StockCode:000011,200011 StockName:SZPRDA,SZPRDB AnnouncementNo.:2017-34 SHENZHENPROPERTIES&RESOURCESDEVELOPMENT (GROUP)LTD. SEMI-ANNUALREPORT2017(ABSTRACT) IImportantNotes ThisAbstractisbasedonthefulltextoftheSemi-AnnualReport.Inorderforafullunderstandingoftheoperatingresults,financial conditionandfuturedevelopmentplanningoftheCompany,investorsarekindlyremindedtoreadthefulltextcarefullyonthemedia designatedbytheChinaSecuritiesRegulatoryCommission(the“CSRC”). ObjectionsagainstthisReportraisedbythedirectors,supervisorsandseniormanagement: Name Officetitle Objectionandreason Statement:Exceptforthefollowingdirectors,alltheotherdirectorsattendedinpersontheboardmeetingforthereviewofthisReport. Name Officetitle Reasonfornotattendingin Proxyperson ThisAbstracthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthe twoversions,theChineseversionshallprevail. Modifiedauditor’sopinion: □Applicable√Notapplicable ProposalforprofitdistributiontoorconvertingcapitalreserveintosharecapitalforcommonshareholdersfortheReportingPeriod, whichhasbeenconsideredandapprovedbytheBoard: □Applicable√Notapplicable TheCompanyplansnottodistributecashdividendsorbonussharesorconvertcapitalreserveintosharecapital. ProposalforprofitdistributiontopreferenceshareholdersfortheReportingPeriod,whichhasbeenconsideredandapprovedbythe Board:□Applicable√NotapplicableIICompanyProfile1.StockProfileStockname SZPRDA,SZPRDB Stockcode 000011,200011Stockexchange ShenzhenStockExchange Contactinformation BoardSecretary SecuritiesRepresentativeName FanWeiping QianZhongandDingMinghua 42/F, International Trade Center, Renmin42/F, International Trade Center, RenminOfficeaddress South Road, Shenzhen, GuangdongSouth Road, Shenzhen, Guangdong Province,P.R.China Province,P.R.ChinaTel. 0755-82211020 0755-82211020E-mail 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn2.KeyConsolidatedOperatingResults IndicatebytickmarkwhethertheCompanyneedstoretroactivelyrestateanyofitsaccountingdata. □Yes√No ReportingPeriod Sameperiodoflastyear +/-(%) Operatingrevenues(RMB) 1,317,146,732.43 372,057,479.96 254.02% Netprofitattributabletoshareholdersof 364,355,770.43 -5,248,704.63 7,041.82% theCompany(RMB) Netprofitattributabletoshareholdersof theCompanybeforeexceptionalgainsand 367,822,064.03 -5,865,281.91 6,371.17% losses(RMB) Netcashfromoperatingactivities(RMB) -500,537,688.53 1,509,256,494.79 -133.16% Basicearningspershare(RMB/share) 0.6114 -0.0088 7,047.73% Dilutedearningspershare(RMB/share) 0.6114 -0.0088 7,047.73% Weightedaveragereturnonequity(%) 14.25% -0.25% 14.50% EndofReportingPeriod Endoflastyear +/-(%) Totalassets(RMB) 5,937,260,097.37 6,654,356,144.10 -10.78% Netassetsattributabletoshareholdersof 2,665,956,411.06 2,410,434,735.75 10.60% theCompany(RMB) 3.ShareholdersandTheirHoldingsatPeriod-End Unit:share Total number of preference Total number of common 49,485shareholders with resumed 0 shareholdersatperiod-end votingrightsatperiod-end(if any) Top10shareholders Nameof Natureof Shareholding Totalshares Restrictedsharesheld Pledgedorfrozenshares shareholder shareholder percentage held Status Number ShenzhenConstruction State-ownedInvestment corporation 54.33% 323,796,324 293,997,370HoldingsCorporationShenzhenInvestment State-owned 9.49% 56,582,573 56,582,573Management corporationCorporationDuXinye Domestic 0.65% 3,880,800individualZhouQun Domestic 0.52% 3,115,450individualDuYunfeng Domestic 0.39% 2,323,000individualShenzhenDuty-Free DomesticCommodity non-state-owne 0.29% 1,730,300 1,730,300EnterprisesCo.,dcorporationLtd.MaiFurong Domestic 0.25% 1,384,800individualYangYaochu Domestic 0.22% 1,320,620 individualChenLiying Domestic 0.18% 1,102,051individualJasonOffshore DomesticEquipmentCo., non-state-owne 0.17% 984,400Ltd. dcorporationRelated or acting-in-concertThefirst and secondprincipal shareholders of theCompany aremanaged by Shenzhenparties among shareholdersInvestmentHoldingCorporation,theactualcontrollingshareholderoftheCompany.Andtheabove Companydoesnotknowwhethertherearerelatedpartiesoracting-in-concertpartiesamongthe other8shareholders.Shareholders