2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
2013 Semi-annual Report
2013-017
August 2013
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
I. Important Reminders, Catalogue & Explanation
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
(hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete
without any false record, misleading statement or material omission. And they shall be jointly and
severally liable for that.
Except for the following directors, all the other directors attended in person the board session for
reviewing this report.
Director not attending the
Position Reason Proxy
session in person
Zhang Lei Director Personal reason Jiang Lihua
Zhou Hanjun Independent director Personal reason Liu Quanmin
Song Botong Independent director Personal reason Liu Quanmin
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Zhou Jianguo, company principal, Chen Maozheng, GM, Wei Hanping, chief of the accounting
work, and Tang Xiaoping, chief of the accounting organ (chief of accounting), hereby confirm that
the Financial Report enclosed in this report is factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Catalogue
I. Important Reminders, Catalogue & Explanation...................................... 2
II. Company Profile ......................................................................................... 5
III. Accouonting & Business Highlights ......................................................... 7
IV. Report of the Board of Directors .............................................................. 9
V. Significant Events...................................................................................... 21
VI. Change in Shares & Shareholders.......................................................... 32
VII. Directors, Supervisors & Senior Management Staff............................ 36
VIII. Financial Report................................................................................... 37
IX. Documents Available for Reference...................................................... 165
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Explanation
Refers
Term Contents
to
Refers Shenzhen Special Economic Zone Real Estate & Properties (Group) Co.,
Company, the Company, the Group
to Ltd.
Refers
The holding company Shenzhen Investment Holdings Co., Ltd.
to
Refers
Shantou Hualin Company Shantou Hualin Real Estate Development Co., Ltd.
to
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
II. Company Profile
I. Basic information of the Company
Stock abbreviation SSFA（SSFB） Stock code 000029（200029）
Stock exchange listed with Shenzhen Stock Exchange
Chinese name of the Company 深圳经济特区房地产(集团)股份有限公司
Abbr. of the Chinese name of
深房集团
the Company (if any)
English name of the Company
ShenZhen Special Economic Zone Real Estate&Properties (Group).co.，Ltd．
(if any)
Abbr. of the English name of
SPG
the Company (if any)
Legal representative of the
Zhou Jianguo
Company
II. Contact information
Company Secretary Securities Affairs Representative
Name Mr. Chen Ji Mr. Luo Yi
47/F, SPG Plaza, Renmin South Road, 47/F, SPG Plaza, Renmin South Road,
Contact address
Shenzhen, Guangdong, P.R.China Shenzhen, Guangdong, P.R.China
Tel. （86 755）82293000-4718 （86 755）82293000-4715
Fax （86 755）82294024 （86 755）82294024
E-mail spg@163.net spg@163.net
III. Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the
Company during the reporting period?
□ Applicable √ Inapplicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2012 Annual Report.
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report
and the location where this report is placed did not change during the reporting period. The said information can be found in the 2012
Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the reporting period?
□ Applicable √ Inapplicable
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not
change during the reporting period. The said information can be found in the 2012 Annual Report.
4. Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Inapplicable
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
III. Accounting & Business Highlights
I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB Yuan) 320,687,860.60 447,364,203.07 -28.32%
Net profit attributable to shareholders of
13,050,340.37 40,084,098.09 -67.44%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 9,619,800.04 40,066,125.89 -75.99%
losses (RMB Yuan)
Net cash flows from operating activities
349,447,741.01 -116,313,872.03 400.44%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.0129 0.0396 -67.42%
Diluted EPS (RMB Yuan/share) 0.0129 0.0396 -67.42%
Weighted average ROE (%) 0.79% 2.59% -1.8%
As at the end of the
As at the end of last year YoY +/-（％）
reporting period
Total assets (RMB Yuan) 4,215,152,401.82 3,712,770,828.30 13.53%
Net assets attributable to shareholders of
1,649,642,412.95 1,635,376,098.73 0.87%
the Company (RMB Yuan)
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
Reporting period Same period of last year Closing amount Opening amount
According to Chinese
13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
accounting standards
Items and amounts adjusted according to international accounting standards
According to international 13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
accounting standards
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
Reporting period Same period of last year Closing amount Opening amount
According to Chinese
13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
accounting standards
Items and amounts adjusted according to overseas accounting standards
According to overseas
13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
accounting standards
3. Explain reasons for the differences between accounting data under domestic and overseas accounting
standards
III. Items and amounts of extraordinary gains and losses
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the Gain on disposal of office
3,448,226.60
offset part of asset impairment provisions) buildings
Other non-operating income and expenses other than the above -18,550.33
Less: Income tax effects -864.06
Total 3,430,540.33 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
IV. Report of the Board of Directors
I. Overview
In the first half of 2013, according to the general guideline set at the beginning of the year, i.e. “boost the main business, enlarge the
land reserve, enhance cost control, improve the management capability, further increase its professionalism, optimize the new
corporate culture, beef up development, try to achieve a double growth of income and profit and strive for the thorough
materialization of its five-year development strategic planning”, the management and the other staff worked hard as one man. As a
result, almost all the efforts produced the expected results, laying a foundation for the “quality stable growth and sustainable
all-round development” put forward at the beginning of the year.
II. Main business analysis
Overview
For the reporting period, the Company achieved operating revenues of RMB 320.69 million, down 28.32% from the same period of
last year; operating profit of RMB 15.66 million, down 70.61% on the year-on-year basis; total profit of RMB 19.09 million, down
64.18％ on the year-on-year basis; and net profit attributable to shareholders of the Company of RMB 13.05 million, representing a
year-on-year decrease of 67.44％.
The sales income carried over from real estate stood at RMB 66.36 million in the reporting period, representing a year-on-year
decrease of 61.13％, resulting in the sharp drop in the operating revenues. This was mainly because the real estate sales income still
mainly came from the sale of the residual houses of Jinye Island by the subordinate Shantou Hualin Company; and the Chuanqi
Mountain project had not yet reached the income carry-over conditions.
YoY change of major financial data:
Unit: RMB Yuan
Reporting period Same period of last year YoY +/-% Main reasons for change
The real estate sales
income still mainly came
from the sale of the
residual houses of Jinye
Island by the subordinate
Operating revenues 320,687,860.60 447,364,203.07 -28.32% Shantou Hualin
Company; and the
Chuanqi Mountain
project had not yet
reached the income
carry-over conditions.
Operating revenues
Operating costs 246,707,002.82 310,482,609.12 -20.54%
decreased.
Selling expenses 6,879,545.90 6,256,376.23 9.96%
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Administrative expenses 27,482,942.29 29,263,423.18 -6.08%
Capitalized interest
Financial expenses -575,027.99 3,419,856.01 -116.81%
increased.
Income tax expenses 6,019,760.27 13,182,343.19 -54.33% Profit decreased.
House buying advances
Net cash flows from
349,447,741.01 -116,313,872.03 400.44% from the Chuanqi
operating activities
Mountain project
Cash received from
Net cash flows from
3,751,823.13 -2,394,280.00 256.7% disposal of office
investing activities
buildings
Cash received as bank
borrowings decreased
87.68% on the
year-on-year basis while
Net cash flows from
-223,496,227.17 5,444,181.02 -4,205.23% cash paid for repayment
financing activities
of bank borrowings
increased 97.40% from
the same period of last
year.
House buying advances
Net increase in cash and
129,467,480.64 -112,927,862.19 214.65% from the Chuanqi
cash equivalents
Mountain project
Major changes to the profit structure or sources of the Company during the reporting period:
√ Applicable □ Inapplicable
Profit decreased mainly because operating revenues decreased. For the reporting period, the gross profit after tax stood at RMB 49.45
million, down 46.35% over the same period of last year.
Reporting period progress of the future development planning in the disclosed documents of the Company such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Inapplicable
The Company did not mention any future planning for the reporting period in its disclosed documents such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of the previously disclosed business plan in the reporting period:
In the Report on the First Quarter of 2013, the Company predicted a year-on-year decrease of 75.05%～87.52% of the net profit
attributable to shareholders of the Company and a profit of RMB 5～10 million for the first half of 2013. For details, see the
“Announcement on the Prediction of the Business Performance of the First Half of 2013” disclosed on http://www.cninfo.com.cn on
24 Apr. 2013.
According to the business performance in the first half of the year, the Company disclosed the “Announcement on Rectification of
the Business Performance Prediction for the First Half of 2013” on 13 Jul. 2013, rectifying the net profit attributable to shareholders
of the Company for the first half of 2013 as about RMB 13 million and the decrease ratio as about 67.56%. For details, see the
“Announcement on Rectification of the Business Performance Prediction for the First Half of 2013” disclosed on
http://www.cninfo.com.cn on 13 Jul. 2013.
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
For the six months ended 30 Jun. 2013, net profit attributable to shareholders of the Company stood at RMB 13.05 million.
III. Breakdown of main business
Unit: RMB Yuan
Increase/decrease Increase/decrease Increase/decrease
of operating of operating costs of gross profit
Operating Gross profit rate
Operating costs revenues over the over the same rate over the same
revenues (%)
same period of period of last year period of last year
last year (%) (%) (%)
Classified by industry:
Real estate 66,359,365.82 27,114,240.91 59.14% -61.26% -64.44% 3.66%
Construction 164,394,128.55 155,763,939.80 5.25% -10.04% -9.15% -0.92%
Leasing 29,939,505.23 11,765,821.32 60.7% -0.67% -0.45% -0.09%
Property
46,661,107.77 42,319,068.55 9.31% -9.31% 1.66% -9.79%
management
Hotel and other
13,333,753.23 9,743,932.24 26.92% 13.54% 4.44% 6.37%
services
Total 320,687,860.60 246,707,002.82 23.07% -28.32% -20.54% -7.53%
Classified by product:
Housing units 66,359,365.82 27,114,240.91 59.14% -61.26% -64.44% 3.66%
Other that cannot
be classified by 254,328,494.78 219,592,761.91 13.66% -7.88% -6.25% -1.5%
product
Total 320,687,860.60 246,707,002.82 23.07% -28.32% -20.54% -7.53%
Classified by region:
Guangdong
320,379,472.95 246,707,002.82 23% -28.34% -20.54% -7.55%
Province
Overseas 308,387.65 100% -0.26%
Total 320,687,860.60 246,707,002.82 23.07% -28.32% -20.54% -7.53%
IV. Core competitiveness analysis
With a history over 30 years in real estate development in Shenzhen, the Company has rich experience in the main business of real
estate development and has developed over 3 million square meters of commercial residences and office buildings in Shenzhen. It is
one of the earliest real estate listed companies in Shenzhen and has a high brand value in Shenzhen. In recent years, with the Chuanqi
Mountain and Shanglin Garden projects as an opportunity, the Company attaches great importance to talent attraction and
development. It has cultivated and trained a professional team for the main business of real estate development, formulated and
improved a set of sound management mechanisms and processes for project development, and significantly improved its
professionalism and management capability. The brand effects of the Company are further demonstrated and the core
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
competitiveness keeps rising. In the forenoon of 12 Jul. 2013, the Company won the bid for the use right of the land parcel in Jingzai
Bay, Heping Town, Chaoyang District, Shantou, Guangdong Province with RMB 282 million, making a breakthrough in its search
for new land, ensuring the sustained and steady development of its main business and creating conditions for it to expand the market
and build a base in East Guangdong.
V. Investment analysis
1. Investments in equities of external parties
（1） Investments in external parties
Investments in external parties
Investment amount in the reporting period Investment amount in the same period of
+/-%
(RMB Yuan) last year (RMB Yuan)
0.00 12,000,000.00 0%
Particulars about investees
Proportion of the Company’s investment in
Name of investee Main business
the investee’s total equity interests (%)
Providing enterprises and individuals with
financing guarantees such as loan
guarantees, bill acceptance guarantees,
trade financing guarantees, project
financing guarantees and L/C guarantees;
financing consulting service, financial
Shantou Small-and Medium Enterprise
consultant service and other 10%
Financing Guarantee Co., Ltd.
guarantee-related intermediary services;
making investments with its own funds
(The financing guarantee agency license
will expire on 4 Feb. 2018.) [Where a
license is required for a business, it shall
be obtained before operation.]
（2）Equity-holdings in financial enterprises
Gain/loss
Initial Opening Opening Closing Closing Closing in the
Enterprise Enterprise investment equity-hol equity-hol equity-hol equity-hol book value reporting Accountin Equity
name variety cost (RMB dings ding ratio dings ding ratio (RMB period g title source
Yuan) (share) (%) (share) (%) Yuan) (RMB
Yuan)
Shantou 12,000,000 12,000,000 Long-term Sponsor's
Other 12,000,000 10% 12,000,000 10% 0.00
Small-and .00 .00 equity inv shares
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Medium estment
Enterprise
Financing
Guarantee
Co., Ltd.
12,000,000 12,000,000
Total 12,000,000 -- 12,000,000 -- 0.00 -- --
.00 .00
（3）Securities investments
Sharehold Sharehold Gain/loss
Initial Number Number Closing
ing ing for
investmen of shares of shares book
Variety of Code of Name of percentag percentag reporting Accounti Source of
t cost held at held at value
securities securities securities e at e at period ng title stock
(RMB period-be period-en (RMB
period-be period-en (RMB
Yuan) gin d Yuan)
gin d Yuan)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Shareholdings in other listed companies:
□ Applicable √ Inapplicable
2. Wealth management entrustment, derivative investments and entrustment loans
（1）Wealth management entrustment
Unit: RMB Ten thousand
Actual
Related-p Impairme
Payment Principal gain/loss
Name of arty Product Amount Beginnin Ending nt Predicted
Relation determina actually in
trustee transactio variety entrusted g date date provision gain
tion recovered reporting
n or not (if any)
period
Total 0 -- -- -- 0 0 0 0
Source of the entrusted funds N/A
Cumulative overdue principals and gains 0
（2）Derivative investments
Unit: RMB Ten thousand
Type of Proportio
Related-p Initial Opening Impairme Closing Actual
derivative Ending n of the Ending
Operator Relation arty investmen investmen nt investmen gain/loss
investmen date closing date
transactio t amount t amount provision t amount in
t investmen
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
n or not (if any) t amount reporting
in the period
Company
’s closing
net assets
(%)
Total 0 -- -- 0 0 0 0% 0
Capital source for derivative investment N/A
Lawsuit (if applicable) N/A
Analysis on risks and control measures of
derivative products held in the reporting
period (including but not limited to market N/A
risk, liquidity risk, credit risk, operation
risk, law risk, etc.)
Changes of market prices or fair values in
the reporting period of the invested
derivatives. And the analysis on the fair
N/A
value of the derivatives should include the
specific use methods and the relevant
assumptions and parameters.
Whether significant changes occurred to
the Company’s accounting policy and
specific accounting principles of N/A
derivatives in the reporting period
compared to the previous reporting period
Special opinion from independent
directors, sponsor or financial consultant
N/A
on the Company’s derivatives investment
and risk control
（3）Entrustment loans
Unit: RMB Ten thousand
Related
Loan Interest Use of funds by
Borrower party or Guarantor or pawn
amount rate the borrower
not
Total -- 0 -- -- --
Extension, overdue loans or lawsuits (if any) N/A
Countermeasures for extension overdue loans or
N/A
lawsuits (if any)
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
3. Use of raised funds
（1）Overview of the use of raised funds
Unit: RMB Ten thousand
Total raised capital 0
Total raised capital input in the reporting period 0
Accumulative raised capital input 0
Total raised capital of which the use was changed in the
0
reporting period
Accumulative raised capital of which the use was
0
changed
Proportion of accumulative raised capital of which the
0%
use was changed
Overview of the use of raised funds
N/A
（2）Projects invested with raised funds as promised
Unit: RMB Ten thousand
Date
Project Investme
Accumul when the Material
Projects invested with changed nt Profit
Raised Investme Input in ative project Reach the change in
raised capital as or not progress generated
capital nt after the input up reaches expected the
promised and (includin up to the in the
input as adjustme reporting to the the profit or project
investments with g period-en reporting
promised nt (1) period period-en expected not feasibility
over-raised capital partially d (%)(3) period
d (2) usable or not
changed) ＝(2)/(1)
condition
Projects invested with raised capital as promised
Investments of over-raised capital
Total -- 0 0 0 0 -- -- 0 -- --
Reason for failing to
reach scheduled
progress or projected N/A
income (explain one
project by one project)
Explanation on
significant changes in N/A
feasibility of projects
Amount, usage and Inapplicable
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
usage progress of
N/A
over-raised capital
Change of the Inapplicable
implementation
location of any raised
N/A
funds investment
project
Adjustment of the Inapplicable
implementation
method of any raised
N/A
funds investment
project
Advance input and Inapplicable
exchange of any raised
funds investment N/A
project
Idle raised capital for Inapplicable
temporarily
supplementing working N/A
capital
Outstanding raised Inapplicable
funds in project
implementation and N/A
reasons
Usage and whereabouts
N/A
of unused raise capital
Problems found in the
usage and disclosure
N/A
affairs of raised capital
and other situations
（3）Change of projects invested with raised funds
Unit: RMB Ten thousand
Total raised Material
Investment Date when
funds Actual Profit change in
Actual input progress up the project
Project planned to cumulative generated in Reach the the
Project after for to the reaches the
before be input for input by the expected after-change
change reporting period-end expected
change the project period-end reporting profit or not project
period (%)(3)＝ usable
after change (2) period feasibility
(2)/(1) condition
(1) or not
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Total -- 0 0 0 -- -- 0 -- --
Reasons for change, decision-making
procedure and relevant information
N/A
disclosure (explain one project by one
project)
Reason for failing to reach scheduled
progress or projected income (explain N/A
one project by one project)
Explanation on significant changes in
N/A
feasibility of projects after change
（4）Projects invested with raised funds
Overview of the project Disclosure date Index for the disclosed information
4. Analysis to main subsidiaries and stock-participating companies
Particulars about main subsidiaries and stock-participating companies:
Unit: RMB Yuan
Operating Operating
Main Total assets Net assets Net profit
Company Company Registered revenues profit
Industry products/ser (RMB (RMB (RMB
name variety capital (RMB (RMB
vices Yuan) Yuan) Yuan)
Yuan) Yuan)
Shenzhen
Property
Property RMB 7.25 63,663,533. 14,729,706. 49,145,530.
Subsidiary Service managemen 564,687.46 428,159.96
Managemen million 30 69 05
t
t Co., Ltd.
Shenzhen
Fixing and
Zhentong RMB 10 185,884,003 14,492,794. 169,479,502 1,247,515.5 1,075,380.6
Subsidiary Service maintenanc
Engineering million .87 37 .98 4 6
e of projects
Co., Ltd.
Shenzhen
Hotel RMB 30 40,577,396. 35,100,146. 11,919,197.
Petrel Hotel Subsidiary Service 403,092.58 368,530.24
Service million 22 95 70
Co., Ltd.
Shenzhen
SPG
RMB 10.29 19,742,316. 16,032,953. 2,200,828.8
Mini-bus Subsidiary Service 500,743.01 375,557.26
million 81 22 3
Rent Co., Rent of
Ltd. mini-bus
Shantou Developme US$ 15 570,994,907 331,413,406 66,253,174. 21,196,759. 15,605,887.
Subsidiary Real estate
Hualin Real nt of real million .03 .96 00 49 28
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Estate estate
Developme
nt Co., Ltd.
Investment
Xin Feng Investment
and HKD 1 199,346,586 -391,729,69 1,266,441.6 4,718,497.0
Enterprise Subsidiary managemen 124,000.00
managemen million .03 0.64 7 8
Co., Ltd. t
t
Shenzhen
Huazhan
Constructio
Constructio 8,383,303.5 7,927,286.9 2,455,870.0
Subsidiary Service n 8 million 354,209.03 338,594.77
n 3 1 0
supervision
Supervision
Co., Ltd.
5. Significant projects invested with non-raised funds
Unit: RMB Ten thousand
Cumulative actual
Project name Total investment Input for this year input as at the Project progress Project earnings
period-end
（I）Company
profile
Expired on 30 June,
SPG Chuanqi receipt in advance
160,000 11,593 119,163
Mountain East of selling floor
92.91million
SPG Chuanqi
110,000 8,211 68,858
Mountain West
SPG Shanglin
140,000 10,505 45,114
Garden
Shantou Yuejing
15,000 2,071 9,951
Dongfang
Total 425,000 32,380 243,086 -- --
VI. Predict the operating results of Jan.-Sept. 2013
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the
next reporting period according to prediction, as well as explanations on the reasons:
√ Applicable □ Inapplicable
Prediction: synclastic and substantial decline
Type of the predicted data: interval data
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2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Jan.-Sept. 2013 Jan.-Sept. 2012 +/- (%)
Predicted accumulative net
1,500 -- 2,000 6,341.26 Decline -76.35% -- -68.46%
profit (RMB Ten thousand)
Basic EPS (RMB Yuan/share) 0.0148 -- 0.0198 0.0627 Decline -76.39% -- -68.42%
1. At the same period of last year, the main profit source of the Company was the decline of fewer
Explanation about the remaining houses of the Shantou Hualin’s the Jinye Island international garden project during the
predictions reporting period. 2. The Company home office’s SPG Chuanqi Mountain project was entered the
pre-sale stage, but did not reach the carrying forward conditions.
VII. Explanation by the Board of Directors and the Supervisory Committee about the
“non-standard audit report” issued by the CPAs firm for the reporting period
N/A
VIII. Explanation by the Board of Directors about the “non-standard audit report” of last
year
N/A
IX. Implementation of profit allocation during the reporting period
Profit allocation plan implemented during the reporting period, especially execution and adjustment of the cash dividend plan and the
plan for turning capital reserve into share capital:
√ Applicable □ Inapplicable
The pre-plan for the profit allocation deliberated in 2012 the annual general meeting of shareholders was no profit allocation or
turning capital reserve into share capital.
X. Pre-plan for profit allocation and turning capital reserve into share capital for the
reporting period
Explain in detail the preplan for profit allocation and turning capital reserve into share capital
There is no profit allocation or turning capital reserve into share capital for the reporting period in the Company.
XI. Particulars about researches, visits and interviews received in this reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor
materials provided by the
19
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Company
The Company’s business
25 Jan. 2013 Office By telephone Individual Individual investor structure, didn’t offer
written materials
The Company’s business
structure of 2012 and
14 Mar. 2013 Office By telephone Individual Individual investor progress of the investment
projects, with no written
materials provided
The company’s operating
situation in 2013 and the
arrangement of
5 Apr. 2013 Office By telephone Individual Individual investor
shareholders’ general
meeting, with no written
materials provided
The progress and sale of
Guangming SPG Chuanqi
Mountain project and
20 May 2013 Office By telephone Individual Individual investor
Longgang Shanglin Garden
project, with no written
materials provided
The Company’s business
structure in the first half of
28 Jun. 2013 Office By telephone Individual Individual investor
2013, didn’t offer written
materials
20
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Section V. Significant Events
I. Information about corporate governance
The corporate governance is complied with requirements of “Corporation Law” and stipulations by CSRC.
II. Significant lawsuit or arbitration
√ Applicable □ Inapplicable
Involved
Projected Ruling and Execution of Date of Disclosure
Basic information amount Progress
liability or not influence ruling disclosure index
(RMB 0,000)
① BaoXing
Company shall
make an
ownership
transfer payment
of RMB 98.95
million and pay
Guoxing Building
the relevant
Lawsuit (For
interest to the
details, see “Note
Company within
VII”—“Contingent
10 days since the About RMB 81 2012
Events”—“1.
ruling takes million has been Semi-annual
Contingent
1,800 No In execution effect, or this case recovered and it 3 Mar. 2013 Report on
liabilities due to
shall be handled is difficult to www.cninfo.c
pending lawsuits
according to recover the rest. om.cn
or arbitrations, as
Article 232 of the
well as the
Law of Civil
financial influence
Procedure.
thereof”.)
② BaoXing
Company shall
bear RMB
620,000 of the
counter-action fee
and 40,000 of the
survey fee.
Xi’an Project ① Business The applicant 2012
Lawsuit (For Tourism has received Semi-annual
2,100 No In execution 3 Mar. 2013
details, see “Note Company had to RMB 15.20 Report on
VII”—“Contingent pay for the million. Now www.cninfo.c
21
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Events”—“1. compensation Business om.cn
Contingent Rmb 36,620 Tourism
liabilities due to thousand and the Company has
pending lawsuits relevant interest no executable
or arbitrations, as (from 14 Sept. properties and
well as the 1998 to the Xi’an Joint
financial influence payment day) to Commission on
thereof”.) Xi’an Fresh Peak Commerce has
Company within been refusing to
one month after execute the
the judgment ruling. It is
entering into difficult to
force. If the recover the rest.
Business Tourism
Company failed
to pay in time, it
had to pay double
debt interests to
Xi’an Fresh Peak
Company for the
overdue period;
② Xi’an Joint
Commission on
Commerce had
jointly and
severally
obligation of the
interests of the
compensation; .③
Business Tourism
Company shall
bear RMB
227,500 of the
acceptance fee
and the security
fee.
Luofu Hill project ① Luofu Hill Because the
Lawsuit (For Tourism state-owned
2012
details, see “Note Company has land resource
Semi-annual
VII”—“Contingent paid back RMB administration
980 No In execution 3 Mar. 2013 Report on
Events”—“1. 9.6 million; ② cannot work out
www.cninfo.c
Contingent Luofushan the planning key
om.cn
liabilities due to Administration points for the
pending lawsuits Committee had to sealed land, the
22
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
or arbitrations, as undertake one land cannot be
well as the third of the debts auctioned.
financial influence which Luofushan
thereof”.) Tourism was
unable to repay;
③ Luofu Hill
Tourism
Company shall
bear RMB
167,700 of the
case acceptance
fee and the
security fee.
III. Media’s questions
□ Applicable √ Inapplicable
There was no media’s question during the reporting period.
IV. Bankruptcy and reorganization
Naught
V. Asset transactions
1. Asset acquisition
Net profit
Net profit Relationsh
contributed to Ratio of
contributed to ip between
the Company the net
the Company the
from the profit
from the transaction
Transacti Transacti acquisition date contribut
year-begin to Related party and
on party Asset on price to the ed by the
the period-end -party the
or acquired (RMB period-end asset to Disclosure Disclosure
Progress (RMB Ten transact Company
ultimate or Ten (RMB Ten the date index
thousand) ion or (applicable
controlle bought in thousand thousand) Compan
(applicable for not for
r ) (applicable for y to the
business related-par
business total
combinations ty
combinations profit
under the transaction
not under the (%)
same control) s)
same control)
23
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
2. Sale of assets
Relation
Net
Ratio of ship
profit Whether
the net between
contribu or not Whether
profit the
ted by the or not
Transact contribu transacti the
the asset Gain/los ownersh creditor’
ion ted to Related- on party
from the s on sale ip of the s right
Transact price the Pricing party and the and Disclos
Asset Date of period-b (RMB asset liabilitie Disclos
ion (RMB Compan principl transacti Compan ure
sold sale egin to Ten involve s ure date
party Ten y by the e on or y involved index
the date thousan d has have
thousan asset not (applica
of sale d) been been
d) sale to ble for fully
(RMB fully transferr
the total related- ed
Ten transferr
profit party
thousan ed
(%) transacti
d)
ons)
3. Business combination
Naught
VI. Implementation and influence of equity incentive plan of the Company
Naught
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
Pricing Settlemen
Type of Contents
principle Transacti Proportio t method
the of the
Related of the on n in same of the
Relations related-pa related-pa Transacti Market Date of Index of
transactio related-pa amount kind of related-pa
hip rty rty on price price disclosure disclosure
n party rty (RMB transactio rty
transactio transactio
transactio 0,000) ns transactio
n n
n n
Under the Announce
same ment of
Shenzhen Contracti Contractu
control of Related-p
Jianan ng by the Construct Open al amount Bank 13 July.
the 9,190 100% arty
Group related ion bidding of RMB transfer 2012
Company Trading
Co., Ltd. party 5,533,300
’s on
controllin www.cnin
24
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
g fo.com.cn
sharehold
er
Total -- -- 9,190 -- -- -- -- --
Details about return of large-amount sales Naught
Where the Company classifies and
estimates the total amount of routine
related-party transactions for the reporting N/A
period, explain the actual implementation
during the reporting period (if any)
Explain why the transaction price is greatly
different from the market price (if N/A
applicable)
2. Related-party transactions arising from asset acquisition or sale
Book Evaluate
Type of value of d value Market
Transfer
related-p the of the fair Gain
Related Pricing price Settleme Disclosu Disclosu
Relation arty Contents transferr transferr value (RMB
party principle (RMB nt mode re date re index
transacti ed asset ed asset (RMB 0,000)
0,000)
on (RMB (RMB 0,000)
0,000) 0,000)
Reason for great discrepancy between Naught
transfer price and book value or
estimated value (if any)
Information about influence on Naught
corporation business performance and
financial situation
3. Significant related-party transactions concerning joint investment in external parties
Main Registered Total assets Net assets of Net profit of
Pricing Name of
Joint investor Relationship business of capital of of investee investee investee
principle investee
investee investee (RMB 0,000) (RMB 0,000) (RMB 0,000)
Progress of any significant
construction in process of Naught
the investee (if any)
4. Credits and liabilities with related parties
Was there any non-operating credit or liability with any related party?
