 in interim of 2009, with a decrease of RMB 12,932,100 compared with RMB
24,899,400 realized in the same period of the previous year, as well as drop of 51.94%;
achieved net profit attributable to shareholders of listed company amounting to RMB
7,725,300, with a decrease of RMB 6,200,100 compared with RMB 13,925,400 realized
in the same period of the previous year, as well as a drop of 44.52%. Decrease of profit
was mainly due to decrease of operating income and drop of operating gross ratio.
(2) The Company realized operating profit amounting to RMB 12,022,200, down by
46.75% compared with RMB 22,577,000 realized at the same period of previous year.
① The Company realized operating income amounting to RMB 290,810,000 in interim
of 2009, down by 1.48% year-on-year; comprehensive gross profit ratio was 24.87%,
with a decrease of 10.38% year-on-year.
②Sales tax and extra charges decreased 22.11% over the same period of last year which
was mainly because decrease of operating income caused decrease of business tax and
land value-added tax.
③Administrative expenses decreased 18.71% over the same period of last year, mainly
because the Company perfected internal control and controlled expenses, which was
effective.7
④ Financial expenses decreased 33.89% over the same period of last year, mainly
because there was no loss from foreign exchange due to little fluctuation exchange rate in
current period.
⑤ Income from change of fair value increased compared with same period of last year,
which was due to increase of fair value of transaction financial assets.
⑥ Investment income increased 48.32% over the same period of last year, mainly
because bonus received from Kunshan Tiaofeng Electrical Power Co., Ltd in current year
increased over the same period of last year.
3. Main business classified according to industries and products
Unit: RMB’0000 Yuan
Industries or products Operating
income Operating cost
Gross
profit
rate (%)
Increase/decrea
se of operating
income
year-on-year
(%)
Increase/decre
ase of
operating cost
year-on-year
(%)
Increase/decrea
se of gross
profit ratio
year-on-year
(%)
Real estate 102,952,316.99 63,742,098.75 38.09 -25.17 -11.86 -9.35%
Construction fixing 99,649,713.76 94,023,612.07 5.65 66.72 68.18 -0.82%
Lease and property management 75,347,008.91 51,038,851.06 32.26 -9.70 -2.79 -4.81%
Hotel and other services 12,862,561.83 9,696,242.93 24.62 -10.51 -6.93 -2.91%
Total 290,811,601.49 218,500,804.81 24.87 -1.48 14.31 -10.38%
Particulars about increase or decrease of income from main operations in overall
industries:
(1) Sales income from real estate, main operation of the Company, realized RMB
102,950,000, with a decrease of 25.17% year-on-year; gross profit ration was 38.09%,
with a decrease of 9.35% year-on-year. Mainly because structure of sales income from
real estate changed, the Company mainly sold ordinary residence in current period when
proportion of Shantou Jinye Island villadom in sales income took a big margin at the
same period of last year.
(2) Income from lease and management of property totaled RMB 75.35 million, down by
9.70% compared with the same period of last year, which was mainly due to decrease of
occupancy ratio and rent, and gross profit ration dropped 4.81% over the same period of
last year due to rise of operating cost ratio.
(3) Income from hotel catering and other services realized RMB 12.86 million, down by
10.51% compared with the same period of last year, which was mainly because room
occupancy ratio dropped and income from other service decreased.
(4) Income from construction decoration totaled RMB 99.65 million, down by 66.72%
compared with the same period of last year, which was mainly because income from
cooperated projects, and gross profit ration decreased by 0.82% over the same period of
last year due to rise of operating cost ratio.
II. Analysis and explanation on financial status of the Company
Items 30 Jun. 2009 31 Dec. 2008 Increase/de
crease %
Total assets 2,171,299,597.84 2,265,656,678.91 -4.16
Transaction financial assets 286,164.90 189,488.50 51.02
Total liabilities 966,385,167.22 1,068,529,304.55 -9.56
Accounts payable 165,816,050.27 230,446,779.80 -28.05
Tax payable -4,667,089.26 2,251,929.90 -307.25
Surplus reserves -- 118,910,686.94
Retained profit -788,875,447.36 -915,511,458.27 -13.83
Total of owners’ equity attributable to parent company 1,216,101,576.35 1,208,288,874.76 0.65
Up to 30 Jun. 2009, total assets of the Company were RMB 2,171.3 million, down by8
4.16% compared with the year-begin. Including transaction financial assets amounting to
RMB 290,000 increased 51.02% over the year-begin, which was caused by rise of market
value in the security secondary market. Other assets had a little change.
The total liabilities amounted to RMB 966.39 million, with a decrease of 9.56%
compared to the year-begin, of which: ① the accounts payable decreased by 28.05%
from the year-begin and stood at RMB 165.82 million, mainly due to the payment for
construction; and ② The taxes payable also decreased considerably from the year-begin
and stood at RMB -4.67 million, mainly due to that the Company prepaid, as required, all
the relevant taxes when it received the money from the sale of building property in
advance in the Jinye Island Project in Shantao. The balance of other liability items at the
period-end registered a slighter change from that of the year-begin.
The surplus reserve and the retained profit both showed a significant change at the
period-end, mainly because the balance of surplus reserve at the year-begin was used to
make up the losses in the past years, according to the Proposal on Using Surplus Reserve
to Make up Losses in the Past Years as approved at the Company’s 2008 Annual
Shareholders’ General Meeting held on 26 Jun. 2009.
The shareholders’ equity attributable to listed company (net assets) reached RMB
1,216,100,000, increasing by 0.65% from RMB 1,202,890,000 at the year-begin, which
was mainly due to the increase of the net profit and the foreign exchange difference in the
report period.
Ⅲ. Problems and difficulties encountered in operation
(1) There still existed a shortage of resources, and the sustained development still faced
some hidden problems. In the first half of 2009, the Company did not make any great
progress in terms of land reserves. Meanwhile, with the various uncertainties and the
unclear market direction, the risks of unwise investment decision-making were also on
the rise.
(2) The core competitiveness was not strong enough and the Company lacked an internal
impetus mechanism for development. So far, a long-acting incentive mechanism and an
internal impetus mechanism helpful for the Company’s sustainable development have not
yet taken shape.
Ⅳ. Investments in the report period
1. In the report period, the Company did not raise any funds. There existed no such funds
carried down from the previous periods, either.
2. Progress of significant projects invested by non-raised funds
Project name
Investment amount in
report period (RMB’0000)
Project progress
Longgang Project (Shuiyuntian) 442
In the phase of applying for construction and
preparing for construction
Shantou Jinye Island International
Garden
6,277
The 9th-phase construction had been completed and
the 10th-phase was in the process of applying for
construction, which was expected to start the
construction in the middle of this July.9
Shantao Jinhu Road Project 30
In the phase of working out the preliminary design
for the project
Total 6,749 -
Ⅴ. Business plan for the second half of 2009
According to the business plan for the second half of 2009, the Company will focus on
the following:
1. To promote the construction of Shenzhen Longfeng Villa Project; 2. to strengthen the
investment in and sale of Shantou Jinye Island Project; 3. to promote the leasing of the
building property so as to reach the business goal set for the year; 4. to effectively
implement the Company’s management system so as to improve its overall management
capability and operating efficiency; and 5. to actively look for land reserve and
investment projects in order to create favorable conditions for the sustainable
development of the Company’s main business—real estate.10
Section VI Significant Events
Ⅰ. Corporate governance
In the report period, the Company operated in strict compliance with the Company Law,
Securities Law, Code of Corporate Governance for Listed Companies, Stock-Listing
Rules of Shenzhen Stock Exchange and other relevant laws and regulations. At the same
time, the Company constantly perfected its corporate governance structure and
established the modern corporate system as required by the regulatory documents
concerning the corporate governance of listed companies issued by CSRC. In the first
half, the Company improved its corporate governance in a comprehensive way, with the
improvement of the Board of Directors as the core. To be specific, the Company amended
its Rules of Procedure for Board of Directors, Rules of Procedure for Board of
Supervisors and Specific Rules for General Manager; which took the counseling
meetings of the management team as the Company’s internal deliberative organ and was
considered a move to further improve the modern corporate governance mechanism with
the Board of Directors as the decision-making organ, the operational leading team as the
execution organ and the Board of Supervisors as the inspecting organ. In addition,
according to relevant circulars issued by CSRC and CSRC Shenzhen Bureau, the
Company effectively conducted special campaigns to rectify its corporate governance,
which successfully avoided the irregular funds occupation by the Company’s main
shareholder and other related parties.
The internal control system of the Company was basically established, greatly improved
and well executed, which ensured the normative and orderly operation of the Company,
as well as the safety and completeness of the Company’s assets. Such an internal control
system also provided a reasonable guarantee for the factuality and fairness of the
financial statements prepared by the Company and made sure the application of relevant
laws and regulations to the Company’s internal rules and systems. The internal control
system of the Company as a whole was considered complete, reasonable and effective.
Meanwhile, according to the Guidelines for Internal Control of Listed Companies, the
Company had set up a sound internal control system covering every spheres and phases
of its operation. The plans concerning internal control was effectively carried out, the
setup and staff inspecting the internal control system were in the right place and the
accountability system was effectively implemented. To sum up, the corporate governance
of the Company was basically in line with relevant requirements of CSRC and Shenzhen
Stock Exchange.
Ⅱ. Particulars about profit distribution
The Company would not conduct profit distribution or capitalization of public reserve for
the first half of 2009. And there existed no profit distribution, capitalization of public
reserve or issue of new shares which were planned in the previous periods to be
implemented in the report period.
Ⅲ. Significant lawsuits and arbitrations
For the significant lawsuits and arbitrations incurred in the report period or carried down
from the previous years to the report period, please refer to “1. Significant lawsuits” of
Note ⅩⅢ of the Financial Report.
Ⅳ. In the report period, the Company was not involved in any significant asset
acquisition, sale or reorganization.
Ⅴ. Related transactions11
For the Company’s related transactions, as well as the creditor’s rights and liabilities with
its related parties in the report period, please refer to Note Ⅸ “Related Party
Relationships and Transactions” of the Financial Report.
Ⅵ. Particulars about guarantees provided by the Company
Unit: RMB’0000
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Name of
guaranteed party
Date of occurrence
(date when the
agreement was
signed)
Amount of
guarantee
Type of
guarantee
Term of
guarantee
Whether
accomplish
ed or not
Whether a guarantee for
related party
None 30 Jun. 2009 0.00 0 0 Yes No
Total guarantee amount in report
period 0.00
Total guarantee balance at period-end
(A)
0.00
Guarantees provided for subsidiaries
Total guarantee amount for subsidiaries
in report period
0.00
Total guarantee balance for
subsidiaries at period-end (B) 2,528.00
Total guarantee amount provided by the Company (including those for subsidiaries)
Total guarantee amount (A+B) 2,528.00
Proportion of total guarantee amount in
the Company’s net assets 2.08%
Including:
Guarantee amount provided for
shareholders, actual controller and
their related parties (C)
0.00
Debt guarantee amount directly or
indirectly provided for parties with
asset-liability ratio over 70% (D)
0.00
Amount of total guarantee amount
exceeding 50% of net assets (E) 0.00
Total of the above-mentioned three
types of guarantees （C+D+E）
0.00
Explanation on taking on several and
joint liabilities for undue guarantees
Inapplicable
Due to that the Company is engaged in the real estate industry, and according to the
relevant regulation of the People’s Bank of China that a developer must provide mortgage
guarantees for property buyers, the Company currently provides phasic joint-liability
guarantees for its property buyers. And the term of guarantee lasts from the date when the
bank grants the loan to the date when the mortgage bank gets the real estate ownership
certificate for the buyers. If the buyers do not perform the debtor’s responsibility within
the aforesaid guarantee term, the Company is entitled to take back the properties sold.
Thus, such a kind of guarantee will not bring any actual losses to the Company. As at the
end of the report period, the Company provided such guarantees totaling RMB 9.13
million.
Ⅶ. Particulars about capital occupation
The Company’s main shareholder and its subsidiaries were not involved in any irregular
occupation of the Company’s capital.
Ⅷ. Significant contracts and their implementation
1. In the report period, the Company did not hold in trust, contract or lease the assets of12
other companies, or vise versa. And there existed no such matters carried down from the
previous periods to the report period.
2. In the report period, the Company did not entrust other with cash assets management.
And there existed no such matters carried down from the previous periods to the report
period.
Ⅸ. Commitments made by the Company or shareholders holding over 5% (including 5%)
shares of the Company
During the share merger reform of the Company, Shenzhen Investment Holdings Co., Ltd.
made the commitments concerning the trading moratorium. By 26 Mar. 2009, all the said
commitments had been worked off and the trading moratorium had been cancelled. And
Shenzhen Investment Holdings Co., Ltd. did not make any further commitments
concerning the trading moratorium on shares.
Ⅹ. Securities Investments
Unit: (RMB) Yuan13
No. Securities variety Stock code Short form of
stock
Initial
investment
amount
(Yuan)
Shares held
at period-end
(share)
Book value at
period-end
Proportion in
total
securities
investment at
period-end
(%)
Gains or losses
in report period
1 Circulating
A-share
601939
China
Construction
Bank
58,050.00 9,000 54,270.00 18.96% -3,780.00
2 Circulating
A-share 601857 China National
Petroleum 50,100.00 3,000 43,440.00 15.18% -6,660.00
3 Circulating
A-share 601328
Bank of
Communicatio
ns
31,600.00 4,000 36,040.00 12.59% 4,440.00
4 Circulating
A-share 601088 China Shenhua 36,990.00 1,000 29,910.00 10.45% -7,080.00
5 Circulating
A-share
002128 Opencut Coal 4,900.00 845 22,578.40 7.89% 17,678.40
6 Circulating
A-share 002165 Hongbaoli 6,045.00 1,050 16,758.00 5.86% 10,713.00
7 Circulating
A-share 601169 Bank of
Beijing 12,500.00 1,000 16,260.00 5.68% 3,760.00
8 Circulating
A-share
601168 Western
Mining
13,480.00 1,000 15,240.00 5.33% 1,760.00
9 Circulating
A-share 601898 China Coal
Energy 16,830.00 1,000 12,340.00 4.31% -4,490.00
10 Circulating
A-share 601998 Citic Bank 11,600.00 2,000 11,940.00 4.17% 340.00
Other securities investments held at period-end 24,010.00 - 27,388.50 9.57% 3,378.50
Gains/ losses from securities investment sold in report
period - - - - 0.00
Total 266,105.00 - 286,164.90 100% 20,059.90
Ⅺ. Surveys, interviews and visits received by the Company
Reception time Reception place Reception way Visitor Main discussion and materials provided
12 Jan. 2009 The Company’s
office By telephone Individual
investor
Particulars about the Company’s
construction projects. No written
materials were provided.
10 Feb. 2009 The Company’s
office By telephone Individual
investor
Particulars about the provisional
shareholders’ general meeting. No
written materials were provided.
10 Mar. 2009 The Company’s
office By telephone Individual
investor
Particulars about the disclosure date of
the annual report and the Company’s
financial position. No materials were
provided.
20 Mar. 2009 The Company’s
office
By telephone Individual
investor
Particulars about the release of the
shares subject to trading moratorium
held by the Company’s main
shareholder. No written materials were
provided.
20 Apr. 2009 The Company’s
office By telephone Individual
investor
Particulars about the Company’s annual
report. No written materials were
provided.
8 May 2009 The Company’s
office By telephone Individual
investor
Reasons for the Company’s shares
reaching the upper trading limit. No
materials were provided.
11 May 2009 The Company’s
office By telephone Individual
investor
Reasons for the Company’s shares
reaching the upper trading limit. No
materials were provided.
18 Jun. 2009 The Company’s
office By telephone Individual
investor
Particulars about the Company’s annual
shareholders’ general meeting. No
written materials were provided.14
Section VII Financial Report (un-audited)
SHENZHEN SPECIAL ECONOMIC ZONE REAL
ESTATE& PROPERTIES (GROUP) CO., LTD.
