Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
2016-021
August 2016
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., 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 Special Economic Zone Real Estate& Properties (Group) Co., 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.
Zhou Jianguo, Board Chairman, Chen Maozheng, GM, Tang Xiaoping, accounting head for the Report, and Qiao Yanjun, head of the accounting organ (head of accounting), hereby guarantee that the Financial Report carried in the Report is factual, accurate and complete.
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 Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Contents
Semi-annual Report 2016 .................................................................................................................. 1 Section I Important Statements, Contents and Terms .................................................................... 2 Section II Corporate Profile .............................................................................................................. 5 Section III Highlights of Accounting Data and Financial Indicators ............................................ 7 Section IV Report by the Board of Directors .................................................................................. 9 Section V Significant Events ........................................................................................................... 16 Section VI Share Changes andShareholders’ Profile ................................................................... 22 Section VII Preference Shares......................................................................................................... 26 Section VIII Directors, Supervisors and Senior Management ..................................................... 27 Section IX Financial Report ............................................................................................................ 29 Section X Documents Available for Reference ............................................................................ 112
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Terms
|||
|-|-|
|Term|Meaning|
||Shenzhen Special Economic Zone Real Estate & Properties (Group)|
|Company, the Company, the Group||
||Co., Ltd.|
|The holding company|Shenzhen Investment Holdings Co., Ltd.|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Section II Corporate Profile
I Corporate information
|||||
|-|-|-|-|
|Stock name|SPG A（SPG B）|Stock code|000029（200029）|
|Changed stock name (if||||
||---|||
|any)||||
|Stock exchange|Shenzhen Stock Exchange|||
|Company name in|深圳经济特区房地产(集团)股份有限公司|||
|Chinese||||
|Abbr. (if any)|深房集团|||
|Company name in||||
||ShenZhen Special Economic Zone Real Estate&Properties (Group).co.，Ltd．|||
|English (if any)||||
|Abbr. (if any)|SPG|||
|Legal representative|Zhou Jianguo|||

II Contact information
||||
|-|-|-|
||Board Secretary|Securities Representative|
|Name|Mr. Chen Ji|Mr. Luo Yi|
||47/F, SPG Plaza, Renmin South|47/F, SPG Plaza, Renmin South|
|Address|Road, Shenzhen, Guangdong|Road, Shenzhen, Guangdong|
||Province, P.R.China|Province, P.R.China|
|Tel.|(86 755) 82293000-4718|(86 755) 82293000-4715|
|Fax|(86 755) 82294024|(86 755) 82294024|
|E-mail|spg@163.net|spg@163.net|

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
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.
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
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 Special Economic Zone Real Estate& Properties (Group) Co., 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)|1,097,886,969.68|1,147,552,773.96|-4.33%|
|Net profit attributable to|134,761,121.51|186,407,824.38||
||||-27.71%|
|shareholders of the Company (RMB)||||
|Net profit attributable t o||||
|shareholders of the Company||||
||127,321,586.10|186,128,156.90|-31.59%|
|excluding exceptional profit and loss||||
|(RMB)||||
|Net cash flows from operating|426,167,980.76|455,886,943.95||
||||-6.52%|
|activities (RMB)||||
|Basic earnings per share|0.1332|0.1843||
||||-27.73%|
|(RMB/share)||||
|Diluted earnings per share|0.1332|0.1843||
||||-27.73%|
|(RMB/share)||||
|Weighted average return on equity||||
||5.62%|8.27%|-2.65%|
|(%)||||
||As at the end of the|As at the end of last||
||||+/- (%)|
||Reporting Period|year||
|Total assets (RMB)|4,476,971,687.18|4,179,937,120.75|7.11%|
|Net assets attributable to|2,464,895,851.04|2,331,704,116.07||
||||5.71%|
|shareholders of 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
Unit: RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of||Net assets attributable to shareholders of||
||the Company||the Company||
|||Same period of last|||
||Reporting Period||Closing amount|Opening amount|
|||year|||
|According to Chinese|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|
|accounting standards|||||
|Items and amounts adjusted according to international accounting standards|||||
|According to international|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|
|accounting standards|||||

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
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
Unit: RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of||Net assets attributable to shareholders of||
||the Company||the Company||
|||Same period of last|||
||Reporting Period||Closing amount|Opening amount|
|||year|||
|According to Chinese|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|
|accounting standards|||||
|Items and amounts adjusted according to overseas accounting standards|||||
|According to overseas|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|
|accounting standards|||||

3. Reason for any differences in accounting data under domestic and overseas accounting standards□ Applicable√ Not applicable
III Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Reporting Period|Note|
|Profit/loss on disposal of non-current as sets (including|-2,647.50||
|offset asset impairment provisions)|||
||4,800,000.00|We have recovered theamount involved in thelawsuit with LuofuMountain Travel Corp., andthe relevant bad- debtprovision has thus beenreversed|
|Impairment provision reversal for accounts receivable|||
|on which the impairment test is carried out separately|||
||5,115,528.04|Compensation from thelawsuit with LuofuMountain Travel Corp.|
|Non-operating revenue and expense other than the|||
|above|||
|Less: Corporate income tax|2,473,345.13||
|Total|7,439,535.41|--|

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 Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Section IV Report by the Board of Directors
I Overview
2016 marked the opening of China ’s 13
th
Five-Year Plan for National Economy and Social Development, which included a macro-economic policy of steady growth. However, the downward pressure on economy was mounting and the real estate market polarized. To deal with that, we carefully drew up our development strategies, properly ran our main business, strictly controlled costs and constantly improved our management capability. Meanwhile, we beefed up project construction and marketing and tried to increase our professionalism and brand influence for a stable growth.
II Analysis of main business
Overview
For the Reporting Period, we achieved operating revenues of RMB1,097.89 million, down4.33% from the same period of last year; operating profit of RMB175.90 million, a29.48% decrease on a year-on-year basis; total profit of RMB181.01 million, decreasing27.55% from a year earlier; and net profit attributable to our shareholders of RMB134.76 million, down27.71% from the same period of last year, mainly because our real estate revenue fell from a year earlier.
YoY movements in major financial data
Unit: RMB
||||||
|-|-|-|-|-|
||Reporting|Same period of|||
||||YoY +/-%|Main reason for movement|
||Period|last year|||
||1,097,886,969.68|1,147,552,773.96|||
|Operating revenues|||-4.33%||
|Operating costs|816,027,244.11|697,645,876.15|16.97%|Decreased gross profit margin|
||5,107,741.43|17,246,176.75||Decrease in sales agency fees and|
|Selling expenses|||-70.38%||
|||||commissions|
|Administrative|26,957,331.77|28,705,983.90|||
||||-6.09%||
|expenses|||||
||-7,048,153.64|24,955,931.85||Construction of new real estate project started|
|Finance costs|||-128.24%|in the Reporting Period and the relevant|
|||||interest was thus capitalized|
|Corporate income tax|46,284,687.48|63,426,291.44|-27.03%|Decreased total profit|
|Net cash flows from|426,167,980.76|455,886,943.95|||
||||-6.52%||
|operating activities|||||
||-20,267.34|-972,035.99||Increase in cash received as return on|
|Net cash flows from||||investment and decrease in cash paid to|
||||97.91%||
|investing activities||||acquire fixed assets, intangible assets and|
|||||other long-term assets|
|Net cash flows from|-99,464,268.41|-158,399,191.80|||
||||37.21%|Decrease in loan repayments|
|financing activities|||||
|Net increase in cash|326,931,012.56|296,509,736.30|||
||||10.26%||
|and cash equivalents|||||
|Business tax and|||||
||86,368,209.71|129,612,334.64|-33.36%|Decreased real estate revenue|
|surtaxes|||||
|Non-operating|5,213,457.94|461,705.12|1,029.17%|Compensation from the lawsuit with Luofu|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
||||||
|-|-|-|-|-|
|revenue||||Mountain Travel Corp.|
|Asset impairment|||||
||-4,800,000.00|159,351.00|-3,112.22%|Reversal of bad-debt provision|
|loss|||||

Major changes in the profit structure or sources of the Company during 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 any previously disclosed business plan in the Reporting Period:
Not applicable.
III Breakdown of main business
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrea||Increase/decrea|
||||||Increase/decrea||
|||||se of operating||se of gross|
||||||se of operating||
||Operating||Gross profit|revenue over||profit rate over|
|||Operating cost|||cost over the||
||revenue||rate|the same||the same|
||||||same period of||
|||||period of last||period of last|
||||||last year||
|||||year||year|
|Classified by industry|||||||
|Real estate|531,354,186.0|302,088,298.9|||||
||||43.15%|-31.73%|-19.17%|-8.84%|
||0|8|||||
|||450,003,730.3|||||
|Construction|472,256,586.11||4.71%|63.66%|64.15%|-0.28%|
|||5|||||
|Leasing|39,640,195.52|17,884,231.72|54.88%|-1.73%|14.02%|-6.24%|
|Property|||||||
||54,794,063.91|50,959,546.17|7.00%|1.87%|3.29%|-1.28%|
|management|||||||
||1,098,045,031.|820,935,807.2|||||
|Subtotal|||25.24%|-5.42%|13.58%|-12.51%|
||54|2|||||
|Less: offset|||||||
|internal|15,370,384.42|14,869,496.49|3.26%|-37.91%|-39.34%|2.28%|
|transactions|||||||
||1,082,674,647.|806,066,310.7|||||
|Total|||25.55%|-4.72%|17.09%|-13.87%|
||12|3|||||
|Classified by product|||||||
||472,173,003.0|274,265,737.3|||||
|Housing units|||41.91%|-20.77%|-5.26%|-9.51%|
||0|6|||||
|Shops|59,181,183.00|27,822,561.62|52.99%|242.73%|330.34%|-9.57%|
||566,690,845.5|546,670,069.8|||||
|Other products|||3.53%|0.29%|61.18%|-7.84%|
||4|6|||||
||1,098,045,031.|566,690,845.5|||||
|Subtotal|||48.39%|-5.42%|15.15%|-13.36%|
||54|4|||||
|Offset internal|||||||
||15,714,975.42|14,869,496.49|5.38%|-36.52%|-39.34%|4.40%|
|transactions|||||||
||1,082,674,647.|806,066,310.7|||||
|Total|||25.55%|-4.72%|17.09%|-13.87%|
||12|3|||||
|Classified by region|||||||
|Guangdong|1,035,923,706.|762,496,486.3|||||
||||26.39%|-7.63%|12.84%|-13.35%|
|Province|97|5|||||
|Other regions|61,835,121.24|58,439,320.87|5.49%|57.52%|57.24%|0.17%|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|in China|||||||
|Overseas|286,203.33||100.00%|8.60%|0.00%|0.00%|
||1,098,045,031.|820,935,807.2|||||
|Subtotal|||25.24%|-5.42%|15.15%|-13.36%|
||54|2|||||
|Less: offset|||||||
|internal|15,370,384.42|14,869,496.49|3.26%|-37.91%|-39.34%|2.28%|
|transactions|||||||
||1,082,674,647.|806,066,310.7|||||
|Total|||25.55%|-4.72%|17.09%|-13.87%|
||12|3|||||

IV Core competitiveness analysis
As one of the earliest real estate listed companies in Shenzhen, the Company has a history over 30 years in real estate development in Shenzhen and rich experience in the main business of real estate development. In recent years, through the forging and the baptism from Guangming SPG Chuanqi Hill, Longgang SPG Shanglin Garden and the Shantou Project, the Company accelerated the construction of the modern enterprise human resources management mechanism, made great effort to forge the professional and high-quality development team; continuously perfect the projects development management system as well as the control process, which led the professional level and the control capacity improved obviously, the planning, construction, cost management and control, sales ability and the brand image enhanced efficiently, the service power of the real estate major business strengthened constantly with the core competitiveness improving all the time. The Company executed the profits distribution of the half year of Y2015 and up to the end of Y2015, the operating income and the profits had realized the increase for seven years in succession with the third quarter be included in the component stocks such as the “Hang Seng index of Shenzhen and Hong Kong” and “Hang Seng Shenzhen and Hong Kong Real Estate Index ”; in Y2015, the Company also granted multiple prizes such as the “Best Credit Enterprise in Guangdong Province” and “Five-star Civilized Law-abiding Rental Enterprise”.
V Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
□ Applicable√ Not applicable
The Company did not invest in any external party in the Reporting Period.
(2) Equity-holdings in financial enterprises
□ Applicable√ Not applicable
The Company did not hold any equity in any financial enterprise in the Reporting Period.
(3) Investment in securities
□ Applicable√ Not applicable
The Company did not invest in any securities in the Reporting Period.
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
(4) Shareholdings in other listed companies
□ Applicable√ Not applicable
There was no such situation of the Company in the Reporting Period.
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
□ Applicable√ Not applicable
There was no such situation of the Company in the Reporting Period.
(2) Derivative investments
□ Applicable√ Not applicable
There was no such situation of the Company in the Reporting Period.
(3) Entrustment loans
□ Applicable√ Not applicable
There was no such situation of the Company in the Reporting Period.
3. Use of raised funds
□ Applicable√ Not applicable
There was no such situation of the Company in the Reporting Period.
4. Analysis to main subsidiaries and stock-participating companies
√ Applicable□ Not applicable
Main subsidiaries and stock-participating companies:
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Compa||Main|||||||
|Company||||Registered|||Operating|Operating||
|||Industry|||Total assets|Net assets|||Net profit|
||ny||products/s|||||||
|name||||capital|||revenues|profit||
||variety||ervices|||||||
|Shenzhen||||||||||
|Petrel|Subsidi||Hotel|RMB30||38,376,857.6|13,619,083.3|1,023,013.3||
|||Service|||44,220,340.54||||760,473.32|
|Hotel Co.,|ary||Service|million||0|7|8||
|Ltd.||||||||||
|Shenzhen||||||||||
||||Property|||||||
|Property|Subsidi|||RMB7.25||18,987,330.9|61,669,453.7|1,132,460.8||
|||Service|manageme||83,500,969.11||||944,467.29|
|Manageme|ary|||million||2|9|9||
||||nt|||||||
|nt Co., Ltd.||||||||||
|Shenzhen|||Fixing and|||||||
|Zhentong|Subsidi||maintenan|RMB10|379,268,361.2|20,163,761.1|472,821,787.|2,801,149.6|2,579,548.5|
|||Service||||||||
|Engineerin|ary||ce of|million|5|0|01|1|4|
|g Co., Ltd.|||projects|||||||
|Shenzhen|Subsidi|Service|Constructi|RMB8|8,463,308.30|7,773,234.03|1,009,577.66|-618,814.39|-618,814.39|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Huazhan|ary||on|million||||||
|Constructi|||supervisio|||||||
|on|||n|||||||
|Supervisio||||||||||
|n Co., Ltd.||||||||||
|Shenzhen||||||||||
|SPG||||||||||
||Subsidi|||RMB10.29||13,292,400.6||||
|Mini-bus||Service|||17,381,491.14||1,872,459.87|260,419.45|195,314.59|
||ary|||million||4||||
|Rent Co.,|||Rent of|||||||
|Ltd.|||mini-bus|||||||
|||Investm|Investment|||||||
|Xin Feng||||||||||
||Subsidi|ent|,|HKD1|291,756,977.9|34,680,002.9|27,753,254.0|||
|Real Estate||||||||42,519.15|-184,862.63|
||ary|manage|manageme|million|4|5|0|||
|Co., Ltd.||||||||||
|||ment|nt|||||||
|Great Wall|||Developm|||||||
||Subsidi|Real||USD0.5||-83,837,963.8||||
|Estate Co.,|||ent of real||19,131,282.00||286,203.33|-110,409.13|-110,409.13|
||ary|estate||million||8||||
|Inc. (U.S.)|||estate|||||||
|||Investm|Investment|||||||
|Xin Feng||||||||||
||Subsidi|ent|and|HKD1|152,493,666.0|-412,506,860.||-4,206,208.|-4,208,630.0|
|Enterprise|||||||123,500.00|||
||ary|manage|manageme|million|7|34||89|6|
|Co., Ltd.||||||||||
|||ment|nt|||||||
|Shenzhen||||||||||
|SPG|||Developm|||||||
||Subsidi|Real||RMB30|793,657,280.0|138,571,426.|222,309,042.|77,784,597.|58,315,947.|
|Longgang|||ent of real|||||||
||ary|estate||million|5|58|00|03|77|
|Developme|||estate|||||||
|nt Co., Ltd.||||||||||
|Shantou||||||||||
|Huafeng|||Developm|||||||
||Subsidi|Real||RMB30|497,608,951.2|13,449,885.4||||
|Real Estate|||ent of real|||||||
||ary|estate||million|9|7||||
|Developme|||estate|||||||
|nt Co., Ltd.||||||||||

5. Significant projects invested with non-raised funds
√ Applicable□ Not applicable
Unit:RMB’0,000
|||||||||
|-|-|-|-|-|-|-|-|
||||Cumulative|||||
||||||||Disclosure|
||Total planed|Input for this|actual input|Project|Project|Disclosure||
|Project name|||||||index (if|
||investment|period|as at the|progress|earnings|date (if any)||
||||||||any)|
||||period-end|||||
|Chuanqi Donghu||||||||
|Mingyuan||||||||
|(originally as|44,600|1,034.2|10,764.31|24.00%||||
|Donghu Dijing||||||||
|Mingyuan)||||||||
|Jingtian Tianju||||||||
|International|20,000|423.89|5,352.41|27.00%||||
|Apartment||||||||
|SPG Cuilinyuan||||||||
|(South Part of||||||||
||50,000|3,237.76|17,989.29|35.00%||||
|SPG Shanglin||||||||
|Garden)||||||||
|Phase I of||||||||
||73,200|7,737.01|30,486.27|41.00%||||
|Tianyuewan||||||||
|Total|187,800|12,432.86|64,592.28|--|--|--|--|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
VI Predict the operating results of January-September 2016
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the next Reporting Period according to prediction, as well as explanations on the reasons:
□ Applicable√ Not applicable
VII Explanation by the Board of Directors and the Supervisory Committee about the
“non-standard audit report” issued by the CPAs firm for the Reporting Period
□ Applicable√ Not applicable
VIII Explanation by the Board of Directors about the “non-standard audit report” for last year
□ Applicable√ Not applicable
IX Implementation of profit allocation during the Reporting Period
Profit allocation plan implemented during the Reporting Period, especially execution and adjustment of the cash dividend plan and the plan for turning capital reserve into share capital:
□ Applicable√ Not applicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital of the profits distribution plan of last year.
X Preplan for profit distribution and turning capital reserve into share capital for the
Reporting Period
Applicable√ Not applicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital of the profits distribution plan of the half year.
XI Researches, visits and interviews received in the Reporting Period
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
|||Way of|||Main discussion and materials provided by|
|Time|Place||Visitor type|Visitor||
|||reception|||the Company|
||||||Inquire of the situation such as the|
|||By||Individual|development progress of the projects and the|
|29 Jan. 2016|Office||Individual|||
|||telephone||investor|number of the shareholders of the Company,|
||||||didn’t offer written materials|
||||||Inquire of the appointed disclosure time of|
|||By||Individual|the annual report and the development as|
|9 Mar. 2016|Office||Individual|||
|||telephone||investor|well as sales situation of the 2015 projects of|
||||||the Company, didn’t offer written materials|
||||||Inquire of the situation such as the|
|||By||Individual|development progress of the projects and the|
|13 May 2016|Office||Individual|||
|||telephone||investor|influences on the Company of the Shenzhen|
||||||state-owned assets reform of state- owned|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
|||||||
|-|-|-|-|-|-|
||||||enterprises, didn’t offer written materials|
||||||Inquire of the appointed disclosure time of|
|||By||Individual|the semi-annual report and the number of the|
|28 Jun. 2016|Office||Individual|||
|||telephone||investor|shareholders of the Company, didn ’t offer|
||||||written materials|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Section V Significant Events
I Information about corporate governance
The actual situation of the corporate governance had no difference with the Company Law and the requirements of the relevant regulations of the CSRC.
For initiative implementing and Executing the requirements of the Notice on Developing the Special Project of Protecting the “ACTION BLUE SKY ” by the Investors issued by Shenzhen Securities Regulatory Bureau(SZJF[2016] No. 15), and for practically improve the quality of the information disclosure of the Company, guide the investors to build up the concept of long-term investment and rational investment as well as to put the protection of the legal equities of the investors in practice, the Company had formulated the special work proposal of the “ACTION BLUE SKY”. And according to the requirements of the proposal, the Company had executed the special bulletin on the notice spirit and the special work proposal on the Board of Directors with corresponding promotion among the inter network of the Company, which led the management staff all levels and the general employees to fully know of the obligations of the listed companies as well as to build up the responsibility of the investors’ equities protection. Besides, the Company also disclosed the management situation of the investor relations during the disclosure period of the periodic report according to the requirements of the proposal and promoted theinvestors’ protection concept through various channels for a long time to do best in the investors service work.
II Lawsuits
Significant lawsuit or arbitration
□ Applicable√ Not applicable
No such situation of the Company during the Reporting Period.
Other lawsuits
√ Applicable□ Not applicable
|||||||||
|-|-|-|-|-|-|-|-|
||Involved|||||Date||
|Basic||Projected||||||
||amount|||||of|Disclosure|
|informatio||liability|Progress|Ruling and influence|Execution of ruling|||
||(RMB’0,|||||disclos|index|
|n||or not||||||
||000)|||||ure||
|||||① Business Tourism||||
|||||Company had to pay for||||
|||||the compensation|The applicant has received|||
|||||RMB36,620 thousand and|RMB15.20 million. Now|||
|||||the relevant interest (from|Business Tourism||www.cninf|
|||||14 September 1998 to the|Company has no||o.com.cn|
|Xi’an|||In|||29||
|||||payment day) to Xi ’an|executable properties and||Text of the|
|Project|2,100|No|executio|||Aug.||
|||||Fresh Peak Company|Xi’an Joint Commission on||2015|
|Lawsuit|||n|||2015||
|||||within one month after|Commerce has been||Semi-annua|
|||||the judgment entering|refusing to execute the||l Report|
|||||into force. If the Business|ruling. It is difficult to|||
|||||Tourism Company failed|recover the rest.|||
|||||to pay in time, it had to||||
|||||pay double debt interests||||

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|||||to Xi ’an Fresh Peak||||
|||||Company for the overdue||||
|||||period; ② Xi’an Joint||||
|||||Commission on||||
|||||Commerce had jointly||||
|||||and severally obligation||||
|||||of the interests of the||||
|||||compensation; .③||||
|||||Business Tourism||||
|||||Company shall bear||||
|||||RMB227,500 of the||||
|||||acceptance fee and the||||
|||||security fee.||||
||||||On 21 April. 2016, the|||
||||||Company had signed the|||
||||||Pacification Agreement on|||
|||||① Luofu Hill Tourism|Enforcement with the|||
|||||Company has paid back|Guangdong Luofu Hill|||
|||||RMB9.6 million; ②|Tourism Development|||
|||||Luofushan Administration|Corporation,||www.cninf|
|||||Committee had to|Administration Committee||o.com.cn|
||||Executio|||||
|Luofu Hill||||undertake one third of the|of Guangdong Luofu Hill||Announce|
||||n|||7 May||
|project|960|No||debts which Luofushan|Scenic Area. According to||ment on the|
||||complete|||2016||
|Lawsuit||||Tourism was unable to|the agreement, Guangdong||Progress of|
||||d|||||
|||||repay; ③ Luofu Hill|Luofu Hill Tourism||the|
|||||Tourism Company shall|Development Corporation||Lawsuits|
|||||bear RMB167,700 of the|had transferred the|||
|||||case acceptance f ee and|settlement agreement|||
|||||the security fee.|amount of RMB18 million|||
||||||in the appointed account of|||
||||||the Company and the case|||
||||||had closed since then.|||

IIIMedia’s queries
□Applicable√Not applicable
There was nomedia’s common query during the Reporting Period.
IV Bankruptcy reorganization
□ Applicable√ Not applicable
No event involving bankruptcy reorganization occurred to the Company during the Reporting Period.
V Asset transactions
1. Purchase of assets
□ Applicable√ Not applicable
There was no purchase of asset by the Company during the Reporting Period.
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Sale of assets
□ Applicable√ Not applicable
There was no sale of assets by the Company during the Reporting Period.
3. Business combination
□ Applicable√ Not applicable
No business combination occurred to the Company during the Reporting Period.
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
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Obtain|||
||||||||As a||||able|||
|||||||||Appro||||||
||||||||percent||||market|||
||Relatio|||||Transa||ved|Over||||Index to|
|||Type|Conten||||age of|||Mode|price|||
||n with|||Pricing|Transa|ction||transac|the|||Disclos|the|
|Relate||of|ts of||||transac|||of|for|||
||the|||princip|ction|amount||tion|approv|||ure|disclosed|
|d party||transac|transac||||tions of|||settlem|transac|||
||Compa|||le|price|(RMB’||line|ed line|||date|informati|
|||tion|tion||||the|||ent|tions of|||
||ny|||||0,000)||(RMB’|or not||||on|
||||||||same||||the|||
|||||||||0,000)||||||
||||||||kind||||same|||
||||||||||||kind|||
||Shenzh|||||||||||||
|Shenzh|en||||||||||||2015|
|en|Zhento||||||||||||Annual|
|||||Open||||||Bank||30||
|Jianan|ng|Constr|1 Jun .||||||||||Report|
|||||biddin|-|244.32|0.52%|244.32|No|transfe|-|Mar.||
|Group|Engine|uction|2012||||||||||www.cni|
|||||g||||||r||2016||
|Co.,|ering||||||||||||nfo.com.|
|Ltd.|Co.,||||||||||||cn|
||Ltd.|||||||||||||
|Total||||--|--|244.32|--|244.32|--|--|--|--|--|
|Details about return of||||||||||||||
|||||Naught||||||||||
|large-amount sales||||||||||||||
|Where the Company classifies||||||||||||||
|and estimates the total amount||||||||||||||
|of routine related- party||||||||||||||
|transactions for the Reporting||||Naught||||||||||
|Period, explain the actual||||||||||||||
|implementation during the||||||||||||||
|Reporting Period (if any)||||||||||||||
|Explain why the transaction||||||||||||||
|price is greatly different from||||Not applicable||||||||||
|the market price (if any)||||||||||||||

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Related-party transactions arising from acquisition and sale of assets
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. 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
No such cases in the Reporting Period.
5. Other related transactions
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VIII Occupation of the Company’s funds for non-operating purposes by the controlling shareholder and its related parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX. Significant contracts and their execution
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(2) Contract
□ Applicable√ Not applicable
No such cases in the Reporting Period.
(3) Lease
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
2. Guarantees provided by the Company
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. Other significant contracts
□ Applicable√ Not applicable
No such cases in the Reporting Period.
4. Other significant related-party transactions
□ Applicable√ Not applicable
No such cases in the Reporting Period.
X. Commitments made by the Company or shareholders holding over5% of the Company’s shares in the Reporting Period or such commitments carried down into the Reporting Period□ Applicable√ Not applicable
No such case in Reporting Period.
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes√ No
This semi-annual report is un-audited.
XII. Punishment and rectification
□ Applicable√ Not applicable
No such cases in the Reporting Period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable√ Not applicable
No such cases in the Reporting Period.
XIV. Other significant events
□ Applicable√ Not applicable
No such cases in the Reporting Period.
XV. Corporation bonds
Whether existing corporation bonds public issued and listed in Stock Exchange and maturity or maturity but not
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
fully paid on the approval report date of semi-annual report
Naught
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Section VI Share Changes andShareholders’ Profile
I. Changes in shares
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease (+/-)|||||After the change||
||||||Capitaliz|||||
||||Newly|||||||
|||Proporti||Bonus|ed||||Proporti|
||Amount||issue|||Others|Subtotal|Amount||
|||on||shares|Capital||||on|
||||share|||||||
||||||reserves|||||
|I. Restricted shares|0|0.00%|0|0|0|0|0|0|0.00%|
|1.Shares he ld by the||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|state||||||||||
|2. Shares held by||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|state-own Legal-person||||||||||
|3. Shares held by other||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|domestic investors||||||||||
|Among which: shares||||||||||
|held by domestic legal|0|0.00%||0|0|0|0|0|0.00%|
|person||||||||||
|Shares held by||||||||||
|domestic natural|0|0.00%|0|0|0|0|0|0|0.00%|
|person||||||||||
|4.Oversea||||||||||
||0|0.00%|0|0|0|0|0||0.00%|
|shareholdings||||||||||
|Among which: shares||||||||||
|held by oversea legal|0|0.00%|0|0|0|0|0|0|0.00%|
|person||||||||||
|Shares held by oversea||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|natural person||||||||||
|II. Shares not subject|1,011,66|||||||1,011,66||
|||100.00%|0|0|0|0|0||100.00%|
|to trading moratorium|0,000|||||||0,000||
|1. RMB ordinary|891,660,|||||||891,660,||
|||88.14%|0|0|0|0|0||88.14%|
|shares|000|||||||000||
|2. Domestically listed|120,000,|||||||120,000,||
|||11.86%|0|0|0|0|0||11.86%|
|foreign shares|000|||||||000||
|3. Oversea listed||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|foreign shares||||||||||
|4. Other|0|0.00%|0|0|0|0|0|0|0.00%|
||1,011,66|||||||1,011,66||
|III. Total shares||100.00%|0|0|0|0|0||100.00%|
||0,000|||||||0,000||

