Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 SHENZHEN PROPERTIES& RESOURCES
DEVELOPMENT (GROUP) LTD.
THIRD QUARTER REPORT 2016
2016-22
October 2016
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 Section I Important Statements
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 Properties& Resources Development (Group) Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any false representation, misleading statements or material omissions in this Report.
All the directors attended the board meeting for the review of this Report.
Chen Yugang, head of the Company, Wang Hangjun, accounting head for this Report, and Shen Xueying, head of the accounting organ (head of accounting), hereby guarantee that the financial statements carried in this Report are factual, accurate and complete.
This 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 Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 Section II Financial Highlights& Shareholder Changes
I Highlights of 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
||||||||
|-|-|-|-|-|-|-|
||30 September 2016||31 December 2015||+/- (%)||
|Total assets (RMB)|6,649,735,329.5||2 4,379,763,486.10||51.83%||
|Net assets attributable to|2,045,647,093.1||3 2,099,906,766.61||||
|shareholders of the Company|||||-2.58%||
|(RMB)|||||||
|||||January-September|||
||July-September 2016|YoY +/- (%)||||YoY +/- (%)|
|||||2016|||
|Operating revenues (RMB)|157,661,237.17|-46.97%||529,718,717.13||-16.72%|
|Net profit attributable to|-1,953,780.96|||-7,202,485.59|||
|shareholders of the Company||-112.78%||||-115.50%|
|(RMB)|||||||
|Net profit attributable to|||||||
|shareholders of the Company|-2,164,014.76|-114.28%||-8,029,296.67||-119.07%|
|excluding exceptional profit and|||||||
|loss (RMB)|||||||
|Net cash flows from operating||||2,101,061,539.92|||
||--|--||||5,410.72%|
|activities (RMB)|||||||
|Basic earnings per share|-0.0033|||-0.0121|||
|||-112.89%||||-115.53%|
|(RMB/share)|||||||
|Diluted earnings per share|-0.0033|||-0.0121|||
|||-112.89%||||-115.53%|
|(RMB/share)|||||||
|Weighted average return on equity|||||||
||-0.09%|-0.85%||-0.35%||-2.65%|
|(%)|||||||

Unit: RMB
||||
|-|-|-|
|Item|January-September 2016|Note|
|Profit/loss on disposal of non-current assets (including offsetasset|||
||-182,886.11||
|impairment provisions)|||
|Impairment provision reversal for accounts receivable on which|||
||11,729.17||
|the impairment test is carried out separately|||
|Non-operating revenue and expense other than the above|1,252,108.15||
|Less: Corporate income tax|254,140.13||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Total|826,811.08|--|

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 thePublic—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.
II Total number of shareholders and shareholdings of top 10 shareholders at the period-end 1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right& shareholdings of top 10 shareholders at the period-end
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|||||Total number of preference||||
|Total number of ordinary||||shareholders who had||||
|shareholders at the end of the||41,123||resumed their voting right a||t 0||
|Reporting Period||||the end of the Reporting||||
|||||Period (if any)||||
|Shareholdings of top 10 shareholders||||||||
||||||Number of|Pledged or frozen shares||
|Name of|Nature of|Shareholding|Number of shares|||||
||||||restricted shares|||
|shareholder|shareholder|percentage|held|||Status|Number|
||||||held|||
|SHENZHENCONSTRUCTIONINVESTMENTHOLDINGSCORPORATION|State-ownedcorporation|54.33%|323,796,324||293,997,370|||
|SHENZHENINVESTMENTMANAGEMENTCORPORATION|State-ownedcorporation|9.49%|56,582,573||56,582,573|||
|DU XINYE|Domesticindividual|0.65%|3,880,800|||||
|ZHOU QUN|Domesticindividual|0.52%|3,115,450|||||
|DU YUNFENG|Domesticindividual|0.40%|2,223,000|||||
|SHENZHENDUTY-FREECOMMODITY|Domesticnon-state-ownedcorporation|0.29%|1,730,300||1,730,300|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
|||||||
|-|-|-|-|-|-|
|ENTERPRISESCO., LTD.||||||
|MAI FURONG|Foreignindividual|0.27%|1,514,600|||
|SHENZHENSONGKAIEQUIPMENTCO., LTD.|Domesticnon-state-ownedcorporation|0.22%|1,315,500|||
|YANG YAOCHU|Domesticindividual|0.22%|1,310,620|||
|CHEN LIYING|Domesticindividual|0.18%|1,076,051|||
|Shareholdings of top 10 non-restricted shareholders||||||
|||||Type of shares||
|Name of shareholder||Number of non-restricted shares held at the period-end||||
|||||Type|Number|
|SHENZHEN CONSTRUCTIONINVESTMENT HOLDINGSCORPORATION||29,798,954||||
|||||RMB ordinary||
||||||29,798,954|
|||||share||
|DU XINYE||3,880,800||RMB ordinary||
||||||3,880,800|
|||||share||
|ZHOU QUN||3,115,450||RMB ordinary||
||||||3,115,450|
|||||share||
|DU YUNFENG||2,223,000||RMB ordinary||
||||||2,223,000|
|||||share||
|MAI FURONG||1,514,600||Domestically||
|||||listed foreign|1,514,600|
|||||share||
|SHENZHEN SONGKAIEQUIPMENT CO., LTD.||1,315,500||RMB ordinary||
||||||1,315,500|
|||||share||
|YANG YAOCHU||1,310,620||Domestically||
|||||listed foreign|1,310,620|
|||||share||
|CHEN LIYING||1,076,051||Domestically||
|||||listed foreign|1,076,051|
|||||share||
|LI JING||781,740||Domestically||
|||||listed foreign|781,740|
|||||share||
|GUOYUAN SECURITIES||770,754||Domestically|770,754|

