ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) CO., LTD.
THIRD QUARTER REPORT 2017
2017-075
October 2017
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) 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 this Report, and shall be jointly and severally liable for any false representation, misleading statements or material omissions in this Report.
All the directors of the Company attended the board meeting for the review of this Report. Zhou Jianguo, Board Chairman, Chen Maozheng, GM, Tang Xiaoping, accounting head for this 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. 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 Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||September 30, 2017||December 31, 2016||Change||
|Total assets (RMB)|3,820,236,889.0||3 3,785,600,783.23||0.91%||
|Equity attributable to owners of the|2,796,350,633.1||7 2,643,860,443.09||||
||||||5.77%||
|parent (RMB)|||||||
||July-September|||January-September|||
|||YoY change||||YoY change|
||2017|||2017|||
|Net sales (RMB)|233,287,425.63|-63.92%||964,594,407.66||-44.71%|
|Net margin attributable to owners of the|12,356,333.26|||149,582,935.10|||
|||-87.90%||||-36.85%|
|parent (RMB)|||||||
|Net margin attributable to owners of the|||||||
|parent before exceptional gains and|12,359,686.56|-87.86%||149,439,732.67||-34.78%|
|losses (RMB)|||||||
|Net cash from operating activities||||-200,649,011.12|||
||--|--||||-136.41%|
|(RMB)|||||||
|Basic earnings per share (RMB/share)|0.0122|-87.91%||0.1479||-36.82%|
|Diluted earnings per share (RMB/share)|0.0122|-87.91%||0.1479||-36.82%|
|Weighted average return on equity (%)|0.45%|-3.61%||5.50%||-4.17%|

 Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|Note|
|Gains/Losses on disposal of non-current assets (inclusive of offset|||
||-61,706.41||
|asset impairment provisions)|||
|Non-operating income and expense other than above|252,642.99||
|Less: Income tax effects|47,734.15||
|Total|143,202.43|--|

Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public —Exceptional Gains and
Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
□ Applicable√ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End 1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and Shareholdings of Top 10 Shareholders
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Total number of common shareholders at|||||Total number of preference shareholders with|||||
|||76,443|||||||0|
|period-end|||||resumed voting rights at period-end (if any)|||||
|Top 10 shareholders||||||||||
|||||Total shares||||Pledged or frozen shares||
||Nature of|Shareholding||||Restricted shares||||
|Name of shareholder||||held at||||||
||shareholder|percentage||||held at period-end||Status|Number|
|||||period-end||||||
|Shenzhen InvestmentHoldings Co., Ltd|State-ownedcorporation|63.55%||642,884,262||||||
|Shandong Gold FinancialHolding Capital ManagementCo., Ltd. －Shandong GoldFinancial Holding SustainingFund 1|Domesticnon-state-ownedcorporation|1.02%||10,300,000||||||
|Lu Zhigao|Domesticindividual|0.32%||3,246,949||||||
|Tan Shiqing|Domesticindividual|0.13%||1,286,701||||||
|Yang Shuilian|Domesticindividual|0.13%||1,273,700||||||
|Yang Jianxiong|Domesticindividual|0.12%||1,255,750||||||
|Central Huijin AssetManagement Co., Ltd.|State-ownedcorporation|0.12%||1,165,500||||||
|Peng Wei|Domesticindividual|0.11%||1,129,082||||||
|Wu Haoyuan|Foreignindividual|0.11%||1,109,300||||||
|Guotai Junan Securities(Hong Kong) Limited|Foreigncorporation|0.10%||1,015,683||||||
|Top 10 non-restricted shareholders||||||||||
|Name of shareholder|||Non-restricted shares||||Type of stock|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
|||||
|-|-|-|-|
||held at period-end|Type|Number|
|Shenzhen Investment Holdings Co., Ltd|642,884,262|RMB ordinary shares|642,884,262|
|Shandong Gold Financial Holding Capital Management Co.,Ltd.－Shandong Gold Financial Holding Sustaining Fund 1|10,300,000|||
|||RMB ordinary shares|10,300,000|
|Lu Zhigao|3,246,949|RMB ordinary shares|3,246,949|
|Tan Shiqing|1,286,701|RMB ordinary shares|1,286,701|
|Yang Shuilian|1,273,700|RMB ordinary shares|1,273,700|
|Yang Jianxiong|1,255,750|Domestically listed stock||
||||1,255,750|
|||for foreign investors||
|Central Huijin Asset Management Co., Ltd.|1,165,500|RMB ordinary shares|1,165,500|
|Peng Wei|1,129,082|RMB ordinary shares|1,129,082|
|Wu Haoyuan|1,109,300|Domestically listed stock||
||||1,109,300|
|||for foreign investors||
|Guotai Junan Securities (Hong Kong) Limited|1,015,683|Domestically listed stock||
||||1,015,683|
|||for foreign investors||
||The Company has found no related parties or act-in- concert parties|||
|Related or acting-in- concert parties among shareholders||||
||as defined in the Administrative Measures for Shareholding Changes|||
