ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE &
PROPERTIES (GROUP) CO., LTD.
THIRD QUARTER REPORT 2018
2018-082
October 2018
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Shenzhen Special Economic Zone Real Estate &
Properties (Group) Co., Ltd. (together with its consolidated subsidiaries, the “Company”,
except where the context otherwise requires) hereby guarantee the factuality, accuracy and
completeness of the contents of this Report and its summary, and shall be jointly and severally
liable for any misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Zhou Jianguo, chairman of the Company’s Board, Chen Maozheng, the Company’s General
Manager, Tang Xiaoping, the Company’s head for financial affairs, and Qiao Yanjun, head of
the Company’s financial department (equivalent to financial manager) hereby guarantee that
the Financial Statements carried in this Report are factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2018 31 December 2017 Change (%)
Total assets (RMB) 4,447,438,366.38 3,989,263,981.96 11.49%
Equity attributable to the listed
3,199,567,123.08 2,828,242,120.98 13.13%
company’s shareholders (RMB)
Q3 2018 YoY change (%) Q1-Q3 2018 YoY change (%)
Operating revenue (RMB) 282,588,259.93 21.13% 1,600,129,891.28 65.89%
Net profit attributable to the listed
44,934,281.00 263.65% 374,000,365.53 150.03%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 44,760,056.43 262.15% 373,889,817.10 150.19%
exceptional items (RMB)
Net cash generated from/used in
-- -- 664,798,431.71 431.32%
operating activities (RMB)
Basic earnings per share
0.0444 263.93% 0.3697 149.97%
(RMB/share)
Diluted earnings per share
0.0444 263.93% 0.3697 149.97%
(RMB/share)
Weighted average return on equity
1.49% 1.04% 12.41% 6.91%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2018 Note
Gain or loss on disposal of non-current assets (inclusive of
-19,206.48
impairment allowance write-offs)
Non-operating income and expense other than above 166,604.39
Less: Income tax effects 36,849.48
Total 110,548.43 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders 76,443 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Shareholdi Shares in pledge or frozen
Nature of Number of
Name of shareholder ng Restricted shares
shareholder shares Status Shares
percentage
Shenzhen Investment Holdings State-owned
63.55% 642,884,262
Co., Ltd legal person
Shandong Gold Financial
Domestic
Holding Capital Management
non-state-own
Co., Ltd. － Shandong Gold 1.02% 10,300,000
ed legal
Financial Holding Sustaining
person
Fund 1
Domestic
Lu Zhigao 0.32% 3,246,949
natural person
Domestic
Tan Shiqing 0.13% 1,286,701
natural person
Domestic
Yang Shuilian 0.13% 1,273,700
natural person
Domestic
Yang Jianxiong 0.12% 1,255,750
natural person
Central Huijin Asset State-owned
0.12% 1,165,500
Management Co., Ltd. legal person
Domestic
Peng Wei 0.11% 1,129,082
natural person
Foreign
Wu Haoyuan 0.11% 1,109,300
natural person
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Guotai Junan Securities (Hong Foreign legal
0.10% 1,015,683
Kong) Limited person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
RMB-denominate
Shenzhen Investment Holdings Co., Ltd 642,884,262 642,884,262
d ordinary stock
Shandong Gold Financial Holding Capital Management
RMB-denominate
Co., Ltd.－Shandong Gold Financial Holding Sustaining 10,300,000 10,300,000
d ordinary stock
Fund 1
RMB-denominate
Lu Zhigao 3,246,949 3,246,949
d ordinary stock
RMB-denominate
Tan Shiqing 1,286,701 1,286,701
d ordinary stock
RMB-denominate
Yang Shuilian 1,273,700 1,273,700
d ordinary stock
Domestically
Yang Jianxiong 1,255,750 listed foreign 1,255,750
stock
RMB-denominate
Central Huijin Asset Management Co., Ltd. 1,165,500 1,165,500
d ordinary stock
RMB-denominate
Peng Wei 1,129,082 1,129,082
d ordinary stock
Domestically
Wu Haoyuan 1,109,300 listed foreign 1,109,300
stock
Domestically
Guotai Junan Securities (Hong Kong) Limited 1,015,683 listed foreign 1,015,683
stock
The Company has found no related parties or acting-in-concert parties
Related or acting-in-concert parties among shareholders
as defined in the Administrative Measures for Shareholding Changes
above
in Listed Companies among the shareholders above.