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|BROKERAGE (HONG KONG)LIMITED||listed foreign|
|||share|
||The biggest shareholder of the Company is underShenzhen Investment Holding Corporation,||
|Related or act-in-concert parties|||
||the actual controlling shareholder of the Company. Other than that, it is unknown whether||
|among the shareholders above|||
||there are related parties or act-in-concert parties among the other nine shareholders.||
|Top 10 ordinary shareholders|||
|conducting securities margin trading|Zhou Qun, Du Xinye and Du Yunfeng hold the shares in their credit accounts.||
|(if any)|||

Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conduct any promissory repo during the Reporting Period?
□ Yea√ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end□ Applicable√ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting Period, as well as reasons for the changes
√ Applicable□ Not applicable
1. Monetary funds at the period-end stood at RMB2,717,238,442.31, up187.31% from the year-beginning, mainly because the advances from house buyers increased.
2. Accounts paid in advance at the period-end stood at RMB216,593,583.78, up662.23% from the year-beginning, mainly because the taxes prepaid as required increased.
3. Other current assets at the period-end stood at RMB0.00, down100.00% from the year-beginning, mainly because they were transferred to the inventories item as required.
4. Deferred tax assets at the period-end stood at RMB325,220,700.02, up35.32% from the year-beginning, mainly because the anticipated profits on the pre-sale revenues of real estate subsidiaries increased and the relevant deferred tax assets were recognized.
5. Short-term borrowings at the period-end stood at RMB0.00, down100.00% from the year-beginning, mainly because they were repaid upon maturity.
6. Accounts received in advance at the period-end stood at RMB3,350,814,047.99, up413.64% from the year-beginning, mainly because the advances from house buyers increased.
7. Interest payable at the period-end stood at RMB0.00, down100.00% from the year-beginning, mainly because bank loans were repaid with interest.
8. Non-current liabilities due within one year at the period-end stood at RMB0.00, down100.00% from the year-beginning, mainly because they were repaid upon maturity.
9. Long-term borrowings at the period-end stood at RMB0.00, down100.00% from the year-beginning, mainly because they were repaid upon maturity.
10. Operating revenues for July-September 2016 stood at RMB157,661,237.17, down46.97% year on year, mainly because the settled project area decreased considerably from the same period of last year.
11. Operating costs for July-September 2016 stood at RMB130,151,418.31, down37.43% year on year, mainly because the settled project area decreased considerably from the same period of last year.
12. The business tax and surtaxes for January-September 2016 and July-September 2016 stood at RMB25,613,594.87 and RMB1,868,632.47 respectively, down69.76% and95.07% from the same period of last year, mainly because the decrease in both the settled project incomes and the average gross profit margin on all the settled projects in different regions resulted in the decrease in the land VAT and other relevant taxes and fares. 13. The selling expenses for January-September 2016 and July-September 2016 stood at RMB27,517,133.33 and RMB10,977,373.74 respectively, up35.98% and44.85% from the same period of last year, mainly because the advertising, sales service and agency fees increased to enhance marketing.
14. The financial expenses for January-September 2016 and July-September 2016 stood at RMB-14,076,786.73 and RMB-7,038,347.79 respectively, with the gain (stated as a negative expense item) up138.41% and491.37% from the same period of last year, mainly because the interest income increased.
15. Asset impairment loss for January-September 2016 stood at RMB3,810,897.96, up987.28% from the same
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 period of last year, mainly because a falling price provision was made for theSZPRD•Hupan Yujing Project Phase II.
16. Return on investment for January-September 2016 stood at RMB1,925,310.63, down73.82% year on year, mainly because the same period of last year saw gain from disposal of available-for-sale financial assets; and return on investment for July-September 2016 stood at RMB766,734.31, up30.52% year on year, mainly because the profits from joint ventures increased.
17. The share of profit of associates and joint ventures for January-September 2016 and July-September 2016 stood at RMB1,925,310.63 and RMB766,734.31 respectively, up53.55% and30.52% from the same period of last year, mainly because the profits from joint ventures increased.
