ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) Stock Code: 000011, 200011 Stock Name: PRD, PRD-B Announcement No. 2019-41 SHENZHEN PROPERTIES& RESOURCES
DEVELOPMENT (GROUP) LTD.
THIRD QUARTER REPORT 2019 (SUMMARY)
ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of ShenZhen Properties& Resources Development (Group) Ltd. (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.
All theCompany’s directors have attended the Board meeting for the review of this Report and its summary.
Liu Shengxiang, theCompany’s legal representative, Cai Lili, theCompany’s head of financial affairs, and Liu Qiang, head of theCompany’s financial department (equivalent to financial manager) hereby guarantee that the financial statements carried in this Report are factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.
ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||30 September 2019|||31 December 2018|||Change (%)||
|Total assets (RMB)|10,483,774,596.84|||5,820,202,137.54||||80.13%||
|Equity attributable to the listed|3,261,058,125.05|||3,337,949,324.64||||||
|||||||||-2.30%||
|company’s shareholders (RMB)||||||||||
|||Q3 2019|YoY change (%)||||Q1-Q3 2019||YoY change (%)|
|Operating revenue (RMB)|246,562,586.92||-34.07%|||1,001,952,666.88|||-16.43%|
|Net profit attributable to the listed|-689,810.21|||||103,059,587.95||||
||||-101.13%||||||-28.52%|
|company’s shareholders (RMB)||||||||||
|Net profit attributable to the listed||||||||||
|company’s shareholders before||-1,104,487.82|-101.78%||||102,581,697.47||-28.73%|
|exceptional items (RMB)||||||||||
|Net cash generated from/used in||||||534,270,254.31||||
|||--|--||||||968.95%|
|operating activities (RMB)||||||||||
|Basic earnings per share|-0.0012|||||0.1729||||
||||-101.17%||||||-28.52%|
|(RMB/share)||||||||||
|Diluted earnings per share|-0.0012|||||0.1729||||
||||-101.17%||||||-28.52%|
|(RMB/share)||||||||||
|Weighted average return on equity||||||||||
|||-0.02%|-2.11%||||3.13%||-1.79%|
|(%)||||||||||

Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Q1-Q3 2019|Note|
|Gain or loss on disposal of non-current assets (inclusive of||Scrapping disposal of|
||-13,030.68||
|impairment allowance write-offs)||miscellaneous assets|
|||Sporadic penalty and liquidated|
|Non-operating income and expense other than above|650,217.99||
|||damages income|
|Less: Income tax effects|159,296.83||
|Total|477,890.48|--|

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss
ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) Items:
□ Applicable√ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019 1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Number of preferred||||||
||Number of ordinary shareholders at the|||||||shareholders with resumed||||||
||||||41,305|||||||0||
||period-end|||||||voting rights at the||||||
|||||||||period-end (if any)||||||
||Top 10 shareholders|||||||||||||
||Name of||Nature of||Shareholding||Total shares|||Restricted|Shares in pledge or frozen|||
||shareholder||shareholder||percentage||held|||shares held|Status||Shares|
|ShenzhenInvestmentHoldingsCorporation||State-owned legalperson||63.82%||380,378,897||||||||
|ShenzhenDuty-FreeCommodityEnterprises Co.,Ltd.||Domesticnon-state-ownedlegal person||0.29%||1,730,300|||1,730,300|||||
|Yang Yaochu||Domestic naturalperson||0.24%||1,425,020||||||||
|Mai Furong||Domestic naturalperson||0.20%||1,181,500||||||||
|Li Jing||Domestic naturalperson||0.20%||1,176,740||||||||
|Su Zhifen||Domestic naturalperson||0.19%||1,150,000||||||||
|WuhanXingkaiyuanElectric PowerEngineering Co.,Ltd||Domesticnon-state-ownedlegal person||0.18%||1,050,000||||||||
|Chen Yutang||Domestic natural||0.15%||865,400||||||||

ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
|||||||||
|-|-|-|-|-|-|-|-|
|||person||||||
|Shantou PropertyHexin Co., Ltd.||Domesticnon-state-ownedlegal person|0.14%||850,000|||
|Zhang Shaoming||Domestic naturalperson|0.14%||811,000|||
||Top 10 unrestricted shareholders|||||||
|||||||Shares by type||
||Name of shareholder|||Unrestricted shares held||||
|||||||Type|Shares|
|Shenzhen Investment HoldingsCorporation|||380,378,897|||RMB-denominate||
||||||||380,378,897|
|||||||d ordinary stock||
|Yang Yaochu|||1,425,020|||Domestically||
|||||||listed foreign|1,425,020|
|||||||stock||
|Mai Furong|||1,181,500|||Domestically||
|||||||listed foreign|1,181,500|
|||||||stock||
|Li Jing|||1,176,740|||Domestically||
|||||||listed foreign|1,176,740|
|||||||stock||
|Su Zhifen|||1,150,000|||RMB-denominate||
||||||||1,150,000|
|||||||d ordinary stock||
|Wuhan Xingkaiyuan Electric PowerEngineering Co., Ltd|||1,050,000|||RMB-denominate||
||||||||1,050,000|
|||||||d ordinary stock||
|Chen Yutang|||865,400|||RMB-denominate||
||||||||865,400|
|||||||d ordinary stock||
|Shantou Property Hexin Co., Ltd.|||850,000|||RMB-denominate||
||||||||850,000|
|||||||d ordinary stock||
|Zhang Shaoming|||811,000|||RMB-denominate||
||||||||811,000|
|||||||d ordinary stock||
|Li Baorong|||800,000|||RMB-denominate||
||||||||800,000|
|||||||d ordinary stock||
|Wang Hui|||800,000|||Domestically||
|||||||listed foreign|800,000|
|||||||stock||
|||||The first largest shareholder, Shenzhen Investment Holding Corporation, is the actual||||
||Related or acting-in-concert parties|||||||
|||||controlling shareholder of the Company. And the Company does not know whether||||
||among the shareholders above|||||||
|||||there are related parties or acting-in-concert parties among the other 9 shareholders.||||
||Top 10 ordinary shareholders involved|||N/A||||

ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
||
|-|
|in securities margin trading (if any)|