The fourth shareholder holds all his shares in the Company in his
Top 10 ordinary shareholders involved in securities margin accounts of collateral securities for margin trading. And the third
trading (if any) shareholder holds some of his shares in the Company in such
accounts.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Part III Significant Events
I Changes in Key Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Unit: RMB
Key income statement
Q1~Q3 2018 Q1~Q3 2017 Change (%) Explanation of why
items
Rise in property sales carryforwards to
Operating revenue 1,600,129,891.28 964,594,407.66 65.89%
the current period
Rise in property sales carryforwards to
Taxes and surcharges 316,767,417.97 30,671,236.84 932.78%
the current period
Rise in sales agent fees and
Selling expense 41,241,971.51 12,382,407.96 233.07% commissions as a result of the opening
of new developments for sale
Expensing of labor cost and other costs
Administrative expense 44,506,615.17 33,480,030.90 32.93% upon the completion of the Cuilinyuan
project
Lower interest expense on borrowings
Finance costs -10,289,373.08 -3,137,412.25 -227.96% and higher interest income on term
deposits
Key cash flow
Q1~Q3 2018 Q1~Q3 2017 Change (%) Explanation of why
statement items
Net cash generated Rise in sale of commodities
from/used in operating 664,798,431.71 -200,649,011.12 431.32%
activities
Net cash generated
Purchase of a 600-million six-month
from/used in investing -599,463,465.47 8,643,770.86 -7035.21%
bank structured deposit
activities
Net cash generated Repayment of bank loans
from/used in financing -136,127,057.86 -18,576,803.21 -632.78%
activities
Key balance sheet
30 September 2018 31 December 2017 Change (%) Explanation of why
items
Purchase of a 600-million six-month
Other current assets 606,889,159.07 11,369,544.80 5237.85%
bank structured deposit
Short-term borrowings 35,048,803.88 104,207,653.64 -66.37% Decline in commercial acceptance bill
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
discounting and the use of such bills as
pledge for loans
Current portion of Repayment of bank loans due within
17,773,200.00 64,000,000.00 -72.23%
non-current liabilities one year
Long-term borrowings 13,340,200.00 82,000,000.00 -83.73% Repayment of bank loans
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Since Shenzhen Investment Holdings Co., Ltd, the controlling shareholder of the Company, is
planning a significant event that involves the Company, trading of the Company’s stocks (A-stock:
stock name: SPG, stock code: 000029; B-stock: stock name: SPG-B, stock code: 200029) has been
suspended since the opening of 14 September 2016. On 30 September 2016, the Company disclosed
the Announcement on Share Trading Suspension Due to Major Assets Restructuring (No. 2016-025),
and the suspension continued due to major assets restructuring since the market opening on 30
September 2016.
The Company is organizing relevant intermediaries to conduct supplementary due diligence on the
parties to the restructuring of assets and trading, carry out supplementary audit and evaluation work,
and update the major asset restructuring plan or report (draft) and other relevant documents. The
major assets restructuring of the Company involves in the reform of state-owned enterprises in
Shenzhen with complex transaction structure, and the proposed purchase of underlying asset is the
leading asset in the industry on a large-scale, which is a major unprecedented event. The Company
still needs to communicate with regulatory authorities for further discussion, demonstration and
improvement. Meanwhile, limited by the period of validity of the assessment, underlying asset’s
audit report and assessment report need to be updated, and it also needs to perform national assets
filing procedures of assessment report, which needs a certain period of time due to the large
volumes. On the specific circumstances of restructuring of the Company, please keep an eye on the
Company's follow-up announcements.
