Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 SHENZHEN PROPERTIES& RESOURCES
DEVELOPMENT (GROUP) LTD.
SEMI-ANNUAL REPORT 2016
16
August 2016
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section I Important Statements, Contents and Terms
The board of directors (the “Board”), the board of supervisors (the “Board of Supervisors”) as well as the directors, supervisors and senior management of Shenzhen Properties& Resources Development (Group) Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of the Report, and shall be jointly and severally liable for any false representation, misleading statements or material omissions in the Report.
All the directors attended the board meeting for the review of the Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
Chen Yugang, head of the Company, Wang Hangjun, accounting head for the Report, and Shen Xueying, head of the accounting organ (head of accounting), hereby guarantee that the Financial Report carried in the Report is factual, accurate and complete.
The Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Contents
Semi-annual Report 2016..................................................................................................................1 Section I Important Statements, Contents and Terms....................................................................2 Section II Corporate Profile..............................................................................................................4 Section III Highlights of Accounting Data and Financial Indicators............................................6 Section IV Report by the Board of Directors..................................................................................8 Section V Significant Events...........................................................................................................17 Section VI Share Changes andShareholders’ Profile...................................................................22 Section VII Preference Shares........................................................................................................26 Section VIII Directors, Supervisors and Senior Management.....................................................27 Section IX Financial Report............................................................................................................28 Section X Documents Available for Reference............................................................................178
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section II Corporate Profile
I Corporate information
|||||
|-|-|-|-|
|Stock name|SZPRD A, SZPRD B|Stock code|000011, 200011|
|Stock exchange|Shenzhen Stock Exchange|||
|Company name in Chinese|深圳市物业发展(集团)股份有限公司|||
|Abbr. (if any)|深物业集团|||
|Company name in English (if||||
||ShenZhen Properties & Resources Development（Group） Ltd.|||
|any)||||
|Abbr. (if any)|SZPRD|||
|Legal representative|Chen Yugang|||

II Contact information
||||
|-|-|-|
||Board Secretary|Securities Representative|
|||Qian Zhong, Huang Fengchun|
|Name|Fan Weiping||
||42/F, International Trade Center, Renmin|42/F, International Trade Center, Renmin|
|Address|South Road, Shenzhen, Guangdong|South Road, Shenzhen, Guangdong|
||Province, P.R.China|Province, P.R.China|
|Tel.|0755-82211020|0755-82211020|
|Fax|0755-82210610 82212043|0755-82210610 82212043|
|E-mail|000011touzizhe@szwuye.com.cn|000011touzizhe@szwuye.com.cn|

III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the Company during the Reporting Period?
□ Applicable√ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
2. About information disclosure and the place where the Report is kept
Did any change occur to information disclosure media and the place where the Report is kept during the Reporting Period?
□ Applicable√ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the Report and the location where the Report is placed did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable√ Not applicable
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section III Highlights of Accounting Data and Financial Indicators I Major accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year due to change in accounting policies or correction of accounting errors
□ Yes√ No
|||||
|-|-|-|-|
||Reporting Period|Same period of last year|+/- (%)|
|Operating revenues (RMB)|372,057,479.96|338,761,310.39|9.83%|
|Net profit attributable to shareholders of|-5,248,704.63|31,162,831.74||
||||-116.84%|
|the Company (RMB)||||
|Net profit attributable to shareholders of||||
||-5,865,281.91|26,946,876.19|-121.77%|
|the Company after excluding exceptional||||
|profit and loss (RMB)||||
|Net cash flows from operating activities|1,509,256,494.79|-221,909,180.93||
||||780.12%|
|(RMB)||||
|Basic earnings per share (RMB/share)|-0.0088|0.0523|-116.83%|
|Diluted earnings per share (RMB/share)|-0.0088|0.0523|-116.83%|
|Weighted average return on equity (%)|-0.25%|1.52%|-1.77%|
||As at the end of the|||
|||As at the end of last year|+/- (%)|
||Reporting Period|||
|Total assets (RMB)|5,910,285,347.18|4,379,763,486.10|34.95%|
|Net assets attributable to shareholders of|2,047,980,551.38|2,099,906,766.61||
||||-2.47%|
|the Company (RMB)||||

II Differences in accounting data under domestic and overseas accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under international and Chinese accounting standards
□ Applicable√ Not applicable
No such differences for the Reporting Period.
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under overseas and Chinese accounting standards
□ Applicable√ Not applicable
No such differences for the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 III Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Note|
|Profit/loss on disposal of non-current assets (including offset|-6,300.00||
|amount of asset impairment provisions)|||
|Impairment provision reversal for accounts receivable on which|11,729.17||
|the impairment test is carried out separately|||
|Non-operating income and expense other than the above|790,677.90||
|Less: Corporate income tax|179,529.79||
|Total|616,577.28|--|

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.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section IV Report by the Board of Directors
I Overview
1. General performance
China’s real estate market continued to heat up in the beginning of 2016 as it did in 2015. In the first quarter of the year, market expectations were great with accommodative policy and credit settings and property transactions went up steadily as a result, but some third-and-fourth-tier cities were still under great pressure of de-stocking. Since the second quarter, in order to prevent over-heat of property prices, Shanghai and Shenzhen has unveiled tightening measures. Meanwhile, some needs have been overdrawn in a market that has been active from the second half of last year. In addition, house prices are high in hotspot cities such as Suzhou and Dongguan. Consequently, the wait-and-see mood is growing in the market. Property sales in Shenzhen dropped slightly from the first quarter, slowing down the growth in the neighboring markets such as Dongguan and Huizhou.
In face of a complex environment, we put our annual targets at the heart of everything we did, strengthened management and implementation, seized opportunities in the market and accelerated progress on our major projects to ensure the achievement of our annual targets. For the first half of the year, we achieved operating revenues of RMB372.06 million.
2. Our real estate business
In the first half of 2016, our main business of real estate generated revenue of RMB101.95 million, up17.32% year on year, mainly because Yangzhou Project Phase I started the move-in in June 2015 and 10,798㎡ was sold in the first half of 2016, while only 1,898㎡ of all of our real estate projects was sold in the same period of last year. Meanwhile, our sidelines such as property leasing, property management and auto transportation maintained steady development.
In the first half of the year, we mainly had three projects on the market, namely, Shenzhen Qianhai Gangwan Garden, Dongguan Songhu Langyuan and Yangzhou Hupan Yujing. Grasping opportunities arising from the radiation of growth from first-tier cities to second-and-third-tier cities, we drew up the best selling prices and strategies through many discussions, and the said three projects all yielded desired sales results. The Shenzhen Qianhai Gangwan Garden project was open for sale at the end of 2015 and had sold 471 units by June 2016, generating revenue of approximately RMB2.168 billion. For our projects outside Shenzhen (Yangzhou, Dongguan, etc.), we strengthened the marketing teams and market research and adopted integrated marketing measures in a timely, effective manner according to the characteristics of and changes in the local markets, which greatly boosted the sales of the projects. Concerning the project in Dongguan, the average price has risen fromRMB6800/㎡ at the beginning of its sale to an amount overRMB10,000/㎡, and 1,166 units have been sold for a sales income of around RMB948 million. As for the project in Yangzhou, 271 units have been sold for about RMB0.4 billion.
3. Progress on our major projects
SZPRD-Hupan Yujing project (in Yangzhou): an investment of RMB63.86 million in the Reporting Period, and accumulative investments at RMB877.20 million. External decoration completed for Building No. 1, 2 and 3, other buildings going through internal and external decoration, and pre-sale license obtained for Building No. 8.
SZPRD-Banshan Yujing project (in Xuzhou): an investment of RMB18.65 million in the Reporting Period, and accumulative investments at RMB612.34 million. General construction and landscaping completed; and except for planning acceptance, other acceptances completed.
SZPRD-Songhu Langyuan project (in Dongguan): an investment of RMB62.87 million in the Reporting Period, and accumulative investments at RMB667.21 million.95% completed for internal and external decoration;85% completed for mechanical and electrical installation; and88% completed for landscaping.
SZPRD-Qianhai Gangwan Garden project: an investment of RMB86.69 million in the Reporting Period, and accumulative
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 investments at RMB563.05 million.91% completed for external decoration and mechanical& electrical installation;79% completed for internal decoration; and44% completed for landscaping.
SZPRD-GoldenCollar’s Holiday project: an investment of RMB19.44 million in the Reporting Period, and accumulative investments at RMB175.56 million. Flooring for basements ongoing; and4% completed for the main structure.
II Analysis of main business
YoY movements in major financial data
Unit: RMB
||||||
|-|-|-|-|-|
|||||Main reason for|
||Reporting Period|Same period of lastyear|YoY +/-%||
|||||movement|
|Operating revenues|372,057,479.96|338,761,310.39|9.83%||
|Operating costs|295,007,821.86|199,054,160.59|48.20%|Increased sold area|
||16,539,759.59|12,658,266.69||Increase in advertising|
|||||expenses and the like for|
|Selling expenses|||30.66%||
|||||strengthening sales|
|||||promotion|
|Administrative expenses|44,572,155.45|48,330,181.70|-7.78%||
||-7,038,438.94|-4,714,375.50||Increase in interest|
|Finance costs|||49.30%||
|||||income|
|Corporate income tax|2,611,980.49|11,362,044.97|-77.01%|Decreased profit|
|Net cash flows from|1,509,256,494.79|-221,909,180.93||Increase in property sales|
||||780.12%||
|operating activities||||income|
||-1,245,993.48|-7,669,730.46||Net outflows decreased|
|||||mainly due to the|
|Net cash flows from|||||
||||-83.75%|decrease in the taxi|
|investing activities|||||
|||||renewal expenses of the|
|||||subsidiary|
|Net cash flows from|-326,276,049.87|-96,151,660.47||Less loans secured and|
||||239.33%||
|financing activities||||more loans repaid|
|Net increase in cash and|1,182,718,159.91|-325,965,954.84||Increase in property sales|
||||462.83%||
|cash equivalents||||income|
|||||Decrease in land VAT|
|||||due to a decreased|
|Business tax and surtaxes|23,744,962.40|46,781,146.09|-49.24%|average gross profit|
|||||margin for projects in|
|||||different cities|
|||||Provision for falling|
|Asset impairment loss|3,810,897.96|357,797.60|965.10%|prices of the|
|||||SZPRD-Hupan Yujing|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
|||||Phase II project in the|
|||||Reporting Period|
|||||Earnings on disposal of|
|||||available-for-sale|
|Return on investment|1,158,576.32|6,767,542.26|-82.88%|financial assets, etc. in|
|||||the same period of last|
|||||year|
|||||Greatly different gross|
|Net profit attributable to|||||
||-5,248,704.63|31,162,831.74|-116.84%|profit margins for|
|owners of the Company|||||
|||||projects in different cities|

 Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Reporting Period progress of the future development planning in the disclosed documents of the Company such as share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Review the progress of the previously disclosed business plan in the Reporting Period:
Not applicable
III Breakdown of main business
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Operating||Gross profit|
||Operating||Gross profit||Operating cost:||
|||Operating cost||revenue: YoY||margin: YoY|
||revenue||margin||YoY +/-%||
|||||+/-%||+/-%|
|By business segment|||||||
|Real estate|||||||
||101,946,400.67|96,718,311.22|5.13%|17.32%|424.24%|-73.64%|
|development|||||||
|Property leasing|37,319,562.60|7,437,378.02|80.07%|5.39%|-11.56%|3.82%|
|Property|||||||
||160,630,495.16|152,040,225.20|5.35%|7.28%|11.65%|-3.71%|
|management|||||||
|Passenger|||||||
||29,370,584.42|16,135,517.42|45.06%|-1.19%|20.45%|-9.87%|
|transportation|||||||
|Catering service|11,632,035.39|9,986,071.96|14.15%|-0.02%|4.66%|-3.84%|
|Others|31,158,401.72|12,690,318.04|59.27%|22.85%|-3.02%|10.87%|
|By product|||||||
|Property for sale|101,946,400.67|96,718,311.22|5.13%|17.32%|424.24%|-73.64%|
|Property for|37,319,562.60|7,437,378.02|80.07%|5.39%|-11.56%|3.82%|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|leasing|||||||
|Property|||||||
|management|160,630,495.16|152,040,225.20|5.35%|7.28%|11.65%|-3.71%|
|service|||||||
|Passenger|||||||
|transportation|29,370,584.42|16,135,517.42|45.06%|-1.19%|20.45%|-9.87%|
|service|||||||
|Catering service|11,632,035.39|9,986,071.96|14.15%|-0.02%|4.66%|-3.84%|
|Others|31,158,401.72|12,690,318.04|59.27%|22.85%|-3.02%|10.87%|
|By geographical segment|||||||
|Shenzhen|164,781,760.26|101,558,442.04|38.37%|-34.50%|-18.63%|-12.02%|
|Outside Shenzhen|207,275,719.70|193,449,379.82|6.67%|137.76%|160.58%|-8.17%|

 IV Core competitiveness analysis
Shenzhen has enjoyed a booming real estate market since 2015. Our finances are in good shape for our SZPRD-Qianhai Gangwan Garden and SZPRD-Songhu Langyuan projects, respectively located in Shenzhen and Dongguan, have yielded more economic benefits than expected and our SZPRD-Hupan Yujing project in Yangzhou is selling well. We also have the SZPRD-GoldenCollar’s Holiday project under construction in the core of Shenzhen, which together with the aforesaid projects would generate considerable revenue over RMB10 billion, laying a solid foundation for our subsequent growth. Meanwhile, upon years of experience in developing local and non-local real estate projects, as well as the formulation and implementation of new mechanisms and rules, our real estate development and management capability keeps improving. In addition, as for our sidelines of property management, taxi service, etc., we also keep reforming the businesses, introducing new thinking in operation and increasing our competitiveness. V Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(2) Equity-holdings in financial enterprises
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(3) Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (4) Shareholdings in other listed companies
√ Applicable□ Not applicable
Our shareholdings in other listed companies:
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||Change in|||
|||Initial|||Profit/loss in|owner’s equity|||
||||Shareholding|Closing book||||Stock|
|Stock code|Stock name|investment|||the Reporting|in the|Accounting title||
||||(share)|value (RMB)||||source|
|||cost (RMB)|||Period (RMB)|Reporting|||
|||||||Period|||

400016 Gintian A
3,103,315.60 1,484,840 3,103,315.60 Available-for-sale Obtained in financial asset debt restructuring 420016 Gintian B
465,105.68 447,217 465,105.68 Available-for-sale Obtained in financial asset debt restructuring
|||||||
|-|-|-|-|-|-|
|Total|3,568,421.28|-|3,568,421.28|0.00|0.00|

2. Cash management entrustment, derivative financial instrument investments and entrusted loans
(1) Cash management entrustment
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(2) Derivative financial instrument investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(3) Entrusted loans
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. Use of raised funds
□ Applicable√ Not applicable
No such cases in the Reporting Period.
4. Main controlled and joint stock companies
√ Applicable□ Not applicable
Main controlled and joint stock companies:
Unit: RMB
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Rela|||||||||
||tions|||||||||
||||Main|||||||
||hip|||Registered|||Operating|Operating||
|Company name||Industry|||Total assets|Net assets|||Net profit|
||with||products/servic|||||||
|||||capital|||revenues|profit||
||the||es|||||||
||Com|||||||||
||pany|||||||||
|Shenzhen|Subs|||||||||
||||Real estate|30,000,000.|1,963,132,9|856,344,90|25,642,977.|-8,098,80||
|Huangcheng Real|idiar|Real estate|||||||-6,145,204.92|
||||development|00|54.43|0.86|21|7.07||
|Estate Co., Ltd.|y|||||||||
|SZPRD Real||||||||||
||Subs|||||||||
|Estate|||Real estate|30,950,000.|98,323,354.|67,392,725.||2,072,912||
||idiar|Real estate|||||218,570.57||1,544,847.97|
|Development Co.,|||development|00|79|48||.66||
||y|||||||||
|Ltd.||||||||||
|Shenzhen||Motor||||||||
||Subs||Motor|||||||
|International||passenger||29,850,000.|455,220,51|228,060,72|22,443,055.|4,935,339||
||idiar||passenger||||||3,757,055.56|
|Trade Center Car||transportat||00|3.00|2.02|29|.98||
||y||transportation|||||||
|Industry Co., Ltd.||ion||||||||
|Shenzhen||||||||||
|International||Property||||||||
||Subs||Property|||||||
|Trade Center||manageme||20,000,000.|290,210,00|95,035,699.|171,889,17|11,003,03||
||idiar||management||||||7,550,678.34|
|Property||nt and||00|7.55|71|9.09|6.04||
||y||and leasing|||||||
|Management Co.,||leasing||||||||
|Ltd.||||||||||
|SZPRD Yangzhou||||||||||
||Subs|||||||||
|Real Estate|||Real estate|50,000,000.|735,538,24|15,844,734.|101,946,40|-7,856,84||
||idiar|Real estate|||||||-7,786,848.07|
|Development Co.,|||development|00|5.82|82|0.67|8.07||
||y|||||||||
|Ltd.||||||||||
|Dongguan ITC||||||||||
|Changsheng Real|Subs|||||||||
||||Real estate|20,000,000.|1,543,892,2|-12,292,345||-1,314,03||
|Estate|idiar|Real estate|||||0.00||-888,645.87|
||||development|00|37.63|.66||4.98||
|Development Co.,|y|||||||||
|Ltd.||||||||||
|SZPRD Xuzhou||||||||||
|Dapeng Real|Subs|||||||||
||||Real estate|50,000,000.|517,637,35|-94,316,036||-1,270,77||
|Estate|idiar|Real estate|||||0.00||-1,270,779.03|
||||development|00|7.11|.67||9.03||
|Development Co.,|y|||||||||
|Ltd.||||||||||

5. Significant projects invested with non-raised funds
√ Applicable□ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Unit: RMB'0,000
|||||||||
|-|-|-|-|-|-|-|-|
|||Investment inthe ReportingPeriod|Cumulative|||||
||||||||Index to|
||Total planned||actual|Project|Project|Disclosure date|disclosed|
|Project name||||||||
||||investment up|||||
|||||||(if any)|information (if|
||investment|||progress|earnings|||
||||to the|||||
||||||||any)|
||||period-end|||||
|SZPRD-Hupan||||||||
|Yujing Phase I|108,913|6,386|87,720|||||
|and II||||||||
|SZPRD-Bansh||||||||
|an Yujing|84,000|1,865|61,234|||||
|Phase I and II||||||||
|SZPRD-Songh||||||||
||89,523|6,287|66,721|||||
|u Langyuan||||||||
|SZPRD-Qianh||||||||
|ai Gangwan|79,920|8,669|56,305|||||
|Garden||||||||
|SZPRD-Golde||||||||
|n Collar’s|152,140|1,944|17,556|||||
|Holiday||||||||
|Total|514,496|25,151|289,536|--|--|--|--|

 VI Performance forecast for January-September 2016
Warning of possible loss or considerable YoY movement in the accumulated net profit made during the period-beginning to the end of the next Reporting Period, as well as the reasons
√ Applicable□ Not applicable
Forecast: Considerable decrease at the same direction
Type of the forecast data: exact data
||||||
|-|-|-|-|-|
|||January-Septe|||
||January-September 2016||+/- (%)||
|||mber 2015|||
|Forecast accumulative netprofit (RMB'0,000)|||||
||-900|4,646|Down|-119.37%|
|Basic earnings per share(RMB/share)|||||
||-0.0151|0.0779|Down|-119.37%|
||Reason for the forecast considerable fluctuation of our business results: The average gross profit||||
||margin for all our sold projects in different cities would decrease considerably on a year-on-year||||
|Notes to the forecast|basis. The forecast above is just a preliminary estimate we provide according to the current sales of||||
|J|our real estate projects. Investors are kindly reminded to note that our actual earnings for||||
||anuary-September 2016 shall be subject to the data to be disclosed in our report on the third quarter||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||
|-|
|of 2016.|

VII Explanation of the Board of Directors and the Board of Supervisors on the “non-standard”auditor’s report issued by the CPAs firm for the Reporting Period
□Applicable√ Not applicable
VIII Explanation of the Board of Directors on the issues mentioned in the “non-standard”auditor’s report issued by the CPAs firm for last year
□Applicable√ Not applicable
IX Profit distribution in the Reporting Period
Profit distribution plan implemented in the Reporting Period, especially execution and adjustment of any cash dividend plan and any plan for converting capital reserve into share capital
√ Applicable□ Not applicable
On 22 April 2016, the Plan for Profit Distribution 2015 was considered and approved at the 2015 Annual General Meeting. The implementation plan was disclosed on 16 May 2016. According to the said plan, with 23 May 2016 as the book closure day, we entrusted the Shenzhen branch of China Securities Depository and Clearing Co., Ltd. to transfer the cash dividends for our A-shareholders to their capital accounts through their custodian securities companies (or other custodian entities) on 24 May 2016, and to transfer the cash dividends for our B-shareholders to their capital accounts through their custodian securities companies or custodian banks on 26 May 2016.
For the detailed implementation plan, please refer to the Announcement No. 2016-14 on Implementation of the Plan for Profit Distribution 2015 disclosed on Securities Times, Ta Kung Pao and http//www.cninfo.com.cn dated 16 May 2016.
|||
|-|-|
|Special statement about the cash dividend policy||
|In compliance with the Company’s Articles of||
||Yes|
|Association and the resolution of the general meeting||
|Specific and clear dividend standard and ratio|Yes|
|Complete decision-making procedure and mechanism|Yes|
|Independent directors fulfilled their responsibilities and||
||Yes|
|played their due role.||
|Minority shareholders have the chance to fully express||
|their opinion and desire and their legal rights and|Yes|
|interests were fully protected.||
|In adjustment or alteration of the cash dividend policy,||
|the conditions and procedure were in compliance with|N/A|
|regulations and transparent.||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 X Preliminary plan for profit distribution and converting capital reserve into share capital for the Reporting Period
□ Applicable√ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital for the first half of the year.
XI Visits paid to the Company for purposes of research, communication, interview, etc.√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|Date of visit|Place of meeting|Way of visit|Type of visitor|Visitor|materials provided by the|
||||||Company|
||Office of the||||Implementation dates for|
|2016-04-15||By phone|Individual|Investor||
||Company||||profit distribution|
||||||Sales status of our|
||Office of the|||||
|2016-05-25||By phone|Individual|Investor|SZPRD-Qianhai Gangwan|
||Company|||||
||||||Garden project|
||||||When the SZPRD-Golden|
||Office of the|||||
|2016-06-13||By phone|Individual|Investor|Collar’s Holiday project|
||Company|||||
||||||would be open for sale, etc.|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section V Significant Events
I. Corporate governance
There is not discrepancy between the corporate governance and Company Law, relevant regulations of CSRC.
II. Lawsuits or arbitrations
Significant lawsuits or arbitrations
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Other lawsuits or arbitrations
□ Applicable√ Not applicable
III.Media’s queries
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV. Bankruptcy and reorganization
□ Applicable√ Not applicable
Bankruptcy and reorganization did not occur to the Company in the Reporting Period.
V. Asset transactions
1. Purchase of assets
□ Applicable√ Not applicable
No such cases in the Reporting Period.
2. Sale of assets
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. Business combination
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 VI. Implementation of equity incentive and its influence
□ Applicable√ Not applicable
The Company did not make or carry out any equity incentive plan during the Reporting Period.
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
□ Applicable√ Not applicable
No such cases in the Reporting Period.
2. Related-party transactions arising from asset acquisition or sale
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. Significant related-party transactions arising from joint investment in external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
4. Credits and liabilities with related parties
√ Applicable□ Not applicable
Was there any credit or liability with any related party for non-operating purpose?
√ Yes□ No
The credits and liabilities with relatedparties’ receivable:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Newly|||||
|||||||Amount||||
||||||increase|||Interest in||
||||Non-operati|Opening||received in|||Closing|
||||||amount in|||Reporting||
|Related|||ng capital|balance||Reporting|||balance|
||Relationship|Reason|||Reporting||Rate|Period||
|party|||occupation|(RMB’0,00||Period|||(RMB’0,00|
||||||Period|||(RMB’0,00||
||||or not?|0)||(RMB’0,000|||0)|
||||||(RMB’0,000|||0)||
|||||||)||||
||||||)|||||
|Anhui|The|||||||||
|Nanpeng|Company|Working||||||||
||||No|805|||||831|
|Papermakin|held a 30%|funds||||||||
|g Co., Ltd|stake in it.|||||||||
|Shenzhen|The|||||||||
|||Working||||||||
|Wufang|Company||No|175|||||175|
|||funds||||||||
|Pottery &|held a 26%|||||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|Porcelain|stake in it.|||||
|IndustrialCo., Ltd||||||
|ShenzhenGuest HouseCo., Ltd.t|Under the|||||
||same control|||||
||of the parent|Intra-Grou||||
||||No|91|91|
||company of|p funds||||
||he|||||
||Company|||||
|Influence of the credits||||||
|and liabilities with related||||||
|||All under the risk control of the Company and will not affect the Company’s operating results and||||
|parties on the Company’s||||||
|||financial situation||||
|operating results and||||||
|financial situation||||||

The credits and liabilities with relatedparties’ payable:
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Newly|||||
||||||Amount||||
|||||increase|||Interest in||
||||Opening||returned in|||Closing|
|||||amount in|||Reporting||
|Related party|Relationship|Reason|balance||Reporting|Rate||balance|
|||||Reporting|||Period||
||||(RMB’0,000)||Period|||(RMB’0,000)|
|||||Period|||(RMB’0,000)||
||||||(RMB’0,000)||||
|||||(RMB’0,000)|||||
|SZPRD Jifa|Joint venture||||||||
|||Intra-Group|||||||
|Warehouse|of the||2,630|||||2,630|
|||funds|||||||
|Co., Ltd|Company||||||||
|Shenzhen|||||||||
|Tian’an|||||||||
|International|Joint venture||||||||
|||Intra-Group|||||||
|Building|of the||521|||||521|
|||funds|||||||
|Property|Company||||||||
|Management|||||||||
|Co., Ltd|||||||||
|Influence of the credits and|||||||||
|liabilities with related parties|||||||||
|||All under the risk control of the Company and will not affect the Company’s operating results and|||||||
|on the Company’s operating|||||||||
|||financial situation|||||||
|results and financial|||||||||
|situation|||||||||

5. Other significant related-party transactions
□ Applicable√ Not applicable
No other significant related-party transactions occurred to the Company during the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 VIII. Particulars about the non-operating occupation of funds by the controlling shareholder and other related parties of the Company
□ Applicable√ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties during the Reporting Period.
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable√ Not applicable
There was no any trusteeship of the Company in the Reporting Period.
(2) Contract
□ Applicable√ Not applicable
There was no any contract of the Company in the Reporting Period.
(3) Lease
□ Applicable√ Not applicable
There was no any lease of the Company in the Reporting Period.
2. Guarantees provided by the Company
□ Applicable√ Not applicable
There was no any guarantee provided by the Company in the Reporting Period.
3. Other significant contracts
□ Applicable√ Not applicable
No such cases in the Reporting Period.
4. Other significant transactions
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 X. Commitments made by the Company or any shareholder holding over5% of theCompany’s shares in the Reporting Period or such commitments carried down into the Reporting Period
□ Applicable√ Not applicable
No such commitments in the Reporting Period.
XI. Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited?
□ Yes√ No
The semi-annual financial report had not been audited.
XII. Punishments and rectifications
□ Applicable√ Not applicable
No punishments or rectifications in the Reporting Period.
XIII. Delisting risk due to violation of any law or regulation
□ Applicable√ Not applicable
No such risk in the Reporting Period.
XIV. Other significant events
□ Applicable√ Not applicable
No other significant event in the Reporting Period that needs to be explained.
XV. Related situation of the corporate bonds
Whether there was any public issuance of the corporate bonds which listed on the securities exchange that had not due on the approved presentation date of the half-annual report or failed to pay in full amount.
No
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section VI Share Changes andShareholders’ Profile
I. Change in shares
Reasons for changes in shares
□ Applicable√ Not applicable
Approval of share changes
□ Applicable√ Not applicable
Transfer of share ownership
□ Applicable√ Not applicable
Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the Company and other financial indexes over the last year and the last Reporting Period
□ Applicable√ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable√ Not applicable
Change of the total shares, shareholder structure, asset structure and liability structure
□ Applicable√ Not applicable
II. Total number of shareholders and their shareholdings
Unit: Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Total number of preferred share|||||
|Total number of common||||||holders who had resumed their|||||
|shareholders at the end of the||44,723||||voting right at the end of the|||0||
|Reporting Period||||||Reporting Period (if any) (see|||||
|||||||note 8)|||||
|Shareholdings of common shareholders holding more than 5% shares or top 10 common shareholders|||||||||||
|||||Number|||||Pledged or frozen shares||
|||||of|Increase/de||Number||||
||||Shareholdin|common|crease of||of|Number of|||
|Name of|Nature of||g|shares|shares||restricted|non-restrict|||
||||||||||Status of||
|shareholder|shareholder||percentage|held at the|during the||common|ed common||Number of shares|
||||||||||shares||
||||(%)|end of the|Reporting||shares|shares held|||
|||||Reporting|Period||held||||
|||||Period|||||||
|SHENZHENCONSTRUCTIONINVESTMENTHOLDINGS|State-ownedcorporation||54.33%|323,796,324|||293,997,370|29,798,954|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|CORPORATION|||||||
|SHENZHENINVESTMENTMANAGEMENTCORPORATION|State-ownedcorporation|9.49%|56,582,573|56,582,573|||
|ZHOU QUN|Domesticindividual|0.44%|2,638,150||||
|DU XINYE|Domesticindividual|0.43%|2,525,800||||
|DU YUNFENG|Domesticindividual|0.40%|2,283,800||||
|SHENZHENDUTY-FREECOMMODITYENTERPRISESCO., LTD.|Domesticnon-state-ownedcorporation|0.29%|1,730,300|1,730,300|||
|MAI FURONG|Foreign individual|0.27%|1,514,600||||
|SHENZHENSONGKAIEQUIPMENTCO., LTD.|Domesticnon-state-ownedcorporation|0.22%|1,315,500||||
|YANGYAOCHU|Domesticindividual|0.21%|1,270,620||||
|CHEN LIYING|Domesticindividual|0.18%|1,076,051||||
|Explanation on associated||The first and second biggest shareholders of the Company are under Shenzhen Investment|||||
|relationship or/and persons acting in||Holding Corporation, the actual controlling shareholder of the Company. Other than that, it is|||||
|concert among the above-mentioned||unknown whether the remaining 8 shareholders are related parties or act-in-concert partiesor|||||
|shareholders:||not.|||||
|Shareholdings of the top ten common shareholders holding non-restricted shares|||||||
|||Number of non-restricted common shares held at the|||Type of shares||
|Name of shareholder|||||||
|||period-end|||Type|Number|
|SHENZHEN CONSTRUCTIONINVESTMENT HOLDINGSCORPORATION||29,798,954|||RMB ordinaryshare||
|||||||29,798,954|
|ZHOU QUN||2,638,150|||RMB ordinaryshare||
|||||||2,638,150|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|DU XINYE|2,525,800|RMB ordinary||
||||2,525,800|
|||share||
|DU YUNFENG|2,283,800|RMB ordinary||
||||2,283,800|
|||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|1,270,620|Domestically||
|||listed foreign|1,270,620|
|||share||
|CHEN LIYING|1,076,051|Domestically||
|||listed foreign|1,076,051|
|||share||
|CAO YIFAN|830,000|Domestically||
|||listed foreign|830,000|
|||share||
|ZHANG SHAOMING|737,700|RMB ordinary||
||||737,700|
|||share||
|Explanation on associated||||
|relationship or/and persons acting in||||
|concert among the top ten|The first and second biggest shareholders of the Company are under Shenzhen Investment|||
|non-restricted common shareholders|Holding Corporation, the actual controlling shareholder of the Company. Other than that, it is|||
|and between the top ten|unknown whether the remaining 8 shareholders are related parties or act-in-concert partiesor|||
|non-restricted common shareholders|not.|||
|and the top ten common||||
|shareholders||||
|Particular about shareholder||||
|participate in the securities lending||||
||Zhou Qun, Du Xinye and Du Yunfeng hold the shares in their credit accounts.|||
|and borrowing business (if any)||||
|(note 4)||||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company conduct any promissory repo during the Reporting Period?
□ Yea√ No
No such cases in the Reporting Period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable√ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 The controlling shareholder of the Company did not change in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable√ Not applicable
The actual controller of the Company did not change in the Reporting Period.
IV. Any shareholding increase plan proposed or implemented by any shareholder or its act-in-concert party during the Reporting Period
□ Applicable√ Not applicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any shareholding increase plan during the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section VII Preference Shares
□ Applicable√ Not applicable
No preference shares in the Reporting Period.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section VIII Directors, Supervisors& Senior Management Staff I. Change of shareholdings of Directors, Supervisors and Senior Management Staff
□ Applicable√ Not applicable
There was no change in the shareholdings of Directors, Supervisors and Senior Management Staff in the Reporting Period. For details, please refer to the 2015 Annual Report.
II. Change of Directors, Supervisors and Senior Management Staff
□ Applicable√ Not applicable
There was no change of the Directors, Supervisors and Senior Management Staff. For details, please refer to the 2015 Annual Report.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section IX Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes√ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by Shenzhen Properties& Resources Development (Group) Ltd.
30 June 2016
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|2,128,458,135.68|945,739,975.77|
|Settlement reserves|||
|Intra-group lendings|||
|Financial assets measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|40,962,133.32|38,772,146.41|
|Accounts paid in advance|193,415,543.75|28,415,733.43|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|13,724,081.63|11,619,503.47|
|Financial assets purchased under|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|agreements to resell|||
|Inventories|2,602,147,091.53|2,466,342,278.85|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|174,382,120.00|174,382,120.00|
|Total current assets|5,153,089,105.91|3,665,271,757.93|
|Non-current assets:|||
|Loans by mandate and advances|||
|granted|||
|Available-for-sale financial assets|18,068,421.28|14,500,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|35,684,753.73|34,526,177.41|
|Investing real estate|229,265,743.99|237,260,788.82|
|Fixed assets|78,626,061.41|85,929,516.37|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|89,063,832.47|92,640,083.99|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|1,760,556.59|2,024,722.07|
|Deferred income tax assets|297,451,802.80|240,335,370.51|
|Other non-current assets|7,275,069.00|7,275,069.00|
|Total of non-current assets|757,196,241.27|714,491,728.17|
|Total assets|5,910,285,347.18|4,379,763,486.10|
|Current liabilities:|||
|Short-term borrowings||8,000,000.00|
|Borrowings from the Central Bank|||
|Customer bank deposits and due to|||
|banks and other financial institutions|||
|Intra-group borrowings|||
|Financial liabilities measured at fair|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|value of which changes are recorded in|||
|current profits and losses|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|183,713,716.76|191,524,938.54|
|Accounts received in advance|2,606,286,303.68|652,369,778.20|
|Financial assets sold and repurchased|||
|Handling charges and commissions|||
|payable|||
|Payroll payable|50,688,216.71|63,791,816.49|
|Tax payable|753,528,090.51|833,797,372.43|
|Interest payable||479,413.09|
|Dividend payable|||
|Other accounts payable|131,817,842.77|128,243,079.68|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of|||
|securities|||
|Payables for acting underwriting of|||
|securities|||
|Liabilities held for sale|||
|Non-current liabilities due within 1|||
|||121,243,352.00|
|year|||
|Other current liabilities|||
|Total current liabilities|3,726,034,170.43|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 payables|||
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|834,999.50|834,999.50|
|Deferred income|17,726,018.23|19,072,625.05|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Deferred income tax liabilities|19,014.31|23,985.24|
|Other non-current liabilities|116,828,506.27|114,773,265.38|
|Total non-current liabilities|135,408,538.31|279,544,882.00|
|Total liabilities|3,861,442,708.74|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 reserves|119,951,533.93|119,951,533.93|
|Less: Treasury stock|||
|Other comprehensive income|-3,045,786.70|-4,046,603.46|
|Specific reserves|||
|Surplus reserves|154,664,631.59|154,664,631.59|
|Provisions for general risks|||
|Retained profits|1,180,431,080.56|1,233,358,112.55|
|Total equity attributable to owners of|||
||2,047,980,551.38|2,099,906,766.61|
|the Company|||
|Minority interests|862,087.06|862,087.06|
|Total owners’ equity|2,048,842,638.44|2,100,768,853.67|
|Total liabilities and owners’ equity|5,910,285,347.18|4,379,763,486.10|

 Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|916,436,536.69|296,196,656.86|
|Financial assets measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||
|Derivative financial assets|||
|Notes receivable|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Accounts receivable|3,604,627.14|979,569.49|
|Accounts paid in advance|109,881,588.42||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|1,643,273,514.29|1,766,392,354.21|
|Inventories|616,590,937.34|530,588,344.24|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|174,382,120.00|174,382,120.00|
|Total current assets|3,464,169,323.88|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|||
|Long-term equity investment|282,242,014.71|281,083,438.39|
|Investing real estate|151,881,941.45|157,390,561.34|
|Fixed assets|9,233,472.73|9,828,388.19|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|||
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|1,210,833.27|1,297,321.41|
|Deferred income tax assets|87,653,476.09|29,561,006.63|
|Other non-current assets|||
|Total of non-current assets|536,020,659.53|479,391,215.96|
|Total assets|4,000,189,983.41|3,247,930,260.76|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured at fair|||
|value of which changes are recorded in|||
|current profits and losses|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|27,046,212.13|25,436,021.13|
|Accounts received in advance|1,650,908,603.85|311,717,646.30|
|Payroll payable|9,309,755.32|11,467,533.06|
|Tax payable|57,873,161.20|62,939,128.44|
|Interest payable||858,385.21|
|Dividend payable|||
|Other accounts payable|1,029,986,543.89|1,163,240,004.88|
|Liabilities held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|2,775,124,276.39|1,575,658,719.02|
|Non-current liabilities:|||
|Long-term borrowings||404,840,006.83|
|Bonds payable|||
|Of which: preference shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payables|||
|Specific payables|||
|Estimated liabilities|834,999.50|834,999.50|
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|834,999.50|405,675,006.33|
|Total liabilities|2,775,959,275.89|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 reserves|94,057,859.68|94,057,859.68|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Less: Treasury stock|||
|Other comprehensive income|||
|Specific reserves|||
|Surplus reserves|154,007,821.15|154,007,821.15|
|Retained profits|380,185,934.69|422,551,762.58|
|Total owners’ equity|1,224,230,707.52|1,266,596,535.41|
|Total liabilities and owners’ equity|4,000,189,983.41|3,247,930,260.76|

 3. Consolidated income statement
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|I. Operating revenues|372,057,479.96|338,761,310.39|
|Including: Sales income|372,057,479.96|338,761,310.39|
|Interest income|||
|Premium income|||
|Handling charge and commission|||
|income|||
|II. Operating costs|376,637,158.32|302,467,177.17|
|Including: Cost of sales|295,007,821.86|199,054,160.59|
|Interest expenses|||
|Handling charge and commission|||
|expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the|||
|insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|23,744,962.40|46,781,146.09|
|Selling and distribution expenses|16,539,759.59|12,658,266.69|
|Administrative expenses|44,572,155.45|48,330,181.70|
|Financial expenses|-7,038,438.94|-4,714,375.50|
|Asset impairment loss|3,810,897.96|357,797.60|
|Add: Gain/(loss) from change in fair|||
|value (“-” means loss)|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Gain/(loss) from investment (“-”|||
||1,158,576.32|6,767,542.26|
|means loss)|||
|Including: share of profits in|||
||1,158,576.32|666,409.17|
|associates and joint ventures|||
|Foreign exchange gains (“-” means|||
|loss)|||
|III. Business profit (“-” means loss)|-3,421,102.04|43,061,675.48|
|Add: non-operating income|1,083,100.40|561,079.38|
|Including: Gains on disposal of|||
|non-current assets|||
|Less: non-operating expense|298,722.50|1,097,878.15|
|Including: Losses on disposal of|||
||6,300.00|426,921.60|
|non-current assets|||
|IV. Total profit (“-” means loss)|-2,636,724.14|42,524,876.71|
|Less: Income tax expense|2,611,980.49|11,362,044.97|
|V. Net profit (“-” means loss)|-5,248,704.63|31,162,831.74|
|Net profit attributable to owners of|||
||-5,248,704.63|31,162,831.74|
|the Company|||
|Minority shareholders’ income|||
|VI. After-tax net amount of other|||
||1,000,816.76|-2,950,901.16|
|comprehensive incomes|||
|After-tax net amount of other|||
|comprehensive incomes attributable to|1,000,816.76|-2,950,901.16|
|owners of the Company|||
|(I) Other comprehensive incomes|||
|that will not be reclassified into gains and|||
|losses|||
|1. Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|2. Enjoyable shares in other|||
|comprehensive incomes in investees that|||
|cannot be reclassified into gains and|||
|losses under the equity method|||
|(II) Other comprehensive incomes|||
|that will be reclassified into gains and|1,000,816.76|-2,950,901.16|
|losses|||
|1. Enjoyable shares in other|||
|comprehensive incomes in investees that|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|will be reclassified into gains and losses|||
|under the equity method|||
|2. Gains and losses on fair|||
|value changes of available-for-sale||-2,933,175.45|
|financial assets|||
|3. Gains and losses on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|4. Effective hedging gains and|||
|losses on cash flows|||
|5. Foreign-currency financial|||
||1,000,816.76|-17,725.71|
|statement translation difference|||
|6. Other|||
|After-tax net amount of other|||
|comprehensive incomes attributable to|||
|minority shareholders|||
|VII. Total comprehensive incomes|-4,247,887.87|28,211,930.58|
|Attributable to owners of the|||
||-4,247,887.87|28,211,930.58|
|Company|||
|Attributable to minority|||
|shareholders|||
|VIII. Earnings per share|||
|(I) Basic earnings per share|-0.0088|0.0523|
|(II) Diluted earnings per share|-0.0088|0.0523|

 Where business mergers under the same control occurred in this 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.
Legal representative: Chen Yugang Person-in-charge of the accounting work: Wang Hangjun
Chief of the accounting division: Shen Xueying
4. Income statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|I. Total sales|32,157,014.88|29,852,953.97|
|Less: cost of sales|7,594,195.01|8,215,152.66|
|Business taxes and surcharges|2,899,233.08|4,150,101.48|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Distribution expenses|6,136,543.02||
|Administrative expenses|14,880,235.70|19,815,940.03|
|Financial costs|-4,131,129.54|-2,306,571.44|
|Impairment loss|-1,191,328.44|-616,823.91|
|Add: gain/(loss) from change in fair|||
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||1,158,576.32|6,600,847.72|
|means loss)|||
|Including: income form investment|||
||1,158,576.32|666,409.17|
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|7,127,842.37|7,196,002.87|
|Add: non-operating income|437,769.89|15,814.45|
|Including: Gains on disposal of|||
|non-current assets|||
|Less: non-operating expense|19,444.98|466,563.12|
|Including: Losses on disposal of|||
|||82,007.63|
|non-current assets|||
|III. Total profit (“-” means loss)|7,546,167.28|6,745,254.20|
|Less: Income tax expense|2,233,667.81|1,373,908.21|
|IV. Net profit (“-” means loss)|5,312,499.47|5,371,345.99|
|V. After-tax net amount of other|||
|||-2,933,175.45|
|comprehensive incomes|||
|(I) Other comprehensive incomes that|||
|will not be reclassified into gains and|||
|losses|||
|1. Changes in net liabilities or|||
|assets with a defined benefit plan upon|||
|re-measurement|||
|2. Enjoyable shares in other|||
|comprehensive incomes in investees|||
|that cannot be reclassified into gains|||
|and losses under the equity method|||
|(II) Other comprehensive incomes|||
|that will be reclassified into gains and||-2,933,175.45|
|losses|||
|1. Enjoyable shares in other|||
|comprehensive incomes in investees|||
|that will be reclassified into gains and|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|losses under the equity method|||
|2. Gains and losses on fair value|||
|changes of available-for-sale financial||-2,933,175.45|
|assets|||
|3. Gains and losses on|||
|reclassifying held-to-maturity|||
|investments into available-for-sale|||
|financial assets|||
|4. Effective hedging gains and|||
|losses on cash flows|||
|5. Foreign-currency financial|||
|statement translation difference|||
|6. Other|||
|VI. Total comprehensive incomes|5,312,499.47|2,438,170.54|
|VII. Earnings per share|||
|(I) Basic earnings per share|0.0089|0.0090|
|(II) Diluted earnings per share|0.0089|0.0090|

 5. Consolidated cash flow statement
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||2,343,478,998.38|460,272,796.97|
|commodities and rendering of service|||
|Net increase of deposits from|||
|customers and dues from banks|||
|Net increase of loans from the central|||
|bank|||
|Net increase of funds borrowed from|||
|other financial institutions|||
|Cash received from premium of|||
|original insurance contracts|||
|Net cash received from reinsurance|||
|business|||
|Net increase of deposits of policy|||
|holders and investment fund|||
|Net increase of disposal of financial|||
|assets measured at fair value of which|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|changes are recorded into current gains|||
|and losses|||
|Cash received from interest, handling|||
|charges and commissions|||
|Net increase of intra-group|||
|borrowings|||
|Net increase of funds in repurchase|||
|business|||
|Tax refunds received|||
|Other cash received relating to|||
||21,560,365.45|8,644,723.51|
|operating activities|||
|Subtotal of cash inflows from operating|||
||2,365,039,363.83|468,917,520.48|
|activities|||
|Cash paid for goods and services|310,221,091.98|279,997,430.62|
|Net increase of customer lendings|||
|and advances|||
|Net increase of funds deposited in the|||
|central bank and amount due from|||
|banks|||
|Cash for paying claims of the original|||
|insurance contracts|||
|Cash for paying interest, handling|||
|charges and commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|171,546,331.67|160,964,525.60|
|Various taxes paid|336,887,702.10|205,830,929.07|
|Other cash payment relating to|||
||37,127,743.29|44,033,816.12|
|operating activities|||
|Subtotal of cash outflows from|||
||855,782,869.04|690,826,701.41|
|operating activities|||
|Net cash flows from operating activities|1,509,256,494.79|-221,909,180.93|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
|||6,511,297.75|
|investments|||
|Cash received from return on|||
|||580,374.89|
|investments|||
|Net cash received from disposal of|||
||132,000.00|605,705.00|
|fixed assets, intangible assets and other|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
||132,000.00|7,697,377.64|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|1,377,993.48|15,367,108.10|
|assets|||
|Cash paid for investment|||
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||1,377,993.48|15,367,108.10|
|investing activities|||
|Net cash flows from investing activities|-1,245,993.48|-7,669,730.46|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|Cash received from borrowings|15,441,282.23|126,303,000.00|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
||15,441,282.23|126,303,000.00|
|activities|||
|Repayment of borrowings|289,524,641.06|85,000,000.00|
|Cash paid for interest expenses and|||
||52,096,691.04|137,350,160.47|
|distribution of dividends or profit|||
|Including: dividends or profit paid|||
|by subsidiaries to minority shareholders|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Other cash payments relating to|||
||96,000.00|104,500.00|
|financing activities|||
|Sub-total of cash outflows from|||
||341,717,332.10|222,454,660.47|
|financing activities|||
|Net cash flows from financing activities|-326,276,049.87|-96,151,660.47|
|IV. Effect of foreign exchange rate|||
||983,708.47|-235,382.98|
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||1,182,718,159.91|-325,965,954.84|
|equivalents|||
|Add: Opening balance of cash and|||
||933,337,815.77|808,963,376.68|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||2,116,055,975.68|482,997,421.84|
|equivalents|||

6. Cash flow statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,367,709,105.57|28,663,455.97|
|commodities and rendering of service|||
|Tax refunds received|||
|Other cash received relating to|||
||396,680,197.27|224,852,837.51|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,764,389,302.84|253,516,293.48|
|activities|||
|Cash paid for goods and services|76,068,523.48|54,228,447.00|
|Cash paid to and for employees|11,613,157.13|10,672,508.89|
|Various taxes paid|180,302,568.05|49,447,323.75|
|Other cash payment relating to|||
||414,343,352.68|269,534,102.88|
|operating activities|||
|Subtotal of cash outflows from|||
||682,327,601.34|383,882,382.52|
|operating activities|||
|Net cash flows from operating activities|1,082,061,701.50|-130,366,089.04|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
|||6,511,297.75|
|investments|||
|Cash received from return on||580,374.89|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other||260.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from investing|||
|||7,091,932.64|
|activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|15,072.00|31,074.00|
|assets|||
|Cash paid for investment|||
|Net cash paid to acquire subsidiaries|||
|and other business units|||
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||15,072.00|31,074.00|
|investing activities|||
|Net cash flows from investing activities|-15,072.00|7,060,858.64|
|III. Cash Flows from Financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Cash received from borrowings|15,441,282.23|58,303,000.00|
|Cash received from issuance of|||
|bonds|||
|Other cash received relating to|||
|financing activities|||
|Subtotal of cash inflows from financing|||
||15,441,282.23|58,303,000.00|
|activities|||
|Repayment of borrowings|422,491,189.06||
|Cash paid for interest expenses and|||
||54,721,045.91|139,703,417.96|
|distribution of dividends or profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|477,212,234.97|139,703,417.96|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|financing activities|||
|Net cash flows from financing activities|-461,770,952.74|-81,400,417.96|
|IV. Effect of foreign exchange ratechanges on cash and cash equivalents|||
||-35,796.93|-217,671.81|
|V. Net increase in cash and cashequivalents|||
||620,239,879.83|-204,923,320.17|
|Add: Opening balance of cash andcash equivalents|||
||296,196,656.86|338,036,109.52|
|VI. Closing balance of cash and cashequivalents|||
||916,436,536.69|133,112,789.35|

7. Consolidated Statement of Changes inOwners’ Equity
Reporting Period
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Reporting Period|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity||||||||||||
||||||||Other|||||Minorit|Total|
|Item||||||||||||||
|||instruments||||Less:||||General||||
||Share||||Capital||compre|Specific|Surplus||Retaine|y|owners’|
|||Prefer|Perpet|||treasury||||risk||||
||capital||||reserve||hensive|reserve|reserve||d profit|interests|equity|
|||ence|ual|Other||stock||||reserve||||
||||||||incomes|||||||
|||shares|bonds|||||||||||
|I. Balance at the|595,97||||||||||1,233,3||2,100,7|
||||||119,951||-4,046,6||154,664|||862,087||
|end of the|9,092.||||||||||58,112.||68,853.|
||||||,533.93||03.46||,631.59|||.06||
|previous year|00||||||||||55||67|
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||
|periods||||||||||||||
|Business||||||||||||||
|mergers under the||||||||||||||
|same control||||||||||||||
|Other||||||||||||||
|II. Balance at the|595,97||||||||||1,233,3||2,100,7|
||||||119,951||-4,046,6||154,664|||862,087||
|beginning of the|9,092.||||||||||58,112.||68,853.|
||||||,533.93||03.46||,631.59|||.06||
|year|00||||||||||55||67|
|III. Increase/|||||||1,000,8||||-52,927,||-51,926,|
|decrease in the|||||||16.76||||031.99||215.23|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|period (“-” means||||
|decrease)||||
|(I) Total||||
||1,000,8|-5,248,7|-4,247,8|
|comprehensive||||
||16.76|04.63|87.87|
|incomes||||
|(II) Capital||||
|increased and||||
|reduced by owners||||
|1. Common||||
|shares increased||||
|by shareholders||||
|2. Capital||||
|increased by||||
|holders of other||||
|equity instruments||||
|3. Amounts||||
|of share-based||||
|payments||||
|recognized in||||
|owners’ equity||||
|4. Other||||
|(III) Profit||-47,678,|-47,678,|
|distribution||327.36|327.36|
|1.||||
|Appropriations to||||
|surplus reserves||||
|2.||||
|Appropriations to||||
|general risk||||
|provisions||||
|3.||||
|Appropriations to||-47,678,|-47,678,|
|owners (or||327.36|327.36|
|shareholders)||||
|4. Other||||
|(IV) Internal||||
|carry-forward of||||
|owners’ equity||||
|1. New||||
|increase of capital||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|(or share capital)||||||||
|from capital public||||||||
|reserves||||||||
|2. New||||||||
|increase of capital||||||||
|(or share capital)||||||||
|from surplus||||||||
|reserves||||||||
|3. Surplus||||||||
|reserves for||||||||
|making up losses||||||||
|4. Other||||||||
|(V) Specific||||||||
|reserve||||||||
|1. Withdrawn||||||||
|for the period||||||||
|2. Used in the||||||||
|period||||||||
|(VI) Other||||||||
||595,97||||1,180,4||2,048,842,638.44|
|IV. Closing||119,951|-3,045,7|154,664||862,087||
||9,092.||||31,080.|||
|balance||,533.93|86.70|,631.59||.06||
||00||||56|||

 Same period of last year
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Same period of last year|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|||Other equity||||||||||Minorit||
||||||||Other||||||Total|
|Item||||||||||||||
|||instruments||||Less:||||General||y||
||Share||||Capital||compre|Specific|Surplus||Retaine||owners’|
|||Prefer|Perpet|||treasury||||risk||interest||
||capital||||reserve||hensive|reserve|reserve||d profit||equity|
|||ence|ual|Other||stock||||reserve||s||
||||||||incomes|||||||
|||shares|bonds|||||||||||
|I. Balance at the|595,97||||||||||1,225,7||2,075,1|
||||||119,951||-4,006,1||136,591|||862,087||
|end of the|9,092.||||||||||26,944.||04,749.|
||||||,533.93||41.53||,232.84|||.06||
|previous year|00||||||||||83||13|
|Add: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of||||||||||||||
|errors in previous||||||||||||||
|periods||||||||||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|Business||||||||
|mergers under the||||||||
|same control||||||||
|Other||||||||
|II. Balance at the|595,97||||1,225,7||2,075,1|
|||119,951|-4,006,1|136,591||862,087||
|beginning of the|9,092.||||26,944.||04,749.|
|||,533.93|41.53|,232.84||.06||
|year|00||||83||13|
|III. Increase/||||||||
||||||||-102,90|
|decrease in the|||-2,950,9||-99,952,|||
||||||||3,469.6|
|period (“-” means|||01.16||568.50|||
||||||||6|
|decrease)||||||||
|(I) Total||||||||
||||-2,950,9||31,162,||28,211,|
|comprehensive||||||||
||||01.16||831.74||930.58|
|incomes||||||||
|(II) Capital||||||||
|increased and||||||||
|reduced by owners||||||||
|1. Common||||||||
|shares increased||||||||
|by shareholders||||||||
|2. Capital||||||||
|increased by||||||||
|holders of other||||||||
|equity instruments||||||||
|3. Amounts||||||||
|of share-based||||||||
|payments||||||||
|recognized in||||||||
|owners’ equity||||||||
|4. Other||||||||
||||||-131,11||-131,11|
|(III) Profit||||||||
||||||5,400.2||5,400.2|
|distribution||||||||
||||||4||4|
|1.||||||||
|Appropriations to||||||||
|surplus reserves||||||||
|2.||||||||
|Appropriations to||||||||
|general risk||||||||
|provisions||||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|3.||||||||
||||||-131,11||-131,11|
|Appropriations to||||||||
||||||5,400.2||5,400.2|
|owners (or||||||||
||||||4||4|
|shareholders)||||||||
|4. Other||||||||
|(IV) Internal||||||||
|carry-forward of||||||||
|owners’ equity||||||||
|1. New||||||||
|increase of capital||||||||
|(or share capital)||||||||
|from capital public||||||||
|reserves||||||||
|2. New||||||||
|increase of capital||||||||
|(or share capital)||||||||
|from surplus||||||||
|reserves||||||||
|3. Surplus||||||||
|reserves for||||||||
|making up losses||||||||
|4. Other||||||||
|(V) Specific||||||||
|reserve||||||||
|1. Withdrawn||||||||
|for the period||||||||
|2. Used in the||||||||
|period||||||||
|(VI) Other||||||||
||595,97||||1,125,7||1,972,2|
|IV. Closing||119,951|-6,957,0|136,591||862,087||
||9,092.||||74,376.||01,279.|
|balance||,533.93|42.69|,232.84||.06||
||00||||33||47|

 8. Statement of changes inowners’ equity of the Company
Reporting Period
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Reporting Period|||||||||||
|Item|Share|Other equity instruments|||Capital|Less:|Other|Specific|Surplus|Retaine|Total|
||capital|Prefere|Perpetu|Other|reserve|treasury|comprehe|reserve|reserve|d profit|owners’|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||nce|al bonds||stock|nsive|||equity|
|||shares||||incomes||||
|I. Balance at the||||||||||
||595,979,|||94,057,85|||154,007,8|422,551|1,266,596|
|end of the previous||||||||||
||092.00|||9.68|||21.15|,762.58|,535.41|
|year||||||||||
|Add: change of||||||||||
|accounting policy||||||||||
|Correction of||||||||||
|errors in previous||||||||||
|periods||||||||||
|Other||||||||||
|II. Balance at the||||||||||
||595,979,|||94,057,85|||154,007,8|422,551|1,266,596|
|beginning of the||||||||||
||092.00|||9.68|||21.15|,762.58|,535.41|
|year||||||||||
|III. Increase/||||||||||
|decrease in the||||||||-42,365,|-42,365,8|
|period (“-” means||||||||827.89|27.89|
|decrease)||||||||||
|(I) Total||||||||||
|||||||||5,312,4|5,312,499|
|comprehensive||||||||||
|||||||||99.47|.47|
|incomes||||||||||
|(II) Capital||||||||||
|increased and||||||||||
|reduced by owners||||||||||
|1. Common||||||||||
|shares increased||||||||||
|by shareholders||||||||||
|2. Capital||||||||||
|increased by||||||||||
|holders of other||||||||||
|equity instruments||||||||||
|3. Amounts||||||||||
|of share-based||||||||||
|payments||||||||||
|recognized in||||||||||
|owners’ equity||||||||||
|4. Other||||||||||
|(III) Profit||||||||-47,678,|-47,678,3|
|distribution||||||||327.36|27.36|
|1.||||||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|Appropriations to||||||
|surplus reserves||||||
|2.||||||
|Appropriations to||||-47,678,|-47,678,3|
|owners (or||||327.36|27.36|
|shareholders)||||||
|3. Other||||||
|(IV) Internal||||||
|carry-forward of||||||
|owners’ equity||||||
|1. New||||||
|increase of capital||||||
|(or share capital)||||||
|from capital public||||||
|reserves||||||
|2. New||||||
|increase of capital||||||
|(or share capital)||||||
|from surplus||||||
|reserves||||||
|3. Surplus||||||
|reserves for||||||
|making up losses||||||
|4. Other||||||
|(V) Specific||||||
|reserve||||||
|1. Withdrawn||||||
|for the period||||||
|2. Used in the||||||
|period||||||
|(VI) Other||||||
|IV. Closing|595,979,|94,057,85|154,007,8|380,185|1,224,230,707.52|
|balance|092.00|9.68|21.15|,934.69||

 Same period of last year
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Same period of last year|||||||||||
|||Other equity instruments|||||Other|||||
|||||||Less:|||||Total|
|Item|Share||||Capital||comprehe|Specific|Surplus|Retaine||
|||Prefere|Perpetu|||treasury|||||owners’|
||capital|||Other|reserve||nsive|reserve|reserve|d profit||
|||nce|al bonds|||stock|||||equity|
||||||||incomes|||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|||shares||||||
|I. Balance at the||||||||
||595,979,||94,057,85|2,933,175|135,934,4|391,006|1,219,911|
|end of the previous||||||||
||092.00||9.68|.45|22.40|,574.07|,123.60|
|year||||||||
|Add: change of||||||||
|accounting policy||||||||
|Correction of||||||||
|errors in previous||||||||
|periods||||||||
|Other||||||||
|II. Balance at the||||||||
||595,979,||94,057,85|2,933,175|135,934,4|391,006|1,219,911|
|beginning of the||||||||
||092.00||9.68|.45|22.40|,574.07|,123.60|
|year||||||||
|III. Increase/||||||||
|||||||-125,74||
|decrease in the||||-2,933,17|||-128,677,|
|||||||4,054.2||
|period (“-” means||||5.45|||229.70|
|||||||5||
|decrease)||||||||
|(I) Total||||||||
|||||-2,933,17||5,371,3|2,438,170|
|comprehensive||||||||
|||||5.45||45.99|.54|
|incomes||||||||
|(II) Capital||||||||
|increased and||||||||
|reduced by owners||||||||
|1. Common||||||||
|shares increased||||||||
|by shareholders||||||||
|2. Capital||||||||
|increased by||||||||
|holders of other||||||||
|equity instruments||||||||
|3. Amounts||||||||
|of share-based||||||||
|payments||||||||
|recognized in||||||||
|owners’ equity||||||||
|4. Other||||||||
|||||||-131,11||
|(III) Profit|||||||-131,115,|
|||||||5,400.2||
|distribution|||||||400.24|
|||||||4||
|1.||||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|Appropriations to||||||
|surplus reserves||||||
|2.||||||
|||||-131,11||
|Appropriations to|||||-131,115,|
|||||5,400.2||
|owners (or|||||400.24|
|||||4||
|shareholders)||||||
|3. Other||||||
|(IV) Internal||||||
|carry-forward of||||||
|owners’ equity||||||
|1. New||||||
|increase of capital||||||
|(or share capital)||||||
|from capital public||||||
|reserves||||||
|2. New||||||
|increase of capital||||||
|(or share capital)||||||
|from surplus||||||
|reserves||||||
|3. Surplus||||||
|reserves for||||||
|making up losses||||||
|4. Other||||||
|(V) Specific||||||
|reserve||||||
|1. Withdrawn||||||
|for the period||||||
|2. Used in the||||||
|period||||||
|(VI) Other||||||
|IV. Closing|595,979,|94,057,85|135,934,4|265,262|1,091,233|
|balance|092.00|9.68|22.40|,519.82|,893.90|