18. The net non-operating revenue/expense for January-September 2016 stood at RMB1,069,222.04, up420.83% from the same period of last year, mainly because the confiscated deposits, the insurance indemnities for property management accidents and so on increased.
19. The corporate income tax for January-September 2016 and July-September 2016 stood at RMB1,443,177.42 and RMB-1,168,803.07 respectively, down91.51% and120.77% from the same period of last year, mainly because the profits achieved decreased.
20. The operating profits, total profits and net profits (attributable to the Company) for July-September 2016 stood at RMB-3,407,428.17, RMB-3,122,584.03 and RMB-1,953,780.96 respectively, down116.45%,114.93% and112.78% from the same period of last year; and the operating profits, total profits and net profits (attributable to the Company) for January-September 2016 stood at RMB-6,828,530.21, RMB-5,759,308.17 and RMB-7,202,485.59 respectively, down110.71%,109.08% and115.50% from the same period of last year, mainly because the settled project area decreased and the average gross profit margin on all the settled projects in different regions decreased significantly.
21. The other comprehensive income net of tax for January-September 2016 stood at RMB621,139.47, up112.72% from the same period of last year, mainly because the translation difference of foreign-currency financial statements increased and the same period of last year saw the disposal and reclassification into profit/loss of available-for-sale financial assets; and the other comprehensive income net of tax for July-September 2016 stood at RMB-379,677.29, up80.36% from the same period of last year, mainly because the translation difference of foreign-currency financial statements increased.
22. Net cash flows from operating activities for January-September 2016 stood at RMB2,101,061,539.92, up5410.72% year on year, mainly because the cash inflows from sale of houses increased.
23. Net cash flows from investing activities for January-September 2016 stood at RMB-3,922,521.62, with the net outflows down51.10% year on year, mainly because the same period of last year saw a renewal of taxies by the relevant subsidiary.
24. Net cash flows from financing activities for January-September 2016 stood at RMB-327,004,119.63, with the net outflows up297.02% year on year, mainly because the loans secured decreased and those repaid increased. 25. The net increase in cash and cash equivalents for January-September 2016 and the balance of cash and cash equivalents at the period-end stood at RMB1,771,498,466.54 and RMB2,704,836,282.31 respectively, up1481.09% and297.36% from the same period of last year, mainly because the cash inflows from sale of houses increased.
II Progress on significant events, as well as the influence and solutions
□ Applicable√ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 III Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors, senior management or other related parties fulfilled in the Reporting Period or ongoing at the period-end
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Performance forecast for Y2016
Warning of possible loss or considerable YoY change in the accumulative net profit made during the year-beginning to the end of the next reporting period, as well as the reasons
√ Applicable□ Not applicable
Forecast: Considerable increase at the same direction
Type of the forecast data: exact data
||||||
|-|-|-|-|-|
||2016|2015|+/-||
|Forecast accumulative net|||||
||30,200|15,682|Up|92.58%|
|profit (RMB'0,000)|||||
|Basic earnings per share|||||
||0.5067|0.2631|Up|92.58%|
|(RMB/share)|||||
||The business performance is expected to record a significant change because the Qianhai Gangwan||||
||Garden project developed by the Company would meet the conditions for settlement by the end of||||
||this year and the area of all projects available for settlement for this year is thus expected to increase||||
|Notes to the forecast|considerably from the same period of last year. The forecasts above are only preliminary estimates||||
||provided according to the current sales of the Company’s real estate projects. Investors are kindly||||
||reminded to note that the actual earnings of the Company for Y2016 shall be subject to the data to||||
||be given in the 2016 Annual Report of the Company.||||

V Securities investment
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investment in derivative financial instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VII Visits paid to the Company for purposes of research, communication, interview, etc. during the Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
|||||
|-|-|-|-|
|2016-07-15|By phone|Individual|Semi-Annual Report|
|2016-08-11|By phone|Individual|Progress on the Jinling Jiari project|
|2016-09-15|By phone|Individual|Income from the Qianhai project|