|above||||
||in Listed Companies among the shareholders above.|||
||Shareholder No. 4 holds all his shares in the Company in his account|||
|Top 10 common shareholders conducting securities margin||||
||of collateral securities for margin trading. Shareholder No.3 holds|||
|trading (if any)||||
||some of his shares in the Company in such an account.|||

Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company conducted 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 Top 10 of Them at Period-End
□ Applicable√ Not applicable
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Income statement item|January-September2017|January-September2016|Change|Main reason for change|
|Net sales|964,594,407.66|1,744,462,098.00|-44.71%|Decreases in spot housing salescarryforwards and in provision ofconstruction services|
|Cost of sales|686,017,275.92|1,266,493,613.92|-45.83%|Decreases in spot housing salescarryforwards and in provision ofconstruction services|
|Taxes and surtaxes|30,671,236.84|135,398,032.24|-77.35%|Decreased real estate income|
|Selling expense|12,382,407.96|8,844,726.66|40.00%|Increases in sales agency costs andcommission expenditure caused byprojects newly open for sale|
|Finance costs|-2,414,867.29|-11,918,313.56|-79.74%|Decreases in interest and capitalizedinterest associated with real estateprojects|
|Asset impairment losses|0.00|-4,800,000.00|-100.00%|Reversal of bad-deb t provision forcompensation in Luofu Mountainlawsuit case in period January throughSeptember 2016|
|Non-operating income|320,231.95|5,639,605.16|-94.32%|Return of compensation in LuofuMountain lawsuit case in period Januarythrough September 2016|
|Cash flow statement item|January-September2017|January-September2016|Change|Main reason for change|
|Net cash flows from operatingactivities|-200,649,011.12|551,101,766.41|-136.41%|Decrease in cash generated by sale ofgoods|
|Net cash flows from investingactivities|8,643,770.86|-141,856.79|6193.31%|Receipt of downpayment for transfer ofcar rental subsidiary|
|Net cash flows from financingactivities|-18,576,803.21|-397,151,521.05|95.32%|Repayment of bank loans in periodJanuary through September 2016|
|Balance sheet item|September 30, 2017|December 31, 2016|Change|Main reason for change|
|Notes receivable|14,453,488.81|20,606,778.91|-29.86%|Decrease in receivables arising fromprovision of construction services|
|Accounts receivable|165,767,740.97|108,298,050.40|53.07%|Receivables arising from sale of housing|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||||
|-|-|-|-|-|
|||||and provision of construction services|
|Other current assets|31,220,302.17|13,358,714.45|133.71%|Reclassification of prepaid taxes|
|Accounts payable|88,556,436.28|168,614,299.95|-47.48%|Settlement of balance payment forfinished product|
|Non-current liabilities due withinone year|54,000,000.00|37,234,933.67|45.03%|Increase in bank loans due within oneyear|

II Progress, Influence and Solutions Associated with Significant Events
√ Applicable□ Not applicable
Because Shenzhen Investment Holdings Co., Ltd., the controlling shareholder of ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. ( “SPG” or the “Company”), were planning a significant event that involved the Company, theCompany’s stock (A-stock: stock name: SPG A, stock code: 000029; B-stock: stock name: SPG B, stock code: 200029) has been suspended since the opening of September 14, 2016. On September 30, 2016, the Company disclosed the Announcement on Share Trading Suspension Due to Significant Asset Reorganization (No. 2016-025), and continued the suspension due to major assets reorganization since the market opening on September 30, 2016.
The Company is organizing relevant intermediaries to conduct supplementary due diligence on the parties to the reorganization of assets and trading, carry out supplementary audit and evaluation work, and update the major asset restructuring plan or report (draft) and other relevant documents. The major assets reorganization of the Company involves state-owned enterprise reform in
Shenzhen with a complex transaction structure. Because the target assets to be acquired are
associated with an industry-leading enterprise of a large size, the intended transaction is considered a significant, unprecedented event. Thus, it is necessary to communicate with the regulatory
authorities for further discussions, demonstrations and improvement concerning the reorganization plan. Additionally, due to expiry, the audit report and evaluation report of the target assets need to be renewed, and the renewed evaluation report also needs to be filed with the state-owned assets administration, which altogether requires some time. For more information, please see the
Company's subsequent announcements.
