ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) CO., LTD.
FIRST QUARTER REPORT 2018
2018-032
April 2018
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors, Supervisors and senior management of ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. (inclusive of its consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading
statements or material omissions in this Report.
All theCompany’s Directors have attended the Board meeting for the review of this Report. Zhou Jianguo, chairman of the Company’s Board, Chen Maozheng, the Company’s General Manager, Tang Xiaoping, theCompany’s head of financial affairs, and Qiao Yanjun, head of theCompany’s financial department (equivalent to financial manager) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2018|January-March 2017|Change|
|Sales revenue (RMB)|149,537,691.65|272,038,375.78|-45.03%|
|Net income attributable to shareholders of|-5,982,684.72|34,621,550.04||
||||-117.28%|
|the listed company (RMB)||||
|Net income attributable to shareholders of||||
|the listed company before nonrecurring|-6,292,418.64|34,426,151.00|-118.28%|
|gains and losses (RMB)||||
|Net cash flows from operating activities|205,338,536.04|-30,280,598.74||
||||-778.12%|
|(RMB)||||
|Basic earnings per share (RMB/share)|-0.0059|0.0342|-117.25%|
|Diluted earnings per share (RMB/share)|-0.0059|0.0342|-117.25%|
|Weighted average return on equity (%)|-0.21%|1.30%|-1.51%|
||March 31, 2018|December 31, 2017|Change|
|Total assets (RMB)|4,172,583,928.46|3,989,263,981.96|4.60%|
|Equity attributable to shareholders of the|2,824,217,896.04|2,828,242,120.98||
||||-0.14%|
|listed company (RMB)||||

Nonrecurring gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|Note|
|Gains and losses on disposal of non-current assets (inclusive of|||
||-42.50||
|offset allowance for asset impairments)|||
|||Mainly consist of the front|
|||money confiscated from|
|Non-operating income and expense other than above|413,021.06||
|||customers purchasing properties|
|||due to breach of contract|
|Less: Income tax effects|103,244.64||
|Total|309,733.92|--|

Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Nonrecurring Gains and
Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
□ Applicable√ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Top 10Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Preferred shareholders with|||||
|Common shareholders at|||||||||
|||76,443||resumed voting rights at|||0||
|period-end|||||||||
|||||period-end (if any)|||||
|Top 10 shareholders|||||||||
|||Shareholding||||Pledged or frozen shares|||
|Name of|Nature of||||||||
|||percentage at|Shares||Restricted shares||||
|shareholder|shareholder|||||Status||Shares|
|||period-end (%)|||||||
|ShenzhenInvestmentHoldings Co., Ltd|State-ownedcorporation|63.55%|642,884,262||||||
|Shanjin JinkongCapitalManagement Co.,Ltd. － ShanjinJinkongSustaining FundNo. 1|Domesticnon-state-ownedcorporation|1.02%|10,300,000||||||
|Lu Zhigao|Domesticindividual|0.32%|3,246,949||||||
|Tan Shiqing|Domesticindividual|0.13%|1,286,701||||||
|Yang Shuilian|Domesticindividual|0.13%|1,273,700||||||
|Yang Jianxiong|Domesticindividual|0.12%|1,255,750||||||
|Central HuijinAssetManagement Co.,Ltd.|State-ownedcorporation|0.12%|1,165,500||||||
|Peng Wei|Domesticindividual|0.11%|1,129,082||||||
|Wu Haoyuan|Foreign|0.11%|1,109,300||||||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
|||||||
|-|-|-|-|-|-|
||individual|||||
|Guotai JunanSecurities (HongKong) Limited|Foreigncorporation|0.10%|1,015,683|||
|Top 10 non-restricted shareholders||||||
|||||Type of shares||
|Name of shareholder||Non-restricted shares held at period-end||||
|||||Type|Shares|
|Shenzhen Investment Holdings Co.,Ltd||642,884,262||RMB common||
|||||share||
|Shanjin Jinkong CapitalManagement Co., Ltd. －ShanjinJinkong Sustaining Fund No. 1||10,300,000||||
|||||RMB common||
|||||share||
|Lu Zhigao||3,246,949||RMB common||
|||||share||
|Tan Shiqing||1,286,701||RMB common||
|||||share||
|Yang Shuilian||1,273,700||RMB common||
|||||share||
|Yang Jianxiong||1,255,750||Domestically||
|||||listed foreign||
|||||share||
|Central Huijin Asset ManagementCo., Ltd.||1,165,500||RMB common||
|||||share||
|Peng Wei||1,129,082||RMB common||
|||||share||
|Wu Haoyuan||1,109,300||Domestically||
|||||listed foreign||
|||||share||
|Guotai Junan Securities (HongKong) Limited||1,015,683||Domestically||
|||||listed foreign||
|||||share||
|||The Company finds no related parties or acting-in- concert parties as defined in the||||
|Related or acting-in- concert parties||||||
|||Administrative Measures for Shareholding Changes in Listed Companies among the above||||
|among shareholders above||||||
|||shareholders.||||
|Shareholders conducting securities||The 4th shareholder holds all of his shares in the Company in a credit securities account, and||||
|margin trading (if any)||the 3rd shareholder holds part of his shares in the Company in such an account.||||

Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea√ No
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
√ Applicable□ Not applicable
1. Sales revenue and cost of sales declined45.03% and33.36%, respectively, during Q1 2018 compared to Q1 2017, primarily driven by year-over-year decreases in real estate sales revenue and cost of sales carryforwards resulted from reasons associated with real estate development progress and sales cycles.
2. Selling expense rose255.89% during Q1 2018 compared to Q1 2017, primarily driven by
year-over-year increases in the sales commissions and promotion expenditure on the Cuilinyuan real estate project.
3. Finance costs declined74.45% during Q1 2018 compared to Q1 2017, primarily driven by a year-over-year decrease in interest payment resulted from the decreased bank loans.
4. Subtotal of cash generated by operating activities rose778.12% during Q1 2018 compared to Q1 2017, primarily driven by a year-over-year increase in payments from house buyers (recognized in proceeds from sale of commodities and rendering of services).
5. Subtotal of cash used in financing activities rose935.79% during Q1 2018 compared to Q1 2017, primarily driven by the repayment of bank loan principals during Q1 2018.
6. Other current assets went up295.30% as of March 31, 2018 compared to December 31, 2017, primarily driven by increases in prepaid land and other VAT in Q1 2018.
7. Advances from customers went up97.31% as of March 31, 2018 compared to December 31, 2017, primarily driven by increases in advances from house buyers and for engineering services in Q1 2018.
8. Current portion of non-current liabilities and long-term borrowings went down72.23% and72.89%, respectively, as of March 31, 2018 compared to December 31, 2017, primarily driven by the repayment of bank loans in Q1 2018.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable□ Not applicable
Since the controlling shareholder of the Company is planning a significant event that involves the Company, upon the application to the Shenzhen Stock Exchange, trading in the stocks of the Company (A-stock under the name of “SPG A” and the symbol of “000029”; B-stock under the name of “SPG B” and the symbol of “200029”) was suspended starting from the opening of September 14, 2016. The Company disclosed the Announcement on Share Trading Suspension due to Planning of Significant Event (No. 2016-022), the Announcement on Continued Share Trading Suspension due to Planning of Significant Event (No. 2016-023) and the Announcement on
Continued Share Trading Suspension due to Planning of Significant Event (No. 2016-024) on September 14, 2016, September 22, 2016 and September 29, 2016, respectively. Upon
ascertainment, the event constituted a material asset restructuring. The Company disclosed the Announcement on Share Trading Suspension due to Planning of Material Asset Restructuring (No.
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
2016-025) on September 30, 2016 and the Announcement on Signing Cooperation Agreement on Restructuring and Listing (No. 2016-027) on October 10, 2016.
The Company convened the
33rd
Meeting of the
7th
Board of the Directors on November 11, 2016, which the Proposal on Continued Share Trading Suspension due to Planning of Material Asset Restructuring was reviewed and approved. For details, see the Announcement on Continued Share Trading Suspension after Expiration of Period of Share Trading Suspension due to Planning of Material Asset Restructuring (No. 2016-039) disclosed on November 14, 2016.
The Company convened the First Special Meeting of Shareholders in 2016 on December 12, 2016, which the Proposal on Continued Share Trading Suspension due to Planning of Material Asset Restructuring. For details, see the Announcement on Application for Continued Share Trading Suspension after Expiration of Period of Share Trading Suspension due to Planning of Material Asset Restructuring (No. 2016-047) disclosed on December 13, 2016.
The Company held an online illustration meeting to investors on March 10, 2017, communicating this material asset restructuring with them and answering questions that they were generally
concerned about with the information allowed to be disclosed. For details, see the Announcement on Online Illustration Meeting to Investors (No. 2017-012) disclosed on March 11, 2017.
To ensure the smooth progress of this material asset restructuring, prevent abnormal fluctuations in the prices of its stocks and protect the rights and interests of its minority shareholders, the Company has applied to the Shenzhen Stock Exchange for continued share trading suspension for no more than 1 month as of April 14, 2018. For details, see the Announcement on Delay of Share Trading Resumption due to Planning of Material Asset Restructuring (No. 2018-025) disclosed on April 14, 2018.
During the share trading suspension period, the Company shall disclose the progress of this material asset restructuring at least every five trading days in strict accordance with the requirements of applicable laws and regulations. At present, this material asset restructuring is proceeding smoothly. This material asset restructuring is subject to great uncertainty. Therefore, investors are kindly reminded to pay attention to possible investment risk.
||||
|-|-|-|
|Summary of significant event|Disclosure date|Index to related announcement|
|Significant assets restructuring||Announcement on Delay of Share Trading|
||04/14/2018|Resumption due to Planning of Material|
|||Asset Restructuring (www.cninfo.com.cn)|