Interim Reports
for the period ended 30 June 2009
CONTENTS PAGE(S)
2、FINANCIAL STATEMENTS (NON-AUDITED)
1、CONSOLIDATED BALANCE SHEET 1-2
2、CONSOLIDATED INCOME STATEMENT 3
3、CONSOLIDATED CASH FLOW STATEMENT 4
4、CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5-8
5、BALANCE SHEET 9-10
6、INCOME STATEMENT 11
7、CASH FLOW STATEMENT 12
8、STATEMENT OF CHANGES IN EQUITY 13-14
9、NOTES TO THE FINANCIAL STATEMENTS 15-7815
CONSOLIDATED BALANCE SHEET
As at 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC
ZONE REAL ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
ASSETS Note 2009/06/30 2008/12/31
Current Asssets：
Cash at bank and on hand 7、1 288,249,054.07 328,413,393.57
Financial assets held for trading 7、2 286,164.90 189,488.50
Bills receivable -- --
Accounts receivable 7、3 13,941,153.72 14,937,238.37
Advances to suppliers 7、4 22,078,077.19 24,332,129.12
Dividends receivable -- --
Interest receivable -- --
Others receivable 7、5 43,634,793.61 44,004,157.29
Inventories 7、6 910,559,855.53 945,592,254.25
Non-current asset expire in a year -- --
Other current assets -- --
Total current assets 1,278,749,099.02 1,357,468,661.10
Non-current assets：
Financial assets available for sale -- --
Held-to-maturity investment -- --
Long-term accounts receivable -- --
Long-term equity investments 7、7 92,830,359.32 92,830,359.32
Investment Property 7、8 706,077,082.41 719,025,078.32
Fixed assets 7、9 68,398,593.97 70,894,484.45
Construction-in-process -- --
Materials for projects. -- --
Disposal of fixed assets -- --
Intangible assets 7、10 6,318,350.00 6,430,760.00
Goodwill -- --
Long-term deferred and prepaid
expenses
7、11 446,124.30 527,346.90
Deferred tax assets 7、12 18,479,988.82 18,479,988.82
Other non-current assets -- --
Total non-current assets 892,550,498.82 908,188,017.81
TOTAL ASSETS 2,171,299,597.84 2,265,656,678.91
The Notes on page 15 to 78 form part of these financial statemtents16
LIABILITIES AND
OWNERS' EQUITY Note 2009/06/30 2008/12/31
Current liabilities:
Short-term borrowings 7、15 -- 59,200,000.00
Held-for-trading Financial
Liabilities
-- --
Bills payable -- --
Accounts payable 7、16 165,816,050.27 230,446,779.80
Prepayment received 7、17 117,236,666.12 130,134,521.89
Employee benefits payable 7、18 22,287,597.02 25,202,232.34
Tax payable 7、19 -4,667,089.26 2,251,929.90
Interest payable 7、20 9,477,039.69 7,888,053.54
Dividends payable -- --
Other payables 7、21 262,343,628.39 262,914,117.22
Non-current liabilities due
within one year
7、22 10,461,764.71 10,461,764.71
Other current liabilities -- --
Total of current liability 582,955,656.94 728,499,399.40
Non-current liabilities:
Long-term borrowings 7、22 373,307,453.86 330,343,020.83
Debentures payable -- --
Long-term account payable 7、23 7,925,342.34 7,490,170.24
Accrued liabilities 7、24 2,196,714.08 2,196,714.08
Deferred income tax liabilities -- --
Other non-current liablities -- --
Total non-current liabilities 383,429,510.28 340,029,905.15
Total liabilities 966,385,167.22 1,068,529,304.55
Owners' equity:
Share capital 7、25 1,011,660,000.00 1,011,660,000.00
Capital surplus 7、26 978,244,858.10 978,244,858.10
Less: Shares in stock -- --
Surplus reserve 7、27 -- 118,910,686.94
Undistributed profits 7、28 -788,875,447.36 -915,511,458.27
Translation difference of foreign
currency financial statements
15,072,165.61 14,984,787.99
Total equity attributable to
equity holders of the Company 1,216,101,576.35 1,208,288,874.76
Minority interest -11,187,145.73 -11,161,500.40
Total owners' equity 1,204,914,430.62 1,197,127,374.36
TOTAL LIABILITIES AND 2,171,299,597.84 2,265,656,678.91
OWNER'S EQUITY
The Notes on page 15 to 78 form part of these financial statemtents17
CONSOLIDATED INCOME STATEMENT
For the period ended 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE
REAL ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb
Yuan
Items
2009/Jan-Jun 2008/Jan-Jun
1.Revenue
7、29 290,811,601.49 295,167,532.51
Less：Cost of sale 7、29 218,500,804.81 191,144,093.35
Tax and levies on operations
7、30 24,785,610.35 31,822,017.54
Selling and distribution expenses 3,888,471.54 3,225,825.63
General and administrative expenses 29,658,569.11 36,485,076.90
Finance expenses 7、31 9,782,087.07 14,797,376.17
Asset impairment losses -- --
Add：Income from change of fair value 133,836.40 -302,557.00
Investment income 7、32 7,692,345.14 5,186,449.92
Including： Investment income from affiliates
7、32 7,683,812.56 5,183,115.81
2、 Operating profit
12,022,240.15 22,577,035.84
Add：Non-operating income 7、33 30,925.09 2,643,967.88
Less：Non-operating expenses 7、34 85,851.04 321,648.85
Including： Loss from disposal of non-current assets 7、34 48,532.00 66,000.00
3、 Total profit
11,967,314.20 24,899,354.87
Less：Income tax expenses 4,267,635.56 11,068,922.23
4、 Net profit
7,699,678.64 13,830,432.64
Attributable to equity holders of the Company 7,725,323.97 13,925,382.42
Minority profit or loss -25,645.33 -94,949.78
5、Earnings per share
（1）Basic earnings per share 7、35 0.0076 0.0138
（2）Diluted earnings per share 7、35 0.0076 0.0138
The Notes on page 15 to 78 form part of these financial statemtents18
CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE REAL
ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
Items Note 2009/Jan-Jun 2008/Jan-Jun
1、Cash flows from operating activities
Cash received from sales of goods or rendering of services 260,615,674.46 268,482,365.40
Refund of taxes and levies -- --
Cash received relating to other operating activities 7.36 28,835,903.74 70,680,969.98
Sub-total of cash inflows 289,451,578.20 339,163,335.38
Cash paid for goods and services 184,311,701.42 180,570,720.85
Cash paid to and on behalf of employees 41,215,377.96 40,878,109.94
Payments of taxes and levies 36,743,154.64 34,756,252.94
Cash paid relating to other operating activities 7.36 48,184,487.54 101,839,823.12
Sub-total of cash outflows 310,454,721.56 358,044,906.85
Net cash flows from operating activities -21,003,143.36 -18,881,571.47
2、Cash flows from investing activities
Cash received from investment 37,160.00 --
Cash received as investment gains 7,692,345.14 5,186,449.92
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
-- 3,279,943.70
Net cash received from disposal of subsidiaries or other
operational units
-- --
Cash received relating to other investing activities -- --
Sub-total of cash inflows 7,729,505.14 8,466,393.62
Cash paid to acquire fixed assets, intangible assets and
other long-term assets
305,224.43 1,016,368.22
Cash paid to acquire investments -- --
Net cash received from subsidiaries and other operational
units
-- --
Cash paid relating to other investing activities -- 68,095.00
Sub-total of cash outflows 305,224.43 1,084,463.22
Net cash flows from investing activities 7,424,280.71 7,381,930.40
3、Cash flows from financing activities -- --
Cash received as investment -- --
Including： Cash received as investment from minor
shareholders
-- --
Cash received from borrowings 50,000,000.00 70,030,000.00
Cash received relating to other financing activities -- 21.85
Sub-total of cash inflows 50,000,000.00 70,030,021.85
Cash repayments of borrowings 66,235,566.97 55,791,698.71
Cash payments for interest expenses and distribution of
dividends or profits
10,427,237.14 14,919,943.50
Including： Cash payments for dividends or profit to
minority shareholders of subsidiaries
-- --
Cash payments relating to other financing activities -- --
Sub-total of cash outflows 76,662,804.11 70,711,642.21
Net cash flows from financing activities -26,662,804.11 -681,620.36
4、Effect of foreign exchange rate changes on cash
and cash equivalents
77,327.26 -1,713,600.37
5、Net increase in cash and cash equivalents -40,164,339.50 -13,894,861.80
Add: Cash and cash equivalents at beginning of year 328,413,393.57 451,915,145.77
6、Cash and cash equivalent at end of year 288,249,054.07 438,020,283.9719
The Notes on page 15 to 78 form part of these financial statemtents
CONSOLIDATED STATEMENT OF CHANGES IN OWNER'S
EQUITY
For the period ended 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE REAL
ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
Attributable to equity holders of the Company
Items
Share capital
Capital
surplus
Translation
difference of
foreign
currency
financial
statements
Surplus
reserves
Undistributed
profits Minority
interest
Total owners'
equity
1、
Balance at
the end of
the last
year：
1,011,660,000.00 978,244,858.10 118,910,686.94 -915,511,458.27 14,984,787.99 -11,161,500.40 1,197,127,374.36
Add：
Changes of
accounting
policy
-- -- -- -- -- -- --
Error
correction
of the last
period
-- -- -- -- -- -- --
2、Balance
at the
beginning
of the year
1,011,660,000.00 978,244,858.10 118,910,686.94 -915,511,458.27 14,984,787.99 -11,161,500.40 1,197,127,374.36
3、
Increase/
Decrease
in this year
-- -- -118,910,686.94 126,636,010.91 87,377.62 -25,645.33 7,787,056.26
(1) Net
profit
-- -- -- 7,725,323.97 -- -25,645.33 7,699,678.64
(2) Profits
and losses
calculating
into owners'
equity
-- -- -- -- 87,377.62 -- 87,377.62
a、Net
changing
amount of
fair value of
financial
assets
available for
sale
-- -- -- -- -- -- --
b、Effect of
changes of
other
owners'
equity of
invested
-- -- -- -- -- -- --20
units under
equity
method
c、Effect of
income tax
related to
owners'
equity
-- -- -- -- -- -- --
d、Others -- -- -- -- 87,377.62 -- 87,377.62
sub-total
（1）&（2）
-- -- -- 7,725,323.97 87,377.62 -25,645.33 7,787,056.26
(3) Owners'
devoted
and
decreased
capital
-- -- -- -- -- -- --
a、Owners'
devoted
capital
-- -- -- -- -- -- --
b、Amount
calculated
into
owners'
equity paid
in sha
-- -- -- -- -- -- --
c、Others -- -- -- -- -- -- --
(4) Profit
distribution
-- -- -- -- -- -- --
a、
Withdrawal
of surplus
reserves
-- -- -- -- -- -- --
b、
Distribution
to
shareholders
-- -- -- -- -- -- --
c、Others -- -- -- -- -- -- --
（5）
Carrying
forward
internal
owners'
equity
-- -- -118,910,686.94 118,910,686.94 -- -- --
a、Capital
surplus
conversed to
capital
-- -- -- -- -- -- --
b、Surplus
reserves
conversed to
capital
-- -- -- -- -- -- --
c、
emedying
loss with
profit
surplus
-- -- -118,910,686.94 118,910,686.94 -- -- --
d、Others -- -- -- -- -- -- --
4、Balance
at the end
of the year
1,011,660,000.00 978,244,858.10 -- -788,875,447.36 15,072,165.61 -11,187,145.73 1,204,914,430.6221
report
period
CONSOLIDATED STATEMENT OF CHANGES IN OWNER'S
EQUITY
For the period ended 30 June 2008
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE REAL
ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
Attributable to equity holders of the Company
Items
Share capital
Capital
surplus
Translation
difference of
foreign
currency
financial
statements
Surplus
reserves
Undistributed
profits
Minority
interest
Total owners'
equity
1、
Balance at
the end of
the last
year：
1,011,660,000.00 978,244,858.10 118,910,686.94 -934,635,245.38 13,966,344.35 -6,774,741.72 1,181,371,902.29
Add：
Changes of
accounting
policy
-- -- -- -- -- -- --
Error
correction
of the last
period
-- -- -- -- -- -- --
2、Balance
at the
beginning
of the year
1,011,660,000.00 978,244,858.10 118,910,686.94 -934,635,245.38 13,966,344.35 -6,774,741.72 1,181,371,902.29
3、
Increase/
Decrease
in this year
-- -- -- 13,925,382.42 5,621,470.60 -94,949.78 19,451,903.24
(1) Net
profit
-- -- -- 13,925,382.42 -94,949.78 13,830,432.64
(2) Profits
and losses
calculating
into owners'
equity
-- -- -- -- 5,621,470.60 -- 5,621,470.60
a、Net
changing
amount of
fair value of
financial
assets
available for
sale
-- -- -- -- -- -- --
b、Effect of
changes of
other
owners'
equity of
-- -- -- -- -- -- --22
invested
units under
equity
method
c、Effect of
income tax
related to
owners'
equity
-- -- -- -- -- -- --
d、Others -- -- -- -- 5,621,470.60 -- 5,621,470.60
sub-total
（1）&（2）
-- -- -- 13,925,382.42 5,621,470.60 -94,949.78 19,451,903.24
(3) Owners'
devoted and
decreased
capital
-- -- -- -- -- -- --
a、Owners'
devoted
capital
-- -- -- -- -- -- --
b、Amount
calculated
into owners'
equity paid
in sha
-- -- -- -- -- -- --
c、Others -- -- -- -- -- -- --
(4) Profit
distribution
-- -- -- -- -- -- --
a、
Withdrawal
of surplus
reserves
-- -- -- -- -- -- --
b、
Distribution
to
shareholders
-- -- -- -- -- -- --
c、Others -- -- -- -- -- -- --
（5）
Carrying
forward
internal
owners'
equity
-- -- -- -- -- -- --
a、Capital
surplus
conversed to
capital
-- -- -- -- -- -- --
b、Surplus
reserves
conversed to
capital
-- -- -- -- -- -- --
c、Remedying
loss with
profit surplus
-- -- -- -- -- -- --
d、Others -- -- -- -- -- -- --
4、Balance
at the end
of the year
report
period
1,011,660,000.00 978,244,858.10 118,910,686.94 -920,709,862.96 19,587,814.95 -6,869,691.50 1,200,823,805.5323
The Notes on page 15 to 78 form part of these financial statemtents
BALANCE SHEET
As at 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE
REAL ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb
Yuan
ASSETS Note 2009/6/30 2008/12/31
Current assets
Cash at bank and on hand
164,172,605.54 188,891,010.32
Financial assets held for trading
286,164.90 189,488.50
Bills receivable -- --
Accounts receivable 8、1
7,364,540.95 7,598,911.50
Advances to suppliers
433,117.44 478,423.65
Dividends receivable -- --
Interest receivable -- --
Others receivable 8、2 634,338,605.53 607,212,015.51
Inventories 8、3
179,364,792.07 181,274,439.65
Non-current asset expire in a year -- --
Other current assets -- --
Total non-current assets
985,959,826.43 985,644,289.13
Non-current assets:
Financial assets available for sale -- --
Held-to-maturity investment -- --
Long-term accounts receivable -- --
Long-term equity investments 8、4
302,909,360.35 302,909,360.35
Investment Property
633,379,855.63 641,638,730.03
Fixed assets
36,998,951.03 41,729,025.52
Construction-in-process -- --
Materials for projects. -- --
Disposal of fixed assets -- --
Intangible assets -- --
Goodwill -- --
Long-term deferred and prepaid expenses
4,235,725.42 4,235,725.42
Deferred tax assets -- --
Total non-current assets
977,523,892.43 990,512,841.32
TOTAL ASSETS
1,963,483,718.86 1,976,157,130.45
The Notes on page 15 to 78 form part of these financial statemtents24
BALANCE SHEET
As at 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE
REAL ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb
Yuan
LIABILITIES AND OWNERS'
EQUITY
Note 2009/06/30 2008/12/31
Current liabilities
Short-term borrowings -- 59,200,000.00
Bills payable -- --
Account payable
25,336,885.63 32,708,884.80
Prepayment received
8,546,932.72 5,211,019.92
Employee benefits payable
10,029,518.50 10,720,641.23
Tax payable
2,743,779.33 4,250,387.71
Interest payable
9,477,039.69 7,888,053.54
Dividends payable -- --
Other payables
368,495,075.59 355,621,239.01
Non-current liabilities due within one year
10,461,764.71 10,461,764.71
Other current liabilities -- --
Total of current liability
435,090,996.17 486,061,990.92
Non-current liabilities
Long-term borrowings
288,029,244.59 243,543,020.83
Debentures payable -- --
Accrued liabilities
2,196,714.08 2,196,714.08
Deferred income tax liabilities -- --
Other non-current liablities -- --
Total non-current liabilities
290,225,958.67 245,739,734.91
Total liabilities
725,316,954.84 731,801,725.83
Owners' equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Capital surplus 978,244,858.10 978,244,858.10
Less: Shares in stock -- --
Surplus reserve -- 113,936,295.79
Undistributed profits
-751,738,094.08 -859,485,749.27
Total owners' equity 1,238,166,764.02 1,244,355,404.62
TOTAL LIABILITIES AND
OWNER'S EQUITY
1,963,483,718.86 1,976,157,130.4525
INCOME STATEMENT
For the period ended 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE REAL
ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
The Notes on page 15 to 78 form part of these financial statemtents
Items Note 2009/Jan-Jun 2008/Jan-Jun
1.Revenue 8、5
55,954,978.92 36,595,102.59
Less：Cost of sale 8、5
31,580,000.36 15,543,454.53
Tax and levies on operations
9,230,591.73 6,295,312.14
Selling and distribution expenses
917,897.08 832,442.56
General and administrative expenses
13,004,332.67 17,748,483.36
Finance expenses
7,530,786.10 25,070,415.09
Asset impairment losses
-- --
Add：Income from change of fair value
133,836.40 -302,557.00
Investment income
8,532.58 2,395.58
Including： Investment income from affiliates -- --
2、 Operating profit
-6,166,260.04 -29,195,166.51
Add：Non-operating income -- --
Less：Non-operating expenses
1,318.84 --
Including： Loss from disposal of non-current
assets
-- --
3、 Total profit
-6,167,578.88 -29,195,166.51
Less：Income tax expenses
21,061.72 38,525.23
4、 Net profit
-6,188,640.60 -29,233,691.74
Attributable to equity holders of the Company -6,188,640.60 -29,233,691.7426
CASH FLOW STATEMENT
For the period ended 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE REAL
ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
Items Note 2009/Jan-Jun 2008/Jan-Jun
1、Cash flows from operating activities
Cash received from sales of goods or rendering of 58,955,441.83 37,859,847.76
Refund of taxes and levies --
Cash received relating to other operating activities 15,310,229.24 43,300,069.03
Sub-total of cash inflows 74,265,671.07 81,159,916.79
Cash paid for goods and services 10,726,615.49 11,485,681.58
Cash paid to and on behalf of employees 11,817,987.61 15,114,236.32
Payments of taxes and levies 11,416,741.93 12,441,003.55
Cash paid relating to other operating activities 41,760,424.53 46,434,257.68
Sub-total of cash outflows 75,721,769.56 85,475,179.13
Net cash flows from operating activities -1,456,098.49 -4,315,262.34
2、Cash flows from investing activities
Cash received from investment 37,160.00
Cash received as investment gains 8,532.58 2,395.58
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets --
Net cash received from disposal of subsidiaries or --
Cash received relating to other investing activities --
Sub-total of cash inflows 45,692.58 2,395.58
Cash paid to acquire fixed assets, intangible assets and
other long-term assets 85,853.54 7,379.00
Cash paid to acquire investments --
Net cash received from subsidiaries and other --
Cash paid relating to other investing activities -- 68,095.00
Sub-total of cash outflows 85,853.54 75,474.00
Net cash flows from investing activities -40,160.96 -73,078.42
3、Cash flows from financing activities
Cash received as investment --
Cash received from borrowings 50,000,000.00 70,000,000.00
Cash received relating to other financing activities --
Sub-total of cash inflows 50,000,000.00 70,000,000.00
Cash repayments of borrowings 64,713,776.24 55,791,698.71
Cash payments for interest expenses and distribution
of dividends or profits
8,508,182.04 12,383,563.50
Cash payments relating to other financing activities --
Sub-total of cash outflows 73,221,958.28 68,175,262.21
Net cash flows from financing activities -23,221,958.28 1,824,737.79
4、Effect of foreign exchange rate changes on cash
and cash equivalents
-187.05 -120,295.60
5、Net increase in cash and cash equivalents -24,718,404.78 -2,683,898.57
Add: Cash and cash equivalents at beginning of year 188,891,010.32 219,453,189.28
6、Cash and cash equivalent at end of year 164,172,605.54 216,769,290.71
The Notes on page 15 to 78 form part of these financial statemtents27
CHANGES IN OWNER'S EQUITY
For the period ended 30 June 2009
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE REAL
ESTATE& PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
Items
Share capital Capital surplus Surplus reserves
Undistributed
profits
Total owners'
equity
1、
Balance at the end of the
last year：
1,011,660,000.00 978,244,858.10 113,936,295.79 -859,485,749.27 1,244,355,404.62
Add：Changes of
accounting policy
-- -- -- -- --
Error correction of the last
period
-- -- -- -- --
2、Balance at the
beginning of the year
1,011,660,000.00 978,244,858.10 113,936,295.79 -859,485,749.27 1,244,355,404.62
3、Increase/ Decrease in
this year
-- -- -113,936,295.79 107,747,655.19 -6,188,640.60
(1) Net profit -- -- -- -6,188,640.60 -6,188,640.60
(2) Profits and losses
calculating into owners'
-- -- -- -- --
a、Net changing amount of
fair value of financial assets
-- -- -- -- --
b、Effect of changes of
other owners' equity of
-- -- -- -- --
c、Effect of income tax
related to owners' equity
-- -- -- -- --
d、Others -- -- -- -- --
sub-total（1）&（2） -- -- -- -6,188,640.60 -6,188,640.60
(3) Owners' devoted and
decreased capital
-- -- -- -- --
a、Owners' devoted capital -- -- -- -- --
b、Amount calculated into
owners' equity paid in sha
-- -- -- -- --
c、Others -- -- -- -- --
(4) Profit distribution -- -- -- -- --
a、Withdrawal of surplus
reserves
-- -- -- -- --
b、Distribution to
shareholders
-- -- -- -- --
c、Others -- -- -- -- --
（5）Carrying forward
internal owners' equity
-- -- -113,936,295.79 113,936,295.79 --
a、Capital surplus conversed
to capital
-- -- -- -- --
b、Surplus reserves
conversed to capital
-- -- -- -- --
c、Remedying loss with
profit surplus
-- -- -113,936,295.79 113,936,295.79 --
d、Others -- -- -- -- --
4、Balance at the end of
the year
report period
1,011,660,000.00 978,244,858.10 -- -751,738,094.08 1,238,166,764.0228
CHANGES IN OWNER'S EQUITY
For the period ended 30 June 2008
Preparation of company：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE&
PROPERTIES (GROUP) CO., LTD.