 VIII Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s funds for non-operating purposes by the controlling shareholder and its related parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Shenzhen Properties& Resources Development (Group) Ltd.
30 September 2016
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|2,717,238,442.31|945,739,975.77|
|Settlement reserve|||
|Interbank lendings|||
|Financial assets at fair value through|||
|profit/loss|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|44,763,793.07|38,772,146.41|
|Accounts paid in advance|216,593,583.78|28,415,733.43|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserve|||
|Interest receivable|||
|Dividends receivable|||
|Other accounts receivable|13,961,229.49|11,619,503.47|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|2,878,336,618.82|2,466,342,278.85|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets||174,382,120.00|
|Total current assets|5,870,893,667.47|3,665,271,757.93|
|Non-current assets:|||
|Loans and advances to customers|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Available-for-sale financial assets|18,068,421.28|14,500,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|36,451,488.04|34,526,177.41|
|Investment property|225,264,653.11|237,260,788.82|
|Fixed assets|77,657,150.04|85,929,516.37|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|87,275,706.71|92,640,083.99|
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|1,628,473.85|2,024,722.07|
|Deferred tax assets|325,220,700.02|240,335,370.51|
|Other non-current assets|7,275,069.00|7,275,069.00|
|Total non-current assets|778,841,662.05|714,491,728.17|
|Total assets|6,649,735,329.52|4,379,763,486.10|
|Current liabilities:|||
|Short-term borrowings||8,000,000.00|
|Borrowings from the Central Bank|||
|Money deposits accepted and inter-bank|||
|deposits|||
|Interbank borrowings|||
|Financial liabilities at fair value through|||
|profit/loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|183,259,011.22|191,524,938.54|
|Accounts received in advance|3,350,814,047.99|652,369,778.20|
|Financial assets sold for repurchase|||
|Fees and commissions payable|||
|Payroll payable|57,721,151.90|63,791,816.49|
|Taxes and fares payable|739,342,633.68|833,797,372.43|

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Interest payable||479,413.09|
|Dividends payable|||
|Other accounts payable|136,742,265.49|128,243,079.68|
|Reinsurance premiums payable|||
|Insurance contract reserve|||
|Payables for acting trading of securities|||
|Payables for acting underwriting of|||
|securities|||
|Liabilities held for sale|||
|Non-current liabilities due within one|||
|||121,243,352.00|
|year|||
|Other current liabilities|||
|Total current liabilities|4,467,879,110.28|1,999,449,750.43|
|Non-current liabilities:|||
|Long-term borrowings||144,840,006.83|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term accounts payable|||
|Long-term payroll payable|||
|Special payables|||
|Provisions|834,999.50|834,999.50|
|Deferred income|17,052,714.82|19,072,625.05|
|Deferred tax liabilities|16,761.23|23,985.24|
|Other non-current liabilities|117,442,563.50|114,773,265.38|
|Total non-current liabilities|135,347,039.05|279,544,882.00|
|Total liabilities|4,603,226,149.33|2,278,994,632.43|
|Owners’ equity:|||
|Share capital|595,979,092.00|595,979,092.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|119,951,533.93|119,951,533.93|
|Less: Treasury shares|||
|Other comprehensive income|-3,425,463.99|-4,046,603.46|

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Special reserve|||
|Surplus reserve|154,664,631.59|154,664,631.59|
|Provisions for general risks|||
|Retained earnings|1,178,477,299.60|1,233,358,112.55|
|Equity attributable to owners of theCompany|||
||2,045,647,093.13|2,099,906,766.61|
|Minority interests|862,087.06|862,087.06|
|Total owners’ equity|2,046,509,180.19|2,100,768,853.67|
|Total liabilities and owners’ equity|6,649,735,329.52|4,379,763,486.10|

 Legal representative: Chen Yugang Accounting head for this Report: Wang Hangjun Head of the accounting organ: Shen Xueying
2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|1,311,890,581.13|296,196,656.86|
|Financial assets at fair value through|||
|profit/loss|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|1,668,477.14|979,569.49|
|Accounts paid in advance|130,153,573.00||
|Interest receivable|||
|Dividends receivable|||
|Other accounts receivable|1,639,392,533.29|1,766,392,354.21|
|Inventories|829,056,522.31|530,588,344.24|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets||174,382,120.00|
|Total current assets|3,912,161,686.87|2,768,539,044.80|
|Non-current assets:|||
|Available-for-sale financial assets|3,798,921.28|230,500.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Long-term equity investments|283,008,750.02|281,083,438.39|
|Investment property|149,130,495.98|157,390,561.34|
|Fixed assets|8,989,436.80|9,828,388.19|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|||
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|1,167,589.20|1,297,321.41|
|Deferred tax assets|111,483,006.85|29,561,006.63|
|Other non-current assets|||
|Total non-current assets|557,578,200.13|479,391,215.96|
|Total assets|4,469,739,887.00|3,247,930,260.76|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value through|||
|profit/loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|25,412,599.13|25,436,021.13|
|Accounts received in advance|2,222,135,946.00|311,717,646.30|
|Payroll payable|10,331,021.00|11,467,533.06|
|Taxes and fares payable|46,206,471.60|62,939,128.44|
|Interest payable||858,385.21|
|Dividends payable|||
|Other accounts payable|941,178,048.39|1,163,240,004.88|
|Liabilities held for sale|||
|Non-current liabilities due within one year|||
|Other current liabilities|||
|Total current liabilities|3,245,264,086.12|1,575,658,719.02|
|Non-current liabilities:|||
|Long-term borrowings||404,840,006.83|

