ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.
INTERIM REPORT 2019Announcement No. 2019-24
August 2019
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part I Important Notes, Table of Contents and DefinitionsThe 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 bejointly and severally liable for any misrepresentations, misleading statements or materialomissions therein.Liu Shengxiang, the Company’s legal representative, Cai Lili, the Company’s head offinancial affairs, and Liu Qiang, head of the Company’s financial department (equivalent tofinancial manager) hereby guarantee that the Financial Statements carried in this Report arefactual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.It is required to include in this Report the changes in the country’s real estate policy and therelated financial policy, as well as the supply and demand changes in the real estate sector.The Company has no interim dividend plan, either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Table of Contents
Interim Report 2019 ...... 1
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 5
Part III Business Summary ...... 8
Part IV Operating Performance Discussion and Analysis ...... 13
Part V Significant Events ...... 25
Part VI Share Changes and Shareholder Information ...... 32
Part VII Preferred Shares ...... 37
Part VIII Directors, Supervisors and Senior Management ...... 38
Part IX Corporate Bonds ...... 39
Part X Financial Statements ...... 40
Part XI Documents Available for Reference ...... 198
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Definitions
Term DefinitionThe “Company”, the “Group”, “SZPRD” or “we”
ShenZhen Properties & Resources Development (Group) Ltd.
and its
consolidated subsidiaries, except where the context otherwise requiresSIHC Shenzhen Investment Holdings Co., Ltd.SCIHC Shenzhen Construction Investment Holdings CorporationSIM Shenzhen Investment Management Co., Ltd.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part II Corporate Information and Key Financial InformationI Corporate InformationStock name PRD, PRD-B Stock code 000011, 200011Changed stock name (if any)
N/A
Stock exchange for stock
listing
Shenzhen Stock ExchangeCompany name in ChineseAbbr. (if any)
Stock exchange for stockCompany name in English (if
any)
ShenZhen Properties & Resources Development (Group) Ltd.Abbr. (if any) SZPRDLegal representative Liu ShengxiangII Contact Information
Board Secretary Securities RepresentativeName Fan Weiping
Qian Zhong and Ding MinghuaAddress
42/F, International Trade Center,
Company name in English (ifRenmin
South Road, Shenzhen,
RenminGuangdong
Province, P.R.China
42/F, International Trade Center,
GuangdongRenmin
South Road, Shenzhen,
RenminGuangdong
Province, P.R.ChinaTel. 0755-82211020 0755-82211020Fax 0755-82210610 82212043 0755-82210610 82212043Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address andemail address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2018 Annual Report.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
2. Media for Information Disclosure and Place where this Report is KeptIndicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’speriodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing theCompany’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information canbe found in the 2018 Annual Report.
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable √ Not applicable
IV Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2019 H1 2018 Change (%)Operating revenue (RMB) 755,390,079.96
825,013,984.97
-8.44%
Net profit attributable to
the listed
company’s shareholders (RMB)
103,749,398.16
| the listed | ||
82,972,527.59
25.04%
Net profit attributable to
company’s shareholders
the listedbefore exceptional
gains and losses (RMB)
103,686,185.29
| before exceptional | |
81,963,134.32
26.50%
activities (RMB)
-459,952,236.98
| Net cash generated from/used in operating | ||
-225,591,985.81
103.89%
Basic earnings per share (RMB/share) 0.1741
0.1392
25.07%
Diluted earnings per share (RMB/share) 0.1741
0.1392
25.07%
Weighted average return on equity (%) 3.09%
2.80%
0.29%
30 June 2019 31 December 2018 Change (%)Total assets (RMB) 9,119,832,221.42
5,820,202,137.54
56.69%
Equity
attributable to the listed company’s
shareholders (RMB)
3,263,107,819.45
| attributable to the listed company’s | ||
3,337,949,324.64
-2.24%
The total share capital at the end of the last trading session before the disclosure of this Report:
Total share capital at the end of
595,979,092
| the last trading session before | |
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
the disclosure of this Report (share)Fully diluted earnings per share based on the latest
capital above (RMB/share)
0.1741
| total share | ||
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises(CAS) and International Financial Reporting Standards (IFRS) and Foreign AccountingStandards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
3. Reasons for the Accounting Data Differences Above
□ Applicable √ Not applicable
XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMBItem H1 2019 NoteGain or loss on disposal of non-
impairment allowance write-offs)
-36,963.65
| current assets (inclusive of | ||
Disposal of miscellaneous assets
Non-operating income and expense other than the above 121,247.48
Penalty and liquidated damagesincomeLess: Income tax effects 21,070.96
Total 63,212.87
--Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part III Business SummaryI Principal Activity of the Company in the Reporting PeriodIs the Company subject to any industry-specific disclosure requirements?No.The establishment of SZPRD was accompanied by the reform & opening up policy executed in Shenzhen. At the beginning of 1982,the construction of the international trade building contracted by the Company was initiated, and it also realized the “ShenzhenSpeed” – “One Floor was Completed in Three Days”. At the end of the year, the predecessor of SZPRD—Shenzhen MunicipalProperty Development Corporation was founded. In January 1984, Comrade Deng Xiaoping paid the first visit to the internationaltrade building; in 1985, the building was formally put into service and then became the trend-leading center in Shenzhen and even inChina for a decade, occupying the position of “the tallest building in the country”. In 1988, it was reorganized into ShenzhenMunicipal Property Management Corporation and in 1990, it was restructured as the second batch of limited liability company. InJanuary 1992, Comrade Deng Xiaoping paid the second visit to the international trade building and delivered his world-renowned“South Inspection Speech” in the revolving restaurant at the 53
rdfloor. On March 30, SZPRD (A+B) was officially listed inShenzhen Stock Exchange.Since its establishment 37 years ago, the Company has developed into a large-scale comprehensive group company from a simpleproject company at that time by focusing on the traditional real estate business and implementing the pluralistic development strategy,taking Luohu as its base area and radiating all over the country. After the new session of leading body assumed the office at the endof 2017, the Company boldly made innovations, thoroughly drafted the group’s 13
thfive-year plan and medium and long-termstrategic plan, and officially put forward the development vision of “China’s First Smart Technology Park Ecological ChainComprehensive Operator Toping the World”. Accordingly, the modern industry-city complex transformation mode has made thesubstantial achievement. However, the Company will regard the technical innovation as the first driving force, give the role of capitalfund a full play, and construct the portal-type intelligent management service platform. Moreover, the Company will also attach greatimportance to the layout of hi-tech industrial park, regard Shenzhen as the base area and the Guangdong-Hong Kong-Macaometropolitan region and the surrounding suburbs the expansion area to enlarge the development domain. Besides, it will highlight thelayout of radiated circles and layers and gradually realize the group’s future vision.The Company currently has 10 functioning secondary subsidiaries in total, including 5 property development subsidiaries (ShenzhenHuangcheng Real Estate Co., Ltd., Dongguan ITC Changsheng Real Estate Development Co., Ltd., SZPRD Xuzhou Dapeng RealEstate Development Co., Ltd., SZPRD Yangzhou Real Estate Development Co., Ltd. and Shenzhen Rongyao Real EstateDevelopment Co., Ltd.), 1 property management subsidiary (Shenzhen International Trade Center Property Management Co., Ltd.), 2joint ventures (SZPRD Jifa Warehouse Co., Ltd. and Shenzhen Tian’an International Building Property Management Co., Ltd., withthe Company holding a 50% stake in both), 1 catering subsidiary (Shenzhen International Trade Center Catering Co., Ltd.) and 1housing assets operation subsidiary.
1. Real Estate Business
In terms of the main real estate business, the Company is specialized in developing the residence, the hi-end apartment and the officebuilding. Currently, the Company has established five major subsidiaries including Shenzhen Huangcheng Real Estate Co., Ltd.,Dongguan ITC Changsheng Real Estate Development Co., Ltd., SZPRD Xuzhou Dapeng Real Estate Development Co., Ltd.,SZPRD Yangzhou Real Estate Development Co., Ltd., and Shenzhen Rongyao Real Estate Development Co., Ltd., and successivelydeveloped a batch of medium and hi-end residence communities including Huangyuyuan, Junfeng Lishe Garden, Fengherili Complex,Property Times New Residence, NCC, Shengang No.1, Langqiao International, Caitianyise, Qianhai Gangwan Garden, Golden
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Collar’s Resort, Songhu Langyuan and Hupan Yujing etc.. In addition, the Company also contracted and constructed the largest landborder port in China—Huanggang Port, cooperatively developed various famous commercial buildings including Tian’anInternational Building and Luohu Commercial City etc., and succeeded in taking over Guanlan Bangling Urban Renewal Project.Nowadays, the following seven projects are under development:
(1) SZPRD-Qianhai Gangwan Garden (Shenzhen): Obtained in July 2011 in an asset swap promised in the share reform, site area19,900 , total floor area 98,500 , plot ratio 3.2, total land price RMB270 million, open for sale in November 2015 and iscompleted and sold out.
(2) SZPRD-Hupan Yujing Phase I (Yangzhou): Won through bidding on 28 January 2011, site area 25,200 , and total floor area50,900 . So far, residential units have been sold out and it is currently selling commercial and office space. SZPRD-Hupan YujingPhase II (Yangzhou): Site area 41,300 , and total floor area 74,400 . Currently, it is selling the remaining residential units, aswell as the commercial and office space.
(3) SZPRD-Banshan Yujing Phase I (Xuzhou): Won through bidding on 10 February 2010, site area 65,300 , and total floorarea 101,600 . Currently, it is selling the remaining space. SZPRD-Banshan Yujing Phase II (Xuzhou): Site area 31,500 , andtotal floor area 35,000 . Construction has begun in late 2018.
(4) SZPRD-Songhu Langyuan (Dongguan): Won on 15 July 2010, site area 66,900 , total floor area 207,500 , plot ratio 2.2,total land price RMB214 million, open for sale at the end of July 2015 and is completed and sold out.
(5) SZPRD-Golden Collar’s Resort (Shenzhen): Located at the Huanggang Port, historical land, site area 12,600 , total floorarea 183,300 and sales have started in 2018. Fine decoration of Building B is currently in progress, which is expected to becompleted and ready for moving in within this year.
(6) SZPRD-Fuhui Huayuan (Shenzhen): Located in Fumin New Village, Futian District, historical land, site area 4,274 , totalfloor area 43,800 and construction has officially begun on 29 December 2018. Foundation pit supporting and pile footing iscurrently in progress.
(7) Guanlan Bangling (Shenzhen): Located in Longhua District, Shenzhen, it is an urban renewal project acquired in 2019 by theCompany on the market, as well as a demonstration project of an ecologically integrated industrial and residential complex. With asite area of 68,800 and a total floor area of 600,000 , this project is currently having its planning draft publicized.
2. Property Management
This business is principally run by Shenzhen International Trade Center Property Management Co., Ltd., which has four subsidiaries,namely, Shenzhen Huangcheng Property Management Co., Ltd., Shandong International Trade Center Property Management Co.,Ltd., Chongqing International Trade Center Property Management Co., Ltd. and Yangzhou Jingyue Property Management Co., Ltd.Yangzhou Jingyue Property Management Co., Ltd. is a new joint venture incorporated in 2018, with the Company holding a 51%interest. The establishment of this sub-subsidiary marked the Company’s official entrance to the area of cultural and tourism propertymanagement. International Trade Property Management Co., Ltd. has been developed into the domestic first-class industrial parkbrand property service provider. At present, the Company has 14 branches and three national-level qualified enterprises in the wholecountry, and employs more than 4,000 employees, including Hulun Buir, Manzhouli, Baoding in Southern Market, Shandong,Shanghai, Zhejiang and Jiangsu in East China Market, Shenzhen and Dongguan in South China Market, etc. The Company managesover 100 projects and covers an area of 16 million m
(including the property park of about 8 million m
(including trusteeship). TheCompany has provided service for the famous enterprise parks (Huawei, Alibaba, Jingdong, Hikvision) and a large batch ofgovernment property projects in Shandong and Chongqing with its excellent market competitiveness.
3. House Leasing Business
The Group’s housing asset management Company operates independently and actively explores the development model of“long-term rental apartment + commercial offices”, and strives to develop various key demonstrative long-term rental apartmentprojects including ONE39 Building, Longhua Fengherili Complex, Fumin New Village Complex, Xinhu Village, Chuanbu Street andGolden Collar’s Resort etc.. The Company has made great effort to expand the brand influence of “Xi Apartments”. Besides, thehousing asset management company will mainly focus on its positioning of “Assets Operation Management Service Provider”, and
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
spread its business to various fields involving the business planning and operation management, warehousing service, real estatetransaction and assessment etc. based on its inherent advantages in the house renting service.
4. Catering Service
The catering business of the Company is operated by Shenzhen International Trade Catering Co., Ltd., with a total operating area of1,892 square meters. Shenzhen International Trade Catering Co., Ltd. was established in 1986. The revolving restaurant under theoperation of the Company has been listed as “The Highest-level Revolving Restaurant in China” by the State Council, and receivedmore than 600 Party and state leaders, domestic and foreign dignitaries, and cultural celebrities. For example, the chief designer ofChina’s reform and opening-up policy Comrade Deng Xiaoping visited the revolving restaurant and delivered the famous “SouthInspection Speech” in Spring of 1992, and set off the second wave of the reform and opening-up policy in China. Therefore, therestaurant is also a scenic spot with unique historical significance in Shenzhen.
5. Warehousing Service
The warehousing service is mainly provided by SZPRD Jifa Warehouse Co., Ltd., a joint venture where the Company, (Hong Kong)UNIJOY LIMITED, Shenzhen Zhongtianyuan Warehousing Co., Ltd. and SZPRD Property Development Co., Ltd. respectively hold25% shares (specialized in the warehousing service and the development of sea-bordering industries) with the total area of thewarehouses reaching 35,000 m
.
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Main reason for significant changesEquity assets
Up 1.95% from the beginning amount, primarily driven by return on investment in jointventures recognized at the equity methodFixed assets
Up 1.69% from the beginning amount, primarily driven by purchase of miscellaneousoffice facilitiesIntangible assets N/AConstruction in progress N/AAccounts receivable
Up 22.01% from the beginning amount, primarily driven by the increase in receivablesfrom home owners to the property management subsidiaryPrepayments
Up 269.00% from the beginning amount, primarily driven by the increase in tax prepaidin property re-saleOther receivables
Up 5669.01% from the beginning amount, primarily driven by the inclusion of theacquired Rongyao Real Estate into the consolidated financial statements of the CurrentPeriodInventory
Up 221.62% from the beginning amount, primarily driven by the inclusion of theacquired Rongyao Real Estate into the consolidated financial statements of the CurrentPeriodOther non-current assets
Up 45.15% from the beginning amount, primarily driven by the increase in input VAT tobe deducted
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness AnalysisIs the Company subject to any industry-specific disclosure requirements?No.In recent years, while vigorously developing the traditional real estate business and deploying the core city cluster, the Company hasgradually improved its pluralistic development strategy, and continuously enhanced its core competitiveness by means of effectivestrategic adjustment so as to accumulate strength for its future sustainable development. However, the Company’s corecompetitiveness can be analyzed from the following aspects:
Firstly, the Company will carry out its forward-looking layout and seek an appropriate transformation. As the Company leadingnon-financial enterprises within Shenzhen Investment Holdings system, it has completely coordinated with the significant strategy of“Circle and Layer Gradient and Various Parks in the Same District” and “Mixed Fund Control” implemented by ShenzhenInvestment Holdings, and put forward the development vision of “China’s First Smart Technology Park Ecological ChainComprehensive Operator Toping the World”. As a matter of fact, the industrial park comprehensive operation business involving theindustrial park + real estate development and construction, property (industrial park) management, house asset operation andwarehousing service and the industrial chain have taken their preliminary shape, creating a wide space for the Company’sdevelopment in the future.Secondly, the Company has quality assets and moderate business performance. As the Company has sought its development in thereal estate industry for over 30 years, it will centralize various resources to develop the real estate business in Shenzhen andsurrounding cities. Benefiting from the acquired lands’ cost advantages and the rapid expansion of Shenzhen Real Estate Market, theCompany’s projects in Shenzhen has brought the Company with sustainable economic benefit. In the future, it is expected to benefitfrom the population and industrial cluster effect in the metropolitan area generated from the construction of the Guangdong-HongKong-Macao Greater Bay Area, stabilizing the real estate industry’s demands and prices.Thirdly, the Company features good governance and stable teams. In fact, the Company has established a complete and standardbusiness management system so as to continuously improve and strengthen the risk recognition, monitoring and preventionprocedures. Besides, the Company has a stable management team, implements the consistent development strategy and makesunremitting effort to formulate the 12
th and 13
th
five-year strategic plan, on which basis, the Company keeps forging ahead andguarantees the continuity of the fundamental policy.Fourthly, the Company implements the level-2 management and the matured mode. At present, the Company has involved the twolevels—the group headquarters and the city company as the real estate development project’s management mode, on which basis, thegroup mainly manages the land investment, the planned operation, key marketing nodes and the plan, design and cost control abovenorm, and the Company in various cities shall be in charge of the project management, the on-the-spot marketing and the on-the-spotdesign and cost control below norm. Therefore, various project companies can obtain sufficient decision-making power. As the groupregards the system-oriented management as an important means, the internal operation system has thus been established (includingthe real estate industry’s comprehensive management system and Real Estate Handbook), and the real estate management mode hasincreasingly developed and become matured.Fifthly, the Company has accumulated certain brand value and cultural heritage. Through more than 30-year development, the“SZPRD” brand value carrying the spirit of international trade during the reform and opening-up practice and its comprehensivestrength have been widely recognized on the market. In July 2019, the Company won the title of “Brand Value Enterprise in the RealEstate Development Industry of Shenzhen” and “30-Year Vice-Chairman Unit since the Establishment of Shenzhen”. Besides, theCompany has also earned various honors in consecutive years, including “Top 500 Real Estate Development Enterprise in China”
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
and “Top 500 Enterprise in Guangdong Province” etc.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part IV Operating Performance Discussion and AnalysisI OverviewDuring the Reporting Period, the objective of “Stabilizing house and land prices as planned” remained unchanged at the policy end,and the cities adopted their respective real estate policies according to their realities. Under the framework of “One City, One Policy”,various measures shall be taken in line with the specific situation. For example, the regulating policy will be intensified to managevarious popular regions, but that prevailing in tier-2 and tier-3 cities will loosen; from the demand side, it’s required to strengthen themarket supervision, and restrain the house speculation with a firm hand; from the supply side, great effort will be made to adjust thehouse supply structure, vigorously develop the house rental market, the common property right house and various security houses,increase the effective supply ratio and promote the real estate industry’s healthy and stable development. In addition, the real estatetrust and the debt financing overseas have successively revealed the trend of tightening, and it will not be easy for various real estateenterprises to finance.On the whole, the real estate market in the first half of 2019 showed the following features: (1) the real estate developmentinvestment increase speed continued to fall, and the land market still showed a downturn. According to the data from the StateStatistics Bureau, from January to June in 2019, the nationwide real estate development investment reached RMB 6160.9 BillionYuan with a year-on-year growth of 10.9% while the increase speed fell 0.3 percentage point when compared to that from January toMay. Such fall in the development investment is mainly caused by the relatively weak land investment because the land market wasnot active at all on the whole since the 4
thquarter in 2018. From January to June, the real estate development enterprises’ landacquisitions reached 80.35 million square meters with a year-on-year decrease of 27.5%; the land transaction volume achieved RMB
381.1 Billion Yuan with a year-on-year decrease of 27.6%. In addition, the land market structure was divided with the popularity ofthe land market in tier-1 and tier-2 cities higher than that in tier-3 and tier-4 cities. (2) The real estate sales will continuously decline.From January to June in 2019, the sold commercial houses achieved 758 million square meters, declining 1.8% on a year-on-yearbasis; besides, the sales volume reached RMB 7069.8 Billion Yuan with a year-on-year increase of 5.6%, but the increase speeddeclined 0.5 percentage point. Nevertheless, the sales volume of residential houses increased 8.4%. The sales in the real estate marketare structured, and the tenacity of sales in tier-1 and tier-2 cities is still superior to that in tier-3 and tier-4 cities. (3) In the respect offinancing, the recent real estate financing become relatively difficult. Based on the document issued on May 23, the CBRC and theCIRC has continuously strengthened their supervision on the financing of banks and trust institutions. However, this policy will exertinsignificant impact on various enterprises featuring moderate financial situation and high level of credibility, and the industrialfinancing side may be further split.(I) Operation Features of the Company’s Main BusinessFirstly, the real estate business has made outstanding achievements and over-fulfilled the sales target. For example, ShenzhenHuangcheng Real Estate Co., Ltd. created a new high in the sales volume in the first half of the year and over-fulfilled thesemi-annual sales target. The total sales revenue achieved by the Golden Collar’s Resort Project was about RMB 2.4 Billion Yuan inthe first half of the year. Qianhai Gangwan Garden Project and Dongguan Songhu Langyuan Project also completed their objectivesin the first half of the year and over-fulfilled the annual work task in advance. Nowadays, the Company is accelerating the collectionof payment for the above three projects. Yangzhou Branch promoted the sales of remaining building of Hupan Yujing Project and theimplementation of Shouxihu Scientific and Technological Innovation Ecological Park as planned; Xuzhou Branch also focused onthe fulfillment of the objective of selling the remaining building of Xuzhou Banshan Yujing Phase I and initiating the pre-sales ofPhase II Project.Secondly, the property management segment is quickly expanding to provide a strong support for the nationwide expansionstrategy. In the first half of the year, the international trade building property management company independently expanded 11
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
property management service projects respectively in Chongqing, Chengdu and Beijing. As the newly-added management areareached 680,000 square meters, 74% of the target formulated at the beginning of the year was fulfilled, and the market occupancywas quickly improved. Actually, Huangcheng Property Management Company developed various projects in the first half of the yearincluding Dongguan Dalang Central Kindergarten and Zhaoqing BOC Building (occupying about 40,000 square meters). Inaddition, the group has smoothly carried out the property management hosting service for the investment holdings and madesubstantial progress. After the successful acquisition, the Company will realize its nationwide operation and management layout withBaoding (Shenzhen) Industrial Park in the north, Alibaba Hangzhou in the east, Shenzhen Bay Industrial Park in the south and JD inthe west. By promoting work in all areas by drawing upon the experience gained on key points, exerting the powerful demonstrationeffect, and making progress in an all-round way, the overall strength of the Company’s industrial park operation and managementsector will be further advanced, and is expected to rank among the top 3 in the national industry.Thirdly, the house assets can be operated independently and it’s required to cultivate the core competitiveness. The group hastaken the rental assets’ operation project throughout the life cycle into full consideration, attached great importance to theinput-output ratio, accelerated the cultivation of the core operating capability of the long-term rental apartment, and focused onstrengthening corresponding rental business. As a result, the rental income in the first half of the year achieved about RMB 31Million Yuan. While seeking opportunities to increase the rental properties, emphasis will also be placed on disposing the stockassets and improving the assets’ management efficiency. Currently, the Company has signed the Housing Fund Raising CooperationAgreement with Futian District Talents Housing Group, and the gold collar project A Block and Fumin New Village Complex willbe carried out as the pilot project for the new rental raising mode, which will be integrated into 2019 Futian District Talents HousingProject Plan. Meanwhile, Chuanbu Street Phase I Apartment Project, Fumin New Village Complex Project and 2/F Food Plaza in theinternational trade plaza as well as other renovation projects will also be carried out as scheduled.Fourthly, other businesses are orderly operated as well and the pluralistic management strategy has revealed its preliminaryachievements. In the first half of the year, the catering company harvested the operating revenue of about RMB 12.5 Million Yuan,finishing 47% of the annual budget target. Compared with that last year, the operating revenue accordingly increased. Thesupervision company’s operating revenue was about RMB 2.3 Million Yuan. At present, the agency is carrying out correspondingaudit evaluation work and orderly promoting the transfer of equity; Jifa Warehousing Company achieved the operating revenue ofRMB 3.13 Million Yuan and Tian’an Company RMB 10.12 Million Yuan.(II) Progress of Major Projects under Construction
1. SZPRD-Qianhai Gangwan Project (Shenzhen): This project was successfully completed with home owners moving in inDecember 2016.
2. SZPRD-Hupan Yujing Project Phase I (Yangzhou): This project was completed and owners moved in it in June 2014.
3. SZPRD-Hupan Yujing Project Phase II (Yangzhou): This project’s completion filing was completed in early November 2017,and owners moved in it at the beginning of 2018.
4. SZPRD-Banshan Yujing Project Phase I (Xuzhou): Owners successfully moved into the project in the first half of 2017, andhouses are available for sale now.
5. SZPRD-Banshan Yujing Project Phase II (Xuzhou): The foundation is being built and the superstructure construction hasstarted for some buildings.
6. SZPRD-Songhu Langyuan Project (Dongguan): This project was successfully completed with home owners moving in in July2017.
7. SZPRD-Golden Collar’s Resort Project (Shenzhen): Fine decoration of Building B is currently in progress, which is expected tobe completed and ready for moving in within this year.
8. SZPRD-Fuhui Huayuan Project (Shenzhen): Foundation pit supporting and pile footing is currently in progress.
9. Guanlan Bangling Project (Shenzhen): This project is currently having its planning draft publicized.More details are given as follows:
Project Location
Site areaFloor areaSellable Opening Space sold Space Status quo of Time of The
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
m
m
spacem
sellablespacem
in CurrentPeriodm
for)
settled inCurrentPeriodm
(subscribed
project completion
Company’s interest(%)QianhaiGangwanGarden
NanshanDistrict,Shenzhen
19,894
98,545 63,336 917 917 4,340
Completed an
| d |
sold out
October 2016
YangzhouHupanYujingPhase I
WeiyangDistrict,Yangzhou
25,228
50,948 48,871 9,011 460
4,445
Completed and
commerciallyavailable
June 2015
| Completed and |
YangzhouHupanYujingPhase II
WeiyangDistrict,Yangzhou
41,331
74,382 73,940 16,548 8,377
| Completed and |
commerciallyavailable
November2017
XuzhouBanshanYujingPhase I
District,Xuzhou
Tongshan
65,332
101,605
85,653 5,866 2,259
2,108
commerciallyavailable
November2016
XuzhouBanshanYujingPhase II
Completed and
Tongshan
District,Xuzhou
Tongshan
31,537
34,956 21,915 21,915 ——
—— Newly
commenced
and underconstruction
July 2020
SonghuLangyuan
DalangTown,Dongguan
66,882
207,459
136,374
2,215 2,215
7,464 Completed an
| d |
sold out
July 2017
Golden
Collar’s
ResortApartment
FutianDistrict,Shenzhen
12,598
183,323
125,234
121,927
26,156
—— Under
construction
March 2019
FuhuiHuayuan
FutianDistrict,Shenzhen
4,274 43,819 30,500 30,500 ——
—— Newly
commenced
and underconstruction
December2021
GuanlanBangling
LonghuaDistrict,
Shenzhen
68,770
Shenzhen
600,000
430,000
430,000
——
—— Having its
planning
publiced
June 2023
HuiyangDanshui
HuiyangDistrict,Huizhou
17,700
61,950 —— —— —— —— In preparation
forconstruction
PreliminaryPreparation
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Note: The space of the Yangzhou Hupan Yujing project includes the parking area.(III) Properties for Rent
Type ofproperty
Space available for rent
(m
)
The Company’sinterest (%)
Rental income (RMB’0,000)Shops andoffices
53,274.33 100% 2,544.83Plants 6,818.95 100% 327.57Residential units
198.29 100% 20.33Hotels 7,750.31 100% 182.44Complexes 1,500.00 100% 45.00Total 69,541.88 100% 3,120.16 (tax inclusive)The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for ListedCompanies Engaging in Real Estate.
II Analysis of Core BusinessesOverview:
Indicate by tick mark whether the overview here is the same with “I Overview” above in this part.
√ Yes □ No
See “I Overview” above.Year-on-year changes in key financial data:
Unit: RMBH1 2019 H1 2018
Change(%)
Main reason for changeOperating revenue
755,390,079.96
825,013,984.97
-8.44%
Decrease in revenue carryforwards in theproperty development businessCost of sales
381,969,088.48
689,187,341.10
-44.58%
Decrease in the floor area sold and the unit cost
Selling expense 18,292,724.72
9,296,529.76
96.77%
Increase in sales agent commissions paid in theproperty development businessAdministrative expense 55,957,281.51
43,316,443.65
29.18%
Increase in remuneration for employees andoffice expensesFinance costs 50,185,710.49
-27,617,224.65
-281.72%
Increase in interest expensesIncome tax expense 52,191,460.83
26,587,343.56
96.30%
Increase in pre-tax profits of lucrative
subsidiaries
Net cash generated from/used in
operating activities
-459,952,236.98
| Net cash generated from/used in | ||
-225,591,985.81
103.89%
Payments for the land of the Fuchang Phase II
project and as compensation for demolition for
Rongyao Real Estate
investing activities
-11,724,804.36
| Net cash generated from/used in | ||
74,032,770.60
-115.84%
The collection in the same period of last year of
the remainder of the Company’s sales of two taxi
service subsidiaries
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
financing activities
-299,012,550.53
| Net cash generated from/used in | ||
-178,767,181.68
67.26%
Increase in interest payments
equivalents
-770,475,335.62
Net increase in cash and cash
-329,890,250.14
133.56%
Payments for land and as compensation fordemolition, as well as increase in interestexpensesTaxes and surtaxes 120,082,220.00
7,299,438.66
1,545.09%
Higher gross profits of properties soldMaterial changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.Breakdown of core businesses:
Unit: RMB
Operatingrevenue
Cost of sales
Gross profitmargin
YoY change in
| Cost of sales | operating revenue |
(%)
YoY change incost of sales (%)
YoY change ingross profitmargin (%)By operating divisionPropertydevelopment
497,959,680.37
146,815,183.23
70.52%
-16.29%
-69.56%
51.60%
Propertymanagement
243,019,673.20
213,535,696.45
12.13%
13.89%
11.32%
2.03%
By product categoryPropertydevelopment
497,959,680.37
146,815,183.23
70.52%
-16.29%
-69.56%
51.60%
Propertymanagement
243,019,673.20
213,535,696.45
12.13%
13.89%
11.32%
2.03%
By operating segmentShenzhen City 441,458,491.74
137,864,659.40
68.77%
151.26%
4.40%
43.93%
Other 299,520,861.83
222,486,220.28
25.72%
-52.65%
-58.96%
11.42%
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMBAmount
As % of profitbefore taxation
Source/Reason Recurrent or notReturn oninvestment
780,826.57
0.61%
Return on investment in jointventures at the equity method
YesAsset impairments
-2,577,505.86
-2.02%
Changes in allowances for doubtfulaccounts
No
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Non-operatingincome
1,790,531.75
1.40%
Miscellaneous penalty income NoNon-operatingexpense
1,706,247.92
1.34%
Compensations for removal of
tenants
No
Other income 305,213.90
0.24%
10% over-deduction in the
calculation of the input VAT amount
by certain subsidiary as per the
taxation law
Recurrent for three years
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2019 30 June 2018
percentage (%)
Reason for material changeValue
As % oftotalassets
Change in
Value
As % oftotalassets
Monetarycapital
2,619,326,701.91
28.72%
3,389,234,357.72
58.23%
-29.51%
Faster expansion of the total asset size,as well as payments for the land of theFuchang Phase II project and ascompensation for demolition forRongyao Real EstateAccountsreceivable
78,370,539.85
0.86%
64,231,267.94
1.10%
-0.24%
No material change
Inventories 3,800,808,133.57
41.68%
1,181,762,531.67
20.30%
21.38%
Inclusion of the acquired RongyaoReal Estate into the consolidatedfinancial statements of the CurrentPeriodInvestmentproperty
388,859,756.35
4.26%
400,550,689.90
6.88%
-2.62%
Depreciation provisionsLong-termequityinvestments
40,780,109.81
0.45%
39,999,283.24
0.69%
-0.24%
No material changeFixed assets 33,037,636.13
0.36%
32,612,592.40
0.56%
-0.20%
No material changeLong-termborrowings
2,194,000,000.00
24.06%
1,000,000.00
0.02%
24.04%
Inclusion of the acquired Rongyao
Real Estate into the consolidated
financial statements of the Current
PeriodOther1,409,276,464.77
15.45%
24,428,411.19
0.42%
15.03%
Inclusion of the acquired Rongyao
Real Estate into the consolidated
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
receivables financial statements of the Current
PeriodAdvances fromcustomers
1,055,796,245.18
11.58%
265,338,215.34
4.56%
7.02%
Increase in pre-sale revenue of Golden
Collar’s Resort
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Item
Beginningamount
Gain/loss on
fair-valuechanges intheReportingPeriod
Gain/loss on
Cumulativefair-
value changes
value changescharged to equity
Impairmentallowance for the
| charged to equity | Reporting Period |
ReportingPeriod
Sold in theReportingPeriod
Endingamount
Purchased in the
Financialassets
Othernon-currentfinancialassets
3,621,381.11
1,054.64
3,622,435.75
Total of the
above
3,621,381.11
Total of the
1,054.64
3,622,435.75
Financialliabilities
0.00
0.00
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
The Company’s subsidiary Dongguan ITC Changsheng Real Estate Development Co., Ltd. is a tentatively qualified real estatedevelopment enterprise. During the application for the pre-sale permit for commodity houses, it is required to submit the commercialhousing quality guarantee letter after the bankruptcy and dissolution of the enterprise. After Dongguan ITC Real Estate DevelopmentCo., Ltd. paid the deposit of RMB 12,402,160.00 to the Bank of Communications Dongguan Dalang Branch for issuing 9 irrevocablecommercial housing rental quality guarantee letters, of which, one letter was valued at RMB 1,468,870.00 with the valid guaranteeperiod from 30 June 2015 to 31 December 2020, and the remaining 8 letters RMB 10,933,290.00 from 1 July 2015 to 31 December2020. As of 30 June 2019, the Company retrieved all original letters from the Land and Resources Bureau. As a real estate developer, the Company provided purchasers of commercial residential building with mortgage guarantee and paidcash deposits of loans according to the operation convention in real estate industry. As of 30 June 2019, the balance of cash depositsnot releasing guarantee was of RMB1,117,507.63, and the guarantee will be released when mortgage is paid off.The property management company charged via WeChat and Alipay, some payment at the final point of the end of the month havenot reached the Company’s account due to the delivery of settlement system. As of 30 June 2019, the balance was RMB567,679.81.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
V Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
2. Major Equity Investments Made in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
InvesteeMainbusines
sInvestment
Investment
| method | amount |
Shareholdingpercent
age
Capitalresourc
es
Partner
Investmentterm
Partner
Type of
products
Progre
Type ofss as of
thebalance sheetdate
ss as of
Estimated
income
Profits
incomeor losses
ofinvestm
ent in
theReportin
or lossesg Period
Involving inlawsuitor not
g Period
Disclosure date
(if any)
Disclosureindex
| (if any) | ||
| (if any) |
ShenzhenRongyao RealEstateDevelopmentCo.,Ltd.
Realestate
Acquisition
508,000,000.0
69.00%
Self-owned
ShenzhenXinhaiRongyao RealEstateDevelopmentCo.,Ltd.
Long-term
Developmentof realestate
Ownershiptransfe
r of
| equity |
1,159,890,00
0.00
-91,139,
605.71
No
March2019
Noticeonchange
(record)
Total
(record)
-- --
508,000,000.0
-- -- -- -- -- --
1,159,890,00
0.00
-91,139,
605.71
-- -- --
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
VarietyofCode ofsecurity
Name of
security
Name of
Initialinvestm
Account
ingmeasure
ment
Beginni
ng
| carrying |
value
Gain/Lo
ss onfairvalue
Accumu
latedfairvalue
Purchas
ed inReporti
ng
Sold inReporti
ngPeriod
Gain/loss inReporti
ng
Ending
value
| carrying |
Account
Source
of
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
security
ent cost
changesinReportingPeriod
method
changeschargedtoequity
Period
| Period | Period |
investment
Domestic/Foreign stock
funds
400016420016
GintianA,GintianB
3,565,8
56.06
Fairvaluemethod
3,621,3
81.11
0.00
1,054.6
0.00
0.00
0.00
3,622,4
35.75
Othernon-currentfinancial assets
Obtained inGintian’s debtrestructuringTotal
3,565,8
56.06
--3,621,3
81.11
0.00
1,054.6
0.00
0.00
0.00
3,622,4
35.75
-- --
Disclosure date ofannouncement on Board’s
announcement on Board’sconsent for securities
investment
consent for securitiesDisclosure date of
Disclosure date ofannouncement on
announcement onshareholders’ meeting’s
shareholders’ meeting’sconsent for securities
investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Relationsh
| Name | ip with the |
Principal
Companyactivity
Registeredcapital
Total assets Net assets
activity
Operatingrevenue
Operatingprofit
Net profit
ShenzhenHuangche
ng Real
ng RealEstate Co.,
Ltd.
