ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 SHENZHEN PROPERTIES& RESOURCES DEVELOPMENT (GROUP) LTD.
FIRST QUARTER REPORT 2018
(Announcement No. 2018-12)
April 2018
ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors, Supervisors and senior management of ShenZhen Properties& Resources Development (Group) Ltd. (inclusive of its consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions in this Report.
All theCompany’s Directors have attended the Board meeting for the review of this Report. Chen Yugang, theCompany’s legal representative, Wang Hangjun, theCompany’s head of financial affairs, and Shen Xueying, head of theCompany’s financial department (equivalent to financial manager) 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. First Quarter Report 2018 Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2018|January-March 2017|Change|
|Sales revenue (RMB)|544,366,414.09|1,038,683,462.42|-47.59%|
|Net income attributable to shareholders of|53,456,824.88|301,597,814.36||
||||-82.28%|
|the listed company (RMB)||||
|Net income attributable to shareholders of||||
|the listed company before nonrecurring|53,039,124.57|301,333,394.74|-82.40%|
|gains and losses (RMB)||||
|Net cash flows from operating activities|-96,704,935.74|-252,974,419.19||
||||-61.77%|
|(RMB)||||
|Basic earnings per share (RMB/share)|0.0897|0.5061|-82.28%|
|Diluted earnings per share (RMB/share)|0.0897|0.5061|-82.28%|
|Weighted average return on equity (%)|1.81%|11.77%|-9.96%|
||March 31, 2018|December 31, 2017|Change|
|Total assets (RMB)|4,952,479,502.71|5,393,331,548.87|-8.17%|
|Equity attributable to shareholders of the|2,977,280,648.84|2,921,693,794.08||
||||1.90%|
|listed company (RMB)||||

Nonrecurring gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|Note|
|Gains and losses on disposal of non-current assets (inclusive of|||
||-20,561.94||
|offset allowance for asset impairments)|||
|Non-operating revenue and expense other than above|577,175.10||
|Less: Income tax effects|138,912.85||
|Total|417,700.31|--|

Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Nonrecurring Gains and Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable√ Not applicable
No such cases for the Reporting Period.
ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 II Total Number of Shareholders and Top 10Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Preferred shareholders with|||||
|Common shareholders at|||||||||
|||47,299||resumed voting rights at|||0||
|period-end|||||||||
|||||period-end (if any)|||||
|Top 10 shareholders|||||||||
|||Shareholding||||Pledged or frozen shares|||
|Name of|Nature of||||||||
|||percentage at|Shares||Restricted shares||||
|shareholder|shareholder|||||Status||Shares|
|||period-end (%)|||||||
|ShenzhenConstructionInvestmentHoldingsCorporation|State-ownedjuridical person|54.33%|323,796,324||293,997,370||||
|ShenzhenInvestmentManagementCorporation|State-ownedjuridical person|9.49%|56,582,573||56,582,573||||
|Du Xinye|State-ownedjuridical person|0.65%|3,880,800||||||
|Zhou Qun|Domestic naturalperson|0.52%|3,115,450||||||
|Du Yunfeng|Domestic naturalperson|0.39%|2,323,000||||||
|ShenzhenDuty-FreeCommodityEnterprises Co.,Ltd.|Domesticnon-state-ownedjuridical person|0.29%|1,730,300||1,730,300||||
|Yang Yaochu|Domestic naturalperson|0.24%|1,410,620||||||
|Li Jing|Domestic naturalperson|0.20%|1,176,740||||||
|Mai Furong|Domestic naturalperson|0.19%|1,130,500||||||
|Chen Liying|Domestic natural|0.16%|953,521||||||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||||
|-|-|-|-|-|
||person||||
|Top 10 non-restricted shareholders|||||
||||Type of shares||
|Name of shareholder||Non-restricted shares held at period-end|||
||||Type|Shares|
|Shenzhen Construction InvestmentHoldings Corporation||29,798,954|RMB common||
|||||29,798,954|
||||stock||
|Du Xinye||3,880,800|RMB common||
|||||3,880,800|
||||stock||
|Zhou Qun||3,115,450|RMB common||
|||||3,115,450|
||||stock||
|Du Yunfeng||2,323,000|RMB common||
|||||2,323,000|
||||stock||
|Yang Yaochu||1,410,620|Domestically||
||||listed stock for|1,410,620|