During the continued suspension, the Company will keep promoting the work of this major asset reorganization with parties concerned, paying full attention to the progress of the issue and fulfilling the obligation of timely information disclosure in strict accordance with the provisions and
requirements of relevant laws and regulations, that is, the Company will disclose the progress of related matters at least every five trading days.
There is considerable uncertainty for the major assets restructuring prepared by the Company. Investors are kindly reminded to pay attention to investment risk.
||||
|-|-|-|
|Summary of significant event|Disclosure date|Index to related announcement|
|Significant asset reorganization||Announcement on Postponed Share Trading Resumption|
||10/14/2017|Relating to Significant Asset Reorganization in Planning|
|||disclosed on www.cninfo.com.cn|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of the current year through the end of the next reporting period, as well as the reasons:
√ Applicable□ Not applicable
Forecast: Significant decrease at the same direction
Type of the forecast data: Interval data
||||||||||
|-|-|-|-|-|-|-|-|-|
||2017|||2016|Change||||
|Forecast accumulative net|||||||||
||16,000|--|21,800|31,150|Decrease|48.64%|--|30.02%|
|margin (RMB'0,000)|||||||||
|Basic earnings per share|||||||||
||0.1582|--|0.2155|0.3080|Decrease|48.64%|--|30.03%|
|(RMB/share)|||||||||
|Note|Real estate sales carryforwards decreased in Reporting Period compared to Q3 2016||||||||

V Securities Investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments 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 Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|
|07/18/2017|By phone|Individual|Inquired of semi-annual operating conditions of the Company, the|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
|||||
|-|-|-|-|
||||progress of assets reorganization and the expected relisting time, and|
||||didn’t offer written materials|
||||Inquired of the relisting time of assets reorganization, the estimated|
|07/28/2017|By phone|Individual||
||||disclosed time of semi-annual report, and didn’t offer written materials|
||||Inquired of the progress of assets reorganization and the relisting time,|
|08/10/2017|By phone|Individual||
||||and didn’t offer written materials|
||||Inquired of the progress of assets reorganization and the relisting time,|
|08/25/2017|By phone|Individual||
||||and didn’t offer written materials|
||||Inquired of the progress of assets reorganization and the reason for the|
|09/13/2017|By phone|Individual||
||||postponement of relisting, and didn’t offer written materials|
||||Inquired of the progress of assets reorganization, the operating|
|09/29/2017|By phone|Individual|conditions of the Company and the estimated disclosed time of third|
||||quarter report, and didn’t offer written materials|

VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Funds by Its Controlling Shareholder or Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
1. Outline of Targeted Measures in the Reporting Period
2. List of Targeted Measures of Listed Companies in the Reporting Period
||||
|-|-|-|
||Measurement||
|Indicator||Number/Progress|
||unit||
|I. General condition|——|——|
|II. Itemized investment|——|——|
|1. Out of poverty by industrial development|——|——|
|2. Out of poverty by transferring employment|——|——|
|3. Out of poverty by relocating|——|——|
|4. Out of poverty by education|——|——|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|5. Out of poverty by improving health|——|——|
|6. Out of poverty by protecting ecological environment|——|——|
|7. Subsidy for the poorest|——|——|
|8. Social poverty alleviation|——|——|
|9. Other items|——|——|
|III. Received awards(contents and rank)|——|——|

3. Subsequent Targeted Measure Plans
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
September 30, 2017
Unit: RMB
||||
|-|-|-|
|Item|September 30, 2017|December 31, 2016|
|Current assets:|||
|Cash on hand and at bank|1,057,942,554.74|1,266,057,324.40|
|Settlement reserve|||
|Interbank lendings|||
|Financial assets at fair value through gains/losses|||
|Derivative financial assets|||
|Notes receivable|14,453,488.81|20,606,778.91|
|Accounts receivable|165,767,740.97|108,298,050.40|
|Prepayments|13,703,629.69|15,865,139.33|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserve|||
|Interest receivable|||
|Dividends receivable|1,052,192.76|1,052,192.76|
|Other accounts receivable|88,021,593.80|67,514,794.65|
|Financial assets purchased under agreements to resell|||