Estate Co.,Subsidiary
Development andsales ofreal estate
Subsidiary
30,000,000.00
2,129,748,050.58
154,464,779.11
9,340,004.47
-10,613,47
3.27
-7,714,230.45
ShenzhenRongyaoRealEstateDevelopment Co.,Ltd.
Subsidiary
Development andsales ofreal estate
Subsidiary
10,000,000.00
2,652,187,570.62
-511,248,036.44
0.00
-91,139,60
5.71
-91,139,605.71
DongguanITCChangsheng RealEstateDevelopment Co.,Ltd.
Subsidiary
Development andsales ofreal estate
Subsidiary
20,000,000.00
438,808,477.66
288,091,973.07
76,699,228.08
33,741,685
.69
25,356,257.04
SZPRDYangzhouRealEstateDevelopm
ent Co.,
Ltd.
ent Co.,Subsidiary
Development andsales ofreal estate
Subsidiary
50,000,000.00
262,088,596.26
85,504,880.69
55,358,132.15
10,558,367
.44
7,915,115.58
ShenzhenInternation
al Trade
CenterPropertyManagem
al Tradeent Co.,
Ltd.
ent Co.,Subsidiary
Propertymanagement
20,000,000.00
| Subsidiary |
474,653,604.42
102,151,074.95
257,733,286.9
16,353,725
.65
13,506,724.45
Subsidiaries obtained or disposed in the Reporting Period:
√ Applicable □ Not applicable
Subsidiary
How subsidiary was obtained or disposed
in the Reporting Period
Effects on overall operations and operating
performance
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Shenzhen Rongyao Real EstateDevelopment Co., Ltd.
M & A
Income was RMB0, and net profitsattributable to the Company as the parent
was RMB-62,886,300.Shenzhen Shenzhen-Shanwei SpecialCooperation Zone International TradeCenter Property Development Co., Ltd.
Newly established
attributable to the Company as the parentIncome was RMB0, and net profits
Income was RMB0, and net profitsattributable to the Company as the parent
was RMB0.Information about major majority- and minority-owned subsidiaries:
The net profits of Shenzhen Rongyao Real Estate Development Co., Ltd. were RMB-9,1,139,600 due to payment of large amount ofinterest expenses.VIII Structured Bodies Controlled by the Company
√ Applicable □ Not applicable
For details, see IX 1. Equity interests in subsidiaries in Part X Financial Report herein.IX Performance Forecast for January-September 2019Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end ofthe next reporting period, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
1. Market-related Risks
In the first half of 2019, China’s economy was stabilized transitorily and its increase revealed the “L-Shape” trend, which may cause adecline in the effective demand and exert adverse influence on the Company’s continuing operation. At present, the real estate markethas reached its later period of adjustment and control. In despite of a downturn, under the guide of the policy “Houses are for living in,not for speculating on”, the adjustment made to the real estate market is still strictly controlled. From the perspective of demand, thereal estate sales still declined in the first half of 2019; from the perspective of supply, the real estate financing from various channelswas relatively difficult and the sales payment returned continuously dropped. It is estimated that the pressure on the fund end wouldcontinue to increase.The Company has made great effort to probe deeply into various opportunities and challenges posed by the macro-economic trend andpolicies, positively realize a strategic breakthrough and put forward the development vision of “China’s First Smart Technology ParkEcological Chain Comprehensive Operator Toping the World” in order to follow the significant trend of the real estate market evolvingfrom the age of increment to the age of stock and firmly hang on to the core link of stock assets value management and industrialecological operation service. In addition, while strengthening the traditional mainstream business, the Company will also expand itsproperty business and accelerate the layout of house renting business so as to gain various opportunities for its future sustainabledevelopment.
2. Land Reserve Risk
As a matter of fact, the Company still lacks enough land reserves and development power at later stages. In recent years, the supplyof residential land on Shenzhen Market has continuously declined. As the price of each single plot increases year after year, variouslarge-scale real estate enterprises have enlarged their market shares and accelerated their M&A pace. While the real estate industry iscentralizing, the degree of centralization of the land reserve scale has also been enhanced. As the external environment and theindustrys trend become much more complicated and severe, the increment market scale will further shrink and the market
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
competition will become increasingly fierce.Impacted by various factors including the refined regulatory policies, the fiercer industrial competition and insufficient resources, theCompany will deepen its internal reform, reinforce the market management and make special effort to improve the businessdevelopment mode and internal management measures. Firstly, emphasis will be placed on developing various projects and seizingappropriate opportunities to carry out the industry-city integration project respectively in Zhaoqing and Yangzhou for the purpose ofenhancing the construction and operation of the industrial park, the construction of urban complex and unique towns as well as themarket share of the cluster of buildings, and making new breakthrough in various land reserves. Secondly, importance will also beattached to develop the market of long-term rental apartment, realize the comprehensive operation of 5 long-term rental apartmentstores (including ONE39 Building, Longhua Complex, Xinhu Village, Fumin Complex, Chuanbujie Phase I), introduce the brandstrategy and boost the business scale. Thirdly, external cooperation in various forms will also be developed in line withcorresponding urban renewal policies and the citys development planning. Except for the land bid, auction and listing, diversifiedland purchase policies obtained by means of cooperation, acquisition and strategic operation will be applied to obtain various lands.
3. Financing Risk
In the first half of 2019, a new round of real estate financing was tightened and various measures were taken to reorganize the realestate trust financing. Currently, various means of financing have been under strict supervision, including the bank loan, trust, bondand private equity etc. Various real estate financing policies have become unprecedentedly stringent. In the process of activelyincreasing land reserves and accelerating the business development, the Company needs to invest a large amount of funds for landacquisition and project development. In addition to its own funds, the Company’s project development funds need to be externallyfinanced through bank loans and issuing securities. If the country’s macroeconomic situation, credit policy and capital marketundergo ultra-expected major changes or adjustments, it may lead to restrictions on the Company’s financing or the Company’sfinancing costs, which will adversely affect the Company’s production and operation.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part V Significant EventsI Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Meeting Type
Investor
Convened date Disclosure date
Index to disclosedinformation
The 1st
participation ratioExtraordinary
General Meeting of2019
Extraordinarygeneral meeting
Extraordinary
63.92% 26 February 2019
27 February 2019
Notice aboutConvening the 1
st
ExtraordinaryGeneral Meeting of2019 (No. 2019-3)
disclosed onwww.cninfo.com.cn
The 2018 AnnualGeneral Meeting
Annual GeneralMeeting
63.99% 19 April 2019 20 April 2019
Notice aboutConvening the 2018
Annual General
Meeting (No.2019-14) disclosed
onwww.cninfo.com.cn
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed VotingRights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties andAcquirer, as well as the Company and Other Commitment Makers, Fulfilled in the ReportingPeriod or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
IV Engagement and Disengagement of CPAs FirmHas the Interim financial report been audited?
□Yes √ No
This Interim Report is unaudited.V Explanations Given by Board of Directors and Supervisory Committee Regarding“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issuedfor Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal MattersSignificant lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.X Credit Conditions of the Company as well as its Controlling Shareholder and ActualController
□ Applicable √ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees
√ Applicable □ Not applicable
No such cases in the Reporting Period.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
XII Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.
√ Yes □ No
Receivable from related parties
Related party
with theCompany
Relationship
Reason
Capitaloccupationfornon-operating purposes(yes/no)
Beginningbalance(RMB’0,000)
Amount
newly added
in currentperiod(RMB’0,000)
Amountreceived incurrentperiod(RMB’0,000)
Interest rate
newly added
Currentinterest(RMB’0,000)
Endingbalance(RMB’0,000)
Anhui Nanpeng
Anhui NanpengPapermaking Co.,
Ltd.
Papermaking Co.,30% equities
30% equitiesheld by the
Company
Businesscirculatingfunds
No 813
| held by the | |||||
Shenzhen Wufang
Shenzhen WufangPottery &
Porcelain
Pottery &Industrial Co.,
Ltd.
Industrial Co.,26% equities
26% equitiesheld by the
Company
Businesscirculatingfunds
No 175
| held by the | |||||
Shenzhen Xinhai
Holdings Co., Ltd.
Indirectlyhold 30%equities ofRongyaoReal Estate
Holdings Co., Ltd.
Businesscirculatingfunds beforeacquisition
No 0
105,789.99
105,789.99
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Shenzhen XinhaiRongyao RealEstateDevelopment Co.,Ltd.
Directlyhold 30%equities ofRongyaoReal Estate
Businesscirculatingfunds beforeacquisition
No 0
33,047.29
33,047.29
Influence on the Company’s operating results and
financial condition
All were
| Influence on the Company’s operating results and | within the risks control of the Company and not influenced the |
operating results and the financial conditions.Liabilities payable to related partiesRelated party
Relation withthe Company
Formationreason
Beginning balance(RMB’0,000)
Amount newly
added incurrent period(RMB’0,000)
Amount newly
Amountreturned incurrent period(RMB’0,000)
Interestrate
Currentinterest(RMB’0,000)
Endingbalance(RMB’0,000)
Shenzhen JifaWarehouse Co.,
Ltd.
Joint venture
| Warehouse Co., |
Intercourse funds
2,630
2,630
ShenzhenTian’anInternationalBuildingPropertyManagementCo., Ltd.
Joint venture
Intercourse funds
Influence on the Company’
s operating results and
financial condition
| s operating results and | All were within the risks control of the Company and not influenced the |
operating results and the financial conditions.
5. Other Major Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIII Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
XIV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major guarantees
√ Applicable □ Not applicable
(1) Guarantees
Unit: RMB'0,000Guarantees provided by the Company for external parties (exclusive of those for subsidiaries)
Obligor
Disclosuredate of theguaranteelineannouncement
Line of
Actualoccurrence date
guarantee
(Agreementsigning date)
Actualguaranteeamount
Type ofguarantee
Term ofguarantee
Having
not
Guarantee for arelatedparty ornotGuarantees provided by the Company for its subsidiaries
Obligor
Disclosuredate of theguaranteelineannouncement
Line of
expired orguarantee
Actualoccurrence date
guarantee
(Agreementsigning date)
Actualguaranteeamount
Type ofguarantee
Term ofguarantee
Having
not
Guarantee for arelatedparty ornotShenzhen
expired orHuangcheng Real
Estate Co., Ltd.
29 March2018
75,000
| Huangcheng Real | |
20 July 2018 100
Generalguarantee
20 July 2018to 20 June2021
No Yes
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Real EstateDevelopment Co.,Ltd.
Shenzhen Rongyao11 February
2019
219,300
| 11 February | ||
12 March 2019
219,300
Pledge
2019.3.12-20
23.2.12
No Yes
Reporting Period (B1)
219,300
| Total approved line for such guarantees in the | ||
Period (B2)
219,300
| Total actual amount of such guarantees in the Reporting | ||
Total approved line for such guarantees at t
of the Reporting Period (B3)
294,300
| he end | ||
Reporting Period (B4)
219,400
| Total actual balance of such guarantees at the end of the | ||
Guarantees provided between subsidiaries
Obligor
Disclosuredate of theguaranteelineannouncement
Line of
Actualoccurrence date
guarantee
(Agreementsigning date)
Actualguaranteeamount
Type ofguarantee
Term ofguarantee
Having
not
Guarantee for arelatedparty or
notTotal guarantee amount (total of the three kinds of guarantees above)Total guarantee l
expired orine approved in the Reporting
Period (A1+B1+C1)
219,300
| ine approved in the Reporting | ||
(A2+B2+C2)
219,300
| Total actual guarantee amount in the Reporting Period | ||
Reporting Period (A3+B3+C3)
294,300
| Total approved guarantee line at the end of the | ||
Total actual guarantee balance at the end
Reporting Period (A4+B4+C4)
219,400
| of the | ||
Total actual guarantee amount (A4+B4+C4) as % of theCompany’s net assets
67.24%
Of which:
Balance of debt guarantees provided directly or indirectly for obligors with an over70% debt/asset ratio (E)
219,400
Amount by which the total guarantee amount exceeds 50% of the Company’s netassets (F)
48,270
Total of the three amounts above (D+E+F) 219,400
Compound guarantees:
Not applicable
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Major Contracts
□ Applicable √ Not applicable
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
No such cases in the Reporting Period.
XV Corporate Social Responsibility (CSR)
1. Significant Environment Protection
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmentalprotection authorities of ChinaNoThe Company was not the heavily polluting business identified by the environmental protection authorities of China.
2. Measures Taken for Targeted Poverty Alleviation
The Company did not take any targeted measures to help people lift themselves out of poverty during the Reporting Period, also nosubsequent plans.XVI Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-)
After
Shares
Percentage
(%)
Newissues
Percentage
Sharesasdividendconvertedfromprofit
Shares asdividendconverted
from capital
reserves
from capital
Other
Subtotal
Shares
Percentage (%)
I. Restricted shares 352,511,223
59.15%
352,511,223
59.15%
1. Shares held by State 0
0.00%
0.00%
2. Shares held by
state-owned legal person
350,579,943
58.82%
350,579,943
58.82%
3. Shares held by other
domestic investors
1,931,280
0.33%
1,931,280
0.33%
held by domestic
Among which: Shareslegal
person
1,894,980
| legal | |
0.32%
1,894,980
0.32%
Shar
es heldby domestic natural
person
36,300
| by domestic natural | |
0.01%
36,300
0.01%
4. Shares held by foreign
investors
0.00%
0.00%
held by foreign
Among which: Shareslegal
person
| legal | |
0.00%
0.00%
Shar
by foreign natural person
es held
0.00%
0.00%
II. Unrestricted shares 243,467,869
40.85%
243,467,869
40.85%
1. RMB common shares
175,862,626
29.51%
175,862,626
29.51%
2.
foreign shares
67,605,243
| Domestically listed | ||
11.34%
67,605,243
11.34%
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
3. Overseas listed foreign
shares
0.00%
0.00%
4. Others 0
0.00%
0.00%
III. Total shares 595,979,092
100.00%
595,979,092
100.00%
Reasons for share changes:
□ Applicable √ Not applicable
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinaryshareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
On 17 July 2019, the Company published the No.: 2019-23 Indicative Announcement on Releasing Restriction on Restricted Shares.Procedure of restriction release for restricted 350,579,943 shares held by the Company’s controlling shareholder ShenzhenInvestment Holdings Corporation has been completed and the date of trading resumption thereof is 19 July 2019.
2. Changes in Restricted Shares
On 17 July 2019, the Company published the No.: 2019-23 Indicative Announcement on Releasing Restriction on Restricted Shares.Procedure of restriction release for restricted 350,579,943 shares held by the Company’s controlling shareholder ShenzhenInvestment Holdings Corporation has been completed and the date of trading resumption thereof is 19 July 2019.II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinaryshareholders at the period-end
40,617
Total number of preference shareholders with resumed votingrights at the period-end (if any)
5% or greater ordinary shareholders or the top 10 ordinary shareholdersName ofshareholder
Nature ofshareholder
Shareholding
Total sharesheld at the
Increase/decr
ease during
Number ofrestricted shares
Number ofnon-restricted
Pledged orfrozen shares
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
(%)
period-end the Reporting
Period
held shares held
| percentage | ||
| Status |
NumberShenzhenInvestmentHoldingsCorporation
State-ownedlegal person
63.82%
380,378,897
350,579,943
29,798,954
E Fund-ICBC-EFund Reserve No.2 WealthManagement Plan
Other 0.48%
2,878,525
2,878,525
2,878,525
EFund-ICBC-Foreign TradeTrust-ForeignTradeTrust ·StableWealth FOFSingle Fund Trust
Other 0.36%
2,163,900
2,163,900
2,163,900
Hong KongSecuritiesClearingCompany Ltd.
Foreign
0.35%
legal person
2,114,955
1,864,584
2,114,955
ShenzhenDuty-FreeCommodity
Ltd.
Domesticnon-state-owned legalperson
0.29%
Enterprises Co.,
1,730,300
1,730,300
Yang Yaochu
Domesticnaturalperson
0.24%
1,410,620
1,410,620
Li Jing
Domesticnaturalperson
0.20%
1,176,740
1,176,740
Su Zhifen
Domesticnaturalperson
0.19%
1,150,000
1,150,000
Mai Furong
Domesticnaturalperson
0.19%
1,130,500
1,130,500
WuhanXingkaiyuan
Domesticnon-state-o
0.17%
1,000,000
1,000,000
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Electric PowerEngineering Co.,Ltd
wned legalpersonStrategi
becoming a top-
c investor or general legal person10 ordinary shareholder due to
rights issue (if any)
N/A
Related or acting-in-
10 ordinary shareholder due toconcert parties among the
shareholders above
The largest shareholder Shenzhen Investment Holding Corporation is
concert parties among thethe actual
c
the actualontrolling shareholder of the Company. And the Company does not know
whether there are related parties or acting-in-concert parties among the other 9
ontrolling shareholder of the Company. And the Company does not know
shareholders.Top 10 unrestricted shareholdersName of shareholder Unrestricted shares held at the period-end
Shares by typeType Shares
Shenzhen Investment Holdings
Corporation
29,798,954
| Shenzhen Investment Holdings | ||
RMB commonshare
29,798,954
E Fund-ICBC-E Fund Reserve No.2 Wealth Management Plan
2,878,525
RMB commonshare
2,878,525
E Fund-ICBC-Foreign TradeTrust-Foreign Trade Trust ·StableWealth FOF Single Fund Trust
2,163,900
RMB commonshare
2,163,900
Hong Kong Securities ClearingCompany Ltd.
2,114,955
RMB commonshare
2,114,955
Yang Yaochu 1,410,620
Domesticallylisted foreignshare
1,410,620
Li Jing 1,176,740
Domesticallylisted foreignshare
1,176,740
Su Zhifen 1,150,000
RMB commonshare
1,150,000
Mai Furong 1,130,500
Domesticallylisted foreignshare
1,130,500
Wuhan Xingkaiyuan Electric PowerEngineering Co., Ltd
1,000,000
RMB commonshare
1,000,000
Shantou Property Hexin Co., Ltd.
980,400
RMB commonshare
980,400
Related or acting-in-
concert parties among top
concert parties among top10 unrestricted public shareholders, as well as
10 unrestricted public shareholders, as well asbetween top 10 unrestricted public shareholders
The largest shareholder Shenzhen Investment Holding Corporation is
between top 10 unrestricted public shareholdersthe actual
controllin
the actualg shareholder of the Company. And the Company does not know
whether there are related parties or acting-in-concert parties among the other 9
g shareholder of the Company. And the Company does not know
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
and top 10 shareholders shareholders.
securities margin trading (if any)
N/AIndicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.IV. Change of the Controlling Shareholder or the Actual ControllerChange of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part VIII Directors, Supervisors, Senior Management and StaffI Change in Shareholdings of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There were no changes in shareholdings of directors, supervisors, and senior management in the Reporting Period. For details, seeAnnual Report of 2018.
II Changes in Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There were no changes in directors, supervisors, and senior management in the Reporting Period. For details, see Annual Report of2018.
ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2019
Part IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of thisReport or were due but could not be redeemed in full?No
Part X Financial StatementsI. Auditor’s ReportWhether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.II. Financial StatementsThe unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties & Resources Development (Group) Ltd.
30 June 2019
Unit: RMBItem 30 June 2019 31 December 2018Current assets:
Monetary capital 2,619,326,701.91
3,389,234,357.72
Settlement reserve 0.00
0.00
Interbank loans granted
Trading financial assets 0.00
0.00
profit or loss
0.00
| Financial assets at fair value through | ||
0.00
Derivative financial assets
Notes receivable
Accounts receivable 78,370,539.85
64,231,267.94
Financing backed by accountsreceivable
Prepayments 132,519,315.37
35,913,164.32
Premiums receivable
Reinsurance receivables
reserve
| Receivable reinsurance contract | ||||
Other receivables 1,409,276,464.77
24,428,411.19
Including: Interest receivable 4,348,511.45
8,293,317.33
Dividends receivable 0.00
0.00
Financial assets
resale agreements
| purchased under | ||||
Inventories 3,800,808,133.57
1,181,762,531.67
Contract assets
Assets classified as held for sale 0.00
0.00
Current portion of non-current assets
Other current assets 24,231,402.60
16,694,408.12
Total current assets 8,064,532,558.07
4,712,264,140.96
Non-current assets:
Loans and advances to customers
0.00
Investments in debt obligations
Available-for-sale financial assets 0.00
3,621,381.11
0.00
| Investments in other debt obligations | |
0.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 40,780,109.81
39,999,283.24
Investments in other equityinstruments
Other non-current financial assets 25,622,435.75
0.00
Investment property 388,859,756.35
400,550,689.90
Fixed assets 33,037,636.13
32,612,592.40
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense
Goodwill
Long-term prepaid expense 2,348,985.91
2,398,576.29
Deferred income tax assets 542,341,646.00
519,783,531.64
Other non-current assets 22,309,093.40
108,971,942.00
Total non-current assets 1,055,299,663.35
1,107,937,996.58
Total assets 9,119,832,221.42
5,820,202,137.54
Current liabilities:
Short-term borrowings
Borrowings from central bank 0.00
0.00
Interbank loans obtained 0.00
0.00
Trading financial liabilities
through profit or loss
Financial liabilities at fair value
Derivative financial liabilities
Notes payable
Accounts payable 387,411,164.10
398,429,855.96
Advances from customers 1,055,796,245.18
265,338,215.34
Financial assets sold under repurchaseagreements
Customer deposits and interbankdeposits
securities
0.00
| Payables for acting trading of | ||
0.00
Payables for underwriting
of
securities
0.00
| of | ||
0.00
Payroll payable 72,444,559.04
96,069,521.54
Taxes payable 1,374,184,461.60
1,552,720,630.59
Other payables 560,320,989.94
112,502,146.69
Including: Interest payable 6,702,350.69
1,669.10
Dividends payable 29,642.40
29,642.40
Handling charges and commissionspayable
Reinsurance payables
Contract liabilities
assets classified as held for sale
0.00
| Liabilities directly associated with | ||
0.00
Current portion of non-
current
liabilities
current
Other current liabilities
Total current liabilities 3,450,157,419.86
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 4,281.56
5,275.60
Other non-current liabilities 53,068,073.26
52,937,180.81
Total non-current liabilities 2,247,072,354.82
53,942,456.41
Total liabilities 5,697,229,774.68
2,479,002,826.53
Owners’ equity:
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 0.00
0.00
Other comprehensive income -1,583,357.44
-1,786,181.69
Specific reserve
Surplus reserves 299,569,569.96
299,569,569.96
General reserve
Retained earnings 2,250,204,382.04
2,325,248,711.48
the Company as the parent
3,263,107,819.45
Total equity attributable to owners of
3,337,949,324.64
Non-controlling interests 159,494,627.29
3,249,986.37
Total owners’ equity 3,422,602,446.74
3,341,199,311.01
Total liabilities and owners’ equity 9,119,832,221.42
5,820,202,137.54
Legal representative: Liu Shengxiang
Head of the financial department: Liu Qiang
2. Balance Sheet of the Company as the Parent
Unit: RMBItem 30 June 2019 31 December 2018Current assets:
Monetary capital 1,790,312,809.40
2,520,788,994.16
Trading financial assets 0.00
0.00
profit or loss
| Financial assets at fair value through | ||||
Derivative financial assets 0.00
0.00
Notes receivable 0.00
0.00
Accounts receivable 2,355,164.19
1,853,494.72
receivable
| Financings backed by accounts | ||||
Prepayments 546,114.73
829,683.68
Other receivables 1,102,116,535.80
1,306,715,826.93
Including: Interest receivable 6,838,789.22
8,229,503.58
Dividends receivable 0.00
0.00
Inventories 584,874,507.04
105,840,115.24
Contract assets
Assets classified as held for sale
Current portion of non-current assets
0.00
0.00
Other current assets 0.00
0.00
Total current assets 3,480,205,131.16
3,936,028,114.73
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 0.00
3,851,881.11
| Investments in other debt obligations | ||
Held-to-maturity investments 0.00
0.00
Long-term receivables 0.00
0.00
Long-term equity investments 748,282,782.74
239,501,956.17
Investments in other equityinstruments
Other non-current financial assets 3,852,935.75
0.00
Investment property 308,320,743.77
317,313,917.65
Fixed assets 8,770,220.23
9,121,637.65
Construction in progress 0.00
0.00
Productive living assets 0.00
0.00
Oil and gas assets 0.00
0.00
Right-of-use assets
Intangible assets 0.00
0.00
R&D expense 0.00
0.00
Goodwill 0.00
0.00
Long-term prepaid expense 691,904.43
778,392.57
Deferred income tax assets 333,743,414.50
315,888,967.26
Other non-current assets 866,230,999.40
104,132,920.00
Total non-current assets 2,269,893,000.82
990,589,672.41
Total assets 5,750,098,131.98
4,926,617,787.14
Current liabilities:
Short-term borrowings 0.00
0.00
Trading financial liabilities 0.00
0.00
through profit or loss
Financial liabilities at fair value
Derivative financial liabilities
Notes payable 0.00
0.00
Accounts payable 84,320,442.20
124,501,464.28
Advances from customers 11,041,014.00
75,895,087.75
Contract liabilities
Payroll payable 22,811,800.67
31,224,455.28
Taxes payable 1,261,106,183.56
1,402,388,742.76
Other payables 1,349,101,096.85
224,875,980.31
Including: Interest payable 0.00
0.00
Dividends payable 29,642.40
29,642.40
assets classified as held for sale
| Liabilities directly associated with | ||||
Current portion of non-
liabilities
| current | ||||
Other current liabilities
Total current liabilities 2,728,380,537.28
1,858,885,730.38
Non-current liabilities:
Long-term borrowings 0.00
0.00
Bonds payable 0.00
0.00
Including: Preferred shares 0.00
0.00
Perpetual bonds 0.00
0.00
Long-term payables
Long-term payroll payable 0.00
0.00
Provisions
Deferred income 0.00
0.00
Deferred income tax liabilities 0.00
0.00
Other non-current liabilities 0.00
0.00
Total non-current liabilities 0.00
0.00
Total liabilities 0.00
0.00
Owners’ equity: 2,728,380,537.28
1,858,885,730.38
Share capital Other equity instruments 595,979,092.00
595,979,092.00
Including: Preferred shares
Perpetual bonds
Capital reserves
Less: Treasury stock 92,326,467.62
92,326,467.62
Other comprehensive income 0.00
0.00
Specific reserve 0.00
0.00
Surplus reserves
General reserve 298,912,759.52
298,912,759.52
Retained earnings 2,034,499,275.56
2,080,513,737.62
Total owners’ equity 3,021,717,594.70
3,067,732,056.76
Total liabilities and owners’ equity 5,750,098,131.98
4,926,617,787.14
3. Consolidated Income Statement
Unit: RMBItem H1 2019 H1 2018
1. Revenue 755,390,079.96
825,013,984.97
Including: Operating revenue 755,390,079.96
825,013,984.97
Interest income
Premium income
commission income
| Handling charge and | ||||
2. Costs and expenses 626,487,025.20
721,482,528.52
Including: Cost of sales 381,969,088.48
689,187,341.10
Interest expense
commission expense
| Handling charge and | ||||
Surrenders
Net claims paid
insurance contract reserve
| Net amount provided as | ||||
dividends
Expenditure on policy
expense
| Reinsurance premium | ||||
Taxes and surcharges 120,082,220.00
7,299,438.66
Selling expense 18,292,724.72
9,296,529.76
Administrative expense 55,957,281.51
43,316,443.65
R&D expense
Finance costs 50,185,710.49
-27,617,224.65
expense
73,970,116.57
Including: Interest
0.00
Interestincome
25,830,187.06
28,154,154.04
Add: Other income 305,213.90
0.00
Return on investment (“-” for loss)
780,826.57
49,247.20
Including: Share of profit or loss
of joint ventures and associates
780,826.57
| Including: Share of profit or loss | ||
49,247.20
Income from the
Income from thederecognition of financial assets at
amortized cost (“-” for loss)
| derecognition of financial assets at | ||
Foreign exchange gain (“-
loss)
| ” for | ||||
Net gain on exposure hedges (“-
for loss)
| ” | ||||
Gain on changes in fair value (“-”for loss)
0.00
0.00
Credit impairment loss (“-
loss)
| ” for | ||||
Asset impairment loss (“-” for loss)
-2,577,505.86
4,757,350.92
Asset disposal income (“-
” for
loss)
0.00
| ” for | ||
0.00
3. Operating profit (“-” for loss) 127,411,589.37
108,338,054.57
Add: Non-operating income 1,790,531.75
1,533,491.43
Less: Non-operating expense 1,706,247.92
311,674.85
4. Profit before tax (“-” for loss) 127,495,873.20
109,559,871.15
Less: Income tax expense 52,191,460.83
26,587,343.56
5. Net profit (“-” for net loss) 75,304,412.37
82,972,527.59
5.1 By operating continuity
operations (“-” for net loss)
75,304,412.37
| 5.1.1 Net profit from continuing | ||
82,972,527.59
5.1.2 Net profit from discontinued
operations (“-” for net loss)
0.00
| 5.1.2 Net profit from discontinued | ||
0.00
5.2 By ownership
5.2.1 Net profit attributable to
owners of the Company as the parent
103,749,398.16
| 5.2.1 Net profit attributable to | ||
82,972,527.59
5.2.1 Net profit attributable to
non-controlling interests
-28,444,985.79
| 5.2.1 Net profit attributable to | ||
0.00
6. Other comprehensive income, net of
tax
202,824.25
| 6. Other comprehensive income, net of | ||
415,360.08
Attributable to owners of the Company
as the parent
202,824.25
| Attributable to owners of the Company | ||
415,360.08
6.1 Items that will not be
reclassified to profit or loss
0.00
6.1 Items that will not be
0.00
6.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
0.00
| remeasurements on defined benefit | |
0.00
6.1.2 Other comprehensive
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
0.00
| income that will not be reclassified to | |
0.00
6.1.3 Changes in the fair value of
investments in other equity instruments
6.1.3 Changes in the fair value of
0.00
0.00
the company’s credit risks
0.00
6.1.4 Changes in the fair value of
0.00
6.1.5 Other 0.00
0.00
profit or loss
202,824.25
| 6.2 Items that will be reclassified to | ||
415,360.08
6.2.1 Other comprehensive
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
0.00
| income that will be reclassified to profit | |
0.00
6.2.2 Cha
nges in the fair value of
investments in other debt obligations
0.00
| nges in the fair value of | ||
0.00
6.2.3 Gain/Loss on changes in the
fair value of available-for-
6.2.3 Gain/Loss on changes in the
sale financial
assets
0.00
| sale financial | |
0.00
6.2.4 Other comprehensive
6.2.4 Other comprehensive
income arising from the reclassification
of financial assets
0.00
| income arising from the reclassification | |
0.00
6.2.5 Gain/Loss arising from the
reclassification of held-to-
6.2.5 Gain/Loss arising from the
maturity
investments to available-for-
maturitysale financial
assets
0.00
sale financial
0.00
6.2.6 Allowance for credit
impairments in investments in other debt
obligations
0.00
| impairments in investments in other debt | |
0.00
6.2.7 Reserve for
cash flow
hedges
0.00
cash flow
0.00
6.2.8
Differences arising from thetranslation of foreign
currency-
translation of foreigndenominated financial
statements
202,824.25
denominated financial
415,360.08
6.2.9 Other 0.00
0.00
Attributable to non-
interests
0.00
| controlling | ||
0.00
7. Total comprehensive income 75,507,236.62
83,387,887.67
as the parent
103,952,222.41
| Attributable to owners of the Company | ||
83,387,887.67
Attributable to non-
controlling
interests
-28,444,985.79
| controlling | ||
0.00
8. Earnings per share
8.1 Basic earnings per share 0.1741
0.1392
8.2 Diluted earnings per share 0.1741
0.1392
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 RMB0.00.