 III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018, as well as
explanation of why:
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
√ Applicable□ Not applicable
Forecast of operating results: Significant year-over-year increases
Type of forecast data: Interval data
||||||||||
|-|-|-|-|-|-|-|-|-|
||January-June 2018|||January-June 2017|Change||||
|Forecast accumulated net|28,000||||||||
|||--|33,000|13,720|Up|104.08%|--|140.52%|
|income (RMB’0,000)|||||||||
|Basic earnings per share|0.2768||||||||
|||--|0.3262|0.1356|Up|104.13%|--|140.56%|
|(RMB /share)|||||||||
||The project of Cuilinyuan will be implemented in June, so the sales carryforwards of theCompany’s real estate increased dramatically year on year.||||||||
|Note|||||||||

V Securities Investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. during Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|
||||Consulted the Company about the|
||||progress of assets restructuring and the|
|01/11/2018|By telephone|Individual||
||||sales of project development, and didn’t|
||||offer written materials|
||||Consulted the Company about the|
||||progress of assets restructuring and the|
|02/09/2018|By telephone|Individual|annual operation, the expected disclosure|
||||time of annual report, and didn’t offer|
||||written materials|
||||Consulted the Company about the|
||||progress of assets restructuring and basic|
|03/26/2018|By telephone|Individual||
||||information, and didn ’t offer written|
||||materials|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Money by Its Controlling Shareholder or Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd.
March 31, 2018
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|1,305,323,971.39|1,207,079,090.29|
|Settlement reserve|||
|Interbank loans granted|||
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable||5,921,287.00|
|Accounts receivable|119,111,320.84|137,092,156.05|
|Prepayments|1,660,730.61|6,040,367.51|
|Premiums receivable|||
|Reinsurance receivables|||
|Receivable reinsurance contract|||
|reserve|||
|Interest receivable|||
|Dividends receivable|1,052,192.76|1,052,192.76|
|Other receivables|64,579,267.77|75,903,158.62|
|Financial assets purchased under|||
|resale agreements|||
|Inventories|1,866,922,714.36|1,764,086,643.94|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|44,943,805.13|11,369,544.80|
|Total current assets|3,403,594,002.86|3,208,544,440.97|
|Non-current assets:|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Loans and advances to customers|||
|Available-for-sale financial assets|17,464,240.74|17,464,240.74|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|29,888,661.65|29,888,661.65|
|Investment property|640,640,370.86|647,297,124.04|
|Property, plant and equipment|36,719,510.49|37,937,868.71|
|Construction in progress|||
|Construction materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets||55,200.00|
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|558,307.63|586,350.66|
|Deferred income tax assets|43,718,834.23|47,490,095.19|
|Other non-current assets|||
|Total non-current assets|768,989,925.60|780,719,540.99|
|Total assets|4,172,583,928.46|3,989,263,981.96|
|Current liabilities:|||
|Short-term borrowings|105,498,473.15|104,207,653.64|
|Borrowings from central bank|||
|Customer deposits and deposits from|||
|banks and other financial institutions|||
|Interbank loans obtained|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|159,189,684.70|190,629,756.30|
|Advances from customers|655,365,476.48|332,152,016.54|
|Financial assets sold under|||
|repurchase agreements|||
|Handling charges and commissions|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|payable|||
|Payroll payable|24,226,991.88|30,516,219.96|
|Taxes payable|96,747,794.19|86,153,526.89|
|Interest payable|16,535,277.94|16,535,277.94|
|Dividends payable|||
|Other payables|371,683,958.99|374,945,089.10|
|Reinsurance payables|||
|Insurance contract reserve|||