Units:Rmb Yuan
Items
Share capital Capital surplus Surplus reserves
Undistributed
profits
Total owners'
equity
1、
Balance at the end of the
last year：
1,011,660,000.00 978,244,858.10 113,936,295.79 -824,935,148.77 1,278,906,005.12
Add：Changes of accounting
policy
-- -- -- -- --
Error correction of the last
period
-- -- -- -- --
2、Balance at the beginning
of the year
1,011,660,000.00 978,244,858.10 113,936,295.79 -824,935,148.77 1,278,906,005.12
3、Increase/ Decrease in
this year
-- -- -- -29,233,691.74 -29,233,691.74
(1) Net profit -- -- -- -29,233,691.74 -29,233,691.74
(2) Profits and losses
calculating into owners' equity
-- -- -- -- --
a、Net changing amount of fair
value of financial assets
available for sale
-- -- -- -- --
b、Effect of changes of other
owners' equity of invested
units under equity method
-- -- -- -- --
c、Effect of income tax related
to owners' equity
-- -- -- -- --
d、Others -- -- -- -- --
sub-total（1）&（2） -- -- -- -29,233,691.74 -29,233,691.74
(3) Owners' devoted and
decreased capital
-- -- -- -- --
a、Owners' devoted capital -- -- -- -- --
b、Amount calculated into
owners' equity paid in sha
-- -- -- -- --
c、Others -- -- -- -- --
(4) Profit distribution -- -- -- -- --
a、Withdrawal of surplus
reserves
-- -- -- -- --
b、Distribution to shareholders -- -- -- -- --
c、Others -- -- -- -- --
（5）Carrying forward internal
owners' equity
-- -- -- -- --
a、Capital surplus conversed to
capital
-- -- -- -- --
b、Surplus reserves conversed
to capital
-- -- -- -- --
c、Remedying loss with profit
surplus
-- -- -- -- --
d、Others -- -- -- -- --
4、Balance at the end of the
year
report period
1,011,660,000.00 978,244,858.10 113,936,295.79 -854,168,840.51 1,249,672,313.38
The Notes on page 15 to 78 form part of these financial statemtentsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
29
NOTE 1、The company's basic information
(1) General information
Shenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Company”) was in
corporated in July 1993, as approved by the Shenzhen Municipal Government with document SFBF (1993)
724. The Company issued A shares on the 15 September 1993 and issed B shares on the 10 January 1994.
From 31 August 1994, the Company issued B-shares were listed ADR as a recommened in New York
Exchange market. The share capital total is 1,011,660,000 shares, of which, the A share is 891,660,000 shares,
the B share is120, 000,000 shares.The company corporate business licences registration number:
440301103225878，registered capital of RMB 1,011,660,000.00.
On 13 October 2004，according to State-Owned Assets Sunpervision and Administration Commission of
Shenzhen Municiple Government with document No. (2004) 223 “Decision on establishing Shenzhen
investment Holding Co., Ltd.” Former major shareholder merged to form the Shenzhen Investment Holding
Co., Ltd.By the State-owned Assets Supervision and Administration Commission of the state council， and
quasi-exempt obligations tender offer as approved by China Security Regulatory Committee with document
No. (2005)116, This issue of consolidated has been authorized and the registration changing has been done
at 15th of Feb 2006. As at tne end of the repoeting period, Shenzhen Investment Holding Limited holds
650,980,149 shares of the company (64.35% of the total share capital) .
The company trades nature: This Company belongs to the real estate industry.
Business scope：mainly engaged in real estate development and sales, property leaseing and management,
retail operations and trading, hotel operations, equipment installation and maintenance, construction,
fitting-out and others.
The main product or provides service：the company provides commodity housing housing is a major product,
property leaseing and management services, hotel room service，And construction and installation,
renovation services
(2) Approved financial report
The financial statements were authorized for issue by the board of directors on 13 Auguest 2009.
NOTE 2、Basis of preparation
The Company on a going concern basis, in accordance with actual transactions and matters, financial
statements according to the accrual system.SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
30
NOTE 3、Statement of compliance with the Accounting Standards for Business Enterprises.
The Company’s financial statements for interim financial report 2009 are truly and completely present the
financial position of the Company and of their financial performance and their cash flows for the year then
ended in compliance with the Accounting Standards for Business Enterprises.
NOTE 4、 Summary of significant accounting policies, accounting estimates and prepare the consolidated
financial statements
（1） Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
（2） Functional and presentation currency
The consoliated financial statements are presented in Renminbi Yuan, and subsidiaries registered in foreign
country shall consider the local currency as functional and presentation currency.
（3） Accounting basis and Accounting measurement
The accounting basis of the Group is the accrual system.
Accounting measurements consist of: historical cost, replacement cost, net realizable value, present value, fair
value. An enterprise shall generally adopt historical cost as the measurement basis for accounting elements. If
the accounting elements are measured at replacement cost, net realizable value, present value or fair value, the
enterprise shall ensure such amounts can be obtained and reliably measured.
（4） Foreign currency transactions
Foreign currency transactions during the year are translated at the foreign exchange rates ruling at the
transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the
foreign exchange rates ruling at the balance sheet date. Exchange gains and losses are recognized in profit or
loss.
The results of foreign operations are translated into Renminbi Yuan at the exchange rates approximating the
foreign exchange rates ruling at the dates of the transactions. Balance sheet items are translated into
Renminbi Yuan at the foreign exchange rates ruling at the balance sheet date. The resulting exchange
differences are recognized directly in a separate component of equity.
With the purchase or construction of production in line with the conditions of capital assets related to
exchange rate difference, accordance with the principles borrowing costs.
（5） Cash and cash equivalentsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
31
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of
cash and that are subject to an insignificant risk of changes in value.
（6） Recognition and Measurement of financial assets and financial liability
1、Categories
Financial assets and financial liability are classified into the following categories: financial assets and financial
liability held for trading, held-to-maturity investments, receivables, financial assets available for sale, and other
financial liabilities.
2、Determination of the Fair Value of the financial assets and financial liability
（1）If there is an active market for a financial asset or financial liability, the quoted prices in the active
market shall be used to establish the fair value of the financial assets and financial liability.
（2）There is no active financial instruments market, the valuation techniques used to determine its fair value.
（3）As for the financial assets initially obtained or produced at source and the financial liabilities assumed,
the fair value thereof shall be determined on the basis of the transaction price of the market.
（4）In applying discounted cashflow analysis to determine the fair value of a financial instrument, it shall
use the market returns ratio of other financial instruments with essentially the same contractual stipulations
and features as the rate of capitalization. Short-term receivable and payable with no state interest rate may be
measured at the actual transaction amount when the difference between that amount and its present value is
immaterial.
3、Transaction of financial assets and financial liabilities
The initial reorganization of a financial asset or financial liability held for trading shall measure it at fair value.
Transaction costs shall be charged to the profit or loss for the current period. The payment has been
including in the declared but not yet paid cash dividends or interest paid to the period but not yet receiving
interest, recognized as receivables. Holding companies in the trading of financial assets acquired during the
interest or dividends in cash, recognized as investment income.
The balance sheet date, adopt fair value for trading financial assets and financial liabilities, changes of fair
value will be included in current profit and loss.
The disposal of financial assets or financial liabilities, its fair value and accounted for the initial amount of
the difference recognized as investment income and changes in the fair value adjustment of profit and loss.
4、Held-to-maturity investmentsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
32
The term "held-to-maturity investment" refers to a non-derivative financial asset with a fixed date of maturity,
a fixed or determinable amount of repo price and which the enterprise holds for a definite purpose or the
enterprise is able to hold until its maturity. The following non-derivative financial assets shall not be classified
as investments held to their maturity:
(1) The designated non-derivative financial assets which, at their initial recognition, are measured at their fair
values and of which the variation is included in the current profits and losses;
(2) The non-derivative financial assets which are designated as sellable at their initial recognition; and
(3) Loans and account receivables.
An enterprise shall, on the balance sheet date, make an appraisal on its purpose of holding and ability to hold.
Where there is any change, it shall be dealt with according to the present Standards.
5、Receivables
Should be receiving amount according to the take initial confirmation amount with debtors between the
contract or the agreement
The date of the balance sheet, the receivable amount must account to the amortized cost measurement.
Disposal or recovery of receivables, the difference between actual price and fair value will be counted as gain
or loss for the current period.
6、Sellable financial assets
Sellable financial asset should be made in accordance with the fair value of financial assets and related
transaction costs and is recognized as the initial amount. To pay the price included in the payment period has
not yet received the bonds but has not yet declared or paid cash dividends, recognized as a separate
receivables.
For the sale of financial assets held by the period of interest and cash dividends, will be included in
investment income. The balance sheet date, for the sale of financial assets should be based on fair value, and
the changes in fair value will be included in capital reserve.
7、Other financial liabilities
Other financial liabilities at fair values and relevant transaction expenses to get them are deemed as the initial
confirmation amount. The subsequent calculation adopts the amortized cost method.
8、Impairment of Financial Assets
The end of trading on financial assets other than financial assets, there is objective evidence that theSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
33
impairment occurred, according to their expected future cash flows are lower than the book value of the
difference between the impairment provisions.
（1）Receivables
Provide of the bad debts using the allowance method。At the end of period, if have the objective evidence to
indicate that the receivable amount reduce, then the net book value and the estimate in the future between
the cash flow current value differential computation confirmation the impairment loss.
The end of the period, receivables that are individually significant are subject to individual impairment
assessment, separate impairment test. If there is objective evidence that the incidence of impairment, a
provision for impairment of the receivable is established at the difference between the carrying amount of
the receivable and the present value of estimated future cash flows.
The company based on the same or similar case which had the similar credit risk and actual loss, to define the
specific provision for bad debt.
The criterion of the bad debts: A, the debtor goes bankrupt or the death, pay off the legally after its
bankrupt property or the inheritance, still that is unable to recover the funds. B, the debtor default overdue,
and that is unable to recover the funds.
To the notes of the receivable and prepay credit，this company carries on the impairment test alone, which
has the objective evidence to indicate that it has had the impairment, will be lower than its book value
according to the future cashflow the current value the difference, it is the impairment loss, the provision for
bad debt.
（2）Held-to-maturity investments
Has the objective evidence to indicate that has had the impairment to the due investment, that should be
calculate this investment the cash flow current value in the future, this current value is lower than the book
vale which the difference is the revaluation deficit.
（3）Sellable financial asset
Where a sellable financial asset is impaired, even if the recognition of the financial asset has not been
terminated, the accumulative losses arising from the decrease of the fair value of the owner’s equity which
was directly included shall be transferred out and recorded into the profits and losses of the current period.
The accumulative losses that are transferred out shall be the balance obtained from the initially obtained
costs of the sold financial asset after deducting the principals as taken back, the current fair value and the
impairment-related losses as was recorded into the profits and losses of the current period.SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
34
As for the sellable debt instruments whose impairment-related losses have been recognized, if, within the
accounting period thereafter, the fair value has risen and are objectively related to the subsequent events that
occur after the originally impairment-related losses were recognized, the originally recognized
impairment-related losses shall be reversed and be recorded into the profits and losses of the current period.
The impairment-related losses incurred to a sellable equity instrument. Investment shall not be reversed
through profits and losses. However, the impairment-related losses incurred to an equity instrument
investment for which there is no quoted price in the active market and whose fair value cannot be reliably
measured, or incurred to a derivative financial asset which is connected with the said equity instrument and
which shall be settled by delivering the said equity instrument, may not be reversed.
After an impairment of a financial asset, the interest incomes shall be recognized at the interest rate which is
used as the capitalization rate in the capitalization of the future cash flow when the impairment-related losses
are determined.
（7） Inventories
1、Categories of Inventories
Inventory classification according to real estate development and non-development of products. The real
estate development products are the real estate development products under construction development
products which have been completed, the lands to be developed, etc. The non-real estate development
products including raw materials, finished products and stocks, low-value consumable products and
construction.
2、Measurement of Inventories:
(1) Have been completed is the development of products that have been completed, pending the sale of the
property; under construction is the development of products that have not yet completed the sale of the
property for development purposes; to develop land is acquired by means of, has decided to be developed
for sale or lease land property. To the overall development of land in the project development, all built into
the development of products; in the project development phases, it will be part of a phased development of
land into the development of products in the building, undeveloped land is still retained in the proposed land
development.
(2) Public Facilities Fee: The cost is the actual construction cost incurred. Measured in the non-development
product account. If several estate projects benefit from the same facility, and they stay in the same category.
The cost of fee should be measured according to the allocation of sales area. If they got benefit but in
different categories, the cost measured according to the allocation of the area under the prorated. Until theSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
35
project complete, the cost measures in the assessment into the real estate development products.
(3) Utility Reserve Fund: In Special Administrative Region, the fund is the ratio of 2% of the whole
constructive investment that included the land price of delivery of completed estate. Outside the Region, is
the ratio of 2% of the whole constructive investment of the estate? But it all measures in the
non-development products.
(4) Quality Guarantees: According to the contract amount puts into the account of real estate development.
Also record in the accounts payable at the same time. The actual payment incurs after the expiry of
guarantee.
(5) Implement the perpetual inventory system; all kinds of inventories are recorded in the actual cost, a
weighted-average valuation for sell. The real estate development records in the measurement of identification.
As for the low value properties, implement one amortization method when used.
(6) Inventories are written down to the lower of the cost and the revised net realizable value. On the basis of
comprehensive inventory, those destroyed, in whole or part outdated or the sales price is lower than its cost.
Should decline the value. And the value is the difference from the cost and net realizable value. Longterm
equity investments.
（8） Long term equity investment
1、 Long term equity investment can be classified: Investment in subsidiary; investment in associate;
investment in joint venture; other long term investment in an entity which the investor does not have jointly
control and significant influence, and also the fair value of this long term investment can not measure reliably
in the active market.
2、 Investment in subsidiary
For the investment in subsidiary, initially cost of investment should be accounted for at its carrying value of
the investing entity. The direct cost relating to the acquisition, are recognized as expenses to income
statement. The difference between the initially cost of investment and the fair value paid for the investment
should be adjusted to capital reserve. If the capital reserve is not enough to deduct the difference, the surplus
should be adjusted to retained earnings.
For the investment in subsidiary, which is not under the same control, initially cost of investment should be
accounted for at its fair value paid for the investment and all the direct cost relating to the investment. The
difference between initially cost of investment and carrying value of the investing entity at the date of
acquisition are recognised as profit/loss for the year. If the initially cost of investment is more thanSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
36
identifiable assets and liabilities for the investment entity at the date of acquisition, the surplus should be
treated as long term investment in the investor/parent’s book. This surplus can be treated as goodwill,
recorded in the consolidated accounts. If the initial cost of investment is less than the identifiable assets and
liabilities of the investing entity at the date of acquisition, the difference should be recognized as expense for
the year.
Goodwill should not be amortized, but acquirer shall test it for impairment annually instead. Impairment test
for goodwill is part of impairment testing the cash generating units to which it related. Once the impairment
loss is recognized, it cannot be reverse back.
In the investor/parent’s financial statement, costing method is used to account for the long term equity
investment. Consolidated financial statement should be included subsidiary.
If subsidiary has the indication for impairment as at the balance sheet date, recoverable amount should be
measured. If the recoverable amount is less than its fair value, impairment loss should be provided. Provision
for impairment cannot be reverse back in the following accounting period.
For disposal of the long term investment, the difference between sales proceeds and carrying value,
recognized as profit/loss for the investment.
3、 Investment in associate and joint venture
For the investment in associate, initial cost of investment should be account for the fair value paid for the
investment and related cost for the investment.
Investment in associate is acquired by non-monetary asset, if this transaction has business value, and the fair
value of exchangeable assets can be measured reliably, therefore, initial cost of investment should be account
at fair value of the exchangeable assets and related tax expenses. Difference of fair value and carrying value
of the exchangeable assets, should be recognized as profit and loss for the year. If the two requirements are
not met, then carrying value of the exchangeable assets and related tax expenses should be account at initial
cost of investment.
If the associate is acquired by debt restructuring, initial cost of investment should be the market value of the
shares acquired. The difference of the initial cost of investment and carry value of the debt should be
recognized as profit/loss for the year.
Equity method should be used for subsequent measurement of investment in associate. Once measuring
gain/loss for investing in associate, it should be based on the fair value of identifiable net assets as at
acquisition date. If associated company’s accounting policy and accounting period is difference with investingSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
37
company, then it should follow investing company’s accounting policy and accounting period, and measure
the investment profit or loss
If associated company is making a loss, carrying value of this investment and net investment equity can be
reduce to zero, except for other responsibilities to be bear by the investing company.
If associate company has the indication for impairment as at the balance sheet date, recoverable amount
should be measured. If the recoverable amount is less than its fair value, impairment loss should be provided.
Provision for impairment cannot be reverse back in the following accounting period.
For disposal of the long term investment, the difference between sales proceeds and carrying value,
recognized as profit/loss for the investment. Any movements which recorded in owner’s equity, during the
disposal, it should be reverse out, and recognized as profit/loss for the year proportionately.
The treatment of accounting principal for investment in joint venture is the same as investment in associate.
4、 Other long term investment, (no control and significant influence for the investing entity; no active
market price; fair value can not be measured reliably)
Investment in an entity which has no control power and significant influence, no active market value and fair
value can not be measured reliably, called other long term investment. The recognition criteria of the initial
cost of investment are same as the investment in associate.
Costing method is used for subsequent measurement for other long term investment.
When impairment appears, the difference between net present value of the market yield for similarity
financial instrument and carrying value of the investment should be recognized impairment loss, recorded in
income statement. Impairment can not be reverse back in the following accounting period.
For disposal of the long term investment, the difference between sales proceeds and carrying value,
recognized as profit/loss for the investment
（9） Investment Property
1、Recognition of Investment property
Investment property shall be recognized as an assets when, and only when both of the following conditions
are satisfied: （1）The held for earn rentals and/or capital appreciation, or both（; 2）Investment property shall
be capable of being measured and sold separately（; 3）The economic benefits pertinent to this investment real
estate are likely to flow into the enterprise; （4）The initial measurement of the investment real estate shall be
made at its cost.SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
38
2、Initial measurement
Investment property should be measured in cost model
The cost of investment property from the transfer of non-monetary assets were taken into accounts of the
transfer assets and the related expenditure, if it is the real exchange with commercial and the value of assets
could be measured reliably. If not, the difference between the fair value and cost of the transfer assets should
be taken into accounts of current profit and loss.