||||foreign investors||
|Li Jing||1,176,740|Domestically||
||||listed stock for|1,176,740|
||||foreign investors||
|Mai Furong||1,130,500|Domestically||
||||listed stock for|1,130,500|
||||foreign investors||
|Chen Liying||953,521|Domestically||
||||listed stock for|953,521|
||||foreign investors||
|Zhang Shaoming||729,300|RMB common||
|||||729,300|
||||stock||
|Wuhan Xingkaiyuan ElectricalPower Engineering Co., Ltd||700,000|RMB common||
|||||700,000|
||||stock||
|||The first and second principal shareholders of the Company are managed by Shenzhen|||
|Related or acting-in-concert parties||Investment Holding Corporation, the actual controlling shareholder of the Company. And the|||
|among shareholders above||Company does not know whether there are related parties or acting-in-concert parties among|||
|||the other 8 shareholders.|||
|Shareholders conducting securities|||||
|||N/A|||
|margin trading (if any)|||||

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.
ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
√ Applicable□ Not applicable
1. Other accounts receivable stood at RMB23,732,485.54 at the end of the Reporting Period, down by74.02% from the opening amount, mainly because of the collection of the final payment from the share transfer of two taxi service subsidiaries in the Reporting Period.
2. The advances from customers stood at RMB131,168,812.43 at the end of the Reporting Period, down by74.63% from the opening amount, mainly because of the carry-over of the advances from customers for property sales available for carry-over in the Reporting Period.
3. Other comprehensive income stood at RMB-1,981,557.26 at the end of the Reporting Period, up by51.81% from the opening amount, mainly because of the increase of the differences arising from translation of foreign currency-denominated financial statements caused by changes in foreign exchange rates.
4. The sales revenue realized by the Company in the Reporting Period stood at RMB544,366,414.09, down by47.59% from the same period of last year, mainly because of the dramatic decrease of revenues from real estate business caused by the slump of the average settlement price for various projects.
5. The cost of sales in the Reporting Period stood at RMB465,535,043.55, up by77.38% from the same period of last year, mainly because of the increase of the project settlement area.
6. The taxes and surtaxes of the Company in the Reporting Period stood at RMB4,305,000.94, down by98.78% from the same period of last year, mainly because of the dramatic decrease of the increment tax on land value caused by the slump of the gross profit rate of projects settled in the Reporting Period
7. The selling expense of the Company in the Reporting Period stood at RMB2,237,799.47, down by54.82% from the same period of last year, mainly because of the decrease of paid sales agent fees and service charges caused by the reduction of sales realized in the Reporting Period.
8. The finance costs of the Company in the Reporting Period stood at RMB-18,926,710.87, the income (negative) was up by162.12%, mainly because of the increase of interest revenue in the Reporting Period.
9. The asset impairment losses of the Company in the Reporting Period stood at RMB0.00, the asset impairment losses of the same period of last year was of RMB-233,280.00, mainly because of the return of accounts receivable of the same period of last year which were accrued bad debt provision by aging analysis method into bad debt provision.
10. Both the investment income realized by the Company and the investment income in joint ventures and associates in the Reporting Period were RMB-280,948.37, both down by132.31% from the same period of last year, mainly because of the reduction of revenues realized by joint ventures of the Company in the Reporting Period.
11. The net non-operating revenue of the Company in the Reporting Period stood at RMB556,613.16, up by83.54% from the same period of last year, mainly because of the increase of confiscated income in the Reporting Period.