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes√ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) Part III Significant Events
I Changes in Key Consolidated Financial Statement Line Items and Explanation of why√ Applicable□ Not applicable
1. Net accounts receivable stood at RMB105,664,491.50 as at 30 September 2019, rising64.51% compared to 31 December 2018, primarily driven by the increase in property management fees receivable.
2. Net other receivables stood at RMB1,411,300,201.44 as at 30 September 2019, rising5677.29% compared to 31 December 2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate Development Co., Ltd.
3. Inventories stood at RMB4,091,290,659.03 as at 30 September 2019, rising246.20% compared to 31 December 2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate Development Co., Ltd.
4. Other current assets stood at RMB60,518,612.48 as at 30 September 2019, rising262.51% compared to 31 December 2018, primarily driven by the increase in prepaid VAT for property projects.
5. Net fixed assets stood at RMB49,959,816.20 as at 30 September 2019, rising53.19% compared to 31 December 2018, primarily driven by purchase of office building by the subsidiary.
6. Other non-current assets stood at RMB29,220,732.54 as at 30 September 2019, declining73.19% compared to 31 December 2018, primarily driven by the offset of payments forM&A of shares in Shenzhen Rongyao Real Estate Development Co., Ltd. by advance stock payment of RMB0.1 billion.
7. Accounts payable stood at RMB270,740,042.51 as at 30 September 2019, declining32.05% compared to 31 December 2018, primarily driven by payment for projects.
8. Other payables stood at RMB575,189,783.56 as at 30 September 2019, rising411.27% compared to 31 December 2018, primarily driven by payment of RMB406 million for stock transfer newly added.
9. Long-term borrowings stood at RMB2,194,000,000.00 as at 30 September 2019, rising219300.00% compared to 31 December 2018, primarily driven by the combination scope increase of Shenzhen Rongyao Real Estate Development Co., Ltd.
10. Other comprehensive income stood at RMB-2,943,241.63 as at 30 September 2019, rising64.78% compared to 31 December 2018, primarily driven by the decrease in the differences arising from translation of foreign currency-denominated financial statements caused by changes in foreign exchange rates.
11. Taxes and surtaxes stood at RMB134,703,867.42 duringQ1~Q3 2019, rising114.01% compared toQ1~Q3 2018, primarily driven by that main property projects carried over in the Reporting Period applied to higher land VAT rates.
12. Selling expense stood at RMB43,482,379.03 duringQ1~Q3 2019, rising193.64% compared toQ1~Q3 2018, primarily driven by increase of charges for sales agency and services.
13. Administrative expense stood at RMB85,821,358.91 duringQ1~Q3 2019, rising26.70% compared toQ1~Q3 2018, primarily driven by increase in remuneration for employees and in office expenditure.
14. Finance costs stood at RMB99,933.139.03 duringQ1~Q3 2019, rising-359.86% compared toQ1~Q3 2018 of RMB-38,456,220.90, primarily driven by increase in interest payment.
15. Asset impairment loss (“-“ for losses) stood at RMB-2,656.062.96 duringQ1~Q3 2019, declining155.37%
ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) compared toQ1~Q3 2018 of RMB4,797,271.69, primarily driven by withdrawal of bad debt provision and changes of inventory falling price reserves.
16. Investment income stood at RMB2,207,762.84 duringQ1~Q3 2019, rising57.92% compared toQ1~Q3 2018, primarily driven by changes caused by revenues realized by joint ventures of the Company.
17. Non-operating expense stood at RMB1,806,397.12 duringQ1~Q3 2019, declining36.66% compared toQ1~Q3 2018, primarily driven by decrease in payment for cleaning tenants as surrender compensation.
18. Income tax expense stood at RMB60,811,172.26 duringQ1~Q3 2019, rising35.32% compared toQ1~Q3 2018, primarily driven by increase in profits realized by companies except for Shenzhen Rongyao Real Estate Development Co., Ltd.
19. Net profit (attributable to the Company as the parent) stood at RMB103,059,587.95 duringQ1~Q3 2019, declining28.52% compared toQ1~Q3 2018, primarily driven by increase in interest expense of finance costs. 20. Net profit attributable to non-controlling interests stood at RMB-56,907,075.90 duringQ1~Q3 2019 and that forQ1~Q3 2018 was RMB0.00, primarily driven by addition of “net profit attributable to non-controlling interests” of Shenzhen Rongyao Real Estate Development Co., Ltd.
21. Other comprehensive income, net of tax, stood at RMB-1,157,059.94 duringQ1~Q3 2019, declining37.41% compared toQ1~Q3 2018, primarily driven by changes in differences arising from translation of foreign currency-denominated financial statements caused by changes in foreign exchange rates.
22. Net cash generated from/used in operating activities stood at 534,270,254.31 duringQ1~Q3 2019 and the net cash generated from operating activities rose968.95% compared toQ1~Q3 2018, primarily driven by increase in recoup funds of housing sales accounts duringQ1~Q3 2019.
23. Net cash generated from/used in investing activities duringQ1~Q3 2019 stood at RMB-37,689,200.09, declining149.48% compared toQ1~Q3 2018, primarily driven by receipt of share transfer payments from two motor companies during Q1 2018 and increase in payment for purchase of fixed assets duringQ1~Q3 2019. 24. Net cash generated from/used in financing activities duringQ1~Q3 2019 stood at RMB-359,218,136.65, rising102.05% compared toQ1~Q3 2018, primarily driven by increase in interest paid for loans duringQ1~Q3 2019. II Progress, Influence and Solutions Associated with Significant Events
√ Applicable□ Not applicable
In order to respond to the call of Shenzhen State-owned Assets Supervision and Administration Commission, further promote the concentration of resource of good quality to the advantage enterprises, particularly the listed companies, and strengthen the development potential of listed companies, optimize and solidify the industrial structure of listed companies, enlarge and strengthen the dominant industry in listed companies, the Company intends to take over100% of equity in Shenzhen Holding Property Management Co., Ltd. (hereinafter referred to as “TK Property”) held by Shenzhen Investment Holdings Co., Ltd (hereinafter referred to as “SZIH”) in cash. The acquisition was approved by the
8th
Meeting of the
9th
Board of Directors on 6 September 2019 and the 2nd Extraordinary General Meeting of 2019 on 23 September 2019 with independent and professional opinions from independent directors. The relevant disclosure is as follows:
|||||
|-|-|-|-|
||Announcement of significant event|Disclosure date|Disclosure website|
|The acquisition of 100% of equity inShenzhen Holding PropertyManagement Co., Ltd. and the connected|||No. 2018-39 Announcement on Signing|
|||13 December 2018|the Letter of Intent for Equity Transfer|
||||with Controlling Shareholders on|

ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
||||
|-|-|-|
|transaction||www.cninfo.com.cn|
|||No. 2019-28 Announcement on|
||7 September 2019|Resolution of the Board of Directors on|
|||www.cninfo.com.cn|
|||No. 2019-30 Announcement on the|
|||Acquisition of 100% of Equity in|
|||Shenzhen Holding Property|
||7 September 2019||
|||Management Co., Ltd. and the|
|||Connected Transaction on|
|||www.cninfo.com.cn|
|||No. 2019-31 Announcement on|
||7 September 2019|Resolution of the Supervisory Committee|
|||on www.cninfo.com.cn|
|||No. 2019-33 Announcement on the|
|||Acquisition of 100% of Equity in|
|||Shenzhen Holding Property|
||21 September 2019||
|||Management Co., Ltd. and the|
|||Connected Transaction on|
|||www.cninfo.com.cn|
|||No. 2019-34 Announcement on|
|||Resolution of the 2nd Extraordinary|
||24 September 2019||
|||General Meeting of 2019 on|
|||www.cninfo.com.cn|