|Payables for trading of securities|||
|Payables for underwriting of|||
|securities|||
|Liabilities directly associated with|||
|assets classified as held for sale|||
|Current portion of non- current|||
||17,773,200.00|64,000,000.00|
|liabilities|||
|Other current liabilities|||
|Total current liabilities|1,447,020,857.33|1,199,139,540.37|
|Non-current liabilities:|||
|Long-term borrowings|22,226,800.00|82,000,000.00|
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|6,467,652.43|8,101,880.05|
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|28,694,452.43|90,101,880.05|
|Total liabilities|1,475,715,309.76|1,289,241,420.42|
|Owners’ equity:|||
|Share capital|1,011,660,000.00|1,011,660,000.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Capital reserves|978,244,910.11|978,244,910.11|
|Less: Treasury shares|||
|Other comprehensive income|12,004,156.94|10,045,697.16|
|Specific reserve|||
|Surplus reserves|85,666,668.00|85,666,668.00|
|General reserve|||
|Retained earnings|736,642,160.99|742,624,845.71|
|Total equity attributable to owners of|||
||2,824,217,896.04|2,828,242,120.98|
|Parent Company|||
|Non-controlling interests|-127,349,277.34|-128,219,559.44|
|Total owners’ equity|2,696,868,618.70|2,700,022,561.54|
|Total liabilities and owners’ equity|4,172,583,928.46|3,989,263,981.96|

 Legal representative: Zhou Jianguo Head of financial affairs: Tang Xiaoping
Head of the financial department: Qiao Yanjun
2. Parent Company Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|747,376,870.21|726,801,673.89|
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|4,139,123.41|4,482,074.17|
|Prepayments|||
|Interest receivable|||
|Dividends receivable||169,393,952.18|
|Other receivables|931,387,936.40|899,872,523.90|
|Inventories|393,762,321.38|365,067,776.29|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|23,399,149.58|165,020.02|
|Total current assets|2,100,065,400.98|2,165,783,020.45|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Non-current assets:|||
|Available-for-sale financial assets|12,000,000.00|12,000,000.00|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|248,870,407.21|248,870,407.21|
|Investment property|527,105,903.71|532,414,374.79|
|Property, plant and equipment|23,746,637.68|24,371,839.21|
|Construction in progress|||
|Construction materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets||55,200.00|
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|483,933.07|529,905.52|
|Deferred income tax assets|||
|Other non-current assets|||
|Total non-current assets|812,206,881.67|818,241,726.73|
|Total assets|2,912,272,282.65|2,984,024,747.18|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|5,348,869.81|6,803,512.99|
|Advances from customers|93,435.00|93,435.00|
|Payroll payable|8,593,462.49|8,761,156.65|
|Taxes payable|73,733,711.48|52,311,869.66|
|Interest payable|16,535,277.94|16,535,277.94|
|Dividends payable|||
|Other payables|186,100,513.86|178,195,493.46|
|Liabilities directly associated with|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|assets classified as held for sale|||
|Current portion of non- current|||
||17,773,200.00|64,000,000.00|
|liabilities|||
|Other current liabilities|||
|Total current liabilities|308,178,470.58|326,700,745.70|
|Non-current liabilities:|||
|Long-term borrowings|22,226,800.00|82,000,000.00|
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|22,226,800.00|82,000,000.00|
|Total liabilities|330,405,270.58|408,700,745.70|
|Owners’ equity:|||
|Share capital|1,011,660,000.00|1,011,660,000.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Capital reserves|978,244,910.11|978,244,910.11|
|Less: Treasury shares|||
|Other comprehensive income|||
|Specific reserve|||
|Surplus reserves|62,537,054.59|62,537,054.59|
|Retained earnings|529,425,047.37|522,882,036.78|
|Total owners’ equity|2,581,867,012.07|2,575,324,001.48|
|Total liabilities and owners’ equity|2,912,272,282.65|2,984,024,747.18|

