ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
SHENZHEN PROPERTIES & RESOURCES
DEVELOPMENT (GROUP) LTD.
FIRST QUARTER REPORT 2019
(Announcement No. 2019-19)
April 2019
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of ShenZhen Properties & Resources Development
(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material
omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head of
financial affairs, and Liu Qiang, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2019 Q1 2018 Change (%)
Operating revenue (RMB) 385,944,107.52 544,366,414.09 -29.10%
Net profit attributable to the listed
78,431,920.59 53,456,824.88 46.72%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 77,831,706.94 53,039,124.57 46.74%
items (RMB)
Net cash generated from/used in operating
-64,518,467.02 -96,704,935.74 106.71%
activities (RMB)
Basic earnings per share (RMB/share) 0.1316 0.0897 46.71%
Diluted earnings per share (RMB/share) 0.1316 0.0897 46.71%
Weighted average return on equity (%) 2.32% 1.81% 0.51%
31 March 2019 31 December 2018 Change (%)
Total assets (RMB) 8,714,873,623.91 5,820,202,137.54 49.73%
Equity attributable to the listed company’s
3,417,510,089.05 3,337,949,324.64 2.38%
shareholders (RMB)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of Scrapping disposal of
-25,657.07
impairment allowance write-offs) miscellaneous assets
Sporadic penalty and liquidated
Non-operating income and expense other than the above 688,828.91
damages income
Less: Income tax effects 62,958.19
Total 600,213.65 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred shareholders
Number of ordinary shareholders at
44,082 with resumed voting rights at the
the period-end
period-end (if any)
Top 10 shareholders
Name of Nature of Shareholding Restricted shares Shares in pledge or frozen
Total shares held
shareholder shareholder percentage held Status Shares
Shenzhen
Investment State-owned legal
63.82% 380,378,897 350,579,943
Holdings person
Corporation
Shenzhen
Duty-Free Domestic
Commodity non-state-owned 0.29% 1,730,300 1,730,300
Enterprises Co., legal person
Ltd.
Domestic natural
Yang Yaochu 0.24% 1,410,620
person
Domestic natural
Li Jing 0.20% 1,176,740
person
Domestic natural
Su Zhifen 0.19% 1,150,000
person
Domestic natural
Mai Furong 0.19% 1,130,500
person
Hong Kong
Securities
Foreign legal
Clearing 0.17% 1,047,565
person
Company
Limited
Wuhan
Xingkaiyuan Domestic
Electric Power non-state-owned 0.16% 950,000
Engineering Co., legal person
Ltd
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Domestic natural
Wang Hui 0.15% 880,000
person
Domestic natural
Zhang Shaoming 0.14% 853,400
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
Shenzhen Investment Holdings RMB-denominate
29,798,954 29,798,954
Corporation d ordinary stock
Domestically
Yang Yaochu 1,410,620 listed foreign 1,410,620
stock
Domestically
Li Jing 1,176,740 listed foreign 1,176,740
stock
RMB-denominate
Su Zhifen 1,150,000 1,150,000
d ordinary stock
Domestically
Mai Furong 1,130,500 listed foreign 1,130,500
stock
Hong Kong Securities Clearing RMB-denominate
1,047,565 1,047,565
Company Limited d ordinary stock
Wuhan Xingkaiyuan Electric Power RMB-denominate
950,000 950,000
Engineering Co., Ltd d ordinary stock
Domestically
Wang Hui 880,000 listed foreign 880,000
stock
RMB-denominate
Zhang Shaoming 853,400 853,400
d ordinary stock
Domestically
Cao Yifan 780,000 listed foreign 780,000
stock
The first largest shareholder, Shenzhen Investment Holding Corporation, is the actual
Related or acting-in-concert parties
controlling shareholder of the Company. And the Company does not know whether there are
among the shareholders above
related parties or acting-in-concert parties among the other 9 shareholders.
Top 10 ordinary shareholders
involved in securities margin trading N/A
(if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Other receivables stood at RMB1,434,865,553.97 as at 31 March 2019, rising 5773.76% compared to 31
December 2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate
Development Co., Ltd.