Reason for the change in shares
□ Applicable√ Not applicable
Approval of the change in shares
□ Applicable√ Not applicable
Reason for the change in shares
□ Applicable√ Not applicable
Effects of the change 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 last period
□ Applicable√ Not applicable
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Other contents that the Company considered necessary or were required by the securities regulatory authorities to disclose
□ Applicable√ Not applicable
Explanation on changes in share capital& the structure of shareholders, the structure of assets and liabilities□ Applicable√ Not applicable
II. Total number of shareholders and their shareholding
Unit: share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Total number of||||||Total number of preferred|||||
|shareholders at the||70,920||||stockholder with vote right|||0||
|Reporting Period||||||restored (if any)|||||
|Shareholding of common shareholders holding more than 5% shares or the top 10 of common shareholders|||||||||||
||||||||Number||Pledged or frozen shares||
|||||Number|Increase||||||
||||||||of shares|Number of|||
|||||of|and||||||
||||||||held|shares held|||
||||Holding|shareholdi|decrease||||||
|Name of|Nature of||||||subject|subject to|||
||||percentag|ng at the|of shares||||Status of||
|shareholder|shareholder||||||to|trading||Amount|
||||e (%)|end of the|during||||shares||
||||||||trading|moratoriu|||
|||||Reporting|Reporting||||||
||||||||moratori|m|||
|||||Period|Period||||||
||||||||um||||
|ShenzhenInvestmentHoldings Co.,Ltd|State-ownedcorporation||63.55%|642,884,262||||642,884,262|||
|ShanjinJinkongCapitalManagementCo., Ltd. －ShanjinJinkongWenjian No.1 Fund|Domesticnon-state-owned corporation||1.09%|11,000,050||||11,000,050|||
|Bank ofChina- EFund ActiveGrowthSecuritiesInvestmentFund|Domesticnon-state-owned corporation||0.39%|3,999,862||||3,999,862|||
|CenturySecuritiesCo., Ltd.|Domesticnon-state-owned corporation||0.39%|3,891,700||||3,891,700|||
|Lu Zhigao|Domesticindividual||0.37%|3,736,949||||3,736,949|||
||||||||||Pledged|1,219,177|
|RongtongCapitalManagement-CGB-Rongtong CapitalGoldensunflowerNo. 1 Asset|Domesticnon-state-owned corporation||0.13%|1,356,200||||1,356,200|||

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|ManagementPlan|||||||
|Ni Haichun|Domesticindividual|0.13%|1,312,600|1,312,600|||
|YangShuilian|Domesticindividual|0.13%|1,266,000|1,266,000|||
|CentralHuijin AssetManagementCo., Ltd.|State-ownedcorporation|0.12%|1,165,500|1,165,500|||
|YangJianxiong|Domesticindividual|0.11%|1,115,750|1,115,750|||
|Strategic investors or the general legal|||||||
|person due to the placement of new shares|||||||
||||N/A||||
|become the top 10 common shareholders|||||||
|(if any) (note 3)|||||||
||||The Company has found no related parties or act-in- concert parties as||||
|Explanation on associated relationship|||||||
||||defined in the Administrative Measures for Shareholding Changes in||||
|or/and persons|||||||
||||Listed Companies among the shareholders above.||||
|Particulars about shares held by top 10 common shareholders not subject to trading moratorium|||||||
|||Number of shares held not subject to trading|||Type of share||
|Name of shareholder|||||||
|||moratorium at the end of the period|||Type of share|Amount|
|Shenzhen Investment HoldingsCo., Ltd||642,884,262|||RMB ordinary||
|||||||642,884,262|
||||||shares||
|Shanjin Jinkong CapitalManagement Co., Ltd. －Shanjin Jinkong Wenjian No. 1Fund||11,000,050|||||
||||||RMB ordinary||
|||||||11,000,050|
||||||shares||
|Bank of China- E Fund ActiveGrowth Securities InvestmentFund||3,999,862|||||
||||||RMB ordinary||
|||||||3,999,862|
||||||shares||
|Century Securities Co., Ltd.||3,891,700|||RMB ordinary||
|||||||3,891,700|
||||||shares||
|Lu Zhigao||3,736,949|||RMB ordinary||
|||||||3,736,949|
||||||shares||
|Rongtong CapitalManagement-CGB-RongtongCapital Golden sunflower No.1 Asset Management Plan||1,356,200|||||
||||||RMB ordinary||
|||||||1,356,200|
||||||shares||
|Ni Haichun||1,312,600|||RMB ordinary||
|||||||1,312,600|
||||||shares||
|Yang Shuilian||1,266,000|||RMB ordinary||
|||||||1,266,000|
||||||shares||
|Central Huijin AssetManagement Co., Ltd.||1,165,500|||RMB ordinary||
|||||||1,165,500|
||||||shares||
|Yang Jianxiong||1,115,750|||Domestically||
||||||listed foreign|1,115,750|
||||||shares||
|Explanation on associated relationship|||||||
|among the top ten shareholders of tradable|||||||
|share not subject to trading moratorium,|||The Company has found no related parties or act-in- concert parties as||||
|as well as among the top ten shareholders|||defined in the Administrative Measures for Shareholding Changes in||||
|of tradable share not subject to trading|||Listed Companies among the shareholders above.||||
|moratorium and top ten shareholders, or|||||||
|explanation on acting-in-concert|||||||
|Particular about shareholder participate in|||Shareholder No. 5 and No. 7 among the top 10 shareholders hold some||||

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
|||
|-|-|
|the securities l ending and borrowing|of their shares in the Company in their credit accounts.|
|business (if any) (note 4)||

Whether the shareholders of a company conducted the transaction of repurchase under the agreement during the Reporting Period
□ Yes√ No
There was no shareholder of a company conduct the transaction of repurchase under the agreement during the Reporting Period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder during the Reporting Period
□ Applicable√ Not applicable
The controlling shareholder did not change during the Reporting Period.
Change of the actual controller during the Reporting Period
□ Applicable√ Not applicable
The actual controller did not change during the Reporting Period.
IV. Particulars on shareholding increase scheme during the Reporting Period proposed or implemented by the shareholders and act-in-concert persons
□ Applicable√ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the Reporting Period proposed or implemented by the shareholders and act-in-concert persons.
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Section VII Preferred Shares
□ Applicable√ Not applicable
There was no preferred stock during Reporting Period.
Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
Section VIII Directors, Supervisors, Senior Management I. Changes in shareholding of Directors, Supervisors and Senior Management Staff
√ Applicable□ Not applicable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||||Number of||
|||||Amount|Amount||Number of|||
||||Shares|||||restricted|Number of|
|||||of shares|of shares|Number|restricted|||
||||held at|||||shares|restricted|
|||||increased|decrease|of shares|shares|||
|||Current/f|the|||||authorized|shares|
|Name|Position|||at the|d at the|held at|authorized|||
|||ormer|period-be|||||at the|authorized at|
|||||Reportin|Reportin|period-en|at the|||
||||gin|||||Reporting|the period-end|
|||||g Period|g Period|d (share)|period-begi|||
||||(share)|||||Period|(share)|
|||||(share)|(share)||n (share)|||
|||||||||(share)||
||Chairma|||||||||
|Zhou||||||||||
||n of the|Current|0|0|0|0|0|0|0|
|Jianguo||||||||||
||Board|||||||||
||General|||||||||
|Chen||||||||||
||Manager|||||||||
|Maozhen||Current|0|0|0|0|0|0|0|
||and|||||||||
|g||||||||||
||Director|||||||||
|Zhuang|Supervis|||||||||
|||Current|80,000|0|0|80,000|0|80,000|0|
|Quan|or|||||||||
|Deng||||||||||
|Kangche|Director|Current|10,000|0|0|10,000|0|10,000|0|
|ng||||||||||
|Wen Li|Director|Current|0|0|0|0|0|0|0|
|Jiang||||||||||
||Director|Current|0|0|0|0|0|0|0|
|Lihua||||||||||
|Zhang|CFO and|||||||||
|||Current|0|0|0|0|0|0|0|
|Lei|Director|||||||||
||Independ|||||||||
|Liu||||||||||
||ent|Current|0|0|0|0|0|0|0|
|Quanmin||||||||||
||director|||||||||
||Independ|||||||||
|Song||||||||||
||ent|Current|0|0|0|0|0|0|0|
|Botong||||||||||
||director|||||||||
||Independ|||||||||
|Zhang||||||||||
||ent|Current|0|0|0|0|0|0|0|
|Shunwen||||||||||
||director|||||||||
|Wang|Supervis|||||||||
|||Current|0|0|0|0|0|0|0|
|Xiuyan|or|||||||||
||Supervis|||||||||
|Li Yufei||Current|0|0|0|0|0|0|0|
||or|||||||||
|Xiong||||||||||
||Supervis|||||||||
|Xingnon||Current|0|0|0|0|0|0|0|
||or|||||||||
|g||||||||||
||Supervis|||||||||
|Lin Jun||Current|0|0|0|0|0|0|0|
||or|||||||||
|Teng||||||||||
||Vice GM|Current|0|0|0|0|0|0|0|
|Xianyou||||||||||
|Wei||||||||||
||Vice GM|Current|0|0|0|0|0|0|0|
|Hanping||||||||||
|Tang|Vice GM|Current|0|0|0|0|0|0|0|

Shenzhen Special Economic Zone Real Estate& Properties (Group) Co., Ltd. Semi-annual Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Xiaoping||||||||||
||Chairma|||||||||
|Chen Ji|n|Current|0|0|0|0|0|0|0|
||Secretary|||||||||
|Shi||||||||||
||Supervis|||||||||
|Chunron||Former|0|0|0|0|0|0|0|
||or|||||||||
|g||||||||||
|Total|--|--|90,000|0|0|90,000|0|90,000|0|

 II. Particulars about changes of Directors, Supervisors and Senior Executives
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
|Lin Jun|Supervisor|Elected|27 April 2016|Elected by the congress of workers and staff|
|Shi Chunrong|Supervisor|Former|27 April 2016|Left for retirement|

Section IX Financial Report
Ⅰ. Audit report
Has this semi-report been audited?
□ Yes√ No
Ⅱ.Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
As of 30 Jun 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) Co., Ltd Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset：|||
|Monetary fund|1,502,687,318.92|1,175,756,306.36|
|Financial assets at fair valuethrough profit or loss|||
|Note receivables|18,153,767.30|18,663,872.02|
|Account receivables|158,963,445.82|112,543,908.66|
|Prepayments|45,513,420.79|22,952,379.40|
|Interest receivable|||
|Dividend receivable|1,052,192.76|1,052,192.76|
|Other receivables|63,357,207.23|61,673,343.42|
|Inventories|2,031,681,084.13|2,146,223,895.61|
|Non-current asset due in 1year|||
|Other current asset|69,522,405.70|40,315,831.06|
|Total current assets|3,890,930,842.65|3,579,181,729.29|
|Non-current assets：|||
|Available-for-sale financialassets|17,464,240.74|17,464,240.74|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equityinvestments|57,705,013.77|57,768,804.36|
|Investment property|425,276,998.07|435,058,564.20|
|Fixed assets|49,014,628.32|52,213,985.31|
|Construction in progress|||
|Fixed assets pending fordisposal|||
|Intangible assets|5,400,450.00|5,654,820.00|
|Development disbursements|||
|Goodwill|||
|Long-term Prepaid Expenses|670,991.27|397,608.64|
|Differed tax asset|30,508,522.36|32,197,368.21|
|Other non-current assets|||
|Total non-current assets|586,040,844.53|600,755,391.46|
|Total assets|4,476,971,687.18|4,179,937,120.75|
|Current liabilities：|||
|Short-term loans|122,284,378.21|143,418,286.29|

||||
|-|-|-|
|Notes payable|||
|Account payable|182,424,928.03|290,453,110.50|
|Advance Received fromCustomers|853,930,943.57|475,620,347.35|
|Employee benefits payable|37,140,201.87|38,750,019.72|
|Tax payable|57,050,233.14|63,459,415.42|
|Interest payable|16,535,277.94|17,535,277.94|
|Dividend payable|||
|Other payables|391,593,911.95|385,811,304.33|
|Non-current liability due in 1year|144,239,634.08|168,727,608.54|
|Other current liability|||
|Total current liability|1,805,199,508.79|1,583,775,370.09|
|Non-current liabilities：|||
|Long-term loan|325,399,708.82|382,233,324.88|
|Bond payable|||
|Long-term payable|10,438,655.14|10,480,629.35|
|Differed tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|335,838,363.96|392,713,954.23|
|Total liabilities|2,141,037,872.75|1,976,489,324.32|
|Owners’ equity：|||
|Share capital|1,011,660,000.00|1,011,660,000.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserve|978,244,910.11|978,244,910.11|
|Less：Treasury Share|||
|Other comprehensive income|8,494,205.07|10,063,591.61|
|Special reserves|||
|Surplus reserves|40,823,841.35|40,823,841.35|
|Common risk provision|||
|Undistributed profit|425,672,894.51|290,911,773.00|
|Equity attributable to parentcompany|2,464,895,851.04|2,331,704,116.07|
|Minority interests|-128,962,036.61|-128,256,319.64|
|Total owners’ equity|2,335,933,814.43|2,203,447,796.43|
|Total liabilities and owner's equity|4,476,971,687.18|4,179,937,120.75|

 Legal representative: Zhou Jianguo Person in charge of accounting: Tang Xiaoping
Person in charge of accounting organ:Qiao Yanjun
2.Balance sheet of the Parent Company
As of 30 June 2016
Preparedby：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) Co., Ltd. Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset：|||
|Monetary fund|1,104,538,762.64|858,492,165.42|
|Financial assets at fair valuethrough profit or loss|||

||||
|-|-|-|
|Note receivables|||
|Account receivables|5,088,762.24|9,412,675.23|
|Prepayments|9,000,000.00||
|Interest receivable|||
|Dividend receivable||140,763,284.58|
|Other receivables|751,476,965.47|682,468,446.16|
|Inventories|737,763,331.57|892,015,463.86|
|Non-current asset due in 1 year|||
|Other current asset|35,434,857.87|24,782,301.67|
|Total current assets|2,643,302,679.79|2,607,934,336.92|
|Non-current assets：|||
|Available-for-sale financial assets|12,000,000.00|12,000,000.00|
|Long-term receivable|||
|Long-term equity investments|316,339,969.11|316,403,759.70|
|Property investment|370,045,113.83|379,377,363.53|
|Fixed assets|27,528,785.80|28,849,484.59|
|Construction in progress|||
|Fixed assets pending for disposal|||
|Intangible assets|496,800.00|662,400.00|
|Development disbursements|||
|Goodwill|||
|Long-term Prepaid Expenses|708,255.97|377,908.74|
|Differed tax asset|5,717,550.76|5,717,550.76|
|Other non-current asset|||
|Total non-current assets|732,836,475.47|743,388,467.32|
|Total assets|3,376,139,155.26|3,351,322,804.24|
|Current liabilities：|||
|Short-term loans|||
|Financial liabilities at fair valuethrough profit or loss|||
|Notes payable|||
|Account payable|33,468,852.38|69,300,670.37|
|Advance Received from Customers|323,655,552.60|243,559,137.60|
|Employee benefits payable|16,210,334.71|13,579,802.91|
|Tax payable|29,017,872.51|37,099,690.34|
|Interest payable|16,535,277.94|17,535,277.94|
|Dividend payable|||
|Other payable|282,938,377.35|292,391,556.70|

||||
|-|-|-|
|Classified as held for sale debt|||
|Non-current liability due in 1 year|144,239,634.08|168,727,608.54|
|Other current liability|||
|Total current liability|846,065,901.57|842,193,744.40|
|Non-current liabilities：|||
|Long-term loan|325,399,708.82|382,233,324.88|
|Bond payable|||
|Long-term payable|||
|Long-term employee benefitspayable|||
|Special payable|||
|Expected liabilities|||
|Differed income|||
|Differed tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|325,399,708.82|382,233,324.88|
|Total liabilities|1,171,465,610.39|1,224,427,069.28|
|Owners’ equity：|||
|Share capital|1,011,660,000.00|1,011,660,000.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|978,244,910.11|978,244,910.11|
|Less：Treasury Share|||
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|17,694,227.94|17,694,227.94|
|Undistributed profit|197,074,406.82|119,296,596.91|
|Total owners’ equity|2,204,673,544.87|2,126,895,734.96|
|Total liabilities and owners’ equity|3,376,139,155.26|3,351,322,804.24|

3.Consolidated Income Statement
For the Period Jan-Jun, 2016
Prepared by: SHENZHEN SPECIAL ECONOMIC ZONE REALESTATE& PROP ERTIES (GROUP) CO.LTD Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for thecurrent period|Amount for theprior period|
|Ⅰ. Total operating income|1,097,886,969.68|1,147,552,773.96|
|Including: Operating income|1,097,886,969.68|1,147,552,773.96|
|Ⅱ. Total operating Costs|922,612,373.38|898,325,654.29|
|Including: Operating costs|816,027,244.11|697,645,876.15|
|Business tax and surcharge|86,368,209.71|129,612,334.64|
|Selling expenses|5,107,741.43|17,246,176.75|
|Administrative expense|26,957,331.77|28,705,983.90|
|Financial expense|-7,048,153.64|24,955,931.85|
|Impairment losses of assets|-4,800,000.00|159,351.00|
|Add: Gain on fair-value changes（“-”for loss）|||
|Investment income（“-”for loss）|625,209.41|220,307.27|
|Including: Investment income from associates and jointventure|-63,790.59|-129,692.73|

||||
|-|-|-|
|Gain or loss on foreign exchange ( "-"for loss)|||
|Ⅲ .Operating profits（“－”for loss）|175,899,805.71|249,447,426.94|
|Add: Non-operating income|5,213,457.94|461,705.12|
|Including:Gains on disposal of non-current assets|||
|Less: Non-operating expenses|100,577.40|78,815.15|
|Including: Loss on disposal of non-current assets|2,647.50|10,037.32|
|Ⅳ .Profit before tax（“－”for loss）|181,012,686.25|249,830,316.91|
|Less: Income tax expenses|46,284,687.48|63,426,291.44|
|Ⅴ .Net profit（“－”for loss）|134,727,998.77|186,404,025.47|
|Net profit attributable to owners of the Company|134,761,121.51|186,407,824.38|
|*Profit/loss attributable to minority shareholders|-33,122.74|-3,798.91|
|Ⅵ . After-tax net of other comprehensive incomes|-2,241,980.77|-19,916.59|
|After-tax net of other comprehensive incomes owned by owner ofthe parent company|-1,569,386.54|100,796.80|
|(I)Other comprehensive income items that will not bereclassified into gains/losses in the subsequent accounting period|||
|1.1.Re-measurement of defined benefit plans of changesin net debt or net assets|||
|2Other comprehensive income under the equity methodinvestor can not be reclassified into profit or loss.|||
|（Ⅱ）Other comprehensive income that will be reclassified intoprofit or loss.|-1,569,386.54|100,796.80|
|1.Other comprehensive income under the equity methodinvestor can be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value availablefor sale financial assets|||
|3.3.Held-to-maturity investments reclassified to gainsand losses of available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|-1,569,386.54|100,796.80|
|6.Other|||
|7.Net of profit of other comprehensive income attributableto Minority shareholders’ equity|-672,594.23|-120,713.39|
|VII. Total comprehensive income|132,486,018.00|186,384,108.88|
|Total comprehensive income attributable to the owner of theparent company|133,191,734.97|186,508,621.18|
|Total comprehensive income attributable minority shareholders|-705,716.97|-124,512.30|
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.1332|0.1843|
|(II)Diluted earnings per share|0.1332|0.1843|

 The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0, last period the combined party realized RMB 0.
Legal representative: Zhou Jianguo Person in charge of accounting: Tang Xiaoping
Person in charge of accounting organ:Qiao Yanjun
4.Income Statement of the Parent Company
For the Period Jan-Jun, 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) Co., Ltd. Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the currentperiod|Amount for theprior period|
|Ⅰ. Total operating income|312,137,584.07|528,924,692.46|
|Including: Operating income|180,246,091.18|240,739,406.51|
|Business tax and surcharge|33,549,009.04|74,580,945.46|
|Selling expenses|2,389,189.40|7,752,938.18|
|Administrative expense|13,326,156.37|14,842,902.99|
|Financial expense|-10,461,577.56|4,376,058.31|
|Impairment losses of assets|-4,800,000.00|159,351.00|
|Add: Gain on fair-value changes（“-”forloss）|||
|Investment income（“-”for loss）|625,209.41|163,042,176.21|
|Including：Investment income fromassociates and joint ventures|-63,790.59|-129,692.73|
|Ⅱ.Operating profits （“ －”for loss ）|98,513,925.05|349,515,266.21|
|Add: Non-operating income|5,011,250.66|43,669.98|
|Including: Gains on disposal ofnon-current assets|||
|Less: Non-operating expenses|19,500.00|30,000.00|
|Including: Loss on disposal ofnon-current assets|||
|Ⅲ.Profit before tax （“ －”for loss ）|103,505,675.71|349,528,936.19|
|Less: Income tax expenses|25,727,865.80|46,757,390.29|
|Ⅳ. Net profit （“ －”for loss ）|77,777,809.91|302,771,545.90|
|V.Net of profit of other comprehensive income|||
|（I）Other comprehensive income items thatwill not be reclassified into gains/losses in thesubsequent accounting period|||
|1.Re-measurement of definedbenefit plans of changes in net debt or net assets|||
|2.Other comprehensive incomeunder the equity method investee can not bereclassified into profit or loss.|||
|（II） Other comprehensive income that willbe reclassified into profit or loss.|||
|1.Other comprehensive income underthe equity method investee can be reclassified intoprofit or loss.|||
|2.Gains and losses from changes infair value available for sale financial assets|||
|3.Held-to-maturity investmentsreclassified to gains and losses of available forsale financial assets|||
|4.The effective portion of cash flow|||

||||
|-|-|-|
|hedges and losses|||
|5.Translation differences in currencyfinancial statements|||
|6.Other|||
|VI. Total comprehensive income|77,777,809.91|302,771,545.90|
|VII. Earnings per share：|||
|（I）Basic earnings per share|0.0768|0.2993|
|(II)Diluted earnings per share|0.0768|0.2993|

5.Consolidated Cash Flow Statement
For the Period Jan-Jun, 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) Co., Ltd. Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Ⅰ. Cash Flow from OperatingActivities：|||
|Cash received from sales ofgoods or rendering of services|1,212,918,536.86|1,218,726,341.94|
|Refund of taxes and levies|||
|Cash received relating toother operating activities|44,769,823.54|42,960,988.66|
|Sub-total of Cash Inflows|1,257,688,360.40|1,261,687,330.60|
|Cash paid for goods andservices|564,049,988.12|516,009,709.17|
|Cash paid to and on behalf ofemployees|72,485,115.73|65,846,388.78|
|Cash paid on taxes and levies|157,912,370.17|161,674,127.90|
|Cash paid relating to otheroperating activities|37,072,905.62|62,270,160.80|
|Sub-total of Cash Outflows|831,520,379.64|805,800,386.65|
|Net Cash Flows from OperatingActivities|426,167,980.76|455,886,943.95|
|Ⅱ. Cash Flows from InvestingActivities:|||
|Cash received from return ofinvestments|||
|Cash received investingincome|689,000.00|350,000.00|
|Net cash received fromdisposal of fixed assets,intangible assets and other longassets|-2,100.00|1,250.00|
|Net cash flows from disposalsubsidiary and other operatingunite|||
|Other cash received relatingto investing activities|||
|Sub-total of Cash Inflows|686,900.00|351,250.00|
|Cash paid to acquire fixedassets, intangible assets and otherlong assets|707,167.34|1,323,285.99|
|Cash paid on investments|||
|Net cash paid on obtainsubsidiary and other operatingunite|||

||||
|-|-|-|
|Cash paid on other investingactivities|||
|Sub-total of Cash Outflows|707,167.34|1,323,285.99|
|Net Cash Flows from InvestingActivities|-20,267.34|-972,035.99|
|Ⅲ. Cash flow from FinancingActivities|||
|Cash received frominvestments|||
|Including: Cash receivedfrom investments by minorityinterests of subsidiaries|||
|Cash received fromborrowing|12,000,000.00|304,034,573.83|
|Cash received from issuingbonds|||
|Other cash received relatingto Financing activities||2,785,000.00|
|Sub-total of Cash Inflows|12,000,000.00|306,819,573.83|
|Cash repayments onborrowed amounts|96,321,590.52|435,169,815.38|
|Cash payments fordistribution of dividends or profits|15,142,677.89|30,048,950.25|
|Including: Dividends orprofit paid to minority interests ofsubsidiaries|||
|Cash payments on otherfinancing activities|||
|Sub-total of cash Outflows|111,464,268.41|465,218,765.63|
|Net cash flows from financingactivities|-99,464,268.41|-158,399,191.80|
|Ⅳ. Effect of foreign exchangerate on cash|247,567.55|-5,979.86|
|Ⅴ. Net increase in cash and cashequivalents|326,931,012.56|296,509,736.30|
|Add: cash equivalents at thebeginning of the period|1,169,756,306.36|670,119,849.03|
|Ⅵ. Cash equivalents at the end ofthe period|1,496,687,318.92|966,629,585.33|

6.Cash Flow Statement of the Parent Company
For the period Jan-Jun, 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) Co., Ltd. Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Ⅰ. Cash Flow from OperatingActivities：|||
|Cash received from sales ofgoods or rendering of services|397,674,177.93|604,452,678.51|
|Refund of taxes and levies|||
|Cash received relating toother operating activities|192,943,696.66|7,833,744.75|
|Sub-total of cash inflows|590,617,874.59|612,286,423.26|
|Cash paid for goods andservices|55,812,480.05|90,969,965.24|
|Cash paid to and on behalf of|17,319,567.98|13,980,926.01|

||||
|-|-|-|
|employees|||
|Cash paid on taxes and levies|80,736,138.65|80,813,643.06|
|Cash paid relating to otheroperating activities|95,666,930.78|17,662,196.35|
|Sub-total of Cash Outflows|249,535,117.46|203,426,730.66|
|Net Cash Flows from OperatingActivities|341,082,757.13|408,859,692.60|
|Ⅱ. Cash Flows from InvestingActivities:|||
|Cash received from return ofinvestments|||
|Cash received investingincome|689,000.00|350,000.00|
|Net cash retrieved fromdisposal of fixed assets, intangibleassets, and other long-term assets|||
|Net cash received fromdisposal of subsidiaries or otheroperational units|||
|Other investment-relatedcash received||7,270,611.12|
|Sub-total of cash inflow due toinvestment activities|689,000.00|7,620,611.12|
|Cash paid for construction offixed assets, intangible assets andother long-term assets|21,395.00|11,050.00|
|Cash paid as investment||7,500,000.00|
|Net cash received fromsubsidiaries and other operationalunits|||
|Other cash paid forinvestment activities|||
|Sub-total of cash outflows|21,395.00|7,511,050.00|
|Net Cash Flows from InvestingActivities|667,605.00|109,561.12|
|Ⅲ. Cash flow from FinancingActivities|||
|Cash received frominvestments|||
|Cash received fromborrowing||200,000,000.00|
|Cash received from issuingbonds|||
|Cash received from otherfinancing activities|||
|Sub-total of cash inflows||200,000,000.00|
|Cash repayments onborrowed amounts|81,321,590.52|217,018,135.71|
|Cash payments fordistribution of dividends or profits|14,396,606.42|21,627,377.85|
|Cash payments on otherfinancing activities|||
|Sub-total of cash Outflows|95,718,196.94|238,645,513.56|
|Net cash flows from financingactivities|-95,718,196.94|-38,645,513.56|
|Ⅳ. Effect of foreign exchangerate on cash|14,432.03|6.83|

||||
|-|-|-|
|Ⅴ.Net increase in cash and cashequivalents|246,046,597.22|370,323,746.99|
|Add: cash equivalents at thebeginning of the period|852,492,165.42|326,170,340.34|
|Ⅵ. Cash equivalents at the end ofthe period|1,098,538,762.64|696,494,087.33|

7、Consolidated Statement on Change inOwners’ Equity
For the period Jan-Jun, 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE & PROPERTIES (GROUP) Co., Ltd. Currency: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in this period|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||Minorshareholders’equity|Total ofowners’equity|
||ShareCapital|Other Equityinstrument|||Capitalreserves|Less:Treasuryshares|OtherComprehensiveIncome|Specializedreserve|Surplusreserves|Specialreserves|Undistributedprofit|||
|||preferredstock|Sustainabledebt|Other||||||||||
|I.Balance at theend of last year|1,011,660,000.00||||978,244,910.11||10,063,591.61||40,823,841.35||290,911,773.00|-128,256,319.64|2,203,447,796.43|
|Add: Changeof accountingpolicy||||||||||||||
|Correcting ofprevious errors||||||||||||||
|Merger ofentities undercommoncontrol||||||||||||||
|Other||||||||||||||
|II.Balance at thebeginning ofcurrent year|1,011,660,000.00||||978,244,910.11||10,063,591.61||40,823,841.35||290,911,773.00|-128,256,319.64|2,203,447,796.43|
|III.Changed inthe current year|||||||-1,569,386.54||||134,761,121.51|-705,716.97|132,486,018.00|
|（1）Totalcomprehensiveincome|||||||-1,569,386.54||||134,761,121.51|-705,716.97|132,486,018.00|
|（II）Investment ordecreasing ofcapital byowners||||||||||||||
|1．OrdinaryShares investedby hareholders||||||||||||||
|2．Holders ofother equityinstrumentsinvested capital||||||||||||||
|3．Amount of||||||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|shares paid andaccounted asowners’ equity||||||||
|4．Other||||||||
|（III）Profitallotment||||||||
|1.Providing ofsurplus reserves||||||||
|2.Providing ofcommon riskprovisions||||||||
|3．Allotment tothe owners (orshareholders)||||||||
|4．Other||||||||
|(IV) Internaltransferring ofowners’ equity||||||||
|1. Capitalizingof capitalreserves (or tocapital shares)||||||||
|2. Capitalizingof surplusreserves (or tocapital shares)||||||||
|3．Making uplosses bysurplusreserves.||||||||
|4. Other||||||||
|(V). Specialreserves||||||||
|1. Provided thisyear||||||||
|2．Used thisterm||||||||
|（VI）Other||||||||
|IV. Balance atthe end of thisterm|1,011,660,000.00|978,244,910.11|8,494,205.07|40,823,841.35|425,672,894.51|-128,962,036.61|2,335,933,814.43|

