Stockcode:000011,200011 Stockname:SZPRDA,SZPRDB AnnouncementNo.:2016-21 SHENZHENPROPERTIES&RESOURCESDEVELOPMENT(GROUP)LTD. ABSTRACTOFTHIRDQUARTERREPORT2016 SectionIImportantStatements Theboardofdirectors(the“Board”),theboardofsupervisors(the“BoardofSupervisors”)aswell as the directors, supervisors and senior management of Shenzhen Properties& Resources Development (Group) Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completenessofthecontentsofthisReport,andshallbejointlyandseverallyliableforanyfalse representation,misleadingstatementsormaterialomissionsinthisReport. AllthedirectorsattendedtheboardmeetingforthereviewofthisReport. ChenYugang,headoftheCompany,WangHangjun,accountingheadforthisReport,andShen Xueying,headoftheaccountingorgan(headofaccounting),herebyguaranteethatthefinancial statementscarriedinthisReportarefactual,accurateandcomplete. ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesor misunderstandingsbetweenthetwoversions,theChineseversionshallprevail. SectionIIFinancialHighlights&ShareholderChanges IHighlightsofaccountingdataandfinancialindicators WhethertheCompanyperformsanyretroactiveadjustmentstoorrestatementsofitsaccountingdataoflastyearduetochangein accountingpoliciesorcorrectionofaccountingerrors □Yes√No 30September2016 31December2015 +/-(%) Totalassets(RMB) 6,649,735,329.52 4,379,763,486.10 51.83% Net assets attributable to shareholders of the Company 2,045,647,093.13 2,099,906,766.61 -2.58% (RMB) January-September July-September2016 YoY+/-(%) YoY+/-(%) 2016 Operatingrevenues(RMB) 157,661,237.17 -46.97% 529,718,717.13 -16.72% Net profit attributable to shareholders of the Company -1,953,780.96 -112.78% -7,202,485.59 -115.50% (RMB) Net profit attributable to shareholders of the Company -2,164,014.76 -114.28% -8,029,296.67 -119.07% excluding exceptional profit and loss(RMB) Net cash flows from operating -- -- 2,101,061,539.92 5,410.72% activities(RMB) Basicearningspershare -0.0033 -112.89% -0.0121 -115.53% (RMB/share)Dilutedearningspershare -0.0033 -112.89% -0.0121 -115.53%(RMB/share)Weightedaveragereturnonequity -0.09% -0.85% -0.35% -2.65%(%) Unit:RMB Item January-September2016 Note Profit/lossondisposalofnon-currentassets(includingoffsetasset -182,886.11 impairmentprovisions) Impairmentprovisionreversalforaccountsreceivableonwhich 11,729.17 theimpairmenttestiscarriedoutseparately Non-operatingrevenueandexpenseotherthantheabove 1,252,108.15 Less:Corporateincometax 254,140.13 Total 826,811.08 -- ExplanationofwhytheCompanyclassifiedanitemasexceptionalprofit/lossaccordingtothedefinitionintheExplanatory AnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic―ExceptionalProfitandLoss, orreclassifiedanyexceptionalprofit/lossitemgivenasanexampleinthesaidexplanatoryannouncementtorecurrentprofit/loss □Applicable√Notapplicable NosuchcasesintheReportingPeriod. IITotalnumberofshareholdersandshareholdingsoftop10shareholdersattheperiod-end 1.Totalnumberofordinaryshareholdersandpreferenceshareholderswhohadresumedtheirvotingright &shareholdingsoftop10shareholdersattheperiod-end Unit:share Total number of preference Total number of ordinary shareholders who had shareholders at the end of the 41,123resumedtheirvotingrightat 0 ReportingPeriod the end of the Reporting Period(ifany) Shareholdingsoftop10shareholders Numberof Pledgedorfrozenshares Nameof Natureof Shareholding Numberofshares restrictedshares shareholder shareholder