CMPD2013Annual ReportAuditor’s Report
XYZH/2013SZA1028 To the shareholders of China Merchants Property Development Co., Ltd.
We have audited the Financial Statements of China Merchants Property Development Co., Ltd. (hereinafter referred to as “The Company” or“CMPD”) attached hereafter, including the Balance Sheet and Consolidated Balance Sheet ended December 31, 2013 and the Income Statement, Consolidated Income Statement, Cash Flow Statement, Consolidated Cash Flow Statement, Statement on Change ofShareholders’ Equity, Consolidated Statement on Change ofShareholders’ Equity of the year 2013, as well as the Notes to the Financial Statements.
I.Executives’ responsibilities on the Financial Statements
It is the responsibility of TheCompany’s management to prepare and appropriately present the Financial
Statements, which including: (1) Preparing the Financial Statements according to Enterprise Accounting Standards on a fair basis. (2) Designing, implementing and maintaining the internal control system related to preparation of the
Financial Statements, to prevent the Financial Statements from major false statements due to cheating or error.
II. Responsibilities of the CPA
Our responsibilityis to provide auditing opinions on the Financial Statements basing on the auditing works
we’ve done. We have carried out the auditing works according to Chinese CPA Auditing Standard, which required us to plan and implement our works on the basis of professional ethic standards, and obtain reasonable guarantee that the Financial Statements are free of major false statements.
Auditing involves performing procedures to obtain audit evidence of the amounts and disclosures in the
Financial Statements. The procedures were formulated on the basis of theauditor’s judgment, including the assessing the risks of material misstatement in the Financial Statements, whether due to fraud or error. During the evaluation
of those risks,, we consider the internal control relevant to theentity’s preparation of Financial Statements in order to design audit procedures that are appropriate for the circumstances. Auditing also includes evaluating the
appropriateness of the accounting policies which were used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
CMPD2013Annual Report We believe that the evidenceswe’ve obtained are appropriate and sufficient, which setfoundation to our
auditing opinion.
III.Auditors’ Opinion
We believe that the Company has been performed in accordance with the Enterprise Accounting Standard in the preparing of the Financial Statements. The Financial Statements objectively reflects, in all important aspects, the financial situation of CMPD as of December 31, 2013, and the business performance and cash flow of year 2013, both of theCompany’s and the consolidated.
ShineWing CPA China
Guo Junlong
certified public accountants (Special General
Partnership)
CPA China
Wang Yaming
China Beijing March 14, 2014
CMPD2013Annual Report Consolidated Balance Sheet
December 31, 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
||||||
|-|-|-|-|-|
|Items||Notes|Balance at end of year|Amount at the beginning of year|
|Current asset:|||||
||Monetary capital|V.1|24,240,458,796.50|18,239,272,247.93|
||Transactional financial assets|V.2||-|
||Notes receivable|V.3|4,000,000.00|5,748,800.00|
||Account receivable|V.4|76,864,814.81|162,099,162.73|
|Prepayment||V.5|2,815,967,507.79|8,287,184.01|
||Interest receivable||100,000.00|269,583.30|
||Dividend receivable||-||
||Other account receivable|V.6|13,683,883,876.17|8,183,491,572.92|
||Inventories|V.7|78,476,507,470.78|73,637,940,073.11|
||Non-current asset due in 1 year||4,175,229.58|16,756,858.87|
||Other current asset|V.8|3,550,197,939.60|2,818,269,943.98|
||Total of current asset||122,852,155,635.23|103,072,135,426.85|
||Non-current assets||||
||Sellable financial asset||-||
||Expired investment in possess||-||
||Long-term receivable|V.9|-|49,721,270.00|
||Long-term share equity investment|V.10|1,653,194,214.56|1,083,249,770.92|
||Investment real estates|V.11|5,661,844,333.88|3,117,335,984.24|
||Fixed assets|V.12|2,038,420,991.55|435,194,977.76|
||Construction in progress|V.13|104,895,578.36|88,458,273.58|
||Engineering goods||||
||Fixed asset disposal||||
||Intangible assets||542,448,651.42||
|R&D expense|||||
|Goodwill||V.14|159,560,861.23|159,560,861.23|
||Long-term amortizable expenses|V.15|257,668,842.73|249,438,693.12|
||Deferred income tax asset|V.16|770,257,880.69|942,147,425.36|
||Other non-current asset||-||
|Total of non-current assets|||11,188,291,354.42|6,125,107,256.21|
|Total of assets|||134,040,446,989.65|109,197,242,683.06|

 The Notes to the Financial Statements are the essential part of the Financial Report. This Financial Report is signed by the following persons:
Legal representative:Lin Shaobin Accounting supervisor:Wu Zhenqin Manager of financial dept.Li Shifang
CMPD2013Annual Report Consolidated Balance Sheet (Continued)
December 31, 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
||||||||
|-|-|-|-|-|-|-|
|Items||Notes|Balance at end of year||Amount at the beginning of year||
|Current liabilities|||||||
||Short-term loans|V.18|4,250,000,000.00||2,105,000,000.00||
||Trade off financial liabilities|V.19|||-||
||Notes payable|V.20|27,267,637.07||47,610,662.59||
||Account payable|V.21|12,010,832,454.50||11,796,898,896.95||
||Prepayment received|V.22|37,517,671,641.79||28,463,966,430.34||
|Employees’ wage payable||V.23|385,894,712.53||334,040,494.12||
|Tax payable||V.24||1,464,425,877.10||1,951,582,353.18|
||Interest payable|V.25||152,361,058.07||119,767,822.92|
||Dividend payable|V.26||120,927,194.29||290,165,059.98|
||Other account payable|V.27||9,014,047,482.53||8,502,352,593.09|
||Non-current liability due in 1 year|V.28||6,331,007,932.13||7,380,992,296.97|
||Other current liability|V.29||3,560,491,070.18|4,256,735,641.00||
||Total of current liability|||74,834,927,060.19||65,249,112,251.14|
|Non-current liabilities|||||||
||Long-term borrowings|V.30||17,051,917,894.42||14,378,013,872.78|
||Bond payable|||3,003,382,977.23||-|
||Long-term payable|V.31|102,745,035.90|||100,207,107.75|
||Special payable|||||-|
||Anticipated liabilities|V.32|10,473,360.10|||14,017,011.26|
||Deferred income tax liability||108,596,697.05|||-|
||Other non-recurring liabilities|V.33|11,236,760.00|||16,613,440.00|
|Total of non-current liabilities||||20,288,352,724.70||14,508,851,431.79|
||Total of liability|||95,123,279,784.89||79,757,963,682.93|
|Shareholders’ equity|||||||
||Share capital|V.34||1,717,300,503.00||1,717,300,503.00|
||Capital reserves|V.35||8,447,048,826.56||8,386,926,298.12|
|Less: Shares in stock|||||||
|Special reserves|||||||
||Surplus reserves|V.36||1,133,515,392.99||1,027,780,997.90|
||Common risk provision||||||
||Retained profit|V.37||15,348,735,891.17||12,173,100,556.73|
||Difference of foreign currency translation|||78,901,353.52||88,407,178.38|
|Total of shareholders’ equityattributable to the parent company|||||||
|||||26,725,501,967.24||23,393,515,534.13|
|Minor shareholders’ equity||V.38||12,191,665,237.52||6,045,763,466.00|
||Total of shareholders’ equity|||38,917,167,204.76||29,439,279,000.13|
||Total of owners’ equity and liabilities||||||
|||||134,040,446,989.65||109,197,242,683.06|

