Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Report for the Third Quarter of 2014
2014-022
October 2014
Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
Except for the following Directors, other Directors all attended the board session for reviewing this report in person.
|||||
|-|-|-|-|
|Name|Position|Reason|Name of the mandatory|
|Liu Quanmin|Independent Director|Official business|Song Botong|

Zhou Jianguo, Chairman of the Company, Chen Maozheng, General Manager, Tang Xiaoping, chief of the accounting work, and Qiao Yanjun, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Statements enclosed in this report are factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Section II. Financial Highlights& Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error?
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||30 Sept. 2014||31 Dec. 2013||Increase/decrease (%)||
|Total assets (RMB Yuan)|4,429,712,829.72||4,215,099,296.67||5.09%||
|Net assets attributable to|1,919,924,325.32||1,863,347,135.33||3.04%||
|shareholders of the Company|||||||
|(RMB Yuan)|||||||
|||YoY increase/decrease||||YoY increase/decrease|
||Jul.-Sept. 2014|||Jan.-Sept. 2014|||
|||(%)||||(%)|
|Operating revenues (RMB Yuan)|294,764,542.65|91.05%||867,838,901.96||82.71%|
|Net profit attributable to|22,272,401.09|||57,004,777.82|||
|shareholders of the Company||531.25%||||243.84%|
|(RMB Yuan)|||||||
|Net profit attributable to|||||||
|shareholders of the Company after|21,712,479.80|3,524.76%||56,156,553.79||449.54%|
|extraordinary gains and losses|||||||
|(RMB Yuan)|||||||
|Net cash flows from operating||||237,793,355.50|||
||--|--||||2,031.36%|
|activities (RMB Yuan)|||||||
|Basic EPS (RMB Yuan/share)|0.0220|528.57%||0.0563||243.29%|
|Diluted EPS (RMB Yuan/share)|0.0220|528.57%||0.0563||243.29%|
|Weighted average ROE (%)|1.17%|0.96%||3.01%||2.00%|

 Items and amounts of extraordinary gains and losses
√Applicable□Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount as of Jan.-Sept. 2014|Note|
|Gains/losses on the disposal of non- current assets (including the|||
||-70,996.24||
|offset part of asset impairment provisions)|||
|||Abandoned deposit income and|
|Other non-operating income and expenses than the above|1,201,961.62||
|||metro compensations|
|Less: Income tax effects|282,741.35||
|Total|848,224.03|--|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable√ Inapplicable
No such cases during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end
Unit: share