Amount in last year Currency: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in last year|||||||||||||
||Owner‟s equity Attributable to the Parent Company|||||||||||Minorshareholders‟equity|Total ofowners’equity|
||ShareCapital|Other Equityinstruments|||Capitalreserves|Less:Treasuryshares|OtherComprehensiveIncome|Specializedreserve|Surplusreserves|Specialreserves|Undistributedprofit|||
|||preferredstock|Sustainabledebt|Other||||||||||
|I.Balance at theend of last year|1,011,660,000.00||||978,244,910.11||9,510,918.16||4,974,391.15||157,147,182.36|-128,432,405.63|2,033,104,996.15|
|Add: Changeof accounting||||||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|policy||||||||
|Correcting ofprevious errors||||||||
|Merger ofentities undercommoncontrol||||||||
|Other||||||||
|II.Balance atthe beginning ofcurrent year|1,011,660,000.00|978,244,910.11|9,510,918.16|4,974,391.15|157,147,182.36|-128,432,405.63|2,033,104,996.15|
|III.Changed inthe current year|||100,796.80|37,200,223.52|149,207,600.86|-124,512.30|186,384,108.88|
|（1）Totalcomprehensiveincome|||100,796.80||186,407,824.38|-124,512.30|186,384,108.88|
|（II）Investment ordecreasing ofcapital byowners||||||||
|1．OrdinaryShares investedby hareholders||||||||
|2．Holders ofother equityinstrumentsinvested capital||||||||
|3．Amount ofshares paid andaccounted asowners’ equity||||||||
|4．Other||||||||
|（III）Profitallotment||||37,200,223.52|-37,200,223.52|||
|1.Providing ofsurplus reserves||||37,200,223.52|-37,200,223.52|||
|2.Providing ofcommon riskprovisions||||||||
|3．Allotment tothe owners (orshareholders)||||||||
|4．Other||||||||
|(IV) Internaltransferring ofowners’ equity||||||||
|1. Capitalizingof capitalreserves (or tocapital shares)||||||||
|2. Capitalizingof surplus||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|reserves (or tocapital shares)||||||||
|3．Making uplosses bysurplusreserves.||||||||
|4. Other||||||||
|(V). Specialreserves||||||||
|1. Provided thisyear||||||||
|2．Used thisterm||||||||
|（VI）Other||||||||
|IV. Balance atthe end of thisterm|1,011,660,000.00|978,244,910.11|9,611,714.96|42,174,614.67|306,354,783.22|-128,556,917.93|2,219,489,105.03|

8、Statement of change inowner’s Equity of the Parent Company
For the period Jan-Jun, 2016
Prepared by：SHENZHEN SPECIAL ECONOMIC ZONE REAL ESTATE& PROPERTIES (GROUP) Co., Ltd. Currency: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in this period|||||||||||
||ShareCapital|Other Equityinstrument|||Capitalreserves|Less:Treasuryshares|OtherComprehensiveIncome|Specialreserves|Surplusreserves|Undistributedprofit|Total ofowners’equity|
|||preferredstock|Sustainabledebt|Other||||||||
|I.Balance at theend of last year|1,011,660,000.00||||978,244,910.11||||17,694,227.94|119,296,596.91|2,126,895,734.96|
|Add:Change ofaccountingpolicy||||||||||||
|Correcting ofprevious errors||||||||||||
|Other||||||||||||
|II.Balance at thebeginning ofcurrent year|1,011,660,000.00||||978,244,910.11||||17,694,227.94|119,296,596.91|2,126,895,734.96|
|III.Changed inthe current year||||||||||77,777,809.91|77,777,809.91|
|（I）Totalcomprehensiveincome||||||||||77,777,809.91|77,777,809.91|
|(II) Investmentor decreasing ofcapital byowners||||||||||||
|1．OrdinaryShares investedby shareholders||||||||||||

|||||||
|-|-|-|-|-|-|
|2．Holders ofother equityinstrumentsinvested capital||||||
|3.Amount ofshares paid andaccounted asowners’ equity||||||
|4．Other||||||
|（III）Profitallotment||||||
|1.Providing ofsurplus reserves||||||
|2．Allotment tothe owners (orshareholders)||||||
|3．Other||||||
|(IV)Internaltransferring ofowners’ equity||||||
|1. Capitalizingof capitalreserves (or tocapital shares)||||||
|2. Capitalizingof surplusreserves (or tocapital shares)||||||
|3．Making uplosses bysurplusreserves.||||||
|4. Other||||||
|(V) Specialreserves||||||
|1. Provided thisyear||||||
|2．Used thisterm||||||
|（VI）Other||||||
|IV. Balance atthe end of thisterm|1,011,660,000.00|978,244,910.11|17,694,227.94|197,074,406.82|2,204,673,544.87|

 Amount in last year
Currency: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in last year|||||||||||
||ShareCapital|Other Equityinstrument|||Capitalreserves|Less:Treasuryshares|OtherComprehensiveIncome|Specialreserves|Surplusreserves|Undistributedprofit|Totalowners'equity|
|||preferredstock|Sustainabledebt|Other||||||||
|I.Balance at theend of last year|1,011,660,000.00||||978,244,910.11|||||-125,829,266.52|1,864,075,643.59|
|Add:Change ofaccounting||||||||||||

|||||||
|-|-|-|-|-|-|
|policy||||||
|Correcting ofprevious errors||||||
|Other||||||
|II.Balance at thebeginning ofcurrent year|1,011,660,000.00|978,244,910.11||-125,829,266.52|1,864,075,643.59|
|III.Changed inthe current year|||17,694,227.94|285,077,317.96|302,771,545.90|
|（I）Totalcomprehensiveincome||||302,771,545.90|302,771,545.90|
|(II) Investmentor decreasing ofcapital byowners||||||
|1．OrdinaryShares investedbys1hareholders||||||
|2．Holders ofother equityinstrumentsinvested capital||||||
|3.Amount ofshares paid andaccounted asowners’ equity||||||
|4．Other||||||
|（III）Profitallotment|||17,694,227.94|-17,694,227.94||
|1.Providing ofsurplus reserves|||17,694,227.94|-17,694,227.94||
|2．Allotment tothe owners (orshareholders)||||||
|3．Other||||||
|(IV)Internaltransferring ofowners’ equity||||||
|1. Capitalizingof capitalreserves (or tocapital shares)||||||
|2. Capitalizingof surplusreserves (or tocapital shares)||||||
|3．Making uplosses bysurplusreserves.||||||
|4. Other||||||
|(V) Special||||||

|||||||
|-|-|-|-|-|-|
|reserves||||||
|1. Provided thisyear||||||
|2．Used thisterm||||||
|（VI）Other||||||
|IV. Balance atthe end of thisterm|1,011,660,000.00|978,244,910.11|17,694,227.94|159,248,051.44|2,166,847,189.49|

 III.General information of theCompany：
Shenzhen Special Economic Zone Real Estate and Properties (Group) Co., Ltd. (the “Group” or “the Company”) was established in July 1993, as approved by the Shenzhen Municipal Government with document SFBF (1993) 724. The Company issued A shares on 15th September, 1993 and issued B shares on 10 January 1994. On 31 August 1994, B shares issued were listed in New York Exchange market as class A recommendation. The total share capital are 1,011,660,000 shares, of which, A shares are 891,660,000 shares, and the B shares are 120, 000,000 shares. The company business license registration number is 440301103225878, and the registered capital is RMB 1,011,660,000.00.
On 13 October2004，according to the document No.(2004) 223 “Decision on establishing Shenzhen investment Holding Co., Ltd.” issued by State-Owned Assets Supervision and Administration Commission of Shenzhen Municipal Government, former major shareholder– Shenzhen Construction Investment Holding Company with two other assets management companies merged to form the Shenzhen Investment Holding Co., Ltd. By the State-owned Assets Supervision and Administration Commission of the state council，and quasi-exempt obligations tender offer as approved by China Security Regulatory Committee with document No.(2005)116, this issue of consolidated has been authorized and the registration changing had been done on 15 February 2006. As at the end of the reporting period, Shenzhen Investment Holding Limited holds 642,884,262 shares of the Company(63.55% of the total share capital). The shares are all selling unrestricted shares.
Business scope: mainly engaged in real estate development and sales, property leasing and management, retail merchandising and trade, hotel, equipment installation and maintenance, construction, interior decoration and so on.
The main products or services provided: commodity housing, property leasing and management, hotel service, construction and installation service, renovation service.
The parent of the Company is Shenzhen Investment Holdings Co., Ltd.
The Financial statement published on Aug 27th, 2016, which approved byGroup’s Board of Directors.
IV.The Basis of Preparation of Financial Statements
1.Basis for the preparation
The financial statements of the Group have been prepared on the basis of going concern in conformity with the Chinese Accounting Standards for Business Enterprises–The basic standards(Issued by order No.33 of the Ministry of Finance, Revised by order No.76 of the Ministry of Finance), the 41 specified Accounting Standards for Business Enterprise issued and revised by the Ministry of Finance of People’s Republic of China on 15 February, 2006 and thereafter, the guidance for the application of the Accounting Standards for Business Enterprise, the explanation for the Accounting Standards for Business Enterprise and other relevant regulations( thereafter referred as “Accounting Standards for Business Enterprises ”) and Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15—General Provisions on Financial Reports (2014 Revision) issued by the China Securities Regulatory Commission (CSRC).
According to the relevant accounting regulations of Chinese Accounting Standards for Business Enterprises, the Group has adopted the accrual basis of accounting. The Group adopts the historical cost as the principle of measurement in the financial statements except some financial instruments. Provision will be made if any assets impair in accordance with relevant requirements.
The Company state: the financial statements prepared are in accordance with the requirements in enterprise accounting
standards in accordance with of system, and have truly and fully reflected of the financial status in June 30, 2016 , operational
results, cash flow, and other relevant information for half year of2016.Besides，The financial statement prepared has compliance
with Companies Offering Securities to the Public No.15—General Provisions on Financial Reports (2014 Revision) issued by
the China Securities Regulatory Commission (CSRC) in all material aspect
2.Going-concern
There do not exist any significant suspicious events and conditions to theGroup’s ability to operate as going concern within 12 months since the report date.
V. Important Accounting Principles and Accounting Estimates
The Group and its subsidiaries are engaged in the business of real estate development. The Group and its subsidiaries have established several specified accounting policies and accounting estimations for its transactions and events, such as the revenue recognition, according to the Group’s and its subsidiaries’ actual operating characters and relevant requirements of Accounting Standards for Business Enterprises. Please refer to note 5.24- Revenue for details.。For the significant accounting judgments and estimates made by the management, please refer to note 5.30- Significant accounting judgments and estimates. 1. Statement on complying with corporate accounting standards
The Group and its subsidiaries are engaged in the business of real estate development. The Group and its subsidiaries have established several specified accounting policies and accounting estimations for its transactions and events, such as the revenue recognition, according to the Group’s and its subsidiaries’ actual operating characters and relevant requirements of Accounting Standards for Business Enterprises. Please refer to note5.28- Revenue for details.。For the significant accounting judgments and estimates made by the management, please refer to note 5.33- Significant accounting judgments and estimates. 2.Accounting year
The accounting period of the Group is classified as interim period and annual period. Interim period refers to the reporting period shorter than a complete annual period. The accounting period of the Group is the calendar year from January 1 to December 31.
3.Operating cycle
The normal operating cycle refers to period from Group’s buying assets for manufacturing to realizing the cash or cash equivalent .The Group chooses 12 months as an operating cycle. The assets and liabilities are classified as current and non-current according to the operating cycle standards.
4.Recording currency
Renminbi (RMB) is the currency of the primary economic environment in either Group& its domestic subsidiaries or foreign subsidiary in HK. Therefore, the Group, the domestic subsidiaries and foreign subsidiary in HK choose RMB as their functional currency. While theGroup’s foreign subsidiary in U.S.A. chooses USD dollar as its functional currency on the basis of the primary economic environment it operates. The Group adopts RMB to prepare its functional statements.
5.Accounting treatment methods of the acquisition of enterprises under Common/Non-common control
A business combination is a transaction or event that brings together two or more separate entities into one reporting entity. Business combinations involve enterprises under common control and non-common control.
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
For a business combination involving enterprises under common control, the party that, on the combination date, obtains control of another enterprise participating in the combination is the absorbing party, while that other enterprise participating in the combination is a party being absorbed. Combination date is the date on which the absorbing party effectively obtains control of the party being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being absorbed at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to the capital premium (or share premium) in the capital reserve. If the balance of the capital premium (or share premium) is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party, including any costs directly attributable to the combination, shall be recognized as an expense through profit or loss for the current period when incurred.
(2) Business combination involving entities under non common control
A business combination involving enterprises under non common control happens if the combining enterprises are not ultimately controlled by the same party or parties both before and after the business combination.
For a business combination not involving enterprises under common control, the party that, on the acquisition date, obtains control of another enterprise participating in the combination is the acquirer, while the other enterprise participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains control of the acquiree. For a business combination not involving enterprise under common control, the combination cost including the sum of fair value, on the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer. The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services etc. and other associated administrative expenses attributable to the business combination are recognized in profit or loss when they are incurred.
The transaction cost arose from issuing of equity securities or liability securities should be initially recognized as cost of equity securities or liability securities.
The contingent consideration related to the combination shall be booked as combination cost at the fair value on the acquisition date. If, within the 12 months after acquisition, new or additional information can prove the existence of related information on acquisition date and the contingent consideration need to be adjusted by relatively adjusting the combination goodwill. Acquirer‘s combination cost and the obtained identifiable net assets are measured with the fair value on the acquisition date. The excess of the combination cost over the fair value of identifiable net assets on the acquisition date is recorded as goodwill. When the fair value of identifiable assets exceeds the combination cost , first of all, the fair value of items of obtainedacquiree’s identifiable assets, liabilities or contingent liabilities and combination cost need to be reassessed. And then, when the combination cost is still less than the fair value of identifiable net assets on the acquisition date after reassess, the difference should be recorded in the currentyear’s profit and loss.
The deductible temporary differences obtained from the acquiree which cannot be recognized as deferred tax assets ,on the acquisition date, because some conditions are not met. Within 12 months after the acquisition ,if new or additional information indicate that the relevant information exist on the acquisition date and the economic benefits related with the deductible temporary difference can be realized, the deferred tax assets should be recognized. The goodwill should be reduced and if the goodwill is less than the deferred tax assets recognized, the rest part should be recorded in the current year profit and loss. For a business combination achieved in stages that involves multiple exchange transactions, according to the “No.5 Inform of Printing and Distributing the Explanation of Accounting Standards issued by the Finance of Ministry (Caikuai[2012] No.19)” and Article 51of “Chinese Accounting Standards for Business Enterprises No.33- Consolidated financial statement”, relating with the judgment standards of package deal( refer to note 4.5(2)), a judgment about whether it is package deal or not should be made. If it is package deal, please refer to the note 4.13 - Long-term equity investment for accounting treatment; if it is not package deal, distinguish them as individual financial statement and consolidated financial statement for accounting treatment. For the individual financial statements, the book value of the long-term equity investment held before the acquisition date plus the newly added equity investment on the acquisition date, and then sum should be recorded as the original investment cost; the long-term equity investment involved with other comprehensive income held before the acquisition date, the way to deal with the investment will be the same with the way the acquiree directly dispose the related assets and liabilities (i.e., under the equity method, beside the portion caused by theacquiree’s recalculated defined benefit plan’s net assets and net liabilities, the rest are transferred into investment income).
For the consolidated financial statements, for the shares in acquiree held before the acquisition date, the shares are recalculated according to the fair value on the acquisition date. The difference between the fair value and book value should be recorded in the current year investment income; For the shares in the acquiree held before the acquisition date involving other comprehensive income. The way to deal with the other comprehensive income should be the same with the way the acquiree directly dispose the relevant assets and liabilities(i.e., under the equity method, beside the portion of changes caused by theacquiree’s recalculated defined benefit plan’s net assets and net liabilities, the rest are transferred into investment income ). 6.The method of preparation of consolidated financial statements
(1)The standards of determining the scope of consolidation
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control is the power to govern the financial and operating policies of
an enterprise so as to obtain benefits from its operating activities. The scope of consolidation includes the Group and all of the subsidiaries. Subsidiary is an enterprise or entity under the control of the Group.
Once the changes of relevant facts and conditions result in the factors involving with the above definition of the control, the Group will proceed to reassess.
(2)The method of preparing the consolidated financial statements
The subsidiary of the Group is included in the consolidated financial statements from the date when the control over the net assets and business decisions of the subsidiary is effectively obtained, and excluded from the date when the control ceases.
For a subsidiary being disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. For a subsidiary disposed during the period, no adjustment is made to the opening balance of the consolidated financial statements. For a subsidiary acquired through a business combination not under common control, the operating results and cash flows from the acquisition date (the date when the control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate; no adjustment is made to the opening balance and comparative figures in the consolidated financial statements.
Where a subsidiary was acquired during the reporting period, through a business combination involving enterprises under common control, the financial statements of the subsidiary are included in the consolidated financial statements. The results of operations and its cash flow are appropriately included in the consolidated balance sheet and the consolidated income statement, respectively, from the beginning of the year to the date of acquisition and the comparative figures of the consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the Group, the Group makes necessary adjustments to the financial statements of the subsidiary based on the Group ’s accounting period or accounting policies. For the subsidiaries acquired through combination involving enterprises under non common control, the financial statements should be adjusted based on the fair value of the indentified net assets on the acquisition date.
Intra-group balances and transactions, and any unrealized profit or loss arising from intra-group transactions, are eliminated when preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Group are presented separately in the consolidated balance sheet withinshareholders’/owners’ equity. Net profit or loss attributable to minority shareholders in the subsidiaries is presented separately as minority interest in the consolidated income statement below the net profit line item. When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the minorityshareholders’ portion of the opening balance of[shareholders’][owners’] equity of the subsidiary, the excess is still allocated against the minority interests.
When the Group loses control of a subsidiary due to the disposal of a portion of an equity investment or other reasons, the remaining equity investment is re-measured at its fair value on the date when control is lost. The difference between 1) the total amount of consideration received from the transaction that resulted in the loss of control and the fair value of the remaining equity investment and 2) the carrying amounts of the interest in the formersubsidiary’s net assets immediately before the loss of the control is recognized as investment income for the current period when control is lost. The amount recognized in other comprehensive income in relation to the former subsidiary’s equity investment is reclassified as investment income for the current period when control is lost. The retained interest is subsequently measured according to the rules stipulated in the “Chinese Accounting Standards for Business Enterprises No.2—Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises No.22 —Determination and measurement of financial instruments ” (see note V.14-Long-term equity investment and V.10-Financial instruments).
TheGroup’s losing control of subsidiaries through multystep transactions of disposing of the long-term equity investment, need to identify whether every transaction, involving with disposing of the investment in subsidiary until losing the control, is belonging to package deal. Several transactions should be accounted for as a package deal if conditions and the economic impact of disposal of investments in subsidiaries are in compliance with one or more of the following circumstances:① These transactions are considered simultaneously or② these transactions as a whole in order to reach a complete business results; another case of the occurrence of the impact of entering into a transaction depends ③ had at least one other transaction;④ see a transaction alone is not economical, but, it is economical when other transactions are taken into account. If it is not package deal, every transaction of the non-package deals is treated according to the applicable accounting standards of “partly disposing of the long-term equity investment without losing control ”( refer to V.14(2)④ for detail) and “losing the control to subsidiary due to partly disposing the equity investment or other reasons ” (see the former paragraph for details). When every transaction involving with disposing of equity investment in subsidiary until losing control is a package deal, they will be treated as a single deal of disposing of the investment in subsidiary until losing control for accounting treatment. But, before the control are lost, the difference between each receipt of every transaction and the related shared proportion of identified net assets are recognized as other comprehensive income. The other comprehensive income will be transferred into profit and loss in the period when losing control.
7.Joint venture arrangementclassification& mutual office account treatment
Joint venture arrangement is referred to the arrangement that are under common control of two or more participating parties.
The Group classifies the joint venture arrangement into mutual office and joint venture, according to the rights shared and obligation undertaken in the joint venture arrangement. Mutual office represents the joint venture arrangement that the Group shares the assets related with arrangement and undertakes the obligations related with the arrangement. Joint venture is referred to the joint venture arrangement that the Group only have the right to the net assets of the arrangement.
The Group measures the joint venture investment using the equity method. Please refer to accounting policies listed on note V.14(2)②-long-term equity investment measured using the equity method.
As one party of the mutual office, the Group recognizes the separately owned assets and separately assumed obligations, and the proportionate commonly held assets and commonly assumed obligations per the company ’s percentage of share interest; recognize the revenue from the selling of the Group’s shared output of the mutual office; recognize the common revenue generated from the selling of the common output of the mutual office according to theGroup’s share percentage; recognize the expense separately incurred by the Group and the proportionate expense incurred by the mutual office according to theGroup’s share percentage.
When the Group sells invest or sell assets to the mutual office as one of the mutual office party( the assets do not constitute a business, the same to below), or buys assets from the mutual office, before the assets are sold to the third party, the Group only recognizes the portion of profit and loss attributable to the other participating parties. According to requirements of Chinese Accounting Standards for Business Enterprises No.8- Asset impairment, when the assets are impaired , for the assets invested or sold to the mutual office by the Group, the Group fully recognizes the impairment loss; for assets that the Group bought from the mutual office, the impairment loss is recognized according to the share percentage by the Group.
8.Recognition Standard of Cash and Cash Equivalents
Cash and cash equivalents of the Group include cash on hand, ready usable deposits and investments having short holding term (normally will be due within three months from the day of purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be measured reliably and have low risks of change.
9. Foreign exchange
(1) Translation in foreign exchange transactions
TheGroup’s initial recognition of the foreign currency transactions is recorded by the functional currency translated by the spot rate (commonly refer to the middle rate of the daily foreign currency rate publicly released by the People’s Bank of China)on the transaction date. But the Group’s foreign currency exchange and foreign currency exchange relevant transactions, is recorded by the functional currency translated by the exchange rate actually used.
(2)Translation method for foreign currency monetary items and non-monetary items.
On the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the balance sheet date. All the exchange differences thus resulted are taken into profit or loss, except for ①those relating to foreign currency borrowings specifically for construction and acquisition of qualifying assets, which are capitalized in accordance with the principle of capitalization of borrowing costs;②The exchange difference from changes of other account balance of foreign currency monetary items available-for-trade is recorded into profit or loss except for amortization cost.
When preparing the consolidated financial statements involving with oversea operation, the foreign currency difference caused by the foreign exchange rate changes should be recorded in other comprehensive income, if it substantially constitutes the monetary items related to net investment to the oversea operation. When the oversea operation are disposed, the other comprehensive income should be transferred into current year profit and loss.
Non-monetary foreign currency items measured at historical cost shall still be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functional currency is not changed. Non-monetary foreign currency items measured at fair value are translated at the spot exchange rate prevailing at the date when the fair values are determined. The exchange difference thus resulted are recognized in profit or loss for the current period or as other comprehensive income.(3) The translation of financial statement in foreign currency
When the consolidated financial statements include foreign operations, if there is a foreign currency monetary item constituting a net investment in a foreign operation, exchange difference arising from changes in exchange rates are recognized as “exchange differences arising on translation of financial statements denominated in foreign currencies” inowner’s equity, and in profit or loss for the period upon disposal of the foreign operation.
The Group translates the financial statements of its foreign operations into RMB by following rules;
1） Assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing on the balance sheet date; All equity items except for retained earnings are translated at the spot exchange rates at the date on which such items occur;2）Income and expenses in income statement are translated at the spot exchange rates at the date of transaction.
3）The opening undistributed profit is the closing undistributed profit of last period after translation of last year.4）The closing balance of undistributed profit is calculates and presented in the basis of each translated income statements and profit distribution item.
5）The difference between the assets and liabilities and shareholder’s equity shall be booked as translation difference of translating foreign currency financial statements, and shall be presented as other comprehensive income in the separate component of equity in the balance sheet.
6）When losing control overGroup’s oversea operation due to disposal, the translation difference of translating foreign currency financial statements related with the oversea operation which is separately presented under theshareholder’s equity section as accumulated other comprehensive income, should be fully or proportionately transferred into the current period profit and loss according to the disposal percentage.
7）Foreign currency cash flows and cash flow of oversea subsidiaries are translated at the spot exchange rates. The effect of exchange rate changes on cash is separately presented as an adjustment item in the cash flow statement.
8）The opening balance and actual figures of last year are displayed as the figures translated last year.
9）When disposing theGroup’s allshareholders’ equity of oversea operation or the Group losing control over the oversea operation due to partial disposal of the oversea equity investment or other reasons, the translation difference caused by the translating of foreign currency financial statement related with the oversea operation , which is presented under the equity section on the balance sheet and is attributable to the parentcompany’s shareholders, should be transferred to the current period profit and loss.
10)When the partial disposal of the equity investment of oversea operation and other reasons cause the share percentage of oversea operation to decrease without making the power of control to disappear, the translation difference of translation foreign currency financial statement related with the part of oversea operation disposed should be attributable to the minority interest and do not transfer to the current period profit and loss. When the oversea operation disposing is a jointly run business or joint venture, the translation difference of translating foreign currency financial statements should be transferred to the current period profit and loss according to the percentage of oversea operation disposal.
10.Financial instruments
When the Group becomes one party of the financial instrument contract, a financial asset or financial liability should be recognized. The initial measurement of the financial asset and financial liability is based on the fair value. For financial asset and financial liability measured at fair value and designated its changes into current period profit and loss, the related trading expense should be recorded in the profit and loss. For the financial asset and financial liability of other categories, the related trading expense should be recorded as part of initial cost.
(1) The method of determining the fair value of financial assets and financial liabilities
Fair value is the price that the market participators can get when selling an assets or need to pay when transferring an obligation incurred in an orderly transaction on the measurement date. When there is active market for the financial instruments, the quotation in the active market is used as the fair value. Quotation in the active market means the price that can be easily and periodically got from the exchange market,broker’s agency, Guild, pricing service organization etc. It represents the actually happened trading price in the fair trading. When there is no active market for the financial instruments, the fair value is determined by the valuation techniques. The valuation techniques include making a reference to the used price in recent market trading among the parties who know the situations and is willing to trade, making a reference to the current fair value that is used by the other substantially similar financial assets, discounting the future cash flow and option pricing model etc. (2) Classification of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On initial recognition, theGroup’s financial assets are classified into one of the four categories, including financial assets at fair value though profit or loss, held-to maturity investments, loans and receivables and available-for-sell financial assets.①Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or loss.
Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. The financial asset is acquired for the purpose of selling it in a short term;
B. The financial asset is a part of a portfolio of identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the enterprise recently manages this portfolio for the purpose of short-term profits; C. The financial asset is a derivative, except for a derivative that is designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a
quoted price from an active market) whose fair value cannot be reliably measured. For such kind of financial assets, fair values are adopted for subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it meets one of the following conditions:
A. The designation eliminates or significantly reduces the inconsistency in the measurement or recognition of relevant gains or losses that would otherwise arise from measuring the financial instruments on different bases.
B. A group of financial instruments is managed and its performance is evaluated on a fair value basis, and is reported to theenterprise’s key management personnel. Formal documentation regarding risk management or investment strategy has prepared . Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any gains or losses arising from changes in the fair value and any dividends or interest income earned on the financial assets are recognized in the profit or loss.② Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind of financial assets are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group shall estimate future cash flow considering all contractual terms of the financial asset or financial liability without considering future credit losses, and also consider all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
③Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are not quoted in an active market. Financial assets classified as loans and receivables by the Group include note receivables, account receivables, interest receivable dividends receivable and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss.
④ Financial assets available-for-sell
Financial assets available-for-sell include non-derivative financial assets that are designated on initial recognition as available for trade, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and dividends declared by the investee during the period in which the financial assets available-for-trade are held, are recognized in investment gains.
TheGroup’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediately recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the initial recognition amounts.
(3) Impairment of financial assets (not including account receivables
The Group assesses, at the balance sheet date, the carrying amount of every financial asset except for the financial assets that measured by the fair value. If there is objective evidence indicating a financial asset may be impaired, provision for impairment is recorded.
The Group makes an impairment test for a financial asset that is individually significant. For a financial asset that is not individually significant, it is included in a group of financial assets with similar credit risk characteristics and collectively assessed for impairment or individually assessed for impairment. If no objective evidence of impairment incurs for an individually assessed financial asset (whether the financial asset is individually significant or not individually significant), it is
included in a group of financial assets with similar credit risk characteristics and collectively assessed for impairment. Assets for which an impairment loss is individually recognized is not included in a group of financial assets with similar credit risk characteristics and collectively assessed for impairment.
① Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate the recovery of value of financial assets after impairment, and it is related with subsequent event after recognition of loss, the impairment loss recorded originally can be reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the amortized cost of the financial assets without provisions of impairment loss on the reserving date.
② Impairment loss on available-for-sell financial assets
When decision is made with all related factors on whether the fall of fair value investment of an equity instrument available-for-trade is significant or non-transient, it indicates impairment of such equity instrument investment, in which, Significant means over20% of fall in fair value and Non-transient means over 12 months of subsequent fall.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in fair value that had been recognized in capital reserve shall be removed and recognized in profit or loss. The amount of the cumulative loss that is removed shall be difference between the acquisition cost with deduction of recoverable amount less amortized cost, current fair value and any impairment loss on that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the financial asset is recovered, and it is objectively related to an event occurring after the impairment loss was recognized, the initial impairment loss can be reversed and the reserved impairment loss on available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on available-for-trade debt instrument is recorded in the current profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument shall not be reversed.
(4) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
① The rights to receive cash flows from the asset have expired;
② The enterprise has transferred its rights to receive cash flows from the asset to a third party under a “pass-through” arrangement; or
③ The enterprise has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence refers the level of risk by the financial asset changes the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a). the carrying amount of the financial asset transferred; and (b) the sum of the consideration received from the transfer and any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair value of those parts. The difference between (a) the carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss.
For the financial assets sold with recourse and the endorsed, the Group should make a judgment whether the risks and rewards related with the financial assets’ ownership have been almost all transferred. For the financial assets of which the risks and rewards related with its ownership have been, in substantial, all transferred, it should be derecognized. For the financial assets of which the risks and rewards have been, in substantial, all retained, it should be not be derecognized. For the financial assets, the related ownership of which have not been neither ,in substantial, all transferred nor retained, the Group need to make a judgment about whether the control over the financial assets have been kept or not and then deal with it according to the standards mentioned in the previous paragraphs.
(5) Classification of the financial liabilities and measurement
The financial liabilities are classified into financial liabilities measured at fair value with its changes into profit and loss and other financial liabilities. The initial measurement is made at its fair value. For the financial liabilities measured at fair value with its changes into profit and loss, the related trading expense are recorded into current period profit and loss; for other financial liabilities, the related trading expenses are recorded in its initial cost.
① Financial liabilities measured by the fair value and the changes recorded in profit or loss The classification by which financial liabilities held-for-trade and financial liabilities designated at the initial recognition to be measured by the fair value follows the same criteria as the classification by which financial assets held-for-trade and financial assets designated at the initial recognition to be measured by the fair value and their changes are recorded in the current profit or loss.
For the financial liabilities measured by the fair value and changes recorded in the profit or loss, fair values are adopted for subsequent measurement. All the gains or losses on the change of fair value and the expenses on dividends or interests related to these financial liabilities are recognized in profit or loss for the current period.
② Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price in an active market and their fair value cannot be measured reliably, is subsequently measured by cost. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for the current period.
③ Financial guarantee contracts
For financial guarantee contracts that are not designated as at fair value through profit or loss, or loan commitments not designated as at fair value through profit or loss but to offer at the interest rate lower than market level they are, after initial recognition, subsequently measured at the higher of: (i) the amount determined according to the principles of Accounting Standards for Business Enterprises No. 13 - Contingencies, and (ii) the amount initially recognized less the accumulated amortization determined according to the principles of Accounting Standards for Business Enterprises No. 14 - Revenue.（6）Derecognition of financial liability
The Group derecognizes a financial liability (or part of it) when the underlying present obligation (or part of it) is discharged or cancelled or has expired. An agreement between the Group (an existing borrower) and existing lender to replace original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new liability.
When the financial liabilities are fully and partially derecognized, the difference between the carrying value of the part derecognized and consideration paid ( including the non-current assets transferred out or new financial liabilities assumed ) should be recorded in the current period profit and loss.
11、Account receivable
（1）Provision for bad debts of account receivable that are individually significant
|||
|-|-|
|The judgment basis for significant single- item amountor standard for significant amount|The accounts receivable with single- item amount ofRMB 5 million and above|
|The method of separate provision for bad debts for theaccounts receivable with significant single-item amount|For an account receivable that is individuallysignificant, the asset is individually assessed forimpairment. If there is objective evidence indicatingthat the asset is impaired. The impairment loss isrecognized in th e profit and loss at the excess ofcarrying value over its predicted future cash flow(excluding the non- incurred future credit loss )discounted with original actual interest rate.|