|Inventories|1,911,577,458.16|1,734,553,042.10|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|31,220,302.17|13,358,714.45|
|Total current assets|3,283,738,961.10|3,227,306,037.00|
|Non-current assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|17,464,240.74|17,464,240.74|
|Held-to-maturity investments|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Long-term accounts receivable|||
|Long-term equity investments|37,447,267.61|37,447,267.61|
|Investment property|399,523,239.12|416,227,686.30|
|Fixed assets|40,967,984.94|45,531,813.41|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|4,764,525.00|5,146,080.00|
|R&D expense|||
|Goodwill|||
|Long-term deferred expense|600,744.52|695,720.30|
|Deferred income tax assets|35,729,926.00|35,781,937.87|
|Other non-current assets|||
|Total non-current assets|536,497,927.93|558,294,746.23|
|Total assets|3,820,236,889.03|3,785,600,783.23|
|Current liabilities:|||
|Short-term borrowings|131,697,522.84|111,709,916.44|
|Borrowings from Central Bank|||
|Money deposits accepted and inter-bank deposits|||
|Interbank borrowings|||
|Financial liabilities at fair value through gains/losses|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|88,556,436.28|168,614,299.95|
|Advances received|278,808,406.35|325,851,112.54|
|Financial assets sold for repurchase|||
|Fees and commissions payable|||
|Payroll payable|26,879,422.81|38,949,995.06|
|Taxes payable|66,343,322.90|65,765,997.90|
|Interest payable|16,535,277.94|17,142,210.94|
|Dividends payable|||
|Other accounts payable|380,693,975.16|358,208,718.03|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|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 year|54,000,000.00|37,234,933.67|
|Other current liabilities|||
|Total current liabilities|1,043,514,364.28|1,123,477,184.53|
|Non-current liabilities:|||
|Long-term borrowings|98,000,000.00|136,000,000.00|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term accounts payable|8,996,594.99|10,156,728.82|
|Long-term payroll payable|||
|Special payables|||
|Provisions|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|106,996,594.99|146,156,728.82|
|Total liabilities|1,150,510,959.27|1,269,633,913.35|
|Owners’ equity:|||
|Share capital|1,011,660,000.00|1,011,660,000.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|978,244,910.11|978,244,910.11|
|Less: Treasury shares|||
|Other comprehensive income|13,559,786.67|10,652,531.69|
|Special reserve|||
|Surplus reserve|59,394,668.24|59,394,668.24|
|Provisions for general risks|||
|Retained earnings|733,491,268.15|583,908,333.05|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Equity attributable to owners of the parent|2,796,350,633.17|2,643,860,443.09|
|Minority interests|-126,624,703.41|-127,893,573.21|
|Total owners’ equity|2,669,725,929.76|2,515,966,869.88|
|Total liabilities and owners’ equity|3,820,236,889.03|3,785,600,783.23|

 Legal representative: Zhou Jianguo Accounting head for this Report: Tang Xiaoping
Head of the accounting department: Qiao Yanjun
2. Parent Company Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|September 30, 2017|December 31, 2016|
|Current assets:|||
|Cash on hand and at bank|717,104,701.43|818,261,250.52|
|Financial assets at fair value through gains/losses|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|44,515,071.91|7,327,250.98|
|Prepayments|||
|Interest receivable|||
|Dividends receivable|169,393,952.18||
|Other accounts receivable|905,005,607.04|844,149,690.07|
|Inventories|502,249,822.63|538,828,597.52|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|18,973,760.44|1,884,516.01|
|Total current assets|2,357,242,915.63|2,210,451,305.10|
|Non-current assets:|||
|Available-for-sale financial assets|12,000,000.00|12,000,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|297,461,748.63|297,461,748.63|
|Investment property|346,767,663.56|360,712,864.13|
|Fixed assets|24,996,251.06|26,785,752.21|
|Construction in progress|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|82,800.00|331,200.00|
|R&D expense|||
|Goodwill|||
|Long-term deferred expense|497,524.14|623,881.08|
|Deferred income tax assets|3,313,320.43|3,313,320.43|
|Other non-current assets|||
|Total non-current assets|685,119,307.82|701,228,766.48|
|Total assets|3,042,362,223.45|2,911,680,071.58|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value through gains/losses|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|17,427,447.26|32,687,289.94|
|Advances received|93,435.00|96,638,512.60|
|Payroll payable|12,783,415.49|16,433,909.11|
|Taxes payable|37,908,568.75|30,504,993.33|