12. The income tax expense of the Company in the Reporting Period stood at RMB17,958,805.45, down by82.03% from the same period of last year, mainly because of the reduction of profits realized by the Company in
ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 the Reporting Period.
13. The operating income, pretax income and net income (attributable to the Parent Company) realized by the Company in the Reporting Period respectively stood at RMB70,859,017.17, RMB71,415,630.33, and RMB53,456,824.88, respectively down by82.34%,82.21% and82.28%, mainly because of the decrease of income arising from real estate business realized by the Company in the Reporting Period and because of the slump of gross profit rate of projects settled
14. Other comprehensive income, net of tax, of the Company in the Reporting Period stood at RMB2,130,029.88, up by426.07% from the same period of last year, mainly because of the increase of the differences arising from translation of foreign currency-denominated financial statements caused by changes in foreign exchange rates. 15. The net cash flows from operating activities of the Company in the Reporting Period stood at RMB-96,704,935.74, the net outflow (negative) was down by61.77% from the same period of last year, mainly because of the decrease of taxes paid by the Company in the Reporting Period.
16. The net cash flows from investing activities of the Company in the Reporting Period stood at RMB75,616,212.09, up by51239.71% from the same period of last year, mainly because of the collection of the final payment for the share transfer of two taxi service subsidiaries in the Reporting Period.
17. The net increase in cash and cash equivalents of the Company in the Reporting Period stood at RMB-23,171,492.09, the net outflow (negative) was down by90.86% from the same period of last year, mainly because of the reduction of the taxes paid by the Company in the Reporting Period.
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable√ Not applicable
III Commitments that theCompany’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 Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018, as well as explanation of why:
□ Applicable√ Not applicable
V Securities Investments
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Initial||Opening||Closing|||||
||Symbol|||Opening||Closing|||Gain/loss|||
|||||||||Closing||||
|Variety of||Name of|investmen||holding||holding||in|Accounti||
||of|||holding||holding||book|Reporting||Source|
|security||security|t cost||percentag||percentag|value||ng title||
||security|||(share)||(share)||(RMB)|Period|||
||||(RMB)||e||e||(RMB)|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Available|Obtained|
||||2,991,975|||||2,991,975||-for-sale|in debt|
|Stock|400016|Gintian A||1,431,567|0.43%|1,431,567|0.43%|||||
||||.03|||||.03||financial|restructur|
|||||||||||asset|ing|
|||||||||||Available|Obtained|
||||573,881.0|||||599,234.1||-for-sale|in debt|
|Stock|420016|Gintian B||539,455|0.16%|539,455|0.16%|||||
||||3|||||7||financial|restructur|
|||||||||||asset|ing|
||||3,565,856|||||3,591,209||||
|Total||||1,971,022|--|1,971,022|--||0.00|--|--|
||||.06|||||.20||||
|Disclosure date of||||||||||||
|announcement on Board’s||||||||||||
|consent for securities||||||||||||
|investment||||||||||||
|Disclosure date of||||||||||||
|announcement on shareholders’||||||||||||
|meeting’s consent for securities||||||||||||
|investment (if any)||||||||||||

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|
|January 5, 2018|SZSE EasyIR|Individual|Inquired of the situations of land auction|
||||Inquired of the sales and land banking of|
|January 11, 2018|SZSE EasyIR|Individual||
||||Front Sea Project|
||||Inquired of the future development strategy|
|January 11, 2018|By phone|Individual||
||||of the Company|
||||Inquired of the overviews of Golden Collar’s|
|January 12, 2018|SZSE EasyIR|Individual||
||||Resort Project|
||||Inquired of the business development of the|
|January 18, 2018|SZSE EasyIR|Individual||