||||||||
|-|-|-|-|-|-|-|
|Total number of common|||||||
|||71,508|||||
|shareholders at the period-end|||||||
|Shareholdings of the top ten common shareholders|||||||
|||||Number of|Pledged or frozen shares||
|Name of|Nature of|Shareholding|Number of the||||
|||||restricted shares|||
|shareholder|shareholder|percentage|shares held||Status of shares|Number of shares|
|||||held|||
|ShenzhenInvestmentHoldings Co., Ltd.|State-ownedcorporation|63.55%|642,884,262|0|||
|ShenzhenShenzhilvInvestmentManagement Co.,Ltd.|Domesticnon-state-ownedcorporation|0.86%|8,715,024|0|||
|Wen Jianjun|Domesticindividual|0.42%|4,222,892|0|||
|Zeng Xiaolan|Domesticindividual|0.40%|4,063,306|0|||
|Wang Ailan|Domesticindividual|0.20%|2,033,281|0|||
|Li Yuemei|Domesticindividual|0.19%|1,922,389|0|||
|YunnanInternational TrustCo., Ltd.－RuihuiAssembled FundsTrust Plan|State-ownedcorporation|0.18%|1,800,000|0|||
|GUOTAI JUNAN F|oreign|0.17%|1,713,150|0|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|SECURITIES(HONGKONG)LIMITED|corporation||||||
|ZRGG － RongjinNo. 26 Funds TrustContract|State-ownedcorporation|0.14%|1,400,000|0|||
|Wang Douhua|Domesticindividual|0.13%|1,286,300|0|||
|Shareholdings of the top ten non-restricted common shareholders|||||||
|||Number of non-restricted common shares held at the|||Type of shares||
|Name of shareholder|||||||
|||period-end|||Type|Number|
|Shenzhen Investment Holdings Co.,Ltd.||642,884,262|||RMB ordinary||
||||||share||
|Shenzhen Shenzhilv InvestmentManagement Co., Ltd.||8,715,024|||RMB ordinary||
||||||share||
|Wen Jianjun||4,222,892|||RMB ordinary||
||||||share||
|Zeng Xiaolan||4,063,306|||RMB ordinary||
||||||share||
|Wang Ailan||2,033,281|||RMB ordinary||
||||||share||
|Li Yuemei||1,922,389|||RMB ordinary||
||||||share||
|Yunnan International Trust Co., Ltd.－Ruihui Assembled Funds TrustPlan||1,800,000|||||
||||||RMB ordinary||
||||||share||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||1,713,150|||Domestically||
||||||listed foreign||
||||||share||
|ZRGG－Rongjin No. 26 Funds TrustContract||1,400,000|||RMB ordinary||
||||||share||
|Wang Douhua||1,286,300|||RMB ordinary||
||||||share||
|Explanation on associated|||||||
|relationship or persons acting in|||||||
|||Unknown|||||
|concert among the above- mentioned|||||||
|shareholders|||||||
|Top ten non-restricted common|||||||
|||Naught|||||
|shareholders taking part in margin|||||||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||
|-|
|financing and securities lending (if|
|any)|

