SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.
SEMIANNUAL FINANCIAL REPORT 2020
August 2020
Financial StatementsI. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.II Financial StatementsCurrency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Properties & Resources Development (Group) Ltd.
30 June 2020
Unit: RMB
| Item | 30 June 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 3,078,941,673.62 | 3,297,890,935.91 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 282,865,426.42 | 216,923,663.25 |
| Accounts receivable financing | ||
| Prepayments | 84,983,434.54 | 69,546,774.17 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 800,159,718.50 | 917,981,165.74 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements |
| Inventories | 5,369,131,564.81 | 4,913,510,876.66 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 16,500,466.62 | 42,500,585.94 |
| Total current assets | 9,632,582,284.51 | 9,458,354,001.67 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 45,233,184.51 | 45,076,122.72 |
| Investments in other equity instruments | 1,134,803.13 | 1,580,475.86 |
| Other non-current financial assets | ||
| Investment property | 488,451,134.18 | 503,323,428.61 |
| Fixed assets | 89,296,825.77 | 93,557,782.83 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 591,207.45 | 700,369.66 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 6,394,067.52 | 7,034,472.79 |
| Deferred income tax assets | 666,441,069.33 | 658,153,122.73 |
| Other non-current assets | 18,722,496.18 | 4,711,963.66 |
| Total non-current assets | 1,316,264,788.07 | 1,314,137,738.86 |
| Total assets | 10,948,847,072.58 | 10,772,491,740.53 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Borrowings from the central bank | ||
| Interbank loans obtained | ||
| Held-for-trading financial liabilities |
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 536,237,338.50 | 577,689,139.10 |
| Advances from customers | 32,536,548.73 | 728,186,032.63 |
| Contract liabilities | 480,801,605.00 | |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 116,373,374.33 | 143,493,868.80 |
| Taxes payable | 1,245,432,747.80 | 2,598,283,291.68 |
| Other payables | 820,188,462.69 | 1,149,104,928.85 |
| Including: Interest payable | ||
| Dividends payable | 12,202,676.04 | 12,202,676.04 |
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 755,325,505.51 | 3,921,032.24 |
| Other current liabilities | ||
| Total current liabilities | 3,986,895,582.56 | 5,200,678,293.30 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 3,615,800,000.00 | 2,193,833,000.00 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | 2,903,327.87 | 2,903,327.87 |
| Deferred income | 316,883.94 | 341,259.63 |
| Deferred income tax liabilities | 3,821.08 | 3,821.08 |
| Other non-current liabilities | 111,632,315.06 | 108,164,737.46 |
| Total non-current liabilities | 3,730,656,347.95 | 2,305,246,146.04 |
| Total liabilities | 7,717,551,930.51 | 7,505,924,439.34 |
| Owners’ equity: | ||
| Share capital | 595,979,092.00 | 595,979,092.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 80,488,045.38 | 80,488,045.38 |
| Less: Treasury stock | ||
| Other comprehensive income | -2,121,506.10 | -2,698,371.44 |
| Specific reserve | ||
| Surplus reserves | 17,060,448.05 | 17,060,448.05 |
| General reserve | ||
| Retained earnings | 2,454,535,057.03 | 2,457,119,795.39 |
| Total equity attributable to owners of the Company as the parent | 3,145,941,136.36 | 3,147,949,009.38 |
| Non-controlling interests | 85,354,005.71 | 118,618,291.81 |
| Total owners’ equity | 3,231,295,142.07 | 3,266,567,301.19 |
| Total liabilities and owners’ equity | 10,948,847,072.58 | 10,772,491,740.53 |
Legal representative: Liu Shengxiang Head of financial affairs: Cai LiliHead of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 2,154,367,596.65 | 2,455,001,204.14 |
| Held-for-trading financial assets | ||
| Derivative financial assets | ||
| Notes receivable |
| Accounts receivable | 6,816,835.17 | 755,932.14 |
| Accounts receivable financing | ||
| Prepayments | 496,729.09 | 496,729.09 |
| Other receivables | 307,850,283.10 | 501,082,153.81 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 629,116,380.81 | 624,499,208.02 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 623,156.37 | 1,113,935.28 |
| Total current assets | 3,099,270,981.19 | 3,582,949,162.48 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | ||
| Long-term equity investments | 1,070,699,064.90 | 1,070,542,003.11 |
| Investments in other equity instruments | 1,365,303.13 | 1,810,975.86 |
| Other non-current financial assets | ||
| Investment property | 302,442,174.75 | 312,638,785.76 |
| Fixed assets | 24,078,822.67 | 26,337,488.29 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 518,928.15 | 605,416.29 |
| Deferred income tax assets | 255,701,915.93 | 343,958,821.07 |
| Other non-current assets | 1,128,851,036.88 | 1,613,657,031.92 |
| Total non-current assets | 2,783,657,246.41 | 3,369,550,522.30 |
| Total assets | 5,882,928,227.60 | 6,952,499,684.78 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 39,479,676.40 | 64,503,938.37 |
| Advances from customers | 320,469.53 | |
| Contract liabilities | ||
| Employee benefits payable | 34,698,693.85 | 36,735,205.68 |
| Taxes payable | 5,564,387.78 | 1,322,751,671.37 |
| Other payables | 2,995,125,768.00 | 3,146,684,268.89 |
| Including: Interest payable | ||
| Dividends payable | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 698,988.89 | |
| Other current liabilities | ||
| Total current liabilities | 3,075,567,514.92 | 4,570,995,553.84 |
| Non-current liabilities: | ||
| Long-term borrowings | 616,000,000.00 | |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | 40,000,000.00 | 40,000,000.00 |
| Total non-current liabilities | 656,000,000.00 | 40,000,000.00 |
| Total liabilities | 3,731,567,514.92 | 4,610,995,553.84 |
| Owners’ equity: |
| Share capital | 595,979,092.00 | 595,979,092.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 53,876,380.11 | 53,876,380.11 |
| Less: Treasury stock | ||
| Other comprehensive income | -2,506,414.40 | -2,051,268.24 |
| Specific reserve | ||
| Surplus reserves | 16,403,637.61 | 16,403,637.61 |
| Retained earnings | 1,487,608,017.36 | 1,677,296,289.46 |
| Total owners’ equity | 2,151,360,712.68 | 2,341,504,130.94 |
| Total liabilities and owners’ equity | 5,882,928,227.60 | 6,952,499,684.78 |
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2020 | H1 2019 |
| 1. Revenue | 1,421,077,767.83 | 1,065,480,882.30 |
| Including: Operating revenue | 1,421,077,767.83 | 1,065,480,882.30 |
| Interest income | ||
| Insurance premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 1,159,861,807.33 | 871,169,645.40 |
| Including: Cost of sales | 611,694,943.80 | 599,675,528.78 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 394,743,480.61 | 125,065,024.86 |
| Selling expense | 11,544,060.19 | 18,292,724.72 |
| Administrative expense | 88,433,004.35 | 83,229,296.11 |
| R&D expense | ||
| Finance costs | 53,446,318.38 | 44,907,070.93 |
| Including: Interest expense | 84,859,496.80 | 73,970,116.57 |
| Interest income | -31,227,361.24 | -31,182,804.42 |
| Add: Other income | 2,921,993.51 | 371,820.52 |
| Return on investment (“-” for loss) | 157,061.79 | 780,826.57 |
| Including: Share of profit or loss of joint ventures and associates | 157,061.79 | 780,826.57 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Credit impairment loss (“-” for loss) | 1,115,927.46 | -3,911,410.39 |
| Asset impairment loss (“-” for loss) | 1,832.91 | 1,333,825.60 |
| Asset disposal income (“-” for loss) | ||
| 3. Operating profit (“-” for loss) | 265,412,776.17 | 192,886,299.20 |
| Add: Non-operating income | 4,244,175.90 | 6,875,418.46 |
| Less: Non-operating expense | 2,399,487.70 | 1,813,599.30 |
| 4. Profit before tax (“-” for loss) | 267,257,464.37 | 197,948,118.36 |
| Less: Income tax expense | 89,394,015.71 | 69,721,304.50 |
| 5. Net profit (“-” for net loss) | 177,863,448.66 | 128,226,813.86 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 177,863,448.66 | 128,226,813.86 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to | 211,967,734.76 | 155,922,425.40 |
| owners of the Company as the parent | ||
| 5.2.1 Net profit attributable to non-controlling interests | -34,104,286.10 | -27,695,611.54 |
| 6. Other comprehensive income, net of tax | 576,865.34 | 202,824.25 |
| Attributable to owners of the Company as the parent | 576,865.34 | 202,824.25 |
| 6.1 Items that will not be reclassified to profit or loss | -455,146.16 | |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | -455,146.16 | |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 1,032,011.50 | 202,824.25 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 6.2.2 Changes in the fair value of investments in other debt obligations | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for investments in other debt obligations | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 1,032,011.50 | 202,824.25 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 178,440,314.00 | 128,429,638.11 |
| Attributable to owners of the Company as the parent | 212,544,600.10 | 156,125,249.65 |
| Attributable to non-controlling interests | -34,104,286.10 | -27,695,611.54 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.3557 | 0.2616 |
| 8.2 Diluted earnings per share | 0.3557 | 0.2616 |
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees beforethe combinations was RMB0.00, with the amount for the same period of last year being RMB52,922,401.49.Legal representative: Liu Shengxiang Head of financial affairs: Cai LiliHead of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2020 | H1 2019 |
| 1. Operating revenue | 25,828,330.02 | 341,910,051.35 |
| Less: Cost of sales | 15,835,977.53 | 64,705,194.33 |
| Taxes and surcharges | 6,073,285.87 | 106,581,164.55 |
| Selling expense | 596,897.00 | 6,932,430.59 |
| Administrative expense | 31,193,084.64 | 26,365,324.28 |
| R&D expense | ||
| Finance costs | -27,995,222.26 | -20,211,072.23 |
| Including: Interest expense | 3,075,551.11 | |
| Interest income | -29,309,100.65 | -20,445,143.13 |
| Add: Other income | ||
| Return on investment (“-” for loss) | 62,573,990.52 | 16,880,145.24 |
| Including: Share of profit or loss of joint ventures and associates | 157,061.79 | 780,826.57 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) |
| Credit impairment loss (“-” for loss) | 86,608.96 | 475,313.54 |
| Asset impairment loss (“-” for loss) | ||
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 62,784,906.72 | 174,892,468.61 |
| Add: Non-operating income | 536,196.80 | 320,000.00 |
| Less: Non-operating expense | 2,138,000.00 | 1,102,131.09 |
| 3. Profit before tax (“-” for loss) | 61,183,103.52 | 174,110,337.52 |
| Less: Income tax expense | 36,318,902.50 | 41,331,071.98 |
| 4. Net profit (“-” for net loss) | 24,864,201.02 | 132,779,265.54 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 24,864,201.02 | 132,779,265.54 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -455,146.16 | |
| 5.1 Items that will not be reclassified to profit or loss | -455,146.16 | |
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | -455,146.16 | |
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of investments in other debt obligations | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets |
| 5.2.4 Credit impairment allowance for investments in other debt obligations | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | 24,409,054.86 | 132,779,265.54 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | 0.0417 | 0.2228 |
| 7.2 Diluted earnings per share | 0.0417 | 0.2228 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2020 | H1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,233,830,460.59 | 1,882,218,982.52 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax rebates | 11,517,514.19 |
| Cash generated from other operating activities | 333,720,016.38 | 115,887,594.42 |
| Subtotal of cash generated from operating activities | 1,579,067,991.16 | 1,998,106,576.94 |
| Payments for commodities and services | 879,596,446.23 | 1,570,821,818.52 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and in interbank loans granted | ||
| Payments for claims on original insurance contracts | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 330,739,905.05 | 310,010,627.06 |
| Taxes paid | 1,900,688,223.09 | 469,271,389.64 |
| Cash used in other operating activities | 91,225,555.69 | 44,690,753.42 |
| Subtotal of cash used in operating activities | 3,202,250,130.06 | 2,394,794,588.64 |
| Net cash generated from/used in operating activities | -1,623,182,138.90 | -396,688,011.70 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | ||
| Return on investment | ||
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 4,408.08 | 5,655.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 4,408.08 | 5,655.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 16,277,097.63 | 10,767,529.25 |
| Payments for investments |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | 465,807,569.82 | 1,555,272.25 |
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 482,084,667.45 | 12,322,801.50 |
| Net cash generated from/used in investing activities | -482,080,259.37 | -12,317,146.50 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 840,000.00 | 1,750,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 840,000.00 | 1,750,000.00 |
| Borrowings raised | 2,172,000,000.00 | |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 2,172,840,000.00 | 1,750,000.00 |
| Repayment of borrowings | 1,033,000.00 | |
| Interest and dividends paid | 296,891,168.14 | 424,264,720.04 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 297,924,168.14 | 424,264,720.04 |
| Net cash generated from/used in financing activities | 1,874,915,831.86 | -422,514,720.04 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 1,071,103.91 | 214,256.25 |
| 5. Net increase in cash and cash equivalents | -229,275,462.50 | -831,305,621.99 |
| Add: Cash and cash equivalents, beginning of the period | 3,285,345,233.47 | 3,881,027,257.89 |
| 6. Cash and cash equivalents, end of the period | 3,056,069,770.97 | 3,049,721,635.90 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2020 | H1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 16,901,714.03 | 293,652,100.60 |
| Tax rebates | ||
| Cash generated from other operating activities | 1,354,954,984.16 | 1,298,822,878.54 |
| Subtotal of cash generated from operating activities | 1,371,856,698.19 | 1,592,474,979.14 |
| Payments for commodities and services | 34,769,898.91 | 567,588,715.82 |
| Cash paid to and for employees | 22,444,977.67 | 24,332,201.12 |
| Taxes paid | 1,278,080,688.35 | 326,980,098.56 |
| Cash used in other operating activities | 831,802,326.79 | 379,603,435.53 |
| Subtotal of cash used in operating activities | 2,167,097,891.72 | 1,298,504,451.03 |
| Net cash generated from/used in operating activities | -795,241,193.53 | 293,970,528.11 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 565,000,000.00 | |
| Return on investment | 14,575,000.01 | |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 3,955.86 | 690.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 565,003,955.86 | 14,575,690.01 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 14,226,899.52 | 8,631,309.56 |
| Payments for investments | 850,000,000.00 | |
| Net payments for the acquisition of subsidiaries and other business units | 465,807,569.82 | 1,600,000.00 |
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 480,034,469.34 | 860,231,309.56 |
| Net cash generated from/used in | 84,969,486.52 | -845,655,619.55 |
| investing activities | ||
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings raised | 616,000,000.00 | |
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 616,000,000.00 | |
| Repayment of borrowings | ||
| Interest and dividends paid | 216,929,035.34 | 178,793,727.60 |
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 216,929,035.34 | 178,793,727.60 |
| Net cash generated from/used in financing activities | 399,070,964.66 | -178,793,727.60 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 4,949.10 | 2,634.28 |
| 5. Net increase in cash and cash equivalents | -311,195,793.25 | -730,476,184.76 |
| Add: Cash and cash equivalents, beginning of the period | 2,450,935,673.17 | 2,520,788,994.16 |
| 6. Cash and cash equivalents, end of the period | 2,139,739,879.92 | 1,790,312,809.40 |
7. Consolidated Statements of Changes in Owners’ Equity
H1 2020
Unit: RMB
| Item | H1 2020 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balance as at the end of the prior year | 595,979,092.00 | 80,488,045.38 | -2,698,371.44 | 17,060,448.05 | 2,457,119,795.39 | 3,147,949,009.38 | 118,618,291.81 | 3,266,567,301.19 | |||||||
| Add: | |||||||||||||||
| Adjustment for change in accounting policy | |||||||||||||||
| Adjustment for correction of previous error | |||||||||||||||
| Adjustment for business combination under common control | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the year | 595,979,092.00 | 80,488,045.38 | -2,698,371.44 | 17,060,448.05 | 2,457,119,795.39 | 3,147,949,009.38 | 118,618,291.81 | 3,266,567,301.19 | |||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 576,865.34 | -2,584,738.36 | -2,007,873.02 | -33,264,286.10 | -35,272,159.12 | ||||||||||
| 3.1 Total comprehensive income | 576,865.34 | 211,967,734.76 | 212,544,600.10 | -34,104,286.10 | 178,440,314.00 | ||||||||||
| 3.2 Capital increased and reduced by owners | 840,000.00 | 840,000.00 | |||||||||||||
| 3.2.1 Ordinary shares increased by owners | 840,000.00 | 840,000.00 | |||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments included in owners’ equity |
| 3.2.4 Other | |||||||||||||||
| 3.3 Profit distribution | -214,552,473.12 | -214,552,473.12 | -214,552,473.12 | ||||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -214,552,473.12 | -214,552,473.12 | -214,552,473.12 | ||||||||||||
| 3.3.4 Other | |||||||||||||||
| 3.4 Transfers within owners’ equity | |||||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Loss offset by surplus reserves | |||||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income |
| transferred to retained earnings | |||||||||||||||
| 3.4.6 Other | |||||||||||||||
| 3.5 Specific reserve | |||||||||||||||
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balance as at the end of the period | 595,979,092.00 | 80,488,045.38 | -2,121,506.10 | 17,060,448.05 | 2,454,535,057.03 | 3,145,941,136.36 | 85,354,005.71 | 3,231,295,142.07 |
H1 2019
Unit: RMB
| Item | H1 2019 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balance as at the end of the prior year | 595,979,092.00 | 483,347,184.25 | -1,786,181.69 | 299,569,569.96 | 2,495,296,440.15 | 3,872,406,104.67 | 9,111,409.91 | 3,881,517,514.58 | |||||||
| Add: Adjustment for change in accounting policy | |||||||||||||||
| Adjustment for correction of previous error | |||||||||||||||
| Adjustment for business combination under common control | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the year | 595,979,092.00 | 483,347,184.25 | -1,786,181.69 | 299,569,569.96 | 2,495,296,440.15 | 3,872,406,104.67 | 9,111,409.91 | 3,881,517,514.58 | |||||||
| 3. Increase/ decrease in the period (“-” for decrease) | -129,620,559.03 | 202,824.25 | -226,886,860.17 | -356,304,594.95 | 156,953,974.84 | -199,350,620.11 | |||||||||
| 3.1 Total comprehensive income | 202,824.25 | 155,922,425.40 | 156,125,249.65 | -27,695,611.54 | 128,429,638.11 | ||||||||||
| 3.2 Capital increased and reduced by owners | -129,620,559.03 | -204,015,557.97 | -333,636,117.00 | 184,649,586.38 | -148,986,530.62 | ||||||||||
| 3.2.1 Ordinary shares increased by owners | |||||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | |||||||||||||||
| 3.2.4 Other | -129,620,559.03 | -204,015,557.97 | -333,636,117.00 | 184,649,586.38 | -148,986,530.62 | ||||||||||
| 3.3 Profit distribution | -178,793,727.60 | -178,793,727.60 | -178,793,727.60 | ||||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||||
| 3.3.2 Appropriation |
| to general reserve | |||||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -178,793,727.60 | -178,793,727.60 | -178,793,727.60 | ||||||||||||
| 3.3.4 Other | |||||||||||||||
| 3.4 Transfers within owners’ equity | |||||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Loss offset by surplus reserves | |||||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | |||||||||||||||
| 3.4.6 Other | |||||||||||||||
| 3.5 Specific reserve |
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balance as at the end of the period | 595,979,092.00 | 353,726,625.22 | -1,583,357.44 | 299,569,569.96 | 2,268,409,579.98 | 3,516,101,509.72 | 166,065,384.75 | 3,682,166,894.47 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2020
Unit: RMB
| Item | H1 2020 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balance as at the end of the prior year | 595,979,092.00 | 53,876,380.11 | -2,051,268.24 | 16,403,637.61 | 1,677,296,289.46 | 2,341,504,130.94 | ||||||
| Add: Adjustment for change in accounting policy | ||||||||||||
| Adjustment for correction of previous error | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at the beginning of the year | 595,979,092.00 | 53,876,380.11 | -2,051,268.24 | 16,403,637.61 | 1,677,296,289.46 | 2,341,504,130.94 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | -455,146.16 | -189,688,272.10 | -190,143,418.26 | |||||||||
| 3.1 Total comprehensive income | -455,146.16 | 24,864,201.02 | 24,409,054.86 | |||||||||
| 3.2 Capital increased and reduced by owners | ||||||||||||
| 3.2.1 Ordinary shares increased by owners | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | ||||||||||||
| 3.2.4 Other | ||||||||||||
| 3.3 Profit distribution | -214,552,473.12 | -214,552,473.12 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -214,552,473.12 | -214,552,473.12 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity | ||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves |
| 3.4.3 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at the end of the period | 595,979,092.00 | 53,876,380.11 | -2,506,414.40 | 16,403,637.61 | 1,487,608,017.36 | 2,151,360,712.68 |
H1 2019
Unit: RMB
| Item | H1 2019 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balance as at the end of the prior year | 595,979,092.00 | 92,326,467.62 | 298,912,759.52 | 2,080,513,737.62 | 3,067,732,056.76 | |||||||
| Add: Adjustment for change in accounting policy | ||||||||||||
| Adjustment for correction of previous error | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at the beginning of the year | 595,979,092.00 | 92,326,467.62 | 298,912,759.52 | 2,080,513,737.62 | 3,067,732,056.76 | |||||||
| 3. Increase/ decrease in the period (“-” for decrease) | -46,014,462.06 | -46,014,462.06 | ||||||||||
| 3.1 Total comprehensive income | 132,779,265.54 | 132,779,265.54 | ||||||||||
| 3.2 Capital increased and reduced by owners | ||||||||||||
| 3.2.1 Ordinary shares increased by owners | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | ||||||||||||
| 3.2.4 Other | ||||||||||||
| 3.3 Profit distribution | -178,793,727.60 | -178,793,727.60 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 | -178,793, | -178,793,72 |
| Appropriation to owners (or shareholders) | 727.60 | 7.60 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity | ||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at | 595,97 | 92,326, | 298,912 | 2,034,499 | 3,021,717,5 |
| the end of the period | 9,092.00 | 467.62 | ,759.52 | ,275.56 | 94.70 |
III Company Profile
Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “the Company” or “Company”) wasincorporated based on the reconstruction of Shenzhen Properties & Resources Development Co., Ltd. after obtaining approval ofZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. It was registered with Shenzhen Industrial andCommercial Administration Bureau on 17 January 1983 with Shenzhen as its headquarters. Now the Company holds the businesslicense for legal person with the registration number/unified social credit code of 91440300192174135N. The registered capital wasRMB595,979,092 with the total shares of 595,979,092 (RMB1 face value per share), among which, restricted public shares:
1,898,306 A shares and 0 B shares; unrestricted public shares: 526,475,543 A shares and 67,605,243 B shares. The stock of theCompany has been listed on the Shenzhen Stock Exchange on 30 March 1992.The Company is in the real estate sector. Its main business includes development of real estate and sale of commercial housing,construction and management of buildings, house rent, supervision of construction, domestic trading and materials supply andmarketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase). Mainproducts or services rendered mainly include the development and sales of commercial residential housing; property management;buildings and the building devices maintenance, garden afforest and cleaning service; property leasing; supervise and management ofthe engineering; retails of the Chinese food, Western-style food and wines, and etc.The financial statements were approved and authorized for issue by the 17
th Meeting of the 9
th
Board of Directors of the Company on19 August 2020.There were 43 subsidiaries including Shenzhen Huangcheng Real Estate Co., Ltd., Dongguan Guomao Changsheng Real EstateDevelopment Co., Ltd., Shenzhen International Trade Center Property Management Co., Ltd. included in the consolidation financialstatements in this report. Please refer to the Note VIII and Note IX of the financial statements for details.IV. Basis for the Preparation of Financial Statements
1. Preparation Basis
The financial statement of the Company was prepared on the base of the assumption of continuation.
2. Continuation
There was no such case where the sustainable operation ability within 12 months since the end of the Reporting Period was highlydoubted.V. Important Accounting Policies and EstimationsIndication of specific accounting policies and estimations:
1. Statement for Complying with the Accounting Standard for Business Enterprise
The financial statement prepared by the Company complies with the requirements of the latest accounting standards for businessenterprises as well as the application guidelines, interpretations and other relevant regulations (hereinafter referred to as the“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions,
operating results, cash flow and other related information in a truthful and complete manner.In addition, in the preparation of the financial report, reference was made to the presentation and disclosure requirements of the Rulefor Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by ListedCompanies (KJBH [2018] No. 453).
2. Fiscal Period
The fiscal year of the Company is a solar calendar year, which is from 1 January to 31 December.
3. Operating Cycle
Except for the real estate industry, other businesses run by the Company have relatively short operating cycles according to theclassification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the real estate industry shall begenerally more than 12 months from real estate development to cash the sales. The specific cycle shall be determined by thedevelopment project and classified by the assets and liabilities liquidity.