 III. Company Profile
Shenzhen Properties& Resources Development (Group) Ltd. (hereinafter referred to as “company ” or “the Company”) is a joint stock limited company incorporated upon the reorganization of Shenzhen Properties&
Resources Development Corp. with the approval from the Document SFBF[1991] No. 831 from thePeople’s
Government of Shenzhen Municipality, Guangdong Province. The number of our business license is
440301103570124.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Up to 30 June 2016, the registered capital of the Company was RMB595,979,092 and the paid-in capital was RMB595,979,092.
The registered capital of the Company increased to RMB541,799,175 after a bonus issue of one share for every existing 10 shares based on the total shares of the Company in 1996 and increased to RMB595,979,092 after another bonus issue of one share for every existing 10 shares based on the total shares of 541,799,175 in 2009. 1. Registered office, organization form and headquarter address of the Company
Registered office: Shenzhen Municipal, Guangdong Province, PRC
Organization form: joint-stock company with limited liability
Headquarter address:
39th
and
42nd
Floor, International Trade Center, Renmin South Road, Shenzhen.
2. Nature of the business and main business scope of the Company
The business scope of the Company and its subsidiaries includes development and sale of commodity premises, construction and management of buildings, lease of properties, supervision of construction, domestic trading and materials supply and marketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase).
The Company and the subsidiary (hereinafter referred to as “the Group” in total) mainly operates the development of real estate; property management; buildings and the building devices maintenance, garden afforest and cleaning service; houses and building leasing; passenger traffics and leasing of motor vehicles; supervise and management of the engineering; retails of the Chinese food, Western-style food and wines.
3. About the controlling shareholder of the Company and the Group
By the end of the Reporting Period, the controlling shareholder of the Company is still Shenzhen Construction Investment Holdings in register book. In 2004,People’s Government of Shenzhen Municipality incorporated Shenzhen Construction Investment Holdings with the other two municipal asset management companies, namely Shenzhen Investment Management Corporation and Shenzhen Trade and Business Holding Company, and established Shenzhen Investment Holdings Co., Ltd. Thus, theCompany’s actual controlling shareholder is Shenzhen Investment Holdings Co., Ltd., a sole state-funded limited company, who was established in October 13, 2004. Its main business scope is to execute the investment, operation and management on the state-owned equities of the wholly owned, controlling as well as the shares holding enterprises through the methods such as the reorganization and integration, capital operation and capital disposal; to engage in the real estate development and operating business within the scope which the land use right acquired legally; to execute the policy-based and strategic investment according to the requirements from municipal State-owned Assets Supervision and Administration Commission; to provide guarantee for the municipal state-owned enterprises; other business develop under the authorization from the municipal State-owned Assets Supervision and Administration Commission. As a government department, Shenzhen State-owned Assets Supervision and Administration Bureau manage Shenzhen Investment Holdings Co., Ltd. on behalf ofPeople’s Government of Shenzhen Municipality. Thus, the final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen Government.
4. Authorization and date of issuing the financial statements
The financial statements were approved and authorized for issue by the
4th
session of the
8th
Board of Directors of the Company on 26 August 2016.
Up to the end of the Reporting Period, there were 26 subsidiaries included in the consolidation financial statement, and for the details, please refer to Notes IX. 1 of Section IX. Financial Report.
For the changes of consolidation financial statement scope of the Reporting Period, please refer to Notes VIII. of Section IX. Financial Report.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 IV. Basis for the preparation of financial statements
1. Preparation basis
The company recognizes and measures transactions occurred according to Chinese Accounting Standards– Basic standard and other related accounting standards, prepares the financial statements based on accrual accounting and the underlying assumption of going concern.
2. Continuation
There will be no such events or situations in the 12 months from the end of the Reporting Period that will cause material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Indication of specific accounting policies and estimations:
Not applicable
1. Statement of compliance with Enterprise accounting standards
The company's financial statements comply with the requirements of Accounting Standards; thecompany’s financial position, operating results, changes in shareholder's equity and cash flow, and other relevant information are truly and completely disclosed in financial statements.
2. Fiscal period
TheGroup’s fiscal year starts on 1 Jan. and ends on 31 Dec. of every year according to the Gregorian calendar. 3. Operating cycle
A normal operating cycle refers to a period from the Group purchasing assets for processing to realizing cash or cash equivalents. As for the construction of the real estate projects of the Group with rather long period, the normal operating period more than 1 year owning to the industry characteristics, and although the relevant assets be discounted, sold or consumed more than 1 year, should still be divided into the circulating assets; as for the operating liabilities projects during the normal operation period even be liquidated over 1 year after the balance sheet date, should be divided into the circulation liabilities. Besides, the normal operating period of other business of the Group is shorter than 1 year. As for the normal operating period shorten than 1 year and the assets discounted since the balance sheet date or the liabilities should be liquidated due within 1 year since the balance sheet date, should be classified as the circulating assets or liabilities.
4. Recording currency
The Company and the domestic subsidiaries regarded Renminbi as the recording currency. The Hong Kong subsidiaries of the Company confirmed the Hong Kong Dollar as its recording currency according the currency among its major economic environment of the operation. The Group adopted Renminbi when compiling the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 financial statements.
5. Accounting method of business combination under the common control and not under the common control
(1) The Group adopts equity method for business combination under common control. The assets and liabilities that the combining party obtained in a business combination shall be measured on their carrying amount in the combined party on the combining date. The difference between the carrying amount of net assets acquired by the combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued) shall be adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted respectively. The business combination costs that are directly attributable to the combination, such as audit fees, valuation fees, and legal service fees and so on are recognized in profit or loss during the current period when they occurred. The bonds issued for a business combination or the handling fees, commissions and other expenses for bearing other liabilities shall be recorded in the amount of initial measurement of the bonds or other debts. The handling fees, commissions and other expenses for the issuance of equity securities for the business combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be offset. Where a relationship between a parent company and a subsidiary company is formed due to a business combination, the parent company shall, on the combining date, prepare consolidated financial statements according to the accounting policy of the Company; the period of the adjustment of the compared data of the consolidation financial statement should earlier than the later time under the control of the ultimate control party of the combine party and the combined party.
(2) The Company adopts acquisition method for business combination not under common control. The acquirer shall recognize the initial cost of combination under the following principles:
① When business combination is achieved through a single exchange transaction, the cost of a business combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree;
② For the business combination involved more than one exchange transaction, accounting treatments will be carried out separately on individual and consolidated financial statements as the followings:
A. In the individual financial statements, the initial investment cost changed to be measured by the cost method of the particular project will be the sum of book value of equity in the entity before the date of acquisition and the newly added investment cost; the other comprehensive revenues recognized by adopting the equity method of the equity investment before the purchase date, should be executed accounting treatments based on the same basic of the relevant assets or liabilities directly disposed by the purchasers when disposing the investment. The equity investment held before the purchase date which is executed the accounting treatments according to the relevant regulations of No. 22 ASBE-Recognition and Measurement of the Financial Instruments, the accumulative fair value changes originally included into the other comprehensive income should be transferred into the current gains and losses by adopting the cost method.
B. In the consolidated financial statements, the share equity in the acquired entity before the date of acquisition is recalculated upon the fair value of the equity at the date of acquisition. The balance between the fair value and book value shall be accounted into current investment income account; when the share equity before the date of acquisition involves with other integrated gains, such gains are transferred into investment income account of the period when it occurred. Within the notes of financial statement, the Company shall be disclosed the fair value (on the merger date) of the shareholdings of the bargainer hold and profits or losses recognized by the revaluation.③ Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 occurred relating to the merger of entities are accounted into current income account when occurred; the transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
④Where a business combination contract or agreement provides for a future event which may adjust the cost of combination, the Group shall include the amount of the adjustment in the cost of the combination at the acquisition date if the future event leading to the adjustment is probable and the amount of the adjustment can be measured reliably.
The Group shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an enterprise for a business combination in light of their fair value, and shall record the balances between them and their carrying amounts into the profits and losses at the current period.
The acquirer shall distribute the combination costs on the acquisition date, and shall recognize all identifiable assets, liabilities and contingent liabilities it obtains from the acquiree. (1) the acquirer shall recognize the difference that the combination costs are over the fair value of the identifiable net assets obtained from acquiree as goodwill; (2) if the combination costs are less than the fair value of the identifiable net assets obtained from acquiree, the acquirer shall reexamine the measurement of the fair values of the identifiable assets, liabilities and contingent liabilities obtained from the acquiree as well as the combination costs; and then after the reexamination, the result is still the same, the difference shall be recorded in the profit and loss of the current period.
Where a relationship between a parent company and a subsidiary company is formed due to a business combination, the parent company shall prepare accounting books for future reference, which shall record the fair value of the identifiable assets, liabilities and contingent liabilities obtained from the subsidiary company on the acquisition date. When preparing consolidated financial statements, it shall adjust the financial statements of the subsidiary company on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities determined on the acquisition date according to theGroup’s accounting policy of “Consolidated financial statement”.
6. Methods for preparing consolidated financial statements
(1) Consolidation scope
The consolidation scope for financial statements is determined on the basis of control, including the financial statements up to 30 June 2015 of the Company and whole subsidiaries. The consolidated financial statements comprise the financial statements of the Group and its subsidiaries. A subsidiary is an enterprise or entity controlled by the Group (including the segmental part among the enterprises and investees as well as the structuralized main bodies etc.) The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the investee to obtain variable returns and is able to influence the amount of returns.
(2) Methods for preparing the consolidated financial statements
The Company compiles the consolidation financial statement according to other relevant materials based on the financial statement of itself and its subsidiaries.
The Company regards the whole enterprise group as an accounting main body when compiling the consolidation financial statement to reflect the whole financial conditions, operation results and cash flows according to the requirements of the recognition, measurement and presentation of the relevant ASBE and the unitize accounting polices.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the Group during the preparation of the consolidated financial statements, where the accounting policies
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 and the accounting periods are inconsistent between the Group and subsidiaries. For a subsidiary acquired from a business combination not under the same control, the individual financial statements of the subsidiary are adjusted based on the fair value of the identifiable net assets at the acquisition date.
(3) Statement of minority interests and profits or losses
The portion of the equity of the subsidiaries that are not owned by the parent is presented as minority interest in the consolidated balance sheet.
The portion of the profit or loss of the subsidiaries that are not owned by the parent is presented as minority interest in the consolidated income statement.
(4) Accounting treatment of excess losses
When the share of losses attributable to the minor shareholders has exceeded their shares in theshareholders’ equity at the beginning of term, theshareholders’ equity shall be deducted thereof.
(5) Accounting treatment on increase or decrease of the subsidiaries during the Reporting Period
For any subsidiary acquired by the Company through business combination under the common control, when the consolidated balance sheet for the current period are being prepared, the amount at the beginning of the period in the consolidated balance sheet is made corresponding modification. For addition business combination not under common control during the Reporting Period, the Company makes no adjustment for the amount at the beginning of the period in the consolidated balance sheet. When disposing subsidiary during the Reporting Period, the Company makes no adjustment for the amount at the beginning of the period in the consolidated balance sheet. For any subsidiary acquired by the Company through business combination under the common control, when the consolidated income statement for the current period are being prepared, revenue, expense and profit for the period from the beginning of the consolidated period to the year end of the Reporting Period are included in the consolidated income statement, and included the consolidate cash flow from the period-begin to the period-end of the subsidiary into the consolidate cash flow statement. For addition business combination not under common control during the Reporting Period, revenue, expense and profit for the period from acquisition date to the year end of the Reporting Period is included in the consolidated income statement and included the consolidate cash flow from the purchasing date to the period-end of the subsidiary into the consolidate cash flow statement. When disposing subsidiary during the Reporting Period, revenue, expense and profit for the period from the beginning to the disposal date are included in the consolidated income statement.
When losing the control right of the original subsidiary owing to the disposing of party equity investment or other reasons, for the remaining equity investment after the disposing, should be remeasured according to the fair value of the date of losing the control right. The amount of the sum between the consideration of disposing the equity and the fair value of the remaining equity that minus the balance between the shares of net assets that gained from the original subsidiaries by continuously calculation according the original shareholding ratio since the purchasing date should accrued into the current investment benefits of losing the control right. The other comprehensive benefits related to the equity investment of the original subsidiaries should be transferred into the current investment benefits when losing the control right.
The balance between the newly gained long-term equity investment owning to the purchasing of the minority equities and the net identifiable assets enjoyed from the subsidiaries according to the newly increased shareholding ratio, and the balance between the dispose of remuneration which gained from the partly depose of the equity investment of the subsidiaries under the situation of not losing the control right and the corresponding shares of net assets from the subsidiaries when disposing the long-term equity investment, should both adjust the share premium of the capital surplus of the consolidate balance sheet. If the share premium of the capital surplus is not sufficient for adjustment, retained earning is adjusted respectively.
(6) Disposal on consolidation statement of disposing the equity step by step till lose the control right
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 If the each transaction of disposing the equity investment of the subsidiaries till lose the control right which belongs to package deal, each transaction would be executed accounting treatment as a transaction of disposing the subsidiaries that lose the control right; however, before losing the control right, for the balance between each disposal of the remuneration and the corresponding shares of net assets of investing the subsidiary, would be confirmed as other comprehensive benefits in the consolidate financial statement and would be transferred into the current gains and losses of losing the control right when losing it. If not belongs to the package deal, before losing the control right, or when losing it, should execute the accounting treatment according to the aforesaid situation of not losing the control right to dispose party equity investment of the subsidiaries as well as according to the accounting policy of losing the control right of the original subsidiaries.
If the regulations, conditions and its economic influences of each deal of disposing the equity investment of the subsidiary met with following one or more kinds of situations, it indicated that the multiple transactions would consolidate as package deal for accounting treatment:① these transactions are formatted under the situation of contemporary or considering of the mutual influences;② only the entirety of these transactions could achieve a complete commercial result;③the happen of one transaction depends on at least the happen of other one transaction;④to see independently of one transaction is not economic while to considered with other transactions are economic.
Execute the accounting treatment of the several financial statements of disposing the equity step by step till lose the control right according to the accounting policy of disposing the long-term equity investment.
7. Classification of joint arrangements and accounting treatment of joint operations
(1) Category of joint arrangements
A joint arrangement refers to an arrangement jointly controlled by two participants or above. The Group classifies joint arrangements into joint operations and joint ventures according to its rights and duties in the joint arrangements. A joint operation refers to a joint arrangement where the Group enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement where the Group is only entitled to the net assets of the arrangement.
The joint arrangement achieves not through the individual main body should be divided as joint operation. Individual main body refers to the entity owns individual distinguishable financial structure, including the individual legal entities and the entities without legal entity qualification but gains the legal permits. The joint arrangement achieves through individual main body is usually divided into the joint venture, but for the joint arrangement with definite evidence indicants that meet with any condition of the followings and meet with the regulations of the relevant laws and regulations should be divided into joint operation; the legal form of other joint arrangement indicates that, the jointly owned party respectively enjoys the rights and burdens the obligations of the relevant assets and liabilities among the arrangement; the clauses of the contacts of the joint arrangement agrees that, the jointly owned party respectively enjoys the rights and burdens the obligations of the relevant assets and liabilities among the arrangement; other relevant facts and situation indicates that, the jointly owned party respectively enjoys the rights and burdens the obligations of the relevant assets and liabilities among the arrangement, for example, the jointly owned party enjoys almost all of the output related to the joint arrangement and the liquidation of the liabilities of the arrangement constantly depends on the support of the jointly owned party.It’s forbidden to regard the jointly owned party which provides the liabilities for the joint arrangement as it has the responsibility to bear the relevant liabilities. For the jointly owned party takes the responsibility to pay the contributive obligations for the joint arrangement, not be considered to undertake the relevant liabilities related to the arrangement. For the relevant facts and the changes of the situation leads the rights enjoyed and the liabilities
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 undertook amount the joint arrangement change, the Group should re-assess the category of the joint arrangement. For the structure agreement setting various joint arrangements for achieving different activities, the Group respectively recognizes each category of the joint arrangement.
For the details of the basis of recognizing the joint control and the accounting policies of the measurement of the joint venture, please refer to Notes (V) 13.
(2) Accounting treatment of joint operations
The following projects related to the interests portion among the joint operation recognized by the Group and be executed according to the regulations of the relevant ASBE: recognizes the assets held alone and the assets joint held by recognizing according to the portion; recognizes the jointly-held assets and jointly-borne liabilities according to theGroup’s stake in the joint operation; recognizes the income from sale of theGroup’s share in the output of the joint operation; recognizes the income from sale of the jointoperation’s outputs according to theGroup’s stake in it; and recognizes the expense solely incurred to the Group and the expense incurred to the joint operation according to theGroup’s stake in it.
When the Group, as a joint operator, transfers or sells assets (except for the assets constituting business) to the joint operation, before the assets are sold to a third party, the Group only recognizes the share of the other joint operators in the gains and losses arising from the sale. Where impairment occurs to the assets as prescribed in<The Accounting Standard No. 8 for BusinessEnterprises—AssetImpairment>, the Group shall fully recognizes the loss. When the Group, purchases assets from the joint operation (except for the assets constituting business) to the joint operation, before the assets are sold to a third party, the Group only recognizes the share of the other joint operators in the gains and losses arising from the sale. Where impairment occurs to the assets as prescribed in<The Accounting Standard No. 8 for BusinessEnterprises—AssetImpairment>, the Group shall fully recognizes the loss according to its stake in the joint operation for a purchase of assets from the joint operation.
If the Group attributes to the participate party without joint control on the joint operation, if enjoys the relevant assets and undertakes the relevant liabilities of the joint operation, should execute accounting treatment according to the above principles; otherwise, should execute the accounting treatment according to the accounting policies of the measurement of the financial instruments or the long-term equity investment formulated by the Group. 8. Recognition standard for cash and cash equivalents
In theGroup’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign currency businesses and translation of foreign currency financial statements
The foreign currency transactions are both discounted as recording currency according to the spot rate on the trading date (usually refers to the middle price of the foreign exchange quotation on that very date issued byPeople’s Bank of China, similarly hereinafter).
(1) Treatment of foreign currency exchange difference
On balance sheet date, the Group accounts for monetary and non-monetary items denominated in foreign currencies as follows: a) monetary items denominated in foreign currencies are translated at the foreign exchange rates ruling at the balance sheet date. Foreign exchange gains and losses arising from the difference between the balance sheet date exchange rate and the exchange rate ruling at the time of initial recognition or the exchange rate ruling at the last balance sheet date are recognized in income statement; b) Non-monetary items that are measured
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 in terms of historical cost in a foreign currency are translated using the current exchange rates ruling at the transaction dates. Non-monetary items denominated in foreign currencies that are stated at fair value are translated using the current exchange rates ruling at the dates the fair value was determined, the difference between the amount of functional currency after translation and the original amount of functional currency is treated as part of change in fair value (including change in exchange rate) and recognized in income statement. During the capitalization period, exchange differences arising from foreign currency borrowings are capitalized as part of the cost of the capitalized assets.
(2) Translations of financial statements in foreign currencies
The Group translates the financial statements of its foreign operation in accordance with the following provisions: a) the asset and liability items in the balance sheets shall be translated at a spot exchange rate ruling at the balance sheet date. Among the owner's equity items, except the ones as “retained earnings”, others shall be translated at the spot exchange rate ruling at the time when they occurred; b) The income and expense items in the income statements shall be translated at an exchange rate which is determined in a systematic and reasonable way and is approximate to the spot exchange rate (calculated by the average of starting rate and closing rate on the Reporting Period) ruling at the transaction date. The foreign exchange difference arisen from the translation of foreign currency financial statements shall be presented separately under the owner's equity in the balance sheet. The translation of comparative financial statements shall be subject to the aforesaid provisions.
10. Financial instruments
(1) Recognition of the financial instruments
The Group recognizes a financial asset or financial liability on its balance sheet when, and only when, the Company becomes a party to the contractual provisions of the instrument.
(2) Category and measurement of the financial assets
① The Group based on the reasons such as risks management, investment strategies and objective of holding the financial assets, classifies the financial assets into the following four categories: a) financial assets at fair value through profit or loss; b) held-to-maturity investments; c) loans and receivables; and d) available-for-sale financial assets.
A. Financial assets measured by fair value and its changes included in the current gains and losses
Financial assets measured by fair value and its changes included in the current gains and losses, including trading financial assets and the financial assets appointed to be measured by fair value with its changes included in the current gains and losses of the initial recognition.
The financial assets meeting any of the following requirements shall be classified as transactional financialassets： A. The purpose to acquire the said financial assets is mainly for selling them in the near future; B. Forming a part of the identifiable combination of financial instruments which are managed in a centralized way and for which there are objective evidences proving that the enterprise may manage the combination by way of short-term profit making in the near future; C. Being a derivative instrument, excluding the designated derivative instruments which are effective hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative instruments which are connected with the equity instrument investments for which there is no quoted price in the active market, whose fair value cannot be reliably measured, and which shall be settled by delivering the said equity instruments.
The financial assets meeting any of the following requirements shall be designated as financial assets which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period for initial recognition: A. the designation can eliminate or significantly reduce the difference of relevant gains and
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 losses between recognition and measurement causing from different bases for measurement of financial assets; B. The official written documents for risk management and investment strategies of the enterprise have clearly stated that it shall, manage, evaluate and report to important management personnel based on the fair value, about the financial assets group or the group of financial assets which the financial assets are belong to.
For the equity instruments investment without quotation in the active market and the fair value could not be reliable measured, should not be appointed as the financial assets measured by the fair value with its changes included in the current gains and losses.
B. Held-to-maturity investment
The term “held-to-maturity investment” refers to a non-derivative financial asset with a fixed date of maturity, a fixed or determinable amount of repo price and which the enterprise holds for a definite purpose or the enterprise is able to hold until its maturity.
C. Loans and the accounts receivables
Loans and the accounts receivables refer to non-derivative financial assets, which there is no quotation in the active market, with fixed recovery cost or recognizable.
D. Available-for-sale financial assets
Available-for-sale financial assets refer to the non-derivative financial assts which appointed available for sale when initially recognizes and the financial assets except for the above category of the financial assets.
After the Group classifies certain financial assets as the financial assets measured by fair value and included its changes in the current gains and losses when initially recognized, should not re-classified as other financial assets; other financial assets also should not be re-classified as the financial assets measured by fair value with its changes be included in the current gains and losses.
② The financial assets are initially recognized at fair value. Gains or losses arising from a change in the fair value of a financial asset at fair value through profit or loss is recognized in profit or loss when it incurred and relevant transaction costs are recognized as expense when it incurred. For other financial assets, the transaction costs are recognized as costs of the financial assets.
③ Subsequent measurement of financial assets
A. A financial asset at fair value through profit or loss includes financial assets held for trading and financial assets designated by the Group as at fair value through profit or loss. The Group subsequently measures the financial asset at fair value through profit or loss at fair value and recognizes the gain or loss arising from a change in the fair value of a financial asset at fair value through profit or loss as profit or loss in the current period.
B. Held-to-maturity investments are measured at amortized cost using the effective interest method. A gain or loss is recognized in profit or loss during the current period when the financial asset is derecognized or impaired and through the amortization process.
C. Loans and receivables are measured at amortized cost using the effective interest method. A gain or loss is recognized in profit or loss during the current period when the financial asset is derecognized or impaired and through the amortization process.
D. Available-for-sale financial assets are measured at fair value and the gain or loss arising from a change in the fair value of available-for-sale financial assets is recognized as capital reserve which is transferred into profit or loss when it is impaired or derecognized. Interests or cash dividends during the holding period are recognized in profit or loss for the current period. For the equity instruments investment without quotation in the active market and the fair value could not be reliable measured and the derivative financial assets linked up with the equity instruments and should be settled through handing over to the equity instruments, should be measured according to the cost.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016④ Impairment provision of the financial assets
A. The Group assesses the carrying amount of the financial assets except the financial asset at fair value through profit or loss at each balance sheet date, if there is any objective evidence that a financial asset or group of financial assets is impaired, the Group shall recognize impairment loss.
B. The objective evidences that the Group uses to determine the impairment are as follows:
a) significant financial difficulty of the issuer or obligor;
b) a breach of contract, such as a default or delinquency in interest or principal payments;
c) the lender, for economic or legal reasons relating to the borrower's financial difficulty, granting to the borrower a concession that the lender would not otherwise consider;
d) it becoming probable that the borrower will enter bankruptcy or other financial reorganization;
e) the disappearance of an active market for that financial asset because of financial difficulties;
f) observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group, including: (i) Adverse changes in the payment status of borrowers in the group or (ii) an increase in the unemployment rate in the geographical area of the borrowers, a decrease in property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the borrowers.
g) significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment in which the borrower operates, and indicates that the cost of the investment in the equity instrument may not be recovered;
h) a significant or non-temporary decrease in fair value of equity investment instruments;
i) other objective evidences showing the impairment of the financial assets.
C. Measurement of impairment loss of financial assets
a) held-to-maturity investments, loans and receivables
If there is objective evidence that an impairment loss on loans and receivables or held-to-maturity investments carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows. The amount of the loss is recognized in profit or loss of the current period.
The Group assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment. The Group performs impairment test for receivables and provide bad debt provisions at the balance sheet date. For the individually significant receivables and not individually significant receivables, the impairment tests are both carried on individually. If there is objective evidence that an impairment loss on loans and receivables, the Group provides provision for impairment loss for the amount which is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss of financial asset measured at amortized cost is be reversed. The amount of the reversal is recognized in profit or loss of the current period.
b) Available-for-sale financial assets
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 The Group takes the individual investment of impairment test for available-for-sale financial assets. On the balance sheet date, it could judge whether the fair value of available-for-sale financial assets are seriously or non-temporary decline: if the decline of the fair value of the individual available-for-sale financial assets exceeds50% of the cost, or had continuously declined for over 12 months, should be recognized the available-for-sale financial assets had decreased and should recognized the impairment losses according to the impairment provision for the balance between the cost and the fair value. The cost at the period-end of available-for-sale financial assets is the amortized cost which is initially measured according to the investment cost when receiving and is calculated by the weighted average method when selling.
When a decline in the fair value of an available-for-sale financial asset has been recognized directly in equity, the cumulative loss that had been recognized directly in equity is removed from equity and recognized in profit or loss even though the financial asset has not been derecognized.
If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are recognized in the profit or loss of the current period.
If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed, with the amount of the reversal recognized in profit or loss of the current period. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available for sale is not reversed through profit or loss. For impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the impairment loss is not reversed through profit or loss.
(3) Classification and measurement of financial liabilities
① The financial liabilities held by the Group are divided into the financial liabilities measured at fair values and whose changes are recorded in current gains and losses and other financial liabilities.
Financial liabilities measured by fair value and its changes included in the current gains and losses, including trading financial liabilities and the financial liabilities appointed to be measured by fair value with its changes included in the current gains and losses of the initial recognition.
The financial liabilities meeting any of the following requirements shall be classified as transactional financialliabilities：A. The purpose to acquire the said financial liabilities is mainly for selling them in the near future; B. Forming a part of the identifiable combination of financial instruments which are managed in a centralized way and for which there are objective evidences proving that the enterprise may manage the combination by way of short-term profit making in the near future; C. Being a derivative instrument, excluding the designated derivative instruments which are effective hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative instruments which are connected with the equity instrument investments for which there is no quoted price in the active market, whose fair value cannot be reliably measured, and which shall be settled by delivering the said equity instruments.
The financial liabilities meeting any of the following requirements shall be designated as financial liabilities which are measured at their fair values and the variation of which is recorded into the profits and losses of the current period for initial recognition: A. the designation can eliminate or significantly reduce the difference of relevant gains and losses between recognition and measurement causing from different bases for measurement of
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 financial assets; B. The official written documents for risk management and investment strategies of the enterprise have clearly stated that it shall, manage, evaluate and report to important management personnel based on the fair value, about the financial liabilities group or the group of financial liabilities which the financial liabilities are belong to; for the blender instruments including one or more items of derivative instruments, unless there no significant changes of the cash flow of the blender instruments by the embedded derivatives, or the embedded derivative instruments parentally should be stripped off from the relevant blender instruments; including the blender instruments that embedded into the derivative instruments needed to be stripped out but failed to execute individual measurement when acquired or on the follow-up balance sheet date.
After the Group classifies certain financial liabilities as the financial liabilities measured by fair value and included its changes in the current gains and losses when initially recognized, should not re-classified as other financial liabilities; other financial liabilities also should not be re-classified as the financial liabilities measured by fair value with its changes be included in the current gains and losses.
② Financial liabilities are initially measured at fair value. For the financial liability at fair value through profit or loss at its fair value, relevant transaction costs are recognized as expense when it incurred. For the other financial liabilities, relevant transaction costs are recognized as costs.
③ Subsequent measurement of financial liabilities
A. The Group recognizes a financial liability at fair value through profit or loss at its fair value. A gain or loss of change in fair value is recognized in the profit or loss of the current period.
B. Other financial liabilities are measured by amortized cost using effective interest rate.
(4) Recognition and measurement for transfer of financial assets
The Group derecognizes financial assets when the Group transfers substantially all the risks and rewards of ownership of the financial assets. On derecognizing of a financial asset in its entirety, the difference between the follows is recognized in profit or loss of the current period.
① the carrying amount of transferring financial assets;
② the sum of the consideration received and any cumulative gain or loss that had been recognized directly in equity (including financial assets transferred to available for sale category).
If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognizing in its entirety, the previous carrying amount of the larger financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts on the date of the transfer. The difference between the follows is recognized in profit or loss of the current period.
① the carrying amount allocated to the part derecognized;
② the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to it that had been recognized directly in equity (including financial assets transferred to available for sale category). A cumulative gain or loss that had been recognized in equity is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts.
If a transfer does not qualify for derecognizing, the Group continues to recognize the transferred asset in its entirety and shall recognize a financial liability for the consideration received.
When the Group continues to recognize a financial asset to the extent of its continuing involvement, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.
(5) De-recognition of financial liabilities
If the whole or partly of the current obligation of the financial liabilities of the Group is relieved, should derecognize the financial liabilities or partly of it. The Group signs an agreement with the creditors is of the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 method by undertaking the new financial liabilities to replace the current financial liabilities. if the new financial liabilities are different from the current one on the essence of contract terms, should derecognize the current financial liabilities and recognize the new one at the same time.
If the whole or partly of the financial liabilities had derecognized, should derecognize balance between partly of the book value and the paid consideration (including the turned out non-cash assets or the new financial liabilities) and accrued into the current gains and losses.
(6) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset. As for the financial assets and financial liabilities satisfy the following conditions at the same time, should be listed as the net amount within the balance sheet after the mutual offset: the Group had the legal right of the offset recognized amount and the right was executable for the moment; the Group planed to settle by net amount or at the same time discounted the financial assets and liquidated the financial liabilities. For the transfer of the financial assets not satisfy the de-recognition conditions, the transfer-out party should not offset the transfer financial assets and the relevant liabilities.
11. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made individually
|||
|-|-|
|Judgement basis or monetary standards of provision for bad|Accounts receivable with individual amount of more than 2|
|debts of the individually significant accounts receivable|million (including 2 million).|
||The Group made an independent impairment test on receivables|
||with significant single amounts; if there was objective evidence|
||indicated that the impairment had occurred should recognize the|
|Method of individual provision for bad debts of the individually||
||impairment losses and should withdraw the bad debt provision.|
|significant accounts receivable||
||The financial assets without impairment by independent|
||impairment test should be included in financial assets portfolio|
||with similar credit risk to take the impairment test.|

(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
|||
|-|-|
|Name of portfolios|Bad debt provision method|
|Portfolios 1 (accounts receivable among the companies within||
||Other method|
|the consolidated scope of the Group)||
|Portfolios 2 (accounts receivable except for the portfolios 1||
|which had not been impaired after the individual test, and the||
|Company confirmed the ratio of the withdrawal of the bad debt||
|provision based on the actual loss rate of the accounts receivable||
||Aging of accounts|
|portfolios possessed similar credit risk characteristics that||
|divided according to the aging phase combined with the current||
|situation, of which the actual loss rate was the same to or similar||
|with that of the previous years)||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Not applicable
||||
|-|-|-|
||Withdrawal proportion for accounts|Withdrawal proportion for other accounts|
|Age|||
||receivable|receivable|
|Within 1 year (including 1 year)|3.00%|3.00%|
|1-2 years|10.00%|10.00%|
|2-3 years|30.00%|30.00%|
|3-4 years|50.00%|50.00%|
|4-5 years|80.00%|80.00%|
|Over 5 years|100.00%|100.00%|

 In the groups, adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, adopting other methods to withdraw bad debt provision:
√ Applicable□ Not applicable
||||
|-|-|-|
||Withdrawal proportion for accounts|Withdrawal proportion for other accounts|
|Name of portfolios|||
||receivable|receivable|
|Portfolios 1|0.00%|0.00%|

 (3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made individually
|||
|-|-|
||The Group made independent impairment test on receivables|
|Reason of individually withdrawing bad debt provision|with insignificant amount but with special impairment indicated|
||by objective evidence.|
||The impairment test is carries out individually, the Company|
||recognizes provision for impairment loss for the amount which is|
|Withdrawal method for bad debt provision|measured as the difference between the asset's carrying amount|
||and the present value of estimated future cash flows, and|
||withdraws relevant bad debts provision.|

12. Inventory
(1) Classification of inventory: inventory of the Group including the finished products or commodities held in the daily activities for sales, the unfinished products in the production process, the materials consumed in the production process or the process of providing the labor etc., which are specific divided as: raw materials, finished goods, and low-value consumption goods, land use right held for real estate development, properties under development and completed properties for sale.
(2) Reorganization of inventory: the Company confirms the inventory when meeting the following conditions at
the same time:
① the economic benefits related to the inventory possibility would flow into the enterprise;
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016② the cost of the inventory could be reliably calculated.
(3) Valuation method of inventories acquiring and issuing: Property inventories are measured at actual cost incurred, comprising the borrowing cost designated for real estate development before completion of developing properties. Completed saleable property inventories are measured using average unit area cost method. Other kinds of inventories are measured at actual cost incurred, and when the inventories are transferred out or issued for use, cost of the inventories is determined using weighted average cost method.
(4) Amortization method of low-value consumption goods and wrappage: the low-value consumption goods and wrappage should adopt the one time amortization according to the actual situation when requiring.
(5) Measurement of the inventories at the period-end: on the balance sheet date, the inventory should be measured according to the lower one between the cost and the net realizable value, if the inventory cost higher than the net realizable value, should withdraw the falling provision of the inventory and include in the current gains and losses.
① Estimation of net realizable value:
Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are made, of the amount the inventories are expected to realize. These estimates take into consideration the purpose for which the inventory is held and the influence of post balance sheet events.
Materials and other supplies held for use in the production are measured at cost if the net realizable value of the finished goods in which they will be incorporated is higher than their cost. However, when a decline in the price of materials indicates that the cost of the finished products will exceed their net realizable value, the materials are measured at net realizable value.
The net realizable value of inventories held to satisfy sales or service contracts is generally based on the contract price.
If the quantity specified in sales contracts is less than the inventory quantities held by the Company, the net realizable value of the excess shall be based on general selling prices.
② The Company generally provides provision for impairment of inventory individually.
For large quantity and low value items of inventories, cost and net realizable value are determined based on categories of inventories.
Where certain items of inventory have similar purposes or end uses and relate to the same product line produced and marketed in the same geographical area, and therefore cannot be practicably evaluated separately from other items in that product line, costs and net realizable values of those items may be determined on an aggregate basis. (6) The perpetual inventory system is maintained for stock system.
13. Divided as assets held for sale
(1) Recognition criteria of the assets held for sale
The Group recognizes the enterprise compose part (or the non-current assets, similarly hereinafter) that simultaneously meets with the following conditions as assets held for sale:
① The compose part must be immediately sold only according to the usual terms of selling the compose part of this kind under the current conditions;
② The relevant power institutions of the Group had made agreement on disposing the compose part, if receive the approval from the shareholders according to the rules, which equals to had received the approved of the Annual General Meeting or the corresponding power institution;
③ The Group has signed the irrevocable transfer agreement with the assignee;
④ The sale transaction is highly probable to be completed within one year
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Accounting treatments of the assets held for sale
Non-current assets held for sale include single-item assets and disposal groups. Where a disposal group is an asset group and the goodwill obtained in the business combination is apportioned to the asset group according to the “Accounting Standard No. 8 for BusinessEnterprises—Asset Impairment”, or a disposal group is an operation in such an asset group, the disposal group shall include the goodwill in the business combination.
As for the non-current assets and disposal group which be classified held for sale by the Group, shall be measured at the lower one of the net amounts of the book value and the fair value after deducting the disposal expense. If the net amount the fair value minuses the disposal expenses is lower than the original book value, the difference should be included in the current gains and losses as the assets impairment losses; if the held for sale is the disposal group, the assets impairment losses should be firstly distributed to the goodwill and then included in the current gains and losses by amortized according to the proportion and attributed to the other non-current assets within the held for sale assets scope. The deferred income tax assets, the financial assets standardized by No. 22 of ASBE-Recognition and Measurement of Financial Instruments, investment property and biological assets measured by fair value, contacts rights occurred from the insurance contacts and the assets occurred from the employee benefits are not suit for the held for sale measurement, but be individually measured or be measured by being regarding as part of certain disposal group according to the relevant criterion or the relevant accounting policies formulated by the Group.
An asset or an disposal group was classified as held for sale before, but if itcouldn’t meet the recognition conditions for held-for-sale non-current asset later, the Company shall cease to classify it as held for sale, and measure it by the lower amount of the followings: (1) its carrying amount before the asset (or disposal group) was classified as held for sale, adjusted for any depreciation, amortization or impairment before the asset (or disposal group) being classified as held for sale; or (2) its recoverable amount on the date of the subsequent decision not to sell.
14. Long-term equity investments
Long-term equity investment including the equity investment on the subsidiaries, joint ventures and associated enterprises.
(1) Initial measurement
The Group initially measures long-term equity investments under two conditions:
①For long-term equity investment arising from business combination, the initial cost is recognized under the following principles.
A. If the business combination is under the common control and the acquirer obtains long-term equity investment in the consideration of cash, non-monetary asset exchange or bearingacquiree’s liabilities, the initial cost is the carrying amount of the proportion of theacquiree’sowner’s equity at the acquisition date. The difference between cash paid, the carrying amount of the non-monetary asset exchanged and theacquiree’s liabilities beard and the initial cost of the long-term equity investment should be adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted respectively. The business combination costs that are directly attributable to the combination, such as audit fees, valuation fees, legal service fees and so on are recognized in profit or loss during the current period when they occurred.
If the acquirer issuing equity securities as consideration, the initial cost is the carrying amount of the proportion of theacquiree’sowner’s equity at the acquisition date. Amount of share capital equal to the par value of the shares issued. The difference between initial cost of the long-term equity investment and the par value of shares issued is adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 respectively. The costs of issuing equity securities occurred in business combination such as charges of security issuing and commissions are deducted from the premium of equity securities. If the premium is not sufficient for deducting, retained earning is adjusted respectively.
B. If the business combination is not under the common control, the acquirer recognizes the initial cost of combination under the following principles.
a) When business combination is achieved through a single exchange transaction, the cost of a business combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree;
b) For a business combination that involves more than one exchange transaction, the initial investment cost is the summation of the book value of the equity interests of the acquiree held by the Company before the acquisition date and the new investment cost on the acquisition date;
c) The fees incurred for audit, legal consultation, valuation services and other management expenses are to be recognized in profit or loss at the time such costs incurred. The transaction costs incurred by the acquirer for issuing equity securities or debt securities as the consideration of the acquisition are to be recognized as the initial amount of such equity security or debt security.
d) Where a business combination contract or agreement provides for a future event which may adjust the cost of combination, the Company shall include the amount of the adjustment in the cost of the combination at the acquisition date if the future event leading to the adjustment is probable and the amount of the adjustment can be measured reliably.
② For long-term equity investment obtained in any method other than business combination, the initial cost is recognized under the following principles.
A. If the long-term equity investment is acquired in cash consideration; the initial cost is the actual payment which includes direct expenses paid to acquire the long-term equity investment, taxes and other necessary expense. B. If the long-term equity investment is acquired by issuing equity securities, the initial cost is the fair value of the equity securities issued. However, cash dividends or profits that are declared but unpaid shall not be included in the initial cost. Transaction costs arising from issuing or obtaining equity instruments that can be directly attributed to equity transaction are deducted from equity.
C. For the long-term equity investment acquired through non-monetary asset exchange, the initial cost is recognized according to “Accounting Standards for Business Enterprises No. 7-Non-monetary transactions”. D. For the long-term equity investment acquired through debt restructuring, the initial cost is recognized according to “Accounting Standards for Business Enterprises No. 12-Debt restructuring”.
③ If there are cash dividends or profits that are declared but unpaid included in the consideration paid, the cash dividends or profits declared but unpaid shall be recognized as receivables separately rather than as part of initial cost of long-term equity instruments no matter through which method the long-term equity investment is acquired. (2) Subsequent measurement
The cost method is used among the individual financial statement when the long-term equity investment could execute control on the investees. The equity method is used when the Company has joint control or significant influence over the investee enterprise.
① The price of a long-term equity investment measured by adopting the cost method shall be included at its initial investment cost and append as well as withdraw the cost of investing and adjusting the long-term equity investment. As for the cash bonus or the profits be declared for distribution by the investees should be recognized as the current investment income.
② If the initial cost of a long-term equity investment is more than theCompany’s attributable share of the fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 investment may not be adjusted. If the initial cost of a long-term equity investment is less than theCompany’s attributable share of the fair value of the investedentity’s identifiable net assets for the investment, the difference shall be included in the current profits and losses and the cost of the long-term equity investment shall be adjusted simultaneously.
After acquired the long-term equity investment, respectively recognize investment income and other comprehensive income according to the net gains and losses as well as the portion of other comprehensive income which should be enjoyed or be shared, and at the same time adjust the book value of the long-term equity investment; corresponding reduce the book value of the long-term equity investment according to profits which be declared to distribute by the investees or the portion of the calculation of cash dividends which should be enjoyed; for the other changes except for the net gains and losses, other comprehensive income and theowners’ equity except for the profits distribution of the investees, should adjust the book value of the long-term equity investment as well as include in theowners’ equities. The investing enterprise shall, on the ground of the fair value of all identifiable assets of the invested entity when it obtains the investment, recognize the attributable share of the net profits and losses of the invested entity after it adjusts the net profits of the invested entity. If the accounting polices adopted by the investees is not accord with that of the Group, should be adjusted according to the accounting policies of the Group and the financial statement of the investees during the accounting period and according which to recognize the investment income as well as other comprehensive income. The Group shall recognize the net losses of the invested enterprise until the book value of the long-term equity investment and other long-term rights and interests which substantially form the net investment made to the invested entity are reduced to zero. However, if the Group has the obligation to undertake extra losses, it shall be recognized as the estimated liabilities in accordance with the estimated duties and then recorded into investment losses at current period. If the invested entity realizes any net profits later, the Group shall, after the amount of its attributable share of profits offsets against its attributable share of the un-recognized losses, resume recognizing its attributable share of profits.
As for the equity investment on the associated enterpsies of the Group, of which part of them were through the venture capital Institutions, mutual fund, trust companies or indirectly held through the similar main bodies including the investment with insurance funds, and whether the above entities had significant impact on the part of the investemnt, the Group would chose to measure part of the investment held indirectly by fair value with the changes included in the gains and losses as well as adopted equity method to calculate the rest part according to No. 22 of the ASBE-Recogniztion and Measurement of the Financial Instruments.
When calculating and recognizing the net gains and losses enjoyed or be burdened by the investees, the part attributed to the Group which measured according to the enjoyed proportion from the unrealized internal transactions with the joint ventures and associated enterprises should be written off and be recognized as investment income on the basis. As for the unrealized internal transactions losses attributed to the assets impairment losses occurred between the Group and the investees, should be recognized in full amount.
③ When the Group disposing the long-term equity investment, as for the difference between the book value and the actual required price, should be included in the current gains and losses. As for the long-term equity investment measured by equity method, when disposing the investment, should execute the accounting treatment on the part which be originally included in the other comprehensive income according to the corresponding proportion based on the same basic of the relevant assets or liabilities be directly disposed by the investees.④ As for the decrease of the shareholding proportion of the Group owning to the capital increase on its subsidiaries by other investment parties that led the Group lost the control right but still could execute the joint control or cause significant influence, should calculate the long-term equity investment from cost method to equity method among the individual financial statements. Firtsly, as for the difference between the shares of the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 increased net assets owning to the capital increase as well as the shares expansion of the original subsidiaires which should be enjoyed by the investment part that confirmed according to the new shareholding proportion and the original book value of the long-term equity investment accorded with the delined part of the shareholding proportion that should be carried forward, should be included in the current gains and losses; secondly, execute the adjustement as immediately adopting the equity method for measurement as acquiring the investment according to the new shareholding proportion.
(3) Basic of recognizing the joint control and significant influences on the investees
Joint control, refers to the control jointly owned according to the relevant agreement on an arrangement by the Group and the relevant activities of the arrangement should be decided only after the participants which share the control right make consensus. Significant influence refers to the power of the Group which could anticipate in the finance and the operation polices of the investees, but could not control or jointly control the formulation of the policies with the other parties.
(4) Impairment test method and withdrawal method of impairment provision
The impairment test method and the withdrawal method of impairment provision of long-term equity investment are executed according to the accounting polices of “Long-term assets impairment” formulated by the Group. 15. Investment real estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
(1) Investment properties of the Company are properties held to earn rentals or for capital appreciation or both, mainly comprising:
① Land use right which has already been rented;
② Land use right which is held for transfer out after appreciation;
③ Property that has already been rented.
(2) Investment property shall be recognized as an asset when the following conditions are satisfied:
① It is probable that the future economic benefits that are associated with the investment property will flow to the Company;
②The cost of the investment property can be measured reliably.
(3) Initial measurement
An investment property is measured initially at its cost.
① The cost of a purchased investment property comprises its purchase price, related tax expenses and any directly attributable expenditure.
② The cost of a self-constructed investment property comprises all necessary construction expenditures incurred before the property is ready for its intended use.
③ The cost of a property acquired by other means shall be recognized according to relevant accounting standards.
(4) Subsequent measurement
After initial recognition, the Company adopts the cost model to measure its investment properties. The Company amortizes or depreciates its investment properties measured using cost model in the same way as fixed assets and intangible assets
If the Group had definite evidence indicated the usage of the property had changed, when transferring the self-used real estate or the inventories as the investment real estate or transferring the investment real estate as the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 self-used real estate, the book value before the transfer should be regarded as the entry value after transfer. The Group values the investment property measured using cost model at the lower of its cost and its recoverable amount at the end of the period. Where the cost exceeds the recoverable amount, the difference shall be recognized as impairment loss. Once a provision for impairment loss is made, it cannot be reversed.
16. Fixed assets
(1) Recognized standard
Fixed assets are tangible assets that: 1) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and 2) have useful life more than one year.
A fixed asset shall be initially recognized at cost when the following conditions are satisfied:
① It is probable that future economic benefits associated with the assets will flow to the Company;
② The cost of the assets can be measured reliably.
(2) Depreciation methods
||||||
|-|-|-|-|-|
||||Expected net salvage||
|Category of fixed assets|Method|Useful life||Annual deprecation|
||||value||
||Straight-line depreciatio||||
|Housing and building||20-25 years|5-10%|3.8-4.5%|
||n||||
|Machinery equipments|Straight-line depreciation|10 years|5%|9.5%|
|Transportation vehicle|Straight-line depreciation|5 years|5%|19%|
|Electronic and other|||||
||Straight-line depreciation|5 years|5%|19%|
|equipments|||||
|Decoration of fixed|||||
||Straight-line depreciation|5 years|0%|20%|
|assets|||||