□ Yes √ No
Related party Relation Type of Reason for Non-operating Opening Amount Closing
25
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
credit/liability credit/liability capital balance (RMB during the balance (RMB
occupation 0’000) reporting 0’000)
(Yes/No) period (RMB
0’000)
The
subsidiary
handled the
Subsidiary
agent business
(has Credit
Shenzhen Fresh Peak for the
conducted the receivable
property consultant Company or No 1,112,375.8 -17,103.3 1,095,272.5
employees’ from related
Co.,Ltd the Company
shareholding party
provided
reform)
investment or
loans for it in
previous years
The Company No
Credit provided
Guangdong province
receivable investment or
Huizhou Luofu Hill Joint venture 10,465,168.81 10,465,168.81
from related loans for the
mineral water Co., Ltd
party subsidiary in
previous years
The Company No
Credit provided
Shenzhen Runhua
Associated receivable investment or
Automobile Trading 3,072,764.42 3,072,764.42
enterprise from related loans for the
Co., Ltd
party subsidiary in
previous years
The Company No
Credit provided
Canada Great Wall receivable investment or
Subsidiary 89,035,748.07 89,035,748.07
(Vancouver) Co., Ltd from related loans for the
party subsidiary in
previous years
The Company No
Credit provided
Bekaton Property receivable investment or
Subsidiary 12,559,290.58 12,559,290.58
Limited from related loans for the
party subsidiary in
previous years
Credit Current No
Paklid Limited Subsidiary receivable accounts in 18,631,565.47 -125,869.27 18,505,696.2
from related previous years
26
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
party
Credit No
Shenzhen Shenfang Current
receivable
Department Store Co. Subsidiary accounts in 237,648.82 237,648.82
from related
Ltd. previous years
party
Credit No
Shenzhen Real Estate Current
receivable
Consolidated Service Subsidiary accounts in 1,086,487.22 1,086,487.22
from related
Co., Ltd. previous years
party
Shenzhen City Credit No
Current
Shenfang Construction receivable
Subsidiary accounts in 8,327,180.71 8,327,180.71
and Decoration from related
previous years
Materials Ltd. party
Subsidiary No
(has Credit
Current
Shenzhen Ronghua conducted the receivable
accounts in 475,223.46 475,223.46
JiDian Co., Ltd employees’ from related
previous years
shareholding party
reform)
Credit No
Current
Xi’an Fresh Peak receivable
Joint venture accounts in 8,419,205.19 8,419,205.19
Building Co. Ltd. from related
previous years
party
Shenzhen Tefa Real Liability Current No
Estate Consolidated Subsidiary payable to accounts in 598,012.16 598,012.16
Service Co., Ltd. related party previous years
Shenzhen Shen Fang Liability Current No
Industrial Subsidiary payable to accounts in 1,534,854.91 1,534,854.91
Development Co., Ltd related party previous years
Liability Current No
Shenzhen ZhongGang
Subsidiary payable to accounts in 135,853.52 135,853.52
Haiyan Enterprise Ltd.
related party previous years
Shenzhen Dongfang Liability Current No
New world store Co., Subsidiary payable to accounts in 902,974.64 902,974.64
Ltd related party previous years
Liability Current No
Shenzhen Xin
Subsidiary payable to accounts in 1,394,704.21 1,394,704.21
Dongfang Store Ltd.
related party previous years
Fengkai Lain Feng Liability Current No
Cement Manufacturing Subsidiary payable to accounts in 1,867,348 1,867,348
Co., Ltd. related party previous years
27
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Liability Current No
Shenzhen CyberPort
Subsidiary payable to accounts in 7,949,749.26 -603,210.93 7,346,538.33
Co., Ltd
related party previous years
ShenZhen ShenFang Liability Current No
BaoAn development Subsidiary payable to accounts in 20,093,445.07 20,093,445.07
Co., Ltd related party previous years
The principal No
Liability and interest of
Shenzhen Investment Controlling
payable to loans from the 80,384,097.18 80,384,097.18
Holdings Co., Ltd. shareholder
related party controlling
shareholder
Shenzhen architectural Shareholder The principal
Liability
design & research controlling and interest of
payable to No 0 70,134,166.67
institute Co., Ltd. under the loans from the
related party
same control related-party
Effects of the credits and liabilities There was no appropriation of funds of the Company by the controlling shareholder and its
with related parties on the Company’s controlled related parties, the Company’s credits and liabilities with the subsidiaries, joint
operating results and financial ventures and associated enterprises arose from investment and current accounts, which had
situation no negative influence on the normal operation of the Company.
5. Other significant related-party transactions
Naught
The website to disclose the interim announcements on significant related-party transactions
Disclosure date of the interim
Name of the interim announcement Website to disclose the interim announcement
announcement
VII. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
Explanation on the trusteeship
Inapplicable
The item of which the profits and losses reaching more than 10% of the total profits of the Company in the reporting period
□Applicable √Inapplicable
(2) Particulars about contracting
Notes:
Inapplicable
28
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
The item of which the profits and losses reaching more than 10% of the total profits of the Company in the reporting period
□Applicable √Inapplicable
(3) Particulars about leasing
Notes:
Inapplicable
The item of which the profits and losses reaching more than 10% of the total profits of the Company in the reporting period
□Applicable √Inapplicable
2. Guarantees provided by the Company
Unit: RMB ten thousand
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Guarante
Disclosure
Actual e for a
date of Actual
Amount for occurrence date Type of Period of Executed related
Guarantee party relevant guarantee
guarantee (date of guarantee guarantee or not party or
announcem amount
agreement) not (Yes
ent
or no)
Total external guarantee line Total actual occurred amount
approved during the reporting 0 of external guarantee during 0
period (A1) the reporting period (A2)
Total external guarantee line that Total actual external guarantee
has been approved at the end of 0 balance at the end of the 0
the reporting period (A3) reporting period (A4)
Guarantee provided by the Company for its subsidiaries
Guarante
Disclosure
Actual e for a
date of Actual
Amount for occurrence date Type of Period of Executed related
Guaranteed party relevant guarantee
guarantee (date of guarantee guarantee or not party or
announcem amount
agreement) not (Yes
ent
or no)
Shenzhen SPG
Joint liability
Longgang 31 Mar.
8,840 31 Mar. 2012 8,840 guaranty 3 years No No
Development Co., 2012
Ltd.
Total actual occurred amount
Total guarantee line approved for
of guarantee for the
the subsidiaries during the 0 0
subsidiaries during the
reporting period (B1)
reporting period (B2)
29
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Total guarantee line that has been Total actual guarantee balance
approved for the subsidiaries at 8,840 for the subsidiaries at the end 8,840
the end of reporting period (B3) of the reporting period (B4)
Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
Total guarantee line approved Total actual occurred amount
during the reporting period 0 of guarantee during the 0
(A1+B1) reporting period (A2+B2)
Total guarantee line that has been Total actual guarantee balance
approved at the end of the 8,840 at the end of the reporting 8,840
reporting period (A3+B3) period (A4+B4)
Proportion of total guarantee amount (A4+B4) to the net assets
5.36%
of the Company
Of which:
Amount of guarantee for shareholders, actual controller and
0
related parties (C)
Amount of debt guarantee provided for the guaranteed party
whose asset-liability ratio is not less than 70% directly or 8,840
indirectly (D)
Part of the amount of the total guarantee over 50% of net assets
0
(E)
Total amount of the above three guarantees (C+D+E) 8,840
Explanation on possible bearing joint responsibility of
N/A
liquidation due to immature guarantee
Explanation on provision of guarantees for external parties in
N/A
violation of the prescribed procedure
Notes of guarantees by complex method:
Naught
3. Other significant contracts
Book Evaluated
value of value of
Transacti Execution
involved involved Base day Related-p
Evaluatio on price progress
Signing Signing Signing assets assets for Pricing arty Relations
n agency (RMB up to
company person date (RMB (RMB evaluatio principle transactio hip
(if any) Ten period-en
Ten Ten n (if any) n or not
thousand) d
thousand) thousand)
(if any) (if any)
4. Other significant transactions
30
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Naught
IX. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period, or such commitments carried down into the reporting period
Commitment Time of making Period of
Commitment Contents Fulfillment
maker commitment commitment
Commitment on share reform
Commitment in acquisition reports or
reports on equity changes
Commitments made upon the assets
reorganization
Commitments made upon IPO or
refinancing
Other commitments made to minority
shareholders
Executed in time or not? Yes
Detailed reason for failing to execute and
Inapplicable
the next plan (if any)
X. Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited or not?
□ Yes √ No
XI. Punishment and rectification
Type of
Name of the Type of the Conclusion (if
Reason investigation/puni Disclosure date Disclosure index
punished punished any)
shment
Particulars about rectification:
□ Applicable √ Inapplicable
31
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
XII. Explanation on other significant events
Naught
VI. Change in Shares & Shareholders
I. Change in shares
Before the change Increase/decrease (+, -) After the change
Capitalizat
Issuance ion of
Proportion Bonus Proportio
Amount of new public Others Subtotal Amount
(%) shares n (%)
shares reserve
fund
I. Restricted shares 0 0% 0 0 0 0 0 0 0%
1. Shares held by the State 0 0% 0 0 0 0 0 0 0%
2. Share held by
0 0% 0 0 0 0 0 0 0%
state-owned corporations
3. Shares held by other
0 0% 0 0 0 0 0 0 0%
domestic investors
Among which: shares held
0 0% 0 0 0 0 0 0%
by domestic corporations
Shares held by domestic
0 0% 0 0 0 0 0 0 0%
natural persons
4. Shares held by foreign
0 0% 0 0 0 0 0 0%
investors
Among which: Shares held
0 0% 0 0 0 0 0 0 0%
by foreign corporations
Shares held by foreign
0 0% 0 0 0 0 0 0 0%
natural persons
5. Share held by senior
0 0% 0 0 0 0 0 0 0%
management staff
1,011,660, 1,011,660
100% 0 0 0 0 0 100%
II. Non-restricted shares 000 ,000
1. Renminbi ordinary 891,660,0 891,660,0
88.14% 0 0 0 0 0 88.14%
shares 00 00
2. Domestically listed 120,000,0 120,000,0
11.86% 0 0 0 0 0 11.86%
foreign shares 00 00
32
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
3. Overseas listed foreign
0 0% 0 0 0 0 0 0 0%
shares
4. Others 0 0% 0 0 0 0 0 0 0%
1,011,660, 1,011,660
III. Total shares 100% 0 0 0 0 0 100%
000 ,000
Reason for the change in shares
□ Applicable √ Inapplicable
Approval of the change in shares
□ Applicable √ Inapplicable
Transfer of share ownership
□ Applicable √ Inapplicable
Effects of the change in shares on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the
Company and other financial indexes over the last year and last period
□ Applicable √ Inapplicable
Other contents that the Company considered necessary or were required by the securities regulatory authorities to disclose
□ Applicable √ Inapplicable
Change of the total shares, shareholder structure, asset structure and liability structure
□ Applicable √ Inapplicable
II. Total number of shareholders and their shareholdings
Unit: share
Total number of shareholders at the
82,867
end of the reporting period
Particulars about shares held by shareholders with a shareholding percentage over 5%
Total Increase Number Pledge or frozen shares
Number
shares /decreas of
of
Name of Nature of Shareholding held at e during non-rest
restricte
shareholder shareholder percentage (%) the the ricted Status of shares Number of shares
d shares
period-e reportin shares
held
nd g period held
Shenzhen
State-owned legal 642,884 642,884
Investment 63.55% 0 0
person ,262 ,262
Holdings Ltd.
Domestic natural 2,895,0 195094 2,895,0
Liu Yongkui 0.29% 0
person 49 9 49
Domestic natural 1,750,0 1,750,0
Jing Jianjun 0.17% 0 0
person 00 00
GUOTAI Overseas legal 0.14% 1,442,8 -72700 0 1,442,8
33
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
JUNAN person 50 50
SECURITIES(H
ONGKONG)
LIMITED
Guarantee
securities
accounts of
customer credit
transactions of
Domestic
Guangfa 1,169,8 -254002 1,169,8
non-state-owned 0.12% 0
Securities Co., 94 9 94
legal person
Ltd.
Domestic natural 1,156,1 Unknow 1,156,1
Yang Shuilian 0.11% 0
person 00 n 00
Domestic natural 1,095,8 1,095,8
Wang Zhongming 0.09% 0 0
person 08 08
Domestic natural 1,092,1 1,092,1
Wu Haoyuan 0.09% 0 0
person 00 00
Domestic natural Unknow
Lin Dongming 0.09% 925,781 0 925,781
person n
Domestic natural
Xue Haoyuan 0.09% 894,956 0 0 894,956
person
Strategic investor or general legal
person becoming a top ten
N/A
shareholder due to placing of new
shares (if any) (see Note 3)
Explanation on associated
relationship or/and persons acting in
N/A
concert among the above-mentioned
shareholders
Particulars about shareholders of the top ten shareholders holding non-restricted shares
Types of shares
Name of shareholder Number of non-restricted shares held at the period-end
Type Number
Renminbi
Shenzhen Investment Holdings Ltd. 642,884,262 642,884,262
common shares
Liu Yongkui 2,895,049 Renminbi 2,895,049
34
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
common shares
Renminbi
Jing Jianjun 1,750,000 1,750,000
common shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 1,442,850 listed foreign 1,442,850
LIMITED shares
Guarantee securities accounts of
Renminbi
customer credit transactions of 1,169,894 1,169,894
common shares
Guangfa Securities Co., Ltd.
Renminbi
Yang Shuilian 1,156,100 1,156,100
common shares
Domestically
Wang Zhongming 1,095,808 listed foreign 1,095,808
shares
Domestically Domestically
Wu Haoyuan 1,092,100 listed foreign listed foreign
shares shares
Renminbi
Lin Dongming 925,781 925,781
common shares
Renminbi
Xue Haoyuan 894,956 894,956
common shares
Explanation on associated
relationship or/and persons acting in
concert among the top ten tradable
Unknown
shareholders and between the top ten
tradable shareholders and the top ten
shareholders
Explanation on shareholders The No. 1 in the guarantee securities account of customer credit transactions of GF Securities
participating in the margin trading Co., Ltd. was Tang Qi, holding 410,800 shares (a stake of 0.0406% in the Company), not in t
business (if any) (see Note 4) he top 10 shareholders.
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
35
2013 Semi-annual Report of Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
VII. Directors, Supervisors & Senior Management Staff
I. Shareholding changes of directors, supervisors and senior management staff
□ Applicable √ Inapplicable
Shareholdings of directors, supervisors and senior management staff did not change in the reporting period. For details, see the 2012
Annual Report.
II. Directors, supervisors and senior management staff who left their posts
Name Position Type Date Reason
36
VIII. Financial Statements
1. Audit report
Was the financial report for the six months Ended 30 June 2013 audited?
□ Yes √ No
The financial report for the six months Ended 30 June 2013 was not audited.
2. Financial statement
Currency: RMB Yuan
2.1Consolidated Balance Sheet
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Unit: Yuan
Item Closing balance Opening balance
Current Assets：
Monetary funds 613,271,353.69 496,805,905.01
Deposit reservation for balance
Lendings to Banks and Other Financial Institutions
Financial assets held-for-trading
Note receivables
Account receivables 21,512,732.55 24,413,187.02
Prepayments 82,590,149.74 39,677,550.07
Draw in insurance fee
Reinsurance Accounts Receivable
Receivable Deposit for Duty of Reinsurance
Interest receivable
Dividends receivable 1,052,192.76 1,052,192.76
Other receivables 57,624,699.20 56,894,335.01
Buying back the sale of financial assets
Inventories 2,772,285,028.20 2,431,754,464.54
Non-current asset due within one year
Other current assets 25,904,506.01 7,780,460.78
Total current assets 3,574,240,662.15 3,058,378,095.19
Non-current assets
Issuing of entrusted loans and advances
Financial assets held-for-trade
Held-to-maturity investments
Long-term receivables
Long-term equity investments 75,225,969.30 75,225,969.30
Investment properties 477,167,112.19 487,373,443.43
Fixed assets 60,204,832.39 63,204,808.66
Construction in progress
Materials for construction
Disposal of fixed assets
Bio-assets in production
Oil and gas assets
Intangible assets 6,984,916.77 5,866,106.75
Development expenditure
Goodwill
Long-term deferred assets 712,068.64 427,321.35
Deferred tax assets 19,881,649.62 19,881,649.62
Other non-current assets 735,190.76 2,413,434.00
Total non-current assets 640,911,739.67 654,392,733.11
TOTAL ASSETS 4,215,152,401.82 3,712,770,828.30
Current liabilities:
Short-term loans 16,000,000.00 96,000,000.00
Borrowings from the Central Bank
Savings Absorption & Due to Placements with Banks and Other
Financial Institutions
Borrow from Banks and Other Financial Institutions
Financial liabilities held-for-trade
Notes payable
Accounts payable 54,660,819.83 72,660,833.60
Advances from customers 1,134,654,627.94 407,194,198.80
Financial Assets Sold for Repurchase
Handling charges and commissions payable
Employee benefits payable 26,278,551.66 36,675,028.18
Taxes payable 6,971,655.21 19,958,153.14
Interest payables 16,735,277.94 18,395,916.84
Dividends payable
Other payables 387,616,478.26 394,741,726.29
Dividend Payable for Reinsurance
Insurance contract reserve fund
Receivings from Vicariously Traded Securities
Receivings from Vicariously Sold Securities
Non-current liabilities due within one year 314,463,421.86 299,261,270.80
Other current liabilities
Total current liabilities 1,957,380,832.70 1,344,887,127.65
Non-current liabilities:
Long-term loans 725,267,638.70 849,636,078.25
Bonds payable
Long-term payables 10,536,381.50 11,136,124.62
Special payables
Accrued liabilities
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 735,804,020.20 860,772,202.87
Total liabilities 2,693,184,852.90 2,205,659,330.52
Owners' equity：
Share capital 1,011,660,000.00 1,011,660,000.00
Capital reserve 978,244,858.10 978,244,858.10
Less: treasury shares
Special reserve
Surplus reserve 4,974,391.15 4,974,391.15
General risk reserve
Undistributed profit -356,104,064.99 -369,154,405.36
Foreign exchange translation difference 10,867,228.69 9,651,254.84
Total owners' equity attributable to parent company 1,649,642,412.95 1,635,376,098.73
Minority interests -127,674,864.03 -128,264,600.95
Total owners’equity 1,521,967,548.92 1,507,111,497.78
Total liabilities and owners’equity 4,215,152,401.82 3,712,770,828.30
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ:
Tang Xiaoping
2.2 Balance Sheet
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Unit: Yuan
Item Closing balance Opening balance
Current assets
Monetary funds 451,672,122.54 223,827,179.97
Financial assets held-for-trade
Notes receivable
Accounts receivable 6,496,519.11 13,663,339.96
Prepayments 4,645,893.07 55,500.00
Interest receivable
Dividends receivable
Other receivables 349,106,649.26 343,568,799.28
Inventories 2,041,866,467.15 1,844,523,622.50
Non-current asset due within one year
Other current assets 9,298,837.66
Total current assets 2,863,086,488.79 2,425,638,441.71
Non-current Assets:
Financial assets available-for-sale
Held-to-maturity investments
Long-term receivable
Long-term equity investments 298,396,683.90 298,396,683.90
Investment properties 417,163,451.43 426,426,812.91
Fixed assets 32,588,569.18 33,944,334.56
Construction in progress
Materials for construction
Disposal of fixed assets
Bio-assets in production
Oil and gas assets
Intangible assets 1,593,466.77 327,266.75
Development expenditure
Goodwill
Long-term deferred assets 161,191.05 189,456.15
Deferred tax assets 6,814.20 6,814.20
Other non-rrent assets 735,190.76 1,376,400.00
Total non-current assets 750,645,367.29 760,667,768.47
Total Assets 3,613,731,856.08 3,186,306,210.18
LIABILITIES AND OWNERS' EQUITY Closing balance Opening balance
Current liabilities:
Short-term loans -- 70,000,000.00
Financial liabilities held-for-trade
Notes payable
Account payable 18,812,150.66 24,195,725.69
Advances from customers 929,630,872.00 280,272,668.00
Employee benefits payable 8,321,375.12 10,848,111.62
Taxes payable 4,503,607.67 6,204,121.44
Interest payable 16,535,277.94 18,020,083.50
Dividend payable
Other payables 593,647,480.89 608,165,106.86
Non-current liability due within one year 314,463,421.86 299,261,270.80
Other current liability -- --
Total current liabilities 1,885,914,186.14 1,316,967,087.91
Non-current liabilities：
Long-term loans 517,278,286.47 649,636,078.25
Bonds payable
Long-term payables
Special payables
Accrued liabilities
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 517,278,286.47 649,636,078.25
Total liabilities 2,403,192,472.61 1,966,603,166.16
Owners' equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Capital reserve 978,244,858.10 978,244,858.10
Less: treasury shares
Special reserve
Surplus reserves
General risk reserve
Undistributed profit -779,365,474.63 -770,201,814.08
Foreign currency translation difference
Total owners' equity attributable to parent company 1,210,539,383.47 1,219,703,044.02
Total liabilities and owners' equity 3,613,731,856.08 3,186,306,210.18
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ:
Tang Xiaoping
2.3 Consolidated Income Statement
Prepared by: SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) CO., LTD
Amount for the Amount for the
Item
current period prior period
Ⅰ.Total operating income 320,687,860.60 447,364,203.07
Including: Operating income 320,687,860.60 447,364,203.07
Interest Income
Premium Income
Commission Income
Ⅱ.Total operating Costs 305,029,618.82 394,138,348.25
Including: Operating costs 246,707,002.82 310,482,609.12
Interest Expenses
Commission Expenses
Loan Value
Net compensation Expenses
Appropriation of Deposit for Duty
Dividend Expenses for The Insured
Reinsurance Expenses
Business tax and surcharge 24,535,155.90 44,716,083.71
Selling expenses 6,879,545.90 6,256,376.23
Administrative expense 27,482,942.29 29,263,423.18
Financial expense -575,027.99 3,419,856.01
Impairment losses of assets -- --
Add: Gains from changes in fair value ("-" means loss) -- --
Investment income ("-" means loss) -- 50,000.00
Including: Investment income from associates and joint venture -- --
Exchange gain（"-" means loss）
Ⅲ.Operating profit ("-" means loss) 15,658,241.78 53,275,854.82
Add: Non-operating income 3,525,440.59 62,961.84
Less: Non-operating expenses 95,764.32 48,558.27
Including: Loss on disposal of non-current assets 6,511.98 9,175.80
Ⅳ.Total profit ("-" means loss) 19,087,918.05 53,290,258.39
Less: Income tax expenses 6,019,760.27 13,182,343.19
Ⅴ.Net profit ("-" means loss) 13,068,157.78 40,107,915.20
Including: The net profits of the merged party which has been realized
prior to the combination
Net attributable to owners of parent company 13,050,340.37 40,084,098.09
Minority interests 17,817.41 23,817.11
Ⅵ.Earnings per share
Basic Earnings per share 0.0129 0.0396
Diluted Earnings per share 0.0129 0.0396
Ⅶ.Other comprehensive income 1,787,893.36 -76,219.59
Ⅷ.Total comprehensive income 14,856,051.14 40,031,695.61
Total comprehensive income attributable to owners of parent company 14,266,314.22 40,038,992.88
Total comprehensive income attributable to minority interests 589,736.92 -7,297.27
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ:
Tang Xiaoping
2.4 Income Statement
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Unit: Yuan
Amount for the Amount for the
Item
current period prior period
Ⅰ.Total operating income 25,288,842.36 35,178,901.24
Less:Operating cost 11,056,048.84 13,073,029.87
Business tax and surcharge 4,969,097.32 5,507,801.24
Selling expenses 4,143,678.58 2,183,414.92
Administrative expense 13,204,466.99 13,592,628.97
Financial expense 1,115,568.71 -1,365,021.84
Impairment losses of assets -- --
Add: Gain from changes in fair value ("-" means loss) -- --
Investment income ("-" means loss) -- --
Including: Investment income from associates and joint venture -- --
II.Operating profit ("-" means loss) -9,200,018.08 2,187,048.08
Add: Non-operating income 62,002.01 30,231.00
Less:Non-operating expenses 25,644.48 --
Including: Loss from disposal of non-current assets 4,644.48 --
III.Total profit ("-" means loss) -9,163,660.55 2,217,279.08
Less: Income tax expenses -- --
IV.Net profit ("-" means loss) -9,163,660.55 2,217,279.08
V.Earnings per share -- --
Basic Earnings per share -0.009 0.002
Diluted Earnings per share -0.009 0.002
VI.Other comprehensive income -- --
VII.Total comprehensive income -9,163,660.55 2,217,279.08
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ:
Tang Xiaoping
2.5 Consolidated Cash Flow Statement
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Unit: Yuan
Amount for the Amount for the
Items
current period prior period
Ⅰ. Cash Flow from Operating Activities：
Cash received from sales of goods or rendering of services 1,038,782,095.16 395,345,406.76
Refund of taxes and levies -- --
Net increase of customer deposits and interbank deposit
Net increase in borrowings from the central bank
Net increase of capital borrowed from other financial institutions
Cash received from the original insurance contract
Net cash received from reinsurance business
Net increase in insured deposits and investments
Net increase in disposal of financial assets
Interest charges, fees and commissions
Net increase in capital borrowed
Net increase in repurchase operations funds
Tax refund received
Cash received relating to other operating activities 66,253,051.17 35,178,907.21
Sub-total of Cash Inflows 1,105,035,146.33 430,524,313.97
Cash paid for goods and services 551,706,829.05 356,669,537.04
Net increase in loans and advances
Net increase on central bank and interbank
Cash payments on the original insurance contract
Cash on payment of interest, fee and commissions
Cash dividends paid to policyholders
Cash paid to and on behalf of employees
Cash paid to and on behalf of employees 60,437,931.14 50,803,286.66
Cash paid on taxes and levies 71,652,121.81 70,391,794.88
Cash paid relating to other operating activities 71,790,523.32 68,973,567.42
Sub-total of Cash Outflows 755,587,405.32 546,838,186.00
Net Cash Flows from Operating Activities 349,447,741.01 -116,313,872.03
Ⅱ. Cash Flows from Investing Activities:
Cash received from return of investments -- --
Cash received investing income -- 50,000.00
Net cash received from disposal of fixed assets,
4,627,823.89 8,000.00
intangible assets and other long assets"
Net cash flows from disposal subsidiary and other operating unite -- --
Other cash received relating to investing activities -- --
Sub-total of Cash Inflows 4,627,823.89 58,000.00
Cash paid to acquire fixed assets, intangible assets and other long
876,000.76 2,452,280.00
assets
Cash paid on investments -- --
Net increase in secured loans
Net cash paid on obtain subsidiary and other operating unite
Amount for the Amount for the
Items
current period prior period
-- --
Cash paid on other investing activities -- --
Sub-total of Cash Outflows 876,000.76 2,452,280.00
Net Cash Flows from Investing Activities 3,751,823.13 -2,394,280.00
Ⅲ. Cash flow from Financing Activities
Cash received from investments -- --
Including: Cash received from investments by minority interests of
-- --
subsidiaries
Cash received from borrowing 17,989,352.23 146,000,000.00
Cash received from issuing bonds -- --
Cash received from other financing activities 5,000,000.00 --
Sub-total of Cash Inflows 22,989,352.23 146,000,000.00
Cash repayments on borrowed amounts 207,739,818.50 105,236,955.55
Cash payments for distribution of dividends or profits 38,745,760.90 35,318,863.43
Including: Dividends or profit paid to minority interests of
subsidiaries -- --
Cash payments on other financing activities -- --
Sub-total of cash Outflows 246,485,579.40 140,555,818.98
Net cash flows from financing activities -223,496,227.17 5,444,181.02
Ⅳ. Effect of foreign exchange rate on cash -235,856.33 336,108.82
Ⅴ. Net increase in cash and cash equivalents 129,467,480.64 -112,927,862.19
Add: cash equivalents at the beginning of the period 463,713,702.77 324,967,185.86
Ⅵ. Cash equivalents at the end of the period 593,181,183.41 212,039,323.67
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ:
Tang Xiaoping
2.6 Cash Flow Statement
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Unit: Yuan
Amount for the Amount for the prior
Item
current period period
Ⅰ. Cash Flow from Operating Activities：
Cash received from sales of goods or rendering of services 682,488,655.33 33,177,385.26
Refund of taxes and levies -- --
Cash received relating to other operating activities 21,118,477.30 93,495,493.31
Sub-total of cash inflows 703,607,132.63 126,672,878.57
Cash paid for goods and services 182,971,575.16 114,370,846.62
Cash paid to and on behalf of employees 17,505,842.40 13,975,981.49
Cash paid on taxes and levies 27,139,693.58 8,234,754.56
Cash paid relating to other operating activities 20,359,831.27 92,853,530.98
Sub-total of Cash Outflows 247,976,942.41 229,435,113.65
Net Cash Flows from Operating Activities 455,630,190.22 -102,762,235.08
Ⅱ. Cash Flows from Investing Activities:
Cash received from return of investments -- --
Cash received investing income -- --
Net cash received from disposal of fixed assets, intangible assets
-- --
and other long assets
Net cash received from disposal of branch and other business unit
Other cash received relating to investing activities -- --
Sub-total of Cash Inflows -- --
Cash paid to acquire fixed assets, intangible assets and other long
760,297.76 138,892.00
assets
Cash paid on investments -- --
Net cash paid to acquire branch and other business unit
Cash paid on other investing activities -- --
Sub-total of cash outflows 760,297.76 138,892.00
Net Cash Flows from Investing Activities -760,297.76 -138,892.00
Ⅲ. Cash flow from Financing Activities
Cash received from investments -- --
Cash received from borrowing -- 126,000,000.00
Cash received from issuing bonds -- --
Cash received from other financing activities 5,000,000.00 --
Sub-total of cash inflows 5,000,000.00 126,000,000.00
Cash repayments on borrowed amounts 187,739,818.50 45,236,955.55
Cash payments for distribution of dividends or profits 31,282,790.40 27,876,216.82
Cash payments on other financing activities -- --
Sub-total of cash Outflows 219,022,608.90 73,113,172.37
Net cash flows from financing activities -214,022,608.90 52,886,827.63
Ⅳ. Effect of foreign exchange rate on cash -411.85 -304.19
Ⅴ. Net increase in cash and cash equivalents 240,846,871.71 -50,014,603.64
Add: cash equivalents at the beginning of the period 190,825,250.83 144,779,100.65
Ⅵ. Cash equivalents at the end of the period 431,672,122.54 94,764,497.01
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ:
Tang Xiaoping
2.7 CONSOLIDATED STATEMENT OF CHANGE IN OWNER'S EQUITY
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd. Unit: Yuan
Amount for the current period
Attribute to the equity of parent company
Minority Total owners'
Items Less: General risk
Capital Special Surplus Undistributed interests equity
Share capital Treasury reserve Others
reserve reserve reserve profit
shares
1.Balance at the End
of Last Period 1,011,660,000.00 978,244,858.10 -- -- 4,974,391.15 -- -369,154,405.36 9,651,254.84 -128,264,600.95 1,507,111,497.78
Add: Changes of
accounting policies -- -- -- -- -- -- -- -- -- --
Error
correction of the
previous period -- -- -- -- -- -- -- -- -- --
Others -- -- -- -- -- -- -- -- -- --
2. Balance at the
Beginning of the
Year 1,011,660,000.00 978,244,858.10 -- -- 4,974,391.15 -- -369,154,405.36 9,651,254.84 -128,264,600.95 1,507,111,497.78
3.Increase/Decrease
movements in this
Year ("-" means loss) -- -- -- -- -- -- 13,050,340.37 1,215,973.85 589,736.92 14,856,051.14
(I) Net Profit -- -- -- -- -- -- 13,050,340.37 -- 17,817.41 13,068,157.78
(II) Other
comprehensive
income -- -- -- -- -- -- -- 1,215,973.85 571,919.51 1,787,893.36
Subtotal of (I)and (II) -- -- -- -- -- -- 13,050,340.37 1,215,973.85 589,736.92 14,856,051.14
(III) Capital Injected
and Reduced by
Owners -- -- -- -- -- -- -- -- -- --
a. Capital injected by
owners -- -- -- -- -- -- -- -- -- --
b. Payment for shares
included in owners'
equity -- -- -- -- -- -- -- -- -- --
c. Others -- -- -- -- -- -- -- -- -- --
(IV) Profit Distribution -- -- -- -- -- -- -- -- -- --
a. Withdraws of -- -- -- -- -- -- -- -- -- --
surplus reserve
b.Withdraws of general
risk reserve -- -- -- -- -- -- -- -- -- --
c. Distribution to
owners (or
shareholders) -- -- -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- -- -- --
(V) Internal transfers
of owners' equity -- -- -- -- -- -- -- -- -- --
a. Capitalisation of
Additional share
capital; (or share
capital) -- -- -- -- -- -- -- -- -- --
b. Capitalization of
surplus reserve (or
share capital) -- -- -- -- -- -- -- -- -- --
c. Making up losses
of surplus reserve -- -- -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- -- -- --
(VI) Special Reserve -- -- -- -- -- -- -- -- -- --
a. Withdrawal of special
reserve -- -- -- -- -- -- -- -- -- --
b. Use of special
reserve -- -- -- -- -- -- -- -- -- --
(VII) Others -- -- -- -- -- -- -- -- -- --
4. Balance at the end
of the period 1,011,660,000.00 978,244,858.10 -- -- 4,974,391.15 -- -356,104,064.99 10,867,228.69 -127,674,864.03 1,521,967,548.92
Amount for the prior period
Attributable to equity holders of the Company Minority Total owners'
Items General interests
Capital Less: Treasury Special Surplus Undistributed equity
Share capital risk Others
reserve shares reserve reserve reserve
profit
1.Balance at the End of Last
Period 1,011,660,000.00 978,244,858.10 -- -- 4,974,391.15 -- -475,968,948.89 9,686,235.77 -128,289,915.22 1,400,306,620.91
Add: retroactive adjustment of
enterprise merger Under the
same control -- -- -- -- -- -- -- -- --
Changes of accounting policies -- -- -- -- -- -- -- -- --
Error correction of the
previous period -- -- -- -- -- -- -- -- --
Other -- -- -- -- -- -- -- -- --
2. Balance at the Beginning of
the Year 1,011,660,000.00 978,244,858.10 -- -- 4,974,391.15 -- -475,968,948.89 9,686,235.77 -128,289,915.22 1,400,306,620.91
3. Increase/Decrease movements
in this Year ("-" means loss) -- -- -- -- -- -- 40,084,098.09 -45,105.21 -7,297.27 40,031,695.61
(I) Net Profit -- -- -- -- -- -- 40,084,098.09 -- 23,817.11 40,107,915.20
(II) Other comprehensive income -- -- -- -- -- -- -- -45,105.21 -31,114.38 -76,219.59
Subtotal of (I)and (II) -- -- -- -- -- -- 40,084,098.09 -45,105.21 -7,297.27 40,031,695.61
(III) Capital Injected and Reduced
by Owners -- -- -- -- -- -- -- -- --
a. Capital injected by owners -- -- -- -- -- -- -- -- --
b. Payment for shares included in
owners' equity -- -- -- -- -- -- -- -- --
c. Others -- -- -- -- -- -- -- -- --
(IV) Profit Distribution -- -- -- -- -- -- -- -- --
a. Withdraws of surplus reserve -- -- -- -- -- -- -- -- --
b.Withdraws of general risk reserve -- -- -- -- -- -- -- -- --
c. Distribution to owners (or
shareholders) -- -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- -- --
(V) Internal transfers of owners' -- -- -- -- -- -- -- -- --
equity
a. Capitalisation of Additional share
capital; (or share capital) -- -- -- -- -- -- -- -- --
b. Capitalization of surplus reserve
(or share capital) -- -- -- -- -- -- -- -- --
c. Making up losses of surplus
reserve -- -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- -- --
(VI) Special Reserve -- -- -- -- -- -- -- -- --
a. Withdrawal of special reserve -- -- -- -- -- -- -- --
b. Use of special reserve -- -- -- -- -- -- -- --
(VII) Others -- -- -- -- -- -- -- --
4. Balance at the end of the
period 1,011,660,000.00 978,244,858.10 -- -- 4,974,391.15 -435,884,850.80 9,641,130.56 -128,297,212.49 1,440,338,316.52
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ: Tang Xiaoping
2.8 STATEMENT OF CHANGES IN OWNER'S EQUITY
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd. Unit: Yuan
Amount for the current period
Item Less: General risk
Special Undistributed Total owners'
Share capital Capital reserve Treasury Surplus reserve reserve
reserve profit equity
shares
1.Balance at the End of Last Period 1,011,660,000.00 978,244,858.10 -- -- -- -- -770,201,814.08 1,219,703,044.02
Add: Changes of accounting policies -- -- -- -- -- -- -- --
Error correction of the previous period -- -- -- -- -- -- -- --
Others -- -- -- -- -- -- -- --
2. Balance at the Beginning of the Year 1,011,660,000.00 978,244,858.10 -- -- -- -- -770,201,814.08 1,219,703,044.02
3. Increase/Decrease movements in this Year ("-"
-- -- -- -- -- -- -9,163,660.55 -9,163,660.55
means loss)
(I) Net Profit -- -- -- -- -- -- -9,163,660.55 -9,163,660.55
(II) Other comprehensive income -- -- -- -- -- -- -- --
Subtotal of (I)and (II) -- -- -- -- -- -- -9,163,660.55 -9,163,660.55
(III) Capital Injected and Reduced by Owners -- -- -- -- -- -- -- --
a. Capital injected by owners -- -- -- -- -- -- -- --
b. Payment for shares included in owners' equity -- -- -- -- -- -- -- --
c. Others -- -- -- -- -- -- -- --
(IV)Profit distribution -- -- -- -- -- -- -- --
a. Withdraws of surplus reserve -- -- -- -- -- -- -- --
b.Withdraws of general risk reserve -- -- -- -- -- -- -- --
c. Distribution to owners (or shareholders) -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- --
(V) Internal transfers of owners' equity -- -- -- -- -- -- -- --
a. Capitalisation of Additional share capital; (or share
-- -- -- -- -- -- -- --
capital)
b. Capitalisation of surplus reserve (or share capital) -- -- -- -- -- -- -- --
c. Making up losses of surplus reserve -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- --
56
(VI) Special Reserve -- -- -- -- -- -- -- --
a. Withdrawal of current period -- -- -- -- -- -- -- --
b. Use of special reserve -- -- -- -- -- -- -- --
(VII) Others -- -- -- -- -- -- -- --
4. Balance at the end of the period 1,011,660,000.00 978,244,858.10 -- -- -- -- -779,365,474.63 1,210,539,383.47
.
