Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.
Semi-annual Report 2016
2016-021
August 2016
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section I Important Statements, Contents and Terms
The board of directors (the “Board”), the board of supervisors (the “Board of Supervisors”) as well
as the directors, supervisors and senior management of Shenzhen Special Economic Zone Real
Estate & Properties (Group) Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy
and completeness of the contents of the Report, and shall be jointly and severally liable for any false
representation, misleading statements or material omissions in the Report.
All the directors attended the board meeting for the review of the Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into
share capital.
Zhou Jianguo, Board Chairman, Chen Maozheng, GM, Tang Xiaoping, accounting head for the
Report, and Qiao Yanjun, head of the accounting organ (head of accounting), hereby guarantee that
the Financial Report carried in the Report is factual, accurate and complete.
The Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Contents
Semi-annual Report 2016 .................................................................................................................. 1
Section I Important Statements, Contents and Terms .................................................................... 2
Section II Corporate Profile .............................................................................................................. 5
Section III Highlights of Accounting Data and Financial Indicators ............................................ 7
Section IV Report by the Board of Directors .................................................................................. 9
Section V Significant Events ........................................................................................................... 16
Section VI Share Changes and Shareholders’ Profile ................................................................... 22
Section VII Preference Shares......................................................................................................... 26
Section VIII Directors, Supervisors and Senior Management ..................................................... 27
Section IX Financial Report ............................................................................................................ 29
Section X Documents Available for Reference ............................................................................ 112
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Terms
Term Meaning
Shenzhen Special Economic Zone Real Estate & Properties (Group)
Company, the Company, the Group
Co., Ltd.
The holding company Shenzhen Investment Holdings Co., Ltd.
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section II Corporate Profile
I Corporate information
Stock name SPG A（SPG B） Stock code 000029（200029）
Changed stock name (if
---
any)
Stock exchange Shenzhen Stock Exchange
Company name in
深圳经济特区房地产(集团)股份有限公司
Chinese
Abbr. (if any) 深房集团
Company name in
ShenZhen Special Economic Zone Real Estate&Properties (Group).co.，Ltd．
English (if any)
Abbr. (if any) SPG
Legal representative Zhou Jianguo
II Contact information
Board Secretary Securities Representative
Name Mr. Chen Ji Mr. Luo Yi
47/F, SPG Plaza, Renmin South 47/F, SPG Plaza, Renmin South
Address Road, Shenzhen, Guangdong Road, Shenzhen, Guangdong
Province, P.R.China Province, P.R.China
Tel. (86 755) 82293000-4718 (86 755) 82293000-4715
Fax (86 755) 82294024 (86 755) 82294024
E-mail spg@163.net spg@163.net
III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email
address of the Company during the Reporting Period?
□ Applicable √ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
2. About information disclosure and the place where the Report is kept
Did any change occur to information disclosure media and the place where the Report is kept during the Reporting
Period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for
disclosing the Report and the location where the Report is placed did not change during the Reporting Period. The
said information can be found in the 2015 Annual Report.
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable √ Not applicable
The registration date and place of the Company, its business license No., taxation registration No. and
organizational code did not change during the Reporting Period. The said information can be found in the 2015
Annual Report.