3. Consolidated Income Statement
Unit: RMB
ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Operating revenue|149,537,691.65|272,038,375.78|
|Including: Sales revenue|149,537,691.65|272,038,375.78|
|Interest revenue|||
|Premium revenue|||
|Handling charge and commission|||
|revenue|||
|2. Cost of operating revenue|159,930,793.31|224,314,815.24|
|Including: Cost of sales|134,755,463.32|202,225,932.36|
|Interest expense|||
|Handling charge and commission|||
|expense|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance|||
|contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium expense|||
|Taxes and surtaxes|2,653,864.82|9,348,504.25|
|Selling expense|12,456,944.31|3,500,211.22|
|Administrative expense|14,207,674.65|11,615,180.55|
|Finance costs|-4,143,153.79|-2,375,013.14|
|Asset impairment losses|||
|Add: Gains on changes in fair value ( “-”|||
|for losses)|||
|Investment income (“-” for loss)|827,100.00|650,000.00|
|Including: Share of profit or loss of|||
|joint ventures and associates|||
|Foreign exchange gains (“-” for losses)|||
|Asset disposal income (“-” for loss)|||
|Other income|||
|3. Operating income (“-” for loss)|-9,566,001.66|48,373,560.54|
|Add: Non-operating revenue|412,978.56|284,621.56|
|Less: Non-operating expense|20,424.16|24,089.50|
|4. Pretax income (“-” for loss)|-9,173,447.26|48,634,092.60|
|Less: Income tax expense|-3,221,704.74|13,968,640.73|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|5. Net income (“-” for net loss)|-5,951,742.52|34,665,451.87|
|5.1 Net income from continuing|||
||-5,951,742.52|34,665,451.87|
|operations (“-” for net loss)|||
|5.2 Net income from discontinued|||
|operations (“-” for net loss)|||
|Attributable to owners of Parent|||
||-5,982,684.72|34,621,550.04|
|Company|||
|Attributable to non- controlling|||
||30,942.20|43,901.83|
|interests|||
|6. Other comprehensive income, net of|||
||2,797,799.68|482,209.10|
|tax|||
|Attributable to owners of Parent|||
||1,958,459.78|337,546.37|
|Company|||
|6.1 Items that will not be|||
|reclassified to profit or loss|||
|6.1.1 Changes in net liabilities or|||
|assets caused by remeasurements on|||
|defined benefit pension schemes|||
|6.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified to profit or loss|||
|under equity method|||
|6.2 Items that may subsequently be|||
||1,958,459.78|337,546.37|
|reclassified to profit or loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified to profit or loss under|||
|equity method|||
|6.2.2 Gains/Losses on changes in|||
|fair value of available-for- sale financial|||
|assets|||
|6.2.3 Gains/Losses arising from|||
|reclassification of held-to- maturity|||
|investments to available-for-sale financial|||
|assets|||
|6.2.4 Effective gains/losses on|||
|cash flow hedges|||
|6.2.5 Differences arising from|||
|translation of foreign|||
||1,958,459.78|337,546.37|
|currency-denominated financial|||
|statements|||
|6.2.6 Other|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Attributable to non- controllin|g839,339.90||
|||144,662.73|
|interests|||
|7. Total comprehensive income|-3,153,942.84|35,147,660.97|
|Attributable to owners of Parent|-4,024,224.94||
|||34,959,096.42|
|Company|||
|Attributable to non- controllin|g870,282.10||
|||188,564.55|
|interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|-0.0059|0.0342|
|8.2 Diluted earnings per share|-0.0059|0.0342|