||||Company|
|January 26, 2018|SZSE EasyIR|Individual|Inquired of the bank landing of the Company|
|January 31, 2018|By phone|Individual|Inquired of the earnings forecast of the|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
|||||
|-|-|-|-|
||||annual report of the Company|
||||Inquired of the operation and stocks’ price|
|February 1, 2018|By phone|Individual||
||||trend of the Company|
||||Inquired of the situations of land in Meilin of|
|February 2, 2018|SZSE EasyIR|Individual||
||||the Company|
||||Inquired of the stocks’ price trend of the|
|February 7, 2018|By phone|Individual||
||||Company|
||||Inquired of the stock price and performance|
|February 8, 2018|SZSE EasyIR|Individual||
||||of the Company|
||||Inquired of the disclosure of annual report of|
|February 8, 2018|SZSE EasyIR|Individual||
||||the Company|
||||Inquired of lifting the ban for restricted|
|February 11, 2018|SZSE EasyIR|Individual||
||||shares|
||||Inquired of the development plan between|
|February 12, 2018|SZSE EasyIR|Individual|Guangdong-Hong Kong-Macao Bay Area|
||||and the Company|
||||Inquired of the advices for dividends scheme|
|February 14, 2018|SZSE EasyIR|Individual||
||||of the Company|
||||Inquired of the investment plan between|
|March 6, 2018|SZSE EasyIR|Individual|Guangdong-Hong Kong-Macao Bay Area|
||||and the Company|
||||Inquired of the measures of state-owned|
|March 9, 2018|SZSE EasyIR|Individual||
||||enterprises reform|
||||Inquired of the land banking and future|
|March 19, 2018|SZSE EasyIR|Individual||
||||planning of the Company|
||||Inquired of the plan for state-owned|
|March 23, 2018|SZSE EasyIR|Individual|enterprises reform and the restricted shares|
||||of major shareholders of the Company|

 VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Money by Its Controlling Shareholder or Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Properties& Resources Development (Group) Ltd.
March 31, 2018
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|2,453,857,323.12|2,477,028,815.21|
|Settlement reserve|||
|Interbank loans granted|||
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|51,644,714.05|46,272,600.86|
|Prepayments|28,386,207.66|28,149,956.60|
|Premiums receivable|||
|Reinsurance receivables|||
|Receivable reinsurance contract|||
|reserve|||
|Interest receivable|||
|Dividends receivable|||
|Other receivables|23,732,485.54|91,345,782.84|
|Financial assets purchased under|||
|resale agreements|||
|Inventories|1,511,319,681.72|1,850,672,044.36|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|173,103.46|12,370,820.97|
|Total current assets|4,069,113,515.55|4,505,840,020.84|
|Non-current assets:|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Loans and advances to customers|||
|Available-for-sale financial assets|3,591,209.20|3,591,209.20|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|38,449,444.59|38,730,392.96|
|Investment property|421,002,016.73|426,849,558.05|
|Property, plant and equipment|29,625,014.82|29,346,901.33|
|Construction in progress|||
|Engineering materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|||
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|908,124.78|951,368.85|
|Deferred income tax assets|389,790,177.04|388,022,097.64|
|Other non-current assets|||
|Total non-current assets|883,365,987.16|887,491,528.03|
|Total assets|4,952,479,502.71|5,393,331,548.87|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from central bank|||
|Customer deposits and deposits from|||
|banks and other financial institutions|||
|Interbank loans obtained|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|437,656,848.86|491,963,303.62|
|Advances from customers|131,168,812.43|516,984,711.11|
|Financial assets sold under|||
|repurchase agreements|||
|Handling charges and commissions|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|payable|||
|Payroll payable|85,204,649.61|92,066,474.54|
|Taxes payable|1,148,550,335.72|1,192,587,256.66|
|Interest payable|||
|Dividends payable|29,642.40|29,642.40|