To ensure the smooth progress of this major asset restructuring, prevent abnormal fluctuations in the
prices of its stocks and protect the rights and interests of its minority shareholders, the Company has
applied to the Shenzhen Stock Exchange for continued share trading suspension for no more than 1
month as of 14 October 2018. It is respected that the major assets restructuring plan or report will
be disclosed according to the requirements of the Standards for the Contents and Formats of
Information Disclosure by Companies Offering Securities to the Public No. 26—Major Assets
Restructuring of Listed Companies prior to 14 November 2018.
During the continued suspension, the Company will keep promoting the work of this major asset
restructuring with parties concerned, paying full attention to the progress of the issue and fulfilling
the obligation of timely information disclosure in strict accordance with the provisions and
requirements of relevant laws and regulations, that is, the Company will disclose the progress of
related matters at least every five trading days.
There is considerable uncertainty for the major assets restructuring. Investors are kindly reminded
to pay attention to investment risk.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Summary of significant event Disclosure date Index to related announcement
Announcement on the planning of
Delaying the Share Trading Resumption of
Significant asset restructuring 13 October 2018
Significant Asset Restructuring
(www.cninfo.com.cn)
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for the year 2018, as well as explanation of
why:
√ Applicable □ Not applicable
Forecast: Considerable increase in profit
Type of the forecast data: Interval number
2018 2017 +/- (%)
Forecast accumulative net
45,000 -- 50,000 18,492 Increase 143.35% -- 170.39%
profit (RMB'0,000)
Basic earnings per share
0.4448 -- 0.4942 0.1828 Increase 143.33% -- 170.37%
(RMB/share)
Notes to the forecast The property sales carryforwards to the year 2018 dramatically increased year-on-year.
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Type of wealth Outstanding amount
Funding source Principal Overdue amount
management before maturity
Wealth management
Idly self-funded 60,000 60,000 0
product purchased from
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
bank
Total 60,000 60,000 0
High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no
protection of the principal:
□ Applicable √ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VII Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Inquired of semi-annual operating conditions of the Company, the
12 July 2018 By phone Individual progress of assets restructuring and the expected time for share trading
resumption, and didn’t offer written materials
Inquired of the progress of assets restructuring, time for share trading
2 August 2018 By phone Individual resumption, the estimated disclosed time of interim report, and didn’t offer
written materials
Inquired of the progress of assets restructuring and the time for share
21 August 2018 By phone Individual
trading resumption, and didn’t offer written materials
Inquired of the progress of assets restructuring and the time for share
17 September 2018 By phone Individual
trading resumption, and didn’t offer written materials
Inquired of the progress of assets restructuring, the operating conditions of
28 September 2018 By phone Individual the Company and the estimated disclosed time of third quarter report, and
didn’t offer written materials
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
X Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
30 September 2018
Unit: RMB
Item 30 September 2018 31 December 2017
Current assets:
Monetary capital 1,195,341,792.38 1,207,079,090.29
Settlement reserve
Interbank loans granted
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable 155,064,261.72 143,013,443.05
Including: Notes receivable 5,921,287.00
Accounts receivable 155,064,261.72 137,092,156.05
Prepayments 4,799,752.83 6,040,367.51
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 48,087,020.29 76,955,351.38
Financial assets purchased under resale agreements
Inventories 1,675,720,610.56 1,764,086,643.94
Assets classified as held for sale
Current portion of non-current assets