Amount for the prior period
Item Less: General
Capital Special Surplus Undistributed Total owners'
Share capital Treasury risk
reserve reserve reserves profit equity
shares reserve
1. Balance at the end of last year: 1,011,660,000.00 978,244,858.10 -- -- -- -- -775,821,536.01 1,214,083,322.09
Add: Changes of accouting policy -- -- -- -- -- -- -- --
Error correction of the previous period -- -- -- -- -- -- -- --
Others -- -- -- -- -- -- -- --
2. Balance at the beginning of the year 1,011,660,000.00 978,244,858.10 -- -- -- -- -775,821,536.01 1,214,083,322.09
3. Change in equity for the year -- -- -- -- -- -- 2,217,279.08 2,217,279.08
(1) Net profit -- -- -- -- -- -- 2,217,279.08 2,217,279.08
(2) Others -- -- -- -- -- -- -- --
Sub-total (1)& (2) -- -- -- -- -- -- 2,217,279.08 2,217,279.08
(3)Shareholders’ contributions and decrease of
-- -- -- -- -- -- -- --
capital
a. Contributions by shareholders -- -- -- -- -- -- -- --
b. Equtiy settled share-based payment -- -- -- -- -- -- -- --
c. Others -- -- -- -- -- -- -- --
(4) Distribution of profits -- -- -- -- -- -- -- --
a. Withdraws of surplus reserve -- -- -- -- -- -- -- --
b.Withdraws of general risk reserve -- -- -- -- -- -- -- --
c. Distribution to owners (or shareholders) -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- --
57
(5) Transfers within equity -- -- -- -- -- -- -- --
a. Share capital increased by capital reserve transfer -- -- -- -- -- -- -- --
b. Share capital increased by surplus reserve transfer -- -- -- -- -- -- -- --
c. Remedying loss with profit surplus -- -- -- -- -- -- -- --
d. Others -- -- -- -- -- -- -- --
(6) Special reserves -- -- -- -- -- -- -- --
a. Extracted this year -- -- -- -- -- -- -- --
b. Used this year -- -- -- -- -- -- -- --
(7) Others -- -- -- -- -- -- -- --
4. Balance at the end of the year report period 1,011,660,000.00 978,244,858.10 -- -- -- -- -773,604,256.93 1,216,300,601.17
Legal representative: Zhou Jianguo Person in charge of accounting: Wei Hanping Person in charge of accounting organ: Tang Xiaoping
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3. General information
3.1 Corporate introduction
Shenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Group” or “the
Company”) was established in July 1993, as approved by the Shenzhen Municipal Government with
document SFBF (1993) 724. The Company issued A shares on 15th September, 1993 and issued B
shares on 10 January 1994. On 31 August 1994, B shares issued were listed in New York Exchange
market as class A recommendation. The total share capital are 1,011,660,000 shares, of which, A
shares are 891,660,000 shares, and the B shares are 120, 000,000 shares. The Company business
licenses registration number is 440301103225878, and the registered capital is RMB 1,011,660,000.00.
On 13 October 2004，according to the document No.(2004) 223 “Decision on establishing Shenzhen
investment Holding Co., Ltd.” issued by State-Owned Assets Supervision and Administration
Commission of Shenzhen Municipal Government, Former major shareholder – Shenzhen Construction
Investment Holding Company with two other assests management companies 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 had been done on 15 Feberary 2006. As at the end of the
reporting period, Shenzhen Investment Holding Limited holds 642,884,262 shares of the Company
(63.55% of the total share capital). The shares are all selling unrestricted shares.
3.2 Corporate Information
Nature of Busines: this Company belongs to the real estate industry.
Business scope: mainly engaged in real estate development and sales, property leasing and
management, retail merchandising and trade, hotel, equipment installation and maintenance,
construction, interior decoration and so on.
The main products or services provided: commodity housing, property leasing and management, hotel
service, construction and installation service, renovation service.
3.3 Change of Corporate transaction
There is no change for the main transactions during report period.
3.4 Financial statements publish approver & date
The Financial statement published on Aug 20th, 2013, which approved by Group’s Board of Directors.
4. Important Accounting Principles, Accounting Estimates and previous accounting errors
4.1 Basis of Preparation
The financial statements of the Group have been prepared on the basis of going concern in conformity
with Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business
Enterprises issued by the Ministry of Finance of People’s Republic of China in February 2006, and
Accounting Standards (order No.38 of the Ministry of Finance) and Compilation Rules for Information
Disclosure by Companies Offering Securities to the Public No.15—General Provisions on Financial
Reports (2010 Revision) issued by the China Securities Regulatory Commission (CSRC)
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According to the relevant accounting regulations in Chinese Accounting Standards for Business
Enterprises, the Group has adopted the accrual basis of accounting. The Group adopts the historical
cost as the principle of measurement in the financial statements except some financial instrument.
Provision will be made if any assets impairement incure in accordance with relevant requirements.
4.2 Statement of Compliance with Enterprise Accounting Standards
The financial statements of the Group comply are recognized and measured in accordance with the
regulations in the Chinese Accounting Standards for Business Enterprises and they give a true and fair
view of the financial position, business result and cash flow of the Group as of 30 June 2013. in
addition, the financial statements of the and the Group comply, in all material respects, with the revised
disclosing requirements for financial statements and the notes ” Compilation Rules for Information
Disclosure by Companies Offering Securities to the Public No.15—General Provisions on Financial
Reports (2010 Revision) issued by China Securities Regulatory Commission (CSRC) in 2010.
4.3 Accounting period
The accounting period of the Group is classified as interim period and annual period. Interim period
refers to the reporting period shorter than a complete annual period. The accounting period of the
Group is the calendar year from January 1 to December 31.
4.4 Monetary Unit
Renminbi (RMB) is the currency of the primary economic environment in either Group & its domestic
subsidiaries or foreign subsidiary in HK. Therefore, the Group, the domestic subsidiaries and foreign
subsidiary in HK choose RMB as their functional currency. While the Group’s foreign subsidiary in
U.S.A. chooses USD dollar as its functional currency on the basis of the primary economic environment
it operates.The Group adopts RMB to prepare its functional statements.
4.5 Accounting treatment under common/non common control
A business combination is a transaction or event that brings together two or more separate entities into
one reporting entity. Business combinations involve enterprises under common control and non
common control.
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both before
and after the combination, and that control is not transitory.
For a business combination involving enterprises under common control, the party that, on the
combination date, obtains control of another enterprise participating in the combination is the absorbing
party, while that other enterprise participating in the combination is a party being absorbed.
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Combination date is the date on which the absorbing party effectively obtains control of the party being
absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise
being combined at the combination date. The difference between the carrying amount of the net assets
obtained and the carrying amount of consideration paid for the combination (or the total face value of
shares issued) is adjusted to the capital premium (or share premium) in the capital reserve. If the
balance of the capital premium (or share premium) is insufficient, any excess is adjusted to retained
earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to the
combination shall be recognized as an expense through profit or loss for the current period when
incurred.
（2）Business combination involving entities under non common control
A business combination involving enterprises under non common control happens in the combining
enterprises are not ultimately controlled by the same party or parties both before and after the business
combination.
For a business combination not involving enterprises under common control, the party that, on the
acquisition date, obtains control of another enterprise participating in the combination is the acquirer,
while that other enterprise participating in the combination is the acquiree. Acquisition date is the date
on which the acquirer effectively obtains control of the acquiree.
For a business combination not involving enterprise under common control, the combination cost
including the sum of fair value, at the acquisition date, of the assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer. The intermediary expenses incurred by the
acquirer in respect of auditing, legal services, valuation and consultancy services etc and other
associated administrative expenses attributable to the business combination are recognized in profit or
loss when they are incurred.
The transaction cost arose from issuing of equity securities or liability securities shall be initially
recognized as equity securities or liability securities.
The contingent consideration related to the combination shall be booked as combination cost at the fair
value at the acquisition date. If, within the 12 months after acquisition, additional information can prove
the existence of related information at acquisition date and the contingent consideration need to be
adjusted, goodwill can be offset.
For a business combination achieved in stages that involves multiple exchange transactions, the equity
interest in the acquiree previously held before the acquisition date re-assessed at the fair value at
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the acquisition date, with any difference between its fair value and its carrying amount is recorded as
investment income. The other comprehensive income of the acquiree before the acquisition date
relating to the previously held interest in the acquiree is transferred to investment income.
Combination cost is the aggregate of the carrying amount of the equity interest held in the acquiree
prior to the acquisition date and the fair value of the cost of the additional investment at the acquisition
date.
Combination cost of the acquirer’s interest and identifiable net assets of the acquirer acquired through
the business combination shall be measured by the fair value at the acquisition date. Where the cost of
combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets,
the difference shall be recognized as goodwill. Where the cost of combination is less than the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference shall be
accounted for according to the following requirements: (i) the acquirer shall reassess the measurement
of the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and
measurement of the cost of combination; (ii) if after that reassessment, the cost of combination is still
less than the acquirer’s interest in the fair values of the acquiree’s identifiable net assets, the acquirer
shall recognize the remaining difference immediately in profit or loss for the current period.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity with
the conditions applied for recognition of deferred income tax, if, within the 12 months after acquisition,
additional information can prove the existence of related information at acquisition date and the
expected economic benefits on the acquisition date arose from deductible temporary difference by the
acquiree can be achieved, relevant income tax assets can be recognized, and goodwill offset. If the
goodwill is not sufficient, the difference shall be recognized as profit of the current period.
Apart from above, the differences shall be taken into profit or loss of the current period if the recognition
of deferred income tax assets is related to the combination.
4.6 Preparation of consolidated financial statements
（1）The scope of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control. Control is the power to govern the financial and operating policies of an enterprise so as to
obtain benefits from its operating activities. The scope of consolidation includes the Group and all of
the subsidiaries. Subsidiary is an enterprise or entity under the control of the Group.
（2）Preparation of the consolidated financial statements
The subsidiary of the Group is included in the consolidated financial statements from the date when the
control over the net assets and business decisions of the subsidiary is effectively obtained, and
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excluded from the date when the control ceases.
For a subsidiary disposed of by the Group, the operating results and cash flows before the date of
disposal (the date when control is lost) are included in the consolidated income statement and
consolidated statement of cash flows, as appropriate. For a subsidiary disposed during the period, no
adjustment is made to the opening balance of the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating
results and cash flows from the acquisition (the date when the control is obtained) are included in the
consolidated income statement and consolidated statement of cash flows, as appropriated; no
adjustment is made to the opening balance and comparative figures in the consolidated financial
statements.
Where a subsidiary was acquired during the reporting period, through a business combination involving
enterprises under common control, the financial statements of the subsidiary are included in the
consolidated financial statements. The results of operations and cash flow are included in the
consolidated balance sheet and the consolidated income statement, respectively, based on their
carrying amounts, from the date that common control was established, and the opening balances and
the comparative figures of the consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the Group,
the Group makes necessary adjustments to the financial statements of the subsidiary based on the
Group’s own accounting period or accounting policies. Where a subsidiary was acquired during the
reporting period through a business combination not under common control, the financial statements
was reconciliated on the basis of the fair value of identifiable net assets at the date of acquisition.
Intra-group balances and transactions, and any unrealized profit or loss arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Group are presented
separately in the consolidated balance sheet within shareholders’/ owners’ equity and net profit. Net
profit or loss attributable to minority shareholders in the subsidiaries is presented separately as minority
interest in the consolidated income statement below the net profit line item.
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 [shareholders’] [owners’] equity of
the subsidiary, the excess is allocated against the minority interests.
When the Group loses control of a subsidiary due to the disposal of a portion of an equity investment or
other reasons, the remaining equity investment is re-measured at its fair value at the date when control
is lost. The difference between 1) the total amount of consideration received from the transaction that
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resulted in the loss of control and the fair value of the remaining equity investment and 2) the carrying
amounts of the interest in the former subsidiary’s net assets immediately before the loss of the control
is recognized as investment income for the current period when control is lost. The amount recognized
in other comprehensive income in relation to the former subsidiary’s equity investment is reclassified as
investment income for the current period when control is lost. The retained interest is subsequently
measured according to the rules stipulated in the “Chinese Accounting Standards for Business
Enterprises No.2—Long-term equity investment” or “Chinese Accounting Standards for Business
Enterprises No.22—Determination and measurement of financial instruments” .
4.7 Cash equivalent
Cash and cash equivalents of the Group include cash on hand, ready usable deposits and investments
having short holding term (normally will be due within three months from the day of purchase), with
strong liquidity and easy to be exchanged into certain amount of cash that can be measured reliably
and have low risks of change.
4.8 Foreign exchange
(1) Translation in foreign exchange transactions
The foreign currency transactions are recorded, on initial recognition in the functional currency, by
applying [the spot exchange rate on the date of the transaction / an exchange rate that approximates
the actual spot exchange rate on the date of transaction]. The exchange of foreign currency and
transactions related to the foreign exchange are translated at the spot exchange rate.
(2) Translation of monetary foreign currency and non-monetary foreign currency
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate
at the balance sheet date. All the exchange differences thus resulted are taken to profit or loss, except
for jthose relating to foreign currency borrowings specifically for construction and acquisition of
qualifying assets, which are capitalized in accordance with the principle of capitalization of borrowing
costs. For hedging accounting, the exchange difference related to hedging instruments for the purpose
of net oversea operating investment is recorded in the comprehensive income till the date of disposal
and recognized in profit or loss of the period；lThe exchange difference from changes of other
account balance of foreign currency monetary items available-for-trade is recorded into profit or loss
except for amortized cost.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spot
exchange rate prevailing on the transaction date, and the amount denominated in the functional
currency is not changed. Non-monetary foreign currency items measured at fair value are translated at
the spot exchange rate prevailing at the date when the fair values are determined. The exchange
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difference thus resulted are recognized in profit or loss for the current period or as capital reserve.
(3) The translation of financial statement in foreign currency
When the consolidated financial statements include foreign operation(s), if there is a foreign currency
monetary item constituting a net investment in a foreign operation, exchange difference arising from
changes in exchange rates are recognized as “exchange differences arising on translation of financial
statements denominated in foreign currencies” in owner’s equity, and in profit or loss for the period
upon disposal of the foreign operation.
The Group translates the financial statements of its foreign operations into RMB by following rules;
1） Assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing
at the balance sheet date; All equity items except for retained earnings are translated at the spot
exchange rates at the dates on which such items occur;
2） Income and expenses in income statement are translated at the spot exchange rates at the date
of transaction.
3） The opening undistributed profit is the closing undistributed profit of the last period after
translation.
4） The closing balance of undistributed profit is calculates and presented in the basis of each
translated income statements and profit distribution item.
5） The difference arising between the assets and liabilities and shareholder’s shall be booked as
translation difference of foreign currency statements, and shall be presented as a separate component
of equity in the balance sheet.
6） On a loss of control over Group’s oversea operation due to disposal, the Group transfers the
accumulated or proportionate share of the accumulated exchange difference arising on translation of
financial statements of this oversea operation attributable to the owners’ equity of the Group and
presented under shareholder’s equity, to profit or loss in the period in which the disposal occurs.
Foreign currency cash flows and cash flow of oversea subsidiaries are translated at the spot exchange
rates.The effect of exchange rate changes on cash is separately presented as an adjustment item in
the cash flow statement.
The opening and actual amount of last year are presented in the financial statement after translation
4.9 Financial instruments
(1) Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length transaction. For a financial instrument which has an
active market, the Group uses quoted price in the active market to establish its fair value. The quoted
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price in the active market refers to the price that can be regularly obtained from exchange market,
agencies, industry associations, pricing authorities; it represents the fair market trading price in the
actual transaction.
For a financial instrument which does not have an active market, the Group establishes fair value by
using a valuation technique. Valuation techniques include using recent arm’s length market
transactions between knowledgeable, willing parties, reference to the current fair value of another
instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(2) Classification, recognition and measurement of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date
basis. On initial recognition, the Group’s financial assets are classified into one of the four categories,
including financial assets at fair value though profit or loss, held-to maturity investments, loans and
receivables and available-for-trade financial assets. A financial asset is recognized initially at fair value.
In the case of financial assets at fair value through profit or loss, relevant transaction costs are
immediately charged to the profit and loss of the current period; transaction costs relating to financial
assets of other categories are included in the amount initially recognized.
1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or
loss.
Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. the financial asset is acquired for the purpose of selling it in a short term;
B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively
managed, and there is objective evidence indicating that the enterprise recently manages this portfolio
for the purpose of short-term profits;
C. the financial asset is a derivative, except for a derivative that is designated and effective hedging
instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by
delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair
value cannot be reliably measured. For such kind of financial assets, fair values are adopted for
subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it
meets one of the following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or
recognition of relevant gains or losses that would otherwise arise from measuring the financial
instruments on different bases.
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B. a group of financial instruments is managed and its performance is evaluated on a fair value basis,
and is reported to the enterprise’s key management personnels. Formal documentation regarding risk
management or investment strategy has prepared.
Financial assets at fair value through profit or loss are subsequently measured at the fair value.
Any gains or losses arising from changes in the fair value and any dividends or interest income earned
on the financial assets are recognized in the profit or loss.
1) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets available-for-trade and those
designated as at fair value though profit or loss. The Group classifies financial assets at fair value
through profit or loss as financial assets available-for trade.
A financial asset is classified as available-for-trade if one of the following conditions is satisfied: A) It
has been acquired principally for the purpose of selling in the near term; or B) On initial recognition it is
part of a portfolio of identified financial instruments that the Group managers together and there is
objective evidence that the Group has a recent actual pattern of short-term profit taking; or C) It is a
derivative that is not designated and effective as a hedging instrument, or a financial guarantee
contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity
instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
Financial assets at fair value through profit or loss are subsequently measured at far value. Any gains
or losses arising from changes in the fair value and any dividend or interest income earned on the
financial assets are recognized in profit or loss.
2） Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind of
financial assets are subsequently measured at amortized cost using the effective interest method.
Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss
for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the
expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net
carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group shall estimate future cash flow considering all
contractual terms of the financial asset or financial liability without considering future credit losses, and
also consider all fees paid or received between the parties to the contract giving rise to the financial
asset and financial liability that are an integral part of the effective interest rate, transaction costs, and
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premiums or discounts, etc.
3） Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are not
quoted in an active market. Financial assets classified as loans and receivables by the Group include
note receivables, account receivables, interest receivable dividends receivable and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or
loss.
4） Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated on initial
recognition as available for trade, and financial assets that are not classified as financial assets at fair
value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses
arising from changes in the fair value are recognized as other comprehensive income and included in
the capital reserve, except that impairment losses and exchange differences related to amortized cost
of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until the
financial assets are derecognized, at which time the gains or losses are released and recognized in
profit or loss.
Interests obtained and dividends declared by the investee during the period in which the financial
assets available-for-trade are held, are recognized in investment gains.
(3) Impairment of financial assets
The Group assesses at the balance sheet date the carrying amount of every financial asset except for
the financial assets that measured by the fair value. If there is objective evidence indicating a financial
asset may be impaired, a provision is provided for the impairment.
The Group makes an impairment test for a financial asset that is individually significant. For a financial
asset that is not individually significant, it is included in a group of financial assets with similar credit risk
characteristics and collectively assessed for impairment or individually assessed for impairment. If no
objective evidence of impairment incurs for an individually assessed financial asset (whether the
financial asset is individually significant or not individually significant), it is included in a group of
financial assets with similar credit risk characteristics and collectively assessed for impairment. Assets
for which an impairment loss is individually recognized is not included in a group of financial assets with
similar credit risk characteristics and collectively assessed for impairment.
1) Impairment on held-to maturity investment, loans and receivables
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The financial assets measured by cost or amortized cost write down their carrying value by the
estimated present value of future cash flow. The difference is recorded as impairment loss. If there is
objective evidence to indicate the recovery of value of financial assets after impairment, and it is related
with subsequent event after recognition of loss, the impairment loss recorded originally can be reversed.
The carrying value of financial assets after impairment loss reversed shall not exceed the amortized
cost of the financial assets without provisions of impairment loss on the reserving date.
2) Impairment loss on available-for-trade financial assets
When decision is made with all related factors on whether the fall of fair value investment of an equity
instrument available-for-trade is significant or non-transient, it indicates impairment of such equity
instrument investment, in which, Significant means over 20% of fall in fair value and Non-transient
means over 12 months of subsequent fall.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in
fair value that had been recognized in capital reserve shall be removed and recognized in profit or loss.
The amount of the cumulative loss that is removed shall be difference between the acquisition cost with
deduction of recoverable amount less amortized cost, current fair value and any impairment loss on
that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the
financial asset is recovered, and it is objectively related to an event occurring after the impairment loss
was recognized, the initial impairment loss can be reversed and the reserved impairment loss on
available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on
available-for-trade debt instrument is recorded in the current profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot
be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by
delivery of such an unquoted equity instrument shall not be reversed.
(4) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under
a “pass-through” arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over
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the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent
liability is recognized. The extent of existence refers the level of risk by the financial asset changes the
enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a). the carrying
amount of the financial asset transferred; and (b) the sum of the consideration received from the
transfer and any cumulative gain or loss that had been recognized in other comprehensive income, is
recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the part
that is derecognized, based on the relative fair value of those parts. The difference between (a) the
carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for
the part derecognized and any cumulative gain or loss allocated to the part derecognized which has
been previously recognized in other comprehensive income, is recognized in profit or loss.
(5) Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or
loss, relevant transaction costs are immediately recognized in profit or loss for the current period, and
transaction costs relating to other financial liabilities are included in the initial recognition amounts.
1) Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the
initial recognition to be measured by the fair value follows the same criteria as the classification by
which financial assets held-for-trade and financial assets designed at the initial recognition to be
measured by the fair value and their changes are recorded in the current profit or loss.
For the financial liabilities measured by the fair value and changes recorded in the profit or loss, fair
values are adopted for subsequent measurement. All the gains or losses on the change of fair value
and the expenses on dividends or interests related to these financial liabilities are recognized in profit
or loss for the current period.
2) Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price in an
active market and their fair value cannot be measured reliably, is subsequently measured by cost Other
financial liabilities are subsequently measured at amortized cost using the effective interest method.
Gains or losses arising from derecognition or amortization are recognized in profit or loss for the
current period.
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3) Financial guarantee contracts
For financial guarantee contracts that are not designated as at fair value through profit or loss, or loan
commitments not designated as at fair value through profit or loss but to offer at the interest rate lower
than market level they are, after initial recognition, subsequently measured at the higher of: (i) the
amount determined according to the principles of Accounting Standards for Business Enterprises No.
13 - Contingencies, and (ii) the amount initially recognized less the accumulated amortization
determined according to the principles of Accounting Standards for Business Enterprises No. 14 -
Revenue.
(6) Derecognition
The Group derecognizes a financial liability (or part of it) when the underlying present obligation (or part
of it) is discharged or cancelled or has expired. An agreement between the Group (an existing borrower)
and existing lender to replace original financial liability with a new financial liability with substantially
different terms is accounted for as an extinguishment of the original financial liability and the
recognition of a new liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference between
the carrying amount of the financial liability (or part of the financial liability) derecognized the
consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in
profit or loss.
(8) Offsetting financial assets and financial liabilities
When the group has a legal right that is currently enforceable to set off the recognized financial assets
and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and
settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and
the net amount is presented in the balance sheet. Except for the above circumstances, financial assets
and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
(9) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. The transaction expenses from issuing of equity instruments by the merge
party during the business combination deduct the consideration income from the equity instrument, and
then retained earning if insufficient.The consideration received from issuing equity instruments, net of
transaction costs, are added to [shareholders’ / owners’] equity.
All types of distribution (excluding stock dividends) made by the Group to holders of equity instruments
are deducted from [shareholders’ /owners’] equity. The Group does not recognize any changes in the
fair value of equity instruments.