Balance Sheet (Parent Company)
December 31, 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
CMPD2013Annual Report
||||||||
|-|-|-|-|-|-|-|
|Items||Notes|Balance at end of year||Amount at the beginning of year||
|Current asset:|||||||
||Monetary capital||6,296,121,745.68||5,277,807,877.29||
||Transactional financial assets||-||||
||Notes receivable||-||||
||Account receivable||-||||
|Prepayment|||193,000.00||||
||Interest receivable|||11,814,660.00|||
||Dividend receivable|||1,186,411,976.56|2,877,702,095.70||
||Other account receivable|XIII. 1||28,619,556,967.65|29,644,653,819.13||
||Inventories|||-|1,224,000,000.00||
||Non-current asset due in 1 year|||-|15,300,000.00||
||Other current asset|||-|||
||Total of current asset|||36,114,098,349.89||39,039,463,792.12|
||Non-current assets||||||
||Sellable financial asset|||-|||
||Expired investment in possess|||-|||
||Long-term receivable|||-|||
||Long-term share equity investment|XIII.2||9,227,039,815.19|5,657,339,312.90||
||Investment real estates|||-|||
||Fixed assets|||1,548,967.06||345,629.58|
||Construction in progress|||-|||
||Engineering goods|||-|||
||Fixed asset disposal|||-|||
||Intangible assets|||-|||
|R&D expense||||-|||
|Goodwill||||-|||
||Long-term amortizable expenses|||-|||
||Deferred income tax asset|||-|||
||Other non-current asset|||-|||
|Total of non-current assets||||9,228,588,782.25||5,657,684,942.48|
||Total of assets|||45,342,687,132.14||44,697,148,734.60|

 Balance Sheet (Parent Company) (Continued)
December 31, 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
||||||
|-|-|-|-|-|
|Items||Notes|Balance at end of|Amount at the|
|Current liabilities|||year|beginning of year|
||Short-term loans||2,250,000,000.00|1,905,000,000.00|
||Trade off financial liabilities||-||

CMPD2013Annual Report
|||||||
|-|-|-|-|-|-|
||Notes payable|-||||
||Account payable|-||||
||Prepayment received|-||||
|Employees’ wage payable||9,010,550.63||7,927,525.00||
|Tax payable|||4,569,810.63|466,320.21||
||Interest payable||90,378,579.30|111,221,455.00||
||Dividend payable||-|||
||Other account payable||15,791,231,019.71|13,556,711,178.36||
||Non-current liability due in 1 year||2,404,241,120.00||3,894,234,275.00|
||Other current liability|357,710.82||||
||Total of current liability||20,549,788,791.09||19,475,560,753.57|
|Non-current liabilities||||||
||Long-term borrowings||7,633,824,285.00|8,604,667,725.00||
||Bond payable||-|||
||Long-term payable||-|||
||Special payable||-|||
||Anticipated liabilities||-|||
||Deferred income tax liability||-|||
||Other non-recurring liabilities||-|||
|Total of non-current liabilities|||7,633,824,285.00||8,604,667,725.00|
||Total of liability||28,183,613,076.09||28,080,228,478.57|
|Owners’ equity||||||
||Share capital||1,717,300,503.00||1,717,300,503.00|
||Capital reserves||8,927,054,193.00|8,927,054,193.00||
|Less: Shares in stock|||-|||
|Special reserves||||||
||Surplus reserves||1,082,563,999.99|976,829,604.90||
||Common risk provision|||||
||Retained profit||5,432,155,360.06|4,995,735,955.13||
||Total of shareholders’ equity||17,159,074,056.05||16,616,920,256.03|
||Total of owners’ equity and||45,342,687,132.14||44,697,148,734.60|

 liabilities
Consolidated Income Statement
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
|||||||
|-|-|-|-|-|-|
|Items|Notes||Amount of current year||Amount of Last Year|
|I. Total revenue||32,567,813,857.52||25,296,762,154.46||
|Incl. Operating revenue|V.39|32,567,813,857.52|||25,296,762,154.46|
|II. Total business cost||25,209,872,088.20||19,069,558,395.81||
|Incl. Business cost|V.39|19,045,102,287.65|||12,945,037,612.58|
|Business tax and surcharge|V.40|4,577,575,494.22|||4,273,285,191.20|
|Sales expense|V.41|770,608,081.81|||729,279,368.30|

CMPD2013Annual Report
||||||||
|-|-|-|-|-|-|-|
||Administrative expense|V.42|555,894,821.96|||439,348,487.64|
||Financial expenses|V.43||614,458,390.98||394,147,542.48|
||Asset impairment loss|V.44||-353,766,988.42||288,460,193.61|
||Plus: Gains from fluctuation of fair value (“-“ for|V.45|||||
|||||-||1,584,406.61|
||loss)||||||
||Investment gains (“-“ for loss)|V.46||569,270,324.16||5,572,506.29|
||Incl. Investment gains from affiliates||568,642,058.08|||2,740,621.24|
||III. Operation profit (“-“ for loss)|||7,927,212,093.48||6,234,360,671.55|
||Plus: Non business income|V.47||69,414,481.75||24,841,162.92|
||Less: Non-business expenses|V.48||29,447,080.00||59,701,420.94|
||Incl. Loss from disposal of non-current assets|||2,183,321.32||1,484,257.65|
||IV. Total profit (“-“ for total loss)|||7,967,179,495.23||6,199,500,413.53|
||Less: Income tax expenses|V.49||2,458,865,329.17||1,921,981,310.04|
||V. Net profit (“-“ for net loss)|||5,508,314,166.06||4,277,519,103.49|
||Net profit attributable to the owners of parent||4,202,152,074.18||3,318,266,875.59||
||company||||||
||Minor shareholders’ equity||1,306,162,091.88||959,252,227.90||
|VI. Earnings per share:|||||||
||(I) Basic earnings per share|V.50|2.45||1.9323||
||(II) Diluted earnings per share|V.50|2.45||1.9323||
||VII. Other misc. incomes|V.51|-266,154.33|||638,323.38|
||VIII. Total of misc. incomes||5,508,048,011.73|||4,278,157,426.87|
||Total misc gains attributable to the parent||4,192,646,249.32||||
|||||||3,318,905,198.97|
||company||||||
||Total misc gains attributable to the minor||1,315,401,762.41||||
|||||||959,252,227.90|
||shareholders||||||

Income Statement (Parent Company)
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
|||||||
|-|-|-|-|-|-|
||||Amount of||Amount of Last|
|Items|Notes|||||
||||current year||Year|
|I. Turnover|XIII. 3|24,520,000.00||31,630,000.00||
|Less: Operation cost|XIII. 3|2,540,090.96||6,548,488.37||
|Business tax and surcharge||5,190,372.00||1,774,443.00||
|Sales expense||-||||
|Administrative expense||44,727,346.09||39,321,647.22||
|Financial expenses||360,885,008.65||309,642,154.10||

CMPD2013Annual Report
|||||
|-|-|-|-|
|Asset impairment loss||-||
|Plus: Gains from fluctuation of fair||-||
|value (“-“ for loss)||||
|Investment gains (“-“ for loss)|XIII. 4|1,455,330,648.13|945,363,540.31|
|Incl. Investment gains from affiliates||-5,590,772.71|-5,934,878.05|
|II. Operational profit (“-“ for loss)||1,066,507,830.43|619,706,807.62|
|Plus: Non business income||-|12,401.40|
|Less: Non-business expenses||9,163,879.51|22,196,920.03|
|Incl. Loss from disposal of||-||
|non-current assets||||
|III. Total profit (“-“ for total loss)||1,057,343,950.92|597,522,288.99|
|Less: Income tax expenses||-||
|IV. Net profit (“-“ for net loss)||1,057,343,950.92|597,522,288.99|
|V. Earnings per share||||
|(I) Basic earnings per share||||
|(II) Diluted earnings per share||||
|VI. Other misc gains||||
|VII. Total of integrated income||1,057,343,950.92|597,522,288.99|