|Interest payable|16,535,277.94|17,142,210.94|
|Dividends payable|||
|Other accounts payable|235,859,067.86|232,434,218.15|
|Liabilities held for sale|||
|Non-current liabilities due within one year|54,000,000.00|37,234,933.67|
|Other current liabilities|||
|Total current liabilities|374,607,212.30|463,076,067.74|
|Non-current liabilities:|||
|Long-term borrowings|98,000,000.00|136,000,000.00|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term payables|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Long-term payroll payable|||
|Special payables|||
|Provisions|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|98,000,000.00|136,000,000.00|
|Total liabilities|472,607,212.30|599,076,067.74|
|Owners’ equity:|||
|Share capital|1,011,660,000.00|1,011,660,000.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|978,244,910.11|978,244,910.11|
|Less: Treasury shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserve|36,265,054.83|36,265,054.83|
|Retained earnings|543,585,046.21|286,434,038.90|
|Total owners’ equity|2,569,755,011.15|2,312,604,003.84|
|Total liabilities and owners’ equity|3,042,362,223.45|2,911,680,071.58|

 3. Consolidated Income Statement for July-September
Unit: RMB
||||
|-|-|-|
|Item|July-September 2017|July-September 2016|
|1. Operating revenue|233,287,425.63|646,575,128.32|
|Including: Net sales|233,287,425.63|646,575,128.32|
|Interest revenue|||
|Premium revenue|||
|Fee and commission revenue|||
|2. Operating expenses|212,356,504.34|510,103,979.66|
|Including: Cost of sales|191,067,478.03|450,466,369.81|
|Interest expense|||
|Fee and commission expense|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium expense|||
|Taxes and surtaxes|6,757,925.61|49,029,822.53|
|Selling expense|5,549,604.20|3,736,985.23|
|Administrative expense|8,760,792.21|11,740,962.01|
|Finance costs|220,704.29|-4,870,159.92|
|Asset impairment losses|||
|Add: Gains on fair value changes (“-” for losses)|||
|Investment income (“-” for losses)|||
|Including: Share of gains/losses of associates and|||
|joint ventures|||
|Exchange gains (“-” for losses)|||
|Other income|||
|3. Operating margin (“-” for losses)|20,930,921.29|136,471,148.66|
|Add: Non-operating income|3,210.52|426,147.22|
|Including: Gains on disposal of non-current assets|||
|Less: Non-operating expense|7,681.58|14,709.01|
|Including: Losses on disposal of non- current|||
||3,518.85|2,374.95|
|assets|||
|4. Gross margin (“-” for losses)|20,926,450.23|136,882,586.87|
|Less: Income tax expense|8,520,281.69|34,747,273.16|
|5. Net margin (“-” for losses)|12,406,168.54|102,135,313.71|
|Attributable to owners of the parent|12,356,333.26|102,114,004.00|
|Attributable to minority interests|49,835.28|21,309.71|
|6. Other comprehensive income, net of tax|2,101,707.56|-475,668.34|
|Other comprehensive income, net of tax attributable|||
||1,471,195.30|-332,967.84|
|to owners of the parent|||
|6.1 Other comprehensive income that will not be|||
|reclassified into gains/losses|||
|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 gains/losses|||
|under equity method|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|6.2 Other comprehensive income to be|||
||1,471,195.30|-332,967.84|
|subsequently reclassified into gains/losses|||
|6.2.1 Share of other comprehensive income of|||
|investees that will be reclassified into gains/losses under|||
|equity method|||
|6.2.2 Gains/Losses on fair value changes of|||
|available-for-sale financial assets|||
|6.2.3 Gains/Losses on reclassifying|||
|held-to-maturity investments into available-for- sale|||
|financial assets|||
|6.2.4 Effective gains/losses on cash flow hedges|||
|6.2.5 Currency translation differences|1,471,195.30|-332,967.84|
|6.2.6 Other|||
|Other comprehensive income, net of tax attributable|||
||630,512.26|-142,700.50|
|to minority interests|||
|7. Total comprehensive income|14,507,876.10|101,659,645.37|
|Attributable to owners of the parent|13,827,528.56|101,781,036.16|
|Attributable to minority interests|680,347.54|-121,390.79|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.0122|0.1009|
|8.2 Diluted earnings per share|0.0122|0.1009|

 Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Zhou Jianguo Accounting head for this Report: Tang Xiaoping
Head of the accounting department: Qiao Yanjun
4. Parent Company Income Statement for July-September
Unit: RMB
||||
|-|-|-|
|Item|July-September 2017|July-September 2016|
|1. Operating revenue|13,471,349.96|266,626,675.90|
|Less: Operating expenses|6,307,313.70|155,326,755.18|
|Taxes and surtaxes|1,612,856.89|29,125,547.39|