Subsequent expenditure related to the fixed assets should accrued into the cost of fixed assets if met with the stipulated reorganization conditions of fixed assets; if not, should accrued directly into the current gains and losses when occurred. The depreciation method adopted by the Company is straight-line method.
The Group will execute reexamine for the service life, estimated net salvage and the depreciation method of the fixed assets after each accounting year. If there was difference between the service life and the original estimated number, should adjust the useful life of the fixed assets; if there was difference between the estimated net salvage and the original estimated number, should adjust the estimated net salvage; if there were significant changes of the realization method of the economic benefits related to the fixed assets, should changes the depreciation method of the fixed assets. The changes of the useful life, estimated net salvage and the depreciation method of the fixed assets should be regarded as the accounting estimate changes.
Impairment of fixed asset refers to accounting policy “Long-term assets impairment” of the Group.
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
The "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards related to the
ownership of an asset. Its ownership may or may not eventually be transferred. The fixed assets by finance lease
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 shall adopt the same depreciation policy for self-owned fixed assets. If it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or its useful life.
17. Construction in progress
(1) The valuation of the construction in progress: recognizes the engineering cost according to the cost actual occurred. The cost of construction in progress also includes the borrowing expenses and exchange gains and losses which should be capitalized.
(2) The Company should transfer the construction in progress into fixes assets when the construction in progress is ready for their intended use. If the built construction had reached the state ready for intended use but had not settled the fixed assets of completion settlement, should recognized as fixed assets according to the estimated value as well withdrew and depreciated; after execute the completion settlement procedure, it should adjust the original provisional estimate value according to the actual cost but not the original withdrew depreciation amount. (3) Impairment of construction in progress refers to accounting policy “Long-term assets impairment” of the Group.
18. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs and capitalization period
The costs of borrowings designated for acquisition or construction of qualifying assets should be capitalized as part of the cost of the assets. Capitalization of borrowing costs starts when
① The capital expenditures have incurred;
② The borrowing costs have incurred;
③ The acquisition and construction activities that are necessary to bring the asset to its expected usable condition have commenced.
Other borrowing costs that do not qualify for capitalization should be expensed off during current period.
Capitalization of borrowing costs should be suspended during periods in which the acquisition or construction is interrupted abnormally, and the interruption period is three months or longer. These borrowing costs should be recognized directly in profit or loss during the current period. However, capitalization of borrowing costs during the suspended periods should continue when the interruption is a necessary part of the process of bringing the asset to working condition for its intended use.
Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed is substantially ready for its intended use. Subsequent borrowing costs should be expensed off during the period in which they are incurred.
The term “assets eligible for capitalization” refers to the fixed assets, investment real estate, inventories and other assets, of which the acquisition and construction or production may take quite a long time to get ready for its intended use or for sale.
(2) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization on that asset is determined as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 borrowing.
To the extent that funds are borrowed generally and used for the purpose of acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applying a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose borrowing. The capitalization rate is the weighted average rate of the general borrowings.
During the period of capitalization, the exchange balance on foreign currency special borrowings shall be capitalized; the exchange balance on foreign currency general borrowings shall be recorded into current profits and losses.
19. Biological assets
Not applicable
20. Oil-gas assets
Not applicable
21. Intangible assets
(1) Pricing method, useful life and impairment test
The term "intangible asset" refers to the identifiable non-monetary assets possessed or controlled by enterprises which have no physical shape.
(1) Recognition of intangible asset:
The Company recognizes an intangible asset when that intangible asset fulfills both of the following conditions:① It is probable that the economic benefits associated with that asset will flow to the Company;
② The cost of that asset can be measured reliably.
(2) Measurement of intangible assets
① An intangible asset is measured initially at its cost.
② Subsequent measurement of intangible assets
A. For an intangible asset with finite useful life, the Company estimates its useful life at the time of acquisition and amortizes it during its useful life in a reasonable and systematic way. The amount of amortization is allocated to relevant costs and expenses according to the nature of beneficial items. The Company does not amortize intangible asset with infinite useful life.
At the end of period, the Group shall check the service life and amortization method of intangible assets with finite service life, if there is any change, it shall be regarded as a change of the accounting estimates. Besides, the Group shall check the service life of intangible assets without certain service life, if there is any evidence showing that the period of intangible assets to bring the economic benefits to the enterprise can be prospected, it shall be estimated the service life and amortized in accordance with the amortization policies for intangible assets with finite service life.
B. Impairment of the intangible assets should be executed according to the accounting policies of “Long-term assets impairment” formulated by the Group.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Accounting polices of internal R& D expenses
Not applicable
22. Impairment of long-term assets
Following indications indicate that there occurs the impairment:
(1) The current market price of the assets greatly decreased with the range of a price drop obviously higher than the estimated decline owning to the passage of time or the normal employ.
(2) The environment the economy, technology and laws of the Group involved, and the market the assets involved, if there are significant changes occur in the current period or in recent period, would cause harmful influences on the Group.
(3) The market interests rate or other market investment return rate had improved in the current period, thus influenced and the discount rate for calculating the estimated current value of the future cash flow of the assets by the enterprises, which would led to the sharply decrease of the recoverable amount.
(4) There are evidences indicate the assets are of obsolescence or the entity had been damaged.
(5) The assets had been or will be left unused, cease using or planed to dispose in advance.
(6) The evidence of the internal report of the Group indicant that the economy performance had been lower or would be lower than estimations, for example, the net cash flow or the operation profits (or losses) realized were far lower than the estimated amount etc.
(7) Other assets indicate there are indications there occurs the impairment.
The Group judges each assets such as the long-term equity investment, fixed assets, engineering materials, intangible assets (except for those with uncertain usage life) which adapt to the No. 8 of ASBE-Assets Impairment on the balance sheet date and executes the recover by impairment test-estimations when there are impairment indications. The recoverable amount is recognized through the fair value of the assets which minus the higher one between the net amount after disposal and the current value of the assets estimated future cash flow. If the recoverable amount lower than the book value of the assets, the book value should be written down as the recoverable amount with the written-down amount be recognized as the assets impairment losses and included in the current gains and losses and at the same time withdraw the assets impairment provision.
If there are indications indicate any asset occur impairment, the Group usually estimates its recoverable amount base on the individual asset. If it is difficult to estimate the recoverable amount of the individual asset, which asset group it belongs to should be recognized the recoverable amount base on the asset group.
The asset group is the smallest asset group that could be recognized by the Group, and its cash inflow is basically independent of other asset or asset group. The asset group is composed by the relevant assets which create the cash inflow. The recognition of the asset group is based on whether the main cash inflow caused by the asset group is independent of the cash inflow of the other assets or the asset group.
The Group executes the impairment test every year on the goodwill formed by the enterprise combination and the intangible assets with uncertain service life no mater there are impairment indications or not. The impairment test of the goodwill is executed by combining with the relevant asset group or the asset group combination.
Once the assert impairment losses had been recognized, should not be reversed in the accounting period afterwards.
23. Amortization method of long-term deferred expenses
The Company recognizes all expenses which have occurred during the period but shall be amortized beyond one
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 year, such as improvement expenditures of operating leased fixed assets, as long-term deferred expenses. The Company amortizes long-term deferred expenses using straight-line method according to relevant beneficial periods.
24. Payroll
(1) Accounting treatment of short-term compensation
Employee compensation refers to the reward or compensation of various modes provided by the Group which wants to receive the service offering by the employees or to execute the release of the labor relationship. The employee compensation including the short-term salary, departure benefits, demission benefits and other long-term employee benefits. The Group provides the benefits for the spouses, children, supported families of the employees, the members of thedeceased’s employees and other beneficiaries, which are also employee compensations.
The short-term compensation actually happened during the accounting period when the active staff offering the service for the Group should be recognized as liabilities and is included in the current gains and losses or relevant assets cost except for those be required or permitted to included in the assets cost by other ASBE.
(2) Accounting treatment of the welfare after demission
The Group divides the departure benefits plan into defined contribution plans and defined benefit plans. Benefits plan of after demission refer to the agreement between the Group and employees on the departure benefits, or the regulations or methods formulated by the Group for providing welfares after demission for the employees. Of which, defined contribution plans refers to the departure benefits plan that the Group no more undertake the further payment obligations after the payment and deposit of the fixed expenses for the independent funds; defined benefit plans refers to the departure benefits plan except for the defined contribution plans.
A. Defined contribution plans
During the accounting period when providing the service for the employees, the Group will recognize the deposited amount as the liabilities which measured by defined contribution plans and include in the current gains and losses or the relevant assets cost.
B. Defined benefit plans
Other long-term employee benefits the Group had not executed the defined contribution plans or met with the conditions of defined benefit plans.
(3) Accounting treatment of the demission welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal, or when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission welfare, should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.
(4) Accounting treatment of the welfare of the long-term employees
The Group provides the other long-term employee benefits for the employees, and for those met with the defined contribution plans, should be disposed according to the above accounting polices of the defined contribution plans;
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 the for the others except for the former, should be recognized according to above accounting polices of the defined benefit plans and measure the net liabilities or net assets of other long-term employee benefits.
25. Estimated liabilities
(1) Recognition criteria of estimated liabilities
The company should recognize the related obligation as a provision for liability when the obligation meets the following conditions:
① That obligation is a present obligation of the enterprise;
② It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;③ A reliable estimate can be made of the amount of the obligation.
(2) Measurement of estimated liabilities
To fulfill the present obligations, which initially measured by the best estimate of the expenditure required to settle the liability. Where there is a continuous range of possible amounts of the expenditure required to settle the liability, as all kinds of possibilities are at same level, the best estimate should be determined according to the average of the lower and upper limit of the range. In other cases, the best estimate should be determined in accordance with the following methods:
① Where the contingency involves a single item, the best estimate involves a singe item, the best estimate should be determined according to the most likely outcome;
② Where the contingency involves several items; The best estimate should be determined by weighting all possible outcomes by their associated probabilities of occurrence.
To determine the best estimate, it should be considered with factors such as: related contingency risks, uncertain matters and time value of currency. If time value of currency has a significant impact, the best estimate should be measured at its converted present value through the relevant future cash outflows.
Where some or all of the expenditures are expected to be reimbursed by a third party, the reimbursement should be separately recognized as an asset only when it is virtually received. The amount of the reimbursement should not exceed the carrying amount of the liability recognized.
At balance sheet date, the Group should review book value of provision for liabilities. If there is strong evidence that the book value does not truly indicate the current best estimate, it should be adjusted in accordance with the current best estimate.
26. Share-based payment
Not applicable
27. Other financial instruments such as preferred shares and perpetual capital securities
Not applicable
28. Revenue
The revenue of the Group including the commodities sales revenue, labor revenues and revenues from assets use right abalienation.
1. Commodities sales revenues
No revenue from selling goods may be recognized unless the following conditions are met simultaneously and
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 the significant risks and rewards of ownership of the goods have been transferred to the buyer by the enterprise; the enterprise retains neither continuous management right that usually keeps relation with the ownership nor effective control over the sold goods; the revenue amount, the related cost occurred or will occur could be reliable measured and when the relevant economic benefits probably flow into the enterprises, should confirm the commodities sales revenues.
The commodities sales revenues of the Group mainly are the sales revenues from the commercial residential buildings. Revenue from the sale of properties is recognized upon final acceptance of the construction of property is completed and the property is transferred to buyer, or regard which as transferred to buyer according to the sales contracts and receives and accepts all considerations of sale of property (down payment and mortgage received from bank for property purchasing by installments).
2. Labor revenues
The labor revenues of the Group mainly are property management revenues, engineering supervision service revenues and catering service revenues.
Property management revenues: the Group recognizes the property management revenues when the services had provided as well as the charges of which could flow in the enterprises according to the aggrement with the proprietors.
Other labor revenues: the Group recognizes the labor revenues when the services had provided as well as the economic benefits related to which could flow in the enterprises and the relevant cost could be reliable measured. 3. Revenues from assets use right abalienation
The revenues from assets use right abalienation of the Group including property rental, taxi passenger revenues, interests revenues and revenues from other use right and so on.
Property rental: the Group recognizes the property rental by straight line method according to the rental contrast signed with the lessees or the promises from the agreement. When the leasers provide rent-free period, they should execute the distribution of the total rental amount according to the straight line method or other reasonable methods during the whole lease term without deducting the rent-free period and during the rent-free period, the leasers should recognize the rental revenues.
Taxi passenger revenues: the Group recognizes the taxi passenger revenues according to the contract agreement signed with the contractors or the contract amount agreed from the protocol agreement.
Interests revenues: the Group recognizes which accoridng to the calculation from the time when others using the cash of the Company and the applicable rates with the royalty revenues be recognized accoridng to the calculation of the chargeable time and the methods from the contracts or the protocol agreement.
Revenues from other use right: the Group recognizes the revenues from assets use right abalienation when the revenues amount could be reliable measured and the related economic benefits probably flow in the enterprises. 29. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government subsidies divides into the government subsidies related to the assets and the government subsidies related to the profits. The government subsidies pertinent to assets mean the government assets that are obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016② The grants will be received from government.
(2) Calculation of the government subsidies:
① If monetary grants are received, it recognized at actual received or receivable amount. If non-monetary grants are received, it recognized at fair value, replacing with nominal amount while fair value is not reliable.
② The Capital approach for government grants, the grant is recognized as deferred income when it is acquired. Since the related assets achieve its intended using status, the deferred income is amortized and recognized in profit and loss duringasset’s using period. If related assets were disposed before using period ended, undistributed deferred income shall be shift to current profit and loss at once.
The Income approach for government grants, to retrieve expense or loss of the Company in further period, the government grants is recognized as deferred income, and shall be recorded in profit and loss when that expense or loss occurred. To retrieve expense or loss of the Company in current period, the government grants shall be recorded directly in current profit and loss.
③ Confirmed repayment of government grants according to the following circumstances respectively:
A. When deferred income exists, the repayment write-downs closing balance of deferred income, and the exceed part shall be recognized in current profit and loss;
B. When no deferred income exists, the repayment shall be recognized directly in current profit and loss.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The government subsidies divides into the government subsidies related to the assets and the government subsidies related to the profits. The government subsidies pertinent to income refer to all the government subsides except those pertinent to assets. If the government subsidies documents had not definitely confirm the subsidy targets, the Group should divide them as the government subsidies related to profits except for those be indicated by the clear evidence that belongs to the government subsidies related to assets.
(1) Recognition of the government subsidies
If the government subsidies meet with the following conditions at the same, should be recognized:
① The entity will comply with the condition attaching to them;
② The grants will be received from government.
(2) Calculation of the government subsidies:
① If monetary grants are received, it recognized at actual received or receivable amount. If non-monetary grants are received, it recognized at fair value, replacing with nominal amount while fair value is not reliable.
② The Capital approach for government grants, the grant is recognized as deferred income when it is acquired. Since the related assets achieve its intended using status, the deferred income is amortized and recognized in profit and loss duringasset’s using period. If related assets were disposed before using period ended, undistributed deferred income shall be shift to current profit and loss at once.
The Income approach for government grants, to retrieve expense or loss of the Company in further period, the government grants is recognized as deferred income, and shall be recorded in profit and loss when that expense or loss occurred. To retrieve expense or loss of the Company in current period, the government grants shall be recorded directly in current profit and loss.
③ Confirmed repayment of government grants according to the following circumstances respectively:
A. When deferred income exists, the repayment write-downs closing balance of deferred income, and the exceed part shall be recognized in current profit and loss;
B. When no deferred income exists, the repayment shall be recognized directly in current profit and loss.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 30. Deferred income tax assets/deferred income tax liabilities
The Company executes the accounting treatments of the income tax by adopting the balance sheet liability method. (1) Deferred income tax assets
① Where there are deductible temporary differences between the carrying amount of assets or liabilities in the balance sheet and their tax bases, a deferred tax asset shall be recognized for all those deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. Deferred tax assets arising from deductible temporary differences should be measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled.
② At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shall be recognized.
③ The Company assesses the carrying amount of deferred tax asset at the balance sheet date. Ifit’s probable that sufficient taxable profit will not be available against which the deductible temporary difference can be utilized, the Company shall write down the carrying amount of deferred tax asset, or reverse the amount written down later whenit’s probable that sufficient taxable profit will be available.
(2) Deferred income tax liabilities
A deferred tax liability shall be recognized for all taxable temporary differences, which are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, and measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled.
31. Lease
(1) Accounting treatment of operating lease
Lessee in an operating lease shall treat the lease payment under an operating lease as a relevant asset cost or the current profit or loss on a straight-line basis over the lease term. The initial direct costs incurred shall be recognized as the current profit or loss; Contingent rents shall be charged as expenses in the periods in which they are incurred.
Lessors in an operating lease shall present the assets subject to operating leases in the relevant items of their balance sheet according to the nature of the asset. Lease income from operating leases shall be recognized as the current profit or loss on a straight-line basis over the lease term; Initial direct costs incurred by lessors shall be recognized as the current profit or loss; Lessors shall apply the depreciation policy for the similar assets to depreciate the fixed assets in the operating lease; For other assets in the operating lease , lessors shall adopt a reasonable systematical method to amortize; Contingent rents shall be charged as expenses in the periods in which they are incurred.
(2) Accounting treatments of financial lease
For the lessee, a fixed asset acquired under finance lease shall be valued at the lower of the fair value of the leased asset and the present value of the minimum lease payments at the inception of lease. The minimum lease payments as the entering value in long-term account payable, the difference as unrecognized financing charges; The initial direct costs identified as directly attributable to activities performed by the lessee during the
negotiation and signing of the finance lease such as handling fees, legal fees, travel expenses, stamp tax shall be
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 counted as lease asset value; the unrecognized financing charges shall be apportioned at each period during the lease term and adopt the effective interest rate method to calculate and confirm the current financing charge; Contingent rents shall be charged as expenses in the periods in which they are incurred.
When the lessee calculates the present value of the minimum lease payments, for that lessee who can obtain the interest rate implicit in the lease, the discount rate shall be the interest rate implicit in the lease; otherwise the discount rate shall adopt the interest rate specified in the lease agreement. If the lessee can not get the interest rate implicit in the lease and there is no specified interest rate in the lease agreement, the discount rate shall adopt the current bank loan interest rate.
Lessees shall depreciate the leased assets with the depreciation policy which is consistent with the normal depreciation policy for similar assets. If there is reasonable certainty that the lessee will obtain ownership by the end of the lease term, the depreciation shall be allocated to the useful life of the asset. If there is no reasonably certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be depreciated over the shorter of the lease term and its useful life.
On the initial date of financial lease, lessee of the financial lease shall record the sum of the minimum lease payments and initial direct costs as the financing lease accounts receivable, and also record the non-guaranteed residual value; recognize the difference between the total minimum lease payments , initial direct costs, non-guaranteed residual value and sum of the present value as the unrealized financing income; the unrealized financing income shall be distributed to each period over the lease term; adopt the actual interest rate to calculate the current financial income; Contingent rents shall be charged as expenses in the periods in which they are incurred.
32. Other significant accounting policies and estimates
(1) Measurement of fair value
Fair value refers to the price received from selling any asset or paid for transferring any liability in the orderly transactions that occur on the measurement date of the market participants. The Group should consider the characteristics of the assets or liabilities when measuring the relevant assets or liabilities by fair value; to suppose the transactions of selling or transferring the assets on the measurement date by the market participants is the orderly transactions under the conditions of the current market; to suppose the orderly transaction of selling or transferring the assets is executing in the market of the relevant assets or liabilities; to suppose the transaction is executing in the most favorable market of the relevant assets or liabilities if there is no any main market. The Group adopts the conjecture used when pricing the assets or liabilities for realizing the maximum of the economy benefits by the market participants.
The Group judges the fair value of initial recognition whether is equal to the transaction price according to the characterisitics of the relevant assest or liabilities with transaction nature etc.; if the transaction price and fair value is not equal, should include the relevant gains or losses in the current gains and losses except for those stipulated by other relevant ASBE.
The Group adopts the assessment technology which adapt to the current conditions with sufficient available data and other information support, and the assessment technology mainly including the market method, equity method and cost method. In the application of the assessment technology, the Group should prefer the relevant observable input value and only when the relevant observable input value could not be required or required the not feasible value, could use the not observable input value.
The input value used for the fair value measurement is divided into three levels and the first level of the input value is initially used, then come to the second level and the third one the last. The first level input value is the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 quotation acquired from the active market of the same assets or liabilities that had not be adjusted; the second input value is the input value could be directly or indirectly observed of the relevant assets or liabilities except for the first level input value; the third level input value is the not observable input value of the relevant assets or liabilities.
The Group measures the non-financial assets by fair value by considering the ability of the market participants when using the assets for the best purpose for causing the economy benefits or the ability to sell the assets to the other market participants which can use them with the best purpose for causing the economy benefits. The Group supposes to transfer the liabilities to other market participants on the measurement date and the liabilities would be continue to exist after the transfer as well as to be as the market participants of the transfees to execute the obligation when measuring the liabilities by fair value. The Group supposes to transfer the self equity instruments to other market participants on the measurement date and the self equity instruments would be continue to exist after the transfer as well as to acquire the relevant rights and to undertake the relevant obligations as the market participants of the transfees.
(2) Operation termination
Operation termination refers to the compose part that meet with one of the following conditions which had been disposed by the Group or be classified to held-to-sold as well as could be individually distinguished in operating and compiling the financial statement:① the compose part represents an individual main business or a main operation area;② the compose part is a part intends to dispose and plan an individual main business or a main operation area;③ the compose part is a subsidiary which be acquired only for resold.
(3) Segmental report
The Group recognizes the operating segments according to the internal organization structure, the management requirements and the internal report system and recognizes the reporting segments and discloses the segmental information according base on the operating segments.
Operating segments refer to the compose parts of the Group which meet with the following conditions at the same time: (1) the compose part could cause revenues and expenses in the daily activities; (2) the management layer could periodically evaluate the operation results of the compose part and base which to distribute the resources and evaluate the performance;(3) the Group could acquire the relevant accounting information of the financial conditions, operation results and the cash flows of the compose part. If two or more operating segments own the similar economy characteristics and meet with certain conditions, could be combining as an operating segment. (4) Quality margin
According to the regulations of the construction contract, the quality margin paid for the construction organizations should be detentioned and be included in the “accounts receivable” as well as to realize the payment accoridng to the actual situation of the contract agreement after the guarantee period.
(5) Maintenance funds
The property management company of the Group received the public maintenance fund which be entrusted for management by the proprietors and had be included in the “other non-current liabilities” that was specific used in the maintenance and renewal of the residential common areas, shared devices as well as the communal facilities of the property management area.
33. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable√ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Change of main accounting estimates
□ Applicable√ Not applicable
34. Other
Not applicable
VI. Taxation
1. Main taxes and tax rate
||||
|-|-|-|
|Category of taxes|Tax basis|Tax rate|
|VAT|Operating revenue|3%, 5%, 6%, 11%, 17%|
|Business tax|Operating revenue|3%, 5%|
|Urban maintenance and construction tax|Turnover tax payable|1%, 7%|
|Enterprise income tax|Taxable income|15%, 16.5%, 20%, 25%|
|Education surtax|Turnover tax payable|3%|
|Local education surtax|Turnover tax payable|2%|
|Levee fee|Operating revenue|0.01%|
||Added amount from transfer of real|Four progressive levels with the tax rate|
|Land value appreciation tax|||
||property|ranging from 30% to 60%|

Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
|||
|-|-|
|Name|Income tax rate|
|Chongqing Shenzhen INTERNATIONAL TRADE CENTER||
||15%|
|Property Management Co., Ltd.||
|Chongqing Aobo Elevator Co., Ltd.|20%|
|Subsidiaries registered in Hong Kong|16.5%|
|Other taxpaying bodies among the consolidated scope|25%|

2. Tax preference
According to the regulations of No. 2, Property Service of No. 37, Commercial Service among the encouraging category of the Guidance Catalogue of Industry Structure Adjustment (Y2011), the western industry met with the conditions should be collected the corporate income tax according to15% of the tax rate. The subsidiary of the Group Chongqing Shenzhen INTERNATIONAL TRADE CENTER Property Management Co., Ltd. had be regarded as the western enterprise of the property service by Local Taxation Bureau of Chongqing Jiulong District
on 4 May 2014, and had be collected the corporate income tax according to15% of the tax rate.
According to the regulations of the Notice of the Small Profit-making Enterprise Income Tax Preferential Policies
(CS[2015] No. 34) of the SAT, from 1 January 2015 to 31 December 2017, as for those small low-profit
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 enterprises whose amount of the taxable annual income lower than RMB0.2 million (including RMB0.2 million), their revenues should be included in the taxable income according to50% of the income, and pay the corporate income tax according to20% of the tax rate. And the subsidiary of the Group, Chongqing Aobo Elevator Co., Ltd. applicable for the policy since 2015 and had be collected taxable income according to50% as well as be collected the corporate income tax according to20% of the tax rate.
3. Other explanation
Not applicable
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Cash on hand|299,819.32|208,170.99|
|Bank deposits|2,114,647,115.64|930,987,796.17|
|Other monetary funds|13,511,200.72|14,544,008.61|
|Total|2,128,458,135.68|945,739,975.77|
|Of which: the total amount deposited|||
||51,648,185.82|50,515,270.67|
|overseas|||

Other notes
The total L/G cash deposit with use restriction at the period-end was of RMB12,402,160.00 (presented among other monetary funds), which was the margin paid by the subsidiary of the Company Dongguan International Trade Changsheng Real Estate Development Co., Ltd. for entrusting the commercial bank to issue the Commercial Residential Building Quality Guarantee Letter. The subsidiary of the Company Dongguan International Trade Changsheng Real Estate Development Co., Ltd. should submit the commercial residential building quality guarantee letter after the occurrence of the liquidation situation such as the enterprise bankruptcy and dissolution when managing the pre-sale permit application of the commercial residential building owning to it belonged to the real estate development enterprise with provisional qualification. The letter was the irrevocable commercial residential building quality guarantee letter, of which the guarantee period of RMB1,468,870.00 lasts from 30 June 2015 to 31 December 2020 with the remained RMB10,933,290.00 from 1 July 2015 to 31 December 2020.
2. Financial assets measured by fair value and the changes be included in the current gains and losses Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other notes:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 3. Derivative financial assets
□ Applicable√ Not applicable
4. Notes receivable
(1) Notes receivable listed by category
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

(2) Notes receivable pledged by the Company at the period-end
Unit: RMB
|||
|-|-|
|Item|Amount|

(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the period-end
Unit: RMB
||||
|-|-|-|
||Amount of recognition termination at the|Amount of not terminated recognition at|
|Item|||
||period-end|the period-end|

(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
Unit: RMB
|||
|-|-|
||Amount of the notes transferred to accounts receivable at theperiod-end|
|Item||

Other notes
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|||||Withdrawalproportion|||||||
|Category|||||Book||||||
|||Proportio|||||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n|||||n||proportion||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Accounts receivable||||,100.00%|||||||
|with significant|||||||||||
||102,216,||102,216|||102,216||102,216,1|||
|single amount with||69.26%|||0.00||70.30%||100.00%|0.00|
||173.89||173.89|||,173.89||73.89|||
|bad debt provision|||||||||||
|separately accrued|||||||||||
|Accounts receivable||||5.80%|||||||
|withdrawn bad debt|||||||||||
||43,484,4||2,522,35||40,962,13|41,288,||2,516,360||38,772,146.|
|provision according||29.46%|||||28.40%||6.09%||
||86.78||3.46||3.32|506.76||.35||41|
|to credit risks|||||||||||
|characteristics|||||||||||
|Accounts receivable||||100.00%|||||||
|with insignificant|||||||||||
|single amount for|1,884,02||1,884,02|||1,884,0||1,884,022|||
|||1.28%|||0.00||1.30%||100.00%|0.00|
|which bad debt|2.38||2.38|||22.38||.38|||
|provision separately|||||||||||
|accrued|||||||||||
||147,584,||106,622|,72.24%|40,962,133.32|145,388||106,616,5||38,772,146.41|
|Total||100.00%|||||100.00%||73.33%||
||683.05||549.73|||,703.03||56.62|||

 Accounts receivable with significant single amount for which bad debt provision separately accrued at theperiod-end：
√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Accounts receivable|Closing balance||||
|(classified by units)|Accounts receivable|Bad debt provision|Proportion|Reason|
|||||Involved in lawsuit and|
|Shenzhen Jiyong||||no executable property|
|Properties & Resources|93,811,328.05|93,811,328.05|100.00%|and see Notes XIV. 2 of|
|Development Company||||Section IX. Financial|
|||||Report|
|Shenzhen Tewei Industry||||Uncollectible for a long|
||2,836,561.00|2,836,561.00|100.00%||
|Co., Ltd.||||period|
|||||Poor operating|
|Shenzhen Lunan Industry|||||
||2,818,284.84|2,818,284.84|100.00%|conditions, uncollectible|
|Development Co., Ltd.|||||
|||||for a long period|
|||||Uncollectible for a long|
|Zhou Tanjin|2,750,000.00|2,750,000.00|100.00%||
|||||period|
|Total|102,216,173.89|102,216,173.89|--|--|

In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Not applicable
Unit: RMB
|||
|-|-|
|Aging|Closing balance|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
||Accounts receivable|Bad debt provision|Withdrawal proportion|
|Subitem within 1 year||||
|Within 1 year (including 1 year)|39,673,776.25|1,190,213.29|3.00%|
|Subtotal within 1 year|39,673,776.25|1,190,213.29|3.00%|
|1 to 2 years|1,853,591.29|185,359.13|10.00%|
|2 to 3 years|1,051,523.97|315,457.19|30.00%|
|Over 3 years|128,355.13|64,177.57|50.00%|
|3 to 4 years|50,469.31|40,375.45|80.00%|
|4 to 5 years|726,770.83|726,770.83|100.00%|
|Over 5 years|43,484,486.78|2,522,353.45|5.80%|

 Notes of the basis of recognizing the group:
The basic of recognizing the group refer to Notes V. 11 of Section IX. Financial Report.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
Not applicable
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB5,993.11 the amount of the reversed or collected part during the Reporting Period was of RMB0.00.
Of which the significant amount of the reversed or collected part during the Reporting Period was of:
Unit: RMB
||||
|-|-|-|
|Name of the units|Reversed or collected amount|Method|
|Total|0.00|--|

(3) The actual write-off accounts receivable
Unit: RMB
|||
|-|-|
|Item|Amount|

Of which the significant actual write-off accounts receivable:
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the units|Nature|Amount|Reason|Process|from the related|
||||||transactions|
|Total|--|0.00|--|--|--|

Notes of the write-off the accounts receivable:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 There was no write-off the accounts receivable.
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
||||
|-|-|-|
|Name of units|Closing balance|Proportion of the total yearend balance of the accountsreceivable (%)|
|Shenzhen Jiyong Properties & ResourcesDevelopment Company|93,811,328.05|63.56|
|Huawei Technologies Co., Ltd.|5,473,521.31|3.71|
|Shenzhen Tewei Industry Co., Ltd.|2,836,561.00|1.92|
|Alibaba (China) Co., Ltd.|2,833,643.05|1.92|
|Shenzhen Lunan Industry DevelopmentCo., Ltd.|2,818,284.84|1.91|
|Total|107,773,338.25|73.02|