4. Standard Currency of Accounts
The Company adopts Renminbi as a standard currency of accounts.
5. Accounting Process of Business Combinations under the Same Control and not under the Same Control
1. Accounting Process of Business Combinations under the Same Control
The assets and liabilities that the Company obtains in a business combination shall be measured on the basis of their carrying amountcombined party in the consolidated financial statements of the final controller on the combining date. As for the balance betweenthe carrying amount of combined party’s owners equities in the consolidated financial statements of the final controller and thecarrying amount of the consideration paid by it or the total par value of the shares issued), the additional paid-in capital shall beadjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.
2. Accounting Process of Business Combinations not under the Same Control
The Company shall recognize the positive balance between the combination costs and the fair value of the identifiable net assetsobtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable netassets obtained from the acquire, the Company shall recheck the various identifiable assets and liabilities obtained from the acquire,fair value with liabilities, and measurement of combination costs. If the combination costs are less than the fair value of theidentifiable net assets obtained from the acquire after recheck, the Company shall the record the balance into the profit and loss of thecurrent period.
6. Methods for Preparing Consolidated Financial Statements
The Company as the parent included its all subsidiaries into the consolidation scope of consolidated financial statements. Based onthe financial statements of the Company as the parent and its subsidiaries and other related materials, the consolidated financialstatements were prepared by the Company as the parent according to Accounting Standards for Enterprises No. 33 –ConsolidatedFinancial Statements.
7. Classification of Joint arrangements and Accounting Treatment of Joint Operations
1. Joint arrangement is classified into joint operation and joint ventures.
2. When the Company is a party of a joint operation, recognize the following items related to the profits in the joint operation:
(1) Recognize the assets held independently, and recognize the assets held jointly in the holding portion;
(2) Recognize the liabilities borne independently, and recognize the liabilities held jointly in the holding portion;
(3) Recognize the revenue generated from the output portion of joint operation shared for selling the Company;
(4) Recognize the revenue generated from the sale of assets in joint operation in the holding portion of the Company;
(5) Recognize the expenses incurred independently, and recognize the expenses incurred in joint operation in the holding portion ofthe Company.
8. Recognition Standard for Cash and Cash Equivalents
The term “cash” listed and presented in the cash flow statement refers to cash on hand and deposits that are available for payment atany time. The term “cash equivalents” refers to short-term and highly liquid investments that are readily convertible to knownamounts of cash and which are subject to an insignificant risk of change in value.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Accounting treatments for translation of foreign currency business
As for a foreign currency transaction in its initial recognition, the amount in the foreign currency shall be translated into the amountin the Renminbi at the spot exchange rate of the transaction date. On balance sheet date, the foreign currency monetary items shall betranslated as the spot exchange rate on the balance sheet date, the balance occurred thereof shall be recorded into the profits andlosses at the current period except that the balance of exchange arising from the principal and interests of foreign currencyborrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetaryitems measured at the historical cost shall still be translated at the spot exchange rate on the transaction date, of which the amount offunctional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated atthe spot exchange rate on the confirming date of fair value, of which the balance of exchange shall be included into the profit andloss of the current period or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among theowner’s equity items, except for the items as “retained earnings”, other items shall be translated at the spot exchange rate at the timewhen they are incurred. The income and expense items in the income statements shall be translated at the approximate spot exchangerate at the time when they are incurred. The difference from translation of foreign currency financial statements thereof shall berecorded into other comprehensive income.
10. Financial Instruments
1. Classification of Financial Assets and Financial Liabilities
Financial assets shall be classified into the following three categories when they are initially recognized: (1) financial assetsmeasured at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair valuethrough profit or loss.Financial liabilities shall be classified into the following four categories when they are initially recognized: (1) financial liabilities atfair value through profit or loss; (2) financial liabilities generated from transfer of financial assets not conforming to requirements ofderecognition or continuous involvement of transferred financial assets; (3) financial guarantee contracts not belonging to above (1)
or (2), and loan commitments not belonging to above (1) and at lower interest rate than the market interest rate; (4) financialliabilities measured at amortized cost.
2. Recognition Basis, Calculation Method, and Termination of Recognition of Financial Assets and Liabilities
(1) Recognition basis and initial calculation method of financial assets and liabilities
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial liability. The financialassets and financial liabilities initially recognized shall be measured at their fair values. For the financial assets and liabilitiesmeasured at their fair values and of which the variation is recorded into the profits and losses of the current period, the transactionexpenses thereof shall be directly recorded into the profits and losses of the current period; for other categories of financial assets andfinancial liabilities, the transaction expenses thereof shall be included into the initially recognized amount. However, when theaccounts receivable initially recognized by the Company do not include significant financing or the Company does not consider thefinancing in contracts not over one year, it shall be initially calculated at the transaction price.
(2) Subsequent calculation method of financial assets
1) Financial assets at amortized cost
The Company shall make subsequent measurement on its financial assets at amortized cost by adopting the actual interest ratemethod. The gains or losses generated from the financial assets at amortized cost and not belonging to any hedging relationship shallbe recorded into the current profit of loss when decognized, reclassified, amortized with the actual interest rate method orrecognizing impairments.
2) Investments in debt instruments at fair value through other comprehensive income
The Company shall make subsequent measurement at fair value. The interest calculated by adopting the actual interest rate method,impairment losses or profits and foreign exchange gains shall be recorded into the current profit or loss, and other profits or lossesshall be recorded into other comprehensive income. When derecognized, the accumulative profits or losses thereof originallyrecorded into other comprehensive income shall be transferred out and then recorded into the current profit or loss.
3) Investments in equity instruments at fair value through other comprehensive income
The Company shall make subsequent measurement at fair value. The dividends obtained (exclude those belong to recovery ofinvestment cost) shall be recorded into the current profit or loss, and other gains or losses recorded into other comprehensive income.When derecognized, the accumulative gains or losses thereof originally recorded into other comprehensive income shall betransferred out and then recorded into the retained earnings.
4) Financial assets at fair value through profit or loss
The Company shall make subsequent measurement at fair value. The gains or losses generated (include interest and dividend income)shall be recorded into the current profit or loss, unless the financial asset is one part of a hedging relationship.
(3) Subsequent calculation method of financial liabilities
1) Financial liabilities at fair value through profit or loss
Such financial liabilities include trading financial liabilities (include derivative instruments belonging to financial liabilities) andthose designated as financial liabilities at fair value through profit or loss. For such financial liabilities, the subsequent measurementshall be conducted at fair value. The amount of changes in fair value of designated financial liabilities at fair value through profit orloss due to the Company’s credit risk changes shall be recorded into other comprehensive income, unless this treatment will result inor enlarge accounting mismatch of the profit or loss. The other gains or losses generated from such financial liabilities (includinginterest expense, changes of fair value not caused by the Company’s credit risk changes) shall be recorded into the current profit orloss, unless the they are one part of a hedging relationship. And when derecognized, the accumulative gains or losses thereoforiginally recorded into other comprehensive income shall be transferred out and then recorded into the retained earnings.
2) Financial liabilities generated from financial assets transfer not conforming to derecognition conditions or continuous involvementof transferred financial assetsThey shall be measured in accordance with regulations of Accounting Standards for Business Enterprises No.23-Transfer ofFinancial Assets
3) financial guarantee contracts not belonging to above (1) or (2), and loan commitments not belonging to above (1) and at lowerinterest rate than the market interest rate;The subsequent measurement shall be conducted according to the higher of the following two amounts after initial recognition: ①amount of allowance for impairments recognized in accordance with the impairment provisions of financial instruments; ② theresidual of initial recognized amount after deducted accumulative amortized amount recognized as relevant regulations.
4) Financial liabilities at amortized cost
The Company shall measure at amortized cost by adopting actual interest rate method. The gains or losses generated from financialliabilities at amortized cost and not belonging to any hedging relationship shall be recorded into the current profit or loss whenderecognized or amortized with actual interest rate method.
(4) Derecognition of financial assets and financial liabilities
1) Derecognize financial assets when meeting one of the following conditions:
① The contract rights for collecting cash flow of financial assets have terminated;
② Financial asset has been transferred and the transfer meets the provisions of Accounting Standards for Business EnterprisesNo.23-Transfer of Financial Assets governing the derecognition of financial assets.
2) When the current obligation of the financial liability (or some of it) has been relieved, the financial liability (or some of it) shall beaccordingly derecognized.
3. Recognition Basis and Measurement of Transfer of Financial Assets
Where the Company has transferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee,it shall stop recognizing the financial asset and separately recognize the rights and obligations generated retained from the transfer asassets or liabilities. If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall continue torecognize the transferred financial asset. Where the Company does not transfer or retain nearly all of the risks and rewards related tothe ownership of a financial asset, it shall deal with it according to the circumstances as follows, respectively: (1) If it gives up itscontrol over the financial asset, it shall stop recognizing the financial asset and separately recognize the rights and obligationsgenerated retained from the transfer as assets or liabilities; (2) If it does not give up its control over the financial asset, it shall,according to the extent of its continuous involvement in the transferred financial asset, recognize the related financial asset andrecognize the relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between the amounts of thefollowing 2 items shall be recorded in the profits and losses of the current period: (1) The carrying value of the transferred financialasset on the derecognition date; (2) The sum of consideration received from the transfer of financial assets, and derecognition amountamong the accumulative amount of the changes of the fair value originally recorded in the other comprehensive income (the financialassets involve transfer are investments in debt instruments at fair value through other comprehensive income. If the transfer of partialfinancial asset satisfies the conditions to stop the recognition, the entire carrying value of the transferred financial asset shall,between the portion whose recognition has been stopped and the portion whose recognition has not been stopped, be apportionedaccording to their respective relative fair value on the transfer date, and the difference between the amounts of the following twoitems shall be included into the profits and losses of the current period: (1)The carrying value of the portion whose recognition hasbeen stopped; (2)The sum of consideration of the portion whose recognition has been stopped, and derecognition amount among theaccumulative amount of the changes of the fair value originally recorded in the other comprehensive income (the financial assetsinvolve transfer are investments in debt instruments at fair value through other comprehensive income.
4. Recognition Method of Financial Assets and Financial Liabilities’ Fair Value
The Company adopts the valuation technique with sufficient useful data and supported by other information which is suitable for thecurrent situation to recognize the fair value of related financial assets and liabilities. The Company classifies the input value used inthe valuation technique into the following levels and uses them in sequence:
(1) The first level of input value is the non-adjustable offer of the same assets or liabilities in the active market on the calculationdate;
(2) The second level of input value is the directly or indirectly observable input value of related assets or liabilities except the inputvalue on the first level, including: offer of similar assets or liabilities in the active market; offer of identical or similar assets orliabilities in the non-active market; other observable input value except offer, including the observable interest rate during theinterval period of common offer, profit rate curve, etc.; the input value for market verification etc..
(3) The third level of input value is the non-observable input value of related assets or liabilities, including interest rates that cannotbe observed directly or verified by the data of observable market, stock fluctuation rate, future cash flow of the disposal obligationborne in corporate mergers, financial forecast based on self-data, etc..
5. Impairment of financial instrument
(1) Impairment measurement and accounting handling of financial instrument
Based on expected credit loss, the Company conducts impairment handling and confirms loss reserve for financial assets which ismeasured by amortized cost, debt instrument investment which is measured by fair value and whose change is calculated into othercomprehensive profits, accounts receivable of rental, loan commitment which is beyond financial debt classified as the one which ismeasured by fair value and whose change is calculated into current profits and losses, financial debt which does not belong to the onewhich is measured by fair value and whose change is calculated into current profits or losses, or financial guarantee contract offinancial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition oftermination or keeps on being involved in transferred financial asset.Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breachoccurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according toactual interest rate and receivable according to contract and all cash flow which to be charged as expected, i.e. current value of allcash shortage. Among it, as for financial asset purchased or original which has had credit impairment, it should be converted intocash according actual interest rate of this financial asset after credit adjustment.As for financial asset purchased or original which has had credit impairment, the Company only confirms cumulative change ofexpected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.For accounts receivable that do not contain significant financing components as specified in the Accounting Standards for BusinessEnterprises No. 14 - Revenue (including cases in which financing components in contracts with a period of less than one year are notconsidered according to the Standards), the Company uses the simplified model of expected credit loss, and consistently measures theloss provision according to the amount of expected credit loss of the entire duration.For accounts receivable that contain significant financing components and the rentals receivable as specified in the AccountingStandards for Business Enterprises No. 21 - Leases, the Group has made the accounting policy choice and selected the simplifiedmodel of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount of expectedcredit loss of the entire duration.As for financial asset beyond above mentioned measurement methods, the Company evaluates whether its credit risk has increasedobviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously, the Companymeasures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does notincrease obviously, the Company measures loss reserve according to the amount of expected credit loss in next 12 months.By utilizing obtainable rational and well grounded information, including forward-looking information, comparing the risk ofcontract breach on balance sheet date and risk of contract breach on initial confirmation date, the Company confirms whether thecredit risk of financial instrument has increased obviously from initial confirmation.On balance sheet date, in case the Company judges that the financial instrument just has relatively low credit risk, then it will beassumed that credit risk of the financial instrument has not increased obviously.Based on single financial instrument or financial portfolio, the Company evaluates expected credit risk and measures expected creditloss. When based on financial instrument portfolio, the Company takes common risk characteristics as the basis, and divides financialinstruments into different portfolios.The Company measures expected credit loss again on each balance sheet date, the increase of loss reserve or amount which is
transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset whichis measured by amortized cost, loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debtinvestment which is measured by fair value and whose change is calculated into other comprehensive profits, the Company confirmsits loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.
(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses
| Item | Recognition basis | Method of measuring expected credit losses |
| Other receivables-intercourse funds among related party group within the consolidation scope | Accounts nature | Consulting historical experience in credit losses, combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the next 12 months or the entire life |
| Other receivables-interest receivable group | ||
| Other receivables-other intercourse funds among related party group | ||
| Other receivables-credit risk characteristics group | Aging group | Consulting historical experience in credit losses, combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the next 12 months or the entire life |
(3) Accounts receivable with expected credit losses measured by groups
① Specific groups and method of measuring expected credit loss
| Item | Recognition basis | Method of measuring expected credit losses |
| Bank’s acceptance bills receivable | Bill type | Consulting historical experience in credit losses, combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the entire life |
| Trade acceptance bills receivable | ||
| Accounts receivable-other intercourse funds among related party group | Account nature | Consulting historical experience in credit losses, combining actual situation and prediction for future economic situation, the group’s expected credit loss rate shall be accounted through exposure at default and the expected credit loss rate within the entire life |
| Accounts receivable-credit risk characteristics group | Aging group | Prepare the comparative list between aging of accounts receivable and expected credit loss rate over the entire life by consulting historical experience in credit losses, combining actual situation and prediction for future economic situation |
② Accounts receivable-the comparative list between aging of common customer group and expected credit loss rate over the entirelife
| Aging | Expected credit loss rate of accounts receivable (%) |
| Within 1 year (inclusive, the same below) | 3.00 |
| 1 to 2 years | 10.00 |
| 2 to 3 years | 30.00 |
| 3 to 4 years | 50.00 |
| 4 to 5 years | 80.00 |
| Over 5 years | 100.00 |
6. Offset between financial asset and financial debt
Financial asset and financial debt are listed in the balance sheet separately and don’t offset each other. However, when the followingconditions are met at the same time, the Company will list the net amount after mutual offset in the balance sheet: (1) The Companyhas the legal right to offset the confirmed amount, and the legal right is executable currently; (2) The Company plans to settle by netamount, or monetize the financial asset and liquidate the financial debt at the same time. For those transfers of financial assets notmeeting the derecognition conditions, the Company does not offset the transferred financial assets and relative liabilities.
11. Notes Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
12. Accounts Receivable
Refer to Note V 10 Financial Instruments of the financial statements for details.
13. Accounts Receivable Financing
Not applicable.
14. Other Receivables
Recognition and accounting treatment methods regarding expected credit losses of other receivablesRefer to Note V 10 Financial Instruments of the financial statements for details.
15. Inventory
(1) Inventories Classification
Inventories include development land held for sale or consumption in the process of development and operation, developmentproducts, temporarily leased development products which intended for sale, relocation housing, stock materials, inventory equipment,and low-value consumables, etc., as well as development costs in the process of development.
(2) Cost Flow Assumption
1) Send-out materials and equipment shall adopt the moving weighted average method.
2) During the development of the project, the development land shall be included in the development cost of the project by the floorarea apportion of the developed products.
3) Send-out developed products shall be accounted by specific identification method.
4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely bystages according to the expected useful life of the same kind of fixed assets of the Company.
5) If the public supporting facilities are completed earlier than the relevant development products, after the final account of the publicsupporting facilities， it shall be account into the development cost of the relevant development projects according to the buildingarea; If the public supporting facilities are completed later than the relevant development products, the relevant development products
shall withhold the public supporting facilities fees, and adjust the relevant development product costs according to the differencebetween the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.
(3) Recognition basis of Net Realizable Value of Inventory
On the balance sheet date, inventory shall be measured at the lower of cost or net realizable value, and provision shall be made forfalling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.Inventories directly for sale, under normal producing process, to the amount after deducting the estimated sale expense and relevanttaxes from the estimated sell price of the inventory, the net realizable value has been recognized; inventories which need to beprocessed, under normal producing process, to the amount after deducting the estimated cost of completion, estimated sale expenseand relevant taxes from the estimated sale price of produced finished goods, the net realizable value has been recognized; on thebalance sheet date, in the same item of inventories, if some have contractual price agreement while others do not, the net realizablevalue shall be recognized respectively and compared with their cost, and the amount of provision withdrawal or reversal for fallingprice of inventories shall be recognized respectively.
(4) Inventory System for Inventories
Inventory system: Perpetual inventory system
(5) Amortization Method of the Low-value Consumption Goods and Packing Articles
1) Low-value Consumption Goods
One-off amortization method
2) Packing Articles
One-off amortization method
16. Contract Assets
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillmentof its contract performance obligations and its customers’ payment. Considerations that the Company has the right to collect forcommodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.For contract assets that do not contain significant financing components, the Company uses the simplified model of expected creditloss, measuring the loss provision according to an amount that is equivalent to the amount of expected credit loss of the entireduration. The increased loss provision or reversed amount thereof shall be recorded into the current profit or loss as impairmentlosses or gains.For contract assets that contain significant financing components, the Company has made the accounting policy choice and selectedthe simplified model of expected credit loss, measuring the loss provision according to an amount that is equivalent to the amount ofexpected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the currentprofit or loss as impairment losses or gains.
17. Contract Costs
Contract costs comprise contract performance cost and contract acquisition cost.The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meetsthe following conditions:
1) This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor, direct materials,manufacture costs (or similar costs), costs specified to be borne by the customer and other costs incurred from this contract solely.
2) This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.
3) This cost is expected to be recovered.
An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an assetas contract acquisition cost. However, for such asset with an amortization period of less than one year, the Company recognizes them
into current profit/loss at their occurrence.Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related tosuch assets.When the carrying value of an asset related to contract costs is higher than the difference between the following two items, theCompany will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:
1) Residual consideration expected to be gained from transferring commodities and services related to this asset;
2) Costs expected to be incurred from transferring such commodities or services.
When the aforementioned asset impairment provision is reversed later, the carrying value of the asset after the reversal should notexceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.
18. Assets Held for Sale
1. Classification of Non-current assets or disposal group Held for Sale
Non-current assets or disposal group are confirmed to be the components held for sale when the following conditions aresimultaneously satisfied: (1) According to the convention of similar transactions selling this kind of assets or disposal group, they canbe sold instantly in such conditions. (2) Sale is extremely likely to happen, that is, the Company has made the decision of a sale plan,and got the confirmed purchase commitment. It is estimated that the sale will be finished within 1 year.Non-current assets or disposal groups specifically obtained by the Company for resale will be classified as held-for-sale on theacquisition date when they meet the stipulated conditions of “expected to be sold within one year” on the acquisition date, and maywell satisfy the category of held-for-sale within a short time (which is usually 3 months).If any transaction between non-related parties fails to complete within one year due to one of the following reasons outside theCompany’s control, and the Company still commits to sell non-current assets or disposal groups, the non-current assets or disposalgroups shall be still classified as the held-for-sale category: (1) For conditions of sale delay resulting from the accidental setting bythe buyer or another party, the Company has duly taken actions against those conditions and it is expected that the delay factors canbe smoothly solved within one year since the conditions of sale delay resulting from the setting; (2) Non-current assets or disposalgroups held for sale fail to be sold within one year due to rare circumstances, and the Company has taken necessary measures againstthose new situations within the first year and re-satisfied the conditions for classifying them into the held-for-sale category.
2. Measurement of held-for-sale non-current assets or disposal groups
(1) Initial measurement and subsequent measurement
For the initial measurement and the re-measurement of held-for-sale non-current assets or disposal groups on the balance sheet date,if the carrying value is higher than the net amount of the fair value deducting the selling expenses, the carrying value shall be writtendown to the net amount of the fair value deducting the selling expenses. The written down amount shall be recognized as assetimpairment losses and recorded into current profits or losses, and at the same time, the held-for-sale asset impairment provision shallbe withdrawn.In respect of non-current assets or disposal groups classified into the held-for-sale category on the date of obtainment, when initiallymeasuring them, compare the initially measured amount supposing that they are not classified into the held-for-sale category and theamount of the fair value deducting the selling expenses, and measure them at the lower amount. Other than the non-current assets ordisposal groups obtained in corporate mergers, the difference generated from the net amount of the fair value of non-current assets ordisposal groups deducting the selling expenses as the initially measured amount shall be recorded into current profits or losses.For the amount of asset impairment losses recognized in respect of held-for-sale disposal groups, first write off the carrying value ofgoodwill in the disposal groups, and then write off their carrying value in proportion according to the percentage of the carryingvalue of each non-current asset in the disposal groups.Depreciation or amortization shall not be withdrawn for held-for-sale non-current assets or the non-current assets in disposal groups,while the interests of liabilities and other expenses in held-for-sale disposal groups shall still be recognized.
(2) Accounting Methods for the Recovery of Assets Impairment Losses
If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheet date minus the sale costsincreases, the previous written-down amount will be restored, and reversed to the asset impairment loss confirmed after the assetsbeing classified as held-for-sale. The reversed amount will be included in the current profit or loss. Impairment losses on assetsrecognized prior to classification as held for sale are not reversed.If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet date minus the sale costsincreases, the previous written-down amount will be restored, and reversed to the asset impairment loss confirmed after the assetsbeing classified as held-for-sale. The reversed amount will be included in the current profit or loss. The carrying value of deductedgoodwill and the non-current assets applicable to the measurement of held-for-sale categories will not be reversed if the assetimpairment loss is recognized before it is classified as held for sale.For the subsequent reversal amount of the asset impairment loss recognized by the disposal group held for sale, its carrying valueshall be increased proportionately to the proportion of the carrying value of various non-current assets measured by the disposalgroup in addition to goodwill.
(3) Accounting Methods for Ceasing to be classified as held-for-sale and Termination of RecognitionWhen a non-current asset or disposal group ceases to be classified as held-for-sale or a non-current asset is removed out from theheld-for-sale disposal group due to failure in meeting the classification conditions for the category of held-for-sale, it will bemeasured by one of the followings whichever is lower: ① The carrying value before being classified as held for sale will beadjusted according to the depreciation, amortization or impairment that would have been recognized under the assumption that it wasnot classified as held for sale; ② The recoverable amount.When terminating the recognition of non-current assets or disposal group held for sale, the unconfirmed gains or losses shall berecorded into the current profits and losses.
19. Investments in Debt Obligations
Not applicable.
20. Investments in other Debt Obligations
Not applicable.
21. Long-term Accounts Receivable
Not applicable.
22. Long-term Equity Investments
1. Judgment of Joint Control and Significant Influences
The term "joint control" refers to the joint control over an arrangement in accordance with the related agreements, which does notexist unless the participants sharing the control power agree with each other about the related arranged activity. The term "significantinfluences" refers to the power to participate in making decisions on the financial and operating policies of an enterprise, but not tocontrol or do joint control together with other parties over the formulation of these policies.
2. Recognition of Investment Cost
(1) If the business combination is under the common control and the acquirer obtains long-term equity investment in theconsideration of cash, non-monetary asset exchange, bearing acquiree’s liabilities, or the issuance of equity securities, the initial costis the carrying amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between the initial
cost of the long-term equity investment and the carrying amount of the paid combination or the total amount of the issued sharesshould be adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earnings are adjusted respectively.When a long-term equity investment is formed from the business combination under common control through the Company’smultiple transactions step by step, the treatment shall be carried out based on whether the transactions constitute the “package deal”.If they do, the accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with theacquisition of control. If they do not, the initial investment cost shall be the portion of the carrying value of acquiree’s net assetsentitled in the consolidated financial statements of the final controller after the consolidation. The difference between the initialinvestment cost of the long-term equity investment on the combination date and the carrying value of the investment before thecombination plus the carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shallbe adjusted to capital reserve; if the capital reserve is insufficient for the adjustment, retained earnings should be adjustedaccordingly.