|Selling expense|266,196.50|1,675,287.56|
|Administrative expense|3,272,107.52|5,434,083.01|
|Finance costs|-2,381,767.73|-4,659,769.98|
|Asset impairment losses|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Add: Gains on fair value changes (“-” for losses)|||
|Investment income (“-” for loss)|||
|Including: Share of gains/losses of associates and|||
|joint ventures|||
|Other income|||
|2. Operating margin (“-” for losses)|4,394,643.08|79,724,772.74|
|Add: Non-operating income|||
|Including: Gains on disposal of non-current assets|||
|Less: Non-operating expense||12,234.00|
|Including: Losses on disposal of non-current assets|||
|3. Gross margin (“-” for losses)|4,394,643.08|79,712,538.74|
|Less: Income tax expense|1,873,814.49|19,931,610.08|
|4. Net margin (“-” for losses)|2,520,828.59|59,780,928.66|
|5. Other comprehensive income, net of tax|||
|5.1 Other comprehensive income that will not be|||
|reclassified into gains and losses|||
|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 gains/losses|||
|under equity method|||
|5.2 Other comprehensive income to be subsequently|||
|reclassified into gains/losses|||
|5.2.1 Share of other comprehensive income of|||
|investees that will be reclassified into gains/losses under|||
|equity method|||
|5.2.2 Gains/Losses on fair value changes of|||
|available-for-sale financial assets|||
|5.2.3 Gains/Losses on reclassifying held-to- maturity|||
|investments into available-for-sale financial assets|||
|5.2.4 Effective gains/losses on cash flow hedges|||
|5.2.5 Currency translation differences|||
|5.2.6 Other|||
|6. Total comprehensive income|2,520,828.59|59,780,928.66|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.0025|0.0591|
|7.2 Diluted earnings per share|0.0025|0.0591|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
5. Consolidated Income Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Operating revenue|964,594,407.66|1,744,462,098.00|
|Including: Net sales|964,594,407.66|1,744,462,098.00|
|Interest revenue|||
|Premium revenue|||
|Fee and commission revenue|||
|2. Operating expenses|760,136,084.33|1,432,716,353.04|
|Including: Cost of sales|686,017,275.92|1,266,493,613.92|
|Interest expense|||
|Fee and commission expense|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium expense|||
|Taxes and surtaxes|30,671,236.84|135,398,032.24|
|Selling expense|12,382,407.96|8,844,726.66|
|Administrative expense|33,480,030.90|38,698,293.78|
|Finance costs|-2,414,867.29|-11,918,313.56|
|Asset impairment losses||-4,800,000.00|
|Add: Gains on fair value changes (“-” for losses)|||
|Investment income (“-” for losses)|650,000.00|625,209.41|
|Including: Share of gains/losses of associates and|||
|||-63,790.59|
|joint ventures|||
|Exchange gains (“-” for losses)|||
|Other income|||
|3. Operating margin (“-” for losses)|205,108,323.33|312,370,954.37|
|Add: Non-operating income|320,231.95|5,639,605.16|
|Including: Gains on disposal of non-current assets|||
|Less: Non-operating expense|129,295.37|115,286.41|
|Including: Losses on disposal of non- current|||
||61,706.41|5,022.45|
|assets|||
|4. Gross margin (“-” for losses)|205,299,259.91|317,895,273.12|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Less: Income tax expense|55,693,421.41|81,031,960.64|
|5. Net margin (“-” for losses)|149,605,838.50|236,863,312.48|
|Attributable to owners of the parent|149,582,935.10|236,875,125.51|
|Attributable to minority interests|22,903.40|-11,813.03|
|6. Other comprehensive income, net of tax|4,153,221.38|-2,717,649.11|
|Other comprehensive income, net of tax attributable|||
||2,907,254.98|-1,902,354.38|
|to owners of the parent|||
|6.1 Other comprehensive income that will not be|||
|reclassified into gains/losses|||
|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 gains/losses|||
|under equity method|||
|6.2 Other comprehensive income to be|||
||2,907,254.98|-1,902,354.38|
|subsequently reclassified into gains/losses|||
|6.2.1 Share of other comprehensive income of|||
|investees that will be reclassified into gains/losses under|||
|equity method|||
|6.2.2 Gains/Losses on fair value changes of|||
|available-for-sale financial assets|||
|6.2.3 Gains/Losses on reclassifying|||
|held-to-maturity investments into available-for- sale|||
|financial assets|||
|6.2.4 Effective gains/losses on cash flow hedges|||
|6.2.5 Currency translation differences|2,907,254.98|-1,902,354.38|
|6.2.6 Other|||
|Other comprehensive income, net of tax attributable|||
||1,245,966.40|-815,294.73|
|to minority interests|||
|7. Total comprehensive income|153,759,059.88|234,145,663.37|