 Consolidated Cash Flow Statement
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
||||||||
|-|-|-|-|-|-|-|
|Items||Notes||Amount of current year||Amount of Last Year|
|I. Net cash flow from business operation|||||||
|Cash received from sales of products and providing of services|||42,524,900,792.38||37,098,796,920.51||
|Tax returned|||15,808,867.22||||
|Other cash received from business operation||V(1), 1)|4,742,948,288.83||5,604,316,499.20||
|Sub-total of cash inflow from business activities|||47,283,657,948.43||42,703,113,419.71||
|Cash paid for purchasing of merchandise and services|||31,779,772,963.55||23,466,485,913.43||
|Cash paid to staffs or paid for staffs|||1,462,218,085.03||1,118,176,198.56||
|Taxes paid|||7,793,961,358.12||6,251,459,270.87||
|Other cash paid for business activities||V(1), 2)|5,751,781,987.22||6,768,214,283.12||
|Sub-total of cash outflow from business activities|||46,787,734,393.92||37,604,335,665.98||
|Cash flow generated by business operation, net|||495,923,554.51||5,098,777,753.73||
|II. Cash flow generated by investing|||||||
||Cash received from investment retrieving||80,123.00||||
||Cash received as investment gains||326,819,319.15||||
||Net cash retrieved from disposal of fixed assets, intangible assets, and other||374,097.82||443,426.70||

long-term assets
CMPD2013Annual Report
||||||
|-|-|-|-|-|
||Other investment-related cash received|V(1), 3)|||
||Sub-total of cash inflow due to investment activities||327,273,539.97|443,426.70|
||Cash paid for construction of fixed assets, intangible assets and other long-term||324,441,222.50|67,530,599.54|
||aCsassehts paid as investment||33,964,976.91|251,803,226.65|
||Net cash received from subsidiaries and other operational units|V(3)|154,796,235.07|317,095,120.95|
|Other cash paid for investment activities||V(1), 4)|561,222,801.84|8,653,703.86|
|Sub-total of cash outflow due to investment activities|||1,074,425,236.32|645,082,651.00|
|Net cash flow generated by investment|||-747,151,696.35|-644,639,224.30|
|III. Cash flow generated by financing|||||
|Cash received as investment|||1,610,886,152.23|511,000,000.00|
|Incl. Cash received as investment from minor shareholders|||1,610,886,152.23|511,000,000.00|
|Cash received as borrowings|||19,699,741,577.81|10,400,528,146.29|
|Incl. Cash received as bondings|||3,003,382,977.23||
|Other financing-related cash received|||||
|Subtotal of cash inflow from financing activities|||21,310,627,730.04|10,911,528,146.29|
|Cash paid for recovering of debt|||12,914,869,820.00|8,571,472,506.54|
|Cash paid for dividend, profit or interest|||2,161,728,243.21|2,226,420,253.62|
|Incl. Dividend and profit paid by subsidiaries to minor shareholders|||149,669,583.36|439,232,521.54|
|Other cash paid for financing activities|||||
|Subtotal of cash outflow due to financing activities|||15,076,598,063.21|10,797,892,760.16|
|Net cash flow generated by financing|||6,234,029,666.83|113,635,386.13|
|IV. Influence of exchange rate alternation on cash and cash equivalents|||34,372,878.81|-9,241,637.86|
|V. Net increase of cash and cash equivalents|||6,017,174,403.80|4,558,532,277.70|
|Plus: Balance of cash and cash equivalents at the beginning of term||V.（4)|18,218,506,517.70|13,659,974,240.00|
|VI. Balance of cash and cash equivalents at the end of term||V.（4)|24,235,680,921.50|18,218,506,517.70|

 Cash Flow Statement (Parent Company)
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
||||||
|-|-|-|-|-|
|Items||Notes|Amount of current year|Amount of Last Year|
|I. Net cash flow from business operation|||||
|Cash received from sales of products and providing of services|||16,940,000.00||
|Tax returned|||||
|Other cash received from business operation|||8,493,448,589.73|4,336,612,910.00|
|Sub-total of cash inflow from business activities|||8,510,388,589.73|4,336,612,910.00|
|Cash paid for purchasing of merchandise and services|||||
|Cash paid to staffs or paid for staffs|||13,371,113.98|22,244,797.00|
|Taxes paid|||52,561,776.94|11,523,730.00|
|Other cash paid for business activities|||7,238,126,520.00|6,618,428,946.00|
|Sub-total of cash outflow from business activities|||7,304,059,410.92|6,652,197,473.00|
|Cash flow generated by business operation, net|||1,206,329,178.81|-2,315,584,563.00|
|II. Cash flow generated by investing|||||
||Cash received from investment retrieving||||
||Cash received as investment gains||893,433,193.19|322,930,935.00|
||Net cash received from disposal of fixed assets, intangible assets and||||
|oNthete cr aloshn gre-tceermive ads sfreotsm disposal of subsidiaries or other operational units|||||
||Other investment-related cash received||||
||Sub-total of cash inflow due to investment activities||893,433,193.19|322,930,935.00|
||Cash paid to acquire fixed assets, intangible assets and other long-term||2,982.00|18,800.00|
||aCsassehts paid as investment||1,815,902,000.00|315,346,836.00|

CMPD2013Annual Report
|||||
|-|-|-|-|
||Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities||||
|Sub-total of cash outflow due to investment activities||1,815,904,982.00|315,365,636.00|
|Net cash flow generated by investment||-922,471,788.81|7,565,299.00|
|III. Cash flow generated by financing||||
|Cash received as investment||||
|Cash received as loans||6,755,565,125.00|5,984,840,500.00|
|Other financing-related cash received||||
|Subtotal of cash inflow from financing activities||6,755,565,125.00|5,984,840,500.00|
|Cash to repay debts||5,487,436,500.00|1,933,901,300.00|
|Cash paid as dividend, profit, or interests||1,311,280,112.33|394,809,463.00|
|Other cash paid for financing activities|||-|
|Subtotal of cash outflow due to financing activities||6,798,716,612.33|2,328,710,763.00|
|Net cash flow generated by financing||-43,151,487.33|3,656,129,737.00|
|IV. Influence of exchange rate alternation on cash and cash||211,806.62|-3,086,966.00|
|eVq. uNiveat liennctrse a se of cash and cash equivalents||240,917,709.29|1,345,023,507.00|
|Plus: Balance of cash and cash equivalents at the beginning of term||5,036,890,168.00|3,691,866,661.00|
|VI. Balance of cash and cash equivalents at the end of term||5,277,807,877.29|5,036,890,168.00|

CMPD2013Annual Report Consolidated Statement of Change inShareholders’ Equity
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd.
|||||||||
|-|-|-|-|-|-|-|-|
|Items|Amount of current year|||||||
||Shareholders’ equity attributable to the parent company|||||Minor shareholders’ equity|Total of owners’ equity|
||Share capital|Capital reserves|Surplus reserves|Retained profit|Others|||
|I. Balance at the end of last year|1,717,300,503.00|8,386,926,298.12|1,027,780,997.90|12,173,100,556.73|88,407,178.38|6,045,763,466.00|29,439,279,000.13|
|Plus: Change of accounting policy|||||||0|
|Correcting of previous errors|||||||0|
|Others|||||||0|
|II. Balance at the beginning of current year|1,717,300,503.00|8,386,926,298.12|1,027,780,997.90|12,173,100,556.73|88,407,178.38|6,045,763,466.00|29,439,279,000.13|
|III. Amount of change in current year (“-“ for derease)||60,122,528.44|105,734,395.09|3,175,635,334.44|-9,505,824.86|6,145,901,771.52|9,477,888,204.63|
|(I) Net profit||||4,202,152,074.18||1,306,162,091.88|5,508,314,166.06|
|(II) Other misc. income|||||-9,505,824.86|9,239,670.53|-266,154.33|
|Total of (I) and (II)||||4,202,152,074.18|-9,505,824.86|1,315,401,762.41|5,508,048,011.73|
|(III) Inputting or withdrawing of shareholders’ investment||60,122,528.44||-405,592,193.75||5,541,001,830.59|5,195,532,165.28|
|1. Inputting of shareholders’ investment||||||5,161,250,375.40|5,161,250,375.40|
|2. Amount of share payment accounted into shareholders’ equity||||||||
|3. Others||60,122,528.44||-405,592,193.75||379,751,455.19|34,281,789.88|
|(IV) Profit allotment|||105,734,395.09|-620,924,545.99||-260,618,848.32|-775,808,999.22|
|1. Surplus reserves provided|||105,734,395.09|-105,734,395.09||||
|2. Providing of common risk provisions||||||||
|3. Dividends to the shareholders||||-515,190,150.90||-260,618,848.32|-775,808,999.22|
|4. Others||||||||
|(V) Internal transferring of shareholders’ equity||||||||
|1. Capital reserves transferred to share capital||||||||
|2. Surplus reserves transferred to share capital||||||||
|3. Making up losses by surplus reserves||||||||
|4. Others||||||-449,882,973.16|-449882973.16|
|IV. Balance at end of this year|1,717,300,503.00|8,447,048,826.56|1,133,515,392.99|1,534,873,5891.17|78,901,353.5217|12,191,665,237.52|38,917,167,204.76|