2. Inventories stood at RMB2,876,085,552.05 as at 31 March 2019, rising 143.37% compared to 31 December
2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate Development Co.,
Ltd.
3. Other current assets stood at RMB6,803,999.98 as at 31 March 2019, declining 59.24% compared to 31
December 2018, primarily driven by the decrease in debit balance of taxes payable needing to be reclassified.
4. Construction in progress stood at RMB6,510,626.40 as at 31 March 2019 and that of 31 March 2018 was
RMB0.00, primarily driven by the expense for house decoration and replacement of elevator equipment during Q1
2019.
5. Other non-current assets stood at RMB4,667,065.00 as at 31 March 2019, declining 95.72% compared to 31
December 2018, primarily driven by the offset of payments for M&A of shares in Shenzhen Rongyao Real Estate
Development Co., Ltd. by advance stock payment of RMB0.1 billion.
6. Other payables stood at RMB553,881,529.46 as at 31 March 2019, rising 392.33% compared to 31 December
2018, primarily driven by the increase of spare money of RMB406 million for stock transfer payable.
7. Long-term borrowings stood at RMB2,194,000,000.00 as at 31 March 2019, rising 219300.00% compared to
31 December 2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate
Development Co., Ltd.
8. Other comprehensive income stood at RMB-657,337.87 as at 31 March 2019, declining 63.20% compared to
31 December 2018, primarily driven by the decrease in the differences arising from translation of foreign
currency-denominated financial statements caused by changes in foreign exchange rates.
9. Operating revenue stood at RMB385,944,107.52 during Q1 2019, declining 29.10% compared to Q1 2018,
primarily driven by the decrease in income from real estate business caused by decrease of project settlement area.
10. Cost of sales stood at RMB197,403,666.57 during Q1 2019, declining 57.60% compared to Q1 2018,
primarily driven by the decrease in project settlement area and reduction in real estate business cost caused by
relatively low unit cost of main projects carried over during Q1 2019.
11. Taxes and surtaxes stood at RMB55,927,909.35 during Q1 2019, rising 1199.14% compared to Q1 2018,
primarily driven by the increase of increment tax on land value caused by relatively high appreciation rate of main
real estate projects carried over during Q1 2019.
12. Selling expense stood at RMB3,702,598.12 during Q1 2019, rising 65.46% compared to Q1 2018, primarily
driven by increase of charges for sales agency and services.
13. Finance costs stood at RMB7,377.66 during Q1 2019 and that of Q1 2018 was RMB-18,923,710.87, rising
100.04% compared to that of Q1 2018, primarily driven by increase of interest expense.
14. Investment income stood at RMB473,204.19 during Q1 2019 and that of Q1 2018 was RMB-280,948.37,
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
rising 268.43% compared to that of Q1 2018, primarily driven by changes caused by revenues realized by joint
ventures of the Company.
15. Income tax expense stood at RMB30,904,783.38 during Q1 2019, rising 72.09% compared to that of Q1 2018,
primarily driven by increase in profits realized by the Company.
16. Operating profit, profit before tax and net profit (attributable to the Company as the parent) respectively stood
at RMB103,889,652.96, RMB104,552,824.80 and RMB78,431,920.59 during Q1 2019, respectively rising
46.61%, 46.40% and 46.72% compared to those of Q1 2018, primarily driven by increase in gross margin of real
estate projects carried over during Q1 2019.
17. Net profit attributable to non-controlling interests stood at RMB-4,783,879.17 during Q1 2019 and that of Q1
2018 was RMB0.00, primarily driven by addition of ―net profit attributable to non-controlling interests‖ of
Shenzhen Rongyao Real Estate Development Co., Ltd.
18. Other comprehensive income, net of tax, stood at RMB1,128,843.82 during Q1 2019, declining 47.00%
compared that of Q1 2018, primarily driven by changes in differences arising from translation of foreign
currency-denominated financial statements caused by changes in foreign exchange rates.