The costs of investment property from debt restriction use the fair value as the initial investment cost. The
difference between the cost and book value includes in current profit and loss.
3、Subsequent Measurement
An enterprise shall use the cost model for subsequent measurement of investment property at the balance
sheet date.
4、Transfer and Disposals
Transfer to, or form, investment property shall be made when, and only when, there is a change in use
An investment property shall be derecognized on disposal; the enterprise shall deduct the book value of the
investment property as well as the relevant taxes from the disposal income, and include the amount in the
current profits and losses.
（10） Recognition standard of fixed assets, Classification and Depreciation
1、Standard of fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to
others, or for administrative purposes; they have useful lives over one fiscal year.
2、Recognition standard of fixed assets
（1）It is probable that economic benefits associated with the assets will flow to the enterprise;
（2）The cost of the fixed assets can be measured reliably.
3、Classification of fixed assets:
The Company’s fixed assets are classified as buildings and constructions, machinery equipment,
transportation equipment, other equipment and fixed assets fitment.
4、Initial measurement of fixed assetsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
39
Fixed assets are recorded at the actual cost on acquisition. The cost of fixed assets purchased includes
purchase price, Import tariffs, transport and insurance and other related costs as well as the fixed assets
reached before the intended use of the necessary expenditure. Where payment for the purchase price of a
fixed asset is deferred beyond normal credit terms, such that the arrangement is in substance of a financing
nature, the cost of the fixed asset shall be determined based on the present value of the purchase price. The
difference between the purchase price and its present value shall be recognized in profit or loss over the
period of credit, except where it is capitalized in accordance with borrowing cost principle.
5、Depreciation method
Depreciation of fixed assets is provided for on a straight-line basis, the depreciation rate is recognized in
accordance with fix assets, estimated useful life (5% of original value) and estimated residual rate of fixed
assets. Annual depreciation rate of fixed assets by categories are as follows：
Category Estimated useful life (year)
Annual depreciation
rate(％)
Buildings and constructions 30 3.17%
Machinery equipment 7 13.57%
Transportation equipment 6 15.83%
Other equipment 5 19%
6、Subsequent Expenditure of Fixed Assets
Subsequent expenditure is only recognized as an asset when it meets two conditions at the same time: Firstly,
it is probable that future economic benefits associated with the expenditures will flow into the enterprise.
Secondly, the cost can be measured reliably. If not meets that, the expenditures should be included in the
current profit and loss.
Subsequent expenditure of operating lease should be capitalized, as long-term prepaid expenses, which
amortize in a reasonable period.
Impairment of Fixed Assets
Fixed Assets should be estimated the recoverable amount if there is an indication. The recoverable amount is
according to the high one of net value of fair value minus the disposal with the present value of the future
cash flows. The estimation should be based on individual assets, if it is difficult to estimate the recoverable
amount, change into estimating the group of assets it belongs to. Once provision for impairment, it could
not be reversed in later accounting period.
（11） Construction-in-progressSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
40
Construction-in-progress includes the pre-construction preparation, the under construction, installation,
technical construction, overhaul project and so on. It measures in actual cost incurred. And are taken into
accounts of fixed assets to record before used.
On the balance sheet day, estimate the impairment of that long-term suspension and will not re-started in
three years. The impairment estimation is book value minus the recoverable amount. Once provision for
impairment, it could not be reversed in later accounting period.
（12） Intangible assets
Intangible assets including intangible assets with a finite useful life and intangible assets with an indefinite
useful life.
1、Calculation method of intangible assets
An intangible asset shall be measured initially
The cost of self-developed intangible assets shall include the total expenditures incurred during the period
from the time when it meets the provisions of Standards to the time when the expected purposes of use are
realized.
2、Amortization of intangible assets
（1）With regard to intangible assets with limited service life
Useful life in the period, with the use of intangible assets related to the economic interests of the consistent
realization of the expected amortization method, not a reliable way of determining expected to achieve,
intangible assets shall be amortized by the straight-line method.
Taxi license shall be amortized for 38 years.
（2）Intangible assets with uncertain service life may not be amortized.
3、Impairment of Intangible Assets
On balance sheet day, make impairment testing to the uncertain life of intangible assets.
If there is an indication of impairment on balance sheet day for intangible assets with the finite useful life.
Estimate the recoverable amount. If the amount is lower than the book value, the carrying value of
intangible assets will be written down to its recoverable amount. And the cut amount recognized as
impairment losses, included in the current profit and loss period.
Once provision for impairment, it could not be reversed in later accounting periodSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
41
（13） Other assets accounting method
Long-term prepaid expenses amortize among the benefit periods average.
（14） Borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on
borrowings, ancillary expenses, and exchange balance on foreign currency borrowings.
Where the borrowing costs incurred to an enterprise 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 on the basis of the actual
amount incurred, and shall be recorded into the current profits and losses.
1、capitalized
The borrowing costs shall not be capitalized unless they simultaneously meet the following 3 requirements:
（1）expenditure for the asset are being incurred；
（2）borrowing cost are being incurred；
（3）The necessary construction or production activities to make the assets ready for use or sales have been
launched.
2、Determination of the amount of capitalized
As for specifically borrowed loans for the acquisition and construction or production of assets eligible for
capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost
incurred of the specially borrowed loan at the present period minus the income of interests earned on the
unused borrowing loans as a deposit in the bank or as a temporary investment.
Where a general borrowing is used for the acquisition and construction or production of assets eligible for
capitalization, the enterprise shall calculate and determine the to-be-capitalized amount of interests on the
general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative
asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used.
The capitalization rate shall be calculated and determined in light of the weighted average interest rate of the
general borrowing.
3、Capitalized of Suspension
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and theSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
42
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. If the interruption is a necessary step for making the qualified asset under acquisition
and construction or production ready for the intended use or sale, the capitalization of the borrowing costs
shall continue.
4、Capitalized of ceased
When the qualified asset under acquisition and construction or production is ready for the intended use or
sale, the capitalization of the borrowing costs shall be ceased. After the borrowing costs incurred in the
current period expenses
（15） Employee Benefits
The term “employee benefits “refers to all kinds of payments and other relevant expenditures given by
enterprises in exchange of the services offered by the employees. Employee benefits include: (1) Wages,
bonuses, allowances and subsidies for the employees;(2) Welfare expenses for the employees;(3) Medical
insurance, endowment insurance, unemployment insurance, work injury insurance, maternity insurance and
other social insurances; (4) Housing accumulation fund;(5) Labor union expenditure and employee education
expenses;(6) Non-monetary benefits;(7) Compensations for the cancellation of the labor relationship with
the employees; and (8) Other relevant expenditures of services offered by the employees.
During the accounting period of an employee' providing services to an enterprise, the enterprise shall
recognize the compensation payable as liabilities. Except for the compensations for the cancellation of the
labor relationship with the employee, the enterprise shall, in accordance with beneficiaries of the services
offered by the employee; cost of product, cost of services, cost of fixed assets, intangible assets or profit or
loss for the current period, shall be recognized.
（16） Contingent liability
The obligation pertinent to a contingency shall be recognized as a provision when the following conditions
are satisfied simultaneously:
（1）the obligation is a current obligation of the enterprise;
（2）it is probable that an outflow of economic benefit will be required to settle the obligation;
（3）the amount of the obligation can be measured reliably
A provision shall be recognized when an onerous contract and obligation to restructure incurred by anSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
43
enterprise satisfies the requirements of the above conditions
The amount of a provision recognized of expenditure required to settle a provision is expected to be
reimbursed of the best estimates of measurement.
（17） Revenue
（1）revenue from sales goods shall be recognized only when all of the following conditions are satisfied:
A the enterprise has transferred to the buyer the significant risks and rewards of ownership of the goods;
B the enterprise retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
C the amount of revenue can be measured reliably；
D it is probable that the economic benefits associated with the transaction will flow to the enterprise;；
E the associated costs incurred or to be incurred can be measured reliably
According to the principles above, the Company established real estate sales revenue is recognized, must
satisfied the following four conditions at the same time:
A、Real estate is completed,，and is completed checking and accepting;
B、Signed a contract of sale and make recording in Land Department.
C、Installment, if it is deferred for receiving money with financing, the cost should be measured in present
value according to the contract price. ；Mortgage, has been received, and have completed the first phase of
the mortgage loan approval procedures;
D、Agreed in the contract of sale and transfer the property to buyers.
（2）Rendering of service，In case on the preparation date of balance sheet the results about service
transaction can be reliably evaluated, the labor income will be confirmed by the completion percentage
method.
Company has estimated the costs of determining the proportion of the total cost of providing labor services,
determinate of the progress of the completion of transactions.
In case the service transaction results on the preparation date of balance sheet cannot be reliably evaluated.
In case the service costs that have occurred can be compensated, the service income will be confirmed based
on such service costs and the same amounts will be settled as the service costs. In case the service costs thatSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
44
have occurred cannot be compensated, such service costs will be accrued to the current profit and loss and
will not be confirmed as the service costs.
（3）Use by others of enterprise assets，In case the economic benefits related to the transaction will probably
flow into the enterprise and the income amounts can be reliably calculated, The interest income amount will
be calculated and determined based on the use time of currency capital from the Company by others and
actual interest rate. The income amount of use expenses will be calculated and determined subject to the
charging time and method agreed in the relevant contracts and agreements.
（18） Government Grants
A government grant is transfer of monetary assets or non-monetary assets from the government to an
enterprise at no consideration, excluding the contribution from the government as the owner of the
enterprise to enterprise. The company’s government grants are classified into government grants relate to
assets and government grants relate to income.
If a government grant is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government grants is a non-monetary asset, it shall be measured at its fair value. If its fair value
cannot be obtained in a reliable way, it shall be measured at its nominal amount.
The government grant pertinent to assets shall be recognized as deferred income, equally distributed within
the useful lives of the relevant assets, and included in the current profits and losses. But the government
grants measured at their nominal amounts shall be directly included in the current profits and losses.
The government grant related to income, the grant used for compensating the related future expenses or
losses of the enterprise shall be recognized as deferred income and shall included in the current profits and
losses during the period when the relevant expenses are recognized; the grant used for compensating the
related expenses or losses incurred to the enterprise shall be directly included in the current profits and
losses.
（19） Income Taxes
The enterprise implies the balance sheet liability method to measure its income tax. Deferred tax assets and
deferred tax liability arises from the temporary differences between taxable base of an asset or liability and its
carrying amount in the balance sheet. The deferred tax assets and deferred tax liability measure in the
applicable tax rates in accordance with the expected recovery of assets or liquidation of liabilities on balance
sheet day.
The confirmation of deferred tax assets uses the probable deductions to the deductible temporary difference
as its limits in future period.SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
45
It prohibits the recognition of such deferred tax assets and liabilities of subsidiaries and associates to the
extent that:
a. it is probable that the temporary difference will not reverse in the foreseeable future
b. the parent is able to control the timing of the reversal of the temporary difference
（20） Business Combinations
A business combinations refers to a transaction or event that brings together of separate enterprises into one
reporting entity. Business combinations are classified into the business combinations involving enterprise
common control under and the business combinations not involving enterprise under common control.
1.For a business combination involving enterprise common control: A business combination in which all of
the combining enterprises are ultimately controlled by the same party or the same parties both before and
after the business combination and on that control is not transitory. Assets and liabilities that are obtained by
the absorbing party in a business combination shall be measured at their carrying amounts at the
combination date as record by the party being absorbed. The different between the carrying amount of the
net assets obtained and the carrying amount of the consideration paid for combination(or the aggregate face
value of shares issued as consideration), adjust the share premium (or capital premium) in capital surplus, if it
is insufficient for reduction, adjust retained earnings. Date of acquisition is the date on which control of the
net assets and operations of the acquire is effectively transferred to the acquirer.
2、For a business combination not involving enterprise common control: A business combine in which all of
the combining enterprises are not ultimately controlled by the same party or parties before and after the
combination. The company shall measure the assets given and liabilities incurred or assumed as consideration
of the business combination at their fair values on the acquisition date; any difference between the fair value
and the carrying amount of an item shall be recognized in profit or loss for the current period. Acquisition
date is the date on which the group effectively obtain control of the acquire.
（21） Preparation of Consolidated Accounting Statements
1、Preparation of consolidated accounting statements
The basis for the consolidated to the consolidated of the parent companies and incorporated subsidiary of
the accounting statements，Will be consolidated with the parent company of the important inter-subsidiary
investment, demand, inventory and procurement, and marketing of insider trading profits to offset itemized
consolidated And calculate interests of minority shareholders and minority shareholders of profit and loss.
2、Reported of minority interest and the profit or lossSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
46
The portion of net profits or losses of subsidiaries for the period attributable to minority profit or loss shall
be presented in the consolidated income statement below the net profit line item as “minority profit or loss”
That portion of a subsidiary’s equity attributable to minority interests shall be presented as "minority
interest" in the consolidated balance sheet within owners’ equity.
3、Deal with the excess loss
When the amount of loss for the current period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders’ portion of the opening balance of owners’ equity of the subsidiary, if the
minority shareholders have a binding obligation under a statute or an agreement and are able to make an
additional investment to cover the loss, the excess amount of loss shall be allocated against minority interests.
Otherwise, the excess amount of loss shall be allocated against owners’ equity attributable to the parent, the
subsidiary subsequently reports profits, and such profits shall be allocated to owners’ equity attributable to
the parent until the minority shareholders’ share of losses previously absorbed by the parent has been
recovered.
4、Current increases and decreases in consolidated statement handling of the subsidiary
Where a subsidiary has been acquired through a business combination involving enterprises under common
control, the subsidiary’s revenue, expenses and profit from the beginning to the end of the reporting period
in which the combination takes place shall be included in the consolidated income statement. And adjust the
opening number. Where a subsidiary has been acquired through a business combination not involving
enterprises under common control, the revenue, expenses and profit of that subsidiary from the acquisition
date to the end of the reporting period shall be included in the consolidated income statement.
During the reporting period, disposed of a subsidiary, expenses and profit of the subsidiary from the
beginning of the reporting period to the date of disposal shall be included in the consolidated income
statement.
NOTE 5、Taxation
The main tax type and tax rate：
Type Taxable basis Tax rate
Business tax
proceeds from sales of properties、leasing income、property
management income
5%
Construction, installation of income 3%
Value added tax (“VAT”) Goods sales income 17%
Construction tax Business tax and value added tax payable 1%SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
47
Education surcharge Business tax and value added tax payable 3%
Increment tax on land value Sales revenue of properties *1
Income tax Income tax payable *2
* 1 (According to Provisions of Shenzhen Municipal People’s Government and the local Inland Revenue
Department. From Nov 1st 2005, the company or individuals should pay land value-added tax if they gain
income from the real estate development or transfer in Shenzhen. “Pay in advance, settlement after, refund
for any overpayment or a supplemental payment for any deficiency. In other words, prepaid the tax on the
basis of the income from real estate transfer before the project completed (the pre-charge rate of villas,
resorts, hotel–style apartment on sales of 1%, while 0.5% of other real estate sales). Till it all completed,
handle settlement after clear the account. Clearing the land valued added tax rate of used ultra-progressive
tax rate. Valued-added ratio of 50% or less by 30 percent the proportion of value-added tax( general
standard of domestic value-added ratio of less than 20% of the land exempt tax from value-added tax).
Value-added ratio of more than 50 % did not exceed 100% of parts by 40 percent the proportion of the levy.
Value-added tax of more than 100% does not exceed 200% of the parts by 50 percent the proportion of the
levy. Value-added ratio of more than 200% of the parts by 60 percent the proportion of the levy.
* 2、Enterprise income tax rate is as follows：
Items Income tax rate
Domestic Enterprises
- enterprises in Shenzhen 20%
- enterprises outside Shenzhen 25%
Enterprises in HK 17.50%
* According to the China's Corporate Income Tax ("CIT") Law that was passed by the Standing
Committee of the Tenth National People's Congress ("NPC") on 16 March 2007 and the Notice of the State
Council on the Transitional Preferential Policy regarding implementation of the CIT Law (Guo Fa [2007]
No.39) issued on 26 December 2007, income tax rate is revised to 25% with effect from 1 January 2008. i.e.,
pay the payable tax amount calculated at a tax rate of 18% for the year 2008, the payable tax amount
calculated at a tax rate of 20% for the year 2009, the payable tax amount calculated at a tax rate of 24% for
the year 2011 and the payable tax amount calculated at a tax rate of 25 % for years as of 2012. As at 30 June
2008, the original implementation of the corporate tax rate 24% are calculated based on the applicable
income tax rates of 25% from 1 January 2008.
NOTE 6、Enterprises combination and the consolidated financial statements
1、 Include in the scope of the consolidated of the subsidiariesSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
48
Subsidiaries included in the scope of consolidated in 2009 is as follows:
(1) Holding through the merger of the subsidiary to obtain
A、Subsidiaries has been acquired through a business combination involving business combination under
same control of the subsidiaries;
The company haven’t subsidiaries has been acquired through a business combination involving enterprise
combination under same control
B、Subsidiaries has been acquired through a business combination not involving business combination under
same control
30 June 2009
Equity
holding
Percentage (%)
Voting power
(%)
Name of
subsidiaries
Registered
place
Registered
capital
(in ten thousand
Yuan)
Nature of
business and
principal
activities
Actual
investment
(in ten
thousand
Yuan）
Net
investment in
subsidiary in
substance
(in ten
thousand
Yuan）
Direct
Indirect
Direct
Indirect
Shan Tou
Special
Economic Zone
Real Estate Ltd.
Shan Tou HKD3000
Property
development 2108 2108 -- 100 -- 100
(2) Subsidiaries has been acquired through new establishment
30 June 2009
Equity
holding
(%)
Voting power
Name of (%)
the Subsidiary
Registered
place
Registered
capital (in ten
thousand
Yuan)
Nature of
business and
principal
activities
Actual
investment
(in ten
thousand
Yuan）
Net
investment
in
subsidiary
in
substance
(in ten
thousand
Yuan）
Direct Indirect Direct Indirect
Shenzhen Petrel
Hotel Co. Ltd.
Shenzhen
￥3,000
Hotel
operations
3,000 3,000 68.10% 31.90% 68.10% 31.90%
Shenzhen City
Property
Management
Ltd.
Shenzhen
￥725
Property
management
725 725 95% 5% 95% 5%
Shenzhen Zhen
Tung
Engineering
Ltd
Shenzhen
￥1,000
Fitting-out
contracting
and
maintenance
1,000 1,000 73% 27% 73% 27%
Shenzhen City
We Gen
Construction
Management
Ltd.
Shenzhen
￥800
Construction
project
management
800 800 75% 25% 75% 25%
Shenzhen City
Car Rental Ltd.
Shenzhen
￥1,029
Car rental
1,029 1,029 55% 45% 55% 45%
Shenzhen
Shenfang Car
Park Ltd.
Shenzhen
￥4,250
Develop and
operate car
park
4,250 4,250 70% 30% 70% 30%
Shenzhen City
Shenfang
Investment Ltd.