CMPD2013Annual Report Consolidated Statement of Change inShareholders’ Equity (Cont.)
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items|Amount of Last Year|||||||
||Shareholders’ equity attributable to the parent company|||||Minor shareholders’ equity|Total of owners’ equity|
||Share capital|Capital reserves|Surplus reserves|Retained profit|Others|||
|I. Balance at the end of last year|1,717,300,503.00|8,387,070,659.00|968,028,769.00|9,258,046,011.00|87,768,855.00|3,858,778,902.00|24,276,993,699.00|
|Plus: Change of accounting policy|||||||-|
|Correcting of previous errors|||||||-|
|Others|||||||-|
|II. Balance at the beginning of current year|1,717,300,503.00|8,387,070,659.00|968,028,769.00|9,258,046,011.00|87,768,855.00|3,858,778,902.00|24,276,993,699.00|
|III. Amount of change in current year (“-“ for derease)|-|-144,360.88|59,752,228.90|2,915,054,545.73|638,323.38|2,186,984,564.00|5,162,285,301.13|
|(I) Net profit||||3,318,266,875.59||959,252,227.90|4,277,519,103.49|
|(II) Other misc. income|||||638,323.38||638,323.38|
|Total of (I) and (II)|-|-|-|3,318,266,875.59|638,323.38|959,252,227.90|4,278,157,426.87|
|(III) Inputting or withdrawing of shareholders’ investment|-|-144,360.88|-|-|-|1,907,655,151.55|1,907,510,790.67|
|1. Inputting of shareholders’ investment|||||87,768,855.00|1,907,655,151.55|1,907,655,151.55|
|2. Amount of share payment accounted into shareholders’ equity|||||||-|
|3. Others||-144,360.88|||||-144,360.88|
|(IV) Profit allotment|-|-|59,752,228.90|-403,212,329.86|-|-679,922,815.45|-1,023,382,916.41|
|1. Surplus reserves provided|||59,752,228.90|-59,752,228.90|||-|
|2. Providing of common risk provisions|||||||-|
|3. Dividends to the shareholders||||-343,460,100.96||-679,922,815.45|-1,023,382,916.41|
|4. Others|1,717,300,503.00|8,387,070,659.00||||||
|(V) Internal transferring of shareholders’ equity||||||||
|1. Capital reserves transferred to share capital||||||||
|2. Surplus reserves transferred to share capital||||||||
|3. Making up losses by surplus reserves|1,717,300,503.00|8,387,070,659.00||||||
|4. Others||||||||
|IV. Balance at end of this year|1,717,300,503.00|8,386,926,298.12|1,027,780,997.90|12,173,100,556.73|88,407,178.38|6,045,763,466.00|29,439,279,000.13|

CMPD2013Annual Report Statement of Change inShareholders’ Equity (Parent Company)
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
|||||||
|-|-|-|-|-|-|
|Items|Amount of current year|||||
||Share capital|Capital reserves|Surplus reserves|Retained profit|Total of shareholders’ equity|
|I. Balance at the end of last year|1,717,300,503.00|8,927,054,193.00|976,829,604.90|4,995,735,955.13|16,616,920,256.03|
|Plus: Change of accounting policy|||||-|
|Correcting of previous errors|||||-|
|Others|||||-|
|II. Balance at the beginning of current year|1,717,300,503.00|8,927,054,193.00|976,829,604.90|4,995,735,955.13|16,616,920,256.03|
|III. Amount of change in current year (“-“ for derease)|-|-|105,734,395.09|436,419,404.93|542,153,800.02|
|(I) Net profit||||1,057,343,950.92|1,057,343,950.92|
|(II) Other misc. income|||||-|
|Total of (I) and (II)|-|-|-|1,057,343,950.92|1,057,343,950.92|
|(III) Inputting or withdrawing of shareholders’ investment|-|-|-|-|-|
|1. Inputting of shareholders’ investment|||||-|
|2. Amount of share payment accounted into shareholders’ equity|||||-|
|3. Others|||||-|
|(IV) Profit allotment|-|-|105,734,395.09|-620,924,545.99|-515,190,150.90|
|1. Surplus reserves provided|||105,734,395.09|-105,734,395.09|-|
|2. Providing of common risk provisions|||||-|
|3. Dividends to the shareholders||||-515,190,150.90515,190,150.90|-515,190,150.90|
|4. Others||||||
|(V) Internal transferring of shareholders’ equity|-|-||||
|1. Capital reserves transferred to share capital||||||
|2. Surplus reserves transferred to share capital||||||
|3. Making up losses by surplus reserves||||||
|4. Others||||||
|IV. Balance at end of this year|1,717,300,503.00|8,927,054,193.00|1,082,563,999.99|5,432,155,360.06|17,159,074,056.05|