（2）Provisions of bad debts for accounts receivables that is individually insignificant.
|||
|-|-|
|The reason for provision of bad debts individually|For the accounts receivables that is individuallyinsignificant, if there are signs indicating theimpairment, such as long-aging, having a dispute withthe obligator or obligator suffering serious financialdifficulties, it should be individually tested forimpairment.|
|Methods of provision for bad debts|Assessment of impairment losses individualy|

12.Inventories
（1）Classification of inventory
Inventory was classified according to real estate development and non-development of products. The real estate development products are the real estate developing products, real estate developed products and intended to develop products. The non-real estate development products include raw materials, finished products and stocks, low-value consumable products and construction in progress.
Real estate developed products means that have been completed and pending the sale of the property;The real estate developing products means that property has not been completed and the purpose of property is to sell.The intended to develop products means that the land has been bought and has has decided to develop for the sale or lease of property.The intended to develop products in the overall development of the project all transferred to the construction in process.Part of the phased development of the land transfer into the construction in process account and undeveloped land is still retained in the intended to develop products account,when the project is developed in stage.
（2）Valuation method of inventories upon delivery
Inventories are initially carried at the actual cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs. The actual cost of inventories transferred out is assigned by using weighted average method, and development products by specific identification method.
（3）Basis for determining net realizable value of inventories and provision methods for decline in value of inventories Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable value is determined on the basis of clear evidence obtained, and takes into consideration the purpose of holding inventories and effect of post balance sheet events. At the balance sheet date, inventories are measured at the lower of the cost and net realizable value. If the net realizable value is below the cost of inventories, a provision for decline in value of inventories is made. The provision for inventories decline in value is determined by the difference of the cost of individual item less its realizable value.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period.
(4) Inventory count system is based on the perpetual stock system.
(5) Amortization method for low cost and short-lived consumable items and packaging materials.
Low cost and short-lived consumable items are amortized using immediate write-off method; packaging materials are amortized using immediate write-off method.
（6）The costing method of constitute land development
Cost of land constitutes land development costs for pure land development project.Together with the overall development of the property, its cost is included in housing costs generally based on the actual area.
（7）Public Facilities Fee
The cost is the actual construction cost incurred. If several estate projects benefit from the same facility, they stay in the same category. The cost of fee should be measured according to the allocation of sales area. If they got benefit but in different categories, the cost was measured according to the allocation of the area covered.
（8）Utility reserve funds
Utility reserve funds were received by the Group and recorded in Long-term payables. The funds were used to maintain and renew communal facilities.
（9）Quality Guarantees
Quality Guarantees was put into the account of real estate developing according to the contract amount and also recorded in the accounts payable at the same time. The actual payment incurs after the expiry of guarantee.
13.Held-for-sale assets
The non-current assets which can be sold at its current conditions, the Group ’s disposal decision have been made, an un-revocable transferring agreement has been made and the transfer can be finished within one year, it should be recognized as held-for-sale non-current assets. The amortization or depreciation will be ceased since the day it is reclassified as held-for-sale assets. And it should be measured at the lower of carrying amount and its fair value less cost of disposal.
The held-for-sale non-current assets include the individual assets and asset group of disposal. If the asset group met the definition regulated in the Chinese Accounting Standards for Business Enterprises No.8–Asset impairment and it has been allocated with the goodwill gained through the enterprises combination according to the provision of the regulation, or the asset
group of disposal is a business of the asset group, the asset group should include the goodwill resulted from the enterprise combination.
The individual non-current assets classified as held-for-sale and assets within the asset group of disposal, should be represented individually in the current assets section of the balance sheet; The liabilities which belong to the disposal group of held-for-sale and is related with transferring the possession of assets, it should be individually represented in the current liability section of the balance sheet.
Some assets or assets group of disposal that have been classified as held-for-sale but the conditions are not met for being recognized as held-for-sale non-current assets thereafter. The assets should be stopped being classified as held-for-sale and should be measured at the lower of: (1) The book value of assets and asset group of disposal before they are classified as held-for-sale, being adjusted by the amortization, depreciation or impairment pretending that they were not initially classified as held-for-sale; and (2) the recoverable amount on the day when decide not to sell.
14.Long-term equity investments
The long-term equity investment mentioned in this section is about the equity investment of which the Group has control, common control or significant influences over the investee. For the investments that the Group has no control, common control or significant influences over the investee, they will be recorded as available-for-sale or financial instrument assets measured at fair value with its changes into profit and loss. Please refer to note 4.9-Financial instruments for detail.
Common control means the Group’s mutual control to the arrangement according to the related agreement and thearrangement’s activities related decisions can be made only after getting the mutual agreement from other parties sharing the control power. Significant influences represent that the Group has the right to participate in the decision of the financial and operating policies, but cannot control or control together with other parties to make the policy related decision.
(1) Determination of investment cost
For a business combination involving enterprises under common control, the initial investment cost of the long-term equity investment shall be carrying value of the absorbingparty’s share of theshareholder’s of the party being absorbed at the date of combination.
For a business combination not involving enterprise under common control, the combination cost including the sum of fair value, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer. The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services etc and other associated administrative expenses attributable to the business combination are recognized in profit or loss when they are incurred.
The transaction cost for the equity securities or liability securities issued by the acquirer in the business combination shall be recognized as initial amount of equity security or liability.
The equity investments other than the long-term equity through combination shall be initially measured by cost. The cost shall be recognized to the difference in the way of acquisition of long-term equity investment. Theses ways include the cash purchase price the Group actually paid, the fair value of equity security issued by the Group, value specified in the investment contract or agreement, the fair value or carrying value of the asset transferred out in the transaction of non-monetary asset exchanges, and the fair value of the long-term equity investment. Expenses, taxes and other necessary expenditures directly attributable to the acquisition of long-term equity investment are taken into investment cost. For the long-term equity investments that the Group can have significant influence or common control on the investee, but cannot control the investee, because of the added investments, the cost of the long-term equity investment should be the sum of original fair value of the investment and the cost of newly added investment.
(2) Subsequent measurement
Where an investing enterprise can exercise common control or significant influence over the investee, a long-term investment shall be accounted for using the equity method. Besides, the cost method shall be adopted in a long-term equity investment when the Group can exercise control over the investee.
① Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
② Equity method of accounting for long-term equity investments
Where the initial investment cost of a long-term equity investment exceeds the investingenterprise’s interest in the fair values
of theinvestee’s identifiable net assets at the time of acquisition, no adjustment shall be made to the initial investment cost. Where the initial investment cost of a long-term equity investment is less than the investing enterprise’s interest in the fair values ofinvestee’s identifiable net assets at the time of acquisition, the difference shall be charged to profit or loss for the current period, and the cost of the long-term equity investment shall adjusted accordingly.
Under the equitymethod，the Group recognizes its share of the net profit or loss and other comprehensive income of the investee for the period as investment income or loss and other comprehensive income for the period and adjusts the book value of the long-term equity investment simultaneously. The Group reduces the book value of the long-term equity investment, according to the shared profit or cash dividends declared by the investee. For the changes of investee’s equity beside the net profit, other comprehensive income and profit distribution, adjust the book value of the long-term equity investment and its capital surplus. When determining the share percentage of investee’s net profit, it should be made based on the fair value of investee ’s identifiable assets after adjusting theinvestee’s net profit on the acquisition date. When theinvestee’s accounting period and accounting policies are different with theGroup’s, thesubsidiary’s financial statements should be adjusted according to theGroup’s and recognize the investment income and other comprehensive income based on it. Unrealized profits or losses resulting from theGroup’s transactions with its associates and joint ventures are recognized as investment income or loss to the extent that those attributable to the Group’s equity interest are eliminated. However, unrealized losses resulting from theGroup’s transactions with its investees on the transferred assets, in accordance with "Accounting Standards for Enterprises No. 8 - Impairment of Assets", are not eliminated. When theGroup’s assets invested to joint venture and jointly run business are a deal and the Group obtains the long-term equity investment without getting the power of control, the initial cost of the investment is determined by fair value of the assets invested. The difference between the initial cost and the book value of the assets invested should be fully taken into profit and loss. When theGroup’s assets sold to joint venture and jointly run business are a deal, the differences between the consideration received and the book value are fully taken into the profit and loss. When theGroup’s buying assets from joint venture and jointly run business are a deal, the gain and loss would be fully recognized according to the Accounting Standards for Business Enterprises No.20 -Enterprises combination.
When the investee is recognized net losses, reduce the carrying value of long-term equity investments and long-term equity of net investment (in substance) in investee to zero. In addition, the Group has the obligations on additional losses, then the expected obligation as estimated liabilities and included in the current investment losses. Where the net profit from investee units, restoration confirm the amount of revenue sharing after offset the amount of unrecognized loss sharing.
For long-term equity investments in associates and joint ventures which had been held by the Group before its first time adoption of Accounting Standards for Business Enterprises, where the initial investment cost of a long-term equity investment exceeds theGroup’s interest in theinvestee’s net assets at the time of acquisition, the excess is amortized and is recognized in profit or loss on a straight line basis over the original remaining life.
③ Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against retained earnings.
④ Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control, the difference in the net asset between the amount of disposed long-term investment and the amount of the consideration paid or received is adjusted to theowner’s equity. If the disposal of long-term investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies in 6.(2 applies.
(3) Accounting policies retailed on “the method of preparing consolidated financial statements”
On disposal of a long-term equity investment, the difference between the proceeds actually received and receivable and the carrying amount is recognized in profit or loss for the period.
For long-term equity investment accounted for using the equity method, when the rest of the long-term equity investment is still accounted for using the equity method after disposal, the other comprehensive income originally recorded into the equity should be dealt with by the same way as theinvestee’s directly dealing with its assets or liabilities. The other investee equity changes caused beside the net profit, other comprehensive income and profit distribution should be proportionately transferred into current year profit and loss.
For long-term equity investment accounted for using the cost method, when the rest of the long-term equity investment is still accounted for using the cost method after disposal, other comprehensive income recognized using the equity method or the method of recognizing and measuring the financial instruments before obtaining the control over the investee should be dealt
with as the same way with investee’s direct disposing of its assets and liabilities and be proportionately taken into profit and loss; The other investee equity changes caused beside the net profit, other comprehensive income and profit distribution should be proportionately transferred into current year profit and loss.
When the Group loses control over the investee but still can exercise the common control or significant influences over the investee after partial disposal of the long-term equity investment, the equity method should be used to prepare individual financial statements. The rest equity investment is treated as accounted using the equity method upon the acquisition and is adjusted; If no control and significant influences cannot be exercised, the rest equity investments should be recognized and measured by the accounting standards to financial instruments. The difference between the fair value and book value is taken into current profit and loss.
For the other comprehensive income recognized under the equity method or the financial instrument related method before obtain the control over investee, it will be treated as the same way withinvestee’s directly disposing its assets or liabilities when losing the control over investee. The equity changes under equity method caused beside the net profit, other comprehensive income and profit distribution should be transferred into the profit and loss when losing the control over investee. Including, other comprehensive income and otherowner’s equity should be proportionately transferred, when the rest equity investment is accounted with equity method; Other comprehensive income and otherowner’s equity should be fully transferred, when the rest equity investment is accounted with accounting standards of financial instruments.
The Group loses the control and significant influences over the investee, because of disposing of part of long-term equity investment. The difference between fair value and book value on the day when losing the control and significant influences over the investee should be taken into profit and loss. Other comprehensive income recognized for the original equity investments under equity method, would be dealt with as the same way with investee’s directly disposing of its assets and liabilities when cease using the equity method. The equity changes caused beside the net profit, other comprehensive income and profit distribution, should be transferred into investment income when cease using the equity method.
For theGroup’s multiple-step dealing with its long-term equity investments until losing control, if the transactions are package deal, each transaction should be treated as a transaction dealing with its long-term equity investments until losing control, the difference between the consideration received and the book value of the equity investment should be firstly recognized as other comprehensive income before losing control over investee and then all transferred into current profit and loss.
15.Investment properties
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is property held to earn rental or for capital appreciation or both. It includes a land use right that is leased out, a land use right held for transfer upon capital appreciation, and a building that is leased out. Besides, the Group has buildings empty for operating lease. If there is a written decision from the Board (or similar organization) with clear indication for operating lease and intention that no change shall be made in the near future, the buildings shall be presented as investment properties.
An investment property is measured initially at cost. Subsequent expenditures incurred for such investment property are included in the cost of the investment property if it is probable that economic benefits associated with an investment property will flow to the Group and the subsequent expenditures can be measured reliably. Other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
The Group uses the cost method for subsequent measurement of investment property, and adopts a depreciation or amortization policy for the investment property which consistent with that for building or land use rights.
Where self-occupied property or inventory converts into investment property, or investment property converts into self-occupied property, the carrying amount before the change shall be accounted as the value after conversion.
When an investment property changes into self-occupied property, it should be converted into fixed asset or intangible asset on the date of conversion. When the purpose of a self-occupied property changes into rental earning or capital increase, fixed asset or intangible asset should be converted into an investment property from the date of conversion. Where the cost model is used in the measurement of investment property during the conversion, the carrying amount before the conversion is accounted as the value after conversion. Where the investment property is measured by the fair value after conversion, the fair value at the conversion date is adopted as value after conversion.
Where an investment property is disposed or no longer in use permanently and no economic benefits shall be obtained from the
disposal, derecognized the investment property. The income from sale, transfer or disposal of the investment property is recorded in the profit or loss after deduction of its carrying amount and related tax.
16.Fixed assets
(1) The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities, rendering labor service, renting or business management and their useful life is in excess of one fiscal year.
（2）Depreciation method
||||||
|-|-|-|-|-|
||||Estimated residual||
|Type|Detail|Estimated useful Life||Depreciation rate|
||||value rate||
|House and Building|Straight-line method|30|5%|3.17%|
|Production|||||
||Straight-line method|7|5%|13.57%|
|equipment|||||
|Transportation|||||
||Straight-line method|6|5%|15.83%|
|equipment|||||
|Electronic equipment|||||
||Straight-line method|5|5%|19%|
|and others|||||

Fixed assets are stated at cost and consider the impact of expected costs of abandoning the initial measurement. From the following month of state of intended use, depreciation method of the straight-line method is used for different categories of fixed assets to take depreciation. Expected net residual value of fixed assets is the balance of the Group currently obtained from the disposal of the asset less the estimated costs of disposal amount, assuming the asset is out of useful life and state the expected service life in the end.
1.Measurement and recognition of fixed assets impairment
The method of measurement and recognition of fixed assets impairment is detailed listed on the noteⅤ.22-Lon00-term assets impairment.
A fixed asset is recognized only when the economic benefits associated with the asset will probably flow to the Company and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the cost of the fixed asset, and the carrying amount of the component of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall be recognized in profit or loss in the period in which they are incurred. The revenue from selling or transferring, or disposing a fixed asset is booked into profit and loss after deduction of carrying value and related tax.
The Group conducts a review of useful life, expected net realizable value and depreciation methods of the fixed asset at least on an annual base. Any change is regarded as change in accounting estimates.
（3）Recognition and measurement of financial lease
Finance leases which transfer substantially all the risks and rewards of ownership. The depreciation policy for assets held under finance leases should be consistent with that for owned assets. If there is no reasonable certainty that the lessee will obtain ownership at the end of the lease– the asset should be depreciated over the shorter of the lease term or the life of the asset 17.Construction in progress
(1) The types of construction in progress
Construction in progress includes preparation before construction, construction engineering in progress, installation engineering in progress, technical improvement engineering, repair engineering etc. whose costs are determined by the actually incurred expenditures.
（2）The standards and time of transferring the construction in progress to fixed assets.
When the constructions in progress reach the condition of available for use, it should be transferred to the fixed assets per the full actually incurred costs.
（3）The method of testing the impairment and the provision for construction in progress
The method of measurement and recognition for construction in progress impairment is detailed listed on the note 5.22-Long-term assets impairment.
18.Borrowing costs
(1) The standards for capitalizing the borrowing cost
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in
connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings. The Company starts to capitalize the borrowing expenses in direct connection to purchase, construction or production of the assets that meet capitalization conditions when there are assets expenditures and borrowing expenses incurred and/or the Company starts all the necessary events to purchase, construct or produce such assets till the assets can be used and sold. Other borrowing cost are recognized as costs when incurred.
(2) The period of capitalizing the borrowing costs
The period of borrowing costs capitalization is calculated from the point when borrowing costs beginning capitalizing to the time stopping capitalizing. The period suspending capitalizing the borrowing costs are excluded.
(3) The period suspending capitalizing the borrowing costs
Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its intended use or sale, when the interruption is for a continuous period of more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the current period until the acquisition, construction or production is resumed.
(4) The method for calculating the amount of borrowing cost capitalized
Where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds.
Where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by applying a weighted average interest rate to the weighted average of the excess amounts of accumulated expenditure on the asset over and above the amounts of specific-purpose borrowings.
During the capitalization period, exchange differences related to a specific-purpose borrowing denominating in foreign currency are all capitalized. Exchange differences in connection with general-purpose borrowings are recognized in profit or loss in the period in which they are incurred.
19.Intangible assets
(1)Valuation method, service life and impairment test
(1) Recognition and calculation of intangible asset
The term“intangible asset”refers to the identifiable non-monetary assets without physical shape, possessed or controlled by enterprises.
The intangible assets are initially measured by its cost. Expenses related to intangible assets, if the economic benefits related to intangible assets are likely to flow into the enterprise and the cost of intangible assets can be measured reliably, shall be recorded as cost of intangible assets. The expenses other than this shall be booked in the profit or loss when they occur. Land use rights that are purchased by the Group are accounted for as intangible assets. Buildings, such as plants that are developed and constructed by the Group, and relevant land use rights and buildings, are accounted for as intangible assets and fixed assets, respectively. Payments for the land and buildings purchased are allocated between the land use rights and the buildings; if they cannot be reasonably allocated, all of the land use rights and buildings are accounted for as fixed assets. When an intangible asset with a definite useful life is available for use, its original cost less net residual value and any accumulate impairment losses is amortized over its estimated useful life using the straight-line method. An intangible asset with an indefinite useful life is not amortized.
For an intangible asset with a definite useful life, the Group reviews the useful life and amortization method at the end of the period, and makes adjustment when necessary.. An additional review is also carried out for useful life of the intangible assets with indefinite useful life. If there is evidence showing the foreseeable limit period of economic benefits generated to the enterprise by the intangible assets, then estimate its useful life and amortize according to the policy of intangible assets with definite useful life.
（2）The estimation of the useful life of the indefinite intangible assets
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|-|-|-|
|Item|Estimated useful life|Basement|
|Taxi license|38 years|The recorded years of taxi license|
|Software|5 years|Fixed assets, electronic and otherequipment useful lives|