Other current assets 606,889,159.07 11,369,544.80
Total current assets 3,685,902,596.85 3,208,544,440.97
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 17,464,240.74 17,464,240.74
Held-to-maturity investments
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Long-term receivables
Long-term equity investments 29,888,661.65 29,888,661.65
Investment property 630,002,783.54 647,297,124.04
Fixed assets 34,916,310.70 37,937,868.71
Construction in progress
Productive living assets
Oil and gas assets
Intangible assets 55,200.00
R&D expense
Goodwill
Long-term prepaid expense 442,332.39 586,350.66
Deferred income tax assets 48,821,440.51 47,490,095.19
Other non-current assets
Total non-current assets 761,535,769.53 780,719,540.99
Total assets 4,447,438,366.38 3,989,263,981.96
Current liabilities:
Short-term borrowings 35,048,803.88 104,207,653.64
Borrowings from central bank
Customer deposits and interbank deposits
Interbank loans obtained
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes and accounts payable 219,554,469.82 190,629,756.30
Advances from customers 279,191,515.39 332,152,016.54
Financial assets sold under repurchase agreements
Handling charges and commissions payable
Payroll payable 37,897,653.43 30,516,219.96
Taxes payable 93,556,953.74 86,153,526.89
Other payables 674,696,256.06 391,480,367.04
Reinsurance payables
Insurance contract reserve
Payables for acting trading of securities
Payables for underwriting of securities
Liabilities directly associated with assets classified as held for
sale
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Current portion of non-current liabilities 17,773,200.00 64,000,000.00
Other current liabilities
Total current liabilities 1,357,718,852.32 1,199,139,540.37
Non-current liabilities:
Long-term borrowings 13,340,200.00 82,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables 6,151,782.28 8,101,880.05
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 19,491,982.28 90,101,880.05
Total liabilities 1,377,210,834.60 1,289,241,420.42
Owners’ equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 978,244,910.11 978,244,910.11
Less: Treasury stock
Other comprehensive income 7,370,333.73 10,045,697.16
Specific reserve
Surplus reserves 85,666,668.00 85,666,668.00
General reserve
Retained earnings 1,116,625,211.24 742,624,845.71
Total equity attributable to owners of the Company as the parent 3,199,567,123.08 2,828,242,120.98
Non-controlling interests -129,339,591.30 -128,219,559.44
Total owners’ equity 3,070,227,531.78 2,700,022,561.54
Total liabilities and owners’ equity 4,447,438,366.38 3,989,263,981.96
Legal representative: Zhou Jianguo Head of financial affairs: Tang Xiaoping
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Head of the financial arm: Qiao Yanjun
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 September 2018 31 December 2017
Current assets:
Monetary capital 428,124,916.01 726,801,673.89
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable 4,499,881.80 4,482,074.17
Including: Notes receivable
Accounts receivable 4,499,881.80 4,482,074.17
Prepayments 200,000.00
Other receivables 767,906,103.05 1,069,266,476.08
Inventories 482,393,473.08 365,067,776.29
Assets classified as held for sale
Current portion of non-current assets
Other current assets 600,298,788.51 165,020.02
Total current assets 2,283,423,162.45 2,165,783,020.45
Non-current assets:
Available-for-sale financial assets 12,000,000.00 12,000,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 248,870,407.21 248,870,407.21
Investment property 516,488,961.55 532,414,374.79
Fixed assets 22,577,411.97 24,371,839.21
Construction in progress
Productive living assets
Oil and gas assets
Intangible assets 55,200.00
R&D expense
Goodwill
Long-term prepaid expense 391,988.17 529,905.52
Deferred income tax assets 43,449.93
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Other non-current assets
Total non-current assets 800,372,218.83 818,241,726.73
Total assets 3,083,795,381.28 2,984,024,747.18
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes and accounts payable 5,204,612.88 6,803,512.99
Advances from customers 93,435.00 93,435.00
Payroll payable 14,930,925.93 8,761,156.65
Taxes payable 54,325,790.81 52,311,869.66
Other payables 370,369,641.92 194,730,771.40