Shenzhen
￥1,000
Investment
and
management
1,000 1,000 90% 10% 90% 10%
Shenzhen City
Shenfang Free
Trade Trading
Shenzhen
￥500
Trading of
Import and
export
500 500 95% 5% 95% 5%SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
49
30 June 2009
Equity
holding
(%)
Voting power
Name of (%)
the Subsidiary
Registered
place
Registered
capital (in ten
thousand
Yuan)
Nature of
business and
principal
activities
Actual
investment
(in ten
thousand
Yuan）
Net
investment
in
subsidiary
in
substance
(in ten
thousand
Yuan）
Direct Indirect Direct Indirect
Ltd.
Shenzhen City
SPG Bao An
Development
Ltd.
Shenzhen
￥2,000
Property
development
2,000 2,000 95% 5% 95% 5%
Shenzhen City
SPG Long
Gang
Development
Ltd.
Shenzhen
￥3,000
Property
development
3,000 3,000 95% 5% 95% 5%
Shenzhen
Special
Economic
Zone Real
Estate (Group)
Guangzhou
Property and
Estate Co., Ltd.
Guangzhou
￥2,000
Property
development
2,000 2,000 95% 5% 95% 5%
Beijing fresh
peak property
development
management
limited
company
Beijing
US$1,000
operating of
Real estate
7,671 7,671 75% 25% 75% 25%
Beijing SPG
Property
Management
Limited
Beijing
￥50
Property
management
50 50 10% 90% 10% 90%
Shenzhen Lain
Hua Industry
and Trading Co.
Ltd.
Shenzhen
￥1,000
Trading of
equipment
and
provision of
renovation
material
1,000 1,000 95% 5% 95% 5%
Fresh Peak
Enterprise Ltd.
Hong Kong
HKD100
Investment
and
management
HKD82 9,668
100%
-- 100% --
Wellam Ltd.
Hong Kong
HKD1
Investment
holding
HKD1 HKD1 -- 100% -- 100%
Shantou SEZ
Wellam Fty
Bldg., Dev. Co.
Shantou
US$600
Property
development
US$600 US$600 -- 100% -- 100%
Great Wall
Estate Co., Inc
U.S.A
USD50
Property
development
USD35 10,376 70% -- 70% --
Fresh Peak
Holdings Ltd.
Hong Kong
HKD100
Investment
and
management
HKD100 64,479
100%
-- 100% --
Skill Elite Ltd.
Hong Kong
HKD1
corporate
financing
HKD1 HKD1 -- 100% -- 100%
Fresh Peak
Investment Ltd.
Hong Kong
HKD100
Properties
investment
HKD55 HKD55 -- 55% -- 55%
Openice Ltd.
Hong Kong
HKD100
Investment
and
management
HKD120 HKD120 20% 80% 20% 80%
Barenie Co.
Ltd.
Hong Kong
HKD1
Properties
investment
HKD0.8 HKD0.8 -- 80% -- 80%
Keyear
Development
Ltd.
Hong Kong
HKD100
Investment
holding
HKD100 HKD100 -- 100% -- 100%
Guangzhou
Huangpu Xizun
real estate
limited
company
Guangzhou
HKD3980
Property
development
HKD3980 HKD3980 -- 100% -- 100%
Fresh Peak Real
Estate Dev.
Construction
Wuhan
US$400
Property
developme
nt
US$400 US$400 -- 100% -- 100%SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
50
30 June 2009
Equity
holding
(%)
Voting power
Name of (%)
the Subsidiary
Registered
place
Registered
capital (in ten
thousand
Yuan)
Nature of
business and
principal
activities
Actual
investment
(in ten
thousand
Yuan）
Net
investment
in
subsidiary
in
substance
(in ten
thousand
Yuan）
Direct Indirect Direct Indirect
(Wuhan) Co.
Ltd.
2、 Companies excluded from the scope of combination
30 June 2009
Equity
holding
(%)
Voting power
(%)
Name of
the Companies
Place of
registration
Registered
capital (in
ten
thousand
Yuan)
Nature of
business and
principal
activities
Actual
investment
(in ten
thousand
Yuan）
Net
investment in
companies in
substance
(in ten thousand
Yuan） Direct Indirect Direct Indirect
Shenzhen
Shenfang
Department Store
Co. Ltd.
Shenzhen
￥1,000
Commercial
goods supplier
1,000 1,000 95% 5% 95% 5%
Shenzhen
CyberPort Co.,
Ltd*2
Shenzhen
￥2,000
Information
Technology
Advisory
1,400 1,400 70% -- 70% --
Shenzhen Real
Estate
Consolidated
Service Co., Ltd.*3
Shenzhen
￥1,371
Construction
material,
consume goods
596 596 100% -- 100% --
Shenzhen Shen
Fang Industrial
Development Co.,
Ltd.*4
Shenzhen
￥300
Invest in
industrial
projects
450 450 100% -- 100% --
Shenzhen Tefa
Real Estate
Consolidated
Service Co., Ltd.*5
Shenzhen
￥221
Construction
and decoration
818 818 100% -- 100% --
Bekaton Property
Limited*6
Australia
US$20
Property
Development
91 1,347 60% -- 60% --
Paklid Limited*6
Hong Kong
HKD50
Property
construction
and
trading of
construction
materials
20 1,127 60% 40% 60% 40%
Shenzhen City
Shenfang
Construction and
Decoration
Materials Ltd.*7
Shenzhen
￥268
construction
materials
268 268 100% -- 100% --
Shenzhen
ZhongGang
Haiyan Enterprise
Ltd.*8
Shenzhen
￥1,900
Tourism
Restaurant
1,294 1,294 68% -- 68% --
Shenzhen Xing
Dongfang Store
Ltd.*9
Shenzhen
￥2,000
Domestic
commercial
goods supply
1,850 1,850 92.5% 7.5% 92.5% 7.5%
Guangdong
Province Fengkai
Lain Feng Cement
Manufacturing Co.,
Ltd.*10
Guangdong
Fengkai
US$800
Manufacturing
and trading
in cement
products
12,126 12,126 -- 90% -- 90%SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
51
*1 Shenzhen Shenfang Department Store Co. Ltd.：
The shareholders meeting was held on October 29 2007, the resolution to terminate business, the write-off
and formed a group to carry out the liquidation. The liquidation group issued a notice of liquidation on
December 7, 2007. According to the “Enterprise Accounting Standards No.33- the Consolidation Financial
Statement”, the Store will not be include in the Group’s consolidation financial statement of scope of the
merger. The book value of the investment account of the Group to zero.
*2 Shenzhen CyberPort Co., Ltd
The shareholders’ meeting was held on May 12, 2008, the resolution to terminate business, the write-off and
formed a group to carry out the liquidation. The liquidation group issued a notice of liquidation on
December 5, 2008. According to the “Enterprise Accounting Standards No.33- the Consolidation Financial
Statement”, the Store will not be include in the Group’s consolidation financial statement of scope of the
merger.
*3 Shenzhen Real Estate Consolidated Service Co., Ltd.
Operating period of January 26, 1983 to August 28, 1999, the company has ceased operations for many years,
for failing to take part in the annual inspection in February 8, 2002 in accordance with the law and revoke
their licenses.
*4 Shenzhen Shen Fang Industrial Development Co., Ltd.
Operating period of October 3, 1993 to October 3, 1998, the company has ceased operations for many years,
for failing to take part in the annual inspection in February 8, 2002 in accordance with the law and revoke
their licenses.
*5 Shenzhen Tefa Real Estate Consolidated Service Co., Ltd
Operating period of March 7, 1983 to April 14, 1995, the company has ceased operations for many years, for
failing to take part in the annual inspection was in 2004 in accordance with the law before their business
licenses.
*6 Bekaton Property Limited and Paklid Limited
The Departments of the two companies of the Company were set up offshore companies at the early years.
December 13, 2000 the company held a board of directors, the two companies decided to carry out
liquidation.
*7 Shenzhen City Shenfang Construction and Decoration Materials Ltd
Operating period of January 1, 1984 to July 6, 2004, the company has ceased operations for many years, forSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
52
failing to take part in the annual inspection in February 8, 2002 was to revoke the business license.
*8 Shenzhen ZhongGang Haiyan Enterprise Ltd
Operating period of October 16, 1984 to October 16, 2004, the company has ceased operations for many
years, for failing to take part in the annual inspection in 1999 was to revoke the business license.
*9 Shenzhen Xin Dongfang Store Ltd.
Operating period of June 7, 1983 to June 7, 1998, the company has ceased operations for many years, for
failing to take part in the annual inspection in January 10, 2001 in accordance with the law and revoke their
licenses.
*10 Guangdong Province Fengkai Lian Feng Cement Manufacturing Co., Ltd.
The company's total asset (including tangible and intangible assets) was auction debt at January 22, 2006, the
Group's investment in the company's book value of zero.
In addition to *1、*2 、*10 of above are not included in the scope of the merge of the investment unit was
many years ago to stop operating, and the suspension of business licenses for many years, these companies
have been unable to carry out business activities, the company has no control over its business activities.
According to the “Enterprise Accounting Standards No.33- Consolidation financial Statements”, these
companies are not included in the Group’s consolidation financial statements of the scope of the merger.
The Group’s investment above, and the constitute the company’s book value of investment to zero.
3、 Conversion of foreign currency statement
Great Wall Estate Co., Inc. use U.S. dollar as the functional and presentation currency, for foreign currency
conversion, the assets and liabilities of balance sheet, the balance sheet date using the spot exchange rate, the
owner’s equity account use spot exchange rate except “retained earnings”. The accounts of revenue and
expense in income statement used the approximate rate of spot exchange. The translation difference should
list as “translation differences of foreign currency financial statements” in owner’s equity of balance sheet.
The differences arising from related party transactions, offset when consoliated.SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
53
NOTE 7 、Notes to the consolidated and the Company’s financial statements
1、 Cash at bank and on hand
30 June 2009 31 December 2008
Original
currency
Exchange
rate
RMB
equivalent
Original
currency
Exchange
rate
RMB
equivalent
Cash on hand
RMB 361,744.06 361,744.06 328,739.70 328,739.70
HKD 34,767.99 0.8816 30,652.86 45,458.39 0.8825 40,118.75
USD 2,000.00 6.8325 13,665.60 2,000.00 6.8397 13,679.40
406,062.52 382,537.85
Cash at bank
RMB 230,137,828.00 230,137,828.00 266,123,403.00 266,123,403.00
HKD 29,994,765.52 0.8816 26,444,585.07 29,920,395.95 0.8825 26,405,647.07
USD 82,586.48 6.8325 564,296.90 93,200.04 6.8397 637,460.31
CAD 197,316.14 5.9134 1,166,809.26 196,266.82 5.5973 1,098,564.27
AUD 41,576.42 5.4826 227,946.90 39,089.22 4.7304 184,907.64
258,541,466.13 294,449,982.29
Other cash
balances
RMB 29,157,075.49 29,157,075.49 33,371,352.68 33,371,352.68
HKD 163,842.30 0.8816 144,449.93 237,409.21 0.8825 209,520.75
29,301,525.42 33,580,873.43
288,249,054.07 328,413,393.57
Other currencies, mainly the owners of funds to the bank to apply for mortgage loans to purchase the
Company's real estate development. Lending banks have asked the Company to provide mortgage lending
margin. (see note 7.14)
Cash at bank and on hand is 12.23% less than the previous period. Mainly because of this year to buy land to
pay the purchase price and received amount of selling real estate has decreased
2、 Financial assets held for trading
30 June 2009 31 December 2008
stock investment 286,164.90 189,488.50
Including.：cost 266,105.00 303,265.00SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
54
Change in the fair value 20,059.90 -113,776.50
3、Accounts receivable
（1）The aging of accounts receivable by categories:
30 June 2009 31 December 2008
aging
Amount proportion %
Provision for bad
debts
Amount proportion %
Provision for
bad debts
Within 1 year 905,959.62 2.78 -- 1,860,981.24 5.54 --
1 to 2 years 129,002.96 0.40 -- 387,433.51 1.15 --
2 to 3 years 96,183.42 0.30 -- 213,704.58 0.64 --
Over 3 year 31,439,686.83 96.52 18,629,679.11 31,104,798.15 92.67 18,629,679.11
32,570,832.83 100.00 18,629,679.11 33,566,917.48 100.00 18,629,679.11
（2）The symbol of credit risk identified by customers categories
30 June 2009 31 December 2008
Book balance Proportion % Provision for bad
debts Book balance Proportion % Provision for bad
debts
category 1 -- -- -- -- -- --
category 2 14,132,195.58 43.39 11,574,556.00 14,132,195.58 42.10 11,574,556.00
category 3 18,438,637.25 56.61 7,055,123.11 19,434,721.90 57.90 7,055,123.11
32,570,832.83 100.00 18,629,679.11 33,566,917.48 100.00 18,629,679.11
category 1: refers to accounts receivable with significant individual amount, such individual amount is more
than 10 million yuan
category 2: individual is not a significant amount of credit risk, but according to the characteristics of the
portfolio after portfolio of risky accounts receivable, aging of such fund in three years, and still less likely to
recover the money.
category 3： Other is not significant accounts receivable
（3）As at 30 June 2009，Top five of accounts receivable Units (Personal) as follows:
30 June 2009 31 December 2008
Amount 9,757,303.02 9,502,590.02
Proportion of total other
receivable accounts
29.96 29.07
（4）Accounts receivable balance at the end of 5% without holders of company (including 5%) over the
right to vote the shares outstanding units of shareholders.SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
55
（5）In accounts receivable at the end of the balance of account receivable related parties sum.(see note 9
（3）、3)
4、 Advance to suppliers
30 June 2009 31 December 2008
aging
Amount proportion % Amount proportion %
Within 1 year 11,327,457.37 51.31 13,646,498.46 56.08
1 to 2 years 23,136.15 0.10 2,000.00 0.01
2 to 3 years 699,952.24 3.17 27,058.00 0.11
Over 3 years 10,027,531.43 45.42 10,656,572.66 43.80
22,078,077.19 100.00 24,332,129.12 100.00
The group did not have any balances which were due to parties having 5% or above shareholdings in the
Company.
5、 Other receivables
（1）The aging of accounts receivable by categories:
30 June 2009 31 December 2008
aging
Amount proportion %
Provision for
bad debts
Amount proportion %
Provision for
bad debts
Within1year 2,412,715.68 1.08 -- 2,525,642.20 1.13 --
1to 2 years 4,859,931.13 2.19 -- 5,911,834.18 2.65 --
2to 3 years 3,273,057.88 1.47 -- 3,576,605.94 1.60 --
Over3 year 211,937,625.00 95.26 178,848,536.08 210,856,418.69 94.62 178,866,343.72
222,483,329.69 100.00 178,848,536.08 222,870,501.01 100.00 178,866,343.72
（2）customers categories as follows:
30 June 2009 customers 31 December 2008
categories Book balance proportio% Provision for bad
debts Book balance proporti% Provision for bad
debts
category 1 140,857,938.22 63.31 136,057,938.22 140,857,938.22 63.20 136,057,938.22
category 2 57,157,084.50 25.69 40,820,183.82 57,157,084.50 25.65 40,820,183.82
category 3 24,468,306.97 11.00 1,970,414.04 24,855,478.29 11.15 1,988,221.68
222,483,329.69 100.00 178,848,536.08 222,870,501.01 100.00 178,866,343.72
category 1：refers to accounts receivable with significant individual amount, such individual amount is more
than 10 million yuan
category 2: individual is not a significant amount of credit risk, but according to the characteristics of theSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
56
portfolio after portfolio of risky accounts receivable, aging of such fund in three years, and still less likely to
recover the money.
category 3： Other is not significant accounts receivable
（3）As at 30 June 2009，top five of other receivable Units (Personal) as follows:
30 June 2009 31 December 2008
Amount 140,857,938.22 140,857,938.22
Proportion of total other receivable accounts 63.31 63.20
（4）The group did not have any balances which were due to parties having 5% or above shareholdings in
the Company.
（5）The ending balance of related parties accounts of other receivable, For particulars see Note 9（3）、3.
6、 Inventories
30 June 2009 31 December 2008
Amount
Provision for
declines
Amount
Provision
for declines
Real estate development
products 363,813,131.67 1,350,000.00 429,136,074.84 1,350,000.00
Real estate
developing products 560,165,432.94 47,584,499.31 534,095,339.64 47,584,499.31
Raw materials 2,411,451.82 -- 1,206,220.38 --
finished products 479,230.40 278,891.91 296,311.43 278,891.91
low-value consumable
products 18,648.26 -- 37,339.94 --
Construction 32,885,351.66 -- 30,034,359.24 --
959,773,246.75 49,213,391.22 994,805,645.47 49,213,391.22
(1) Real estate development products
Completion
time (year)
31 December
2008
Current year
additions
Current year
reductions
30 June 2009
Jinyedao villa 1 1996 3,141,098.72 -- -- 3,141,098.72
Jinyedao multi-storey
apartment 1997 36,331,126.65 -- 126,889.59 36,204,237.06
Jinyedao villa 6 2007 43,022,827.06 -- -- 43,022,827.06
Jinyedao villa 7 2007 18,424,926.88 -- -- 18,424,926.88SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
57
Completion
time (year)
31 December
2008
Current year
additions
Current year
reductions
30 June 2009
Jinyedao villa 8 2007 19,490,877.67 -- 8,428,903.38 11,061,974.29
Jinyedao villa 11 2008 262,549,924.37 400,000.00 43,198,072.62 219,751,851.75
Huang Pu 1 1994 121,283.88 -- -- 121,283.88
Huang Pu 2 2007 12,581,871.83 -- -- 12,581,871.83
Huamin Building 3,020,596.68 -- -- 3,020,596.68
Huafeng Building 2000 1,631,743.64 -- -- 1,631,743.64
Xinhu Garden
multi-storey 2003 381,992.20 -- -- 381,992.20
Xinhu Garden 8 2005 9,988,789.21 -- -- 9,988,789.21
Xinhu Garden 3 2008 16,922,232.10 -- 13,969,077.58 16,922,232.10
Ri Yuege 854,963.28 -- -- 854,963.28
Beijing Fresh Peak
Building
671,820.67 -- -- 671,820.67
429,136,074.84 400,000.00 65,722,943.17 363,813,131.67
（2）Real estate developing products
Starting time
(year)
Expected
Completion time
31 December
2008
30 June 2009
Dongle Garden 128,932,800.58 129,832,800.58
Jin yedao 9 2008 2009 47,546,989.99 55,998,690.00
Jin yedao 10 2008 2009 69,666,035.43 81,667,385.60
Shantou Jinhulu 2008 53,538,914.00 53,836,408.00
Shuiyuntianya,
mingyuan 2007 213,326,543.59 217,746,092.71
Shantou fresh peak
Building 21,084,056.05 21,084,056.05
534,095,339.64 560,165,432.94
（3）Provision for declines in the value of inventories
31 December
2008
Current year
additions
Current year
reductions
30 June 2009
finished products 278,891.91 -- -- 278,891.91
Longfeng Villa 47,584,499.31 -- -- 47,584,499.31
Huamin Building 1,350,000.00 -- -- 1,350,000.00
49,213,391.22 -- -- 49,213,391.22
Development cost, the Jinyedao 10 period of land use rights for the book value of 61,548,064.64 yuan has
been used in the company’s borrowing deposit. Mortgages until July 30, 2010.see notes 7、14.