CMPD2013Annual Report Statement of Change inShareholders’ Equity (ParentCompany)（Cont.）
The Fiscal Year of 2013
Prepared by: China Merchants Property Development Co., Ltd. In RMB
|||||||
|-|-|-|-|-|-|
|Items|Amount of current year|||||
||Share capital|Capital reserves|Surplus reserves|Retained profit|Total of shareholders’ equity|
|I. Balance at the end of last year|1,717,300,503.00|8,927,054,193.00|917,077,376.00|4,801,425,996.00|16,362,858,068.00|
|Plus: Change of accounting policy|||||-|
|Correcting of previous errors|||||-|
|Others|||||-|
|II. Balance at the beginning of current year|1,717,300,503.00|8,927,054,193.00|917,077,376.00|4,801,425,996.00|16,362,858,068.00|
|III. Amount of change in current year (“-“ for derease)|-|-|59,752,228.90|194,309,959.13|254,062,188.03|
|(I) Net profit||||597,522,288.99|597,522,288.99|
|(II) Other misc. income|||||-|
|Total of (I) and (II)|-|-|-|597,522,288.99|597,522,288.99|
|(III) Inputting or withdrawing of shareholders’ investment|-|-|-|-|-|
|1. Inputting of shareholders’ investment|||||-|
|2. Amount of share payment accounted into shareholders’ equity|||||-|
|3. Others|||||-|
|(IV) Profit allotment|-|-|59,752,228.90|-403,212,329.86|-343,460,100.96|
|1. Surplus reserves provided|||59,752,228.90|-59,752,228.90|-|
|2. Providing of common risk provisions|||||-|
|3. Dividends to the shareholders||||-343,460,100.96|-343,460,100.96|
|4. Others|||||-|
|(V) Internal transferring of shareholders’ equity||||||
|1. Capital reserves transferred to share capital|||||-|
|2. Surplus reserves transferred to share capital|||||-|
|3. Making up losses by surplus reserves||||||
|4. Others||||||
|IV. Balance at end of this year|1,717,300,503.00|8,927,054,193.00|976,829,604.90|4,995,735,955.13|16,616,920,256.03|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
I. General Information
China Merchants Property Development Co., Ltd. (the “Company”, or the “Group” when refers to the Company together with its subsidiaries), originally China Merchants Shekou Shareholding Co., Ltd., is a sino-foreign joint venture established on the base of Shekou China Merchants Port Service Co., Ltd. by China Merchants Shekou Industrial Zone Co., Ltd. (Shekou Industrial Zone). The Company was incorporated in Shenzhen, China in September 1990.
On February 23, 1993, the Company was approved by documentShen-Fu-Ban-Fu（1993）no. 358of the General Office of thePeople’s Government of Shenzhen Municipality to raise finance by issuing 27,000,000 A shares to the domestic investors, and 50,000,000 B shares to foreign investors which increasedtheCompany’s capital shares up to 210,000,000. The A shares and B shares were listed at Shenzhen Stock Exchange in June 1993.
In July 1995, part of B shares were listed in Singapore Stock Exchange by means of SDR (Singapore Depository Receipts,“新加坡托管收据” in Chinese).
In June 2004, the Company was renamed as “China Merchants Property Development Co., Ltd.” After dividend distributions and rights issues implemented during 1994-2004, theCompany’s total number of shares had increased to 618,822,672 up to December 31, 2004.
On January 18, 2006, as approved by theshareholders’ meeting, the A share relocation plan was implemented. Namely holders of current A shares received 2 A shares and RMB3.14 upon each 10 current A shares from the holders of non-current A shares. The total number of capital shares remains unchanged after completion of the relocation plan.
As approved by DocumentZheng-Jian-Fa-Zi[2006] no.67 issued by China Securities Regulatory Commission, the Company has made full right issue of 15,100,000 convertible corporation bonds to original A shareholders on August 30, 2006, the part of right issue waived by the original A shareholders would be placed offline to institution investors. The bonds are with face value of RMB100 each. The convertible part became negotiable in Shenzhen Stock Exchange since September 11, 2006 with ID of “CM Convertible Bond” and the convertible date was March 1, 2007.
On May 25, 2007, CM Convertible Bond was terminated from trading and converting. All of the bonds not converted yet were repurchased by the Company. Till then, there were totally 15,093,841 bonds (with total face value of RMB1,509,384,100) converted into 115,307,691 shares. The remained 6,159 convertible bonds (with face value of RMB615,900) were repurchased by the Company. Thus the capital shares of the Company had increased up to 734,130,363 shares.
As approved by documentZheng-Jian-Fa-Xing-Zi[2007] no.299 issued by China Securities Regulatory Commission, the company has placed 110,736,639 shares privately to China Merchants Shekou Industrial Zone Co., Ltd. on September 19, 2007. TheCompany’s capital shares have increased up to 844,867,002 shares since then.
On March 17, 2008, the plan for profit distribution and capitalizing of common reserves for year 2007 was passed by theShareholders’ General Meeting 2007, which was, basing on the total capital share of 844,867,002 at December 31, 2007, 3 bonus shares were to distributed to each 10 shares, meanwhile 2 new shares were to converted to each 10 shares from the common reserves basing on the same. Since then, the total capital shares of the Company would be increased to 1,267,300,503 shares.
As approved bydocumentZhen-Jian-Xu-Ke[2008] no.989 issued by China Securities Regulatory Commission, the Company issued 450,000,000 shares to existing A-share holders on November 26, 2008, among which 279,349,288 shares were subscribed by China Merchants
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
ShekouIndustrial Zone Co., Ltd.– one of the shareholders of the Company. The total capital shares of the Company have increased up to 1,717,300,503 shares since then.
As of December 31, 2013, the total of capital shares of the Company was 1,717,300,503including 891,504,855 shares under restriction for sale, account for51.91% of the total shares; and 825,795,648 non-restricted shares, account for48.08%.
The Company is in the property development industry, while the Group is mainly engaged in property development, public utilities (power supply) and property management.
China Merchants Shekou Industrial Zone Co., Ltd. is the holding shareholder of the Company, and China Merchants Group Ltd. is the ultimate holding shareholder, and China Merchants Group Co., Ltd. is the actual controller.Shareholders’ Meeting is the top authority of the Company with the power of decision-making on (but not limited to) business strategies, financing, investment, and profit distribution. The Board of Directors reports to theShareholders’ Meeting, and exercise the power of operational decisions. The management is responsible for implementing of decisions made by theShareholders’ Meeting, and the Board, as well as conducting of business operations.
II. Main Accounting Policies, Estimations and Basis Preparation of the Consolidated Financial Statements
1. Basis of financial statements
The Financial Statements of the Group are on the basis of going concern and actual trade, and following with the Enterprise Accounting Standard. This “Main Accounting Policies, Estimations and Basis of Preparation of the Consolidated Financial Statements” is providing the detailed rules and grounds for preparing of the Financial Reports.
2. Statement of compliance to the Enterprise Accounting
Standard
The financial statements prepared by the Group comply with the requirement of Enterprise Accounting Standards, and are truthfully and completely reflecting the financial positions of the Group, the operation results and cash flow of the Group as well.
3. Fiscal period
The fiscal year of the Group is the solar calendar year, namely the year started on January 1 and ended on December 31.
4. Presentation currency
The Company and its subsidiaries other than China Merchants Land Limited adopt RMBto measure items included in financialstatements. China Merchants Land Limited uses Hong Kong Dollar as its presentation currency for it is the main currency used in its primary business operation circumstance. TheCompany’s financial statements are presented in RMB.
5. Basis of Presentation and Principle of Pricing
The accounting basis of the Group is the accrual system. Except for transactional financial assets and sellable financial assets are accounted according to fair value, the financial statements take the historical cost as the accounting basis.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
6. Merger of companies
Merger of companies refers to the trades or issues regarding merger of two or more entities into one reporting entity. Assets and liabilities of the objects will be recognized on the date of merger or purchasing, which is the date of acquiring control power over the objects.
As for the merger of entities under common control, assets and liabilities acquired through merger are calculated at the book value of the merged party at the date of merger. The difference between the book value of net asset and the consolidated offer is adjusted to share capital premium in the capital reserves. If the share capital premium is not enough to be adjusted, the retained profit shall be adjusted.
As for the merger of entities under different control, merger cost refers to the fair value of assets paid, liabilities undertaken, and rights instruments issued by the buyer for purchasing of the controlling power of the target entity. When the merger cost is greater than the share of fair value of recognizable net asset of the bought enterprise, the balance is recognized as goodwill. When the merger cost is lower than the share of fair value of recognizable net asset of the bought enterprise, the balance will be accounted into current gain/loss account.
7. Basis of Preparation of Consolidated Financial
Statements
(1) Principle in recognizing of consolidation range
All subsidiaries and special-purpose entities under actual control of the Company are included in the consolidated financial statement of the Group.
(2) Accounting methods adopted in preparing of consolidated financial statements
Consolidated financial statements are prepared according to “Enterprise Accounting Standard No.33– consolidated financial statements. Major internal trades and transactions are neutralized when consolidated. Part ofshareholders’ equity not attributable to the Company are demonstrated individually as minorityshareholders’ equity undershareholders’ equity item in the consolidated financial statement.
When the accounting policies and fiscal periods of the subsidiaries are not complying with those of theCompany’s, they shall be adjusted according to theCompany’s accounting policy and accounting period.
For subsidiaries added as merger of enterprises under different control, the individual statement shall be adjusted basing on the recognizable net asset fair value on the day of purchase.
For subsidiaries added as merger of enterprises under common control, they will be regarded as occurred at the beginning of current term. Their assets, liabilities, business performance, and cash flow shall be included in the consolidated financial statements.
8. Cash and cash equivalents
Cash refers to in-stock cash and bank savings which are available for payment whenever needed. Cash equivalent refers to the investment held by the Company with mature date no more than three months, strong liquidity and low risk of value fluctuation that is easy to be converted into cash of known amount.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
9. Translation of businesses and accounts in foreign
currency
(1) Transactionsin foreign currencies
Foreign currency transactions at initial confirmation shall be translated with the approximate exchange rate on the exchange date. The exchange rates which are approximate to the exchange rate on the exchange date shall be determined according to the spot exchange rate of the current month of the transaction.
At the balance sheet day, foreign currencies are translated to RMB at the instant exchange rate of that day, the exchange difference caused by difference of the instant rate at that day and the rate adopted in initial recognition, or the exchange rate adopted in previous balance sheet, are accounted into current gain/loss account, except for: (1) The exchange difference of special foreign currency borrowing satisfying the conditions of capitalization, which is capitalized and accounted into cost of related asset; (2) Exchange difference of hedge instruments for purpose of avoiding exchange risks is treated by the way of accounting on hedge instruments;(3) Exchange differences caused by sellable non-monetary items (shares for instance), and exchange differences caused by fluctuation of other book balance other than retained cost of sellable monetary items, are accounted into current income account.
Non-monetary items in foreign currency and measured with historical costs are still measured at presentation currency with exchange rate of the transaction day. Non-monetary foreign currency items in fair value are translated at the rate when the fair value is determined. Differences between the presentation currency and original currency are reported as fair value fluctuation and accounted under current gain/loss account or other integrated income and recorded into capital reserves.
(2) Translation of financial statements in foreign currencies
Foreign currency financial statements prepared for theCompany’s overseas businesses are translated by the following methods: All asset and liability items in the balance sheet are translated at the exchange rate of the balance sheet date;shareholders’ equity items except for “retained profit” are translated at the exchange rate of the day when they happened; all items in the income statement and items reflecting the amount of profit distribution are translated at the similar exchange rate of the date when the trades happened; retained profit at the beginning of year is the undistributed profit translated at the end of previous year; retained profit at the end of year are demonstrated according to the calculation of profit distribution items after translated; the differences between the translated asset items and liability items and total amount ofshareholders’ equity items are demonstrated separately as difference of foreign currency statement translation undershareholders’ equity items in the balance sheet.
Foreign currency cash flow and overseassubsidiaries’ cash flow are translated on the similar exchange rate of the day when the cash flow happened. Influences of exchange rate movement on cash and cash equivalents are regarded as adjustment items and demonstrated under “influence of exchange rates on cash and cash equivalents” in the cash flow statements
10. Financial assets and liabilities
(1) Financial assets
1) Categories of financial assets
Financial assets are categorized as: financial assets accounted at fair value with fluctuation carried into current gain/loss account, held-to-maturity investments, loans and receivable accounts, and sellable financial assets.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Financial assets accounted at fair value with fluctuation carried into current gain/loss account are those hold for sale in a short term, and are listed under transactional financial assets in the Balance Sheet.
Held-to-maturity investments refer to those non-derivate financial assets which have fixed expiration date, retrievable amount, and the Company has definite intention and ability to hold under its possession until maturity.
Loans and receivable accounts are those non-derivate financial assets without quotation in the active market, but with fixed retrievable amount. Financial assets categorized under loans and receivables include notes receivable, account receivable, interest receivable, dividend receivable and other receivable.
Sellable financial assets are those non-derivate financial assets recognized as sellable at initial recognition, and financial assets could not be put under any other categories.
2) Recognition and accounting of financial assets
Financial assets or liabilities are recognized when the Group becomes a party of the contract of financial instrument. Financial assets and liabilities are measured at fair value initially. For financial assets and liabilities accounted at fair value with fluctuation accounted into current gain/loss account, the transaction expenses shall be accounted into gain/loss account directly. Whereas the expenses of financial assets and liabilities fall into other categories shall be accounted into initial amount recognized.
Fair value basis is adopted in successive measurement of financial assets measured by fair value and with variations accounted into current gain/loss account. Loans, other receivable accounts, and investment held to maturity are presented at retained cost.
Variation of fair value of the financial assets measured by fair value and with variations accounted into current gain/loss account is accounted to gain/loss of fair value. Interests or dividends gained during the period of holding are recognized as investment gains. The difference between the fair value and the initial book value is recognized to investment gain/loss, and the fair value gain/loss shall be adjusted accordingly.
Except for the impairment loss and exchange loss caused by foreign currency financial assets, the variation of fair value of financial assets are accounted intoshareholders’ equity straightly, and the accumulation of variation of fair value shall be carried over to current gain/loss at terminating of recognition of this particular financial asset. Interests announced or received upon the sellable liability instruments and sellable equity instruments are accounted into current gain/loss account.
3) Financial asset impairment
Except for financial assets accounted at fair value and variation accounted into current gain/loss account, the Company undertakes inspection on the book value of other financial assets at each balance sheet day, whenever practical evidence showing that impairment occurred with them, impairment provisions are provided.
Practical evidences on impairment of financial assets are the followings:
(1)The issuer or the debtor is in serious financial difficulty;
(2)The debtor has broken the conditions of contract, for instance default or overdue of payment for interest or principal
(3) With consideration of economic or legal factors, the Group decided to give way to the debtor who is in financial difficulty;
(4) There is great possibility that the debtor will bankrupt or use other debt reorganizing
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
process;
(5) Financial asset is not able to be traded in the active market because the issuer is in significant financial difficulty;
(6) It is hard to tell whether the cash flow of a particular asset in a portfolio has been declining, whereas upon overall evaluation, the Company discovered that the predicted cash flow of the portfolio has practically decreased since the initial recognition, and the decrease is quantifiable, including: 1) The debtor of the portfolio is becoming worse in ability of making payments; 2) Particular situation happened with the country or area where the debtor is located, which may cause obstructions for payment of the financial asset;
(7)Major negative change occurred with the technical, market, economical, or legal environment of thedebtor’s business territory, which may cause obstructions for the investor to retrieve the investment;
(8)The fair value of equity investment instrument is significantly decreasing or non-contemporarily decreasing;
(9)Other practical evidence showing that impairment has happened with the financial asset.
Financial assets measured at cost after amortization is written down to the current value of predicted future cash flow, the reduced amount is recognized as impairment loss and provision shall be provided upon it. If practical evidence showing that a particular financial asset has recovered in value, and practically related to the issues occurred after recognition of the loss, the recognized impairment loss is restored, and accounted to current gain/loss.
When impairment occurred with a sellable financial asset, the accumulated losses caused by decreasing of fair value which have originally been written intoowners’ equity shall be carried over to current gain/loss account. If practical evidence showing that the value of a particular financial asset has recovered in value after an impairment loss has been recognized and practically related to the issues occurred after recognition of the loss, the impairment loss recognized shall be restored and accounted into current gain/loss. Impairment loss of sellable equity investment instrument will be restored toowners’ equity when the fair value has increased afterward.
4) Transferring of financial assets
Recognition will be terminated when a financial asset satisfies one of the following conditions:(1) The rights set out by the contract by which the cash flow of the financial asset is collected have been terminated;(2) The financial asset has been transferred to other parties along with almost all of the risks and rewards attached to the financial asset;(3) The financial asset has been transferred to other parties, although neither transferred nor reserved the most risks and rewards attached to the financial asset, the Company gave away its controlling power over it.
If the firm neither transferred nor reserved almost all of the risks and rewards attached to the financial asset, and did not give away the control over the financial asset, then the relative financial asset is recognized to the extent of continuous involving in the financial asset, and relative liabilities as well. Continuous involving refers to the risk level of value fluctuation risk the financial asset may confront the firm.
When the overall transferring of particular financial asset has satisfied the conditions of termination, the difference between the book value and “the difference between the offered amount received and the accumulation of fair value fluctuation which has been accounted into miscellaneous income” shall be accounted into current income account.
When partial transferring of particular financial asset has satisfied conditions of termination, the book value of transferred financial asset shall be amortized between the terminated part and
un-terminated part according their corresponding fair value, and the difference between “the
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
total of the offer received in transferring and the accumulative of fair value fluctuation originally accounted into other misc. income amortizable to termination part” and “amortizable aforesaid book value” shall be accounted into current income account.
(2) Financial liabilities
At initial recognition, financial liabilities are classified into financial liabilities measured by fair value with changes accounted into current profit and loss account and other financial liabilities. Financial liabilities accounted at fair value and fluctuation accounted into current gain/loss account are categorized to transactional financial liabilities and those which assigned to be financial liabilities accounted at fair value and fluctuation accounted into current gain/loss account. Successive measurement of financial liabilities measured on fair value and fluctuation accounted into current gain/loss account shall be on fair value basis. Gains or losses from fluctuation of fair value or dividend or interests related to the financial liabilities shall be accounted into current gain/loss account.
Accounting of other financial liabilities is on practical interest basis; successive measurements are on amortized balance of cost.
When the current liabilities of particular financial liability have been wholly or partially relieved, recognition of the financial asset or part of it can only be terminated. The difference between the recognized book value of the terminated part and the consideration is accounted into current gain/loss.
(3) Recognition of fair value of financial assets and liabilities
1) If there is an active market for the financial instrument, its fair value is defined as the quotation in the active market. Financial assets or liabilities held by the Group or about to be held by the Group are recognized for their fair value upon the current quotation in the active market. If there is not such current quotation or inquiry price for the financial assets or liabilities, however there has been not significant change to the economical environment after the latest transaction, the market price of the latest transaction shall be used to recognize the fair value of the financial asset or liability. If there is significant changeafter the latest transaction day, the fair value shall be decided by adjusting of the latest transaction price with reference to the current prices or interest rates of similar financial assets or liabilities. When the Group has obtained sufficient evidence showing that the price of latest transaction is not the fair value, it could be adjusted appropriately and recognized as the fair value of the financial asset or liability. 2) When there is not any active market for a financial instrument, its fair value shall be decided by using of evaluating technique, which includes the prices decided by voluntary parties, current fair value of other substantial equivalent financial assets, cash flow discount method, or the pricing model of equity option.
11. Bad debt provision on receivable accounts
The Group uses the following situations as standards for recognition of bad debt lost on receivable accounts: wound-up, bankruptcy, receivership, serious shortage of cash, or serious natural disaster happened to the debtor, and the liabilities are not possible to be covered in an expectable time; the liability has not been covered for over three years; or there is definite evidence showing the liability is not possible to be covered or retrieved.
Allowance method is adopted in accounting of possible bad debts. Impairment tests are performed individually or in groups at end of period. Bad debt provisions are provided and accounted to current gain/loss account. Those receivable accounts with definite evidence showing that they are impossible to be retrieved, they will be provided for bad debt loss upon the statutory process of the Group, and shall be offset from the bad debt provisions.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
(1) Recognition and bad debt provision of individual receivable accounts with significant amount
Basis of recognition of Individual receivable accounts with amount over RMB5 million are individual receivable accounts recognized as receivable accounts with significant amount.
with significantamount
Basis of bad debt provision of The Group performs impairment test separately on individual receivable accounts with financial assets with large amounts; those financial assets significant amount tested separately with no impairment found shall be tested again along with the group of financial assets with similar risk characteristics. Financial assets confirmed for impairment shall not be tested along with the group of financial assets with similar risk characteristics.
(2) Recognition of bad debt provision on individual receivable accounts with insignificant amount.
Basis of bad debt The Group performs impairment test separately on receivable accounts with provision insignificant amount with evidence showing possibility of being bad debts; provided those financial assets tested separately with no impairment found shall be individually tested again along with the group of financial assets with similar risk characteristics. Receivable accounts that are confirmed for impairment shall not be tested along with the group of receivable accounts with similar risk characteristics.
(3) Receivable accounts with bad debt provisions on portfolio basis
Basis of recognition for portfolios
Portfolio I This portfolio is based on the nature of risks attached with the debtors, which are mainly receivable accounts tested individually with no impairment (including accounts with major or minor amount receivable from related parties of the Group, the government or its affiliates, reserve payment, and deposits, etc.). Thechance to find bad debt in these accounts is low. The portfolio covers all the receivable accounts other than those in portfolio I and those receivable accounts with bad debt provisions provided Portfolio II
individually. Bad debt provisions are decided by the Group with reference to its historical experiences and on age analysis basis.
Basis of bad debt provision
Portfolio I No bad debt provision is provided
Portfolio II Age analysis method
(4) Rate of bad debt provisions provided on account age basis
Age Percentage of providing on Percentage of providing on Other Accounts receivables(%) receivables(%)
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Percentage of providing onAccounts receivables (%)|
|2|
|5|
|20|
|50|
|100|