(5) Account receivable which terminate the recognition owning to the transfer of the financial assets Not applicable
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Not applicable
Other notes:
Not applicable
6. Prepayment
(1) List by aging analysis:
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|||||
||Amount|Proportion|Amount|Proportion|
|Within 1 year|181,654,620.49|93.92%|20,734,383.56|72.97%|
|1 to 2 years|4,188,912.57|2.17%|6,602,570.30|23.24%|
|2 to 3 years|6,694,900.30|3.46%|1,070,523.28|3.77%|
|Over 3 years|877,110.39|0.45%|8,256.29|0.03%|
|Total|193,415,543.75|--|28,415,733.43|--|

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 No such cases.
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
|||
|-|-|
|Name of the unit|Closing balance|
|Prepayment of taxes|180,730,158.63|
|Prepayment of social security charges in buildingindustry|7,502,167.95|
|SHANGHAI MITSUBISHI ELEVATOR CO. LTD|2,028,500.00|
|Zhanjiang West Guangdong ConstructionEngineering Co., Ltd.|900,000.00|
|BYD Auto Sales Co., Ltd.|591,600.00|
|Total|191,752,426.58|

Other notes:
Notes 1: the surpluses of the withholding tax of the Company were of unearned revenues of the real estate projects not reached the recognition conditions and were the taxes such as the business tax, city building duty and education Surcharged as well as the land value increment tax pre-paid according to the relevant regulations. Notes 2: Social security charges in building industry refer to the social security expenses the construction enterprises pay for the employees such as the endowment insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance (including Individual pay part). Take the engineering project as unit, to execute the unified payment standard, to collect uniformly from the construction units and uniformly settled by the construction enterprises.
7. Interest receivable
(1) Category of interest receivable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

(2) Significant overdue interest
||||||
|-|-|-|-|-|
|||||Whether occurred|
|Borrower|Closing balance|Overdue time|Reason|impairment and its|
|||||judgment basis|

 Other notes:
Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 8. Dividend receivable
(1) Dividend receivable
Unit: RMB
||||
|-|-|-|
|Item (or investees)|Closing balance|Opening balance|

(2) Significant dividend receivable aged over 1 year
Unit: RMB
||||||
|-|-|-|-|-|
|||||Whether occurred|
|Item (or investees)|Closing balance|Aging|Reason|impairment and its|
|||||judgment basis|

 Other notes:
Not applicable
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|||||Withdra|||||||
|Category|||||Book||||||
|||Proportio||wal|||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n||proportio|||n||proportion||
|||||n|||||||
|Accounts receivable|||||||||||
|with significant|||||||||||
||87,414,5||87,414,5|||90,718,||87,150,31||3,568,421.2|
|single amount with||71.63%||100.00%|0.00||75.46%||96.07%||
||09.92||09.92|||739.20||7.92||8|
|bad debt provision|||||||||||
|separately accrued|||||||||||
|Accounts receivable|||||||||||
|withdrawn bad debt|||||||||||
||24,930,1||11,206,0||13,724,08|19,789,||11,738,34||8,051,082.1|
|provision according||20.43%||44.95%|||16.46%||59.32%||
||20.41||38.78||1.63|422.31||0.12||9|
|to credit risks|||||||||||
|characteristics|||||||||||
|Accounts receivable|||||||||||
|with insignificant|||||||||||
||9,699,53||9,699,53|||9,711,2||9,711,262|||
|single amount for||7.95%||100.00%|0.00||8.08%||100.00%|0.00|
||3.34||3.34|||62.51||.51|||
|which bad debt|||||||||||
|provision separately|||||||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|accrued|||||||||||
||122,044,||108,320|,88.75%4|13,724,081.63|120,219||108,599,9|90.33%|11,619,503.47|
|Total||100.00%|||||100.00%||||
||163.67||082.0|||,424.02||20.55|||

 Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end√Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Other accounts|Closing balance||||
|receivable (classified by|Other accounts||||
|||Bad debt provision|Withdrawal proportion|Reason|
|units)|receivable||||
|||||There was no|
|Gintian Industry (Group)||||compensation assets|
||53,031,578.72|53,031,578.72|100.00%||
|Co., Ltd||||according to the readjust|
|||||plan of the debtors|
|Anhui Nanpeng||||Unrecoverable for a long|
||8,311,904.00|8,311,904.00|100.00%||
|Papermaking Co., Ltd||||term|
|Shenzhen Shengfenglu,|||||
|INTERNATIONAL||||No executable finance|
||6,481,353.60|6,481,353.60|100.00%||
|TRADE CENTER Jewel||||and difficult to recover|
|& Gold Co., Ltd|||||
|Shanghai Yutong Real|||||
|||||Difficult to recover the|
|estate development Co.,|5,676,000.00|5,676,000.00|100.00%||
|||||lawsuit judgment|
|Ltd|||||
|||||Unrecoverable for a long|
|Wuliangye Restaurant|5,523,057.70|5,523,057.70|100.00%||
|||||term|
|Hong Kong Yueheng||||Unrecoverable for a long|
||3,271,837.78|3,271,837.78|100.00%||
|Development Co., Ltd||||term|
|Dameisha Tourism||||Projects construction ce|
||2,576,445.69|2,576,445.69|100.00%||
|Center||||ased|
|||||Projects construction|
|Elevated Train Project|2,542,332.43|2,542,332.43|100.00%||
|||||ceased|
|Total|87,414,509.92|87,414,509.92|--|--|

In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable□ Not applicable
Unit: RMB
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Other accounts receivable|Bad debt provision|Withdrawal proportion|
|Subitem within 1 year||||
|Within 1 year (including 1 year)|11,213,953.97|336,418.62|3.00%|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|Subtotal within 1 year|11,213,953.97|336,418.62|3.00%|
|1 to 2 years|1,593,545.44|159,354.54|10.00%|
|2 to 3 years|1,505,725.84|451,717.75|30.00%|
|Over 3 years|627,608.36|313,804.18|50.00%|
|3 to 4 years|222,715.55|178,172.44|80.00%|
|4 to 5 years|9,766,571.25|9,766,571.25|100.00%|
|Over 5 years|24,930,120.41|11,206,038.78|44.95%|

 Notes of the basis of recognizing the group:
The basis recognizing the group refer to Notes V. 11 of Section IX. Financial Report.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable√ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-533,401.79; the amount of the reversed or collected part during the Reporting Period was of RMB11,729.17.
Of which the significant amount of the reversed or collected part during the Reporting Period was of:
Unit: RMB
||||
|-|-|-|
|Name of units|Reversed or collected amount|Method|
|Paying service account|11,729.17|Collected the cash|
|Total|11,729.17|--|

The withdrawn amount of the bad debt provision was of RMB-533,401.79 during the Reporting Period; the increased bad debt provision amount of the translation of the exchange rate of the withdrawn bad debt provision of the foreign claimable assets receivable and the translation of the foreign currency statement was of RMB265,292.45; and the reversed or collected amount of the bad debt provision was of RMB11,729.17.
(3) The actual write-off other accounts receivable
Unit: RMB
|||
|-|-|
|Item|Amount|

Of which the significant write-off other accounts receivable:
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of units|Nature|Amount|Reason|Process|from the related|
||||||transactions|
|Total|--|0.00|--|--|--|

Notes of write-off other accounts receivable:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 There was no write-off other accounts receivable.
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB
||||
|-|-|-|
|Nature|Closing book balance|Opening book balance|
|Margin|11,379,608.70|12,540,024.90|
|Pretty cash borrowing|1,632,916.04|772,557.45|
|Accounts receivable of the related|||
||10,969,128.65|10,704,936.65|
|companies|||
|Accounts receivable of the non-related|||
||98,062,510.28|96,201,905.02|
|companies|||
|Total|122,044,163.67|120,219,424.02|

 (5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
|||||total year end||
||||||Closing balance of|
|Name of units|Nature|Closing balance|Aging|balance of the||
||||||bad debt provision|
|||||accounts receivable||
|||||(%)||
||Accounts receivable|||||
|Gintian Industry||||||
||of the non-related|53,031,578.72|Over 5 years|43.45%|53,031,578.72|
|(Group) Co., Ltd||||||
||companies|||||
|Anhui Nanpeng||||||
||Accounts receivable|||||
|Papermaking Co.,||8,311,904.00|Over 5 years|6.81%|8,311,904.00|
||of the related parties|||||
|Ltd||||||
|Shenzhen||||||
|Shengfenglu,||||||
||Accounts receivable|||||
|INTERNATIONAL||||||
||of the non-related|6,481,353.60|Over 5 years|5.31%|6,481,353.60|
|TRADE CENTER||||||
||companies|||||
|Jewel & Gold Co.,||||||
|Ltd||||||
|Shanghai Yutong||||||
||Accounts receivable|||||
|Real estate||||||
||of the non-related|5,676,000.00|Over 5 years|4.65%|5,676,000.00|
|development Co.,||||||
||companies|||||
|Ltd||||||
||Accounts receivable|||||
|Wuliangye||||||
||of the non-related|5,523,057.70|Over 5 years|4.53%|5,523,057.70|
|Restaurant||||||
||companies|||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|Total|--|79,023,894.02|--|64.75%|79,023,894.02|

 (6) Accounts receivable involved with government subsidies
Unit: RMB
||||||
|-|-|-|-|-|
||Project of government|||Estimated received time,|
|Name of units||Closing balance|Closing age||
||subsidies|||amount and basis|
|Total|--|0.00|--|--|

Not applicable
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Not applicable
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
Not applicable
Other notes:
10. Inventory
(1) Category of inventory
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Falling price|||Falling price||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Raw materials|1,276,641.32|489,227.20|787,414.12|1,602,571.24|529,191.39|1,073,379.85|
|Inventory goods|171,217.25||171,217.25|54,087.62||54,087.62|
|Low-value|||||||
|consumption|434,134.12||434,134.12|116,472.20||116,472.20|
|goods|||||||
|Products to be|||||||
||121,070,697.97|6,648,404.13|114,422,293.84|121,070,697.97|6,648,404.13|114,422,293.84|
|developed|||||||
|Work in progress|2,372,174,980.73|104,287,376.50|2,267,887,604.23|2,135,119,545.31|99,897,376.50|2,035,222,168.81|
|Completed|||||||
||218,444,427.97||218,444,427.97|315,453,876.53||315,453,876.53|
|develop product|||||||
|Total|2,713,572,099.36|111,425,007.83|2,602,147,091.53|2,573,417,250.87|107,074,972.02|2,466,342,278.85|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Falling price reserves of inventory
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Increased amount||Decreased amount|||
|Item|Opening balance|||Reverse or||Closing balance|
|||Withdrawal|Other||Other||
|||||write-off|||
|Raw materials|529,191.39|-39,964.19||||489,227.20|
|Products to be|||||||
||6,648,404.13|||||6,648,404.13|
|developed|||||||
|Work in progress|99,897,376.50|4,390,000.00||||104,287,376.50|
|Total|107,074,972.02|4,350,035.81||||111,425,007.83|

 (3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
The closing balance of the inventory included the total amount of the capitalized borrowings was of RMB85,815,861.19.
(4) Completed unsettled assets formed from the construction contact at the period-end
Unit: RMB
|||
|-|-|
|Item|Amount|
|Accumulative occurred cost|0.00|
|Accumulative recognized gross margin|0.00|
|Less: estimated losses|0.00|
|Amount had executed settlement|0.00|

 Other notes:
List of the inventories:
A. Products to be developed
Item Closing balance
Book balance Falling price provision Book value
Hainan QiongShan land 6,648,404.13 6,648,404.13
Fuchang Phase II Land 5,940,627.11 5,940,627.11
Shenhui Gardern Land 36,824,440.89 36,824,440.89
Shenzhen Properties& Recources• 71,657,225.84 71,657,225.84
Banshanyujing Phase II Land
Total 121,070,697.97 6,648,404.13 114,422,293.84
||||
|-|-|-|
|Item|||
||Book balance|Falling price provision|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Hainan QiongShan land|6,648,404.13|6,648,404.13|
|Fuchang Phase II Land|5,940,627.11||
|Shenhui Gardern Land|36,824,440.89||
|Shenzhen Properties & Recources •Banshanyujing Phase II Land|71,657,225.84||
|Total|121,070,697.97|6,648,404.13|

B. Work in progress
Item Starting Expected Expected total Period-end Year-begin
time completi investment
on time Book balance Capitalized Book balance Capitalized
interest balance interest
balance
517,212,846.33 27,205,315.95
Shenzhen 2011.09 2016.12 645,146,600.00 498,973,613.05 27,205,315.95
Properties&
Resources•
Banshanyuji
ng Phase I
502,858,649.52
Shenzhen 2015.08 2017.08 653,380,000.00 440,834,282.15
Properties&
Resources•
Hupanyujin
g Phase II
529,431,275.11 14,633,486.15
Shenzhen 2014.02 2016.10 799,200,000.00 448,310,252.81 10,944,354.97
Properties&
Resources•
Qianhai
Harbor
Shenzhen
2014.03 2018.12 1,521,400,000.00
159,216,496.12 3,858,872.36
146,379,982.82 3,858,872.36
Properties&
Resources•
Jinling
Holiday
663,455,713.65 30,539,392.65
Shenzhen 2013.10 2016.12 895,230,000.00 600,621,414.48 30,357,575.40
Properties&
Resources•
Songhulang
yuan
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 2,372,174,980.73 76,237,067.11
Total —— 2,135,119,545.31 72,366,118.68
C. Completed developed products
|||||||
|-|-|-|-|-|-|
|Item|Year-beginbalance|Time forcompletion|Increased|Decreased|Closing balance|
|International Trade CenterPlaza|1995.12|7,372,250.95|||7,372,250.95|
|Huangyuyuan|2001.06|790,140.58|||790,140.58|
|Podium Building ofFuchang Building|1999.11|645,532.65|||645,532.65|
|Shenzhen Properties &Resources • Xihua Town|2010.06|692,134.84|||692,134.84|
|Shenzhen Properties &Resources • LangqiaoInternational|2012.12|27,154,592.60|||27,154,592.60|
|Shenzhen Properties &Resources • Caitianyise|2015.06|276,048,491.88||97,202,269.36|178,846,222.52|
|Other items||2,750,733.03|192,820.80||2,943,553.83|
|Total||315,453,876.53|192,820.80|97,202,269.36|218,444,427.97|

11. Assets divided as held-to-sold
Unit: RMB
||||||
|-|-|-|-|-|
||||Estimated disposal||
|Item|Closing book value|Fair value||Estimated disposal time|
||||expense||

Other notes:
Not applicable
12. Non-current assets due within 1 year
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other notes:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Not applicable
13. Other current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|1. House properties receivable of F14, F15|||
||174,382,120.00|174,382,120.00|
|of Longyuan Chuangzhan Building|||
|2. Original value of the assets group held|||
||69,437,140.28|69,437,140.28|
|to distribute to the owners of Hainan Xinda|||
|Impairment provision of the assets|||
|group held to distribute to the owners of|-69,437,140.28|-69,437,140.28|
|Hainan Xinda|||
|3. Original value of the assets group held|||
||6,034,625.03|6,034,625.03|
|to be cancelled after verification|||
|Impairment provision of the assets|||
|group held to be cancelled after|-6,034,625.03|-6,034,625.03|
|verification|||
|Total|174,382,120.00|174,382,120.00|

 Other notes:
Notes 1: See the details of the house properties receivable of F14, F15 of Longyuan Chuangzhan Building to XV. 4. of Section IX. Financial Report.
Notes 2: Assets group held to distribute to the owners of Hainan Xinda were the assets originally calculated from the long-term equity investment and accounts receivable of the Company after the 2014 bankruptcy and liquidation process of the original subsidiary Hainan Xinda Development Corporation and had presented to other circulating assets since Y2014, with the specific assets list as follows:
Original calculated items Original value Impairment provision Net value
||||
|-|-|-|
|Long-term equity investment|20,000,000.00|20,000,000.00|
|Other accounts receivable|49,437,140.28|49,437,140.28|
|Total|69,437,140.28|69,437,140.28|

Up to the period-end, the bankruptcy and liquidation administrator had not discovered any property available for cash of Hainan Xinda Development Corporation and the bankruptcy and liquidation process is under progress. Notes 3: Assets group held to be cancelled after verification were the long-term equity investment and other accounts receivable of the original associated enterprise Shenzhen International Trade Development Co., Ltd. of the Company, and the enterprise had been written-off in April 2015 by the bankruptcy and liquidation administrator. And owning to the verification process remain ed unfinished, the assets above were presented in other circulating assets since Y2015 with the specific assets list as follows:
Original calculated items Original value Impairment provision Net value
||||
|-|-|-|
|Long-term equity investment|3,682,972.55|3,682,972.55|
|Other accounts receivable|2,351,652.48|2,351,652.48|
|Total|6,034,625.03|6,034,625.03|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Book balance|Depreciation|||Depreciation||
||||Book value|Book balance||Book value|
|||reserves|||reserves||
|Available-for-sale equity|36,158,171.08||||||
|||18,089,749.80|18,068,421.28|32,501,237.68|18,001,237.68|14,500,000.00|
|instruments|||||||
|Measured by fair value|3,568,421.28||3,568,421.28||||
|Measured by cost|32,589,749.80|18,089,749.80|14,500,000.00|32,501,237.68|18,001,237.68|14,500,000.00|
|Total|36,158,171.08|18,089,749.80|18,068,421.28|32,501,237.68|18,001,237.68|14,500,000.00|

 (2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB
|||||
|-|-|-|-|
|Category of theavailable-for-salefinancial assets||||
||Available-for-sale equity|Available-for-sale||
||||Total|
||instruments|liabilities instruments||
|Cost of debt||||
|instruments/amortized|3,568,421.28||3,568,421.28|
|cost of debt instruments||||
|Fair value|3,568,421.28||3,568,421.28|
|Varied amount of the fairvalue accumulativelyincluded in othercomprehensive income||||
||||0.00|
|Withdrawn impairmentamount||||
||||0.00|

(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Impairment provision||||Shareholdi|Cash|
||||||||||ng|bonus of|
|Investee|Period-beg||||Period-beg||||proportion|the|
|||Increase|Decrease|Period-end||Increase|Decrease|Period-end|||
||in||||in||||among the|Reporting|
||||||||||investees|Period|
|North|3,465,000.|||3,465,000.|3,465,000.|||3,465,000.|12.66%||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Machinery|00|||00|00|||00|||
|(Group)|||||||||||
|Co., Ltd.|||||||||||
|Guangdon|||||||||||
|g Huayue|||||||||||
||8,780,645.|||8,780,645.|8,780,645.|||8,780,645.|||
|Real|||||||||8.47%||
||20|||20|20|||20|||
|Estate Co.,|||||||||||
|Ltd.|||||||||||
|Shenzhen|||||||||||
|INTERNA|||||||||||
|TIONAL|||||||||||
|TRADE|8,500,000.|||8,500,000.|||||||
||||||||||100.00%||
|CENTER|00|||00|||||||
|Petroleum|||||||||||
|Company|||||||||||
|Limited|||||||||||
|Guangzho|||||||||||
|u|||||||||||
||6,000,000.|||6,000,000.|||||||
|Lishifeng|||||||||30.00%||
||00|||00|||||||
|Automobil|||||||||||
|e Co., Ltd.|||||||||||
|Sanya East|||||||||||
||1,350,000.|||1,350,000.|1,350,000.|||1,350,000.|||
|Travel|||||||||0.28%||
||00|||00|00|||00|||
|Co., Ltd.|||||||||||
|Shenshan|||||||||||
||17,695.09|||17,695.09|17,695.09|||17,695.09|||
|Co., Ltd.|||||||||||
|Macao|||||||||||
|Huashen|||||||||||
||81,339.81|1,640.77||82,980.58|81,339.81|1,640.77||82,980.58|10.00%||
|Enterprise|||||||||||
|Co., Ltd.|||||||||||
|Chongqing|||||||||||
|Guangfa|||||||||||
|Real estate|2,468,143.|||2,517,930.|2,468,143.|||2,517,930.|||
|||49,787.09||||49,787.09|||27.25%||
|developme|72|||81|72|||81|||
|nt Co.,|||||||||||
|Ltd.|||||||||||
|Saipan|1,838,413.|||1,875,498.|1,838,413.|||1,875,498.|||
|||37,084.26||||37,084.26|||30.00%||
|Project|86|||12|86|||12|||
||32,501,237|||32,589,749|18,001,237|||18,089,749|||
|Total||88,512.12|0.00|||88,512.12|0.00||--|0.00|
||.68|||.80|.68|||.80|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (4) Changes of the impairment of the available-for-sale financial assets during the Reporting Period Unit: RMB
||||||
|-|-|-|-|-|
|Category of the|||||
||Available-for-sale equity|Available-for-sale|Foreign currency||
|available-for-sale||||Total|
||instruments|liabilities instruments|statement translation||
|financial assets|||||
|Withdrawn impairment|||||
|balance at the|18,001,237.68|||18,001,237.68|
|period-begin|||||
|Withdrawn during the|||||
||||88,512.12|88,512.12|
|Reporting Period|||||
|Of which: transferred|||||
|from other||||0.00|
|comprehensive income|||||
|Decreased during the|||||
|||||0.00|
|Reporting Period|||||
|Of which: recovered or|||||
|reserved of the fair value||||0.00|
|at the period-end|||||
|Withdrawn impairment|||||
||18,001,237.68|0.00|88,512.12|18,089,749.80|
|balance at the period-end|||||

(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or temporarily fell but not withdrawn the impairment provision
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item of|||||||
||||Falling range of||Withdrawn|Reason of not|
|available-for-sale||Fair value of the||Continued falling|||
||Investment cost||the fair value||amount of|withdrawn the|
|equity||period-end||time (month)|||
||||against the cost||impairment|impairment|
|instruments|||||||
|Total|0.00|0.00|--|--|0.00|--|

 Other notes
Notes 1: The Group measured the equity investment which had no quotation in the active market with the fair value could not be reliable measured by cost as well as no any disposal plan on the relevant equity investment in the foreseeable future.
Notes 2: The Company had not dispatched any personnel to serve in Guangzhou Lishifeng Automobile Co., Ltd., Chongqing Guangfa Housing development Co., Ltd. and Saipan Company, although the share holding proportion was more than20% but lower than50%, it had no any significant influence and be recognized as the available for
sale financial assets according to the cost measurement.
Notes 3: The Company had not dispatched any personnel to serve in Guangzhou Lishifeng Automobile Co., Ltd.,
Chongqing Guangfa Housing development Co., Ltd. and Saipan Company, although the share holding proportion
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 was more than20% but lower than50%, it had no any significant influence and be recognized as the available for sale financial assets according to the cost measurement.
Notes 4: In January 2008, Shenzhen INTERNATIONAL TRADE CENTER Automobile Industry Co., Ltd. and Shenzhen Guanghong Investment Co., Ltd. signed the Operation Contacts of the Gas Station Leasing, which agreed to the leasing the assets and equity as well as the operating management power such as the land of the gas station, refueling tent, operating houses, dormitory and facility instrument of gas station of the Shenzhen INTERNATIONAL TRADE CENTER Petroleum Co., Ltd. (Shenzhen INTERNATIONAL TRADE CENTER Automobile Industry Co., Ltd. held100% equity of it) by Shenzhen Guanghong Investment Co., Ltd. and be operated by the later with the leasing period of 15 years. Since the starting date of the operating and leasing, the Company no more execute the control on Shenzhen INTERNATIONAL TRADE CENTER Petroleum Co., Ltd., and thus no more include it in the scope of the consolidation financial statement accrdoing to the regulations of the ASBE.
Notes 5: During the Reporting Period, the increase of the equity instruments measured by fair value was due to the acquired shares from Gintian Company owning to the debt restructuring of the original Gintian Company and as for the details, please refer to the Notes to events after date of other balance sheet of XV. 4 of Section X. Financial Report of the 2015 Annual Report of the Company.
15. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||

(2) Significant held-to-maturity investment at the period-end
Unit: RMB
||||||
|-|-|-|-|-|
|Bond item|Par value|Nominal interest rate|Actual interest rate|Due date|

 (3) Re-classified held-to-maturity investment during the Reporting Period
Not applicable
Other notes
Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing balance|Opening balance|Discount rate|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|||Bad debt|||Bad debt|Book value|range|
||Book balance||Book value|Book balance||||
|||provision|||provision|||
|Total|0.00|0.00||0.00|0.00||--|

 (2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
Not applicable
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term accounts receivable
Not applicable
Other notes
Not applicable
17. Long-term equity investment
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease||||||||||
||||||||||||Closing|
|||||Gains and|Adjustme|||||||
||||||||Cash|Withdraw|||balance|
|||Additiona||losses|nt of|||||||
||Opening||Reduced|||Changes|bonus or|al of||Closing|of|
|Investees||||||||||||
|||l||recognize|other|||||||
||balance||investmen|||of other|profits|impairme|Other|balance|impairme|
|||investmen||d under|comprehe|||||||
||||t|||equity|announce|nt|||nt|
|||t||the equity|nsive|||||||
||||||||d to issue|provision|||provision|
|||||method|income|||||||
|I. Joint ventures||||||||||||
|Shenzhen||||||||||||
|Jifa||||||||||||
||30,789,34|||879,139.1||||||31,668,48||
|Warehous||||||||||||
||1.98|||4||||||1.12||
|e Co.,||||||||||||
|Ltd.||||||||||||
|Shenzhen||||||||||||
|Tian’an||||||||||||
|Internatio||||||||||||
|nal||||||||||||
||3,736,835|||279,437.1||||||4,016,272||
|Building||||||||||||
||.43|||8||||||.61||
|Property||||||||||||
|Managem||||||||||||
|ent Co.,||||||||||||
|Ltd||||||||||||
|Subtotal|34,526,17|||1,158,576||||||35,684,75||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
||7.41|.32|3.73||
|II. Associated enterprises|||||
|Shenzhen|||||
|Wufang|||||
|Pottery &|18,983,61||18,983,61|18,983,61|
|Porcelain|4.14||4.14|4.14|
|Industrial|||||
|Co., Ltd.|||||
|Anhui|||||
|Nanpeng|||||
||13,824,00||13,824,00|13,824,00|
|Papermak|||||
||0.00||0.00|0.00|
|ing Co.,|||||
|Ltd|||||
||32,807,61||32,807,61|32,807,61|
|Subtotal|||||
||4.14||4.14|4.14|
||67,333,79|1,158,576|68,492,36|32,807,61|
|Total|||||
||1.55|.32|7.87|4.14|

 Other notes
18. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Houses and buildings|Land use right|Construction in progress|Total|
|I. Original book value|||||
|1. Opening balance|463,309,590.49|7,969,954.40||471,279,544.89|
|2. Increased amount|||||
||233,314.40|||233,314.40|
|of the period|||||
|(1) Outsourcing|||||
|(2) Transfer of|||||
|inventory\fixed|||||
|assets\project under|||||
|construction|||||
|(3) Increased from|||||
|enterprise merger|||||
|(4) Influence from|233,314.40|||233,314.40|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|foreign currency||||
|statement translation||||
|3. Decreased||||
|amount of the period||||
|(1) Disposal||||
|(2) Other transfer||||
|4. Closing balance|463,542,904.89|7,969,954.40|471,512,859.29|
|II. Accumulative||||
|depreciation and||||
|accumulative||||
|amortization||||
|1.Opening balance|228,649,493.40|5,369,262.67|234,018,756.07|
|2. Increased amount||||
||7,973,786.67|254,572.56|8,228,359.23|
|of the period||||
|(1) Withdrawal or||||
||7,768,369.05|254,572.56|8,022,941.61|
|amortization||||
|(2) Influence from||||
|foreign currency|205,417.62||205,417.62|
|statement translation||||
|3. Decreased||||
|amount of the period||||
|(1) Disposal||||
|(2) Other transfer||||
|4. Closing balance|236,623,280.07|5,623,835.23|242,247,115.30|
|III. Depreciation reserves||||
|1.Opening balance||||
|2. Increased amount||||
|of the period||||
|(1) Withdrawal||||
|3. Decreased||||
|amount of the period||||
|(1) Disposal||||
|(2) Other transfer||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|4. Closing balance||||
|IV. Book value||||
|1. Closing book|||229,265,743.99|
||226,919,624.82|2,346,119.17||
|value||||
|2. Opening book|||237,260,788.82|
||234,660,097.09|2,600,691.73||
|value||||

(2) Investment property adopted fair value measurement mode
□ Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
Unit: RMB
||||
|-|-|-|
|Item|Book value|Reason|

Other notes
19. Fixed assets
(1) List of fixed assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Houses and|Transportation|Electronic and other|Fixed assets||
|Item|||||Total|
||buildings|equipment|equipments|decoration||
|I. Original book||||||
|value||||||
|1. Opening||||||
||111,018,369.27|63,389,075.59|34,408,787.73|6,451,403.79|215,267,636.38|
|balance||||||
|2. Increased||||||
||107,974.02|345,049.40|468,763.80|0.00|921,787.22|
|amount of the period||||||
|(1) Purchase|0.00|345,049.40|468,763.80|0.00|813,813.20|
|(2) Transfer of||||||
|project under||||||
|construction||||||
|(3) Increased||||||
|from enterprise||||||
|merger||||||
|(4) Influence||||||
|from foreign|107,974.02||||107,974.02|
|currency statement||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|translation||||||
|3. Decreased||||||
||0.00|229,600.00|0.00|0.00|229,600.00|
|amount of the period||||||
|(1) Disposal or||||||
|||229,600.00|||229,600.00|
|scrap||||||
|4. Closing balance|111,126,343.29|63,504,524.99|34,877,551.53|6,451,403.79|215,959,823.60|
|II. Accumulative||||||
|depreciation||||||
|1.Opening balance|77,541,162.76|18,170,689.23|28,226,688.96|5,323,861.90|129,262,402.85|
|2. Increased||||||
||1,448,700.89|5,645,821.86|827,861.39|211,001.70|8,133,385.84|
|amount of the period||||||
|(1) Withdrawal|1,359,000.98|5,645,821.86|827,861.39|211,001.70|8,043,685.93|
|(2) Influence||||||
|from foreign||||||
||89,699.91||||89,699.91|
|currency statement||||||
|translation||||||
|3. Decreased||||||
||0.00|137,743.66|0.00|0.00|137,743.66|
|amount of the period||||||
|(1) Disposal or||||||
|||137,743.66|||137,743.66|
|scrap||||||
|4. Closing balance|78,989,863.65|23,678,767.43|29,054,550.35|5,534,863.60|137,258,045.03|
|III. Depreciation||||||
|reserves||||||
|1.Opening balance|||75,717.16||75,717.16|
|2. Increased||||||
|amount of the period||||||
|(1) Withdrawal||||||
|3. Decreased||||||
|amount of the period||||||
|(1) Disposal or||||||
|scrap||||||
|4. Closing balance|||75,717.16||75,717.16|
|IV. Book value||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|1. Closing book||||||
||32,136,479.64|39,825,757.56|5,747,284.02|916,540.19|78,626,061.41|
|value||||||
|2. Opening book||||||
||33,477,206.51|45,218,386.36|6,106,381.61|1,127,541.89|85,929,516.37|
|value||||||

(2) List of temporarily idle fixed assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||Accumulative|Impairment|||
|Item|Original book value|||Book value|Notes|
|||depreciation|provision|||
|Houses and||||||
||3,865,391.77|2,117,946.46||1,747,445.31||
|buildings||||||

(3) Fixed assets leased in from financing lease
Unit: RMB
||||||
|-|-|-|-|-|
|||Accumulative|||
|Item|Original book value||Impairment provision|Book value|
|||depreciation|||

(4) Fixed assets leased out from operation lease
Unit: RMB
|||
|-|-|
|Item|Closing book value|

(5) Details of fixed assets failed to accomplish certification of property
Unit: RMB
||||
|-|-|-|
|Item|Book value|Reason|

Other notes
20. Construction in progress
(1) List of construction in progress
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Total|0.00|0.00||0.00|0.00||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Changes of significant construction in progress
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Of|||
|||||Amount|||Proporti|||which:|||
||||||||||Accumul||||
|||||that|||on|||the|Capitaliz||
||||||Other||||ative||||
||||Increase|transferr|||estimate|||amount|ation rate||
||Estimate||||decrease||||amount||||
|Name o f||Opening|d amount|ed to||Closing|d of the|Project||of the|of the|Capital|
||d||||d amount||||of||||
|item||balance|of the|fixed||balance|project|progress||capitaliz|interests|resources|
||number||||of the||||capitaliz||||
||||period|assets of|||accumul|||ed|of the||
||||||period||||ed||||
|||||the|||ative|||interests|period||
||||||||||interests||||
|||||period|||input|||of the|||
|||||||||||period|||

(3) List of the withdrawal of the impairment provision of the construction in progress
Unit: RMB
||||
|-|-|-|
|Item|Withdrawn amount|Reason|
|Total|0.00|--|

Other notes
Not applicable
21. Engineering material
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other notes:
Not applicable
22. Liquidation of fixed assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other notes:
Not applicable
23. Productive biological assets
(1) Productive biological assets adopted cost measurement mode
□ Applicable√ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Productive biological assets adopted fair value measurement mode
□ Applicable√ Not applicable
24. Oil and gas assets
□ Applicable√ Not applicable
25. Intangible assets
(1) List of intangible assets
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Taxi operating|||
|Item|Land use right|Patent right|Non-patent right||Software|Total|
|||||license plate|||
|I. Total original|||||||
|book value|||||||
|1. Opening|||||||
|||||170,866,146.80|18,260.00|170,884,406.80|
|balance|||||||
|2. Increase in|||||||
|the Reporting|||||||
|Period|||||||
|(1) Purchase|||||||
|(2) Internal R|||||||
|&D|||||||
|(3) Increase|||||||
|from enterprise|||||||
|combination|||||||
|3. Decrease in|||||||
|the Reporting|||||18,260.00|18,260.00|
|Period|||||||
|(1) Purchase|||||18,260.00|18,260.00|
|4. Closing|||||||
|||||170,866,146.80|0.00|170,866,146.80|
|balance|||||||
|II. Total accrued|||||||
|amortization|||||||
|1. Opening|||||||
|||||78,226,062.81|18,260.00|78,244,322.81|
|balance|||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|2. Increase in||||
|the Reporting|3,576,251.52|0.00|3,576,251.52|
|Period||||
|(1) Withdrawal|3,576,251.52||3,576,251.52|
|3. Decrease in||||
|the Reporting||18,260.00|18,260.00|
|Period||||
|(1) Disposal||18,260.00|18,260.00|
|4. Closing||||
||81,802,314.33|0.00|81,802,314.33|
|balance||||
|III. Total||||
|impairment||||
|provision||||
|1. Opening||||
|balance||||
|2. Increase in||||
|the Reporting||||
|Period||||
|(1) Withdrawal||||
|3. Decrease in||||
|the Reporting||||
|Period||||
|(1) Disposal||||
|4. Closing||||
|balance||||
|IV. Total book||||
|value of||||
|intangible assets||||
|1. Book||||
|value of the|89,063,832.47|0.00|89,063,832.47|
|period-end||||
|2. Book||||
|value of the|92,640,083.99|0.00|92,640,083.99|
|period-begin||||

The proportion the intangible assets formed from the internalR&D through the Company amount the balance of the intangible assets
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 at the period-end was0.00%.
(2) Details of fixed assets failed to accomplish certification of land use right
Unit: RMB
||||
|-|-|-|
|Item|Book value|Reason|