(3) The basis to judgment intangible assets whose useful lives are uncertainty
The periods of which the intangible assets can bring benefits to the Group cannot be reasonably determined, the intangible assets
will be classified as indefinite intangible assets.
(4) Methods of impairment assessment and determining the provision for impairment losses of intangible assets The testing method for intangible assets impairment and the calculation of the provision for impairment is detailed listed on the note 5.22-Long-term assets impairment.
(5) The standards to distinguishing the research stage and development stage of internally developed intangible assets Research stage: the stage when the creative planned investigation and research activities are carried on, in order to obtain and understand the new sciences and technical knowledge;
Development stage: the stage of applying the research results and other knowledge to the specified plan or design so as to produce new or substantially improved materials , equipment and products before commercial production or use.（2）The accounting of expenditures of internally researched and developed project
Expenditure on the research phase of an internal research is recognized in profit& loss in the period in which it is incurred. Expenditure during the development phase that meets all of the following conditions at the same time is recognized as intangible asset. Expenditure during development phase that does not meet the following conditions is recognized in profit or loss for the period.
① it is technical feasible to complete the intangible asset so that it will be available for use or sale;
② the Group has the intention to complete the intangible asset and use or sell it;
③ the Group can demonstrate the ways in which the intangible asset will generate economic benefits including the evidence of the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset;
④ the availability of adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset;
⑤ he expenditure attributable to the intangible asset during its development phase can be reliably measured.
If the expenditures cannot be distinguished between the research phase and development phase, the Group recognizes all of them in profit or loss for the period.
20.Long-term assets impairment
On each balance sheet date, the Group will make judgments to determine whether there are signs for impairment to the fixed assets ,construction in progress, definite intangible assets, investmentproperties& equity investment insubsidiaries& jointventures& jointly run business measured using the cost method etc. non-current and non-financial assets. If there are signs for impairment, the impairment should be tested by estimating the recoverable amount. Goodwill, indefinite intangible assets and intangible assets having not reached the usable condition, should be yearly tested for impairment no matter whether there are signs for impairment.
The result of impairment test demonstrates that the recoverable amount is less than its carrying amount, the difference will be recorded as provision for impairment and debited as impairment loss. The recoverable amount equals to the greater of 1) fair value less disposal expenses and 2) present value of the predicted future cash flows.The fair value of the assets is determined by the sale contract price of fair trade; When there are no sale contracts but exist active market ,the fair value will be determined with the quotation from the buyer; When there exist neither sale contracts nor active market, the assets fair value will be determined by the best information available. The disposal expenses include the legal expenses, related taxes, delivery fees and other direct fees incurred for making the assets reach the salable condition. The present value of the predicted future cash flows is calculated according to the predicted future cash flows generated from the continuous use of the assets and final disposal discounted with the applicable discounted rate. The provision for impairment test should be recognized based on the individual asset. If it is hard to estimate the recoverable amount to individual asset, the recoverable amount of the assets group of which the individual assets are included should be determined. Assets group is the smallest unit that can independently generate the cash inflow.
For the goodwill separately displayed on the financial statement, when making the impairment test, the carry value of the goodwill should be allocated to assets group or the group of assets group predicted to be benefit from the synergistic effect from the enterprises combination. When the rest result shows that the recoverable of the assets group or the group of assets group having been allocated with the relevant goodwill is less than the carrying amount, the related impairment loss should be recognized. The impairment losses will firstly reduce the book value of the goodwill allocated and then reduce the book value of each asset of the assets group or the group of assets group according to the percentage of each asset to the assets group or the group of assets group beside the goodwill.
The impairment loss of the above assets would not be reversed back once they are recognized.
21.Long-term Prepaid Expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over the current and subsequent period (together of more than one year). Long-term prepaid expenses are amortized by using straight line method. 22.Employee Benefits
（1）Accounting methods for short-term benefits
The short-term benefits include the employees’ salary, bonus, allowance and compensation, employee welfare, medical insurance, maternity insurance, employment injury insurance, housing fund, labor union expense and employee education expense and non-currency welfare etc. The Group recognizes the actually incurred short-term employee benefits as liability during the period when theemployees’ services are rendered, the expenses are recorded into the current period profit and loss or related asset costs according to the benefit object. For the non-currency welfare, it is recognized according to its fair value.（2）Accounting methods for post-employment benefits
post-employment benefits mainly includes the defined contribution plan . The defined contribution plan mainly include the basic endowment insurance premium, unemployment insurance expense and pension etc..For the defined contribution plan, the sinking fund deposited to the an independent entity for the service provided by employee in the accounting period on the balance sheet is recognized as the debt and included in the current profit and loss or related asset costs according to the benefit object.
（3）Accounting methods for demission benefits
When the Group cannot unilaterally withdraw the dismissal benefits provided for the plan on the cancellation of labor relationship or layoff proposal, or recognize the cost or expense involved with the recombination of dismissal benefits or payment of such dismissal benefits (whichever is earlier), the employee ’s remuneration incurred by dismissal benefits is recognized as the debt and included in the current profits and losses or related assets cost. But when then dismissal is predicted not to be paid in the following 12 months after the report date, it would be classified as other long-term benefits. Employee internal retirement plan is treated as the same way with dismissal benefits mentioned above. The Group would record the relevant salaries and social insurances provided to the employees under the plan into the profits and losses (dismissal benefits) during the period from the day stopping providing the services to the legal retirement day, when the conditions for recognizing the contingency liability are met.
（4）Accounting methods for other long-term employee benefits
Other long-term benefits provided by the Group is referred to as the welfare beside the short-term benefits, post-employment benefits, demission benefits. It would be recognized as the requirements of defined contribution plan, when conditions are met. Or else, it would be recorded as defined benefit plan.
23. Accrued liabilities
Accrued liabilities is expected to be in the category of liabilities，The accrued liabilities should to be recognized if the condition of liability has been satisfied.The recognition and measurement of contingent liabilities usually refers to the recognition and measurement of liabilities.
（1）The recognition criteria of accrued liabilities
Accrued liabilities (or Provisions) are recognized when following obligations related to a contingency are satisfied simultaneously.：（1）such obligation is the present obligation of theGroup；（2）it is probable that an outflow of economic benefits will be required to settle theobligation；（3）the amount of the obligation can be measuredreliably.。
（2）The measurement method of accrued liabilities
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account factors pertaining to a contingency such as risks, uncertainties and time value of money.Where all or some of the expenditure required to settle a provision is expected to be reimbursed by a third party, the reimbursement is recognized as a separate asset only when it is virtually certain that reimbursement will be received, and the amount of reimbursement recognized does not exceed the carrying amount of the provision.
① Onerous contracts
An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The exceeding part over the assets in the contract shall be recognized as a provision when an executor contract becomes an onerous contract and the obligation arising under the onerous contract satisfies the requirements of provisions.
② Restructuring Obligation
The amount of a restructuring provision shall be recognized by the total direct expenditures arising from the restructuring when
the enterprise has a detailed, formal plan for the restructuring, and a public announcement of the plan has been made for restructuring and above requirements for the provision mentioned above are satisfied. (For the restructuring obligation carried for the portion of business for sale, the obligation related to the restructuring can only be recognized when the Group has committed for the sales of portion of the business (signing the selling agreement with termination)
24. Revenue
（1）Recognition time for sales of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the associated costs incurred or to be incurred can be measured reliably.
According to the principles above, the Group established real estate sales revenue is recognized, must satisfied the following four conditions at the same time:
A. Real estate is completed, and is completed checking and accepting;
B. Signed a contract of sale and make recording in land department
C. Installment, if it is deferred for receiving money with financing, the cost should be measured in present value according to the contract price. Mortgage, has been received, and have completed the first phase of the mortgage loan approval procedures; D. Agreed in the contract of sale and transfer the property to buyers.
（2） Recognition basis for revenue from alienation of assets use right
When the relevant economic benefits are likely to flow into the company and the amount of revenues can be measured in a reliable way,the revenue from alienation of assets use right may be recognized, if:
① Interest revenue: it is measured and confirmed in accordance with the length of time for which the company's cash is used by others and the actual interest rate;
② Revenue from property lease: it is measured by using straight line method within the effective release period according to the contract or agreement signed between the company with the lessee.
（3） Recognition basis and method of revenue from labor
In the case of the result of providing labour service that can be reliable estimate ,The labour service revenue is recognised based on percentage of completion method at balance sheet date.Contract or agreement entered into with other companies, including the sale of goods when providing services, the sale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the sale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales of goods and rendering of services can not be distinguished,or can be distinguished but can not be measured separately, should be part of the sale of goods and provision of services as part of the total sales of goods.
（4） The base and method is used to measure the completion progress of service contract
The measurement of completion progress is based on the proportion of the costs incurred to thetotal。
The reliable estimation of the results of labor deal means satisfying the following conditions: ：① The relevant amount of revenue can be measured in a reliableway；② The relevant economic benefits may flow into theenterprise；③ The schedule of completion under the transaction can be confirmed in a reliableway；④ The costs incurred or to be incurred in the transaction can be measured in a reliableway。
If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services is recognized in accordance with the amount of the cost of labor services incurred, and the cost of labor services shall be carried forward at the sameamount。 If the cost of labor services incurred is not expected to compensate, the cost incurred are included in the current profits and losses, and no revenue from the providing of labor services may berecognized。
25.Government Grants
（1） Accounting method and recognition basis for grant related to the assets
（1）Type
Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at no consideration, excluding the capital invested by the government as equity owner. Government grant can be classified as grant related to the assets and grants related to the income.
（2）Accounting policy
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a government grant is in the form of a non-monetary asset, it is measured at fair value. If the fair value cannot be reliably determined, it is measured at a nominal amount. A government grant measured at a nominal amount is recognized immediately in profit or loss for the period.
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset. For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent period, the grant is recognized as deferred income, and recognized in profit or loss over the periods in which the related costs are recognized. If the grant is a compensation for related expenses or losses already incurred, the grant is recognized immediately in profit or loss for the period.
For repayment of a government grant already recognized, if there is a related deferred income, the repayment is offset against the carrying amount of the deferred income, and any excess is recognized in profit or loss for the period. If there is no related deferred income, the repayment is recognized immediately in profit or loss for the period.
（2）Accounting method and recognition basis for grant related to the income
The government grants related to incomes shall be accounted into the current profit or loss if they are used to compensate for the correlative expenses or losses occurred, and shall be recognized as the deferred income and accounted into the current profit or loss during the expense confirmation period if they are used to compensate for the correlative expenses or losses occurred in the subsequent period. The government grants measured at the nominal amount shall be directly accounted into the current profit or loss.
26.Deferred income tax assets and deferred income tax liabilities
（1）Income tax for current period
The recognition on which current income tax liabilities (or asset)for the current and prior periods is based on the measurement of the amount of income tax payable(or return) in the calculation of the provisions of the tax law in balance sheet date.The income tax expense is recognized based on calculated result of adjusted income benefit before tax by provisions of tax law.（2）Deferred income tax assets and deferred income tax liabilities
For temporary differences between the carrying amount of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
For temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.Besides,For taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, no deferred income tax liability related is recognized except where the Group is able to control the timing of reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible loss)when it happens, the relevant deferred income tax liabilities shall not be recognized. 。 In addition, as for taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, if the Company could control the reverse time of such differences and such differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred income tax liabilities caused by taxable temporary differences.
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to deduct the deductible loss and tax reduction.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is likely to obtain sufficient taxable income.（3）Income tax expense
The income tax include current income tax and deffered income tax.
In addition to confirm other comprehensive income or directly recorded in the owner's equity transactions and events related to the current income tax and deferred income tax is recognized in other comprehensive income or the owner's rights and interests, the book value of deferred income tax adjustments for goodwill in business combination, the rest of the current the tax and deferred income tax expense or income is recognized in the profits and losses of the current period.
（4）Income tax offset
When the company have the legal right to net settlement , intent to acquire assets or net settlement,settle the liability
simultaneously，The way presentation is by means of offsetting current tax assets against current tax liabilities. When the company have the legal right to net settlement for current income tax assets and current income tax liabilities，And deferred tax assets and deferred tax liabilities are related to the same taxation authority on the same taxable income subject levied by or related to different taxable entities,But in each future period significant deferred tax assets and liabilities are reversed, the tax payer intends to offset current tax assets and liabilities or simultaneously acquire assets and settle liabilities,The group.The way presentation is by means of offsetting current tax assets against current tax liabilities.
27.Leases
（1）Accounting method of operating Lease
① The Group as Lessee under Operating Lease
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and either included in the cost of the related asset or charged to profit or loss for the current period. The contingent rents shall be recorded in the profit or loss of the period in which they actually arise.
② The Group as Leaser under Operating Lease
Lease income from operating leases shall be recognized by the leaser in profit or loss on a straight-line basis over the lease term. Initial direct cost of significance in amount shall be capitalized when incurred. If another basis is more systematic and rational, that basis may be used. Contingent rents are credited to profit or loss in the period in which they actually arise.
（2）Accounting method of financing Lease
① The Group as Lessee under Operating Lease
For an asset that is held under a finance lease, at the lease commencement, the leased asset is recorded at the lower of its fair value at the lease commencement and the present value of the minimum lease payments, and the minimum lease payment is recorded as the carrying amount of the long-term payables; the difference between the recorded amount of the leased asset and the recorded amount of the payable is accounted for as unrecognized finance charge, Initial direct costs incurred by the lessee during the process of negotiating and securing the lease agreement shall be added to the amount recognized for the leased asset. The net amount of minimum lease payment deducted by the unrecognized finance shall be separated into long-term liabilities and long-term liability within one year for presentation.
Unrecognized finance charge shall be computed by the effective interest method during the lease term. Contingent rent shall be booked into profit or loss when actually incurred.
② The Group as Leaser under Operating Lease
For an asset that is leased out under a finance lease, the aggregate of the minimum lease receipts at the inception of the lease and the initial direct costs is recorded as a finance lease receivable, and unguaranteed residual value is recorded at the same time; the difference between the aggregate of the minimum lease receipt, initial direct costs, and unguaranteed residual value, and the aggregate of their present values, is recognized as unearned finance income, which is amortized using the effective interest rate method over each period during the lease term.
Finance lease receivable less unearned finance income shall be separated into long-term liabilities and long-term liability within one year for presentation.
Unearned finance income shall be computed by the effective interest method during the lease term. Contingent rent shall be credited into profit or loss in which actually incurred.
28.Material accounting judgments and accounting estimations
Because of the inherent uncertainties of the operating activities, the Group need to make judgments, estimations and assumptions to the financial statement items whose carrying amount cannot be accurately measured. Those judgments, estimations and assumptions are made based on themanagement’s historical experience and taking other relevant factors into account. Those judgments, estimations and assumptions would influence the reported amount of revenue, expense, asset and liability and disclosure of the contingency liability on the balance sheet date. However, the actual result caused by the uncertainty of these estimations may be different with the present estimation made by the management, which may cause significant adjustments to the carrying amount of the influenced assets and liabilities in the future.
The Group are making periodical review on the judgments, estimations and assumptions mentioned above based on the premise of going concern. For the changes of estimations that only influence the current period, the influenced amount will be recognized in the current period. For the changes of estimations that not only influence the current period ,but also affect the future periods, the influenced amount will be recognized in the current period and future period.
As of the balance sheet date, the material areas that need to be judged ,estimated and assumed are listed below:（1）The classification of lease
The lease are classified into operating lease and finance lease, according to the “Accounting Standards for Business Enterprise No.21-Lease” .When making the classification, the management need to make analysis and judgment about whether all risk and reward related with the ownership of assets leased out have been substantially transferred to the lessee or not ,or whether all risk and reward related with the ownership of the assets leased have substantially assumed by the Group.
（2）The provision for allowance for bad debt
The Group applies the allowance method to estimate the bad debt, according to the policy of accounts receivable. The impairment of accounts receivable is based on the evaluation of accountsreceivable’s possibility of collection. The difference between the actual result and the original estimation would influence the accounts receivable’s carrying value and cause the balance of allowance for bad debt to increase or reverse back during the period when the estimation is changed.（3）Provision for inventory
According to inventory accounting policy, the ending inventory is measured by the lower of cost and net realizable value. When the cost is greater than the net realizable value and the obsolete and unsalable inventory, the inventory falling price reserve shall be withdrawn. Reduce the inventory to the net realizable value is based on the evaluation the salable of the inventory and its net realizable value. Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are made and take into consideration the purpose for which the inventory is held and the influences of events occurring after the balance sheet date. The difference between the actual result and original estimation will influence the carrying amount of the inventory and cause the provision for inventory to increase or reverse back during the period when the estimation is changed.（4）The fair value of financial instrument
For the financial instrument lacking active trading market, the Group will use several valuation methods to make sure the fair value. The methods include the model to analyze the discounted cash flow etc. The Group will evaluate the following aspects, such as the future cash flow, credit risk, market volatility and the relativity etc. and then choose the applicable discounted rate, when making the evaluation. There are uncertainties for the relevant assumptions whose changes will influence the fair value of financial instrument.
（5）Provision for non-financial and non-current assets
The Group will make judgment on the non-current assets beside the financial assets about whether there are signs for impairment on the balance sheet date. For the intangible assets whose life is uncertain, when there are signs for impairment, it should be tested for impairment, beside the yearly impairment test. Other non-current assets beside the financial statement, when there are signs indicating that the carrying value are unrecoverable, it should be tested for impairment.
When the carrying value of the asset or asset group is greater than the recoverable amount (i.e., the net value of fair value less the cost of disposal and present value of the predicted future cash flow whichever is higher), it indicates impairment. The net value of fair value less the cost of disposal, is referred to the agreed sale price of similar assets under fair trade or the observable market price, less the incremental cost directly related with the disposal of the assets.
The Group need to make significant judgment to the output of assets (or assets group), sale price, relevant operating cost and the discounted rate when estimating the present value of future cash flows. The Group will make use of any relevant material available when estimating the recoverable amount , including the prediction of the output, sale price and relevant operating cost according to reasonable and supportable assumptions.
The Group will test the goodwill for impairment at least once a year, which requires to estimate the present value of the future cash flows of the assets and assets group allocated with the goodwill . When estimating the present value to the future cash flow, the Group need to estimate the cash flows generating from the assets and assets group, and choose the applicable discount rate to determine the present value.
（6）Depreciation and amortization
The Group use the straight-line method to depreciate and amortize the investment real estate, fixed assets and intangible assets within the useful life after taking into the consideration of the residual value. By the way, the amount of depreciation and amortization during the report period are determined. The useful life is determined based on past experience and the predicted technical changes of similar assets. If there are significant changes of previous estimations, the depreciation and amortization would be adjusted in the future periods.
（7）Deferred tax asset
To the degree that there are sufficient taxable profit to make up the deductible losses, the Group will recognize the deferred tax assets for the un-used deductible losses. It requires the management to apply massive judgments to estimate the time and amount the taxable profits will generate in the future period combining with the strategic of tax planning to determine the amount of deferred tax asset.
（8）Income tax
There are some uncertainties for sometrades’ ultimate tax treatment and calculation. Some items need the determination from the tax authorities about whether they are deductible before tax or not. If the ultimate tax determination are different with the originally estimated amount, the difference will influence the current period income tax and the deferred income tax when the tax determination are finally made.
29.Changes in major accounting policies and accounting estimates
(1) Changes of accounting policies
There were no changes of main accounting policies during this period.
(2)Changes of accounting estimates
There were no changes of main accounting estimations during this period.
30.Material accounting judgments and accounting estimations
Because of the inherent uncertainties of the operating activities, the Group need to make judgments, estimations and assumptions to the financial statement items whose carrying amount cannot be accurately measured. Those judgments, estimations and assumptions are made based on themanagement’s historical experience and taking other relevant factors into account. Those judgments, estimations and assumptions would influence the reported amount of revenue, expense, asset and liability and disclosure of the contingency liability on the balance sheet date. However, the actual result caused by the uncertainty of these estimations may be different with the present estimation made by the management, which may cause significant adjustments to the carrying amount of the influenced assets and liabilities in the future.
The Group are making periodical review on the judgments, estimations and assumptions mentioned above based on the premise of going concern. For the changes of estimations that only influence the current period, the influenced amount will be recognized in the current period. For the changes of estimations that not only influence the current period ,but also affect the future periods, the influenced amount will be recognized in the current period and future period.
As of the balance sheet date, the material areas that need to be judged ,estimated and assumed are listed below:（1）The classification of lease
The lease are classified into operating lease and finance lease, according to the “Accounting Standards for Business Enterprise No.21-Lease” .When making the classification, the management need to make analysis and judgment about whether all risk and reward related with the ownership of assets leased out have been substantially transferred to the lessee or not ,or whether all risk and reward related with the ownership of the assets leased have substantially assumed by the Group.
（2）The provision for allowance for bad debt
The Group applies the allowance method to estimate the bad debt, according to the policy of accounts receivable. The impairment of accounts receivable is based on the evaluation of accountsreceivable’s possibility of collection. The difference between the actual result and the original estimation would influence the accounts receivable’s carrying value and cause the balance of allowance for bad debt to increase or reverse back during the period when the estimation is changed.（3）Provision for inventory
According to inventory accounting policy, the ending inventory is measured by the lower of cost and net realizable value. When the cost is greater than the net realizable value and the obsolete and unsalable inventory, the inventory falling price reserve shall be withdrawn. Reduce the inventory to the net realizable value is based on the evaluation the salable of the inventory and its net realizable value. Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are made and take into consideration the purpose for which the inventory is held and the influences of events occurring after the balance sheet date. The difference between the actual result and original estimation will influence the carrying amount of the inventory and cause the provision for inventory to increase or reverse back during the period when the estimation is changed.（4）The fair value of financial instrument
For the financial instrument lacking active trading market, the Group will use several valuation methods to make sure the fair value. The methods include the model to analyze the discounted cash flow etc. The Group will evaluate the following aspects, such as the future cash flow, credit risk, market volatility and the relativity etc. and then choose the applicable discounted rate, when making the evaluation. There are uncertainties for the relevant assumptions whose changes will influence the fair value of financial instrument.
（5）Provision for non-financial and non-current assets
The Group will make judgment on the non-current assets beside the financial assets about whether there are signs for impairment on the balance sheet date. For the intangible assets whose life is uncertain, when there are signs for impairment, it should be tested for impairment, beside the yearly impairment test. Other non-current assets beside the financial statement, when
there are signs indicating that the carrying value are unrecoverable, it should be tested for impairment.
When the carrying value of the asset or asset group is greater than the recoverable amount (i.e., the net value of fair value less the cost of disposal and present value of the predicted future cash flow whichever is higher), it indicates impairment. The net value of fair value less the cost of disposal, is referred to the agreed sale price of similar assets under fair trade or the observable market price, less the incremental cost directly related with the disposal of the assets.
The Group need to make significant judgment to the output of assets (or assets group), sale price, relevant operating cost and the discounted rate when estimating the present value of future cash flows. The Group will make use of any relevant material available when estimating the recoverable amount , including the prediction of the output, sale price and relevant operating cost according to reasonable and supportable assumptions.
The Group will test the goodwill for impairment at least once a year, which requires to estimate the present value of the future cash flows of the assets and assets group allocated with the goodwill . When estimating the present value to the future cash flow, the Group need to estimate the cash flows generating from the assets and assets group, and choose the applicable discount rate to determine the present value.
（6）Depreciation and amortization
The Group use the straight-line method to depreciate and amortize the investment real estate, fixed assets and intangible assets within the useful life after taking into the consideration of the residual value. By the way, the amount of depreciation and amortization during the report period are determined. The useful life is determined based on past experience and the predicted technical changes of similar assets. If there are significant changes of previous estimations, the depreciation and amortization would be adjusted in the future periods.
（7）Deferred tax asset
To the degree that there are sufficient taxable profit to make up the deductible losses, the Group will recognize the deferred tax assets for the un-used deductible losses. It requires the management to apply massive judgments to estimate the time and amount the taxable profits will generate in the future period combining with the strategic of tax planning to determine the amount of deferred tax asset.
（8）Income tax
There are some uncertainties for sometrades’ ultimate tax treatment and calculation. Some items need the determination from the tax authorities about whether they are deductible before tax or not. If the ultimate tax determination are different with the originally estimated amount, the difference will influence the current period income tax and the deferred income tax when the tax determination are finally made.
Ⅵ.Taxation
1.Taxes and their rates
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|-|-|-|
|Category|Taxable basis|Tax rate|
|Value added tax (“VAT”)|Goods sales income, taxi operatingincome|17%、3%|
|Business tax|Proceeds from sales of properties,leasing-income,property managementincome|5%，3%|
|Construction tax|Turnover tax|7%|
|Income tax|Income tax payable|25%|
|Income tax*|Income tax payable|16.5%|
|Education surcharge(LocalEducation surcharge)|Turnover tax|5%|
|Land appreciation tax|Sales revenue of properties|Progressive rates rangingfrom 30%-60%|

Note*：1、The rate of domestic enterprises is25%, and the rate of HK enterprises is16.5%.
2、Reffered as No.〔2016〕36’Notice of a comprehensive expansion of the pilot scope of business tax VAT ’，From
May,1,2016As a general taxpayer of the value-added tax, sales the Self development real estate project,application of the general
tax method tax rate of11%,Simple collection of the old project levy rate of5%,Real estate operating lease for general caculating
tax method taxrate11%,old project for simple collection method tax rate5%,Providing construction services for general
caculating method tax rate11%,old project for simple collection method tax rate3%,Business assistance services for general caculating method tax rate6%,Catering accommodation service for general caculating method tax rate6%.
Ⅶ.Notes to the Consolidated Financial Statements
1.Monetary funds
Currency: yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Cash on hand|48,194.52|54,487.37|
|Cash in bank|1,496,639,124.40|1,169,701,818.99|
|Other monetary funds|6,000,000.00|6,000,000.00|
|Total|1,502,687,318.92|1,175,756,306.36|
|Including amount deposited in theforeign countries|9,175,418.72|9,096,056.99|

Note:
As of Jun.30,2016, for the funds that theGroup’s ownership are restricted they are classified in Other monetary funds and RMB 6,000,000.00 deposited in the Company's rent escrow account for the Company's borrowings.
The closing balance of monetary fund is 1,502,687,318.92(Yuan).An increase of27.81% compared with opening balance.The main reason is due to increased sales floor section
2.Note receivables
(1)Note receivables by types
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Trade acceptance|18,153,767.30|18,663,872.02|
|Total|18,153,767.30|18,663,872.02|

(2)Note receivables pledged at year end
Note receibables pledged has not exist in closing balance.
(3)Note receivables endorsed or discounted at year end and not matured yet on the balance sheet date
Currency： yuan
||||
|-|-|-|
|Item|Amt. derecognized at year end|Amt. not derecognized at year end|
|Trade acceptance||18,153,767.30|
|Total||18,153,767.30|

Note:
As of Jun.30, 2016, the trade acceptance discounted but not matured is RMB 18,153,767.30, the balance of related pledged borrowing is18,153,767.30（referring to the note7.16)。When the trade acceptance cannot be honored when it is mature, the bank has the power to ask the Group to repay the amount un-settled. The Group continues to recognize the carrying amount of the trade acceptance and records the amount received as pledged borrowing because of the transfer, due to the Group’s still undertaking the main risk, such as credit risk relating with the trade acceptance etc..
3.Account receivables
（1） Accounts receivables by categories
Currency： yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closing balance|||||Opening balance|||||
||Carrying amount||Bad debtprovision||Bookvalue|Carryingamount||Bad debt provision||Bookvalue|
||Amount|(%)|Amount|(%)||Amount|(%)|Amount|(%)||
|Accountsreceivable ofwhich provision|178,152,760.98|100.00%|19,189,315.16|10.77%|158,963,445.82|131,787,566.17|100.00%|19,243,657.51|14.60%|112,543,908.66|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|for bad debts is ofindividuallyinsignificant|||||||||||
|Total|178,152,760.98|100%|19,189,315.16|10.77%|158,963,445.82|131,787,566.17|100.00%|19,243,657.51|14.60%|112,543,908.66|

（2） Bad debt provision, recovery or reverse
The provision amount of bad debt is RMB 0.00 Yuan.;Recovery or reverse for bad debts Amount is RMB
0.00.
（3）op 5 entities with the largest balances of accounts receivable
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Name ofentity|Relationship withthe Group|Amount|Age|Proportion of theamount to the totalAR (%)|Bad debtprovision|
|IndividualNo.1|Un-related party|4,845,251.67|Within 1year|2.72%|0|
|IndividualNo.2|Un-related party|3,847,455.99|Within 1year|2.16%|0|
|IndividualNo.3|Un-related party|3,100,000.00|Within 1year|1.74%|0|
|IndividualNo.4|Un-related party|2,655,000.00|Within 1year|1.49%|0|
|IndividualNo.5|Un-related party|1,780,000.00|Within 1year|1.00%|0|
|Total||16,227,707.66||9.11%||

Note：
The closing balance of account receivables is 158,963,445.82(yuan) in June 30, 2016.An increase of .An increase of41.25% compared with opening balance.The main reason is due to increased accounts for projects.
4.Prepayments
(1) Aging analysis
Currency： yuan
||||||
|-|-|-|-|-|
|Aging|Closing balance||Opening balance||
||Amount|Proportion (%)|Amount|Proportion (%)|
|Within 1 year|45,512,659.34|100.00%|20,002,413.22|87.15%|
|1-2 years|||2,949,204.73|12.85%|
|Over 3 years|761.45|0.00%|761.45|0.00%|
|Total|45,513,420.79|100%|22,952,379.40|100%|

（2）Top 5 entities with the largest balances of prepayments
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Name ofentities|Relationshipwith theGroup|Amount(yuan)|Proportion (%)|Timing|Reasons for unsettlement|
|IndividualNo.1|Un-relatedparty|9,000,000.00|19.77%|Within 1year|Unsettled|
|IndividualNo.2|Un-relatedparty|5,788,995.24|12.72%|Within 1year|Did not handle the settlementand materials warehousingprocedures|
|IndividualNo.3|Un-relatedparty|3,450,693.43|7.58%|Within 1year|Did not handle the settlementand materials warehousing|

procedures
|||||||
|-|-|-|-|-|-|
|IndividualNo.4|Un-relatedparty|2,918,549.58|6.41%|Within 1year|Did not handle the settlementand materials warehousingprocedures|
|IndividualNo.5|Un-relatedparty|2,546,696.75|5.60%|Within 1year|Did not handle the settlementand materials warehousingprocedures|
|合计||23,704,935.00|52.08%|||

Note：
The closing balance of prepayments is 45,513,420.79(Yuan).An increase of98.30% compared with opening balance.The main reason is due to increased prepaid for project and material.
5.Dividend receivables
（1）dividend receivable
Currency： yuan
||||
|-|-|-|
|Item(Or name of investee)|Closing balance|Opening balance|
|Yunnan KunPeng Flight service Co.,Ltd|1,052,192.76|1,052,192.76|
|Total|1,052,192.76|1,052,192.76|

（2）Dividends receivable aging over 1year
Currency：yuan
||||||
|-|-|-|-|-|
|Item(Or name ofinvestee)|Closing balance|Aging|Reasons foruncollected amounts|Whether the amountis impairedand the base ofjudgment|
|Yunnan KunPengFlight service Co.,Ltd|1,052,192.76|3-4年|Delay to pay|No|
|Total|1,052,192.76|--|--|--|

6.Other receivables
（1） Other receivables by categories
Currency： yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closing balance|||||Opening balance|||||
||Carrying amount||Bad debtprovision||Bookvalue|Carryingamount||Bad debt provision||Bookvalue|
||Amount|(%)|Amount|(%)||Amount|(%)|Amount|(%)||
|Other receivablesof whichprovision for baddebts is ofindividuallysignificant|153,268,970.17|62.03%|152,929,667.19|99.78%|339,302.98|162,687,688.88|65.17%|157,552,042.76|96.84%|5,135,646.12|
|Other receivab lesof whichprovision for baddebts is ofindividuallyinsignificant|93,821,801.63|37.97%|30,803,897.38|32.83%|63,017,904.25|86,943,815.99|34.83%|30,406,118.69|34.97%|56,537,697.30|
|Total|247,090,771.80|100%|183,733,564.57|74.36%|63,357,207.23|249,631,504.|100.00%|187,958,161.45|75.29%|61,673,343.42|

||
|-|
|87|

Bad debt provision of other receivables which is of individually significant
Currency： yuan
||||||
|-|-|-|-|-|
|Content of accountsreceivable|Closing balance||||
||Other receivables|Amount of bad debt|Proportion ofprovision|Reasons for theprovision|
|Other receivables duefrom subsidiaries thatare not included inthe consolidatedfinancial statements|129,109,401.68|129,109,401.68|100.00%|A separate provisionis establishedaccording to therecoverability of eachreceivables with longaging and littleretrievability.|
|Others|24,159,568.49|23,820,265.51|98.60%|A separate provisionis establishedaccording to therecoverability of eachreceivables with longaging and littleretrievability.|
|Total|153,268,970.17|152,929,667.19|99.78%|--|

（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 RMB0.00；the amount of the reversed or collected part during the reporting period was of RMB4,800,000.00.
Including the significant part of he amount of the reversed or collected part during the reporting period：
Currency： yuan
||||
|-|-|-|
|Name of entity|Amount of the reversed orcollected part|The means of reversed orcollected|
|Luofu Hill Travelling Corporation 4,|800,000.00|By meas of monetary fund|
|Total|4,800,000.00|--|

Note :
The company cooperated with Luofu Hill Tourism Company on Luofu Hill Tourism project in early years.The company instituted legal proceedings against Tourism Company because the Tourism Company failed to carry out the contract which is return of investment funds for many years.According to the operating conditions of the time,the company has made provision for investment fund50% of bad debts for 4.8 million yuan.In the case of Luofu Hill Tourism Company had repeated breach of the contract.The company has filed a lawsuit to the intermediate people's Court of Huizhou City in April 17, 2006.The lawsuit has lasted for ten years.Signed the<implementation of the settlementagreement> in April 21, 2016.According to the agreement,Luofu Hill Tourism Company has deposit the liquidated damages to the designated account.So far the case has been processed end.
（3）No any other receivables that have been actual write-off in reporting period.
（4）Details of the other receivables displayed by nature
Currency： yuan
||||
|-|-|-|
|Nature of the other receivables|Closing balance|Beginning balance|
|The other receivable fromsubsidiaries not consolidated|130,433,537.72|130,433,537.72|
|Other|116,657,234.08|119,197,967.15|
|Total|247,090,771.80|249,631,504.87|

（5）Top 5 entities with the largest balances of other receivables
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Name of entity|Relationship with|Amount|Age|Proportion of the|Provision for bad|

|||||||
|-|-|-|-|-|-|
||the Group|||amount to thetotal OR (%)|debt at year end|
|Canada GreatWall( Vancouver)Co.,Ltd *|Subsidiaries notconsolidated|89,035,748.07|Above 3 years|36.03%|89,035,748.07|
|Bekaton propertyLimited *|Subsidiaries notconsolidated|12,559,290.58|Above 3 years|5.08%|12,559,290.58|
|Paklid Limited *|Subsidiaries notconsolidated|18,997,984.22|Above 3 years|7.69%|18,997,984.22|
|Guangdongprovince HuizhouLuofu HillMineral WaterCo.,Ltd|Others|10,465,168.81|Above 3 years|4.24%|10,465,168.81|
|Xi’an New peakproperty andtrading company|Joint venture|8,419,205.19|Above 3 years|3.41%|8,419,205.19|
|Total|--|139,477,396.87 --||56.45%|139,477,396.87|

7.Inventory
(1) Categories of inventory
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
||Carryingamount|Provision forinventories|Net carryingamount|Carryingamount|Provision forinventories|Net carryingamount|
|Raw materials|325,036.58||325,036.58|525,723.92||525,723.92|
|Finishedproducts|877,739.69|278,891.91|598,847.78|673,786.32|278,891.91|394,894.41|
|Real estatedevelopingproducts|670,319,570.83||670,319,570.83|545,991,041.32||545,991,041.32|
|Real estatedevelopedproducts|1,088,352,944.39|8,956,487.12|1,079,396,457.27|1,391,791,237.50|12,991,351.75|1,378,799,885.75|
|Real estatewhich aregoing to bedeveloped|159,653,497.75||159,653,497.75|159,653,497.75||159,653,497.75|
|Construction inprogress|121,387,673.92||121,387,673.92|60,858,852.46||60,858,852.46|
|Total|2,040,916,463.16|9,235,379.03|2,031,681,084.13|2,159,494,139.27|13,270,243.66|2,146,223,895.61|

(2)Detail of developing real estate products
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Startingtime|Estimatedtotalinvestment|Closing balance|Openingbalance|
|||（ millionyuan）|||
|Chuanqi Tianju Building|Year|446.00|107,643,144.59|97,301,146.79|