19. Net cash generated from/used in operating activities during Q1 2019 stood at RMB-64,518,467.02 and the net
cash used in operating activities during Q1 2019, reducing 33.28% compared to that of Q1 2018, primarily driven
by increase in recoup funds of housing sales accounts during Q1 2019.
20. Net cash generated from/used in investing activities during Q1 2019 stood at RMB-2,442,304.07, and that of
Q1 2018 was RMB75,616,212.09, declining 103.23% compared to that of Q1 2018, primarily driven by receipt of
share transfer payments from two motor companies during Q1 2018.
21. Net cash generated from/used in financing activities during Q1 2019 stood at RMB-60,321,156.25, and that of
Q1 2018 was RMB0.00, primarily driven by increase in interest paid for loans during the Q1 2019.
22. Net increase in cash and cash equivalents stood at RMB-128,395,389.69 during Q1 2019, and the net outflow
of Q1 2019 increased 454.11% compared to that of Q1 2018, primarily driven by receipt of share transfer
payments during Q1 2018 and increase in interest paid during Q1 2019.
II Progress, Influence and Solutions with regard to Significant Events
□ Applicable √ Not applicable
Progress of any share repurchases:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as explanation of
why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Gain/los
Accumu
s of
lative
Account changes Purchas Sold in
Beginni changes Gain/los
Variety Symbol Initial ing in fair ed in the Ending
the
Name of ng in fair s in Account Capital
of of investm measure value in Reporti Reporti Reporti carrying
security carrying value ng ing title source
security security ent cost ment the ng ng value
value recorde Period
model Reporti Period Period
d into
ng
equities
Period
Availabl
Obtaine
Domesti e-for-sal
Gintian 2,991,9 Fair 2,991,9 2,991,9 d in debt
c/overse 400016 0.00 e
A 75.03 method 75.03 75.03 restructu
as stock financia
ring
l asset
Availabl
Obtaine
Domesti e-for-sal
Gintian 573,881 Fair 629,406 629,406 d in debt
c/overse 420016 0.00 e
B .03 method .08 .08 restructu
as stock financia
ring
l asset
3,565,8 3,621,3 3,621,3
Total -- 0.00 0.00 0.00 0.00 0.00 -- --
56.06 81.11 81.11
Disclosure date of
announcement on Board’s
consent for securities
investment
Disclosure date of
announcement on
shareholders’ meeting’s
consent for securities
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
investment (if any)
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Type of communication Index to main information
Date Way of communication
party communicated
Inquired of stock price and business
22 February 2019 By phone Individual
development of the Company
Inquired of stock price and the
27 February 2019 By phone Individual information of Bangling Project and
Qianhai golden collar project
Inquired of the progress of acquisition
5 March 2019 By phone Individual
for properties with investment holding
Inquired of the progress of projects of
8 March 2019 By phone Individual
the Company
Inquired of stock price and business
14 March 2019 By phone Individual
development of the Company
Inquired of the progress of acquisition
25 March 2019 By phone Individual for properties with investment holding of
the Company
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
31 March 2019
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 3,260,838,968.03 3,389,234,357.72
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes and accounts receivable 79,973,193.40 64,231,267.94
Including: Notes receivable
Accounts receivable 79,973,193.40 64,231,267.94
Prepayments 40,306,062.36 35,913,164.32
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,434,865,553.97 24,428,411.19
Including: Interest receivable 1,852,004.00 8,293,317.33
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 2,876,085,552.05 1,181,762,531.67
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 6,803,999.98 16,694,408.12
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Total current assets 7,698,873,329.79 4,712,264,140.96
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 3,621,381.11