The amount of capitalize borrowing money is RMB 2,927,040.62 yuan (same period for last year: RMB
12,821,093.12 yuan).SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
58
7、 Long-term equity investments
30 June 2009
Amount Impairment provision Net value
Joint venture investment 91,678,556.86 62,236,756.27 29,441,800.59
Associate investment 58,297,430.97 2,522,380.20 55,775,050.77
Other equity investment 186,256,480.74 178,642,972.78 7,613,507.96
336,232,468.57 243,402,109.25 92,830,359.32
31 December 2008
Amount Impairment provision Net value
Joint venture investment 91,678,556.86 62,236,756.27 29,441,800.59
Associate investment 58,297,430.97 2,522,380.20 55,775,050.77
Other equity investment 186,256,480.74 178,642,972.78 7,613,507.96
336,232,468.57 243,402,109.25 92,830,359.32SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD For the period ended 30 June 2009
59
（1）According to equity method
Name of investees
proportion
of the
investment
Initial
investment
amount
31 Dec 2008
investment
increased(de
creased)in
this year
Equity
adjustment
in this year
Cash
dividends
declared to
be
distributed
Equity
method
Accumulated
increased
decreased in
this year
30 June 2009
Impairment
provision
1 、joint venture
investment：
Guangdong province
Huizhou Luofu Hill
mineral water Co.,Ltd
cooperation
9,969,206.09 9,969,206.09 -- -- -- -- 9,969,206.09 9,969,206.09
Fengkai Xinhua Hotel
cooperation
9,455,465.38 9,455,465.38 -- -- -- -- 9,455,465.38 9,455,465.38
Jiangmen Xinjian Real
Estate Co. Ltd.
cooperation
9,037,070.89 9,037,070.89 -- -- -- -- 9,037,070.89 912,537.16
Xian Fresh Peak
Building Co. Ltd.
cooperation
32,840,729.61 32,840,729.61 -- -- -- -- 32,840,729.61 20,673,831.77
Tung Yick Property Co.,
Ltd.
cooperation
30,376,084.89 30,376,084.89 -- -- -- -- 30,376,084.89 21,225,715.87
Sub-total 91,678,556.86 91,678,556.86 -- -- -- -- 91,678,556.86 62,236,756.27
2、Associate investment：
Shenzhen Shatoujiao
Nantian Store
50%
2,850,618.06 2,599,085.60 -- -- -- -251,532.40 2,599,085.60 --
Shenzhen Runhua
automobile trading
Co.,Ltd
50%
1,445,425.56 1,445,425.56 -- -- -- -- 1,445,425.56 1,445,425.56
Zhaoqing Guifeng
cement Co.,Ltd
50%
15,112,000.00 14,500,911.00 -- -- -- -611,088.97 14,500,911.00 --
Kunshan Diao Feng
Electricity Power Co.
50%
32,471,239.25 32,471,239.25 -- -- -- -- 32,471,239.25 --SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD For the period ended 30 June 2009
60
Name of investees
proportion
of the
investment
Initial
investment
amount
31 Dec 2008
investment
increased(de
creased)in
this year
Equity
adjustment
in this year
Cash
dividends
declared to
be
distributed
Equity
method
Accumulated
increased
decreased in
this year
30 June 2009
Impairment
provision
Ltd.*1
Shenzhen Dongfang
New world store Co.,Ltd
50%
15,000,000.00 -- -- -- -- -15,000,000.00 -- --
Shenzhen City Wing
Wah Engineering Ltd.
25%
1,250,000.00 1,816,528.73 -- 101,111.68 -- 566,528.73 1,816,528.73 1,076,954.64
Shenzhen Fresh Peak
property consultant
Co.,Ltd
20%
600,000.00 -- -- -- -- -600,000.00 -- --
Yunnan Kun Peng
Aviation Service Ltd.
25% 5,464,240.74 5,464,240.74 -- -- -- -- 5,464,240.74 --
Sub-total
74,193,523.61 58,297,430.88 -- -761,509.69 -- -15,896,092.64 58,297,430.97 2,522,380.20
Total
165,872,080.47 149,975,987.74 -- -761,509.69 -- -15,896,092.64 149,975,987.83 64,759,136.47
（2）According to cost method.SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD For the period ended 30 June 2009
61
Name of investees
Proportion
of the
investment
Initial investment
amount
31 December
2008
Investment
increased/decrease
d in this year
30 June 2009
Impairment
provision
1、Other investments：
Shenzhen Shen Fang Industrial Development
Co., Ltd
100% 4,500,000.00 4,500,000.00 -- 4,500,000.00 4,500,000.00
Shenzhen ZhongGang Haiyan Enterprise Ltd. 68% 12,940,900.00 12,940,900.00 -- 12,940,900.00 12,940,900.00
Shenzhen Real Estate Consolidated Service
Co., Ltd.
100% 5,958,305.26 5,958,305.26 -- 5,958,305.26 5,958,305.26
Paklid Limited 100% 201,100.00 201,100.00 -- 201,100.00 201,100.00
Bekaton Property Limited 60% 906,630.00 906,630.00 -- 906,630.00 906,630.00
Shenzhen Tefa Real Estate Consolidated
Service Co., Ltd.
100% 8,180,003.63 8,180,003.63 -- 8,180,003.63 8,180,003.63
Shenzhen Xin Dongfang Store Ltd. 100% 18,500,000.00 18,500,000.00 -- 18,500,000.00 18,500,000.00
Shenzhen City Shenfang Construction and
Decoration Materials Ltd.
100% 2,680,000.00 2,680,000.00 -- 2,680,000.00 2,680,000.00
Shenzhen Shenfang Department Store Co.
Ltd.
100% 10,000,000.00 10,000,000.00 -- 10,000,000.00 10,000,000.00
Shenzhen CyberPort Co., Ltd *2 70% 14,000,000.00 7,613,507.96 -- 7,613,507.96 --
Guangdong Province Fengkai Lain Feng
Cement Manufacturing Co., Ltd.
90% 121,265,000.00 56,228,381.64 -- 56,228,381.64 56,228,381.64
Shantou Fresh Peak Building 68,731,560.43 58,547,652.25 -- 58,547,652.25 58,547,652.25
267,863,499.32 186,256,470.74 -- 186,256,480.74 178,642,972.78SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
62
*1 Kunshan Diao Feng Electricity Power Co. Ltd.
On 14 October 2008, Kunshan Diao Feng Electricity Power Co. Ltd. held board meeting. the Board
decided that 30 June 2009 is the date for the dissolution of the company and in accordance with the
liquidation procedures.
*2 Shenzhen CyberPort Co., Ltd
On 12 May 2008, Shenzhen CyberPort Co., Ltd held a meeting of shareholders, resolution of business
termination, cancellation, and the composition of the liquidation group to carry out the liquidation, the
liquidation group issued a notice of liquidation on 5 December 2008. In accordance with "Accounting
Standard for Business Enterprises No. 33 - Consolidated Financial Statements", the company is not
included in the Company's consolidated financial statements of the scope of the merger.
（3）Impairment Provision for Long-term equity investment are as follows:
Current year
reductions
Name of investees
31 December
2008
Current
year
addition
Transfer
back
Wright-off
30 June 2009
Shenzhen City Wing Wah Engineering Ltd. 1,076,954.64 -- -- -- 1,076,954.64
Shenzhen Shen Fang Industrial Development Co., Ltd 4,500,000.00 -- -- -- 4,500,000.00
Shenzhen ZhongGang Haiyan Enterprise Ltd. 12,940,900.00 -- -- -- 12,940,900.00
Shenzhen Real Estate Consolidated Service Co., Ltd. 5,958,305.26 -- -- -- 5,958,305.26
Paklid Limited 201,100.00 -- -- -- 201,100.00
Bekaton Property Limited 906,630.00 -- -- -- 906,630.00
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd. 8,180,003.63 -- -- -- 8,180,003.63
Shenzhen Xin Dongfang Store Ltd. 18,500,000.00 -- -- -- 18,500,000.00
Shenzhen City Shenfang Construction and Decoration
Materials Ltd. 2,680,000.00 -- -- -- 2,680,000.00
Shenzhen Shenfang Department Store Co. Ltd. 10,000,000.00 -- -- -- 10,000,000.00
Guangdong Province Fengkai Lain Feng Cement
Manufacturing Co., Ltd. 56,228,381.64 -- -- -- 56,228,381.64
Shenzhen Runhua automobile trading Co.,Ltd 1,445,425.56 -- -- -- 1,445,425.56
Guangdong province Huizhou Luofu Hill mineral water
Co.,Ltd 9,969,206.09 -- -- -- 9,969,206.09
Fengkai Xinhua hotel 9,455,465.38 -- -- -- 9,455,465.38
Jiangmen Xinjian Real Estate Co. Ltd. 912,537.16 -- -- -- 912,537.16
Xian Fresh Peak Property Management & Trading Co. Ltd. 20,673,831.77 -- -- -- 20,673,831.77
Tung Yick Property Co., Ltd. 21,225,715.87 -- -- -- 21,225,715.87
Shantou Fresh Peak Building 58,547,652.25 -- -- -- 58,547,652.25
Total 243,402,109.25 -- -- --
243,402,109.25
8、 Investment PropertySHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
63
If the cost measurement model is applied
31 December
2008
Current year
additions
Current year
reductions
30 June 2009
Original cost
Buildings 961,678,279.84 1,660,483.00 -- 963,338,762.84
Right to the use of land 105,424,885.54 -- 106,354.33 105,318,531.21
Sub-total 1,067,103,165.38 1,660,483.00 106,354.33 1,068,657,294.05
Accumulated depreciation
Buildings 246,267,118.32 14,589,414.54 -- 260,856,532.86
Right to the use of land -- -- -- --
Sub-total 246,267,118.32 14,589,414.54 -- 260,856,532.86
Investment property
provision for
impairment losses
Buildings 15,283,846.00 -- -- 15,283,846.00
Right to the use of land 86,527,122.74 -- 87,289.96 86,439,832.78
Sub-total 101,810,968.74 -- 87,289.96 101,723,678.78
Investment property
on book value
Buildings 700,127,315.52 687,198,383.98
Right to the use of land 18,897,762.80 18,878,698.43
Sub-total 719,025,078.32 706,077,082.41
Original value of houses and buildings increase in the current period, it is because pay grades 1-2 Jiao Wu
Building on the 9th layer of the compound premium.
Original cost and impairment of reducing this year, because of exchange rate fluctuations when converted
foreign currency
For investment of real estate, company borrowing short-term and long-term borrowings (including due
within one year of the long-term loan) book value of the collateral is 294,987,172.52 yuan (see note 7、14).
9、 Fixed assets and Accumulated depreciation
31 December
2008
Current year
additions
Current year
reductions
30 June 2009SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
64
31 December
2008
Current year
additions
Current year
reductions
30 June 2009
Cost
Buildings 117,117,892.56 -- -- 117,117,892.56
Transport equipment 21,071,522.19 188,051.00 143,293.86 21,116,279.33
Electronic equipment and others 15,744,005.35 311,774.43 8,950.00 16,046,829.78
153,933,420.10 499,825.43 152,243.86 154,281,001.67
Accumulated depreciation
Buildings 55,823,057.15 1,625,716.21 -- 57,448,773.36
Transport equipment 14,274,748.44 758,957.98 11.34 15,033,695.08
electronic equipment and others 12,809,402.10 467,311.70 8,502.50 13,268,211.30
82,907,207.69 2,851,985.89 8,513.84 85,750,679.74
Net book value 71,026,212.41 68,530,321.93
less：Provision for
impairment loss 131,727.96 131,727.96
Net amount 70,894,484.45 68,398,593.97
In buildings of fixed assets, there is 32,253,238.29 yuan book value of the houses and buildings has been
used in the Company's short-term borrowings, long-term borrowings (including due within one year of
long-term borrowing) mortgage(see note7、14).
10、 Intangible assets
Manners Original cost 31 December
2008
Current year
additions
Current
year
transfer out
Current year
amortization
Accumulative
amortization 30 June 2009
Software outsourcing 286,200.00 257,580.00 -- --
-
28,620.00 28,620.00 257,580.00
Taxi license outsourcing 6,368,000.00 6,144,560.00 -- -- 83,790.00 307,230.00 6,060,770.00
6,654,200.00 6,430,760.00 -- -- 112,410.00 335,850.00 6,318,350.00
less：Provision for
impairment loss -- --
Net amount 6,430,760.00 6,318,350.00
11、 Long-term deferred and prepaid expenses
Original cost
31 December
2008
Current year
additions
Current year
amortization
Accumulative
amortization
30 June 2009
Decoration costs 1,808,640.24 527,346.90 -- 81,222.60 1,362,515.94 446,124.30
Total 1,808,640.24 527,346.90 -- 81,222.60 1,362,515.94 446,124.30
12、 Deferred tax assetsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
65
30 June 2009 31 December 2008
Inventories Impairment provision 9,516,899.86 9,516,899.86
Employee benefits payable 647,628.85 647,628.85
Unused operating losses against tax 8,315,460.11 8,315,460.11
18,479,988.82 18,479,988.82
13、 Impairment provision of assets
Current year reductions
31 December 2008
Current year
additions Transfer back Wright-off
30 June 2009
Provision for bad debts 197,496,022.83 -- -- 17,807.64 197,478,215.19
Inventories impairment
provision 49,213,391.22 -- -- -- 49,213,391.22
Long-term equity investment
impairment provision 243,402,109.25 -- -- -- 243,402,109.25
Investment property
impairment provision 101,810,968.74 -- -- 87,289.96 101,723,678.78
Fixed assets impairment
provision 131,727.96 -- -- -- 131,727.96
592,054,220.00 -- -- 105,097.60 591,949,122.40
For bad debts to reduce the current period, primarily result from changes in currency exchange rates.
Impairment of investment in real estate reduces in the current period, mainly because of conversion of
foreign currency statements of changes in the formation of the exchange rate.
14、 Restrictions on the ownership of assets
Items Book value on 30 June 2009
Cash at bank Other currencies 24,967,601.80
Inventories(work in process) Land rights of Jinyedao 61,548,064.64
Investment property Shengfang square 206,971,644.82
Investment property Floor 2 of guoshan north building 80,199,917.62
Investment property Real estate Building 7,815,610.08
Fixed assets Floor 46-48 of Shengfang Building 32,253,238.29
413,756,077.25
The above-mentioned restrictions on ownership of assets, both for the Company’s short-term borrowing
and long-term borrowings (including due within one year of the long-term loan) mortgage
15、 Short-term borrowingsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
66
Borrowing conditions 31 December 2008 30 June 2009
Mortgage borrowings* 59,200,000.00 --
59,200,000.00 --
16、 Accounts payable
（1）Accounts payable balance at the end, the Group did not less holding company 5% (including 5%)
over the right to vote, shareholders of the funds unit.
（2）Accounts payable balance at the end of non-affiliated companies to meet payments.
17、 Prepayment received
（1）Advance payment balance at the end, the Group did not less holding company 5% (including 5%)
over the right to vote, shareholders of the funds unit..
（2）At the end of the balance of accounts in advance to deal with non-affiliated companies money；
On June 30, 2009, the Company accounts in advance of paying back the principal in advance details：
Project names 31 December 2008 30 June 2009 Completion time aging
Guangzhou H
Huangpu yuan -- 1,599,963.00 Completion
Within1year
Jinyedao villa 7 5,136,334.00 1,800,000.00 Completion Within1year
Jinyedao villa 8 5,136,334.00 -- Completion
Jinyedao villa 9 -- 2,264,496.00 Within1year
Jinyedao villa 11 74,520,189.83 40,014,291.19 Completion Within1year
Total 84,792,857.83 45,678,750.19
18、 Employee benefits payable
31 December
2008
Current year
additions
Current year
reductions
30 June 2009
Wages and salaries,
bonuses, allowances and
subsidies
17,233,458.66 29,529,507.30 31,978,834.46 14,784,131.50
Staff welfare -- 479,624.50 479,624.50 --SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
67
Social security contributions 1,860,036.84 3,326,460.75 3,202,144.30 1,984,353.29
Labor union and employee
education funds 800,228.65 747,388.73 620,333.34 927,284.04
Compensation to employees
for termination of
employment relationship
5,262,990.06 -- 689,399.00 4,573,591.06
Others 45,518.13 1,521,301.26 1,548,582.26 18,237.13
Total 25,202,232.34 35,604,282.54 38,518,917.86 22,287,597.02
19、 Taxes payable
30 June 2009 31 December 2008
Value added tax (“VAT”) -3,160,125.75 -2,818,856.76
Business tax -2,669,148.63 -1,616,946.70
Construction tax -290,802.14 -220,035.78
Education surcharge -147,083.71 -91,896.23
Embankment 20,326.20 10,927.15
Real estate tax 2,054,656.11 2,081,659.05
Increment tax on
land value 4,369,719.00 4,170,141.46
Income tax -5,104,895.62 267,821.39
Personal income tax
290,017.94 469,019.54
others -29,752.66 96.78
-4,667,089.26 2,251,929.90
Taxes payable has a negative balance is due to the money received in advance when selling the property.
20、 Interests payable
Company name 30 June 2009 31 December 2008
Shenzhen Investment
Shareholding Co.，Ltd
9,477,039.69 7,888,053.54
Shenzhen Investment Holdings Co., Ltd is the holding company. The items of borrowing to see note7,
21.The unpaid interest balance is the second half year of 2007 and the interest during the year2009, as
detailed in note 9,(3).2
21、 Other payables
（1）In other accounts payable balance at the end, owe the Company holds 5% (including 5%) over the
right to vote, shareholders funds units are as follows:
Shareholder company name 30 June 2009 31 December 2008 Nature
Shenzhen Investment
Shareholding Co.，Ltd 63,848,819.24 63,848,819.24 BorrowingSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
68
（2）Other accounts payable balance at the end of the money owed to related parties see note 9, (3) .3
22、 Long-term borrowings
Borrowing conditions 30 June 2009 31 December 2008
Mortgage borrowings 383,769,218.57 340,804,785.54
Total 383,769,218.57 340,804,785.54
Including.：non-current liability
due in one year
10,461,764.71 10,461,764.71
long term borrowings 373,307,453.86 330,343,020.83
The ending balance of borrowings is as follows according to the enterprises’ names.