Legal representative: Liu Shengxiang Head of financial affairs: Cai Lil
Head of the financial department: Liu Qiang
4. Income Statement of the Company as the Parent
Unit: RMBItem H1 2019 H1 2018
1. Operating revenue 341,910,051.35
i
33,455,791.84
Less: Cost of sales 64,705,194.33
11,792,652.03
Taxes and surcharges 106,581,164.55
2,037,017.20
Selling expense 6,932,430.59
912,834.22
Administrative expense 26,365,324.28
15,024,782.80
R&D expense
Finance costs -20,211,072.23
-26,492,474.92
Including: Interest expense 0.00
0.00
Interest income -20,445,143.13
-26,226,534.52
Add: Other income 0.00
0.00
Return on investment (“-” forloss)
16,880,145.24
49,247.20
loss of joint ventures and associates
780,826.57
| Including: Share of profit or | ||
49,247.20
Income from t
he
hederecognition of financial assets at
amortized cost (“-” for loss)
| derecognition of financial assets at | ||
Net gain on exposure hedges (“-”for loss)
Gain on changes in fair value (“-”for loss)
0.00
0.00
Credit impairment loss (“-
loss)
| ” for | ||||
Asset impairment loss (“-
loss)
-475,313.54
| ” for | ||
-2,246,956.93
Asset disposal income (“-
” for
loss)
0.00
| ” for | ||
0.00
2. Operating profit (“-” for loss) 174,892,468.61
32,477,184.64
Add: Non-operating income 320,000.00
117,516.67
Less: Non-operating expense 1,102,131.09
9,233.27
3. Profit before tax (“-” for loss) 174,110,337.52
32,585,468.04
Less: Income tax expense 41,331,071.98
10,087,341.39
4. Net profit (“-” for net loss) 132,779,265.54
22,498,126.65
operations (“-” for net loss)
132,779,265.54
| 4.1 Net profit from continuing | ||
22,498,126.65
4.2 Net profit from discontinued
operations (“-” for net loss)
| 4.2 Net profit from discontinued | ||||
tax
0.00
| 5. Other comprehensive income, net of | ||
0.00
5.1 Items that will not be reclassified
to profit or loss
| 5.1 Items that will not be reclassified | ||||
5.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
| remeasurements on defined benefit | ||
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
| that will not be reclassified to profit or | ||
investments in other equity instruments
5.1.3 Changes in the fair value of
the company’s credit risks
| 5.1.4 Changes in the fair value of | ||||
5.1.5 Other
profit or loss
| 5.2 Items that will be reclassified to | ||||
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
| that will be reclassified to profit or loss | ||
investments in other debt obligations
| 5.2.2 Changes in the fair value of | ||||
fair value of available-for-
5.2.3 Gain/Loss on changes in the
sale financial
assets
| sale financial | ||
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
| arising from the reclassification of | ||
reclassification of held-to-mat
5.2.5 Gain/Loss arising from the
urity
investments to available-for-
uritysale
financial assets
sale
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
| impairments in investments in other | ||
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denomina
translation of foreignted financial
statements
ted financial
5.2.9 Other
6. Total comprehensive income 132,779,265.54
22,498,126.65
7. Earnings per share 7.1 Basic earnings per share 0.2228
0.0377
7.2 Diluted earnings per share 0.2228
0.0377
5. Consolidated Cash Flow Statement
Unit: RMBItem H1 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services
1,590,308,650.82
| Proceeds from sale of commodities | ||
568,985,528.13
Net increase in customer deposits and
interbank deposits
Net increase in customer deposits and
Net increase in
central bank
| borrowings from | ||||
financial institutions
| Net increase in loans from other | ||||
insurance contracts
| Premiums received on original | ||||
Net proceeds from reinsurance
investments of policy holders
Net increase in deposits and
Int
commissions received
| erest, handling charges and | ||||
obtained
| Net increase in interbank loans | ||||
repurchase transactions
Net increase in proceeds from
Net proceeds for acting trading ofsecurities
Tax rebates
Cash generated from ot
activities
39,778,392.63
| her operating | ||
39,349,722.92
Subtotal of cash generated from
operating activities
1,630,087,043.45
Subtotal of cash generated from
608,335,251.05
services
1,398,110,298.42
| Payments for commodities and | ||
242,009,085.68
Net increase in loans and advances to
customers
| Net increase in loans and advances to | ||||
bank and in interbank loans granted
Net increase in deposits in central
insurance contracts
| Payments for claims on original | ||||
Net increase in financial assets heldfor trading
Net increase in interbank loansgranted
Intere
commissions paid
| st, handling charges and | ||||
Policy dividends paid
Cash paid to and for employees 204,073,732.46
171,547,891.95
Taxes paid 443,480,242.15
386,783,731.37
activities
44,375,007.40
| Cash used in other operating | ||
33,586,527.86
Su
btotal of cash used in operating
activities
2,090,039,280.43
| btotal of cash used in operating | ||
833,927,236.86
Net cash generated from/used in
operating activities
-459,952,236.98
| Net cash generated from/used in | ||
-225,591,985.81
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal offixed assets, intangible assets and other
long-lived assets
2,655.00
| fixed assets, intangible assets and other | |
42,583.50
Net proceeds from the disposal of
subsidiaries and other business units
| Net proceeds from the disposal of | ||
76,797,409.69
Cash generated from other investing
activities
investing activities
2,655.00
| Subtotal of cash generated from | ||
76,839,993.19
Payments for the acquisition of fixed
Payments for the acquisition of fixedassets, intangible assets and other
long-lived assets
10,172,187.11
| assets, intangible assets and other | |
2,807,222.59
Payments for investments
Net increase in pledged loans granted
subsidiaries and other business units
1,555,272.25
| Net payments for the acquisition of | ||||
activities
Cash used in other investing
activities
11,727,459.36
| Subtotal of cash used in investing | ||
2,807,222.59
Net cash genera
ted from/used in
investing activities
-11,724,804.36
| ted from/used in | ||
74,032,770.60
3. Cash flows from financing activities:
Capital contributions received 1,750,000.00
non-
Including: Capital contributions bycontrolling interests to subsidiaries
1,750,000.00
controlling interests to subsidiaries
Borrowings obtained
Net proceeds from issuance of bonds
activities
| Cash generated from other financing | ||||
financing activities
1,750,000.00
Subtotal of cash generated from
Repayments of borrowings
Payments for interest and dividends
300,762,550.53
178,767,181.68
Including: Dividends paid by
subsidiaries to non-
Including: Dividends paid bycontrolling interests
controlling interests
activities
| Cash used in other financing | ||||
activities
300,762,550.53
| Subtotal of cash used in financing | ||
178,767,181.68
Net cash generated from/used in
financing activities
-299,012,550.53
Net cash generated from/used in
-178,767,181.68
214,256.25
| 4. Effect of foreign exchange rate | |
436,146.75
changes on cash and cash equivalents
equivalents
-770,475,335.62
| 5. Net increase in cash and cash | ||
-329,890,250.14
Add: Cash and cash equivalen
ts,
beginning of the period
3,375,714,690.09
| ts, | ||
2,464,626,655.21
6. Cash and cash equivalents, end of the
period
2,605,239,354.47
6. Cash and cash equivalents, end of the
2,134,736,405.07
6. Cash Flow Statement of the Company as the Parent
Unit: RMBItem H1 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services
293,652,100.60
| Proceeds from sale of commodities | ||
34,091,919.99
Tax rebates 0.00
0.00
activities
944,825,021.06
| Cash generated from other operating | ||
138,780,669.81
Subtotal of cash generated from
operating activities
1,238,477,121.66
| Subtotal of cash generated from | ||
172,872,589.80
Payments for commodities and
services
567,591,895.82
| Payments for commodities and | ||
5,004,956.42
Cash paid to and for employees 24,332,201.12
11,594,999.25
Taxes paid 326,980,098.56
70,155,089.07
activities
25,602,398.05
| Cash used in other operating | ||
147,334,270.95
Subtotal of cash used in operating
activities
944,506,593.55
| Subtotal of cash used in operating | ||
234,089,315.69
Net cash generated from/used in
operating activities
293,970,528.11
| Net cash generated from/used in | ||
-61,216,725.89
2. Cash flows from investing activities:
Proceeds from disinvestment 0.00
0.00
Return on investment 14,575,000.01
0.00
Net proceeds from the disposal offixed assets, intangible assets and other
long-lived assets
690.00
| fixed assets, intangible assets and other | |
4,563.50
Net proceeds from the disposal of
subsidiaries and other business units
0.00
| Net proceeds from the disposal of | ||
70,207,999.92
activities
0.00
| Cash generated from other investing | ||
0.00
Subtotal of cash generated from
investing activities
14,575,690.01
| Subtotal of cash generated from | ||
70,212,563.42
Payments for the acquisition of fixed
Payments for the acquisition of fixedassets, intangible assets and other
long-lived assets
8,631,309.56
| assets, intangible assets and other | |
443,173.00
Payments for investments 850,000,000.00
0.00
subsidiaries and other business units
1,600,000.00
| Net payments for the acquisition of | ||
0.00
Cash used in other investing
activities
0.00
Cash used in other investing
0.00
Subtotal of cash used in inve
activities
860,231,309.56
| sting | ||
443,173.00
Net cash generated from/used in
investing activities
-845,655,619.55
| Net cash generated from/used in | ||
69,769,390.42
3. Cash flows from financing activities:
Capital contributions received 0.00
0.00
Borrowings obtained 0.00
0.00
Net pr
bonds
0.00
| oceeds from the issuance of | ||
0.00
Cash generated from other financing
activities
0.00
Cash generated from other financing
0.00
financing activities
0.00
| Subtotal of cash generated from | ||
0.00
Repayments of borrowings 0.00
0.00
Payments for interest and dividends
178,793,727.60
178,767,181.68
Cash used in other financing
activities
0.00
| Cash used in other financing | ||
0.00
Subtotal of cash used in financing
activities
178,793,727.60
| Subtotal of cash used in financing | ||
178,767,181.68
Net cash generated from/used in
financing activities
-178,793,727.60
Net cash generated from/used in
-178,767,181.68
4. Effect of fore
changes on cash and cash equivalents
2,634.28
| ign exchange rate | ||
2,723.88
5. Net increase in cash and cash
equivalents
-730,476,184.76
| 5. Net increase in cash and cash | ||
-170,211,793.27
Add: Cash and cash equivalents,
2,520,788,994.16
| Add: Cash and cash equivalents, | |
1,754,272,751.45
beginning of the period
6. Cash and
period
1,790,312,809.40
| cash equivalents, end of the | ||
1,584,060,958.18
7. Consolidated Statements of Changes in Owners’ Equity
H1 2019
Unit: RMB
Item
H1 2019Equity attributable to owners of the Company as the parent
Non-controllinginterests
Totalowners’
equity
equityShare
capital
Share
Other equityinstruments
Capital
reserves
Less:
Treasurystock
Capital
Othercomprehensiveincome
Specificreserve
SurplusreservesGeneral
| reserve | |
Retainedearnings
Other
Subtotal
| Other | ||
Preferredshares
Perpe
tualbonds
Other
1. Balances as
1. Balances as
at the end of the
prior year
595,979,09
2.00
at the end of the
118,938,132.
-1,786,
181.69
299,569,569.
2,325,248,71
1.48
3,337,949,32
4.64
3,249,
986.37
3,341,
199,31
1.01
Add:
changedaccountingpolicies
Adjustments for
Adjustments
for correctionsof previous
errors
of previous
Adjustments
combinations
for businessunder common
control
under common
Otheradjustments
2. Balances as
at the beginning
of the year
595,979,09
2.00
at the beginning
118,938,132.
-1,786,
181.69
299,569,569.
2,325,248,71
1.48
3,337,949,32
4.64
3,249,
986.37
3,341,
199,31
1.01
3. Increase/
decrease in the
period (“-
decrease in the” for
” for
202,82
4.25
-75,044,329.
-74,841,505.
156,244,640.
81,403
,135.7
decrease)
comprehensiveincome
3.1 Total
202,82
4.25
103,749,398.
103,952,222.
-28,444,985.
75,507,236.6
3.2 Capital
3.2 Capital
increased and
increased andreduced by
owners
reduced by
184,689,626.
184,689,626.
3.2.1
Ordinary sharesincreased byshareholders
184,689,626.
184,689,626.
3.2.2
Capitalincreased byholders of otherequityinstruments
3.2.3
Share-basedpaymentsincluded inowners’ equity
| 3.2.4 Other | |||||||||||||||
distribution
| 3.3 Profit | ||||||||||||||||||||
-178,793,727
.60
-178,793,727
.60
-178,793,727
.60
3.3.1
Appropriation
to surplus
reserves
to surplus
3.3.2
Appropriation
reserve
to general
3.3.3
Appropriation
shareholders)
to owners (or
-178,793,727
.60
-178,793,727
.60
-178,793,727
.60
3.3.4 Other
| 3.4 Transfers | |||||||||||||||
equity
3.4.1
within owners’Increase in
Increase incapital (or share
capital (or sharecapital) from
capital reserves
capital) from
3.4.2
Increase incapital (or share
capital (or sharecapital) from
capital) fromsurplus reserves
surplus reserves
3.4.3 Loss
offset by surplus
reserves
| offset by surplus | |||||||||||||||
3.4.4
Changes indefined benefit
pensionschemes
defined benefittransferred to
retainedearnings
transferred to
comprehensiveincome
3.4.5 Other
transferred to
retainedearnings
transferred to
| 3.4.6 Other | |||||||||||||||
reserve
3.5 Specific
3.5.1
period
| Increase in the | |||||||||||||||
in the period
3.5.2 Used
3.6 Other
4. Balances as
at the end of the
period
595,979,09
2.00
at the end of the
118,938,132.
-1,583,
357.44
299,569,569.
2,250,204,38
2.04
3,263,107,81
9.45
159,494,627.
3,422,602,44
6.74
H1 2018
Unit: RMB
Item
H1 2018Equity attributable to owners of the Company as the parent
Non-controllinginterestsTotal
equity
owners’
Share
capital
Share
Other equityinstruments
Capital
reservesLess:
Treasu
rystock
Capital
Othercomprehensiveincome
Specificreserve
SurplusreservesGeneral
| reserve | |
Retainedearnings
Other
Subtotal
| Other | ||
Preferredshare
s
Perpetualbonds
Other
1. Balances as
1. Balances as
at the end of
the prior year
at the end of
595,979,09
2.00
118,938,132.
-4,111,
587.14
299,569,569.
1,911,318,58
6.37
2,921,693,79
4.08
862,087.06
2,922,555,881.
Add:
Adjustments
accountingpolicies
| for changed | |||||||||||||||
Adjustments
for correctionsof previous
errors
of previous
Adjustments
combinations
for businessunder common
control
under common
Otheradjustments
2. Balances as
at the
at thebeginning of
the year
595,979,09
2.00
| beginning of | ||
118,938,132.
-4,111,
587.14
299,569,569.
1,911,318,58
6.37
2,921,693,79
4.08
862,087.06
2,922,555,881.
3. Increase/
decrease in the
period (“-
decrease in the” for
decrease)
” for
415,36
0.08
-95,821,200.
-95,405,839.
-95,405,839.93
3.1 Total
comprehensiveincome
3.1 Total
415,36
0.08
82,972,527.5
83,387,887.6
83,387,
887.67
3.2 Capital
| 3.2 Capital | |||||||||||||||
increased andreduced by
owners
3.2.1
reduced byOrdinary shares
increased byshareholders
Ordinary shares
3.2.2
Capitalincreased by
equityinstruments
holders of other
3.2.3
Share-basedpaymentsincluded inowners’ equity
3.2.4
Other
distribution
| 3.3 Profit | ||||||||||||||||||||
-178,793,727.60
-178,793,727.60
-178,793,727.6
3.3.1
Appropriation
to surplus
reserves
to surplus
3.3.2
Appropriation
reserve
to general
3.3.3
Appropriation
shareholders)
to owners (or
-178,793,727
.60
-178,793,727
.60
-178,793,727.6
3.3.4
Other
3.4 Transfers
within owners’
equity
| within owners’ | |||||||||||||||
3.4.1
Increase incapital (or
capital (orshare capital)
share capital)from capital
reserves
3.4.2
from capitalIncrease in
Increase incapital (or
capital (orshare capital)
share capital)from surplus
reserves
from surplus
3.4.3 Loss
offset by
offset bysurplus reserves
surplus reserves
3.4.4
Changes indefined benefit
pensionschemes
defined benefittransferred to
retainedearnings
transferred to
3.4.5
Othercomprehensiveincome
retainedearnings
transferred to
3.4.6
Other
reserve
3.5 Specific
3.5.1
period
| Increase in the | |||||||||||||||
in the period
3.5.2 Used
3.6 Other
4. Balances as
at the end of
595,979,09
at the end of
118,938,132.
-3,696,
227.06
299,569,569.
1,815,497,38
2,826,287,95
862,087
.06
2,827,150,041.
the period 2.00
6.36
4.15
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2019
Unit: RMB
Item
H1 2019Share
Other equityinstruments
Capitalreserves
Less:
capitalTreasury
stock
Othercomprehensiveincome
Specificreserve
Surplusreserves
RetainedearningsOther
Totalowners’equityPreferred
Treasuryshares
Perpetual
| shares | bonds |
Other
1. Balances as at
the end of the
prior year
595,979,092.0
the end of the
92,326,4
67.62
298,912,
759.52
2,080,513,737.
3,067,732,
056.76
Add:
changedaccountingpolicies
Adjustments for
Adjustments
previous errors
| for corrections of | ||||||||||||
Otheradjustments
2. Balances as at
the beginning of
the year
595,979,092.0
the beginning of
92,326,4
67.62
298,912,
759.52
2,080,513,737.
3,067,732,
056.76
3. Increase/
decrease in the
period (“-
decrease in the” for
decrease)
” for
-46,014,462.06
-46,014,46
2.06
comprehensiveincome
3.1 Total
132,779,265.5
132,779,2
65.54
3.2 Capital
increased and
increased andreduced by
owners
reduced by
3.2.1
Ordinary sharesincreased byshareholders
3.2.2
by holders ofother equityinstruments
Capital increased
3.2.3
Share-basedpaymentsincluded inowners’ equity
3.2.4 Other
distribution
| 3.3 Profit | ||||||||||||||||||
-178,793,727.6
-178,793,7
27.60
3.3.1
surplus reserves
| Appropriation to | ||||||||||||
3.3.2
Appropriation toowners (or
shareholders)
owners (or
-178,793,727.6
-178,793,7
27.60
3.3.3 Other
3.4 Transfers
within owners’
equity
| within owners’ | ||||||||||||
3.4.1
Increase incapital (or share
capital (or sharecapital) from
capital reserves
capital) from
3.4.2
capi
Increase intal (or share
tal (or sharecapital) from
surplus reserves
capital) from
3.4.3 Loss
offset by surplus
reserves
| offset by surplus | ||||||||||||
3.4.4
Changes indefined benefit
defined benefitpension schemes
t
pension schemesransferred to
ransferred toretained earnings
retained earnings
comprehensiveincome
3.4.5 Other
transferred to
transferred toretained earnings
retained earnings
3.4.6 Other
reserve
| 3.5 Specific | ||||||||||||||||||||||||
3.5.1
period
| Increase in the | ||||||||||||
in the period
| 3.5.2 Used | ||||||||||||||||||||||||
3.6 Other
4. Balances as at
the end of the
period
595,979,092.0
the end of the
92,326,4
67.62
298,912,
759.52
2,034,499,275.
3,021,717,
594.70
H1 2018
Unit: RMB
Item
H1 2018Sharecapital
Other equityinstruments
Capitalreserves
Less:
Treasury stock
Othercomprehensive
Specificreserve
Surplusreserves
Retained
incomeearnings
Other
Totalowners’equityPreferred
earningsshares
Perpetual
| shares | bonds |
Other
1. Balances as
1. Balances as
at the end of the
prior year
595,979,092.
at the end of the
94,057,
859.68
298,912,759.52
1,920,589
,031.84
2,909,538,7
43.04
Add:
Adjustments for
changedaccountingpolicies
Adjustments for
Adjustments
for correctionsof previous
errorsOtheradjustments
of previous
2. Balances as
at the beginning
of the year
595,979,092.
at the beginning
94,057,
859.68
298,912,759.52
1,920,589,031.84
2,909,538,7
43.04
3. Increase/
3. Increase/
decrease in the
period (“-
decrease in the” for
decrease)
” for
-156,295,
600.95
-156,295,60
0.95
comprehensiveincome
3.1 Total
22,498,12
6.65
22,498,126.
3.2 Capital
increased and
increased andreduced by
owners
reduced by
3.2.1
Ordinary sharesincreased byshareholders
3.2.2
Capitalincreased byholders of otherequityinstruments
3.2.3
Share-basedpaymentsincluded inowners’ equity
| 3.2.4 Other | ||||||||||||
distribution
| 3.3 Profit | ||||||||||||||||||
-178,793,
727.60
-178,793,72
7.60
3.3.1
Appropriation
reserves
to surplus
3.3.2
Appropriation
shareholders)
to owners (or
-178,793,
727.60
-178,793,72
7.60
3.3.3 Other
3.4 Transfers
within owners’
equity
| within owners’ | ||||||||||||
3.4.1
Increase incapital (or share
capital (or sharecapital) from
capital reserves
capital) from
3.4.2
Increase incapital (or share
capital (or sharecapital) from
capital) fromsurplus reserves
surplus reserves
3.4.3 Loss
offset by
offset bysurplus reserves
surplus reserves
3.4.4
Changes indefined benefit
pensionschemes
defined benefittransferred to
retainedearnings
transferred to
comprehensiveincome
3.4.5 Other
transferred to
retainedearnings
transferred to
| 3.4.6 Other | ||||||||||||
reserve
| 3.5 Specific | ||||||||||||||||||||||||
3.5.1
period
| Increase in the | ||||||||||||
in the period
| 3.5.2 Used | ||||||||||||||||||||||||
3.6 Other
4. Balances as
at the end of the
period
595,979,092.
at the end of the
94,057,
859.68
298,912,759.52
1,764,293,430.89
2,753,243,1
42.09
III Company Profile
1. 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. The registration number of Business License forEnterprises as Legal Person is ZQFZ No. 440301103570124. And the credibility code for the Company after the business licensereform is 91440300192174135N. The registered capital of the Company was RMB541, 799,175 after bonus issue of shares on thebasis of one share for every existing 10 shares based on existing paid-in capital of the Company in 1996 and it changes toRMB595,979,092 after bonus issue of shares on the basis of one share for every existing 10 shares based on previous paid-in capitalof RMB541,799,175 in 2009. As of 30 June 2019, the total share capital of the Company was 595,979,092 shares, among which,528,373,849 A shares, and 67,605,243 B shares.Registered address: 39
th and 42ndFloor, International Trade Center, Renmin South Road, Shenzhen.Registration number of business entity: 91440300192174135NLegal representative: Liu Shengxiang
2. Nature of the business, business scope and main products of the Company
The nature of business and business scope of the Company and its subsidiaries includes development of real estate and sale ofcommercial housing, construction and management of buildings, house rent, supervision of construction, domestic trading andmaterials supply and marketing (excluding exclusive dealing and monopoly sold products and commodities under special control topurchase).Main products or services rendered mainly include the development and sales of commercial residential housing; propertymanagement; buildings and the building devices maintenance, garden afforest and cleaning service; property leasing; supervise andmanagement of the engineering; retails of the Chinese food, Western-style food and wines, and etc.The parent company of the Company is Shenzhen Investment Holdings Co., Ltd., a solely state-funded limited company. As agovernment department, Shenzhen State-owned Assets Supervision and Administration Bureau manages Shenzhen InvestmentHoldings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality. Thus, the final controller of the Company isShenzhen State-owned Assets Supervision and Administration Committee of Shenzhen Government.The financial report was approved to disclose by the 7
th Meeting of the 9
thBoard of Directors on 19 August 2019.There were 24 subsidiaries included in the consolidation financial statements in 2019, and for details, please refer to Note IX“Equities among Other Entities” herein. There was 2 increased subsidiary in the consolidation scope as compared with last year, andplease refer to Notes VIII. “Changes in Consolidation Scope” for details.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
With the going-concern assumption as the basis and based on transactions and other events that actually occurred, the Groupprepared financial statements in accordance with The Accounting Standards for Business Enterprises—Basic Standard issued by theMinistry of Finance with Decree No. 33 and revised with Decree No. 76, the 42 specific accounting standards, the ApplicationGuidance of Accounting Standards for Business Enterprises, the Interpretation of Accounting Standards for Business Enterprises andother regulations issued and revised from 15 February 2006 onwards (hereinafter jointly referred to as “the Accounting Standards forBusiness Enterprises”, “China Accounting Standards” or “CAS”), as well as the Rules for Preparation Convention of Disclosure ofPublic Offering Companies No.15 – General Regulations for Financial Reporting (revised in 2014) by China Securities RegulatoryCommission.In accordance with relevant provisions of the Accounting Standards for Business Enterprises, the Group adopted the accrual basis inaccounting. Except for some financial instruments, the financial statements were based on historical costs for measurement. Ifimpairment occurred on an asset, an impairment reserve was withdrawn accordingly pursuant to relevant requirements.
2. Continuation
There will be no such events or situations in the 12 months from the end of this Reporting Period that will cause material doubts as tothe continuation capability of the Company.
V Important Accounting Policies and Estimations
Indication of specific accounting policies and estimations:
The Company and its subsidiaries engage in development of real estate, property leasing, property management, supervision ofconstruction, and catering services. The Company and each subsidiary according to the actual production and operationcharacteristics and the regulations of the relevant ASBE, formulated certain specific accounting policies and accounting estimates ofthe transactions and events such as recognizing the revenues, and please refer to the Note V. 39 “Revenue” for details. As for thenotes to the important accounting judgment and estimations made by the management level, please refer to the Note V. 45. “Otherimportant accounting policies and estimations” of the section.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with in compliance with the Accounting Standards for BusinessEnterprises, which factually and completely present the Company’s, and the Company’s financial positions as at 30 June 2019,business results and cash flows for H1 of 2019 and other relevant information. In addition, the Company’s and the Company’sfinancial statements meet the requirements of disclosing financial statements and notes thereto stated in the Rules for PreparationConvention of Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in 2014) byChina Securities Regulatory Commission.
2. Fiscal Period
The Company’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year. The Company’s fiscal yearstarts on 1 Jan. and ends on 31 Dec. of every year according to the Gregorian calendar.
3. Operating Cycle
A normal operating cycle refers to a period from the Group purchasing assets for processing to realizing cash or cash equivalents. Asfor the construction of the real estate projects of the Group with rather long period, the normal operating period more than 1 yearowning to the industry characteristics, and although the relevant assets be discounted, sold or consumed more than 1 year, should stillbe divided into the circulating assets; as for the operating liabilities projects during the normal operation period even be liquidatedover 1 year after the balance sheet date, should be divided into the circulation liabilities. Besides, the normal operating period ofother business of the Group is shorter than 1 year. As for the normal operating period shorten than 1 year and the assets discountedsince the balance sheet date or the liabilities should be liquidated due within 1 year since the balance sheet date, should be classifiedas the current assets or liabilities.
4. Recording Currency
Renminbi (RMB) is regarded as the prevailing currency used in the main economic circumstances of the Company and its domesticsubsidiaries. The Company and its domestic subsidiaries adopt RMB as the recording currency. The Hong Kong subsidiary of theCompany confirms the Hong Kong dollar as its recording currency according to the major economic environment of the currency of itsoffice place. When compiling the financial statements, the currency the Company adopted was the Renminbi.
5. Accounting Treatment for Business Combinations under the Common Control and Not under theCommon ControlBusiness combinations, it is refer to two or more separate enterprises merge to form a reporting entity transactions or events.Business combination is divided into under the same control and those non under the same control.
(1) Business combinations under the same control
A business combination under the same control is a business combination in which all of the combining enterprises are ultimatelycontrolled by the same party or the same parties both before and after the business combination and on which the control is nottemporary. In a business combination under the same control, the party which obtains control of other combining enterprise(s) on thecombining date is the combining party, the other combining enterprise(s) is (are) the combined party. The “combining date” refers tothe date on which the combining party actually obtains control on the combined party.The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carryingamount in the combined party on the combining date. As for the balance between the carrying amount of the net assets obtained bythe combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued), the additionalpaid-in capital (share premium) shall be adjusted. If the additional paid-in capital (share premium) is not sufficient to be offset, theretained earnings shall be adjusted.The direct cost for the business combination of the combining party shall be recorded into the profits and losses at the current period.
(2) Business combinations not under the same control
A business combination not under the same control is a business combination in which the combining enterprises are not ultimatelycontrolled by the same party or the same parties both before and after the business combination. In a business combination not underthe same control, the party which obtains the control on other combining enterprise(s) on the purchase date is the acquirer, and othercombining enterprise(s) is (are) the acquiree.For a business combination not under the same control, the combination costs shall include the fair values, on the acquisition date, ofthe assets paid, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on theacquiree, the expenses for audit, legal services and assessment, and other administrative expenses, which are recorded into the profitsand losses in the current period. The trading expenses for the equity securities or debt securities issued by the acquirer as the
combination consideration shall be recorded into the amount of initial measurement of the equity securities or debt securities. Theinvolved contingent consideration shall be recorded into the combination costs at its fair value on the acquiring date. Where new orfurther evidences emerge, within 12 months since the acquiring date, against the existing circumstances on the acquiring date and thecontingent consideration thus needs to be adjusted, the combined goodwill shall be adjusted accordingly. The combination costs ofthe acquirer and the identifiable net assets obtained by it in the combination shall be measured according to their fair values at theacquiring date. The acquirer shall recognize the positive balance between the combination costs and the fair value of the identifiablenet assets it obtains from the acquiree as business reputation. Where the combination costs are less than the fair value of theidentifiable net assets it obtains from the acquiree, the acquirer shall re-examine the measurement of the fair values of the identifiableassets, liabilities and contingent liabilities it obtains from the acquiree as well as the combination costs. If, after the reexamination,the combination costs are still less than the fair value of the identifiable net assets it obtains from the acquiree, the acquirer shallrecord the balance into the profits and losses of the current period.As for the deductible temporary differences the acquirer obtains from the acquiree which are not recognized into deferred income taxliabilities due to their not meeting the recognition standards, if new or further information shows that the relevant situation hasexisted on the acquiring date and the economic benefits brought by the deductible temporary differences the acquirer obtains fromthe acquiree on the acquiring date can be realized, they shall be recognized into deferred income tax assets and the relevant goodwillshall be reduced. Where the goodwill is not sufficient to be offset, the difference shall be recognized into the profits and losses in thecurrent period. In other circumstances than the above, where the deductible temporary differences are recognized into deferredincome tax assets on the acquiring date, they shall be recorded into the profits and losses in the current period.In a business combination not under same control realized by two or more transactions of exchange, according to about the 5
thNoticeabout the Treasury Issuing the Accounting Standards for Enterprises (Finance accounting) [2012] No. 19 Criterion about the“package deal” (see Notes V. 5 (2)), Whether the deals are “package deal” or not, belong to the “package deal”, see the previousparagraphs described in this section and Notes IV. 14 “Long term equity investment transaction” and conduct accounting treatment,those not belong to the "package deal" distinguish between the individual financial statements and the consolidated financialstatements and conduct relevant accounting treatment.In the individual financial statements, the sum of the book value and new investment cost of the Company holds in the acquireebefore the acquiring date shall be considered as initial cost of the investment. Other related comprehensive gains in relation to theequity interests that the Company holds in the acquiree before the acquiring date shall be treated on the same basis as the acquireedirectly disposes the related assets or liabilities when disposing the investment (that is, except for the corresponding share in thechanges in the net liabilities or assets with a defined benefit plan measured at the equity method arising from the acquiree’sre-measurement, the others shall be transferred into current investment gains).In the Company’s consolidated financial statements, as for the equity interests that the Company holds in the acquiree before theacquiring date, they shall be re-measured according to their fair values at the acquiring date; the positive difference between their fairvalues and carrying amounts shall be recorded into the investment gains for the period including the acquiring date. Other relatedcomprehensive gains in relation to the equity interests that the Company holds in the acquiree before the acquiring date shall betreated on the same basis as the acquiree directly disposes the related assets or liabilities when disposing the investment (that is,except for the corresponding share in the changes in the net liabilities or assets with a defined benefit plan measured at the equitymethod arising from the acquiree’s re-measurement, the others shall be transferred into current investment gains on the acquiringdate).
6. Preparation of the Consolidated Financial Statements
(1) Principle for determining the consolidation scope
The consolidation scope for financial statements is determined on the basis of control. The term “control” is the power of theCompany upon an investee, with which it can take part in relevant activities of the investee to obtain variable returns and is able to
influence the amount of returns. The consolidated financial statements comprise the financial statements of the Company and itssubsidiaries. A subsidiary is an enterprise or entity controlled by the Company.If any changes in the relevant facts or situations result in any changes in the elements involved in the aforesaid definition of “control”,the Company shall carry out a reassessment.
(2) Methods for preparing the consolidated financial statements
Subsidiaries are fully consolidated from the date on which the Company obtains control on their net assets and operationdecision-making and are de-consolidated from the date when such control ceases. As for a disposed subsidiary, its operating resultsand cash flows before the disposal date has been appropriately included in the consolidated income statement and cash flowstatement; and as for subsidiaries disposed in the current period, the opening items in the consolidated balance sheet are not adjusted.For a subsidiary acquired in a business combination not under the same control, its operating results and cash flows after theacquiring date have been appropriately included in the consolidated income statement and cash flow statement, and the opening itemsand comparative items in the consolidated financial statements are not adjusted. For a subsidiary acquired in a business combinationunder the same control or a combined party obtained in a takeover, its operating results and cash flows from the beginning of theReporting Period of the combination to the combination date have been appropriately included in the consolidated income statementand cash flow statement, and the comparative items in the consolidated financial statements are adjusted at the same time.The financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting period of theCompany during the preparation of the consolidated financial statements, where the accounting policies and the accounting periodsare inconsistent between the Company and subsidiaries. For a subsidiary acquired from a business combination not under the samecontrol, the individual financial statements of the subsidiary are adjusted based on the fair value of the identifiable net assets at theacquisition date.All significant inter-group balances, transactions and unrealized profits are offset in the consolidated financial statements.The portion of a subsidiary’s shareholders’ equity and the portion of a subsidiary’s net profits and losses for the period not held by theCompany are recognized as minority interests and minority shareholder profits and losses respectively and presented separately undershareholders’ equity and net profits in the consolidation financial statements. The portion of a subsidiary’s net profits and losses forthe period that belong to minority interests is presented as the item of “minority shareholder profits and losses” under the bigger itemof net profits in the consolidated financial statements. Where the loss of a subsidiary shared by minority shareholders exceeds theportion enjoyed by minority shareholders in the subsidiary’s opening owners’ equity, minority interests are offset.Where the Company losses control on its original subsidiaries due to disposal of some equity investments or other reasons, theresidual equity interests are re-measured according to the fair value on the date when such control ceases. The summation of theconsideration obtained from the disposal of equity interests and the fair value of the residual equity interests, minus the portion in theoriginal subsidiary’s net assets measured on a continuous basis from the acquisition date that is enjoyable by the Company accordingto the original shareholding percentage in the subsidiary, is recorded in investment gains for the period when the Company’s controlon the subsidiary ceases. Other comprehensive incomes in relation to the equity investment in the original subsidiary are treated onthe same accounting basis as the acquiree directly disposes the relevant assets or liabilities (that is, except for the changes in the netliabilities or assets with a defined benefit plan resulted from re-measurement of the original subsidiary, the rest shall all be transferredinto current investment gains) when such control ceases. And subsequent measurement is conducted on the residual equity interestsaccording to the No. 2 Accounting Standard for Business Enterprises —Long-term Equity Investments or the No. 22 AccountingStandard for Business Enterprises—Recognition and Measurement of Financial Instruments. For details, see Notes V. 22 “Long TermEquity Investment” or Notes V. 10 “Financial Instruments”.Where the Company losses control on its original subsidiaries due to step by step disposal of equity investments through multipletransactions, it need to distinguish the Group losses control on its subsidiaries due to disposal of equity investments whether belongsto a package deal. All the transaction terms, conditions and economic impact of the disposal of subsidiaries’ equity investment are inaccordance with one or more of the following conditions, which usually indicate the multiple transactions, should be considered as a
package deal for accounting treatment.These deals are at the same time or under the condition of considering the influence ofeach other to concluded; These transactions only be as a whole can achieve a complete business result; The occurrence of adeal depends on at least one other transactions A deal alone is not economical, it is economical with other trading together. Thosenot belong to a package deal, each of them a deal depends on circumstances respectively conduct accounting treatment in accordancewith the applicable principles of “part disposal of subsidiaries of a long-term equity investment under the condition of not losingcontrol on its subsidiaries” (see Notes V. 24. (2) in this section) and “Where the Company losses control on its originalsubsidiaries due to disposal of some equity investments or other reasons” (see the front paragraph) relevant transactions of theCompany losses control on its subsidiaries due to disposal of equity investments belonging to a package deal, considered as atransaction and conduct accounting treatment. However, Before losing control, every disposal cost and corresponding net assetsbalance of subsidiary of disposal investment are confirmed as other comprehensive income in consolidated financial statements,which together transferred into the current profits and losses in the loss of control, when the Company losing control on itssubsidiary.
7. Classification of Joint Arrangements and Accounting Treatment of Joint OperationsA joint arrangement refers to an arrangement jointly controlled by two participants or above. The Company classifies jointarrangements into joint operations and joint ventures according to its rights and duties in the joint arrangements. A joint operationrefers to a joint arrangement where the Group enjoys assets and has to bear liabilities related to the arrangement. A joint venturerefers to a joint arrangement where the Group is only entitled to the net assets of the arrangement.The Company’s investment in the joint venture shall accounted by using the equity method and treated in accordance with relevantaccounting policies described in Note V. 22 (2) “Long-term equity investments accounted by using the equity method”.In terms of the joint operation involving the Company as a joint operator: recognizes the assets/liabilities held alone and theassets/liabilities jointly held by recognizing according to the portion; recognizes the income from sale of the Company’s share in theoutput of the joint operation; recognizes the income from sale of the joint operation’s outputs according to the Company’s stake in it;and recognizes the expense solely incurred to the Company and the expense incurred to the joint operation according to theCompany’s stake in it.When the Company, as a joint operator, transfers or sells assets (except for the assets constituting business, the same below) to thejoint operation, before the assets are sold to a third party, the Company only recognizes the share of the other joint operators in thegains and losses arising from the sale. Where impairment occurs to the assets as prescribed in The Accounting Standard No. 8 forBusiness Enterprises—Asset Impairment, the Company shall fully recognizes the loss resulting from the Company’s transfer or saleof the assets in relation to the joint operation; the Company shall recognizes the loss according to its stake in the joint operation for apurchase of assets from the joint operation.
8. Confirmation Standard for Cash and Cash Equivalent
The term “cash” refers to cash on hand and deposits that are available for payment at any time. The term “cash equivalents” refers toshort-term (within 3 months from the purchase date) and highly liquid investments that are readily convertible to known amounts ofcash 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 transactions
As for a foreign currency transaction, the Company shall convert the amount in a foreign currency into amount in its bookkeeping
base at the spot exchange rate (usually referring to the central parity rate announced by the People’s Bank of China, the same below)of the transaction date, while as for such transactions as foreign exchange or involving in foreign exchange, the Company shallconverted into amount in the bookkeeping base currency at actual exchange rate the transaction is occurred.
(2) Accounting treatments for translation of foreign currency monetary items and non-monetary itemsOn the balance sheet date, the foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date.The exchange difference arising from it shall be recorded into current profit and loss.A foreign currency non-monetary item measured at the historical costs shall still be translated at the spot exchange rate on thetransaction date. Where the foreign non-monetary items measured at the fair value shall be converted into amount in its bookkeepingbase currency at spot exchange rate, the exchange gains and losses arising thereof shall be treated as change in fair value, andrecorded into the current period gains and losses or as other comprehensive incomes.