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 40,472,487.43 39,999,283.24
Investments in other equity instruments
Other non-current financial assets 3,621,381.11
Investment property 394,619,908.79 400,550,689.90
Fixed assets 32,912,928.75 32,612,592.40
Construction in progress 6,510,626.40
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 2,300,575.94 2,398,576.29
Deferred income tax assets 530,895,320.70 519,783,531.64
Other non-current assets 4,667,065.00 108,971,942.00
Total non-current assets 1,016,000,294.12 1,107,937,996.58
Total assets 8,714,873,623.91 5,820,202,137.54
Current liabilities:
Short-term borrowings
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities
Notes and accounts payable 329,970,361.07 398,429,855.96
Advances from customers 332,463,520.29 265,338,215.34
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Payroll payable 83,795,418.74 96,069,521.54
Taxes payable 1,570,635,045.12 1,552,720,630.59
Other payables 553,881,529.46 112,502,146.69
Including: Interest payable 7,372,585.77 1,669.10
Dividends payable 29,642.40 29,642.40
Handling charges and commissions
payable
Reinsurance payables
Contractual liabilities
Liabilities directly associated with assets
classified as held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 2,870,745,874.68 2,425,060,370.12
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 2,194,000,000.00 1,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities 5,275.60 5,275.60
Other non-current liabilities 51,206,650.67 52,937,180.81
Total non-current liabilities 2,245,211,926.27 53,942,456.41
Total liabilities 5,115,957,800.95 2,479,002,826.53
Owners’ equity:
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 118,938,132.89 118,938,132.89
Less: Treasury stock
Other comprehensive income -657,337.87 -1,786,181.69
Special reserves
Surplus reserves 299,569,569.96 299,569,569.96
General reserve
Retained earnings 2,403,680,632.07 2,325,248,711.48
Total equity attributable to owners of the
3,417,510,089.05 3,337,949,324.64
Company as the parent
Non-controlling interests 181,405,733.91 3,249,986.37
Total owners’ equity 3,598,915,822.96 3,341,199,311.01
Total liabilities and owners’ equity 8,714,873,623.91 5,820,202,137.54
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 2,507,846,833.37 2,520,788,994.16
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes and accounts receivable 4,378,868.48 1,853,494.72
Including: Notes receivable
Accounts receivable 4,378,868.48 1,853,494.72
Prepayments 553,494.63 829,683.68
Other receivables 1,163,198,695.89 1,306,715,826.93
Including: Interest receivable 3,532,559.56 8,229,503.58
Dividends receivable
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Inventories 81,655,144.26 105,840,115.24
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 35,835.80
Total current assets 3,757,668,872.43 3,936,028,114.73
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 3,851,881.11
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 747,975,160.36 239,501,956.17
Investments in other equity instruments
Other non-current financial assets 3,851,881.11
Investment property 312,734,638.70 317,313,917.65
Fixed assets 8,847,625.90 9,121,637.65
Construction in progress 6,510,626.40
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 735,148.50 778,392.57
Deferred income tax assets 325,394,629.71 315,888,967.26
Other non-current assets 500,000,000.00 104,132,920.00
Total non-current assets 1,906,049,710.68 990,589,672.41
Total assets 5,663,718,583.11 4,926,617,787.14
Current liabilities:
Short-term borrowings
Trading financial liabilities
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Notes and accounts payable 89,333,590.28 124,501,464.28
Advances from customers 109,224,739.00 75,895,087.75
Contractual liabilities
Payroll payable 26,130,839.78 31,224,455.28
Taxes payable 1,442,701,710.87 1,402,388,742.76
Other payables 858,544,343.51 224,875,980.31
Including: Interest payable
Dividends payable 29,642.40 29,642.40