|Attributable to owners of the parent|152,490,190.08|234,972,771.13|
|Attributable to minority interests|1,268,869.80|-827,107.76|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.1479|0.2341|
|8.2 Diluted earnings per share|0.1479|0.2341|

 Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
6. Parent Company Income Statement for January-September
Unit: RMB
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Operating revenue|243,028,509.35|578,764,259.97|
|Less: Operating expenses|117,577,476.14|335,572,846.36|
|Taxes and surtaxes|7,458,223.71|62,674,556.43|
|Selling expense|1,230,781.87|4,064,476.96|
|Administrative expense|14,566,751.21|18,760,239.38|
|Finance costs|-15,001,382.11|-15,121,347.54|
|Asset impairment losses||-4,800,000.00|
|Add: Gains on fair value changes (“-” for losses)|||
|Investment income (“-” for loss)|170,043,952.18|625,209.41|
|Including: Share of gains/losses of associates and|||
|||-63,790.59|
|joint ventures|||
|Other income|||
|2. Operating margin (“-” for losses)|287,240,610.71|178,238,697.79|
|Add: Non-operating income|2.69|5,011,250.72|
|Including: Gains on disposal of non-current assets|||
|Less: Non-operating expense|12,574.69|31,734.06|
|Including: Losses on disposal of non-current assets|||
|3. Gross margin (“-” for losses)|287,228,038.71|183,218,214.45|
|Less: Income tax expense|30,077,031.40|45,659,475.88|
|4. Net margin (“-” for losses)|257,151,007.31|137,558,738.57|
|5. Other comprehensive income, net of tax|||
|5.1 Other comprehensive income that will not be|||
|reclassified into gains and losses|||
|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 gains/losses|||
|under equity method|||
|5.2 Other comprehensive income to be subsequently|||
|reclassified into gains/losses|||
|5.2.1 Share of other comprehensive income of|||
|investees that will be reclassified into gains/losses under|||
|equity method|||
|5.2.2 Gains/Losses on fair value changes of|||
|available-for-sale financial assets|||
|5.2.3 Gains/Losses on reclassifying held-to- maturity|||
|investments into available-for-sale financial assets|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|5.2.4 Effective gains/losses on cash flow hedges|||
|5.2.5 Currency translation differences|||
|5.2.6 Other|||
|6. Total comprehensive income|257,151,007.31|137,558,738.57|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.2542|0.1360|
|7.2 Diluted earnings per share|0.2542|0.1360|

 7. Consolidated Cash Flow Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Cash generated by or used in operating activities:|||
|Cash generated by sale of commodities and rendering|||
||952,036,798.69|1,697,750,778.39|
|of service|||
|Net increase in money deposits from customers and|||
|interbank placements|||
|Net increase in loans from Central Bank|||
|Net increase in funds borrowed from other financial|||
|institutions|||
|Cash received as premiums of original insurance|||
|contracts|||
|Net cash generated by reinsurance business|||
|Net increase in deposits of policy holders and|||
|investment fund|||
|Net increase in disposal of financial assets at fair value|||
|through gains/losses|||
|Interest, fees and commissions received|||
|Net increase in interbank borrowings|||
|Net increase in funds in repurchase business|||
|Tax rebates received|||
|Cash generated by other operating activities|63,746,128.65|141,397,167.24|
|Subtotal of cash generated by operating activities|1,015,782,927.34|1,839,147,945.63|
|Cash paid for goods and services|851,439,343.84|829,026,819.30|
|Net increase in loans and advances to customers|||
|Net increase in funds deposited in Central Bank and|||
|interbank placements|||
|Cash paid for claims of original insurance contracts|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Interest, fees and commissions paid|||
|Cash paid as policy dividends|||
|Cash paid to and for employees|111,403,737.30|110,555,686.90|
|Taxes paid|137,641,963.40|212,631,127.12|
|Cash used in other operating activities|115,946,893.92|135,832,545.90|
|Subtotal of cash used in operating activities|1,216,431,938.46|1,288,046,179.22|
|Net cash from operating activities|-200,649,011.12|551,101,766.41|
|2. Cash generated by or used in investing activities:|||
|Cash generated by disinvestments|1,376,616.35||
|Cash received as investment income|650,000.00|689,000.00|
|Net cash generated by disposal of fixed assets,|||
||14,976.00|5,900.00|
|intangible assets and other long-term assets|||
|Net cash generated by disposal of subsidiaries or other|||
||7,286,982.00||
|business units|||
