2016-03-29-深交所-深深房Ｂ_2015年年度报告（英文版）_177页_3mb

2015 Annual Report Summary: Shenzhen Special Economic Zone Real Estate & Properties (Group) Co., Ltd.

Company Profile & Financial Highlights

• Financial Performance: Net profit of RMB 301 million, up 1.04% from 2014. Operating revenue increased 1.46% to RMB 2.16 billion. Key financial metrics show steady growth in net assets (up 7.87%) and retained profits.
• Balance Sheet: Total assets decreased 4.46% due to property sales and project completion. Liabilities remained stable, with significant non-current debt due within one year.
• Cash Flow: Strong operating cash flow (RMB 1.1 billion, +240.56% YoY) driven by increased property sales and project funding. Investments saw minor cash outflows, reflecting cautious spending.

Business Operations

• Core Activities: Focus on real estate development, with completed projects like Chuanqishan and ongoing ones like Yuejing Dongfang. Sales strategies adapted to market polarization in 2015.
• Market Conditions: Polarized real estate market led to revenue stability. Projects progress was managed carefully to avoid delays.

Significant Events

• Legal Matters: Contingent liabilities from unresolved lawsuits (e.g., Xi'an Fresh Peak litigation), impacting financial reserves.
• Corporate Governance: Appointed new executives and maintained strong board oversight. Dividend policy remains unchanged, with no cash distributions planned.

Risk and Opportunities

• Financial Risks: High leverage and reliance on property sales make the company sensitive to market fluctuations.
• Strategic Growth: Focus on commercial real estate investments and properties could drive future profitability.

Conclusion
The company maintained steady operations in 2015, with strong financial performance supported by property sales. However, unresolved legal issues and market volatility pose risks. Future growth will depend on project execution and market conditions.