30 June
2009
Name of borrowing enterprises
currency
Borrowing conditions
Maturity Date
Shenzhen Rural Commercial Bank 198,000,000.00 Mortgage 2010.06.21
Shenzhen Nanyang Commercial Bank 50,491,018.57 Mortgage 2017.05.29
China Commercial Bank in Shenzhen 8,800,000.00 Mortgage 2010.06.13
China Commercial Bank in Shenzhen 16,478,200.00 Mortgage 2010.7.10
Bank of Communication in Shantou 60,000,000.00 Mortgage 2010.7.30
Shanghai Pudong Development Bank
Shenzhen Buji Branch
50,000,000.00 Mortgage 2012.3.29
383,769,218.57
*1Details of mortgage borrowings for particulars see note7、14
23、 Long-term payables
30 June 2009 31 December 2008
Maintenance fund 7,925,342.34 7,490,170.24
24、 Accrued liabilities
30 June 2009 31 December 2008
Loss from lawsuit 2,196,714.08 2,196,714.08
For the detail of lawsuit see 14(4)
25、 Share capitalSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
69
31 December 2008
Current year
additions
Current year
reductions
30 June 2009
1、Shares with restriction on disposals
1)、State-owned shares 571,690,800.00 -- 571,690,800.00 --
2)、PRC legal person shares -- -- -- --
3)、PRC legal nature person shares 5,550.00 1,850.00 -- 7,400.00
4)、Others -- -- -- --
Total of shares with restriction on disposals 571,696,350.00 1,850.00 571,690,800.00 7,400.00
2、Shares without restriction on disposals
1)、Domestically listed PRC public shares 319,963,650.00 571,690,800.00 1,850.00 891,652,600.00
2)、Domestically listed foreign shares 120,000,000.00 -- -- 120,000,000.00
3)、Overseas listed foreign shares -- -- -- --
4)、Others -- -- -- --
Total of shares without restriction on
disposals 439,963,650.00 571,690,800.00 1,850.00 1,011,652,600.00
3、Total 1,011,660,000.00 1,011,660,000.00
Change this year, increase or decrease in equity is accordance with the Company's share reform program.
The only non-circulation of the Company shares of Shenzhen Investment Holdings Co., Ltd. held by the
conditions of limited access to the shares listed part.
26、 Capital surplus
31 December 2008
Current year
additions
Current year
reductions
30 June 2009
Capital premium 557,433,036.93 -- -- 557,433,036.93
Other capital surplus 420,811,821.17 -- -- 420,811,821.17
Total 978,244,858.10 -- -- 978,244,858.10
27、 Surplus reserve
31 December 2008
Current year
additions
Current year
reductions 30 June 2009
Reserve fund 118,910,686.94 -- 118,910,686.94 --
According to the company adopted the 2008 Annual General Meeting of the ‘On reserve over the years to
make up for loss of motion’on June 26, 2009 moring, that the surplus reserve above will use cover the loss
from over the years.
28、 Undistributed profit
30 June 2009 31 December 2008
Net profit for parent company’s shareholders 7,725,323.97 19,123,787.11SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
70
add：Undistributed profit at beginning of year -915,511,458.27 -934,635,245.38
less：Profit distribution -- --
Including.：withdrawal legal surplus -- --
withdrawal free surplus reserves 118,910,686.94 --
Undistributed profit at ending of year -788,875,447.36 -915,511,458.27
29、 Revenue and cost of sales
Revenue Cost Gross profit
1.1-30.6
2009
1.1-30.6
2008
1.1-30.6
2009
1.1-30.6
2008
1.1-30.6
2009
1.1-30.6
2008
Revenue from
main operations:
Sales of
properties 102,952,316.99 137,584,658.92 63,742,098.75 72,315,694.82 39,210,218.24 65,268,964.10
Construction 99,649,713.76 59,768,004.20 94,023,612.07 55,906,286.46 5,626,101.69 3,862,717.74
Business
Leasing and
property
mangement
75,347,008.91 83,440,125.41 51,038,851.06 52,504,386.67 24,308,157.85 30,935,738.74
Hotel and others
service
12,862,561.83 14,373,743.98 9,696,242.93 10,417,725.40 3,166,318.90 3,956,018.58
Total 290,811,601.49 295,166,532.51 218,500,804.81 191,144,093.35 72,310,796.68 104,023,439.16
（1） The sales of top five:
1.1-30.6
2009
1.1-30.6
2008
Sales (in ten thou
-sand Yuan）
Proportion of the
company’s total
sales
Sales (in ten
thousand Yuan））
Proportion of the
company’s total sales
Total sales of top five 4,637 15.95 3,958 13.41
(2) Main operations by geographical segments as follows:
Revenue Cost Gross profit
1.1-30.6
2009
1.1-30.6
2008
1.1-30.6
2009
1.1-30.6
2008
1.1-30.6
2009
1.1-30.6
2008
PRC：
Guangdong
province
290,395,405.61 294,394,592.49
218,500,804.81
191,068,339.87
71,894,600.80
103,326,252.62
Overseas：
416,195.88
772,940.02
75,753.48
416,195.88
697,186.54
290,811,601.49
295,167,532.51 218,500,804.81 191,144,093.35
72,310,796.68
104,023,439.16SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
71
30、 Tax and levies on operations
1.1-30.6
2009
1.1-30.6
2008
Business tax 13,490,618.90 13,954,739.34
City maintenance and construction tax 163,657.96 132,162.52
Educational surcharge 256,933.62 195,809.21
Real estate tax 3,799,059.74 3,798,993.61
Increment tax on land value 6,869,813.66 13,545,346.45
Others 205,526.47 194,966.41
24,785,610.35 31,822,017.54
31、 Finance expenses
1.1-30.6
2009
1.1-30.6
2008
Interest expenses 13,293,246.53 19,321,051.27
Less：expenses of capitalization interest 2,927,040.62 12,821,093.12
Less: interest income 726,616.64 1,703,226.35
Exchange losses -- 9,484,368.97
Less: exchange gains 43,824.49 --
Others 186,322.29 516,275.40
9,782,087.07 14,797,376.17
The current financial cost of substantially reduced over the same period of previous year, mainly due to
the fluctuations of currency exchange rates is very small. The exchange rate losses did not occur.
32、 Investment income
1.1-30.6
2009
1.1-30.6
2008
Sale income from financial assets held for trading 8,532.58 3,334.11
Long-term equity investment income 7,683,812.56 5,183,115.81
including：dividends income from investees 7,683,812.56 5,183,115.81
Income from disposal of subsidiaries -- --SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
72
Income from disposal of other operational units -- --
Change in net profit of investees according to
equity method.
-- --
7,692,345.14 5,186,449.92
Return on ivestment is 48.32% increase over the same period of previous year. Mainly because the
dividend received from Kunshan Power Company Limited has increased.
33、 Non-operating income
1.1-30.6
2009
1.1-30.6
2008
1、Total gain on disposal of non current assets 300.00 2,638,414.82
including：Gain on disposal of fixed assets 300.00 2,638,414.82
2、Fine income 818.50 --
3、Others 29,806.59 5,553.06
30,925.09 2,643,967.88
34、 Non-operating expenses
1.1-30.6
2009
1.1-30.6
2008
1、Total losses on disposal of non current assets 48,532.00 66,000.00
including：Loss on disposal of fixed assets 48,532.00 66,000.00
2、Fine expenses -- 500.00
3、Donation expenses 24,000.00 99,000.00
4、Penalty expenses -- 32,983.88
5、Others 13,319.04 123,164.97
85,851.04 321,648.85
35、 Earning per share
Calculation process of EPS
1.1-30.6
2009
1.1-30.6
2008
Net profit attributable to equity holders of the company 7,725,323.97 13,925,382.42SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
73
Weighted average number of ordinary shares outstanding 1,011,660,000.00 1,011,660,000.00
Basic earnings per share（per share RMB yuan） 0.0076 0.138
Earnings per share - diluted（per share RMB yuan） 0.0076 0.138
36、 Cash flow statements
（1）Cash received from operating activities
1.1-30.6
2009
1.1-30.6
2008
interest income 726,616.64 1,713,869.87
Mortgage、Guarantee 3,635,486.58 5,495,972.22
Other debits -- 4,301,176.32
Maintenance fund 1,944,783.36 1,880,280.18
Others 22,529,017.16 57,289,671.39
Total 28,835,903.74 70,680,969.98
（2）Cash paid for other operating activities
1.1-30.6
2009
1.1-30.6
2008
Cash paid to General and
administrative expenses
10,707,023.68
13,366,298.41
Cash paid to operating expenses 2,551,818.93 590,491.36
Agency fees 1,116,920.00 1,060,209.66
Mortgage and Guarantee 3,074,539.26 4,002,550.00
Other credits 1,258,961.40 7,737,522.69
Advertising and promotion expenses 896,156.00 2,008,120.65
Others 28,579,068.27 73,074,630.35
Total 48,184,487.54 101,839,823.12
（3）Cash flow statement(continued)
Supplementary information
1.1-30.6
2009
1.1-30.6
2008
1、Reconciliation from the net profit to the cash flows from operating
activitiesSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
74
Supplementary information
1.1-30.6
2009
1.1-30.6
2008
Net profit 7,699,678.64 13,830,432.64
Add：Provisions for assets impairment
-- --
Depreciation of fixed assets and
investment property
17,529,766.15
15,780,500.89
Amortization of intangible assets 112,410.00 83,790.00
Long-term deferred and prepaid
expenses amortization
81,222.60
135,806.29
Losses on disposal of fixed assets,
intangible assets and other long-term
assets（gains used“-”）
48,232.00
-2,638,414.82
Scrapping of fixed assets losses
（gains used“-”）
--
--
Exchange of fair value losses（gains used“-”） -133,836.40 302,557.00
Finance expenses （gains used“-”） 13,062,903.65 15,984,327.12
Investment losses（gains used“-”） -7,692,345.14 -5,186,449.92
Decrease in deferred tax assets（gains used“-”） -- --
Increase in deferred tax liabilities
（gains used“-”）
--
--
Decrease in inventories（gains used“-”） 35,032,398.72 -11,991,973.73
Decrease in operating receivables
（gains used“-”）
3,637,307.90
6,567,474.11
Increase in operating payables（gains used“-”） -90,114,568.35 -51,749,621.05
Others -266,313.13 --
Net cash flows from operating activities -21,003,143.36 -18,881,571.47
2、Investment and financing activities not involving cash -- --
3、Net increase/ (decrease) in cash and cash equivalents
Cash at end of the year 288,249,054.07 438,020,283.97
Less: cash at beginning of the year 328,413,393.57 451,915,145.77
Add：cash equivalents at end of the year -- --
Less: cash equivalents at beginning of the year -- --
Net increase in cash and cash equivalents -40,164,339.50 -13,894,861.80
NOTE 8、Notes to the parent company financial statements
1、Accounts receivableSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LTD
For the period ended 30 June 2009
75
Aging analysis
30 June 2009
31 December 2008
aging
Amount proportion %
Provision for bad
debts
Amount proportion %
Provision for bad
debts
Within 1 year 58,705.64 0.42 -- 65,745.71 0.47 --
1 to 2 years 129,002.96 0.93 -- 183,200.39 1.30 --
2 to 3 years 40,886.43 0.30 -- -- -- --
Over 3 year 13,593,199.94 98.35 6,457,254.02 13,807,219.42 98.23 6,457,254.02.
13,821,794.97 100.00 6,457,254.02 14,056,165.52 100 6,457,254.02
2、Other receivables
Aging analysis
30 June 2009
31 December 2008
aging
Amount proportion %
Provision for bad
debts
Amount proportion %
Provision for bad
debts
Within 1
year 83,415,523.97 5.57
-- 64,567,287.58 4.39
--
1 to 2 years 210,131,987.55 14.03 -- 209,294,808.32 14.23 --
2 to 3 years 155,560,669.53 10.39 4,001,634.89 154,786,735.85 10.53 4,001,634.89
Over 3 year 1,048,423,604.50 70.01 859,191,545.13 1,041,756,363.78 70.85 859,191,545.13
1,497,531,785.55 100.00 863,193,180.02 1,470,405,195.53 100.00 863,193,180.02
3、Inventories
30 June 2009 31 December 2008
Amount
Provision for
declines
Amount
Provision for
declines
Real estate development
products 50,881,991.49 1,350,000.00 53,691,639.07 1,350,000.00
Construction development
products 129,832,800.58 -- 128,932,800.58 --
180,714,792.07 1,350,000.00 182,624,439.65 1,350,000.00SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LT For the period ended 30 June 2009
76
4、Long-term equity investments
（1） Long-term equity investments
30 June 2009 31 December 2008
Amount
Impairment
provision
Net value Amount
Impairment
provision Net value
Subsidiaries investment 272,668,771.15 -- 272,668,771.15
272,668,771.15 -- 272,668,771.15
joint venture investment 19,424,671.47 19,424,671.47 -- 19,424,671.47 19,424,671.47 --
associate investment 20,361,950.98 2,522,380.20 17,839,570.78 20,361,950.98 2,522,380.20 17,839,570.78
other equity investment 134,315,609.56 121,914,591.14 12,401,018.42
134,315,609.56 121,914,591.14 12,401,018.42
Total 446,771,003.16 143,861,642.81 302,909,360.35 446,771,003.16 143,861,642.81 302,909,360.35
（2） According to equity methodSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LT For the period ended 30 June 2009
77
Name of investees
proportion of
the investment
Initial
investment
amount
31 December
2008
investment
increased(de
creased)in
this year
Equity
adjustment in
this year
Cash
dividends
declared to be
distributed
Equity method
accumulated
increased/
decreased
30 June 2009 Impairment
provision
1、Joint venture investment：
Guangdong province Huizhou
Luofu Hill mineral water Co.,Ltd
cooperation
9,969,206.09 9,969,206.09 -- -- -- -- 9,969,206.09 9,969,206.09
Fengkai Xinhua Hotel
cooperation
9,455,465.38 9,455,465.38 -- -- -- -- 9,455,465.38 9,455,465.38
19,424,671.47 19,424,671.47 -- -- -- -- 19,424,671.47 19,424,671.47
2、Associate investment：
Shenzhen Shatoujiao Nantian
Store
50%
2,850,618.06 2,599,085.66 -- -- -- -251,532.40 2,599,085.66 --
Shenzhen Runhua automobile
trading Co.,Ltd
50%
1,445,425.56 1,445,425.56 -- -- -- -- 1,445,425.56 1,445,425.56
Zhaoqing guifeng cement
Co.,Ltd
50%
15,112,000.00 14,500,911.03 -- -- -- -611,088.97 14,500,911.03 --
Shenzhen Dongfang New world
store Co.,Ltd
50%
15,000,000.00 -- -- -- -- -15,000,000.00 -- --
Shenzhen City Wing Wah
Engineering Ltd.
25%
1,250,000.00 1,816,528.73 -- -- -- 566,528.73 1,816,528.73 1,076,954.64
Shenzhen Fresh Peak property
consultant Co.,Ltd
20%
600,000.00 -- -- -- -- -600,000.00 -- --
36,258,043.62 20,361,950.98 -- -- -- -15,896,092.64 20,361,950.98 2,522,380.20
55,682,715.09 39,786,622.45 -- -- -- -15,896,092.64 39,786,622.45 21,947,051.67
（3） According to cost methodSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LT For the period ended 30 June 2009
78
Name of investees
Proportion
of the
investment
Initial investment
amount 31 December 2008
Investment
increased/
decreased in
this year
30 June 2009
Impairment
provision
1、Subsidiaries investment：
Shenzhen City Property Management Ltd. 95 12,821,791.52 12,821,791.52
--
12,821,791.52 --
Shenzhen Petrel Hotel Co. Ltd. 68.10 20,605,047.50 20,605,047.50
--
20,605,047.50 --
Shenzhen City Shenfang Investment Ltd. 90 9,000,000.00 9,000,000.00
--
9,000,000.00 --
Fresh Peak Holdings Ltd. 100 556,500.00 556,500.00
--
556,500.00 --
Fresh Peak Enterprise Ltd. 100 20,824,545.77 21,717,697.73 -- 21,717,697.73 --
Shenzhen Special Economic Zone Real Estate (Group)
Guangzhou Property and Estate Co., Ltd.
100 20,000,000.00 20,000,000.00 -- 20,000,000.00 --
Shenzhen Zhen Tung Engineering Ltd. 73 11,332,321.45 11,332,321.45 -- 11,332,321.45 --
Great Wall Estate Co., Inc. 70 1,435,802.00 1,435,802.00 -- 1,435,802.00 --
Shenzhen City Shenfang Free Trade Trading Ltd. 95 4,750,000.00 4,750,000.00 -- 4,750,000.00 --
Shenzhen City Wa Gen Construction Management Ltd. 75 6,000,000.00 6,000,000.00 -- 6,000,000.00 --
Shenzhen Shengfang Car rental Ltd. 55 11,809,500.00 6,495,225.00 -- 6,495,225.00 --
Openice Ltd. 20 212,280.00 212,280.00 -- 212,280.00 --
Beijing SPG Property Management Limited 100 500,000.00 500,000.00 -- 500,000.00 --
Shenzhen Lain Hua Industry and Trading Co. Ltd. 95 13,458,217.05 13,458,217.05 -- 13,458,217.05 --
Shenzhen City SPG Long Gang Development Ltd. 95 30,850,000.00 30,850,000.00 -- 30,850,000.00 --
Beijing fresh peak property development management
limited company
75
64,183,888.90 64,183,888.90 -- 64,183,888.90 --
Shenzhen City SPG Bao An Development Ltd. 95% 19,000,000.00 19,000,000.00 -- 19,000,000.00 --
Shenzhen Shenfang Car Park Ltd. 70% 29,750,000.00 29,750,000.00 -- 29,750,000.00 --SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LT For the period ended 30 June 2009
79
Name of investees
Proportion
of the
investment
Initial investment
amount 31 December 2008
Investment
increased/
decreased in
this year
30 June 2009
Impairment
provision
291,089,894.19 272,668,771.15 -- 272,668,771.15 --
2、Others investment：
Shenzhen Shen Fang Industrial Development Co., Ltd. 100% 4,500,000.00 4,500,000.00 -- 4,500,000.00 4,500,000.00
Shenzhen ZhongGang Haiyan Enterprise Ltd. 68% 12,940,900.00 12,940,900.00 -- 12,940,900.00 12,940,900.00
Shenzhen Real Estate Consolidated Service Co., Ltd. 100% 5,958,305.26 5,958,305.26 -- 5,958,305.26 5,958,305.26
Paklid Limited 100% 201,100.00 201,100.00 -- 201,100.00 201,100.00
Bekaton Property Limited 60% 906,630.00 906,630.00 -- 906,630.00 906,630.00
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd. 100% 8,180,003.63 8,180,003.63 -- 8,180,003.63 8,180,003.63
Shenzhen Xin Dongfang Store Ltd. 100% 18,500,000.00 18,500,000.00 -- 18,500,000.00 18,500,000.00
Shenzhen City Shenfang Construction and Decoration
Materials Ltd.