|Cash generated by other investing activities|||
|Subtotal of cash generated by investing activities|9,328,574.35|694,900.00|
|Cash paid to acquire fixed assets, intangible assets and|||
||684,803.49|836,756.79|
|other long-term assets|||
|Cash paid for investments|||
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries and other business|||
|units|||
|Cash used in other investing activities|||
|Subtotal of cash used in investing activities|684,803.49|836,756.79|
|Net cash from investing activities|8,643,770.86|-141,856.79|
|3. Cash generated by or used in financing activities:|||
|Cash received as capital contributions|||
|Including: Cash received from minority shareholder|||
|investments by subsidiaries|||
|Cash received as borrowings|20,900,000.00|18,000,000.00|
|Cash generated by issuance of bonds|||
|Cash generated by other financing activities|||
|Subtotal of cash generated by financing activities|20,900,000.00|18,000,000.00|
|Repayment of borrowings|32,216,016.22|394,180,434.67|
|Cash paid for interest expenses and distribution of|||
||7,260,786.99|20,971,086.38|
|dividends or profit|||
|Including: dividends or profit paid by subsidiaries to|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|minority interests|||
|Cash used in other financing activities|||
|Sub-total of cash used in financing activities|39,476,803.21|415,151,521.05|
|Net cash from financing activities|-18,576,803.21|-397,151,521.05|
|4. Effect of foreign exchange rate changes on cash and|||
||-532,868.23|275,526.59|
|cash equivalents|||
|5. Net increase in cash and cash equivalents|-211,114,911.70|154,083,915.16|
|Add: Opening balance of cash and cash equivalents|1,265,767,290.57|1,169,756,306.36|
|6. Closing balance of cash and cash equivalents|1,054,652,378.87|1,323,840,221.52|

 8. Parent Company Cash Flow Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Cash generated by or used in operating activities:|||
|Cash generated by sale of commodities and rendering|||
||122,602,887.22|564,947,718.21|
|of service|||
|Tax rebates received|||
|Cash generated by other operating activities|17,886,514.26|200,849,272.34|
|Subtotal of cash generated by operating activities|140,489,401.48|765,796,990.55|
|Cash paid for goods and services|68,730,205.88|79,393,857.65|
|Cash paid to and for employees|29,550,117.76|28,900,972.17|
|Taxes paid|61,804,843.80|103,944,998.09|
|Cash used in other operating activities|61,639,460.72|99,666,579.67|
|Subtotal of cash used in operating activities|221,724,628.16|311,906,407.58|
|Net cash from operating activities|-81,235,226.68|453,890,582.97|
|2. Cash generated by or used in investing activities:|||
|Cash generated by disinvestments|||
|Cash received as investment income|650,000.00|689,000.00|
|Net cash generated by disposal of fixed assets,|||
|intangible assets and other long-term assets|||
|Net cash generated by disposal of subsidiaries or other|||
||7,286,982.00||
|business units|||
|Cash generated by other investing activities|||
|Subtotal of cash generated by investing activities|7,936,982.00|689,000.00|
|Cash paid to acquire fixed assets, intangible assets and|||
||112,874.00|38,189.00|
|other long-term assets|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Cash paid for investments|||
|Net cash paid to acquire subsidiaries and other business|||
|units|||
|Cash used in other investing activities|||
|Subtotal of cash used in investing activities|112,874.00|38,189.00|
|Net cash from investing activities|7,824,108.00|650,811.00|
|3. Cash generated by or used in financing activities:|||
|Cash received as capital contributions|||
|Cash received as borrowings|||
|Cash generated by issuance of bonds|||
|Cash generated by other financing activities|||
|Subtotal of cash generated by financing activities|||
|Repayment of borrowings|21,216,016.22|369,180,434.67|
|Cash paid for interest expenses and distribution of|||
||6,495,933.73|19,969,650.74|
|dividends or profit|||
|Cash used in other financing activities|||
|Sub-total of cash used in financing activities|27,711,949.95|389,150,085.41|
|Net cash from financing activities|-27,711,949.95|-389,150,085.41|
|4. Effect of foreign exchange rate changes on cash and|||
||-33,480.46|15,773.98|
|cash equivalents|||
|5. Net increase in cash and cash equivalents|-101,156,549.09|65,407,082.54|
|Add: Opening balance of cash and cash equivalents|818,261,250.52|852,492,165.42|
|6. Closing balance of cash and cash equivalents|717,104,701.43|917,899,247.96|

 IIAuditor’s Report
Are the Q3 2017 financial statements audited?
□Yes√ No
These financial statements are unaudited.