Liabilities directly associated with assets
classified as held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 2,525,935,223.44 1,858,885,730.38
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 2,525,935,223.44 1,858,885,730.38
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 92,326,467.62 92,326,467.62
Less: Treasury stock
Other comprehensive income
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Special reserves
Surplus reserves 298,912,759.52 298,912,759.52
Retained earnings 2,150,565,040.53 2,080,513,737.62
Total owners’ equity 3,137,783,359.67 3,067,732,056.76
Total liabilities and owners’ equity 5,663,718,583.11 4,926,617,787.14
3. Consolidated Income Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Revenue 385,944,107.52 544,366,414.09
Including: Operating revenue 385,944,107.52 544,366,414.09
Interest income
Premium income
Handling charge and commission
income
2. Costs and expenses 282,527,658.75 473,226,448.55
Including: Cost of sales 197,403,666.57 465,535,043.55
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 55,927,909.35 4,305,000.94
Selling expense 3,702,598.12 2,237,799.47
Administrative expense 25,486,107.05 20,075,315.46
R&D expense
Finance costs 7,377.66 -18,926,710.87
Including: Interest expense 13,494,997.51
Interest income 13,671,269.39 19,076,827.28
Asset impairment loss
Credit impairment loss
Add: Other income
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Return on investment (―-‖ for loss) 473,204.19 -280,948.37
Including: Share of profit or loss of joint
473,204.19 -280,948.37
ventures and associates
Foreign exchange gain (―-‖ for loss)
Net gain on exposure hedges (―-‖ for loss)
Gain on changes in fair value (―-‖ for loss)
Asset disposal income (―-‖ for loss)
3. Operating profit (―-‖ for loss) 103,889,652.96 70,859,017.17
Add: Non-operating income 1,220,292.90 649,272.29
Less: Non-operating expense 557,121.06 92,659.13
4. Profit before tax (―-‖ for loss) 104,552,824.80 71,415,630.33
Less: Income tax expense 30,904,783.38 17,958,805.45
5. Net profit (―-‖ for net loss) 73,648,041.42 53,456,824.88
5.1 By operating continuity
5.1.1 Net profit from continuing operations
73,648,041.42 53,456,824.88
(―-‖ for net loss)
5.1.2 Net profit from discontinued
operations (―-‖ for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the
78,431,920.59 53,456,824.88
Company as the parent
5.2.1 Net profit attributable to
-4,783,879.17
non-controlling interests
6. Other comprehensive income, net of tax 1,128,843.82 2,130,029.88
Attributable to owners of the Company as the
1,128,843.82 2,130,029.88
parent
6.1 Items that will not be reclassified to
profit or loss
6.1.1 Changes caused by remeasurements
on defined benefit pension 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
6.1.4 Changes in the fair value of the
company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to profit 1,128,843.82 2,130,029.88
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
or loss
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under the
equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the fair
value of available-for-sale financial assets
6.2.4 Other comprehensive income
arising from the reclassification of financial
assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity investments
to available-for-sale financial assets
6.2.6 Allowance for credit impairments in
investments in other debt obligations
6.2.7 Reserve for cash flow hedges
6.2.8 Differences arising from the
translation of foreign currency-denominated 1,128,843.82 2,130,029.88
financial statements
6.2.9 Other
Attributable to non-controlling interests
7. Total comprehensive income 74,776,885.24 55,586,854.76
Attributable to owners of the Company as the
79,560,764.41 55,586,854.76
parent
Attributable to non-controlling interests -4,783,879.17 0.00
8. Earnings per share
8.1 Basic earnings per share 0.1316 0.0897
8.2 Diluted earnings per share 0.1316 0.0897
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMBXXX, with the amount for the same period of last year being RMBXXX.