|Other payables|117,111,020.29|122,592,357.98|
|Reinsurance payables|||
|Insurance contract reserve|||
|Payables for acting trading of|||
|securities|||
|Payables for underwriting of|||
|securities|||
|Liabilities directly associated with|||
|assets classified as held for sale|||
|Current portion of non-current|||
|liabilities|||
|Other current liabilities|||
|Total current liabilities|1,919,721,309.31|2,416,223,746.31|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|||
|Deferred income tax liabilities|7,586.81|8,668.15|
|Other non-current liabilities|54,607,870.69|54,543,253.27|
|Total non-current liabilities|54,615,457.50|54,551,921.42|
|Total liabilities|1,974,336,766.81|2,470,775,667.73|
|Owners’ equity:|||
|Share capital|595,979,092.00|595,979,092.00|
|Other equity instruments|||
|Including: Preferred shares|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Perpetual bonds|||
|Capital reserves|118,938,132.89|118,938,132.89|
|Less: Treasury shares|||
|Other comprehensive income|-1,981,557.26|-4,111,587.14|
|Specific reserve|||
|Surplus reserves|299,569,569.96|299,569,569.96|
|General reserve|||
|Retained earnings|1,964,775,411.25|1,911,318,586.37|
|Total equity attributable to owners of|||
||2,977,280,648.84|2,921,693,794.08|
|Parent Company|||
|Non-controlling interests|862,087.06|862,087.06|
|Total owners’ equity|2,978,142,735.90|2,922,555,881.14|
|Total liabilities and owners’ equity|4,952,479,502.71|5,393,331,548.87|

 Legal representative: Chen Yugang Head of financial affairs: Wang Hangjun Head of the financial department: Shen Xueying
2. Parent Company Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|1,876,488,522.57|1,754,272,751.45|
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|1,624,838.80|479,462.50|
|Prepayments|581,819.09|496,729.09|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|926,122,800.62|1,128,977,669.02|
|Inventories|303,807,308.60|303,797,408.60|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|85,558.19|85,558.19|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Total current assets|3,108,710,847.87|3,188,109,578.85|
|Non-current assets:|||
|Available-for-sale financial assets|3,821,709.20|3,821,709.20|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|250,332,117.52|250,613,065.89|
|Investment property|332,364,392.93|336,964,573.31|
|Property, plant and equipment|8,027,455.53|8,163,838.55|
|Construction in progress|||
|Engineering materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|||
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|908,124.78|951,368.85|
|Deferred income tax assets|191,734,401.12|191,632,218.83|
|Other non-current assets|||
|Total non-current assets|787,188,201.08|792,146,774.63|
|Total assets|3,895,899,048.95|3,980,256,353.48|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|118,853,607.28|119,489,366.28|
|Advances from customers|4,981,735.00|5,127,871.19|
|Payroll payable|31,190,163.82|34,296,032.66|
|Taxes payable|695,133,603.31|704,897,740.79|
|Interest payable|||
|Dividends payable|29,642.40|29,642.40|
|Other payables|120,113,504.75|206,876,957.12|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Liabilities directly associated with|||
|assets classified as held for sale|||
|Current portion of non-current|||
|liabilities|||
|Other current liabilities|||
|Total current liabilities|970,302,256.56|1,070,717,610.44|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|970,302,256.56|1,070,717,610.44|
|Owners’ equity:|||
|Share capital|595,979,092.00|595,979,092.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Capital reserves|94,057,859.68|94,057,859.68|
|Less: Treasury shares|||
|Other comprehensive income|||
|Specific reserve|||
|Surplus reserves|298,912,759.52|298,912,759.52|
|Retained earnings|1,936,647,081.19|1,920,589,031.84|
|Total owners’ equity|2,925,596,792.39|2,909,538,743.04|
|Total liabilities and owners’ equity|3,895,899,048.95|3,980,256,353.48|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018 3. Consolidated Income Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Operating revenue|544,366,414.09|1,038,683,462.42|