(2) For those formed from the business combination under different control, the initial investment cost is the fair value of thecombination consideration paid on the acquisition date.When a long-term equity investment is formed from the business combination under different control through the Company’smultiple transactions step by step, the accounting treatment shall be carried out based on whether the financial statements areindividual or consolidated:
1) In individual financial statements, the initial investment cost accounted in cost method is the sum of the carrying value of theequity investment originally held and the cost of new investment.
2) In consolidate financial statements, judge whether the transactions constitute the “package deal”. If they do, the accountingtreatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they donot, for the acquiree’s equity held before the acquisition date, re-measurement shall be carried out according to the fair value of theequity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into currentinvestment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted inequity method, other comprehensive income related to it shall be transferred into the income for the period in which the acquisitiondate falls, with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets ofthe defined benefit pension plans be re-measured for setting by the investees.
3) For those formed other than from business combination: If they are acquired in cash payment, the initial investment cost is thepurchase price actually paid; if they are acquired in the issue of equity securities, the initial investment cost is the fair value of theissued equity securities; if they are acquired in debt restructuring, the initial investment cost shall be recognized according to theAccounting Standards for Enterprises No. 12 - Debt Restructuring; if they are acquired in the exchange of non-monetary assets, theinitial investment shall be recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-MonetaryAssets.
3. Method of subsequent measurement and recognition of profits and losses
Long-term equity investment with control over investees shall be accounted in cost method; long-term equity investment onassociated enterprises and joint ventures shall be accounted in equity method.
4. Method of treating the disposal of the investment in a subsidiary stem by step through multiple transactions until the lossof the controlling right
(1) Individual financial statements
For the disposed equity, the difference between its fair value and the actually obtained price shall be recorded into current profits orlosses. For the residual equity, the part that still has significant effects on investees or with common control jointly with other partiesshall be accounted in equity method; the part that has no more control, common control or significant effects on investees shall beaccounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition andMeasurement of Financial Instruments.
(2) Consolidated financial statements
1) For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,which do not constitute the “package deal”Before the loss of the controlling right, for the balance between the disposal remuneration and the shares of net assets in thesubsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-termequity investment, capital reserve (capital premium) shall be adjusted, and if the capital premium is not sufficient for the write-down,the retained earnings shall be written down.At the loss of the controlling right over the original subsidiaries, the residual equity shall be re-measured at its fair value on the dateof losing the controlling right. The difference between the consideration obtained in the equity disposal, plus the fair value of theremaining equities, less the Company’s share of net assets enjoyed of the former subsidiary that has been calculated since theacquisition date or combination date according to the former shareholding ratio, shall be recorded into the investment gains for theperiod when the control ceases; meanwhile, goodwill shall be written down. Other comprehensive income related to formersubsidiary's equity investment shall be transferred into current investment income when the control ceases.
2) For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions,which constitute the “package deal”The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiaryand losing control. However, before losing control, the difference between each disposal price before losing the control, and thecorresponding net assets share enjoyed of subsidiary when disposing long-term equity investment, shall be recognized as othercomprehensive income in the consolidated financial statements and when the control ceases, transferred into current profits or lossesof the period of losing control.
23. Investment Property
Measurement mode of investment real estatesMeasurement of cost methodDepreciation or amortization method
1. The term "investment real estate" includes the right to use any land which has already been rented, the right to use any land whichis held and prepared for transfer after appreciation, and the right to use any building which has already been rented.
2. The Company initially measures the investment property according to the costs, and adopts the cost method in the subsequentmeasurement of investment property, and adopts the same methods with fixed assets and intangible assets to withdraw depreciationor amortization.
24. Fixed Assets
(1) Recognized Standard of Fixed Assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake ofproducing commodities, rendering labor service, renting or business management; and their useful life is in excess of one fiscal year.No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits are likely toflow into the enterprise; (2) The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
| Category | Depreciation method | Useful life (year) | Expected net salvage value | Annual deprecation |
| Houses and buildings | Straight-line depreciation | 20-25 | 5-10 | 3.6-4.75 |
| Transportation | Straight-line depreciation | 5 | 5 | 19 |
| Other equipment | Straight-line depreciation | 5 | 5 | 19 |
| Machinery equipment | Straight-line depreciation | 5 | 5 | 19 |
| Decoration of fixed assets | Straight-line depreciation | 5 | 0 | 20 |
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable.
25. Construction in Progress
1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1) The economicbenefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably. Construction in progress shallbe measured according to the occurred actual costs before the assets available for the intended use.
2. When the construction in progress is available for the intended use, it shall be transferred to fixed assets according to the actualcost of the project. For construction in progress available for the intended use but not dealing with final accounts of completedproject, it shall be transferred to fixed assets according to the estimated value first, and then adjust original temporarily estimatedvalue based on the actual costs after the final accounts of completed project, but not adjust the depreciation that was alreadycalculated.
26. Borrowing Costs
1. Recognition Principle of Capitalization of Borrowing Costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production ofassets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall berecognized as expenses when it occurred, and shall be recorded into the current profits and losses.
2. Capitalization Period of Borrowings Costs
(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The assetdisbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction orproduction activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption periodlasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during suchperiod shall be recognized as expenses, and shall be recorded into the profits and losses of the current period, till the acquisition andconstruction or production of the asset restarts.
(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intendeduse or sale, the capitalization of borrowing costs shall be stopped.
3. Capitalized rate and amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount ofborrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discountand premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment
income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose ofacquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applyinga capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purposeborrowing.
27. Biological Assets
Not applicable.
28. Oil and Gas Assets
Not applicable.
29. Right-of-use Assets
Not applicable.
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Intangible assets include right to use land sites, use right of software etc. and conduct the initial measurement according to the costs.
2. With regard to intangible assets with limited service life, it shall be amortized systematically and reasonably within their service lifeaccording to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expectedimplementation reliably, it shall be amortized by straight-line method. The specific useful lives are as follows:
| Items | Useful life for amortization (years) |
| Use right of lands | Statutory life of land use right |
| Use right of software | 5 |
The intangible assets with uncertain service life shall not be amortized, and the Company rechecks the service life of the intangibleassets in every accounting period. For intangible assets with uncertain service, the recognition basis is without certain service life andexpected benefit life.
(2) Accounting Policies of Internal R&D Expenses
Not applicable.
31. Impairment of Long-term Assets
For long-term assets, such as investment property measured by cost model, fixed assets, construction in progress, and intangibleassets with limited service life measured by cost model, the Company shall estimate the recoverable amount if there are signs ofimpairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination,whether or not there is sign of impairment, impairment test shall be conducted every year. Goodwill combination and its relatedassets group or combination of assets group shall be conducted the impairment test.If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value, it shall make the preparation for
assets impairment based on its balance and be recorded into current profits and losses.
32. Long-term Prepaid Expenses
Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that haveoccurred. Long-term prepaid expense shall be recorded into the account according to the actual accrual. Long-term prepaid expenseshall be amortized averagely within benefit period or specified period. In case of no benefit in the future accounting period, theamortized value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
33. Contract Liabilities
The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillmentof its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferringcommodities or providing services to customers, as the Company has received or should receive customers’ considerations, arepresented as contract liabilities.
34. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period when the employees providing the service for the Company, the actual short-term compensation shallbe recognized as liabilities, and be recorded into the current profits and losses or related assets costs.
(2) Accounting Treatment of the Welfare after Demission
The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans (1) During theaccounting period when the employee providing service for the Company, the amount paid in line with the setting drawing plan willbe recognized as liabilities and recorded into current profits or losses or cost of relevant assets.
(2) The accounting treatment of defined benefit plans usually consists of the following steps:
1) According to the expected cumulative welfare unit method, adopt unbiased and mutually consistent actuarial assumptions toevaluate related demographic variables and financial variables, measure the obligations generated from defined benefit plans andrecognize the period in respect of related obligations. Meanwhile, discount the obligations generated from defined benefit plans torecognize their present value and the current service costs;
2) If there are any assets in a defined benefit plan, the deficit or surplus formed from the present value of the defined benefit planobligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefitplan. If there is any surplus in a defined benefit plan, the net assets of the plan shall be measured at the lower of the surplus or theupper asset limit;
3) At the end of the period, the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs,net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets ofthe plan. Service costs and net interests of the net liabilities or net assets of the plan shall be recorded into the current profits or lossesor related asset costs, while changes from the re-measurement of the net liabilities or net assets of the plan shall be recorded intoother comprehensive income and shall not be transferred back to profits or losses in subsequent accounting periods. But the amountsrecognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting Treatment of Demission Welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, orwhen recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demissionwelfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting Treatment of Other Welfare of the Long-term Employees
The Company provides the other long-term employee benefits for the employees, and for those met with the defined contributionplans, accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for theothers long-term employee benefits except for the former, accounting treatment should be conducted according to the relatedregulations of the defined benefit plans. In order to simplify the related accounting treatment, the payrolls shall be recognized asservice costs, the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total netamounts made up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees againshall be recorded into the current profits and losses or related assets costs.
35. Lease Liabilities
Not applicable.
36. Provisions
1. The obligation such as external guaranty, litigation or arbitration, product quality assurance, loss contract, pertinent to acontingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: ① That obligationis a current obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result ofperformance of the obligation; and ③ The amount of the obligation can be measured in a reliable way.
2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed for performing therelated current obligation and recheck the carrying value of accrued liabilities on balance sheet date.
37. Share-based Payment
Not applicable.
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable.
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
(1) Recognition of revenue
The Company gains revenue mainly from property sales, property management and property leasing (refer to 42. Leasing for moredetail).The Company recognizes revenue when it has fulfilled the obligation of contract performance, namely, when it has acquired thecontrol of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of thecommodity and to gain almost all economic interests thereof.
(2) The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a timeperiod” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards, andrecognizes revenue according to the following principles.
1) When the Company meets one of the following conditions, the obligation should be classified as a contract performance obligationfulfilled in a specific time period:
① The customer gains and consumes the economic interests brought by the Company’s contract performance when the Companyperforms the contract.
② The customer is able to control the assets in progress during the Company’s contract performance.
③ The assets produced during the Company’s contract performance have irreplaceable use, and the Company has the right to collectpayment in respect of its completed contract performance accumulated as of now throughout the entire contract period.For a contract performance obligation fulfilled in a time period, the Company recognizes revenue according to the progress towardscontract completion in that period, but excluding the case when such progress cannot be reasonably determined. The Company uses theoutput or input method to determine the right progress towards contract completion by considering the nature of the commodity.
2) For one that is classified as a contract performance obligation fulfilled at a time point instead of in a time period, the Companyrecognizes revenue when the customer acquires the control over the related commodity.In judging whether the customer has acquired the control over a commodity, the Company considers the following signs:
① The Company is entitled to the current right of payment collection in respect of the commodity. In other words, the customer has thecurrent obligation to pay for the commodity.
② The Company has transferred the legal ownership of the commodity to the customer. In other words, the customer has owned thelegal ownership of the commodity.
③ The Company has transferred the physical commodity to the customer. In other words, the customer has taken physical possessionof the commodity.
④ The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words, thecustomer has acquired the major risks and remunerations in respect of the ownership of the commodity.
⑤ The customer has accepted the commodity.
⑥ Other signs indicating that the customer has acquired control over the commodity.
Specific policies of the Company for recognizing revenue:
(1) Real Estate Sales Contracts
The realization of sales revenue shall be recognized under the following conditions: the developed products have been completed andaccepted, the sales contract has been signed and the obligations stipulated in the contract have been fulfilled, the main risks andrewards of ownership of the developed products have been transferred to the buyer at the same time, the Company shall no longerretain the continuous management rights normally associated with ownership and effectively control the sold developed products, therevenue amount can be measured reliably, the related economic benefits are likely to flow in, and the related costs that have occurredor will occur can be measured reliably.For the sale of self-occupied housing, the realization of sales income shall be recognized under the following conditions: the mainrisks and rewards of ownership of self-occupied houses are transferred to the buyer, the Company will no longer retain thecontinuous management rights normally associated with ownership and effectively control the sold development products, theamount of income can be measured reliably, relevant economic benefits are likely to flow in, the relevant costs that have occurred orwill occur can be measured reliably.Only recognizing the sales income realization under the following conditions: acquired the real estate completed and accepted asqualified (the completion and acceptance reports), signed an irreversible sales contract, obtained the buyer's payment certificate (forthose who chose bank mortgage, the first installment and the full amount of bank mortgage must be required; for those who did notchoose the bank mortgage to make their payment, the full house payment must be required) issued the notice of repossession (if theowner fails to go through the formalities in time within the specified time limit the building shall be deemed as repossessed).
(2) Providing Labor Services
If the provision of labor services can be reliably estimated (all the following conditions are met: ① The amount of income can bemeasured reliably; ②The relevant economic benefits are likely to inflow to the Company; ③ The progress of the transaction can be
reliably determined; ④ The cost incurred and to be incurred in the transaction can be measured reliably), it shall recognize therevenue from providing services employing the percentage-of-completion method, and confirm the completion of labor serviceaccording to the costs incurred as a percentage of the total estimated costs. If the Company can’t, on the date of the balance sheet,reliably estimate the outcome of a transaction concerning the labor services it provides, it shall be handled under the followingconditions: If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services shallbe recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carriedforward at the same amount; If the cost of labor services incurred is not expected to compensate, the cost incurred should be includedin the current profits and losses, and no revenue from the providing of labor services may be recognized.Property management revenue shall be recognized when property management services have been provided, economic benefitsrelated to property management services can flow into the enterprise, and costs related to property management can be reliablymeasured.
(3) Transferring the Right to Use Assets
The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevanteconomic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall berecognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenueshall be recognized according to the chargeable time and method stipulated in related contracts and agreements.According to the lease date and lease amount agreed in the lease contract and agreement, the realization of rental property incomeshall be recognized when relevant economic benefits are likely to flow in.
(4) Other Business Income
According to the stipulations of relevant contracts and agreements, when the economic benefits related to the transaction can flowinto the enterprise and the costs related to the income can be reliably measured, the realization of other business income shall beconfirmed.
(3) Measurement of Revenue
The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performanceobligations. In determining a transaction price, the Company considers the impact of a number of factors, including variableconsideration, significant financing components in contracts, non-cash consideration, and consideration payable to customers.
1) Variable consideration
The Company determines the best estimate of variable consideration according to the expected value or the amount most likely tooccur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognizedrevenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether thesignificant reversal of accumulated recognized revenue is almost impossible or not, a company should concurrently consider thepossibility and weight of the revenue reversal.
2) Significant financing component
When a contract contains any financing component, the Company should determine the transaction price according to the amountpayable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between thetransaction price and the contract consideration should be amortized in the effective interest method during the contract period.
3) Non-cash consideration
When a customer pays non-cash consideration, the Company should determine the transaction price according to the fair value of thenon-cash consideration. When such fair value cannot be reasonably estimated, the Company will indirectly determine the transactionprice by reference to the individual price committed by the Company for transferring the commodity to the customer.
4) Consideration payable to a customer
For consideration payable to a customer, the Company should deduct the transaction price from the consideration payable, anddeduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of theconsideration to the customer, whichever is earlier, but excluding the case in which the consideration payable to the customer is for
the purpose of acquiring from the customer other commodities that can be obviously distinguished.If the Company’s consideration payable to a customer is for the purpose of acquiring from the customer other commodities that canbe obviously distinguished, the Company should confirm the commodity purchased in the same way as in its other purchases. Whenthe Company’s consideration payable to a customer exceeds the fair value of the commodity that can be obviously distinguished, theexceeded amount should be used to deduct the transaction price. If the fair value of the commodity acquired from the customer thatcan be obviously distinguished cannot be reasonably estimated, the Company should deduct the transaction price from theconsideration payable to the customer.
Differences in accounting policies for the recognition of revenue caused by different business models for the same type of businessNot applicable.
40. Government Grants
1. If the government subsidies meet with the following conditions at the same, it should be recognized: (1) The entity willcomply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is amonetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset,it shall be measured at its fair value, and shall be measured at a nominal amount when the fair value cannot be obtained reliably.
2. Judgment basis and accounting methods of government subsidies related to assets
The government subsidies that are acquired for construction or form long-term assets in other ways according to governmentdocuments shall be defined as asset-related government subsidies. For those not specified in government documents, the judgmentshall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired withconstruction or the formation of long-term assets in other ways as fundamental conditions, they shall be recognized as asset-relatedgovernment subsidies. For asset-related government subsidies, the carrying value of related assets shall be written down orrecognized as deferred income. If asset-related government subsidies are recognized as deferred income, it shall be recorded intoprofits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured atthe nominal amount shall be directly recorded into current profits or losses. If related assets are sold, transferred, disposed of ordestroyed before the end of their life, the undistributed balance of related deferred income shall be transferred into the profits orlosses for the period of the asset disposal.
3. Judgment basis and accounting treatment of profits-related government subsidies
Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. Forgovernment subsidies consisting of both asset-related parts and profits-related parts, which is difficult to judge whether they arerelated to assets or profits, the entirety shall be classified as profits-related government subsidies. Profits-related governmentsubsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall beincluded into the current profit/losses during the period when the relevant expenses or losses are recognized; those subsidies used tocompensate the related expenses or losses incurred shall be directly included into the current profits/losses.
4. Government subsidies related to the Company’s routine operating activities shall be included into other income or write downrelated costs according to the economic business nature. Government subsidies not related to the Company’s routine activities shallbe included into non-operating income and expenditure.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases according to the taxlaw, the balance between the tax bases and its carrying amount) between the carrying amount of assets or liabilities and their taxbases, deferred tax assets and deferred tax liabilities should be recognized at the tax rates that are expected to apply to the periodwhen the asset is realized or the liability is settled.
2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductibletemporary differences. At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will beavailable against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shallbe recognized.
3. The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that sufficient taxableprofit will not be available against which the deductible temporary difference can be utilized, the Company shall write down thecarrying amount of deferred tax asset, or reverse the amount written down later when it’s probable that sufficient taxable profit willbe available.
4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income taxexpenses or revenue, except in the following circumstances: (1) Business combination; (2) The transaction or event directly includedin owner’ equity.
42. Lease
(1) Accounting Treatment of Operating Lease
As a Lessee, the Company shall record the rent into relevant assets cost or recognize it as the current profit or loss on a straight-linebasis over the lease term. The initial direct costs incurred shall be recognized as the current profit or loss; Contingent rents shall becharged into the current profit or loss when they are incurred.The Company as a lessor recognizes the payment from its operating lease as rental revenue in the straight line method in differentperiods of a lease term. It capitalizes the initial direct costs incurred relating to the operating lease, amortizes the costs on the samebasis for the recognition of rental revenue during the lease term, and records them into current profits/losses across different periods.For the fixed assets in operating lease assets, the Company should depreciate them according to the depreciation policy for similarassets; for other operating lease assets, the Company should amortize them in systematic and reasonable methods according to theaccounting standards for business enterprises application to such assets. The Company determines whether there is any impairment toits operating lease assets according to the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets, and performsthe corresponding accounting treatment.
(2) Accounting Treatments of Financial Lease
For the lessee, a fixed asset acquired under finance lease shall be valued at the lower of the fair value of the leased asset and thepresent value of the minimum lease payments at the inception of lease. The minimum lease payments as the entering value inlong-term account payable, the difference as unrecognized financing charges; the initial direct costs shall be directly recorded intoleasing asset value. At each period during the lease term, the effective interest rate method shall be adopted to calculate and confirmthe current financing charge.On the initial date of financial lease, lessee of the financial lease shall record the sum of the minimum lease payments and initialdirect costs as the financing lease accounts receivable, and also record the non-guaranteed residual value; recognize the differencebetween the total minimum lease payments, initial direct costs, non-guaranteed residual value and sum of the present value as theunrealized financing income; At each period during the lease term, the effective interest rate method shall be adopted to calculate andconfirm the current financing income.
43. Other Important Accounting Policies and Accounting Estimations
(1) Confirmation standard and accounting handling method for operation terminationComponents which meet one of the following conditions, have been disposed or divided as held for sale category and can be
distinguished separately are confirmed as operation termination.
1) The component represents one important independent main business or one single main operation area.
2) The component is one part of a related plan which plans to dispose one independent main business or one single main operationarea.
3) The component is a subsidiary which is obtained for resale specially.
(2) Accounting Method for Maintenance fund and Quality Deposit
1) Maintenance fund accounting method
According to the local relevant regulations of the development project, the maintenance fund shall collect from the buyers, orwithdraw from the development costs of the Company’s relevant development products when development products sell (pre-sell),and shall uniformly turn them over to the maintenance fund management department.
2) Quality deposit accounting method
The quality guarantee fund shall be reserved from the project fund of the construction unit according to the provisions of theconstruction contract. Maintenance fees incurred during the warranty period of the developed products shall be offset against thequality guarantee deposit; After the expiration of the warranty period agreed upon in the development of products, the balance of thequality guarantee deposit shall be returned to the construction unit.
(3) Segmental report
The Group recognizes the operating segments according to the internal organization structure, the management requirements and theinternal report system. Operating segments refer to the compose parts of the Group which meet with the following conditions at thesame time:
1) the compose part could cause revenues and expenses in the daily activities;
2) the management layer could periodically evaluate the operation results of the compose part and base which to distribute theresources and evaluate the performance;
3) the Group could acquire the relevant accounting information of the financial conditions, operation results and the cash flows of thecompose part through analysis.