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed buy-back in the reporting period?
□ Yes√ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the period-end
□ Applicable√ Inapplicable
Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Inapplicable
1. Influence of the amended accounting standards on the consolidated statements of the Company
According to the amended<Accounting Standards for Business Enterprises No. 2—Long-term EquityInvestment>, the long-term equity investments that had no offer in the active market and their fair value could not be reliably measured in investees that the Company did not have control, joint control or significant influence on were treated according to the<Accounting Standard for Business Enterprises No.22—Recognition and Measurement of FinancialInstruments>. As such, the long-term equity investments (RMB 12 million in book value as at the end of Sept. 2014) were restated as available-for-sale financial assets, and the
year-beginning figure in the consolidated statements were also adjusted accordingly.
Changes of the equity-holdings of the Company in Shantou Small-and Medium Enterprise Financing Guarantee Co., Ltd.:
||||||
|-|-|-|-|-|
|Investee|Investment cost (RMBTen thousand)|Equity-holdingpercentage in theinvestee (%)|Accounting title beforethe change|Accounting title afterthe change|
|Shantou Small-andMedium EnterpriseFinancing GuaranteeCo., Ltd.|1,200|10%|Long-term equity investment|Available-for-sale financial assets|

2. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
For Jan.-Sept. 2014, the Company achieved operating revenues of RMB 867.8389 million, up82.71% when compared with the same period of last year; operating profits of RMB 81.3865 million, soaring339.94% year on year; total profits of RMB 82.5175 million, representing a year-on-year rise of232.02%; and net profits attributable to shareholders of the Company of RMB 57.0048 million, up243.84% year on year.
For Jan.-Sept. 2014, the real estate division of the Company carried over an income of RMB 411.8892 million, up347.22% year on year, mainly from the Chuanqi Hill Project.
Unit: RMB Yuan
|||||
|-|-|-|-|
|30 Sept. 2014|31 Dec. 2013|Increase/decrease (%)|Main reason for the change|
|32,128,944.49|12,206,598.30|163.21%|The prepayments for materials andthe noumenon maintenance fundswere not carried over yet.|
|60,024,383.44|3,451,107.04|1639.28%|The taxes on the house purchaseadvances and the constructionadvances were paid.|
|915,501,007.82|312,967,028.85|192.52%|House purchase advancesincreased.|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
|||||
|-|-|-|-|
|19,649,333.13|37,159,445.41|-47.12%|The annual salaries for last yearwere paid in the current period.|
|34,726,927.34|148,006,651.37|-76.54%|The enterprise income tax for lastyear was paid in the current period.|
|Jan.-Sept. 2014|Jan.-Sept. 2013|Increase/decrease (%)|Main reason for the change|
|867,838,901.96|474,974,336.20|82.71%|The income carried over from theChuanqi Hill Project|
|61,785,122.95|35,287,444.46|75.09%|Operating revenues increased.|
|20,943,800.69|11,892,013.30|76.12%|The marketing & promotionexpenses and the intermediarycommissions increased.|
|13,904,377.36|-1,762,106.33|889.08%|The capitalized interest decreased.|
|1,374,647.24|6,532,696.24|-78.96%|Some fixed assets were disposed inthe same period of last year.|
|25,455,598.08|8,215,293.36|209.86%|Total profits increased.|
|-625,466.56|1,766,105.83|-135.42%|The foreign- currency statementtranslation difference decreaseddue to exchange rate fluctuations.|
|Jan.-Sept. 2014|Jan.-Sept. 2013|Increase/decrease (%)|Main reason for the change|
|237,793,355.50|-12,312,244.25|2031.36%|The cash paid for goods andservices decreased.|
|-1,133,662.00|4,656,321.37|-124.35%|The net cash received fromdisposal of fixed assets decreased.|
|286,898,693.68|428,638,329.53|-33.07%|The cash received as borrowingsdecreased.|
|270,609,041.96|||The shares in profits of subsidiaries|
|-229,186,782.42|-564,028,429.22|59.37%|The shares in profits of subsidiaries|

 II. Progress and influence of significant events, as well as the analysis and explanation on solutions
□ Applicable√ Inapplicable
Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. III. Commitments made by the Company or shareholders holding over5% of the Company’s shares in the reporting period or such commitments carried down into the reporting period□ Applicable√ Inapplicable
No such commitments in the reporting period.
IV. Predict the 2014 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the year to the end of the next reporting period compared with the same period of the last year according to prediction, as well as explanations on the reasons
√ Applicable□ Inapplicable
Prediction: significant increase in the same direction
Type of the predicted data: interval data
||||||||||
|-|-|-|-|-|-|-|-|-|
||Jan.-Dec. 2014|||Jan.-Dec. 2013|Increase/decrease (%)||||
|Estimated accumulative net|||||||||
||27,392|--|30,000|22,827|Increase|20.00%|--|31.42%|
|profit (RMB Ten thousand)|||||||||
|Basic EPS (RMB Yuan/share)|0.2708|--|0.2965|0.2256|Increase|20.00%|--|31.42%|
|Explanation about the|Sales of the SPG Chuanqi Hill project and SPG Shanglin Garden project of the Company carried||||||||
|predictions|forward normally.||||||||