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili
Head of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Operating revenue 170,999,874.89 17,488,936.09
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Less: Cost of sales 32,647,485.77 5,558,855.29
Taxes and surcharges 46,678,135.05 1,066,152.79
Selling expense 1,563,480.03 251,069.50
Administrative expense 11,124,847.45 6,879,508.35
R&D expense
Finance costs -12,118,735.77 -17,920,181.87
Including: Interest expense
Interest income 12,177,082.31 17,924,431.07
Asset impairment loss
Credit impairment loss
Add: Other income
Return on investment (―-‖ for
2,306,537.53 -280,948.37
loss)
Including: Share of profit or
473,204.19 -280,948.37
loss of joint ventures and associates
Net gain on exposure hedges (―-‖
for loss)
Gain on changes in fair value (―-‖
for loss)
Asset disposal income (―-‖ for
loss)
2. Operating profit (―-‖ for loss) 93,411,199.89 21,372,583.66
Add: Non-operating income 160,000.00 117,516.67
Less: Non-operating expense 319,808.09 9,233.27
3. Profit before tax (―-‖ for loss) 93,251,391.80 21,480,867.06
Less: Income tax expense 23,200,088.89 5,422,817.71
4. Net profit (―-‖ for net loss) 70,051,302.91 16,058,049.35
4.1 Net profit from continuing
70,051,302.91 16,058,049.35
operations (―-‖ for net loss)
4.2 Net profit from discontinued
operations (―-‖ for net loss)
5. Other comprehensive income, net of
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
pension 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
5.1.4 Changes in the fair value of
the company’s credit risks
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 Gain/Loss on changes in the
fair value of available-for-sale financial
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 70,051,302.91 16,058,049.35
7. Earnings per share
7.1 Basic earnings per share 0.1175 0.0269
7.2 Diluted earnings per share 0.1175 0.0269
5. Consolidated Cash Flow Statement
Unit: RMB
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
470,757,472.88 216,591,435.86
and rendering of services
Net increase in customer deposits
and interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates
Cash generated from other operating
20,774,451.11 21,197,134.81
activities
Subtotal of cash generated from
491,531,923.99 237,788,570.67
operating activities
Payments for commodities and
342,434,913.82 133,596,754.45
services
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 financial assets held
for trading purposes
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 102,816,115.63 89,960,097.04
Taxes paid 92,294,854.14 86,751,844.14
Cash used in other operating
18,504,507.42 24,184,810.78
activities
Subtotal of cash used in operating
556,050,391.01 334,493,506.41
activities
Net cash generated from/used in
-64,518,467.02 -96,704,935.74
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of
fixed assets, intangible assets and other 970.00 42,563.50
long-lived assets
Net proceeds from the disposal of
76,797,409.69
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
970.00 76,839,973.19
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 888,001.82 1,223,761.10
long-lived assets
Payments for investments
Net increase in pledged loans
granted
Net payments for the acquisition of
1,555,272.25
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
2,443,274.07 1,223,761.10
activities
Net cash generated from/used in
-2,442,304.07 75,616,212.09
investing activities
3. Cash flows from financing activities:
Capital contributions received
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Including: Capital contributions
by non-controlling interests to
subsidiaries
Borrowings obtained
Net proceeds from the issuance of
bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and dividends 60,321,156.25
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
60,321,156.25
activities
Net cash generated from/used in
-60,321,156.25
financing activities
4. Effect of foreign exchange rate
-1,113,462.35 -2,082,768.44
changes on cash and cash equivalents
5. Net increase in cash and cash
-128,395,389.69 -23,171,492.09
equivalents
Add: Cash and cash equivalents,
3,375,714,690.09 2,464,626,655.21
beginning of the period
6. Cash and cash equivalents, end of
3,247,319,300.40 2,441,455,163.12
the period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
210,768,021.48 17,090,227.35
and rendering of services
Tax rebates
Cash generated from other operating
438,941,608.53 119,562,559.76
activities
Subtotal of cash generated from
649,709,630.01 136,652,787.11
operating activities
Payments for commodities and
37,404,275.70 1,142,839.51
services
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Cash paid to and for employees 10,964,754.93 6,924,081.61
Taxes paid 48,051,017.73 17,919,486.85
Cash used in other operating
64,533,773.42 58,477,561.44
activities
Subtotal of cash used in operating
160,953,821.78 84,463,969.41
activities
Net cash generated from/used in
488,755,808.23 52,188,817.70
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment 152,777.78