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4.10 Account receivables
The account receivable by the Group includes account receivables, and other receivables.
(1) Criteria for recognition of bad debts:
The Group carries out an inspection on the balance sheet date. Where there is any objective evidence
proving that the receivables have been impaired, an impairment provision shall be made:
1) A serious financial difficulty occurs to the issuer or debtor;
2) The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the
payment of interests or the principal, etc.;
3) The debtor will probably become bankrupt or carry out other financial reorganizations;
4) Other objective evidences showing the impairment of the receivables.
(2) Method for bad debts provision
1) Provisions of bad debts in account receivables that is individually significant.
The Group treats account receivables over RMB 5,000,000.00 (including 5,000,000.00) as
individually significant item.
For an account receivable that is individually significant, the asset is individually assessed for
impairment, and the amount of impairment is recognized in profit or loss if there is objective evidence of
impairment is included in a group of financial assets with similar credit risk characteristics and
collectively assessed for impairment. An account receivable for which an impairment loss is individually
recognized is not included in a group of account receivables with similar credit risk characteristics and
collectively assessed for impairment.
2) Provisions of bad debts that is individually insignificant.
For the account receivables not individually significant, the Group assesses the account receivables
individually for impairment when are of following characteristics: if there is objective evidence indicating
the impairment, the impairment loss is recognized at the difference between the present value of future
cash flow less the carrying amount, and provision is made accordingly.
4.11 Inventories
(1) Classification of inventory
Inventory was classified according to real estate development and non-development of products. The
real estate development products are the real estate developing products, real estate developed
products and real estate which are going to be developed. The non-real estate development products
include raw materials, finished products and stocks, low-value consumable products and construction
in progress.
(2) Valuation method of inventories upon delivery
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Inventories are initially carried at the actual cost. Cost of inventories comprises all costs of purchase,
costs of conversion and other costs. The actual cost of inventories transferred out is assigned by using
weighted average method, and development products by specific identification method.
(3) Basis for determining net realizable value of inventories and provision methods for decline in value
of inventories
Net realizable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable
value is determined on the basis of clear evidence obtained, and takes into consideration the purpose
of holding inventories and effect of post balance sheet events.
At the balance sheet date, inventories are measured at the lower of the cost and net realizable value. If
the net realizable value is below the cost of inventories, a provision for decline in value of inventories is
made. The provision for inventories decline in value is determined by the difference of the cost of
individual item less its realizable value.
After the provision for decline in value of inventories is made, if the circumstances that previously
caused inventories to be written down below cost no longer exist so that the net realizable value of
inventories is higher than their cost, the original provision for decline in value is reversed and the
reversal is included in profit or loss for the period.
(4) Inventory count system is based on the perpetual stock system.
(5) Amortization method for low cost and short-lived consumable items and packaging materials.
Low cost and short-lived consumable items are amortized using immediate write-off method; packaging
materials are amortized using immediate write-off method。
(6) Cost of land constitutes land development costs for pure land development project;
Together with the overall development of the property, its cost is included in housing costs generally
based on the actual area.
(7)Public Facilities Fee: The cost is the actual construction cost incurred. If several estate projects
benefit from the same facility, 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 was
measured according to the allocation of the area covered.
(8)Utility reserve funds：Utility reserve funds were received by the Group and recorded in Long-term
payables. The funds were used to maintainence and renewal of communal facilities
(9)Quality Guarantees：Quality Guarantees was put into the account of real estate developing
according to the contract amount and also recorded in the accounts payable at the same time. The
actual payment incurs after the expiry of guarantee.
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4.12 Long-term equity investments
(1) Determination of Investment cost
For a business combination involving enterprises under common control, the initial investment cost of
the long-term equity investment shall be carrying value of the absorbing party’s share of the
shareholder’s of the party being absorbed at the date of combination.
For a business combination not involving enterprise under common control, the combination cost
including the sum of fair value, at the acquisition date, of the assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer. The intermediary expenses incurred by the
acquirer in respect of auditing, legal services, valuation and consultancy services etc and other
associated administrative expenses attributable to the business combination are recognized in profit or
loss when they are incurred.
The transaction cost for the equity securities or liability securities issued by the acquirer in the business
combination shall be recognized as initial amount of equity security or liability.
The equity investments other than the long-term equity through combination shall be initially measured
by cost. The cost shall be recognized to the difference in the way of acquisition of long-term equity
investment. Theses ways include the cash purchase price the Group actually paid, the fair value of
equity security issued by the Group, value specified in the investment contract or agreement, the fair
value or carrying value of the asset out in the transaction of non-monetary asset exchanges, and the
fair value of the long-term equity investment.
Expenses, taxes and other necessary expenditures directly attributable to the acquisition of long-term
equity investment are taken into investment cost.
(2) Subsequent Measurement
Cost method shall be adopted in a long-term equity investment where the investing enterprise does not
have common control or significant influence over the investee, the investment is not quoted in an
active market and its fair value cannot be measured reliably.
Where an investing enterprise can exercise common control or significant influence over the investee,
a long-term investment shall be accounted for using the equity method.
When an investing enterprise can no longer exercise joint control or common control nor significant
influence over the investee, and its fair value cannot be measured reliably, a long-term investment shall
be counted as financial asset ready-for trade.
A long-term equity investment where cost method is adopted in the Company’s financial statements
can exercise controls over the investee.
1) Cost method of accounting for long-term equity investments
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Under the cost method, a long-term equity investment is measured at initial investment cost. Except for
cash dividends or profits declared but not yet paid that are included in the price or consideration
actually paid upon acquisition of the long-term equity investment, investment income is recognized in
the period in accordance with the attributable share of cash dividends or profit distributions declared by
the investee.
2) Equity method of accounting for long-term equity investments
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s
interest in the fair values of the investee’s identifiable net assets at the time of acquisition, no
adjustment shall be made to the initial investment cost.
Where the initial investment cost of a long-term equity investment is less than the investing enterprise’s
interest in the fair values of investee’s identifiable net assets at the time of acquisition, the difference
shall be charged to profit or loss for the current period, and the cost of the long-term equity investment
shall adjusted accordingly.
Under the equity method, the Group recognizes its share of the net profit or loss of the investee for the
period as investment income or loss for the period. The Group recognizes it share of the investee’s net
profit or loss based on the fair value of the investee’s individual separately indentible assets, etc at the
acquisition date after making appropriate adjustments to confirm with the Group’s accounting policies
and accounting period. Unrealized profits or losses resulting from the Group’s transactions with its
associates and joint ventures are recognized as investment income or loss to the extent that those
attributable to the Group’s equity interest are eliminated. However, unrealized losses resulting from the
Group’s transactions with its investees on the transferred assets, in accordance with "Accounting
Standards for Enterprises No. 8 - Impairment of Assets", are not eliminated. Changes in owners’ equity
of the investee other than net profit or loss are correspondingly adjusted to the carrying amount of the
long-term equity investment, and recognized as other compressive income which is included in the
capital reserve.
When the investee is recognized net losses, reduce the carrying value of long-term equity investments
and long-term equity of net investment (in substance) in investee to zero. In addition, the Group has the
obligations on additional losses, then the expected obligation as estimated liabilities and included in the
current investment losses. Where the net profit from investee units, restoration confirm the amount of
revenue sharing after offset the amount of unrecognized loss sharing.
For long-term equity investments in associates and joint ventures which had been held by the Group
before its first time adoption of Accounting Standards for Business Enterprises, where the initial
investment cost of a long-term equity investment exceeds the Group’s interest in the investee’s net
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assets at the time of acquisition, the excess is amortized and is recognized in profit or loss on a straight
line basis over the original remaining life.
3) Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and
portion of net asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If
the capital reserve is not sufficient to absorb the difference, the excess are adjusted against returned
earnings.
4) Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control,
the difference in the net asset between the amount of disposed long-term investment and the amount
of the consideration paid or received is adjusted to the owner’s equity. If the disposal of long-term
investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies in
Note 4.4 applies.
On disposal of a long-term equity investment, the difference between the proceeds actually received
and receivable and the carrying amount is recognized in profit or loss for the period. For along-term
equity investment accounted for using the equity method, the amount included in the shareholders’
equity attributable to the percentage interest disposed is transferred to profit or loss for the period.
For any retained interest, it shall be subsequently measured according to the related accounting
policies in regard of long-term equity investments or financial assets as described above if its carrying
amount is recognized as long-term equity investments or other related financial assets. Retroactive
adjustment is made on the basis of relevant policies if the retained interests are settled from cost
method to equity method.
(3) Recognition of investee under common control or significant influence
Control is the power to govern the financial and operating policies of an enterprise so as to obtain
benefits from its operating activities.
Common control is the contractually agreed sharing of control over an economic activity, and exists
only when the strategic financial and operating decisions relating to the activity require the unanimous
consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of the
investee but is not control or joint control over those policies.
When determining whether an investing enterprise is able to exercise control or significant influence
over an investee, the effect of potential voting rights of the investee held be the investing enterprise or
other parties that are currently exercisable or convertible shall be considered.
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(4) Impairment testing methods and recognition of impairment provision
The company assesses the long-term equity investment at the balance sheet date whether there is any
indication of impairment. If any indication exists that an asset may be impaired, the enterprise shall
estimate its recoverable value of the asset. If the recoverable value of the asset is less than its carrying
amount, a provision for impairment loss of the asset is recognized accordingly.
Once an impairment loss is recognized, it shall not be reversed in a subsequent period.
4.13 Investment properties
Investment property is property held to earn rental or for capital appreciation or both. It includes a land
use right that is leased out, a land use right held for transfer upon capital appreciation, and a building
that is leased out. Besides, the Group has buildings empty for operating lease. If there is a written
decision from the Board (or similar organization) with clear indication for operating lease and intension
that no change shall be made in the near future, the buildings shall be presented as investment
properties.
An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that economic
benefits associated with an investment property will flow to the Group and the subsequent expenditures
can be measured reliably. Other subsequent expenditures are recognized in profit or loss in the period
in which they are incurred.
The Group uses the cost method for subsequent measurement of investment property, and adopts a
depreciation or amortization policy for the investment property which consistent with that for building or
land use rights.
Where self-occupied property or inventory converts into investment property, or investment property
converts into self-occupied property, the carrying amount before the change shall be accounted as the
value after conversion.
When an investment property changes into self-occupied property, it should be converted into fixed
asset or intangible asset on the date of conversion. When the purpose of a self-occupied property
changes into rental earning or capital increase, fixed asset or intangible asset should be converted into
an investment property from the date of conversion. Where the cost model is used in the measurement
of investment property during the conversion, the carrying amount before the conversion is accounted
as the value after conversion. Where the investment property is measured by the fair value after
conversion, the fair value at the conversion date is adopted as value after conversion.
Where an investment property is disposed or no longer in use permanently and no economic benefits
shall be obtained from the disposal, derecognized the investment property. The income from sale,
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transfer or disposal of the investment property is recorded in the profit or loss after deduction of its
carrying amount and related tax.
4.14 Fixed assets
(1) The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities,
rendering labor service, renting or business management and their useful life is in excess of one fiscal
year.
(2) The method for depreciation
Fixed assets are stated at cost and consider the impact of expected costs of abandoning the initial
measurement. From the following month of state of intended use, depreciation method of the
straight-line method is used for different categories of fixed assets to take depreciation. The recognition
of the classification, useful life and estimated residual rate are as follows:
Estimated residual value
Category Expected useful life Depreciation（%）
（%）
Building & construction
30 5 3.17
Machines & equipments 7 5 13.57
Vehicles 6 5 15.83
Electronic appliances 5 5 19.00
Expected net residual value of fixed assets is the balance of the Group currently obtained from the
disposal of the asset less the estimated costs of disposal amount, assuming the asset is out of useful
life and state the expected service life in the end.
(3) Measurement and recognition 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.
(4) Others
A fixed asset is recognized only when the economic benefits associated with the asset will probably
flow to the Company and the cost of the asset can be measured reliably. Subsequent expenditure
incurred for a fixed asset that meet the recognition criteria shall be included in the cost of the fixed
asset, and the carrying amount of the component of the fixed asset that is replaced shall be
derecognized. Otherwise, such expenditure shall be recognized in profit or loss in the period in which
they are incurred.
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The revenue from selling or transferring, or disposing a fixed asset is booked into profit and loss after
deduction of carrying value and related tax.
The Group conducts a review of useful life, expected net realizable value and depreciation methods of
the fixed asset at least on an annual base. Any change is regarded as change in accounting estimates.
4.15 Construction in progress
Construction in progress is measured at its actual cost. The actual costs include various construction
expenditures during the construction perio and other relevant costs. Construction in progress is
transferred to a fixed asset when it is ready for intended use.
On the balance sheet day, estimation should be made for the impairment of the long-term suspension
project that will not be re-started in three years. The impairment estimated is book value minus the
recoverable amount. Once provision for impairment, it could not be reversed in later accounting period.
4.16 Borrowing costs
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary
costs incurred in connection with the arrangement of borrowings, and exchange differences arising
from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalized. The amounts of other borrowing costs incurred are recognized as an
expense in the period in which they are incurred. Qualifying assets are asset (fixed assets, investment
property and inventories, etc.) that necessarily take a substantial period of time for acquisition,
construction or production to get ready for their intended use or sale.
Where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual
interest expense incurred on that borrowing for the period less any bank interest earned from
depositing the borrowed funds before being used on the asset or any investment income on the
temporary investment of those funds.
Where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such
borrowings is determined by applying a weighted average interest rate to the weighted average of the
excess amounts of accumulated expenditure on the asset over and above the amounts of
specific-purpose borrowings
During the capitalization period, exchange differences related to a specific-purpose borrowing
denominating in foreign currency are all capitalized. Exchange differences in connection with
general-purpose borrowings are recognized in profit or loss in the period in which they are incurred.
Assets qualified for capitalization are the fixed assets, investment properties or inventories which need
a long time of construction or production activities before ready for intended used or sale.
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Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or
production of a qualifying asset is interrupted by activities other than those necessary to prepare the
asset for its intended use or sale, when the interruption is for a continuous period of more than 3
months. Borrowing costs incurred during these periods recognized as an expense for the current period
until the acquisition, construction or production is resumed.
4.17 Intangible assets
(1) Recognition and calculation of intangible asset
The term “intangible asset” refers to the identifiable non-monetary assets without physical shape,
possessed or controlled by enterprises.
The intangible assets are initially measured by its cost. Expenses related to intangible assets, if the
economic benefits related to intangible assets are likely to flow into the enterprise and the cost of
intangible assets can be measured reliably, shall be recorded as cost of intangible assets. The
expenses other than this shall be booked in the profit or loss when they occur.
Land use rights that are purchased by the Group are accounted for as intangible assets. Buildings,
such as plants that are developed and constructed by the Group, and relevant land use rights and
buildings, are accounted for as intangible assets and fixed assets, respectively. Payments for the land
and buildings purchased are allocated between the land use rights and the buildings; if they cannot be
reasonably allocated, all of the land use rights and buildings are accounted for as fixed assets.
When an intangible asset with a definite useful life is available for use, its original cost less net residual
value and any accumulate impairment losses is amortized over its estimated useful life using the
straight-line method. An intangible asset with an indefinite useful life is not amortized.
For an intangible asset with a definite useful life, the Group reviews the useful life and amortization
method at the end of the period, and makes adjustment when necessary.. An additional review is also
carried out for useful life of the intangible assets with indefinite useful life. If there is evidence showing
the foreseeable limit period of economic benefits generated to the enterprise by the intangible assets,
then estimate its useful life and amortize according to the policy of intangible assets with definite useful
life.
(2) Research and development expenditure
The Group classifies the expenditure on an internal research and development project into expenditure
on the research phase and expenditure on the development phase.
Expenditure on the research phase of an internal research is recognized in profit & loss in the period in
which it is incurred.
Expenditure during the development phase that meets all of the following conditions at the same time is
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recognized as intangible asset. Expenditure during development phase that does not meet the
following conditions is recognized in profit or loss for the period.
1) it is technical feasible to complete the intangible asset so that it will be available for use or sale;
2) the Group has the intention to complete the intangible asset and use or sell it;
3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits including the evidence of the existence of a market for the output of the intangible asset or the
intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset;
4) the availability of adequate technical, financial and other resources to complete the development
and the ability to use or sell the intangible asset; and
5) the expenditure attributable to the intangible asset during its development phase can be reliably
measured.
If the expenditures cannot be distinguished between the research phase and development phase, the
Group recognizes all of them in profit or loss for the period.
(3) Methods of impairment assessment and determining the provision for impairment losses of
intangible assets
On balance sheet day, make impairment test for 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 period.
4.18 Long-term deferred assets
Long-term deferred assets represent expenses incurred that should be beared and amortized over the
current and subsequent period (together of more than one year). Long-term deferred assets are
amortized by using straight line method.
4.19 Accrued liabilities
Accrued liabilities (or Provisions) are recognized when following obligations related to a contingency
are satisfied simultaneously. They are (a) such obligation is the present obligation of the Group, (b)it is
probable that an outflow of economic benefits will be required to settle the obligation, and (c) the
amount of the obligation can be measured reliably.
The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date, taking into account factors pertaining to a contingency
such as risks, uncertainties and time value of money.
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Where all or some of the expenditure required to settle a provision is expected to be reimbursed by a
third party, the reimbursement is recognized as a separate asset only when it is virtually certain that
reimbursement will be received, and the amount of reimbursement recognized does not exceed the
carrying amount of the provision.
(1) Onerous contracts
An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be received under it. The exceeding part over the
assets in the contract shall be recognized as a provision when an executor contract becomes an
onerous contract and the obligation arising under the onerous contract satisfies the requirements of
provisions.
(2) Restructuring Obligation
The amount of a restructuring provision shall be recognized by the total direct expenditures arising from
the restructuring when the enterprise has a detailed, formal plan for the restructuring, and a
public announcement of the plan has been made for restructuring and above requirements for the
provision mentioned above are satisfied.
[For the restructuring obligation carried for the portion of business for sale, the obligation related to the
restructuring can only be recognized when the Group has committed for the sales of portion of the
business (signing the selling agreement with termination)]
4.20 Revenue
(1) Revenue from sales of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the
Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold; the associated costs incurred or to be incurred can
be measured reliably.
According to the principles above, the Group 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) Revenue from rendering service
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When the outcome of a transaction involving the rendering of services can be estimated reliably at the
balance sheet date, revenue associated with the transaction is recognized using the percentage of
completion method, or otherwise, the revenue is recognized to the extent of costs incurred that are
expected to be recoverable. The stage of completion of a transaction for rendering services is
determined based on [survey of work performed / services performed to the date of as a percentage of
total services to be performed / the proportion that costs incurred to date bear to the estimated total
costs of the transaction]
The outcome of a transaction involving rendering of services can be estimated reliably when all of the
following conditions are satisfied:
1) the amount of revenue can be measured reliably;
2) it is probable that the associated economic benefits will flow to the Group;
3) the stage of completion of the transaction can be measured reliably;
4) the costs incurred and to be incurred for the transaction can be measured reliably.
If the outcome of a transaction involving rendering of services cannot be estimated reliably, the revenue
is recognized by the cost incurred and estimated compensation, and the actual cost is booked into
profit and loss. No revenue is recognized if the cost incurred cannot be recovered.
For contract or agreement entered between the Group and other enterprises with sales of goods and
rendering services, if part of goods selling and the part of rendering service can be separated and
measured individually, they are settled separately. If the part of goods selling and the part of rendering
service cannot be separated or they can be separated but cannot be measured individually, the parts in
the contract shall be treated as goods of selling.
(3) Revenue from construction contracts
Where the outcome of a construction contract can be estimated reliably, contract revenue and costs
are recognized using the percentage of completion method at the balance sheet date. The stage of
completion of a contract is determined using the proportion that actual contract costs incurred to date
bears to the estimated total contract costs.
The outcome of a construct contract can be measured reliably when the following conditions are met:
(1) the total revenue of the contract can be measured reliably;
(2) it is probable that the associated economic benefits will flow to the enterprise;
(3) the actual cost of the contract incurred can be determined and measured reliably;
(4) the stage of completion of the contract and the costs to be incurred associated with the completion
of the contract can be measured reliably.
Where the outcome of a construction contract cannot be estimated reliably, (1) if contract costs are
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expected to be recoverable, contract revenue is recognized to the extent of contract costs that are
expected to be recoverable; and contract costs are recognized as expenses in the period in which they
are incurred; (2) if contract costs are not expected to be recoverable, they are recognized as expenses
immediately when incurred and contract revenue is not recognized. When the uncertainties that
prevented the outcome of the construction contract from being estimated reliably no longer exist,
revenue and expenses associated with the construction contract are recognized using the percentage
of completion method.
If the estimated total contract costs exceed total contract revenue, the expected loss is recognized
immediately as an expense for the period.
4.21 Government Grants
Government grants are transfer of monetary assets and non-monetary assets from the government to
the Group at no consideration, excluding the capital invested by the government as equity owner.
Government grant can be classified as grant related to the assets and grants related to the income.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount
received or receivable. If a government grant is in the form of a non-monetary asset, it is measured at
fair value. If the fair value cannot be reliably determined, it is measured at a nominal amount. A
government grant measured at a nominal amount is recognized immediately in profit or loss for the
period.
A government grant related to an asset is recognized as deferred income, and evenly amortized to
profit or loss over the useful life of the related asset. For a government grant related to income, if the
grant is a compensation for related expenses or losses to be incurred in subsequent period, the grant is
recognized as deferred income, and recognized in profit or loss over the periods in which the related
costs are recognized. If the grant is a compensation for related expenses or losses already incurred,
the grant is recognized immediately in profit or loss for the period.
For repayment of a government grant already recognized, if there is a related deferred income, the
repayment is offset against the carrying amount of the deferred income, and any excess is recognized
in profit or loss for the period. If there is no related deferred income, the repayment is recognized
immediately in profit or loss for the period.
4.22 Deferred income tax assets and deferred income tax liabilities
（1）Income tax of the current period
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are
expected to apply to the period when the asset is realized or the liability is settled, according to the
requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects
84
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
the tax consequences that would follow from the manner in which the Group expects at the balance
sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, current income tax liabilities or assets for the current and prior periods, are
measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
The calculation for income tax expenses in the current period is based on the taxable income according
to the related tax laws after adjustment to the accounting profit reporting period.
(2) Deferred income tax assets and liabilities
For temporary differences between the carrying amount of certain assets or liabilities and their tax base,
or between the nil carrying amount of those items that are not recognized as assets or liabilities and
their tax base that can be determined according to tax laws, deferred tax assets and liabilities are
recognized using the balance sheet liability method.
For temporary differences associated with the initial recognition of goodwill and the initial recognition of
an asset or liability arising from a transaction (not a business combination) that affects neither the
accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax
asset or liability is recognized.
For taxable temporary differences associated with investments in subsidiaries and associates, and
interests in joint ventures, no deferred income tax liability related is recognized except where the Group
is able to control the timing of reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
All deferred income tax liabilities arising from taxable temporary differences except the ones mentioned
above are recognized.
For temporary deductible differences associated with the initial recognition of an asset or liability arising
from a transaction (not a business combination) that affects neither the accounting profit nor taxable
profits (or deductible losses) at the time of transaction, no deferred tax asset is recognized.
For taxable temporary deductible differences associated with investments in subsidiaries and
associates, and interests in joint ventures, no deferred income tax asset related is recognized if it is
impossible to reversal the temporary difference in the foreseeable future, or it is not probable to obtain
taxable income which can be used for the deduction of the temporary difference in the future.
Except mentioned above, the Group recognizes other deferred income tax assets that can deduct
temporary differences to the extent that it is probable that taxable profits will be available against which
the deductible temporary differences can be utilized.
For the deductible losses and tax credit that can be carried forward, deferred tax assets for deductible
temporary differences are recognized to the extent that it is probable that taxable profits will be
85
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
available against which the deductible temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates according to
tax laws, that are expected to apply in the period in which the asset is realized or the liability is settled.
At the balance sheet date, the Group reviews the carrying amount of deferred tax assets. If it is no
longer probable that sufficient taxable profit will be available in future periods to allow the benefits of
the deferred tax assets to be used, the Group reduces the carrying amount of deferred tax assets. The
amount of such reduction is reversed when it becomes probable that sufficient taxable profit will be
available
(3) Income Tax Expenses
Income tax expenses consist of current income tax and deferred income tax.
The expenses from income tax and deferred income tax, as well as the revenue, shall be recorded into
profit or loss in current accounting period, except expense for income tax of the current period and
deferred income tax that booked into other income or equity and adjusted carrying value of deferred
income tax goodwill arose from business combination.
(4) Income Tax offset
When we have the legal right, and have intended to, to make settlement with net amount, or through
the asset acquisition and liability fulfillment simultaneously, the Group shall present the net value from
the offset between current income tax asset and current income tax liability in the financial statement.
When the Group has the legal right to make a settlement with the current income tax asset and current
income tax liability, and the deferred income tax asset and deferred income tax liability are related to
the same taxable subject under the same tax payer, or related to different taxable subject, but the
intension of net value settlement in regard of the current income tax asset and current income tax
liability, the Group shall present net value after the offset of deferred income tax asset and deferred
income tax liability.
4.23 Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of
an asset. Title may or may not eventually be transferred. An operating lease is a lease other than a
finance lease.
(1) The Group as Lessee under Operating Lease
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the
lease term, and either included in the cost of the related asset or charged to profit or loss for the current
period. The contingent rents shall be recorded in the profit or loss of the period in which they actually
arise.
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(2) The Group as Leaser under Operating Lease
Lease income from operating leases shall be recognized by the leaser in profit or loss on a straight-line
basis over the lease term. Initial direct cost of significance in amount shall be capitalized when incurred.
If another basis is more systematic and rational, that basis may be used. Contingent rents are credited
to profit or loss in the period in which they actually arise.
(3) The Group as Lessee under Financing Lease
For an asset that is held under a finance lease, at the lease commencement, the leased asset is
recorded at the lower of its fair value at the lease commencement and the present value of the
minimum lease payments, and the minimum lease payment is recorded as the carrying amount of the
long-term payables; the difference between the recorded amount of the leased asset and the recorded
amount of the payable is accounted for as unrecognized finance charge, Initial direct costs incurred by
the lessee during the process of negotiating and securing the lease agreement shall be added to the
amount recognized for the leased asset.
The net amount of minimum lease payment deducted by the unrecognized finance shall be separated
into long-term liabilities and long-term liability within one year for presentation.
Unrecognized finance charge shall be computed by the effective interest method during the lease term.
Contingent rent shall be booked into profit or loss when actually incurred.
(4) In the case of the lesser of a financing lease
For an asset that is leased out under a finance lease, the aggregate of the minimum lease receipts at
the inception of the lease and the initial direct costs is recorded as a finance lease receivable, and
unguaranteed residual value is recorded at the same time; the difference between the aggregate of the
minimum lease receipt, initial direct costs, and unguaranteed residual value, and the aggregate of their
present values, is recognized as unearned finance income, which is amortized using the effective
interest rate method over each period during the lease term.
Finance lease receivable less unearned finance income shall be separated into long-term liabilities and
long-term liability within one year for presentation.
Unearned finance income shall be computed by the effective interest method during the lease term.
Contingent rent shall be credited into profit or loss in which actually incurred.
4.24 Assets ready-for-sale
The Group has made decision on disposal of some non-current assets, and signed irrecoverable
transferring agreements with buyers. The transaction is probably to be completed with one year. If so,
the non-current asset shall be counted as an asset ready-for-sale, not depreciated or amortized, and
shall be measured by the lower of carrying amount and faire value less net value of disposal expenses.
87
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Non-current assets ready-for-sale includes individual asset and disposal group. If disposal group is an
asset group, and has allocated goodwill acquired during the combination according to the Accounting
Standard for Business Enterprises No. 8 - Impairment, or. the disposal group is an operation in the
asset group, the disposal group includes goodwill in the business combination.
Where an asset or a disposal group is classified as held-for-trade, but cannot satisfy the condition of
non-current asset ready-for-trade, the Group shall derecognize it as held-for-trade, and measure it by
the lower of the followings:
(1) the carrying amount of the asset or disposal group before it is classified as held-for-trade, the
value after the adjustment of depreciation, amortization or impairment recognized under the
assumption that it is not classified as held-for-trade;
(2) the recoverable value on the date when decided not to trade any more.
4.25 Changes in major accounting policies and accounting estimates
(1) Changes of accounting estimates
There were no changes of accounting policies that affected the Company during the period.
(2)Changes of accounting estimates
There were no changes of accounting eatimation that affected the Company during the period.
4.26 Correction of previous accounting errors
There was no previous accounting errors correction that affected the Company during the period.
4.27 Other major account policies, accounting estimates and preparation of financial
statements
Employee Benefits
During the accounting period of an employee’ providing services to the Group, the Group recognizes
the compensation payable as liabilities.
The Group participates in the employees social security system set up by government agencies,
including pensions, medical insurance, housing fund and other social security system, and the
corresponding expenditures are included in the cost of related assets or the profit or loss.
When an enterprise terminates the employment relationship with employees before the end of the
employment contracts or provides compensation as an offer to encourage employees to accept
voluntary redundancy, a provision shall be recognized for the compensation arising from termination of
employment relationship with employees, with a corresponding charge to the profit or loss for the
current period. The enterprise cannot unilaterally withdraw from the termination plan or the redundancy
offer.
The early retirement plan adopts the same principles of termination benefits. Salaries and social
insurance (from the date of ceasing services to the date of normal retirement) are paid by the Group,
subject to the conditions to be recognized in profit or loss (termination benefits).
88
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
5. Principal Taxes Applied
Taxes and their rates
Category Taxable basis Tax rate
Value added tax (“VAT”) Goods sales income, taxi operating income* 17% & 3%
（Proceeds from sales of properties, leasing income,
Business tax property management income ）， Construction, （5%）、3%
installation income
Construction tax Turnover tax 7%*
Income tax Income tax payable** 25% & 16.5%*
Education surcharge(Local Education
Turnover tax 5%
surcharge)
Progressive rates ranging
Land appreciation tax Sales revenue of properties from 30%-60%
* For Shenzhen City Car Rental Ltd. (one of Subsidiaries of the Group), the original business tax rate is
5%. According to the relevant provisions of the Ministry of Finance, State Administration (Cai Shui
[2012] No. 71) for transportation and parts of the modern service industry in Beijing and other provinces
and cities to carry out the business tax levy VAT pilot, the value-added tax and the applicable tax rate of
3% has been applied in the Company since November 1, 2012.