conductingN/Asecuritiesmargintrading(ifany)4.ChangeofControllingShareholderorActualControllerinReportingPeriodChangeofthecontrollingshareholderintheReportingPeriod:□Applicable√NotapplicableThecontrollingshareholderremainedthesameintheReportingPeriod.ChangeoftheactualcontrollerintheReportingPeriod:□Applicable√NotapplicableTheactualcontrollerremainedthesameintheReportingPeriod.5.NumberofPreferenceShareholdersandShareholdingsofTop10ofThem□Applicable√NotapplicableNopreferenceshareholdersintheReportingPeriod.6.CorporatebondsDoestheCompanyhaveanycorporatebondspubliclyofferedandlistedonthestockexchange,whichwereunduebeforetheapprovaldateofthisReportorwereduebutcouldnotberedeemedinfullNo.IIIPerformanceDiscussionandAnalysis1.PerformanceReviewforReportingPeriodIstheCompanysubjecttoanydisclosurerequirementsforspecialindustriesYes,becausetheCompanyengagesinrealestate.Inthefirsthalfof2017,citiesinChinatriedtoreducethenumberofunsoldhousesbytighteningrealestatecontrolbasedontheirownrealities.Over40citieshaveunveiledanewroundofpropertytighteningmeasures,whichwascharacterizedbytheshiftofcontrolfocusfromfirstandsecond-tiercitiestothirdandfourth-tiercitiessurroundingtheformer,aswellastootherprefecture-levelcities.Inthebigpictureofdifferentrealestatepoliciesfordifferentcitiesacrossthecountry,thethirdandfourth-tiercitieswillcontinuetoseegeneraleasingandpartlytighteningco-existing.Duetopurchaseandpricingrestrictions,thefirstandsecond-tiercitiesexperiencedshrinkingturnoversandnon-changingpricesinthefirsthalfof2017.Thethirdandfourth-tiercities,onthecontrary,sawincreasingturnoversandhouseprices,whichwasmainlyresultedfromthe“overflow”ofinvestmentdemandandcapitalfromthefirstandsecond-tiercitiestotheselower-tiercities.Currently,therealestatemarketisstillactivetosomeextent,withrealestateactivityindicatorsathighlevels,but,consideringthenewhighofpropertysaleslastyear,thegovernmentwouldprobablytightencontroliftherearesignsofcontinuallyrisinghouseprices.Inthatcase,thegovernmentmayadoptmoretighteningmeasurestostophousepricesfromgoinguptoofast.Forthefirsthalfof2017,theCompanyachieved,onaconsolidatedbasis,operatingrevenuesofRMB1.317billionandnetprofitofRMB0.36billion,androughlyfulfilledallitsoperatingobjectives.Inthecominghalfoftheyear,theCompanywilladjustitsmarketingstrategiesaccordingtopolicyandmarketchangessoastodestockitsunsoldhousesinothernon-Shenzhencities.In addition,theCompanywilltrytoensureitsall-round,sustainedandhealthydevelopmentthroughimprovingsafetymanagementand servicesofitspropertymanagementsubsidiaries,aswellasthroughimprovingthesidelinebusinessesofrentalandcateringservice. Atthe2017ShenzhenRealEstateCeremonyheldbytheShenzhenRealEstateAssociationinJuly2017,alistof“Shenzhen’sTop20 RealEstateDevelopers”wasunveiledandtheCompanystoodoutamongover800fellowcompaniesacrossthecity,rankingNo.16. (I)BusinesscharacteristicsoftheCompanyinthe1sthalfofY2017 1.BusinessrevenueoftheCompanysharplyincreased,andtherealestateindustry,asthemainbusiness,grewmorethanexpected. Inthe1sthalfofY2017,theconsolidatedbusinessrevenueoftheCompanyreachedRMB1.317billion,representingayear-on-year increaseof254%,mainlyduetotherapidgrowthoftherealestatebusiness,whichwasthemainbusiness.Revenueoftherealestate businesswasRMB1.054billion,showingasharpyear-on-yearincreaseof933%,mainlyduetotheprojectofQianhaiGangwan Gardenstartedthemove-in,whichmeantthattherevenueoftheprojectcouldbecarriedforwardfromthenon.Theareacarried forwardof theproject of QianhaiGangwan Gardeninthe1sthalfyearwas14,448.9square meters,bringingabout the carried-forwardrevenueofRMB0.909billion.Inrespectofsales,inthe1sthalfyear,wehad4projectsonthemarket,namely, QianhaiGangwanGarden,SonghuLangyuan,BanshanYujing,andHupanYujing.Inthe1sthalfyear,Brandmanagementwas strengthenedfortheXuzhouBanshanYujingproject.Wedevelopedclientsthroughmultiplechannels includingreinforcing promotionandenlargingmediacooperation,andarrangedtargetedworkforthesales-openingforthe2ndbatchofbuildingsofthe project.AsforYangzhourealestatemarket,there’sabullishmarketinthe1sthalfyear.WetimedthemarketfortheHupanYujing project,andtookaseriesofmeasuressuchasmarketresearch,andstrategicsalesandcontrol,andasaresult,wesoldoutallhouses forthe1stphaseproject,andobtainedasalesratioofover98%forthe2ndphaseproject. 