100% 2,680,000.00 2,680,000.00 -- 2,680,000.00 2,680,000.00
Shenzhen Shenfang Department Store Co. Ltd. 95% 9,500,000.00 9,500,000.00 -- 9,500,000.00 9,500,000.00
Shenzhen CyberPort Co., Ltd 70% 14,000,000.00 12,401,018.42 -- 12,401,018.42 -
Shantou Fresh Peak Building 100% 68,731,560.43 58,547,652.25 -- 58,547,652.25 58,547,652.25
146,098,499.32 134,315,609.56 -- 134,315,609.56 121,914,591.14
437,188,393.51 406,984,380.71 -- 406,984,380.71 121,914,591.14
（4） impairment Provision of long-term equity investmentsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) CO.,LT For the period ended 30 June 2009
80
Impairment Provision
Name of investees
31 December 2008
Current year
addition Current year
reductions 30 June 2009 Provision for reasons
Shenzhen City Wing Wah Engineering Ltd. 1,076,954.64 -- -- 1,076,954.64 Operating loss
Shenzhen Shen Fang Industrial Development Co., Ltd. 4,500,000.00 -- -- 4,500,000.00 Closed operations
Shenzhen ZhongGang Haiyan Enterprise Ltd. 12,940,900.00 -- -- 12,940,900.00 Closed operations
Shenzhen Real Estate Consolidated Service Co.,Ltd. 5,958,305.26 -- -- 5,958,305.26 Closed operations
Paklid Limited 201,100.00 -- -- 201,100.00 Closed operations
Bekaton Property Limited 906,630.00 -- -- 906,630.00 Closed operations
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd. 8,180,003.63 -- -- 8,180,003.63 Closed operations
Shenzhen Xin Dongfang Store Ltd. 18,500,000.00 -- -- 18,500,000.00 Closed operations
Shenzhen City Shenfang Construction and
Decoration Materials Ltd.
2,680,000.00 -- -- 2,680,000.00
Closed operations
Shenzhen Shenfang Department Store Co. Ltd. 9,500,000.00 -- -- 9,500,000.00 Closed operations
and liquidation
Shenzhen Runhua automobile trading Co.,Ltd 1,445,425.56 -- -- 1,445,425.56 Closed operations
Guangdong province Huizhou Luofu Hill mineral water
Co.,Ltd
9,969,206.09 -- -- 9,969,206.09
Closed operations
Fengkai Xinhua Hotel 9,455,465.38 -- -- 9,455,465.38 Closed operations
Shantou Fresh Peak Building 58,547,652.25 -- -- 58,547,652.25 Closed operations
143,861,642.81 -- -- 143,861,642.81SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
81
5、Revenue and cost of good sold
Revenue Cost Gross profit
1.1-30.6
2009
1.1-30.6
2008
1.1-30.6
2009
1.1-30.6
2008
1.1-30.6
2009
1.1-30.6
2008
Sales ofproperties
26,166,782.38
16,131,692.49
10,035,089.89
Leasing income
29,273,859.02 36,084,619.79
15,087,280.66
15,127,614.05 14,186,578.36 20,957,005.74
Others
514,337.52 510,482.80
361,027.21
415,840.48 153,310.31 94,642.32
55,954,978.92 36,595,102.59 31,580,000.36 15,543,454.53 24,374,978.56 21,051,648.06
NOTE 9、Related parties and related party transactions
（1）The standards of related parties recognition
Party control, joint control or the other to exert a significant impact on the other party, as well as two
or more than two parties are of the same party control, joint control or significant influence,
constitutes a related party.
（2）Related party relationships
1、 Related parties with controlling relationship
company
Registered
code
Place of
registration
Nature of
business and
principal
activities
Registered
capital
Equity
Holding
of the
company
Voting
power
Shenzhen Investment
Shareholding Limited
Company
Guangdong
province
Shenzhen
* RMB 4 billion 64.35% 64.35%
*Guarantees for Municipal State-owned enterprises; stated-owned shares management excluded
from the enterprises of direct control by SAC; on assets restructurings of controlled enterprises as
well as its capital operation. Other businesses authorized by city SAC.
Company that is the ultimate controlling party of the Company under the direct control
2、 Subsidiaries
Detail information about subsidiaries for detail see note 6、1 & 2
3、 Joint ventures, associatesSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
82
Detail information about joint ventures and associates for detail see note 7、7
（3）Related party transactions
a) Borrowings from related party
Name 30 June 2009 31 December 2008
Shenzhen Investment Shareholding
Limited Company
63,848,819.24 63,848,819.24
b) Interest pay to the related party
Name 30 June 2009 31 December 2008
Shenzhen Investment Shareholding
Limited Company
9,477,039.69 7,888,053.54
*Interest: annual interest of 6.12%, according to the borrowing agreement.
c) Receivables and Payables of related parties
30 June 2009 31 December 2008
Name of related parties
Amount
Provision for
bad debts
Amount
Provision for
bad debts
Other receivables
Guangdong province Huizhou
Luofu Hill mineral water Co.,Ltd 10,465,168.81
10,465,168.81
10,465,168.81
10,465,168.81
Shenzhen Runhua automobile
trading Co.,Ltd 3,072,764.42
3,072,764.42
3,072,764.42
3,072,764.42
Fidelity Development Limited 89,035,748.07 89,035,748.07 89,035,748.07 89,035,748.07
Bekaton Property Limited 12,559,290.58 12,559,290.58 12,559,290.58 12,559,290.58
Paklid Limited 18,211,639.09 18,203,987.56 19,205,883.66 19,197,730.76
Shenzhen Shenfang Department
Store Co. Ltd. 189,179.82
189,179.82
189,179.82
189,179.82
Shenzhen Real Estate
Consolidated Service Co., Ltd. 927,136.22
927,136.22
927,136.22
927,136.22
Shenzhen City Shenfang
Construction and Decoration
Materials Ltd. 8,327,180.71
8,327,180.71
8,327,180.71
8,327,180.71
Shenzhen City Wing Wah
Engineering Ltd. 1,187,723.46
--
1,187,723.46
--
Xi’an Fresh Peak property
management& Trading Co.,Ltd 8,419,205.19 -- 8,419,205.19 --
Account
receivable
Shenzhen Fresh Peak property
consultant Co.,Ltd 4,271,702.41 -- 4,272,678.17 --
Other payables Shenzhen Tefa Real Estate 598,012.16 -- 598,012.16 --SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
83
30 June 2009 31 December 2008
Name of related parties
Amount
Provision for
bad debts
Amount
Provision for
bad debts
Consolidated Service Co., Ltd.
Shenzhen Shen Fang Industrial
Development Co., Ltd 1,534,854.91 -- 1,534,854.91 --
Shenzhen ZhongGang Haiyan
Enterprise Ltd. 135,853.52 -- 135,853.52 --
Shenzhen Dongfang New world
store Co.,Ltd 902,974.64 -- 902,974.64 --
Shenzhen Xin Dongfang Store
Ltd. 1,394,704.21 -- 1,394,704.21 --
Guangdong Province Fengkai
Lain Feng Cement
Manufacturing
Co., Ltd. 1,870,577.00
--
1,880,577.00
--
Shenzhen Shatoujiao Nantian
Store 1,200,000.00 -- 1,200,000.00 --
Shenzhen Cyber Port Co., Ltd
7,291,815.61 -- 6,026,357.00 --
NOTE 10、Exchange of non-monetary assets
No disclosures for exchange of non-monetary assets
NOTE 11、Share-based payment
No Share-based payment contracts.
NOTE 12、Debt restructurings
No debt restructurings disclosures this year.
NOTE 13、Contingencies
1、 Significant litigation
（1）Guoxing Building Lawsuit
On March 21 1997, the company executed an agreement with Baoxin real Estate Development
(Shenzhen) Company limited ( called Baoxin below) to sell its share of 68% interest in Guoxin
Building at a consideration of RMB145,000,000.In addition, The company had outstanding accountsSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
84
of the project 15,000,000 yuan will be paid by Baoxin Company. After Baoxing company paid
45,000,000 yuan, 100,000,000 yuan owed money and the transfer of the rights and interests of
15,000,000 yuan project is not paid to the Company. So the company instituted legal proceedings.
After the trial of the Guangdong High People’s Court on September 28 2002, Baoxin should pay the
outstanding purchase consideration of RMB 98,948,060 yuan and the interests to the company. Upon
a second sue of the case in 2003, the outcome remained unchanged and in the favor of the company.
The company has made an agreement with BaoXin on Feb 22 2008. According to the agreement, the
company gave up the rights of disposal and arrangement of BaoXin Building in LongGang District
on the condition of BaoXin has to make a payment RMB 15,000,000.00 to the company. Up to June
30, 2009, the Company has received RMB 2,500,000 in cash. The Mogartge property has not been
transferred ownership.
Till June 30, 2009, the amount of RMB 66,201,645.33 has been called back on the case with the
execution.
（2）Xi’an project Lawsuit
A subsidiary, Fresh Peak Holding limited company (called Fresh Peak below),entered into a joint
venture agreement with a third party to establish a contractual joint venture, Xi’an Fresh Peak Estate
Commercial limited company (called Xi’an Fresh Peak Estate below) in Xi’an. Its principal activities
are the developing and managing of commercial buildings in Xi’an. Pursuant to the aforesaid
agreement. Fresh Peak Hong Kong Limited invested a cashflow as accounted for 84% of the shares,
Shangmao Wei Xian Xian-commerce enterprises directly under the building to the right to use landSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
85
investment accounted for 16% of the shares. Its main object is to developing Xi’an commerce
building. The project was launched on November 28, 1995. Due to the major differences in their
co-operation in the area of running business, As the co-operation projects between the two sides in
principle on the major differences, the project forced the lay-off during 2006. In following 1997 Xi’an
Government compulsively withdraw the Xi'an Fresh Peak investment project and the Civic
Commercial and Business Committee redirect this mentioned company to its subsidiary ---Xi'an
Tourism Trade Co., Ltd. (hereinafter referred to as the "Business Tourism Company"). In addition,
the two parties have insulted an lawsuit of compensation. 1, one month after the decision entering
into force, Business Tourism Company has to reimburse Xi'an Fresh Peak RMB36, 620,000 yuan and
interest as a compensation. Overdue payment or lie over, the obligor party is liable to pay double. The
Commercial and Business Committee is jointly and severally liable with the mentioned debts.
While the case up to June 30, 2009, the company has been paid RMB 11,500,000.00 with a balance of
RMB 21,540,000 of the non-authority credit cost and its interest non-refund. The case is proceeding
and has no actual progress currently.
Up to June 30, 2009, the written value of long-term investment to Xi’an Fresh Peak Company is RMB
32,840,729.61(RMB20, 673,831.77 of the impairment provision), and its credit right to claim is RMB8,
419,205.19.
（3）Luofushan project Lawsuit
The early years of the Company and Luofu Mountain Corporation Joint Ventures Luofu Mountain
tourism project, due to Luofu Mountain Corporation did not perform the contract, the Company
access to the courts. The final judgment on December 21, 2007 on January 6, 2008 supported: 1.
Luofushan Tourism Co., Ltd. should pay off RMB9.6 million yuan to the real estate company ofSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
86
Shenzhen within ten days since the effective day of this judgment; 2. Luofushan Tourism Co., Ltd.
should pay off the interests of RMB9.6 million yuan produced in the actual occupied period
according to the interest rate of loan of the People’s Bank of China in the same period within ten
days since the effective day of this judgment, among which, the interest of 4.4 million yuan shall be
calculated from May 1, 1986 till it is liquidated; and the interest of 4.1 million yuan shall be calculated
from February 1, 1988 till it is liquidated; and the rest interest of 1.1 million yuan shall be calculated
from June 15, 1989 till it is liquidated; RMB8.58 million yuan of paid interest shall be deducted from
the sum; 3. Luofushan Administration Committee shall undertake one third of the debts which
Luofushan Tourism is unable to pay; 4. Provided that Luofushan Tourism Co. Ltd. and Luofushan
Administration Committee fail to fulfill their obligations within the designated period of this
judgment, the interest of debts within the delayed period will be doubled; 5. Luofushan Tourism Co.,
Ltd. undertakes all the litigation fees (RMB167,714 yuan) of the first instance and the second instance,
and pays them to our company during the duration of payment.
As of June 30, 2009, company Luo Fu Shan Tourism Corporation's debt balance of book value
9,600,000.00 yuan, Provision for bad debts has been prepared to 4,800,000.00 million.
（4）Xianluo Yanwo Restaurant Lawsuit
March 26, 2003, Shenzhen Xianluo Yanwo Restaurant and the Company entered into rental contracts,
rental of premises of the Company to operate restaurants Xianluo Yanwo Restaurant. Because of the
mismanagement, the restaurant was close downed on January 2006. May 2006, Shenzhen Xianluo
Yanwo Restaurant sue the Company not to the obligations of building owners and property managers
on the grounds to Shenzhen Luohu District People's Court sued the Company for compensation for
loss of their business and decoration. December 29, 2007 Luohu District, Shenzhen People's Court
(2006) Shen Luo Court Min No.3 trial of first instance paper of civil judgment No. 808 judged that
the Company shall pay the loss of 2,926,714.08 yuan for Shenzhen City Siam Bird's Nest restaurantSHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
87
operators and decoration, The Company arrested the above judgment and appealed on February 26,
2008 to the Shenzhen Intermediate People's Court. As of June 30, 2009, the Shenzhen City
Intermediate People's Court has not yet made a final judgment on the appeal.
The Company in accordance with the Shenzhen Luohu District People's Court ruling, after deducted
the rent and property management fees which owed by Xianluo Yanwo Restaurant , the Company is
expected that a loss of litigation 2,196,714.08 yuan.
（5）Shenyang Tongxin Case
Shenyang Tongxin with Real Estate Development Co., Ltd. (hereinafter referred to as " Shenyang
Tongxin Company") is a wholly owned subsidiary of the Company in Hong Kong Fresh Peak
Enterprises Limited (hereinafter referred to as " Fresh Peak Company") established a joint venture in
Shenyang. The Fresh Peak shares holding ratio of 93.1%. Its main business is to develop a Shenyang
Fresh Peak Commercial Plaza. Shenyang Tongxin Company was provided security by the Company
under the 1994 to 2001 in order to borrow between the old to the Bank of China Shenyang Shenhe
Branch 13,140,000 yuan loans. Shenyang Tongxin Company cannot afford to repay the loan after the
expiration, Bank of China Shenyang branch suit Shenyang Tongxin Company to the Shenyang
Municipal Intermediate People's Court. Then with the signed loan agreement, borrowings by the
Company to 13.5 million yuan in Shenyang Tongxin Company to repay the Bank of China Shenyang
Shenhe Branch 13.14 million yuan loan and interest. On January 25, 2008, according to the China
International Economic and Trade Arbitration Commission South China Branch of the ruling,
Shenyang Tongxin shall make a ruling within thirty days from the date of repayment of money owed
to the Company 14,422,440.22 yuan and the corresponding interest.
The deadline is June 30, 2009 ,the case is still ongoing, and the Company has not yet received
Shenyang Tongxin Company's repayment.
Matters associated with the case: Shenyang Tongxin Company's 93.1% shares which was held by
Fresh Peak Company ,was auctioned by Shenzhen Intermediate People's Court on January 22,SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
88
2006.
2、 Security for debt
Up to 30 June 2009, balance of guarantees is as follows:
Currency
Amount
(in ten thousand Yuan)
Internal guarantees in the group RMB 2,528
Guarantees for outstanding
mortgage
RMB 913
NOTE 14、Commitments
Till June 30, 2009, the Company still has contract not yet paid( Jian'an contract). As the
agreement, the investment in capital expenditure total of RMB 2,670 yuan shall be in the
contract the other party to fulfill the terms of the contract responsibility and obligations to pay
at the same time.
Supplementary information：
1. Non - regular gains and losses
According to "public offering of securities companies to disclose information interpretative
bulletin No. 1 - non-recurring gains and losses (2008)", the Company non-recurring gains and
losses are as follows:
Item 1.1-30.6
2009
1.1-30.6
2008
Non-current assets disposed of profit and loss, including the write-off
part of provision for asset impairment
-48,232.00 2,572,414.82
Authority approval or non-formally approved document or incidental
tax revenue return, relief
- -
Gains and losses included in the current period of government
subsidies, but the company is closely related to normal business, in line
with national policies and regulations, in accordance with standard fixed
or quantitative government subsidies except
- -
Gains and losses included in current period on non-financial enterprises - -SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
89
Item 1.1-30.6
2009
1.1-30.6
2008
occupy fees charged by funds
Enterprises to obtain subsidiaries, joint ventures and joint venture
investment is less than the cost of investment should be enjoyed by the
investment unit fair value of identifiable net assets of the revenue
generated
- -
Non-monetary assets to exchange gains and losses - -
Commissioned the investment or management of assets, profit and loss - -
Due to force majeure factors, such as natural disasters and the provision
of the quasi-impairment of assets
- -
Debt restructuring, profit and loss - -
Corporate restructuring costs, such as placement of workers spending,
such as integration charges
- -
Significant loss of fair trading price of the transaction over the fair value
of part of the profit and loss
- -
The same under the control of mergers resulting from the merger a
subsidiary of the opening day of the current period to the net profit or
loss
- -
Normal business with the company or have a matter arising from
unrelated to the profit and loss
-- --
In addition to normal business with the company effective hedging
related business, holders of tradable financial assets, transactions and
financial liabilities arising from changes in fair value gains and losses, as
well as the disposal of trading of financial assets, trading financial
liabilities and available-for-sale financial assets investment returns
achieved
142,368.98 -299,222.89
A separate impairment test for impairment of receivables transferred
back to preparation
- -
Commissioned external loans made by the profit and loss - -
The use of fair value measurement model of follow-up to the fair value
of real estate investment gains and losses arising from changes
- -
According to tax, accounting and other laws and regulations the
requirements of the current profit and loss for a one-time adjustment of
the current profit and loss impact
- -
Entrusted with the operation of the trustee to obtain fee income - -
In addition to the above other than the operating income and
expenditure
-6,693.95 -250,095.79
Other non-recurring gains and losses in line with the definition of profit
and loss items
- -
Total 87,443.03 2,023,096.14
Less: Income tax impact of several -9,639.21 -59,772.47
Profit and loss impact of the number of minority shareholders - -
Deducting income tax, minority shareholders after the non-recurring
profit and loss profit and loss together
97,082.24 2,082,868.61SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP)
CO.,LT For the period ended 30 June 2009
90
2. Net assets yield and Earnings per share
Net assets yield (%)
Earnings per
share ( yuan/share)
Items
Profit during the
reporting period
Fully diluted
Weighted
average
basic diluted
2009
Net profit parent company
to common shareholders
7,725,323.97 0.635 0.637 0.0076 0.0076
Net profit parent company to
common shareholders after
deducting extraordinary gains
or losses
7,628,241.73 0.627 0.627 0.0075 0.0075
2008
Net profit parent company
to common shareholders
13,925,382.42 1.153 1.165 0.0138 0.0138
Net profit parent company to
common shareholders after
deducting extraordinary gains
or losses
11,842,513.81 0.981 0.992 0.0117 0.0117
3. Financial statements difference adjustment according to different accounting standards
CAS IFRS
Net profit 7,725,323.97 7,725,323.97
Net assets 1,216,101,576.35 1,216,101,576.35
Difference No difference
These financial statements have been issued in Chinese. This English translation copy is prepared for
reference only. If there is any conflict of meaning between the Chinese and English versions, the
Chinese version will prevail.82
Section VIII Documents Available for Reference
Ⅰ. Text of the 2009 Semi-Annual Report with the signature of Chairman of the
Board of Directors;
Ⅱ. Text of the Financial Report with the signatures and stamps of the person in
charge of the Company, the person in charge of accounting and the person in charge
of the accounting agency;
Ⅲ. Texts of all the public notices disclosed in the report period on the newspapers
designated by CSRC—Securities Times, Ta Kung Pao;
Ⅳ. Text of the Articles of Association of the Company.
Board of Directors
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
15 Aug. 2009