12. Inventories
Inventories consist of real estate development products, raw materials, finished products and stocks, low-value and consumable products and others.
The real estate development products are the real estate development products under construction, development products which have been completed, land to be developed, etc. The actual costs of real estate development products include the land transfer fees, infrastructure expenses, and expenditures on construction and installation works, the borrowing costs before the completion of the development projects and other related costs. When the inventories are delivered, costs are recognized using specific identification method.
Construction contracts are measured at actual costs, including related direct and indirect expenses occurred from signing to completion of the contract. Accumulated actual costs and accumulated recognized gross profit (loss) and settled prices are demonstrated at net value in the balance sheet after neutralization. The balance of “total of accumulated actual cost and accumulated recognized gross profit (loss)” over the “settled price” is demonstrated as inventory. The balance of “settled price” over “total of accumulated actual cost and accumulated recognized gross profit (loss)” is demonstrated as account received in advance.
Expenses such as traveling expenses and bidding expenses related to construction contract are accounted into contract cost when they can be distinguished and measured reliably, and the contract is possibly been engaged. Otherwise are accounted into current profit and loss account. Low-value consumables are amortized on one-off basis.
On the balance sheet day, inventories are accounted depending on which is lower between the cost and the net realizable value. When its net realizable value is lower than the cost, provisions for impairment of inventories shall be drawn. Realizable net value is, in daily transaction, the amount of predicted sales price less predicted cost at completion of construction, less predicted sales expense and tax. Recognition of realizable net value of inventory shall base on confirmed evidence obtained, with reference to the purpose to hold the inventory, and influence of post balance sheet issues.
After providing of inventory impairment provision, if the impacting factors that caused impairment of inventory were eliminated, and the realizable value of the inventory becomes higher than the book value, the inventory impairment provision formerly provided shall be
restored into current income account.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
13. Long-term share equity investment
Long-term equity investments are those share equities of the entities on which the Group is holding substantial control power, common control, or major influences, and those equity investments without control power, common control or major influence, and without quotations in an active market, and no reliable measurement on their fair value.
Control power refers to the power on an enterprise regarding its financial and business decisions, and benefits can be acquired from the business operation of the enterprise.
Common control means the Group has the power of control along with other parties as set out by contract. When none of single partner may dominate the business operation of a joint enterprise, and the decision-making process has to be consent to all of the parties, it is recognized as common control.
Major influence means the Group has the power to participate in the control of financial issues and decision-making process, but has no control individually or together with other parties. Major influence is recognized basing on theGroup’s shareholding over20% (included) but lower than50%, directly or indirectly, in an entity. No major influence is recognized if there is definite evidence showing that the Group is not able to participate in the decision-making process of the invested entity.
Long-term equity investments acquired through merger of entities under common control are recognized of its costs according to the share of book value of theowners’ equities at the date of merger. Long-term equity investment acquired through merger of entities under different control can be decided for its cost by the combination of the fair values of the assets paid for trade of control power, liabilities undertaken, and equity securities issued.
Investments of the Group on subsidiaries are on cost basis, and adjusted on equity basis at preparing of consolidated financial statements; investments on joint ventures are on equity basis; long-term equity investment without control power, common control or major influences, and there is no quotation in an active market, the fair value is not able to be measured reliably are on cost basis; long-term equity investment without control power, common control, or major influence, but there is quotation in an active market, and the fair value can be measured reliably, could be accounted as sellable financial assets.
Investments of the Group on subsidiaries are on cost basis, and adjusted on equity basis at preparing of consolidated financial statements; investments on joint ventures are on equity basis; long-term equity investment without control power, common control or major influences, and there is no quotation in an active market, the fair value is not able to be measured reliably are on cost basis; long-term equity investment without control power, common control, or major influence, but there is quotation in an active market, and the fair value can be measured reliably, could be accounted as sellable financial assets.
When cost basis is adopted, long-term equity investments are accounted at initial investment costs. The costs are adjusted when additional investments were made or investment retrieved. When equity basis is adopted, the gain/loss of the investment shall be the share of net gain/loss of the invested entity in current year. At recognition of the share of net gain/loss of the invested entity, recognition shall be upon adjustment of the net profit basing on the fair value of the recognizable assets, according to the accounting policies and fiscal period of the Group, with the share of gain/loss of internal trade among the joint-ventures. For those long-term equity investments in joint-ventures held prior to the initiative execution, if there is debit difference of equity investment related to the investment, the investment gain/loss shall be recognized after deducting of debit differences of the equity investment amortized to the retained period straightly.
Those long-term equity investments without common control or major influence due to reducing
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
of investment input, and there is no quotation in an active market, and their fair value are not able to be measured reliably, are changed to be on cost basis; and those investment with control power due to increasing of investment input, are changed to be on cost basis too; those investment with common control or major influence but no control power due to additional investment, or long-term investment without control but common control or major influence due to disposal of investment equity, are changed to be on equity basis.
At disposal of long-term equity investment, the difference between the book value and the actual consideration acquired is accounted into current investment gains. Long-term equity investments shall be valued on equity basis, if it is accounted intoowners’ equity due to other changes inowners’ equity of the invested entities, the part of investment originally accounted toowners’ equity shall be transferred to current investment gains at disposal.
14. Investment property
Investment properties include the land use rights on rental and the land use rights that are held and prepared for transfer after appreciation, and the buildings on rental.
Investment properties are booked at their actual costs, purchased properties consists of purchase price, taxes, and other expenses directly related to the asset; cost of self-built property consists of construction costs and necessary expenses to make the asset usable.
The Group adopts the cost model to have follow-up measurements of the investment real estate, and to conduct depreciation or amortization according to the policies that are in consistent with the land use rights. The expected useful life, net retained value rate, and annual depreciation (amortizing) are:
|||
|-|-|
|Depreciation age (year)|Expected ratio ofretained value %|
|Retained useful age of the land use right|0|
|20 yrs|10|