(3) Translation of foreign currency financial statements
When it involves overseas business in preparing the consolidated financial statement, for the translation difference of foreigncurrency monetary items of net investment in overseas business arising from the change in exchange rate, it shall be recorded into theitem of “difference of foreign currency financial statement translation” under the owners’ equity; and be recorded into disposal gainsand losses at current period when disposing overseas business.The foreign currency financial statement of overseas business should be translated in to RMB financial statement by the followingmethods: The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date.Among the owner’s equity items, except for the items as “undistributed profits”, other items shall be translated at the spot exchangerate at the time when they are incurred. The income and expense items in the profit statements shall be translated at the average spotexchange rate at the period-begin and period-end of the transaction date. The undistributed profits at year-begin is the undistributedprofits at the end of last year after the translation; undistributed profits at year-end shall be listed as various distribution items afterthe translation; after the translation, the balance between assets and the sum of liabilities and owners’ equities shall be recorded intoother comprehensive gains and losses as difference of foreign currency translation. Where an enterprise disposes of an overseasbusiness without the control right, it shall shift the differences, which is presented under the items of the owner’s equities in thebalance sheet and which arises from the translation of foreign currency financial statements relating to this overseas business, into thedisposal profits and losses of the current period by all or proportion of the disposed overseas business.Foreign cash flow shall be translated at the average spot exchange rate at the period-begin and period-end of the date of cash flowincurred. The influence of exchange rate on the cash flow shall be adjustment item and individually listed in the cash flow statement.And the beginning balance and the actual balance of last year shall be listed at the amounts after translation of foreign currencyfinancial statement in last year.Where the control of the Company over an overseas operation ceases due to disposal of all or some of the Company’s owner’s equityin the overseas operation or other reasons, the foreign-currency statement translation difference belonging to the parent company’sowner’s equity in relation to the overseas operation which is stated in the balance sheet shall be all restated as gains and losses of thedisposal period.Where the Company’s equity in an overseas operation decreases due to disposal of some equity investment or other reasons but theCompany still has control over the overseas operation, the foreign-currency statement translation difference in relation to thedisposed part of the overseas operation shall be recorded into minority interests instead of current gains and losses. If what’s disposedis some equity in an overseas associated enterprise or joint venture, the foreign-currency statement translation difference related tothe overseas operation shall be recorded into the gains and losses of the current period of the disposal according to the disposal ratio.
10. Financial Instruments
Financial Instruments
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial liability.
(1) Classification, recognition and measurement of financial assets
The Company classifies the financial assets into financial assets measured at amortized cost, financial assets measured by the fairvalue and the changes recorded in other comprehensive income and financial assets at fair value through profit or loss based on thebusiness model for financial assets management and characteristics of contractual cash flow of financial assetsFinancial assets initially recognized shall be measured at their fair values. For financial assets measured at their fair values and ofwhich the variation is recorded into the profit or loss of the current period, the transaction expenses thereof shall be directly includedinto the current profit or loss; for other financial assets, the transaction expenses thereof shall be included into the initially recognizedamount. For accounts receivable and notes receivable generated from sales of commodities or provision of labor services, excludingor without regard to major financing, the expected consideration amount the Company has the right to collect will be taken by theCompany as the initially recognized amount.Financial assets measured by the amortized costThe business mode of the Company to manage the financial assets targets at collecting the contractual cash flow. What's more, thecontractual cash flow characteristics of the financial assets are consistent with the basic lending arrangement, that is, the cash flowgenerated in the specific date is the payment of the interest based on the principal and outstanding principal amount. This kind offinancial assets of the Company shall be subsequently measured based on the amortized cost and effective interest method, and thegains or losses arising from the amortization, impairment shall be included into current profit and loss.Financial assets measured at the fair value with its changes included into other comprehensive incomeBusiness mode for managing financial assets of the Company takes contract cash flow collected as target and selling as target andcontract cash flow characteristics of such financial assets are consistent with basic lending arrangement. The Company calculatessuch financial assets as per fair value whose change is included into corresponding comprehensive income, but impairment loss orgain, exchange gain or loss and interest income calculated as per actual interest rate method are included into the current profit andloss.Furthermore, the Company designates partial non-tradable equity vehicle investment as the financial asset measured with fair valuewhose change is included into other comprehensive income. The Company includes the related dividend income of such financialassets into the current profit and loss with the change in fair value included into other comprehensive income. At the time ofderecognition of such financial assets, accumulated gain or loss included into other comprehensive income before will be shifted toretained earnings from other comprehensive incomes but not included into the current profit and loss.Financial assets at fair value through profit or lossThe Company classifies financial assets except for above-mentioned financial assets measured with amortized cost and financialassets measured with fair value whose change is included into other comprehensive income into financial assets at fair value throughprofit or loss. Furthermore, at the time of the initial recognition, to eliminate or significantly reduce the accounting mismatch, theCompany specifies partial financial assets as the financial assets at fair value through profit or loss. For such financial assets, theCompany adopts the fair value for the subsequent measurement, and the changes in fair value are included into current profit andloss.
(2) Classification, recognition and measurement of financial liabilities
The Company’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or lossand other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediatelyrecognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the initialrecognition amounts.Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include trading financial liabilities (including the derivative instrumentsbelonging to financial liabilities) and financial liabilities designated at the initial recognition to be measured by the fair value andtheir changes are recorded in the current profit or loss.
Trading financial liabilities (including the derivative instruments belonging to financial liabilities) are subsequently measured at fairvalue, and the changes of fair value except those related to hedge accounting) shall be recorded in the current profit or loss.For the financial liabilities at fair value through profit or loss, the change of such liability's fair value arising from changes in theCompany's own credit risk is included into other comprehensive income. And when the liability is derecognized, the accumulativechange amount of its fair value arising from the change of own credit risk included into other comprehensive income is transferred tothe retained earnings. The changes of the remaining fair value are included in the current profit or loss. If the treatment of changeeffects in own credit risk of such financial liability in the above method may cause or expand the accounting mismatching in theprofit or loss, the Company will include all gains or losses (including the amount influenced due to the changes in own credit risk ofthe enterprise) of such financial liability into the current profit or loss.Other financial liabilitiesOther financial liabilities except for those formed due to transfer of financial assets failing to comply with derecognition condition orcontinuously getting involved in transferred financial assets and financial guarantee contract are classified into financial liabilitiesmeasured with amortized cost and subject to subsequent measurement based on amortized cost. Gains or losses generated fromderecognition or amortization are included into the current profit or loss.
(3) Recognition and measurement of financial assets transfer
The Company derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risksand rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but hastransferred control of the asset.If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the asset isrecognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence refersthe level of risk by the financial asset changes the enterprise is facing.For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a). the carrying amount of the financial assettransferred; and (b) the sum of the consideration received from the transfer and any cumulative gain or loss that had been recognizedin other comprehensive income, is recognized in profit or loss.If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocatedbetween the part that continues to be recognized and the part that is derecognized, based on the relative fair value of those parts. Thedifference between (a) the carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for thepart derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in othercomprehensive income, is recognized in profit or loss.If the Company endorses the financial assets sold by right of recourse and holding financial assets, it needs to confirm that whetheralmost all risks and remuneration in the ownership of financial assets have been transferred or not. Where an enterprise hastransferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee, it shall stop recognizingthe financial asset If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stoprecognizing the financial asset. If the Company does not transfer or retain nearly all of the risks and rewards related to the ownershipof the financial asset, then it continuously judges that whether the Company retain the control of the assets, and conducts accountingtreatment according to the principles described in former paragraphs.
(4) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being terminated, derecognition of such financialliabilities (or partial financial liabilities) is conducted by the Company. If the Company (borrower) concludes an agreement with thelender to replace original financial liabilities with new ones and contact terms of new financial liabilities are different from those oforiginal financial liabilities, derecognition of original financial liabilities and recognition of new financial liabilities shall be
conducted. In case of material alteration of contract terms of original financial liabilities (partial financial liabilities) by the Company,derecognition of original financial liabilities and recognition of new financial liabilities as per modified terms shall be conducted.In case of derecognition of financial liabilities (partial financial liabilities), the Company includes the balance between its carryingvalue and payment consideration (including non-cash assets transferred out or borne liabilities) into the current profit or loss.
(5) Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities,and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financialasset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances,financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
(6) Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in anarm’s length transaction. For a financial instrument which has an active market, the Company uses quoted price in the active marketto establish its fair value. The quoted price in the active market refers to the price that can be regularly obtained from exchangemarket, agencies, industry associations, pricing authorities; it represents the fair market trading price in the actual transaction. For afinancial instrument which does not have an active market, the Company establishes fair value by using a valuation technique.Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, reference to thecurrent fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. TheCompany measures initially and subsequently the fair value of an interest rate swap at the value of a competitor’s interest rate swapquoted by a recognized financial institution as at the Company’s balance sheet date in accordance with the principle of consistency.In valuation, the Company adopts applicable valuation techniques supported by sufficient utilizable data and other information incurrent circumstances, selects input values consistent with asset or liability characteristics considered in relevant asset or liabilitytransactions of market participators and prioritizes the applying relevant observable input values. Unobservable input values shall notbe applied unless relevant observable input values are not accessible or feasible.
(7) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.The consideration received from issuing equity instruments, net of transaction costs, are added to shareholders’ equity. All types ofdistribution (excluding stock dividends) made by the Company to holders of equity instruments are deducted from shareholders’equity. The Company does not recognize any changes in the fair value of equity instruments.An equity instrument distributing dividends during the period of continued existence (including the “interest” generated from thoseclassified as equity instrument) shall be treated as profit distribution.Impairment of Financial AssetsThe Company needs to confirm that the financial assets subject to the impairment loss are the financial assets measured based on theamortized cost, the debt instrument investment measured based on the fair value with its variations included into othercomprehensive incomes and the lease outlay receivable, mainly including notes receivable, account receivable, other receivables,investment on creditor’s rights, other investments on creditor’s rights and long-term receivables etc. Besides, in respect of thecontract assets and partial financial guarantee contract, corresponding impairment provisions shall be calculated and withdrawn andcorresponding credit impairment losses recognized according to various accounting policies mentioned in this part.
(1) Methods for the Recognition of Impairment Provisions
For all mentioned items above, the Company shall calculate and withdraw corresponding impairment provisions and recognizecorresponding credit impairment losses according to applicable expected credit loss measurement methods (general methods orsimplified methods) with the expected credit loss as the basis.Credit loss refers to the difference between all receivable contract cash flows and all expected cash flows that are discounted to thepresent value based on the original actual interest rate -- the present value of all cash shortfall. However, for the purchased or originalfinancial assets subject to the credit impairment, the Company shall realize the discounting based on the actual interest rate subject to
the credit adjustment.General methods applied to measure the expected credit loss can be described as: the Company shall evaluate whether the credit riskof the financial assets (including the contract assets and other applicable items; the same below) increases remarkably after the initialrecognition on the balance sheet day; if the credit risk increases remarkably after the initial recognition, the Company shall measurethe provision for loss based on the specific expected credit loss amount during the entire period of existence; if not, the Companyshall measure the provision for loss based on the specific expected credit loss amount in the following 12 months. While evaluatingthe expected credit loss, the Company shall take all reasonable and well-founded information into consideration, including theforward-looking information.For the financial instrument of lower credit risk on the balance sheet day, the Company shall assume that its credit risk does notincrease remarkably after the initial recognition, and corresponding provision for loss shall be measured according to the expectedcredit loss in the following 12 months.
(2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial RecognitionIf any financial assets’ probability of default within the expected period of existence determined on the balance sheet day isobviously higher than that within the expected period of existence determined during the initial recognition, it shall indicate theremarkable increase of the financial assets’ credit risk.
(3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding CombinationFor the financial assets with remarkably different credit risk, the Company shall separately evaluate its credit risk, including thereceivables from related parties, receivables involved in any dispute with the other party or any lawsuit and arbitration, andreceivables with obvious evidence showing that the debtor cannot fulfill the due payment obligation etc.Except for the financial assets whose credit risk shall be separately evaluated, the Company shall divide these financial assets intodifferent combinations based on the specific risk features, on which basis, corresponding credit risks can be evaluated.
(4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period, the Company shall calculate the expected credit losses of various financial assets. If the expected credit lossis higher than the carrying amount of its current impairment provision, the difference shall be recognized as the impairment loss; iflower, the difference shall be recognized as the gain from the impairment.
(5) Methods for Determining the Credit Loss of Various Financial Assets
Accounts receivable and other receivablesFor accounts receivable and contract assets excluding significant financing composition, the Company shall measure the provision forloss according to the specific expected credit loss amount within the entire period of existence.For accounts receivable, contract assets and lease payment receivable including significant financing composition, the Company shallalways measure the provision for loss according to the specific expected credit loss amount within the period of existence.
Item Basis for determinaReceivables within consolidation scope
Receivables among subsidiaries within the Company’s consolidation scopeAging group
Accounts receivable except for the accounts receivable in the consolidation scope
which had not been impaired after the independent
Accounts receivable except for the accounts receivable in the consolidation scopetest, and the Company analyzed
test, and the Company analyzedand recognized the ratio of the withdrawal of the bad debt provision combined
and recognized the ratio of the withdrawal of the bad debt provision combinedwith the current situation and based on the actual losses rate of the accounts
receivable group which possessed the similar credit risk characteri
with the current situation and based on the actual losses rate of the accountsstics divided
according to the aging phase that were the same as or similar to the previous years
stics divided
11. Notes Receivable
In accordance with policies governing accounts receivable.
12. Accounts Receivable
(1) Accounts Receivable with Significant Single Amount for Which the Bad Debt Provision is MadeIndividuallyJudgement
basis or monetary standards of provisionfor bad debts of the individually significant accounts
receivable
Recei
for bad debts of the individually significant accountsvables with the amount of more than RMB2 million (including RMB2
million) should recognize as the receivables with significant single amount.
vables with the amount of more than RMB2 million (including RMB2Method of individual provision for bad debts of the
individually significant accounts receivable
The Company made
Method of individual provision for bad debts of thean independent impairment test on receivables with
an independent impairment test on receivables withsignificant single amounts; the financial assets without impairment by
significant single amounts; the financial assets without impairment byindependent impairment test should be included in financial assets portfolio
with similar credit risk to take the impairment test. Re
independent impairment test should be included in financial assets portfolioceivables was recognized
ceivables was recognizedwith impairment should no longer be included in receivables portfolio with
similar credit risk to take the impairment test.
(2) Accounts Receivable Which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
Name of portfolios Withdrawal method of bad debt provision
with impairment should no longer be included in receivables portfolio with
Portfolios 1 (accounts receivable among the companies within the consolidated scope
of the Group)
Other methodPortfolios 2 (accounts receivable except for the accounts receivable in t
Portfolios 1 (accounts receivable among the companies within the consolidated scopehe
heconsolidation scope which had not been impaired after the independent test, and the
consolidation scope which had not been impaired after the independent test, and theCompany analyzed and recognized the ratio of the withdrawal of the bad debt
Company analyzed and recognized the ratio of the withdrawal of the bad debtprovision combined with the current situation and based on the actual losses rate of
the acco
provision combined with the current situation and based on the actual losses rate ofunts receivable group which possessed the similar credit risk characteristics
unts receivable group which possessed the similar credit risk characteristicsdivided according to the aging phase that were the same as or similar to the previous
years)
Aging analysis method
In the groups, adopting aging analysis method to withdraw bad debt provision:
Age
Withdrawal proportion for accounts
receivable
Withdrawal proportion for other
receivablesWithin 1 year (including 1 year) 3.00% 3.00%1-2 years 10.00% 10.00%2-3 years 30.00% 30.00%3-4 years 50.00% 50.00%4-5 years 80.00% 80.00%Over 5 years 100.00% 100.00%In the groups, adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, adopting other methods to withdraw bad debt provision:
√ Applicable □ Not applicable
Name of portfolios
Withdrawal proportion for accounts
receivable
Withdrawal proportion for other
receivablesPortfolio 1 0.00% 0.00%
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is MadeIndependently
Reason of individuallywithdrawing bad debt
provision
The Group made independent impairment test on receivables with i
withdrawing bad debtnsignificant amount but with
special impairment indicated by objective evidence.
nsignificant amount but withWithdrawal method for bad
debt provision
The Company made independent impairment test on receivables with insignificant amount but withthe following characteristics, if any objective evidence shows that the accounts receivable has beenimpaired, impairment loss shall be recognized on the basis of the gap betw
Withdrawal method for badeen the current values of the
future cash flow lower than its book value so as to withdraw provision for bad debts
13. Financing Backed by Accounts Receivable
Not applicable
14. Other Receivables
Recognition method and accounting treatment method of expected credit losses of other receivablesIn accordance with policies governing accounts receivable.
15. Inventory
Is the Company subject to any disclosure requirements for special industries?No
(1) Classification
Inventories include raw materials, revolving materials, stock products, land intended to develop, development products inconstruction (development costs), completed development products and development products intended to sell but rent temporarily,and etc. the costs of development products include land-transferring fees, expenditures of basic supporting facilities and buildinginstallation engineering, borrowing costs incurred before the completion of development project, and other related costs in theprocess of the development. When the inventories are delivered, the actual costs shall be recognized by specific identification.
(2) Valuation method of inventories acquiring and issuing
Inventories shall be priced at actual cost when acquired, and they shall be initially measured at costs. When inventories are delivered,the materials are priced by weighted average costs, and development products are priced by specific identification.
(3) Basis for determining net realizable value of inventories and provision methods for decline in value of inventoriesNet realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the
estimated costs necessary to make the sale and relevant taxes. Net realizable value is determined on the basis of clear evidenceobtained, and takes into consideration the purpose of holding inventories and effect of post balance sheet events.At the balance sheet date, inventories are measured at the lower of the cost and net realizable value. If the net realizable value isbelow the cost of inventories, a provision for decline in value of inventories is made. The provision for inventories decline in value isdetermined by the difference of the cost of individual item less its realizable value. For inventory that has large quantity and low unitprice, the provision for inventory devaluation is provided for based on categories of the inventory. For inventory related to theproducts manufactured and sold in the same district, with same or similar use or purpose, and difficult to account for separately fromother items, the provision for inventory devaluation is provided for on a consolidated basis.After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be writtendown below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original provision fordecline in value is reversed and the reversal is included in profit or loss for the period.
(4) The perpetual inventory system is maintained for stock system
(5) Amortization method of the low-value consumption goods and packing articles
(6) Accounting Method Applied to Lands for Development
For pure land development projects, all resulting costs and expenses shall individually constitute the land development costs;For projects linked with the real estate for overall development, when the party supposed to assume all resulting expenses can bedefined, such expenses shall be amortized into the commercial housing costs based on the actual area.
(7) Accounting of Costs of Public Facilities
It shall be calculated into the work in progress based on the actual completion cost (if the corresponding public facilities have notbeen completed when the real estate project is completed, it will be included in the completed development products according to theestimated cost); if a supporting facility can benefit from multiple supporting real estate projects and the developed products are of thesame type, it shall be apportioned according to the saleable area; if a supporting facility can benefit from multiple supporting realestate projects and the developed products are not of the same type (for example, common residence and villas are developed at thesame time), it shall be apportioned according to the floor space ratio.
(8) Accounting Method of Maintenance Fund
For the Company’s property management business, the public maintenance fund received from the owners under the Company’smanagement shall be included in the long-term account payable specially used for the maintenance and renewal of public facilities inthe residential common facilities and property management areas.
(9) Accounting Method of Quality Guarantee Deposit
It shall be included in the completed development product costs based on the amount stipulated in the contract, and calculated intothe accounts payable for future actual payment after the guarantee period expires.
16. Contract Assets
Not applicable
17. Contract Costs
Not applicable
18. Assets Held for Sale
The Company classifies an asset into held-for-sale when its book value is mainly recovered by selling (including the exchanges of
non-monetary assets with commercial substance) instead of a non-current asset or disposal group. Specific standards aresimultaneously satisfying the following conditions: A asset or disposal group can be sold immediately under current conditions basedon the practice of selling such assets or disposal groups in similar transactions; the Company has already made a resolution on saleplan and obtained a confirmed purchase commitment; and the sale is expected to will be completed within one year. A disposal grouprefers to a group of assets that are disposed of together as a whole by sale or other means in a transaction and the liabilities directlyrelated to these assets transferred in the transaction. Where the asset group or combination of asset groups to which a disposal groupbelongs apportions the goodwill acquired in the business combination in accordance with the "Accounting Standards for EnterprisesNo. 8 - Asset Impairment", the disposal group shall include the goodwill allocated to it.When the Company initially measures or re-measures on the balance sheet date the non-current assets and disposal groups classifiedas held-for-sale, If the book value is higher than the fair value minus the net amount of the sale costs, the book value will be writtendown to the net amount of fair value minus the sale costs, and the amount written down will be recognized as impairment loss ofassets and included in the current profit and loss, and provision for impairment of held-for-sale assets will be made at the same time.For the confirmed amount of impairment loss of assets of the disposal groups held for sale, the book value of goodwill of the disposalgroups will be offset first, and then the book value of various non-current assets applicable to the measurement of AccountingStandards for Business Enterprises No. 42 - Non-current Assets and Disposal Groups Held for Sale and Termination of Operations(hereinafter referred to as “Held for sale standards”) in the disposal groups will be offset according to the proportions. If the netamount that the fair value of the disposal groups held for sale on the follow-up balance sheet date minus the sale costs increases, theprevious written-down amount will be restored, and reversed to the asset impairment loss confirmed after the assets being classifiedas held-for-sale. The reversed amount will be included in the current profit or loss. And its book value shall be increasedproportionately to the proportion of the book value of various non-current assets measured by the disposal group in addition togoodwill applicable to the measurement of held-for-sale norms; The book value of deducted goodwill and the non-current assetsapplicable to the measurement of held-for-sale norms will not be reversed if the asset impairment loss is recognized before it isclassified as held for sale.Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or amortization. Interestand other expenses of liabilities in the disposal group held for sale will be confirmed as before.When a non-current asset or disposal group ceases 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 book value before being classified as held for sale will be adjustedaccording to the depreciation, amortization or impairment that would have been recognized under the assumption that it was notclassified as held for sale; (2) The recoverable amount.
19. Investments in Debt Obligations
Not applicable
20. Other Investments in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
The long-term equity investments of this part refer to the long-term equity investments that the Company has control, joint control orsignificant influence over the investees. The long-term equity investment that the Company does not have control, joint control orsignificant influence over the investees, should be recognized as available-for-sale financial assets or be measured by fair value withthe changes should be included in the financial assets accounting of the current gains and losses, and please refer the details of theaccounting policies to Notes IV. 10 “Financial instrument”Joint control, refers to the control jointly owned according to the relevant agreement on an arrangement by the Company and therelevant activities of the arrangement should be decided only after the participants which share the control right make consensus.Significant influence refers to the power of the Company which could anticipate in the finance and the operation polices of theinvestees, but could not control or jointly control the formulation of the policies with the other parties.
(1) Recognition of investment costs
As for long-term equity investments acquired by enterprise merger, if the merger is under the same control, the share of the bookvalue of the owner’s equity of the merged enterprise, on the date of merger, is regarded as the initial cost of the long-term equityinvestment. The difference between the initial cost of the long-term equity investment and the payment in cash, non-cash assetstransferred as well as the book value of the debts borne by the merging party shall offset against the capital reserve. If the capitalreserve is insufficient to dilute, the retained earnings shall be adjusted. If the consideration of the merging enterprise is that it issuesequity securities, it shall, on the date of merger, regard the share of the book value of the shareholder's equity of the mergedenterprise on the consolidated financial statement of the ultimate control party as the initial cost of the long-term equity investment.The total face value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of thelong-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve isinsufficient to dilute, the retained earnings shall be adjusted. The equities of the combined party which respectively acquired throughmultiple transaction under the same control that ultimately form into the combination of the enterprises under the same control,should be disposed according whether belongs to package deal; if belongs to package deal, each transaction would be executedaccounting treatment by the Company as a transaction of acquiring the control right. If not belongs to package deal, it shall, on thedate of merger, regard the enjoyed share of the book value of the shareholder's equity of the merged enterprise on the consolidatedfinancial statement of the ultimate control party as the initial cost of the long-term equity investment, and as for the differencebetween the initial investment cost of the long-term equity investment and sum of the book value of the long-term equity investmentbefore the combination and the book value of the consideration of the new payment that further required on the combination date,should adjust the capital reserve; if the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The equityinvestment held before the combination date which adopted the equity method for accounting, or the other comprehensive incomeconfirmed for the available-for-sale financial assets, should not have any accounting disposal for the moment.For the long-term investment required from the business combination under different control, the initial investment cost regarded aslong-term equity investment on the purchasing date according to the combination cost, the combination costs shall be the sum of thefair values of the assets paid, the liabilities incurred or assumed and the equity securities issued by the Company. The equities of theacquirees which respectively acquired through multiple transaction that ultimately form into the combination of the enterprises underthe different control, should be disposed according whether belongs to package deal; if belongs to package deal, each transactionwould be executed accounting treatment by the Company as a transaction of acquiring the control right. If not belongs to packagedeal, the sum of the book value of the original held equity investment of the acquirees and the newly added investment cost should beregarded as the initial investment cost of the long-term equity investment that changed to be accounted by cost method. If the originalheld equity is calculated by cost method, the other relevant comprehensive income would not have any accounting disposal for themoment. If the original held equity investment is the financial assets available for sale, its difference between the fair value and thebook value as well as the accumulative changes of the fair value that include in the other comprehensive income, should transfer intothe current gains and losses.
The commission fees for audit, law services, assessment and consultancy services and other relevant expenses occurred in thebusiness combination by the combining party or the purchase party, shall be recorded into current profits and losses upon theiroccurrence.Besides the long-term equity investments formed by business combination, the other long-term equity investments shall be initiallymeasured by cost, the cost is fixed in accordance with the ways of gaining, such as actual cash payment paid by the Company, thefair value of equity securities issued by the Company, the agreed value of the investment contract or agreement, the fair value ororiginal carrying amount of exchanged assets from non-monetary assets exchange transaction, the fair value of the long-term equityinvestments, etc. The expenses, taxes and other necessary expenditures directly related with gaining the long-term equity investmentsshall also be recorded into investment cost. The long-term equity investment cost for those could execute significant influences onthe investees because of appending the investment or could execute joint control but not form as control, should be as the sum of thefair value of the original held equity investment and the newly added investment cost recognized according to the No. 22 ofAccounting Standards for Business Enterprises—Recognition and Measurement of Financial Instrument.
(2) Subsequent measurement and recognition of gains or losses
A long-term equity investment where the investing enterprise has joint control (except for which forms into common operators) orsignificant influence over the investors should be measured by equity method. Moreover, long-term equity investment adopting thecost method in the financial statements, and which the Company has control on invested entity.
Long-term equity investment measured by adopting cost methodThe price of a long-term equity investment measured by adopting the cost method shall be included at its initial investment cost andappend as well as withdraw the cost of investing and adjusting the long-term equity investment. The return on investment at currentperiod shall be recognized in accordance with the cash dividend or profit announced to distribute by the invested entity, except theannounced but not distributed cash dividend or profit included in the actual payment or consideration upon gaining the investment.Long-term equity investment measured by adopting equity methodIf the initial cost of a long-term equity investment is more than the Company's attributable share of the fair value of the investedentity's identifiable net assets for investment, the initial cost of the long-term equity investment may not be adjusted. If the initial costof a long-term equity investment is less than the Company's attributable share of the fair value of the invested entity's identifiable netassets for the investment, the difference shall be included in the current profits and losses and the cost of the long-term equityinvestment shall be adjusted simultaneously.When measured by adopting equity method, respectively recognize investment income and other comprehensive income according tothe net gains and losses as well as the portion of other comprehensive income which should be enjoyed or be shared, and at the sametime adjust the book value of the long-term equity investment; corresponding reduce the book value of the long-term equityinvestment according to profits which be declared to distribute by the investees or the portion of the calculation of cash dividendswhich should be enjoyed; for the other changes except for the net gains and losses, other comprehensive income and the owners’equity except for the profits distribution of the investees, should adjust the book value of the long-term equity investment as well asinclude in the capital reserve. The investing enterprise shall, on the ground of the fair value of all identifiable assets of the investedentity when it obtains the investment, recognize the attributable share of the net profits and losses of the invested entity after itadjusts the net profits of the invested entity. If the accounting policy adopted by the investees is not accord with that of the Company,should be adjusted according to the accounting policies of the Company and the financial statement of the investees during theaccounting period and according which to recognize the investment income as well as other comprehensive income. For thetransaction happened between the Company and associated enterprises as well as joint ventures, if the assets launched or sold notform into business, the portion of the unrealized gains and losses of the internal transaction, which belongs to the Company accordingto the calculation of the enjoyed proportion, should recognize the investment gains and losses on the basis. But the losses of theunrealized internal transaction happened between the Company and the investees which belongs to the impairment losses of thetransferred assets, should not be neutralized. The assets launched by the Company to the associated enterprises or the joint ventures if
could form into business, the long-term equity investment without control right which acquired by the investors, should regard thefair value of the launched business as the initial investment cost the newly added long-term equity investment, and for the differencebetween the initial investment cost and the book value of the launched business, should be included into the current gains and losseswith full amount. The assets sold by the Company to the associated enterprises or the joint ventures if could form into business, thedifference between the acquired consideration and the book value of the business should be included in the current gains and losseswith full amount. The assets purchased by the Company to the associated enterprises or the joint ventures if could form into business,should be accounting disposed according to the regulations of No. 20 of ASBE—Business Combination, and should be recognizedgains or losses related to the transaction with full amount.The Company shall recognize the net losses of the invested enterprise until the book value of the long-term equity investment andother long-term rights and interests which substantially form the net investment made to the invested entity are reduced to zero.However, if the Company has the obligation to undertake extra losses, it shall be recognized as the estimated liabilities in accordancewith the estimated duties and then recorded into investment losses at current period. If the invested entity realizes any net profits later,the Company shall, after the amount of its attributable share of profits offsets against its attributable share of the un-recognized losses,resume recognizing its attributable share of profits.For the long-term equity investment held by the Company before the first execution of the new accounting criterion of the associatedenterprises and joint ventures, if there is debit difference of the equity investment related to the investment, should be included in thecurrent gains and losses according to the amount of the straight-line amortization during the original remained period.Acquiring shares of minority interestIn the preparation for the financial statements, the balance existed between the long-term equity investment increased by acquiringshares of minority interest and the attributable net assets on the subsidiary calculated by the increased shares held since the purchasedate (or combination date), the capital reserves shall be adjusted, if the capital reserves are not sufficient to offset, the retained profitsshall be adjusted.Disposal of long-term equity investmentIn the preparation of financial statements, the Company disposed part of the long-term equity investment on subsidiaries withoutlosing its controlling right on them, the balance between the disposed price and attributable net assets of subsidiaries by disposing thelong-term equity investment shall be recorded into owners’ equity; where the Company losses the controlling right by disposing partof long-term equity investment on such subsidiaries, it shall treated in accordance with the relevant accounting policies in Notes IV. 5.
(2) “Method on preparation of combined financial statements”
For other ways on disposal of long-term equity investment, the balance between the book value of the disposed equity and its actualpayment gained shall be recorded into current profits and losses.For the long-term equity investment measured by adopting equity method, if the remained equity after disposal still adopts the equitymethod for measurement, the other comprehensive income originally recorded into owners’ equity should adopt the same basis of theaccounting disposal of the relevant assets or liabilities directly disposed by the investees according to the corresponding proportion.The owners’ equity recognized owning to the changes of the other owners’ equity except for the net gains and losses, othercomprehensive income and the profits distribution of the investees, should be transferred into the current gains and losses accordingto the proportion.For the long-term equity investment which adopts the cost method of measurement, if the remained equity still adopt the cost method,the other comprehensive income recognized owning to adopting the equity method for measurement or the recognition andmeasurement standards of financial instrument before acquiring the control of the investees, should adopt the same basis of theaccounting disposal of the relevant assets or liabilities directly disposed by the investees and should be carried forward into thecurrent gains and losses according to the proportion; the changes of the other owners’ equity except for the net gains and losses, othercomprehensive income and the profits distribution among the net assets of the investees which recognized by adopting the equitymethod for measurement, should be carried forward into the current gains and losses according to the proportion.
If the Company loses control over the investee due to disposal of partial equity investment, in the preparation of individual financialstatements, if the remaining equity after such disposal can be applied to exercise joint control or exert significant influence on theinvestee, it shall be calculated by using the equity method. The remaining equity shall be deemed to be adjusted by equity methodwhen it is acquired; if the remaining equity after disposal cannot be applied to exercise joint control over or exert significantinfluence on the investee, it shall be calculated according to various provisions related to financial instrument recognition andmeasurement criteria. The difference between the fair value and the book value on the date of loss of control is recognized in profit orloss for the period. Before the Company obtains control over the investee, other comprehensive incomes recognized and calculatedby using the equity method or according to the financial instrument recognition and measurement criteria shall be subject to theaccounting treatment by adopting the same accounting basis with that applied by the investee to directly dispose relevant assets orliabilities when the control over the investee is lost. The changes in the owner’s equity other than the net profit or loss, othercomprehensive income and profit distribution in the net assets of the investee recognized by using the equity method shall be carriedforward into the current profit or loss. Where the remaining equity after disposal is calculated by using the equity method, othercomprehensive incomes and other owner’s equities shall be carried forward on a pro-rata basis; if the remaining equity after disposaladopts corresponding accounting treatment based on the financial instrument recognition and measurement criteria, othercomprehensive incomes and other owner’s equities shall be carried forward.If the Company loses its joint control over or significant influence on the investee due to the disposal of partial equity investment, theremaining equity after disposal shall be subject to the financial instrument recognition and measurement criteria for accounting, andthe difference between the fair value and the book value on the day of loss of joint control or significant influence shall be includedin the current profit and loss. In the original equity investment, other comprehensive incomes recognized by using the equity methodshall be subject to the accounting treatment on the same basis with that applied by the investee to directly dispose related assets orliabilities when the equity method is discontinued for accounting. The owner’s equity recognized due to the changes of other owner’sequities of the investee other than the net profit or loss, other comprehensive incomes and profit distribution shall be all carriedforward to the current income on investment when the equity method is discontinued for accounting.If the Company disposes the equity investment in the subsidiaries step by step by means of multiple transactions till the loss ofcontrol, and such transactions are part of the package transaction, such transactions shall be treated as a transaction in relation to theequity investment of the subsidiary with the lost control right. The difference between the disposal price and the book value of thelong-term equity investment corresponding to the disposed equity before the loss of control shall be firstly recognized as othercomprehensive incomes, and then carried forward to the current profit or loss when the control is lost.
23. Investment Property
Measurement model of investment real estateCosting method measurementDepreciation or amortization methodThe investment real estate refers to the real estate gaining the rent or capital appreciation or both. It includes rented land use right,holding land use right to be transferred after the appreciation and rented building, etc.The investment real estate is measured initially according to the cost. The subsequent expenses related with the investment real estateshall be calculated into the cost of investment real estate if the economic benefit related with the asset may flow in and the cost maybe measured reliably. Other subsequent expenses shall be calculated in the current profits and losses at the occurrence.The Company adopts the cost mode to conduct the subsequent measurement on the investment real estate, depreciates or amortizesaccording to the policy consistent with the house building or land use right.The devaluation test method and devaluation provision method for the investment real estate can be seen in Notes V. 31 “Long-termAsset Devaluation”.When the self-use real estate or stock is converted to the investment real estate or the investment real estate is converted to the
self-use real estate, the book value before the conversion shall be the entry value after the conversion.When the purpose of investment real estate is changed into private use, the investment real estate shall be converted into the fixedassets or intangible assets from the date of change. When the purpose of the self-use real estate is changed for earning rents or forcapital appreciation, the fixed assets or intangible assets shall be converted into the investment real estate from the date of change. Ifit is converted to the investment real estate measured by the cost model, the book value before such conversion shall be used as theentry value after such conversion; if it is converted into the investment real estate measured by the fair value model, the fair value onthe conversion date shall be used as the entry value after such conversion.When the investment real estate is disposed, or out of usage permanently, and it is expected not to get the economic benefit from thedisposal, the confirmation on the investment real estate shall be terminated. The disposal income for the sales, transferring, scrap ordamage of the investment real estate deducing the book value and related tax shall be calculated in the current profits and losses.