Net proceeds from the disposal of
fixed assets, intangible assets and other 690.00 4,563.50
long-lived assets
Net proceeds from the disposal of
70,207,999.92
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
153,467.78 70,212,563.42
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 251,436.80 185,610.00
long-lived assets
Payments for investments 500,000,000.00
Net payments for the acquisition of
1,600,000.00
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
501,851,436.80 185,610.00
activities
Net cash generated from/used in
-501,697,969.02 70,026,953.42
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Net proceeds from the issuance of
bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Repayments of borrowings
Payments for interest and dividends
Cash used in other financing
activities
Subtotal of cash used in financing
activities
Net cash generated from/used in
financing activities
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase in cash and cash
-12,942,160.79 122,215,771.12
equivalents
Add: Cash and cash equivalents,
2,520,788,994.16 1,754,272,751.45
beginning of the period
6. Cash and cash equivalents, end of
2,507,846,833.37 1,876,488,522.57
the period
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 3,389,234,357.72 3,389,234,357.72
Notes and accounts receivable 64,231,267.94 64,231,267.94
Accounts receivable 64,231,267.94 64,231,267.94
Prepayments 35,913,164.32 35,913,164.32
Other receivables 24,428,411.19 24,428,411.19
Including: Interest receivable 8,293,317.33 8,293,317.33
Inventories 1,181,762,531.67 1,181,762,531.67
Other current assets 16,694,408.12 16,694,408.12
Total current assets 4,712,264,140.96 4,712,264,140.96
Non-current assets:
Available-for-sale financial assets 3,621,381.11 N/A -3,621,381.11
Long-term equity investments 39,999,283.24 39,999,283.24
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Other non-current financial assets N/A 3,621,381.11 3,621,381.11
Investment property 400,550,689.90 400,550,689.90
Fixed assets 32,612,592.40 32,612,592.40
Long-term prepaid expense 2,398,576.29 2,398,576.29
Deferred income tax assets 519,783,531.64 519,783,531.64
Other non-current assets 108,971,942.00 108,971,942.00
Total non-current assets 1,107,937,996.58 1,107,937,996.58
Total assets 5,820,202,137.54 5,820,202,137.54
Current liabilities:
Notes and accounts payable 398,429,855.96 398,429,855.96
Advances from customers 265,338,215.34 265,338,215.34
Payroll payable 96,069,521.54 96,069,521.54
Taxes payable 1,552,720,630.59 1,552,720,630.59
Other payables 112,502,146.69 112,502,146.69
Including: Interest payable 1,669.10 1,669.10
Dividends payable 29,642.40 29,642.40
Total current liabilities 2,425,060,370.12 2,425,060,370.12
Non-current liabilities:
Long-term borrowings 1,000,000.00 1,000,000.00
Deferred income tax liabilities 5,275.60 5,275.60
Other non-current liabilities 52,937,180.81 52,937,180.81
Total non-current liabilities 53,942,456.41 53,942,456.41
Total liabilities 2,479,002,826.53 2,479,002,826.53
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Capital reserves 118,938,132.89 118,938,132.89
Other comprehensive income -1,786,181.69 -1,786,181.69
Surplus reserves 299,569,569.96 299,569,569.96
Retained earnings 2,325,248,711.48 2,325,248,711.48
Total equity attributable to owners of
3,337,949,324.64 3,337,949,324.64
the Company as the parent
Non-controlling interests 3,249,986.37 3,249,986.37
Total owners’ equity 3,341,199,311.01 3,341,199,311.01
Total liabilities and owners’ equity 5,820,202,137.54 5,820,202,137.54
Note for adjustment:
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
According to the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments
(CK[2017] No. 7), the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets (CK[2017] No. 8), the
Accounting Standards for Business Enterprises No. 24 – Hedging Accounting (CK[2017] No. 9), and the Accounting Standards for
Business Enterprises No. 37 – Presentation of Financial Instruments (CK[2017] No. 14) issued and revised in 2017 by Ministry of
Finance, enterprises listed domestically shall implement relevant new accounting standards of financial instruments from 1 January
2019.
Notes of Revising and Printing the Format of 2018 General Enterprises Financial Statement (CK [2018] No. 15) (hereinafter referred
to as ―CK [2018] No. 15‖) was issued by the Ministry of Finance on 15 June 2018, which required non-financial enterprises
implementing accounting standards to prepare the financial statements in accordance with the revised format of general enterprises
financial statements (applying to the enterprises who already implemented new standards governing financial instruments and
revenue)
Adjustments are as follows according to the regulations and requirements of above notes and accounting standards for business
enterprise:
1. The Company classified and adjusted the original ―Available-for-sale financial assets‖ to ―Other non-current financial assets‖
according to the regulations of new standards of governing financial instruments.