Other notes:
26.R&D expenses
Unit: RMB
||||||
|-|-|-|-|-|
||Opening|||Closing|
|Item||Increase|Decrease||
||balance|||balance|

 Other notes:
Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
||||||
|-|-|-|-|-|
|Name of the|||||
|investees or the|||||
||Opening balance|Increase|Decrease|Closing balance|
|events formed|||||
|goodwill|||||

(2) Impairment provision of goodwill
Unit: RMB
||||||
|-|-|-|-|-|
|Name of the|||||
|investees or the|||||
||Opening balance|Increase|Decrease|Closing balance|
|events formed|||||
|goodwill|||||

Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: Not applicable
Other notes
Not applicable
28. Long-term unamortized expenses
Unit: RMB
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
||||Amortization|||
|Item|Opening balance|Increase||Decrease|Closing balance|
||||amount|||
|Facilities||||||
|reconstruction|1,297,321.41||86,488.14||1,210,833.27|
|expenses||||||
|Renovation costs|727,400.66||177,677.34||549,723.32|
|Total|2,024,722.07||264,165.48||1,760,556.59|

 Other notes
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Assets impairment|||||
||57,877,645.41|14,430,844.06|57,759,280.17|14,401,252.75|
|provision|||||
|Unrealized internal sales|||||
||54,136,355.54|13,534,088.89|39,385,119.40|9,846,279.85|
|gain and loss|||||
|Deductible losses|14,491,775.80|3,622,943.95|30,376,338.56|7,594,084.64|
|Accrued land VAT|644,810,617.96|161,202,654.49|738,683,130.68|184,670,782.67|
|Estimated profit|||||
|calculated at pre-sale|||||
||417,732,111.76|104,433,027.94|93,163,091.00|23,290,772.75|
|revenue of property|||||
|enterprises|||||
|Payroll payable unpaid|||||
||69,928.08|17,482.02|1,293,791.92|323,447.97|
|but withdrawn|||||
|Estimated liabilities|843,045.80|210,761.45|834,999.50|208,749.88|
|Total|1,189,961,480.35|297,451,802.80|961,495,751.23|240,335,370.51|

 (2) Deferred income tax liabilities had not been off-set
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|liabilities|difference|liabilities|
|Book value of the fixed|76,057.24|19,014.31|95,940.98|23,985.24|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
|assets larger than the tax|||||
|basis|||||
|Total|76,057.24|19,014.31|95,940.98|23,985.24|

 (3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB
||||||
|-|-|-|-|-|
||Mutual set-off amount of|Amount of deferred|Mutual set-off amount of|Amount of deferred|
||deferred income tax|income tax assets or|deferred income tax|income tax assets or|
|Item|||||
||assets and liabilities at|liabilities after off-set at|assets and liabilities at|liabilities after off-set at|
||the period-end|the period-end|the period-begin|the period-begin|
|Deferred income tax||297,451,802.80||240,335,370.51|
|assets|||||
|Deferred income tax||19,014.31||23,985.24|
|liabilities|||||

(4) List of unrecognized deferred income tax assets
Unit: RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Total|0.00|0.00|

 (5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
|||||
|-|-|-|-|
|Years|Closing amount|Opening amount|Note|
|Total|0.00|0.00|--|

Other notes:
30. Other non-current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Housing purchase prepayment|7,275,069.00|7,275,069.00|
|Total|7,275,069.00|7,275,069.00|

 Other notes:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 31. Short-term loans
(1) Category of short-term loans
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledged and guaranteed loans|0.00|8,000,000.00|
|Total||8,000,000.00|

 Notes of short-term loans category:
(2) List of the short-term loans overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB000, of which the situations of the significant overdue but not return short-term borrowings as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Borrower|Closing balance|Borrowing rate|Overdue time|Overdue rate|
|Total|0.00|--|--|--|

Other notes:
32. Financial liabilities measured by fair value and the changes included in the current gains and losses Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other notes:
Not applicable
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Notes payable
Unit: RMB
||||
|-|-|-|
|Category|Closing balance|Opening balance|

The total amount of the due but not pay notes payable at the period-end was of RMB000.
35. Accounts payable
(1) List of accounts payable
Unit: RMB
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year (including 1 year)|104,851,734.58|102,357,186.61|
|1 to 2 years (including 2 years)|377,183.26|10,999,069.54|
|2 to 3 years (including 3 years)|30,348,762.38|20,968,866.58|
|3 to 4 years (including 4 years)|16,828,879.05|29,208,688.99|
|4 to 5 years (including 5 years)|4,505,436.40|1,054,522.02|
|Over 5 years|26,801,721.09|26,936,604.80|
|Total|183,713,716.76|191,524,938.54|

 (2) Notes of the accounts payable aging over one year
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Unpaid/ Un-carry-over reason|
|Shenzhen Luohu District Land and|||
||25,000,000.00|Unsettled|
|Resources Burea|||
|Hunan Construction Engineering Group|12,887,087.00|Unsettled|
|Zhanjiang West Guangdong Construction|||
||6,300,295.58|Unsettled|
|Engineering Co., Ltd.|||
|Shenzhen Yuanpeng Decoration Group|||
||3,763,729.00|Unsettled|
|Co., Ltd.|||
|Shantou Chaoyang Construction|||
||1,751,764.45|Unsettled|
|Engineering Corporation|||
|Total|49,702,876.03|--|

Other notes:
36. Advance from customers
(1) List of advance from customers
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year (including 1 year)|2,604,211,279.84|650,027,894.78|
|1 to 2 years (including 2 years)|1,035,424.13|1,802,283.71|
|2 to 3 years (including 3 years)|718,445.69|218,445.69|
|3 to 4 years (including 4 years)|950.00|950.00|
|4 to 5 years (including 5 years)|||
|Over 5 years|320,204.02|320,204.02|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Total|2,606,286,303.68|652,369,778.20|

 (2) Significant advance from customers aging over one year
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Unpaid/ Un-carry-over reason|
|Total|0.00|--|

(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
Unit: RMB
|||
|-|-|
|Item|Amount|

Other notes:
The closing balance of advance from customer increase299.51%, comparing to the opening period, mainly was the prepayment of house of SZPRD-Dongguan Songhulangyuan Project, SZPRD-Front Sea Harbour Garden Project and SZPRD-Hupanyujing Phase II had increased.
There was no significant advance from customers aging over one year in the Company.
Prepayment of sale of real estate projects
||||
|-|-|-|
|Item|Aging|Closing balance|
|SZPRD-Front Sea HarbourGarden Project|Within 1 year|1,650,908,603.85|
|SZPRD-DongguangSonghulangyuan Project|Within 1 year|874,483,910.00|
|SZPRD-Hupanyujing Phase I|Within 1 year|21,094,893.00|
|SZPRD-Hupanyujing Phase II|Within 1 year|43,372,635.00|
|Total||2,589,860,041.85|

37. Payroll payable
(1) List of Payroll payable
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|I. Short-term salary|63,264,379.19|125,058,867.11|137,997,703.59|50,325,542.71|
|II. Post-employment|||||
|benefit-defined|424,363.30|11,291,531.16|11,456,294.46|259,600.00|
|contribution plans|||||
|III. Termination benefits|103,074.00|88,321.00|88,321.00|103,074.00|
|Total|63,791,816.49|136,438,719.27|149,542,319.05|50,688,216.71|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) List of Short-term salary
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Salary, bonus,|||||
||57,289,492.04|110,036,062.18|123,840,379.75|43,485,174.47|
|allowance, subsidy|||||
|2. Employee welfare||1,639,313.03|1,639,313.03|0.00|
|3. Social insurance|50,673.60|4,712,821.91|4,763,495.51|0.00|
|Of which: 1. Medical|||||
||42,228.00|3,622,520.17|3,664,748.17|0.00|
|insurance premiums|||||
|Work-related injury|||||
||2,484.00|236,708.20|239,192.20|0.00|
|insurance|||||
|Maternity insurance|5,961.60|343,712.84|349,674.44|0.00|
|Other social security|||||
|||509,880.70|509,880.70||
|charges|||||
|4. Housing fund|1,124,577.90|3,551,890.99|3,797,454.18|879,014.71|
|5. Labor union budget|||||
|and employee education|4,799,635.65|3,600,293.26|2,438,575.38|5,961,353.53|
|budget|||||
|8. Non-monetary benefits||1,518,485.74|1,518,485.74||
|Total|63,264,379.19|125,058,867.11|137,997,703.59|50,325,542.71|

 (3) List of drawing scheme
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Basic pension benefits|414,427.30|9,170,857.15|9,325,684.45|259,600.00|
|2. Unemployment|||||
|||340,376.22|340,376.22|0.00|
|insurance|||||
|Annuity|9,936.00|1,780,297.79|1,790,233.79|0.00|
|Total|424,363.30|11,291,531.16|11,456,294.46|259,600.00|

 Other notes:
The demission welfare withdrawn by relieving the labor relationship was of RMB88,321.00 and the unpaid amount at the period-end was of RMB103,074.00.
38. Taxes payable
Unit: RMB
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|-3,503,094.34|684,049.71|
|Business tax|-74,459.15|8,092,058.86|
|Corporate income tax|69,870,321.74|78,927,414.58|
|Personal income tax|1,006,107.20|742,060.64|
|Urban maintenance and construction tax|141,973.16|576,383.19|
|Stamp tax|-1,042.15|24,807.75|
|Education Surcharge|67,870.30|250,010.86|
|Local education surtax|43,412.55|167,498.25|
|Land VAT|684,255,597.53|742,704,599.09|
|Property tax|1,153,706.53|1,125,407.71|
|Levee fee|413.84|451.42|
|Others|567,283.30|502,630.37|
|Total|753,528,090.51|833,797,372.43|

 Other notes:
39. Interest payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term loan interest of installment|||
|payment of interest and repay the due||467,184.76|
|capital|||
|Enterprise bond interest||12,228.33|
|Total||479,413.09|

 Particulars of significant overdue unpaid interest:
Unit: RMB
||||
|-|-|-|
|Entity|Overdue amount|Overdue reason|
|Total|0.00|--|

Other notes:
40. Dividends payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 41. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Margin|35,544,896.20|35,877,241.66|
|Accounts receivable of the related|||
||31,511,011.04|31,511,011.04|
|companies|||
|Accounts receivable of the non-related|||
||42,314,828.80|44,937,756.84|
|companies|||
|Others|22,447,106.73|15,917,070.14|
|Total|131,817,842.77|128,243,079.68|

 (2) Other significant accounts payable with aging over one year
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Unpaid/ Un-carry-over reason|
|||Come-and-go accounts without specific|
|Shenzhen Jifa Warehouse Co., Ltd.|26,296,665.14||
|||amortization period|
|Guangzhou Lishifeng Automobile Co.,||Come-and-go accounts without specific|
||15,344,017.08||
|Ltd.||amortization period|
|Shenzhen International Trade Center||Come-and-go accounts without specific|
||7,196,769.67||
|Petroleum Company Limited||amortization period|
|Tianan International Building Property||Come-and-go accounts without specific|
||5,214,345.90||
|Management Company of Shenzhen||amortization period|
|RAINBOW DEPARTMENT STORE CO.,|||
||2,330,000.00|Margin within the leasing period|
|LTD|||
|Total|56,381,797.79|--|

Other notes
42. Liabilities classified as holding for sale
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other notes:
43. Non-current liabilities due within 1 year
Unit: RMB
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term loans due within 1 year||121,243,352.00|
|Total||121,243,352.00|

 Other notes:
Non-current liabilities due within 1 year decreased comparing to the opening period, mainly was the maturity repayment.
44. Other current-liabilities
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Changes on short term bonds payable:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Overflow|||
|||||||The|Withdraw||Pay in||
|Name of|Book|||Issue|Opening|||discount||Closing|
|||Issue date|Period|||current|interest at||current||
|the bond|value|||amount|balance|||amortizati||balance|
|||||||issue|par||period||
|||||||||on|||

Other notes:
45. Long-term loan
(1) Category of long-term loan
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Guaranteed loan||144,840,006.83|
|Total||144,840,006.83|

 Notes of short-term loans category:
Other notes including interest rate range:
Long-term loan decreased in opening period, mainly was the repayment decreased.
46. Bonds payable
(1) Bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Increase /decrease of bonds payable (excluding other financial instruments classified as preferred stock, perpetual capital securities and others of financial liabilities)
Unit: RMB (3) Explanation of convertible conditions, time for convertible company bonds
(4) Explanation of other financial instruments classified as financial liabilities
Basic situation of outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
Change in outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstanding|Opening period||Increase||Decrease||Closing period||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||

Notes to judgment of other financial instrument classified as financial liabilities
Other notes
47. Long-term payable
(1) Long-term payable listed by nature of the account
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Other notes:
48. Long-term payroll payable
(1) Long-term payroll payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

(2) Change in defined benefit plans
Obligation present value of defined benefit plans
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|

Plan assets
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Liabilities (net assets) of defined benefit plans
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|

Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow, time and uncertainty of the Company:
Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:
Other notes:
49. Special payable
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Formed reason|

 Other notes:
50. Estimated liabilities
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing balance|Opening balance|Formed reason|
||||For details, please refer to|
|Pending litigation|834,999.50|834,999.50|Section IX. Financial Report|
||||XIV. 2, (1)|
|Total|834,999.50|834,999.50|--|

Other notes, including significant assumptions, valuation explanation related to significant estimated liabilities:
51. Deferred revenue
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Formed reason|
|Operating license||||||
||||||Operating license|
|plate rental income|8,802,625.05||646,610.82|8,156,014.23||
||||||plate rental|
|held to carry forward||||||
|International Trade|||||Rental of|
|Center petroleum|||||International Trade|
||10,270,000.00||699,996.00|9,570,004.00||
|rental income held to|||||Center Petroleum|
|carry forward|||||Co., Ltd.|
|Total|19,072,625.05||1,346,606.82|17,726,018.23|--|

Item involving government subsidies:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Amount of newly|Amount recorded|||Related to|
|Item|Opening balance|||Other changes|Closing balance||
|||subsidy|into|||assets/related|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
|||non-operating||income|
|||income in report|||
|||period|||
|Total|0.00|0.00|0.00|--|

 Other notes:
52. Other non-current liabilities
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Utility specific fund|237,163.45|237,163.45|
|Housing principle fund|16,320,402.76|15,096,884.76|
|House warming deposit|7,146,184.35|7,770,164.12|
|Electric Equipment Maintenance fund|4,019,415.44|4,019,415.44|
|Deputed Maintenance fund|27,681,668.65|27,476,957.21|
|Taxi Deposit|42,765,817.07|41,606,566.60|
|Belong to equity of SIH Divestiture Assets.|17,494,078.26|18,253,188.54|
|Others|1,163,776.29|312,925.26|
|Total|116,828,506.27|114,773,265.38|

 Other notes:
53. Share capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/decrease (+/-)||||||
||Opening|||Capitalized|||Closing|
|||New shares||||||
||balance||Bonus shares|Capital|Others|Subtotal|balance|
|||issued||||||
|||||reserves||||
|The sum of|595,979,092.00||||||595,979,092.00|
|shares||||||||

Other notes:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 54. Other equity instruments
(1) Basic situation of outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
(2) Change in outstanding preferred stock, perpetual capital securities and other financial instrument at the period-end
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstanding|Opening period||Increase||Decrease||Closing period||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||

Changes, reason of change and basis of relevant accounting treatment of other equity instruments in Reporting Period:
Other notes:
55. Capital surplus
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Capital premium|38,450,087.51|||38,450,087.51|
|Other capital reserves|81,501,446.42|||81,501,446.42|
|Total|119,951,533.93|||119,951,533.93|

 Other notes, including changes and reason of change:
56. Treasury stock
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|

 Other notes, including changes and reason of change:
57. Other comprehensive income
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Reporting Period||||||
||||Less: recorded|||||
|||Amount|||Attributable|||
||||in other|||||
|||||||Attributable||
|Item|Opening|before|comprehensive|Less:|to owners||Closing|
|||||||to minority||
||balance|income tax|income in|Income tax|of the||balance|
|||||||shareholder||
|||in current|prior period|expense|Company|||
|||||||s after tax||
|||period|and transferred||after tax|||
||||to profit or|||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
||||loss in current|||
||||period|||
|II. Other comprehensive reclassified||1,000,816.766||1,000,816.76|-3,045,78|
||-4,046,603.4|||||
|into profits or losses|||||6.70|
|Converted difference of the||1,000,816.766||1,000,816.76|-3,045,78|
||-4,046,603.4|||||
|foreign currency financial statement|||||6.70|
||-4,046,603.4|1,000,816.766||1,000,816.76|-3,045,786.70|
|Total||||||

 Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow hedging gains and losses transfer into arbitraged items:
58. Special reserves
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|

 Other notes, including changes and reason of change:
59. Surplus reserves
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplus|||||
||154,664,631.59|||154,664,631.59|
|reserves|||||
|Total|154,664,631.59|||154,664,631.59|

 Other note, including changes and reason of change
60. Retained earnings
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Last period|
|Opening balance of retained profits beforeadjustments|||
||1,233,358,112.55|1,225,726,944.83|
|Opening balance of retained profits afteradjustments|1,233,358,112.55||
|||1,225,726,944.83|
|Add: Net profit attributable to owners of theCompany|||
||-5,248,704.63|31,162,831.74|
|Dividend of common stock payable|47,678,327.36|131,115,400.24|
|Closing retained profits|1,180,431,080.56|1,125,774,376.33|

List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
61. Revenue and Cost of Sales
Unit: RMB
||||||
|-|-|-|-|-|
||Reporting Period||Same period of last year||
|Item|||||
||Sales revenue|Cost of sales|Sales revenue|Cost of sales|
|Main operations|345,547,471.22|287,490,422.42|317,901,168.02|191,090,391.49|
|Other operations|26,510,008.74|7,517,399.44|20,860,142.37|7,963,769.10|
|Total|372,057,479.96|295,007,821.86|338,761,310.39|199,054,160.59|

 62. Business tax and surcharges
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Business tax|14,203,065.56|16,137,424.04|
|Urban maintenance and construction tax|1,239,360.30|1,194,754.19|
|Education Surcharge|532,180.88|581,111.41|
|Local education surtax|353,463.79|277,110.87|
|Levee fee|-37.58|1,074.24|
|Property tax|1,451,965.74|2,079,423.80|
|Land use tax|291,904.46||
|Land VAT|5,661,386.67|26,059,740.50|
|Other|11,672.58|450,507.04|
|Total|23,744,962.40|46,781,146.09|

 Other notes:
A YOY decrease of49.24% in business tax and surcharges mainly was the settlement of the projects in different areas, gross rate had a YOY decreased which lead to the decrease of land value increment tax.
63. Sales expenses
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Employee’s remuneration|2,025,984.36|1,405,483.32|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Office expenses of operating institutions|1,773,152.88|1,410,156.73|
|Sales agency fee, advertising expense and|||
||10,539,707.09|9,154,883.00|
|general publicity expense|||
|Others|2,200,915.26|687,743.64|
|Total|16,539,759.59|12,658,266.69|

 Other notes:
The sales expenses increased30.66% over the last period which mainly was enlarging sale power lead to the increase of relevant marketing expenses.
64. Administrative expenses
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Employee’s remuneration|29,331,379.85|29,457,310.79|
|Administrative office cost|7,460,528.60|7,116,805.85|
|Assets amortization and depreciation|||
||1,808,062.26|2,536,652.51|
|expense|||
|Litigation costs|235,352.87|2,211,000.00|
|Taxes|878,783.59|533,243.23|
|Others|4,858,048.28|6,475,169.32|
|Total|44,572,155.45|48,330,181.70|

 Other notes:
65. Financial expenses
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Interest expenses|0.00|0.00|
|Less: Interest income|7,499,149.56|5,421,472.92|
|Net losses of exchange|-32,303.30|215,050.38|
|Others|493,013.92|492,047.04|
|Total|-7,038,438.94|-4,714,375.50|

 Other notes:
The amount of the financial expenses of the period increase over the last period was mainly due to the increase of bank deposit.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 66. Asset impairment loss
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|I. Bad debt loss|-539,137.85|365,644.80|
|II. Inventory falling price loss|4,350,035.81|-7,847.20|
|Total|3,810,897.96|357,797.60|

 Other notes:
The amount of the assets impairment losses largely increased over the last period was mainly due to the reverse of the inventory falling price provision of SZPRD-Hupanyujing Phase II Project.
67. Gains and losses from changes in fair value
Unit: RMB
||||
|-|-|-|
|Sources|Reporting Period|Same period of last year|

Other notes:
68. Investment income
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Long-term equity investment income|||
||1,158,576.32|666,409.17|
|accounted by equity method|||
|Investment income received from disposal of|||
|||5,709,098.20|
|available-for-sale financial assets|||
|Others||392,034.89|
|Total|1,158,576.32|6,767,542.26|

 Other notes:
The investment income decreased82.88% over last period was mainly due to the investment income from disposal of available for sale financial assets.
69. Non-operating gains
Unit: RMB
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Item|Reporting Period|Same period of last year||
||||non-recurring gains and losses|
|Confiscated income|713,423.41|444,741.20|713,423.41|
|Others|369,676.99|116,338.18|369,676.99|
|Total|1,083,100.40|561,079.38|1,083,100.40|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Government subsidies recorded into current profits and losses
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether|||||
|||||subsidies|||||
||||||Special|||Related to|
||Distribution|Distribution||influence the||Reporting|Same period||
|Item|||Nature||subsidy or|||assets/related|
||entity|reason||current||Period|of last year||
||||||not|||income|
|||||profits and|||||
|||||losses or not|||||
|Total|--|--|--|--|--|0.00|0.00|--|

 Other notes:
Non-operating gains increased93.04% over last period was mainly due to the increase of confiscation of all kinds of deposit and overdue fund.
70. Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Item|Reporting Period|Same period of last year||
||||non-recurring gains and losses|
|Loss on disposal of non-current|6,300.00|426,921.60||
||||6,300.00|
|assets||||
|Including: Loss on disposal of||||
||6,300.00|426,921.60|6,300.00|
|fixed assets||||
|Taxes overdue payment fines||||
||19,444.98|364,555.49|19,444.98|
|and other fines||||
|Others|272,977.52|298,401.06|272,977.52|
|Total|298,722.50|1,097,878.15|298,722.50|

 Other notes:
Non-operating expenses decreased72.79% over last period was mainly due to the payment of penalty, overdue fund, losses from disposal of fix assets decreased.
71. Income tax expense
(1) Lists of income tax expense
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Current income tax expense|680,299.69|19,771,504.14|
|Deferred income tax expense|1,931,680.80|-8,409,459.17|
|Total|2,611,980.49|11,362,044.97|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Adjustment process of accounting profit and income tax expense
Unit: RMB
|||
|-|-|
|Item|Reporting Period|
|Total profits|-2,636,724.14|
|Current income tax expense accounted by tax and relevant||
||-659,181.04|
|regulations||
|Influence of different tax rate suitable to subsidiary|1,425.21|
|Influence of income tax before adjustment|1,566,913.91|
|Influence of non taxable income|-289,644.08|
|Influence of not deductible costs, expenses and losses|-123,850.12|
|Influence of deductible losses of deferred income tax assets||
||-42,227.03|
|derecognized used in previous period||
|Influence of deductible temporary difference or deductible losses||
||2,158,543.63|
|of deferred income tax assets derecognized in Reporting Period.||
|Income tax expense|2,611,980.49|

 Other notes
The income tax expense decreased77.01% over last period was mainly due to decreased of profits realized in Reporting Period. 72. Other comprehensive income
Refer to the Note. 57
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities:
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Interest income|7,499,149.56|5,421,472.92|
|Other small receivables|9,409,363.61|3,223,250.59|
|Net margins, security deposit and various|||
||1,103,118.08||
|special funds received|||
|Net amount of utilities, miscellaneous|||
|fees and accident fee and other receivables|3,548,734.20||
|on behalf|||
|Total|21,560,365.45|8,644,723.51|

Note to other cash received relevant to operating activities:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Other cash paid relevant to operating activities:
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Paying administration expenses in cash|10,781,780.30|13,754,863.03|
|Paying sales expenses in cash|19,956,361.04|14,085,771.42|
|Net margins, security deposit and various|||
|||1,469,582.18|
|special funds paid|||
|Net amount of utilities, miscellaneous|||
|fees and accident fee and other payments||13,919,258.96|
|on behalf|||
|Other small payments|6,389,601.95|804,340.53|
|Total|37,127,743.29|44,033,816.12|

 Notes to other cash paid relevant to operating activities:
(3) Other cash received relevant to investment activities
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|

Notes to other cash received relevant to investment activities
(4) Other cash paid relevant to investment activity
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|

Note to other cash paid relevant to investment activities:
(5) Other cash received relevant to financing activities
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|

Notes to other cash received relevant to financing activities:
(6) Other cash paid relevant to financing activities
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Handling charges of significant loans|96,000.00|104,500.00|
|Total|96,000.00|104,500.00|

Notes to other cash paid relevant to financing activities:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 74. Supplemental information for Cash Flow Statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB
||||
|-|-|-|
|Supplemental information|Reporting Period|Same period of last year|
|1. Reconciliation of net profit to net cash|||
||--|--|
|flows generated from operating activities|||
|Net profit|-5,248,704.63|31,162,831.74|
|Add: Provision for impairment of assets|3,810,897.96|357,797.60|
|Depreciation of fixed assets, of oil-gas|||
||16,066,627.54|15,612,644.17|
|assets, of productive biological assets|||
|Amortization of intangible assets|3,576,251.52|3,576,251.52|
|Long-term unamortized expenses|264,165.48|264,165.48|
|Losses on disposal of fixed assets, intangible|||
|assets and other long-term assets (gains:|6,300.00|426,921.60|
|negative)|||
|Financial cost (gains: negative)|96,000.00|104,500.00|
|Investment loss (gains: negative)|-1,158,576.32|-6,767,542.26|
|Decrease in deferred income tax assets|||
||-57,116,432.29|-8,359,611.70|
|(gains: negative)|||
|Increase in deferred income tax liabilities|||
||-4,970.93|-228,468.69|
|(“-” means decrease)|||
|Decrease in inventory (gains: negative)|-139,623,701.04|-170,954,590.39|
|Decrease in accounts receivable from|||
||-169,294,375.39|-23,560,177.24|
|operating activities (gains: negative)|||
|Increase in payables from operating|||
||1,857,883,012.89|-63,543,902.76|
|activities (decrease: negative)|||
|Net cash flows generated from operating|1,509,256,494.79|-221,909,180.93|
|activities|||
|2. Significant investing and financing|||
|activities without involvement of cash|--|--|
|receipts and payments|||
|3. Net increase in cash and cash equivalents:|--|--|
|Closing balance of cash|2,116,055,975.68|482,997,421.84|
|Less: Opening balance of cash|933,337,815.77|808,963,376.68|
|Net increase in cash and cash equivalents|1,182,718,159.91|-325,965,954.84|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Net Cash paid of obtaining the subsidiary
Unit: RMB
|||
|-|-|
||Amount|
|Of which:|--|
|Of which:|--|
|Of which:|--|

Other notes:
(3) Net Cash receive from disposal of the subsidiary
Unit: RMB
|||
|-|-|
||Amount|
|Of which:|--|
|Of which:|--|
|Of which:|--|

Other notes:
(4) Cash and cash equivalents
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|2,116,055,975.68|933,337,815.77|
|Including: Cash on hand|299,819.32|208,170.99|
|Bank deposit on demand|2,114,647,115.64|930,987,796.17|
|Other monetary funds on demand|1,109,040.72|2,141,848.61|
|III. Closing balance of cash and cash|2,116,055,975.68|933,337,815.77|
|equivalents|||

Other notes:
75. Notes to items of changes in owner's equity
Notes to name of "other" item adjusted closing balance and the adjustment amount:
Not applicable
76. The assets with the ownership or use right restricted
Unit: RMB
||||
|-|-|-|
|Item|Closing book value|Restricted reason|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|||Guarantee deposit, for details, please refer|
|Monetary capital|12,402,160.00|to Section IX. Financial Report VII. 1,|
|||XIV. 2, (1)|
|Total|12,402,160.00|--|

Other notes:
77. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB|
|Item||Exchange rate||
||balance||balance|
|Monetary capital|--|--|51,712,574.39|
|HKD|60,503,772.54|0.8547|51,712,574.39|
|Other account payable|||304,788.63|
|Of which: HKD|356,603.05|0.8547|304,788.63|
|Accounts payable|||47,863.20|
|Of which: HKD|56,000.00|0.8547|47,863.20|

 Other notes:
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place, recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
√ Applicable□ Not applicable
||||
|-|-|-|
|Item|Mainoperatingplace|Recordingcurrency|
|Shum Yip Properties DevelopmentCo., Ltd. and its subsidiary|HongKong|HKD|

78. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose: Not applicable
79. Other
Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 VIII. Changes of merge scope
1. Business combination not under the same control
(1) Business combination under the same control during the Reporting Period
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Income of|Net profit of|
||Time to||Equity|Way of|||||
|Name of||Time to||||Recognition|acquiree from|acquiree from|
||obtain||proportion|equity|Purchase date||||
|acquiree||obtain cost||||judgment|purchase date|purchase date|
||equity||obtained|obtained|||||
||||||||to period-end|to period-end|

 Other notes:
Not applicable
(2) Combination cost and goodwill
Unit: RMB
||
|-|
|Combination cost|

Notes to recognition method, contingent consideration and its changes in fair value of combination cost:
Not applicable
Main reason of large amount goodwill formed:
Not applicable
Other notes:
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Unit: RMB
|||
|-|-|
|Fair value on purchase date|Book value on purchase date|

 Recognition methods of identifiable assets and liabilities:
Not applicable
Contingent liabilities of acquiree bared in enterprises merger:
Not applicable
Other notes:
Not applicable
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and gaining the control
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 during the Reporting Period
□ Yes√ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities of the acquiree at acquisition date or closing period of the merge
Not applicable
(6) Other notes
Not applicable
2. Business combination under the same control
(1) Business combination under the same control during the Reporting Period
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Income from|Net profits|||
||||||the|from the|||
|||||Recognition|||Income|Net profits|
||||||period-begin|Reporting|||
|Combined|Proportion of||Combination|basis of|||during the|during the|
|||Basis|||to the|Period to the|||
|party|the profits||date|combination|||period of|period of|
||||||combination|combination|||
|||||date|||comparison|comparison|
||||||date of the|date of the|||
||||||combination|combination|||

Other notes:
Not applicable
(2) Combination cost
Unit: RMB
||
|-|
|Combination cost|

Notes to contingent consideration or other changes:
Not applicable
Other notes:
Not applicable
(3) The book value of the assets and liabilities of the combined party at combining date
Unit: RMB
|||
|-|-|
|Combination date|Period-end of last period|

Contingent liabilities of the combined party undertaken in combination
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Not applicable
Other notes:
Not applicable
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
Not applicable
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes√ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in Reporting Period□ Yes√ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information:
Not applicable
6. Other
Not applicable
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
||||||||
|-|-|-|-|-|-|-|
||Main operating||Nature of|Holding percentage (%)|||
|Name||Registration place||||Way of gaining|
||place||business|Directly|Indirectly||
|Shenzhen|||||||
||||Property||||
|Huangcheng Real|Shenzhen|Shenzhen||95.00%|5.00%|Set-up|
||||development||||
|Estate Co., Ltd.|||||||
|SZPRD Real|||||||
|Estate|||Property||||
||Shenzhen|Shenzhen||95.00%|5.00%|Set-up|
|Development Co.,|||development||||
|Ltd.|||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|PRD Group|||||||
|Xuzhou Dapeng|||||||
||||Property||||
|Real Estate|Xuzhou|Xuzhou||100.00%||Set-up|
||||development||||
|Development Co.,|||||||
|Ltd.|||||||
|Dongguan|||||||
|International|||||||
|Trade Center|||||||
||||Property||||
|Changsheng Real|Dongguan|Dongguan||100.00%||Set-up|
||||development||||
|Estate|||||||
|Development Co.,|||||||
|Ltd.|||||||
|PRD Yangzhou|||||||
|Real Estate|||Property||||
||Yangzhou|Yangzhou||100.00%||Set-up|
|Development Co.,|||development||||
|Ltd.|||||||
|SHENZHEN|||||||
|INTERNATION|||||||
|AL TRADE|||||||
||||Property||||
|CENTER|Shenzhen|Shenzhen||95.00%|5.00%|Set-up|
||||management||||
|PROPERTY|||||||
|MANAGERMEN|||||||
|T CO., LTD.|||||||
|Shenzhen|||||||
|Huangcheng Real|||||||
||||Property||||
|Estate|Shenzhen|Shenzhen|||100.00%|Set-up|
||||management||||
|Management Co.,|||||||
|Ltd.|||||||
|Shandong|||||||
|Shenzhen|||||||
|International|||||||
||||Property||||
|Trade Center|Jinan|Jinan|||100.00%|Set-up|
||||management||||
|Property|||||||
|Management Co.,|||||||
|Ltd.|||||||
|Chongqing|||||||
|Shenzhen|||||||
|International|||||||
||||Property||||
|Trade Center|Chongqing|Chongqing|||100.00%|Set-up|
||||management||||
|Property|||||||
|Management Co.,|||||||
|Ltd.|||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|Chongqing Ao’bo|||||||
||Chongqing|Chongqing|Service||100.00%|Set-up|
|Elevator Co., Ltd.|||||||
|Shenzhen|||||||
|Tianque Elevator|||||||
||Shenzhen|Shenzhen|Service||100.00%|Set-up|
|Technology Co.,|||||||
|Ltd.|||||||
|Shenzhen|||||||
|International|||||||
|Trade Center|||||||
|Property|||||||
||Shenzhen|Shenzhen|Service||100.00%|Set-up|
|Management|||||||
|Engineering|||||||
|Equipment Co.,|||||||
|Ltd.|||||||
|Shenzhen|||||||
|International|||||||
||Shenzhen|Shenzhen|Catering service|80.00%|20.00%|Set-up|
|Trade Center|||||||
|Food Co., Ltd.|||||||
|Shenzhen|||||||
|Property|||||||
||||Project||||
|Construction|Shenzhen|Shenzhen|||100.00%|Set-up|
||||supervision||||
|Supervision Co.,|||||||
|Ltd.|||||||
|Shenzhen Real|||||||
||Shenzhen|Shenzhen|Service|100.00%||Set-up|
|Estate Exchange|||||||
|Shenzhen|||||||
|International|||||||
|Trade Center|Shenzhen|Shenzhen|Service|90.00%|10.00%|Set-up|
|Vehicles Industry|||||||
|Co., Ltd.|||||||
|Shenzhen|||||||
|International|||||||
|Trade Center|Shenzhen|Shenzhen|Service||100.00%|Set-up|
|Motor Rent Co.,|||||||
|Ltd.|||||||
|Shenzhen Tesu|||||||
|Vehicle Driver|||||||
||Shenzhen|Shenzhen|Service||100.00%|Set-up|
|Training Center|||||||
|Co., Ltd.|||||||
|Shenzhen|||||||
||Shenzhen|Shenzhen|Trading|95.00%|5.00%|Set-up|
|International|||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|Trade Plaza|||||||
|Sichuan Tianhe|||||||
||Chengdu|Chengdu|Trading||100.00%|Set-up|
|Industry Co., Ltd.|||||||
|Zhanjiang|||||||
|Shenzhen Real|||||||
||||Property||||
|Estate|Zhanjiang|Zhanjiang||100.00%||Set-up|
||||development||||
|Development Co.,|||||||
|Ltd.|||||||
|||||||Business|
|Shenzhen|||||||
|||||||combination|
|Shenxin Taxi Co.,|Shenzhen|Shenzhen|Service|100.00%|||
|||||||under the same|
|Ltd.|||||||
|||||||control|
|Shum Yip|||||||
|Properties|||Property||||
||Hong Kong|Hong Kong||100.00%||Set-up|
|Development Co.,|||development||||
|Ltd.|||||||
|Wayhang|||||||
||||Property||||
|Development Co.,|Hong Kong|Hong Kong|||100.00%|Set-up|
||||development||||
|Ltd.|||||||
|Chief Link|||||||
||||Property||||
|Properties Co.,|Hong Kong|Hong Kong|||70.00%|Set-up|
||||development||||
|Ltd.|||||||
|||||||Business|
|Syndis|||||||
||||Property|||combination not|
|Investment Co.,|Hong Kong|Hong Kong|||70.00%||
||||development|||under the same|
|Ltd.|||||||
|||||||control|