Liabilities directly associated with assets classified as held for
sale
Current portion of non-current liabilities 17,773,200.00 64,000,000.00
Other current liabilities
Total current liabilities 462,697,606.54 326,700,745.70
Non-current liabilities:
Long-term borrowings 13,340,200.00 82,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 13,340,200.00 82,000,000.00
Total liabilities 476,037,806.54 408,700,745.70
Owners’ equity:
Share capital 1,011,660,000.00 1,011,660,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Capital reserves 978,244,910.11 978,244,910.11
Less: Treasury stock
Other comprehensive income
Specific reserve
Surplus reserves 62,537,054.59 62,537,054.59
Retained earnings 555,315,610.04 522,882,036.78
Total owners’ equity 2,607,757,574.74 2,575,324,001.48
Total liabilities and owners’ equity 3,083,795,381.28 2,984,024,747.18
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2018 Q3 2017
1. Revenue 282,588,259.93 233,287,425.63
Including: Operating revenue 282,588,259.93 233,287,425.63
Interest income
Premium income
Handling charge and commission income
2. Operating costs and expenses 220,887,629.95 211,967,739.46
Including: Cost of sales 166,327,629.97 191,067,478.03
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 39,426,927.21 6,757,925.61
Selling expense 4,074,837.74 5,549,604.20
Administrative expense 12,770,414.32 8,760,792.21
R&D expense 0.00
Finance costs -1,712,179.29 -168,060.59
Including: Interest expense 799,817.42 2,385,365.33
Interest income 2,555,154.36 2,611,951.67
Asset impairment loss 0.00 0.00
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Add: Other income 0.00 0.00
Investment income (“-” for loss) 0.00 0.00
Including: Share of profit or loss of joint ventures and
0.00 0.00
associates
Gain on changes in fair value (“-” for loss) 0.00 0.00
Foreign exchange gain (“-” for loss) 487,424.56 -388,764.88
Asset disposal income (“-” for loss) -194.95 -3,518.85
3. Operating profit (“-” for loss) 62,187,859.59 20,927,402.44
Add: Non-operating income 421,906.22 3,210.52
Less: Non-operating expense 170,595.26 4,162.73
4. Profit before tax (“-” for loss) 62,439,170.55 20,926,450.23
Less: Income tax expense 17,457,900.83 8,520,281.69
5. Net profit (“-” for net loss) 44,981,269.72 12,406,168.54
5.1 Net profit from continuing operations (“-” for net loss) 44,981,269.72 12,406,168.54
5.2 Net profit from discontinued operations (“-” for net loss) 0.00
Net profit attributable to owners of the Company as the parent 44,934,281.00 12,356,333.26
Net profit attributable to non-controlling interests 46,988.72 49,835.28
6. Other comprehensive income, net of tax -3,127,250.66 2,101,707.56
Attributable to owners of the Company as the parent -2,189,075.46 1,471,195.30
6.1 Items that will not be reclassified to profit or loss 0.00 0.00
6.1.1 Changes in net liabilities or assets caused by
0.00 0.00
remeasurements on defined benefit pension schemes
6.1.2 Share of other comprehensive income of investees that
0.00 0.00
will not be reclassified to profit or loss under equity method
6.2 Items that may subsequently be reclassified to profit or
-2,189,075.46 1,471,195.30
loss
6.2.1 Share of other comprehensive income of investees that
0.00 0.00
will be reclassified to profit or loss under equity method
6.2.2 Gain/Loss on changes in fair value of
0.00 0.00
available-for-sale financial assets
6.2.3 Gain/Loss arising from reclassification of
0.00 0.00
held-to-maturity investments to available-for-sale financial assets
6.2.4 Effective gain/loss on cash flow hedges 0.00 0.00
6.2.5 Differences arising from translation of foreign
-2,189,075.46 1,471,195.30
currency-denominated financial statements
6.2.6 Other 0.00 0.00
Attributable to non-controlling interests -938,175.20 630,512.26
7. Total comprehensive income 41,854,019.06 14,507,876.10
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ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Attributable to owners of the Company as the parent 42,745,205.54 13,827,528.56
Attributable to non-controlling interests -891,186.48 680,347.54
8. Earnings per share
8.1 Basic earnings per share 0.0444 0.0122
8.2 Diluted earnings per share 0.0444 0.0122
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Zhou Jianguo Head of financial affairs: Tang Xiaoping
Head of the financial arm: Qiao Yanjun