24. Fixed Assets
(1) Conditions for Recognition
The term “fixed assets” refers to the tangible assets that simultaneously possess the features as follows: (a) they are held for the sakeof producing commodities, rendering labor service, renting or business management; and (b) their useful life is in excess of one fiscalyear. The fixed assets are only recognized when the relevant economic benefits probably flow in the Company and its cost could bereliable measured. The fixed assets should take the initial measurement according to the cost and at the same time consider theinfluences of the factors of the estimated discard expenses.
(2) Depreciation Methods
Category of fixed assets
Method Useful life Salvage value Annual deprecationHousing and building
Straight-line method 20-25 5-10% 3.8-4.5Transportation vehicle
Straight-line method 5 5% 19Electronic equipments
and others
Straight-line method 5 5% 19Decoration of fixedassets
Straight-line method 5 0% 20The estimated net salvage refers to the amount obtained by the Company from its disposal of the assets by deducting the estimateddisposal expenses based on the assumption that the fixed assets’ estimated service life expires and reaches the predicted status whenits service life expires.The fixed assets impairment test methods and the impairment provision calculating and withdrawing methodPlease refer to Note V. 31 “Long-term Assets Impairment” for the fixed assets impairment test methods and the impairment provisioncalculating and withdrawing method.Subsequent expenses related to the fixed assets, if the economic benefits related to the fixed assets are likely to flow in and their costscan be reliably measured, are included in the cost of fixed assets and the carrying amount of the replaced portion is derecognized.Other subsequent expenditures other than that shall be recognized in the current profit or loss.The fixed asset shall be derecognized when the fixed asset is in disposal or is expected not to generate economic benefits through useor disposal. The difference between the disposal income from the sale, transfer, retirement or damage of the fixed assets less thecarrying amount and related taxes is recognized in profit or loss for the current period.The Company shall review the useful life, estimated net residual value and depreciation method of the fixed assets at least at the end
of the year, and if there is any change, it shall be treated as the changes in accounting estimations.
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance LeaseThe “finance lease” shall refer to a lease that has transferred in substance all the risks and rewards related to the ownership of an asset.Its ownership may or may not eventually be transferred. The fixed assets by finance lease shall adopt the same depreciation policy forself-owned fixed assets. If it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when the leaseterm expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee willobtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter oneof the lease term or its useful life.
25. Construction in Progress
Construction in process is measured at actual cost. Actual cost comprises construction costs, borrowing costs that are eligible forcapitalization before the fixed assets being ready for their intended us and other relevant costs. Construction in process is transferredto fixed assets when the assets are ready for their intended use.See the details of the impairment test method of the impairment provision withdrawal method of the construction in progress to NoteV. 31 “Long-term assets impairment”.
26. Borrowing Costs
Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillary expenses and exchange differencesarising from foreign currency borrowings. The capitalization of borrowing costs, which can be directly attributable to assetacquisition or construction, starts when asset expenditure or borrowing cost are generated, or the asset acquisition or construction islaunched to enable the asset to meet the predefined conditions for use or sale, and ends when the acquired or constructed assetconforming to capitalization conditions meet the predefined conditions for use or sale. The other borrowing costs are recognized asexpenses in the current period.The actual interest expenses incurred in the current period of specific borrowings shall be capitalized by subtracting the interestincome earned by the bank from unused borrowing funds or investment income gained from temporary investment. For generalborrowings, the amount to be capitalized shall be determined based on the weighted average of total asset expenditure exceeding thespecific borrowing multiplied by the capitalization rate of general borrowings. The capitalization rate is determined based on theweighted average interest rate of general borrowings.During the capitalization period, the foreign exchange differences on foreign currency specific borrowings shall be capitalized. Theexchange differences on foreign currency general borrowings shall be included in the current profits and losses.Assets eligible for capitalization refer to assets such as fixed assets, investment real estate and inventory that require a considerableamount of time for acquisition or construction to be ready for use or sale.If the acquisition or construction process of the assets eligible for capitalization is stopped unexpectedly for more than 3 months, thecapitalization of borrowing costs shall be suspended until the asset acquisition or construction resumes.
27. Biological Assets
Not applicable
28. Oil-gas Assets
Not applicable
29. Right-of-use Assets
Not applicable
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
The term “intangible asset” refers to the identifiable non-monetary assets possessed or controlled by enterprises which have nophysical shape.The intangible assets shall be initially measured according to its cost. The costs related with the intangible assets, if the economicbenefits related to intangible assets are likely to flow into the enterprise and the cost of intangible assets can be measured reliably,shall be recorded into the costs of intangible assets; otherwise, it shall be recorded into current profits and losses upon the occurrence.The use right of land gained is usually measured as intangible assets. For the self-developed and constructed factories and otherconstructions, the related expenditures on use right of land and construction costs shall be respectively measured as intangible assetsand fixed assets. For the purchased houses and buildings, the related payment shall be distributed into the payment for use right ofland and the payment for buildings, if it is difficult to be distributed, the whole payment shall be treated as fixed assets.For intangible assets with a finite service life, from the time when it is available for use, the original value shall be amortized bystraight line method during the service life. While the intangible assets without certain service life shall not be amortized.At the end of period, the Company shall check the service life and amortization method of intangible assets with finite service life, ifthere is any change, it shall be regarded as a change of the accounting estimates. Besides, the Company shall check the service life ofintangible assets without certain service life, if there is any evidence showing that the period of intangible assets to bring theeconomic benefits to the enterprise can be prospected, it shall be estimated the service life and amortized in accordance with theamortization policies for intangible assets with finite service life.
(2) Accounting Policy for Internal Research and Development ExpendituresNot applicable
31. Impairment of Long-term Assets
For non-current financial Assets of fixed Assets, projects under construction, intangible Assets with limited service life, investing realestate with cost model, long-term equity investment of subsidiaries, cooperative enterprises and joint ventures, the Company shouldjudge whether decrease in value exists on the date of balance sheet. Recoverable amounts should be tested for decrease in value if itexists. Other intangible Assets of reputation and uncertain service life and other non-accessible intangible assets should be tested fordecrease in value no matter whether it exists.If the recoverable amount is less than book value in impairment test results, the provision for impairment of differences shouldinclude in impairment loss. Recoverable amounts would be the higher of net value of asset fair value deducting disposal charges orpresent value of predicted cash flow. Asset fair value should be determined according to negotiated sales price of fair trade. If nosales agreement exists but with asset active market, fair value should be determined according to the Buyer’s price of the asset. If no
sales agreement or asset active market exists, asset fair value could be acquired on the basis of best information available. Disposalexpenses include legal fees, taxes, cartage or other direct expenses of merchantable Assets related to asset disposal. Present value ofpredicted asset cash flow should be determined by the proper discount rate according to Assets in service and predicted cash flow offinal disposal. Asset depreciation reserves should be calculated on the basis of single Assets. If it is difficult to predict the recoverableamounts for single Assets, recoverable amounts should be determined according to the belonging asset group. Asset group is theminimum asset combination producing cash flow independently.In impairment test, book value of the business reputation in financial report should be shared to beneficial asset group and assetgroup combination in collaboration of business merger. It is shown in the test that if recoverable amounts of shared businessreputation asset group or asset group combination are lower than book value, it should determine the impairment loss. Impairmentloss amount should firstly be deducted and shared to the book value of business reputation of asset group or asset group combination,then deduct book value of all assets according to proportions of other book value of above assets in asset group or asset groupcombination except business reputation.After the asset impairment loss is determined, recoverable value amounts would not be returned in future.
32. Long-term Deferred Expenses
Long-term deferred expenses refer to general expenses with the apportioned period over one year (one year excluded) that haveoccurred but attributable to the current and future periods. And the long-term deferred expense shall be amortized by the straight-linemethod averagely within the benefit period.
33. Contract Liabilities
Not applicable
34. Payroll
(1) Accounting Treatment of Short-term Compensation
The payroll of the Company mainly includes Short-term Compensation, Welfare after Departure, Demission Welfare, and the Welfareof Other Long-term Staff. Among which:
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services and benefits, medicalinsurance premiums, birth insurance premium, industrial injury insurance premium, housing fund, labor union expenditure andpersonnel education fund, non-monetary benefits etc. The short-term compensation actually happened during the accounting periodwhen the active staff offering the service for the Company should be recognized as liabilities and is included in the current gains andlosses or relevant assets cost. Of which the non-monetary benefits should be measured according to the fair value.
(2) Accounting Treatment of the Welfare after Departure
Welfare after demission mainly includes basic endowment insurance and unemployment insurance and annuity, and welfare plansafter demission include setting drawing plan. Where the setting drawing plan is adopted, the corresponding payable and depositamount should be included into the relevant assets cost or the current gains and losses when happen. The Company relieves the laborrelation with the employees before the due date of the labor contacts or puts forward the advice of providing the compensation forurging the employees volunteered to receive the downsizing and when the Company could not unilaterally withdraw the demissionwelfare owning to the relieving plan of the labor relation or the downsizing advice, should confirm the liabilities of the employees’
salary from the demission welfare on the earlier day between the cost confirmed by the Company and the cost related to thereorganization of the payment of the demission welfare and includes which in the current gains and losses. But as for the demissionwelfare be estimated that could not be completed paid within 12 months after the end of the annual Reporting Period, should behandled according to the other long-term employee’s salary.
(3) Accounting Treatment of the Demission Welfare
The internal retire plan of the employees should be handled by adopting the same principles of the above demission welfare. TheCompany includes the salary and the paid social insurance charges planed to pay by the personnel retreated inside during the periodfrom the date when ceased the services to the normal retire date in the current gains and losses (demission welfare) when met withthe recognition conditions of the estimated liabilities.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The other long-term welfare that the Company offers to the staffs, if met with the setting drawing plan, should be accountingdisposed according to the setting drawing plan, while the rest should be disposed according to the setting revenue plan.
35. Leasing Liabilities
Not applicable
36. Provisions
The obligation pertinent to contingencies shall be recognized as an estimated debts when the following conditions are satisfiedsimultaneously: That obligation is a current obligation of the enterprise; It is likely to cause any economic benefit to flow outof the enterprise as a result of performance of the obligation; and The amount of the obligation can be measured in a reliable wayOn balance sheet date, given the risks, uncertainty, the time value of money, and other factors pertinent to the contingencies, theestimated debts shall be measured in accordance with the best estimate of the necessary expenses for the performance of the currentobligation.When all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensatedby a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the reimbursementwill be obtained. The amount of compensation is not exceeding the book value of the recognized estimated liabilities.
37. Share-based Payment
Not applicable
38. Other Financial Instruments such as Preferred Shares and Perpetual Capital SecuritiesNot applicable
39. Revenue
Is the Company subject to any disclosure requirements for special industries?No
Has implemented new standards governing revenue or not
□ Applicable √ Not applicable
The revenue of the Group including the commodities sales revenue, labor revenues and the revenues from transferring asset use right.
(1) Selling products
No revenue from selling goods may be recognized unless the following conditions are met simultaneously: the significant risks andrewards of ownership of the goods have been transferred to the buyer by the enterprise; the enterprise retains neither continuousmanagement right that usually keeps relation with the ownership nor effective control over the sold goods; the relevant amount ofrevenue can be measured in a reliable way; the relevant economic benefits may flow into the enterprise; and the relevant costsincurred or to be incurred can be measured in a reliable way.The revenues of the sales of the commodities of the Group were mainly the sales revenues of the commercial residential buildings.The sales of the properties of the Group had executed completion acceptance that had transferred to the buyers or be regarded as hadtransferred to the buyers according to the sales contacts as well as confirmed the realization of the revenues when executing theliquidation of the sales amount of the commercial residential buildings (the mortgage purchase way of the buildings were thereceipted down payment and the bank mortgage amount).
(2) Provide labor income
The labor income provided by the Group mainly comes from property management income, project supervision service income andcatering service income.Property management income: the property management income is realized when the property management service has beenprovided and the service fee as agreed with the owner is able to flow into the enterprise.Other labor income: the labor income is realized when the labor service has been provided and the related economic interest is able toflow into the enterprise and related cost is able to be reliably measured.The outcome of a transaction concerning the providing of labor services can be measured in a reliable way, means that the followingconditions shall be met simultaneously:
The amount of revenue can be measured in a reliable way; The relevant economicbenefits are likely to flow into the enterprise; The costs incurred or to be incurred in the transaction can be measured in a reliableway.If the outcome of a transaction concerning the providing of labor services can’t be measured in a reliable way, the revenue from theproviding of labor services shall be recognized in accordance with the amount of the cost of labor services incurred and expected tobe compensated, and make the cost of labor services incurred as the current expenses. If it is predicted that the cost of labor servicesincurred couldn’t be compensated, thus no revenue shall be recognized.Where a contract or agreement signed between Company and other enterprises concerns selling goods and providing of labor services,if the part of sale of goods and the part of providing labor services can be distinguished from each other and can be measuredrespectively, the part of sale of goods and the part of providing labor services shall be treated respectively. If the part of selling goodsand the part of providing labor services can’t be distinguished from each other, or if the part of sale of goods and the part of providinglabor services can be distinguished from each other but can’t be measured respectively, both parts shall be conducted as sellinggoods.
(3) Income from transferring asset use right
The income from transferring asset use right includes property lease income, and other use right income.Property lease income: the property lease income is realized by the method of straight line as agreed in the lease contract oragreement signed with the leasee. If there are lease periods free of any rent, the lessor shall distribute the total rent, not deducting therent during those periods free of any rent, within the entire lease period by the method of straight line or other reasonable means.During the periods free of any rent, the lessor shall recognize the lease income.Income from other use right: the income from transferring asset use right is recognized when the income amount is able to be reliablymeasured and related economic interest is possible to flow into the enterprise.
(4) Interest income
The interest income is recognized by the duration you use the Company’s monetary capital and the actual interest rate.
40. Government Subsidies
The government subsidy refers to the Company gets the monetary and non-monetary assets for free from the government, excludingthe capital that the government invests as the investor who enjoys the corresponding owner’s equity. It can be divided into theasset-related government subsidy and income-related government subsidy. The government subsidies pertinent to assets mean thegovernment assets that are obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways.The government subsidies pertinent to income refer to all the government subsides except those pertinent to assets. If the governmentsubsidies documents had not definitely confirm the subsidy targets, based on the basic requirements necessary for the subsidies, thegovernment subsidies based on long-term assets formed through purchase and construction and other methods are regarded asgovernment subsidies related to assets. Beyond that, the rest are divided as the government subsidies related to income. If monetarygrants are received, it recognized at actual received or receivable amount. If non-monetary grants are received, it recognized at fairvalue, replacing with nominal amount while fair value is not reliable. Government subsidies measured at nominal amount are directlyrecorded into the current profit and loss.The asset-related government subsidy shall be confirmed as the deferred income, and it shall be calculated into the current profits andlosses by stages in reasonable and systematic way within the service life of related asset. The income-related government subsidy tocompensate the related expense and loss later shall be confirmed as the deferred income, and it shall be calculated in the currentprofits and losses during the period to confirm the related costs or losses; the occurred related costs or losses for compensation shallbe calculated in the current profits and losses directly.For government subsidy including the asset-related government subsidy and the income-related government subsidy at one time,accounting treatment shall be conducted respectively to distinguish the different parts; if it is difficult to distinguish, then it shall beclassified into the income-related government subsidyGovernment subsidies related to routine activities of the Company shall be calculated into other income according to the essence ofeconomic business; government subsidies that have nothing to do with routine activities shall calculated into non-operating income.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Income tax of the current period
On the balance sheet date, for the current income tax liabilities (or assets) of the current period as well as the part formed during theprevious period, should be measured by the income tax of the estimated payable (returnable) amount which be calculated accordingto the regulations of the tax law. The amount of the income tax payable which is based by the calculation of the current income taxexpenses, are according to the result measured from the corresponding adjustment of the pre-tax accounting profit of this year whichin accord to the relevant regulations of the tax law.
(2) Deferred income tax assets and deferred income tax liabilities
The difference between the book value of certain assets and liabilities and their tax assessment basis, as well as the temporarydifference occurs from the difference between the book value of the items which not be recognized as assets and liabilities but couldconfirm their tax assessment basis according to the regulations of the tax law, the deferred income tax assets and the deferred incometax liabilities should be recognized by adopting liabilities law of the balance sheet.No deferred tax liability is recognized for a temporary difference arising from the initial recognition of goodwill, the initialrecognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nortaxable profit (or deductible loss). Besides, no deferred tax assets is recognized for the taxable temporary differences related to theinvestments of subsidiary companies, associated enterprises and joint enterprises, and the investing enterprise can control the time ofthe reverse of temporary differences as well as the temporary differences are unlikely to be reversed in the excepted future. Otherwise,
the Group should recognize the deferred income tax liabilities arising from other taxable temporary difference.No deferred taxable assets should be recognized for the deductible temporary difference of initial recognition of assets and liabilitiesarising from the transaction which is not business combination, the accounting profits will not be affected, nor will the taxableamount or deductible loss be affected at the time of transaction. Besides, no deferred taxable assets should be recognized for thedeductible temporary difference related to the investments of the subsidiary companies, associated enterprises and joint enterprises,which are not likely to be reversed in the expected future or is not likely to acquire any amount of taxable income tax that may beused for making up such deductible temporary differences. Otherwise, the Company shall recognize the deferred income tax assetsarising from a deductible temporary difference basing on the extent of the amount of the taxable income that is likely to be acquiredto make up such deductible temporary differencesFor any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred income tax assetshall be determined to the extent that the amount of future taxable income to be offset by the deductible loss or tax deduction to belikely obtained.On the balance sheet date, the deferred income tax assets and the deferred income tax liabilities shall be measured at the tax rateapplicable to the period during which the assets are expected to be recovered or the liabilities are expected to be settled.The book value of deferred income tax assets shall be reviewed at each balance sheet date. If it is unlikely to obtain sufficient taxableincome to offset against the benefit of the deferred income tax asset, the book value of the deferred income tax assets shall be writtendown. Any such write-down should be subsequently reversed where it becomes probable that sufficient taxable income will beavailable.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.The rest current income tax and the deferred income tax expenses or revenue should be included into current gains and losses exceptfor the current income tax and the deferred income tax related to the transaction and events that be confirmed as other comprehensiveincome or be directly included in the shareholders’ equity which should be included in other comprehensive income or shareholders’equity as well as the book value for adjusting the goodwill of the deferred income tax occurs from the business combination.
(4) Offset of income tax
The current income tax assets and liabilities of the Company should be listed by the written-off net amount which intend to executesthe net amount settlement as well as the assets acquiring and liabilities liquidation at the same time while owns the legal rights ofsettling the net amount.The deferred income tax assets and liabilities of the Company should be listed as written-off net amount when having the legal rightsof settling the current income tax assets and liabilities by net amount and the deferred income tax and liabilities is relevant to theincome tax which be collected from the same taxpaying bodies by the same tax collection and administration department or isrelevant to the different taxpaying bodies but during each period which there is significant reverse of the deferred income assets andliabilities in the future and among which the involved taxpaying bodies intend to settle the current income tax and liabilities by netamount or are at the same time acquire the asset as well as liquidate the liabilities.
42. Lease
(1) Accounting Treatment of Operating Lease
Financial lease is the lease that actually transfers all risks and compensation related to assets ownership, and its ownership maytransfer, or may not transfer. Other lease except financial lease is operating lease.Business of operating leases recorded by the Group as the lesseeThe rent expenses from operating leases shall be recorded by the lessee in the relevant asset costs or the profits and losses of the
current period by using the straight-line method over each period of the lease term. The initial direct costs shall be recognized as theprofits and losses of the current period. The contingent rents shall be recorded into the profits and losses of the current period inwhich they actually arise.Business of operating leases recorded by the Group as the lessorThe rent incomes from operating leases shall be recognized as the profits and losses of the current period by using the straight-linemethod over each period of the lease term. The initial direct costs of great amount shall be capitalized when incurred, and berecorded into current profits and losses in accordance with the same basis for recognition of rent incomes over the whole lease term.The initial direct costs of small amount shall be recorded into current profits and losses when incurred. The contingent rents shall berecorded into the profits and losses of the current period in which they actually arise.
(2) Accounting Treatments of Financial Lease
Business of finance leases recorded by the Company as the lesseeOn the lease beginning date, the Company shall record the lower one of the fair value of the leased asset and the present value of theminimum lease payments on the lease beginning date as the entering value in an account, recognize the amount of the minimum leasepayments as the entering value in an account of long-term account payable, and treat the balance between the recorded amount of theleased asset and the long-term account payable as unrecognized financing charges. Besides, the initial direct costs directlyattributable to the leased item incurred during the process of lease negotiating and signing the leasing agreement shall be recorded inthe asset value of the current period. The balance through deducting unrecognized financing charges from the minimum leasepayments shall be respectively stated in long-term liabilities and long-term liabilities due within 1 year.Unrecognized financing charges shall be adopted by the effective interest rate method in the lease term, so as to calculate andrecognize current financing charges. The contingent rents shall be recorded into the profits and losses of the current period in whichthey actually arise.
43. Other Significant Accounting Policies and Estimates
(1) Measurement of fair value
Fair value refers to the price received from selling any asset or paid for transferring any liability in the orderly transactions that occuron the measurement date of the market participants. The Group should consider the characteristics of the assets or liabilities whenmeasuring the relevant assets or liabilities by fair value; to suppose the transactions of selling or transferring the assets on themeasurement date by the market participants is the orderly transactions under the conditions of the current market; to suppose theorderly transaction of selling or transferring the assets is executing in the market of the relevant assets or liabilities; to suppose thetransaction is executing in the most favorable market of the relevant assets or liabilities if there is no any main market. The Groupadopts the advice used when pricing the assets or liabilities for realizing the maximum of the economy benefits by the marketparticipants.The Group judges the fair value of initial recognition whether is equal to the transaction price according to the characteristics of therelevant assets or liabilities with transaction nature etc.; if the transaction price and fair value is not equal, should include the relevantgains or losses in the current gains and losses except for those stipulated by other relevant ASBE.The Group adopts the assessment technology which adapt to the current conditions with sufficient available data and otherinformation support, and the assessment technology mainly including the market method, equity method and cost method. In theapplication of the assessment technology, the Group should prefer the relevant observable input value and only when the relevantobservable input value could not be required or required the not feasible value, could use the not observable input value.The input value used for the fair value measurement is divided into three levels and the first level of the input value is initially used,then come to the second level and the third one the last. The first level input value is the quotation acquired from the active market of
the same assets or liabilities that had not be adjusted; the second input value is the input value could be directly or indirectly observedof the relevant assets or liabilities except for the first level input value; the third level input value is the not observable input value ofthe relevant assets or liabilities.The Group measures the non-financial assets by fair value by considering the ability of the market participants when using the assetsfor the best purpose for causing the economy benefits or the ability to sell the assets to the other market participants which can usethem with the best purpose for causing the economy benefits. The Group supposes to transfer the liabilities to other marketparticipants on the measurement date and the liabilities would be continue to exist after the transfer as well as to be as the marketparticipants of the transferees to execute the obligation when measuring the liabilities by fair value. The Group supposes to transferthe self equity instruments to other market participants on the measurement date and the self equity instruments would be continue toexist after the transfer as well transferees as to acquire the relevant rights and to undertake the relevant obligations as the marketparticipants of the s.
(2) Termination of operation
Termination of operation refers to a separately identifiable constituent part that satisfies one of the following conditions that has beendisposed of by the Company or is classified as held-for-sale: This constituent part represents an independent main business or aseparate main business area. This constituent part is part of an associated plan that is intended to be disposed of in an independentmain business or a separate major business area. This constituent part is a subsidiary that is specifically acquired for resale.For details of accounting arrangement method of termination of operation, see relevant descriptions of Note IV. 12 Assets Held forSale and Disposal Group
(3) Segmental report
The Group recognizes the operating segments according to the internal organization structure, the management requirements and theinternal report system and recognizes the reporting segments and discloses the segmental information according base on theoperating segments.Operating segments refer to the compose parts of the Group which meet with the following conditions at the same time: (1). thecompose part could cause revenues and expenses in the daily activities; (2). the management layer could periodically evaluate theoperation results of the compose part and base which to distribute the resources and evaluate the performance; (3). the Group couldacquire the relevant accounting information of the financial conditions, operation results and the cash flows of the compose part. Iftwo or more operating segments own the similar economy characteristics and meet with certain conditions, could be combining as anoperating segment.
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 Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMBItem 31 December 2018 1 January 2019 AdjustedCurrent assets:
Monetary capital3,389,234,357.72
3,389,234,357.72
Settlement reserve 0.00
Interbank loans granted
Trading financial assets
0.00
Financial assets at fairvalue through profit or loss
0.00
value through profit or loss
| Derivative financial assets | |||
Notes receivable
Accounts receivable 64,231,267.94
64,231,267.94
Financing backed byaccounts receivable
Prepayments 35,913,164.32
35,913,164.32
Premiums receivable
Reinsurance receivables
contract reserve
| Receivable reinsurance | ||||||
Other receivables24,428,411.19
24,428,411.19
Including: Interestreceivable
8,293,317.33
8,293,317.33
Dividendsreceivable
0.00
Financial assets
under resale agreements
| purchased | ||||||
Inventories 1,181,762,531.67
1,181,762,531.67
Contract assets
for sale
0.00
| Assets classified as held | ||||||
non-current assets
| Current portion of | ||||||
Other current assets16,694,408.12
16,694,408.12
Total current assets 4,712,264,140.96
4,712,264,140.96
Non-current assets:
Loans and advances tocustomers
Investments in debtobligations
Available-for-
assets
3,621,381.11
| sale financial | ||||
-3,621,381.11
Investments in other debtobligations
0.00
Held-to-maturityinvestments
Long-term receivables
Long-
investments
39,999,283.24
| term equity | ||
39,999,283.24
instruments
Investments in other equity
Other non-
assets
0.00
| current financial | ||
3,621,381.11
3,621,381.11
Investment property 400,550,689.90
400,550,689.90
Fixed assets32,612,592.40
32,612,592.40
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense
Goodwill
Long-
expense
2,398,576.29
| term prepaid | ||
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 assets1,107,937,996.58
1,107,937,996.58
Total assets 5,820,202,137.54
5,820,202,137.54
Current liabilities:
Short-term borrowings
bank
0.00
| Borrowings from central | ||||||
Interbank loans obtained 0.00
| Trading financial liabilities | |||
value through profit or loss
Financial liabilities at fair
liabilities
| Derivative financial | ||||||
Notes payable
Accounts payable398,429,855.96
398,429,855.96
Advances from customers
265,338,215.34
265,338,215.34
Financial assets sold underrepurchase agreements
Customer deposits andinterbank deposits
of securities
0.00
| Payables for acting trading | ||||||
Payables for underwriting
of securities
0.00
Payroll payable 96,069,521.54
96,069,521.54
Taxes payable1,552,720,630.59
1,552,720,630.59
Other payables 112,502,146.69
112,502,146.69
Including: Interestpayable
1,669.10
1,669.10
Dividendspayable
29,642.40
29,642.40
Handling charges andcommissions payable
Reinsurance payables
Contract liabilities
Liabilities directlyassociated with assets
classified as held for sale
0.00
| associated with assets | |||
non-current liabilities
| Current portion of | ||||||
Other current liabilities
Total current liabilities 2,425,060,370.12
2,425,060,370.12
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 1,000,000.00
1,000,000.00
Bonds payable
shares
| Including: Preferred | ||||||
Perpetualbonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
liabilities
5,275.60
Deferred income tax
5,275.60
Other non-
liabilities
52,937,180.81
| current | ||
52,937,180.81
Total non-current liabilities 53,942,456.41
2,247,072,354.82
Total liabilities 2,479,002,826.53
5,697,229,774.68
Owners’ equity:
Share capital 595,979,092.00
595,979,092.00
Other equity instruments
shares
| Including: Preferred | ||||||
Perpetualbonds
Capital reserves118,938,132.89
118,938,132.89
Less: Treasury stock 0.00
income
-1,786,181.69
| Other comprehensive | ||
-1,786,181.69
Specific reserve
Surplus reserves 299,569,569.96
299,569,569.96
General reserve
Retained earnings 2,325,248,711.48
2,325,248,711.48
Total equity attributable toowners of the Company as
the parent
3,337,949,324.64
| owners of the Company as | |
3,337,949,324.64
Non-controlling interests 3,249,986.37
3,249,986.37
Total owners’ equity3,341,199,311.01
3,341,199,311.01
Total liabilities and owners’equity
5,820,202,137.54
5,820,202,137.54
Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments (CK[2017]No.7), the Accounting Standards for Business Enterprises No. 23 – Transfer ofFinancial 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) and required companies listed domestically to implement new financial instrument standards since 1 January 2019.On 15 June 2018, the Ministry of Finance issued the Notice on Revising and Issuing Formats of 2018 Financial Statements forGeneral Enterprises (CK[2018]No.15) (hereinafter referred to as “CK[2018]No.15” and required non-financial enterprises carryingout accounting standards for business enterprises to prepare financial statements in line with the revised formats of financialstatements for general enterprises (applicable to companies which have implemented new standards governing financial instrumentsor revenue).The adjustments made as required by aforesaid notice and accounting standards for business enterprises are as follows:
1. In accordance with new standards governing financial instruments, the Company adjusted original “available-for-sale financialassets” to “other non-current financial assets”.
2. The method of withdrawing provision for impairment of financial assets was adjusted from “incurred loss method” to “expectedloss method”.
3. In accordance with the link up provision of new standards governing financial instruments, it is unnecessary for the Company torestate comparative data of prior years and the difference adjustment amount between original standards and new standards on thefirst execution date is recorded into beginning retained earnings of 2019 or other comprehensive income.Balance Sheet of the Company as the Parent
Unit: RMBItem 31 December 2018 1 January 2019 AdjustedCurrent assets:
Monetary capital 2,520,788,994.16
2,520,788,994.16
Trading financial assets
0.00
0.00
Financial assets at fairvalue through profit or loss
value through profit or loss
0.00
| Derivative financial assets | |
0.00
Notes receivable 0.00
0.00
Accounts receivable1,853,494.72
1,853,494.72
accounts receivable
| Financings backed by | ||||||
Prepayments 829,683.68
829,683.68
Other receivables1,306,715,826.93
1,306,715,826.93
Including: Interestreceivable
8,229,503.58
8,229,503.58
Dividendsreceivable
0.00
0.00
Inventories 105,840,115.24
105,840,115.24
Contract assets
for sale
Assets classified as held
non-current assets
0.00
| Current portion of | ||
0.00
Other current assets 0.00
0.00
Total current assets3,936,028,114.73
3,936,028,114.73
Non-current assets:
Investments in debtobligations
Available-for-
assets
3,851,881.11
| sale financial | ||||
-3,851,881.11
Investments in other debtobligations
Held-to-maturityinvestments
0.00
Long-term receivables 0.00
0.00
Long-
investments
239,501,956.17
| term equity | ||
239,501,956.17
instruments
| Investments in other equity | ||||||
Other non-
assets
0.00
current financial
3,851,881.11
3,851,881.11
Investment property317,313,917.65
317,313,917.65
Fixed assets 9,121,637.65
9,121,637.65
Construction in progress
0.00
0.00
Productive living assets 0.00
0.00
Oil and gas assets
0.00
0.00
Right-of-use assets
Intangible assets
0.00
0.00
R&D expense 0.00
0.00
Goodwill
0.00
0.00
Long-
expense
778,392.57
| term prepaid | ||
778,392.57
Deferred income tax assets
315,888,967.26
315,888,967.26
Other non-current assets104,132,920.00
104,132,920.00
Total non-current assets 990,589,672.41
990,589,672.41
Total assets4,926,617,787.14
4,926,617,787.14
Current liabilities:
Short-term borrowings
0.00
0.00
0.00
| Trading financial liabilities | |
0.00
| Financial liabilities at fair | |||
value through profit or loss
Derivative financial
liabilities
| Derivative financial | ||||||
Notes payable 0.00
0.00
Accounts payable 124,501,464.28
124,501,464.28
Advances from customers
75,895,087.75
75,895,087.75
Contract liabilities
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
54,376,657.71
Including: Interestpayable
0.00
0.00
Dividendspayable
29,642.40
29,642.40
Liabilities directlyassociated with assets
classified as held for sale
| associated with assets | |||
non-current liabilities
| Current portion of | ||||||
Other current liabilities
170,499,322.60
Total current liabilities1,858,885,730.38
1,858,885,730.38
Non-current liabilities:
Long-term borrowings 0.00
0.00
Bonds payable 0.00
0.00
shares
0.00
| Including: Preferred | ||
0.00
Perpetualbonds
0.00
0.00
Long-term payables
Long-term payroll payable
0.00
0.00
Provisions
Deferred income
0.00
0.00
liabilities
0.00
| Deferred income tax | ||
0.00
Other non-
liabilities
0.00
| current | ||
0.00
Total non-current liabilities 0.00
0.00
Total liabilities 0.00
0.00
Owners’ equity: 1,858,885,730.38
1,858,885,730.38
Share capital
Other equity instruments
595,979,092.00
595,979,092.00
shares
| Including: Preferred | ||||||
Perpetualbonds
Capital reserves
Less: Treasury stock 92,326,467.62
92,326,467.62
income
0.00
| Other comprehensive | ||
0.00
Specific reserve 0.00
0.00
Surplus reserves
General reserve 298,912,759.52
298,912,759.52
Retained earnings2,080,513,737.62
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:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments (CK[2017]No.7), the Accounting Standards for Business Enterprises No. 23 – Transfer ofFinancial 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) and required companies listed domestically to implement new financial instrument standards since 1 January 2019.On 15 June 2018, the Ministry of Finance issued the Notice on Revising and Issuing Formats of 2018 Financial Statements forGeneral Enterprises (CK[2018]No.15) (hereinafter referred to as “CK[2018]No.15” and required non-financial enterprises carryingout accounting standards for business enterprises to prepare financial statements in line with the revised formats of financialstatements for general enterprises (applicable to companies which have implemented new standards governing financial instrumentsor revenue).The adjustments made as required by aforesaid notice and accounting standards for business enterprises are as follows:
1. In accordance with new standards governing financial instruments, the Company adjusted original “available-for-sale financialassets” to “other non-current financial assets”.
2. The method of withdrawing provision for impairment of financial assets was adjusted from “incurred loss method” to “expectedloss method”.
3. In accordance with the link up provision of new standards governing financial instruments, it is unnecessary for the Company torestate comparative data of prior years and the difference adjustment amount between original standards and new standards on thefirst execution date is recorded into beginning retained earnings of 2019 or other comprehensive income.
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any NewStandards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
45. Other
Significant Accounting Adjustment and EstimatesDue to the internal uncertainty of operating activities, the Company needs to make judgments, estimates and assumptions forcarrying amounts of statement items that can’t be measured accurately during the process of applying accounting policies. Suchjudgments, estimates and assumptions are made on the basis of the past experience of Company’s management staffs and on theconsideration of other relevant factors. Such judgments, estimates and assumptions have effect on reporting amount of incomes,expense, assets and liabilities, as well as disclosure of contingent liabilities on the balance sheet date. However, the uncertainty ofsuch estimates may results in major adjustments of carrying amounts of assets or liabilities that will be influenced in future.The Company shall have a check on the aforesaid judgments, estimates and assumptions at fixed intervals on the basis of sustainableoperation. As for the change in accounting estimates that only effects on the current period of the change, the affected amount thereofshall be recognized at current period of the change. As for accounting estimates that effects on both the current period of the changeand future periods, the affected amount thereof shall be recognized at current period of the change and future periods.On balance sheet date, major fields requiring judgments, estimates and assumptions on amounts of financial statement items by theCompany are as follows:
(1) Classification of leases
In line with rules in Accounting Standards for Enterprises No. 21 – Leases, the Company classifies leases into operating leases andfinance leases. Upon the classification, the management staffs need to make analysis and judgments on whether to essentially transferall risks and remuneration relating to the ownership of leased-out assets to the lessee, or whether the Company has essentiallyundertaken all risks and remuneration relating to the ownership of leased-in assets.