percentage held Status Number held SHENZHENCONSTRUCTION State-owned 54.33% 323,796,324 293,997,370INVESTMENT corporationHOLDINGSCORPORATIONSHENZHENINVESTMENT State-owned 9.49% 56,582,573 56,582,573MANAGEMENTcorporationCORPORATIONDomesticDUXINYE 0.65% 3,880,800individualDomesticZHOUQUN 0.52% 3,115,450individualDomesticDUYUNFENG 0.40% 2,223,000individualSHENZHEN DomesticDUTY-FREE non-state-owned 0.29% 1,730,300 1,730,300COMMODITY corporationENTERPRISESCO.,LTD.ForeignMAIFURONG 0.27% 1,514,600individualSHENZHENDomesticSONGKAI non-state-owned 0.22% 1,315,500EQUIPMENTcorporationCO.,LTD.DomesticYANGYAOCHU 0.22% 1,310,620individualDomesticCHENLIYING 0.18% 1,076,051individual Shareholdingsoftop10non-restrictedshareholders Typeofshares Nameofshareholder Numberofnon-restrictedsharesheldattheperiod-end Type NumberSHENZHEN CONSTRUCTION RMBordinaryINVESTMENT HOLDINGS 29,798,954 29,798,954share CORPORATION RMBordinaryDUXINYE 3,880,800 3,880,800share RMBordinary ZHOUQUN 3,115,450 3,115,450 share RMBordinary DUYUNFENG 2,223,000 2,223,000 share Domestically MAIFURONG 1,514,600listedforeign 1,514,600 share SHENZHEN SONGKAI RMBordinary 1,315,500 1,315,500 EQUIPMENTCO.,LTD. share Domestically YANGYAOCHU 1,310,620listedforeign 1,310,620 share Domestically CHENLIYING 1,076,051listedforeign 1,076,051 share Domestically LIJING 781,740listedforeign 781,740 share GUOYUANSECURITIES 770,754Domestically 770,754 BROKERAGE(HONGKONG) listedforeign LIMITED share ThebiggestshareholderoftheCompanyisunderShenzhenInvestmentHoldingCorporation, Related or act-in-concert parties theactualcontrollingshareholderoftheCompany.Otherthanthat,itisunknownwhether amongtheshareholdersabove therearerelatedpartiesoract-in-concertpartiesamongtheothernineshareholders. Top10ordinaryshareholders conductingsecuritiesmargintrading ZhouQun,DuXinyeandDuYunfengholdthesharesintheircreditaccounts. (ifany) Didanyofthetop10ordinaryshareholdersorthetop10non-restrictedordinaryshareholdersoftheCompanyconductany promissoryrepoduringtheReportingPeriod □Yea√No NosuchcasesintheReportingPeriod. 2.Totalnumberofpreferenceshareholdersandshareholdingsofthetop10ofthemattheperiod-end □Applicable√Notapplicable SectionIIISignificantEvents IChanges in main accounting statement items and financial indicators in the Reporting Period,aswellasreasonsforthechanges √Applicable□Notapplicable 1.Monetaryfundsattheperiod-endstoodatRMB2,717,238,442.31,up187.31%fromtheyear-beginning,mainly becausetheadvancesfromhousebuyersincreased. 2.Accountspaidinadvanceattheperiod-endstoodatRMB216,593,583.78,up662.23%fromtheyear-beginning, mainlybecausethetaxesprepaidasrequiredincreased. 3.Othercurrentassetsattheperiod-endstoodatRMB0.00,down100.00%fromtheyear-beginning,mainly becausetheyweretransferredtotheinventoriesitemasrequired. 4.Deferredtaxassetsattheperiod-endstoodatRMB325,220,700.02,up35.32%fromtheyear-beginning,mainly becausetheanticipatedprofitsonthepre-salerevenuesofrealestatesubsidiariesincreasedandtherelevant deferredtaxassetswererecognized. 5.Short-termborrowingsattheperiod-endstoodatRMB0.00,down100.00%fromtheyear-beginning,mainly becausetheywererepaiduponmaturity. 6.Accounts receivedin advance attheperiod-end stoodatRMB3,350,814,047.99,up413.64% from the year-beginning,mainlybecausetheadvancesfromhousebuyersincreased. 7.Interestpayableattheperiod-endstoodatRMB0.00,down100.00%fromtheyear-beginning,mainlybecause bankloanswererepaidwithinterest. 