2016
||||||
|-|-|-|-|-|
|Jingtian Tianjuinternational Apartment|Year2015|200.00|53,524,102.57|49,285,247.15|
|Shengfang CuilinBuilding|Year2015|500.00|179,892,884.31|147,515,288.98|
|ShanTou Fresh PeakBuilding|||24,576,738.38|24,396,781.61|
|Phase one of Tianyueharbor|Year2015|787.30|304,682,700.98|227,492,576.79|
|Total|||670,319,570.83|545,991,041.32|

（3）Developed real estate products
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Name of project|Finishedtime|Openingbalance|Additions|Reductions|Closing balance|
|Jinye IslandMulti-tier villa|Year 1997|38,933,768.09|0|0|38,933,768.09|
|Phase six of JinyeIsland villa|Year 2007|2,961,996.22|0|0|2,961,996.22|
|Phase ten of JinyeIsland villa|Year 2010|23,598,779.44|0|2,291,961.63|21,306,817.81|
|Phase eleven ofJinye Island villa|Year 2008|13,078,603.54|0|699,788.89|12,378,814.65|
|Shantou YuejingDongfang|Year 2014|95,018,036.91|0|16,434,141.81|78,583,895.10|
|Wenjing Garden||3,818,939.87|0|0|3,818,939.87|
|Real Estate building||11,025,444.77|0|0|11,025,444.77|
|HuaFeng Building||1,631,743.64|0|0|1,631,743.64|
|HuangPuXinChun||289,802.88|0|0|289,802.88|
|XingHu GardenMulti-tier||156,848.69|0|0|156,848.69|
|ShenfangChuanqishan|Year 2013|727,220,152.74 0||169,993,504.46|557,226,648.28|
|Shenfang ShanglinGarden|Year 2014|473,752,563.66 0||114,018,896.32|359,733,667.34|
|BeiJing Fresh PeakBuliding||304,557.05|0|0|304,557.05|
|Total||1,391,791,237.50|0|303,438,293.11|1,088,352,944.39|

(4)Real estate which are going to be developed
||||||
|-|-|-|-|-|
|Name of project|Openingbalance|Additions|Reductions|Closingbalance|
|Phase two of Tianyueharbor （ ShantouJingzaiwan）|159,653,497.75|0|0|159,653,497.75|
|Total|159,653,497.75|0|0|159,653,497.75|

（5）Movement of Provision of inventories
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Openingbalance|Increase||Decrease||Closingbalance|
|||Accrual|Others|Reversals orWrite-off|Others||
|Finishedproducts|278,891.91|||||278,891.91|
|Real estatedevelopedproducts|12,991,351.75|||4,034,864.63||8,956,487.12|
|Total|13,270,243.66|||4,034,864.63||9,235,379.03|

（6）The illustration of capitalized borrowing cost in closing balance of inventory.
Capitalized borrowing cost in closing balance of inventory at year end is RMB52,892,792.40 .
Note：
As of June 30, 2016，Book value of 7,492,175.18 yuan inventory has been used in long-term loans mortgage(including long-term loans due in 1 year).See notes 7.23
8.Other current assets
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Value added tax|7,696,941.78|4,747,581.57|
|Business tax|32,710,389.33|12,721,511.78|
|City construction surcharge|2,647,261.14|991,440.88|
|Education surcharge|1,066,550.09|300,938.18|
|Local education surcharge|698,446.33|214,188.54|
|Embankment Protection Fee|55,749.43|5,737.34|
|Land appreciation tax|23,242,070.29|18,334,432.77|
|Financial Products of Trust||3,000,000.00|
|Income tax|1,404,997.31||
|Total|69,522,405.70|40,315,831.06|

Note：
The closing balance of monetary fund is 69,522,405.70Yuan.An increase of72.44% compared with opening balance.The main reason is due to increased prepaid taxes.
9.Available-for-sale financial assets
(1) Details of available-for-sale financial assets
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
||Bookbalance|Impairment B|ook value Boo|k balance|Impairment|Book value|
|Available-for-saleequity instrument ：|17,464,240.74||17,464,240.74|17,464,240.74||17,464,240.74|
|Including：Measuredby fair value|17,464,240.74||17,464,240.74|17,464,240.74||17,464,240.74|
|Total|17,464,240.74||17,464,240.74|17,464,240.74||17,464,240.74|

(2)Available-for-sale financial assets measured by cost at year end
Currency： yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Book balance||||Provision for impairment||||Proportion rate ininvestee（%）|Curr.year cashdiv.|
||Openingbal.|Increase.|Decrease|Closingbal.|Openingbal|increase|decrease|Closingbal.|||
|ShantouSmall&MediumEnterprisesFinancingGuaranteeCo., Ltd|12,000,000.00|||12,000,000.00|||||10.00%|689,000.00|
|YunnanKunPengFlight serviceCo.,Ltd|5,464,240.74|||5,464,240.74|||||25.00%||
|Total|17,464,240.74|||17,464,240.74|||||--|689,000.00|

10.Long-term equity investments
Currency： yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investedcompany|Openingbalance|Change amount of this year|||||||||Closingbalance||Closingbalanceofimpairmentprovision|
|||Additionalinvestment|Negativeinvestment|Profit andloss oninvestmentsconfirmedwithequitymethod|Othercomprehensiveincomeadjustment|Otherequitychange|Cashbonus orprofitsannounced to issue|impairmentprovision|Other|||||
|I. Joint ventures||||||||||||||
|GuangdongprovinceHuizhouLuofuHillMineralWaterCo.,Ltd|9,969,206.09|||||||||9,969,206.09||9,969,206.09||
|FengkaiXinhuaHotel|9,455,465.38|||||||||9,455,465.38||9,455,465.38||
|JiangmenXinjiangRealEstateCo., Ltd|9,037,070.89|||||||||9,037,070.89||912,537.16||
|Xi’anFreshPeak|32,840,729.61|||||||||32,840,729.61||20,673,831.77||

|||||||
|-|-|-|-|-|-|
|PropertyTradingCo., Ltd||||||
|DongyiRealEstateCo., Ltd|30,376,084.89|||30,376,084.89|21,225,715.87|
|Subtotal|91,678,556.86|||91,678,556.86|62,236,756.27|
|II.Associate||||||
|ShenzhenRonghuaJiDianCo.,ltd||1,410,924.77|-63,790.59|1,347,134.18|1,076,954.64|
|ShenzhenRunhuaAutomobile tradingCo.,Ltd||1,445,425.56||1,445,425.56|1,445,425.56|
|Subtotal||2,856,350.33|-63,790.59|2,792,559.74|2,522,380.20|
|Total||94,534,907.19|-63,790.59|94,471,116.60|64,759,136.47|

Ⅲ.Other long-term equity investment
Currency： yuan
||||||
|-|-|-|-|-|
|Invested company|Opening balance|Change in period|Closing balance|Closing balance ofImpairment provision|
|Shenzhen Shen FangIndustrialDevelopment Co., Ltd|4,500,000.00||4,500,000.00|4,500,000.00|
|Shenzhen ZhongGangHaiyan Enterprise Ltd|12,940,900.00||12,940,900.00|12,940,900.00|
|Shenzhen Real EstateConsolidated ServiceCo., Ltd.|5,958,305.26||5,958,305.26|5,958,305.26|
|Paklid Limited|201,100.00||201,100.00|201,100.00|
|Bekaton Property|906,630.00||906,630.00|906,630.00|
|Shenzhen Tefa RealEstate ConsolidatedService Co., Ltd|8,180,003.63||8,180,003.63|8,180,003.63|
|Shenzhen XinDongfang Store Ltd|18,500,000.00||18,500,000.00|18,500,000.00|
|Shenzhen City|2,680,000.00||2,680,000.00|2,680,000.00|

|||||
|-|-|-|-|
|ShenfangConstruction andDecoration MaterialsLtd||||
|Shenzhen ShenfangDepartment Store Co.Ltd|10,000,000.00|10,000,000.00|10,000,000.00|
|Shenzhen CyberPortCo., Ltd|7,613,507.96|7,613,507.96|--|
|Shenzhen City SPGBao An DevelopmentLtd.|20,379,525.68|20,379,525.68|--|
|Shantou xinfengbuilding|58,547,652.25|58,547,652.25|58,547,652.25|
|Guangdong ProvinceFengkai Lian FengCementManufacturing Co.,Ltd|56,228,381.64|56,228,381.64|56,228,381.64|
|Total|203,636,006.42|203,636,006.42|178,642,972.78|

 11. Investment properties
Investment properties measured at cost.
Currency： yuan
||||||
|-|-|-|-|-|
|Item|House& building|Land-use right|Construction in progress|Total|
|Ⅰ.Original carryingvalue|||||
|1.Opening balance|757,560,363.04|99,803,519.73||857,363,882.77|
|2.Increase in the year||2,740,550.70||2,740,550.70|
|（1）Outsourcing|||||
|（2）Carried overfrom inventory ,fixasset,construction inprogress|||||
|（3）Increase ofcorporatecombination|||||
|3.Decrease in theyear|||||
|（1）Disposal|||||
|（2）Other writedown|||||
|4.Closing balance|757,560,363.04|102,544,070.43||860,104,433.47|
|Ⅱ.Accumulativedepreciation&amortization|||||

|||||
|-|-|-|-|
|1.Opening balance|326,263,368.42||326,263,368.42|
|2.Increase in the year|10,272,819.00||10,272,819.00|
|（1）accrued oramortization|10,272,819.00||10,272,819.00|
|3.Decrease in theyear||||
|（1）Disposal||||
|（2）Other writedown||||
|4. Closing balance|336,536,187.42||336,536,187.42|
|Ⅲ.Provision forimpairment||||
|1.Opening balance|14,128,544.62|81,913,405.53|96,041,950.15|
|2.Increase in the year||2,249,297.83|2,249,297.83|
|（1）accrued||||
|3.Decrease in theyear||||
|（1）Disposal||||
|（2）Other writedown||||
|4.Closing balance|14,128,544.62|84,162,703.36|98,291,247.98|
|Ⅳ.Book value||||
|1.Closing book value|406,895,631.00|18,381,367.07|425,276,998.07|
|2.Opening bookvalue|417,168,450.00|17,890,114.20|435,058,564.20|

Note:
① Current period depreciation and amortization is RMB10,272,819.00.
②The decrease of original carrying value and provision for impairment of land-use right is caused by the fluctuation of foreign exchange rate when translating the foreign currency financial statements;
③Among the investment properties, there were house&building with carrying value RMB368,381,573.15 that were used as mortgage of long-term loans(including the long-term loans that will mature within one year), referring to note 7.44 for details. 12.Fixed assets
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Houses& Buildings|Transportationequipment|Electronic equipmentand others|Total|
|Ⅰ.Original carryingvalue|||||
|1.Opening balance|107,110,751.42|17,264,767.82|14,228,328.28|138,603,847.52|
|2. Increase in theyear||360,224.96|576,320.70|936,545.66|
|（1）Purchasing||360,224.96|576,320.70|936,545.66|
|（2）Transferredfrom the constructionin progress|||||
|（3）Increase ofcorporate|||||

||||||
|-|-|-|-|-|
|combination|||||
|3. Decrease in theyear|||58,331.89|58,331.89|
|（1）Disposal ordiscard as useless|||58,331.89|58,331.89|
|4. Closing balance|107,110,751.42|17,624,992.78|14,746,317.09|139,482,061.29|
|Ⅱ.Accumulateddepreciation|||||
|1.Opening balance|63,435,651.90|11,865,140.43|11,089,069.88|86,389,862.21|
|2. Increase in theyear|2,531,478.89|1,020,523.42|580,472.35|4,132,474.66|
|（1）accrued 2,5|31,478.89|1,020,523.42|580,472.35|4,132,474.66|
|3. Decrease in theyear|||54,903.90|54,903.90|
|（1）Disposal ordiscard as useless|||54,903.90|54,903.90|
|4. Closing balance|65,967,130.79|12,885,663.85|11,614,638.33|90,467,432.97|
|Ⅲ .Provision forImpairment|||||
|1.Opening balance|||||
|2. Increase in theyear|||||
|（1）accrued|||||
|3. Decrease in theyear|||||
|（1）Disposal ordiscard as useless|||||
|4. Closing balance|||||
|Ⅳ.Book value|||||
|1.Closing value|41,143,620.63|4,739,328.93|3,429,176.16|49,014,628.32|
|2.Opening Value 43|,675,099.52|5,399,627.39|3,139,258.40|52,213,985.31|

Note:
The depreciation for the current year is RMB 4,132,474.66 There were no constructions in progress transferred to fixed assets during the period.
As of 30 Jun 2016, amounting to RMB21,236,886.33ofhouses& buildings were used as mortgage for the long-term loans (including long-term loans that would mature within one year). Refer to Note 7.44).
13.Intangible assets
Currency： yuan
|||||||
|-|-|-|-|-|-|
|项目|Land Use Rights|Patent Right|Non-PatentsRight|Taxi license|Total|
|Ⅰ.Carrying value||||||
|1. Openingbalance|||6,368,000.00|2,241,800.00|8,609,800.00|
|2.Increase in||||||

|||||
|-|-|-|-|
|the year||||
|（1）Purchased||||
|（2）Internallydeveloped||||
|（3）Increase ofcorporatecombination||||
|3. Decrease in theyear||||
|（1）Disposal||||
|4.Closing balance|6,368,000.00|2,241,800.00|8,609,800.00|
|Ⅱ.Accumulatedamortization||||
|1.Openingbalance|1,606,746.83|1,348,233.17|2,954,980.00|
|2. Increase in theyear|170,580.00|83,790.00|254,370.00|
|（1）accrued||||
|3. Decrease in theyear||||
|（1）Disposal||||
|4. Closingbalance|1,777,326.83|1,432,023.17|3,208,350.00|
|Ⅲ.Provision forImpairment||||
|1.Openingbalance||||
|2. Increasein the year||||
|（ 1 ）accrued||||
|3. Decreasein the year||||
|（1）Disposal||||
|4.Closingbalance||||
|Ⅳ.Book value||||
|1.Closingvalue|4,590,673.17|809,776.83|5,400,450.00|
|2.OpeningValue|4,761,253.17|893,566.83|5,654,820.00|

15.Long-term Prepaid Expenses
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Amortization|Other reductions|Reason for other|

||||||
|-|-|-|-|-|
|||||reductions|
|Renovation costs|391,691.74|400,905.06|121,605.53|670,991.27|
|Others|5,916.90||5,916.90|0.00|
|Total|397,608.64|400,905.06|127,522.43|670,991.27|

Note:
.Long-term Prepaid Expenses
The closing balance of long-term Prepaid Expenses is 1670,991.27Yuan.An increase of68.76% compared with opening balance.The main reason is due to increased office decoration fee.
15.Deferred tax asset and deferred tax liability
（1） Deferred tax assets that are presented at the net amount after offset and correspondingly deductible or
taxable temporary differences
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Closing balance||Opening balance||
||Deductible or taxabletemporary differences|Deferred tax assets|Deductible or taxabletemporary differences|Deferred tax assets|
|Provision forimpairment losses ofassets|9,013,961.84|2,253,490.46|12,991,351.75|3,247,837.94|
|Eliminated unrealizedprofit whenconsolidatingfinancial statement|||2,720,518.78|680,129.70|
|Deductible loss|22,066,819.40|5,516,704.85|22,066,819.40|5,516,704.85|
|Expected profit foradvances receivedfrom customers|35,692,801.56|8,923,200.39|35,750,276.24|8,937,569.06|
|Provision forsettlement of landappreciation tax|55,260,506.64|13,815,126.66|55,260,506.64|13,815,126.66|
|Total|122,034,089.44|30,508,522.36|128,789,472.81|32,197,368.21|

（2） Details of offsetting deferred tax assets and deferred tax liabilitie
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Closing amountwhich offset amountof deferredtax assets andliabilities|Closing amount ofdeferred tax assets orliabilities|Opening amountwhich offset amountof deferredtax assets andliabilities|Opening amountdeferred tax assets orliabilities|
|Deferred tax assets||30,508,522.36||32,197,368.21|

（3） (2)Details of unrecognized deferred tax assets
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible operating losses|3,374,340.71|3,374,340.71|
|Bad debt provision|49,490,244.69|49,490,244.69|
|Provision for decline in value ofinventories|69,722.98|69,722.98|
|Provision for impairment oflong-term investments|60,850,527.31|60,850,527.31|
|Provision for impairment ofinvestment properties|22,895,326.66|22,895,326.66|
|Total|136,680,162.35|136,680,162.35|

（4） Deductible losses for which no deferred tax assets are recognized will expire in the following years.
Currency： yuan
|||||
|-|-|-|-|
|Year|Closing balance|Opening balance|Notes|
|2016|1,008,640.93|1,008,640.93||
|2017|138,864.68|138,864.68||
|2018|1,665,661.89|1,665,661.89||
|2019|124,125.69|124,125.69||
|2020|17,615,495.00|17,615,495.00||
|2021||||
|Total|20,552,788.19|20,552,788.19|--|

16.Short-term loans
（1）The detail of short-term loan by type
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledged Loan|100,284,378.21|118,418,286.29|
|Credit Loan|22,000,000.00|25,000,000.00|
|Total|122,284,378.21|143,418,286.29|

Note：
Pledge loan seenoteⅦ.2andⅦ.23
17. Accounts payable
Details of accounts payable
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|18,059,433.29|23,462,580.29|
|Over 1 year|164,365,494.74|266,990,530.21|
|Total|182,424,928.03|290,453,110.50|

Note：
Significant accounts payable aged more than one year is for the unsettled project at the end of the period.
The closing balance of accounts payable is182,424,928.03Yuan.An increase of37.19% compared with opening balance.The main reason is due to increased payment of the due Settlement of completed product development.
18.Advance received from Customers
（1）Details of advances received from customers
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within one year|845,213,368.57|469,766,020.08|
|Over one year|8,717,575.00|5,854,327.27|
|Total|853,930,943.57|475,620,347.35|

（2）Detail of advances received from customers aged more than one year
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Reason of not yet repaid ortransferred into income|
|advanced received f rom housing||Unconditioned to transferred into|
||8,717,575.00||
|buyers||income|

Note：
Significant advances from customers aged more than one year is the advanced received from housing buyers, as such receipts have not been transferred into income at the end of the period.
The closing balance of advance received from Customers is 853,930,943.57Yuan.An increase of79.54% compared with opening
balance.The main reason is due to increased collect in advance from selling house and construction cost.
19.Employee benefits payable
(1)Details of employee benefits payable
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Ⅰ.Short-termremuneration|37,472,374.35|63,256,023.05|64,843,021.58|35,885,375.82|
|Ⅱ.Post-employment-Defined contributionplans payable|1,277,645.37|7,456,462.40|7,479,281.72|1,254,826.05|
|Total|38,750,019.72|70,712,485.45|72,322,303.30|37,140,201.87|

(2)Details of short-term remuneration
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1.Salary, bonus,allowance andsubsidies|35,629,727.54|55,382,825.14|56,958,012.39|34,054,540.29|
|2.Employee welfare||1,877,563.00|1,877,563.00||
|3.Social insurancepremium|1,094,679.31|1,962,385.40|1,961,602.60|1,095,462.11|
|Including: Medicalinsurance insurance|1,093,804.76|1,731,384.80|1,730,520.80|1,094,668.76|
|Employment injuryinsurance|672.12|62,735.24|62,735.24|672.12|
|Maternityinsurance|202.43|168,265.36|168,346.56|121.23|
|4.Housing fund|699,806.64|2,889,576.48|2,892,742.08|44,995.26|
|5.Labor union fees&Employeeeducation fees|48,160.86|1,143,673.03|1,153,101.51|690,378.16|
|Total|37,472,374.35|63,256,023.05|64,843,021.58|35,885,375.82|

（3） Defined contribution plans payable
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1.Basic endowmentinsurance|1,250,798.81|4,521,486.64|4,520,286.64|1,251,998.81|
|2.Unemploymentinsurance|114.92|159,487.48|159,406.28|196.12|
|3.Company annuitypayment|26,731.64|2,775,488.28|2,799,588.80|2,631.12|
|Total|1,277,645.37|7,456,462.40|7,479,281.72|1,254,826.05|

20.Taxes payable
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|377,107.82||
|Business tax|622,001.65|2,066,816.91|
|Corporate income tax|45,027,212.68|52,363,258.82|
|Individual income tax|918,243.88|923,572.01|
|City construction and maintenancetax|51,294.43|106,889.20|
|Property tax|1,688,886.04|1,715,996.96|
|Land appreciation tax|6,373,750.90|5,708,711.22|

||||
|-|-|-|
|Education surcharge|32,803.59|72,990.50|
|Others|1,958,932.15|501,179.80|
|Total|57,050,233.14|63,459,415.42|

21、 Interest payable
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Interest of long- term loans withinterest payable by installments andprinciple payable on maturity||1,000,000.00|
|Others|16,535,277.94|16,535,277.94|
|Total|16,535,277.94|17,535,277.94|

Note: The balance of “Other” refers to the interest payable to Shenzhen Investment HoldingsCo.，Ltd., being accrued for the loans. Please refer refer to note 10.6 (2).
22.Other payables
(1)Details of other payables
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Land appreciation tax accrued|144,848,928.01|146,838,995.86|
|Payable to related parties|63,340,761.01|63,340,761.01|
|Deposit|81,894,330.63|82,194,532.63|
|Others|101,509,892.30|93,437,014.83|
|Total|391,593,911.95|385,811,304.33|

（2）Description of significant other payables aged more than one year
Currency： yuan
||||
|-|-|-|
|Name of entity|Amount|Reason of not yet repaid ortransferred into income|
|Tax accrued- land appreciation tax 43|,347,446.23|Unsettled|
|Shenzhen Investment Holdings Co.，Ltd.|28,848,819.24|Unsettled|
|Total|72,196,265.47|--|

Note:
The Group made provision for LAT, according to Guo Shui Fa[2006] No. 187 "LAT liquidation management issues of real estate development enterprises made by the State Administration of Taxation ". As at Jun 30, 2016, the closing balance is RMB 144,848,928.01.
23.Non-current liability due in 1 year
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term loans due in one year|144,239,634.08|168,727,608.54|
|Total|144,239,634.08|168,727,608.54|

24. Long-term loans
(1) Long-term loans categories
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Loan with mortgage|325,399,708.82|382,233,324.88|
|Total|325,399,708.82|382,233,324.88|

Othernote，including the range of interestrate：
|||||||
|-|-|-|-|-|-|
|Top 5 significant long-term loans(including non-current liability due in 1 year)|||||Currency： yuan|
|Lender|The inceptionof loans|Maturitydate|Currency|Closing balance|Opening balance|

Chinese Mercantile 2015.4.1 2025.4.1 RMB
Bank Shenzhen 160,000,000 180,000,000
Branch
|||||||
|-|-|-|-|-|-|
|China ZheshangBank ShenzhenBranch|2013.8.23|2018.8.16|RMB|83,000,000|73,000,000|
|Shenzhen RuralCommercial Bank|2014.11.27|2019.11.27 R|MB|82,000,000|94,000,000|
|Shenzhen RuralCommercial Bank|2013.8.29|2018.8.29|RMB|72,600,000|79,200,000|
|Beijing BankShenzhen Branch|2014.12.9|2017.12.9|RMB|35,000,000|30,000,000|
|Total||||432,600,000|456,200,000|

Note: The rates of above loans depend on the benchmark interest rate of the People's Bank of China for the
same period adding a certain floating proportion of the benchmark interest rate.
25.Long-term payables
（1）Details of long-term payables
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Maintenance fund|10,438,655.14|10,480,629.35|
|Total|10,438,655.14|10,480,629.35|

26.Share capital
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Opening balance|Changes for the period（+ 、-）|||||
|||Newlyissuedshares|Bonusissue|Surplusconverted|Other|Subtotal|
|Total shares|1,011,660,000.00||||||

27.Capital surplus
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Capital premium|557,433,036.93|||557,433,036.93|
|Other capital reserve|420,811,873.18|||420,811,873.18|
|Total|978,244,910.11|||978,244,910.11|

28.Other comprehensive income
Currency： yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Openingbalance|Amount incurred this year|||||Closingbalance|
|||Accrualbeforeincome taxthis year|Less:previousyears‘ OCItransferredto P&L incurrent.period|Less:incometax|Attributableto parentcompanyafter tax|Attributableto minorityshareholders after tax||
|Ⅰ.Other comprehensive incomethat would be classified intoprofit and loss in the future|10,063,591.61|-2,241,980.77|||-1,569,386.54|-672,594.23|8,494,205.07|
|including：the differenceof foreign currency financial|10,063,591.61|-2,241,980.77|||-1,569,386.54|-672,594.23|8,494,205.07|

|||||||
|-|-|-|-|-|-|
|statement translation||||||
|Total|10,063,591.61|-2,241,980.77|-1,569,386.54|-672,594.23|8,494,205.07|

29.Surplus reserve
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplusreserve|40,823,841.35|||40,823,841.35|
|Total|40,823,841.35|||40,823,841.35|

30.Undistributed profit
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Before adjustment: Undistributed profits atthe end of prior year|290,911,773.00|157,147,182.36|
|After adjustment: Undistributed profits atbeginning of year|290,911,773.00|157,147,182.36|
|Plus: net profit attributable to theshareholders of the parent company in theperiod|134,761,121.51|186,407,824.38|
|Less: Appropriation to the statutory surplusreserve||37,200,223.52|
|Undistributed profit at the end of the period|425,672,894.51|306,354,783.22|

31.Operating income and costs
(1) Operating income and operating costs
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Amount for the current period||Amount for the prior period||
||Operating income|Operating costs|Operating income|Operating costs|
|Main operatingbusiness income|1,082,674,647.12|806,066,310.73|1,136,260,495.32|688,386,890.94|
|Other opera tingbusiness income|15,212,322.56|9,960,933.38|11,292,278.64|9,258,985.21|
|Total|1,097,886,969.68|816,027,244.11|1,147,552,773.96|697,645,876.15|

(2)Principal operating activities (classified by industries)
Currency： yuan \
||||||
|-|-|-|-|-|
|Name of industry|Amount for the current period||Amount for the prior period||
||Operating income|Operating costs|Operating income|Operating costs|
|Real estate|531,354,186.00|302,088,298.98 77|8,325,116.00|373,731,699.64|
|Construction|472,256,586.11|450,003,730.35 28|8,560,669.29|274,146,245.43|
|Leasing|39,640,195.52|17,884,231.72|40,340,045.53 15|,684,513.28|
|Propertymanagement|54,794,063.91|50,959,546.17|53,788,728.05|49,335,954.47|
|Subtotal|1,098,045,031.54|820,935,807.22|1,161,014,558.87|712,898,412.82|
|Less: offset theinternal amount|15,370,384.42|14,869,496.49|24,754,063.55|24,511,521.88|

||||||
|-|-|-|-|-|
|Name of industry|Amount for the current period||Amount for the prior period||
||Operating income|Operating costs|Operating income|Operating costs|
|Total|1,082,674,647.12|806,066,310.73|1,136,260,495.32|688,386,890.94|

 (3) Principal operating activities (classified by geographical areas)
Currency： yuan
||||||
|-|-|-|-|-|
|Name ofgeographical area|Amount for the current period||Amount for the prior period||
||Operating income|Operating costs|Operating income|Operating costs|
|Domestic:|||||
|GuangDongProvince|1,035,923,706.97|762,496,486.35|1,121,494,711.98|675,731,968.47|
|Others|61,835,121.24|58,439,320.87|39,256,306.71|37,166,444.35|
|Overseas：|286,203.33||263,540.18|--|
|Subtotal|1,098,045,031.54|820,935,807.22|1,161,014,558.87|712,898,412.82|
|Less: offset theinternal amount|15,370,384.42|14,869,496.49|24,754,063.55|24,511,521.88|
|Total|1,082,674,647.12|806,066,310.73|1,136,260,495.32|688,386,890.94|

（4）Operating income from theCompany’s top 5 customers
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Amount for the current period|||Amount for the prior period|||
|Customername|Total operatingincome|Proportion tototal operatingincome of theCompany (%)|Customername|Totaloperatingincome|Proportion tototal operatingincome of theCompany (%)|
|Corporationunit No.1|15,951,238.36 1.4|5%|Corporationunit No.1|10,723,075.42|0.93%|
|IndividualNo.1|10,721,149.00 0.9|8%|IndividualNo.1|10,147,591.00|0.88%|
|IndividualNo.2|11,596,946.00 1.0|6%|Corporationunit No.2|8,765,196.00 0.|76%|
|IndividualNo.3|11,427,694.00 1.0|4%|Corporationunit No.3|7,970,000.00 0.|69%|
|IndividualNo.4|10,076,464.00 0.9|2%|Corporationunit No.4|7,776,000.00 0.|68%|
|Total|59,773,491.36|5.44%|Total|45,381,862.42|3.95%|

32.Business taxes and surcharges
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Business tax|44,633,179.90|52,611,770.88|
|City construction and maintenancetax|3,064,682.10|3,676,074.73|
|Education surcharges|1,433,871.60|1,633,057.08|
|Property tax|3,067,735.56|3,147,535.56|
|Land appreciation tax|33,110,656.95|67,402,567.36|
|Local education surcharges|871,353.80|1,007,544.94|

||||
|-|-|-|
|Embankment Protection Fee|186,729.80|133,784.09|
|Total|86,368,209.71|129,612,334.64|