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□ Applicable √ Not applicable
(2) Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Revenue or Leases since 2020ApplicableWhether items of balance sheets at the beginning of the year need to be adjusted
√ Yes □ No
Consolidated balance sheet
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets: | |||
| Monetary assets | 3,297,890,935.91 | 3,297,890,935.91 | |
| Settlement reserve | |||
| Interbank loans granted | |||
| Held-for-trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 216,923,663.25 | 216,923,663.25 | |
| Accounts receivable financing | |||
| Prepayments | 69,546,774.17 | 69,546,774.17 | |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 917,981,165.74 | 917,981,165.74 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Financial assets purchased under resale agreements | |||
| Inventories | 4,913,510,876.66 | 4,913,510,876.66 | |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 42,500,585.94 | 42,500,585.94 | |
| Total current assets | 9,458,354,001.67 | 9,458,354,001.67 | |
| Non-current assets: | |||
| Loans and advances to customers | |||
| Investments in debt obligations | |||
| Investments in other debt obligations | |||
| Long-term receivables |
| Long-term equity investments | 45,076,122.72 | 45,076,122.72 | |
| Investments in other equity instruments | 1,580,475.86 | 1,580,475.86 | |
| Other non-current financial assets | |||
| Investment property | 503,323,428.61 | 503,323,428.61 | |
| Fixed assets | 93,557,782.83 | 93,557,782.83 | |
| Construction in progress | |||
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 700,369.66 | 700,369.66 | |
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | 7,034,472.79 | 7,034,472.79 | |
| Deferred income tax assets | 658,153,122.73 | 658,153,122.73 | |
| Other non-current assets | 4,711,963.66 | 4,711,963.66 | |
| Total non-current assets | 1,314,137,738.86 | 1,314,137,738.86 | |
| Total assets | 10,772,491,740.53 | 10,772,491,740.53 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Borrowings from the central bank | |||
| Interbank loans obtained | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 577,689,139.10 | 577,689,139.10 | |
| Advances from customers | 728,186,032.63 | 33,972,360.94 | -694,213,671.69 |
| Contract liabilities | 694,213,671.69 | 694,213,671.69 | |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and |
| interbank deposits | |||
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Employee benefits payable | 143,493,868.80 | 143,493,868.80 | |
| Taxes payable | 2,598,283,291.68 | 2,598,283,291.68 | |
| Other payables | 1,149,104,928.85 | 1,149,104,928.85 | |
| Including: Interest payable | |||
| Dividends payable | 12,202,676.04 | 12,202,676.04 | |
| Handling charges and commissions payable | |||
| Reinsurance payables | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | 3,921,032.24 | 3,921,032.24 | |
| Other current liabilities | |||
| Total current liabilities | 5,200,678,293.30 | 5,200,678,293.30 | |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | 2,193,833,000.00 | 2,193,833,000.00 | |
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | 2,903,327.87 | 2,903,327.87 | |
| Deferred income | 341,259.63 | 341,259.63 | |
| Deferred income tax liabilities | 3,821.08 | 3,821.08 | |
| Other non-current | 108,164,737.46 | 108,164,737.46 |
| liabilities | |||
| Total non-current liabilities | 2,305,246,146.04 | 2,305,246,146.04 | |
| Total liabilities | 7,505,924,439.34 | 7,505,924,439.34 | |
| Owners’ equity: | |||
| Share capital | 595,979,092.00 | 595,979,092.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserves | 80,488,045.38 | 80,488,045.38 | |
| Less: Treasury stock | |||
| Other comprehensive income | -2,698,371.44 | -2,698,371.44 | |
| Specific reserve | |||
| Surplus reserves | 17,060,448.05 | 17,060,448.05 | |
| General reserve | |||
| Retained earnings | 2,457,119,795.39 | 2,457,119,795.39 | |
| Total equity attributable to owners of the Company as the parent | 3,147,949,009.38 | 3,147,949,009.38 | |
| Non-controlling interests | 118,618,291.81 | 118,618,291.81 | |
| Total owners’ equity | 3,266,567,301.19 | 3,266,567,301.19 | |
| Total liabilities and owners’ equity | 10,772,491,740.53 | 10,772,491,740.53 |
Notes to the adjustmentsThe Company starts to implement the Accounting Standards for Business Enterprises No.14-Revenue revised bythe Ministry of Finance since 1 January 2020. As required by the connection regulation for the old and newstandards, the information of comparative period was not adjusted, and the beginning retained earnings or othercomprehensive income of the Reporting Period shall be retroactively adjusted for the difference between theoriginal standards and the new one when implemented on the first execution date.Balance sheet of the Company as the parent
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets: | |||
| Monetary assets | 2,455,001,204.14 | 2,455,001,204.14 | |
| Held-for-trading financial assets |
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 755,932.14 | 755,932.14 | |
| Accounts receivable financing | |||
| Prepayments | 496,729.09 | 496,729.09 | |
| Other receivables | 501,082,153.81 | 501,082,153.81 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Inventories | 624,499,208.02 | 624,499,208.02 | |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 1,113,935.28 | 1,113,935.28 | |
| Total current assets | 3,582,949,162.48 | 3,582,949,162.48 | |
| Non-current assets: | |||
| Investments in debt obligations | |||
| Investments in other debt obligations | |||
| Long-term receivables | |||
| Long-term equity investments | 1,070,542,003.11 | 1,070,542,003.11 | |
| Investments in other equity instruments | 1,810,975.86 | 1,810,975.86 | |
| Other non-current financial assets | |||
| Investment property | 312,638,785.76 | 312,638,785.76 | |
| Fixed assets | 26,337,488.29 | 26,337,488.29 | |
| Construction in progress | |||
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets |
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | 605,416.29 | 605,416.29 | |
| Deferred income tax assets | 343,958,821.07 | 343,958,821.07 | |
| Other non-current assets | 1,613,657,031.92 | 1,613,657,031.92 | |
| Total non-current assets | 3,369,550,522.30 | 3,369,550,522.30 | |
| Total assets | 6,952,499,684.78 | 6,952,499,684.78 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 64,503,938.37 | 64,503,938.37 | |
| Advances from customers | 320,469.53 | 320,469.53 | |
| Contract liabilities | |||
| Employee benefits payable | 36,735,205.68 | 36,735,205.68 | |
| Taxes payable | 1,322,751,671.37 | 1,322,751,671.37 | |
| Other payables | 3,146,684,268.89 | 3,146,684,268.89 | |
| Including: Interest payable | |||
| Dividends payable | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | |||
| Other current liabilities | |||
| Total current liabilities | 4,570,995,553.84 | 4,570,995,553.84 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preferred shares |
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred income tax liabilities | |||
| Other non-current liabilities | 40,000,000.00 | 40,000,000.00 | |
| Total non-current liabilities | 40,000,000.00 | 40,000,000.00 | |
| Total liabilities | 4,610,995,553.84 | 4,610,995,553.84 | |
| Owners’ equity: | |||
| Share capital | 595,979,092.00 | 595,979,092.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserves | 53,876,380.11 | 53,876,380.11 | |
| Less: Treasury stock | |||
| Other comprehensive income | -2,051,268.24 | -2,051,268.24 | |
| Specific reserve | |||
| Surplus reserves | 16,403,637.61 | 16,403,637.61 | |
| Retained earnings | 1,677,296,289.46 | 1,677,296,289.46 | |
| Total owners’ equity | 2,341,504,130.94 | 2,341,504,130.94 | |
| Total liabilities and owners’ equity | 6,952,499,684.78 | 6,952,499,684.78 |
Notes to the adjustments
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any NewStandards Governing Revenue or Leases since 2020
√ Applicable □ Not applicable
In accordance with the coherent regulations of the new revenue standards, the Company has started to disclose accounting statementsaccording to the requirements of the new revenue standards since the first quarter of 2020, with no retroactive adjustment to thecomparable data of 2019, and thus no impact on the Company’s related financial indicators of 2019. It is expected that the
implementation of the new revenue standards will not result in significant changes in the Company’s method of recognizing itsrevenue, and thus will not produce significant influence on the its net profits, total assets and net assets for both the previous andcurrent periods.
45. Other
In the Note of the financial statements, the data of the period-beginning refers to the financial statement data on 1 January 2020; thedata of the period-end refers to the financial statement data on 30 June 2020; the Reporting Period refers to the first half of 2020; thesame period of last year refers to the first half of 2019. The same to the Company as the parent.VI Taxes
1. Main Taxes and Tax Rates
| Category of taxes | Tax basis | Tax rate |
| VAT | Sales of goods or provision of taxable services | [Note 1] |
| Urban maintenance and construction tax | Turnover tax payable | Applied to 7%, 1% separately according to the regional level |
| Enterprise income tax | Taxable income | 25% [Note 2] |
| VAT of land | Added value generated from paid transfer of the use right of state-owned lands and property right of above-ground buildings and other attachments | Four progressive levels with the tax rate ranging from 30% to 60% of transferring real estate added value |
| Real estate tax | Levied according to price: paid according to 1.2% of the residual value of the real estate’s original value after deducted 30% at once; levied according to lease: paid according to 12% of the rental income | |
| Education surcharge | Turnover tax payable | 3% |
| Local education surcharge | Turnover tax payable | 2% |
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
| Name | Income tax rate |
| Chongqing Shenzhen International Trade Center Property Management Co., Ltd. | 15% |
| Shenzhen SZPRD Housing Assets Operation and Management Co., Ltd. | 20% |
| Shenzhen Guomao Catering Co., Ltd. | 20% |
| Shenzhen Property Engineering and Construction Supervision Co., Ltd. | 20% |
| Shenzhen Julian Human Resources Development Co.,Ltd. | 20% |
| Shenzhen Huazhengpeng Property Management Development Co., Ltd. | 20% |
| Shenzhen Jinhailian Property Management Co.,Ltd. | 20% |
| Shenzhen Zhongtongda House Xiushan Service Co.,Ltd. | 20% |
| Shenzhen Kangping Industry Co.,Ltd. | 20% |
| Shenzhen Teacher Family Training Co., Ltd. | 20% |
| Shenzhen Education Industry Co., Ltd. | 20% |
| Shenzhen Yufa Industry Co., Ltd. | 20% |
| Chongqing Aobo Elevator Co., Ltd. | 20% |
| Subsidiaries registered in Hong Kong area | 16.5% |
| Other taxpaying bodies within the consolidated scope | 25% |
2. Tax Preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging category of theGuidance Catalogue of Industry Constructure Adjustment (Y2011), the western industry met with the conditions should be collectedthe corporate income tax according to 15% of the tax rate. The subsidiary of the Group Chongqing Shenzhen International TradeCenter Property Management Co., Ltd. applies to above policy.According to the State Administration of Taxation Notice on the Implementation of Inclusive Tax Relief Policy for Small and MicroEnterprises (Fiscal [2019] No.13), from 1 January 2019, to 31 December 2021, the portion of the annual taxable income of small andmicro enterprises that does not exceed RMB1 million shall be included in the taxable income at a reduced rate of 25%, and theenterprise income tax shall be paid at a tax rate of 20%. If the annual taxable income exceeds RMB1 million and does not exceedRMB3 million, it shall be included in the taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at a taxrate of 20%. This policy applies to 12 subsidiaries of our group from 2019 onwards, including Chongqing Aobo Elevator Co., Ltd.,Shenzhen International Trade Center Catering Co., Ltd., etc.
3. Other
Note 1. Taxable items and tax rate of the VAT of the Company and its subsidiaries are as follows:
| Type of the revenue | General rate | Percentage charges of |
| Sales of house property | 9% | 5% |
| Rent of real estate | 9% | 5% |
| Property service | 6% | 3% |
| Catering service | 6% | 3% |
| Others | 13% | -- |
VII. Notes to Major Items in the Consolidated Financial Statements of the Company
1. Monetary Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 164,191.19 | 130,048.49 |
| Bank deposits | 3,056,664,559.86 | 3,276,826,087.46 |
| Other monetary assets | 22,112,922.57 | 20,934,799.96 |
| Total | 3,078,941,673.62 | 3,297,890,935.91 |
| Of which: the total amount deposited overseas | 55,767,421.33 | 54,480,940.07 |
| The total amount with restricted right of use for mortgage, pledge or freeze | 22,871,902.65 | 12,545,702.44 |
Other notes:
Other monetary assets were RMB22,112,922.57, among which, the cash deposits for guarantees of RMB1,120,910.60, cash depositsfor L/G of RMB49,020.00, frozen assets of bank’s account of RMB7,074,255.32, bank deposits of RMB3,078,941,673.62 includingRMB14,627,716.73 of interest of fixed time deposits withdrawn at the end of the Reporting Period. The above was not recognized ascash and cash equivalents for restrictions on use.
2. Held-for-trading Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Of which: | ||
| Of which: |
Other notes:
3. Derivative Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Of which: | ||||||||||
| Of which: | ||||||||||
Bad debt provision separately accrued:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
Bad debt provision withdrawn according to groups:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
Notes of the basis of recognizing the group:
If the bad debt provision for notes receivable was withdrawn in accordance with the general model of expected credit losses,information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting PeriodBad debt provision withdrawn in the Reporting Period:
Unit: RMB
| Category | Beginning balance | Increase/decrease | Ending balance | |||
| Withdrawn | Reversed or collected | Verified | Other | |||
Of which, bad debt provision collected or reversed with significant amount:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
| Item | Amount |
(4) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due on theBalance Sheet Date at the Period-end
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contractor Agreement
Unit: RMB
| Item | Amount of the notes transferred to accounts receivable at the period-end |
Other notes:
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
| Item | Amount |
Of which, verification of significant notes receivable:
Unit: RMB
| Name of the entity | Nature | Amount | Reason | Procedure | Whether occurred because of related-party transactions |
Notes of the verification of notes receivable:
5. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable with single bad debt provision accrued | 106,118,180.93 | 26.14% | 104,557,885.00 | 98.53% | 1,560,295.93 | 106,958,370.47 | 31.79% | 105,293,364.00 | 98.44% | 1,665,006.47 |
| Of which: | ||||||||||
| Accounts receivable with bad debt provision withdrawn according to groups | 299,789,574.27 | 73.86% | 18,484,443.78 | 6.17% | 281,305,130.49 | 229,476,481.62 | 68.21% | 14,217,824.84 | 6.20% | 215,258,656.78 |
| Of which: | ||||||||||
| Total | 405,907,755.20 | 100.00% | 123,042,328.78 | 30.31% | 282,865,426.42 | 336,434,852.09 | 100.00% | 119,511,188.84 | 35.52% | 216,923,663.25 |
Single bad debt provision accrued:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 93,811,328.05 | 100.00% | Involved in lawsuit and no executable property |
| Shenzhen Tewei Industry Co., Ltd. | 2,836,561.00 | 2,836,561.00 | 100.00% | Uncollectible for a long period |
| Lunan Industry Corporation | 2,818,284.84 | 2,818,284.84 | 100.00% | Poor operating conditions, uncollectible for a long period |
| Those with insignificant single amount for which bad debt provision separately accrued | 6,652,007.04 | 5,091,711.11 | 76.54% | Uncollectible for a long period |
| Total | 106,118,180.93 | 104,557,885.00 | -- | -- |
Single bad debt provision accrued: 104,557,885.00
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
Single bad debt provision accrued:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
Bad debt provision withdrawn according to groups:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Within 1 year | 264,110,788.95 | 7,923,323.67 | 3.00% |
| 1 to 2 years | 20,041,644.72 | 2,004,164.47 | 10.00% |
| 2 to 3 years | 9,164,177.05 | 2,749,253.12 | 30.00% |
| 3 to 4 years | 1,022,267.33 | 511,133.66 | 50.00% |
| 4 to 5 years | 770,636.82 | 616,509.46 | 80.00% |
| Over 5 years | 4,680,059.40 | 4,680,059.40 | 100.00% |
| Total | 299,789,574.27 | 18,484,443.78 | -- |
Notes of the basis of recognizing the group:
Bad debt provision withdrawn according to groups: 18,484,443.78
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
Notes of the basis of recognizing the group:
Bad debt provision withdrawn according to groups:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
Notes of the basis of recognizing the group:
If the bad debt provision for accounts receivable was withdrawn in accordance with the general model of expected credit losses,information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 264,110,788.95 |
| 1 to 2 years | 20,041,644.72 |
| 2 to 3 years | 9,164,177.05 |
| Over 3 years | 112,591,144.48 |
| 3 to 4 years | 1,022,267.33 |
| 4 to 5 years | 770,636.82 |
| Over 5 years | 110,798,240.33 |
| Total | 405,907,755.20 |
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Bad debt provision withdrawn for the Reporting Period:
Unit: RMB
| Category | Beginning balance | Increase/decrease | Ending balance | |||
| Withdrawn | Reversed or collected | Verified | Other | |||
| Bad debt provision separately accrued | 105,293,364.00 | 735,479.00 | 104,557,885.00 | |||
| Bad debt provision withdrawn according to groups | 14,217,824.84 | 6,014,981.36 | 1,748,362.42 | 18,484,443.78 | ||
| Total | 119,511,188.84 | 6,014,981.36 | 2,483,841.42 | 123,042,328.78 | ||
Of which, bad debt provision reversed or collected with significant amount:
Unit: RMB
| Name of the entity | Amount reversed or collected | Method |
(3) Accounts Receivable with Actual Verification for the Reporting Period
Unit: RMB
| Item | Amount verified |
Of which, verification of significant accounts receivable:
Unit: RMB
| Name of the entity | Nature | Amount verified | Reason for verification | Procedure | Whether occurred because of related-party transactions |
Notes of the verification of accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
| Name of units | Ending balance of accounts receivable | % of total ending balance of accounts receivable | Ending balance of bad debt provision |
| Shenzhen Bay Technology Development Co., Ltd. | 112,143,815.18 | 27.63% | 3,364,314.46 |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 23.11% | 93,811,328.05 |
| Shenzhen Meiya Industry Development Co.,Ltd. | 8,282,669.14 | 2.04% | 248,480.07 |
| Shenzhen Canglege Culture Development | 7,355,950.65 | 1.81% | 735,595.07 |
| Co.,Ltd. | |||
| Tao Bao(China)Software Co.,Ltd. | 6,733,723.71 | 1.66% | 202,011.71 |
| Total | 228,327,486.73 | 56.25% |
(5) Derecogniziton of Accounts Receivable due to the Transfer of Financial Assets
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofAccounts ReceivableOther notes:
6. Accounts Receivable Financing
Unit: RMB
| Item | Ending balance | Beginning balance |
Increase or decrease of accounts receivable financing and changes in fair value thereof
□ Applicable √ Not applicable
If the depreciation reserve for accounts receivable financing was withdrawn in accordance with the general model of expected creditlosses, the information related to depreciation reserve shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Other notes:
7. Prepayments
(1) List by Aging Analysis
Unit: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 33,261,589.57 | 39.14% | 36,985,187.03 | 53.18% |
| 1 to 2 years | 21,767,574.33 | 25.61% | 3,797,085.70 | 5.46% |
| 2 to 3 years | 6,611,483.93 | 7.78% | 8,360,467.04 | 12.36% |
| Over 3 years | 23,342,786.71 | 27.47% | 20,404,034.40 | 29.00% |
| Total | 84,983,434.54 | -- | 69,546,774.17 | -- |
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
The prepayment aging over 1 year are the various prepaid taxes, like land VAT, urban construction tax and educational surtax ofprepayment of real estate projects still not reaching the recognition of income conditions according to tax law; the relevantprocedures of conscience money including land price transaction fees and municipal supporting facilities fee hasn’t been completedyet.
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
| Name of units | Carrying amount | As % of the total ending balance of the prepayments (%) |
| Shenzhen Qianhai Advanced Information Service Co., Ltd. | 24,000,000.00 | 28.24% |
| Financial Committee of Shenzhen | 19,509,471.00 | 22.96% |
| Tax Bureau of Tongshan District in Xuzhou-prepaid taxes | 14,632,771.32 | 17.22% |
| Tax Bureau of Hanjiang District in Yangzhou-prepaid taxes | 14,590,007.43 | 17.17% |
| Jiangsu Hanjian Group | 6,000,000.00 | 7.06% |
| Subtotal | 78,732,249.75 | 92.64% |
Other notes:
The total amount of top 5 of the ending balance of the prepayments was RMB78,732,249.75, accounting for 92.64% of the totalending balance of the prepayments.
8. Other Receivables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Other receivables | 800,159,718.50 | 917,981,165.74 |
| Total | 800,159,718.50 | 917,981,165.74 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
2) Significant Overdue Interest
Unit: RMB
| Entity | Ending balance | Overdue time | Overdue reason | Whether occurred impairment and the judgment basis |
Other notes:
3) Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Category of Dividends Receivable
Unit: RMB
| Item (or investees) | Ending balance | Beginning balance |
2) Significant Dividends Receivable Aged over 1 Year
Unit: RMB
| Item (or investees) | Ending balance | Aging | Reason | Whether occurred impairment and the judgment basis |
3) Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Margin | 11,937,978.73 | 13,439,816.18 |
| Cash deposit | 50,181,204.02 | 30,202,817.84 |
| Petty cash | 3,372,169.60 | 1,853,585.88 |
| Payments on behalf | 3,614,977.44 | 5,218,908.47 |
| External intercourse funds | 772,468,837.47 | 915,411,567.13 |
| Other | 11,171,931.51 | 9,087,762.19 |
| Total | 852,747,098.77 | 975,214,457.69 |
2) Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2020 | 29,257,660.02 | 27,975,631.93 | 57,233,291.95 | |
| Balance of 1 January 2020 in the Current Period | —— | —— | —— | —— |
| Withdrawal of the Current Period | 644,205.48 | 644,205.48 | ||
| Reversal of the Current Period | 5,290,117.16 | 5,290,117.16 | ||
| Balance of 30 June 2020 | 24,611,748.34 | 27,975,631.93 | 52,587,380.27 |
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 65,695,400.47 |
| 1 to 2 years | 10,979,858.36 |
| 2 to 3 years | 735,332,705.48 |
| Over 3 years | 40,739,134.46 |
| 3 to 4 years | 1,256,744.97 |
| 4 to 5 years | 1,456,487.66 |
| Over 5 years | 38,025,901.83 |
| Total | 852,747,098.77 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodWithdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes | Ending balance | |||
| Withdrawal | Recovery or reversal | Write-off | Other | |||
| Individual withdrawal of bad debt provision | 27,975,631.93 | 27,975,631.93 | ||||
| Withdrawal of bad debt provision by groups | 29,257,660.02 | 644,205.48 | 5,290,117.16 | 24,611,748.34 | ||
| Total | 57,233,291.95 | 644,205.48 | 5,290,117.16 | 52,587,380.27 |
Of which bad debt provision revered or recovered with significant amount:
Unit: RMB
| Name of the entity | Reversed or collected amount | Method |
Not applicable.