**The rate of domestic enterprises is 25%, and the rate of HK enterprises is 16.5%.
89
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
6. Business Combination & Consolidated Financial Statements
6.1 Information of subsidiaries
(1) Subsidiaries established or acquired through investment Unit: Yuan
Actual capital Balance of
Reg. captl contribution at other items
Reg. (in ten the end of the that in
Name of the subsidiary Types Biz nature Biz scope
place thousand period(in ten substance
Yuan) thousand constitutes net
Yuan) investment
Shenzhen Petrel Hotel Co. Ltd. Wholly-owned subsidiary shenzhen Services 3,000 Hotel 3,000 --
Property
Shenzhen City Property Management Ltd. Wholly-owned subsidiary shenzhen Services 725 725 --
management
Fitting-out
contracting
Shenzhen Zhen Tung Engineering Ltd. Wholly-owned subsidiary shenzhen Services 1,000 1,000 --
and
maintenance
Construction
Shenzhen City We Gen Construction Management Ltd. Wholly-owned subsidiary shenzhen Services 800 project 800 --
management
Shenzhen City Car Rental Ltd. Wholly-owned subsidiary shenzhen Services 1,029 Car rental 1,029 --
Develop and
Shenzhen Shenfang Car Park Ltd. Wholly-owned subsidiary shenzhen Services 4,250 operate car 4,250 --
park
Investment
Shenzhen City Shenfang Investment Ltd. Wholly-owned subsidiary shenzhen Investment 1,000 and 1,000 --
management
Trading of
Commecial
Shenzhen City Shenfang Free Trade Trading Ltd. Wholly-owned subsidiary shenzhen 500 Import and 500 --
trade
Export
90
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Actual capital Balance of
Reg. captl contribution at other items
Reg. (in ten the end of the that in
Name of the subsidiary Types Biz nature Biz scope
place thousand period(in ten substance
Yuan) thousand constitutes net
Yuan) investment
Property
Shenzhen City SPG Long Gang Development Ltd. Wholly-owned subsidiary shenzhen Real estate 3,000 3,000 --
development
Shenzhen Special Economic Zone Real Estate (Group) Guangzhou Property and Estate Property
Wholly-owned subsidiary GuangZhou Real estate 2,000 2,000 --
Co., Ltd. development
Operating of
Beijing fresh peak property development management limited company Wholly-owned subsidiary BeiJing Real estate US$1,000 7,671 --
Real estate
Property
Beijing SPG Property Management Limited Wholly-owned subsidiary BeiJing Services 50 50 --
management
Elevator sales
Shenzhen ShenWu elebator Co.,Ltd Wholly-owned subsidiary shenzhen Services 350 350 --
and service
Installation
of mechanical
Shenzhen Lain Hua Industry and Trading Co. Ltd. Wholly-owned subsidiary shenzhen Services 1,000 and electrical 1,000 --
equipment
Investment
Investment and
Fresh Peak Holding Ltd. Wholly-owned subsidiary HongKong HKD100 and 100.47 3,202
management
management
Investment Investment
Wellam Ltd. Wholly-owned subsidiary HongKong HKD1 1 --
holding holding
Property
Shantou SEZ Wellam Fty Bldg., Dev. Co. Wholly-owned subsidiary ShanTou Real estate USD1500 9,122.61 --
development
Subsidiary of holding Property
Great Wall Estate Co., Inc USA Real estate USD50 205.11 10,138
company development
Investment and Investment
Fresh Peak Enterprise Ltd. Wholly-owned subsidiary HongKong HKD100 50.23 56,498
management and
91
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Actual capital Balance of
Reg. captl contribution at other items
Reg. (in ten the end of the that in
Name of the subsidiary Types Biz nature Biz scope
place thousand period(in ten substance
Yuan) thousand constitutes net
Yuan) investment
management
Subsidiary of holding Properties
Fresh Peak Investment Ltd. HongKong Investment HKD100 100.47 --
company investment
Investment
Investment and
Openice Ltd. Wholly-owned subsidiary HongKong HKD100 and 100.47 --
management
management
Subsidiary of holding Properties
Barenie Co. Ltd. HongKong Investment HKD1 1 --
company investment
Investment
Keyear Development Ltd. Wholly-owned subsidiary HongKong Investment HKD100 100.47 --
holding
Property
Guangzhou Huangpu Xizun real estate limited company Wholly-owned subsidiary GuangZhou Real estate HKD3,980 2,845.70 --
development
Property
Fresh Peak Real Estate Dev. Construction (Wuhan) Co. Ltd.*① Wholly-owned subsidiary WuHan Real estate USD400 2,292 --
development
Commecial Commercial
Shenzhen Shenfang Department Store Co. Ltd.*② Wholly-owned subsidiary shenzhen 1,000 1,000 --
trade goods supplier
Information
Shenzhen CyberPort Co., Ltd *③ Wholly-owned subsidiary shenzhen Consultant 2,000 Technology 1,400 --
Advisory
Property
Shenzhen City SPG Bao An Development Ltd.*④ Wholly-owned subsidiary shenzhen Real estate 2,000 2,000 --
development
Construction
Integrated
Shenzhen Real Estate Consolidated Service Co., Ltd *⑤ Wholly-owned subsidiary shenzhen 1,371 material, 596 --
Services consume goods
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SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Actual capital Balance of
Reg. captl contribution at other items
Reg. (in ten the end of the that in
Name of the subsidiary Types Biz nature Biz scope
place thousand period(in ten substance
Yuan) thousand constitutes net
Yuan) investment
Investment in
Shenzhen Shen Fang Industrial Development Co., Ltd.*⑥ Wholly-owned subsidiary shenzhen Investment 300 industrial 450 --
projects
Construction
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd.*⑦ Wholly-owned subsidiary shenzhen Services 221 818 --
and decoration
Property
Bekaton Property Limited *⑧ Subsidiary of holding company Australia Real estate USD20 Development 91 1,256
Subsidiary of holding Property
Canada Great Wall ( vancouver) *⑧ Canada Real estate CAD 0.1 0.45 8,904
company Development
Property
construction
Commecial and trading
Paklid Limited *⑧ Wholly-owned subsidiary HongKong HKD50 of 20 1,107
trade
construction
materials
Commecial Construction
Shenzhen City Shenfang Construction and Decoration Materials Ltd *⑨ Wholly-owned subsidiary shenzhen 268 268 --
trade materials
Subsidiary of holding Integrated Tourism
Shenzhen ZhongGang Haiyan Enterprise Ltd.*⑩ shenzhen 1,900 1,294 --
company Services Restaurant
Domestic
Commecial
Shenzhen Xing Dongfang Store Ltd.* 11 Wholly-owned subsidiary shenzhen 2,000 commercial 1,850 --
trade goods supply
FengKai in
Guangdong Province Fengkai Lian Feng Cement Manufacturing Co., Ltd *12 Subsidiary of holding company Manufacture USD800 Manufacturin 12,126 --
GuangDong
93
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Actual capital Balance of
Reg. captl contribution at other items
Reg. (in ten the end of the that in
Name of the subsidiary Types Biz nature Biz scope
place thousand period(in ten substance
Yuan) thousand constitutes net
Yuan) investment
Province g and trading
in cement
products
94
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
（Continued）
Amount of minority interest used to The excess of the minority shareholders’ share of the opening
（%）of Voting Consolidated
Full name of subsidiary Minority interest absorb profits or losses attributable to balance of owners’ equity of the subsidiary is allocated against Remark
share （%） or not
minority interests owners’ equity of parent company
Shenzhen Petrel Hotel Co. Ltd. 100 100 Yes -- -- --
Shenzhen City Property Management Ltd. 100 100 Yes -- -- --
Shenzhen Zhen Tung Engineering Ltd. 100 100 Yes -- -- --
Shenzhen City We Gen Construction
100 100 Yes -- -- --
Management Ltd.
Shenzhen City Car Rental Ltd. 100 100 Yes -- -- --
Shenzhen Shenfang Car Park Ltd. 100 100 Yes -- -- --
Shenzhen City Shenfang Investment Ltd. 100 100 Yes -- -- --
Shenzhen City Shenfang Free Trade
100 100 Yes -- -- --
Trading Ltd.
Shenzhen City SPG Long Gang
100 100 Yes -- -- --
Development Ltd.
Shenzhen Special Economic Zone Real
Estate (Group) Guangzhou Property and 100 100 Yes -- -- --
Estate Co., Ltd.
Beijing fresh peak property development
100 100 Yes -- -- --
management limited company
Beijing SPG Property Management Limited 100 100 Yes -- -- --
Shenzhen ShenWu elebator Co.,Ltd 100 100 Yes -- -- --
95
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Amount of minority interest used to The excess of the minority shareholders’ share of the opening
（%）of Voting Consolidated
Full name of subsidiary Minority interest absorb profits or losses attributable to balance of owners’ equity of the subsidiary is allocated against Remark
share （%） or not
minority interests owners’ equity of parent company
Shenzhen Lain Hua Industry and Trading
100 100 Yes -- -- --
Co. Ltd.
Fresh Peak Holding Ltd. 100 100 Yes -- -- --
Wellam Ltd. 100 100 Yes -- -- --
Shantou SEZ Wellam Fty Bldg., Dev. Co. 100 100 Yes -- -- --
Great Wall Estate Co., Inc 70 70 Yes -21,676,670.68 50,787.86
Fresh Peak Holdings Ltd. 100 100 Yes -- --
Fresh Peak Investment Ltd. 55 55 Yes -104,550,311.12 -6,794.55
Openice Ltd. 100 100 Yes -- --
Barenie Co. Ltd. 80 80 Yes -2,037,619.15 -3,687.21
Keyear Development Ltd. 100 100 Yes -- -- --
Guangzhou Huangpu Xizun real estate
100 100 Yes -- -- --
limited company
Fresh Peak Real Estate Dev. Construction
55 55 Yes -- - --
(Wuhan) Co. Ltd.*①
Shenzhen Shenfang Department Store Co.
100 100 No -- -- --
Ltd.*②
Shenzhen CyberPort Co., Ltd *③ 70 70 No -- -- --
Shenzhen City SPG Bao An Development
100 100 No -- -- --
Ltd.*④
Shenzhen Real Estate Consolidated 100 100 No -- -- --
96
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Amount of minority interest used to The excess of the minority shareholders’ share of the opening
（%）of Voting Consolidated
Full name of subsidiary Minority interest absorb profits or losses attributable to balance of owners’ equity of the subsidiary is allocated against Remark
share （%） or not
minority interests owners’ equity of parent company
Service Co., Ltd *⑤
Shenzhen Shen Fang Industrial
100 100 No -- -- --
Development Co., Ltd.*⑥
Shenzhen Tefa Real Estate Consolidated
100 100 No -- -- --
Service Co., Ltd.*⑦
Bekaton Property Limited *⑧ 60 60 No -- -- --
Canada Great Wall (Vancouver) *⑧ 75 75 No -- -- --
Paklid Limited *⑧ 100 100 No -- -- --
Shenzhen City Shenfang Construction and
100 100 No -- -- --
Decoration Materials Ltd *⑨
Shenzhen ZhongGang Haiyan Enterprise
68 68 No -- -- --
Ltd.*⑩
Shenzhen Xing Dongfang Store Ltd.* 11 100 100 No -- -- --
Guangdong Province Fengkai Lain Feng
90 90 No -- -- --
Cement Manufacturing Co., Ltd *12
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SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Other notes:
*① Fresh Peak Real Estate Dev. Construction (Wuhan) Co. Ltd
The Company holds 100% equity of the corporation through the Subsidiary – fresh peak investment
limited which the Company held 55% equity.
*② Shenzhen Shenfang Department Store Co. Ltd
The shareholders meeting held on 29 October 2007 passed the resolution to terminate business,
liquidation and formed a group to carry out the liquidation prodecures. The liquidation group issued a
notice of liquidation on 7 December 2007. According to the principle of “Enterprise Accounting
Standards No.33- the Consolidation Financial Statement”, the Store will not be included in the
Company’s consolidated financial statement. The book value of the investment account of the
Company is zero.
*③ Shenzhen CyberPort Co., Ltd
The shareholders meeting held on 12 May 2008 passed the resolution to terminate business,
liquidation and formed a group to carry out the liquidation prodecures. The liquidation group issued a
notice of liquidation on 5 December 2008. According to the principle of “Enterprise Accounting
Standards No.33- the Consolidation Financial Statement”, the corporation will not be included in the
Company’s consolidated financial statement. The book value of the investment account of the
Company is zero.
*④ Shenzhen City SPG Bao An Development Ltd.
The shareholders meeting held on 18 September 2009 passed the resolution to terminate business,
liquidation and formed a group to carry out the liquidation prodecures. According to the principle of
“Enterprise Accounting Standards No.33- the Consolidation Financial Statement”, the Store will not be
included in the Company’s consolidated financial statement.
*⑤ Shenzhen Real Estate Consolidated Service Co., Ltd.
The operating period of this corporation is from 26 January 1983 to 28 August 1999. And this Company
has ceased operations for many years. And the corporation had been terminated its licenses by law on
8 Febuary 2002 because of failing to take part in annual inspection.
*⑥ Shenzhen Shen Fang Industrial Development Co., Ltd
The operating period of this corporation is from 3 October 1993 to 3 October 1998. And this Company
has ceased operations for many years. And the corporation had been terminated its licenses by law on
8 Febuary 2002 because of failing to take part in annual inspection.
*⑦ Shenzhen Tefa Real Estate Consolidated Service Co., Ltd
The operating period of this corporation is from 7 March 1983 to 14 April 1995. And this company has
98
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
ceased operations for many years. And the corporation had been terminated its licenses by law in 2004
because of failing to take part in annual inspection.
*⑧ Bekaton Property Limited, Canada Great Wall (Vancouver) and Paklid Limited
These 3 subsidiaries were set up overseas in early times. The board of directors passed a resoluction
to terminate the corporations’ business.
*⑨ Shenzhen City Shenfang Construction and Decoration Materials Ltd
The operating period of this corporation is from 1 January 1984 to 6 July 2004. And this company has
ceased operations for many years. And the corporation had been terminated its licenses by law on
February 8, 2002 because of failing to take part in annual inspection.
*⑩Shenzhen ZhongGang Haiyan Enterprise Ltd
The operating period of this corporation is from 16 October 1984 to 16 October 2004. And this
company has ceased operations for many years. And the corporation had been terminated its licenses
by law in 1999 because of failing to take part in annual inspection.
*11 Shenzhen Xin Dongfang Store Ltd
The operating period of this corporation is from 7 June 1983 to 7 June 1998. And this company has
ceased operations for many years. And the corporation had been terminated its licenses by law at 10
January 2001 because of failing to take part in annual inspection.
*12 Guangdong Province Fengkai Lian Feng Cement Manufacturing Co., Ltd
The total assets (including tangible and intangible assets) of the corporation were auctioned for debt
repayment at 22 January 2006. The Company's investment in the company's book value is zero.
Except for *②, *③, *④，*12, the above subsidiaries which are not includedin the company’s
consolidated financial statement had ceased operations for many years. And the entities of the
corporations didn’t exist. And the Company has no control over its subsidiaries’ businesses. According
to the principle of “Enterprise Accounting Standards No.33- the Consolidation Financial Statement”, the
corporation will not be included in the Company’s consolidated financial statement. The book value of
the investment account of the Company is zero.
(2）Subsidiaries acquired through business combination under common control
There were not subsidiaries acquired through business combination under common control.
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SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
(3）Subsidiaries acquired through business combination not under common control
Unit: Yuan
Balance of
Actual capital
other items
Reg. captl(in contribution at
that in
Reg. ten the end of the
Name of the subsidiary Types Biz nature Biz scope substance
place thousand period(in ten
constitutes
Yuan) thousand
net
Yuan)
investment
Shan Tou Special Economic Zone Wholly-owned Property
Real estate Services HKD3000 2,108 --
subsidiary development
Real Estate Ltd.
(Continued)l
The excess of the minority
Amount of minority
shareholders’ share of the
interest used to absorb
（%）of Consolidated or Minority opening balance of owners’
Full name of subsidiary Voting （%） profits or losses Remark
share not interest equity of the subsidiary is
attributable to minority
allocated against owners’
interests
equity of parent company
Shan Tou Special Economic
100 100 Yes -- -- --
Zone Real Estate Ltd.
6.2 Consolidated scope
Whether there was change for the consolidated scope during report period.
□suitability √unsuitability
6.3Exchange rates for translating major financial statement items of foreign operations
Assets and liabilities
Items
June 30,2013 December 31, 2012
Great Wall Estate Co., Inc USD1 = RMB 6.1797 USD1 = RMB 6.2855
Revenue,expenses and cash flow
Items
1-6/2013 1-6/2012
Great Wall Estate Co., Inc USD1 = RMB 6.1797 USD1 = RMB 6.325
7 Notes to the Consolidated Financial Statements
7.1 Monetary funds
Unit: Yuan
Closing balance Opening balance
Foreign Exchange Foreign Exchange
Amount in RMB Amount in RMB
currency rate currency rate
100
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Closing balance Opening balance
Foreign Exchange Foreign Exchange
Amount in RMB Amount in RMB
currency rate currency rate
Cash on hand 380,826.22 336,552.84
RMB 359,144.37 298,819.57
USD 100.00 6.1797 617.97 1,435.33 6.2855 9,021.75
HKD 26,444.89 0.7965 21,063.88 35,406.98 0.8109 28,711.52
Cash in bank 612,668,899.47 488,243,117.58
RMB 606,225,588.12 482,281,853.10
USD 125,090.70 6.1797 773,023.03 116,396.17 6.2855 731,608.14
HKD 7,118,827.30 0.7965 5,670,288.32 6,449,200.07 0.8109 5,229,656.34
Other monetary funds 221,628.00 8,226,234.58
RMB 90,170.28 8,092,202.24
HKD 165,040.08 0.7965 131,457.72 165,288.38 0.8109 134,032.35
Total 613,271,353.69 496,805,905.01
Note: (1) Cash in bank above includes RMB 20,090,170.28 ownership restricted (opening balance:
RMB 33,092,202.24).Among which, RMB 20,000,000.00 certificate of deposit was pledged for 3 years’
time loan.
(2) Other monetary funds above include RMB 90,170.28 tender bonds margin.
(3)Other monetary funds above include HKD 165,040.08, that is RMB 131,457.72 (opening balance:
RMB 134,032.35), is deposits of securities accounts opened by the Group in China Investment
Securities Co. Ltd., Shenzhen Aiguo Road securities business department.
7.2 Dividends receivables
Unit: Yuan
Reasons for
Closing Whether the
Item Opening balance Increase Decrease uncollected
balance amount is impaired
amounts
Aged within 1 year 1,052,192.76 -- -- 1,052,192.76 delay No
Total 1,052,192.76 -- -- 1,052,192.76
7.3 Accounts receivables
Unit: Yuan
101
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
(1) Accounts receivable by categories
Closing balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
Accounts receivable of which provision for
-- -- -- --
Portfolio
Accounts receivable of which provision for bad
39,986,971.33 100.00 18,474,238.78 46.20
debts is of individually insignificant
Total 39,986,971.33 100.00 18,474,238.78 46.20
(Continued)
Opening balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
Accounts receivable of which provision for
-- -- -- --
Portfolio
Accounts receivable of which provision for bad
42,887,466.13 100.00 18,474,279.11 43.08
debts is of individually insignificant
Total 42,887,466.13 100.00 18,474,279.11 43.08
Note to categories of account receivable
Accounts receivable of which provision for bad debts is of individually significant
√suitability □ unsuitability
Portfolio 1 by Aging analysis
□suitability √unsuitability
Portfolio 2 by percentage
□suitability √unsuitability
Protfolio 3 by other methods
□suitability √unsuitability
Provisions of bad debts that is individually insignificant
√suitability □ unsuitability
Unit: Yuan
102
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Proportion of
Content of accounts receivable Carrying amount Amount of bad debt Reasons for the provision
provision（%）
Receivables of import and export A separate provision is
11,574,556.00 11,574,556.00 100.00
agency business established according to the
House pay to be collected 12,798,373.13 6,301,854.02 49.24 recoverability of each
receivales with long aging
Engineering construction funds and
15,614,042.20 597,828.76 3.83 and little retrievability.
others
Total 39,986,971.33 18,474,238.78 46.20 --
(2)There were no any account reciviables which had been accured fully or large proporation provision
transferred back in this accounting year.
(3)There were no any significant account reciviables which had been written off in this accounting year.
(4) No amount due from shareholders who hold 5% or more of the voting rights of the Company is
included in the above balance of accounts receivable.
(5) Top 5 entities with the largest balances of accounts receivable
Unit: Yuan
Relationship with the Proportion of the amount to
Name of entity Amount Age
Group the total AR (%)
Corporate unit No.1 Un-related party 2,502,792.69 Within 1 year 6.26
Corporate unit No.2 Un-related party 2,024,731.37 Within 1 year 5.06
Corporate unit No.3 Un-related party 1,809,832.84 Over 3 year 4.53
Individual No.1 Un-related party 1,630,000.00 Within 1 year 4.08
Individual No.2 Un-related party 1,200,000.00 Over 3 year 3.00
Total -- 9,167,356.90 -- 22.93
(5) Receivables due from related parties
Unit: Yuan
Name of entity Relationship with the Group Amount Proportion of the amount to the total AR (%)
Shenzhen Fresh Peak Property
Association 1,095,272.50 2.74
Consultant Co.,Ltd
Total -- 1,095,272.50 2.74
7.4 Other receivables
103
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
(1) Other receivables by categories
Unit: Yuan
Closing balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
Other receivables of which provision for bad
162,375,032.28 68.90 148,822,643.82 91.65
debts is of individually significant
Othere receivable of which provision for Portfolio
Other receivables of which provision for bad
73,308,029.58 31.10 29,235,718.84 39.88
debts is of individually insignificant
Total 235,683,061.86 100.00 178,058,362.66 75.55
(Continued)
Opening balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
Other receivables of which provision for bad
162,502,551.42 69.07 148,947,821.36 91.66
debts is of individually significant
Othere receivable of which provision for
Portfolio
Other receivables of which provision for bad
72,762,279.99 30.93 29,422,675.04 40.44
debts is of individually insignificant
Total 235,264,831.41 100.00 178,370,496.40 75.82
Note to categories of other receivable
Other receivable of which provision for bad debts is of individually significant
√suitability □ unsuitability
Unit: Yuan
Proportion of bad
Content of accounts receivable Carrying amount Amount of bad debt Reasons for the provision
debt (%)
Other receivables between
subsidiares that are not included in 128,427,915.56 128,424,887.48 99.998
the consolidated statement
104
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Others 33,947,116.72 20,397,756.34 60.09
Total 162,375,032.28 148,822,643.82 91.65
Portfolio 1 by Aging analysis
□suitability √unsuitability
Portfolio 2 by percentage
□suitability √unsuitability
Protfolio 3 by other methods
□suitability √unsuitability
Provisions of bad debts that is individually insignificant
√suitability □ unsuitability
Unit: Yuan
Amount of bad
Content of other receivables Carrying amount Proportion of provision Reasons for the provision
debt (%)
Other receivables between A separate provision is
subsidiares that are not established according to the
1,307,032.74 1,116,316.04 85.41
included in the consolidated recoverability of each receivales
statement with long aging and little
Others 72,000,996.84 28,119,402.80 39.05 retrievability
Total 73,308,029.58 29,235,718.84 39.88
(2)There were no any account reciviables which had been accured fully or large proporation provision
transferred back during the current period.
(3)There were no any other material receivables written off during the current period.
(4)There were no any other receivables due from shareholders at least 5% of the Group’s shares with
voting power during the current period.
(5)Top 5 entities with the largest balances of other receivables
Unit: Yuan
Relationship with the Proportion of the amount to the
Name of entity Amount Age
Group total OR (%)
Canada Great Wall( Vancouver)
Subsidiary 89,035,748.07 Above 3 years 37.78
Co.,Ltd *
Paklid Limited * Subsidiary 18,505,696.20 Above 3 years 7.85
105
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Bekaton property Limited * Subsidiary 12,559,290.58 Above 3years 5.33
Guangdong province Huizhou
Joint venture 10,465,168.81 Above 3 years 4.44
Luofu Hill Mineral Water Co.,Ltd
Corporate unit No.1 Un- related party 9,600,000.00 Above 3 years 4.07
Total 140,165,903.66 59.47
(6) Receivables due from related parties
Unit: Yuan
Relationship with the Proportion of the amount to
Name of entity Amount
Group the total OR (%)
Guangdong Province Huizhou Luofu Hill Mineral Water
Joint venture 10,465,168.81 4.44
Co.,Ltd
Shenzhen Runhua Automobile Trading Co.,Ltd Association 3,072,764.42 1.30
Canada GreatWall（Vancouver）Co.,Ltd Subsidiary 89,035,748.07 37.78
Bekaton Property Limited Subsidiary 12,559,290.58 5.33
Paklid Limited Subsidiary 18,505,696.20 7.85
Shenzhen Shenfang Department Store Co. Ltd. Subsidiary 237,648.82 0.10
Shenzhen Real Estate Consolidated Service Co., Ltd. Subsidiary 1,086,487.22 0.46
Shenzhen City Shenfang Construction and Decoration
Subsidiary 8,327,180.71 3.53
Materials Ltd.
Shenzhen RongHua JiDian Co.,Ltd Association 475,223.46 0.20
Xi’an Fresh Peak property management& Trading Co.,Ltd Joint venture 8,419,205.19 3.57
Total 152,184,413.48 64.56
7.5 Prepayments
(1) Aging analysis
Unit: Yuan
Closing balance Opening balance
Aging
Amount (%) Amount (%)
Within 1 year 80,033,059.74 96.90 38,665,226.47 97.44
1-2 years 1,958,120.00 2.37 38,762.35 0.1
2-3 years 598,420.00 0.72 971,011.25 2.45
106
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Over 3 years 550.00 0.01 2,550.00 0.01
Total 82,590,149.74 100.00 39,677,550.07 100.00
(2) Top 5 entities with the largest balances of prepayments
Unit: Yuan
Relationship with the
Name of entities Amount Timing Reasons for unsettlement
Group
The un-settled prepayment of
Project 1 Un-related party 42,526,383.19 Within 1 year
engineering materials
The un-settled prepayment of
Project 2 Un-related party 12,078,643.49 Within 1 year
engineering materials
The un-settled prepayment of
Project 3 Un-related party 5,000,000.00 Within 1 year
engineering materials
The un-settled prepayment of selling
Corporate unit No.1 Un-related party 4,002,017.94 Within 1 year
expenses
The un-settled prepayment of
Project 5 Un-related party 3,550,247.41 Within 1 year
engineering materials
Total 67,157,292.03
(3) No prepayments to shareholders at least 5% of the Group’s shares with voting power during the
current period.
(4) Prepayments in the balance sheet had RMB 82,590,149.74 as the closing balance at June 30,
2013, 108.15% of increase than the opening of the year. The reason for such increase is: the un-settled
prepayment of engineering project from the subsidiary company- Shenzhen Zhen Tung Engineering Ltd.;
and the un-settled prepayment of selling expenses for Chuanqishan Project.
7.7 Inventory
(1) Categories of inventory
Unit: Yuan
Closing balance
Item Provision for decline in value of
Carrying amount Net carrying amount
inventories
Raw materials 462,127.16 -- 462,127.16
Finished products 606,699.56 278,891.91 327,807.65
Real estate developing products 2,584,246,487.31 47,584,499.31 2,536,661,988.00
107
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Real estate developed products 163,585,183.76 -- 163,585,183.76
Low-value consumable products 409,084.92 -- 409,084.92
Construction in progress 70,838,836.71 -- 70,838,836.71
Total 2,820,148,419.42 47,863,391.22 2,772,285,028.20
(Continued)
Opening balance
Item Provision for decline in value of
Carrying amount Net carrying amount
inventories
Raw materials 474,030.36 -- 474,030.36
Finished products 652,903.78 278,891.91 374,011.87
Real estate developing products 2,260,222,646.19 47,584,499.31 2,212,638,146.88
Real estate developed products 187,895,424.67 -- 187,895,424.67
Low-value consumable products 41,821.30 -- 41,821.30
Construction in progress 30,331,029.46 -- 30,331,029.46
Total 2,479,617,855.76 47,863,391.22 2,431,754,464.54
(2) Provision for movement in value of inventories
Unit: Yuan
Decrease
Item Opening balance Increase Closing balance
Reversals Write-off
Finished products 278,891.91 -- -- -- 278,891.91
Real estate developing products 47,584,499.31 -- -- -- 47,584,499.31
Total 47,863,391.22 -- -- -- 47,863,391.22
Note: the net carrying amount inventories in the balance sheet had RMB 2,772,285,028.20 as the
closing balance at June 30, 2013, 14.00% of increase than the opening of the year. The reason for
such increase is increased input of Project Shenfang chuanqishan, Project Shenfang Shanglin Garden
and Shantou Yuejingdongfang.
（3）Real estate developed products
Finished time Opening balance Additions Redutions Closing balance
Jinye Island Multi-tier villa 1997 36,129,768.09 2,804,000.00 -- 38,933,768.09
Jinye Island villa No.6 2007 2,961,996.22 -- -- 2,961,996.22
108
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Finished time Opening balance Additions Redutions Closing balance
Jinye Island villa No.9 2009 10,239,320.90 -- 2,054,243.16 8,185,077.74
Jinye Island villa No.10 2010 84,815,289.51 -- 21,401,145.18 63,414,144.33
Jinye Island villa No.11 2008 22,545,126.68 -- 3,658,852.57 18,886,274.11
HuangPuXinChun No.1 1994 121,283.88 -- -- 121,283.88
HuangPuXinChun No.2 2007 269,946.14 -- -- 269,946.14
HuaFeng Building 2000 1,631,743.64 -- -- 1,631,743.64
XingHu Garden Multi-tier 2003 156,848.69 -- -- 156,848.69
BeiJing Fresh Peak Buliding 671,820.67 -- -- 671,820.67
Wenjin warehouse 1-5 floor 13,507,895.61 -- -- 13,507,895.61
Real Estate building 11,025,444.77 -- -- 11,025,444.77
Wenjing Garden 3,818,939.87 -- -- 3,818,939.87
Total 187,895,424.67 2,804,000.00 27,114,240.91 163,585,183.76
The reason for such increase in the period is repurchase of some Real estate developed products.