Notes: holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been controlled investee:
Naught
Significant structure entities and controlling basis in the scope of combination:
The Company and controlling shareholders in Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as “SIH”) entered into Asset Replacement Agreement in Sep. 2010, agreeing that the Company replaces Moon Bay T102-0237 land and100% equity of Shenzhen Shenxin Taxi Co., Ltd. (hereinafter referred to as “SX Company”) possessed by SIH with parts of house property owned by the Company and wholly-owned subsidiary Shenzhen Huangcheng Real Estate Co., Ltd. In order to optimize structure of replaced asset, SIH agrees that assets and liabilities which are not suitable to be included into the listed company such as non-market commodity house and non-performing loans and debts owned by SX Company and shown in No.[2010] 103 file of SIH (hereinafter
referred to as “Divestiture Assets of SX Company” or “Divestiture Assets”) will not be incorporated into scope of
replacement and will be divested. In principle, Divestiture Assets shall handle procedures of registration of
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 transfer and transfer of credit and debt.
SIH, Shenzhen Foreign Economy& Trade Investment Co., Ltd. (hereinafter referred to as FET Company”) and SX Company signed Contract on Transfer of Divestiture Assets in June 2012. According to agreement of the Contract, SIH requires SX Company to transfer Divestiture Assets to FET Company for management.
Since there are legal impediments in partial transfer of Divestiture Assets, FET Company and SX Company concluded and signed Contract on Entrusted Management of Divestiture Assets and Liabilities, promising that FET Company has entrusted SX Company to liquidate, manage and dispose of Divestiture Assets. The entrusted period ends on December 31, 2014. Since there are legal impediments in partial transfer of Divestiture Assets, FET Company and SX Company concluded and signed Supplement Contract on Entrusted Management of Divestiture Assets and Liabilities, promising that FET Company has entrusted SX Company to liquidate, manage and dispose of Divestiture Assets. The entrusted period ends on September 30, 2016. SX Company paid for FET Company with 313,000 Yuan income obtained from assets operation from Jun. 1, 2012 to December 31, 2012. Since then SX Company will pay 626,000 Yuan to FET Company each year and the remaining incomes gained from assets operation will be possessed by SX Company.
Balance of Divestiture Assets as of 30 June 2016 in consolidated statements is as follows:
||||
|-|-|-|
|Item|Amount|Item|
|Other accounts receivable|50.00|Other account payable|
|Investment property|8,869,702.93|Other non-currentliabilities|
|Fixed assets|9,120,223.51||
|Long-term unamortizedexpenses|187,679.90||
|Total assets|18,177,656.34|Total liabilities andowners’ equity|

Notes: other non-current liabilities shall belong to equity of SIH Divestiture Assets.
Through the above Contract on Entrusted Management of Divestiture Assets and Liabilities, the Company has actually controlled SXCompany’s Divestiture Assets which become a business entity with control rights by entrusted business mode.
Basis of determine whether the Company is the agent or the principal:
Naught
Other notes:
Naught
(2) Significant not wholly owned subsidiary
Unit: RMB
||||||
|-|-|-|-|-|
|||The profits and losses|Declaring dividends|Balance of minority|
||Shareholding proportion||||
|Name||arbitrate to the minority|distribute to minority|shareholder at closing|
||of minority shareholder||||
|||shareholders|shareholder|period|

Holding proportion of minority shareholder in subsidiary different from voting proportion:
Naught
Other notes:
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 As of the end of Reporting Period, the balance of minority shareholders was RMB862,087.06; there was no significant non-wholly owned subsidiary in the Company.
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance||||||Opening balance||||||
|||Non-curr|Totalassets||Non-curr|||Non-curr|||Non-curr||
|Name|Current|||Current||Total|Current||Total|Current||Total|
|||ent|||ent|||ent|||ent||
||assets|||liabilities||liabilities|assets||assets|liabilities||liabilities|
|||assets|||liability|||assets|||liability||

Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Reporting Period||||Same period of last year||||
||Operationrevenue||Total||||Total||
|Name||||Operating|Operation|||Operating|
|||Net profit|comprehensi|||Net profit|comprehensi||
|||||cash flow|revenue|||cash flow|
||||ve income||||ve income||

Other notes:
Naught
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Naught
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated financial statements
Naught
Other notes:
Naught
2. The transaction of the Company with itsowner’s equity share changed but still controlling the subsidiary (1) Note toowner’s equity share changed in subsidiary
Naught
(2) Thetransaction’s influence to equity of minority shareholders and attributable to the owner's equity of the parent company
Unit: RMB
Other notes
Naught
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|||||Holding percentage (%)||Accounting|
|||||||treatment of the|
||Main operating||Nature of|||investment of|
|Name||Registration place|||||
||place||business|Directly|Indirectly|joint venture or|
|||||||associated|
|||||||enterprise|
|Shenzhen Jifa|||||||
|Warehouse Co.,|Shenzhen|Shenzhen|Warehouse serve|50.00%||Equity method|
|Ltd.|||||||
|Tianan|||||||
|International|||||||
|Building Property|||Property||||
||Shenzhen|Shenzhen||50.00%||Equity method|
|Management|||management||||
|Company of|||||||
|Shenzhen|||||||

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
TheCompany’s long term equity investment had withdrawn bad debt provision for the associate enterprise of Shenzhen Wufang Pottery& Porcelain Industrial Co., Ltd., Shenzhen INTERNATIONAL TRADE CENTER Industrial Development Co., Ltd. and Anhui Nanpeng Papermaking Co., Ltd. Now the aforesaidcompanies’ financial statement can not be obtained, thus, the Company believed that they were insignificant associate enterprises.
Basis of holding less than20% of the voting rights but has a significant impact or holding20% or more voting rights but does not have a significant impact:
Naught
(2) Main financial information of significant joint venture
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance/ Reporting Period||Opening balance /last period||
||Tianan International||Tianan International||
||Building Property|Shenzhen Jifa Warehouse|Building Property|Shenzhen Jifa Warehouse|
||Management Company|Co., Ltd.|Management Company|Co., Ltd.|
||of Shenzhen||of Shenzhen||
|Current assets|40,290,793.13|7,276,178.04|38,895,590.21|5,555,289.81|
|Of which: cash and cash|||||
||29,129,164.09|6,723,458.04|27,170,290.21|5,279,230.56|
|equivalence|||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
|Non-current assets|51,233.38|58,664,366.58|112,137.15|59,395,951.93|
|Total assets|40,342,026.51|66,113,227.61|39,007,727.36|64,951,241.74|
|Current liabilities|15,959,745.32|2,776,265.41|14,868,217.22|3,372,557.80|
|Non-current liability|16,349,735.99||16,665,839.28||
|Total liabilities|32,309,481.31|2,776,265.41|31,534,056.50|3,372,557.80|
|Equity attribute to the|||||
||8,032,545.20|63,336,962.20|7,473,670.86|61,578,683.94|
|parent company|||||
|Portion of net assets|||||
|calculated according to|||||
||4,016,272.60|31,668,481.10|3,736,835.43|30,789,341.97|
|proportion of|||||
|shareholdings|||||
|Book value of equity|||||
|investment to joint|4,016,272.60|31,668,481.10|3,736,835.43|30,789,341.97|
|venture|||||
|Operation revenue|8,671,772.39|3,580,486.62|9,042,773.62|3,117,826.11|
|Financial expenses|29,837.17|-7,667.06|-1,005.14|-3,221.24|
|Income tax expense|186,291.45|290,916.24|219,258.92|225,013.86|
|Net profit|558,874.35|1,758,278.26|657,776.76|675,041.56|
|Total comprehensive|||||
||558,874.35|1,758,278.26|657,776.76|675,041.56|
|income|||||

Other notes
Naught
(3) Main financial information of significant associated enterprise
Unit: RMB
|||
|-|-|
|Closing balance/ Reporting Period|Opening balance /last period|

 Other notes
TheCompany’s long term equity investment had withdrawn bad debt provision for the associate enterprise of Shenzhen Wufang Pottery& Porcelain Industrial Co., Ltd., Shenzhen INTERNATIONAL TRADE CENTER Industrial Development Co., Ltd. and Anhui Nanpeng Papermaking Co., Ltd. Now the aforesaidcompanies’ financial statement can not be obtained, thus, the Company believed that they were insignificant associate enterprises.
(4) Summary financial information of insignificant joint venture or associated enterprise
Unit: RMB
|||
|-|-|
|Closing balance/ Reporting Period|Opening balance /last period|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Joint venture:|--|--|
|The total of following items according to the|||
||--|--|
|shareholding proportions|||
|Associated enterprise:|--|--|
|The total of following items according to the|||
||--|--|
|shareholding proportions|||

Other notes
Naught
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the Company
Naught
(6) The excess loss of joint venture or associated enterprise
Unit: RMB
|||||
|-|-|-|-|
||The cumulative recognized|The derecognized losses or the|The noncumulative|
|Name|losses in previous|share of net profit in Reporting|unrecognized losses in|
||accumulatively derecognized|Period|Reporting Period|

 Other notes
Naught
(7) The unrecognized commitment related to joint venture investment
Naught
(8) Contingent liabilities related to joint venture or associated enterprise investment
Naught
4. Significant common operation
|||||||
|-|-|-|-|-|-|
|||||Proportion /share portion||
|Name|Main operating place|Registration place|Nature of business|||
|||||Directly|Indirectly|

 Note to holding proportion or share portion in common operation different from voting proportion:
Naught
Basis of common operation as a single entity, classify as common operation
Naught
Other notes
Naught
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
Naught
6. Other
Naught
X. The risk related financial instruments
The financial instruments of the Group include: monetary fund, the available for sale financial assets, loan, accounts receivable and notes receivable, accounts payable and notes payable, etc, for details, see disclosure in each note.
1 Credit risk,
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the other party.
The Group manages the credit risk according to the combination of credit risk classification; the credit risk mainly occurred in bank deposit, account receivable and other account receivables. The source of credit risk of financial assets was the default of the other party. The biggest risk exposure was equivalent to book value of the instruments.
The Group's working capital was in bank with higher credit rating, so there was no significant credit risk, nor significant losses due to the default of other entity.
There were lots of account receivables withdrawn individually in the Group and had withdrawn bad debt provision, which fully reveal the existence of credit risk. Amount of balance of account receivables was RMB43.4845 million except the aforesaid had withdrawn bad debt provision, mainly was the account receivable of property management, of which was account receivable RMB5.4735 million of Huawei Technologies Co., Ltd. was the total property management costs of several serve district of Huawei Technology Center. Other client receivables were widely dispersed owners and tenants. the Group conducted continuous supervisor to the account receivables to ensure the Group not facing significant bad debt risk. The Group conducted continuous supervisor to the account receivables to ensure the Group not facing significant bad debt risk.
For the quantized data of credit risk exposure incurred by account receivables and other account receivables, see 2, Note VII and 4, Note VII.
2. Liquidity risk
Liquidity risk was referred to the risk of incurring capital shortage when performing settlement obligation in the way of cash payment or other financial assets.
The subsidiary of the Group monitor the cash flow and the need of it selves, the headquarters of the finance department combine the cash flow of each subsidiary, continue to monitor the short term or long term capital needs to ensure maintain plenty of cash flow. Besides, according to the actual capital need of the Group, provided commitment of adequate emergency capital to meet the short term and long term capital need.
The analysis of maturity term made by theGroup’s financial liabilities in line with non discount cash flow of the contracts:
(1) TheGroup’s current liabilities including short-term loans payable, accounts payable, interest payable, other payables and non-current liabilities due within one year are expected paid within 1 year.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2)The analysis of maturity term made by theGroup’s financial liabilities in line with non discount cash flow of the contracts:
||||||
|-|-|-|-|-|
|Item|||||
||Within 1 year(including 1 year)|1-3years (including 3years)|3-5 years(including 5 year)|Over 5years|
|Long term loan(interest included)|0.00|0.00|||

|||||||
|-|-|-|-|-|-|
|Item||||||
||Within 1 year(including 1 year)|1-3 years(including 3 year)|3-5 years(including 5 year)|Over 5years||
|Long term loan(interest included)|902.83|14,756.09|||15,658.91|

As of the end of Reporting Period, there were no current liabilities or long term loan in the Group.
3. Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the change of market price, including: exchange rate risk, interest rate risk and other price risk.
(1) Exchange rate risk
Exchange rate risk is referred to the fair value and future cash flow of financial instruments change due to the change of foreign exchange rate.
Sensitive analysis of foreign exchange risk was as followed.
Reflecting under the hypothesis of other variables constant, listed the reasonable and possible change of foreign exchange, due to the fair value of the monetary assets and monetary liabilities changes will impact on net income and shareholders' equity
Item Reporting Period Last period
|||||
|-|-|-|-|
||Influence to theprofits|Influence toequity ofshareholders|Influence to theprofits|
|RMB down 2% against HKD|-5,630.49|997,110.52|6,078.57|
|RMB up 2% against HKD|5,630.49|-997,110.52|-6,078.57|

Note 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Note 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings (2) Interest rate risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due to the change of market price.
The interest risk of the Group incurred from bank loan, interest rate risk of a floating interest rate of financial liabilities that lead to the group facing cash flow interest rate risk, financial liabilities with a fixed interest rate lead to the group facing cash flow interest rate risk.
As of the end of Reporting Period, the Group had repaid all the bank loan, the debt with interest was RMB0. (3) Other price risk
Other price risk, the risk changed from the change in market price except exchange rate risk and interest risk, no
matter the change was due to the single financial instrument or issue party related factors or the relevant factor of
similar financial instrument within transaction market.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 The available for sale listed equity instrument held by the Group listed in SZSE and calculated at market offer on balance sheet date. The investment of available for sale equity instrument occurred investment price risk.
Sensitive analysis of other price risk of equity instrument investment was as followed.
Reflecting under the hypothesis of other variables constant, the fair value of equity instrument changes will impact on net income and shareholders' equity.
Item Reporting Period
|||
|-|-|
||Influence to theprofits|
|SZSE-fair value of available for sale equity instrumentincrease5%||
|SZSE-fair value of available for sale equity instrumentdecrease5%||

Note 1: the above-mentioned expressed as a positive number increase, a negative number decrease.
Note 2: the above-mentioned expressed as changes in shareholder's equity does not include retained earnings
Note 3: without regard to the factor possible influence the profit sheet falling price.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Unit: RMB
||||||
|-|-|-|-|-|
||Closing fair value||||
|Item|Fair value measurement|Fair value measurement|Fair value measurement||
|||||Total|
||items at level 1|items at level 2|items at level 3||
|I. Consistent fair value|||||
||--|--|--|--|
|measurement|||||
|(II) Available-for-sale|||||
||3,568,421.28|0.00|0.00|3,568,421.28|
|financial assets|||||
|(2) Equity tool investment|3,568,421.28|0.00|0.00|3,568,421.28|
|Total assets of consistent|||||
||3,568,421.28|0.00|0.00|3,568,421.28|
|fair value measurement|||||
|Total liabilities of|||||
|consistent fair value|0.00|0.00|0.00|0.00|
|measurement|||||
|II. Inconsistent fair value|||||
||--|--|--|--|
|measurement|||||
|Total assets inconsistently|||||
||0.00|0.00|0.00|0.00|
|measured at fair value|||||
|Total liabilities|||||
|inconsistent measured at|0.00|0.00|0.00|0.00|
|fair value|||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1 The closing price of securities transaction in SZSE on 30 June 2016
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and inconsistent fair value measurement items at level 2
Not applicable
4. Valuation technique adopted and nature and amount determination of important parameters for consistent and inconsistent fair value measurement items at level 3
Not applicable
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing book value of consistent fair value measurement items at level 3
Not applicable
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens among consistent fair value measurement items at different levels
Not applicable
7. Changes in the valuation technique in the current period and the reason for change
Not applicable
8. Fair value of financial assets and liabilities not measured at fair value
Not applicable
9. Other
Not applicable
XII. Related party and related Transaction
1. Information related to parent company of the Company
|||||||
|-|-|-|-|-|-|
||||||Proportion of voting|
|||||Proportion of share||
||||||rights owned by|
|Name of parent||||held by parent||
||Registration place|Nature of business|Registered capital||parent company|
|company||||company against the||
||||||against the Company|
|||||Company (%)||
||||||(%)|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|SHENZHEN||||||
|INVESTMENT||Managing||||
||Shenzhen||RMB21.45 billion|63.82%|63.82%|
|HOLDINGS CO.,||state-owned assets||||
|LTD||||||

Notes: Information on the parent company:
By the end of the Reporting Period, the controlling shareholder of the Company is still Shenzhen Construction Investment Holdings in register book. In 2004,People’s Government of Shenzhen Municipality incorporated Shenzhen Construction Investment Holdings with the other two municipal asset management companies, namely Shenzhen Investment Management Corporation and Shenzhen Trade and Business Holding Company, and established Shenzhen Investment Holdings Co., Ltd. Thus, theCompany’s actual controlling shareholder is Shenzhen Investment Holdings Co., Ltd., a sole state-funded limited company, who was established in October 13, 2004.Its main business scope is investing, operating and managing the state-owned shares in sole-funded, holding and joint-stock enterprises by means of reorganization, capital running and assets proposal; carrying out real estate development and operation business after legally obtaining the land use right; making investment based on policies and strategies as required by Shenzhen SASAC, providing guarantee to municipal state-owned enterprises, and running other business authorized by Shenzhen SASAC. As a government department, Shenzhen State-owned Assets Supervision and Administration Bureau manage Shenzhen Investment Holdings Co., Ltd. on behalf ofPeople’s Government of Shenzhen Municipality. Thus, the final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen Government.
The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen Government.
Other notes:
2. Subsidiaries of the Company
See details to Notes IX. 1
3. Information on the joint ventures and associated enterprises of the Company
See details to Notes IX. 3
Information on other joint venture and associated enterprise of occurring related party transactions with the Company in Reporting Period, or form balance due to related party transactions in previous period:
|||
|-|-|
|Name|Relationship|

Other notes
4. Information on other related parties of the Company
|||
|-|-|
|Name|Relationship|
|Shenzhen Guesthouse Restaurant|Under the same control of the parent company of the Company|
|Shenzhen Foreign Economy & Trade Investment Co., Ltd.|Under the same control of the parent company of the Company|
|Shenzhen Investment Holdings Co., Ltd.|Under the same control of the parent company of the Company|

Other notes
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Information on acquisition of goods and reception of labor service
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||The approval trade|Whether exceed trade|Same period of last|
|Related party|Content|Reporting Period||||
||||credit|credit or not|year|

 Information of sales of goods and provision of labor service
Unit: RMB
|||||
|-|-|-|-|
|Related party|Content|Reporting Period|Same period of last year|
|Shenzhen Investment Holdings||||
||Provision of labor service|0.00|129,542.40|
|Co., Ltd.||||

Notes:
(2) Related trusteeship/contract
Lists of related trusteeship/contract:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Name of the|Name of the|||||Income|
|entruster/contract|entrustee/|Type|Initial date|Due date|Pricing basis|recognized in the|
|ee|contractor|||||Reporting Period|

 Notes:
Lists of entrust/contractee
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Name of the|Name of the|||||Charge|
|entruster/contract|entrustee/|Type|Initial date|Due date|Pricing basis|recognized in the|
|ee|contractor|||||Reporting Period|

 Notes:
(3) Information of related lease
The Company was lessor:
Unit: RMB
|||||
|-|-|-|-|
|||The lease income confirmed in|The lease income confirmed in|
|Name of lessee|Category of leased assets|||
|||this year|last year|

The Company was lessee:
Unit: RMB
|||||
|-|-|-|-|
|||The lease income confirmed in||
|lessor|Category of leased assets||Category of leased assets|
|||this year||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|Shenzhen Investment Holdings||||
||Rental|100,715.80|172,421.46|
|Co., Ltd.||||

Notes:
(4) Related-party guarantee
The Company was guarantor:
Unit: RMB
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|Secured party|Guarantee amount|Start date|End date||
|||||or not|

The Company was Secured party
Unit: RMB
||||||
|-|-|-|-|-|
|||||Execution accomplished|
|Guarantor:|Guarantee amount|Start date|End date||
|||||or not|

Notes:
The Company and its subsidiariesdidn’t provide guarantees for other companies beyond the range of consolidated financial statements. As of the end of Reporting Period, the Company had repaid the entire bank loan. The guarantees those Company and its subsidiaries provided to each other had been canceled.
(5) Inter-bank lending of capital of relatedparties：
Unit: RMB
||||||
|-|-|-|-|-|
||Amount borrowed and||||
|Related party||Initial date|Due date|Explanation|
||loaned||||
|Borrowed|||||
|Loaned|||||

(6) Related party asset transfer and debt restructuring
Unit: RMB
|||||
|-|-|-|-|
|Related party|Content|Reporting Period|Same period of last year|

 (7) Rewards for the key management personnel
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Total rewards for the key management|||
||2,238,223.00|2,521,859.00|
|personnel (tax included)|||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (8) Other related-party transactions
In November 2012, Shenzhen Foreign Economy& Trade Investment Co., Ltd. (hereinafter referred to as FET Company”) and Shenzhen Shenxin Taxi Co., Ltd. (hereinafter referred to as “SX Company”) concluded and signed Contract on Entrusted Management of Divestiture Assets and Liabilities, promising that FET Company has entrusted SX Company to liquidate, manage and dispose of Divestiture Assets, see 2, Section X Financial Report, (IX), (1) According to the Contract on Entrusted Management, during Reporting Period, SX Company paid the assets operating income of RMB626,000 to FET Company.
During the entrusted operating period in January-June of 2016, the situation of divestiture assets was as followed: Item Amount
||
|-|
|Operation revenue|
|Operation cost|
|Business tax and surcharges|
|Administrative expenses|
|Total profits|
|Income tax expense|
|Net profit|

Notes: the management costs included paying operation income of RMB626,000 to FET Company.
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||Closing balance||Opening balance||
|Name o f item|Related party|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
||Anhui Nanpeng|||||
|Other accounts||||||
||Papermaking Co.,|8,311,904.00|8,311,904.00|8,047,712.00|8,047,712.00|
|receivable||||||
||Ltd.|||||
||Shenzhen Wufang|||||
|Other accounts||||||
||Pottery & Porcelain|1,747,264.25|1,747,264.25|1,747,264.25|1,747,264.25|
|receivable||||||
||Industrial Co., Ltd.|||||
||Shenzhen|||||
|Other accounts||||||
||Guesthouse|909,960.40|909,960.40|909,960.40|909,960.40|
|receivable||||||
||Restaurant|||||

(2) Payables
Unit: RMB
|||||
|-|-|-|-|
|Name o f item|Related party|Closing book balance|Opening book balance|
|Other account payable|Shenzhen Jifa Warehouse Co.,|26,296,665.14|26,296,665.14|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
||Ltd.|||
||Tianan International Building|||
|Other account payable|Property Management|5,214,345.90|5,214,345.90|
||Company of Shenzhen|||

7. Related party commitment
No such case in Reporting Period.
8. Other
Not applicable
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable√ Not applicable
2. The Stock payment settled by equity
□ Applicable√ Not applicable
3. The Stock payment settled by cash
□ Applicable√ Not applicable
4. Modification and termination of the stock payment
Naught
5. Other
Naught
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
|||
|-|-|
|Item|Closing amount|
|Large amount contract of real estate development project signed but|1,087,871,451.87|
|derecognized in financial statements.||
|Total|1,087,871,451.87|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 2. Contingency
(1) Significant contingency at balance sheet date
A. About transferring Jiabin Building contentious matter ( Now rename as: Longyuan Development Building; former name Jinlihua CommercialPlaza）
In 1993, the Company signed Right of Development Transfer Contract of Jiabin Building (name of Jiabin Building has been changed to Jinlihua Commercial Plaza) with Shenzhen Haibin Property Development Co., Ltd. (name of which has been changed to Shenzhen Jiyong Property Development Co., Ltd., hereinafter referred to as Jiyong Company). In January 1999, Jiyong Company sued the company to Guangdong HigherPeople’s Court (hereinafter referred to as “Guangdong Higher Court”) for termination of the transfer contract and refund of the transfer consideration and construction payment paid on the ground that the area of premises was in discrepancy with the contract. With respect to this, the Company counterclaimed the opposing party to pay back the rest transfer consideration and applied for sealing up their property with an area of 28,000 square meters.
On July 29, 2001, Guangdong Higher Court issued Civil Court Judgment YGFM (1999) No. 3 (hereinafter referred to as Judgment No. 3) to judge that① the Company should transfer the title of land use right specified in the transfer contract to Jiyong Company within 30 days from the date the judgment taking into effect and② Jiyong Company should pay off the transfer consideration amounting to RMB143, 860,000.00 within 60 days from the date the Company transferred the title of land use right. On November 27, 2001, the Company applied to Guangdong Higher Court for forcible execution, however Guangdong Higher Court adjudicated to release the sealing property of Jiyong Company approximately 10,000 square meters since Industrial& Commercial Bank of China Zhejiang Branch disagree to seal the properties.
The Company thought the applicable law of the decision was error, and raised an objection to High Court of Guangdong province.
In September 2005, the High Court of Guangdong province delivered unlocked decision to the Departments of Land and House Property Registers of Shenzhen. The aforesaid about ten thousand square meters of real estate was officially unlocked.
In January 2006, Guangdong Higher Court issued Civil Court Judgment YGFZ (2002) No. 1 and adjudicated because that① the Company has not yet transferred the title of land use right specified in the transfer contract to Jiyong Company and② Jiyong Company cannot provide other properties available for execution and the Company also cannot provide the property available for execution, the second judgment of the Judgment No. 3 - “Jiyong Company should pay off the transfer consideration amounted RMB143,860,000 within 60 days from the date the Company transferred the title of land use right” is terminated for execution. When the conditions causing termination for execution of the second judgment are eliminated, the second judgment should still be executed. In March 2006, according to the ordain of Guangdong HigherPeople’s Court, the properties in Jiabin Building that have been sealed up in this case have been released automatically. On September 2009, company received YGFZ (2002) No. 1-1 Resume Execution Notice from Guangdong Province Higher Court claimed to resume execution the case that the transfer money owed by Jiyong company about Jiabin building project.
In October 2009, the Company received (Verdict YGFZ (2002) No. 1-2) from Guangdong Higher Court. The verdict claimed: The resume execution of this case is according to the "The requirements for the Guangdong Higher Court to concentrate the implementation of accumulated cases" Through the investigation conducted by Guangdong Higher Court to Shenzhen department of motor vehicles, Shenzhen Securities Registration and Settlement Organizations, Shenzhen Land resources and real estate administration and the opening bank of the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 executed party, the executed party– Jiyong Company does not have any executable property. For these, Guangdong Higher Court adjudicated:① Terminate the executive procedure of Verdict YGFZ (2002) No.1② When the execution conditions are satisfied, the applicant can apply for resume execution.
According to note (VII) 3, Shenzhen Longyuan-Kaili-Hengfeng Real Estate Co., Ltd. (hereinafter as the “Longyuan-Kaili”) and Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter as the “Huaneng Property”) plan to conduct reconstructions to the plaza, On 3 mar. 2011, the Company, The First Administration Under Shenzhen Planning And Land Resources Committee Directly and Longyuan-Kaili had registered the land of Jin Lihua Building to its name according to SDHZ (1992) No. 0228 Second Supplementary Agreement of Shenzhen Grant Contract of Land Use Right signed in 2011 and Meeting Summery about Research of Dealing with Problem Building Issued (No. 481) by Shenzhen Municipal Government.
In April 2012, the Company raised the subrogation right lawsuit to Shenzhen Luohu DistrictPeople’s Court, based on thecreditor’s right for Jiyong Company decided by the Civil Ruling Paper YGFMC (1999) No. 3, prosecuting the obligor of JiyongCompany—Shenzhen Zongli Investment Co., Ltd. (hereinafter referred to as “Zongli Company”), which was required to compensate for the Company within its debt range for Jiyong Company. Meanwhile, due to it was highly similar in the management level of Shenzhen Huaneng-Jindi Property Co., Ltd. (hereinafter referred to as “Huaneng-Jindi Company”) and Zongli Company, the Company believed that there was significant related-party relationship between Huaneng-Jindi Company and Zongli Company, therefore, the Company also prosecuted Huaneng-Jindi Company, which was required to undertake the joint liability for the debts born by Zongli Company. On 11 September 2013 Shenzhen Luohu District People's Court issued (2012) SLFMECZ No. 1150 paper of civil judgment; the decision rejected theCompany’s claims. The Company refused to accept the verdict, has instituted an appeal to the Shenzhen Intermediate People's Court, In March 2015, Shenzhen IntermediatePeople’s Court made Civil Judgment (2014) SZFSZZ No. 400, the decision to reject the appeal of the Company, and maintain the original judgment.
As the executable property are not found in the case so far, the Company withdraw bad debt provision for Shenzhen Jiyong Properties& Resources DevelopmentCompany’s transfer amount of Jin Lihua Commercial Plaza. In August 2015, the Company as a creditor applied to Shenzhen IntermediatePeople’s Court for the bankruptcy and insolvency of Shenzhen Jiyong Properties& Resources Development Company, now the Company is waiting for acceptance and inspection.
B. Lawsuit item about land approval of Meisi Company
In June 2004, Shenzhen Meisi Industrial Co., Ltd. (hereinafter referred to as “Meisi Company”) prosecuted Shenzhen Luohu Economic Development Co., Ltd and the Company to Shenzhen IntermediatePeople’s Court(hereinafter referred to as “Shenzhen Intermediate Court”) for illegal use of land owned by Meisi Company and request for ceasing the infringing act and receiving a compensation amounted RMB8 million. In March 2005, Shenzhen Intermediate Court issued Civil Ruling Paper SZFMCZ (2004) No. 108 and adjudicated that the Company should return the land with an area of 4,782 square meters to Meisi Company within 3 months and other claims of Meisi Company were overruled. The Company refused to accept the verdict and appealed to Guangdong Higher Court. On November 25, 2005, Guangdong Higher Court adjudicated that the Civil Ruling Paper SZFMCZ (2004) No. 108 issued by Shenzhen Intermediate Court should be cancelled and the prosecution of Meisi Company were overruled.
During the process of trial of second instance, Meisi Company applied to Registration Center for Property of Real Estate of Shenzhen Municipality for revoking Property Ownership Certificates SFDZ No. 3000320987 and No. 300119899 owned by the Company. On July 7, 2005, Registration Center for Property of Real Estate of Shenzhen Municipality issued the reply of SFDH (2005) No. 84 to Meisi Company and judged that aforesaid certificates are legal and effective and should not be revoked. Meisi Company disagreed with this judgment and applied the
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 administrative reconsideration to the People's Government of Shenzhen Municipality. On October 8, 2005, the People's Government of Shenzhen Municipality issued Decision on Administrative Reconsideration SFFJ (2005) No. 294 and judged that aforesaid 2 certificates were registered illegally and should be revoked, reply of SFDH (2005) No. 84 was canceled accordingly.
The Company refused to accept Decision on Administrative ReconsiderFation SFFJ (2005) No. 294 and prosecuted an administrative litigation to Shenzhen Intermediate Court on October 20, 2005. Shenzhen Intermediate Court issued Administrative Judgment SZFXCZ (2005) No. 23 and adjudicated that Decision on Administrative Reconsideration SFFJ (2005) No. 294 is sustained. The Company disagreed with this administrative judgment and appealed to Guangdong Higher Court on August 2, 2006. Guangdong Higher Court issued Administrative Judgment YGFXZZ (2006) No. 154 in which the appeal was rejected and Administrative Judgment SZFXCZ (2005) No. 23 was sustained. According to this Judgment, Shenzhen Municipal Bureau of Land Resources and Housing Management would reconsider the request of Meisi Company to revoke the Property Ownership Certificates SFDZ No. 3000320987 and No. 3000119899 of the Company.
On May 15, 2007, Registration Center for Property of Real Estate of Shenzhen Municipality issued Decision on Revoking the Property Ownership Certificates SFDZ No. 3000320987 and No. 3000119899 (SFZ (2007) No. 27). Registration Center for Property of Real Estate of Shenzhen Municipality decided to revoke property ownership certificates SFDZ No. 3000320987 and No. 3000119899 owned by the Company that indicating the ownership of occupied property of Meilin Workshop, Comprehensive Building and the land use right of 11,500 square meters and restore the registration of the ownership of occupied property of Meilin Workshop, Comprehensive Building and the land use right of certificates of SFDZ No. 0103142 and No. 0103139. The Company had the ownership of occupied property of Meilin Workshop, Comprehensive Building and the land use right of 11,500 square meters according to original property ownership certificates.
On July 9,2007, the Company applied the administrative reconsideration to the Administrative Reconsideration Office of thePeople’s Government of Shenzhen Municipality, which considered that those action that Registration Center for Property and Real Estate of Shenzhen Municipality revoked property ownership certificate SFDZ No. 3000320987 and No. 3000119899 owned by the Company and restore the registration of Meilin Workshop, Comprehensive Building and land use right violated the provisions of the Decision on Strengthening Land Market Management and further Enlivening and Standardizing Real Estate Market (SF (2001) No. 94) promulgated byPeople’s Government of Shenzhen Municipality, and requestedPeople’s Government of Shenzhen Municipality to rescind the Decision. On September 6, 2007, thePeople’s Government of Shenzhen Municipality issued Decision on Administrative Reconsideration SFFJ (2007) No. 255 to sustain the administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing Management.
In November 2007, Shenzhen Municipal Bureau of Land Resources and Housing Management rejected the application of Meisi Company for revoking Property Ownership Certificates SFDZ No. 0103142 and No. 0103139. Meisi Company prosecuted an administrative litigation to Shenzhen FutianPeople’s Court (hereinafter referred as to “Futian Court”) to ask for revoking the administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing Management. The Company was involved as third party. Court session started on January 8, 2008 with litigation number of (2008) SFFXCZ No. 10 (hereinafter referred as to “No.10 Case”). On January 2008, Meisi Company prosecuted an administrative litigation to Futian Court for revoking the above administrative decision of Shenzhen Municipal Bureau of Land Resources and Housing Management, revoking Property Ownership Certificates SFDZ No. 0103142 and No. 0103139, and restoring the land use right to Meisi Company with the litigation number of SFFX (2008) No. 70 (hereinafter referred as to “No.70 Case”). On May 2008, the Futian Court made adjudication to No. 70 Case in which the property ownership certificates SFDZ No. 0103142 and No. 0103139 owned by the Company were revoked and Shenzhen Municipal Bureau of Land
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Resources and Housing Management were required to re-investigate the application of Meisi Company. The company, the Shenzhen Municipal Bureau of Land Resources and Housing Management as well as Meisi Company refused to accept the verdict and made an appeal. On July 2008, the Company has received the Administrative Ruling Paper from Futian Court in which the trial of No. 10 Case was terminated.
On December 2008, Shenzhen Intermediate Court issued the Administrative Ruling Paper SZFXZZ (2008) No. 223, in which the final adjudication of appeal No. 70 Case was made and the original verdict was sustained. Moreover, the final adjudication stated that the controversy over the land use right in this case between Meisi Company and the Company should be settled through civil procedures; the Bureau of Land Resources and Housing Management of Shenzhen Municipality should not proceed the registration procedure until the controversy is final settled.
On February 11, 2009, the Company received the Civil Complaint from Futian Court; Meisi Company has made a civil prosecution against the Company and Shenzhen Luohu Commercial Development Co., Ltd. for the confirmation of MeisiCompany’s land use right and the buildings in original Property Ownership Certificates SFDZ No., 0103142 and No., 0103139. Furthermore, Meisi Company requests that return of related land use right and a compensation of RMB7.5 Million. The Company has submitted an objection to jurisdiction. On March 4, 2009, Futian Court sent the Notice to the Company to inform that this case has been transferred to Shenzhen Intermediate Court for adjudication.
On 22 December 2009, the Company received court ruling delivered by the Guangdong Higher Court. After investigated by Guangdong Higher Court, it is considered that the retrial application to Shenzhen Intermediate Court Judgment SZFZ (2008) No. 223 by the company is complied to the law, and adjudicated:① Arraign by Guangdong Highest People's Court② suspended the execution of the original verdict during the retrial.
On 15 Aug. 2011, the Company received the Administrative Ruling Paper (YGFSJZ Zi (2010) No. 8) from the Guangdong Higher Court, which maintained the Administrative Ruling Paper (SZFXZ Zi (2008) No. 223), and it believed that the dispute on the land ownership for both parties was civil right confirmation, and both parties should find other legal way to solve.
The Company received the ruling of Shenzhen Medium People's Court in October 2012, at which the court approved legally MeisiCompany’s application on canceling the lawsuit towards the Company. After receiving the above ruling, due to the Administrative Ruling Paper SZFXZ Zi (2008) No. 223 had clearly ruled that the dispute on Meilin land between the Company and Meisi Company should be settled through civil law procedures, therefore, the Company raised the civil lawsuit to Meisi Company and Luojingfa Company, requiring to recognize the ownership of the above involved land for the Company, and the court has accepted the above mentioned lawsuit. Then, Meisi Company raised the counterclaim towards the Company, requiring recognizing its ownership of the above involved land. And the two cases were combined for public trial on 1 March 2013, and nowit’s waiting for ruling.
The Company believes that the land use right and ownership of above building should be legally confirmed to the Company. The Company will secure its own legal rights through all legal means, and the above issues do not have significant impact on theCompany’s financial position.
C. Shenzhen Hetaiheng prosecuted the Company to undertake joint liability for the debts for Shenzhen International Trade Center Industry Development Co., Ltd.
On 31 July 2015, Shenzhen Luohu District People's Court issued (2015) SLFMECZ No. 2499 paper of civil judgment. It decided the Company and China (Shenzhen) Education Business Shares Co., Ltd. (“China Education Company”) shall undertake the joint liability for the debts for Shenzhen International Trade Center Industry Development Co., Ltd. (“International Trade Center Company”) declared under (2002) SLFJYCZ No. 582 paper
of civil judgment.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 According to (2002) SLFJYCZ No. 582 paper of civil judgment, Shenzhen Xinguang Industry Co., Ltd. (“Xinguang Company”) shall, within ten days after the effectiveness of such paper, clean off 2.21 million of principal and interest thereon (such interest shall be counted from 22 Dec. 2000 to the date when the debts are paid off based on related regulations by thePeople’s Bank of China as agreed under Loan Contract) to Shenzhen Shendong Branch of Industrial and Commercial Bank of China (“Shendong Branch of ICBC”); and International Trade Center Company shall undertake joint liability for cleaning off such debts.
After the effectiveness of (2002) SLFJYCZ No. 582 paper of civil judgment, Shendong Branch of ICBC has only been paid off 31,551, and then thecreditor’s right has been transferred to Shenzhen Office of China Orient Asset Management Corporation, who has applied for execution by force to thePeople’s Court, but received no more payment. On 22 May 2008, Shenzhen Office of China Orient Asset Management Corporation further transferred thecreditor’s right to Dongfu Asset Management Corporation. On 24 Oct. 2010, Dongfu Asset Management Corporation again transferred such right to Shenzhen Hetaiheng Investment Co., Ltd., which has been paid 700,000 during the execution of this paper.
In 2013, International Trade Center Company was under bankruptcy liquidation. On 17 Dec. 2014, Shenzhen IntermediatePeople’s Court issued (2013) SZFPZ No. 24-3 paper of civil judgment to end the bankruptcy proceeding on International Trade Center Company due to its liquidation failure since theCompany’s address was unknown and management failed to take over theCompany’s property and financial data. On 1 Apr.2015, the management of International Trade Center Company dissolved the company.
Under (2015) SLFMECZ No. 2499 paper of civil judgment, Shenzhen Hetaiheng Investment Co., Ltd. claimed that the Company and China Education Company shall undertake the joint liability for paying off the debts under (2002) SLFJYCZ No. 582 paper of civil judgment (By 31 Mar. 2015, 2,178,449.00 of principal, with the interest counted from the date as regulated by the law to the date when the debts are paid off).
It is decided in the first-instance judgment by Shenzhen Luohu District People's Court that the two sharing companies of International Trade Center Industry Company, namely the Company and China Education Company, as well as Shicai Company though not involved in this case, shall undertake the joint liability for the debts of International Trade Center Company under (2002) SLFJYCZ No. 582 paper of civil judgment since they failed to perform the liquidation liability and to provide accounting books during bankruptcy proceedings of International Trade Center Company, which led to the failure of an overall liquidation; as for the debt amount, this Court did not make any decision since such amount may be changed with the performance of paying off the debts under (2002) SLFJYCZ No. 582 paper of civil judgment by parties involved.
The Company refuses to accept the above judgment and has appealed against such decision.
During the Reporting Period, the Company estimated about 834,999.50 of debts based on (2015) SLFMECZ No. 2499 paper of civil judgment and its actual holding38.33% of the shares of International Trade Center Company.② Guarantee
A. TheCompany’s subsidiary Dongguan International Trade Center Changsheng Real Estate Development Co., Ltd. belongs to provisional qualification real estate development enterprise, when dealing with the application of approval of the presale of houses, the commercial housing quality guarantee after the liquidations of enterprise bankruptcy, dissolution, Dongguan International Trade Center Changsheng Real Estate Development Co., Ltd. submitted guarantee RMB12,402,160.00 to Bank of Communications, Duangguang, Dalang Branch, the bank issue 9 Guarantee Letter for irrevocable goods, of which one guarantee of RMB1,468,870.00, from 30 June 2015 to 31 December 2020, and the remained were RMB10,933,290.00 from 1 July 2015 to 31 December 2020. B. Guarantee for the owners: the Company and its subsidiaries are the purchasers providing mortgage guarantee for the bank. As of 30 June 2016, the unsettle guarantee amount was RMB1410.41 million, the guarantee event was provided by real estate developer for smallowners’ purchases of commercial houses of the Company, which
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 was the common phenomenon in the industry
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3. Other
Naught
XV. Events after balance sheet date
1. Significant events had not adjusted
Unit: RMB
|||||
|-|-|-|-|
|||Influence number to the||
||||Reason of unable to estimate|
|Item|Content|financial position and operating||
||||influence number|
|||results||