2.Businessesofpropertyleasing,propertymanagement,andmotorpassengertransportationranwell. Ourauxiliarybusinessesfullyextendedthemarket.Companiesofpropertymanagement,sedanleasing,projectsupervision,and cateringovercamedifficulties,positivelyrespondedtoseveremarkettests,stabilizednormaloperation,andbasicallyachievedthe targetof“halftimematcheswithhalfaccomplishedassignments”.Ingeneral,inthe1sthalfyear,firstly,thepropertymanagement divisionrealizedbusinessrevenueofaroundRMB0.191billion.ShenzhenInternationalTradeCenterPropertyManagementCo.,Ltd. rankedastheNO.36intheTop100ChinesePropertyManagementCompanieswithStrongestComprehensiveStrengthinY2017, andrankedamongtheTop50ShenzhenPropertyManagementCompanieswithStrongestComprehensiveStrengthinY2016. ShenzhenHuangchengRealEstateManagementCo.,Ltd.orderlycarriedforwardthepromotionof IntelligentCommunity, thoroughlyimprovedservicequality,andpositivelyexpandednon-localpropertymanagementmarket.Secondly,therentalservice divisiontookpositivemeasurestorespondtomarketchanges,tooktheinitiativetofindqualifiedlessees,andvitalizedvacant properties,resultinginstablegrowthofrent,andbringingaboutrevenueofRMB32.5millioninthe1sthalfyear,whichincreasedby RMB2.42millionand8%ascomparedwiththesameperiodoflastyear.Thirdly,wereinforcedthemarketingofgroupandinternet purchaseforthecateringservicedivision.ShenzhenPropertyConstructionSupervisionCo.,Ltd.orderlycarriedforwardthe engineeringsupervisionforkeyprojectsincludingGoldenCollar’sResortApartmentandYangzhouHupanYujing. 3.WefocusedontheintegrationofShenzhenBusGroupandoursubsidiaryvehicleleasingcompany. InordertooptimizetheCompany’sbusinessandassetstructures,torespondtothecallforintegrationofresourcesofmunicipal state-ownedtaxienterprisesforbetterstrategic,synergicdevelopmentofstate-ownedenterprises,aswellastojointhereforminthe industry,theCompanyistransferringits100%stakesinsubordinatesShenzhenInternationalTradeCenterCarIndustryCo.,Ltd.and ShenzhenShenxinTaxiCo.,Ltd.toShenzhenBusGroupCo.,Ltd.,atapricenotlowerthanRMB0.189billion.Theafter-tax investmentearningsupontheequitytransferwouldbeaboutRMB75million.Thetransfereventwasreviewedandapprovedbythe boardofdirectorsandtheshareholders’meetingonJune30,2017andJuly17,2017.Thetransferagreementhasbeensigned,and relatedworkisstablyandorderlybeingpromotednow. (II)Progressofkeyprojectsinconstruction 1.SZPRD-GoldenCollar’sResort(locatedintheShenzhencity):Theprojecthasbeenorderlycarriedforwardonthebasisofthe scheduleofconstructioncontract.Theconstructionofthemajorstructurewasaccomplished3daysinadvance.Themajorstructure of3buildingswasconstructedtothe38thfloor,28thfloor,and26thfloorinthe1sthalfyear.We’llsynchronouslycarryforward decorationofthemarketingcenterandthe1stbatchofmodelhouses,aswellastheconstructionofsomelandscapearchitectures. 2.SZPRD-QianhaiGangwan(locatedintheShenzhencity):Inthe1sthalfofY2017,wemainlyconductedworkaroundthemove-in oftheproject.Sofar,therehavebeen497houseswithcarriedforwardrevenueofRMB2.254billionandareaof41.6thousand squaremeters. 3.SZPRD-SonghuLangyuan(locatedintheDongguancity):Inthe1sthalfofY2017,wemainlyfinishedtheconstructionof landscapearchitecturesandpreliminaryinspection.Move-inoftheprojectwassmoothlyconductedon28Jul.2017. 4.SZPRD-HupanYujing(locatedintheYangzhoucity):The2nd-phaseprojectprogressedwell.Engineeringrelatedtowaterand electricity,landscaping,andmunicipaladministrationwereimplementedonschedule. 5.SZPRD-BanshanYujing(locatedintheXuzhoucity):Weexpandedyardforthe1st-phaseproject,andoptimizedandimproved landscapeplantsinthemainlandscapezone. 2.MattersRelatedtoFinancialReport (1)ChangesinAccountingPolicies,AccountingEstimationsandMeasurementMethodsComparedtoLast AccountingPeriod □Applicable√Notapplicable Nosuchcases. (2)RetroactiveRestatementsduetoCorrectionofSignificantAccountingErrorsinReportingPeriod □Applicable√Notapplicable Nosuchcases. (3)ChangesinScopeofConsolidatedFinancialStatementsComparedtoLastAccountingPeriod □Applicable√Notapplicable Nosuchcases.