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2018 Q3 2017
1. Operating revenue 14,863,056.88 13,471,349.96
Less: Cost of sales 6,069,598.33 6,307,313.70
Taxes and surcharges 1,897,242.49 1,612,856.89
Selling expense 456,770.95 266,196.50
Administrative expense 3,578,442.56 3,272,107.52
R&D expense 0.00 0.00
Finance costs -6,865,892.80 -7,860,577.41
Including: Interest expense 434,797.18 2,082,743.07
Interest income 7,303,315.43 9,949,853.83
Asset impairment loss 0.00 0.00
Add: Other income 7,238,497.24 -5,478,809.68
Investment income (“-” for loss) 0.00 0.00
Including: Share of profit or loss of joint ventures and
0.00 0.00
associates
Gain on changes in fair value (“-” for loss) 0.00 0.00
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) 16,965,392.59 4,394,643.08
Add: Non-operating income 0.04 0.00
Less: Non-operating expense 100,000.00 0.00
3. Profit before tax (“-” for loss) 16,865,392.63 4,394,643.08
Less: Income tax expense 4,252,167.10 1,873,814.49
19
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
4. Net profit (“-” for net loss) 12,613,225.53 2,520,828.59
4.1 Net profit from continuing operations (“-” for net loss) 12,613,225.53 2,520,828.59
4.2 Net profit from discontinued operations (“-” for net loss) 0.00 0.00
5. Other comprehensive income, net of tax 0.00 0.00
5.1 Items that will not be reclassified to profit or loss 0.00 0.00
5.1.1 Changes in net liabilities or assets caused by
0.00 0.00
remeasurements on defined benefit pension schemes
5.1.2 Share of other comprehensive income of investees that
0.00 0.00
will not be reclassified to profit or loss under equity method
5.2 Items that may subsequently be reclassified to profit or loss 0.00 0.00
5.2.1 Share of other comprehensive income of investees that
0.00 0.00
will be reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-sale
0.00 0.00
financial assets
5.2.3 Gain/Loss arising from reclassification of
0.00 0.00
held-to-maturity investments to available-for-sale financial assets
5.2.4 Effective gain/loss on cash flow hedges 0.00 0.00
5.2.5 Differences arising from translation of foreign
0.00 0.00
currency-denominated financial statements
5.2.6 Other 0.00 0.00
6. Total comprehensive income 12,613,225.53 2,520,828.59
7. Earnings per share
7.1 Basic earnings per share 0.0125 0.0025
7.2 Diluted earnings per share 0.0125 0.0025
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Revenue 1,600,129,891.28 964,594,407.66
Including: Operating revenue 1,600,129,891.28 964,594,407.66
Interest income
Premium income
Handling charge and commission income
2. Operating costs and expenses 1,098,971,752.95 759,413,539.37
Including: Cost of sales 706,745,121.38 686,017,275.92
Interest expense
Handling charge and commission expense
20
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 316,767,417.97 30,671,236.84
Selling expense 41,241,971.51 12,382,407.96
Administrative expense 44,506,615.17 33,480,030.90
R&D expense
Finance costs -10,289,373.08 -3,137,412.25
Including: Interest expense 3,817,172.20 6,662,172.37
Interest income 14,324,520.82 10,011,663.67
Asset impairment loss
Add: Other income
Investment income (“-” for loss) 827,100.00 650,000.00
Including: Share of profit or loss of joint ventures and
associates
Gain on changes in fair value (“-” for loss)
Foreign exchange gain (“-” for loss) 521,899.87 -722,544.96
Asset disposal income (“-” for loss) -19,206.48 -61,706.41
3. Operating profit (“-” for loss) 502,487,931.72 205,046,616.92
Add: Non-operating income 517,741.45 320,231.95
Less: Non-operating expense 351,137.06 67,588.96
4. Profit before tax (“-” for loss) 502,654,536.11 205,299,259.91
Less: Income tax expense 128,627,618.11 55,693,421.41
5. Net profit (“-” for net loss) 374,026,918.00 149,605,838.50
5.1 Net profit from continuing operations (“-” for net loss) 374,026,918.00 149,605,838.50
5.2 Net profit from discontinued operations (“-” for net loss)
Net profit attributable to owners of the Company as the parent 374,000,365.53 149,582,935.10
Net profit attributable to non-controlling interests 26,552.47 22,903.40
6. Other comprehensive income, net of tax -3,821,947.76 4,153,221.38
Attributable to owners of the Company as the parent -2,675,363.43 2,907,254.98
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes in net liabilities or assets caused by