(2) Withdrawal of bad debt provisions
The Company shall, in accordance with accounting policies of receivables, calculate bad debt provisions by adopting allowancemethod. Impairment of accounts receivable is based on the assessment of the recovery of accounts receivable. Identification ofimpairment of accounts receivable requires judgments and estimates by management staffs. The difference between actual outcomesand originally estimated outcomes, which will influence the carrying amount of accounts receivable and bad debt provisions thereofin the estimated period of the change, shall be withdrawn or reversed.
(3) Inventory depreciation reserves
The Company shall calculate whichever is lower between the cost and realizable net value in light of inventory accounting policies.As for inventories of which the cost is higher than the realizable net value and inventories which are obsolete and unsalable inventorydepreciation reserves shall be withdrawn. Impairment of inventories to realizable net value is based on the assessment of themarketing of inventories and realizable net value thereof. Identification of inventory impairment requires well-established evidencesby management staffs, as well as judgments and estimates based on consideration of the purpose of holding inventories and otherfactors such as events occurring after the date of balance sheet. The difference between actual outcomes and originally estimatedoutcomes, which will influence the carrying amount of inventories and inventory depreciation reserves in the estimated period of thechange, shall be withdrawn or reversed.
(4) Fair values of financial instruments
As for financial instruments not existing in active trading market, the Company shall determine their fair values by all kinds ofassessment methods, which include model analysis of discounted cash flow and etc. During the assessment, the Company needs to
assess for respects such as future cash flows, credit risks, market volatility, correlation, and choose appropriate discount rate. Suchrelated assumptions have uncertainty, of which the change will effect on fair values of financial instruments.
(5) Impairment of financial assets available for sale
To a large extent, whether the impairment of financial assets available for sale is recognized or not relies on the judgments andassumptions of the management staffs. In that way, the Company shall be certain about whether to recognize impairment losses offinancial assets available for sale in the profit statement. During the process of making judgments and assumptions, the Companyneeds to evaluate how much the fair value of such investment is less than its cost, how long such investment will last, and thefinancial condition and short-term business outlook of the invested parties, which include industry status, technology transform,credit rating, default rate and risks from the opposite parties.
(6) Impairment provisions for long-term assets
The Company shall judge whether there is sign of impairment of non-current assets other than financial assets on balance sheet date.Intangible assets with uncertain service lives, besides being conducted with annual impairment test every year, have to acceptimpairment tests when there is sign of impairment. Other non-current assets except for financial assets have to accept impairmenttests when there is sign indicating the carrying amount thereof is unrecoverable.When the carrying amounts of the asset or group assets are higher than the recoverable amounts, namely whichever is higher betweenthe net amount through deducting disposal charges from the fair value and the present value of the estimated future cash flow,impairment occurs.The net amount of the fair value of an asset minus the disposal expenses shall be determined in light of the amount of the basis of theprice as stipulated in the sales agreement or the observable market price in the fair transaction minus the incremental cost directlysubject to the disposal of the asset.When estimating present value of future cash flows, it is necessary to make significant judgments on characters of the asset or assetgroup, such as output, sales price, related operating costs, and discount used to calculate the present value. When estimatingrecoverable amount, the Company shall adopt all relevant materials that can be required, including estimates relating to output, salesprice and relevant operating costs judged by rational and supportable assumptions.The Company tests whether there is impairment of good will at least for every year, which requires itself to estimate the present valueof the future cash flow of group assets or combination of group assets. When estimating the present value of the future cash flow, theCompany needs to estimate the cash flow arising from future group assets or combination of group assets, and at the same timechoose appropriate discount rate to determine the present value of the future cash flow.
(7) Depreciation and amortization
Upon consideration on the salvage value of investment real estates, fixed assets and intangible assets, the Company shall withdrawdepreciation and amortization by straight-line method over their service lives. The Company checks on service lives at fixed intervals,so as to determine the amounts of depreciation expenses and amortization expenses at each period. Service lives are confirmed inaccordance with the past experience on similar assets of the Company, along with renewed technology of expectation. If anysignificant change occurred to previous estimated, depreciation expenses and amortization expenses will be adjusted in future period.
(8) Deferred income tax assets
In a limit providing large possibility of offset losses from sufficient taxable profits, the Group shall recognize deferred income taxassets in line with all unused tax losses, which requires management staffs of the Group to estimate the time when future taxableprofits occurs and the amount thereof by applying plenty of judgments and combining tax planning strategies, so as to determine theamount of the recognizable deferred income tax assets.
(9) Income taxes
There’s certain uncertainty of disposal and calculation of taxes of partial transactions in normal operating activities. It is uncertainwhether some pre-taxed items can set aside the approvals by tax authorities or not. If there are differences between the ultimaterecognition outcomes and the originally estimated amounts of such tax issues, then such differences shall effect on the current
income tax and deferred income tax during the ultimate recognition period.VI Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rateVAT Operating revenue For details, see 3. Other of this sectionUrban maintenance and construction tax Turnover tax payable
Applied to 7%, 1% separately according tothe regional levelEnterprise income tax Taxable income 15%20%16.5%25%Education surcharge Taxable income
Paid according to 3% of the actual paidturnover taxLocal education surcharge Taxable income
Paid according to 2% of the actual paidturnover taxLand value appreciation tax
Added amount from transfer of realproperty
Four progressive levels with the tax rateranging from 30% to 60% of transferringreal estate added valueNotes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Management Co., Ltd.
15%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 Structure Adjustment (Y2011), the western industry met with the conditions should be collected thecorporate income tax according to 15% of the tax rate. The subsidiary of the Group Chongqing Shenzhen International Trade CenterProperty Management Co., Ltd. had be regarded as the western enterprise of the property service by Local Taxation Bureau ofChongqing Jiulong District on 4 May 2014, and had be collected the corporate income tax according to 15% of the tax rate.According to the regulations of the notice of the income tax preferential policies of the small low-profit enterprises issued by SAT ofCS [2015] No. 34, from 1 January 2017 to 31 December 2019, as for those small low-profit enterprises with the annual after-taxamount lower than RMB0.2 million (including RMB0.2 million), of which 50% of the revenues should be included into the taxableincome and should be collected the corporate income tax according to 20% of the tax rate. The subsidiary of the Company,Chongqing Aobo Elevator Co., Ltd, has applied to this policy since 2017, which 50% of the revenues is included into the taxableincome and is collected the corporate income tax according to 20% of the tax rate.
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 ofSales 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 Capital
Unit: RMBItem Ending balance Beginning balanceCash on hand 130,986.09
176,193.08
Bank deposits 2,605,108,368.38
3,375,538,497.01
Other monetary capital 14,087,347.44
13,519,667.63
Total 2,619,326,701.91
3,389,234,357.72
overseas
53,456,002.11
| Of which: the total amount deposited | ||
52,976,296.80
Other notes:
Note: on 30 June 2019, the monetary capital with restricted ownership of the Company was of RMB14,087,347.44, for details, seePart IV-4-3.
2. Trading Financial Assets
Unit: RMBItem Ending balance Beginning balanceOf which:
Of which:
Total 0.00
Other notes:
3. Derivative Financial Assets
Unit: RMBItem Ending balance Beginning balance
Other notes:
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMBItem Ending balance Beginning balance
Unit: RMB
Category
Ending balance Beginning balanceCarrying amount
| Bad debt provision | |
Carryingvalue
Carrying amount
Bad debt provision
Carryingvalue
| Amount |
Proportion
Withdrawalproportion
Amount
Proportion
Amount
| Amount |
WithdrawalproportionOf which:
Of which:
Bad debt provision separately accrued:
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportion
Withdrawal reasonBad debt provision withdrawn according to groups:
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportionNotes 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: RMBCategory Beginning balance
Increase/decrease
Ending balance
Withdrawn
Reversed or
collected
VerifiedOf 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: RMBItem 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: RMBItem
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: RMBItem
Amount of the notes transferred to accounts receivable at the
period-endOther notes:
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMBItem AmountOf which, verification of significant notes receivable:
Unit: RMBName of the entity
Nature Amount Reason Procedure
Whether occurredbecause ofrelated-partytransactionsNotes of the verification of notes receivable:
5. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMBCategory
Ending balance Beginning balanceCarrying amount
Bad debt provision
Carryingvalue
Carrying amount
Bad debt provision
CarryingvalueAmount
ProportionAmount
Withdrawal
Amount
ProportionAmount
Withdrawal
proportio
n
proportionAccounts receivablewith single bad debtprovision accrued
100,408,
998.44
54.62%
100,408,
998.44
100.00%
0.00
100,408,9
98.44
59.64%
100,408,9
98.44
100.00%
0.00
Of which:
Accounts receivablewith significantsingle amount withbad debt provisionseparately accrued
99,466,1
73.89
54.11%
99,466,1
73.89
100.00%
99,466,17
3.89
59.08%
99,466,17
3.89
100.00%
0.00
Accounts receivablewith insignificantsingle amount forwhich bad debtprovision separatelyaccrued
942,824.
0.51%
942,824.
100.00%
942,824.5
0.56%
942,824.5
100.00%
0.00
Accounts receivablewith bad debtprovision withdrawnaccording to groups
83,408,2
74.63
45.38%
5,037,73
4.78
6.04%
78,370,53
9.85
67,955,27
7.98
40.36%
3,724,010
.04
5.48%
64,231,267.
Of which:
Aging analysismethod
83,408,2
74.63
45.38%
5,037,73
4.78
6.04%
78,370,53
9.85
67,955,27
7.98
40.36%
3,724,010
.04
5.48%
64,231,267.
Total
183,817,
273.07
100.00%
105,446,
733.22
57.36%
78,370,53
9.85
168,364,2
76.42
100.00%
104,133,0
08.48
61.85%
64,231,267.
Single bad debt provision accrued: 100,408,998.44
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportion
Withdrawal reasonShenzhen JiyongProperties & ResourcesDevelopment Company
93,811,328.05
93,811,328.05
100.00%
Involved in lawsuit andno executable property,and see details in Notes(XIV). 2. (1)Shenzhen Tewei IndustryCo., Ltd.
2,836,561.00
2,836,561.00
100.00%
Uncollectible for a longperiodLunan IndustryCorporation
2,818,284.84
2,818,284.84
100.00%
Poor operatingconditions, uncollectiblefor a long period
100.00%
Total 99,466,173.89
99,466,173.89
-- --Single bad debt provision accrued: 99,466,173.89
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportion
Withdrawal reasonSingle bad debt provision accrued:
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportion
Withdrawal reasonBad debt provision withdrawn according to groups:
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportionSub-item within 1 year
Within 1 year 71,852,711.50
2,155,581.35
3.00%
Subtotal within 1 year 71,852,711.50
2,155,581.35
3.00%
1 to 2 years 7,210,628.67
721,062.87
10.00%
2 to 3 years 1,692,936.87
507,881.06
30.00%
3 to 4 years 1,920,316.29
960,158.15
50.00%
4 to 5 years 193,149.78
154,519.82
80.00%
Over 5 years 538,531.52
538,531.52
100.00%
Total 83,408,274.63
5,037,734.76
--Notes of the basis of recognizing the group:
See Part X Financial Report-V-10 for details.Bad debt provision withdrawn according to groups: 5,037,734.76
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportionNotes of the basis of recognizing the group:
Bad debt provision withdrawn according to groups:
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportionNotes 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: RMBAging Ending balanceWithin 1 year (including 1 year) 2,155,581.35
1 to 2 years 721,062.87
2 to 3 years 507,881.06
3 to 4 years 960,158.15
4 to 5 years 154,519.82
Over 5 years 100,947,529.97
Total 105,446,733.22
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting PeriodBad debt provision withdrawn for the Reporting Period:
Unit: RMBCategory Beginning balance
Increase/decrease
Ending balanceWithdrawn
Reversed orcollected
VerifiedBad debt provision
104,133,008.48
1,313,724.72
105,446,733.22
Total 104,133,008.48
1,313,724.72
105,446,733.22
Of which, bad debt provision reversed or collected with significant amount:
Unit: RMBName of the entity Amount reversed or collected Method
(3) Accounts Receivable with Actual Verification for the Reporting Period
Unit: RMBItem Amount verifiedOf which, verification of significant accounts receivable:
Unit: RMBName of the entity
Nature Amount verified
Reason forverification
Procedure
Whether occurredbecause ofrelated-partytransactionsNotes of the verification of accounts receivable:
Naught
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Name of units Relationship with
the Company
Amount Age limit As % of total accounts receivable
(%)
Resources Development Company
Shenzhen Jiyong Properties &
Not-related 93,811,328.05Over 5 years 51.04%
Alibaba
Internet Technology Co.,
Ltd
Not-related 10,912,833.18Within 1 year 5.94%
| Internet Technology Co., |
Shenzhen Tewei Industry Co., Ltd.
Not-related 2,836,561.00Over 5 years 1.54%
Lunan Industry Corporation
Not-related 2,818,284.84Over 5 years 1.53%
Chongqing Rail Transit (Group) Co.,
Ltd.
Not-related 1,805,967.52Within 1 year 0.98%
| Chongqing Rail Transit (Group) Co., |
Total 112,184,974.59 61.03%
(5) Derecogniziton of Accounts Receivable due to the Transfer of Financial AssetsNot applicable
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofAccounts ReceivableNaughtOther notes:
Naught
6. Financing Backed by Accounts Receivable
Unit: RMBItem Ending balance Beginning balanceIncrease or decrease of financing backed by accounts receivable and changes in fair value thereof
□ Applicable √ Not applicable
If the depreciation reserve for financing backed by accounts receivable was withdrawn in accordance with the general model ofexpected credit losses, the information related to depreciation reserve shall be disclosed by reference to the disclosure method ofother receivables:
□ Applicable √ Not applicable
Other notes:
7. Prepayments
(1) List by Aging Analysis
Unit: RMB
Aging
Ending balance Beginning balanceAmount Proportion Amount ProportionWithin 1 year 121,549,558.18
91.72%
27,130,150.07
75.54%
1 to 2 years 10,459,209.81
7.89%
8,272,467.04
23.04%
2 to 3 years 475,003.40
0.36%
500,503.40
1.39%
Over 3 years 35,543.98
0.03%
10,043.81
0.03%
Total 132,519,315.37
--
35,913,164.32
--
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 of prepayment of real estate projects still not reaching the recognitionof income conditions according to tax law.
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Name of units Ending balance
As % of the total ending balance of the
prepayments (%)Prepayment of taxes 54,998,947.81 41.50%Shenzhen Qianhai High-end Information
Service Co., Ltd.
75,000,000.00 56.60%State Grid Chongqing Electric Power Co., Ltd
450,000.00 0.34%Chongqing Caitong Water Affairs Co., Ltd
300,000.00 0.23%Chongqing Duanshi Garment Industry Co.,
Ltd.
227,825.00 0.17%Total 130,976,772.81 98.84%Other notes:
The balance of prepayment of taxes of the Company are the various prepaid taxes of prepayment of real estate projects still notreaching the recognition of income conditions according to tax law.
8. Other Receivables
Unit: RMBItem Ending balance Beginning balanceInterest receivable 4,348,511.45
8,293,317.33
Dividends receivable 0.00
Other receivables 1,404,927,953.32
16,135,093.86
Total 1,409,276,464.77
24,428,411.19
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMBItem Ending balance Beginning balanceFixed time deposits 4,348,511.45
8,293,317.33
Total 4,348,511.45
8,293,317.33
2) Significant Overdue Interest
Unit: RMBEntity Ending balance Overdue time Overdue reason
Whether occurredimpairment and thejudgment basisOther notes:
Naught
3) Withdrawal of bad debt provision
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable
Unit: RMBItem (or investees) Ending balance Beginning balanceTotal 0.00
2) Significant Dividends Receivable Aged over 1 Year
Unit: RMBItem (or investees) Ending balance Aging Reason
Whether occurredimpairment and thejudgment basis
3) Withdrawal of bad debt provision
□ Applicable √ Not applicable
Other notes:
Naught
(3) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMBNature Ending carrying amount Beginning carrying amountMargin & cash deposit 19,600,290.83
16,118,034.95
Petty cash 2,010,696.43
595,535.66
Payment on behalf 3,004,167.81
1,054,967.78
Intercourse accounts 1,411,483,490.73
28,022,997.15
Other 2,514,549.69
2,769,781.38
Total 1,438,613,195.49
48,561,316.92
2) Withdrawal of Bad Debt Provision
Unit: RMBBad debt provision
Phase I Phase II Phase III
TotalExpected creditlosses in the next 12months
Expected credit losses forthe whole existence period(no credit impairment)
Expected credit losses forthe whole existence period(with credit impairment)
Balance on 1 January2019
13,514,343.51
18,911,879.55
32,426,223.06
Balance of 1 January2019 in the ReportingPeriod
—— —— —— ——
Period
1,259,019.11
| Withdrawn in the Current | ||||||||
14,773,362.62
| Balance on 30 June 2019 | ||
18,911,879.55
33,685,242.17
Changes in carrying amount of provision for loss with significant changes in amount in the Reporting Period
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMBAging Ending balanceWithin 1 year (including 1 year) 181,883.25
1 to 2 years 480,068.01
2 to 3 years 606,963.86
3 to 4 years 1,861,559.88
4 to 5 years 366,704.00
Over 5 years 30,188,063.17
Total 33,685,242.17
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Withdrawal of bad debt provision for the Reporting Period:
Unit: RMBCategory Beginning balance
Increase/decrease
Ending balanceWithdrawn Recovered or reversed
Bad debt provision 32,426,223.06
1,259,019.11
33,685,242.17
Total 32,426,223.06
1,259,019.11
33,685,242.17
Of which, the bad debt provision recovered or reversed with significant amount in the Reporting Period:
Unit: RMB
Name of the entity Reversed or recovered amount MethodNot applicable
4) Other Receivables with Actual Verification in the Reporting Period
Unit: RMBItem Amount verifiedOf which, the verification of significant other receivables:
Unit: RMBName of the entity
Nature Amount verified
Reason forverification
Procedure
Whether occurredbecause ofrelated-partytransactionsNotes of verification of other receivables:
None
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMBName of the entity
Nature Ending balance Aging
Proportion to endingbalance of otherreceivables%
Ending balance ofbad debt provision
Shenzhen XinhaiHoldings Co., Ltd.
Related-party 1,057,899,990.18
Within 1 year 73.54%
0.00
Shenzhen XinhaiRongyao Real EstateDevelopment Co.,Ltd.
Related-party 330,472,932.33
Within 1 year 22.97%
0.00
Shanghai YutongReal estatedevelopment Co.,Ltd.
Non-related party
5,676,000.00
Over 5 years 0.39%
5,676,000.00
HENG YUEDEVELOPMENT(HK) LIMITED
Non-related party
3,271,837.78
Over 5 years 0.23%
3,271,837.78
Shenzhen BanglingShareholdingCooperativeCompany
Non-related party
3,000,000.00
Over 5 years 0.21%
0.00
Total -- 1,400,320,760.29
-- 97.34%
8,947,837.78
6) Accounts Receivable Involving Government Subsidies
Unit: RMBName of the entityProject of governmentEnding balance Aging at period-endEstimated recovering
subsidies time, amount and basis
Not applicable
7) Derecogniziton 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 of Other ReceivablesNot applicableOther notes:
Not applicable
9. Inventories
Has implemented the new standards governing revenue or not
□ Yes √ No
(1) Category of Inventories
Unit: RMBItem
Ending balance Beginning balance
Carrying amount
Falling pricereserves
Carrying value
| Carrying amount | Carrying amount | ||
Falling pricereserves
Carrying value
Raw materials 1,260,549.65
489,471.79
771,077.86
1,306,660.68
489,471.79
817,188.89
Inventory good 38,758.22
38,758.22
54,416.03
54,416.03
R&D expenses
3,494,841,653.24
6,648,404.13
3,488,193,249.11
740,858,627.04
6,648,404.13
734,210,222.91
R&D of products
311,940,928.86
| R&D of products | |
359,948.11
311,580,980.75
448,118,524.87
1,611,969.40
446,506,555.47
Low-valueconsumptiongoods
224,067.63
224,067.63
174,148.37
174,148.37
Total 3,808,305,957.60
7,497,824.03
3,800,808,133.57
1,190,512,376.99
8,749,845.32
1,181,762,531.67
Whether the Company needs satisfy relevant disclosure requirements stated in SZSE Industrial Information Disclosure Guidance No.4-Listed Company Specialized in Seed Industry or Planting Business or not?No
(2) Falling Price Reserves of Inventories
Unit: RMBItem
Beginningbalance
Increase Decrease
Ending balance
Withdrawal Other
Reverse orwrite-off
OtherRaw materials 489,471.79
489,471.79
Costs of6,648,404.13
6,648,404.13
developmentDevelopment ofproducts
1,611,969.40
1,252,021.29
359,948.11
Total 8,749,845.32
1,252,021.29
7,497,824.03
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing ExpenseThe ending balance of the inventory included a total amount of the capitalized borrowings of RMB10,952,348.03, details were listedas follows:
Item Period-begin Reporting Period
Carry-
| over in current | |
period
Period-endBanshan Yujing I 2,285,133.70
669,544.17
Qianhai Gangwan 1,069,665.60
1,615,589.53
1,002,811.50
Golden Collar’s Resort 3,882,239.73
66,854.10
27,464.23
Songhu Langyuan 1,116,092.96
3,909,703.96
704,701.09
Langqiao International 2,971,986.55
411,391.87
2,971,986.55
Hupan Yujing I 2,140,112.62
2,971,986.55
163,290.59
Total 13,465,231.16
1,976,822.03
27,464.23
2,540,347.36
10,952,348.03
(4) Completed but Unsettled Assets Generated from Construction Contacts at the Period-end
Unit: RMBItem AmountOther notes:
Not applicable
10. Contract Assets
Unit: RMBItem
Ending balance Beginning balanceCarryingamount
Impairment
provision
10,952,348.03Carrying value
Carryingamount
Impairment
provision
| Carrying value | ||
Carrying value
Amount of significant changes in carrying value of contract assets in the Reporting Period and reasons thereof:
Unit: RMBItem Amount changed ReasonIf 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: RMBItem Withdrawn Reversed Write-off/verified ReasonOther notes:
11. Held-for-sale Assets
Unit: RMBItem
Ending carryingamount
Impairmentprovision
Ending carryingvalue
Fair value
Estimateddisposal expense
Estimateddisposal time
Other notes:
12. Current Portion of Non-current Assets
Unit: RMBItem Ending balance Beginning balanceSignificant investments in debt obligations /other investments in debt obligations
Unit: RMBItem
Ending balance Beginning balancePar value
Coupon rate
Actualinterest rate
Maturitydate
Par value
Coupon rate
Actualinterest rate
MaturitydateOther notes:
13. Other Current Assets
Has implemented the new standards governing revenue or not
□ Yes √ Not
Unit: RMBItem Ending balance Beginning balance
1. Assets group (investment to Hainan
Xinda and accounts receivable) held tocancel after verification
Of which: original value of assetsgroup
69,437,140.28
69,437,140.28
Depreciation reserves of the assetsgroup
-69,437,140.28
-69,437,140.28
2. Assets group (investment to Nanpeng
Papermaking and accounts receivable)held to cancel after verification
Of which: original value of assetsgroup
21,949,664.00
21,949,664.00
Depreciation reserves of the assetsgroup
-21,949,664.00
-21,949,664.00
3. Assets group (investment to
International Trade Industry and accountsreceivable) held to cancel after verification
Of which: original value of assetsgroup
6,034,625.03
6,034,625.03
Depreciation reserves of the assetsgroup
-6,034,625.03
-6,034,625.03
4. Assets group (accounts receivable from
Jintian Industry) held to cancel afterverification and other accounts receivable
Of which: original carrying value ofother receivables
53,034,143.94
53,034,143.94
Bad debt provision -53,034,143.94
-53,034,143.94
5. Assets group (accounts receivable from
Shenzhen Shengfeng Road, Guomao Jewel& Gold Co., Ltd.) held to cancel afterverification and other accounts receivable
Of which: original carrying value ofother receivables
6,980,273.01
6,980,273.01
Bad debt provision -6,980,273.01
-6,980,273.01
6. Pre-paid VAT 19,406,123.62
16,644,131.80
7. Deducted input tax 4,825,278.98
50,276.32
Total 24,231,402.60
16,694,408.12
Other notes:
14. Investments in debt obligations
Unit: RMBItem
Ending balance Beginning balance
ImpairmentCarrying value
| Carrying amount | |
Carryi
ImpairmentCarrying value
| ng amount | |
provision provisionSignificant investments in debt obligations
Unit: RMBItem
Ending balance Beginning balancePar value
Coupon rate
Actualinterest rate
Maturitydate
Par value
Coupon rate
Actualinterest rate
MaturitydateWithdrawal of impairment provision
Unit: RMBBad debt provision
Phase I Phase II Phase III
TotalExpected creditlosses in the next 12
months
Expected credit losses forthe whole existence period(no credit impairment)
Expected credit losses forthe whole existence period(with credit impairment)
The balance of 1 January2019 in the ReportingPeriod
—— —— —— ——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
Beginningbalance
Accrued
interest
Change infair value in
the
Reporting
Period
Endingbalance
Costs
Accumulated
changes infair value
Accumulated
Accumulated
provision forlossesrecognize
Accumulatedd in
othercomprehensi
ve income
d in
Note
Total
0.00
——Significant other investments in debt obligations
Unit: RMBItem
Ending balance Beginning balancePar value
Coupon rate
Actualinterest rate
Maturitydate
Par value
Coupon rate
Actualinterest rate
MaturitydateWithdrawal of impairment provision
Unit: RMBBad debt provision
Phase I Phase II Phase III
TotalExpected credit Expected credit losses for Expected credit losses for
losses in the next 12months
the whole existence period
(no credit impairment)
the whole existence period(with credit impairment)
The balance of 1 January2019 in the ReportingPeriod
—— —— —— ——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: RMBItem
Ending balance Beginning balance
Interval ofdiscount rate
Carryingamount
Bad debtprovision
| Carrying value | ||||
Carryingamount
Bad debtprovision
Carrying value
Impairment of bad debt provision
Unit: RMBBad debt provision
Phase I Phase II Phase III
TotalExpected creditlosses in the next 12months
Expected credit losses forthe whole existence period(no credit impairment)
Carrying value
Expected credit losses forthe whole existence period(with credit impairment)
The balance of 1 January2019 in the ReportingPeriod
—— —— —— ——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: RMBInvestees
Beginnin
| g balance |
Increase/decrease
Endingbalance
Endingbalance
AdditionaReduced Gains and Adjustmen
Changes
Cash bonus WithdraOther
| Changes |
linvestmen
t
investment
lossesrecognizedunder theequitymethod
t of othercomprehensiveincome
of otherequity
or profitsannouncedto issue
wal ofdepreciationreserves
ofdepreciationreserves
I. Joint venturesJifaWarehouse Co.,Ltd.
34,103,84
0.40
660,755.47
34,764,59
5.87
ShenzhenTian’anInternationalBuilding
Property
Management Co.,Ltd.
5,895,442.84
Property
120,071.10
6,015,513.94
Subtotal
39,999,28
3.24
780,826.57
40,780,10
9.81
II. Associated enterprisesShenzhenWufangPottery &PorcelainIndustrialCo., Ltd.
18,983,61
4.14
18,983,61
4.14
18,983,61
4.14
Subtotal
18,983,61
4.14
18,983,61
4.14
18,983,61
4.14
Total
58,982,89
7.38
59,763,72
3.95
18,983,61
4.14
Other notes
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balanceDisclosure of non-trading equity instrument investment
Unit: RMB
Name
Dividend incomerecognized
Accumulativegains
Accumulativelosses
Amount of othercomprehensive
incometransferred toretained earnings
Reason forassigning tomeasure by fairvalue and thechanges beincluded in othercomprehensiveincome
Reason of othercomprehensiveincometransferred toretained earnings
Other notes:
19. Other Non-current Financial Assets
Unit: RMBItem Ending balance Beginning balanceJintian Industry (Group) Co., Ltd. 3,622,435.75
3,621,381.11
China Trust Protection Fund Co., Ltd. 22,000,000.00
0.00
North Machinery (Group) Co., Ltd. 3,465,000.00
3,465,000.00
Depreciation reserves for North Machinery(Group) Co., Ltd.
-3,465,000.00
-3,465,000.00
Guangdong Huayue Real Estate Co., Ltd.
8,780,645.20
8,780,645.20
Depreciation reserves for GuangdongHuayue Real Estate Co., Ltd.
-8,780,645.20
-8,780,645.20
Sanya East Travel Co., Ltd. 230,500.00
230,500.00
Depreciation reserves for Sanya EastTravel Co., Ltd.
-230,500.00
-230,500.00
Shenshan Co., Ltd. 17,695.09
17,695.09
Depreciation reserves for Shenshan Co.,Ltd.
-17,695.09
-17,695.09
Macao Huashen Enterprise Co., Ltd. 85,407.77
85,067.96
Depreciation reserves for Macao HuashenEnterprise Co., Ltd.
-85,407.77
-85,067.96
Chongqing Guangfa Real EstateDevelopment Co., Ltd.
2,591,580.37
2,581,269.42
Depreciation reserves for ChongqingGuangfa Real Estate Development Co.,Ltd.
-2,591,580.37
-2,581,269.42
Saipan Project 1,930,356.50
1,922,676.32
Depreciation reserves for Saipan Project -1,930,356.50
-1,922,676.32
Total 25,622,435.75
3,621,381.11
Other notes:
Note: 1. The available-for-sale financial assets measured in fair value held by the Company were based on the final execution of TheReorganization Plan of Gintian Industry (Group) Co., Ltd., the Company received 772,717 tradable A shares, 412,123 non-tradable Ashares and 447,217 B shares distributed by Gintian Industry on 26 January 2016, received 163,488 tradable A shares, 83,239non-tradable A shares and 92,238 B shares additionally distributed on 15 March 2017. The cost of available-for-sale financial assetswas recognized based on the price issued on the last trading date before the trading suspension of Gintian Industry (10 December2014), RMB2.09 per A share and USD0.17 per B share.
2. The changes in long-term equity investment in Macao Huashen Enterprise Co., Ltd., Saipan Project and Chongqing Guangfa RealEstate Development Co., Ltd. and changes in depreciation reserves during the Reporting Period were caused by translation of foreigncurrency statements.
3. Shenzhen Rongyao Real Estate Development Co., Ltd. gained the borrowing of RMB2.193 billion from Sichuan Trust CO., Ltd.,and RMB22 million subscribed from China Trust Protection Fund Co., Ltd. in accordance with Administrative Rules Governing theTrust Protection Fund (YJF [2014] No.50) and Notice on Collection and Management of Trust Protection Fund (YJBF [2015] No.
32), of which income and liquidation are executed based on the relevant regulations of the aforesaid rules and notice. If the Companyfails to pay the full amount of principal and interest when the loans matured, the principal and income of the fund will be deductedthe relevant expenses and principal and interest under the loan contract of Sichuan Trust Co., Ltd.
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMBItem Houses and buildings
Land use right Construction in progress
TotalI. Original carrying value
1. Beginning balance 673,909,462.73
3,885,469.40
677,794,932.13
2.
Increased amount of
the period
48,319.54
| Increased amount of | ||||||
48,319.54
(1) Outsourcing
(2)Transfer from
inventory/fixed assets/construction in progress
(3)Enterprise
combination increase
(4) Influence of the
translation of foreigncurrency denominated
48,319.54
financial statements
48,319.54
the period
| 3. Decreased amount of | ||||||||
(1) Disposal
(2) Other transfer
4. Ending balance 673,957,782.27
3,885,469.40
677,843,251.67
II.Accumulative
depreciation and
accumulativeamortization
| depreciation and | ||||||||
1. Beginning balance 273,524,156.85
3,720,085.38
277,244,242.23
2.