When an investment property has changed to self-use, it will be transferred to fixed asset or intangible asset since the day when the change happened. When the usage of a self-use property was changed to for rental or value adding purposes, it will be transferred from fixed assets to investment property. The book value before will be used as the book value after.
At disposal of investment properties, or retrieve from the property permanently and no further financial benefit is expected to obtain from the property, recognition of the investment property will be terminated. Balance of income from disposal, transferring, discarding, or clearing of investment properties less the book value and related taxes is counted into current gain/loss account.
15. Fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for operation& management, and have more than one year of service life.
Fixed assets are houses and plants, equipment, vehicles, office facilities and others, which are
booked as the cost of obtaining. Fixed assets purchased from abroad are booked as the price
plus tariff and all necessary expenses to make the asset usable; cost of fixed assets which are
built by the Group itself consists of the necessary costs of building and expenses before the asset
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
become usable.; fixed assets input by investors are booked at the prices setup in the investment contract, however if the contract price is not a fair value, the fair value shall be adopted; fixed assets obtained in term of finance lease, shall be booked at the lower one of the fair value of the leased asset at the day of leasing and the lowest rental payment.
Subsequence expenses related to the fixed asset, including repairing, and rebuilding, etc, shall be accounted into cost of fixed assets when they are satisfying the conditions of recognition. The replaced part of the assets shall be terminated to recognition of book value; if the recognition condition is not satisfied, shall be accounted into current gain/loss account at occurring.
Except for the fixed assets which have been fully depreciated but still in use, the Group provides depreciation on all fixed assets. Straight age basis is adopted in depreciation, and accounted into costs of related assets or current expenses. The depreciation age, expected ratio of retained value, and annual depreciation ratio are as the following:
||||
|-|-|-|
|Categories|Depreciation age(yrs)|Expected ratio ofretained value %|
|Houses & plants|10–50|5-10|
|Equipment & machinery|10–20|5-10|
|Transportation equipment|5–10|5|
|Office appliances|5–10|5|