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
| Item | Amount |
Of which: significant actual verification of other receivables:
Unit: RMB
| Name of the entity | Nature | Amount | Reason | Procedure | Whether occurred because of related-party transactions |
Notes of verification of other receivables:
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to ending balance of other receivables% | Ending balance of bad debt provision |
| Shenzhen Xinhai Holding Co., Ltd. | Intercourse funds | 401,499,990.18 | 1 to 2 years | 47.10% | |
| Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. | Intercourse funds | 330,472,932.33 | 1 to 2 years | 38.80% | |
| Shenzhen Bangling Stock Cooperative Company | Margin | 30,000,000.00 | Within 1 year | 3.50% | 900,000.00 |
| Affordable Housing Development Center of Tongshan District | Regulatory capital for presale of commercial | 18,700,000.00 | Within 1 year | 2.20% | 561,000.00 |
| in Xu Zhou | buildings | ||||
| Shanghai Yutong Real estate development Co., Ltd. | External intercourse funds | 5,676,000.00 | Over 5 years | 0.70% | 5,676,000.00 |
| Total | -- | 786,348,922.51 | -- | 92.21% | 7,137,000.00 |
6) Accounts Receivable Involving Government Grants
Unit: RMB
| Name of the entity | Project of government grants | Ending balance | Aging at period-end | Estimated recovering time, amount and basis |
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofOther ReceivablesOther notes:
9. Inventories
Whether the Company needs to comply with the disclosure requirements for real estate industryYes
(1) Category of Inventories
The Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information DisclosureGuidelines No.3-Listed Companies Engaged in Real Estate IndustryClassified by nature
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Falling price reserves of inventory or depreciation reserves of contract performance cost | Carrying value | Carrying amount | Falling price reserves of inventory or depreciation reserves of contract performance cost | Carrying value | |
| Development costs | 5,124,846,218.88 | 6,648,404.13 | 5,118,197,814.75 | 4,528,429,076.71 | 6,648,404.13 | 4,521,780,672.58 |
| Development of | 249,723,454.92 | 249,723,454.92 | 390,363,836.20 | 390,363,836.20 | ||
| products | ||||||
| Raw materials | 1,579,497.98 | 482,284.52 | 1,097,213.46 | 1,743,790.82 | 484,117.43 | 1,259,673.39 |
| Inventory good | 2,137,983.91 | 2,094,300.39 | 43,683.52 | 2,132,162.67 | 2,094,300.39 | 37,862.28 |
| Low-value consumption goods | 69,398.16 | 69,398.16 | 68,832.21 | 68,832.21 | ||
| Total | 5,378,356,553.85 | 9,224,989.04 | 5,369,131,564.81 | 4,922,737,698.61 | 9,226,821.95 | 4,913,510,876.66 |
Disclose main items of development costs and interest capitalization in the following format:
Unit: RMB
| Name of project | Date of commencement | Estimated date of completion | Estimated total investment | Beginning balance | Transferred to development of products for this period | Other decrease for this period | Increase (Development costs) for this period | Ending balance | Accumulative amount of capitalized interests | Of which: amount of capitalized interests for this period | Capital resources |
| Guanlan Bangling project | 6,433,000,000.00 | 3,004,198,155.43 | 512,610,632.86 | 3,516,808,788.29 | Bank loan | ||||||
| SZPRD-Banshan Yujing Phase II | 15 March 2019 | 30 June 2021 | 110,750,000.00 | 103,895,147.96 | 24,663,371.66 | 128,558,519.62 | Other | ||||
| SZPRD-Golden Collar’s Resort –Building A&CA | 1 March 2014 | 1 July 2019 | 1,100,000,000.00 | 579,765,854.55 | 32,705,483.60 | 612,471,338.15 | 6,299,523.27 | 3,628,687.20 | Bank loan; other | ||
| SZPRD-Fuchang Garden Phase II | 1 December 2018 | 31 December 2022 | 969,290,000.00 | 581,416,971.33 | 4,506,740.21 | 585,923,711.54 | Other | ||||
| Yupin Luanshan | 215,502,512.42 | 21,930,913.84 | 237,433,426.26 | Other | |||||||
| Hainan Qiongshan Land | 6,648,404.13 | 6,648,404.13 | Other | ||||||||
| Shenhui Garden | 37,002,030.89 | 37,002,030.89 | Other |
| Total | -- | -- | 8,613,040,000.00 | 4,528,429,076.71 | 596,417,142.17 | 5,124,846,218.88 | 6,299,523.27 | 3,628,687.20 | -- |
Disclose main items of “Development of products” in the following format:
Unit: RMB
| Name of project | Date of completion | Beginning balance | Increase | Decrease | Ending balance | Accumulative amount of capitalized interests | Of which: amount of capitalized interests for this period |
| SZPRD-Langqiao International | 1 December 2012 | 11,517,196.11 | 11,517,196.11 | ||||
| SZPRD-Hupan Yujing Phase I | 1 June 2015 | 64,058,372.70 | 3,120,801.03 | 60,937,571.67 | 10,446,911.43 | ||
| SZPRD-Banshan Yujing Phase I | 30 November 2016 | 29,392,977.73 | 14,355,009.56 | 15,037,968.17 | 27,205,315.95 | ||
| SZPRD-Songhu Langyuan | 1 July 2017 | 27,098,111.12 | 1,439,087.77 | 25,659,023.35 | 30,539,392.65 | ||
| SZPRD-Hupan Yujing Phase II | 1 November 2017 | 90,059,024.33 | 3,521,708.01 | 86,537,316.32 | |||
| SZPRD-Golden Collar’s Resort –Building B | 1 December 2019 | 158,235,034.42 | 118,203,774.91 | 40,031,259.51 | 1,206,675.51 | 0.00 | |
| International Trade Center Plaza | 1 December 1995 | 4,839,083.10 | 4,839,083.10 | ||||
| Huangyuyuan A Area | 1 June 2001 | 790,140.58 | 790,140.58 | ||||
| Podium Building of Fuchang Building | 1 November 1999 | 645,532.65 | 645,532.65 |
| Other projects | 3,728,363.46 | 3,728,363.46 | 83,077,702.96 | ||||
| Total | -- | 390,363,836.20 | 140,640,381.28 | 249,723,454.92 | 167,109,484.65 | 0.00 |
Classification of “Developing properties with the collection of payments in installments”, “Renting developing properties” and“Temporary Housing”:
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
(2)Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Disclosure of falling provision withdrawal of inventory in the following format:
Classified by nature:
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Note | ||
| Withdrawal | Other | Reversal or write-off | Other | ||||
| Development costs | 6,648,404.13 | 6,648,404.13 | |||||
| Raw materials | 484,117.43 | 1,832.91 | 482,284.52 | ||||
| Inventory good | 2,094,300.39 | 2,094,300.39 | |||||
| Total | 9,226,821.95 | 1,832.91 | 9,224,989.04 | -- | |||
Classification by main project:
Unit: RMB
| Name of project | Beginning balance | Increase | Decrease | Ending balance | Notes | ||
| Withdrawal | Other | Reversal or write-off | Other | ||||
| Hainan Qiongshan Land | 6,648,404.13 | 6,648,404.13 | |||||
| Total | 6,648,404.13 | 6,648,404.13 | -- | ||||
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
| Item | Period-begin | Reporting Period | Carry-over in Current Period | Period-end |
| SZPRD-Banshan Yujing | 740,173.97 | 740,173.97 | 0.00 |
| Phase I | ||||
| SZPRD-Songhu Langyuan | 43,719.56 | 43,719.56 | 0.00 | |
| SZPRD-Langqiao International | 2,971,986.54 | 2,971,986.54 | ||
| SZPRD-Hupan Yujing Phase I | 1,624,566.49 | 7,148.09 | 1,617,418.40 | |
| SZPRD-Golden Collar’s Resort | 3,097,352.86 | 3,628,687.20 | 873,040.00 | 5,853,000.06 |
| Subtotal | 8,477,799.43 | 3,628,687.20 | 1,664,081.62 | 10,442,405.00 |
(4) Inventory Limit
Disclosed by project
Unit: RMB
| Name of project | Beginning balance | Ending balance | Reason for the Limit |
10. Contract Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Falling price reserves | Carrying value | Carrying amount | Falling price reserves | Carrying value | |
Amount of significant changes in carrying value of contract assets in the Reporting Period and reasons thereof:
Unit: RMB
| Item | Amount changed | Reason |
If the bad debt provision for contract assets in accordance with the general model of expected credit losses, the information related tothe bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
Withdrawal of impairment provision for contract assets in the Reporting Period
Unit: RMB
| Item | Withdrawn | Reversed | Write-off/verified | Reason |
Other notes:
11. Held-for-sale Assets
Unit: RMB
| Item | Ending carrying amount | Impairment provision | Ending carrying value | Fair value | Estimated disposal expense | Estimated disposal time |
Other notes:
12. Current Portion of Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Significant investments in debt obligations /other investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
Other notes:
13. Other Current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pre-paid VAT | 2,685,619.81 | 34,043,807.16 |
| Deducted input tax | 13,798,096.71 | 8,191,279.34 |
| Other | 16,750.10 | 265,499.44 |
| Total | 16,500,466.62 | 42,500,585.94 |
Other notes:
14. Investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
Significant investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
Withdrawal of impairment provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss | Expected loss in the duration (credit impairment | Expected loss in the duration (credit impairment |
| of the next 12 months | not occurred) | occurred) | ||
| Balance of 1 January 2020 in the Reporting Period | —— | —— | —— | —— |
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
Other notes:
15. Other Investments in Debt Obligations
Unit: RMB
| Item | Beginning balance | Accrued interest | Change in fair value in the Reporting Period | Ending balance | Costs | Accumulated changes in fair value | Accumulated provision for losses recognized in other comprehensive income | Note |
Significant other investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
Withdrawal of impairment provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2020 in the Reporting Period | —— | —— | —— | —— |
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
Other notes:
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
| Item | Ending balance | Beginning balance | Interval of discount rate | ||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | ||
Impairment of bad debt provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2020 in the Reporting Period | —— | —— | —— | —— |
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
(2) Derecogniziton of Long-term Receivables due to the Transfer of Financial Assets
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofLong-term ReceivablesOther notes
17. Long-term Equity Investments
Unit: RMB
| Investees | Beginning balance (carrying value) | Increase/decrease | Ending balance (carrying value) | Ending balance of depreciation reserves | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of depreciation reserves | Other | ||||
| I. Joint ventures | |||||||||||
| Jifa Warehouse Co., Ltd. | 38,614,771.66 | 43,811.79 | 38,658,583.45 | ||||||||
| Shenzhen Tian’an | 6,461,351.06 | 113,250.00 | 6,574,601.06 | ||||||||
| International Building Property Management Co., Ltd. | ||||||||||||
| Subtotal | 45,076,122.72 | 157,061.79 | 45,233,184.51 | |||||||||
| II. Associated enterprises | ||||||||||||
| Shenzhen Wufang Pottery & Porcelain Industrial Co., Ltd. | 18,983,614.14 | 18,983,614.14 | 18,983,614.14 | |||||||||
| ShenzhenKangfu Health Products Co., Ltd. | 165,000.00 | 165,000.00 | 165,000.00 | |||||||||
| Shenzhen Xinghao Imitation Porcelain Co., Ltd. | 756,670.68 | 756,670.68 | 756,670.68 | |||||||||
| Shenzhen Social Welfare Company Fuda Electronics Factory | 326,693.24 | 326,693.24 | 326,693.24 | |||||||||
| Shenzhen Fulong Industry Development Co. , Ltd. | 1,684,350.00 | 1,684,350.00 | 1,684,350.00 | |||||||||
| Haonianhua Hotel | 2,733,570.05 | 2,733,570.05 | 2,733,570.05 | ||||||||
| Shenzhen Education Fund Longhua Investment | 500,000.00 | 500,000.00 | 500,000.00 | ||||||||
| Shenzhen Kangle Sports Club Huangfa Branch | 540,060.00 | 540,060.00 | 540,060.00 | ||||||||
| Dankeng village plants of Fumin in Guanlan town | 1,168,973.20 | 1,168,973.20 | 1,168,973.20 | ||||||||
| Shenzhen Bull Entertainment Co. , Ltd. | 500,000.00 | 500,000.00 | 500,000.00 | ||||||||
| Shenzhen Lianhua Caitian Property Management Co., Ltd. | 1,475,465.91 | 1,475,465.91 | 1,475,465.91 | ||||||||
| Shenzhen Yangyuan Industrial Co., Ltd. | 1,030,000.00 | 1,030,000.00 | 1,030,000.00 | ||||||||
| JiakaifengCo., Ltd. Bao’an Company | 600,000.00 | 600,000.00 | 600,000.00 | ||||||||
| Guiyuan Garage | 350,000.00 | 350,000.00 | 350,000.00 |
| ShenzhenWuweiben Roof Greening Co., Ltd. | 500,000.00 | 500,000.00 | 500,000.00 | |||||||||
| ShenzhenYuanping Plastic Steel Doors Co., Ltd. | 240,000.00 | 240,000.00 | 240,000.00 | |||||||||
| ShenzhenYoufang Printing Co., Ltd. | 100,000.00 | 100,000.00 | 100,000.00 | |||||||||
| Shenzhen Lusheng Industrial Development Co., Ltd. | 100,000.00 | 100,000.00 | 100,000.00 | |||||||||
| Subtotal | 31,754,397.22 | 31,754,397.22 | 31,754,397.22 | |||||||||
| Total | 76,830,519.94 | 76,987,581.73 | 31,754,397.22 | |||||||||
Other notes
18. Other Equity Instrument Investment
Unit: RMB
| Item | Ending balance | Beginning balance |
| Gintian Industry (Group) Co., Ltd. | 1,134,803.13 | 1,580,475.86 |
| Total | 1,134,803.13 | 1,580,475.86 |
Disclosure of non-trading equity instrument investment
Unit: RMB
| Name | Dividend income recognized | Accumulative gains | Accumulative losses | Amount of other comprehensive income transferred to retained earnings | Reason for assigning to measure by fair value and the changes be included in other | Reason of other comprehensive income transferred to retained earnings |
| comprehensive income | ||||||
| Gintian Industry (Group) Co., Ltd. | 2,496,940.97 | Not aiming at gaining earnings by selling equity |
Other notes:
19. Other Non-current Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
| Item | Houses and buildings | Land use right | Construction in progress | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 835,776,692.89 | 30,262,437.05 | 866,039,129.94 | |
| 2.Increased amount of the period | 3,495,053.34 | 3,495,053.34 | ||
| (1) Outsourcing | ||||
| (2)Transfer from inventory/fixed assets/ construction in progress | 3,252,075.05 | 3,252,075.05 | ||
| (3)Enterprise combination increase | ||||
| (4) Translation of foreign currency denominated financial statements | 242,978.29 | 242,978.29 | ||
| 3. Decreased amount of the period | ||||
| (1) Disposal | ||||
| (2) Other transfer | ||||
| 4. Ending balance | 839,271,746.23 | 30,262,437.05 | 869,534,183.28 |
| II.Accumulative depreciation and accumulative amortization | ||||
| 1. Beginning balance | 347,900,357.76 | 14,815,343.57 | 362,715,701.33 | |
| 2.Increased amount of the period | 18,103,551.47 | 263,796.30 | 18,367,347.77 | |
| (1)Withdrawal or amortization | 18,103,551.47 | 263,796.30 | 18,367,347.77 | |
| 3. Decreased amount of the period | ||||
| (1) Disposal | ||||
| (2) Other transfer | ||||
| 4. Ending balance | 366,003,909.23 | 15,079,139.87 | 381,083,049.10 | |
| III. Depreciation reserves | ||||
| 1. Beginning balance | ||||
| 2.Increased amount of the period | ||||
| (1) Withdrawal | ||||
| 3. Decreased amount of the period | ||||
| (1) Disposal | ||||
| (2) Other transfer | ||||
| 4. Ending balance | ||||
| IV. Carrying value | ||||
| 1. Ending carrying value | 473,267,837.00 | 15,183,297.18 | 488,451,134.18 | |
| 2.Beginning carrying value | 487,876,335.13 | 15,447,093.48 | 503,323,428.61 |
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable √ Not applicable
The Company needs to comply with the disclosure requirements of Guideline No. 3 of the Shenzhen Stock Exchange on theIndustrial Information Disclosure about Listed Companies’ Engagement in Real Estate Business
Investment properties measured in fair value disclosed by project:
Unit: RMB
| Name of project | Geographical location | Date of completion | Building area | Lease income during this Reporting Period | Beginning fair value | Ending fair value | Range of fair value changes | Reason for fair value changes and report index |
Whether the Company has new investment properties in construction period measured in fair value
□ Yes √ No
Whether the Company has new investment properties measured in fair value
□ Yes √ No
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
| Item | Carrying value | Reason |
| 02-01 plot of Statutory plan in Baolong East Area | 9,170,778.00 | Replaced from the construction of Xiamen-Shenzhen Railway, and hasn’t exchanged for the new certification |
| 507 units, Block No. 6, Maguling | 27,263.51 | The house is used for property management, once occupied by the third party, a property management company, now has been recovered, but hasn’t handled the warrant yet. |
Other notes
21. Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed assets | 89,296,825.77 | 93,557,782.83 |
| Total | 89,296,825.77 | 93,557,782.83 |
(1) List of Fixed Assets
Unit: RMB
| Item | Houses and buildings | Decoration of the fixed assets | Machinery equipment | Transportation equipment | Other equipment | Total |
| I. Original carrying value |
| 1. Beginning balance | 161,336,884.91 | 23,105,646.54 | 205,747.00 | 14,123,435.60 | 27,601,069.63 | 226,372,783.68 |
| 2. Increased amount of the period | 112,446.31 | 1,029,996.87 | 186,000.00 | 89,100.00 | 439,252.23 | 1,856,795.41 |
| (1) Purchase | 1,029,996.87 | 186,000.00 | 89,100.00 | 439,252.23 | 1,744,349.10 | |
| (2) Transfer from construction in progress | ||||||
| (3) Enterprise combination increase | ||||||
| (4) Translation of foreign currency-denominated financial statements | 112,446.31 | 112,446.31 | ||||
| 3. Decreased amount of the period | 246,401.90 | 18,000.00 | 28,734.05 | 293,135.95 | ||
| (1) Disposal or scrap | 246,401.90 | 18,000.00 | 28,734.05 | 293,135.95 | ||
| 4. Ending balance | 161,449,331.22 | 23,889,241.51 | 391,747.00 | 14,194,535.60 | 28,011,587.81 | 227,936,443.14 |
| II. Accumulative depreciation | ||||||
| 1. Beginning balance | 101,657,814.19 | 4,449,605.68 | 2,549.40 | 9,697,922.59 | 16,931,391.83 | 132,739,283.69 |
| 2. Increased amount of the period | 2,024,795.66 | 2,624,754.07 | 49,176.02 | 556,399.98 | 801,059.96 | 6,056,185.69 |
| (1) Withdrawal | 2,024,795.66 | 2,624,754.07 | 49,176.02 | 556,399.98 | 801,059.96 | 6,056,185.69 |
| 3. Decreased amount of the period | 195,806.55 | 17,100.00 | 18,662.62 | 231,569.17 | ||
| (1) Disposal or scrap | 195,806.55 | 17,100.00 | 18,662.62 | 231,569.17 |
| 4. Ending balance | 103,682,609.85 | 6,878,553.20 | 51,725.42 | 10,237,222.57 | 17,713,789.17 | 138,563,900.21 |
| III. Depreciation reserves | ||||||
| 1. Beginning balance | 75,717.16 | 75,717.16 | ||||
| 2. Increased amount of the period | ||||||
| (1) Withdrawal | ||||||
| 3. Decreased amount of the period | ||||||
| (1) Disposal or scrap | ||||||
| 4. Ending balance | 75,717.16 | 75,717.16 | ||||
| IV. Carrying value | ||||||
| 1. Ending carrying value | 57,766,721.37 | 17,010,688.31 | 340,021.58 | 3,957,313.03 | 10,222,081.48 | 89,296,825.77 |
| 2. Beginning carrying value | 59,679,070.72 | 18,656,040.86 | 203,197.60 | 4,425,513.01 | 10,593,960.64 | 93,557,782.83 |
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
| Item | Original carrying value | Accumulative depreciation | Depreciation reserves | Carrying value | Note |
(3) Fixed Assets Leased in by Financing Lease
Unit: RMB
| Item | Original carrying value | Accumulative depreciation | Depreciation reserves | Carrying value |
(4) Fixed Assets Leased out by Operation Lease
Unit: RMB
| Item | Ending carrying value |
(5) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
| Item | Carrying value | Reason |
| Room 406, 2 units, Hulunbuir Guangxia Digital Building | 2,854,810.18 | Property right disputes before, now has won a lawsuit with unaccomplished certification of property. |
| Room 401, 402, Sanxiang Business Building Office Building | 845,393.96 | The office building will be removed due to the project adjustment and a high-rise office building will be established nearby the present address. The existing property shall be replaced after the completion of the new office building. Thus, the certification of the property is failed to transact. |
Other notes
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes
22. Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance |
(1) List of Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
| Item | Budget | Beginnin | Increase | Transferr | Other | Ending | Proporti | Job | Accumul | Of | Capitaliz | Capital |
| g balance | d amount | ed in fixed assets | decreased amount | balance | on of accumulated investment in constructions to budget | schedule | ated amount of interest capitalization | which: Amount of capitalized interests for the Reporting Period | ation rate of interests for the Reporting Period | resources |
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
| Item | Amount withdrawn | Reason for withdrawal |
Other notes
(4) Engineering Materials
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
Other notes:
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□ Applicable √ Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Unit: RMB
| Item | Total |
Other notes:
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
| Item | Land use right | Patent right | Non-patent right | Software | Total | |
| I. Original carrying value | ||||||
| 1. Beginning balance | 1,234,387.66 | 1,234,387.66 | ||||
| 2. Increased amount of the period | ||||||
| (1) Purchase | ||||||
| (2) Internal development | ||||||
| (3) Business combination increase | ||||||
| 3. Decreased amount of the period | ||||||
| (1) Disposal | ||||||
| 4. Ending balance | 1,234,387.66 | 1,234,387.66 | ||||
| II. Accumulated amortization | ||||||
| 1. Beginning balance | 534,018.00 | 534,018.00 | ||||
| 2. Increased amount of the period | 109,162.21 | 109,162.21 | ||||
| (1) Withdrawal | 109,162.21 | 109,162.21 | ||||
| 3. Decreased amount of the period | ||||||
| (1) Disposal |
| 4. Ending balance | 622,370.21 | 622,370.21 | ||||
| III. Depreciation reserves | ||||||
| 1. Beginning balance | ||||||
| 2. Increased amount of the period | ||||||
| (1) Withdrawal | ||||||
| 3. Decreased amount of the period | ||||||
| (1) Disposal | ||||||
| 4. Ending balance | ||||||
| IV. Carrying value | ||||||
| 1. Ending carrying value | 591,207.45 | 591,207.45 | ||||
| 2. Beginning carrying value | 700,369.66 | 700,369.66 |
The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance ofintangible assets was.
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason |
Other notes:
27. Development Costs
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | ||||
| Internal development costs | Other | Recognized as intangible assets | Transfer to profit or loss | |||||
| Total |
Other notes
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance | ||
| Formed by enterprise combination | Disposal | |||||
| Total | ||||||
(2) Depreciation Reserves of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance | ||
| Withdrawal | Disposal | |||||
| Total | ||||||
Information on the assets group or combination of assets groups which include goodwillNotes of the testing process of goodwill impairment, key parameters (such as growth rate of the forecast period, growth rate of stableperiod, rate of profit, discount rate, forecast period and so on for prediction of future present value of cash flows) and the recognitionmethod of goodwill impairment losses:
Influence of goodwill impairment testingOther notes
29. Long-term Prepaid Expense
Unit: RMB
| Item | Beginning balance | Increased amount | Amortization amount of the period | Other decreased amount | Ending balance |
| Rental fees | 588,336.00 | 169,454.68 | 418,881.32 | ||
| Renovation costs | 6,446,136.79 | 914,680.87 | 1,385,631.46 | 5,975,186.20 | |
| Total | 7,034,472.79 | 914,680.87 | 1,555,086.14 | 6,394,067.52 |
Other notes
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for impairment of assets | 152,825,318.94 | 38,847,987.80 | 157,586,654.91 | 38,312,198.03 |
| Internal unrealized profit | 46,353,414.96 | 11,588,353.74 | 49,316,338.72 | 12,329,084.68 |
| Deductible losses | 1,208,292,983.24 | 302,073,245.81 | 162,281,053.40 | 40,570,263.35 |
| Accrued land VAT | 1,219,229,090.00 | 304,807,272.50 | 2,148,670,831.53 | 537,167,707.90 |
| Estimated profit calculated at pre-sale revenue of property enterprises | 36,496,723.60 | 9,124,180.90 | 119,095,335.72 | 29,773,833.93 |
| Payroll payable unpaid but withdrawn | 114.34 | 28.59 | 139.36 | 34.84 |
| Total | 2,663,197,645.08 | 666,441,069.34 | 2,636,950,353.64 | 658,153,122.73 |
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| The carrying value of fixed assets was larger than the tax basis | 15,284.32 | 3,821.08 | 15,284.32 | 3,821.08 |
| Total | 15,284.32 | 3,821.08 | 15,284.32 | 3,821.08 |
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
| Item | Mutual set-off amount of deferred income tax assets and liabilities at | Ending balance of deferred income tax assets or liabilities after | Mutual set-off amount of deferred income tax assets and liabilities at | Beginning balance of deferred income tax assets or liabilities after |
| the period-end | off-set | the period-begin | off-set | |
| Deferred income tax assets | 666,441,069.33 | 658,153,122.73 | ||
| Deferred income tax liabilities | 3,821.08 | 3,821.08 |
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deductible temporary difference | 71,272,757.95 | 60,809,797.81 |
| Deductible losses | 312,848,147.29 | 187,768,845.36 |
| Total | 384,120,905.24 | 248,578,643.17 |
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
| Years | Ending amount | Beginning amount | Notes |
| Y2019 | 7,443.23 | The deductible losses of 2014 | |
| Y2020 | 8,494.90 | 8,494.90 | The deductible losses of 2015 |
| Y2021 | 3,456.91 | 3,456.91 | The deductible losses of 2016 |
| Y2022 | 62,919,255.68 | 62,919,255.68 | The deductible losses of 2017 |
| Y2024 | 246,980,657.57 | 124,830,194.64 | The deductible losses of 2019 |
| Y2025 | 2,936,282.23 | The deductible losses of 2020 | |
| Total | 312,848,147.29 | 187,768,845.36 | -- |
Other notes:
31. Other Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Prepayment for purchase of fixed assets, investment properties and intangible assets | 18,722,496.18 | 18,722,496.18 | 4,711,963.66 | 4,711,963.66 | ||
| Total | 18,722,496.18 | 18,722,496.18 | 4,711,963.66 | 4,711,963.66 | ||
Other notes:
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
Notes of short-term borrowings category:
Not applicable.
(2) List of the Short-term Borrowings Overdue but Not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was RMBXXX, of which the significant overdue unpaidshort-term borrowings are as follows:
Unit: RMB
| Borrower | Ending balance | Interest rate | Overdue time | Overdue charge rate |
Other notes:
Not applicable.
33. Trading Financial liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Of which: | ||
| Of which: |
Other notes:
Not applicable.
34. Derivative Financial Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
Not applicable.
35. Notes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
The total amount of notes payable due but unpaid was RMBXXX.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Engineering construction expense payable | 390,519,470.90 | 420,433,422.07 |
| Accrued expense | 50,084,943.28 | 90,484,298.98 |
| Other | 95,632,924.32 | 66,771,418.05 |
| Total | 536,237,338.50 | 577,689,139.10 |
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/ Un-carry-over reason |
| Jiangsu Hanjian Group Co., Ltd. (Phase II) | 30,383,169.67 | Settled but outstanding |
| Shanghai Mingpeng Construction Group Co., Ltd. | 25,976,705.79 | Unsettled |
| Shenzhen Luohu District Land and Resources Bureau | 25,000,000.00 | Unsettled |
| Jiangsu Hanjian Group Co., Ltd. | 15,179,202.67 | Construction cost in arrears accounted by verified output value |
| The Second Construction Co., Ltd. of China Construction Third Engineering Bureau | 6,345,592.81 | Construction deposit |
| Total | 102,884,670.94 | -- |
Other notes:
37. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| House payment in advance | ||
| Property fee in advance | 26,745,590.38 | 17,463,948.02 |
| Other | 5,790,958.35 | 16,508,412.92 |
| Total | 32,536,548.73 | 33,972,360.94 |
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/ Un-carry-over reason |
Other notes:
Not applicable.The Company needs to comply with the disclosure requirements of Guideline No. 3 of the Shenzhen Stock Exchange on theIndustrial Information Disclosure about Listed Companies’ Engagement in Real Estate BusinessThe proceeds information of top 5 advance sale amount:
Unit: RMB
| No. | Name | Beginning balance | Ending balance | Expected completion date | Advance sale proportion |
38. Contract Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| House payment in advance | 480,801,605.00 | 694,213,671.69 |
| Total | 480,801,605.00 | 694,213,671.69 |
Significant changes in amount of carrying value occurred in the Reporting Period and the reasons
Unit: RMB
| Item | Amount changed | Reason |
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| I. Short-term salary | 141,448,850.23 | 309,840,720.08 | 336,075,756.59 | 115,213,813.72 |
| II. Post-employment benefit-defined contribution plans | 1,921,102.65 | 8,808,402.36 | 9,569,944.40 | 1,159,560.61 |
| III. Termination benefits | 123,915.92 | 222,637.17 | 346,553.09 | |
| Total | 143,493,868.80 | 318,871,759.61 | 345,992,254.08 | 116,373,374.33 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 127,467,198.54 | 276,897,637.28 | 304,005,337.59 | 100,359,498.23 |
| 2. Employee welfare | 179,903.05 | 7,188,412.27 | 7,368,315.32 | |
| 3. Social insurance | 309,821.38 | 11,456,304.82 | 10,933,885.96 | 832,240.24 |
| Of which: Medical insurance premiums | 307,218.00 | 10,684,567.95 | 10,167,853.76 | 823,932.19 |
| Work-related injury insurance | 99,350.62 | 97,151.78 | 2,198.84 | |
| Maternity insurance | 2,603.38 | 347,289.65 | 343,783.82 | 6,109.21 |
| 4. Housing fund | 552,529.86 | 8,806,603.27 | 8,923,102.27 | 436,030.86 |
| 5. Labor union budget and employee education budget | 12,939,397.40 | 5,491,762.44 | 4,845,115.45 | 13,586,044.39 |
| Total | 141,448,850.23 | 309,840,720.08 | 336,075,756.59 | 115,213,813.72 |
(3) List of Defined Contribution Plans
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Basic pension benefits | 168,430.00 | 4,760,055.00 | 4,639,457.12 | 289,027.88 |
| 2. Unemployment insurance | 50,226.78 | 43,770.68 | 6,456.10 | |
| 3. Annuity | 1,752,672.65 | 3,998,120.58 | 4,886,716.60 | 864,076.63 |
| Total | 1,921,102.65 | 8,808,402.36 | 9,569,944.40 | 1,159,560.61 |
Other notes:
40. Taxes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT | 13,493,598.74 | 70,818,175.32 |
| Corporate income tax | 2,674,867.69 | 368,461,498.66 |
| Personal income tax | 2,749,244.89 | 1,556,780.71 |
| Urban maintenance and construction tax | 643,366.29 | 3,668,311.19 |
| Land VAT | 1,219,264,403.13 | 2,149,507,199.99 |
| Property tax | 4,641,483.50 | 526,309.33 |
| Land use tax | 1,471,587.45 | 942,757.19 |
| Education surcharge | 215,012.67 | 1,592,152.99 |
| Local education surtax | 279,183.44 | 1,067,591.60 |
| Other | 142,514.70 | |
| Total | 1,245,432,747.80 | 2,598,283,291.68 |
Other notes:
41. Other Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Dividends payable | 12,202,676.04 | 12,202,676.04 |
| Other payables | 807,985,786.65 | 1,136,902,252.81 |
| Total | 820,188,462.69 | 1,149,104,928.85 |
(1) Interest Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
List of the significant overdue unpaid interest:
Unit: RMB
| Borrower | Overdue amount | Overdue reasons |
Other notes:
Not applicable.