remeasurements on defined benefit pension schemes
21
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
6.1.2 Share of other comprehensive income of investees that
will not be reclassified to profit or loss under equity method
6.2 Items that may subsequently be reclassified to profit or
-2,675,363.43 2,907,254.98
loss
6.2.1 Share of other comprehensive income of investees that
will be reclassified to profit or loss under equity method
6.2.2 Gain/Loss on changes in fair value of
available-for-sale financial assets
6.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
6.2.4 Effective gain/loss on cash flow hedges
6.2.5 Differences arising from translation of foreign
-2,675,363.43 2,907,254.98
currency-denominated financial statements
6.2.6 Other
Attributable to non-controlling interests -1,146,584.33 1,245,966.40
7. Total comprehensive income 370,204,970.24 153,759,059.88
Attributable to owners of the Company as the parent 371,325,002.10 152,490,190.08
Attributable to non-controlling interests -1,120,031.86 1,268,869.80
8. Earnings per share
8.1 Basic earnings per share 0.3697 0.1479
8.2 Diluted earnings per share 0.3697 0.1479
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Operating revenue 44,850,524.39 243,028,509.35
Less: Cost of sales 18,653,268.07 117,577,476.14
Taxes and surcharges 5,552,046.60 7,458,223.71
Selling expense 1,364,929.87 1,230,781.87
Administrative expense 14,472,955.77 14,566,751.21
R&D expense
Finance costs -29,451,306.05 -25,114,582.00
Including: Interest expense 2,163,250.22 5,870,083.28
Interest income 31,630,411.09 31,005,926.97
Asset impairment loss
22
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Add: Other income 8,147,643.61 -10,113,199.89
Investment income (“-” for loss) 827,100.00 170,043,952.18
Including: Share of profit or loss of joint ventures and
associates
Gain on changes in fair value (“-” for loss)
Asset disposal income (“-” for loss) -13,299.25
2. Operating profit (“-” for loss) 43,220,074.49 287,240,610.71
Add: Non-operating income 34,352.63 2.69
Less: Non-operating expense 230,000.00 12,574.69
3. Profit before tax (“-” for loss) 43,024,427.12 287,228,038.71
Less: Income tax expense 10,590,853.86 30,077,031.40
4. Net profit (“-” for net loss) 32,433,573.26 257,151,007.31
4.1 Net profit from continuing operations (“-” for net loss) 32,433,573.26 257,151,007.31
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes in net liabilities or assets caused by
remeasurements on defined benefit pension schemes
5.1.2 Share of other comprehensive income of investees that
will not be reclassified to profit or loss under equity method
5.2 Items that may subsequently be reclassified to profit or loss
5.2.1 Share of other comprehensive income of investees that
will be reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-sale
financial assets
5.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
5.2.4 Effective gain/loss on cash flow hedges
5.2.5 Differences arising from translation of foreign
currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income 32,433,573.26 257,151,007.31
7. Earnings per share
7.1 Basic earnings per share 0.0321 0.2542
7.2 Diluted earnings per share 0.0321 0.2542
23
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 1,605,041,920.88 952,036,798.69
Net increase in customer deposits and interbank deposits
Net increase in borrowings from central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Net increase in proceeds from disposal of financial assets at fair
value through profit or loss
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Tax rebates 76,431.00
Cash generated from other operating activities 59,337,154.87 63,746,128.65
Subtotal of cash generated from operating activities 1,664,455,506.75 1,015,782,927.34
Payments for commodities and services 558,011,313.21 851,439,343.84
Net increase in loans and advances to customers
Net increase in deposits in central bank and in interbank loans
granted
Payments for claims on original insurance contracts
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 97,813,296.51 111,403,737.30
Taxes paid 241,207,281.47 137,641,963.40
Cash used in other operating activities 102,625,183.85 115,946,893.92
Subtotal of cash used in operating activities 999,657,075.04 1,216,431,938.46