(4)Real estate developing products
Starting Finished Estimated total
Opening balance Closing balance
time time investment
DongHuDiJing Building* 130,350,182.51 130,652,182.51
ShanTou Yuejing Dongfang 2008 2014 150,000,000.00 78,795,485.51 99,189,821.27
Shengfang Shanglin Garden 2007 2014 1,400,000,000.00 346,095,674.23 451,141,211.91
ShanTou Fresh Peak Building 22,812,403.36 23,059,289.56
Shenfang Chuanqishan East Zone 2011 2013 1,600,000,000.00 1,075,701,021.51 1,191,627,595.28
Shenfang Chuanqishan West Zone 2012 2013 1,100,000,000.00 606,467,879.07 688,576,386.78
Total 2,260,222,646.19 2,584,246,487.31
Capitalized borrowing cost at year end is RMB 162,900,927.61.
109
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
7.7 Other current assets
Unit: Yuan
Item Closing balance Opening balance
Value added tax 2,843,297.67 5,686,855.14
Business tax 16,014,369.37 1,680,349.06
City construction surcharge 1,161,129.84 324,324.07
Education surcharge 462,901.69 28,718.20
Local education surcharge 264,070.29 19,227.31
Embankment Protection Fee 106,609.63 40,987.00
Increment tax on land value 77,774.08 --
Business income tax 4,974,353.44 --
Total 25,904,506.01 7,780,460.78
Note: other current assets had RMB 25,904,506.01 as the closing balance at June 30, 2013,
232.94%of increase than the opening balance of the year. The reason for such increase is that the
taxation for pre-sale payments and receipts for projects was paid during the current period.
110
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
7.8 Investments in joint ventures and associates
Unit: Yuan
Proportion of Proportion of voting
Total assets at Total liabilities at Total net assets Total operating income Net profit for the
Name of investee ownership interest power in the investee
the end of year the end of year at the end of year for the current period current period
(%) (%)
1) Joint ventures
Guangdong province Huizhou Luofu Hill mineral water Co.,Ltd*①
Fengkai Xinhua Hotel*②
Jiangmen Xinjian Real Estate Co. Ltd.*③
Xi’an Fresh Peak Building Co. Ltd.*③
DongYi Property Co.,Ltd.*③
2) Associates
Shenzhen Ronghua JiDian Co.,ltd 25 25
Shenzhen Fresh Peak Property Consultant Co.,Ltd 20 20
Shenzhen Runhua Automobile Trading Co.,Ltd① 50 50
Shenzhen Dongfang New world Store Co.,Ltd② 50 50
111
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
1) Joint ventures
①Guangdong province Huizhou Luofu Hill mineral water Co., Ltd
The operting period of the company was form June 5, 1991 to June 4, 2001. And the company had
ceased operations because of operating loss for many years. And the Company had been terminated
its licenses by law at July 6, 2001 because it failed to pass the annual inspection. Besides, the
corporation stopped preparing the financial statement. As of the end of the year, the book value of the
investment account of the Company is zero. According to the joint venture agreement, the Company
didn’t have the obligation to bear the additional loss.
②Fengkai Xinghua Hotel
The FengKai XingHua Hotel was announced bankruptcy by the Guangdong Province Zhaoqing City
second-middle intermdediate Peoples’ court with the document (2002) ZHFJPZ No.2. And the
corporation had finished the bankruptcy procedure. As of the end of the year, the book value of the
investment account of the Company is zero. According to the joint venture agreement, the Company
didn’t have the obligation to bear the additional loss.
③Jiangmen Xinjian Real Estate Co. Ltd., Xian Fresh Peak Building Co. Ltd, DongYi Property Co., Ltd
The above corporations were the joint ventures set up with the local partners for the properties
developing projects. Consider the projects had been stopped, and the joint ventures had closed
operating actvities for many years with no prepation of financial statements. The company has already
accrued the corresponding provision for the investment of these joint ventures.
2) Associates
*① Shenzhen Runhua Automobile Trading Co., Ltd
The operating period of this corporation was form Feb 24, 1992 to Feb 24, 1997, and it had ceased
operations because of operating loss for many years. Besides, it had been terminated its licenses by
law because it failed to pass the annual inspection and no financial statement was prepred afterwards.
As the end of the year, the book value of the investment account of the vompany is zero. According to
the assosicate agreement, the company didn’t have the obligation to bear the additional loss.
*② Shenzhen Dongfang New world store Co., Ltd
The operating period of this corporation was from June 7, 1993 to June 7, 1998, and the company had
ceased operations because of operating loss for many years. And the company had been terminated
its licenses by law at Jan 10, 2001 because it failed to pass the annual inspection. Besides, the
company stopped making the financial statement. At Dec 31, 2010, the book value of the investment
account of the company is zero. According to the assosicate agreement, the company didn’t have the
obligation to bear the additional loss.
7.9 Long-term equity investments
112
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Details of long-term equity investments
Unit: Yuan
Changes [Increase
Name of investee Accounting method Investment cost Opening balance Closing balance
/decrease]
Shenzhen Ronghua JiDian Co.,ltd Equity method 1,250,000.00 1,403,848.97 -- 1,403,848.97
Shenzhen Runhua Automobile Trading Co.,Ltd*① Equity method 1,445,425.56 1,445,425.56 -- 1,445,425.56
Guangdong province Huizhou Luofu Hill mineral water Co.,Ltd*② Equity method 9,969,206.09 9,969,206.09 -- 9,969,206.09
Fengkai Xinhua Hotel*③ Equity method 9,455,465.38 9,455,465.38 -- 9,455,465.38
Jiangmen Xinjian Real Estate Co. Ltd.*④ Equity method 9,037,070.89 9,037,070.89 -- 9,037,070.89
Xi’an Fresh Peak Building Co. Ltd Equity method 32,840,729.61 32,840,729.61 -- 32,840,729.61
DongYi Property Co.,Ltd Equity method 30,376,084.89 30,376,084.89 -- 30,376,084.89
Shenzhen Shen Fang Industrial Development Co., Ltd Cost method 4,500,000.00 4,500,000.00 -- 4,500,000.00
Shenzhen ZhongGang Haiyan Enterprise Ltd Cost method 12,940,900.00 12,940,900.00 -- 12,940,900.00
Shenzhen Real Estate Consolidated Service Co., Ltd. Cost method 5,958,305.26 5,958,305.26 -- 5,958,305.26
Paklid Limited Cost method 201,100.00 201,100.00 -- 201,100.00
Bekaton Property Limited Cost method 906,630.00 906,630.00 -- 906,630.00
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd Cost method 8,180,003.63 8,180,003.63 -- 8,180,003.63
Shenzhen Xin Dongfang Store Ltd Cost method 18,500,000.00 18,500,000.00 -- 18,500,000.00
Shenzhen City Shenfang Construction and Decoration Materials Ltd. Cost method 2,680,000.00 2,680,000.00 -- 2,680,000.00
Shenzhen Shenfang Department Store Co. Ltd. Cost method 10,000,000.00 10,000,000.00 -- 10,000,000.00
Shenzhen CyberPort Co., Ltd Cost method 14,000,000.00 7,613,507.96 -- 7,613,507.96
113
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Changes [Increase
Name of investee Accounting method Investment cost Opening balance Closing balance
/decrease]
YunNan KunPeng Flight service Co.,Ltd Cost method 5,464,240.74 5,464,240.74 -- 5,464,240.74
ShenZhen ShenFang BaoAn developmentCo.,Ltd Cost method 20,000,000.00 20,379,525.68 -- 20,379,525.68
Shantou Fresh Peak Building Cost method 68,731,560.43 58,547,652.25 -- 58,547,652.25
Guangdong Province Fengkai Lain Feng Cement Manufacturing Co., Ltd. Cost method 121,265,000.00 56,228,381.64 -- 56,228,381.64
Shantou Small&medium Enterprises Finacing Guarantee Co. Ltd. Cost method 12,000,000.00 12,000,000.00 -- 12,000,000.00
Total 399,701,722.48 318,628,078.55 -- 318,628,078.55
(Continued)
Proportion of Proportion of voting Explanation of the Provision for
Provision for Cash dividend for
Name of investee ownership interest power in the investee inconsistency between these impairment losses for
impairment losses the period
held (%) (%) two proportions the period
Shenzhen Ronghua JiDian Co.,ltd 25 25 1,076,954.64 -- --
Shenzhen Runhua Automobile Trading Co.,Ltd 50 50 1,445,425.56 -- --
Guangdong province Huizhou Luofu Hill mineral water Co.,Ltd 9,969,206.09 -- --
Fengkai Xinhua Hotel 9,455,465.38 -- --
Jiangmen Xinjian Real Estate Co. Ltd. 912,537.16 -- --
Xian Fresh Peak Building Co. Ltd 20,673,831.77 -- --
DongYi Property Co.,Ltd 21,225,715.87 -- --
Shenzhen Shen Fang Industrial Development Co., Ltd 100 100 4,500,000.00 -- --
Shenzhen ZhongGang Haiyan Enterprise Ltd 68 68 12,940,900.00 -- --
114
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Proportion of Proportion of voting Explanation of the Provision for
Provision for Cash dividend for
Name of investee ownership interest power in the investee inconsistency between these impairment losses for
impairment losses the period
held (%) (%) two proportions the period
Shenzhen Real Estate Consolidated Service Co., Ltd. 100 100 5,958,305.26 -- --
Paklid Limited 100 100 201,100.00 -- --
Bekaton Property Limited 100 100 906,630.00 -- --
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd 100 100 8,180,003.63 -- --
Shenzhen Xin Dongfang Store Ltd 100 100 18,500,000.00 -- --
Shenzhen City Shenfang Construction and Decoration Materials Ltd. 100 100 2,680,000.00 -- --
Shenzhen Shenfang Department Store Co. Ltd. 100 100 10,000,000.00 -- --
Shenzhen CyberPort Co., Ltd 70 70 -- -- --
YunNan KunPeng Flight service Co.,Ltd* 25 25 -- -- --
ShenZhen ShenFang BaoAn developmentCo.,Ltd 100 100 -- --
Shantou Fresh Peak Building 100 100 58,547,652.25 -- --
Guangdong Province Fengkai Lain Feng Cement Manufacturing Co., Ltd. 90 90 56,228,381.64 -- --
Shantou Small&medium Enterprises Finacing Guarantee Co. Ltd. 10 10 -- --
Total -- -- 243,402,109.25 -- --
Note: the proportion of ownership interest in YunNan KunPeng Flight service Co., Ltd held by the Group is 25%. Because the Group neither have control nor
have significant influence over the investee, the equity investment is accounted for using the cost method.
①Guangdong province Huizhou Luofu Hill mineral water Co., Ltd
115
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
The operting period of the company was form June 5, 1991 to June 4, 2001. And the company had ceased operations because of operating loss for many years.
And the Company had been terminated its licenses by law at July 6, 2001 because it failed to pass the annual inspection. Besides, the corporation stopped
preparing the financial statement. As of the end of the year, the book value of the investment account of the Company is zero. According to the joint venture
agreement, the Company didn’t have the obligation to bear the additional loss.
②Fengkai Xinghua Hotel
The FengKai XingHua Hotel was announced bankruptcy by the Guangdong Province Zhaoqing City second-middle intermdediate Peoples’ court with the
document (2002) ZHFJPZ No.2. And the corporation had finished the bankruptcy procedure. As of the end of the year, the book value of the investment account
of the Company is zero. According to the joint venture agreement, the Company didn’t have the obligation to bear the additional loss.
③Jiangmen Xinjian Real Estate Co. Ltd., Xian Fresh Peak Building Co. Ltd, DongYi Property Co., Ltd
The above corporations were the joint ventures set up with the local partners for the properties developing projects. Consider the projects had been stopped,
and the joint ventures had closed operating actvities for many years with no prepation of financial statements. The company has already accrued the
corresponding provision for the investment of these joint ventures.
116
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
7.10 Investment properties
Investment properties measured at cost
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
I. Total original carrying amount 845,909,375.80 -- 1,781,820.37 844,127,555.43
Including: Buildings 748,891,106.42 -- -- 748,891,106.42
Land use rights 97,018,269.38 -- 1,781,820.37 95,236,449.01
II. Total accumulated depreciation
264,779,967.15 9,886,933.98 -- 274,666,901.13
and amortization
Including: Buildings 264,779,967.15 9,886,933.98 -- 274,666,901.13
Land use rights -- -- -- --
III. Total net book value 581,129,408.65 -9,886,933.98 1,781,820.37 569,460,654.30
Including: Buildings 484,111,139.27 -9,886,933.98 474,224,205.29
Land use rights 97,018,269.38 1,781,820.37 95,236,449.01
IV. Total provision for impairment 93,755,965.22 -- 1,462,423.11 92,293,542.11
Including: Buildings 14,128,544.62 -- -- 14,128,544.62
Land use rights 79,627,420.60 -- 1,462,423.11 78,164,997.49
V. Total carrying amounts 487,373,443.43 -9,886,933.98 319,397.26 477,167,112.19
Including: Buildings 469,982,594.65 -9,886,933.98 -- 460,095,660.67
Land use rights 17,390,848.78 -- 319,397.26 17,071,451.52
Amount for the current period
Depreciation 9,886,933.98.
7.11 Fixed assets
Details of fixed assets
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
I. Total original cost 141,652,164.76 1,565,675.17 5,085,105.59 138,132,734.34
Including: building& construction 107,162,510.48 1,199,034.00 4,930,755.59 103,430,788.89
Vehicles 18,869,315.60 -- 117,000.00 18,752,315.60
117
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Item Opening balance Increase Decrease Closing balance
Electronic & other equipments 15,620,338.68 366,641.17 37,350.00 15,949,629.85
Opening balance Additions Accrual Decrease Closing balance
II. Total accumulated
78,447,356.10 -- 3,227,230.25 3,746,684.40 77,927,901.95
depreciation
Including: Building & construction 54,959,841.74 -- 1,683,545.74 3,601,846.38 53,041,541.10
Vehicles 13,151,303.89 -- 885,525.52 109,355.52 13,927,473.89
Electronic & other equipments 10,336,210.47 -- 658,158.99 35,482.50 10,958,886.96
Opening balance Closing balance
III.Total net book value 63,204,808.66 60,204,832.39
Including: building& construction 52,202,668.74 50,389,247.79
Vehicles 5,718,011.71 4,824,841.71
Electronic & other equipments 5,284,128.21 4,990,742.89
IV. Total impairment provision -- -- -- --
Including: building& construction -- -- -- --
Vehicles -- -- -- --
Electronic & other equipments -- -- -- --
V.Total carrying amount 63,204,808.66 60,204,832.39
Including: building& construction 52,202,668.74 50,389,247.79
Vehicles 5,718,011.71 4,824,841.71
Electronic & other equipments 5,284,128.21 4,990,742.89
Note: (1) The depreciation for the current year is RMB 3,227,230.25.
There were no original amount of construction in progress was transferred to fixed assets during the
period.
Amount of RMB 1,199,034.00 was transferred to fixed assets from other non-current assets.
7.12 Intangible assets
Details of Intangible assets
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
I. Carrying amount 7,180,000.00 1,380,000.00 -- 8,560,000.00
Software 812,000.00 1,380,000.00 -- 2,192,000.00
118
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Item Opening balance Increase Decrease Closing balance
Taxi license 6,368,000.00 -- -- 6,368,000.00
II. Total accumulated amortization 1,313,893.25 261,189.98 -- 1,575,083.23
Software 421,133.25 177,399.98 -- 598,533.23
Taxi license 892,760.00 83,790.00 -- 976,550.00
III. Total book value 5,866,106.75 1,118,810.02 6,984,916.77
Software 390,866.75 1,593,466.77
Taxi license 5,475,240.00 5,391,450.00
IV. Total provision for impairment -- -- -- --
Software -- -- -- --
Taxi license -- -- -- --
V. Total net carrying amount 5,866,106.75 1,118,810.02 6,984,916.77
Software 390,866.75 1,593,466.77
Taxi license 5,475,240.00 5,391,450.00
Note: The amortization for the current period is RMB 261,189.98.
7.13 Long-term deferred assets
Unit: Yuan
Reason for other
Item Opening balance Increase Amortization Other reductions Closing balance
reductions
Renovation costs 427,321.35 385,927.03 101,179.74 -- 712,068.64
Total 427,321.35 385,927.03 101,179.74 -- 712,068.64 --
Long-term deferred assets in the balance sheet had RMB 712,068.64 as the closing balance at June
30, 2013, 66.64% of increase than the opening of the year. The reason for such increase is the
increased renovation costs of dormitory.
7.14 Deferred tax assets and liabilities
(1) Deferred tax assets and deferred tax liabilities are disclosed individually
Recognized deferred tax assets
Unit: Yuan
Item Closing balance Opening balance
Deferred tax assets:
Provision for impairment losses of assets 11,896,124.83 11,896,124.83
119
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Deductible loss 6,916,174.53 6,916,174.53
Dismission welfare 816,350.26 816,350.26
Advertising expense 253,000.00 253,000.00
Total 19,881,649.62 19,881,649.62
Details of unrecognized deferred tax assets
Unit: Yuan
Item Closing balance Opening balance
Deductible temporary differences 133,570,435.48 133,570,435.48
Deductible losses 17,168,115.83 17,168,115.83
Total 150,738,551.31 150,738,551.31
Deductible losses, for which no deferred tax assets are recognized, will expire in the following years
Unit: Yuan
Year Closing balance Opening balance Remarks
2013 28,540,572.21 28,540,572.21
2014 36,309,943.43 36,309,943.43
2015 2,662,914.18 2,662,914.18
2016 1,008,640.93 1,008,640.93
2017 150,392.58 150,392.58
Total 68,672,463.33 68,672,463.33
(2) The net amount of deferred tax assets offset against deferred tax liability is disclosed
Unit: Yuan
Closing balance (deferred tax Closing balance (Deductible Opening balance (deferred Opening balance (Deductible
Items assets offset against offset against taxable tax assets offset against offset against taxable
deferred tax liability) temporary differences) deferred tax liability) temporary differences)
Deferred tax assets 19,881,649.62 79,526,598.48 19,881,649.62 79,526,598.48
7.15 Details of provision for impairment of assets
Unit: Yuan
Decrease
Item Opening balance Increase Closing balance
Reversals Write-off
1. Bad debt provision 196,844,775.51 -- 312,174.07 -- 196,532,601.44
120
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Decrease
Item Opening balance Increase Closing balance
Reversals Write-off
2.Provision for decline in value of
47,863,391.22 -- -- -- 47,863,391.22
inventories
3. Provision for impairment of
243,402,109.25 -- -- -- 243,402,109.25
long-term investments
4.Provision for impairment of
93,755,965.22 -- 1,462,423.11 -- 92,293,542.11
investment properties
Total 581,866,241.20 -- 1,774,597.18 -- 580,091,644.02
Note: the variation of impairment provision of assets is due to the fluctation of rate used in
translation of foreign currencies.
7.16 Other non-current assets
Unit: Yuan
Item Closing balance Opening balance
Software fees -- 1,214,400.00
Fitment fees -- 1,037,034.00
Others -- 162,000.00
Car park transformation 735,190.76 --
Total 735,190.76 2,413,434.00
During the current period, prepaid software fees were transferred to intangible assets and fitment
fees was transferred to fixed assets.
7.17 Short-term loans
Unit: Yuan
Item Closing balance Opening balance
Loan on credit 16,000,000.00 26,000,000.00
Entrusted loan -- 70,000,000.00
Total 16,000,000.00 96,000,000.00
Note: Short-term loans had RMB 16,000,000.00 as the closing balance at June 30, 2013, 83.33% of
decrease than the opening of the year. The reason for such decrease is that the entrusted loan was
repaid during the current period.
121
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
7.18 Accounts payable
(1) Details of accounts payable
Unit: Yuan
Item Closing balance Opening balance
Within one year 3,677,784.82 6,552,137.26
Over one year 50,983,035.01 66,108,696.34
Total 54,660,819.83 72,660,833.60
(2)There were no any accounts payable to shareholders holding at least 5% of the Group’s shares with
voting power or to related parties in the reporting period.
(3) Significant accounts payable aged more than one year is for the unsettled project at the end of the
period.
7.19 Advances from customers
(1) Details of advances from customers
Unit: Yuan
Item Closing balance Opening balance
Within one year 1,078,243,981.12 384,299,219.83
Over one year 56,410,646.82 22,894,978.97
Total 1,134,654,627.94 407,194,198.80
(2) There were no any advances from customers to shareholders holding at least 5% of the Group’s
shares with voting power or to related parties in the reporting period.
(3) Significant advances from customers aged more than one year is the import and export agency
business payment and advance payment from housing buyers, as such receipts have not been
transferred to income at the end of the year.
Advance from customers had RMB 1,134,654,627.94 as the closing balance at June 30, 2013,
178.65% of increase than the opening of the year. The reason for such increase is advance payment
from housing buyers during the current period.
(4) Details of advances from customers
Item Closing balance Opening balance
Jinye Island villa No.6 6,500,000.00 5,500,000.00 Completed
Jinye Island villa No.9 20,080,000.00 25,180,000.00 Completed
122
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Jinye Island villa No.10 28,342,366.00 28,744,765.00 Completed
Jinye Island villa No.11 8,221,847.00 8,489,464.00 Completed
Shenfang Chuanqishan 929,095,957.00 280,179,233.00 2013
Total 992,240,170.00 348,093,462.00
7.20 Employee benefits payable
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
I. Salary, bonus,
29,557,777.44 37,281,273.49 47,586,198.12 19,252,852.81
allowances and subsidies
II. Staff welfare -- 2,225,654.70 2,181,482.93 44,171.77
III. Social security
2,363,692.35 5,713,416.24 5,691,455.87 2,385,652.72
contributions
Including:
1. Medical insurance 1,104,655.50 1,522,870.38 1,511,645.14 1,115,880.74
premium
2. Pension insurance
1,257,988.54 3,730,668.07 3,723,743.94 1,264,912.67
premium
3.Unemployment insurance
136.54 220,635.62 218,425.70 2,346.46
premium
4.Employement injury
612.66 102,503.64 101,530.24 1,586.06
insurance
5.Maternity insurance 299.11 136,738.53 136,110.85 926.79
IV. Housing fund 10,064.55 2,492,473.84 2,279,146.01 223,392.38
V. Termination benefits 3,265,401.05 185,368.50 185,368.50 3,265,401.05
VI. Others 1,478,092.79 3,126,582.60 3,497,594.46 1,107,080.93
Total 36,675,028.18 51,024,769.37 61,421,245.89 26,278,551.66
Note:①The overdue employee benefits payable is RMB 0.
②Union running costs and employee education costs are RMB 845,059.79, non-monetary benefits are
RMB 0, and compensations to employees for termination of employment relationship are RMB
185,368.50.
③ Employee benefits payable had RMB 26,278,551.66 as the closing balance at June 30, 2013,
28.35% of decrease than the opening of the year. The reason for such increase is that accrued wages
and bonuses last year were paid during the current period.
123
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
7. 21 Taxes payable
Unit: Yuan
Item Closing balance Opening balance
Corporate income tax 516,920.81 12,295,090.93
Individual income tax 385,702.61 387,577.98
Property tax 1,728,786.02 1,723,069.64
Land appreciation tax 4,340,245.77 5,552,414.59
Total 6,971,655.21 19,958,153.14
Taxes payable had RMB 6,971,655.21 as the closing balance at June 30, 2013, 65.07% of decrease
than the opening of the year. The reason for such decrease is final settlement of business income tax
of 2012.
7.22 Interest payable
Unit: Yuan
Item Closing balance Opening balance
Interest of long-term loans with interest payable by
-- 1,726,472.23
installments and principle payable on maturity
Interest payable on short-term loans 200,000.00 134,166.67
Others 16,535,277.94 16,535,277.94
Total 16,735,277.94 18,395,916.84
Note: the balance of other interests payable is due to Shenzhen Investment Holdings Co.，Ltd.
7.23 Other payables
(1) Details of other payables
Unit: Yuan
Item Closing balance Opening balance
Land appreciation tax accrued 107,957,556.13 118,306,623.12
Payable to related parties 98,325,761.01 98,325,761.01
Cash pledge 38,800,594.32 41,157,683.11
Others 142,532,566.80 136,951,659.05
Total 387,616,478.26 394,741,726.29
(2) Other payables to shareholders holding at least 5% of the Group’s shares with voting power or to
124
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Financial report for the six months ended 30 June 2013
related parties in the reporting period.
Name Closing balance Opening balance
Shenzhen Investment Holding Co.,Ltd 63,848,819.24 63,848,819.24
Total 63,848,819.24 63,848,819.24
(3) Description of significant other payables aged more than one year
The Group made provision for LAT, according to Guo Shui Fa [2006] No. 187 "LAT liquidation
management issues of real estate development enterprises made by the State Administration of
Taxation on ". As at June 30, 2013, the closing balance is RMB 107,957,556.13, among which the
amount of aged more than one year is RMB 86,969,139.04.
7.24 Non-current liabilities due within one year
(1) Details of non-current liabilities due within one year
Unit: Yuan
Item Closing balance Opening balance
Long-term loans due within one year (Note 7.26) 314,463,421.86 299,261,270.80
Total 314,463,421.86 299,261,270.80
(2) Long-term loan due within one year
Details of Long-term loan due within one year
Unit: Yuan
Item Closing balance Opening balance
Loan with mortgage 314,463,421.86 299,261,270.80
Total 314,463,421.86 299,261,270.80
There is no extension loan from long-term loans due within one year overdue.。
Top 5 long-term loans due within one year
Unit: Yuan
Lender Inception date of loans Maturity date Currency Closing balance Opening balance
Shenzhen Rural Commercial Bank 2010.11.26 2013.11.26 RMB 94,000,000.00 97,000,000.00
Shenzhen Rural Commercial Bank 2010.8.23 2013.8.23 RMB 83,000,000.00 86,000,000.00
Huashang Bank (Shenzhen Branch) 2012.12.6 2013.12.6 RMB 50,000,000.00 50,000,000.00
Huaxia Bank (Buji Branch) 2012.9.29 2013.12.29 RMB 40,000,000.00 25,000,000.00
Huaxia Bank (Buji Branch) 2012.10.24 2013.12.24 RMB 30,000,000.00 25,000,000.00
Tolal 297,000,000.00 283,000,000.00
125
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Note: Amounts repaid after the balance sheet date are RMB 11,527,060. The rates of above borrowing
depend on the benchmark interest rate of the People's Bank of China for the same period and have a
certain proportion floating of the benchmark interest rate.
7.26 Long-term loans
(1) Long-term loans categories
Unit: Yuan
Item Closing balance Opening balance
Loan with mortgage 725,267,638.70 849,636,078.25
Total 725,267,638.70 849,636,078.25
(2)Top 5 significant long-term loans
Unit: Yuan
Closing balance Opening balance
Lending party Inception date Maturity date Currency Foreign Foreign
Domestic currency Domestic currency
currency currency
Huashang Bank (Shenzhen
2012.12.6 2015.12.6 RMB 125,000,000.00 150,000,000.00
Branch)
China Construction Bank
2012.8.28 2015.9.27 RMB 100,000,000.00 100,000,000.00
(Shenzhen Branch)
China Construction Bank
2012.11.21 2015.11.20 RMB 100,000,000.00 100,000,000.00
(Shenzhen Branch)
Huaxia Bank (Buji Branch) 2010.10.24 2017.10.24 RMB 70,000,000.00 75,000,000.00
Huaxia Bank (Buji Branch) 2012.9.29 2017.9.29 RMB 50,000,000.00 75,000,000.00
Total 445,000,000.00 500,000,000.00
The rates of above borrowing depend on the benchmark interest rate of the People's Bank of China for
the same period and have a certain proportion of the benchmark interest rate.
7.26 Long-term payables
Details of long-term payables
Unit: Yuan
Item Closing balance Opening balance
Maintenance fund 10,536,381.50 11,136,124.62
Total 10,536,381.50 11,136,124.62
126
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
7.27 Share capital
Unit: Yuan
Opening balance Changes for the period Closing balance
Item Amount New issue of Bonus Capitalization of
Other Subtotal Amount
share issue surplus reserve
Total shares 1,011,660,000.00 -- -- -- -- -- 1,011,660,000.00
7.28 Capital reserve
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium 557,433,036.93 -- -- 557,433,036.93
Other capital reserve 420,811,821.17 -- -- 420,811,821.17
Total 978,244,858.10 -- -- 978,244,858.10
7.29 Surplus reserve
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserve 4,974,391.15 -- -- 4,974,391.15
Total 4,974,391.15 -- -- 4,974,391.15
7.30 Undistributed profit
Unit: Yuan
Amount for the current Proportion of
Item
period appropriation
Before adjustment: Undistributed profits at the end of prior year -369,154,405.36 --
After adjustment: Undistributed profits at beginning of year -369,154,405.36 --
Add: Net profit attributable to owners of the Company for the period 13,050,340.37 --
Undistributed profits at the end of period -356,104,064.99 --
Ajustment of undistributed profits at beginning of year
(1) "Enterprise Accounting Standards" and its related new regulations on retroactive adjustment had no
effected on the beginning undistributed profits.
(2) Changes in accounting policies had no effect on the beginning undistributed profits.
(3) Significant accounting errors correct had no effect on the beginning undistributed profits.
(4) Changes of the scope of consolidation under the same control had no effect on the beginning
127
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
undistributed profits.
(5) Other adjustment had no effect on the beginning undistributed profits.
7.31 Operating income and costs
(1) Operating income and operating costs
Unit: Yuan
Item Amount for the current period Amount for the prior period
Operating income 320,687,860.60 447,364,203.07
Operating costs 246,707,002.82 310,482,609.12
(2) Principal operating activities (classified by industries)
Unit: Yuan
Amount for the current period Amount for the prior period
Name of industry
Operating income Operating costs Operating income Operating costs
Real estate 66,359,365.82 27,114,240.91 171,290,731.00 76,250,647.97
Construction 164,394,128.55 155,763,939.80 182,734,297.82 171,454,717.81
Leasing 29,939,505.23 11,765,821.32 30,141,506.10 11,819,302.94
Property management 46,661,107.77 42,319,068.55 51,453,638.87 41,628,088.89
The hotel and other
13,333,753.23 9,743,932.24 11,744,029.28 9,329,851.51
services
Total 320,687,860.60 246,707,002.82 447,364,203.07 310,482,609.12
(3) Principal operating activities (classified by product)
Unit: Yuan
Amount for the current period Amount for the prior period
Name of industry
Operating income Operating costs Operating income Operating costs
Real estate 66,359,365.82 27,114,240.91 171,290,731.00 76,250,647.97
Others 254,328,494.78 219,592,761.91 276,073,472.07 234,231,961.15
Total 320,687,860.60 246,707,002.82 447,364,203.07 310,482,609.12
(4) Principal operating activities (classified by geographical areas)
Unit: Yuan
Amount for the current period Amount for the prior period
Name of geographical area
Operating income Operating costs Operating income Operating costs
GuangDong Province 320,379,472.95 246,707,002.82 447,055,009.59 310,482,609.12
128
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Amount for the current period Amount for the prior period
Name of geographical area
Operating income Operating costs Operating income Operating costs
Overseas： 308,387.65 -- 309,193.48 --
Total 320,687,860.60 246,707,002.82 447,364,203.07 310,482,609.12
(5) Operating income from the Company’s top 5 customers
Unit: Yuan
Amount for the current period
Proportion to total operating income of the
Total operating income
Company (%)
Corporation NO. 1 10,989,249.56 3.43
Corporation NO. 2 10,530,000.00 3.28
Corporation NO. 3 7,606,940.49 2.37
Corporation NO. 4 6,827,564.00 2.13
Natural person 5,100,000.00 1.59
Total 41,053,754.05 12.80
Note: Operating income had RMB 320,687,860.60 during the period in 2013, 28.32% of decrease than
the same period in the prior year. The reason for such decrease is that although Chuanqishan Project
has been started to be sold, but revenue has not yet been recognized for the current period.