V. Securities investment
□ Applicable√ Inapplicable
The Company was not involved in any securities investment in the reporting period.
Notes of the shareholdings of other listed companies
□ Applicable√ Inapplicable
There was no such shareholding of the Company during the reporting period.
VI. Investments in derivatives
□Applicable√Inapplicable
The Company did not invest in any derivative in the reporting period.
VII. Researches, visits and interviews received in the reporting period
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|Time of reception|Place of reception|Way of reception|Visitor type|Visitor|materials provided by the|
||||||Company|
|||TelephoneCommunication|||The operating situation of|
||||||the first half year of 2014|
|11 Jul. 2014|The office||Individual|Individual investor||
||||||and the disclosure|
||||||appointment time of the|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
|||||||
|-|-|-|-|-|-|
||||||semi-year report; had not|
||||||offer the written sources.|
||||||The sale situation of project|
|||Telephone|||development of the first|
|19 Aug. 2014|The office||Individual|Individual investor||
|||Communication|||half year of 2014; had not|
||||||offer the written sources.|
||||||The influence of Shenzhen|
||||||state-owned enterprise ’s|
||||||reformation to the|
|||Telephone||||
|17 Sep. 2014|The office||Individual|Individual investor|Company and the s ales|
|||Communication||||
||||||progress of project ,|
||||||development; had not|
||||||offered the written sources.|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|500,173,000.23|525,374,372.44|
|Settlement reserves|||
|Intra-group lendings|||
|Financial assets measured at fair|||
|value and of which changes are|||
|recorded into current gains and losses|||
|Notes receivable|||
|Accounts receivable|18,099,558.15|14,102,124.06|
|Accounts paid in advance|32,128,944.49|12,206,598.30|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|||
|Dividend receivable|1,052,192.76|1,052,192.76|
|Other accounts receivable|62,192,307.56|54,672,501.81|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|3,140,611,748.89|2,967,935,589.04|
|Assets held for sale|||
|Non-current assets due within 1 year|60,024,383.44|3,451,107.04|
|Other current assets|||
|Total current assets|3,814,282,135.52|3,578,794,485.45|
|Non-current assets:|||
|Loans by mandate and advances|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|granted|||
|Available-for-sale financial assets|12,000,000.00|12,000,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|63,200,652.59|63,200,652.59|
|Investing property|451,140,242.58|466,314,091.90|
|Fixed assets|55,590,319.46|60,715,687.71|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|6,339,311.82|6,753,566.79|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|367,707.73|528,352.21|
|Deferred income tax assets|26,792,460.02|26,792,460.02|
|Other non-current assets|||
|Total of non-current assets|615,430,694.20|636,304,811.22|
|Total assets|4,429,712,829.72|4,215,099,296.67|
|Current liabilities:|||
|Short-term borrowings|28,000,000.00|23,000,000.00|
|Borrowings from Central Bank|||
|Customer bank deposits and due to|||
|banks and other financial institutions|||
|Intra-group borrowings|||
|Financial liabilities measured at fair|||
|value and of which changes are|||
|recorded into current gains and losses|||
|Notes payable|||
|Accounts payable|288,731,004.05|389,345,271.46|
|Accounts received in advance|915,501,007.82|312,967,028.85|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Employee’s compensation payable|19,649,333.13|37,159,445.41|
|Tax payable|34,726,927.34|148,006,651.37|
|Interest payable|16,766,372.46|18,482,515.18|
|Dividend payable|||
|Other accounts payable|388,998,958.39|394,687,837.29|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of|||
|securities|||
|Payables for acting underwriting of|||
|securities|||
|Liabilities held for sale|||
|Non-current liabilities due within 1|||
||332,577,223.56|331,482,489.72|
|year|||
|Other current liabilities|||
|Total current liabilities|2,024,950,826.75|1,655,131,239.28|
|Non-current liabilities:|||
|Long-term borrowings|602,100,246.02|814,213,536.85|
|Bonds payable|||
|Long-term payables|11,220,732.10|10,749,885.53|
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|613,320,978.12|824,963,422.38|
|Total liabilities|2,638,271,804.87|2,480,094,661.66|
|Owners’ equity (or shareholders ’|||
|equity)|||
|Paid-up capital (or share capital)|1,011,660,000.00|1,011,660,000.00|
|Capital reserves|978,244,910.11|978,244,858.10|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|4,974,391.15|4,974,391.15|
|Provisions for general risks|||
|Retained profits|-83,881,356.31|-140,886,134.13|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Foreign exchange difference|8,926,380.37|9,354,020.21|
|Total equity attributable to owners of|||
||1,919,924,325.32|1,863,347,135.33|
|the Company|||
|Minority interests|-128,483,300.47|-128,342,500.32|
|Total owners’ (or shareholders’) equity|1,791,441,024.85|1,735,004,635.01|
|Total liabilities and owners ’ (or|||
||4,429,712,829.72|4,215,099,296.67|
|shareholders’) equity|||

Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
2. Balance sheet of the Company
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|261,575,670.48|362,953,152.47|
|Financial assets measured at fair|||
|value and of which changes are|||
|recorded into current gains and losses|||
|Notes receivable|||
|Accounts receivable|4,089,995.55|4,359,289.23|
|Accounts paid in advance|15,034,473.59||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|623,668,364.83|669,806,773.71|
|Inventories|1,603,444,982.06|1,830,603,734.72|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|||
|Total current assets|2,507,813,486.51|2,867,722,950.13|
|Non-current assets:|||
|Available-for-sale financial assets|12,000,000.00|12,000,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Long-term equity investment|316,371,367.19|316,371,367.19|
|Investing property|394,003,367.70|407,900,089.95|
|Fixed assets|32,185,296.93|34,263,366.14|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|1,124,966.82|1,406,066.79|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|90,528.30|132,925.95|
|Deferred income tax assets|3,230,636.28|3,230,636.28|
|Other non-current assets|||
|Total of non-current assets|759,006,163.22|775,304,452.30|
|Total assets|3,266,819,649.73|3,643,027,402.43|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured at fair|||
|value and of which changes are|||
|recorded into current gains and losses|||
|Notes payable|||
|Accounts payable|263,098,534.72|393,715,301.47|
|Accounts received in advance|88,821,427.00|82,398,193.00|
|Employee’s compensation payable|6,626,084.91|11,614,479.62|
|Tax payable|38,525,293.47|149,643,182.39|
|Interest payable|16,535,277.94|18,094,154.07|
|Dividend payable|||
|Other accounts payable|390,806,786.65|648,978,988.66|
|Liabilities held for sale|||
|Non-current liabilities due within 1|||
||332,577,223.56|331,482,489.72|
|year|||
|Other current liabilities|||
|Total current liabilities|1,136,990,628.25|1,635,926,788.93|
|Non-current liabilities:|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Long-term borrowings|369,110,893.79|581,224,184.62|
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|369,110,893.79|581,224,184.62|
|Total liabilities|1,506,101,522.04|2,217,150,973.55|
|Owners’ equity (or shareholders ’|||
|equity)|||
|Paid-up capital (or share capital)|1,011,660,000.00|1,011,660,000.00|
|Capital reserves|978,244,910.11|978,244,858.10|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|||
|Provisions for general risks|||
|Retained profits|-229,186,782.42|-564,028,429.22|
|Foreign exchange difference|||
|Total owners’ (or shareholders’) equity|1,760,718,127.69|1,425,876,428.88|
|Total liabilities and owners ’ (or|||
||3,266,819,649.73|3,643,027,402.43|
|shareholders’) equity|||

Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
3. Consolidated income statement for the reporting period
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total operating revenues|294,764,542.65|154,286,475.60|
|Including: Sales income|294,764,542.65|154,286,475.60|
|Interest income|||
|Premium income|||
|Handling charge and|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|commission income|||
|II. Total operating cost|263,086,697.00|151,445,351.40|
|Including: Cost of sales|217,656,389.50|121,135,903.01|
|Interest expenses|||
|Handling charge and|||
|commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|20,896,532.69|10,752,288.56|
|Selling and distribution expenses|6,697,574.40|5,012,467.40|
|Administrative expenses|13,758,229.46|15,731,770.77|
|Financial expenses|4,077,970.95|-1,187,078.34|
|Asset impairment loss|||
|Add: Gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
|means loss)|||
|Including: share of profits in|||
|associates and joint ventures|||
|Foreign exchange gains ( “-”|||
|means loss)|||
|III. Business profit (“-” means loss)|31,677,845.65|2,841,124.20|
|Add: non-operating income|877,366.54|3,007,255.65|
|Less: non-operating expense|123,494.58|83,072.36|
|Including: loss from non-current|||
||69,706.34|65,147.31|
|asset disposal|||
|IV. Total profit (“-” means loss)|32,431,717.61|5,765,307.49|
|Less: Income tax expense|10,122,592.97|2,195,533.09|
|V. Net profit (“-” means loss)|22,309,124.64|3,569,774.40|
|Including: Net profit achieved by|||
|combined parties before the|||
|combinations|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Attributable to owners of the|||
||22,272,401.09|3,528,324.44|
|Company|||
|Minority shareholders’ income|36,723.55|41,449.96|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.0220|0.0035|
|(II) Diluted earnings per share|0.0220|0.0035|
|Ⅶ. Other comprehensive incomes|12,633.15|-21,787.53|
|Including: Other comprehensive|||
|incomes items that cannot be|||
||52.01||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as g ains and|||
|losses in the subsequent accounting|12,581.14|-21,787.53|
|periods as relevant requirements are|||
|met|||
|Ⅷ. Total comprehensive incomes|22,321,757.79|3,547,986.87|
|Attributable to owners of the|||
||22,281,259.90|3,548,637.90|
|Company|||
|Attributable to minority shareholders|40,497.89|-651.03|

 Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
4. Income statement of the Company for the reporting period
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total sales|143,701,538.75|12,317,621.10|
|Less: cost of sales|86,278,882.95|5,313,615.63|
|Business taxes and surcharges|12,697,752.01|2,265,397.22|
|Distribution expenses|2,712,503.22|3,473,100.44|
|Administrative expenses|6,237,553.37|7,823,257.94|
|Financial costs|4,199,253.76|-961,752.67|
|Impairment loss|||
|Add: gain/(loss) from change in fair|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|value (“-” means loss)|||
|Gain/(loss) from investment ( “-”|||
||270,609,041.96||
|means loss)|||
|Including: income form investment|||
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|302,184,635.40|-5,595,997.46|
|Add: non-business income|799,903.67|540,000.00|
|Less: non-business expense|20,000.00|20,000.00|
|Including: loss from non- current|||
|||0.00|
|asset disposal|||
|III. Total profit (“-” means loss)|302,964,539.07|-5,075,997.46|
|Less: income tax expense|8,082,746.31||
|IV. Net profit (“-” means loss)|294,881,792.76|-5,075,997.46|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||
|VI. Other comprehensive income|52.01|0.00|
|Including: Other comprehensive|||
|incomes items that cannot be|||
||52.01||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as gains and|||
|losses in the subsequent accounting|||
|periods as relevant requirements are|||
|met|||
|VII. Total comprehensive income|294,881,844.77|-5,075,997.46|

 Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
5. Consolidated income statement for Jan.-Sept. 2014
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total operating revenues|867,838,901.96|474,974,336.20|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Including: Sales income|867,838,901.96|474,974,336.20|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|II. Total operating cost|786,452,412.86|456,474,970.22|
|Including: Cost of sales|650,464,153.20|367,842,905.73|
|Interest expenses|||
|Handling charge and commission|||
|expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|61,785,122.95|35,287,444.46|
|Selling and distribution expenses|20,943,800.69|11,892,013.30|
|Administrative expenses|39,354,958.66|43,214,713.06|
|Financial expenses|13,904,377.36|-1,762,106.33|
|Asset impairment loss|||
|Add: Gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment ( “-”|||
|means loss)|||
|Including: share of profits in|||
|associates and joint ventures|||
|Foreign exchange gains (“-” means|||
|loss)|||
|III. Business profit (“-” means loss)|81,386,489.10|18,499,365.98|
|Add: non-operating income|1,374,647.24|6,532,696.24|
|Less: non-operating expense|243,681.86|178,836.68|
|Including: loss from non- current|||
||70,996.24|71,659.29|
|asset disposal|||
|IV. Total profit (“-” means loss)|82,517,454.48|24,853,225.54|
|Less: Income tax expense|25,455,598.08|8,215,293.36|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|V. Net profit (“-” means loss)|57,061,856.40|16,637,932.18|
|Including: Net profit achieved by|||
|combined parties before the|||
|combinations|||
|Attributable to owners of the|||
||57,004,777.82|16,578,664.81|
|Company|||
|Minority shareholders’ income|57,078.58|59,267.37|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.0563|0.0164|
|(II) Diluted earnings per share|0.0563|0.0164|
|Ⅶ. Other comprehensive incomes|-625,466.56|1,766,105.83|
|Including: Other comprehensive|||
|incomes items that cannot be|||
||52.01||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as gains and|||
|losses in the subsequent accounting|-625,518.57|1,766,105.83|
|periods as relevant requirements are|||
|met|||
|Ⅷ. Total comprehensive incomes|56,436,389.84|18,404,038.01|
|Attributable to owners of the|||
||56,577,189.99|17,814,952.12|
|Company|||
|Attributable to minority shareholders|-140,800.15|589,085.89|

 Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
6. Income statement of the Company for Jan.-Sept. 2014
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total sales|408,194,207.74|37,606,463.46|
|Less: cost of sales|247,382,934.77|16,369,664.47|
|Business taxes and surcharges|36,337,053.68|7,234,494.54|
|Distribution expenses|8,357,742.10|7,616,779.02|
|Administrative expenses|18,390,128.88|21,027,724.93|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Financial costs|12,606,169.86|153,816.04|
|Impairment loss|||
|Add: gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment ( “-”|||
||270,609,041.96||
|means loss)|||
|Including: income form investment|||
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|355,729,220.41|-14,796,015.54|
|Add: non-business income|803,903.67|602,002.01|
|Less: non-business expense|59,000.00|45,644.48|
|Including: loss from non- current|||
|||4,644.48|
|asset disposal|||
|III. Total profit (“-” means loss)|356,474,124.08|-14,239,658.01|
|Less: income tax expense|21,632,477.28||
|IV. Net profit (“-” means loss)|334,841,646.80|-14,239,658.01|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||
|VI. Other comprehensive income|52.01||
|Including: Other comprehensive|||
|incomes items that cannot be|||
||52.01||
|reclassified as gains and losses in the|||
|subsequent accounting periods|||
|Other comprehensive incomes items|||
|that will be reclassified as gains and|||
|losses in the subsequent accounting|||
|periods as relevant requirements are|||
|met|||
|VII. Total comprehensive income|334,841,698.81|-14,239,658.01|

 Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,467,104,637.92|1,483,769,682.66|
|commodities and rendering of service|||
|Net increase of deposits from|||
|customers and dues from banks|||
|Net increase of loans from the central|||
|bank|||
|Net increase of funds borrowed from|||
|other financial institutions|||
|Cash received from premium of|||
|original insurance contracts|||
|Net cash received from reinsurance|||
|business|||
|Net increase of deposits of policy|||
|holders and investment fund|||
|Net increase of disposal of tradable|||
|financial assets|||
|Cash received from interest, handling|||
|charges and commissions|||
|Net increase of intra- group|||
|borrowings|||
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received|||
|Other cash received relating to|||
||83,259,803.11|106,617,272.26|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,550,364,441.03|1,590,386,954.92|
|activities|||
|Cash paid for goods and services|840,413,440.43|1,300,977,015.14|
|Net increase of customer lendings|||
|and advances|||
|Net increase of funds deposited in the|||
|central bank and amount due from|||
|banks|||
|Cash for paying claims of the original|||
|insurance contracts|||
|Cash for paying interest, handling|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|charges and commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|98,540,292.61|94,193,239.01|
|Various taxes paid|265,840,422.79|98,805,138.07|
|Other cash payment relating to|||
||107,776,929.70|108,723,806.95|
|operating activities|||
|Subtotal of cash outflows from|||
||1,312,571,085.53|1,602,699,199.17|
|operating activities|||
|Net cash flows from operating activities|237,793,355.50|-12,312,244.25|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
|investments|||
|Cash received from return on|||
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|7,436.00|7,524,637.46|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
||7,436.00|7,524,637.46|
|activities|||
|Cash paid to acquire f ixed assets,|||
|intangible assets and other long- term|1,141,098.00|2,868,316.09|
|assets|||
|Cash paid for investment|||
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||1,141,098.00|2,868,316.09|
|investing activities|||
|Net cash flows from investing activities|-1,133,662.00|4,656,321.37|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|25,000,000.00|292,989,352.23|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
||52.01|25,000,000.00|
|financing activities|||
|Subtotal of cash inflows from financing|||
||25,000,052.01|317,989,352.23|
|activities|||
|Repayment of borrowings|231,018,556.99|370,316,902.32|
|Cash paid for interest expenses and|||
||55,880,136.69|58,321,427.21|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
|by subsidiaries to minority shareholders|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
||286,898,693.68|428,638,329.53|
|financing activities|||
|Net cash flows from financing activities|-261,898,641.67|-110,648,977.30|
|IV. Effect of foreign exchange rate|||
||70,175.96|-311,776.15|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-25,168,772.21|-118,616,676.33|
|equivalents|||
|Add: Opening balance of cash and|||
||519,284,372.44|463,713,702.77|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||494,115,600.23|345,097,026.44|
|equivalents|||

Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||411,093,154.04|898,487,340.22|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||99,596,412.49|85,583,854.13|
|operating activities|||
|Subtotal of cash inflows from operating|||
||510,689,566.53|984,071,194.35|
|activities|||
|Cash paid for goods and services|149,793,173.90|468,167,038.09|
|Cash paid to and for employees|27,955,272.52|27,082,382.25|
|Various taxes paid|172,072,058.31|36,863,142.63|
|Other cash payment relating to|||
||8,008,255.14|244,001,605.68|
|operating activities|||
|Subtotal of cash outflows from|||
||357,828,759.87|776,114,168.65|
|operating activities|||
|Net cash flows from operating activities|152,860,806.66|207,957,025.70|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
|investments|||
|Cash received from return on|||
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long- term|816,296.00|2,067,052.09|
|assets|||
|Cash paid for investment||30,000,000.00|
|Net cash paid to acquire subsidiaries|||
|||0.00|
|and other business units|||
|Other cash payments relating to|||
|||0.00|
|investing activities|||

Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
||||
|-|-|-|
|Subtotal of cash outflows from|||
||816,296.00|32,067,052.09|
|investing activities|||
|Net cash flows from investing activities|-816,296.00|-32,067,052.09|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings||240,000,000.00|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
||52.01|25,000,000.00|
|financing activities|||
|Subtotal of cash inflows from financing|||
||52.01|265,000,000.00|
|activities|||
|Repayment of borrowings|211,018,556.99|344,316,902.32|
|Cash paid for interest expenses and|||
||42,403,589.79|46,553,882.32|
|distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
||253,422,146.78|390,870,784.64|
|financing activities|||
|Net cash flows from financing activities|-253,422,094.77|-125,870,784.64|
|IV. Effect of foreign exchange rate|||
||102.12|-477.47|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-101,377,481.99|50,018,711.50|
|equivalents|||
|Add: Opening balance of cash and|||
||362,953,152.47|190,825,250.83|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||261,575,670.48|240,843,962.33|
|equivalents|||

Legal representative: Zhou Jianguo Person-in-charge of the accounting work: Tang Xiaoping Chief of the accounting division: Qiao Yanjun
II. Audit report
Is this report audited?
□ Yes√ No
Report for the Third Quarter of 2014 of Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. This report is not audited.