Net cash generated from/used in operating activities 664,798,431.71 -200,649,011.12
2. Cash flows from investing activities:
Proceeds from disinvestment 1,376,616.35
Investment income 827,100.00 650,000.00
Net proceeds from disposal of fixed assets, intangible assets and 14,976.00
24
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
other long-lived assets
Net proceeds from disposal of subsidiaries or other business units 7,286,982.00
Cash generated from other investing activities
Subtotal of cash generated from investing activities 827,100.00 9,328,574.35
Payments for acquisition of fixed assets, intangible assets and
290,565.47 684,803.49
other long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for acquisition of subsidiaries and other business
units
Cash used in other investing activities 600,000,000.00
Subtotal of cash used in investing activities 600,290,565.47 684,803.49
Net cash generated from/used in investing activities -599,463,465.47 8,643,770.86
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-controlling interests to
subsidiaries
Increase in borrowings obtained 2,000,000.00 20,900,000.00
Net proceeds from issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities 2,000,000.00 20,900,000.00
Repayment of borrowings 135,786,600.00 32,216,016.22
Payments for interest and dividends 2,340,457.86 7,260,786.99
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities
Subtotal of cash used in financing activities 138,127,057.86 39,476,803.21
Net cash generated from/used in financing activities -136,127,057.86 -18,576,803.21
4. Effect of foreign exchange rate changes on cash and cash
366,593.43 -532,868.23
equivalents
5. Net increase in cash and cash equivalents -70,425,498.19 -211,114,911.70
Add: Cash and cash equivalents, beginning of the period 1,265,767,290.57 1,265,767,290.57
6. Cash and cash equivalents, end of the period 1,195,341,792.38 1,054,652,378.87
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
25
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Item Q1~Q3 2018 Q1~Q3 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 50,519,310.84 122,602,887.22
Tax rebates 76,431.00
Cash generated from other operating activities 558,131,067.59 17,886,514.26
Subtotal of cash generated from operating activities 608,726,809.43 140,489,401.48
Payments for commodities and services 98,788,937.22 68,730,205.88
Cash paid to and for employees 23,664,067.51 29,550,117.76
Taxes paid 19,277,387.12 61,804,843.80
Cash used in other operating activities 49,597,541.55 61,639,460.72
Subtotal of cash used in operating activities 191,327,933.40 221,724,628.16
Net cash generated from/used in operating activities 417,398,876.03 -81,235,226.68
2. Cash flows from investing activities:
Proceeds from disinvestment
Investment income 827,100.00 650,000.00
Net proceeds from disposal of fixed assets, intangible assets and
other long-lived assets
Net proceeds from disposal of subsidiaries or other business units 7,286,982.00
Cash generated from other investing activities
Subtotal of cash generated from investing activities 827,100.00 7,936,982.00
Payments for acquisition of fixed assets, intangible assets and
119,374.00 112,874.00
other long-lived assets
Payments for investments
Net payments for acquisition of subsidiaries and other business
units
Cash used in other investing activities 600,000,000.00
Subtotal of cash used in investing activities 600,119,374.00 112,874.00
Net cash generated from/used in investing activities -599,292,274.00 7,824,108.00
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings 114,886,600.00 21,216,016.22
26
ShenZhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Third Quarter Report 2018
Payments for interest and dividends 1,883,272.84 6,495,933.73
Cash used in other financing activities
Sub-total of cash used in financing activities 116,769,872.84 27,711,949.95
Net cash generated from/used in financing activities -116,769,872.84 -27,711,949.95
4. Effect of foreign exchange rate changes on cash and cash
-13,487.07 -33,480.46
equivalents
5. Net increase in cash and cash equivalents -298,676,757.88 -101,156,549.09
Add: Cash and cash equivalents, beginning of the period 726,801,673.89 818,261,250.52
6. Cash and cash equivalents, end of the period 428,124,916.01 717,104,701.43
II Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
27