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Special payables|||
|Provisions|834,999.50|834,999.50|
|Deferred income|||
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|834,999.50|405,675,006.33|
|Total liabilities|3,246,099,085.62|1,981,333,725.35|
|Owners’ equity:|||
|Share capital|595,979,092.00|595,979,092.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|94,057,859.68|94,057,859.68|
|Less: Treasury shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserve|154,007,821.15|154,007,821.15|
|Retained earnings|379,596,028.55|422,551,762.58|
|Total owners’ equity|1,223,640,801.38|1,266,596,535.41|
|Total liabilities and owners’ equity|4,469,739,887.00|3,247,930,260.76|

 3. Consolidated income statement for the Reporting Period
Unit: RMB
||||
|-|-|-|
|Item|July-September 2016|July-September 2015|
|1. Operating revenues|157,661,237.17|297,288,997.73|
|Including: Sales income|157,661,237.17|297,288,997.73|
|Interest income|||
|Premium income|||
|Fee and commission income|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|2. Operating costs|161,835,399.65|277,160,232.23|
|Including: Cost of sales|130,151,418.31|208,025,684.89|
|Interest expenses|||
|Fee and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Business tax and surtaxes|1,868,632.47|37,907,220.01|
|Selling expenses|10,977,373.74|7,578,180.79|
|Administrative expenses|25,876,322.92|24,846,620.28|
|Finance costs|-7,038,347.79|-1,190,173.21|
|Asset impairment loss||-7,300.53|
|Add: Profit on fair value changes (“-”|||
|means loss)|||
|Return on investment (“-” means|||
||766,734.31|587,455.97|
|loss)|||
|Including: Share of profit/loss of|||
||766,734.31|587,455.97|
|associates and joint ventures|||
|Foreign exchange profit (“-”|||
|means loss)|||
|3. Operating profit (“-” means loss)|-3,407,428.17|20,716,221.47|
|Add: Non-operating revenue|566,686.18|252,265.29|
|Including: Profit on disposal of|||
|non-current assets|||
|Less: Non-operating expense|281,842.04|48,735.30|
|Including: Loss on disposal of|||
||176,586.11|1,558.00|
|non-current assets|||
|4. Total profit (“-” means loss)|-3,122,584.03|20,919,751.46|
|Less: Corporate income tax|-1,168,803.07|5,626,782.83|
|5. Net profit (“-” means loss)|-1,953,780.96|15,292,968.63|
|Net profit attributable to owners of|||
||-1,953,780.96|15,292,968.63|
|the Company|||
|Minority interests’ income|||
|6. Other comprehensive income net of|||
||-379,677.29|-1,932,969.54|
|tax|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Other comprehensive income net|||
|of tax attributable to owners of the|-379,677.29|-1,932,969.54|
|Company|||
|6.1 Other comprehensive|||
|income that will not be reclassified into|||
|profit/loss|||
|6.1.1 Changes in net liabilities|||
|or assets with a defined benefit plan|||
|upon re-measurement|||
|6.1.2 Share of other|||
|comprehensive income of investees that|||
|cannot be reclassified into profit/loss|||
|under the equity method|||
|6.2 Other comprehensive|||
|income to be subsequently reclassified|-379,677.29|-1,932,969.54|
|into profit/loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit/loss|||
|under the equity method|||
|6.2.2 Profit/loss on fair value|||
|changes of available-for-sale financial|||
|assets|||
|6.2.3 Profit/loss on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|6.2.4 Effective profit/loss on|||
|cash flow hedges|||
|6.2.5 Currency translation|||
||-379,677.29|-1,932,969.54|
|differences|||
|6.2.6 Other|||
|Other comprehensive income net|||
|of tax attributable to minority interests|||
|7. Total comprehensive income|-2,333,458.25|13,359,999.09|
|Attributable to owners of the|||
||-2,333,458.25|13,359,999.09|
|Company|||
|Attributable to minority interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|-0.0033|0.0256|
|8.2 Diluted earnings per share|-0.0033|0.0256|

Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB0.00.
Legal representative: Chen Yugang Accounting head for this Report: Wang Hangjun Head of the accounting organ: Shen Xueying
4. Income statement of the Company for the Reporting Period
Unit: RMB
||||
|-|-|-|
|Item|July-September 2016|July-September 2015|
|1. Operating revenues|16,318,524.86|15,351,042.05|
|Less: Operating costs|4,066,969.06|3,693,681.50|
|Business tax and surtaxes|964,178.65|1,728,915.06|
|Selling expenses|6,023,179.46|243,600.00|
|Administrative expenses|10,389,433.36|10,449,066.27|
|Finance costs|-2,781,233.44|-468,310.00|
|Asset impairment loss|||
|Add: profit on fair value changes (“-”|||
|means loss)|||
|Return on investment (“-” means|||
||766,734.31|587,455.97|
|loss)|||
|Including: Share of profit/loss of|||
||766,734.31|587,455.97|
|associates and joint ventures|||
|2. Operating profit (“-” means loss)|-1,577,267.92|291,545.19|
|Add: Non-operating revenue|-110,802.31|116,384.20|
|Including: Profit on disposal of|||
|non-current assets|||
|Less: Non-operating expense|||
|Including: Loss on disposal of|||
|non-current assets|||
|3. Total profit (“-” means loss)|-1,688,070.23|407,929.39|
|Less: Corporate income tax|-1,098,164.09|132,570.55|
|4. Net profit (“-” means loss)|-589,906.14|275,358.84|
|5. Other comprehensive income net of|||
|tax|||
|5.1 Other comprehensive income that|||
|will not be reclassified into profit and|||
|loss|||
|5.1.1 Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|5.1.2 Share of other|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|comprehensive income of investees that|||
|cannot be reclassified into profit/loss|||
|under the equity method|||
|5.2 Other comprehensive income to|||
|be subsequently reclassified into|||
|profit/loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit/loss|||
|under the equity method|||
|5.2.2 Profit/loss on fair value|||
|changes of available-for-sale financial|||
|assets|||
|5.2.3 Profit/loss on reclassifying|||
|held-to-maturity investments into|||
|available-for-sale financial assets|||
|5.2.4 Effective profit/loss on cash|||
|flow hedges|||
|5.2.5 Currency translation|||
|differences|||
|5.2.6 Other|||
|6. Total comprehensive income|-589,906.14|275,358.84|
|7. Earnings per share|||
|7.1 Basic earnings per share|-0.0010|0.0005|
|7.2 Diluted earnings per share|-0.0010|0.0005|

 5. Consolidated income statement for the period from the year-beginning to the end of the Reporting Period
Unit: RMB
||||
|-|-|-|
|Item|January-September 2016|January-September 2015|
|1. Operating revenues|529,718,717.13|636,050,308.12|
|Including: Sales income|529,718,717.13|636,050,308.12|
|Interest income|||
|Premium income|||
|Fee and commission income|||
|2. Operating costs|538,472,557.97|579,627,409.40|
|Including: Cost of sales|425,159,240.17|407,079,845.48|
|Interest expenses|||
|Fee and commission expenses|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Surrenders|||
|Net claims paid|||
|Net amount provided as|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Business tax and surtaxes|25,613,594.87|84,688,366.10|
|Selling expenses|27,517,133.33|20,236,447.48|
|Administrative expenses|70,448,478.37|73,176,801.98|
|Finance costs|-14,076,786.73|-5,904,548.71|
|Asset impairment loss|3,810,897.96|350,497.07|
|Add: Profit on fair value changes (“-”|||
|means loss)|||
|Return on investment (“-” means|||
||1,925,310.63|7,354,998.23|
|loss)|||
|Including: Share of profit/loss of|||
||1,925,310.63|1,253,865.14|
|associates and joint ventures|||
|Foreign exchange profit (“-”|||
|means loss)|||
|3. Operating profit (“-” means loss)|-6,828,530.21|63,777,896.95|
|Add: Non-operating revenue|1,649,786.58|813,344.67|
|Including: Profit on disposal of|||
|non-current assets|||
|Less: Non-operating expense|580,564.54|1,146,613.45|
|Including: Loss on disposal of|||
||182,886.11|428,479.60|
|non-current assets|||
|4. Total profit (“-” means loss)|-5,759,308.17|63,444,628.17|
|Less: Corporate income tax|1,443,177.42|16,988,827.80|
|5. Net profit (“-” means loss)|-7,202,485.59|46,455,800.37|
|Net profit attributable to owners of|||
||-7,202,485.59|46,455,800.37|
|the Company|||
|Minority interests’ income|||
|6. Other comprehensive income net of|||
||621,139.47|-4,883,870.70|
|tax|||
|Other comprehensive income net|||
|of tax attributable to owners of the|621,139.47|-4,883,870.70|
|Company|||
|6.1 Other comprehensive|||
|income that will not be reclassified into|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|profit/loss|||
|6.1.1 Changes in net liabilities|||
|or assets with a defined benefit plan|||
|upon re-measurement|||
|6.1.2 Share of other|||
|comprehensive income of investees that|||
|cannot be reclassified into profit/loss|||
|under the equity method|||
|6.2 Other comprehensive|||
|income to be subsequently reclassified|621,139.47|-4,883,870.70|
|into profit/loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit/loss|||
|under the equity method|||
|6.2.2 Profit/loss on fair value|||
|changes of available-for-sale financial||-2,933,175.45|
|assets|||
|6.2.3 Profit/loss on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|6.2.4 Effective profit/loss on|||
|cash flow hedges|||
|6.2.5 Currency translation|||
||621,139.47|-1,950,695.25|
|differences|||
|6.2.6 Other|||
|Other comprehensive income net|||
|of tax attributable to minority interests|||
|7. Total comprehensive income|-6,581,346.12|41,571,929.67|
|Attributable to owners of the|||
||-6,581,346.12|41,571,929.67|
|Company|||
|Attributable to minority interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|-0.0121|0.0779|
|8.2 Diluted earnings per share|-0.0121|0.0779|

 Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB0.00.
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 6. Income statement of the Company for the period from the year-beginning to the end of the Reporting Period
Unit: RMB
||||
|-|-|-|
|Item|January-September 2016|January-September 2015|
|1. Operating revenues|48,475,539.74|45,203,996.02|
|Less: Operating costs|11,661,164.07|11,908,834.16|
|Business tax and surtaxes|3,863,411.73|5,879,016.54|
|Selling expenses|12,159,722.48|243,600.00|
|Administrative expenses|25,269,669.06|30,265,006.30|
|Finance costs|-6,912,362.98|-2,774,881.44|
|Asset impairment loss|-1,191,328.44|-616,823.91|
|Add: profit on fair value changes (“-”|||
|means loss)|||
|Return on investment (“-” means|||
||1,925,310.63|7,188,303.69|
|loss)|||
|Including: Share of profit/loss of|||
||1,925,310.63|1,253,865.14|
|associates and joint ventures|||
|2. Operating profit (“-” means loss)|5,550,574.45|7,487,548.06|
|Add: Non-operating revenue|326,967.58|132,198.65|
|Including: Profit on disposal of|||
|non-current assets|||
|Less: Non-operating expense|19,444.98|466,563.12|
|Including: Loss on disposal of|||
|||82,007.63|
|non-current assets|||
|3. Total profit (“-” means loss)|5,858,097.05|7,153,183.59|
|Less: Corporate income tax|1,135,503.72|1,506,478.76|
|4. Net profit (“-” means loss)|4,722,593.33|5,646,704.83|
|5. Other comprehensive income net of|||
|||-2,933,175.45|
|tax|||
|5.1 Other comprehensive income that|||
|will not be reclassified into profit and|||
|loss|||
|5.1.1 Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|5.1.2 Share of other|||
|comprehensive income of investees that|||
|cannot be reclassified into profit/loss|||
|under the equity method|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|5.2 Other comprehensive income to|||
|be subsequently reclassified into||-2,933,175.45|
|profit/loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit/loss|||
|under the equity method|||
|5.2.2 Profit/loss on fair value|||
|changes of available-for-sale financial||-2,933,175.45|
|assets|||
|5.2.3 Profit/loss on reclassifying|||
|held-to-maturity investments into|||
|available-for-sale financial assets|||
|5.2.4 Effective profit/loss on cash|||
|flow hedges|||
|5.2.5 Currency translation|||
|differences|||
|5.2.6 Other|||
|6. Total comprehensive income|4,722,593.33|2,713,529.38|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.0079|0.0095|
|7.2 Diluted earnings per share|0.0079|0.0095|

 7. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting Period
Unit: RMB
||||
|-|-|-|
|Item|January-September 2016|January-September 2015|
|1. Cash flows from operating activities:|||
|Cash received from sale of|||
||3,273,473,246.17|924,011,912.63|
|commodities and rendering of service|||
|Net increase in money deposits from|||
|customers and interbank placements|||
|Net increase in loans from the|||
|Central Bank|||
|Net increase in funds borrowed from|||
|other financial institutions|||
|Cash received from premium of|||
|original insurance contracts|||
|Net cash received from reinsurance|||
|business|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Net increase in deposits of policy|||
|holders and investment fund|||
|Net increase in disposal of financial|||
|assets at fair value through profit/loss|||
|Interest, fees and commissions|||
|received|||
|Net increase in interbank borrowings|||
|Net increase in funds in repurchase|||
|business|||
|Tax refunds received|||
|Cash received from other operating|||
||27,283,040.99|14,557,600.81|
|activities|||
|Subtotal of cash inflows from operating|||
||3,300,756,287.16|938,569,513.44|
|activities|||
|Cash paid for goods and services|482,876,335.33|442,715,869.91|
|Net increase in loans and advances to|||
|customers|||
|Net increase in funds deposited in the|||
|Central Bank and interbank placements|||
|Cash paid for claims of original|||
|insurance contracts|||
|Interest, fees and commissions paid|||
|Cash paid as policy dividends|||
|Cash paid to and for employees|243,851,267.96|231,422,695.09|
|Taxes and fares paid|415,532,706.93|244,719,087.74|
|Cash paid for other operating|||
||57,434,437.02|59,274,516.20|
|activities|||
|Subtotal of cash outflows from|||
||1,199,694,747.24|978,132,168.94|
|operating activities|||
|Net cash flows from operating activities|2,101,061,539.92|-39,562,655.50|
|2. Cash flows from investing activities:|||
|Cash received from retraction of|||
|||6,511,297.75|
|investments|||
|Cash received as return on|||
|||580,374.89|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|142,265.20|662,962.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Cash received from other investing|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|activities|||
|Subtotal of cash inflows from investing|||
||142,265.20|7,754,634.64|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|4,064,786.82|15,775,725.04|
|assets|||
|Cash paid for investment|||
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Cash paid for other investing|||
|activities|||
|Subtotal of cash outflows from|||
||4,064,786.82|15,775,725.04|
|investing activities|||
|Net cash flows from investing activities|-3,922,521.62|-8,021,090.40|
|3. Cash flows from financing activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received as borrowings|15,441,282.23|163,353,000.00|
|Cash received from issuance of|||
|bonds|||
|Cash received from other financing|||
|activities|||
|Subtotal of cash inflows from financing|||
||15,441,282.23|163,353,000.00|
|activities|||
|Repayment of borrowings|289,524,641.06|105,000,000.00|
|Cash paid for interest expenses and|||
||52,824,760.80|140,613,914.10|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
|by subsidiaries to minority interests|||
|Cash paid for other financing|||
||96,000.00|104,500.00|
|activities|||
|Sub-total of cash outflows from|||
||342,445,401.86|245,718,414.10|
|financing activities|||
|Net cash flows from financing activities|-327,004,119.63|-82,365,414.10|
|4. Effect of foreign exchange rate|||
||1,363,567.87|1,680,592.72|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||1,771,498,466.54|-128,268,567.28|
|equivalents|||