|Including: Sales revenue|544,366,414.09|1,038,683,462.42|
|Interest revenue|||
|Premium revenue|||
|Handling charge and commission|||
|revenue|||
|2. Cost of operating revenue|473,226,448.55|638,345,727.45|
|Including: Cost of sales|465,535,043.55|262,456,401.41|
|Interest expense|||
|Handling charge and commission|||
|expense|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance|||
|contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium expense|||
|Taxes and surtaxes|4,305,000.94|353,425,058.62|
|Selling expense|2,237,799.47|4,952,737.50|
|Administrative expense|20,075,315.46|24,965,424.45|
|Finance costs|-18,926,710.87|-7,220,614.53|
|Asset impairment losses||-233,280.00|
|Add: Gain on changes in fair value (“-”|||
|for loss)|||
|Investment income (“-” for loss)|-280,948.37|869,432.85|
|Including: Share of profit or loss of|||
||-280,948.37|869,432.85|
|joint ventures and associates|||
|Foreign exchange gain (“-” for loss)|||
|Asset disposal income (“-” for loss)|||
|Other income|||
|3. Operating income (“-” for loss)|70,859,017.17|401,207,167.82|
|Add: Non-operating revenue|649,272.29|343,568.06|
|Less: Non-operating expense|92,659.13|40,307.28|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|4. Pretax income (“-” for loss)|71,415,630.33|401,510,428.60|
|Less: Income tax expense|17,958,805.45|99,912,614.24|
|5. Net income (“-” for net loss)|53,456,824.88|301,597,814.36|
|5.1 Net income from continuing|||
||53,456,824.88|300,285,286.76|
|operations (“-” for net loss)|||
|5.2 Net income from discontinued|||
|||1,312,527.60|
|operations (“-” for net loss)|||
|Attributable to owners of Parent|||
||53,456,824.88|301,597,814.36|
|Company|||
|Attributable to non-controlling|||
|interests|||
|6. Other comprehensive income, net of|||
||2,130,029.88|404,893.44|
|tax|||
|Attributable to owners of Parent|||
||2,130,029.88|404,893.44|
|Company|||
|6.1 Items that will not be|||
|reclassified to profit or loss|||
|6.1.1 Changes in net liabilities or|||
|assets caused by remeasurements on|||
|defined benefit pension schemes|||
|6.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified to profit or loss|||
|under equity method|||
|6.2 Items that may subsequently be|||
||2,130,029.88|404,893.44|
|reclassified to profit or loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified to profit or loss under|||
|equity method|||
|6.2.2 Gains/Losses on changes in|||
|fair value of available-for-sale financial|||
|assets|||
|6.2.3 Gains/Losses arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale financial|||
|assets|||
|6.2.4 Effective gains/losses on|||
|cash flow hedges|||
|6.2.5 Differences arising from|||
|translation of foreign|2,130,029.88|404,893.44|
|currency-denominated financial|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|statements|||
|6.2.6 Other|||
|Attributable to non-controllin|g||
|interests|||
|7. Total comprehensive income|55,586,854.76|302,002,707.80|
|Attributable to owners of Paren|t55,586,854.76||
|||302,002,707.80|
|Company|||
|Attributable to non-controllin|g||
|interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|0.0897|0.5061|
|8.2 Diluted earnings per share|0.0897|0.5061|

 Where business mergers under the same control occurred in the current period, the net income 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: Chen Yugang Head of financial affairs: Wang Hangjun Head of the financial department: Shen Xueying
4. Parent Company Income Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Sales revenue|17,488,936.09|924,455,612.46|
|Less: Cost of sales|5,558,855.29|173,111,335.04|
|Taxes and surtaxes|1,066,152.79|352,143,376.92|
|Selling expense|251,069.50|1,470,451.45|
|Administrative expense|6,879,508.35|8,417,991.97|
|Finance costs|-17,920,181.87|-4,158,718.33|
|Asset impairment losses||-72,000.00|
|Add: Gain on changes in fair value(“-” for loss)|||
|Investment income (“-” for loss)|-280,948.37|869,432.85|