(2) Dividends Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Ordinary share dividends | 12,202,676.04 | 12,434,579.81 |
| Total | 12,202,676.04 | 12,202,676.04 |
Other notes, including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
| Item | Amount unpaid | Reason |
| Shenzhen South China Investment Development Co., Ltd. | 9,871.20 | Without access to its account |
| Wenling Quality Control Association | 9,871.02 | Without access to its account |
| Shanghai Weihong Industry & Trade Co., Ltd. | 9,900.00 | Without access to its account |
| China Shenzhen International Cooperation (Group) Co., Ltd. | 0.18 | Without access to its account |
| Shenzhen Greening Department | 10,869,036.68 | Company restructured without clearing payment object |
| Labor union of Shenzhen Greening Department | 1,300,000.00 | Company restructured without clearing payment object |
| Shenzhen Sports Administration | 3,996.96 | Final payment unpaid |
| Subtotal | 12,202,676.04 |
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deposit | 211,312,547.96 | 201,013,437.65 |
| Guarantee | 50,698,328.84 | 51,062,427.71 |
| Residual funds of equity transfer unpaid | 465,807,569.82 | |
| Agency fund | 5,972,288.11 | 7,531,813.31 |
| Intercourse fund | 404,317,342.84 | 316,244,391.26 |
| Accrued expenses | 107,685,432.23 | 64,684,769.05 |
| Payment on behalf | 5,538,460.34 | 9,235,637.59 |
| Other | 22,461,386.33 | 21,322,206.42 |
| Total | 807,985,786.65 | 1,136,902,252.81 |
2) Significant Other Payables Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | 35,796,665.14 | Come-and-go accounts without specific payment term |
| Shenzhen Pason Aluminum Technology Co., Ltd. | 196,416,155.45 | Cooperative development funds settled in completion of the project |
| Margin of sporadic lease | 8,508,355.59 | Margin within the leasing period |
| Shenzhen Tian’an International Building Property Management Co., Ltd. | 5,214,345.90 | Come-and-go accounts without specific payment term |
| Rainbow Co., Ltd. | 2,380,000.00 | Margin within the leasing period |
| Total | 248,315,522.08 | -- |
Other notes
42. Liabilities Held for Sale
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
Not applicable.
43. Current Portion of Non-current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current portion of long-term borrowings | 755,325,505.51 | 3,921,032.24 |
| Total | 755,325,505.51 | 3,921,032.24 |
Other notes:
44. Other Current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
Increase/decrease of the short-term bonds payable:
Unit: RMB
| Bonds name | Par value | Issuing date | Duration | Issuing amount | Beginning balance | The current issue | Withdrawal of interest by par value | Amortization of premium and depreciation | Repayment in the Reporting Period | Ending balance |
Other notes:
Not applicable.
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledged borrowings | 2,999,800,000.00 | 2,192,900,000.00 |
| Guaranteed borrowings | 933,000.00 | |
| Credit borrowings | 616,000,000.00 | |
| Total | 3,615,800,000.00 | 2,193,833,000.00 |
Notes to the category of long-term borrowings:
Other notes, including the interval of interest rate:
The pledged and guaranteed borrowings at the period-end were used to develop the Bangling urban renewal project of ShenzhenRongyao Real Estate Development Co., Ltd. (hereinafter referred to as “Rongyao Real Estate”) with the duration from 29 November2019 to 20 November 2024, applying the borrowing rate by rising 1.55% complying with one-year level of loan prime rate. And 69%equity of Rongyao Real Estate held by the Company was pledged and the guarantee mode was the joint liability guaranty.The credit borrowings at the period-end were used for the transaction payment of equity of Shenzhen Toukong Property ManagementCo., Ltd. with the duration from 18 May 2020 to 10 May 2023, applying the borrowing rate by adding 23.5 basis points complyingwith one-year level of loan prime rate.
46. Bonds Payable
(1) List of Bonds Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instrument Classified as FinancialLiabilities such as Preferred Shares and Perpetual Bonds)
Unit: RMB
| Bonds name | Par value | Issuing date | Duration | Issuing amount | Beginning balance | The current issue | Withdrawal of interest by par value | Amortization of premium and depreciation | Repayment in the Reporting Period | Ending balance | |
| Total | -- | -- | -- |
(3) Notes to the Conditions and Time of the Shares Transfer of the Convertible Corporate Bonds
(4) Notes to Other Financial Instruments Classified as Financial Liabilities
Basic situation of other financial instruments such as preferred shares and perpetual bonds outstanding at the period-endChanges in financial instruments such as preferred shares and perpetual bonds outstanding at the period-end
Unit: RMB
| Outstanding financial instrument | Period-begin | Increase | Decrease | Period-end | ||||
| Amount | Carrying value | Amount | Carrying value | Amount | Carrying value | Amount | Carrying value | |
Notes to basis for the classification of other financial instruments as financial liabilities
Other notesNot applicable.
47. Lease Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notesNot applicable.
48. Long-term Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
(1) Long-term Payables Listed by Nature
Unit: RMB
| Item | Ending balance | Beginning balance |
Other notes:
(2) Specific Payables
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Reason for formation |
Other notes:
49. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
(2) Changes in Defined Benefit Plans
Obligation present value of defined benefit plans:
Unit: RMB
| Item | Reporting period | Same period of last year |
Plan assets:
Unit: RMB
| Item | Reporting period | Same period of last year |
Net liabilities (net assets) of defined benefit plans:
Unit: RMB
| Item | Reporting period | Same period of last year |
Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow, time and uncertainty of theCompany:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
Not applicable.
50. Provisions
Unit: RMB
| Item | Ending balance | Beginning balance | Reason for formation |
| Pending litigation | 2,903,327.87 | 2,903,327.87 | Contract disputes |
| Total | 2,903,327.87 | 2,903,327.87 | -- |
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
Refer to Note XIV (2) for details.
51. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Reason for formation |
| Government grants | 341,259.63 | 24,375.69 | 316,883.94 | Government grants for Huangyuyuan Primary School | |
| Total | 341,259.63 | 24,375.69 | 316,883.94 | -- |
Item involving government grants:
Unit: RMB
| Item | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount recorded into other income in the Reporting Period | Amount offset cost in the Reporting Period | Other changes | Ending balance | Related to assets/related to income |
| Government grants for | 341,259.63 | 24,375.69 | 316,883.94 | Related to |
| Huangyuyuan Primary School | assets |
Other notes:
52. Other Non-current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Utility specific fund | 237,163.63 | 237,163.63 |
| Housing principle fund | 11,841,425.22 | 13,215,811.13 |
| House warming deposit | 7,034,466.22 | 7,052,274.22 |
| Electric Equipment Maintenance fund | 4,019,415.44 | 4,019,415.44 |
| Deputed maintenance fund | 47,144,427.77 | 36,337,634.47 |
| Follow-up investment of employees for Guanlan Bangling project | 40,000,000.00 | 40,000,000.00 |
| Other | 1,355,416.78 | 7,302,438.57 |
| Total | 111,632,315.06 | 108,164,737.46 |
Other notes:
53. Share Capital
Unit: RMB
| Beginning balance | Increase/decrease (+/-) | Ending balance | |||||
| New shares issued | Bonus shares | Bonus issue from profit | Other | Subtotal | |||
| The sum of shares | 595,979,092.00 | 595,979,092.00 | |||||
Other notes:
54. Other Equity Instruments
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual BondOutstanding at the End of the Period
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the Endof the Period
Unit: RMB
| Outstanding | Period-begin | Increase | Decrease | Period-end |
| financial instruments | Amount | Carrying value | Amount | Carrying value | Amount | Carrying value | Amount | Carrying value |
The current changes in other equity instruments and the corresponding reasons and the basis of the relevant accounting treatmentOther notes:
Not applicable.
55. Capital Reserve
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Other capital reserves | 80,488,045.38 | 80,488,045.38 | ||
| Total | 80,488,045.38 | 80,488,045.38 |
Other notes, including changes and reason of change:
56. Treasury Shares
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
Other notes, including changes and reason of change:
Not applicable.
57. Other Comprehensive Income
Unit: RMB
| Item | Beginning balance | Reporting Period | Ending balance | |||||
| Income before taxation in the Current Period | Less: Recorded in other comprehensive income in prior period and transferred in profit or loss in the Current Period | Less: Recorded into other comprehensive income in prior period and transferred in retained earnings in the Current period | Less: Income tax expense | Attributable to owners of the Company as the parent after tax | Attributable to non-controlling interests after tax | |||
| I. Other comprehensive income that may not be reclassified to | -2,051,268.24 | -455,146.16 | -455,146.16 | -2,506,414.40 | ||||
| profit or loss | ||||||||
| Changes in fair value of other equity instrument investment\ | -2,051,268.24 | -455,146.16 | -455,146.16 | -2,506,414.40 | ||||
| II. Other comprehensive income that may subsequently be reclassified to profit or loss | -647,103.20 | 1,032,011.50 | 1,032,011.50 | 384,908.30 | ||||
| Differences arising from translation of foreign currency denominated financial statements | -647,103.20 | 1,032,011.50 | 1,032,011.50 | 384,908.30 | ||||
| Total of other comprehensive income | -2,698,371.44 | 576,865.34 | 576,865.34 | -2,121,506.10 |
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
Other notes, including changes and reason of change:
Not applicable.
59. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Statutory surplus reserves | 16,695,044.92 | 16,695,044.92 | ||
| Discretionary surplus reserve | 365,403.13 | 365,403.13 | ||
| Total | 17,060,448.05 | 17,060,448.05 |
Notes, including changes and reason of change:
60. Retained Earnings
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Beginning balance of retained earnings before adjustments | 2,457,119,795.39 | 2,495,296,440.15 |
| Beginning balance of retained earnings after adjustments | 2,457,119,795.39 | 2,495,296,440.15 |
| Add: Net profit attributable to owners of the Company as the parent | 211,967,734.76 | 155,922,425.40 |
| Dividend of ordinary shares payable | 214,552,473.12 | 178,793,727.60 |
| Other | 204,015,557.97 | |
| Ending retained earnings | 2,454,535,057.03 | 2,268,409,579.98 |
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standardsfor Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 1,388,266,376.69 | 596,935,670.85 | 1,023,860,469.96 | 582,867,402.64 |
| Other operations | 32,811,391.14 | 14,759,272.95 | 41,620,412.34 | 16,808,126.14 |
| Total | 1,421,077,767.83 | 611,694,943.80 | 1,065,480,882.30 | 599,675,528.78 |
Relevant information of revenue:
Unit: RMB
| Category of contracts | Segment 1 | Segment 2 | Segment of real estate | Segment of property management | Total |
| Of which: | |||||
| Real estate | 858,698,806.07 | 858,698,806.07 | |||
| Lease | 71,395,976.18 | 71,395,976.18 | |||
| Property management | 490,591,863.98 | 490,591,863.98 | |||
| Other | 391,121.60 | 391,121.60 | |||
| Total | 930,485,903.85 | 490,591,863.98 | 1,421,077,767.83 | ||
| Of which: | |||||
| Shenzhen | 887,005,216.90 | 323,029,209.74 | 1,210,034,426.64 | ||
| Dongguan | 17,218,092.99 | 3,500,404.46 | 20,718,497.45 | ||
| Other | 26,262,593.96 | 164,062,249.78 | 190,324,843.74 |
| Total | 930,485,903.85 | 490,591,863.98 | 1,421,077,767.83 | ||
| Of which: | |||||
| Of which: | |||||
| Of which: | |||||
| Products (transfer to revenue in certain time and place) | 858,698,806.07 | 858,698,806.07 | |||
| Services and labor services (withdraw revenue in certain time) | 71,787,097.78 | 490,591,863.98 | 562,378,961.76 | ||
| Total | 930,485,903.85 | 490,591,863.98 | 1,421,077,767.83 | ||
| Of which: | |||||
| Of which: |
Information related to performance obligations:
On 30 June 2020, the transaction price assigned to unfulfilled (or partially unfulfilled) performance obligations was estimated toRMB319 million, which is mainly expected future revenue of transaction price that haven’t met the delivery conditions stipulated insales contracts of real estate. The Company is expected to recognize the realization of sales revenue within one to two years when thehouse property is completed and passed the acceptance which meet the delivery conditions stipulated in sales contracts, and when thecustomers acquire the control rights of relevant goods or services.Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yetwas RMB319,303,958.11 at the period-end, among which RMB120,122,226.00 was expected to be recognized in 2020,RMB199,181,732.11 in 2021 and RMBXXX in XXX year.Other notesThe Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information DisclosureGuidelines No.3-Listed Companies Engaged in Real Estate IndustryThe top 5 accounts received with confirmed amount in the Reporting Period:
Unit: RMB
| No. | Name of project | Income balance |
| 1 | Golden Collar’s Resort B Building | 806,676,918.09 |
| 2 | Banshan Yujing Phase I | 18,021,691.42 |
| 3 | SZPRD-Songhu Langyuan | 17,218,092.99 |
| 4 | Hupan Yujing Phase II | 4,910,299.99 |
| 5 | Hupan Yujing Phase I | 3,169,110.11 |
62. Taxes and Surtaxes
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Urban maintenance and construction tax | 4,909,118.92 | 3,492,372.40 |
| Education Surcharge | 2,190,590.78 | 1,527,504.48 |
| Property tax | 4,767,394.20 | 5,537,862.44 |
| Land use tax | 416,264.69 | 515,594.86 |
| Stamp tax | 349,634.68 | 679,836.88 |
| Local education surtax | 1,342,087.15 | 1,020,664.08 |
| Land VAT | 380,741,616.91 | 112,267,887.84 |
| Other taxes | 26,773.28 | 23,301.88 |
| Total | 394,743,480.61 | 125,065,024.86 |
Other notes:
63. Selling Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Agency fee | 2,151,630.50 | 2,482,978.21 |
| Consultancy and sales service charges | 3,853,286.19 | 9,063,475.32 |
| Advertising | 914,173.18 | 3,240,236.82 |
| Employee benefits | 2,569,826.33 | 1,972,134.95 |
| Other | 2,055,143.99 | 1,533,899.42 |
| Total | 11,544,060.19 | 18,292,724.72 |
Other notes:
64. Administrative Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Employee benefits | 63,277,704.59 | 56,827,778.30 |
| Administrative office cost | 4,730,219.94 | 8,030,632.94 |
| Assets amortization and depreciation expense | 5,064,453.12 | 2,630,845.23 |
| Litigation costs | 521,647.00 | 1,496,981.13 |
| Other | 14,838,979.70 | 14,243,058.51 |
| Total | 88,433,004.35 | 83,229,296.11 |
Other notes:
65. Development Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
Other notes:
Not applicable.
66. Finance Costs
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Interest expense | 84,859,496.80 | 73,970,116.57 |
| Less: Interest income (fill in by negative) | -31,227,361.24 | -31,182,804.42 |
| Foreign exchange gains or losses | 100,514.83 | 1,473,105.81 |
| Other | -286,332.01 | 646,652.97 |
| Total | 53,446,318.38 | 44,907,070.93 |
Other notes:
67. Other Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Government grants related to income | 82,514.69 | 15,668.48 |
| Government grants related to assets | 24,375.69 | |
| Commission charges return of deductible income tax | 196,952.96 | 9,501.12 |
| Additional deduction of VAT | 2,618,150.17 | 346,650.92 |
| Total | 2,921,993.51 | 371,820.52 |
68. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by equity method | 157,061.79 | 780,826.57 |
| Total | 157,061.79 | 780,826.57 |
Other notes:
69．Net Gain on Exposure Hedges
Unit: RMB
| Item | Reporting Period | Same period of last year |
Other notes:
Not applicable.
70. Gain on Changes in Fair Value
Unit: RMB
| Sources | Reporting Period | Same period of last year |
Other notes:
Not applicable.
71. Credit Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Bad debt loss of other receivables | 1,115,927.46 | -3,911,410.39 |
| Total | 1,115,927.46 | -3,911,410.39 |
Other notes:
72. Asset Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| II. Loss on inventory valuation and contract performance cost | 1,832.91 | 1,333,825.60 |
| Total | 1,832.91 | 1,333,825.60 |
Other notes:
73. Asset Disposal Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
74. Non-operating Income
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current |
| non-recurring profit or loss | |||
| Government grants | 3,588,738.19 | 787,776.97 | 3,340,160.83 |
| Gains on damage and scrap of non-current assets | 14,826.92 | 240.00 | 14,826.92 |
| Compensation income | 313,043.22 | 578,755.77 | 313,043.22 |
| Accounts unpayable | 4,894,354.00 | ||
| Other | 327,567.57 | 614,291.72 | 576,144.93 |
| Total | 4,244,175.90 | 6,875,418.46 | 4,244,175.90 |
Government grants recorded into current profit or loss
Unit: RMB
| Item | Distribution entity | Distribution reason | Nature | Whether influence the profits or losses of the year or not | Special subsidy or not | Reporting Period | Same period of last year | Related to assets/related to income |
| Subsidy of epidemic prevention | Relevant departments of local governments | Subsidy | Obtained by undertaking state’s functions of ensuring certain public service or social necessary products supply or price control | No | No | 3,588,738.19 | Related to income |
Other notes:
75. Non-operating Expense
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Donation | 2,030,000.00 | 5,000.00 | 2,030,000.00 |
| Penalty and fine for delaying payment | 27,535.95 | 64,407.89 | 27,535.95 |
| Other | 341,951.75 | 1,744,191.41 | 341,951.75 |
| Total | 2,399,487.70 | 1,813,599.30 | 2,399,487.70 |
Other notes:
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Current income tax expense | 97,681,962.31 | 92,279,418.86 |
| Deferred income tax expense | -8,287,946.60 | -22,558,114.36 |
| Total | 89,394,015.71 | 69,721,304.50 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Reporting Period |
| Profit before taxation | 267,257,464.37 |
| Current income tax expense accounted at statutory/applicable tax rate | 66,814,366.09 |
| Influence of applying different tax rates by subsidiaries | -284,867.54 |
| Influence of income tax before adjustment | 2,188,240.96 |
| Influence of non-deductible costs, expenses and losses | 1,406,601.97 |
| Influence of deductible temporary difference or deductible losses of unrecognized deferred income tax in the Reporting Period | 19,269,674.23 |
| Income tax expense | 89,394,015.71 |
Other notes
77. Other Comprehensive Income
Refer to Note VII-57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Large intercourse funds received | 274,561,798.03 | 31,787,416.36 |
| Interest income | 20,729,921.32 | 30,258,952.97 |
| Net margins, security deposit and various special funds received | 2,825,399.61 | 118,506.00 |
| Accident fee and other payments on behalf received | 32,970,968.51 | 51,880,090.73 |
| Other small receivables | 2,631,928.91 | 1,842,628.36 |
| Total | 333,720,016.38 | 115,887,594.42 |
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Paying administrative expense in cash | 20,150,492.86 | 22,944,468.53 |
| Paying selling expense in cash | 20,841,852.20 | 18,292,724.74 |
| Large intercourse funds paid | 48,968,020.00 | |
| Other small payments | 1,265,190.63 | 3,453,560.15 |
| Total | 91,225,555.69 | 44,690,753.42 |
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
Notes:
Not applicable.
(4) Cash Used in Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
Notes:
Not applicable.
(5) Cash Generated from Other Financing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
Notes:
Not applicable.
(6) Cash Used in Other Financing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
Notes:
Not applicable.
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
| Supplemental information | Reporting Period | Same period of last year |
| 1. Reconciliation of net profit to net cash flows generated from operating activities | -- | -- |
| Net profit | 177,863,448.66 | 128,226,813.86 |
| Add: Provision for impairment of assets | -1,117,760.37 | 2,577,584.79 |
| Depreciation of fixed assets, oil and gas assets, and productive living assets | 24,423,533.46 | 22,093,496.17 |
| Amortization of intangible assets | 109,162.21 | 109,162.21 |
| Amortization of long-term prepaid expenses | 1,555,086.14 | 727,444.43 |
| Los on disposal of fixed assets, intangible assets and other long-term assets (gains: negative) | 0.00 | 0.00 |
| Losses on scrap of fixed assets (gains: negative) | -14,826.92 | -240.00 |
| Finance costs (gains: negative) | 84,859,496.80 | 73,970,116.57 |
| Investment loss (gains: negative) | -157,061.79 | -780,826.57 |
| Decrease in deferred income tax assets (gains: negative) | -8,287,946.60 | -22,558,114.36 |
| Increase in deferred income tax liabilities (“-” means decrease) | 0.00 | -994.04 |
| Decrease in inventory (gains: negative) | -455,620,688.15 | -955,764,832.88 |
| Decrease in accounts receivable generated from operating activities (gains: negative) | 32,911,883.76 | -87,626,285.03 |
| Increase in accounts payable used in operating activities (decrease: negative) | -1,479,706,466.10 | 442,338,663.15 |
| Net cash generated from/used in operating activities | -1,623,182,138.90 | -396,688,011.70 |
| 2.Significant investing and financing activities without involvement of cash receipts and payments | -- | -- |
| 3. Net increase/decrease of cash and cash equivalent: | -- | -- |
| Ending balance of cash | 3,056,069,770.97 | 3,049,721,635.90 |
| Less: Beginning balance of cash | 3,285,345,233.47 | 3,881,027,257.89 |
| Net increase in cash and cash equivalents | -229,275,462.50 | -831,305,621.99 |
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
| Amount | |
| Of which: | -- |
| Of which: | -- |
| Add: Payment of cash or cash equivalents in the Current Period for previous enterprise combination | 465,807,569.82 |
| Of which: | -- |
| Net payments for acquisition of subsidiaries | 465,807,569.82 |
Other notes:
The final payment for acquisition of equity in Shenzhen Toukong Property Management Co., Ltd..
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
| Amount | |
| Of which: | -- |
| Of which: | -- |
| Of which: | -- |
Other notes:
Not applicable.
(4) Cash and Cash Equivalents
Unit: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 3,056,069,770.97 | 3,285,345,233.47 |
| Including: Cash on hand | 164,191.19 | 130,048.49 |
| Bank deposit on demand | 3,043,214,965.74 | 3,272,524,570.94 |
| Other monetary assets on demand | 12,690,614.04 | 12,690,614.04 |
| III. Ending balance of cash and cash equivalents | 3,056,069,770.97 | 3,285,345,233.47 |
Other notes:
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
Not applicable.