Note：
The amount of current business taxes and surcharges is 86,368,209.71 yuan.An decrease of33.36% compared with prior period.The main reason is due to decrease in real estate income.
33、Selling expenses
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Employee benefits|1,949,636.81|2,185,633.42|
|Advertising expenses|873,616.00|859,282.31|
|Entertainment expenses|346,619.50|431,393.00|
|Sales agency fees and commissions|1,469,750.06|12,045,046.88|
|Others|468,119.06|1,724,821.14|
|Total|5,107,741.43|17,246,176.75|

Note:
The amount of current selling expenses is 5,107,741.43yuan.An decrease of70.38% compared with prior period.The main reason is due to decreased sales agency fee and commission.
34. Administrative expenses
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Employee benefits|13,493,611.11|16,438,072.85|
|Taxes|1,878,051.29|1,867,538.36|
|Depreciation|1,640,917.98|1,779,493.54|
|Entertainment expenses|1,234,043.90|1,503,771.42|
|Intermediary fee|1,606,081.53|1,408,255.95|
|Travel expense|268,286.15|294,564.16|
|Administrative expenses|611,089.04|624,088.54|
|Repair charge|394,372.96|353,534.20|
|Water and electricity charges|335,834.38|569,519.97|
|Other amortization|348,472.10|339,187.58|
|Others|5,146,571.33|3,527,957.33|
|Total|26,957,331.77|28,705,983.90|

35 .Financial expenses
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Interest expenses|26,540,177.38|33,090,502.72|
|Less: Interest income|18,885,542.00|6,925,211.14|
|Less: capitalized interest expenses 14|,548,928.60|1,519,728.41|
|Exchange differences|-334,107.73|6,742.52|
|Less: Capitalized exchangedifferences|||
|Others|180,247.31|303,626.16|
|Total|-7,048,153.64|24,955,931.85|

Note：
The amount of current financial expenses is -7,048,153.64Yuan.An decrease of128.24% compared with prior period.The main reason is due to that the interest capitalization has been started in new project.
36.Impairment losses of assets
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|

||||
|-|-|-|
|Ⅰ.Bad debt loss|-4,800,000.00|159,351.00|
|Total|-4,800,000.00|159,351.00|

Note：
The company cooperated with Luofu Hill Tourism Company on Luofu Hill Tourism project in early years.The company instituted legal proceedings against Tourism Company because the Tourism Company failed to carry out the contract which is return of investment funds for many years.According to the operating conditions of the time,the company has made provision for investment fund50% of bad debts for 4.8 million yuan.In the case of Luofu Hill Tourism Company had repeated breach of the contract.The company has filed a lawsuit to the intermediate people's Court of Huizhou City in April 17, 2006.The lawsuit has lasted for ten years.Signed the “implementation of the settlement agreement ”in April 21, 2016.According to the agreement,Luofu Hill Tourism Company has deposit the liquidated damages to the designated account.So far the case has been processed end.Therefore, the provision for bad debts has reversed.
37.Investment income
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Investment income from long- terminvestments under cost method|-63,790.59|-129,692.73|
|Investment income from holdingtrading financial assets|689,000.00|350,000.00|
|Total|625,209.41|220,307.27|

Note：
The company has received 689,000 yuan cash dividends from Shantou SME Financing Guarantee Co., Ltd in current period. 38.Non-operating income
Currency： yuan
|||||
|-|-|-|-|
|Item|Amount for the currentperiod|Amount for the priorperiod|Amount included innon-recurring profit or lossfor the period|
|Gains on penalty|175,149.92|396,437.33|175,149.92|
|Others|5,038,308.02|65,267.79|5,038,308.02|
|Total|5,213,457.94|461,705.12|5,213,457.94|

Note：
The amount of current non-operating income is 5,213,457.94Yuan.An increase of71,029.17%compared with prior period.The main reason is due to receive the litigation claims of lawsuit with Luofu Hill Tourism Company.
39.Non-operating expenses
Currency： yuan
|||||
|-|-|-|-|
|Item|Amount for the currentperiod|Amount for the priorperiod|Amount included innon-recurring profit or lossfor the period|
|Total losses on disposal ofnon-current assets|2,647.50|10,037.32||
|Including: Losses ondisposal of fixed assets|2,647.50|10,037.32|2,647.50|
|Donations to third parties 1|9,500.00|44,000.00|19,500.00|
|Penalty expense||||
|Compensation expense|6,115.17|50.00|6,115.17|
|Others|72,314.73|24,727.83|72,314.73|
|Total|100,577.40|78,815.15|100,577.40|

40.Income tax expenses
(1) Details of income tax expenses
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|

||||
|-|-|-|
|Current tax expense calculatedaccording to tax laws and relevantrequirements|47,293,403.64|68,703,538.14|
|Adjustments to deferred tax|-1,008,716.16|-5,277,246.70|
|Total|46,284,687.48|63,426,291.44|

（2）The process of calculating the income tax based on accounting profit
Currency： yuan
|||
|-|-|
|Item|Incurred in the current year|
|Consolidated profit this year|181,012,686.25|
|Income tax calculated at legal or applicable tax rate|45,253,171.56|
|Impact of various tax rates applicable to subsidiaries 84|8,061.70|
|Impact of non-deductible cost, expense and loss|183,454.22|
|Income taxes|46,284,687.48|

41.Other comprehensive income
Note: Please refer to note 28.
42.Notes to items in the cash flow statements
（1）Other cash receipts relating to operating activities
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Interest income|11,295,056.29|3,702,703.58|
|Cash pledge and security deposits|10,370,363.90|13,400,587.78|
|Security deposit for mortgage|183,644.67|1,624,784.25|
|Others|22,920,758.68|24,232,913.05|
|Total|44,769,823.54|42,960,988.66|

(2) Other cash payments relating to operating activities
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Cash paid to general andadministrative expenses|16,286,386.18|9,992,904.33|
|Cash paid to operating expenses|3,080,233.10|16,924,176.59|
|Cash pledge and security deposits|10,701,125.01|15,151,522.32|
|Property license fee and survey fee 1,|077,699.15|1,156,112.97|
|Others|5,927,462.18|19,045,444.59|
|Total|37,072,905.62|62,270,160.80|

Note：
The amount of current other cash payments relating to operating activities is 37,072,905.62Yuan.An decrease of40.46% compared with prior period.The main reason is due to decreased fees paid cash sales,deposit, margin and other payment.（3）Other cash receipts relating to financing activities
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|The guarantee deposit||2,785,000.00|
|Total||2,785,000.00|

43.Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Currency： yuan
||||
|-|-|-|
|Supplementary Item|Amount for the current period|Amount for the prior period|
|Ⅰ.Reconciliation of net profit to cashflows from operating activities:|--|--|
|Net profit|134,727,998.77|186,404,025.47|

||||
|-|-|-|
|Add：Provision for asset impairment|-4,800,000.00|159,351.00|
|Depreciation of fixed assets,bio-assets, and natural gas|13,626,249.37|13,952,957.67|
|Amortization of intangible assets|254,370.00|276,169.98|
|Amortization of long- term deferredexpense|127,522.43|145,076.40|
|Losses on disposal of fixed assets,intangible assets and other long- termassets(deduct: gains)||9,932.32|
|Losses on scrapping of fixed assets(deduct: gains)|1,934.79|105.00|
|Financial expenses (deduct: gains)|18,699,884.75|28,205,431.12|
|Losses from investments (deduct:gains)|-625,209.41|-220,307.27|
|Decrease in deferred tax assets(deduct: increase)）|1,688,845.85|-5,277,246.70|
|Decrease in inventories (deduct:increase)|298,465,327.85|342,132,988.01|
|Decrease in operating receivables(deduct: increase)|73,591,766.23|-152,329,521.97|
|Increase in opera ting payables(deduct: decrease)|-109,590,709.87|42,427,982.92|
|Net cash flows from operatingactivities|426,167,980.76|455,886,943.95|
|Ⅱ.Investing and financing activitiesthat do not affect cash receipt andpayment|--|--|
|Ⅲ.Net increase in cash and cas hequivalents:|--|--|
|Cash at the end of the period|1,496,687,318.92|966,629,585.33|
|Less: cash at the beginning of theperiod|1,169,756,306.36|670,119,849.03|
|Net increase in cash and cashequivalents|326,931,012.56|296,509,736.30|

（2）Information of cash and cash equivalents
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Ⅰ.Cash|1,496,687,318.92|1,169,756,306.36|
|Including: Cash on hand|48,194.52|54,487.37|
|Bank deposits|1,496,639,124.40|1,169,701,818.99|
|Ⅱ.Closing balance of cash and cashequivalents|1,496,687,318.92|1,169,756,306.36|

44.Ownership or use-right restricted assets
Currency： yuan
||||
|-|-|-|
|Item|Closing balance|The reasons for restriction|
|Monetary fund|6,000,000.00|The minimum amount in theCompany's rent escrow account forthe Company's borrowings.|
|Note receivables|18,153,767.30|mortgaged|
|Inventories|7,492,175.18|mortgaged|

||||
|-|-|-|
|Fixed assets|21,236,886.33|mortgaged|
|Investment property|348,004,609.51|mortgaged|
|Account receivables|82,130,610.91|mortgaged|
|Total|483,018,049.23|--|

45.The items of foreign currency
(1) Details of items of foreign currency
Currency： yuan
|||||
|-|-|-|-|
|Item|Closing balance of foreigncurrency|Exchange rate|Closing balance of RMBconverted|
|Monetary fund||||
|Including：USD|111,931.91|6.7023|750,196.72|
|HKD|10,433,775.15|0.8574|8,945,421.66|
|accounts receivable||||
|HKD|4,905,150.10|0.8574|4,205,479.49|

（2）The illustration of oversea operatingentities，For the significant operating entities,Their should illustrate the significant operating base,functional currency and its selecting base.If the functional currency has changed,illustrating the reason is needed. TheGroup’s significant oversea operating entities are American Great Wall Co., Ltd and Fresh Peak Investment Co., Ltd. American Great Wall Co., Ltd chooses the USD as the its functional currency, for its main operating activities are in the USA; Fresh Peak Investment Co., Ltd. chooses the RMB as its functional currency, for it is a investment company and its main operating activities are in the mainland of China.
Ⅷ.The changes of the scope of consolidation
There were no changes for theGroup’s consolidation scope this year.
Ⅸ.Equities in other entities.
1.Equities in the subsidiaries
（1） The formation of the Group
||||||||
|-|-|-|-|-|-|-|
|Name of thesubsidiary|Main operatingarea|Reg.place|Businessnature|Shareholding proportion（%）||Method ofacquiring|
|||||Direct|Indirect||
|||||||Acquiring|
|Shenzhen|||||||
|||||||through|
|Petrel Hotel|Shenzhen|Shenzhen|Services|68.10%|31.90%||
|||||||establishment|
|Co. Ltd.|||||||
|||||||or investment|
|Shenzhen City||||||Acquiring|
|Property||||||through|
||Shenzhen|Shenzhen|Services|95.00%|5.00%||
|Management||||||establishment|
|Ltd.||||||or investment|
|Shenzhen Zhen||||||Acquiring|
|Tung||||||through|
||Shenzhen|Shenzhen|Services|73.00%|27.00%||
|Engineering||||||establishment|
|Ltd.||||||or investment|
|Shenzhen City|||||||
|||||||Acquiring|
|We Gen|||||||
|||||||through|
|Construction|Shenzhen|Shenzhen|Services|75.00%|25.00%||
|||||||establishment|
|Management|||||||
|||||||or investment|
|Ltd.|||||||
|||||||Acquiring|
|Shenzhen City||||||through|
||Shenzhen|Shenzhen|Services|55.00%|45.00%||
|Car Rental Ltd.||||||establishment|
|||||||or investment|
|Shenzhen|Shenzhen|Shenzhen|Services|70.00%|30.00%|Acquiring|

||||||||
|-|-|-|-|-|-|-|
|Shenfang Car||||||through|
|Park Ltd||||||establishment|
|||||||or investment|
|Shenzhen City||||||Acquiring|
|Shenfang||||||through|
||Shenzhen|Shenzhen|Investment|90.00%|10.00%||
|Investment||||||establishment|
|Ltd.||||||or investment|
|Shenzhen City||||||Acquiring|
|Shenfang Free|||Commecial|||through|
||Shenzhen|Shenzhen||95.00%|5.00%||
|Trade Trading|||trade|||establishment|
|Ltd.||||||or investment|
|Shenzhen City|||||||
|||||||Acquiring|
|SPG Long|||||||
|||||||through|
|Gang|Shenzhen|Shenzhen|Real estate|95.00%|5.00%||
|||||||establishment|
|Development|||||||
|||||||or investment|
|Ltd.|||||||
|Shenzhen|||||||
|Special|||||||
|Economic||||||Acquiring|
|Zone Real||||||through|
||Guangzhou|Guangzhou|Real estate|100.00%|||
|Estate (Group)||||||establishment|
|Guangzhou||||||or investment|
|Property and|||||||
|Estate Co., Ltd.|||||||
|Beijing fresh|||||||
|peak property||||||Acquiring|
|development||||||through|
||Beijing|Beijing|Real estate|75.00%|25.00%||
|management||||||establishment|
|limited||||||or investment|
|company|||||||
|Beijing SPG||||||Acquiring|
|Property||||||through|
||Beijing|Beijing|Services|10.00%|90.00%||
|Management||||||establishment|
|Limited||||||or investment|
|Shenzhen||||||Acquiring|
|ShenWu||||||through|
||Shenzhen|Shenzhen|Services||100.00%||
|Elebator||||||establishment|
|Co.,Ltd||||||or investment|
|Shenzhen Lain||||||Acquiring|
|Hua Industry||||||through|
||Shenzhen|Shenzhen|Services|95.00%|5.00%||
|and Trading||||||establishment|
|Co. Ltd.||||||or investment|
|||||||Acquiring|
|Fresh Peak|||Investment and|||through|
||HongKong|HongKong||100.00%|||
|Holding Ltd.|||management|||establishment|
|||||||or investment|
|||||||Acquiring|
||||Investment|||through|
|Wellam Ltd.|HongKong|HongKong|||100.00%||
||||holding|||establishment|
|||||||or investment|

||||||||
|-|-|-|-|-|-|-|
|||||||Acquiring|
|Shantou SEZ|||||||
|||||||through|
|Wellam Fty|ShanTou|ShanTou|Real estate||100.00%||
|||||||establishment|
|Bldg., Dev. Co.|||||||
|||||||or investment|
|||||||Acquiring|
|Shantou|||||||
|||||||through|
|Huafeng Estate|ShanTou|ShanTou|Real estate|100.00%|||
|||||||establishment|
|Dev.Co|||||||
|||||||or investment|
|||||||Acquiring|
|Great Wall||||||through|
||USA|USA|Real estate|70.00%|||
|Estate Co., Inc||||||establishment|
|||||||or investment|
|||||||Acquiring|
|Fresh Peak|||Investment and|||through|
||HongKong|HongKong||100.00%|||
|Holdings Ltd.|||management|||establishment|
|||||||or investment|
|||||||Acquiring|
|Fresh Peak|||||||
||||Property|||through|
|Investment|HongKong|HongKong|||55.00%||
||||Investment|||establishment|
|Ltd.|||||||
|||||||or investment|
|||||||Acquiring|
||||Investment and|||through|
|Openice Ltd.|HongKong|HongKong||20.00%|80.00%||
||||management|||establishment|
|||||||or investment|
|||||||Acquiring|
|Barenie Co.|||Property|||through|
||HongKong|HongKong||80.00%|||
|Ltd.|||Investment|||establishment|
|||||||or investment|
|||||||Acquiring|
|Keyear|||||||
|||||||through|
|Development|HongKong|HongKong|Investment||100.00%||
|||||||establishment|
|Ltd.|||||||
|||||||or investment|
|Guangzhou|||||||
|||||||Acquiring|
|Huangpu|||||||
|||||||through|
|Xizun real|GuangZhou|GuangZhou|Real estate||100.00%||
|||||||establishment|
|estate limited|||||||
|||||||or investment|
|company|||||||
|Fresh Peak|||||||
|Real Estate||||||Acquiring|
|Dev.||||||through|
||WuHan|WuHan|Real estate||100.00%||
|Construction||||||establishment|
|(Wuhan) Co.||||||or investment|
|Ltd.|||||||
|Shantou|||||||
|||||||Subsidiary|
|Special|||||||
|||||||acquired|
|Economic|||||||
|||||||through|
|Zone Real|Shantou|Shantou|Real estate||100.00%||
|||||||emerge under|
|Estate (Group)|||||||
|||||||non-common|
|Songshan|||||||
|||||||control|
|Property and|||||||

||||||||
|-|-|-|-|-|-|-|
|Estate Co., Ltd.|||||||
|Shenzhen|||||||
|||||||Acquiring|
|Shenfang|||||||
||||Commecial|||through|
|Department|Shenzhen|Shenzhen||95.00%|5.00%||
||||trade|||establishment|
|Store Co. Ltd.*|||||||
|||||||or investment|
|①|||||||
|||||||Acquiring|
|Shenzhen|||||||
|||||||through|
|CyberPort Co.,|Shenzhen|Shenzhen|Consultant|70.00%|||
|||||||establishment|
|Ltd *②|||||||
|||||||or investment|
|Shenzhen City||||||Acquiring|
|SPG Bao An||||||through|
||Shenzhen|Shenzhen|Real estate|95.00%|5.00%||
|Development||||||establishment|
|Ltd.* ③||||||or investment|
|Shenzhen Real|||||||
|||||||Acquiring|
|Estate|||||||
||||Integrated|||through|
|Consolidated|Shenzhen|Shenzhen||100.00%|||
||||Services|||establishment|
|Service Co.,|||||||
|||||||or investment|
|Ltd *④|||||||
|Shenzhen Shen||||||Acquiring|
|Fang Industrial||||||through|
||Shenzhen|Shenzhen|Investment|100.00%|||
|Development||||||establishment|
|Co., Ltd.* ⑤||||||or investment|
|Shenzhen Tefa|||||||
|||||||Acquiring|
|Real Estate|||||||
|||||||through|
|Consolidated|Shenzhen|Shenzhen|Services|100.00%|||
|||||||establishment|
|Service Co.,|||||||
|||||||or investment|
|Ltd.* ⑥|||||||
|||||||Acquiring|
|Bekaton|||||||
|||||||through|
|Property|Australia|Australia|Real estate|60.00%|||
|||||||establishment|
|Limited *⑦|||||||
|||||||or investment|
|Canada Great||||||Acquiring|
|Wall||||||through|
||Canada|Canada|Real estate||60.00%||
|( Vancouver) *||||||establishment|
|⑦||||||or investment|
|||||||Acquiring|
|Paklid Limited|||Commecial|||through|
||HongKong|HongKong||100.00%|||
|*⑦|||trade|||establishment|
|||||||or investment|
|Shenzhen City|||||||
|Shenfang||||||Acquiring|
|Construction|||Commecial|||through|
||Shenzhen|Shenzhen||100.00%|||
|and Decoration|||trade|||establishment|
|Materials Ltd *||||||or investment|
|⑧|||||||
|Shenzhen||||||Acquiring|
|ZhongGang|||Integrated|||through|
||Shenzhen|Shenzhen||68.00%|||
|Haiyan|||Services|||establishment|
|Enterprise Ltd.||||||or investment|

||||||||
|-|-|-|-|-|-|-|
|*⑨|||||||
|||||||Acquiring|
|Shenzhen Xing|||||||
||||Commecial|||through|
|Dongfang|Shenzhen|Shenzhen||100.00%|||
||||trade|||establishment|
|Store Ltd.* ⑩|||||||
|||||||or investment|
|Guangdong|||||||
|Province||||||Acquiring|
|Fengkai Lain|Guangdongfen|Guangdongfen||||through|
||||Manufacture||90.00%||
|Feng Cement|gkai|gkai||||establishment|
|Manufacturing||||||or investment|
|Co., Ltd *⑪|||||||

The illustration the difference between the shareholding proportion and voting right in subsidiary.:
*① Shenzhen Shenfang Department Store Co. Ltd
The shareholders meeting held on 29 October 2007 passed the resolution to terminate business, liquidation and formed a group to carry out the liquidation procedures. The liquidation group issued a notice of liquidation on 7 December 2007. According to the principle of “Enterprise Accounting Standards No.33- the Consolidation Financial Statement ”, the Store will not be included in theCompany’s consolidated financial statement. The book value of the investment account of the Company is zero.*② Shenzhen CyberPort Co., Ltd
The shareholders meeting held on 12 May 2008 passed the resolution to terminate business, liquidation and formed a group to carry out the liquidation procedures. The liquidation group issued a notice of liquidation on 5 December 2008. According to the principle of “Enterprise Accounting Standards No.33- the Consolidation Financial Statement ”, the corporation will not be included in theCompany’s consolidated financial statement. The book value of the investment account of the Company is zero.*③ Shenzhen City SPG Bao An Development Ltd.
The shareholders meeting held on 18 September 2009 passed the resolution to terminate business, liquidation and formed a group to carry out the liquidation procedures. According to the principle of “Enterprise Accounting Standards No.33- the Consolidation Financial Statement”, the Store will not be included in theCompany’s consolidated financial statements.*④ Shenzhen Real Estate Consolidated Service Co., Ltd.
The operating period of this corporation is from 26 January 1983 to 28 August 1999. And this Company has ceased operations for many years. And the corporation had been terminated its licenses by law on 8 February 2002 because of failing to take part in annual inspection.
*⑤ Shenzhen Shen Fang Industrial Development Co., Ltd
The operating period of this corporation is from 3 October 1993 to 3 October 1998. And this Company has ceased operations for many years. And the corporation had been terminated its licenses by law on 8 February 2002 because of failing to take part in annual inspection.
*⑥ Shenzhen Tefa Real Estate Consolidated Service Co., Ltd
The operating period of this corporation is from 7 March 1983 to 10 April 1995. And this company has ceased operations for many years. And the corporation had been terminated its licenses by law in 2004 because of failing to take part in annual inspection.
*⑦ Bekaton Property Limited ,Canada Great Wall ( Vancouver)and Paklid Limited
These 3 subsidiaries were set up overseas in early times. The board of directors passed a resolution to terminate thecorporations’ business on Dec.13, 2000.
*⑧ Shenzhen City Shenfang Construction and Decoration Materials Ltd
The operating period of this corporation is from 1 January 1984 to 6 July 2004. And this company has ceased operations for many years. And the corporation had been terminated its licenses by law on February 8, 2002 because of failing to take part in annual inspection.
*⑨Shenzhen ZhongGang Haiyan Enterprise Ltd
The operating period of this corporation is from 16 October 1984 to 16 October 2004. And this company has ceased operations
for many years. And the corporation had been terminated its licenses by law in 1999 because of failing to take part in annual
inspection.
*⑩ Shenzhen Xin Dongfang Store Ltd
The operating period of this corporation is from 7 June 1983 to 7 June 1998. And this company has ceased operations for many
years. And the corporation had been terminated its licenses by law at 10 January 2001 because of failing to take part in annual inspection.
*⑪ Guangdong Province Fengkai Lian Feng Cement Manufacturing Co., Ltd
The total assets (including tangible and intangible assets) of the corporation were auctioned for debt repayment at 22 January 2006. The Company's investment in the company's book value is zero.
Except for*①,*②,*③, the above subsidiaries which are not included the company’s consolidated financial statement had ceased operations for many years. And the entities of the corporations didn’t exist. And the Company has no control over itssubsidiaries’ businesses. According to the principle of “Enterprise Accounting Standards No.33- the Consolidation Financial Statement”, the corporation will not be included in the Company’s consolidated financial statement. The book value of the investment account of the Company is zero. The following are the details.
|||||||
|-|-|-|-|-|-|
|Investee|AccountingMethod|Investmentcost|Openingbalance|Changes|Closing balance|
|Shenzhen Shen Fang IndustrialDevelopment Co., Ltd|CostMethod|4,500,000.00 4,5|00,000.00 --||4,500,000.00|
|Shenzhen ZhongGang HaiyanEnterprise Ltd|CostMethod|12,940,900.00 1|2,940,900.00 --||12,940,900.00|
|Shenzhen Real Estate ConsolidatedService Co., Ltd|CostMethod|5,958,305.26 5,9|58,305.26 --||5,958,305.26|
|Paklid Limited|CostMethod|201,100.00|201,100.00|--|201,100.00|
|Bekaton Property Limited|CostMethod|906,630.00|906,630.00|--|906,630.00|
|Shenzhen Tefa Real EstateConsolidated Service Co., Ltd|CostMethod|8,180,003.63 8,1|80,003.63 --||8,180,003.63|
|Shenzhen Xing Dongfang Store Ltd C|ostMethod|18,500,000.00 1|8,500,000.00 --||18,500,000.00|
|Shenzhen City Shenfang Constructionand Decoration Materials Ltd|CostMethod|2,680,000.00 2,6|80,000.00 --||2,680,000.00|
|Shenzhen Shenfang Department StoreCo. Ltd|CostMethod|10,000,000.00 1|0,000,000.00 --||10,000,000.00|
|Shenzhen CyberPort Co., Ltd|CostMethod|14,000,000.00 7,|613,507.96 --||7,613,507.96|
|Shenzhen City SPG Bao AnDevelopment Ltd|CostMethod|20,000,000.00 2|0,379,525.68 --||20,379,525.68|
|Shantou Xinfeng Building|CostMethod|68,731,560.43 5|8,547,652.25 --||58,547,652.25|
|Guangdong Province Fengkai LainFeng Cement Manufacturing Co., Ltd|CostMethod|121,265,000.00|56,228,381.64 --||56,228,381.64|
|Total||287,863,499.32|206,636,006.42|--|206,636,006.42|

 (Continued)
||||||
|-|-|-|-|-|
|Investee|Provision forimpairment|Increased currentyear provi sionfor impairment|Current year cashdividends|Remarks|
|Shenzhen Shen Fang IndustrialDevelopment Co., Ltd|4,500,000.00|--|--||
|Shenzhen ZhongGang HaiyanEnterprise Ltd|12,940,900.00|--|--||
|Shenzhen Real Estate ConsolidatedService Co., Ltd|5,958,305.26|--|--||

|||||
|-|-|-|-|
|Paklid Limited|201,100.00|--|--|
|Bekaton Property Limited|906,630.00|--|--|
|Shenzhen Tefa Real EstateConsolidated Service Co., Ltd|8,180,003.63|--|--|
|Shenzhen Xing Dongfang Store Ltd|18,500,000.00|--|--|
|Shenzhen City Shenfang Constructionand Decoration Materials Ltd|2,680,000.00|--|--|
|Shenzhen Shenfang Department Store Co.Ltd|10,000,000.00|--|--|
|Shenzhen CyberPort Co., Ltd|--|--|--|
|Shenzhen City SPG Bao AnDevelopment Ltd|--|--|--|
|Sahntou Xinfeng Building|58,547,652.25|--|--|
|Guangdong Province Fengkai LainFeng Cement Manufacturing Co., Ltd|56,228,381.64|--|--|
|Total|178,642,972.78 --||--|

（2）Significant non-wholly owned subsidiaries
Currency： yuan
||||||
|-|-|-|-|-|
|Name of subsidiary|Minority interestshare proportion (%)|Current year profitand lo ss attributableto minority interestshareholders|Current yeardividends distributedto minority interestshareholders|Minority interestequity balance at theend of the year|
|Great Wall EstateCo., Inc|30.00%|-33,122.74||-22,611,622.77|
|Fresh PeakInvestment Ltd|45.00%|||-104,325,227.06|
|Barenie Co. Ltd.|20.00%|||-2,025,186.78|

(3) The main financial information of significant non-wholly owned subsidiary
Currency： yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Nameofsubsidiary|Closing balance||||||Opening balance||||||
||Currentassets|Non-currentassets|TotalAssets|Currentliabilities|Non-currentliabilities|Totalliabilities|Currentassets|Non-currentassets|TotalAssets|Currentliabilities|Non-currentliabilities|Totalliabilities|
|Great||||102,96||102,96||||100,21|||
||749,91|18,381,|19,131,|||||||||100,21|
|Wall||||9,245.8||9,245.8|841,64|17,890,|18,731,||||
||4.93|367.07|282.00|||||||7,332.1||7,332.1|
|Estate||||8||8|3.94|114.20|758.14||||
|||||||||||2||2|
|Co., Inc|||||||||||||
|Fresh||||||||||254,69|||
||220,03||244,82|254,71||254,71|220,03||244,82|||254,69|
|Peak||24,793,||||||24,793,|||||
||0267.7||3,474.0|4,402.8||4,402.8|0,060.2||3,266.6|4,603.7||4,603.7|
|Investm||206.35||||||206.35|||||
||3||8|5||5|7||2|8||8|
|ent Ltd.|||||||||||||
|Barenie||||||||||32,758,096.84|||
|||30,373,|30,374,|32,760,||32,760,||30,373,|30,374,|||32,758,|
|Co.|999.12||||||973.38||||||
|||713.87|712.99|643.34||643.34||713.87|687.25|||096.84|
|Ltd.|||||||||||||

Currency： yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name ofsubsidiary|Amount in current year||||Amount in previous year||||
||Operating|Net profit|Total of|Cash flow|Operating|Net profit|Total of|Cash flow|

||||||||||
|-|-|-|-|-|-|-|-|-|
||income||comprehensive income|fromoperatingactivities|income||comprehensiveincome|fromoperatingactivities|
|Great WallEstate Co.,Inc|286,203.33|-110,409.13|-2,352,389.90|-110,476.29|-63,790.59|-8,658.47 11|0,519.48|110,476.29|
|Fresh PeakInvestmentLtd.||-762.09-762.1-762.09762.09||||-11-1,848.78,|||
|Barenie Co.Ltd.||11-2,520.76||||-1,847.08|||