|Including: Share of profit or lossof joint ventures and associates|||
||-280,948.37|869,432.85|
|Asset disposal income (“-” forloss)|||
|Other income|||
|2. Operating income (“-” for loss)|21,372,583.66|394,412,608.26|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Add: Non-operating revenue|117,516.67|46,271.17|
|Less: Non-operating expense|9,233.27||
|3. Pretax income (“-” for loss)|21,480,867.06|394,458,879.43|
|Less: Income tax expense|5,422,817.71|97,846,550.68|
|4. Net income (“-” for net loss)|16,058,049.35|296,612,328.75|
|4.1 Net income from continuing|||
||16,058,049.35|296,612,328.75|
|operations (“-” for net loss)|||
|4.2 Net income from discontinued|||
|operations (“-” for net loss)|||
|5. Other comprehensive income, net of|||
|tax|||
|5.1 Items that will not be reclassified|||
|to profit or loss|||
|5.1.1 Changes in net liabilities or|||
|assets caused by remeasurements on|||
|defined benefit pension schemes|||
|5.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified into profit or|||
|loss under equity method|||
|5.2 Items that may subsequently be|||
|reclassified to profit or loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit or loss|||
|under equity method|||
|5.2.2 Gains/Losses on changes in|||
|fair value of available-for-sale financial|||
|assets|||
|5.2.3 Gains/Losses arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale|||
|financial assets|||
|5.2.4 Effective gains/losses on|||
|cash flow hedges|||
|5.2.5 Differences arising from|||
|translation of foreign|||
|currency-denominated financial|||
|statements|||
|5.2.6 Other|||
|6. Total comprehensive income|16,058,049.35|296,612,328.75|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.026|9 0.4977|
|7.2 Diluted earnings per share|0.026|9 0.4977|

 5. Consolidated Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||216,591,435.86|349,690,472.03|
|and rendering of services|||
|Net increase in customer deposits|||
|and deposits from banks and other|||
|financial institutions|||
|Net increase in loans from central|||
|bank|||
|Net increase in loans from other|||
|financial institutions|||
|Premiums received on original|||
|insurance contracts|||
|Net proceeds from reinsurance|||
|Net increase in deposits and|||
|investments of policy holders|||
|Net increase in proceeds from|||
|disposal of financial assets at fair value|||
|through profit or loss|||
|Interest, handling charges and|||
|commissions received|||
|Net increase in interbank loans|||
|obtained|||
|Net increase in proceeds from|||
|repurchase transactions|||
|Tax rebates|||
|Cash generated by other operating|||
||21,197,134.81|9,207,495.35|
|activities|||
|Subtotal of cash generated by operating|||
||237,788,570.67|358,897,967.38|
|activities|||
|Payments for commodities and|||
||133,596,754.45|183,762,043.08|
|services|||
|Net increase in loans and advances|||
|to customers|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Net increase in deposits in central|||
|bank and in interbank loans granted|||
|Payments for claims on original|||
|insurance contracts|||
|Interest, handling charges and|||
|commissions paid|||
|Policy dividends paid|||
|Cash paid to and for employees|89,960,097.04|78,763,919.26|
|Taxes paid|86,751,844.14|318,142,421.91|
|Cash used in other operating|||
||24,184,810.78|31,204,002.32|
|activities|||
|Subtotal of cash used in operating|||
||334,493,506.41|611,872,386.57|
|activities|||
|Net cash flows from operating|||
||-96,704,935.74|-252,974,419.19|
|activities|||
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|||
|Investment income|||
|Net proceeds from disposal of|||
|property, plant and equipment,|||
||42,563.50|858.00|
|intangible assets and other long-lived|||
|assets|||
|Net proceeds from disposal of|||
||76,797,409.69||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||76,839,973.19|858.00|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets|1,223,761.10|148,720.03|
|and other long-lived assets|||
|Payments for investments|||