Increased amount of
the period
11,573,869.07
| Increased amount of | ||
165,384.02
11,739,253.09
(1)
Withdrawal or
amortization
11,573,869.07
| Withdrawal or | ||
165,384.02
11,739,253.09
the period
3. Decreased amount of
(1) Disposal
(2) Other transfer
4. Ending balance 285,098,025.92
3,885,469.40
288,983,495.32
III. Depreciation reserves
1. Beginning balance
2.
the period
| Increased amount of | ||||||||
(1) Withdrawal
the period
| 3. Decreased amount of | ||||||||
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value
388,859,756.35
0.00
388,859,756.35
2.Beginning carrying
value
400,385,305.88
165,384.02
400,550,689.90
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable √ Not applicable
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMBItem Carrying value ReasonOther notesNot applicable
21. Fixed Assets
Unit: RMBItem Ending balance Beginning balanceFixed assets 33,037,636.13
32,612,592.40
Total 33,037,636.13
32,612,592.40
(1) List of Fixed Assets
Unit: RMBItem
Houses andbuildings
Transportationequipment
Electronicequipment andothers
Decoration of thefixed assets
TotalI. Original carryingvalue
1. Beginning balance
99,729,174.13
9,650,816.74
17,430,466.65
4,163,727.48
130,974,185.00
2. Increased amount
of the period
22,361.48
762,967.11
2,452,604.69
0.00
3,021,315.04
(1) Purchase
762,967.11
2,235,986.45
2,998,953.56
(2) Transfer from
construction inprogress
(3) Enterprise
combination increase
0.00
0.00
216,618.24
0.00
216,618.24
(4) Influence of the
translation of foreign
22,361.48
translation of foreign
22,361.48
currency-denominated financialstatements
3. Decreased amount
of the period
0.00
323,504.00
703,880.04
0.00
1,027,384.04
(1) Disposal or scrap
0.00
323,504.00
703,880.04
0.00
1,027,384.04
4. Ending balance 99,751,535.61
10,090,279.85
19,179,191.30
4,163,727.48
133,184,734.24
II. Accumulativedepreciation
1. Beginning balance
76,422,797.59
5,629,191.10
12,163,135.32
4,070,751.43
98,285,875.44
2. Increased amount
of the period
990,651.17
848,068.62
897,887.12
0.00
2,612,286.25
(1) Withdrawal 990,651.17
848,068.62
773,566.46
0.00
2,612,286.25
(2) Enterprise
combination increase
0.00
0.00
124,320.66
0.00
124,320.66
3. Decreased amount
of the period
0.00
311,002.13
640,099.27
0.00
951,101.40
(1) Disposal or scrap
0.00
311,002.13
640,099.27
0.00
951,101.40
4. Ending balance 77,413,448.76
6,166,257.59
12,420,923.17
4,070,751.43
100,071,380.95
III. Depreciationreserves
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
22,338,086.85
3,924,022.26
6,682,550.97
92,976.05
33,037,636.13
2. Beginning
23,306,376.54
4,021,625.64
5,191,614.17
92,976.05
32,612,592.40
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMBItem
Original carryingvalue
Accumulativedepreciation
Depreciationreserves
Carrying value
NoteHouses andbuildings
3,580,695.77
2,276,078.01
1,304,617.76
(3) Fixed Assets Leased in by Financing Lease
Unit: RMBItem Original carrying value
Accumulativedepreciation
Depreciation reserves
Carrying value
(4) Fixed Assets Leased out by Operation Lease
Unit: RMBItem Ending carrying value
(5) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMBItem Carrying value ReasonOther notesNot applicable
(6) Proceeds from Disposal of Fixed Assets
Unit: RMBItem Ending balance Beginning balanceOther notesNot applicable
22. Construction in Progress
Unit: RMBItem Ending balance Beginning balance
(1) List of Construction in Progress
Unit: RMBItem
Ending balance Beginning balance
Depreciationreserves
Carrying value
| Carrying amount | Carrying amount | ||
Depreciationreserves
Carrying value
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Item
Budget
Beginning
Increase
balanced amount
Transferred infixedassets
d amount
Otherdecrease
d amount
Ending
d amountbalance
Proportion ofaccumulatedinvestment inconstructions tobudget
balance
Job
schedule
Accumulatedamountofinterestcapitalization
schedule
Ofwhich:
Amount
ofcapitaliz
edinterestsfor theReportin
g Period
Capitaliz
g Periodation rate
ofinterestsfor theReportin
ation rateg Period
Capitalresources
g Period
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMBItem Amount withdrawn Reason for withdrawalOther notes
(4) Engineering Materials
Unit: RMBItem
Ending balance Beginning balance
Carrying amount
Depreciationreserves
| Carrying amount | Carrying value |
Carryingamount
Depreciation
reserves
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-to-use Assets
Unit: RMBItem TotalOther notes:
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMBItem Land use right Patent right Non-patent right TotalI. Original carryingvalue
1. Beginning balance
2. Increased amount
of the period
(1) Purchase
(2) Internal R&D
(3) Business
combination increase
3. Decreased amount
of the period
(1) Disposal
4. Ending balance
II. Accumulatedamortization
1. Beginning balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased amount
of the period
(1) Disposal
4. Ending balance
III. Depreciationreserves
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
2. Beginning
carrying value
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: RMBItem Carrying value ReasonOther notes:
27. R&D Expense
Unit: RMBItemBeginningIncrease DecreaseEnding
balance
balance
Other notes
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMBName of theinvested units orevents generatinggoodwill
Beginningbalance
Increase Decrease Ending balance
(2) Depreciation Reserves of Goodwill
Unit: RMBName of theinvested units orevents generating
goodwill
Beginningbalance
Increase Decrease Ending balance
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: RMBItem Beginning balance
Increased amount
Amortizationamount of the period
Other decreasedamount
Ending balanceFacilitiesreconstructionexpenses
1,806,738.29
794,064.25
344,619.63
2,256,182.91
Rental fees 591,838.00
499,035.00
92,803.00
Total 2,398,576.29
794,064.25
843,654.63
2,348,985.91
Other notes
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMBItem
Ending balance Beginning balanceDeductible temporarydifference
Deferred income taxassets
Deductible temporarydifference
Deferred income taxassets
of assets
128,576,454.53
| Provision for impairment | ||
31,960,664.40
126,743,538.44
31,553,045.99
Internal unrealized profit
56,152,891.00
14,038,222.75
52,189,819.68
13,047,454.92
Deductible losses 489,503,363.01
122,375,840.75
657,498,958.12
164,374,739.53
Accrued land VAT 1,232,409,921.52
324,268,003.40
1,204,912,500.44
301,228,125.11
calculated at pre-
Estimated profitsale
salerevenue of property
enterprises
197,681,310.20
revenue of property
49,698,914.70
38,294,088.60
9,573,522.15
but withdrawn
Payroll payable unpaid
26,575.76
6,643.94
Total 2,104,323,940.26
542,341,646.00
2,079,665,481.04
519,783,531.64
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMBItem
Ending balance Beginning balanceDeductible temporarydifference
Deferred income taxliabilities
Deductible temporarydifference
Deferred income taxliabilitiesThe carrying value offixed assets was largerthan the tax basis
17,126.24
4,281.56
21,102.40
5,275.60
Total 17,126.24
4,281.56
21,102.40
5,275.60
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMBItem
Mutual set-off amount ofdeferred income taxassets and liabilities at
the period-end
Ending balance ofdeferred income taxassets or liabilities after
off-set
Mutual set-off amount of
deferred income taxassets and liabilities atthe period-begin
Beginning balance ofdeferred income taxassets or liabilities after
off-set
| Deferred income tax | |
542,341,646.00
519,783,531.64
assets
liabilities
| Deferred income tax | ||
4,281.56
5,275.60
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMBItem Ending balance Beginning balanceDeductible losses 210,977,770.19
116,064,336.25
Estimated profit calculated at pre-salerevenue of property enterprises
552,050.70
2,535,696.30
Internal unrealized profit 1,768,353.48
2,427,381.29
Provision for assets impairment 196,680,018.71
212,156,220.23
Total 409,978,193.08
333,183,634.07
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMBYears Ending amount Beginning amount NotesY2019 0.00
7,443.23
The deductible losses of 2014Y2020 1,834,215.36
2,221,261.56
The deductible losses of 2015Y2021 4,913,880.10
5,397,820.20
The deductible losses of 2016Y2022 108,437,811.26
108,437,811.26
The deductible losses of 2017Y2023
The deductible losses of 2018Y2024 95,791,863.47
The deductible losses of 2019Total 210,977,770.19
116,064,336.25
--Other notes:
31. Other Non-current Assets
Whether the Company executed the new income standards
□ Yes √ No
Unit: RMBItem Ending balance Beginning balancePrepayment for purchase of fixed assets,investment pro
22,309,093.40
perties and intangible assets
8,971,942.00
Prepayment for acquisition of long-termequity investment
0.00
100,000,000.00
Total 22,309,093.40
108,971,942.00
Other notes:
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMBItem Ending balance Beginning balanceNotes of short-term borrowings category:
(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: RMBBorrower Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
33. Trading Financial liabilities
Unit: RMBItem Ending balance Beginning balanceOf which:
Of which:
Other notes:
34. Derivative Financial Liabilities
Unit: RMBItem Ending balance Beginning balanceOther notes:
35. Notes Payable
Unit: RMBCategory Ending balance Beginning balanceThe total amount of notes payable due but unpaid was RMBXXX.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMBItem Ending balance Beginning balanceAccounts payable 387,411,164.10
398,429,855.96
Total 387,411,164.10
398,429,855.96
(2) Significant Accounts Payable Aging over One Year
Unit: RMBItem Ending balance Unpaid/ Un-carry-over reasonThe Second Construction Co., Ltd. ofChina Construction Third EngineeringBureau
49,918,600.00
UnsettledJinchen Group Limited Company 28,634,299.28
UnsettledJiangsu Hanjian Group Co., Ltd. 31,568,213.29
UnsettledShenzhen Luohu District Land andResources Bureau
25,000,000.00
UnsettledHenan First Construction EngineeringGroup Co., Ltd.
14,028,734.51
UnsettledTotal 149,149,847.08
--Other notes:
37. Advances from Customers
Whether the Company has executed the new income standards
□ Yes √ No
(1) List of Advances from Customers
Unit: RMBItem Ending balance Beginning balanceWithin 1 year 1,055,042,541.16
262,553,420.13
1 to 2 years
2,031,091.19
2 to 3 years
510,000.00
Over 3 years 753,704.02
243,704.02
Total 1,055,796,245.18
265,338,215.34
(2) Significant Advances from Customers Aging over One Year
Unit: RMBItem Ending balance Unpaid/ Un-carry-over reason
(3) Settled but Uncompleted Projects Formed by Construction Contracts at the Period-end
Unit: RMBItem AmountOther notes:
38. Contract Liabilities
Unit: RMBItem Ending balance Beginning balanceSignificant changes in amount of carrying value occurred in the Reporting Period and the reasons
Unit: RMBItem Amount changed Reason
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMBItem Beginning balance Increase Decrease Ending balanceI. Short-term salary 95,583,589.44
175,275,875.01
198,827,668.83
72,031,795.62
II. Post-employmentbenefit-definedcontribution plans
485,932.10
13,425,444.25
13,498,612.93
412,763.42
III. Termination benefits
188,645.00
188,645.00
IV. Current portion ofother welfares
11,757.61
11,757.61
Total 96,069,521.54
188,901,721.87
212,526,684.37
72,444,559.04
(2) List of Short-term Salary
Unit: RMBItem Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
allowance, subsidy
86,030,704.33
154,622,082.05
179,408,999.75
61,243,786.63
2. Employee welfare 30.00
5,445,150.33
5,445,180.33
0.00
3. Social insurance
6,487,637.57
6,486,380.93
1,256.64
Of which:
insurance premiums
| Medical | ||
5,065,698.94
5,064,836.12
862.82
Work-related injury insurance
235,771.29
235,596.29
175.00
Maternity insurance
379,167.66
378,948.84
218.82
4. Housing fund 483,298.55
4,254,531.48
4,419,411.45
318,418.58
5. Labor union budget
and employee education
budget
9,069,556.56
| and employee education | |
4,466,473.58
3,067,696.37
10,468,333.77
Total 95,583,589.44
175,275,875.01
198,827,668.83
72,031,795.62
(3) List of Defined Contribution Plans
Unit: RMBItem Beginning balance Increase Decrease Ending balance
1. Basic pension benefits
485,932.10
11,056,810.00
11,329,028.50
213,713.60
2. Unemployment
insurance
291,420.08
291,201.26
218.82
3. Annuity
2,077,214.17
1,878,383.17
198,831.00
Total 485,932.10
13,425,444.25
13,498,612.93
412,763.42
Other notes:
The Company, in line with the requirement, participate the endowment insurance, unemployment insurance scheme and so on,according to the scheme, the Company monthly pay to the scheme in line with 14% and 1% of the endowment insurance base, exceptthe monthly payment, the Company no longer shoulder the further payment obligation, the relevant expense occurred was recordedinto current profits and losses or related assets costs.
40. Taxes Payable
Unit: RMBItem Ending balance Beginning balanceVAT 8,098,204.14
43,456,567.41
Corporate income tax 62,491,185.37
299,844,086.29
Personal income tax 2,679,990.18
727,690.79
Urban maintenance and construction tax 436,069.92
2,041,413.19
Stamp tax 34,134.25
11,902.61
Education Surcharge 195,815.20
893,767.33
Local education surtax 140,456.34
603,356.32
Land VAT 1,297,961,939.08
1,205,033,788.57
Property tax 2,142,863.97
48,545.74
Other 3,803.15
59,512.34
Total 1,374,184,461.60
1,552,720,630.59
Other notes:
41. Other Payables
Unit: RMBItem Ending balance Beginning balanceInterest payable 6,702,350.69
1,669.10
Dividends payable 29,642.40
29,642.40
Other payables 553,588,996.85
112,470,835.19
Total 560,320,989.94
112,502,146.69
(1) Interest Payable
Unit: RMBItem Ending balance Beginning balanceInterest of long-term borrowings withinstallment payments of interest andpayment of principal at maturity
6,702,350.69
1,669.10
Total 6,702,350.69
1,669.10
List of the significant overdue unpaid interest:
Unit: RMBBorrower Overdue amount Overdue reasonsOther notes:
(2) Dividends Payable
Unit: RMBItem Ending balance Beginning balanceOrdinary share dividends 29,642.40
29,642.40
Total 29,642.40
29,642.40
Other notes, including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
Name Shares Amount of dividends Note
payableShenzhen South China Investment Development Co.,Ltd.
| 54,840.00 | 9,871.20 |
Without access to its
accountWenling Quality Control Association
| 54,839.00 | 9,871.02 |
Without access to its
accountShanghai Weihong Industry & Trade Co., Ltd.
| 55,000.00 | 9,900.00 |
Without access to its
accountChina Shenzhen International Cooperation (Group)Co., Ltd.
| 1.00 | 0.18 |
Without access to its
accountTotal
| 164,680.00 | 29,642.40 |
Note: On 21 April 2017, the Company reviewed and approved the Proposal on 2016 Profit Distribution Plan and Bonus Issue fromCapital Reserves on the 2016 Annual General Meeting and decided to distribute the dividends to all shareholders at RMB1.80 per tenshares in cash based on the total 595,979,092 shares of share capital. As of the end of the Reporting Period, there was still fourshareholders who could not be distributed their dividends due to no access to their effective accounts.
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMBItem Ending balance Beginning balanceGuarantee and cash deposit 36,830,747.54
35,517,532.96
Agency fund 28,369,869.43
26,902,808.40
Intercourse fund 64,333,112.52
35,881,368.64
Accrued expenses 5,195,975.79
4,641,226.43
Payment on behalf 6,074,675.64
4,410,942.10
Other 6,384,615.93
5,116,956.66
Share purchase 406,400,000.00
Total 553,588,996.85
112,470,835.19
2) Significant Other Payables Aging over One Year
Unit: RMBItem Ending balance Unpaid/Un-carry-over reasonShenzhen Jifa Warehouse Co., Ltd. 26,296,665.14
Come-and-go accounts without specificpayment termShenzhen Bangling Co., Ltd. 24,230,301.00
Come-and-go accountsShenzhen Tian’an International BuildingProperty Management Co., Ltd.
5,214,345.90
Come-and-go accounts without specific
payment termMargin of sporadic lease 6,747,724.03
Margin within the leasing periodRainbow Co., Ltd. 2,380,000.00
Margin within the leasing period
Total 64,869,036.07
--Other notes
42. Held-for-sale Liabilities
Unit: RMBItem Ending balance Beginning balanceTotal 0.00
Other notes:
43. Current Portion of Non-current Liabilities
Unit: RMBItem Ending balance Beginning balanceOther notes:
44. Other Current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMBItem Ending balance Beginning balanceIncrease/decrease of the short-term bonds payable:
Unit: RMB
Bondsname
Issuingdate
Par value
Dur
ation
Issuingamount
ation
Beginning balance
Thecurrentissue
Withdrawal ofinterestby parvalue
Amortization ofpremiumanddepreciation
Repayment in the
Reporting
Period
Reporting
Endingbalance
Other notes:
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMBItem Ending balance Beginning balancePledged borrowings 2,193,000,000.00
Guaranteed borrowings 1,000,000.00
1,000,000.00
Total 2,194,000,000.00
1,000,000.00
Notes to the category of long-term borrowings:
Other notes, including the interval of interest rate:
Bank providing loan Borrowings
Borrowings
Interest rate (%)
Currency
Period-endStart date End date Foreign
currencyamount
Domestic currency
Sichuan Trust Co., Ltd. 13 February
2018
12 February2023
11.00 RMB --
2,193,000,000.00
of Shanghai Co., Ltd.
20 July 2018
| Shenzhen Branch of Bank |
20 June 2021
5.4625 RMB --
1,000,000.00
46. Bonds Payable
(1) List of Bonds Payable
Unit: RMBItem 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
(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: RMBOutstandingfinancialinstrument
Period-begin Increase Decrease Period-endAmount
Carryingvalue
Amount
Carryingvalue
Amount
Carryingvalue
Amount
CarryingvalueNotes to basis for the classification of other financial instruments as financial liabilitiesOther notes
47. Lease Liabilities
Unit: RMBItem Ending balance Beginning balance
Other notes
48. Long-term Payables
Unit: RMBItem Ending balance Beginning balance
(1) Long-term Payables Listed by Nature
Unit: RMBItem Ending balance Beginning balanceOther notes:
(2) Specific Payables
Unit: RMBItem Beginning balance
Increase Decrease Ending balance
Reason forformationOther notes:
49. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMBItem Ending balance Beginning balance
(2) Changes in Defined Benefit Plans
Obligation present value of defined benefit plans:
Unit: RMBItem Reporting period Same period of last yearPlan assets:
Unit: RMBItem Reporting period Same period of last yearNet liabilities (net assets) of defined benefit plans:
Unit: RMBItem Reporting period Same period of last yearNotes 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:
50. Provisions
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMBItem Ending balance Beginning balance Reason for formationOther notes, including notes to related significant assumptions and evaluation of significant provisions:
51. Deferred Income
Unit: RMBItem Beginning balance
Increase Decrease Ending balance
Reason forformationItem involving government subsidies:
Unit: RMB
Item
Beginningbalance
Amount ofnewlysubsidy
Amountrecorded intonon-operating income in
the Reporting
Period
Amountrecorded intoother incomein theReportingPeriod
Amountoffset cost in
the Reportingthe Reporting
Period
Otherchanges
Endingbalance
Related toassets/relatedto income
| the Reporting | ||
Other notes:
52. Other Non-current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMBItem Ending balance Beginning balanceUtility specific fund 237,163.63
237,163.63
Housing principle fund 11,835,954.22
11,702,533.73
House warming deposit 7,065,610.79
6,649,884.71
Electric Equipment Maintenance fund 4,019,415.44
4,019,415.44
Deputed Maintenance fund 28,580,603.13
28,374,344.95
Other 1,329,326.05
1,953,838.35
Total 53,068,073.26
52,937,180.81
Other notes:
53. Share Capital
Unit: RMB
Beginningbalance
Increase/decrease (+/-)
Ending balance
New shares
issued
Bonus shares
Bonus issuefrom profit
Other SubtotalThe sum ofshares
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: RMBOutstandingfinancialinstruments
Period-begin Increase Decrease Period-endAmount
Carryingvalue
Amount
Carryingvalue
Amount
Carryingvalue
Amount
CarryingvalueThe current changes in other equity instruments and the corresponding reasons and the basis of the relevant accounting treatmentOther notes:
55. Capital Reserve
Unit: RMBItem Beginning balance Increase Decrease Ending balanceCapital premium(premium on stock)
38,450,087.51
38,450,087.51
Other capital reserves 80,488,045.38
80,488,045.38
Total 118,938,132.89
118,938,132.89
Other notes, including changes and reason of change:
56. Treasury Shares
Unit: RMBItem Beginning balance Increase Decrease Ending balanceTotal
0.00
Other notes, including changes and reason of change:
57. Other Comprehensive Income
Unit: RMB
Item
Beginning
balance
Reporting Period
Endingbalance
Incomebeforetaxation inthe CurrentPeriod
Less:
Recorded inothercomprehensi
ve income in
prior periodandtransferredin profit orloss in theCurrentPeriod
Less:
Recordedinto othercomprehensi
| ve income in | ve income in |
prior periodandtransferredin retainedearnings inthe Currentperiod
Less:
Incometaxexpense
Attributable
to owners of
the
to owners ofCompany as
the parentafter tax
Attributa
ble tonon-cont
rollinginterestsafter tax
Company as
I. Other comprehensiveincome that may not bereclassified to profit orloss
0.00
Of which:
by remeasurement ondefined benefit pensionschemes
Changes caused
0.00
Othercomprehensive incomethat may not bereclassified to profit orloss under equity method
0.00
Changes in fairvalue of other equityinstrument investment\
0.00
Changes in fairvalue of enterprise creditrisk
0.00
II. Other comprehensiveincome that maysubsequently bereclassified to profit orloss
-1,786,181.69
202,824.25
202,824.25
-1,583,357.44
Of which: Othercomprehensive incomethat be reclassified toprofit or loss under equitymethod
0.00
Changes in fairvalue of other creditors’investment
0.00
Amount offinancial assetsreclassified to othercomprehensive income
0.00
Credit impairmentprovision of othercreditors’ investment
0.00
Reserve of cashflow hedges
0.00
Differe
nces arisingfrom translation of foreign
currency denominatedfinancial statements
-1,786,181.69
| from translation of foreign | ||
202,824.25
202,824.25
-1,583,357.44
Total of othercomprehensive income
-1,786,181.69
202,824.25
202,824.25
0.00
-1,583,357.44
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMBItem Beginning balance Increase Decrease Ending balanceOther notes, including changes and reason of change:
59. Surplus Reserves
Unit: RMBItem Beginning balance Increase Decrease Ending balanceStatutory surplusreserves
299,569,569.96
299,569,569.96
Total 299,569,569.96
299,569,569.96
Notes, including changes and reason of change:
Note: In line with provisions of Corporate Law and Articles of Association, the Company withdrew 10% of net profits as statutorysurplus reserves. When the accumulative statutory surplus reserves reach over 50% of the registered capital of the Company, no
statutory surplus reserves will be withdrawn.After the withdrawal of statutory surplus reserves, the Company can withdraw the discretionary surplus reserves which can be usedto make up for losses of previous years or increase the share capital when approved.
60. Retained Earnings
Unit: RMBItem Reporting Period Same period of last year
adjustments
2,325,248,711.48
| Beginning balance of retained earnings before | ||
1,911,318,586.37
Beginning
balance of retained earnings after
adjustments
2,325,248,711.48
| balance of retained earnings after | ||
1,911,318,586.37
Add: Net profit attributable to owners of theCompany as the parent
103,749,398.16
592,723,852.71
Dividend of ordinary shares payable 178,793,727.60
178,793,727.60
Ending retained earnings 2,250,204,382.04
2,325,248,711.48
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: RMBItem
Reporting Period Same period of last yearOperating revenue Cost of sales Operating revenue Cost of salesMain operations 726,984,203.15
369,698,027.62
795,673,204.34
677,352,002.41
Other operations 28,405,876.81
12,271,060.86
29,340,780.63
11,835,338.69
Total 755,390,079.96
381,969,088.48
825,013,984.97
689,187,341.10
Whether the Company has executed the new income standards
□ Yes √ No
Other notesThe top 5 accounts received with confirmed amount in the Reporting Period:
No. Name of project Income balance
1 SZPRD-Qianhai Gangwan 312,172,406.62
SZPRD-Songhu Langyuan
76,699,228.083 SZPRD-Hupan Yujing II 55,335,196.374 SZPRD-Banshan Yujing I 16,883,050.53
Total 461,089,881.60
62. Taxes and Surtaxes
Unit: RMBItem Reporting Period Same period of last yearUrban maintenance and construction tax 2,588,804.58
2,070,311.78
Education Surcharge 1,147,425.88
888,097.95
Property tax 2,249,401.17
2,175,077.03
Land use tax 416,068.76
281,571.20
Stamp tax 565,088.58
Business tax
1,090,668.20
Local education surtax 757,642.27
592,065.31
Land VAT 112,267,887.84
Other taxes 89,900.92
201,647.19
Total 120,082,220.00
7,299,438.66
Other notes:
Refer to Note VI Taxation for details.
63. Selling Expense
Unit: RMBItem Reporting Period Same period of last yearEmployee’s remuneration 1,972,134.95
1,959,228.72
Depreciation fees 44,589.94
32,513.48
Advertising 3,438,151.08
1,233,881.55
Office expenses 112,355.40
100,271.82
Business entertainment fees 143,567.10
355,136.65
Property fees 273,214.87
196,945.24
Consultancy and sales service charges 2,974,832.10
13,700.00
Article of consumption 667,051.70
17,792.00
Amortization of low-value consumptiongoods
22,691.00
84,907.00
Agency fee 7,450,176.51
3,277,073.44
Vacancy charge 38,111.72
457,071.90
Other 1,155,848.35
1,568,007.96
Total 18,292,724.72
9,296,529.76
Other notes:
64. Administrative Expense
Unit: RMBItem Reporting Period Same period of last yearEmployee’s remuneration 34,773,506.78
29,151,108.54
Administrative office cost 7,993,257.39
6,013,327.64
expense
1,928,051.08
| Assets amortization and depreciation | ||
1,473,571.76
Litigation costs 1,610,623.70
101,668.21
Other 9,651,842.56
6,576,767.50
Total 55,957,281.51
43,316,443.65
Other notes:
65. R&D Expense
Unit: RMBItem Reporting Period Same period of last yearOther notes:
66. Finance Costs
Unit: RMBItem Reporting Period Same period of last yearInterest expense 73,970,116.57
0.00
Less: Interest income 25,830,187.06
28,372,895.58
Foreign exchange gains or losses 1,473,105.77
434,629.66
Other 572,675.21
321,041.27
Total 50,185,710.49
-27,617,224.65
Other notes:
67. Other Income
Unit: RMBSources Reporting Period Same period of last yearAdditional deduction of VAT 305,213.90
0.00
68. Investment Income
Unit: RMBItem Reporting Period Same period of last yearLong-term equity investment incomeaccounted by equity method
780,826.57
49,247.20
Total 780,826.57
49,247.20
Other notes:
69Net Gain on Exposure Hedges
Unit: RMBItem Reporting Period Same period of last yearOther notes:
70. Gain on Changes in Fair Value
Unit: RMBSources Reporting Period Same period of last yearTotal 0.00
0.00
Other notes:
71. Credit Impairment Loss
Unit: RMBItem Reporting Period Same period of last yearOther notes:
72. Assets Impairment Loss
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMBItem Reporting Period Same period of last year
I. Bad debt loss -2,577,505.86
180,030.66
II. Loss on inventory valuation
4,577,320.26
Total -2,577,505.86
4,757,350.92
Other notes:
73. Asset Disposal Income
Unit: RMBSources Reporting Period Same period of last year
74. Non-operating Income
Unit: RMBItem Reporting Period Same period of last year
Amount recorded in the currentnon-recurring profit or loss
Total income from scrap ofnon-current assets
120.00
5,171.33
120.00
Compensation income 1,012,703.75
1,528,320.10
1,012,703.75
Other 777,708.00
777,708.00
Total 1,790,531.75
1,533,491.43
1,790,531.75
Government subsidies recorded into current profit or loss
Unit: RMB
Item
Distribution
entity
Distribution
reason
Nature
Whetherinfluence theprofits orlosses of theyear or not
Distribution
Specialsubsidy ornot
ReportingPeriod
Same periodof last year
Related toassets/relatedto income
Other notes:
75. Non-operating Expense
Unit: RMBItem Reporting Period Same period of last year
Amount recorded in the currentnon-recurring profit or loss
Loss on damage and scrap ofnon-current assets
37,083.65
51,457.63
37,083.65
Penalty and fine for delayingpayment
15,092.62
12,367.88
15,092.62
Compensation of repaying1,475,415.42
1,475,415.42
lesseesOther 178,656.23
247,849.34
178,656.23
Total 1,706,247.92
311,674.85
1,706,247.92
Other notes:
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMBItem Reporting Period Same period of last yearCurrent income tax expense 72,117,992.82
31,828,441.73
Deferred income tax expense -19,926,531.99
-5,241,098.17
Total 52,191,460.83
26,587,343.56
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMBItem Reporting PeriodProfit before taxation 127,495,873.20
Current income tax expense accounted at statutory/applicable tax
rate
31,873,968.30
| Current income tax expense accounted at statutory/applicable tax | ||
Influence of applying different tax rates by subsidiaries -131,247.90
Influence of income tax before adjustment -3,290,356.96
Influence of non-deductable costs, expenses and losses 10,738.90
Influence of deductable loss of unrecognized deferred income tax
assets in prior period
-219,607.38
| Influence of deductable loss of unrecognized deferred income tax | ||
Influence of deductable temporary difference or deductablelosses of unrecognized deferred income tax in the ReportingPeriod
23,947,965.87
Income tax expense 52,191,460.83
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: RMBItem Reporting Period Same period of last yearLarge intercourse funds 3,254,135.02
3,800,000.00
Interest income 29,761,313.77
28,372,895.58
Net margins, security deposit and variousspecial funds received
428,092.67
796,055.96
Other small receivables 6,334,851.17
6,380,771.38
Total 39,778,392.63
39,349,722.92
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMBItem Reporting Period Same period of last yearPaying administrative expense in cash 15,261,683.20
14,106,982.05
Paying selling expense in cash 22,787,882.85
5,790,331.31
Net amount of utilities, miscellaneousfees and accident fee and other paymentson behalf
2,533,812.62
11,029,061.45
Other small payments 3,791,628.73
2,660,153.05
Total 44,375,007.40
33,586,527.86
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMBItem Reporting Period Same period of last yearNotes:
(4) Cash Used in Other Investing Activities
Unit: RMBItem Reporting Period Same period of last yearNotes:
(5) Cash Generated from Other Financing Activities
Unit: RMBItem Reporting Period Same period of last yearNotes:
(6) Cash Used in Other Financing Activities
Unit: RMBItem Reporting Period Same period of last yearNotes:
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMBSupplemental information Reporting Period Same period of last year
flows generated from operating activities
-- --Net profit 75,304,412.37
1. Reconciliation of net profit to net cash
82,972,527.59
Add: Provision for impairment of assets 2,577,505.86
-4,757,350.92
Depreciation of fixed assets, oil-
and productive living assets
14,351,539.34
| gas assets, | ||
13,603,686.94
Amortization of long-term prepaid expenses
843,654.63
86,488.14
Losses on scrap of fixed assets (gains:
negative)
36,963.65
46,286.30
Finance costs (gains: negative) -1,054.64
-7,556.73
Investment loss (gains: negative) -780,826.57
-49,247.20
(gains: negative)
-22,558,114.36
Decrease in deferred income tax assets
-5,289,164.36
Increase in deferred income tax liabilities
(“-” means decrease)
-994.04
-2,013.97
Decrease in inventory (gains: negative) -955,592,812.18
405,964,906.28
from operating activities (gains: negative)
-89,423,505.84
| Decrease in accounts receivable generated | ||
-20,167,130.30
Increase in acco
unts payable used in
operating activities (decrease: negative)
515,290,994.80
| unts payable used in | ||
-697,993,417.58
Net cash generated from/used in operating-459,952,236.98
-225,591,985.81
activities2.
activities without involvement of cas
Significant investing and financingh
receipts and payments
-- --
h
3. Net increase/decrease of cash and cash
equivalent:
-- --Ending balance of cash 2,605,239,354.47
3. Net increase/decrease of cash and cash
2,134,736,405.07
Less: Beginning balance of cash 3,375,714,690.09
2,464,626,655.21
Net increase in cash and cash equivalents -770,475,335.62
-329,890,250.14
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMBAmountCash and cash equivalent paid for business combination in thecurrent period
1,600,000.00
Of which: --Cash 1,600,000.00
Less: Cash and cash equivalent held by subsidiaries on purchasedate
44,727.75
Of which: --Cash 44,727.75
Of which: --Net payments for acquisition of subsidiaries 1,555,272.25
Other notes:
On 26 February 2019, the Company signed the share transfer agreement with Shenzhen Xinhai Rongyao Real Estate DevelopmentCo., Ltd. (hereinafter referred to as “Xinhai Rongyao”) to acquire 69% of shares in its subsidiary Shenzhen Rongyao Real EstateDevelopment Co., Ltd. (hereinafter referred to as the “target company”). The price for transfer of shares in the target company agreedbilaterally is RMB508,000,000.00 which will be paid in four installments based on the progress of the project stipulated in theagreement. The Company should pay RMB101,600,000.00 after completing the setting up of fund supervision account and allapplication documents required in the registration changing procedures have been prepared completely. The Company has paidRMB100,000,000.00 in November 2018 and RMB1,600,00.00 in March 2019.
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMBAmountOf which: --Of which: --
Of which: --Other notes:
(4) Cash and Cash Equivalents
Unit: RMBItem Ending balance Beginning balanceI. Cash 2,605,239,354.47
3,375,714,690.09
Including: Cash on hand 130,986.09
176,193.08
Bank deposit on demand 2,605,108,368.38
3,375,538,497.01
III. Ending balance of cash and cashequivalents
2,605,239,354.47
3,375,714,690.09
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 to Use
Unit: RMBItem Ending carrying value Reason for restrictionMonetary capital 14,087,347.44
Refer to Section IV-4.3Total 14,087,347.44
--Other notes:
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMBItem
Ending foreign currency
balance
Exchange rate
Ending balance converted to
RMBMonetary capital -- --
Of which: USD
EUR
HKD 61,497,019.17
0.8797 54,098,927.76
Accounts receivable -- --
Of which: USD
EUR
HKD
Long-term borrowings -- --
Of which: USD
EUR
HKD
Other receivables
Of which: HKD 770.00
0.8797 677.37
Other non-current financial assets
91,707.93
6.8747 630,464.51
Of which: USD
Accounts payable
Of which: HKD 56,000.00
0.8797 49,263.20
Other payables
Of which: HKD 570,289.25
0.8797 501,683.45
Long-term payables
Of which: USD 8,768.06
6.8747 60,277.78
HKD 422,631.32
0.8797 371,788.77
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
and its subsidiary
Hong Kong
| Shum Yip Properties Development Co., Ltd. | |
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:
84. Government Subsidy
(1) Basic Information on Government Subsidy
Unit: RMBCategory Amount Listed items
Amount recorded in the current
profit or loss
(2) Return of Government Subsidy
□ Applicable √ Not applicable
Other notes:
85. Other
Comparative dataIn the Reporting Period, for the sake of comparability of information disclosed, the Company made appropriate adjustments to someof the comparable data in the middle of 2018 in the form of the disclosure for the Reporting Period.
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: RMBName ofacquiree
Time andplace ofgaining theequity
Cost ofgaining theequity
equity
Way to gainthe equity
Proportion of
Purchase date
Recognitionbasis ofpurchase date
Income of
acquiree from
the purchasedate toperiod-end
acquiree from
Net profits of
Net profits ofacquiree from
the purchasedate toperiod-end
acquiree from
ShenzhenRongyaoReal EstateDevelopmentCo., Ltd.
12 March2019
508,000,000.
69.00%
Merger
12 March2019
Completedbusinessregistrationand transfer,and obtainedthe control
0.00
-91,139,605.7
Other notes:
Not applicable
(2) Combination Cost and Goodwill
Unit: RMBCombination cost--Cash 508,000,000.00
Total combination cost 508,000,000.00
Less: Fair value of identifiable net assets 508,000,000.00
Note to determination method of the fair value of the combination cost, consideration and changes:
The determination of the fair value: the third level input value of fair value, and estimating the fair value based on the net assets ofinvestees at the period-end. The net assets of investees at the period–end will be the base number to estimate the fair value as it canreflect the fair value; otherwise it will be adjusted according to the assumption used in related assets or liabilities pricing for marketparticipators.The main formation reason for the large goodwill:
Not applicableOther notes:
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Carrying value on purchase dateAssets: 3,077,529,428.87
1,966,481,371.43
Monetary fund 44,727.75
44,727.75
Accounts receivable 1,415,020,689.96
1,415,020,689.96
Inventory 1,662,200,768.43
551,161,727.04
Fixed assets 92,297.58
83,281.53
Intangible assets
0.00
Long-term prepaid expense 170,945.15
170,945.15
Liabilities: 2,386,589,802.16
2,386,589,802.16
borrowings 2,193,000,000.00
2,193,000,000.00
Accounts payable 195,746,950.94
195,746,950.94
Tax payable -2,157,148.78
-2,157,148.78
Net assets 690,939,626.71
-420,108,430.73
Less: Equity of non-controlling interests
182,939,626.71
Net assets obtained 508,000,000.00
The determination method of the fair value of identifiable assets and liabilitiesThe determination of the fair value: the third level input value of fair value, and estimating the fair value based on the net assets ofinvestees at the period –end as key reference. The net assets of investees at the period –end will be the base number to estimate the
fair value as it can reflect the fair value; otherwise it will be adjusted according to the assumption used in related assets or liabilitiespricing by market participators.Contingent liability of acquiree undertaken in the business combinationOther notes:
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair ValueWhether 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
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
Combinedparty
Proportion ofthe equity
Basis
Combinationdate
Recognitionbasis ofcombinationdate
Income fromtheperiod-beginto thecombinationdate of theacquiree
Net profitsfrom theperiod-beginto thecombinationdate of theacquiree
Income of the
acquireeduring theperiod ofcomparison
Income of the
Net profits of
the acquireeduring theperiod ofcomparison
Net profits of
Other notes:
(2) Combination Cost
Unit: RMBCombination costContingent 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 combinationOther notes:
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:
44. 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 newly establishment or liquidation of subsidiaries, etc.) and relevantinformation:
On 28 June 2019, Shenzhen International Trade Center Property Management Co., Ltd., a subsidiary of the Company, andGuangdong Shenshan Investment Holding Group jointly established Shenzhen Shenshan Special Cooperation Zone InternationalTrade Center Property Development Co., Ltd. with a registered capital of RMB5,000,000.00, among which, RMB3,250,000.00 waspaid by Shenzhen International Trade Center Property Management Co., Ltd. for a stake of 65.00%.
6. Other
NoneIX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Name
Main operatingplace
Registration place
Nature ofbusiness
Holding percentage (%)
Way of gainingDirectly IndirectlyShenzhenHuangcheng RealEstate Co., Ltd.
Shenzhen Shenzhen
Propertydevelopment
100.00%
Set-upSZPRD RealEstate
Shenzhen Shenzhen
Propertydevelopment
100.00%
Development Co.,
Set-up
Ltd.ShenzhenRongyao RealEstate
Ltd.
Shenzhen Shenzhen
Propertydevelopment
69.00%
Development Co.,
Acquired
PRD GroupXuzhou DapengReal Estate
Ltd.
Xuzhou Xuzhou
Propertydevelopment
100.00%
Development Co.,
Set-up
DongguanInternationalTrade CenterChangsheng RealEstate
Ltd.
Dongguan Dongguan
Propertydevelopment
100.00%
Development Co.,
Set-up
PRD YangzhouReal Estate
Ltd.
Yangzhou Yangzhou
Propertydevelopment
100.00%
Development Co.,
Set-upShenzhenInternationalTrade CenterPropertyManagement Co.,Ltd.
Shenzhen Shenzhen
Propertymanagement
100.00%
Set-up
Shenshan SpecialCooperation Zone
InternationalTrade CenterPropertyDevelopment
Co.,
Ltd.
Shenzhen Shenzhen
Propertymanagement
Co.,
65.00%
Set-up
ShenzhenHuangcheng RealEstateManagement Co.,Ltd.