8.Non-currentliabilitiesduewithinoneyearattheperiod-endstoodatRMB0.00,down100.00%fromthe year-beginning,mainlybecausetheywererepaiduponmaturity. 9.Long-termborrowingsattheperiod-endstoodatRMB0.00,down100.00%fromtheyear-beginning,mainly becausetheywererepaiduponmaturity. 10.OperatingrevenuesforJuly-September2016stoodatRMB157,661,237.17,down46.97% yearonyear, mainlybecausethesettledprojectareadecreasedconsiderablyfromthesameperiodoflastyear. 11.OperatingcostsforJuly-September2016stoodatRMB130,151,418.31,down37.43%yearonyear,mainly becausethesettledprojectareadecreasedconsiderablyfromthesameperiodoflastyear. 12. The business tax and surtaxes for January-September 2016 and July-September 2016 stood at RMB25,613,594.87andRMB1,868,632.47respectively,down69.76%and95.07%fromthesameperiodoflast year,mainlybecausethedecreaseinboththesettledprojectincomesandtheaveragegrossprofitmarginonall thesettledprojectsindifferentregionsresultedinthedecreaseinthelandVATandotherrelevanttaxesandfares. 13.ThesellingexpensesforJanuary-September2016andJuly-September2016stoodatRMB27,517,133.33and RMB10,977,373.74respectively,up35.98%and44.85%fromthesameperiodoflastyear,mainlybecausethe advertising,salesserviceandagencyfeesincreasedtoenhancemarketing. 14.ThefinancialexpensesforJanuary-September2016andJuly-September2016stoodatRMB-14,076,786.73 andRMB-7,038,347.79respectively,withthegain(statedasanegativeexpenseitem)up138.41%and491.37% fromthesameperiodoflastyear,mainlybecausetheinterestincomeincreased. 15.AssetimpairmentlossforJanuary-September2016stoodatRMB3,810,897.96,up987.28%fromthesame periodoflastyear,mainlybecauseafallingpriceprovisionwasmadefortheSZPRDHupanYujingProject PhaseII. 16.ReturnoninvestmentforJanuary-September2016stoodatRMB1,925,310.63,down73.82%yearonyear, mainlybecausethesameperiodoflastyearsawgainfromdisposalofavailable-for-salefinancialassets;and returnoninvestmentforJuly-September2016stoodatRMB766,734.31,up30.52%yearonyear,mainlybecause theprofitsfromjointventuresincreased. 17.TheshareofprofitofassociatesandjointventuresforJanuary-September2016andJuly-September2016 stoodatRMB1,925,310.63andRMB766,734.31respectively,up53.55%and30.52%fromthesameperiodof lastyear,mainlybecausetheprofitsfromjointventuresincreased. 18.Thenetnon-operatingrevenue/expenseforJanuary-September2016stoodatRMB1,069,222.04,up420.83% fromthesameperiodoflastyear,mainlybecausetheconfiscateddeposits,theinsuranceindemnitiesforproperty managementaccidentsandsoonincreased. 19.ThecorporateincometaxforJanuary-September2016andJuly-September2016stoodatRMB1,443,177.42 andRMB-1,168,803.07respectively,down91.51%and120.77%fromthesameperiodoflastyear,mainly becausetheprofitsachieveddecreased. 20.Theoperatingprofits,totalprofitsandnetprofits(attributabletotheCompany)forJuly-September2016stood atRMB-3,407,428.17,RMB-3,122,584.03andRMB-1,953,780.96respectively,down116.45%,114.93%and 112.78%fromthesameperiodoflastyear;andtheoperatingprofits,totalprofitsandnetprofits(attributableto the Company) for January-September 2016 stood at RMB-6,828,530.21, RMB-5,759,308.17 and RMB-7,202,485.59respectively,down110.71%,109.08%and115.50%fromthesameperiodoflastyear,mainly becausethesettled projectareadecreasedandtheaveragegrossprofitmarginonallthesettledprojectsin differentregionsdecreasedsignificantly. 