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 22,871,902.65 | Note 1, Note 2, Note 3, Note 4 |
| Total | 22,871,902.65 | -- |
Other notes:
Note 1: In terms of monetary assets with restricted right to use at the period-end, there was limited capital of frozen account withRMB11,018.00 in the subsidiary company Shenzhen Huazhengpeng Property Management Co., Ltd., RMB7,063,237.32 in thesubsidiary company Shenzhen Taixinli Property Management Co., Ltd. as well. Refer to Note XIV-(II)1 for relevant matters involvedwith lawsuit for details.Note 2: In terms of monetary assets with restricted right to use at the period-end, there was guarantee deposit of RMB49,020.00 paidto the performance guarantee No. 20190531SLYL signed between the subsidiary company Shenzhen Shenlv Garden TechnologyIndustrial Co., Ltd. and Shenzhen Urban Greening Management Department on 31 May 2019.Note 3: In terms of monetary assets with restricted right to use at the period-end, as a real estate developer, the Company hasprovided mortgage guarantees for commercial housing purchasers and paid loan guarantees of RMB1,120,910.60 according to realestate business practices. Refer to Note XIV-(II) 2 for details.Note 4: In terms of monetary assets with restricted right to use at the period-end, there was interest of fixed time deposit ofRMB14,627,716.73 undue but withdrawn at the period-end.
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
| Item | Ending foreign currency balance | Exchange rate | Ending balance converted to RMB |
| Monetary assets | -- | -- | |
| Of which: USD |
| EUR | |||
| HKD | 61,337,962.53 | 0.9134 | 56,026,094.97 |
| Accounts receivable | -- | -- | |
| Of which: USD | |||
| EUR | |||
| HKD | |||
| Long-term borrowings | -- | -- | |
| Of which: USD | |||
| EUR | |||
| HKD | |||
| Other equity instrument investment | |||
| Of which: USD | 91,707.93 | 7.0795 | 649,246.29 |
Other notes:
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, RecordingCurrency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, RelevantReasons Shall Be Disclosed.
√ Applicable □ Not applicable
| Item | Main operating place | Recording currency | Basis for choosing |
| Shum Yip Properties Development Co., Ltd. and its subsidiary | Hong Kong | HKD | Located in HK, settled by HKD |
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Not applicable.
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
| Category | Amount | Listed items | Amount recorded in the current |
| profit or loss | |||
| Small and micro businesses VAT exemption | 23,941.71 | Non-operating income | 23,941.71 |
| Reinforcement subsidy of Huangyuyuan Primary School | 24,375.69 | Other income | 24,375.69 |
| Stable post subsidy | 58,572.98 | Other income | 58,572.98 |
| Subsidy of epidemic prevention | 3,588,738.19 | Non-operating income | 3,588,738.19 |
| Total | 3,695,628.57 | 3,695,628.57 |
(2) Return of Government Grants
□ Applicable √ Not applicable
Other notes:
85. Other
Not applicable.VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Unit: RMB
| Name of acquiree | Time and place of gaining the equity | Cost of gaining the equity | Proportion of equity | Way to gain the equity | Purchase date | Recognition basis of purchase date | Income of acquiree from the purchase date to period-end | Net profits of acquiree from the purchase date to period-end |
Other notes:
(2) Combination Cost and Goodwill
Unit: RMB
| Combination cost |
Note to determination method of the fair value of the combination cost, consideration and changes:
The main formation reason for the large goodwill:
Other notes:
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
| Fair value on purchase date | Carrying value on purchase date | |
The determination method of the fair value of identifiable assets and liabilities:
Contingent liability of acquiree undertaken in the business combination:
Other notes:
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and gaining the controlduring the Reporting Period
□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquireethat Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
(6) Other Notes
Not applicable.
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
| Combined party | Proportion of the equity | Basis | Combination date | Recognition basis of combination date | Income from the period-begin to the combination date of the acquiree | Net profits from the period-begin to the combination date of the acquiree | Income of the acquiree during the period of comparison | Net profits of the acquiree during the period of comparison |
Other notes:
(2) Combination Cost
Unit: RMB
| Combination cost |
Contingent liabilities of the combined party undertaken in the business combinationOther notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
| Combination date | Period-end of the last period | |
Contingent liabilities of the combined party undertaken in the business combination:
Other notes:
Not applicable.
3. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companieswhether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rightsand interests in accordance with the equity transaction process:
Not applicable.
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as new establishment or liquidation of subsidiaries, etc.) and relevantinformation:
Not applicable.
6. Other
Not applicable.IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
| Name | Main operating place | Registration place | Nature of business | Holding percentage (%) | Way of gaining | |
| Directly | Indirectly | |||||
| Shenzhen | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Huangcheng Real Estate Co., Ltd. | ||||||
| SZPRD Real Estate Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| PRD Group Xuzhou Dapeng Real Estate Development Co., Ltd. | Xuzhou | Xuzhou | Real estate | 100.00% | Set-up | |
| Dongguan International Trade Center Changsheng Real Estate Development Co., Ltd. | Dongguan | Dongguan | Real estate | 100.00% | Set-up | |
| PRD Yangzhou Real Estate Development Co., Ltd. | Yangzhou | Yangzhou | Real estate | 100.00% | Set-up | |
| Shenzhen International Trade Center Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shenzhen Huangcheng Real Estate Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Set-up | |
| Shandong Shenzhen International Trade Center Property Management Co., Ltd. | Jinan | Jinan | Real estate | 100.00% | Set-up | |
| Chongqing Shenzhen | Chongqing | Chongqing | Real estate | 100.00% | Set-up |
| International Trade Center Property Management Co., Ltd. | ||||||
| Chongqing Aobo Elevator Co., Ltd. | Chongqing | Chongqing | Service | 100.00% | Set-up | |
| Chongqing Tianque Elevator Technology Co., Ltd. | Shenzhen | Shenzhen | Service | 100.00% | Set-up | |
| Shenzhen Guoguan Electromechanical Device Co., Ltd. | Shenzhen | Shenzhen | Service | 100.00% | Set-up | |
| Shenzhen International Trade Center Catering Co., Ltd. | Shenzhen | Shenzhen | Hotels and catering services | 100.00% | Set-up | |
| Shenzhen Property Engineering Construction Supervision Co., Ltd. | Shenzhen | Shenzhen | Service | 100.00% | Set-up | |
| SZPRD Operation and Management of Real Estate Assets Co., Ltd. | Shenzhen | Shenzhen | Service | 100.00% | Set-up | |
| Zhanjiang Shenzhen Real Estate Development Co., Ltd. | Zhanjiang | Zhanjiang | Real estate | 100.00% | Set-up | |
| Shum Yip Properties Development Co., Ltd. | Hong Kong | Hong Kong | Real estate | 100.00% | Set-up | |
| Wayhang Development Co., | Hong Kong | Hong Kong | Real estate | 100.00% | Set-up |
| Ltd. | ||||||
| Chief Link Properties Co., Ltd. | Hong Kong | Hong Kong | Real estate | 70.00% | Set-up | |
| Syndis Investment Co., Ltd. | Hong Kong | Hong Kong | Real estate | 70.00% | Business combination not under the same control | |
| Yangzhou Slender West Lake Jingyue Property Development Co., Ltd. | Yangzhou | Yangzhou | Real estate | 51.00% | Set-up | |
| Shandong International Trade Center Hotel Management Co., Ltd. | Jinan | Jinan | Real estate | 100.00% | Set-up | |
| Shenzhen Shenshan Special Cooperation Zone Guomao Property Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 65.00% | Set-up | |
| Shenzhen Guomao Tongle Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 51.00% | Set-up | |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 69.00% | Business combination not under the same control | |
| Shenzhen Toukong Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Julian Human Resources | Shenzhen | Shenzhen | Service | 100.00% | Business combination |
| Development Co., Ltd. | under the same control | |||||
| Shenzhen Huazhengpeng Property Management Development Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Taixinli Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Penghongyuan Industrial Development Co., Ltd. | Shenzhen | Shenzhen | Hotels and catering services | 100.00% | Business combination under the same control | |
| Shenzhen Jinhailian Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 100.00% | Business combination under the same control | |
| Shenzhen Social Welfare Co., Ltd. | Shenzhen | Shenzhen | Health and social work | 100.00% | Business combination under the same control | |
| Shenzhen Fuyuanmin Property Management Limited Liability Company | Shenzhen | Shenzhen | Real estate | 90.00% | Business combination under the same control | |
| Shenzhen Meilong Industrial Development Co., Ltd. | Shenzhen | Shenzhen | Service | 100.00% | Business combination under the same control | |
| Shenzhen Shenlv Garden Technology Industrial Co., Ltd. | Shenzhen | Shenzhen | Public facilities management | 90.00% | Business combination under the same control |
| Shenzhen Jiayuan Property Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 54.00% | Business combination under the same control | |
| Shenzhen Helinhua Construction Management Co., Ltd. | Shenzhen | Shenzhen | Real estate | 90.00% | Business combination under the same control | |
| Shenzhen Zhongtongda House Xiushan Service Co., Ltd. | Shenzhen | Shenzhen | Construction industry | 90.00% | Business combination under the same control | |
| Shenzhen Kangping Industrial Co., Ltd. | Shenzhen | Shenzhen | Retail business | 90.00% | Business combination under the same control | |
| Shenzhen Sports Service Co., Ltd. | Shenzhen | Shenzhen | Manufacturing industry | 100.00% | Business combination under the same control | |
| Shenzhen Teacher’s Home Training Co., Ltd. | Shenzhen | Shenzhen | Retail business | 100.00% | Business combination under the same control | |
| Shenzhen Education Industrial Co., Ltd. | Shenzhen | Shenzhen | Service | 100.00% | Business combination under the same control | |
| Shenzhen Yufa Industrial Co., Ltd. | Shenzhen | Shenzhen | Retail business | 80.95% | Business combination under the same control |
Notes to holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but notcontrolling the investee:
Significant structural entities and controlling basis in the scope of combination:
Basis of determining whether the Company is the agent or the principal:
Other notes:
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
| Name | Shareholding proportion of non-controlling interests | The profit or loss attributable to the non-controlling interests | Declaring dividends distributed to non-controlling interests | Balance of non-controlling interests at the period-end |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | 31.00% | -33,405,822.54 | 0.00 | 73,077,691.51 |
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Other notes:
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liability | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liability | Total liabilities | |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | 4,399,879,370.25 | 78,465,124.43 | 4,478,344,494.68 | 139,937,223.37 | 3,999,800,000.00 | 4,139,737,223.37 | 4,111,815,612.87 | 42,716,564.22 | 4,154,532,177.09 | 53,136,970.47 | 3,757,900,000.00 | 3,811,036,970.47 |
Unit: RMB
| Name | Reporting Period | Same period of last year | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Shenzhen Rongyao Real Estate Development Co., Ltd. | 0.00 | -107,760,717.87 | -107,760,717.87 | -386,770,711.35 | 0.00 | -91,139,605.71 | -91,139,605.71 | -576,763,060.18 |
Other notes:
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope ofConsolidated Financial StatementsOther notes:
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling theSubsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
Not applicable.
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's EquityAttributable to the Company as the Parent
Unit: RMB
Other notes
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
| Name | Main operating place | Registration place | Nature of business | Holding percentage (%) | Accounting treatment of the investment to joint venture or associated enterprise | |
| Directly | Indirectly | |||||
| Shenzhen Jifa Warehouse Co., Ltd. | Shenzhen | Shenzhen | Warehouse service | 50.00% | Equity method | |
| Tian’an International Building Property Management Company of Shenzhen | Shenzhen | Shenzhen | Property management | 50.00% | Equity method | |
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Not applicable.Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not
have a significant impact:
(2) Main Financial Information of Significant Joint Ventures
Unit: RMB
| Ending balance/Reporting Period | Beginning balance/The same period of last year | |||
| Shenzhen Jifa Warehouse Co., Ltd. | Tian’an International Building Property Management Company of Shenzhen | Shenzhen Jifa Warehouse Co., Ltd. | Tian’an International Building Property Management Company of Shenzhen | |
| Current assets | 3,868,284.61 | 53,933,973.04 | 8,330,101.77 | 53,771,789.30 |
| Of which: Cash and cash equivalents | 1,849,825.84 | 33,715,032.55 | 3,913,864.25 | 34,531,027.99 |
| Non-current assets | 75,623,155.59 | 43,779.72 | 75,129,933.91 | 42,265.30 |
| Total assets | 79,491,440.20 | 53,977,752.76 | 83,460,035.68 | 53,814,054.60 |
| Current liabilities | 2,174,273.25 | 24,695,642.12 | 6,230,492.36 | 24,725,254.19 |
| Non-current liability | 16,132,908.53 | 16,166,098.30 | ||
| Total liabilities | 2,174,273.25 | 40,828,550.65 | 6,230,492.36 | 40,891,352.49 |
| Equity attributable To owners of the Company as the parent | 77,317,166.95 | 13,149,202.11 | 77,229,543.32 | 12,922,702.11 |
| Portion of net assets calculated according to proportion of shareholdings | 38,658,583.48 | 6,574,601.06 | 38,614,771.66 | 6,461,351.06 |
| Carrying value of equity investment to joint ventures | 38,658,583.48 | 6,574,601.06 | 38,614,771.66 | 6,461,351.06 |
| Operating revenue | 2,523,193.69 | 8,588,350.29 | 3,127,168.02 | 10,118,037.30 |
| Finance expense | -2,946.63 | 24,599.52 | -12,030.91 | 3,608.49 |
| Income tax expense | 29,207.88 | 75,648.84 | 467,887.30 | 99,490.19 |
| Net profit | 87,623.63 | 226,500.00 | 1,321,510.93 | 240,142.21 |
| Total comprehensive income | 87,623.63 | 226,500.00 | 1,321,510.93 | 240,142.21 |
Other notes
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
| Ending balance/Reporting Period | Beginning balance/The same period of last year | |
Other notesNot applicable.
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
| Ending balance/Reporting Period | Beginning balance/The same period of last year | |
| Joint ventures: | -- | -- |
| The total of following items according to the shareholding proportions | -- | -- |
| Associated enterprises: | -- | -- |
| The total of following items according to the shareholding proportions | -- | -- |
Other notesNot applicable.
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises toTransfer Funds to the CompanyNot applicable.
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
| Name | The cumulative recognized losses in previous accumulatively derecognized | The derecognized losses (or the share of net profit) in Reporting Period | The accumulative unrecognized losses in Reporting Period |
Other notesNot applicable.
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Not applicable.
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated EnterprisesNot applicable.
4. Significant Common Operation
| Name | Main operating place | Registration place | Nature of business | Proportion /Share portion | |
| Directly | Indirectly | ||||
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of classifying as common operationOther notesNot applicable.
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial StatementsNotes to the structured entity excluded in the scope of consolidated financial statements:
Not applicable.
6. Other
Not applicable.
X. The Risk Related to Financial InstrumentsThe Company is engaged in risk management to achieve balance between risks and returns, minimizing the negative effects of riskson its operation performance and maximizing the interests of its shareholders and other equity investors. Based on that riskmanagement goal, the fundamental strategy of its risk management is to identify and analyze various risks facing the Company,establish an appropriate risk bottom line, carry out risk management and monitor various risks in a timely and reliable manner tocontrol them within a restricted scope.The Company faces various risks related to financial instruments in its routine activities, mainly including credit risk, liquidity riskmarket risk. The management has reviewed and approved the policies of managing those risks, which are summarized as follows.(I) Credit RiskCredit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is unable to fulfill itsobligations.
1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
On each balance sheet date, the Company shall evaluate whether the credit risk of relevant financial instruments has increasedsignificantly since the initial recognition. After determining whether the credit risk has increased significantly since the initialrecognition, the Company shall consider obtaining reasonable and reliable information without paying unnecessary extra costs orefforts, including qualitative and quantitative analysis based on historical data, external credit risk rating and forward-lookinginformation. On the base of the single financial instrument or combination of financial instruments with similar credit riskcharacteristics, the Company compares the risk of default of financial instruments on the balance sheet date with the risk of default onthe initial recognition date to determine the change of default risk of financial instruments during their expected duration.When one or more of the following quantitative and qualitative criteria prevails, the Company shall believe the credit risk of financialinstruments has increased significantly:
1) For the quantitative standard, it can be mainly analyzed from the probability of default for the remaining duration on the balancesheet date rises by more than a certain proportion compared with the initial confirmation.
2) For the qualitative standard, it can be mainly analyzed from the major adverse changes in the debtor's operation or financial situation,changes in existing or expected technology, market, economy or legal environment which shall have major adverse impacts on thedebtor’s repayment ability of the Company, etc.
3) The upper limit is that the debtor’s contract payment (including principal and interest) is overdue for more than 90 days.
(2) Definition of Default and Credit Impairment-Assets
When a financial instrument meets one or more of the following conditions, the Company shall define the financial asset as havingdefaulted, and its criteria are consistent with the definition of having incurred credit impairment:
1) Quantitative Standard
The debtor fails to make the payment after the contract payment date for more than 90 days;
2) Qualitative criteria
① The debtor has major financial difficulties;
② The debtor violates the binding provisions on the debtor in the contract;
③ The debtor is likely to go bankrupt or carry out other financial restructurings;
④ The creditor shall give the debtor concessions that will not be made in any other circumstances due to the economic or contractualconsiderations related to the debtor's financial difficulties.
2. Measurement of Expected Credit Loss
Key parameters of the expected credit loss measurement include default probability, loss given default, and default risk exposure. TheCompany considers the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating,guarantee method, collateral type, repayment method, etc.) to establish exposure models of default probability, loss given default, anddefault risk.
3. Refer to Note V-I (2), V-I (4), V-I (8) for details of the reconciliation statements of beginning balance and ending balance of financialinstrument loss provision.
4. Credit Risk Exposure and Credit Risk Concentration
The Company’s credit risk mainly comes from bank deposits and accounts receivable. To control the aforementioned relevant risks, theCompany has adopted the following measures.
(1)Bank deposits
The Company places its bank deposits with financial institutions of high credit ratings. Thus, its credit risk is low.
(2)Accounts receivable
The Company conducts credit assessment on the customers trading in the mode of credit on a regular basis. Based on the creditassessment result, the Company chooses to trade with recognized customers with good credit and monitor the balance of the accountsreceivable from them to ensure that the Company will not face any significant bad debt risk.Due to the Company merely trades with the authorized third party with good credit, the guarantee is not required. Credit riskconcentration is managed in accordance with the customers. As of 30 June 2020, there are certain credit concentration risks, and
56.25% of accounts receivable of the Company (63.81% on 31 December 2019) comes from top 5 customers of balance. TheCompany hasn’t held any guarantee or other credit enhancement for balance of accounts receivable.The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset in the balance sheet.(II)Liquidity RiskLiquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of cashdelivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as possible; orfrom the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure to generate theexpected cash flow.To control the risk, the Company comprehensively adopts bank loans as financing approach, appropriately combine long-term andshort-term financing modes and optimize the financing structure to maintain the balance between financing sustainability andflexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs and
capital expenditure.Financial liabilities classified by remaining maturity
| Item | Ending balance | ||||
| Carrying value | Undiscounted contract amount | Within 1 year | 1 to 3 years | Over 3 years | |
| Bank loans | 3,584,900,000.00 | 4,431,761,984.50 | 219,719,134.06 | 492,504,754.00 | 3,719,538,096.44 |
| Accounts receivable | 577,689,139.10 | 577,689,139.10 | 577,689,139.10 | ||
| Other receivables | 807,985,786.65 | 807,985,786.65 | 807,985,786.65 | ||
| Current portion for other non-current liabilities | 786,239,116.67 | 787,520,246.39 | 787,520,246.39 | ||
| Subtotal | 5,756,814,042.42 | 6,604,957,156.64 | 2,392,914,306.20 | 492,504,754.00 | 3,719,538,096.44 |
(Continued)
| Item | Beginning balance | ||||
| Carrying value | Undiscounted contract amount | Within 1 year | 1 to 3 years | Over 3 years | |
| Bank loans | 2,193,833,000.00 | 2,809,760,244.87 | 122,965,009.77 | 254,890,988.43 | 2,431,904,246.67 |
| Accounts payable | 577,689,139.10 | 577,689,139.10 | 577,689,139.10 | ||
| Other payables | 1,136,902,252.81 | 1,136,902,252.81 | 1,136,902,252.81 | ||
| Current portion for other non-current liabilities | 3,921,032.24 | 3,926,732.24 | 3,926,732.24 | ||
| Subtotal | 3,912,345,424.15 | 4,528,278,369.02 | 1,841,483,133.92 | 254,890,988.43 | 2,431,904,246.67 |
(III) Market RiskMarket risk means the fluctuation risk of the fair value of financial instruments or the future cash flow due to market price changes.
1. Interest rate risk
Interest rate risk means the fluctuation risk of the fair value of financial instruments or the future cash flow due to changes of marketinterest rate. The Company has faced the interest rate risk of fair value generated from the financial instrument with interest of fixedrate, and the interest rate risk of cash flows generated from financial instrument with interest of floating interest rate. The Company willdetermined the proportion between the financial instrument with interest of fixed rate and floating interest rate according to the marketenvironment, as well as review regularly, supervise and maintain appropriate portfolio of financial instrument. The interest rate risk ofcash flows facing the Company is mainly related to the bank loans calculated by floating interest rate of the Company.
As of 30 June 2020, under the assumption of fixed variables with 50 basis points changed in interest rate, the bank loan withRMB2,999,900,000.00 (RMB2,193,933,000.00 on 31 December 2019) calculated at floating rate will not result in significantinfluence on total profit and shareholders’ equity of the Company.
2. Foreign exchange risk
Foreign exchange rate refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows due tofluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currency monetaryassets and liabilities of the Company. The Company operates in mainland China, and the main activities are recorded by renminbi. Thus,the foreign exchange market risk undertaken is insignificant for the Company.Refer to Note VII-82 for the information of foreign currency monetary assets and liabilities at the period-end for details.
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| Item | Ending fair value | |||
| Fair value measurement items at level 1 | Fair value measurement items at level 2 | Fair value measurement items at level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (III) Other equity instrument investment | 1,134,803.13 | 1,134,803.13 | ||
| Total amount of assets at fair value | 1,134,803.13 | 1,134,803.13 | ||
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
Other equity instrument held by the Company belongs to stocks of listed company, of which the closing price of stock exchange on30 June 2020 shall be regarded as the fair value.
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters forConsistent and Inconsistent Fair Value Measurement Items at Level 2
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters forConsistent and Inconsistent Fair Value Measurement Items at Level 3
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning andEnding Carrying Value of Consistent Fair Value Measurement Items at Level 3
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens ifConversion Happens among Consistent Fair Value Measurement Items at Different Levels
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
9. Other
XII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
| Name | Registration place | Nature of business | Registered capital | Proportion of share held by the Company as the parent against the Company (%) | Proportion of voting rights owned by the Company as the parent against the Company (%) |
| Shenzhen Investment Holdings Co., Ltd | Shenzhen | Managing state-owned assets | RMB25,349 million | 57.96% | 57.96% |
Notes: Information on the Company as the parentThe Company as the parent of the Company is Shenzhen Investment Holdings Co., Ltd., a newly-established and organizedstate-owned capital investment company based on the original three state-owned assets management companies in October 2004,among which the main function is to manage the partial municipal state-owned companies according to the authorization ofMunicipal SASAC. As a government department, Shenzhen State-owned Assets Supervision and Administration Bureau managesShenzhen Investment Holdings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of ShenzhenGovernment.Other notes:
2. Subsidiaries of the Company
Refer to Note IX-(I) Equity in Subsidiary for details.
3. Information on the Joint Ventures and Associated Enterprises of the CompanyRefer to Note IX-3 for details about significant joint ventures or associated enterprises.Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in ReportingPeriod, or forming balance due to related-party transactions made in previous period:
| Name | Relationship with the Company |
Other notesNot applicable.
4. Information on Other Related Parties
| Name | Relationship with the Company |
| Shenzhen Investment Holdings Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Bay Technology Development Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
| Shenzhen Xinhai Holding Co., Ltd. | The Company as the parent of Xinhai Rongyao of subsidiary Rongyao Real Estate by non-controlling interests |
| Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. | Subsidiary Rongyao Real Estate by non-controlling interests |
| Shenzhen Hi-tech Zone Development Construction Co., Ltd | Wholly-owned subsidiary of Shenzhen Bay Technology Development Co., Ltd. |
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | Joint venture of the Company |
| Shenzhen Tian’an International Mansion Property Administration Co., Ltd. | Joint venture of the Company |
| Shenzhen Wufang Ceramics Industrial Co., Ltd. | Associated enterprise of the Company |
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | Wholly-owned subsidiary of the Company as the parent of the Company |
Other notes
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
| Related party | Content | Reporting Period | The approval trade credit | Whether exceed trade credit or not | Same period of last year |
| Shenzhen Bay Technology Development Co., | Management service | 33,458,508.93 | 27,169,639.46 |
Information of sales of goods and provision of labor service
Unit: RMB
Ltd.Related party
| Related party | Content | Reporting Period | Same period of last year |
| Shenzhen Bay Technology Development Co., Ltd. | Property management | 18,958,078.79 | 5,394,746.24 |
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | Property management | 713,736.06 | 0.00 |
| Shenzhen Hi-tech Zone Development Construction Co., Ltd | Property management | 669,509.81 | 683,947.62 |
Notes on acquisition of goods and reception of labor service
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Income recognized in this Reporting Period |
| Shenzhen Shentou Property Development Co., Ltd. | Shenzhen Toukong Property Management Co., Ltd. | Investment property | 6 November 2019 | 5 November 2025 | Market pricing | 19,566,423.45 |
Notes:
Lists of entrust/contractee
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Charge recognized in this Reporting Period |
Notes:
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
| Name of lessee | Category of leased assets | The lease income confirmed in the Reporting Period | The lease income confirmed in the Same period of last year |
The Company was lessee:
Unit: RMB
| Name of lessor | Category of leased assets | The lease fee confirmed in the Reporting Period | The lease fee confirmed in the Same period of last year |
| Shenzhen Shentou Property Development Co., Ltd. | Investment property | 190,340.58 | 133,177.08 |
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMB
| Secured party | Guarantee amount | Start date | End date | Execution accomplished or not |
The Company was secured party
Unit: RMB
| Guarantor: | Guarantee amount | Start date | End date | Execution accomplished or not |
Notes:
Not applicable.