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|Add: Opening balance of cash and|||
||933,337,815.77|808,963,376.68|
|cash equivalents|||
|6. Closing balance of cash and cash|||
||2,704,836,282.31|680,694,809.40|
|equivalents|||

8. Cash flow statement of the Company for the period from the year-beginning to the end of the Reporting Period
Unit: RMB
||||
|-|-|-|
|Item|January-September 2016|January-September 2015|
|1. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,957,668,910.52|44,852,046.57|
|commodities and rendering of service|||
|Tax refunds received|||
|Cash received from other operating|||
||438,518,162.35|378,010,218.07|
|activities|||
|Subtotal of cash inflows from operating|||
||2,396,187,072.87|422,862,264.64|
|activities|||
|Cash paid for goods and services|113,912,344.03|75,997,047.38|
|Cash paid to and for employees|16,523,182.29|14,484,460.92|
|Taxes and fares paid|237,602,938.86|56,918,825.92|
|Cash paid for other operating|||
||549,848,146.99|360,182,216.54|
|activities|||
|Subtotal of cash outflows from|||
||917,886,612.17|507,582,550.76|
|operating activities|||
|Net cash flows from operating activities|1,478,300,460.70|-84,720,286.12|
|2. Cash flows from investing activities:|||
|Cash received from retraction of|||
|||6,511,297.75|
|investments|||
|Cash received as return on|||
|||580,374.89|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other||4,980.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Cash received from other investing|||
|activities|||
|Subtotal of cash inflows from investing|||
|||7,096,652.64|
|activities|||
|Cash paid to acquire fixed assets,|71,716.00|54,770.00|

Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016
||||
|-|-|-|
|intangible assets and other long-term|||
|assets|||
|Cash paid for investment|1.00||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Cash paid for other investing|||
|activities|||
|Subtotal of cash outflows from|||
||71,717.00|54,770.00|
|investing activities|||
|Net cash flows from investing activities|-71,717.00|7,041,882.64|
|3. Cash flows from financing activities:|||
|Cash received from capital|||
|contributions|||
|Cash received as borrowings|15,441,282.23|75,353,000.00|
|Cash received from issuance of|||
|bonds|||
|Cash received from other financing|||
|activities|||
|Subtotal of cash inflows from financing|||
||15,441,282.23|75,353,000.00|
|activities|||
|Repayment of borrowings|422,491,189.06||
|Cash paid for interest expenses and|||
||55,449,115.67|145,116,098.15|
|distribution of dividends or profit|||
|Cash paid for other financing|||
|activities|||
|Sub-total of cash outflows from|||
||477,940,304.73|145,116,098.15|
|financing activities|||
|Net cash flows from financing activities|-462,499,022.50|-69,763,098.15|
|4. Effect of foreign exchange rate|||
||-35,796.93|-217,671.81|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||1,015,693,924.27|-147,659,173.44|
|equivalents|||
|Add: Opening balance of cash and|||
||296,196,656.86|338,036,109.52|
|cash equivalents|||
|6. Closing balance of cash and cash|||
||1,311,890,581.13|190,376,936.08|
|equivalents|||

IIAuditor’s report
Is this Report audited?
□ Yes√ No
Shenzhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2016 This Report is unaudited.