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section III Highlights of Accounting Data and Financial Indicators
I Major accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year
due to change in accounting policies or correction of accounting errors
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 1,097,886,969.68 1,147,552,773.96 -4.33%
Net profit attributable to
134,761,121.51 186,407,824.38 -27.71%
shareholders of the Company (RMB)
Net profit attributable to
shareholders of the Company
127,321,586.10 186,128,156.90 -31.59%
excluding exceptional profit and loss
(RMB)
Net cash flows from operating
426,167,980.76 455,886,943.95 -6.52%
activities (RMB)
Basic earnings per share
0.1332 0.1843 -27.73%
(RMB/share)
Diluted earnings per share
0.1332 0.1843 -27.73%
(RMB/share)
Weighted average return on equity
5.62% 8.27% -2.65%
(%)
As at the end of the As at the end of last
+/- (%)
Reporting Period year
Total assets (RMB) 4,476,971,687.18 4,179,937,120.75 7.11%
Net assets attributable to
2,464,895,851.04 2,331,704,116.07 5.71%
shareholders of the Company (RMB)
II Differences in accounting data under domestic and overseas accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under
international and Chinese accounting standards
√ Applicable □ Not applicable
Unit: RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
the Company the Company
Same period of last
Reporting Period Closing amount Opening amount
year
According to Chinese
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under overseas
and Chinese accounting standards
√ Applicable □ Not applicable
Unit: RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
the Company the Company
Same period of last
Reporting Period Closing amount Opening amount
year
According to Chinese
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
Items and amounts adjusted according to overseas accounting standards
According to overseas
134,761,121.51 186,407,824.38 2,464,895,851.04 2,331,704,116.07
accounting standards
3. Reason for any differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
III Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Profit/loss on disposal of non-current assets (including
-2,647.50
offset asset impairment provisions)
We have recovered the
amount involved in the
lawsuit with Luofu
Impairment provision reversal for accounts receivable
4,800,000.00 Mountain Travel Corp., and
on which the impairment test is carried out separately
the relevant bad-debt
provision has thus been
reversed
Compensation from the
Non-operating revenue and expense other than the
5,115,528.04 lawsuit with Luofu
above
Mountain Travel Corp.
Less: Corporate income tax 2,473,345.13
Total 7,439,535.41 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the
said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
Section IV Report by the Board of Directors
I Overview
2016 marked the opening of China’s 13th Five-Year Plan for National Economy and Social
Development, which included a macro-economic policy of steady growth. However, the downward
pressure on economy was mounting and the real estate market polarized. To deal with that, we
carefully drew up our development strategies, properly ran our main business, strictly controlled
costs and constantly improved our management capability. Meanwhile, we beefed up project
construction and marketing and tried to increase our professionalism and brand influence for a
stable growth.
II Analysis of main business
Overview
For the Reporting Period, we achieved operating revenues of RMB1,097.89 million, down 4.33%
from the same period of last year; operating profit of RMB175.90 million, a 29.48% decrease on a
year-on-year basis; total profit of RMB181.01 million, decreasing 27.55% from a year earlier; and
net profit attributable to our shareholders of RMB134.76 million, down 27.71% from the same
period of last year, mainly because our real estate revenue fell from a year earlier.
YoY movements in major financial data
Unit: RMB
Reporting Same period of
YoY +/-% Main reason for movement
Period last year
1,097,886,969.6 1,147,552,773.9
Operating revenues -4.33%
8
Operating costs 816,027,244.11 697,645,876.15 16.97% Decreased gross profit margin
Decrease in sales agency fees and
Selling expenses 5,107,741.43 17,246,176.75 -70.38%
commissions
Administrative
26,957,331.77 28,705,983.90 -6.09%
expenses
Construction of new real estate project started
Finance costs -7,048,153.64 24,955,931.85 -128.24% in the Reporting Period and the relevant
interest was thus capitalized
Corporate income tax 46,284,687.48 63,426,291.44 -27.03% Decreased total profit
Net cash flows from
426,167,980.76 455,886,943.95 -6.52%
operating activities
Increase in cash received as return on
Net cash flows from investment and decrease in cash paid to
-20,267.34 -972,035.99 97.91%
investing activities acquire fixed assets, intangible assets and
other long-term assets
Net cash flows from
-99,464,268.41 -158,399,191.80 37.21% Decrease in loan repayments
financing activities
Net increase in cash
326,931,012.56 296,509,736.30 10.26%
and cash equivalents
Business tax and
86,368,209.71 129,612,334.64 -33.36% Decreased real estate revenue
surtaxes
Non-operating 5,213,457.94 461,705.12 1,029.17% Compensation from the lawsuit with Luofu
Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd. Semi-annual Report 2016
revenue Mountain Travel Corp.
Asset impairment
-4,800,000.00 159,351.00 -3,112.22% Reversal of bad-debt provision
loss
Major changes in the profit structure or sources of the Company during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Reporting Period progress of the future development planning in the disclosed documents of the Company such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Review the progress of any previously disclosed business plan in the Reporting Period:
Not applicable.
III Breakdown of main business
Unit: RMB
Increase/decrea Increase/decrea
Increase/decrea
se of operating se of gross
se of operating
Operating Gross profit revenue over profit rate over
Operating cost cost over the
revenue rate the same the same
same period of