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMB
| Related party | Amount | Start date | End date | Note |
| Borrowing | ||||
| Lending | ||||
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMB
| Related party | Content | Reporting period | Same period of last year |
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
| Item | Reporting period | Same period of last year |
| Remuneration for key management personnel | 6,604,773.44 | 4,115,229.51 |
(8) Other Related-party Transactions
Projects Investment Status of Core StaffTo advocate the core staff of the group to share the operating results of market-oriented projects with the Company, share theoperating risks, stimulate their endogenous power to improve efficiency and increase benefits, further improve the project turnoverrate, reduce the risks of land acquisition, development and operation, improve the asset management efficiency and to realize themaintenance and appreciation of state-owned assets, through the standardized and scientific design of investment follow-upmechanism and the establishment of the group's long-term incentive and restraint mechanism, the Company has formulated the StaffFollow-up Investment Management Measures. According to the above management measures, follow-up investment matters willform related transactions of the joint investment with some core staff of the Company. As of 31 December 2019, the core staff of theCompany has contributed a total of one item within the scope of the consolidated statement of follow-up investment through cash.The actual investment of follow-up investment is RMB40 million with no accumulated back-up fund. There is no change infollow-up investment and accumulated back-up fund in 2020. The follow-up investment of the item is as follows:
| Item | Total amount | Accumulative return |
| Bangling urban renewal project (Note) | 40,000,000.00 |
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
| Item | Related party | Ending balance | Beginning balance | ||
| Carrying amount | Bad debt provision | Carrying amount | Bad debt provision | ||
| Accounts receivable | Shenzhen Bay Technology Development Co., Ltd. | 112,143,815.18 | 3,364,314.46 | 93,790,305.70 | 4,689,515.29 |
| Shenzhen Hi-tech Zone Development Construction Co., Ltd. | 954,769.70 | 28,643.09 | 1,045,589.81 | 31,367.69 | |
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | 713,736.06 | 21,412.08 | |||
| Other receivables | Shenzhen Xinhai Holding Co., Ltd. | 401,499,990.18 | 551,499,990.18 | ||
| Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. | 330,472,932.33 | 330,472,932.33 | |||
| Shenzhen Hi-tech Zone Development Construction Co., Ltd. | 138,689.46 | 69,344.73 | 138,689.46 | 69,344.73 | |
| Shenzhen Wufang Ceramics Industrial Co., Ltd. | 1,747,264.25 | 1,747,264.25 | 1,747,264.25 | 1,747,264.25 |
(2) Accounts Payable
Unit: RMB
| Item | Related party | Ending carrying amount | Beginning carrying amount |
| Other payables | Shenzhen Real Estate Jifa Warehousing Co., Ltd. | 35,796,665.14 | 35,796,665.14 |
| Shenzhen Tian’an International Mansion Property Administration Co., Ltd. | 5,214,345.90 | 5,214,345.90 | |
| Shenzhen Bay Technology Development Co., Ltd. | 33,458,508.93 | ||
| Shenzhen Bay Area Urban Construction and Development Co., Ltd. | 358,252.18 | ||
| Shenzhen Shentou Property Development Co., Ltd. | 6,888,594.77 |
7. Commitments of Related Party
8. Other
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□ Applicable √ Not applicable
2. The Stock Payment Settled in Equity
□ Applicable √ Not applicable
3. The Stock Payment Settled in Cash
□ Applicable √ Not applicable
4. Modification and Termination of the Stock Payment
5. Other
XIV. Commitments and Contingency
1. Significant Commitments
Significant Contingency on Balance Sheet DateLarge amount contract signed under performance or performance preparation
| Item | Reporting period | Same period of last year |
| Signed but derecognized in financial statements | ||
| —Large amount contract | 147,758,430.24 | 498,279,835.00 |
2. Contingency
(1) Significant Contingency on Balance Sheet Date
1) Contingent liabilities formed by pending action and financial influence
①The action about transferring Jiabin Building contentious matter
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong PropertyDevelopment Co., Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed, the Companysubsequently filed a series of lawsuits against the parties involved in the project, but the outcome was not favorable to the Company.Therefore, the Company calculated and withdrew bad-debt provisions for accounts receivable from Jiyong Company in full in pastyears for the transfer of Jiabin Building. On 31 October 2018, Shenzhen Intermediate People’s Court made a civil award and ruledthat the Company’s application for the bankruptcy of Jiyong Company would not be accepted. The Company refused to accept suchruling and has appealed to Shenzhen Intermediate People’s Court. On 29 April 2020, Guangdong Higher People's Court judged toreject the appeal of the Company and maintained the original judgment. As of the issuance date of the report, there is no newprogress in the case.
② Lawsuit items regarding disputes over environmental pollution liability of Fuchang Building Phase IIOn 24 May 2019, the Futian District Indemnificatory Talent Housing Project “Fuhuihuayuan, Fuchang Building Phase II” developedby the Company officially started. The plaintiffs Feng Shuiping and other 180 people filed a civil lawsuit against the Company andthe Second Construction Engineering Co., Ltd. of China Construction Third Engineering Bureau Co., Ltd. (hereinafter referred to as“The Third Construction Bureau”). The plaintiffs asked for stopping nuisance and claimed the amount of personal injurycompensation at the standard of RMB300 per day during the construction period and the total amount of the subject matter involvedin the series of cases was RMB8.154 million. Futian District People’s Court has opened the trial, but hasn’t given the judgment. Asof the issuance date of the report, there is no new progress in the case. Due to no judgment given from the court, the Company hasn’taccrued the estimated liability for the case.
③Lawsuit items regarding Lvxinyuan Company contract dispute
On 23 October 2018, Shenzhen Huazhengpeng Property Management Development Co., Ltd. (hereinafter referred to as“Huazhengpeng”), a subsidiary of the Company, was sued by the plaintiff Shenzhen Lvxinyuan Agricultural Products Co., Ltd.(hereinafter referred to as Lvxinyuan) for a dispute over the sales contract. On 11 March 2019, the court ruled that Huazhengpenghad to pay Lvxinyuan good payments and the interest altogether RMB593,579.23. on 23 June 2019, the bank account balance under
Huazhengpeng's name was deducted RMB111,545.36 during the enforcement process by Futian District People’s Court, and theaccount of Huazhengpeng Company was frozen, at this point, there are no executable assets under Huazhengpeng's name.Huazhengpeng accrued the estimated liability of RMB 482,033.87 according to the compensation amount to be paid.
④ Lawsuit items regarding Cai Xuesen's contract dispute
On 10 August 2005, Shenzhen Taixinli Property Management Co., Ltd. (hereinafter referred to as “Taixinli”), a subsidiary of theCompany, leased two lands located beside original Songgang toll station of national highway 107 to Cai Xuesen (natural person) forthe construction of a factory building. Due to the land can only be used for education, Cai Xuesen was unable to obtain a work permit.Therefore, on 30 June 2008, Cai Xuesen filed a lawsuit to the court on the ground that Taixinli deliberately concealed the fact thatthey had no land use right, and made him impossible to start construction at the agreed time. On 13 January 2019, ShenzhenIntermediate People’s Court made a final judgment on the case, demanding Taixinli to repay Cai Xuesen’s losses altogetherRMB749,398.00. Cai Xuesen applied for a retrial, and Guangdong Higher People's Court judged to reject the retrial application on 17September 2019. The Compant has accrued the estimated liability in full for the above amount.
⑤ Lawsuit items regarding Lubanhang’s contract disputes
On 23 July 2014, Shenzhen Taixinli Property Management Co., Ltd. (hereinafter referred to as “Taixinli”), a subsidiary of theCompany, signed Supervision Service Contract with Guangdong Lubanhang Technology Co., Ltd. (hereinafter referred to as“Lubanhang”) regarding Yupin Luanshan project. The project was suspended in 2016 for some reason, so Lubanhang filed a lawsuitwith Shenzhen Bao’an District People's Court on 31 March 2019, required to dissolve the Supervision Service Contract and paysupervision service fees and interest, etc altogether RMB7,063,237.32, and proposed to the court for property preservation. On 5November 2019, the court ruled in the first instance that the service contrict signed shall be terminated on 21 May 2019, and Taixinlishould pay the residual supervision service fees of RMB2.3379 million and its interest to Lubanhang. Taixinli has instituted theappeal, and the second trial has opened but no judgment. Taixinli has paid part of the supervision service fees and correspondinginterest according to the fault liability. The Company has accrued the estimated liability of RMB1,671,896.00 according to thejudgment result of the court.
2) Contingent liabilities formed by debt guarantee provided for other units and financial influence
①As a real estate developer, the Company has provided mortgage guarantees for commercial housing purchasers and paid loanguarantees according to real estate business practices. As of 30 June 2020, the balance of the cash deposit that have not been releasedis RMB1,120,910.60. That guarantee will be released on the date when the mortgage money is paid off.
②The Company and its subsidiaries provide mortgage guarantees for commercial housing purchasers according to the real estatebusiness practice. The purchaser uses the purchased commercial housing as collateral. The guarantee amount that has not been settledas of 30 June 2020 is RMB291,699.484.08 and since so far, purchasers have not defaulted, and the current market price of theseproperties is higher than the selling price, the Company believes that the risks associated with providing such guarantees arerelatively low.
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make RelevantStatementsThere was no significant contingency in the Company.
3. Other
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Unit: RMB
| Item | Content | Influence number to the financial position and operating results | Reason of inability to estimate influence number |
2. Profit Distribution
Unit: RMB
3. Sales Return
Not applicable.
4. Notes to Other Events after Balance Sheet Date
Not applicable.XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
| Content | Processing program | Name of the influenced report items during comparison period | Accumulative impact |
(2) Prospective Application
| Content | Processing program | Reason for adopting prospective application |
2. Debt Restructuring
Not applicable.
3. Assets Replacement
(1) Non-monetary Assets Exchange
Not applicable.
(2) Other Assets Replacement
Not applicable.
4. Pension Plans
Not applicable.
5. Discontinued Operations
Unit: RMB
| Item | Income | Expense | Total profit | Income tax expense | Net profit | Profit from discontinued operations attributable to owners of the Company as the parent |
Other notesNot applicable.
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure, management requirements and internal report system, the Company identifiedthe reportable segments based on the product segment and assessed the operational performance of ivory business, printing businessand latex business. The assets and liabilities sharing with other segments shall be proportionally distributed among segments byscales.
(2) The Financial Information of Reportable Segment
Unit: RMB
| Item | Real estate | House rental | Property management | Others | Offset among segment | Total |
| Main operation | 858,698,806.07 | 503,900,511.94 | 74,034,931.14 | 2,350,593.28 | -17,907,074.60 | 1,421,077,767.83 |
| revenue | ||||||
| Main operation cost | 147,212,422.45 | 430,811,529.01 | 45,663,839.65 | 1,791,479.94 | -13,784,327.25 | 611,694,943.80 |
| Total assets | 14,202,954,456.27 | 1,103,321,905.06 | 503,444,362.38 | 3,457,781.30 | -4,864,331,432.43 | 10,948,847,072.58 |
| Total liabilities | 11,743,875,757.04 | 659,755,316.00 | 202,923,139.56 | 5,456,470.96 | -4,894,458,753.05 | 7,717,551,930.51 |
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each ReportableSegment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
(4) Other Notes
7. Other Significant Transactions and Events with Influence on Investors’ Decision-makingNot applicable.
8. Other
Not applicable.XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Notes Receivable and Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable for which bad debt provision separately accrued | 96,702,269.40 | 93.20% | 96,702,269.40 | 100.00% | 0.00 | 96,702,269.40 | 99.16% | 96,702,269.40 | 100.00% | 0.00 |
| Of which: | ||||||||||
| Accounts receivable withdrawal of bad | 7,051,089.35 | 6.80% | 234,254.18 | 3.32% | 6,816,835.17 | 820,241.30 | 0.84% | 64,309.16 | 7.84% | 755,932.14 |
| debt provision by group | ||||||||||
| Of which: | ||||||||||
| Total | 103,753,358.75 | 100.00% | 96,936,523.58 | 93.43% | 6,816,835.17 | 97,522,510.70 | 100.00% | 96,766,578.56 | 99.22% | 755,932.14 |
Accounts receivable for which bad debt provision separately accrued: RMB 96,702,269.40
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Reason for withdrawal | |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 93,811,328.05 | 100.00% | Involved in lawsuit and with no executable property |
| Shenzhen Tewei Industry Co., Ltd. (Chenhui Building) | 2,836,561.00 | 2,836,561.00 | 100.00% | Long aging and expected to be irrecoverable |
| Luohu District Economic Development Company | 54,380.35 | 54,380.35 | 100.00% | Long aging and expected to be unrecoverable |
| Total | 96,702,269.40 | 96,702,269.40 | -- | -- |
Accounts receivable for which bad debt provision separately accrued:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Reason for withdrawal | |
Accounts receivable withdrawal of bad debt provision by group: RMB234,254.18
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Credit risk features group | 7,051,089.35 | 234,254.18 | 3.32% |
| Total | 7,051,089.35 | 234,254.18 | -- |
Notes to the determination basis for the group:
Accounts receivable withdrawal of bad debt provision by group:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Within 1 year | 6,726,496.58 | 201,794.90 | 3.00% |
| 1 to 2 years | 324,592.77 | 32,459.28 | 10.00% |
| Total | 7,051,089.35 | 234,254.18 | -- |
Notes to the determination basis for the group:
Accounts receivable withdrawal of bad debt provision by group:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of notes receivable.
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 6,726,496.58 |
| 1 to 2 years | 324,592.77 |
| 2 to 3 years | 0.00 |
| Over 3 years | 96,702,269.40 |
| 3 to 4 years | 0.00 |
| 4 to 5 years | 0.00 |
| Over 5 years | 96,702,269.40 |
| Total | 103,753,358.75 |
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting PeriodBad Debt Provision Withdrawal in the Reporting Period:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawal | Reversal or recovery | Write-off | Other | |||
| Accounts receivable for which bad debt provision separately accrued | 96,702,269.40 | 0.00 | 0.00 | 0.00 | 0.00 | 96,702,269.40 |
| Accounts receivable withdrawal of bad debt provision by group | 64,309.16 | 169,945.02 | 0.00 | 0.00 | 0.00 | 234,254.18 |
| Total | 96,766,578.56 | 169,945.02 | 0.00 | 0.00 | 0.00 | 96,936,523.58 |
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
| Name of entity | Amount reversed or recovered | Way of recovery |
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
Of which the verification of significant other accounts receivable:
Unit: RMB
| Name of entity | Nature | Amount verified | Reason for verification | Verification procedures performed | Whether generated from connected transactions |
Notes to verification of accounts receivable:
Not applicable.
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
| Name of entity | Ending balance of accounts receivable | Proportion to the total ending balance of accounts receivable (%) | Ending balance of bad debt provision |
| Shenzhen Jiyong Properties & Resources Development Company | 93,811,328.05 | 90.42% | 93,811,328.05 |
| Shenzhen Tewei Industry Co., Ltd. (Chenhui Building) | 2,836,561.00 | 2.73% | 2,836,561.00 |
| Shenzhen Rainbow Department Store Co., Ltd. | 2,561,709.85 | 2.47% | 99,572.79 |
| Agency Property Management Office of Luohu | 1,167,132.00 | 1.12% | 35,013.96 |
| China Pacific Insurance (Group) Co., Ltd. | 592,021.00 | 0.57% | 17,760.63 |
| Total | 100,968,751.90 | 97.31% |
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
Not applicable.
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement ofAccounts ReceivableNot applicable.Other notes:
Not applicable.
2. Other Accounts Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Other accounts receivable | 307,850,283.10 | 501,082,153.81 |
| Total | 307,850,283.10 | 501,082,153.81 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
2) Significant Overdue Interest
| Entity | Ending balance | Overdue time | Overdue reason | Whether occurred impairment and its judgment basis |
Other notes:
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
| Item (or investees) | Ending balance | Beginning balance |
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMB
| Item (or investees) | Ending balance | Aging | Reason | Whether occurred impairment and its judgment basis |
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Deposit | 2,209,111.80 | 2,139,511.80 |
| Payment on behalf | 16,557.82 | |
| External intercourse funds | 23,164,684.06 | 23,164,046.99 |
| Intercourse funds to subsidiary | 314,881,167.01 | 508,280,508.64 |
| Total | 340,254,962.87 | 533,600,625.25 |
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2020 | 16,036,529.31 | 16,481,942.13 | 32,518,471.44 | |
| Balance of 1 January 2020 in the Current Period | —— | —— | —— | —— |
| Withdrawal of the Current Period | 29,442.69 | 29,442.69 | ||
| Reversal of the Current Period | 143,234.36 | |||
| Balance of 30 June 2020 | 15,922,737.64 | 16,481,942.13 | 32,404,679.77 |
Changes of carrying amount with significant amount changed of loss provision in the Reporting Period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 years (including 1 year) | 950,168.04 |
| 1 to 2 years | 36,905,250.20 |
| 2 to 3 years | 1,883,905.23 |
| Over 3 years | 300,515,639.40 |
| 3to 4 years | 46,488,872.67 |
| 4to 5 years | 52,823,059.02 |
| Over 5 years | 201,203,707.71 |
| Total | 340,254,962.87 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawal | Reversal or recovery | Write-off | Other | |||
| Bad debt provision withdrawn separately | 23,748,219.30 | 143,234.36 | 23,604,984.94 | |||
| Bad debt provision withdrawn by group | 8,770,252.14 | 29,442.69 | 8,799,694.83 | |||
| Total | 32,518,471.44 | 29,442.69 | 143,234.36 | 32,404,679.77 | ||
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Unit: RMB
| Name of entity | Amount reversed or recovered | Way of recovery |
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
| Item | Amount |
Of which the verification of significant other receivables:
Unit: RMB
| Name of the entity | Nature | Amount | Reason | Procedure | Whether occurred because of related-party transactions |
Notes to the verification of other receivables:
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to ending balance of total other receivables % | Ending balance of bad debt provision |
| Shum Yip Properties Development Limited | Intercourse funds to subsidiary | 112,060,954.38 | Over 5 years | 32.93% | 7,123,042.81 |
| SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd. | Intercourse funds to subsidiary | 69,746,069.13 | 1 to 3 years | 20.50% | |
| Shenzhen Huangcheng Property Management Co., Ltd. | Intercourse funds to subsidiary | 63,125,906.77 | 2 to 3 years | 18.55% | |
| SZPRD Yangzhou Real Estate Development Co., Ltd. | Intercourse funds to subsidiary | 28,954,840.54 | 3 to 4 years | 8.51% | |
| Shanghai Yutong Real Estate Co., Ltd. | External intercourse funds | 5,676,000.00 | Over 5 years | 1.67% | 5,676,000.00 |
| Total | -- | 279,563,770.82 | -- | 82.16% | 12,799,042.81 |
6) Accounts Receivable Involving Government Grants
Unit: RMB
| Name of the entity | Project of government grants | Ending balance | Ending aging | Estimated recovering time, amount and basis |
Not applicable.
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Not applicable.
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofOther Receivables
Not applicable.Other notes:
Not applicable.
3. Long-term Equity Investment
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Investment to subsidiaries | 1,095,429,880.39 | 69,964,000.00 | 1,025,465,880.39 | 1,095,429,880.39 | 69,964,000.00 | 1,025,465,880.39 |
| Investment to joint ventures and associated enterprises | 64,216,798.65 | 18,983,614.14 | 45,233,184.51 | 64,059,736.86 | 18,983,614.14 | 45,076,122.72 |
| Total | 1,159,646,679.04 | 88,947,614.14 | 1,070,699,064.90 | 1,159,489,617.25 | 88,947,614.14 | 1,070,542,003.11 |
(1) Investment to Subsidiaries
Unit: RMB
| Investee | Beginning balance (carrying value) | Increase/decrease | Ending balance (carrying value) | Ending balance of depreciation reserve | |||
| Additional investment | Reduced investment | Depreciation reserve withdrawn | Other | ||||
| Shenzhen Huangcheng Real Estate Co., Ltd. | 35,552,671.93 | 35,552,671.93 | |||||
| SZPRD Real Estate Development Co., Ltd. | 30,950,000.00 | 30,950,000.00 | |||||
| SZPRD Yangzhou Real Estate Development Co., Ltd. | 50,000,000.00 | 50,000,000.00 | |||||
| Dongguan ITC Changsheng Real Estate Development Co., Ltd. | 20,000,000.00 | 20,000,000.00 | |||||
| Shenzhen International Trade Center Property Management Co., Ltd. | 20,000,000.00 | 20,000,000.00 | |||||
| Shenzhen International Trade Center Catering Co., Ltd. | 1.00 | 1.00 | 1,600,000.00 | ||||
| Shenzhen Property Construction Supervision Co., Ltd. | 3,000,000.00 | 3,000,000.00 | |||||
| SZPRD Housing Assets Operation and Management Co., Ltd. | 40,000,000.00 | 40,000,000.00 | |||||
| Zhanjiang Shenzhen Real Estate Development Co., Ltd. | 0.00 | 0.00 | 2,530,000.00 | ||||
| Shum Yip Properties Development Co., Ltd. | 0.00 | 0.00 | 15,834,000.00 | ||||
| SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd. | 0.00 | 0.00 | 50,000,000.00 | ||||
| Shenzhen Rongyao Real | 508,000,000.00 | 508,000,000.00 |
| Estate Development Co., Ltd. | |||||||
| Shenzhen Toukong Property Management Co., Ltd. | 317,963,207.46 | 317,963,207.46 | |||||
| Total | 1,025,465,880.39 | 1,025,465,880.39 | 69,964,000.00 |
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
| Investee | Beginning balance (carrying value) | Increase/decrease | Ending balance (carrying value) | Ending balance of depreciation reserve | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Shenzhen Real Estate Jifa Warehousing Co., Ltd. | 38,614,771.66 | 43,811.79 | 38,658,583.45 | ||||||||
| Tian’an International Building Property Management Company of Shenzhen | 6,461,351.06 | 113,250.00 | 6,574,601.06 | ||||||||
| Subtotal | 45,076,122.72 | 157,061.79 | 45,233,184.51 | ||||||||
| II. Associated enterprises | |||||||||||
| Shenzhen Wufang Ceramics Industrial Co., Ltd. | 18,983,614.14 | ||||||||||
| Subtotal | 18,983,614.14 | ||||||||||
| Total | 45,076,122.72 | 157,061.79 | 45,233,184.51 | 18,983,614.14 | |||||||
(3) Other Notes
4. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 25,828,330.02 | 15,835,977.53 | 341,910,051.35 | 64,045,206.33 |
| Other operations | 659,988.00 | |||
| Total | 25,828,330.02 | 15,835,977.53 | 341,910,051.35 | 64,705,194.33 |
Relevant information of revenue:
Unit: RMB
| Category of contracts | Segment 1 | Segment 2 | Total | |
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: | ||||
| Of which: |
Information related to performance obligations:
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet wasRMB0.00 at the period-end, among which RMB0.00 was expected to be recognized in the year, RMBXXX in the year and RMBXXXin the year.Other notes:
5. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by equity method | 157,061.79 | 780,826.57 |
| Investment income of financial instrument during holding period | 62,416,928.73 | 16,099,318.67 |
| Total | 62,573,990.52 | 16,880,145.24 |
6. Other
Not applicable.
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses on the disposal of non-current assets | 1,901.04 | Disposal of retail assets |
| Government grants recognized in the Current Period, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the government’s unified standards | 3,647,311.17 | Subsidy of epidemic prevention received |
| Other non-operating income and expense other than the above | -1,905,036.49 | |
| Less: Income tax effects | 400,624.88 | |
| Non-controlling interests effects | -2,560.54 | |
| Total | 1,346,111.38 | -- |
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains andLosses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on Equity and Earnings Per Share
| Profit as of Reporting Period | Weighted average ROE (%) | EPS (Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to ordinary shareholders of the Company | 6.66% | 0.3557 | 0.3557 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit or loss | 6.62% | 0.3534 | 0.3534 |
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under Internationaland Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas andChinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and OverseasAccounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by theForeign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
4. Other