Progress of any share repurchases:
□ Applicable√ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable√ Not applicable
III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties, Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
√ Applicable□ Not applicable
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Variet|Symb|Name|Initial|Acco|Begin|Gain/l|Accu|Purch|Sold||Endin|Acco|Capita|
|||||||||||Gain/l||||
|y of|ol of|of|invest|unting|ning|oss of|mulati|ased|in the|oss in|g|unting|l|
|||||||||||Repor||||
|securi|securi|securit|ment|measu|carryi|chang|ve|in the|Repor|ting|carryi|title|source|

ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary)
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ty|ty|y|cost|remen|ng|es in|chang|Repor|ting|Perio|ng|||
|||||||||||d||||
|||||t|value|fair|es in|ting|Perio||value|||
|||||model||value|fair|Perio|d|||||
|||||||in the|value|d||||||
|||||||Repor|record|||||||
|||||||ting|ed|||||||
|||||||Perio|into|||||||
|||||||d|equiti|||||||
||||||||es|||||||
|||||||||||||Other||
||||||||||||||Obtai|
|Dome||||||||||||non-c||
||||||||||||||ned in|
|stic/o|||2,991,|Fair|2,991,||||||2,991,|urren||
||40001|Gintia|||||||||||debt|
|versea|||975.0|metho|975.0|0.00|0.00|0.00|0.00|0.00|975.0|t||
||6|n A|||||||||||restru|
|s|||3|d|3||||||3|finan||
||||||||||||||cturin|
|stock||||||||||||cial||
||||||||||||||g|
|||||||||||||assets||
|||||||||||||Other|Obtai|
|Dome||||||||||||||
|||||||||||||non-c|ned in|
|stic/o||||Fair||||||||||
||42001|Gintia|573,8||629,4|||||1,054.|630,4|urrent|debt|
|versea||||metho||0.00|0.00|0.00|0.00|||||
||6|n B|81.03||06.08|||||64|60.72|financ|restru|
|s||||d||||||||||
|||||||||||||ial|cturin|
|stock||||||||||||||
|||||||||||||assets|g|
||||3,565,||3,621,||||||3,622,|||
|||||||||||1,054.||||
|Total|||856.0|--|381.1|0.00|0.00|0.00|0.00||435.7|--|--|
|||||||||||64||||
||||6||1||||||5|||
|Disclosure date of||||||||||||||
|announcement on||||||||||||||
|Board’s consent for||||||||||||||
|securities investment||||||||||||||
|Disclosure date of||||||||||||||
|announcement on||||||||||||||
|shareholders’ meeting’s||||||||||||||
|consent for securities||||||||||||||
|investment (if any)||||||||||||||

V Wealth Management Entrustment
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
□ Applicable√ Not applicable
ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) No such cases in the Reporting Period.
VII Communications with the Investment Community such as Researches, Inquiries and Interviews during the Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|||Type of communication|Index to main information|
|Date|Way of communication|||
|||party|communicated|
||||Inquired of the disclosure of the|
|2 July 2019|In writing|Individual||
||||interim report of the Company|
||||Inquired of business development of|
|6 July 2019|In writing|Individual||
||||the Company|
||||Inquired of the property information of|
|8 July 2019|In writing|Individual||
||||golden collar project|
||||Inquired of the semi-annual|
|8 July 2019|In writing|Individual||
||||performance of the Company|
||||Inquired of business development of|
|9 July 2019|By phone|Individual||
||||the Company|
||||Inquired of the market value of golden|
|9 July 2019|In writing|Individual||
||||collar project|
||||Inquired of the information of golden|
|11 July 2019|In writing|Individual||
||||collar project|
||||Inquired of the sales of commercial|
|11 July 2019|In writing|Individual||
||||housing|
||||Inquired of the information of|
|13 July 2019|In writing|Individual||
||||Fuchang Phase II|
||||Inquired of the progress of project|
|15 July 2019|By phone|Individual||
||||construction and financial condition|
||||Inquired of the sales of commercial|
|17 July 2019|In writing|Individual||
||||housing|
||||Inquired of the release of restriction on|
|19 July 2019|In writing|Individual||
||||restricted shares of the Company|
||||Inquired of the number of the|
|23 August 2019|In writing|Individual||
||||shareholders of the Company|
||||Inquired of situations of shareholders|
|11 September 2019|In writing|Individual||
||||of the Company|
||||Inquired of situations of shareholders|
|19 September 2019|In writing|Individual||
||||of the Company|

ShenZhen Properties& Resources Development (Group) Ltd. Third Quarter Report 2019 (Summary) VIII Irregularities in Provision of Guarantees
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Capital by the Controlling Shareholder or Its Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.