 Where business mergers under the same control occurred in the current period, the net income achieved by the merged parties before the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Zhou Jianguo Head of financial affairs: Tang Xiaoping
Head of the financial department: Qiao Yanjun
4. Parent Company Income Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Sales revenue|14,713,168.57|70,517,089.34|
|Less: Cost of sales|6,208,841.78|35,131,220.91|
|Taxes and surtaxes|1,844,377.36|3,211,986.71|
|Selling expense|175,734.43|377,351.35|
|Administrative expense|5,252,961.05|4,981,295.54|
|Finance costs|-6,393,134.73|-7,649,431.84|
|Asset impairment losses|||
|Add: Gains on changes in fair value(“-” for losses)|||
|Investment income (“-” for loss)|827,100.00|170,043,952.18|
|Including: Share of profit or lossof joint ventures and associates|||
|Asset disposal income ( “-” forloss)|||
|Other income|||
|2. Operating income (“-” for loss)|8,451,488.68|204,508,618.85|
|Add: Non-operating revenue|||
|Less: Non-operating expense|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|3. Pretax income (“-” for loss)|8,451,488.68|204,508,618.85|
|Less: Income tax expense|1,908,478.09|8,617,159.92|
|4. Net income (“-” for net loss)|6,543,010.59|195,891,458.93|
|4.1 Net income from continuing|||
||6,543,010.59|195,891,458.93|
|operations (“-” for net loss)|||
|4.2 Net income from discontinued|||
|operations (“-” for net loss)|||
|5. Other comprehensive income, net of|||
|tax|||
|5.1 Items that will not be reclassified|||
|to profit or loss|||
|5.1.1 Changes in net liabilities or|||
|assets caused by remeasurements on|||
|defined benefit pension schemes|||
|5.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified into profit or|||
|loss under equity method|||
|5.2 Items that may subsequently be|||
|reclassified to profit or loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit or loss|||
|under equity method|||
|5.2.2 Gains/Losses on changes in|||
|fair value of available-for-sale financial|||
|assets|||
|5.2.3 Gains/Losses arising from|||
|reclassification of held-to- maturity|||
|investments to available-for- sale|||
|financial assets|||
|5.2.4 Effective gains/losses on|||
|cash flow hedges|||
|5.2.5 Differences arising from|||
|translation of foreign|||
|currency-denominated financia l|||
|statements|||
|5.2.6 Other|||
|6. Total comprehensive income|6,543,010.59|195,891,458.93|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.0065|0.1936|

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|7.2 Diluted earnings per share|0.006|5 0.1936|