Othernote：
（1）Insignificant joint ventures or associated enterprises
Currency： yuan
||||
|-|-|-|
|Item|Closing balance/Incurred this year|Opening balance/Incurred last year|
|Joint ventures：|--|--|
|Total investment book value|29,441,800.59|29,441,800.59|
|Totals of the following itemscalculated per respective shareholdingproportion|--|--|
|Associated enterprises：|--|--|
|Total investment book value|270,179.54|295,252.56|
|Totals of the following itemscalculated per respective shareholdingproportion|--|--|
|--Net profit|-63,790.59|-129,692.73|

*1All of theGroup’s joint ventures are insignificant. For details of the joint ventures,including:
1）Guangdong province Huizhou Luofu Hill Mineral Water Co.,Ltd
The operting period of the company was form June 5, 1991 to June 4, 2001. And the company had ceased operations because of operating loss for many years. And the Company had been terminated its licenses by law at July 6, 2001 because it failed to pass the annual inspection. Besides, the corporation stopped preparing the financial statement. As of the end of the year, the book value of the investment account of the Company is zero. According to the joint venture agreement, the Companydidn’t have the obligation to bear the additional loss.
2）Fengkai Xinghua Hotel
The FengKai XingHua Hotel was announced bankruptcy by the Guangdong Province Zhaoqing City second-middle intermediatePeoples’ court with the document (2002) ZHFJPZ No.2. And the corporation had finished the bankruptcy procedure. As of the end of the year, the book value of the investment account of the Company is zero. According to the joint venture agreement, the Companydidn’t have the obligation to bear the additional loss.
3）Jiangmen Xinjian Real Estate Co. Ltd.,Xi’an Fresh Peak Building Co. Ltd, DongYi Property Co., Ltd
The above corporations were the joint ventures set up with the local partners for the properties developing projects. Consider the projects had been stopped, and the joint ventures had closed operating activities for many years with no preparation of financial statements. Already the corresponding provision for the investment of these joint ventures was accrued. Refer to Note 6.10 for details.
*2All associated enterprises of the Group are insignificant. For details of associated enterprises, please refer to note 6.10, including:
1）Shenzhen Runhua Automobile Trading Co., Ltd
The operating period of this corporation was form Feb 24, 1992 to Feb 24, 1997, and it had ceased operations because of
operating loss for many years. Besides, it had been terminated its licenses by law because it failed to pass the annual inspection
and no financial statement was prepared afterwards. As the end of the year, the book value of the investment account of the
company is zero. According to the associate agreement, the companydidn’t have the obligation to bear the additional loss.
2）Shenzhen Dongfang New World Store Co., Ltd
The operating period of this corporation was from June 7, 1993 to June 7, 1998, and the company had ceased operations because of operating loss for many years. And the company had been terminated its licenses by law at Jan 10, 2001 because it failed to pass the annual inspection. Besides, the company stopped making the financial statement. At Dec 31, 2010, the book value of the investment account of the company is zero. According to the associate agreement, the companydidn’t have the obligation to bear the additional loss.
（2）The excess losses of the joint ventures or associated enterprises incurred.
Currency： yuan
|||||
|-|-|-|-|
|Name of the joint venturesor associated enterprises|Accumulated unrecognizedlosses as of the end of lastyear|Unrecognized losses thisyear (or shared net pro fitthis period)|Accumulated unrecognizedlosses as of the end of thisperiod|
|Shenzhen Fresh Peakproperty consultant Co. Ltd|581,211.71||581,211.71|

Ⅹ.Related party relationships and transactions
1.Parent of the Company
|||||||
|-|-|-|-|-|-|
|Name of theparent|Place ofincorporation|Business Nature R|egistered capital|Proportion of theCompany ’ sownershipinterest held bythe parent|Proportion of theCompany ’ svoting right heldby the parent (%)|
|Shenzhen||Investment, Real||||
||Guangdong|||||
|Investment||estate||||
||province||RMB 21.45 billion|63.55%|63.55%|
|Shareholding Co.||development,||||
||Shenzhen|||||
|Ltd||Guarantee||||

Description of the parent company
The ultimate control of the enterprise is the Shenzhen SASAC.
2.Subsidiaries of the Company
Please refer to Note 9.1.
3.Associates and joint ventures of the entity
Please refer to Note 9.3–Equities in joint venture or associated enterprises
The company's related party transactions in current period,or other joint ventures or associate with the balance of the company's related party transactions in priorperiod.：
|||
|-|-|
|Name of other related party|Relationship between other related parties and theCompany|
|Shenzhen Jian'an Group Co., Ltd.|The same controlling shareholders|

4. Other related parties of the Company
|||
|-|-|
|Name of other related party|Relationship between other rel ated parties and theCompany|
|Shenzhen Jian'an Group Co., Ltd.|The same controlling shareholders|

5.Related party transactions
（1）Association entrusted management / contracting and Commission Management / Outsourcing
Association entrusted management / contracting and CommissionManagement：
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Name of maincontractissuing party|Name ofcontractor|Type of assetsundercontracting|Reception dateofcontracting|Expiration dateofcontracting|Basis ofpricing ofcontractingincome|Contractingincomerecognized inthe currentperiod|
|Shenzhen|Shenzhen Zhen||||||
|||Construction|2012-6-1||Open bidding|2,443,171.86|
|Jian'an Group|Tung||||||

|||
|-|-|
|Co., Ltd.|Engineering|
||Ltd|

（2） Compensation for key management personal
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|The remuneration of the member of|||
|board,supervisor,and high- ranking|2,380,000.00|2,440,000.00|
|executive|||

6.Amounts due from / to related parties
（1）Amounts due from related party
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Item|Related party|Closing balance||Opening balance||
|||Carryingamount|Bad debtprovision|Carryingamount|Bad debtprovision|
|Accounts|Accounts|||||
|receivable：|receivable：|||||
||Shenzhen Fresh|||||
||Peak property|||||
|||939,979.58||1,137,877.25||
||consultant|||||
||Co.,Ltd|||||
||Total|939,979.58||1,137,877.25||
|Other|Other|||||
|receivables：|receivables：|||||
||Guangdong|||||
||Province Huizhou|||||
||Luofu Hill|10,465,168.81||10,465,168.81|10,465,168.81|
||Mineral Water|||||
||Co., Ltd|||||
||Shenzhen Runhua|||||
||Automobile|3,072,764.42||3,072,764.42|3,072,764.42|
||Trading Co., Ltd|||||
||Canada|||||
||GreatWall|||||
|||89,035,748.07||89,035,748.07|89,035,748.07|
||（ Vancouver ）|||||
||Co. ,Ltd|||||
||Bekaton Property|||||
|||12,559,290.58||12,559,290.58|12,559,290.58|
||Limited|||||
||Paklid Limited|18,997,984.22||18,446,223.54|18,443,271.41|
||Shenzhen|||||
||Shenfang|||||
|||237,648.82||237,648.82|189,179.82|
||Department Store|||||
||Co. Ltd.|||||
||Shenzhen Real|||||
||Estate|||||
|||1,086,487.22||1,086,487.22|927,136.22|
||Consolidated|||||
||Service Co., Ltd.|||||
||Shenzhen City|||||
||Shenfang|||||
|||8,327,180.71||8,327,180.71|8,327,180.71|
||Construction and|||||
||Decoration|||||

|||||
|-|-|-|-|
|Materials Ltd.||||
|Shenzhen||||
|RongHua JiDian|475,223.46|475,223.46||
|Co.,Ltd||||
|Xi’an Fresh Peak||||
|property||||
||8,419,205.19|8,419,205.19||
|management&||||
|Trading Co.,Ltd||||
|Total|152,676,701.50|152,124,940.82|143,019,740.04|

（2）Amounts due to related party
Currency： yuan
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Other payables：|Other payables：|||
||Shenzhen Tefa Real Estate|||
||Consolidated Service Co.,|598,012.16|598,012.16|
||Ltd.|||
||Shenzhen Shen Fang|||
||Industrial Developm ent|1,534,854.91|1,534,854.91|
||Co., Ltd|||
||Shenzhen ZhongGang|||
|||135,853.52|135,853.52|
||Haiyan Enterprise Ltd.|||
||Shenzhen Dongfang New|||
|||902,974.64|902,974.64|
||world store Co., Ltd|||
||Shenzhen Xin Dongfang|||
|||1,394,704.21|1,394,704.21|
||Store Ltd.|||
||Guangdong Province|||
||Fengkai Lain Feng Cement|1,867,348.00|1,867,348.00|
||Manufacturing Co., Ltd|||
||Shenzhen Cyber Port Co.,|||
|||7,964,749.26|7,964,749.26|
||Ltd|||
||Shenzhen Shenfang Group|||
|||20,093,445.07|20,093,445.07|
||BaoAn Developing Co.,Ltd|||
||Shenzhen Investment|||
|||28,848,819.24|28,848,819.24|
||Holding Co.,Ltd|||
||Total|63,340,761.01|63,340,761.01|
|Interest payable:|Interest payable:|||
||Shenzhen Investment|||
|||16,535,277.94|16,535,277.94|
||Holding Co.,Ltd|||
||Total|16,535,277.94|16,535,277.94|

Ⅺ.Contingency and commitment
1、Significant commitment
Significant commitment affair at date of balance sheet.
1.Significant commitment
||||
|-|-|-|
|Item|Closing balance(Currency ：yuan)|O pening balance(Currency ：yuan)|
|Capital commitments that have beenentered into but have not beenrecognized in the financial statements|953,295,908.98|697,895,950.68|
|Total|953,295,908.98|697895950.68|

2.Fulfillment progress of previous commitments
The amount of significant outsourcing contracts is RMB78,317,065.18which was paid during the report period and has been entered into the prior period but has not been recognized in the financial statements.
2.Contingencies
Contingencies arising from pending litigations or arbitrations and their financial effects
Xi’an project Lawsuit
Xi’an Fresh Peak Holding limited company (hereinafter referred to as “Fresh Peak
Company”) was sino-foreign joint venture set up in Xi’an city. The shareholder of the Fresh Peak Company– Hongkong Fresh Peak Co., Ltd was the wholly owned subsidiary of the company. And the Hongkong Fresh Peak Co., Ltd contributed84% of the Fresh PeakCompany’s share- capital in cash. AndXi’an trade building which was the enterprise under theXi’an Joint Commission on Commerce and Trade contributed16% of the Fresh PeakCompany’s share- capital with the land-use right. The core business was property development. And the project wasXi’an Trade Building. The project was started on 1995-11-28. But the project had been stopped in 1996 because of the two parties differences on the operating policy of the project. In 1997, theXi’an government withdrew the Xi'an Fresh Peak investment project compulsively and assigned the project toXi’an Business Tourism Co., Ltd (hereinafter referred to as “Business Tourism Company”). But the two parties had insulted a lawsuit on compensation. The ShanXi Province High Peoples Court made a judgement “(2000) SJ-CZ No.25”. The judgement was as follows: 1. Business Tourism Company had to pay for the compensation Rmb 36,620 thousand toXi’an Fresh Peak Company after the judgment entering into force. If the Business Tourism Company failed to pay in time, it had to pay double debt interests toXi’an Fresh Peak Company. 2.Xi’an Joint Commission on Commerce had jointly and severally obligation of the interests of the compensation.
Until 31 December 2011, the amount of RMB 15,201,000.00 had been called back. Because of Fresh Peak Company ’s application, ShanXi Province High Peoples Court resumed the execution on September 5, 2011. Now the case is proceeding and there was no any new substantive progress in the reporting period.
As at 30 Jun 2016, the book value of the investment ofXi’an Fresh Peak Company was RMB 12,166,897.84. The provision for investment was RMB 20,673,831.77. And the amount of debt was RMB 8,419,205.19.
Ⅻ.Events after Balance Sheet Date
Profit distribution
Currency： yuan
|||
|-|-|
|Profits and dividends to be distributed|0|
|Profits and dividends declared and approved by thereview|0|

Ⅷ.Others
The company cooperated with Luofu Hill Tourism Company (hereinafter referred to as “Tourism Company”) on Luofu Hill Tourism project in early years. The company instituted legal proceedings against Tourism Company because the Tourism Company failed to carry out the agreement. The basic situation of lawsuit See company "2015 Annual Report", "IX Financial Reporting"10 contingency1 Liabilities and financial impact of pending litigation or arbitration ②the lawsuit of Luofu Hill Tourism Company.
Since2015，After repeated consultations with executed person.Sighed the<implementation of the settlementagreement> in April 21, 2016.The case execution has been terminate in the debtor to pay 18 million yuan.All the debts are fulfilled according to (2007) No. 192 Yue Gao Fa Min Er Zhong Zi "Civil Judgment" after all payments of 18 million has received.So far the case has been processed end.
XIV.Notes to Items in the Financial Statements of the Parent Company
1、Accounts receivable
（1） Accounts receivable by categories
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Category|Closing balance|||Opening balance|||
||Carrying amount|Bad debt|Book|Carrying|Bad debt provision|Book|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||provision||value am|ount||||value|
||Amount|(%)|Amount|(%)||Amount|(%)|Amount|(%)||
|Accountsreceivable ofwhich provisionfor bad debts is ofindividuallyinsignificant|12,057,456.26|100.00%|6,968,694.02|57.80%|5,088,762.24|16,381,369.25|100.00%|6,968,694.02|42.54%|9,412,675.23|
|Total|12,057,456.26||6,968,694.02|57.80%|5,088,762.24|16,381,369.25|100.00%|6,968,694.02|42.54%|9,412,675.23|

（2）Bad debt provision, recovery or reverse
The provision amount of bad debt is RMB 0.00 Yuan.;Recovery or reverse for bad debts Amount is RMB0.00.
（3）Top 5 entities with the largest balances of accounts receivable
|||||||
|-|-|-|-|-|-|
|Name of entity|Relationship withthe Group|Amount|Proportion ofthe amount tothe total AR(%)|Age|Provision amount|
|Corporation No.1|Un-related party|1,948,071.96|16.16%|More than5 year||
|Individual No.1|Un-related party|1,200,000.00|9.95%|More than5 year|1,200,000.00|
|Corporation No.2|Related party|1,161,975.35|9.64%|More than5 year||
|Individual No.2|Un-related party|876,864.11|7.27%|More than5 year|876,864.11|
|Individual No.3|Un-related party|864,550.68|7.17%|More than5 year|791,467.78|
|Total||6,051,462.10|||2,868,331.89|

2.Other receivables
(1) Other receivables by categories
Currency： yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closing balance|||||Opening balance|||||
||Carrying amount||Bad debtprovision||Bookvalue|Carryingamount||Bad debt provision||Bookvalue|
||Amount|(%) A|mount|(%)||Amount|(%)|Amount|(%)||
|Other receivablesof whichprovision for baddebts is of|1,529,050,217.99|98.08%|794,718,692.30|51.97%|734,331,525.69|1,473,146,864.58|98.55%|802,518,692.30|54.48%|670,628,172.28|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|individuallysignificant|||||||||||
|Other receivablesof whichprovision for baddebts is ofindividuallyinsignificant|29,933,356.72|1.92%|12,787,916.94|42.72%|17,145,439.78|21,628,190.82|1.45%|9,787,916.94|45.26%|11,840,273.88|
|Total|1,558,983,574.71|100.00%|807,506,609.24|51.80%|751,476,965.47|1,494,775,055.40|100.00%|812,306,609.24|54.34%|682,468,446.16|

Other receivables of which provision for bad debts is of individuallysignificant：
Currency： yuan
||||||
|-|-|-|-|-|
|Other receivables Bycompany|Closing balance||||
||Other receivables|Bad debt provision|proportion|Reason for makeprovision of baddebts|
|Other receivablesbetween subsidiariesthat are included inconsolidated statement|1,392,126,337.04|658,127,505.34|47.27%|For other receivableswhich the age is toolong or lessrecoverable,provisionfor bad debts isaccrued individually|
|Other receivablesbetween subsidiariesthat are excluded inconsolidated statement|112,667,138.84|112,667,138.84|100.00%|For other receivableswhich the age is toolong or lessrecoverable,provisionfor bad debts isaccrued individually|
|Others|24,256,742.11|23,924,048.12|98.63%|For other receivableswhich the age is toolong or lessrecoverable,provisionfor bad debts isaccrued individually|
|Total|1,529,050,217.99|794,718,692.30|51.97%|--|

（2）Bad debt provision, recovery or reverse
The provision amount of bad debt is RMB 0.00 Yuan.;Recovery or reverse for bad debts amount is RMB4,800,000.00. Including the significant recovery or reverse for bad debtsamount：
Currency： yuan
||||
|-|-|-|
|Name of Entity|Recovery or reverse amount|Means of Recovery|
|Luofu Hill Tourism Company|4,800,000.00|Monetary fund|
|Total|4,800,000.00|--|

（3）Details of other accounts receivable classified by nature.
Currency： yuan
||||
|-|-|-|
|Nature|Closing balance|Opening balance|
|Other receivables between subsidiariesthat are included in consolidatedstatement|1,392,126,337.04|1,332,335,032.12|
|Other receivables between subsidiariesthat are excluded in consolidatedstatement|117,216,795.88|122,318,455.59|

||||
|-|-|-|
|Others|49,640,441.79|40,121,567.69|
|Total|1,558,983,574.71|1,494,775,055.40|

（5）Top 5 entities with the largest balances of other receivables
Currency： yuan
|||||||
|-|-|-|-|-|-|
|Name of Entity|Relationship withthe Group|Amount|Age|Proportion rate tothe total balanceof otherreceivable|Closing balanceof provision forbad debt|
|Fresh Peak||||||
||Subsidiary|11,135,073.92|Within 1 year|0.71%||
|Enterprise Co., Ltd||||||
|Fresh Peak|Subsidiary|||||
|||423,758.43|1-2 years|0.03%||
|Enterprise Co., Ltd||||||
|Fresh Peak|Subsidiary|||||
|||1,351,583.43|2-3 years|0.09%||
|Enterprise Co., Ltd||||||
|Fresh Peak|Subsidiary|||||
|||514,090,700.20|Over 3years|32.98%|508,377,320.74|
|Enterprise Co., Ltd||||||
|Shantou Huafeng|Subsidiary|||||
|Estate||||||
|||116,224,064.63|Within 1 year|7.46%||
|Development Co.,||||||
|Ltd||||||
|Shantou Huafeng|Subsidiary|||||
|Estate||||||
|||31,300,510.98|1-2year|2.01%||
|Development Co.,||||||
|Ltd||||||
|Shantou Huafeng|Subsidiary|||||
|Estate||||||
|||267,670,000.00|2-3 years|17.17%||
|Development Co.,||||||
|Ltd||||||
|Shenzhen|Subsidiary|||||
|ShenFang Group||||||
|LongGang||200,416,930.19|Within 1 year|12.86%||
|Development Co.,||||||
|Ltd||||||
|American Great|Subsidiary|||||
|||101,379,954.81|Over 3 years|6.50%|101,379,954.81|
|Wall Co., Ltd||||||
|Canada Great|Subsidiary|||||
|Wall( Vancouver )||89,035,748.07|Over 3 years|5.71%|89,035,748.07|
|Co., Ltd||||||
|Total|--|1,333,028,324.66|--|85.51%|698,793,023.62|

 3.Long-term equity investments
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
||Book balance|Provision forimpairment|Book value B|ook balance|Provision forimpairment|Book value|
|Investment insubsidiaries|437,984,380.71|121,914,591.14|316,069,789.57|437,984,380.71|121,914,591.14|316,069,789.57|
|Investment inassociates andjoint ventures|22,217,231.21|21,947,051.67|270,179.54|22,281,021.80|21,947,051.67|333,970.13|
|Total|460,201,611.92|143,861,642.81|316,339,969.11|460,265,402.51|143,861,642.81|316,403,759.70|

（1）Investment in subsidiaries
Currency： yuan
||||||||
|-|-|-|-|-|-|-|
|Name ofinvestee|Openingbalance|Curr. yearIncrease|Curr. yeardecrease|Closingbalance|Curr. yearimpairmentprovision|Closingbalance ofimpairmentprovision|
|Shenzhen CityPropertyManagementLtd.|12,821,791.52|||12,821,791.52|||
|Shenzhen PetrelHotel Co. Ltd.|20,605,047.50|||20,605,047.50|||
|Shenzhen CityShenfangInvestment Ltd.|9,000,000.00|||9,000,000.00|||
|Fresh PeakEnterprise Ltd.|556,500.00|||556,500.00|||
|Fresh PeakZhiye Co., Ltd.|22,717,697.73|||22,717,697.73|||
|ShenzhenSpecialEconomic ZoneReal Estate(Group)GuangzhouProperty andEstate Co., Ltd.|20,000,000.00|||20,000,000.00|||
|Shenzhen ZhenTungEngineering Ltd|11,332,321.45|||11,332,321.45|||
|American GreatWall Co., Ltd|1,435,802.00|||1,435,802.00|||
|Shenzhen CityShenfang FreeTrade TradingLtd.|4,750,000.00|||4,750,000.00|||
|Shenzhen CityHua ZhanConstructionManagementLtd.|6,000,000.00|||6,000,000.00|||
|Shenzhen CityCar Rental Ltd.|6,495,225.00|||6,495,225.00|||
|QiLu Co.,Ltd|212,280.00|||212,280.00|||
|BeijingShenfangPropertyManagementCo., Ltd.|500,000.00|||500,000.00|||
|Shenzhen LainHua Industryand TradingCo., Ltd.|13,458,217.05|||13,458,217.05|||
|Shenzhen CitySPG Long GangDevelopmentLtd.|30,850,000.00|||30,850,000.00|||

|||||
|-|-|-|-|
|Beijing FreshPeak PropertyDevelopmentManagementLimitedCompany|64,183,888.90|64,183,888.90||
|ShenzhenShenfang CarPark Ltd.|29,750,000.00|29,750,000.00||
|Shantou CityHuafeng RealEstateDevepment Co.,Ltd|30,000,000.00|30,000,000.00||
|Shenzhen ShenFang IndustrialDevelopmentCo., Ltd|4,500,000.00|4,500,000.00|4,500,000.00|
|ShenzhenZhongGangHaiyanEnterprise Ltd.|12,940,900.00|12,940,900.00|12,940,900.00|
|Shenzhen RealEstateConsolidatedService Co.,Ltd.|5,958,305.26|5,958,305.26|5,958,305.26|
|Paklid Limited|201,100.00|201,100.00|201,100.00|
|BekatonPropertyLimited|906,630.00|906,630.00|906,630.00|
|Shenzhen TefaReal EstateConsolidatedService Co.,Ltd.|8,180,003.63|8,180,003.63|8,180,003.63|
|Shenzhen XinDongfang StoreLtd.|18,500,000.00|18,500,000.00|18,500,000.00|
|Shenzhen CityShenfangConstructionand DecorationMaterials Ltd.|2,680,000.00|2,680,000.00|2,680,000.00|
|ShenzhenShenfangDepartmentStore Co. Ltd.|9,500,000.00|9,500,000.00|9,500,000.00|
|ShenzhenCyberPort Co.,Ltd|12,401,018.42|12,401,018.42||
|ShenZhenShenFangBaoAnDevelopmentCo., Ltd|19,000,000.00|19,000,000.00||
|Shantou FreshPeak Building|58,547,652.25|58,547,652.25|58,547,652.25|

|||||
|-|-|-|-|
|Total|437,984,380.71|437,984,380.71|121,914,591.14|

（2）Investment in associates and joint ventures
Currency： yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name ofinvestee|Openingbalance||Chang in current period||||||||Closingbalance|Closingbalanceofprovision|
||||Addinvestment|Reduceinvestment|Investmentincomeunderequitymethod|Adjustments ofothercomprehensiveincome|Changesof otherequity|Cashdividendor profitdeclared|Provision forimpairment|Others|||
|Ⅰ.Joint ventures|||||||||||||
|GuangdongHuizhouLuofuHillMineralWaterCo., Ltd|9,969,206.09||||||||||9,969,206.09|9,969,206.09|
|FengkaiXinghuaHotel|9,455,465.38||||||||||9,455,465.38|9,455,465.38|
|Subtotal|19,424,671.47||||||||||19,424,671.47|19,424,671.47|
|Ⅱ.Associates|||||||||||||
|ShenzhenRunhuaAutomobileTradingCo., Ltd||1,445,425.56|||||||||1,445,425.56|1,445,425.56|
|ShenzhenRonghuaJidianCo., Ltd||1,410,924.77|||-63,790.59||||||1,347,134.18|1,076,954.64|
|Subtotal||2,856,350.33|||-63,790.59||||||2,792,559.74|2,522,380.20|
|Total||22,281,021.80|||-63,790.59||||||22,217,231.21|21,947,051.67|

4、Operating income and costs
(1) Operating income and operating costs
Currency： yuan
||||||
|-|-|-|-|-|
|Item|Amount for the current period||Amount for the prior period||
||Operating income|Operating costs|Operating income|Operating costs|
|Principal operatingincome|312,137,584.07|180,246,091.18|528,924,692.46|240,739,406.51|
|Total|312,137,584.07|180,246,091.18|528,924,692.46|240,739,406.51|

(2)Principal operating activities (classified by industries)
Currency： yuan
||||||
|-|-|-|-|-|
|Name of industry|Amount for the current period||Amount for the prior period||
||Operatingincome|Operating costs|Operatingincome|Operating costs|
|Real estate|281,291,890.00|168,652,985.51|497,741,746.00|228,984,079.50|
|Leasing|30,845,694.07|11,593,105.67|31,182,946.46|11,755,327.01|
|Total|312,137,584.07|180,246,091.18|528,924,692.46|240,739,406.51|

(3)Principal operating activities (classified by geographical areas)
Currency： yuan
||||||
|-|-|-|-|-|
|Name of geographical area|Amount for the current period A||mount for the prior period||
||Operatingincome|Operating costs|Operatingincome|Operating costs|
|Shenzhen|312,137,584.07 1|80,246,091.18 528|,924,692.46|240,739,406.51|
|Total|312,137,584.07 1|80,246,091.18 528|,924,692.46|240,739,406.51|

（4） Operating income from theCompany’s top 5 customers
||||
|-|-|-|
|Name of customers|Amount for the current period||
||Operating income|Proportion to total operating incomeof the Company (%)|
|Individual No.1|11,596,946|3.72%|
|Individual No.2|11,427,694|3.66%|
|Individual No.3|10,721,149|3.43%|
|Individual No.4|10,076,464|3.23%|
|Individual No.5|9,618,414|3.08%|
|Total|53,440,667|17.12%|

(Continued)
||||
|-|-|-|
|Name of customers|Amount for the prior period||
||Operating income|Proportion to total operating incomeof the Company (%)|
|Individual No.1|10,147,591.00|1.92|
|Individual No.2|7,649,799.00|1.45|

||||
|-|-|-|
|Individual No.3|7,126,376.00|1.35|
|Individual No.4|6,962,415.00|1.32|
|Individual No.5|6,646,532.00|1.26|
|Total|38,532,713.00|7.29|

5.Investment income
Currency： yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Investment income from long-terminvestments under cost method||162,821,868.94|
|Investment income from long-terminvestments under equity method|-63,790.59|-129,692.73|
|Investment income fromAvailable-for-sale financial assets|689,000.00|350,000.00|
|Total|625,209.41|163,042,176.21|

XV.Supplementary information
1.Breakdown non-recurring profit or loss
Currency： yuan
||||
|-|-|-|
|Items|Amount|Note|
|Profit or loss on disposal ofnon-current assets|-2,647.50||
|Reversal of provision for accountreceivables that are tested forimpairment losses individually|4,800,000.00|The company and the LuofuMountain Tourism Corporationlitigation amount has beenrecovered.So the provision for baddebts reversed.|
|Other non-operating income orexpenses other than the above|5,115,528.04|The main reason is due to receivethe lawsuit claims payment fromLuofu Mountain TourismCorporation|
|Less：Income tax effects|2,473,345.13||
|Total|7,439,535.41|--|

2.Return rate of net assets and earning per share
|||||
|-|-|-|-|
|Profit the in the reporting year|Weighted return rate of net assets|Earning per share||
|||Basic EPS(yuan /|Diluted EPS(yuan /|

|||||
|-|-|-|-|
|||stock)|stock)|
|Net profit attributable tocommon shareholders|5.62%|0.1332|0.1332|
|Less： Net profit attributableto common shareholders afterdeducting non-recurring losses|5.31%|0.1259|0.1259|

3.Differences between amounts prepared under foreign accounting standards and China Accounting Standards (CAS)（1）Differences in the net profit and net assets between those disclosed in the financial statements in compliance with International Finance Reporting Standards and CAS
Currency： yuan
||||||
|-|-|-|-|-|
||Net profit||Net asset||
||Amount for thecurrent period|Amount for the priorperiod|Amount for thecurrent period|Amount for the priorperiod|
|In accordance withCASs|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|
|Items and amounts adjusted according to international accounting standards：|||||
|In accordance withIFRS|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|

（2）Differences in the net profit and net assets between those disclosed in the financial statements in compliance with Overseas accounting standards andCAS：
Currency： yuan
||||||
|-|-|-|-|-|
||Net profit||Net asset||
||Amount for thecurrent period|Amount for the priorperiod|Amount for thecurrent period|Amount for the priorperiod|
|In accordance withCASs|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|
|Items and amounts adjusted according to overseas accounting standards：|||||
|In accordance withoverseas accountingstandards|134,761,121.51|186,407,824.38|2,464,895,851.04|2,331,704,116.07|

Section X Documents Available For Reference
1. The accounting statements with personal signatures and seals of Legal Representative, Chief Accountant and the person in charge of the accounting agency.
2. The originals of all the documents and public notices disclosed on China Securities Journal and Ta Kung Pao by the Company during the Reporting Period.