2. Profit distribution
Unit: RMB
|||
|-|-|
|Planning allocation of profits or dividends|0.00|
|Profits or dividends approved, reviewed and issue by the||
||0.00|
|declaration||

3. Sales return
Naught
4. Notes of other significant events
Notes 1: as for the situation of the property receivable of F14, F15 of Longyuan Chuangzhan Building, please refer to Notes XIV. 2 of Section X. Financial Report. During Reporting Period, in line with the government website shown, Longyuan Chuangzhan Building had been recorded for the completion acceptance on 3 February 2016 On 26 April 2016 and 17 June 2016, Longyuan-Kaili and Huaneng Property had issued occupation Announcement, which stated that Longyuan Chuangzhan Building had passed the completion acceptance of government department, and had occupation conditions, from 22 June 2016,Longyuan Chuangzhan Building dealt with occupation procedure.
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 XVI. Other significant events
1. The accounting errors correction in previous period
(1) Retrospective restatement
Unit: RMB
|||||
|-|-|-|-|
|||Name of the influenced report||
|Content|Processing program||Cumulative impact|
|||items during comparison period||

(2) Prospective application
||||
|-|-|-|
|Content|Processing program|Reason of adopting prospective application|

 2. Debt restructuring
Not applicable
3. Replacement of assets
(1) Non-monetary assets exchange
Not applicable
(2) Other assets replacement
Not applicable
4. Pension plan
Not applicable
5. Discontinuing operation
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Termination of|
|||||||the business|
|||||Income tax||profits|
|Item|Sales revenue|Expense|Total profits||Net profit||
|||||expense||attributable to the|
|||||||parent company|
|||||||owner|

Other notes
Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 6. Segment information
(1) Recognition basis and accounting policies of reportable segment
TheGroup’s business includes real estate business, housing lease management, transportation, catering services, and other business (including: mechanical and electrical professional maintenance business, mechanics, engineering supervision, parking lot, because of the above businesses income are small, approve them being merged), etc. The Group separately organized and managed according to the business and the properties of products and services provided. Each business division of the Group was a business group, provided the facing risk and obtained rewards and products different from other division.
A. Real estate business divisions: real estate development, sales and rental
B. The property management business divisions: building management
C. Transportation business division: operating passenger car
D. Diet services: catering service
E. Other business: operating mechanical and electrical professional maintenance business, mechanics, engineering supervision business, and parking lot
The management considering the decision of resources and evaluation of performance, separately
manage the operating results of each unit of business.
(2) The financial information of reportable segment
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Property|Transportatio|Catering|||Offset in||
|Item|Real estate||||Others|Undistributed||Total|
|||management|n|service|||segment||
|Operation|139,265,963.|185,145,485.|29,370,584.4|11,632,035.3||||372,057,479.|
||||||6,643,411.11||||
|revenue|27|77|2|9||||96|
|Trading|||||||||
|revenues|||||||||
||1,403,925.18|2,485,429.51||444,273.58|2,820,875.92||-7,154,504.19||
|between|||||||||
|divisions|||||||||
|Sales|16,774,094.8|||||||16,539,759.5|
||||||||-234,335.22||
|expenses|1|||||||9|
|Investment|||||||||
|income to|||||||||
|associated|||||||||
|||||||1,158,576.32||1,158,576.32|
|enterprises|||||||||
|and joint|||||||||
|ventures|||||||||
|Asset|||||||||
|impairment|3,357,861.60|205,596.46|25,869.42|-572.04|-24,741.09||246,883.61|3,810,897.96|
|loss|||||||||
|Depreciation|8,972,099.87|626,240.30|6,723,199.65|185,445.32|25,243.77||-44,062.02|16,488,166.8|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||||||
|-|-|-|-|-|-|-|-|-|
|and||||||||9|
|amortization|||||||||
|charges|||||||||
|Total profits|-10,424,938.4|11,051,764.1|||||||
||||4,785,969.09|320,583.18|-515,583.68|1,801,550.65|-9,656,069.08|-2,636,724.14|
|(losses)|0|0|||||||
||8,767,480,38|357,129,059.|477,561,967.||11,200,374.4|101,448,650.|-3,809,558,87|5,910,285,34|
|Total assets||||5,023,788.63|||||
||3.60|88|99||5|40|7.77|7.18|
|Total|6,773,281,33|225,020,382.|259,080,680.|||107,427,002.|-3,511,194,26|3,861,442,70|
|||||5,145,668.57|2,681,902.58||||
|liabilities|2.76|85|88|||00|0.90|8.74|
|Long term|||||||||
|equity|||||||||
|investments|||||||||
|||||||35,684,753.7||35,684,753.7|
|in associated|||||||||
|||||||3||3|
|companies|||||||||
|and joint|||||||||
|ventures|||||||||
|Non-current|||||||||
|assets except|||||||||
||45,209,905.0||-11,144,934.9|||||33,514,713.7|
|long term||-347,735.74||-151,400.33|-51,120.30||||
||8||5|||||6|
|equity|||||||||
|investment|||||||||

(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable segment, shall disclose the reason.
Not applicable
(4) Other notes
Information of income of foreign trade:
A. Income of foreign trade of production and labor serve
Item Reporting Period Same period of last year
Real estate 139,265,963.27 122,309,636.98
Property management 185,145,485.77 166,954,853.87
Transportation 29,370,584.42 29,724,103.57
Catering service 11,632,035.39 11,173,151.84
Others 6,643,411.11 8,599,564.13
Total 372,057,479.96 338,761,310.39
B. Geography information
Distribution of foreign trade income:
|||
|-|-|
|Item|Reporting Period|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||
|-|-|
|Mainland of China|371,895,633.55|
|Countries and regions outside the Chinese mainland|161,846.41|
|Total|372,057,479.96|

Distribution of total non current assets liabilities:
|||
|-|-|
|Item|Closing balance|
|Mainland of China|755,033,380.91|
|Countries and regions outside the Chinese mainland|2,162,860.36|
|Total|757,196,241.27|

C. Customers information
The customers of the Group were rather dispersed; there was no individual transactionover10%.
7. Other important transactions and events have an impact oninvestors’ decision-making
Not applicable
8. Other
By 30 June 2016, the Company held 56,600,000.00 (reported under Other Receives) ofcreditor’s right on Gintian Industry (Group) Co., Ltd. (“Gintian Industry”) and 53,031,578.72 of withdrawn bad debt provision on the book. On 29 January 2016, Shenzhen IntermediatePeople’s Court issued (2015) SZFPZ No. 14-5 paper of civil judgment. It is considered that The Reorganization Plan of Gintian Industry (Group) Co., Ltd. has clearly defined the standard of successful execution of such plan as “the cash and shares distributed to creditors based on reorganization plan have been transferred to the accounts specified by creditors or deposited to those specified by the management”. Under the supervision by the management, Gintian Industry, according to its reorganization plan and thecreditors’ payment instruction, has paid cash to the creditors, and meanwhile transferred its tradable share A, non-tradable share A and share B to the accounts specified by creditors. Besides, Gintian Industry has also deposited the payment and shares distributed based on thecreditors’ rights those not providing qualified capital accounts or securities accounts. Therefore, Gintian Industry has successfully executed the reorganization plan. As from suchexecution, Gintian Industry shall not undertake any liability for the debts reduced or exempted by in the reorganization plan. The paper further confirmed the successful execution of the reorganization plan by Gintian Industry and thus ended its bankruptcy proceedings.
Based on the final execution of The Reorganization Plan of Gintian Industry (Group) Co., Ltd., the Company received 772,717 tradable A shares, 712,123 non-tradable A shares and 447,217 B shares distributed by Gintian Industry. Counted on the price issued on the last trading date before the trading suspension of Gintian Industry (10 Dec. 2014), 2.09 per A share and 1.04 per B share, the assets compensated shall be valued at 3,568,421.28. According to (2015) SZFPZ No. 14-5 paper of civil judgment issued by Shenzhen IntermediatePeople’s Court, Gintian Industry has successfully executed the reorganization plan, and as from such execution, Gintian Industry shall not undertake any liability for the debts reduced or exempted by in the reorganization plan. Therefore, the Company shall write off the receivables of 53,031,578.72 from Gintian. Since this asset item has withdrawn bad debt provision, it will not exert any influences on business results.
In line with the Processing Scheme of Reorganization of Drawing Share of Jintian Industrial (Group) Co., Ltd.
administrative staff of Jintian Industrial (Group) Co., Ltd. The relevant drawing share of debtor with expected
debt right had been negated, which can be used for additional distribution to all debtors, the total number of shares
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 distributed was: A share tradable share: 3,865,491 shares, non-tradable share: 1,968,096 shares, B share: 2,180,872 shares (the actual share number recognized in line with the additional distribution plan of Jintian Industrial (Group) Co., Ltd. The number of the compensation share of the Company in the additional distribution had not yet been confirmed, which waited for the administrative personnel of Jintian Industrial (Group) Co., Ltd. to distribute.
XVII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|||||Withdra|||||||
|Category|||||Book||||||
|||Proportio||wal|||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n||proportio|||n||proportion||
|||||n|||||||
|Accounts receivable|||||||||||
|with insignificant|||||||||||
|single amount for|96,647,8||96,647,8|||96,647,||96,647,88|||
|||95.67%||100.00%|0.00||98.08%||100.00%||
|which bad debt|89.05||89.05|||889.05||9.05|||
|provision separately|||||||||||
|accrued|||||||||||
|Accounts receivable|||||||||||
|withdrawal of bad|||||||||||
||4,315,04||710,416.||3,604,627|1,828,8||849,254.7|||
|debt provision of by||4.27%||16.46%|||1.86%||46.44%|979,569.49|
||3.21||07||.14|24.21||2|||
|credit risks|||||||||||
|characteristics:|||||||||||
|Accounts receivable|||||||||||
|with insignificant|||||||||||
|single amount for|54,380.3||54,380.3|||54,380.|||||
|||0.05%||100.00%|0.00||0.06%|54,380.35|100.00%||
|which bad debt|5||5|||35|||||
|provision separately|||||||||||
|accrued|||||||||||
||101,017,||97,412,6||3,604,627.14|98,531,||97,551,52||979,569.49|
|Total||100.00%||96.43%|||100.00%||99.01%||
||312.61||85.47|||093.61||4.12|||

Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable□ Not applicable
Unit: RMB
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
|Accounts receivable|Closing balance||||
|(classified by units)|Account receivable|Bad debt provision|Withdrawal proportion|Withdrawal reason|
|||||Involved in lawsuit and|
|Shenzhen Jiyong||||no executable property,|
|Properties & Resources|93,811,328.05|93,811,328.05|100.00%|please refer to Section|
|Development Company||||IX. Financial Report|
|||||XIV. 2. (1)|
|Shenzhen Tewei Industry||||Irrecoverable for long|
||2,836,561.00|2,836,561.00|100.00%||
|Co., Ltd.||||time|
|Total|96,647,889.05|96,647,889.05|--|--|

In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Not applicable
Unit: RMB
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Account receivable|Bad debt provision|Withdrawal proportion|
|Subentry within 1 year||||
|Within 1 year (including 1 year)|3,136,038.50|94,081.16|3.00%|
|Subtotal within 1 year|3,136,038.50|94,081.16|3.00%|
|2 to 3 years|803,814.00|241,144.21|30.00%|
|Over 5 years|375,190.71|375,190.71|100.00%|
|Total|4,315,043.21|710,416.07|16.46%|

 Notes:
For details, please refer to Section IX. Financial Report V. 11.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Not applicable
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-138,838.65; the amount of the reversed or collected part during the Reporting Period was of RMB000.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB
||||
|-|-|-|
|Name of the entity|Amount|Method|
|Total|0.00|--|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (3) The actual write-off accounts receivable
Unit: RMB
|||
|-|-|
|Item|Amount|

Of which: significant actual verification of accounts receivable
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the entity|Nature|Amount|Reason|Procedure|because of related|
||||||party transactions|
|Total|--|0.00|--|--|--|

Notes:
No such case in Reporting Period.
(4) Top five of account receivable of closing balance collected by arrears party
||||
|-|-|-|
|Name of the entity|Closing balance|Proportion (%)|
|Shenzhen Jiyong Properties &Resources DevelopmentCompany|93,811,328.05|92.87%|
|Shenzhen Tewei Industry Co.,Ltd.|2,836,561.00|2.81%|
|RAINBOW DEPARTMENTSTORE CO., LTD|1,179,004.71|1.17%|
|China Pacific Property InsuranceCo., Ltd.|1,063,757.50|1.05%|
|Seven Days Hotel (Shenzhen)Co., Ltd.|338,850.50|0.34%|
|Total|99,229,501.76|98.24%|

(5) Derecogniziton of account receivable due to the transfer of financial assets
Naught
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Naught
Other notes:
Naught
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 2. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category||||Withdra|Book||||||
|||Proportio||wal|||Proportio||Withdrawal|Book value|
||Amount||Amount||value|Amount||Amount|||
|||n||proportio|||n||proportion||
|||||n|||||||
|Other accounts|||||||||||
|receivable with|||||||||||
|insignificant single|186,958,||89,306,6||97,651,82|188,204||89,137,84||99,066,314.|
|||94.05%||47.77%|||10.08%||47.36%||
|amount for which|504.39||76.72||7.67|,157.06||2.62||44|
|bad debt provision|||||||||||
|separately accrued|||||||||||
|Other accounts|||||||||||
|receivable withdrawn||||||1,676,9|||||
||1,554,43||8,818,27||1,545,621|||9,623,906||1,667,326,0|
|bad debt provision||89.14%||0.57%||49,946.|89.79%||0.57%||
||9,963.77||7.15||,686.62|||.48||39.77|
|according to credit||||||25|||||
|risks characteristics|||||||||||
|Other accounts|||||||||||
|receivable with|||||||||||
|insignificant single|2,415,32||2,415,32|||2,415,3||2,415,326|||
|||0.14%||100.00%|0.00||0.13%||100.00%||
|amount for which|6.23||6.23|||26.23||.23|||
|bad debt provision|||||||||||
|separately accrued|||||||||||
||||||1,643,273,514.29|1,867,5||||1,766,392,354.21|
||1,743,81||100,540,|||||101,177,0|||
|Total||100.00%||5.77%||69,429.|100.00%||5.42%||
||3,794.39||280.10|||||75.33|||
|||||||54|||||

Other receivable with single significant amount and withdrawal bad debt provision separately at end ofperiod：
√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||||
|Other accounts receivable|||||
||Other accountsreceivable||||
|(unit）||Bad debt provision|Withdrawal proportion|Withdrawal reason|
|Shum Yip Properties||||Irrecoverable for long|
||105,067,052.17|7,415,224.50|7.06%||
|Development Co., Ltd.||||time|
|||||No paid assets according|
|Jintian Industrial (Group)|53,031,578.72|53,031,578.72|100.00%||
|||||to the creditors’|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
|Co., Ltd.||||reorganization plan|
|Anhui Nanpeng||||Irrecoverable for long|
||8,311,904.00|8,311,904.00|100.00%||
|Papermaking Co., Ltd.||||time|
|||||The Company was|
|Advances the shopping|||||
||6,481,353.60|6,481,353.60|100.00%|enforced to conduct,|
|mall gold business utilities|||||
|||||irrecoverable|
|Shanghai Yutong Real|||||
|estate development Co.,|5,676,000.00|5,676,000.00|100.00%|Judgments, irrecoverable|
|Ltd.|||||
|||||Irrecoverable for long|
|Wuyao Company|3,271,837.78|3,271,837.78|100.00%||
|||||time|
|Dameisha Tourism Center|2,576,445.69|2,576,445.69|100.00%|Suspend of projects|
|||||Project son hold|
|Elevated Train Project|2,542,332.43|2,542,332.43|100.00%||
|||||irrecoverable|
|Total|186,958,504.39|89,306,676.72|--|--|

In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Not applicable
Unit: RMB
|||||
|-|-|-|-|
||Closing balance|||
|Aging||||
||Other accounts receivable|Bad debt provision|Withdrawal proportion|
|Subentry within 1 year||||
|Within 1 year (including 1 year)|353,856.25|10,615.69|3.00%|
|Subtotal within 1 year|353,856.25|10,615.69|3.00%|
|1 to 2 years|307,600.00|30,760.00|10.00%|
|2 to 3 years|42,200.00|12,660.00|30.00%|
|3 to 4 years|4,853.16|2,426.58|50.00%|
|Over 5 years|8,761,814.88|8,761,814.88|100.00%|
|Total|9,470,324.29|8,818,277.15|93.11%|

 Notes:
For details, please refer to Section IX. Financial Report V. 11.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable√ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-805,629.33; the amount of the reversed
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 or collected part during the Reporting Period was of RMB 95,357.90.
Of which the significant amount of the reversed or collected part during the Reporting Period:
Unit: RMB
||||
|-|-|-|
|Name of the entity|Reversed or collected amount|Method|
|||Of which: recovered and reversed asset|
|Shum Yip Properties Development Co., Ltd.|95,357.90||
|||value|
|Total|95,357.90|--|

The amount of bad debt provision was RMB-805,629.33; the increase of amount of bad debt provision of foreign currency of creditor's rights receivable after exchange was RMB264, 192.00, the amount of reversed or recovered bad debt provision in the report period RMB95,357.90.
(3) The actual write-off other accounts receivable
Unit: RMB
|||
|-|-|
|Item|Amount|

Of which significant actual verification of other accounts receivable:
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Whether occurred|
|Name of the entity|Nature|Amount|Reason|Procedure|because of related|
||||||party transactions|
|Total|--|0.00|--|--|--|

Notes of write-off other accounts receivable:
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB
||||
|-|-|-|
|Nature|Closing book balance|Opening book balance|
|Margin|2,389,327.00|3,204,898.13|
|Pretty cash advance|186,178.00|47,200.00|
|Account receivable to subsidiary|1,650,090,170.42|1,769,778,048.64|
|Account receivable to affiliated company|10,059,168.25|9,794,976.25|
|Account receivable non-affiliated company|81,088,950.72|84,744,306.52|
|Total|1,743,813,794.39|1,867,569,429.54|

 (5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Closing balance of|
|Name of the entity|Nature|Closing balance|Aging|Proportion%||
||||||bad debt provision|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
|PRD Yangzhou Real||||||
||Account receivable|||||
|Estate Development||605,369,836.60|Within 5 year|34.72%||
||to subsidiary|||||
|Co., Ltd.||||||
|PRD Group Xuzhou||||||
|Dapeng Real Estate|Account receivable|||||
|||599,530,096.41|Within 5 year|34.38%||
|Development Co.,|to subsidiary|||||
|Ltd.||||||
|Dongguan||||||
|International Trade||||||
|Center Changsheng|Account receivable|||||
|||264,541,793.00|Within 4 year|15.17%||
|Real Estate|to subsidiary|||||
|Development Co.,||||||
|Ltd.||||||
|Shum Yip Properties||||||
||Account receivable|||||
|Development Co.,||105,067,052.17|Over 5 years|6.03%|7,415,224.50|
||to subsidiary|||||
|Ltd.||||||
|Shenzhen||||||
|Huangcheng Real|Account receivable|||||
|||81,840,000.00|Within 2 year|4.69%||
|Estate Management|to subsidiary|||||
|Co., Ltd.||||||
|Total|--|1,656,348,778.18|--|94.99%|7,415,224.50|

 (6) Account receivable involving government subsidies
Unit: RMB
||||||
|-|-|-|-|-|
||Project of government|||Estimated recovering|
|Name of the entity||Closing balance|Closing aging||
||subsidies|||time, amount and basis|
|Total|--|0.00|--|--|

Naught
(7) Other account receivable derecognized due to the transfer of financial assets
Naught
(8) Amount of transfer other account receivable and assets and liabilities formed by its continuous involvement
Naught
Other notes:
Naught
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 3. Long-term equity investment
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Investment to thesubsidiary|||||||
||278,521,260.98|31,964,000.00|246,557,260.98|278,521,260.98|31,964,000.00|246,557,260.98|
|Investment tojoint ventures andassociatedenterprises|||||||
||68,492,367.87|32,807,614.14|35,684,753.73|67,333,791.55|32,807,614.14|34,526,177.41|
|Total|347,013,628.85|64,771,614.14|282,242,014.71|345,855,052.53|64,771,614.14|281,083,438.39|

 (1) Investment to the subsidiary
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn||
|||||||Closing balance|
||||||impairment||
|Investee|Opening balance|Increase|Decrease|Closing balance||of impairment|
||||||provision in the||
|||||||provision|
||||||Reporting Period||
|Shenzhen|||||||
|Huangcheng Real|28,500,000.00|||28,500,000.00|||
|Estate Co., Ltd.|||||||
|SZPRD Real|30,950,000.00||||||
|Estate|||||||
|||||30,950,000.00|||
|Development Co.,|||||||
|Ltd.|||||||
|PRD Yangzhou|50,000,000.00||||||
|Real Estate|||||||
|||||50,000,000.00|||
|Development Co.,|||||||
|Ltd.|||||||
|Dongguan|||||||
|International Trade|||||||
|Center|||||||
|Changsheng Real|20,000,000.00|||20,000,000.00|||
|Estate|||||||
|Development Co.,|||||||
|Ltd.|||||||
|Shenzhen|29,850,000.00||||||
|||||29,850,000.00|||
|International Trade|||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
|||||
|-|-|-|-|
|Center Vehicles||||
|Industry Co., Ltd.||||
|SHENZHEN||||
|INTERNATIONA||||
|L TRADE||||
|CENTER|20,000,000.00|20,000,000.00||
|PROPERTY||||
|MANAGERMEN||||
|T CO., LTD.||||
|Shenzhen Shenxin||||
|Motor Rent Co.,|12,877,260.98|12,877,260.98||
|Ltd.||||
|Shenzhen||||
|International Trade||||
||1,600,000.00|1,600,000.00|1,600,000.00|
|Center Food Co.,||||
|Ltd.||||
|Shenzhen Property||||
|Construction||||
||3,000,000.00|3,000,000.00||
|Supervision Co.,||||
|Ltd.||||
|Shenzhen||||
|International Trade|12,000,000.00|12,000,000.00|12,000,000.00|
|Plaza||||
|Shenzhen Real||||
||1,380,000.00|1,380,000.00||
|Estate Exchange||||
|Zhanjiang||||
|Shenzhen Real||||
|Estate|2,530,000.00|2,530,000.00|2,530,000.00|
|Development Co.,||||
|Ltd||||
|Shum Yip||||
|Properties||||
||15,834,000.00|15,834,000.00|15,834,000.00|
|Development Co.,||||
|Ltd.||||
|PRD Group||||
|Xuzhou Dapeng||||
|Real Estate|50,000,000.00|50,000,000.00||
|Development Co.,||||
|Ltd.||||
|Total|278,521,260.98|278,521,260.98|31,964,000.00|

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (2) Investment to joint ventures and associated enterprises
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease in Reporting Period||||||||||
|||||Investme|||||||Closing|
||||||Adjustme|||||||
|||||nt profit||||Withdraw|||balance|
|||Additiona|||nt of||Declarati|||||
||Opening||Negative|and loss||Other||n||Closing|of|
|Investee||||||||||||
|||l|||other||on of cash|||||
||balance||investmen|recognize||equity||impairme|Others|balance|impairme|
|||investmen|||comprehe||dividends|||||
||||t|d under||changes||nt|||nt|
|||t|||nsive||or profits|||||
|||||the equity||||provision|||provision|
||||||income|||||||
|||||method||||||||
|I. Joint ventures||||||||||||
|Shenzhen||||||||||||
|Jifa||||||||||||
||30,789,34|||879,139.1||||||31,668,48||
|Warehous||||||||||||
||1.98|||4||||||1.12||
|e Co.,||||||||||||
|Ltd.||||||||||||
|Tianan||||||||||||
|Internatio||||||||||||
|nal||||||||||||
|Building||||||||||||
|Property|3,736,835|||279,437.1||||||4,016,272||
|Managem|.43|||8||||||.61||
|ent||||||||||||
|Company||||||||||||
|of||||||||||||
|Shenzhen||||||||||||
||34,526,17|||1,158,576||||||35,684,75||
|Subtotal||||||||||||
||7.41|||.32||||||3.73||
|II. Associated enterprises||||||||||||
|Shenzhen||||||||||||
|Wufang||||||||||||
|Pottery &|18,983,61|||||||||18,983,61|18,983,61|
|Porcelain|4.14|||||||||4.14|4.14|
|Industrial||||||||||||
|Co., Ltd.||||||||||||
|Anhui||||||||||||
|Nanpeng||||||||||||
||13,824,00|||||||||13,824,00|13,824,00|
|Papermak||||||||||||
||0.00|||||||||0.00|0.00|
|ing Co.,||||||||||||
|Ltd.||||||||||||

Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
||32,807,61||32,807,61|32,807,61|
|Subtotal|||||
||4.14||4.14|4.14|
||67,333,791.55|1,158,576|68,492,367.87|32,807,614.14|
|Total|||||
|||.32|||

 (3) Other notes
Naught
4. Revenue and Cost of Sales
Unit: RMB
||||||
|-|-|-|-|-|
||Reporting Period||Same period of last year||
|Item|||||
||Sales revenue|Cost of sales|Sales revenue|Cost of sales|
|Main operations|32,157,014.88|7,594,195.01|29,852,953.97|8,215,152.66|
|Total|32,157,014.88|7,594,195.01|29,852,953.97|8,215,152.66|

 Other notes:
5. Investment income
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Long-term equity investment income|||
||1,158,576.32|666,409.17|
|accounted by equity method|||
|Investment income received from disposal of|||
|||5,709,098.20|
|available-for-sale financial assets|||
|Others||225,340.35|
|Total|1,158,576.32|6,600,847.72|

 6. Other
Not applicable
XVIII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable□ Not applicable
Unit: RMB
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016
||||
|-|-|-|
|Item|Amount|Explanation|
|Gains/losses on the disposal of non-current|||
||-6,300.00||
|assets|||
|Reverse of bad debt provision of account|||
|receivable individually conducting|11,729.17||
|impairment test|||
|Other non-operating income and expenses|||
||790,677.90||
|other than the above|||
|Less: Income tax effects|179,529.79||
|Total|616,577.28|--|

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.□ Applicable√ Not applicable
2. Return on equity and earnings per share
|||||
|-|-|-|-|
|||EPS（Yuan/share）||
|Profit as of Reporting Period|Weighted average ROE (%)|||
|||EPS-basic|EPS-diluted|
|Net profit attributable to common||-0.0088|-0.0088|
||-0.25%|||
|shareholders of the Company||||
|Net profit attributable to common||||
|shareholders of the Company after||||
||-0.28%|-0.0098|-0.0098|
|deduction of non-recurring profit||||
|and loss||||

3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
□ Applicable√ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
□ Applicable√ Not applicable
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 (3) Explain reasons for the differences between accounting data under domestic and overseas accounting standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign institutions
Not applicable
4. Other
Naught
Shenzhen Properties& Resources Development (Group) Ltd. Semi-annual Report 2016 Section X Documents Available For Reference
I. Financial statements with the signatures and seals of the Legal Representative, the Chief Financial Officer and the person in charge of the accounting work;
II. Texts of all theCompany’s documents ever disclosed on Securities Times and Hong Kong Ta Kung Pao in the Reporting Period, and the originals of the public notices.