Shenzhen Shenzhen
Propertymanagement
100.00%
Set-up
ShandongShenzhen
Jinan Jinan
Propertymanagement
100.00%
Set-up
InternationalTrade CenterPropertyManagement Co.,Ltd.ChongqingShenzhenInternationalTrade CenterPropertyManagement Co.,Ltd.
Chongqing Chongqing
Propertymanagement
100.00%
Set-up
Chongqing AoboElevator Co., Ltd.
Chongqing Chongqing Service
100.00%
Set-upChongqingTianque ElevatorTechnology Co.,Ltd.
Shenzhen Shenzhen Service
100.00%
Set-upShenzhenGuoguanElectromechanical Device Co., Ltd.
Shenzhen Shenzhen Service
100.00%
Set-upShenzhenInternationalTrade CenterCatering Co., Ltd.
Shenzhen Shenzhen Catering service
100.00%
Set-upShenzhenPropertyEngineeringConstructionSupervision Co.,Ltd.
Shenzhen Shenzhen
Engineeringsupervision
100.00%
Set-up
SZPRDOperation andManagement ofReal EstateAssets Co., Ltd.
Shenzhen Shenzhen Service 100.00%
Set-up
ZhanjiangShenzhen RealEstate
Ltd.
Zhanjiang Zhanjiang
Propertydevelopment
100.00%
Development Co.,
Set-up
Shum YipProperties
Ltd.
Hong Kong Hong Kong
Propertydevelopment
100.00%
Development Co.,
Set-upWayhang
Ltd.
Hong Kong Hong Kong
Propertydevelopment
| Development Co., | |
100.00%
Set-upChief LinkProperties Co.,Ltd.
Hong Kong Hong Kong
Propertydevelopment
70.00%
Set-upSyndisInvestment Co.,Ltd.
Hong Kong Hong Kong
Propertydevelopment
70.00%
Business combination
not under the same
controlYangzhouSlender WestLake JingyueProperty
Ltd.
Yangzhou Yangzhou
Propertydevelopment
Development Co.,
51.00%
Set-up
ShandongInternationalTrade CenterHotelManagement Co.,Ltd.
Jinan Jinan Service
100.00%
Set-up
Notes to holding proportion in subsidiary different from voting proportion:
Not applicableBasis 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:
Not applicableSignificant structural entities and controlling basis in the scope of combination:
Not applicableBasis of determining whether the Company is the agent or the principal:
Not applicableOther notes:
None
(2) Significant Non-wholly-owned Subsidiary
Unit: RMBName Shareholding proportion The profit or loss Declaring dividends Balance of
of non-controlling
interests
attributable to thenon-controlling interests
distributed tonon-controlling interests
non-controlling interests
at the period-endYangzhou Slender WestLake Jingyue PropertyDevelopment Co., Ltd.
49.00%
-182,718.17
2,205,181.14
Shenzhen Rongyao RealEstate Development Co.,Ltd.
31.00%
-28,253,277.77
154,686,348.94
Shenshan SpecialCooperation ZoneInternational TradeCenter PropertyDevelopment Co., Ltd.
35.00%
0.00
1,750,000.00
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Not applicableOther notes:
None
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMBName
Ending balance Beginning balanceCurrentassets
Non-currentassets
Total
assets
Currentliabilities
Non-currentliability
Totalliabilities
Currentassets
Non-currentassets
Totalassets
Currentliabilities
Non-currentliability
Totalliabilities
YangzhouSlenderWestLakeJingyuePropertyDevelopmentCo., Ltd.
4,416,44
4.00
323,591.
4,740,03
5.05
239,664.
239,664.
4,873,26
3.90
0.00
4,873,26
3.90
ShenzhenRongyaoRealEstateDevelopment
2,629,945,758.64
22,241,8
11.98
2,652,187,570.62
120,435,
607.06
3,043,000,000.00
3,163,435,607.06
Co., Ltd.
Shenshan S
pecial
Cooperation ZoneInternationalTradeCenterPropertyDevelopmentCo., Ltd.
pecial
5,000,00
0.00
5,000,00
0.00
Unit: RMB
Name
Reporting Period Same period of last yearOperatingrevenue
Net profit
Totalcomprehensive income
Cash flows
from operating
activities
Operatingrevenue
| from operating | ||
Net profit
Totalcomprehensive income
Cash flowsfromoperatingactivitiesYangzhouSlender WestLake JingyuePropertyDevelopmentCo., Ltd.
454,290.17
-372,894.22
-372,894.22
-1,079,939.58
ShenzhenRongyaoReal EstateDevelopmentCo., Ltd.
-91,139,605.7
-91,139,605.7
-576,763,060.
ShenshanSpecialCooperationZoneInternationalTrade CenterPropertyDevelopmentCo., Ltd.
Other notes:
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the CompanyNone
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope ofConsolidated Financial StatementsNoneOther notes:
None
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
None
(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 notesNot applicable
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Name
Main operatingplace
Registration place
Nature ofbusiness
Holding percentage (%) Accounting
treatment of theinvestment tojoint venture or
associatedenterpriseDirectly IndirectlyShenzhen JifaWarehouse Co.,Ltd.
Shenzhen Shenzhen
Warehouseservice
50.00%
Equity methodTian’anInternationalBuilding PropertyManagement
Shenzhen Shenzhen
Propertymanagement
50.00%
Equity method
Company ofShenzhenNotes to holding proportion of joint venture or associated enterprise different from voting proportion:
Not applicableBasis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does nothave a significant impact:
Not applicable
(2) Main Financial Information of Significant Joint Ventures
Unit: RMBEnding balance/Reporting Period Beginning balance/The same period of last year
Shenzhen Jifa Warehouse
Co., Ltd.
Tian’an InternationalBuilding PropertyManagement Companyof Shenzhen
| Shenzhen Jifa Warehouse | Shenzhen Jifa Warehouse |
Co., Ltd.
Tian’an InternationalBuilding PropertyManagement Companyof ShenzhenCurrent assets 7,276,535.69
51,865,947.01
9,555,202.09
50,941,418.43
Of which: Cash and cashequivalents
4,956,654.72
33,967,332.28
8,614,698.79
34,496,954.60
Non-current assets 65,978,954.15
40,810.71
62,828,540.59
38,523.34
Total assets 73,255,489.84
51,906,757.72
72,383,742.68
50,979,941.77
Current liabilities 3,726,298.12
23,684,197.24
4,176,061.89
22,970,163.57
Non-current liability
16,191,532.60
16,218,892.53
Total liabilities 3,726,298.12
39,875,729.84
4,176,061.89
39,189,056.10
Equity attributable Toowners of the Companyas the parent
69,529,191.72
12,031,027.88
68,207,680.79
11,790,885.67
Portion of net Assetscalculated according toproportion ofshareholdings
34,764,595.86
6,015,513.94
34,103,840.40
5,895,442.84
Carrying value of equityinvestment to jointventures
34,764,595.86
6,015,513.94
34,103,840.40
5,895,442.84
Operating revenue 3,127,168.02
10,118,037.30
1,332,229.50
10,019,051.54
Finance expense -12,030.91
3,608.49
-7,950.24
-48,189.40
Income tax expense 467,887.30
99,490.19
190,474.42
Net profit 1,321,510.93
240,142.21
-472,928.87
571,423.26
Total comprehensive1,321,510.93
240,142.21
-472,928.87
571,423.26
incomeDividends from jointsventure in the ReportingPeriod
0.00
0.00
0.00
0.00
Other notesNone
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMBEnding 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: RMBEnding balance/Reporting Period
Beginning balance/The same period of last
yearJoint ventures: -- --The total of following items accordin
shareholding proportions
-- --Associated enterprises: -- --The total of following items according to theshareholding proportions
-- --Other notesNone
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises toTransfer Funds to the CompanyNone
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMBName
The cumulative recognizedlosses in previous
The derecognized losses (or theshare of net profit) in Reporting
g to theThe accumulative unrecognized
losses in Reporting Period
accumulatively derecognized
PeriodOther notesNone
(7) The Unrecognized Commitment Related to Investment to Joint VenturesNone
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated EnterprisesNone
4. Significant Common Operation
Name Main operating place
Registration place
Nature of business
Proportion /share portionDirectly IndirectlyNotes to holding proportion or share portion in common operation different from voting proportion:
Not applicableFor common operation as a single entity, basis of classifying as common operationOther notes
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:
None
6. Other
NoneX. The Risk Related to Financial InstrumentsThe financial instruments of the Group include: monetary fund, the available for sale financial assets, borrowings, accountsreceivable and accounts payable, etc, for details, see disclosure in each note.
1. Market Risk
(1) Exchange Rate Risk
Exchange rate risk refers to risk of losses due to fluctuation in exchange rate. Sensitive analysis of foreign exchange risk was asfollows, which reflected the influence of changes in monetary assets and monetary liabilities on net profits and shareholders’ equitywhen the following listed foreign exchanges showed reasonable and possible changes under the hypothesis of other variablesconstant.
Item
Period-end
Period-begin
Change in net profit
Change in equity Change in net profit
| Change in net profit |
Change in equity of
of shareholders
shareholders
RMB down 2% against
HKD
798,543.04
| RMB down 2% against |
1,873,046.49
789,711.43
1,864,214.88
RMB up 2% against HKD
-798,543.04
-1,873,046.49
-789,711.43
-1,864,214.88
RMB down 2% against
USD
8,552.80
RMB down 2% against
8,552.80
8,538.49
8,538.49
RMB up 2% against USD
-8,552.80
-8,552.80
-8,538.49
-8,538.49
2. Credit Risk
The credit risk mainly occurred in bank deposit, accounts receivable and other receivables. The source of credit risk of financialassets was the default of the other party. The biggest risk exposure was equivalent to book value of the instruments.The Group’s working capital was in bank with higher credit rating, so there was no significant credit risk, nor significant losses dueto the default of other entity. Thus, the credit risk of working capital is relatively low.There were accounts receivable withdrawn individually in the Group and had withdrawn bad debt provision, which fully reveal theexistence of credit risk. Amount of balance of account receivables was RMB83,408,274.63 except the aforesaid had withdrawn baddebt provision, mainly was the account receivable of property management, of which was account receivable RMB10,912,833.18 ofTaobao (China) Software Co., Ltd. was the total property management costs of several serve district of Taobao (China) Software Co.,Ltd. Other client receivables were widely dispersed owners and tenants. The Group conducted continuous supervisor to the accountreceivables to ensure the Group not facing significant bad debt risk.
3. Liquidity Risk
The subsidiary of the Group monitor the cash flow and the need of itself, the headquarters of the finance department combine thecash flow of each subsidiary, continue to monitor the short term or long term capital needs to ensure maintain plenty of cash flow.Besides, according to the actual capital need of the Group, provided commitment of adequate emergency capital to meet the shortterm and long term capital need.XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMBItem
Ending fair valueFair value measurement
items at level 1
Fair value measurement
items at level 2
Fair value measurement
items at level 3
TotalI. Consistent fair valuemeasurement
-- -- -- --(I) Trading financial assets
3,622,435.75
3,622,435.75
1. Financial assets at fair
value through profit or loss
3,622,435.75
3,622,435.75
(2) Equity instrument
investment
3,622,435.75
3,622,435.75
II. Inconsistent fair value-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
The closing price in the national stock transfer system for small and medium sized enterprises on 28 June 2019
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters forConsistent and Inconsistent Fair Value Measurement Items at Level 2Not applicable
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters forConsistent and Inconsistent Fair Value Measurement Items at Level 3Not applicable
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning andEnding Carrying Value of Consistent Fair Value Measurement Items at Level 3Not applicable
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens ifConversion Happens among Consistent Fair Value Measurement Items at Different LevelsNot applicable
7. Changes in the Valuation Technique in the Current Period and the Reason for Such ChangesNot applicable
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair ValueNot applicable
9. Other
Not applicableXII. 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 shareheld by the
Proportion of votingrights owned by the
Company as theparent against the
Company (%)
Company as theparent against theCompany (%)Shenzhen
Co., Ltd
Shenzhen
Managingstate-owned assets
| Investment Holdings | ||
RMB25,349,000,000
63.82%
63.82%
Notes: Information on the Company as the parentNote: Shenzhen Investment Holdings Co., Ltd. is the final controller of the Company and also is a sole state-funded limited company.As a government department, Shenzhen State-owned Assets Supervision and Administration Bureau manage Shenzhen InvestmentHoldings Co., Ltd. on behalf of People’s Government of Shenzhen Municipality. Thus, the final controller of the Company isShenzhen State-owned Assets Supervision and Administration Committee of Shenzhen Government.The registered capital of Shenzhen Investment Holdings Co., Ltd. was changed into RMB25.349 billion on 4 December 2018. Theoriginal registered capital was RMB RMB23.149 billion.The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of ShenzhenGovernment.Other notes:
None
2. Subsidiaries of the Company
Refer to Note IX-1. Equity in Subsidiary for details.
3. Information on the Joint Ventures and Associated Enterprises of the CompanyRefer to Note IX-3. Equity in Joint Ventures or Associated Enterprises for details about significant joint ventures or associatedenterprises.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 CompanyOther notesNot applicable
4. Information on Other Related Parties
Name Relationship with the CompanyShenzhen Investment Holdings Co., Ltd.
Under the same control of the Company as the parent of the
CompanyOther notesNone
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: RMBRelated party Content Reporting Period
The approval trade
credit
Whether exceed tradecredit or not
Same period of lastyearInformation of sales of goods and provision of labor service
Unit: RMBRelated party Content Reporting Period Same period of last yearNotes on acquisition of goods and reception of labor serviceNot applicable
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
Unit: RMBName of theentruster/contractee
Name of theentrustee/contractor
Type Start date Due date Pricing basis
Income
recognized in this
Reporting Period
recognized in this
Notes:
Not applicableLists of entrust/contractee
Unit: RMBName of theentruster/contractee
Name of theentrustee/contractor
Type Start date Due date Pricing basis
Charge
recognized in this
Reporting Period
recognized in this
Notes:
Not applicable
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMBName of lessee Category of leased assets
The lease income confirmed inthe Reporting Period
The lease income confirmed inthe Same period of last yearThe Company was lessee:
Unit: RMBName of lessor Category of leased assetsThe lease fee confirmed in the The lease fee confirmed in the
Reporting Period Same period of last yearShenzhen Investment HoldingsCo., Ltd.
Office 133,177.08
130,562.40
Notes:
(4) Information on Related-party Guarantee
The Company was guarantor:
Unit: RMBSecured party Guarantee amount Start date End date
Execution accomplished
or notThe Company was secured party
Unit: RMBGuarantor: Guarantee amount Start date End date
Execution accomplished
or notNotes:
Not applicable
(5) Information on Inter-bank Lending of Capital of Related Parties
Unit: RMBRelated party Amount Start date End date NoteBorrowingLending
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Unit: RMBRelated party Content Reporting period Same period of last year
(7) Information on Remuneration for Key Management Personnel
Unit: RMBItem Reporting period Same period of last yearRemuneration for key managementpersonnel
4,115,229.51
3,661,480.66
(8) Other Related-party Transactions
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMBItem Related party
Ending balance Beginning balanceCarrying amount
Bad debt provision
Carrying amount
Bad debt provision
Other receivables
Shenzhen XinhaiHolding Co., Ltd.
1,057,899,990.18
0.00
Other receivables
Shenzhen XinhaiRongyao Real EstateDevelopment Co.,Ltd.
330,472,932.33
0.00
Other receivables
Shenzhen WufangPottery & PorcelainIndustrial Co., Ltd.
1,747,264.25
1,747,264.25
1,747,264.25
1,747,264.25
(2) Accounts Payable
Unit: RMBItem Related party Ending carrying amount Beginning carrying amount
Other payables
Shenzhen Jifa Warehouse Co.,Ltd.
29,296,665.14
29,296,665.14
Other payables
Tian’an International BuildingProperty ManagementCompany of Shenzhen
5,214,345.90
5,214,345.90
7. Commitments of Related Party
The Company signed the share transfer agreement with Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. in February2019, in which Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. will transfer 69% of shares in Shenzhen Rongyao RealEstate Development Co., Ltd. to the Company.The Company signed the repayment agreement with Shenzhen Xinhai Rongyao Real Estate Development Co., Ltd. and ShenzhenXinhai Holding Co., Ltd. at the same time, and made arrangement to the borrowings of RMB1390.6049 million of Shenzhen XinhaiRongyao Real Estate Development Co., Ltd. and its related company (Shenzhen Xinhai Holding Co., Ltd.) from Shenzhen RongyaoReal Estate Development Co., Ltd. according to the share transfer agreement. The borrowing should be paid off in three months fromthe completion date of the project removal (the agreement signed for completing the removal, compensation and settlement in theproject scope should be prevailed). The rest RMB300 million can be paid off in one year from the completion date of the projectremoval, but should add 11% annual interest rate to pay the interest on borrowing per day to Shenzhen Rongyao Real EstateDevelopment Co., Ltd. from the completion date of project removal to the date of borrowing being paid off.
As of June 30, 2019, the borrowing balance is RMB1388.3729 million.
8. Other
Not applicableXIII. 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
None
5. Other
XIV. Commitments and Contingency
1. Significant Commitments
Significant Contingency on Balance Sheet Date
Item Period-endLarge amount contract of real estate development projectsigned but derecognized in financial statements.
498,279,835.00
Total
498,279,835.00
2. Contingency
(1) Significant Contingency on Balance Sheet Date
1) Pending Action
The action about transferring Jiabin Building contentious matter ( Now rename as: Longyuan Development Building; former nameJinlihua Commercial Plaza
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong Property
Development 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 October 31, 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 April 29, 2019, Guangdong Higher People's Court adjudicatedto reject the appeal and maintain the original judgment.
2) Guarantee
The Company’s subsidiary Dongguan International Trade Center Changsheng Real Estate Development Co., Ltd. belongs toprovisional qualification real estate development enterprise, when dealing with the application of approval of the presale of houses,the commercial housing quality guarantee after the liquidations of enterprise bankruptcy, dissolution, Dongguan International TradeCenter Changsheng Real Estate Development Co., Ltd. submitted guarantee RMB12,402,160.00 to Bank of Communications,Duangguang, Dalang Branch, the bank issue 9 Guarantee Letter for irrevocable goods, of which one guarantee of RMB1,468,870.00,from 30 June 2015 to 31 December 2020, and the remained were RMB10,933,290.00 from 1 July 2015 to 31 December 2020. As ofJune 30, 2019, the Company has get the original L/G back from Land and Resources Bureau.
As 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 June 30, 2019, the balance of the cash deposit that have not beenreleased is RMB1,117,507.63. That guarantee will be released on the date when the mortgage money is paid off.
The 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 June 30, 2019 is RMB517.4278 million 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.
On April 20, 2018, Shenzhen Huangcheng Real Estate Co., Ltd. (hereinafter referred to as “Huangcheng Real Estate”), asubsidiary of the Company, signed a fixed asset borrowing contract with the Shenzhen Branch of Bank of Shanghai Co., Ltd., inwhich, the land use right of Golden Collar’s Resort was mortgaged and the Company agreed to provide guarantee for HuangchengReal Estate. In November 2018, due to the pre-sale of Golden Collar’s Resort Project, mortgage of the land use right was releasedaccording to the requirements of the Housing Authority. Only the credit guarantee provided by the Company for Huangcheng RealEstate was still effective. As of the end of the period, the details about the remaining outstanding guarantee are as follows:
Secured party Content Guarantee period AmountShenzhen Huangcheng Real EstateCo., Ltd.
Shenzhen Branch ofBank of Shanghai
20 June 2018 to 20 June 2021
1,000,000.00Total 1,000,000.00
The Company took 69% of shares in Shenzhen Rongyao Real Estate Development Co., Ltd. as pledge to obtain the long-termborrowing of RMB2.193 billion from Sichuan Trust Co., Ltd. to the holding subsidiary, Shenzhen Rongyao Real Estate DevelopmentCo., Ltd. from 13 February 2018 to 12 February 2023 with 11% annual interest rate. As of the period-end, the borrowing balance isRMB2.193 billion.
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make RelevantStatementsThere was no significant contingency in the Company.
3. Other
NoneXV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Unit: RMBItem Content
Influence number to thefinancial position and operating
results
Reason of inability to estimateinfluence number
2. Profit Distribution
Unit: RMBProfits or dividends planned to distribute
Reviewed and approved profits or dividends declared to distribute
3. Sales Return
Not applicable
4. Notes to Other Events after Balance Sheet Date
NoneXVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMBContent Processing program
Name of the influenced reportitems 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 taxexpense
Net profit
Profit fromdiscontinuedoperationsattributable toowners of theCompany as theparentOther notesNot applicable
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
The Group’s business includes real estate business, property management, catering services, and other business (including:
mechanical and electrical professional maintenance business, automobile service, engineering supervision, parking lot, because of theabove businesses income are small, approve them being merged), etc. The Group separately organized and managed according to thebusiness and the properties of products and services provided. Each business division of the Group was a business group, providedthe facing risk and obtained rewards and products different from other division.A. Real estate business divisions: real estate development, sales and rentalB. The property management business divisions: building managementC. Diet services: catering serviceD.Other business: operating mechanical and electrical professional maintenance business, automobile service, engineering
supervision business, and parking lotThe management for the purpose of considering the decision of resources and evaluation of performance separately managed theoperating results of each unit of business.
(2) The Financial Information of Reportable Segment
Unit: RMBItem Real estate
Propertymanagement
Catering service
Others
Offset amongsegment
TotalOperationrevenue
500,233,278.93
256,203,525.70
12,217,150.20
12,664,051.38
-25,927,926.25
755,390,079.96
Cost of sales 158,983,932.42
225,715,536.57
11,050,201.48
11,252,333.01
-25,032,915.00
381,969,088.48
Total profit 117,011,074.96
16,745,873.77
116,320.72
286,097.30
-6,663,493.55
127,495,873.20
Total assets 11,451,747,307.04
466,428,336.08
4,569,695.49
9,616,943.86
-2,812,530,061.05
9,119,832,221.42
Total liabilities
6,500,220,464.92
368,621,406.69
2,192,385.21
7,409,339.68
-1,181,213,821.82
5,697,229,774.68
(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
Not applicable
(4) Other notes
Foreign trade income regarding businesses
Item Reporting Period Same period of last year
Real estate
497,959,680.37
594,838,729.82
Property management
243,019,673.20
213,379,017.06
Catering service
11,743,534.28
11,510,169.69
Other
2,667,192.11
5,286,068.40
Total
755,390,079.96
825,013,984.97
Foreign trade income regarding geography and total non-current assetsCountries or regions Total foreign trrade income Total non-current assets
Reporting Period
Same period oflast year
Reporting Period
Period-beginMainland of China 755,214,802.19
825,013,984.97
424,246,378.39
434,417,428.34
Hong Kong 175,277.77
1,138,973.11
1,144,430.25
Other regions
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Not applicable
8. Other
NoneXVII. 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 balanceCarrying amount
| Bad debt provision | |
Carryingvalue
Carrying amount
Bad debt provision
Carryingvalue
ProportionAmount
| Amount |
Withdrawalproportion
Amount
ProportionAmount
WithdrawalproportionAccounts receivable
for which bad debt
for which bad debtprovision separately
provision separatelyaccrued
96,702,2
69.40
accrued
97.55%
96,702,2
69.40
100.00%
0.00
96,702,26
9.40
98.03%
96,702,26
9.40
100.00%
0.00
Of which:
Accounts receivablewith significantsingle amount forwhich bad debtprovision separatelyaccrued
96,647,8
89.05
97.50%
96,647,8
89.05
100.00%
0.00
96,647,88
9.05
97.98%
96,647,88
9.05
100.00%
0.00
Accounts receivablewith insignificantsingle amount forwhich bad debtprovision separatelyaccrued
54,380.3
0.05%
54,380.3
100.00%
0.00
54,380.35
0.05%
54,380.35
100.00%
0.00
Accounts receivablewithdrawal of baddebt provision bygroup
2,428,00
4.32
2.45%
72,840.1
3.00%
2,355,164
.19
1,940,446
.37
1.97%
86,951.65
4.48%
1,853,494.7
Of which:
Accounts receivablewithdrawal of bad
2,428,00
4.32
2.45%
72,840.1
3.00%
2,355,164
.19
1,940,446.37
1.97%
86,951.65
4.48%
1,853,494.7
debt provision byaging methodTotal
99,130,2
73.72
100.00%
96,775,1
09.53
97.62%
2,355,164.19
98,642,71
5.77
100.00%
96,789,22
1.05
98.12%
1,853,494.7
Accounts receivable for which bad debt provision separately accrued: RMB96,702,269.40
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportion
Reason for withdrawal
Shenzhen JiyongProperties & ResourcesDevelopment Company
93,811,328.05
93,811,328.05
100.00%
Involved in lawsuit andwith no executableproperty, please refer toSection X FinancialStatement-(XIV)-2 (1)Shenzhen Tewei IndustryCo., Ltd.
2,836,561.00
2,836,561.00
100.00%
Not recovered for a longtimeLuohu District EconomicDevelopment Company
54,380.35
54,380.35
100.00%
Not recovered for a longtimeTotal 96,702,269.40
96,702,269.40
-- --Accounts receivable for which bad debt provision separately accrued: RMB96,702,269.40
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportion
Reason for withdrawal
Accounts receivable for which bad debt provision separately accrued:
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportion
Reason for withdrawal
Withdrawal of bad debt provision by group:
Unit: RMBName
Ending balanceCarrying amount Bad debt provision Withdrawal proportionWithin 1 year (including 1 year)
2,428,004.32
72,840.13
3.00%
Total 2,428,004.32
72,840.13
--Notes to the determination basis for the group:
For details, please refer to Part X Financial Statement-V-10.
Withdrawal of bad debt provision by group:
Unit: RMB
Name
Ending balanceCarrying amount Bad debt provision Withdrawal proportionNotes 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: RMBAging Ending balanceWithin 1 year (including 1 year) 72,840.13
Over 5 years 96,702,269.40
Total 96,775,109.53
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting PeriodBad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period:
Unit: RMBCategory Beginning balance
Changes in the Reporting Period
Ending balanceWithdrawal Reversal or recovery
Write-offBad debt provision 96,789,221.05
-14,111.52
96,775,109.53
Total 96,789,221.05
-14,111.52
96,775,109.53
Significant amount of reversed or recovered bad debt provision:
Unit: RMBName of entity Amount reversed or recovered Way of recoveryNot applicable
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMBItem Amount verifiedOf which the verification of significant other accounts receivable:
Unit: RMBName of entity Nature Amount verified
Reason forverification
Verificationproceduresperformed
Whether generatedfrom connected
transactionsNotes to verification of accounts receivable:
None
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears PartyName of entity Relationship with
the Company
Amount Age limit
accounts receivable
(%)
Proportion to the totalShenzhen Jiyong Properties
Shenzhen Jiyong Properties& Resources Development
Company
Non-related party
& Resources Development
93,811,328.05
Over 5 years
94.63
94.63
Shenzhen Tewei Industry
Co., Ltd.
Non-related party
| Shenzhen Tewei Industry |
2,836,561.00
Over 5 years
Shenzhen
2.86
Rainbow
Department Store Co., Ltd.
Rainbow
Non-related party
809,747.85
1 to 5 years
0.82
CPIC Non-related party
0.82
563,842.00
Within 1 year
0.57
0.57
Shenzhen Branch of Ping An
| Shenzhen Branch of Ping An |
k Co., Ltd.
Non-related party
Ban
160,741.00
Within 1 year
0.16
Total — 98,182,219.90
0.16
—
| 99.70 |
(5) Accounts Receivable Derecognized due to the Transfer of Financial AssetsNone
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement ofAccounts ReceivableNoneOther notes:
None
2. Other Accounts Receivable
Unit: RMBItem Ending balance Beginning balanceInterest receivable 6,838,789.22
8,229,503.58
Dividend receivable 0.00
0.00
Other receivables 1,095,277,746.58
1,298,486,323.35
Total 1,102,116,535.80
1,306,715,826.93
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balanceFixed time deposit 6,838,789.22
8,229,503.58
Total 6,838,789.22
8,229,503.58
2) Significant Overdue Interest
Entity Ending balance Overdue time Overdue reason
Whether occurredimpairment and itsjudgment basisOther notes:
None
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMBItem (or investees) Ending balance Beginning balanceTotal 0.00
0.00
2) Significant Dividends Receivable Aging over 1 Year
Unit: RMBItem (or investees) Ending balance Aging Reason
Whether occurredimpairment and itsjudgment basis
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
None
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMBNature Ending carrying amount Beginning carrying amountMargin 2,218,894.63
2,218,894.63
Pretty cash 0.00
174,311.00
Payment on behalf 58,560.84
511,835.47
Intercourse fund 23,113,094.54
130,739,271.12
Account receivable to subsidiary 1,102,589,953.62
1,197,974,900.35
Total 1,127,980,503.63
1,331,619,212.57
2) Information of Withdrawal of Bad Debt Provision
Unit: RMBBad debt provision
First stage Second stage Third stage
TotalExpected credit lossof the next 12 months
Expected loss in theduration (credit impairmentnot occurred)
Expected loss in theduration (credit impairment
occurred)Balance of 1 January2019
8,872,831.22
24,260,058.00
33,132,889.22
Balance of 1 January2019 in the currentperiod
—— —— —— ——
period
-66,673.88
| Withdrawal of the current | ||||
-363,458.29
-430,132.17
Balance of 30 June 2019
8,806,157.34
23,896,599.71
32,702,757.05
Changes of carrying amount with significant amount changed of loss provision in the Reporting Period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMBAging Ending balanceWithin 1 years (including 1 year) 994,596,764.14
1 to 2 years 7,784.80
2 to 3 years 139,960.65
Over 5 years 133,235,994.04
Total 1,127,980,503.63
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMBCategory Beginning balance
Changes in the Reporting Period
Ending balanceWithdrawal Reversal or recoveryBad debt provision 33,132,889.22
-430,132.17
32,702,757.05
Total 33,132,889.22
-430,132.17
32,702,757.05
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-430132.17Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Unit: RMBName of entity Amount reversed or recovered Way of recoveryNone
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMBItem AmountOf which, the verification of significant other receivables:
Unit: RMBName of the entity
Nature Amount Reason Procedure
Whether occurredbecause ofrelated-partytransactionsNotes to the verification of other receivables:
None
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMBName of the entity
Nature Ending balance Aging
Proportion to ending
| balance of total other |
receivables%
Ending balance ofbad debt provision
SZPRD XuzhouDapeng Real EstateDevelopment Co.,Ltd.
Related party incombination scope
214,838,221.77
Within 1 year 19.49%
Shum Yip PropertiesDevelopment Limited
Related party incombination scope
108,045,715.80
Over 5 years 9.80%
7,414,657.58
SZPRD YangzhouReal EstateDevelopment Co.,Ltd.
Related party incombination scope
99,379,836.60
Over 5 years 9.02%
ShenzhenHuangcheng PropertyManagement Co., Ltd.
Related party incombination scope
72,915,906.77
Within 1 year 6.62%
Shanghai Yutong RealEstate Co., Ltd.
Non-related party
5,676,000.00
Over 5 years 0.52%
5,676,000.00
Total -- 500,855,680.94
--
13,090,657.58
6) Accounts Receivable Involving Government Subsidies
Unit: RMBName of the entity
Project of government
subsidies
Ending balance Ending aging
Estimated recoveringtime, amount and basis
None
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
None
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other Receivables
NoneOther notes:
None
3. Long-term Equity Investment
Unit: RMBItem
Ending balance Beginning balance
Depreciationreserve
Carrying value
| Carrying amount | Carrying amount | ||
Depreciationreserve
Carrying value
Investment tosubsidiaries
777,466,672.93
69,964,000.00
707,502,672.93
269,466,672.93
69,964,000.00
199,502,672.93
Investment tojoint ventures andassociatedenterprises
59,763,723.95
18,983,614.14
40,780,109.81
58,982,897.38
18,983,614.14
39,999,283.24
Total 837,230,396.88
88,947,614.14
748,282,782.74
328,449,570.31
88,947,614.14
239,501,956.17
(1) Investment to Subsidiaries
Unit: RMBInvestee
Beginningbalance
Increase Decrease Ending balance
Depreciationreservewithdrawn
Ending balance of
depreciationreserveShenzhenHuangcheng RealEstate Co., Ltd.
35,552,671.93
Ending balance of
35,552,671.93
SZPRD RealEstateDevelopment Co.,Ltd.
30,950,000.00
30,950,000.00
SZPRD YangzhouReal EstateDevelopment Co.,Ltd.
50,000,000.00
50,000,000.00
Dongguan ITCChangsheng RealEstateDevelopment Co.,Ltd.
20,000,000.00
20,000,000.00
Shenzhen20,000,000.00
20,000,000.00
Center PropertyManagement Co.,Ltd.ShenzhenInternational
International TradeTrade
Center CateringCo., Ltd.
1.00
Trade
1.00
1,600,000.00
Shenzhen PropertyConstructionSupervision Co.,Ltd.
3,000,000.00
3,000,000.00
SZPRD HousingAssets Operationand ManagementCo., Ltd.
40,000,000.00
40,000,000.00
ZhanjiangShenzhen RealEstateDevelopment Co.,Ltd.
0.00
0.00
2,530,000.00
Shum YipPropertiesDevelopment Co.,Ltd.
0.00
0.00
15,834,000.00
SZPRD XuzhouDapeng RealEstateDevelopment Co.,Ltd.
0.00
0.00
50,000,000.00
ShenzhenRongyao RealEstateDevelopment Co.,Ltd.
508,000,000.00
508,000,000.00
Total 199,502,672.93
508,000,000.00
707,502,672.93
69,964,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMBInvestee
BeginninIncrease/decreaseEnding Ending
Additionalinvestment
Reducedinvestmen
t
| g balance | Gains and |
lossesrecognized under
method
the equity
Adjustment ofothercomprehensiveincome
Changesof otherequity
Cashbonus orprofitsannounced to issue
Withdrawal ofimpairmentprovision
Other
balance
balanceofdepreciationreserve
I. Joint venturesShenzhenJifaWarehouse Co.,Ltd.
34,103,84
0.40
660,755.4
34,764,59
5.87
Tian’anInternationalBuildingPropertyManagementCompanyofShenzhen
5,895,442
.84
120,071.1
6,015,513
.94
Subtotal
39,999,28
3.24
780,826.5
40,780,10
9.81
II. Associated enterprisesShenzhenWufangPottery &PorcelainIndustrialCo., Ltd.
0.00
0.00
18,983,61
4.14
Subtotal
0.00
0.00
18,983,61
4.14
Total
39,999,28
3.24
780,826.5
40,780,10
9.81
18,983,61
4.14
(3) Other Notes
None
4. Operating Revenue and Cost of Sales
Unit: RMBItem
Reporting Period Same period of last yearOperating revenue
Cost of sales Operating revenue Cost of salesMain operations 341,910,051.35
64,045,206.33
33,455,791.84
11,132,664.03
Other operations
659,988.00
659,988.00
Total 341,910,051.35
64,705,194.33
33,455,791.84
11,792,652.03
Whether the Company has executed the new income standards
□ Yes √ No
Other notes:
None
5. Investment Income
Unit: RMBItem Reporting Period Same period of last yearLong-term equity investment incomeaccounted by equity method
780,826.57
49,247.20
Investment income of entrusted loans 16,099,318.67
Total 16,880,145.24
49,247.20
6. Other
Not applicableXVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMBItem Amount NoteGains/losses on the disposal of non-currentassets
-36,963.65
Disposal of retail assetsOther non-operating income and expenseother than the above
121,247.48
Income from penalty and liquidated
damagesLess: Income tax effects 21,070.96
Total 63,212.87
--
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-dilutedNet profit att
shareholders of the Company
3.09%
| ributable to ordinary | ||
0.1741
0.1741
Net profit attributable to ordinaryshareholders of the Company after
deduction of non-
shareholders of the Company afterrecurring profit or
loss
3.09%
recurring profit or
0.1740
0.1740
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 StatedNot applicable
4. Other
Part XI Documents Available for ReferenceI. The financial statements with the signatures and stamps of the Company’s legalrepresentative, head of financial affairs and head of the financial department; andII. The originals of all the Company’s documents and announcements disclosed to the publicvia newspapers designated by the CSRC in the Reporting Period.