 5. Consolidated Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||508,376,103.06|349,371,612.56|
|and rendering of services|||
|Net increase in customer deposits|||
|and deposits from banks and other|||
|financial institutions|||
|Net increase in loans from central|||
|bank|||
|Net increase in loans from other|||
|financial institutions|||
|Premiums received on original|||
|insurance contracts|||
|Net proceeds from reinsurance|||
|Net increase in deposits and|||
|investments of policy holders|||
|Net increase in proceeds from|||
|disposal of financial assets at fair value|||
|through profit or loss|||
|Interest, handling charges and|||
|commissions received|||
|Net increase in interbank loans|||
|obtained|||
|Net increase in proceeds from|||
|repurchase transactions|||
|Tax rebates|||
|Cash generated by other operating|||
||27,054,470.97|23,581,953.94|
|activities|||
|Subtotal of cash generated by operating|||
||535,430,574.03|372,953,566.50|
|activities|||
|Payments for commodities and|||
||233,840,761.90|271,660,067.44|
|services|||
|Net increase in loans and advances|||
|to customers|||
|Net increase in deposits in central|||
|bank and in interbank loans granted|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Payments for claims on original|||
|insurance contracts|||
|Interest, handling charges and|||
|commissions paid|||
|Policy dividends paid|||
|Cash paid to and for employees|37,500,909.89|46,874,822.62|
|Taxes paid|33,664,886.97|40,309,529.03|
|Cash used in other operating|||
||25,085,479.23|44,389,746.15|
|activities|||
|Subtotal of cash used in operating|||
||330,092,037.99|403,234,165.24|
|activities|||
|Net cash flows from operating|||
||205,338,536.04|-30,280,598.74|
|activities|||
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|||
|Investment income|827,100.00|650,000.00|
|Net proceeds from disposal of|||
|property, plant and equipment,|||
|intangible assets and other long- lived|||
|assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||827,100.00|650,000.00|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets|77,948.00|17,621.00|
|and other long-lived assets|||
|Payments for investments|||
|Net increase in pledged loans|||
|granted|||
|Net payments for acquisition of|||
|subsidiaries and other business units|||
|Cash used in other investing|||
|activities|||
|Subtotal of cash used in investing|||
||77,948.00|17,621.00|
|activities|||
|Net cash flows from investing activities|749,152.00|632,379.00|
|3. Cash generated by or used in|||
|financing activities:|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Capital contributions received|||
|Including: Capital contributions|||
|by non- controlling interests to|||
|subsidiaries|||
|Increase in borrowings obtained|||
|Net proceeds from issuance of bonds|||
|Cash generated by other financing|||
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|106,000,000.00|7,914,918.53|
|Payments for interest and dividends|1,511,319.32|2,464,710.97|
|Including: Dividends paid by|||
|subsidiaries to non-controlling interests|||
|Cash used in other financing|||
|activities|||
|Subtotal of cash used in financing|||
||107,511,319.32|10,379,629.50|
|activities|||
|Net cash flows from financing|||
||-107,511,319.32|-10,379,629.50|
|activities|||
|4. Effect of foreign exchange rate|||
||-331,487.62|-95,420.10|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||98,244,881.10|-40,123,269.34|
|equivalents|||
|Add: Cash and cash equivalents,|||
||1,207,079,090.29|1,265,767,290.57|
|beginning of the period|||
|6. Cash and cash equivalents, end of|||
||1,305,323,971.39|1,225,644,021.23|
|the period|||

6. Parent Company Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||15,665,006.27|69,759,767.31|
|and rendering of services|||
|Tax rebates|0.00||
|Cash generated by other operating|||
||186,998,218.65|6,653,936.44|
|activities|||
|Subtotal of cash generated by operating|||
||202,663,224.92|76,413,703.75|
|activities|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Payments for commodities and|||
||26,588,669.89|23,224,035.38|
|services|||
|Cash paid to and for employees|7,672,327.20|12,654,048.17|
|Taxes paid|7,159,077.72|23,798,753.26|
|Cash used in other operating|||
||34,247,886.16|4,332,281.70|
|activities|||
|Subtotal of cash used in operating|||
||75,667,960.97|64,009,118.51|
|activities|||
|Net cash flows from operating|||
||126,995,263.95|12,404,585.24|
|activities|||
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|||
|Investment income|827,100.00|650,000.00|
|Net proceeds from disposal of|||
|property, plant and equipment,|||
|intangible assets and other long- lived|||
|assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||827,100.00|650,000.00|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets||6,949.00|
|and other long-lived assets|||
|Payments for investments|||
|Net payments for acquisition of|||
|subsidiaries and other business units|||
|Cash used in other investing|||
|activities|||
|Subtotal of cash used in investing|||
|||6,949.00|
|activities|||
|Net cash flows from investing activities|827,100.00|643,051.00|
|3. Cash generated by or used in|||
|financing activities:|||
|Capital contributions received|||
|Increase in borrowings obtained|||
|Net proceeds from issuance of bonds|||
|Cash generated by other financing|||

ShenZhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|106,000,000.00|7,914,918.53|
|Payments for interest and dividends|1,233,680.56|2,242,863.97|
|Cash used in other financing|||
|activities|||
|Sub-total of cash used in financing|||
||107,233,680.56|10,157,782.50|
|activities|||
|Net cash flows from financing|||
||-107,233,680.56|-10,157,782.50|
|activities|||
|4. Effect of foreign exchange rate|||
||-13,487.07|-6,179.32|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||20,575,196.32|2,883,674.42|
|equivalents|||
|Add: Cash and cash equivalents,|||
||726,801,673.89|818,261,250.52|
|beginning of the period|||
|6. Cash and cash equivalents, end of|||
||747,376,870.21|821,144,924.94|
|the period|||

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