7.32 Business taxes and surcharges
Unit: Yuan
Item Amount for the current period Amount for the prior period
Business tax 13,310,744.75 19,267,667.09
City construction and maintenance tax 925,609.78 1,312,811.96
Education surcharges 453,875.58 650,125.85
Property tax 3,147,535.56 3,147,535.56
Land appreciation tax 6,267,826.96 19,413,284.32
Local education surcharges 177,156.38 242,372.61
Embankment Protection Fee 252,406.89 682,286.32
Total 24,535,155.90 44,716,083.71
Note: business taxes and surcharges had RMB 24,535,155.90 during the period in 2013, 45.13% of
decrease than the same period in the prior year. The reason for such decrease is that operating income
129
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
decreased.
7.33 Selling expenses
Unit: Yuan
Item Amount for the current period Amount for the prior period
Employee benefits 1,225,569.17 949,054.46
Advertising expenses 3,094,555.50 3,883,759.00
Entertainment expenses 370,904.00 124,874.00
Others 2,188,517.23 1,298,688.77
Total 6,879,545.90 6,256,376.23
7.34 Administrative expenses
Unit: Yuan
Item Amount for the current period Amount for the prior period
Employee benefits 13,865,948.06 13,557,140.20
Taxes 1,142,696.64 1,623,728.00
Depreciation 2,361,519.58 2,447,915.96
Entertainment expenses 1,856,649.72 2,329,855.17
Intermediary fee 752,717.03 1,476,459.97
Travel expense 341,890.10 565,415.03
Administrative expenses 621,405.88 1,173,571.49
Repair charge 561,242.55 670,216.00
Water and electricity charges 567,906.60 446,096.70
Other amortization 336,449.97 279,116.97
Others 5,074,516.16 4,693,907.69
Total 27,482,942.29 29,263,423.18
7.35 Financial expenses
Unit: Yuan
Item Amount for the current period Amount for the prior period
Interest expenses 39,833,608.89 32,899,322.07
Less: Interest income -1,811,234.33 -1,152,479.46
Less: capitalized interest expenses -39,031,075.56 -28,247,669.94
130
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Exchange differences 304,319.17 -209,478.42
Others 129,353.84 130,161.76
Total -575,027.99 3,419,856.01
7.36 Investment income
Details of investment income
Unit: Yuan
Item Amount for the current period Amount for the prior period
Others -- 50,000.00
Total -- 50,000.00
7.37 Non-operating income
Details of non-operating income
Unit: Yuan
Amount for the Amount for the prior Amount included in non-recurring profit or
Item
current period period loss for the period
Total gains on disposal of non-current assets 3,454,738.58 23,868.70 3,454,738.58
Including: Gains on disposal of fixed assets 3,454,738.58 -- 3,454,738.58
Gains on penalty -- 30,331.00 --
Others 70,702.01 8,762.14 70,702.01
Total 3,525,440.59 62,961.84 3,525,440.59
Note: the increase of non-operating income is that the Company disposed of the Cheuk Nang Center
Building located in No.9 Hillwood Road, Kowloon, Hong Kong, which belonged to the Company’s
wholly-owned subsidiary --- Fresh Peak Holdings Ltd.
7.38 Non-operating expenses
Unit: Yuan
Amount included in
Amount for the prior
Item Amount for the current period non-recurring profit or loss
period
for the period
Total losses on disposal of non-current assets 6,511.98 9,175.80 6,511.98
Including: Losses on disposal of fixed assets 6,511.98 6,511.98
Donations to third parties 45,000.00 10,000.00 45,000.00
Penalty expense 5,210.00 8,215.00 5,210.00
131
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Amount included in
Amount for the prior
Item Amount for the current period non-recurring profit or loss
period
for the period
Compensation 34,562.34 -- 34,562.34
Others 4,480.00 21,167.47 4,480.00
Total 95,764.32 48,558.27 95,764.32
7.39 Income tax expenses
Unit: Yuan
Item Amount for the current period Amount for the prior period
Current tax expense calculated according to tax laws and relevant 6,019,760.27 13,182,343.19
requirements
Total 6,019,760.27 13,182,343.19
7.40 Basic earnings per share and diluted earnings per share
The basic earning per share is calculated by having the current net profit attributable to the share of the
Group divided by weighted average of the ordinary shares. The number of new ordinary shares issued
is, according to the specific terms in the contract, is calculated from the date of consideration
receivable (normally the issuing date).
The numerator of diluted earning per share is determined by the net profit in the current period
attributable to the ordinary shares of the Group after adjustment of following factors:
1) the interest of dilutive potential ordinary shares recognized as expense of the current period;
2）the income or expense during the conversion of dilutive potential ordinary shares; and
3）the income tax effect of above adjustment related.
The denominator of diluted earning per share is the sum of followings:
1) weighted average of ordinary shares issued by the parent company in the basic earning per share;
and
2) weighted average number of ordinary shares that would have been issued assuming the conversion
of dilutive potential ordinary shares into ordinary shares.
When calculating the number of ordinary shares that would have been issued assuming the conversion
of dilutive potential ordinary shares into ordinary shares, the dilutive potential ordinary shares issued in
the prior period is assumed as conversion in the beginning of this year, while the dilutive potential
ordinary shares issued in the current year is assumed as conversion at the issuing date.
7.41 Other comprehensive income
132
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Unit: Yuan
Amount for the current Amount for the prior
Item
period period
Translation differences of financial statements denominated in foreign currencies 1,787,893.36 -76,219.59
Total 1,787,893.36 -76,219.59
Note: the reason of the increase of other comprehenseive income is that exchange rate fluctuated.
7.42 Notes to items in the cash flow statements
(1) Other cash receipts relating to operating activities
Unit: Yuan
Item Amount for the current period
Interest income 8,576,175.84
Mortgage and deposits 5,116,719.35
Correspondent payment 8,514,474.45
Maintenance fund 2,199,028.51
Porperty license fee and survey fee 1,718,432.97
Others 40,128,220.05
Total 66,253,051.17
Other cash receipts relating to operating activities had RMB 66,253,051.17 during the current period in
2013, 88.33% of increase than the prior period in 2012. The reasons for such increase are the increased
short-term deposit and withdraw of security deposit of morgatge.
(2) Other cash receipts relating to operating activities
Unit: Yuan
Item Amount for the current period
Cash paid to general and administrative expenses 10,737,655.92
Cash paid to operating expenses 5,533,666.88
Mortgage and guarantee 6,945,918.37
Porperty license fee and survey fee 1,747,123.80
Other correspondent receivable 17,926,547.58
Others 28,899,610.77
Total 71,790,523.32
(3)Other cash receipts relating to investing activities
Unit: Yuan
133
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Item Amount for the current period
Certificate of deposit pledged 5,000,000.00
Total 5,000,000.00
7.43 Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: Yuan
Item Amount for the current period Amount for the prior period
I.Reconciliation of net profit to cash flows from operating activities:
Net profit 13,068,157.78 40,107,915.20
Add: Provision for impairment loss of assets -- --
Depreciation of fixed assets, bio-assets, and natural gas 13,114,164.23 13,308,286.90
Amortization of intangible assets 261,189.98 164,989.98
Amortization of long-term deferred expenses 101,179.74 101,977.02
Losses on disposal of fixed assets, intangible assets and other
long-term assets(deduct: gains) 3,454,738.58 -23,868.70
Losses on scrapping of fixed assets (deduct: gains) 4,644.48
Loss of fair value variation (deduct: gains) -- --
Financial expenses (deduct: gains) 931,887.17 11,022,629.56
Losses from investments (deduct: gains) -- -50,000.00
Decrease in inventories (deduct: increase) -340,530,563.66 -91,763,829.19
Decrease in operating receivables (deduct: increase) -40,324,329.07 -43,657,674.94
Increase in operating payables (deduct: decrease) 699,366,671.78 -45,524,297.86
Others -- --
Net cash flows from operating activities 349,447,741.01 -116,313,872.03
II. Investing and financing activities that do not affect cash receipt and
payment -- --
III. Net increase in cash and cash equivalents:
Cash at the end of the period 593,181,183.41 212,039,323.67
Less: cash at the beginning of the period 463,713,702.77 324,967,185.86
Net increase in cash and cash equivalents 129,467,480.64 -112,927,862.19
(2)Information of cash and cash equivalents
Unit: Yuan
134
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Item Amount for the current period Amount for the prior period
I. Cash 593,181,183.41 463,713,702.77
Including: Cash on hand 380,826.22 336,552.84
Bank deposits available for payment at any times 592,668,899.47 463,243,117.58
Other monetary funds available for payment at any
times 131,457.72 134,032.35
II. Closing balance of cash and cash equivalents 593,181,183.41 463,713,702.77
Note: the reason for Increase in operating payables is collection of sales from housing buyers.
8. Related party relationships and transactions
8.1 Parent of the Company
Related party Place of
Name of the parent Type of the entity Legal representative Business Nature
relationship incorporation
Shenzhen Investment Guangdong Investment, Real estate
State-owned
Shareholding Co. Parent of the Group province Fan Mingchun development,
Enterprises
Ltd Shenzhen Guarantee
(Continued)
Proportion of the
Proportion of the Company’s Ultimate controlling
Registered Company’s voting
Name of the parent ownership interest held by party of the Organization code
capital power held by the
the parent (%) Company
parent (%)
Shenzhen Investment State-owned assets
Shareholding Co. RMB 5.60 billion 63.55 63.55 management 76756642-1
Ltd commitee
Shenzhen Investment Shareholding Co. Ltd’ operating scope:
Guarantees for Municipal State-owned enterprises; stated-owned shares management; assets
restructurings of controlled enterprises as well as its capital operation; investment; other businesses
authorized by city SAC.
Address: Investing Building, Shennan Road, Futian district, Shenzhen
Postcode: 518029.
8.2 Subsidiaries of the Company
135
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Reg. captl (in
Reg. Legal （%）of Voting Organization
Name of the subsidiary Types Biz scope ten thousands
place representative share （%） code
yuan).
Shenzhen Petrel Hotel Co. Ltd. Wholly-owned subsidiary shenzhen Yang Jiayong Hotel 3,000 100 100 618858316
Property
Shenzhen City Property Management Ltd. Wholly-owned subsidiary shenzhen Chen Jiafa 725 100 100 192176034
management
Fitting-out
contracting
Shenzhen Zhen Tung Engineering Ltd. Wholly-owned subsidiary shenzhen Ye Haibo 1,000 100 100 618861371
and
maintenance
Construction
Shenzhen City We Gen Construction Management Ltd. Wholly-owned subsidiary shenzhen Yang Huajian project 800 100 100 192294487
management
Shenzhen City Car Rental Ltd. Wholly-owned subsidiary shenzhen Yang Jiayong Car rental 1,029 100 100 279277356
Develop and
Shenzhen Shenfang Car Park Ltd. Wholly-owned subsidiary shenzhen Wang Xiaolv 4,250 100 100 618893285
operate car park
Investment
Chen
Shenzhen City Shenfang Investment Ltd. Wholly-owned subsidiary shenzhen and 1,000 100 100 279381305
Maozheng
management
Trading of
Shenzhen City Shenfang Free Trade Trading Ltd. Wholly-owned subsidiary shenzhen Yang Jiayong Import and 500 100 100 192269708
Export
Property
Shenzhen City SPG Long Gang Development Ltd. Wholly-owned subsidiary shenzhen Liu Xiaodong 3,000 100 100 279522091
development
Shenzhen Special Economic Zone Real Estate (Group) Guangzhou Property Huang Property
Wholly-owned subsidiary GuangZhou 2,000 100 100 190521252
and Estate Co., Ltd. Changyue development
Operating of
Beijing fresh peak property development management limited company Wholly-owned subsidiary BeiJing Liang Song US$1,000 100 100 600013366
Real estate
Property
Beijing SPG Property Management Limited Wholly-owned subsidiary BeiJing Xu Dingjun 50 100 100 633652922
management
Shenzhen ShenWu elebator Co.,Ltd Wholly-owned subsidiary shenzhen Zhou Xiaobing Elevator sales 350 100 100 665889991
136
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Reg. captl (in
Reg. Legal （%）of Voting Organization
Name of the subsidiary Types Biz scope ten thousands
place representative share （%） code
yuan).
and service
Installation
of mechanical
Shenzhen Lain Hua Industry and Trading Co. Ltd. Wholly-owned subsidiary shenzhen Yang Jiayong 1,000 100 100 192184309
and electrical
equipment
Investment
Fresh Peak Holding Ltd. Wholly-owned subsidiary HongKong Yang Jiayong and HKD100 100 100
management
Investment
Wellam Ltd. Wholly-owned subsidiary HongKong Yang Jiayong HKD1 100 100
holding
Property
Shantou SEZ Wellam Fty Bldg., Dev. Co. Wholly-owned subsidiary ShanTou Nie Liming USD1500 100 100 617534045
development
Property
Shan Tou Special Economic Zone Real Estate Ltd. Wholly-owned subsidiary ShanTou Yang Kaiwei development HKD300 100 100 617537537
Chen Mao Property
Great Wall Estate Co., Inc Subsidiary of holding company USA USD50 70 70
development
zheng
Investment
Chen Mao
Fresh Peak Holdings Ltd. Wholly-owned subsidiary HongKong and HKD100 100 100
zheng management
Properties
Fresh Peak Investment Ltd. Subsidiary of holding company HongKong Yang Jiayong HKD100 55 55
investment
Investment
Chen Mao
Openice Ltd. Wholly-owned subsidiary HongKong and HKD100 100 100
zheng management
Chen Mao Properties
Barenie Co. Ltd. Subsidiary of holding company HongKong HKD1 80 80
investment
zheng
137
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Reg. captl (in
Reg. Legal （%）of Voting Organization
Name of the subsidiary Types Biz scope ten thousands
place representative share （%） code
yuan).
Chen Mao Investment
Keyear Development Ltd. Wholly-owned subsidiary HongKong HKD100 100 100
holding
zheng
Property
Guangzhou Huangpu Xizun real estate limited company Wholly-owned subsidiary GuangZhou Luo Zichao development HKD3980 100 100 618436826
Shen Yueshen Property
Fresh Peak Real Estate Dev. Construction (Wuhan) Co. Ltd.*① Wholly-owned subsidiary WuHan USD400 55 55 616415810
g development
Commercial
Shenzhen Shenfang Department Store Co. Ltd.*② Wholly-owned subsidiary shenzhen Yang Zhikai goods supplier 1,000 100 100 708410080
Information
Shenzhen CyberPort Co., Ltd *③ Wholly-owned subsidiary shenzhen Yang Jiayong Technology 2,000 70 70 723003141
Advisory
Property
Shenzhen City SPG Bao An Development Ltd.*④ Wholly-owned subsidiary shenzhen Song Gongli development 2,000 100 100 192185179
Construction
Shenzhen Real Estate Consolidated Service Co., Ltd *⑤ Wholly-owned subsidiary shenzhen Wu Chaoliang material, 1,371 100 100
consume goods
Investment in
Shenzhen Shen Fang Industrial Development Co., Ltd.*⑥ Wholly-owned subsidiary shenzhen Lin Mingxian industrial 300 100 100
projects
Construction
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd.*⑦ Wholly-owned subsidiary shenzhen Wang Jupei and decoration 221 100 100
Property
Bekaton Property Limited *⑧ Subsidiary of holding company Australia USD20 60 60
Development
Property
Canada Great Wall ( vancouver) *⑧ Subsidiary of holding company Canada JOD 0.1 75 75
Development
138
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Reg. captl (in
Reg. Legal （%）of Voting Organization
Name of the subsidiary Types Biz scope ten thousands
place representative share （%） code
yuan).
Property
construction
Chen Mao
Paklid Limited *⑧ Wholly-owned subsidiary HongKong and trading of HKD50 100 100
zheng construction
materials
Construction
Shenzhen City Shenfang Construction and Decoration Materials Ltd *⑨ Wholly-owned subsidiary shenzhen Zhang Lemin 268 100 100 192183509
materials
Tourism
Shenzhen ZhongGang Haiyan Enterprise Ltd.*⑩ Subsidiary of holding company shenzhen Luo Jinxing 1,900 68 68 618813265
Restaurant
Domestic
Shenzhen Xing Dongfang Store Ltd.* 11 Wholly-owned subsidiary shenzhen Pei Naidian commercial 2,000 100 100
goods supply
Manufacturin
FengKai in
g and trading
Guangdong Province Fengkai Lain Feng Cement Manufacturing Co., Ltd *12 Subsidiary of holding company GuangDong Chen Jincai USD800 90 90 617845521
Province in cement
products
139
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
8.3 Associates and joint ventures of the entity
Reg. captl（in Relationship with Organization
Reg. Legal ten （%）of the Group code
Name of investee Types Biz scope Voting （%）
place representative thousands share
yuan）
(1)Joint ventures
Guangdong province Huizhou Luofu Hill Cooperative 602
Guangdong Boluo YangHuaiYu Water and other products
mineral water Co.,Ltd Enterprises
Cooperative Guangdong Feng
Fengkai Xinhua Hotel Tourism, Restaurant
Enterprises kai
Cooperative Guangdong USD660
Jiangmen Xinjian Real Estate Co. Ltd. LuoJinXXing Property developing and sales
Enterprises Jiangmen
Cooperative Developing and operating Xi’an trade HK3000
Xi’an Fresh Peak Building Co. Ltd. Xi’an LiangWeiGuo
Enterprises building
Private HKD100
DongYi Property Co.,Ltd. Hong kong Property development and sales
Enterprises
(2)Associates
Limited liability Zheng Elevator, air-condition,
Shenzhen Ronghua JiDian Co.,ltd Shenzhen 500 25 25 19219691-6
company Zhongqing water-electricty fixing and sales
Shenzhen Fresh Peak Property Consultant Limited liability Zhong Xinfa
Shenzhen Property sales and rental 300 20 20 19221684-1
Co.,Ltd company
Limited liability Li Xuemin
Shenzhen Runhua Automobile Trading Co.,Ltd Shenzhen Domestic car sales( not includen little 500 50 50 19220483-2
company
140
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
car), motor
Limited liability Peng Naidian
Shenzhen Dongfang New world Store Co.,Ltd Shenzhen Domestic trade/material supply 3,000 50 50 19222948-2
company
141
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
8.4 Other related parties of the Company
Relationship between other related
Name of other related party Organization code
parties and the Company
Shenzhen Jian'an Group Co., Ltd. The same controlling shareholders 19219737X
Shenzhen Environmental Engineering Science Tech
The same controlling shareholders 668538441
Center Co., Ltd.
Shenzhen General Institute of Architectural Design
The same controlling shareholders 192244260
and Research CO.,LTD
Shenzhen Institute of Building Research Co., Ltd. The same controlling shareholders 665899831
Shenzhen Water Planning & Design Institute The same controlling shareholders 672999996
Shenzhen Small & Medium Enterprises Credit
The same controlling shareholders 670019325
Financing Guarantee Group CO.LTD
142
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Notes to the Financial Statements
for the six months ended 30 June 2013(unaudited) (English translation is for reference only) : Renminbi Yuan
8.5 Related party transactions
(1) Contracting with related parties
Type of assets under Reception date of Expiration date of Basis of pricing of Contracting income recognized in the
Name of main contract issuing party Name of contractor
contracting contracting contracting contracting income current year
The Group Shenzhen Jian'an Group Co., Ltd. Construction 2012-2-1 2013-6-15 Biding 91,900,000.00
（2）Guarantees with related parties
Expiration date of Whether execution of guarantee has
Guarantor Guaranteed party Guaranteed amount Inception date of guarantee
guarantee been completed
The Group Shenzhen ShenFang Group LongGang Development Co.,Ltd 88,400,000.00 2012.3.31 2015.3.31 No
Note: The Company provide credit guarantee for the payment guarantee of its subsidiary-- Shenzhen ShenFang Group LongGang Development Co.,Ltd
(3)Borrowings/loans with related parties
Unit: Yuan
Related party Amount of borrowing / loan Inception date Maturity date Remarks
Borrowed from:
Shenzhen Institute of Building Research Co., Ltd. 70,000,000.00 2012.7.26 2013.7.26 Repayment ahead of time
143
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
8.6 Amounts due from / to related parties
Amounts due from related party
Unit: Yuan
Closing balance Opening balance
Item Name of related parties Bad debt Carrying
Carrying amount Bad debt provision
provision amount
Accounts receivable
Shenzhen Fresh Peak property consultant
1,095,272.50 -- 1,112,375.80 --
Co.,Ltd
Total 1,095,272.50 -- 1,112,375.80 --
Other receivables
Guangdong Province Huizhou Luofu Hill
10,465,168.81 10,465,168.81 10,465,168.81 10,465,168.81
Mineral Water Co.,Ltd
Shenzhen Runhua Automobile Trading Co.,Ltd 3,072,764.42 3,072,764.42 3,072,764.42 3,072,764.42
Canada GreatWall（vancouver）Co.,Ltd 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 18,505,696.20 18,502,668.12 18,631,565.47 18,628,734.59
Shenzhen Shenfang Department Store Co.
237,648.82 189,179.82 237,648.82 189,179.82
Ltd.
Shenzhen Real Estate Consolidated Service
1,086,487.22 927,136.22 1,086,487.22 927,136.22
Co., Ltd.
Shenzhen City Shenfang Construction and
8,327,180.71 8,327,180.71 8,327,180.71 8,327,180.71
Decoration Materials Ltd.
Shenzhen RongHua JiDian Co.,Ltd 475,223.46 -- 475,223.46 --
Xi’an Fresh Peak property management&
8,419,205.19 -- 8,419,205.19 --
Trading Co.,Ltd
Total 152,184,413.48 143,079,136.75 152,310,282.75 143,205,203.22
Amounts due to related party
Unit: Yuan
Item Name of related parties Closing balance Opening balance
Other payables:
144
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd. 598,012.16 598,012.16
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.,
1,867,348.00 1,867,348.00
Ltd.
Shenzhen Cyber Port Co., Ltd 7,346,538.33 7,949,749.26
Shenzhen Shenfang Group BaoAn Developing Co.,Ltd 20,093,445.07 20,093,445.07
Shenzhen Investment Holding Co.,Ltd 63,848,819.24 63,848,819.24
Total 97,722,550.08 98,325,761.01
Interest payable:
Shenzhen Investment Holding Co.,Ltd 16,535,277.94 16,535,277.94
Shenzhen General Institute of Architectural Design and Research
-- 134,166.67
CO.,LTD
Total 16,535,277.94 16,669,444.61
Short-term loans:
Shenzhen General Institute of Architectural Design and Research
-- 70,000,000.00
CO.,LTD
Total -- 70,000,000.00
9 Contingencies
9.1 Contingencies arising from pending litigations or arbitrations and their financial effects
Contingencies arising from pending litigations or arbitrations and their financial effects
① Guoxing Building Lawsuit
On 21 March 1997, the Company signed an agreement “transferring equity of GuoXing Building
agreement” with Baoxing Real Estate Development (Shenzhen) Company limited (hereinafter referred
to as “BaoXing”). According to the agreement specifications, the Company transferred 68% of GuoXing
Building project to BaoXing with the price- Rmb 145,000 thousand. And also, the construction cost –
Rmb 15,000 thousands that the Company owed to GuoXing Building were undertaken by BaoXing. But
after paying Rmb 45 million to the company, Bao Xing hadn’t paid the remaining equity transferring
fund- Rmb 100,000 thousand and the construction cost – 15,000 thousand. The company instituted
legal proceedings against BaoXing. After the trial of the Guangdong High People’s Court on 28
145
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
September 2002, Baoxing had to pay for Rmb 98,948,060.00 and interest to the company according to
the paper of civil judgment –“（2001）YueGaoFaJing – ChuZhi No.7. Upon a second sue of the case in
2003, the judgement remained unchanged.
On 22 Feb 2008, the Company signed an agreement with BaoXing Company. According to the
agreement specifications, BaoXing Company paid for Rmb 15,000 thousand to the Company. And at
the same time, the Company gave up the distribution right and auction disposal right of the LongGang
District BaoXing Building. But BaoXing Company failed to carry out the agreement. On 23 July 2008,
Baoxing Company, the third party – Shenzhen HongMing MuYe Co., Ltd (hereinafter referred to as
HongMing Company) and the Company signed the composition agreement. According to the
agreement specifications, the debts and other responsibilities of BaoXing Company would be
undertaken by HongMing Company. And HongMing Company had to pay for the company Rmb 2,500
thousand and transferred the land-use right of N0. 1514 room (the property developer is Great China
International Group（China）Co., Ltd, hereinafter referred to as Great China Company) of Shenzhen
international exchange plaza instead. In December 2008, the Company received Rmb 2,500 thousand.
Great China Company did not handle with the house property certificate for the Company according to
the agreement. On November 15, 2011, another "Agreement" was signed by the Company, BaoXing
Company, HongMing Company and Great China Company. They agreed that BaoXing Company would
pay RMB 12,500 thousand Yuan in cash to the Company, and the Company receive the money in full,
the agreement signed on 22 Feb, 2008 was seemed to have been fulfilled. In 2011, the company
received RMB 12,500 thousand Yuan from Shenzhen Haotian Equity Investment Fund Management
Co., Ltd- the third-party equity interest commissioned by BaoXing Company.
As of December 31, 2012, the above realized gains and losses have been included in the relevant
year.
② Xi’an project Lawsuit
Xi’an Fresh Pead Holding limited company (hereinafter referred to as “Fresh Peak Company”) was
sino-foreign joint venture set up in Xi’an city. The shareholder of the Fresh Peak Company – Hongkong
Fresh Peak Co., Ltd was the wholly owned subsidiary of the company. And the Hongkong Fresh Peak
Co., Ltd contributed 84% of the Fresh Peak Company’s share- capital in cash. And Xi’an trade building
which was the enterprise under the Xi’an Joint Commission on Commerce and Trade contributed 16%
of the Fresh Peak Company’s share- capital with the land-use right. The core business was property
development. And the project was Xi’an Trade Building. The project was started on 1995-11-28. But the
project had been stopped in 1996 because of the two parties differences on the operating policy of the
project.
146
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
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In 1997, the Xi’an government withdrew the Xi'an Fresh Peak investment project compulsively and
assignned the project to Xi’an Business Tourism Co., Ltd (hereinafter referred to as “Business Tourism
Company”). But the two parties had insulted a lawsuit on compensation. The ShanXi Province High
Peoples Court made a judgement “(2000) SJ-CZ No.25”. The judgement was as follows: 1. Business
Tourism Company had to pay for the compensation Rmb 36,620 thousand to Xi’an Fresh Peak
Company after the judgment entering into force. If the Business Tourism Company failed to pay in time,
it had to pay double debt interests to Xi’an Fresh Peak Company. 2. Xi’an Joint Commission on
Commerce had jointly and severally obligation of the interests of the compensation.
Untill 31 December 2011, the amount of RMB 15,201,000.00 had been called back. Because of Fresh
Peak Company’s application, ShanXi Province High Peoples Court resumed the execution on
September 5, 2011. Now the case is proceeding and there was no any new substantive progress in the
reporting period.
As at 30 June 2013, the book value of the investment of Xi’an Fresh Peak Company was Rmb
12,166,897.84. The provision for investment was Rmb 20,673,831.77. And the amount of debt was
Rmb 8,419,205.19.
③ Luofu Hill project Lawsuit
The company cooperated with Luofu Hill Tourism Company (hereinafter referred to as “Tourism
Company”) on Luofu Hill Tourism project in early years. The company instituted legal proceedings
against Tourism Company because the Tourism Company failed to carry out the agreement. The
judgement which issued by GuangDong Province High Peoples Court on 2007-12-21 was as follows:
①Tourism Company had to pay for Rmb 9,600 thousand to the company in 10 days after the judgment
entering into force.
②Tourism Company should paid the interests for the occupation of Rmb 9,600 thousands with The
People's Bank of China similar loans rate in 10 days after the judgment entering into force. Of which,
the interests for the occupation of Rmb 4,400 thousand were caluated from 1986-5-1 to the day the
Tourism company paid off the debt. The interests for the occupation of Rmb 4100 thousand were
caluated from 1988-2-1 to the day the Tourism Company paid off the debt. The interests for the
occupation of Rmb 1,100 thousand were caluated from 1989-6-15 to the day the Tourism Company
paid off the debt. The interest of Rmb 8,580 thousand that the Tourism Company had paid for to the
company can be deducted from the interest payable.
③Luofushan Administration Committee had to undertake one third of the debts which Luofushan
Tourism was unable to repay;
④Interest of debts would be double if the Tourism Company and Luofushan Administration Committee
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SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
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failed to fulfill their obligations within the designated period of this judgment;
⑤Tourism company undertaked all the litigation fees (RMB 167,714.00). The expense of first instance
and the second instance had to pay to the company during the duration of payment.
There was no any new substantive progress after the judgement announced. The Company applied the
GuangDong Province High People’s Court to supervise implementation on December 17, 2009. The
GuangDong Province High people’s Court issued a document “(2009) YGYZDZ No. 67 to Huizhou
intermediate people’s court and asked the Huizhou intermediate people’s court to close this case in 3
months after receiving the document. Until 17 Mar 2010, Huizhou intermediate people’s court had
finished the evaluation of the land use right of the executor.On 13th October 2010, the land-use right
was acutioned by the national resource department at the price of RMB 51,200 thousand.
According to the relevant provisions of the Huizhou local authorities, auction of land should be
approved by local department of land and be implemented in real estate trading center set up under
Land Branch. Huizhou Intermediate Court has issued an official letter to inform Boluo Land Bureau of
its decision, and notify the relevant assistance. Boluo Land Bureau replied the Huizhou Intermediate
Court that the land for aution would be surveyed and mapped (different from
land evaluation), new planning point would be made by them as the conditions of auction. Boluo Land
Bureau have surveyed and mapped Luofu Hill Tourism site that was sealed. The cadastral map and
land red line chart were submitted to Huizhou Municipal Intermediate People's Court in June 2011.