|Net increase in pledged loans|||
|granted|||
|Net payments for acquisition of|||
|subsidiaries and other business units|||
|Cash used in other investing|||
|activities|||
|Subtotal of cash used in investing|||
||1,223,761.10|148,720.03|
|activities|||
|Net cash flows from investing activities|75,616,212.09|-147,862.03|

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|3. Cash generated by or used in|||
|financing activities:|||
|Capital contributions received|||
|Including: Capital contributions|||
|by non-controlling interests to|||
|subsidiaries|||
|Increase in borrowings obtained|||
|Net proceeds from issuance of bonds|||
|Cash generated by other financing|||
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|||
|Payments for interest and dividends|||
|Including: Dividends paid by|||
|subsidiaries to non-controlling interests|||
|Cash used in other financing|||
|activities|||
|Subtotal of cash used in financing|||
|activities|||
|Net cash flows from financing|||
|activities|||
|4. Effect of foreign exchange rate|||
||-2,082,768.44|-404,308.32|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||-23,171,492.09|-253,526,589.54|
|equivalents|||
|Add: Cash and cash equivalents,|||
||2,464,626,655.21|2,857,353,056.85|
|beginning of the period|||
|6. Cash and cash equivalents, end of|||
||2,441,455,163.12|2,603,826,467.31|
|the period|||

6. Parent Company Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||16,689,701.35|13,750,591.00|
|and rendering of services|||
|Tax rebates|||
|Cash generated by other operating|||
||69,921,485.88|158,070,365.27|
|activities|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Subtotal of cash generated by operating|||
||86,611,187.23|171,820,956.27|
|activities|||
|Payments for commodities and|||
||1,142,839.51|38,677,218.31|
|services|||
|Cash paid to and for employees|6,911,286.01|3,793,186.99|
|Taxes paid|17,919,486.85|189,151,358.83|
|Cash used in other operating|||
||8,402,019.16|18,405,342.94|
|activities|||
|Subtotal of cash used in operating|||
||34,375,631.53|250,027,107.07|
|activities|||
|Net cash flows from operating|||
||52,235,555.70|-78,206,150.80|
|activities|||
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|||
|Investment income||350,000,000.00|
|Net proceeds from disposal of|||
|property, plant and equipment,|||
||4,563.50||
|intangible assets and other long-lived|||
|assets|||
|Net proceeds from disposal of|||
||70,207,999.92||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||70,212,563.42|350,000,000.00|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets|232,348.00|43,597.99|
|and other long-lived assets|||
|Payments for investments|||
|Net payments for acquisition of|||
|subsidiaries and other business units|||
|Cash used in other investing|||
|activities|||
|Subtotal of cash used in investing|||
||232,348.00|43,597.99|
|activities|||
|Net cash flows from investing activities|69,980,215.42|349,956,402.01|
|3. Cash generated by or used in|||
|financing activities:|||
|Capital contributions received|||
|Increase in borrowings obtained|||

ShenZhen Properties& Resources Development (Group) Ltd. First Quarter Report 2018
||||
|-|-|-|
|Net proceeds from issuance of bonds|||
|Cash generated by other financing|||
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|||
|Payments for interest and dividends|||
|Cash used in other financing|||
|activities|||
|Sub-total of cash used in financing|||
|activities|||
|Net cash flows from financing|||
|activities|||
|4. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||122,215,771.12|271,750,251.21|
|equivalents|||
|Add: Cash and cash equivalents,|||
||1,754,272,751.45|1,566,655,340.88|
|beginning of the period|||
|6. Cash and cash equivalents, end of|||
||1,876,488,522.57|1,838,405,592.09|
|the period|||

II IndependentAuditor’s Report
Indicate by tick mark whether the Q1 financial statements have been audited by an independent auditor.
□Yes√ No
The Q1 financial statements have not been audited by such an auditor.