2. The Company changed ―incurred loss method‖ to ―expected loss method‖ for provision for financial assets impairment.
3. According to the regulations of new accounting standards governing financial instruments, the Company did not need to restate the
pervious comparative data. The adjustment of discrepancy between with the new standards at the first execution day and original
standards shall be recorded into the beginning retained earnings of 2019 or other comprehensive income.
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 2,520,788,994.16 2,520,788,994.16
Notes and accounts receivable 1,853,494.72 1,853,494.72
Accounts receivable 1,853,494.72 1,853,494.72
Prepayments 829,683.68 829,683.68
Other receivables 1,306,715,826.93 1,306,715,826.93
Including: Interest receivable 8,229,503.58 8,229,503.58
Inventories 105,840,115.24 105,840,115.24
Total current assets 3,936,028,114.73 3,936,028,114.73
Non-current assets:
Available-for-sale financial assets 3,851,881.11 N/A -3,851,881.11
Long-term equity investments 239,501,956.17 239,501,956.17
Other non-current financial assets N/A 3,851,881.11 3,851,881.11
Investment property 317,313,917.65 317,313,917.65
Fixed assets 9,121,637.65 9,121,637.65
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
Long-term prepaid expense 778,392.57 778,392.57
Deferred income tax assets 315,888,967.26 315,888,967.26
Other non-current assets 104,132,920.00 104,132,920.00
Total non-current assets 990,589,672.41 990,589,672.41
Total assets 4,926,617,787.14 4,926,617,787.14
Current liabilities:
Notes and accounts payable 124,501,464.28 124,501,464.28
Advances from customers 75,895,087.75 75,895,087.75
Payroll payable 31,224,455.28 31,224,455.28
Taxes payable 1,402,388,742.76 1,402,388,742.76
Other payables 224,875,980.31 224,875,980.31
Dividends payable 29,642.40 29,642.40
Total current liabilities 1,858,885,730.38 1,858,885,730.38
Non-current liabilities:
Total liabilities 1,858,885,730.38 1,858,885,730.38
Owners’ equity:
Share capital 595,979,092.00 595,979,092.00
Capital reserves 92,326,467.62 92,326,467.62
Surplus reserves 298,912,759.52 298,912,759.52
Retained earnings 2,080,513,737.62 2,080,513,737.62
Total owners’ equity 3,067,732,056.76 3,067,732,056.76
Total liabilities and owners’ equity 4,926,617,787.14 4,926,617,787.14
Note for adjustment:
According to the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments
(CK[2017] No. 7), the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets (CK[2017] No. 8), the
Accounting Standards for Business Enterprises No. 24 – Hedging Accounting (CK[2017] No. 9), and the Accounting Standards for
Business Enterprises No. 37 – Presentation of Financial Instruments (CK[2017] No. 14) issued and revised in 2017 by Ministry of
Finance, enterprises listed domestically shall implement relevant new accounting standards of financial instruments from 1 January
2019.
Notes of Revising and Printing the Format of 2018 General Enterprises Financial Statement (CK [2018] No. 15) (hereinafter referred
to as ―CK [2018] No. 15‖) was issued by the Ministry of Finance on 15 June 2018, which required non-financial enterprises
implementing accounting standards to prepare the financial statements in accordance with the revised format of general enterprises
financial statements (applying to the enterprises who already implemented new standards governing financial instruments and
revenue)
Adjustments are as follows according to the regulations and requirements of above notes and accounting standards for business
enterprise:
1. The Company classified and adjusted the original ―Available-for-sale financial assets‖ to ―Other non-current financial assets‖
ShenZhen Properties & Resources Development (Group) Ltd. First Quarter Report 2019
according to the regulations of new standards of governing financial instruments.
2. The Company changed ―incurred loss method‖ to ―expected loss method‖ for provision for financial assets impairment.
3. According to the regulations of new accounting standards governing financial instruments, the Company did not need to restate the
pervious comparative data. The adjustment of discrepancy between with the new standards at the first execution day and original
standards shall be recorded into the beginning retained earnings of 2019 or other comprehensive income.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards Governing Financial
Instruments or Leases
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