Detailed regulation is deemed as the basis for the development of planning points, while the
preparation of detailed regulation relies on Luofushan Administration Committee. Because the planning
points were not made, the land failed to be auctioned.
As at 30 June 2013, the book value of the Company’s creditor rights on Tourism Company was Rmb
9,600,000.00. The provision for bad debt was Rmb 4,800,000.00.
9.2 Contingent liabilities arising from providing debt guarantees to other entities and their
financial effects
Shenfang Shanglin Garden North district has come into construction. The project belongs to
the Company's wholly-owned subsidiaries—Shenzhen ShenFang Group LongGang Development Co.,
Ltd (hereinafter referred to Longgang Company). According to the provisions
of Municipal Housing Authority, the Employer and the Contractor shall prescribe peer payment
and performance guarantee; this is necessary for the project to complete project application formalities.
So Longgang Company should conduct performance guarantee as soon as possible. According to the
requirements of relevant institution, the Company is required to provide credit guarantees for
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performance guarantee. The amount of guarantees is RMB 88,400,000.00. (See March 31,
2012 cninfo "external security bulletin”.)
10 Commitments
10.1 Significant commitments
Item Amount for the current period Amount for the prior period
Capital commitments that have been entered into but have not
been recognized in the financial statements
- Significant outsourcing contracts 1,072,377,165.51 1,349,084,786.45
Total 1,072,377,165.51 1,349,084,786.45
10.2 Fulfillment progress of previous commitments
The amount of significant outsourcing contracts is RMB 294,683,013.66, which was paid during the
report period and has been entered into the prior period but has not been recognized in the financial
statements.
11 Other Significant Events
Other
Dong Hu Di Jing Building (with Parcel No.H312-0061) is located in Luohu District. The area is
7,970.08 s.q.m., construction land area is 5,889.7 s.q.m. and area of structure 59,486 s.q.m. Its volume
fraction is 10.1. In November 2006, the Company got the land use rights of Dong Hu Di Jing Building
Project. In September and December 2008, the
Company has received a letter from the immediate branch of Shenzhen Urban
Planning and the Shenzhen Municipal Planning Bureau (Shen Gui [2008]1069, Shen
Gui [2008] 2517).The Company was told that the municipal road works may partially occupied the red
line of the parcel of land of Dong Hu Di Jing Building Project and the development of the project was
required to suspend. On 20 January 2011, Shenzhen Urban Planning and Land Resources
Committee (hereinafter referred to as the Comission) issued "decision on disposal of idle land"Shen
Gui Land Yiqu idle [2011] No. 009. According to the decision, the government will take back land use
rights by payment.
Dong Hu Di Jing Building (Parcel No. H312-0061) is located at the junction of Buxin Road and Aiguo
Road in Luohu District, Shenzhen, with a floor area of 7,970.08 s.q.m., a construction land area of
5,889.7 s.q.m., a plot ratio of 10.1 and a plot-ratio construction area of 59,486 s.q.m. In November
2006, the Company obtained the land use right of the Dong Hu Di Jing Building Project. In September
and December 2008, the Company received letters respectively from the direct branch of Shenzhen
Municipal Planning Bureau and later Shenzhen Municipal Planning Bureau itself (SGZSH [2008] No.
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1069 and SGH [2008] No. 2517). The Company was told by those letters that some municipal road
project might partially occupy the red line of the Dong Hu Di Jing Building Project and the Company
was required to suspend development of its project. On 20 January 2011, the first administration
directly under Shenzhen Urban Planning and Land Resources Commission (hereinafter referred to as
the “UPLR Commission”) issued a “Decision on Idle Land” (SGTYJ [2011] No. 009). According to the
Decision, the government would take back the land use right of the parcel with compensation.
At the beginning of 2012, the UPLR Commission and the Company entrusted or hired intermediary
agencies to evaluate the land parcel. In early May, the first administration directly under the UPLR
Commission found it rather difficult to determine the land compensation, pay with the government
budgets and operate, so it notified the Company that the municipal road project would not occupy the
land parcel and suggested the Company continuing to work on the feasibility of the Dong Hu Di Jing
Building Project through revising the design under the current conditions. If the project was considered
feasible, the first administration would take back the “Decision on Idle Land” and the Company could
carry on with the project by adjusting the planning key points based on the current status of the project
and the design plan. At the end of July 2012, the Company signed the official design contract with
Shenzhen General Institute of Architectural Design and Research Co., Ltd.. In early September 2012,
the first draft of design was completed and submitted to the first administration for review and approval.
In the middle of November 2012, the Company submitted the revised design plan and planning key
points to the first administration. Upon review, the first administration decided to withdraw the “Decision
on Idle Land” first. In May 2013, the first administration reported its decision to the UPLR Commission
and has not received reply.
The Company will kick off preparations for the project as soon as the “Decision on Idle Land” is
withdrawn.
12 Notes to Items in the Financial Statements of the Company
12.1 Accounts receivable
(1) Accounts receivable
Unit:Yuan
Closing balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
Accounts receivable of which provision for bad
-- -- -- --
debts is made according to Portfolio
Accounts receivable of which provision for bad
12,798,373.13 100 6,301,854.02 49.24
debts is of individually insignificant
Total 12,798,373.13 100 6,301,854.02 49.24
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Financial report for the six months ended 30 June 2013
(Continued)
Closing balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
Accounts receivable of which provision for bad
-- -- -- --
debts is made according to Portfolio
Accounts receivable of which provision for bad
19,965,193.98 100 6,301,854.02 31.56
debts is of individually insignificant
Total 19,965,193.98 100 6,301,854.02 31.56
Accounts receivable of which provision for bad debts is of individually significant
□suitability√unsuitability
Portfolio 1 by Aging analysis
□suitability √unsuitability
Portfolio 2 by percentage
□suitability √unsuitability
Protfolio 3 by other methods
□suitability √unsuitability
Provisions of bad debts that is individually insignificant
√suitability □ unsuitability
Content of accounts receivable Carrying amount Amount of bad debt Proportion of provision（%） Reasons for the provision
House pay to be collected 12,277,769.13 6,301,854.02 51.33 A separate provision is
established according to the
recoverability of each
Rental to be collected 520,604.00 -- --
receivales with long aging and
little retrievability.
Total 12,798,373.13 6,301,854.02 49.24
(2) No any significant reversals and collections during the current period
(3) There were no any significant accounts receivables written off in the current period.
(4) No amount due from shareholders at least 5% of the Company’s shares with voting power in the
reporting period
(5) Top 5 entities with the largest balances of accounts receivable
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Unit: Yuan
Relationship with the Proportion of the amount to the
Name of entity Amount Age
Group total AR (%)
Corporation No.1 Un-related party 1,809,832.84 Over 3 years 14.14
Individual No.1 Un-related party 1,200,000.00 Over 3 years 9.38
Corporation No.2 Associate 1,095,272.50 Over 3 years 8.56
Individual No.2 Un-related party 876,864.11 Over 3 years 6.85
Individual No.3 Un-related party 824,527.80 Over 3 years 6.44
Total 5,806,497.25 45.37
(6) Receivables due from related parties
Unit: Yuan
Name of entity Relationship with the Group Amount （%）in receivables
Shenzhen Fresh Peak property consultant
Associate 1,095,272.50 8.56
Co.,Ltd
Total 1,095,272.50 8.56
(7) There were no any accounts receivables which had been terminated recognization.
12.2 Other receivables
(1) Other receivables
Unit: Yuan
Closing balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
Other receivables of which provision for bad debts
1,153,502,426.18 97.73 818,545,417.98 70.96
is of individually significant
Other receivable of which provision for bad debts
is of individually significant
Other receivables of which provision for bad debts
26,778,207.00 2.27 12,628,565.94 47.16
is of individually insignificant
Total 1,180,280,633.18 100.00 831,173,983.92 70.42
(Continued)
Opening balance
Category Carrying amount Bad debt provision
Amount (%) Amount (%)
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SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
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Other receivables of which provision for bad debts
1,153,502,426.18 98.19 818,545,417.98 70.96
is of individually significant
Other receivable of which provision for bad debts
is of individually significant
Other receivables of which provision for bad debts
21,240,357.02 1.81 12,628,565.94 59.46
is of individually insignificant
Total 1,174,742,783.20 100.00 831,173,983.92 70.75
Bad debt provision of other receivables which is of individually significant
√suitability □ unsuitability
Unit: Yuan
Proportion of
Content of accounts receivable Carrying amount Amount of bad debt Reasons for the provision
provision（%）
Other receivables between subsidiares
that are included in consolidated 1,006,978,545.23 677,154,231.02 67.25 A separate provision is
statement established according to
Other receivables between subsidiares the recoverability of each
that are not included in consolidated 120,994,319.55 120,994,319.55 100 receivales with long aging
statement and little retrievability
Others 25,529,561.40 20,396,867.41 79.90
Total 1,153,502,426.18 818,545,417.98 70.96
Portfolio 1 by Aging analysis
□suitability √unsuitability
Portfolio 2 by percentage
□suitability √unsuitability
Protfolio 3 by other methods
□suitability √unsuitability
Provisions of bad debts that is individually insignificant
√suitability □ unsuitability
Unit: Yuan
Proportion of provision
Content of other receivables Carrying amount Amount of bad debt Reasons for the provision
（%）
A separate provision is
Other receivables between 2,420,150.00 -- -- established according to
subsidiares that are included
153
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
in consolidated statement
Other receivables between
the recoverability of each
subsidiares that are not
1,324,136.04 1,116,316.04 84.31 receivales with long aging
included in consolidated
and little retrievability
statement
Others 23,033,920.96 11,512,249.90 49.98
Total 26,778,207.00 12,628,565.94 47.16
(2) There were no any reversals and collections during the current period .
(3) There were no any other significant receivables Written off for in the current period.
(4) There were no any other receivables due from shareholders at least 5% of the Company’s shares
with voting power in the reporting period
(5) Top 5 entities with the largest balances of other receivables
Unit: Yuan
Relationship with Proportion of the amount to
Name of entity Amount Age
the Group the total OR (%)
3,416,239.85 Within 1 year 0.29
517,650.00 1-2 years 0.04
Fresh Peak Enterprise Co., Ltd Subsidiary
1,493,155.79 2-3 years 0.13
548,832,255.48 Over 3 years 46.5
49,146,106.56 Within 1 year 4.16
Shenzhen ShenFang Group LongGang 42,017,301.06 1-2 years 3.56
Subsidiary
Development Co.,Ltd 6,160,754.80 2-3 years 0.52
189,279,897.97 Over 3 years 16.04
American Great Wall Co.,Ltd Subsidiary 101,379,954.81 Over 3 years 8.59
Canada Great Wall(vancouver) Co.,Ltd Subsidiary 89,035,748.07 Over 3 years 7.54
Shenzhen City Shenfang Free Trade
Subsidiary 32,392,459.91 Over 3 years 2.74
Trading Ltd
Total 1,063,671,524.30 90.11
(7) Receivables due from related parties
Unit: Yuan
Name of entity Relationship with the Group Amount （%）in receivables
154
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Name of entity Relationship with the Group Amount （%）in receivables
Fresh Peak Enterprise Co., Ltd. Subsidiary 554,259,301.12 46.96
Shenzhen ShenFang Group LongGang
Subsidiary 286,604,060.39 24.28
Development Co.,Ltd
American Great Wall Co.,Ltd Subsidiary 101,379,954.81 8.59
Canada Great Wall(vancouver) Co.,Ltd Subsidiary 89,035,748.07 7.54
Shenzhen City Shenfang Free Trade Trading
Subsidiary 32,392,459.91 2.74
Ltd.
Shenzhen Lain Hua Industry and Trading Co.
Subsidiary 16,162,762.46 1.37
Ltd.
Bekaton Property Limited Subsidiary 12,559,290.58 1.06
Paklid Limited Subsidiary 11,072,100.19 0.94
Guangdong province Huizhou Luofu Hill
Joint venture 10,465,168.81 0.89
Mineral Water Co.,Ltd
Shenzhen City Shenfang Construction and
Subsidiary 8,327,180.71 0.71
Decoration Materials Ltd.
Shenzhen City Shenfang Investment Ltd. Subsidiary 5,897,431.45 0.5
Shenzhen Runhua Automobile trading Co.,Ltd Associate 3,072,764.42 0.26
Shenzhen Real Estate Consolidated Service
Subsidiary 1,086,487.22 0.09
Co., Ltd.
Shenzhen Ronghua JiDian Co.,ltd Associate 475,223.46 0.04
Shenzhen Shenfang Department Store Co.
Subsidiary 237,648.82 0.02
Ltd
Total 1,133,027,582.42 95.99
(7) There were no any other receivables which had been terminated recognization in the accounting
year.
12.3 Long-term equity investments
Unit: Yuan
Shenzhen Petrel Hotel Co.
Cost method 20,605,047.50 20,605,047.50 Changes [Increase -- 20,605,047.50
Ltd. Name of investee Investment cost Opening balance Closing balance
method /decrease]
Shenzhen City Shenfang
Shenzhen City Property Cost method 9,000,000.00 9,000,000.00 -- 9,000,000.00
Investment Ltd. Cost method 12,821,791.52 12,821,791.52 -- 12,821,791.52
Management Ltd.
Fresh Peak Enterprise Ltd. Cost method 556,500.00 556,500.00 -- 556,500.00
155
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Fresh Peak Holdings Ltd.Estate Cost method 20,824,545.77 22,717,697.73 -- 22,717,697.73
Cost method 5,958,305.26 5,958,305.26 -- 5,958,305.26
ConsolidatedSpecial Economic
Shenzhen Service Co., Ltd.
Zone Limited Estate (Group) Cost method 201,100.00 201,100.00 -- 201,100.00
Cost method 20,000,000.00 20,000,000.00 -- 20,000,000.00
Guangzhou Property and
Bekaton Property Limited Cost method 906,630.00 906,630.00 -- 906,630.00
Estate Co., Ltd.
Shenzhen Tefa Real Estate
Shenzhen Service Co.,Tung Cost method
Consolidated Zhen Ltd. Cost method
8,180,003.63 8,180,003.63 -- 8,180,003.63
11,332,321.45 11,332,321.45 -- 11,332,321.45
Engineering Ltd
Shenzhen Xin Dongfang Store
American Great wall Co.,Ltd Cost method
Cost method 18,500,000.00
1,435,802.00 18,500,000.00
1,435,802.00 ---- 18,500,000.00
1,435,802.00
Ltd.
Shenzhen CityCityShenfang Free
Shenzhen Shenfang Cost method 4,750,000.00 4,750,000.00 -- 4,750,000.00
Ltd.
Trade Trading and Decoration
Construction Cost method 2,680,000.00 2,680,000.00 -- 2,680,000.00
ShenzhenLtd.City Hua Zhan
Construction Management Cost method 6,000,000.00 6,000,000.00 -- 6,000,000.00
Shenzhen Shenfang
Ltd. Cost method 9,500,000.00 9,500,000.00 -- 9,500,000.00
Department Store Co. Ltd.
Shenzhen CyberPort Co., Ltd. Cost method
Shenzhen City Car Rental Ltd Cost method 11,809,500.00
14,000,000.00 6,495,225.00
12,401,018.42 ---- 6,495,225.00
12,401,018.42
QiLu Co.,LtdShenFang BaoAn Cost method
ShenZhen 212,280.00 212,280.00 -- 212,280.00
Cost method 19,000,000.00 19,000,000.00 -- 19,000,000.00
Beijing Shenfang Property
Cost method 500,000.00 500,000.00 -- 500,000.00
Shantou Fresh Ltd.
Management Peak Building Cost method
68,731,560.43 58,547,652.25 -- 58,547,652.25
Hua Industry
Shenzhen LainSmall&medium
Shantou Cost method 13,458,217.05 13,458,217.05 -- 13,458,217.05
and Trading Co. Ltd. Finacing
Enterprises 12,000,000.00 12,000,000.00 -- 12,000,000.00
Shenzhen Co.CityLtd.SPG Long
Cost method 30,850,000.00 30,850,000.00 -- 30,850,000.00
Gang Development Ltd.
Total 457,308,490.54 442,258,326.71 -- 442,258,326.71
Beijing Fresh Peak Property
Development Management Cost method 64,183,888.90 64,183,888.90 -- 64,183,888.90
Limited Company
Shenzhen Shenfang Car Park
Cost method 29,750,000.00 29,750,000.00 -- 29,750,000.00
Ltd.
Guangdong province Huizhou
Luofu Hill Mineral Water Equity method 9,969,206.09 9,969,206.09 -- 9,969,206.09
Co.,Ltd
Fengkai Xinhua Hotel Equity method 9,455,465.38 9,455,465.38 -- 9,455,465.38
Shenzhen Runhua Automobile
Equity method 1,445,425.56 1,445,425.56 -- 1,445,425.56
trading Co.,Ltd
Shenzhen Ronghua JiDian
Equity method
Co.,ltd 1,250,000.00 1,403,848.97 -- 1,403,848.97
Shenzhen Shen Fang
Industrial Development Co., Cost method 4,500,000.00 4,500,000.00 -- 4,500,000.00
Ltd
Shenzhen ZhongGang Haiyan
Cost method 12,940,900.00 12,940,900.00 -- 12,940,900.00
Enterprise Ltd.
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Financial report for the six months ended 30 June 2013
(Continued)
Proportion of Proportion of
Explanation of the Provision for Cash
ownership voting power in Provision for
Name of investee inconsistency between impairment losses dividend for
interest held the investee impairment losses
these two proportions for the period the period
(%) (%)
Shenzhen City Property Management Ltd. 95 95 -- -- --
Shenzhen Petrel Hotel Co. Ltd. 68.10 68.10 -- -- --
Shenzhen City Shenfang Investment Ltd. 90 90 -- -- --
Fresh Peak Enterprise Ltd. 100 100 -- -- --
Fresh Peak Holdings Ltd. 100 100 -- -- --
Shenzhen Special Economic Zone Real Estate (Group) Guangzhou Property and Estate Co., Ltd. 100 100 -- -- --
Shenzhen Zhen Tung Engineering Ltd 73 73 -- -- --
American Great wall Co.,Ltd 70 70 -- -- --
Shenzhen City Shenfang Free Trade Trading Ltd. 95 95 -- -- --
Shenzhen City Hua Zhan Construction Management Ltd. 75 75 -- -- --
Shenzhen City Car Rental Ltd. 55 55 -- -- --
QiLu Co.,Ltd 20 20 -- -- --
Beijing Shenfang Property Management Ltd. 10 10 -- -- --
Shenzhen Lian Hua Industry and Trading Co. Ltd. 95 95 -- -- --
Shenzhen City SPG Long Gang Development Ltd. 95 95 -- -- --
Beijing Fresh Peak Property Development Management Limited Company 75 75 -- -- --
157
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Financial report for the six months ended 30 June 2013
Proportion of Proportion of
Explanation of the Provision for Cash
ownership voting power in Provision for
Name of investee inconsistency between impairment losses dividend for
interest held the investee impairment losses
these two proportions for the period the period
(%) (%)
Shenzhen Shenfang Car Park Ltd. 70 70 -- -- --
Guangdong province Huizhou Luofu Hill Mineral Water Co.,Ltd 9,969,206.09 -- --
Fengkai Xinhua Hotel 9,455,465.38 -- --
Shenzhen Runhua Automobile trading Co.,Ltd 50 50 1,445,425.56 -- --
Shenzhen Ronghua JiDian Co.,ltd 25 25 1,076,954.64 -- --
Shenzhen Shen Fang Industrial Development Co., Ltd 100 100 4,500,000.00 -- --
Shenzhen ZhongGang Haiyan Enterprise Ltd. 68 68 12,940,900.00 -- --
Shenzhen Real Estate Consolidated Service Co., Ltd. 100 100 5,958,305.26 -- --
Paklid Limited 100 100 201,100.00 -- --
Bekaton Property Limited 60 60 906,630.00 -- --
Shenzhen Tefa Real Estate Consolidated Service Co., Ltd. 100 100 8,180,003.63 -- --
Shenzhen Xin Dongfang Store Ltd. 100 100 18,500,000.00 -- --
Shenzhen City Shenfang Construction and Decoration Materials Ltd. 100 100 2,680,000.00 -- --
Shenzhen Shenfang Department Store Co. Ltd. 95 95 9,500,000.00 -- --
Shenzhen CyberPort Co., Ltd 70 70 -- -- --
ShenZhen ShenFang BaoAn developmentCo.,Ltd 95 95 -- -- --
Shantou Fresh Peak Building 100 100 58,547,652.25 -- --
158
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Financial report for the six months ended 30 June 2013
Proportion of Proportion of
Explanation of the Provision for Cash
ownership voting power in Provision for
Name of investee inconsistency between impairment losses dividend for
interest held the investee impairment losses
these two proportions for the period the period
(%) (%)
Shantou Small&medium Enterprises Finacing Guarantee Co. Ltd. 10 10 -- -- --
Total 143,861,642.81 -- --
159
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Financial report for the six months ended 30 June 2013
12.4 Operating income and costs
(1) Operating income and operating costs
Unit: Yuan
Item Amount for the current period Amount for the prior period
Principal operating income 25,288,842.36 35,178,901.24
Total of operating income 25,288,842.36 35,178,901.24
Operating costs 11,056,048.84 13,073,029.87
(2)Principal operating activities (classified by industries)
Unit: Yuan
Amount for the current period Amount for the prior period
Name of industry
Operating income Operating costs Operating income Operating costs
Real estate -- -- 2,908,357.00 1,771,535.60
Leasing 24,002,260.93 10,728,917.84 31,112,312.62 10,986,640.28
Others 1,286,581.43 327,131.00 1,158,231.62 314,853.99
Total 25,288,842.36 11,056,048.84 35,178,901.24 13,073,029.87
(3)Principal operating activities (classified by product)
Unit: Yuan
Amount for the current period Amount for the prior period
Name of industry
Operating income Operating costs Operating income Operating costs
Real estate -- -- 2,908,357.00 1,771,535.60
Others 25,288,842.36 11,056,048.84 32,270,544.24 11,301,494.27
Total 25,288,842.36 11,056,048.84 35,178,901.24 13,073,029.87
(4) Principal operating activities (classified by geographical areas)
Unit: Yuan
Amount for the current period Amount for the prior period
Name of geographical area
Operating income Operating costs Operating income Operating costs
Shenzhen 25,288,842.36 11,056,048.84 35,178,901.24 13,073,029.87
Total 25,288,842.36 11,056,048.84 35,178,901.24 13,073,029.87
(5) Operating income from the Company’s top 5 customers
Unit: Yuan
160
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Proportion to total operating income of the
Name of customers Operating incomet for the current period
Company (%)
Corporation unit No.1 2,005,552.00 8.36
Corporation unit No.1 2,116,610.00 8.82
Corporation unit No.2 580,008.00 2.42
Corporation unit No.3 703,314.00 2.93
Corporation unit No.4 445,208.68 1.85
Total 5,850,692.68 24.38
14.5 Supplementary information to the cash flow statement
Unit: Yuan
Item Amount for the current period Amount for the prior period
(1) Reconciliation of net profit to cash flows from operating activities:
Net profit -9,163,660.55 2,217,279.08
Add: Depreciation of fixed assets, bio-assets, and natural gas 10,632,989.38 10,620,565.93
Amortization of intangible assets 113,799.98 49,399.98
Amortization of long-term deferred expenses 28,265.10 28,265.10
Losses on disposal of fixed assets, intangible assets and other
4,644.48
long-term assets(deduct: gains)
Financial expenses (deduct: gains) 6,795,730.37 6,109,875.73
Decrease in inventories (deduct: increase) -197,342,844.65 -83,958,751.46
Decrease in operating receivables (deduct: increase) 3,607,115.56 -76,326,366.64
Increase in operating payables (deduct: decrease) 640,954,150.55 38,497,497.20
Net cash flows from operating activities 455,630,190.22 -102,762,235.08
(2) Investing and financing activities that do not affect cash receipt and
-- --
payment
(3)Net increase in cash and cash equivalents:
Cash at the end of the period 431,672,122.54 94,764,497.01
Less: cash at the beginning of the period 190,825,250.83 144,779,100.65
Net increase in cash and cash equivalents 240,846,871.71 -50,014,603.64
13. Supplementary Materials
13.1 Breakdown non-recurring profit or loss
161
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Unit: Yuan
Items Amount for the current period Remarks
Profit from disposal of
Profit or loss on disposal of non-current assets 3,448,226.60
office building
Other non-operating income or expenses other than the above -18,550.33
Less: tax effects -864.06
Total 3,430,540.33
The Group defines items as non-recurring profit or loss items according to “Information Disclosure and
Presentation Rules for Companies Making Public Offering of Securities No.1---Non-recurring Profit or
Loss”(CSRC No.[2008]43)
□suitability √unsuitability
13.2 Date differences between domestic and foreign accounting standards
(1) Differences between amounts prepared under international accounting standards and China
Accounting Standards (CAS)
Net profit Net assets
Amount for the current
Amount for the prior period Closing balance Opening balance
period
In accordance with CASs 13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
Ajusted items and amount in accordance with IFRS
In accordance with IFRS 13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
(2)Differences between amounts prepared under foreign accounting standards and China Accounting
Standards (CAS)
Net profit Net assets
Amount for the current
Amount for the prior period Closing balance Opening balance
period
In accordance with CASs 13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
Ajusted items and amount in accordance with FAS
In accordance with FAS 13,050,340.37 40,084,098.09 1,649,642,412.95 1,635,376,098.73
(3)Note to date differences between domestic and foreign accounting standards
13.3 Return on net assets and earning per share (EPS)
Units:Yuan
162
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Profit for the reporting EPS
Weighted average returned on net assets (%)
period（%） Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders of
0.79 0.0129 0.0129
the Company
Net profit after deduction of non-recurring profits or
losses attributable to ordinary shareholders of the 0.59 0.0095 0.0095
Company
13.4 Abnormal financial statements items and description of reasons
(1) Items in the balance sheet
Monetary funds had RMB 613,271,353.69 as the closing balance at June 30, 2013, 23.44% of increase than the
opening of the year. The reason for such increase is new house pay collected during the current period.
Prepayments in the balance sheet had RMB 82,590,149.74 as the closing balance at June 30, 2013, 108.15%
of increase than the opening of the year. The reason for such increase is: the un-settled prepayment of
engineering project from the subsidiary company- Shenzhen Zhen Tung Engineering Ltd.; and the un-settled
prepayment of selling expenses for Project Chuanqishan.
The net carrying amount inventories in the balance sheet had RMB 2,772,285,028.20 as the closing balance
at June 30, 2013, 14.00% of increase than the opening of the year. The reason for such increase is increased
input of Project Shenfang chuanqishan, Project Shenfang Shanglin Garden and Shantou Yuejingdongfang.
Other current assets had RMB 25,904,506.01 as the closing balance at June 30, 2013, 232.94%of increase
than the opening of the year. The reason for such increase is that the taxation for pre-sale payments and
receipts for projects was paid during the current period.
Long-term deferred assets in the balance sheet had RMB 712,068.64 as the closing balance at June 30, 2013,
66.64% of increase than the opening of the year. The reason for such increase is the increased renovation
costs of dormitory.
Other non-current assets had RMB 735,190.76 as the closing balance at June 30, 2013, 69.54% of decrease
than the opening of the year. The reason for such decrease is that during the current period, prepaid software
fees were transferred to intangible assets and fitment fees was transferred to fixed assets
Short-term loans had RMB 16,000,000.00 as the closing balance at June 30, 2013, 83.33% of decrease than
the opening of the year. The reason for such decrease is that the entrusted loan was repaid during the current
period.
Advance from customers had RMB 1,134,654,627.94 as the closing balance at June 30, 2013, 178.65% of
increase than the opening of the year. The reason for such increase is advance payment from housing buyers
during the current period.
163
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
Employee benefits payable had RMB 26,278,551.66 as the closing balance at June 30, 2013, 28.35% of
decrease than the opening of the year. The reason for such decrease is that accrued wages and bonuses last
year were paid during the current period.
Taxes payable had RMB 6,971,655.21 as the closing balance at June 30, 2013, 65.07% of decrease than the
opening of the year. The reason for such decrease is final settlement of enterprise income tax of 2012.
(2) Items in the Income Statement, Cash Flow Statement
Operating income had RMB 320,687,860.60 during the current period, 28.32% of decrease than the prior
period. The reason for such decrease is that although Chuanqishan Project has been started to be sold, but
revenue has not yet been recognized for the current period.
Business taxes and surcharges had RMB 24,535,155.90 during current period, 45.13% of decrease than the
prior period. The reason for such decrease is that operating income decreased.
The reason for the decrease of financial expense is increased capitalized interest expenses.
Operating profit had RMB 15,658,241.78 during the current period, 70.61% of decrease than the prior period.
The reason for such decrease is mainly the decrease of operating revenue.
The reason for the increase of non-operating income is that the Company disposed the Cheuk Nang Center
Building.
The reason for the increase of other comprehenseive income is that exchange rate fluctuated.
Cash received from sales of goods or rendering of services had RMB 1,038,782,095.16 during the current
period, 162.75% of increase than the prior period. The reason for such increase is collection of sales from
housing buyers.
Other cash receipts relating to operating activities had RMB 66,253,051.17 during the current period in 2013,
88.33% of increase than the prior period in 2012. The reasons for such increase are the increased short-term
deposit and withdraw of security deposit of morgatge.
Cash paid for goods and services had RMB 551,706,829.05 during current period, 54.68% of increase than
the prior period. The reason for such increase is the increased input of Project Shenfang chuanqishan, Project
Shenfang Shanglin Garden and Shantou Yuejingdongfang during the current period.
Cash flow from investing activities had RMB 3,751,823.13 during current period, 256.70% of increase than the
prior period. The reason for such increase is that the Company disposed the office Building.
Cash flow from financing activities had RMB -223,496,227.17 during current period, decreasing sharply than
the prior period. The reason for such decrease is mainly that the Company obtained less cash from bank loans,
decreased by 87.68% than the prior period, and meantime repaid bank borrowings using cash, increased
by 97.40%.
164
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd.
Financial report for the six months ended 30 June 2013
IX. Documents for Reference
1. Financial statements signed and sealed by legal representative, principal of accounting work, and
manager of finance department.
2. In the reporting period, all originals of the Company’s documents and public notices have been
publicly disclosed on China Securities Journal, Ta Kung Pao.
165