21.The othercomprehensiveincomenet oftaxforJanuary-September2016 stoodatRMB621,139.47,up 112.72%fromthesameperiodoflastyear,mainlybecausethetranslationdifferenceofforeign-currencyfinancial statementsincreasedandthesameperiodoflastyearsawthedisposalandreclassificationintoprofit/lossof available-for-salefinancialassets;andtheothercomprehensiveincomenetoftaxforJuly-September2016stood atRMB-379,677.29,up80.36%fromthesameperiodoflastyear,mainlybecausethetranslationdifferenceof foreign-currencyfinancialstatementsincreased. 22.NetcashflowsfromoperatingactivitiesforJanuary-September2016stoodatRMB2,101,061,539.92,up 5410.72%yearonyear,mainlybecausethecashinflowsfromsaleofhousesincreased. 23.NetcashflowsfrominvestingactivitiesforJanuary-September2016stoodatRMB-3,922,521.62,withthenet outflowsdown51.10%yearonyear,mainlybecausethesameperiodoflastyearsawarenewaloftaxiesbythe relevantsubsidiary. 24.NetcashflowsfromfinancingactivitiesforJanuary-September2016stoodatRMB-327,004,119.63,withthe netoutflowsup297.02%yearonyear,mainlybecausetheloanssecureddecreasedandthoserepaidincreased. 25.ThenetincreaseincashandcashequivalentsforJanuary-September2016andthebalanceofcashandcash equivalents at the period-end stood at RMB1,771,498,466.54 and RMB2,704,836,282.31 respectively, up 1481.09%and297.36%fromthesameperiodoflastyear,mainlybecausethecashinflowsfromsaleofhouses increased.IIProgressonsignificantevents,aswellastheinfluenceandsolutions□Applicable√NotapplicableIIICommitmentsof theCompany,its shareholders,actual controller,acquirer, directors, supervisors,seniormanagementorotherrelatedpartiesfulfilledintheReportingPeriodor ongoingattheperiod-end □Applicable√Notapplicable NosuchcasesintheReportingPeriod. IVPerformanceforecastforY2016 WarningofpossiblelossorconsiderableYoYchangeintheaccumulativenetprofitmadeduringtheyear-beginningtotheendofthe nextreportingperiod,aswellasthereasons √Applicable□Notapplicable Forecast:Considerableincreaseatthesamedirection Typeoftheforecastdata:exactdata 2016 2015 +/- Forecast accumulative net 30,200 15,682Up 92.58% profit(RMB'0,000) Basic earnings per share 0.5067 0.2631Up 92.58% (RMB/share) ThebusinessperformanceisexpectedtorecordasignificantchangebecausetheQianhaiGangwan GardenprojectdevelopedbytheCompanywouldmeettheconditionsforsettlementbytheendof thisyearandtheareaofallprojectsavailableforsettlementforthisyearisthusexpectedtoincreaseNotestotheforecast considerablyfromthesameperiodoflastyear.Theforecastsaboveareonlypreliminaryestimates providedaccordingtothecurrentsalesoftheCompany’srealestateprojects.Investorsarekindly remindedtonotethattheactualearningsoftheCompanyforY2016shallbesubjecttothedatato begiveninthe2016AnnualReportoftheCompany.VSecuritiesinvestment□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIInvestmentinderivativefinancialinstruments□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIVisits paidtothe Company for purposesof research,communication, interview, etc.duringtheReportingPeriod√Applicable□Notapplicable Dateofvisit Wayofvisit Typeofvisitor About2016-07-15 Byphone Individual Semi-AnnualReport 2016-08-11 Byphone Individual ProgressontheJinlingJiariproject 2016-09-15 Byphone Individual IncomefromtheQianhaiproject VIIIIllegalprovisionofguaranteesforexternalparties □Applicable√Notapplicable NosuchcasesintheReportingPeriod. IX Occupation of the Company’s funds for non-operating purposes by the controlling shareholderanditsrelatedparties □Applicable√Notapplicable NosuchcasesintheReportingPeriod.