The Group performs verification on the depreciation age, expected ratio of retained value, and annual depreciation ratio at end of each fiscal year. Any change will be treated as change of accounting estimation.
When fixed asset is disposed, or made no financial benefit by using or disposing it, recognition is terminated. Income from disposal, transferring, discarding of fixed assets, less its book value and taxes, is accounted into current income account.
16. Construction in process
Constructions in process are measured on actual costs. Construction projects by the Group itself are measured upon direct materials, wages, and construction fee; outsourced projects are measured upon project consideration; equipment is measured upon the value of equipment, installation fee, and test expenses. Cost of construction in process includes borrowing expenses and exchange gain/loss to be capitalized.
On the date when a construction in process became usable, it will be transferred to fixed assets or other long-term asset according to the budget and cost on their estimated value, and depreciation shall begin in the very next month. The difference of original value of the fixed asset shall be adjusted upon completion of acceptance procedures.
17. Borrowing expenses
Borrowing expenses include borrowing interests, amortizing of discount or premium, auxiliary
expenses, and exchange balances due to borrowings in foreign currencies. Borrowing expenses
that can be attributed for purchasing or construction of assets that are complying with
capitalizing conditions start to be capitalized when the payment of asset and borrowing
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
expenses have already occurred, and the purchasing or production activities in purpose of make the asset usable have started; Capitalizing will be terminated as soon as the asset that complying with capitalizing conditions has reached its usable or saleable status. The other borrowing expenses are recognized as expenses when occurred.
Assets satisfying conditions of capitalization refer to the fixed assets, investment property and inventory, which need a long period of time (usually over one year) to be made usable or sellable.
In property development projects, purchasing or production activities aiming at making the property usable or sellable are defined aswhose land rights are acquired, and constructions (eg. Foundation engineering or other substantial construction)have been started. The state of usable or sellable refers to receiving of the construction project completion filing receipt.
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of the bank saving interest of unused borrowed fund or provisional investment gains; Capitalization amounts of common borrowings are decided by the weighted average of exceeding part of accumulated asset expenses over the special borrowing assets multiply the capitalizing rate of common borrowings adopted. Capitalization rates are decided by the weighted average of common borrowings.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization is suspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended until the purchasing, construction, or manufacturing process is resumed.
18. Intangible assets
Intangible assets of the Group are those land using rights and software acquired for self-use. Land using rights for business operation are accounted as inventories. Intangible assets are initially measured by their costs. Intangible assets purchased are booked at the actual cost to purchase and relative expenses. Intangible assets inputted by investors are booked at the contract or agreement price, but if the contract or agreement price is not fairly acceptable, it will be booked at fair value.
Land using rights are amortized straightly to the usable years since the date of acquiring; software and other intangible assets are amortized straightly to the shortest one of anticipated useful years, beneficiary years stipulated by contracts, and legal effective years. The amortized amounts shall be accounted into cost of related assets and current gain/loss according to the beneficiary objects.
As for those intangible assets with limited service life, their anticipated service life and amortizing basis shall be revised at end of each fiscal year. Changes shall be treated as change of accounting estimation if any. The anticipated useful age of intangible asset with uncertain service life shall be revised in each fiscal term. If there is evidence showing that the useful life is limited, then it will be estimated and amortized to the period.
19. Impairment of non-financial long-term assets
The Group performs verifications on subjects such as long-term equity investments, fixed assets, constructions in process, and intangible assets with limited useful life. Whenever one or more of the following evidences indicating that impairment has happened, the impairment test shall be performed. Impairment tests will be undertaken upon goodwill and intangible assets with uncertain useful life, whether or not there is evidence of impairment. If it is hard to measure the retrievable amount of a single asset, it shall be tested along with a portfolio of assets.
If the book value of an asset is greater than its retrievable amount, the difference shall be
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
recognized as impairment loss. Once impairment losses have been recognized with the above-said assets, they are not written back in successive fiscal periods. Retrievable amount of asset refers to the higher one of the net amount of fair value minus disposal expense and the current value of anticipated future cash flow of the asset.
Evidences of impairments:
(1) When the market price of an asset has declined significantly, and the scale of decline is obviously greater than the anticipated scale of decline upon time or normal use;
(2) When there could be major change with the economical, technical or legislative environment and the market of the asset in current time or a close future, therefore negative influence could be made on the enterprise;
(3) Market interest or other reward rate in other market has increased, therefore influences the discount ratio of current value of anticipated future cash flow, which may cause major decrease of retrievable amount of the asset;
(4) There is evidence showing that the asset is out of date or has been damaged;
(5) The asset has already been or will be put into idle, suspended, or disposed of in advance;
(6) If there is any internal report showing that the economical performance has been or will be lower than it was expected, e.g. the net cash flow or operational profit (or loss) the asset contributed is far lower (or higher) than it was expected;
(7) Other evidence showing that impairment could have occurred.
20. Goodwill
Goodwill is the difference of the investment cost or cost of merger under different control over the share of recognizable net asset fair value at the date of acquisition of the acquired entity.
Goodwill related to subsidiaries are presented individually in consolidated financial statements, goodwill related to affiliates are included in the book value of long-term equity investment.
21. Long-term amortizable expenses
Long-term amortizable expenses are those already occurred and amortizable to the current term and successive terms for over one year (not included). Long-term amortizable expenses are evenly amortized to the benefit period. In case the long-term amortizable expense item is not benefiting the successive periods, the retained value shall be transferred to current gain/loss account in whole.
22. Employees’ remunerations
Employees’ wages payable are recognized as liabilities in the fiscal period when the employees are providing services to the Group. It will be accounted into cost and expenses of related assets according to the beneficiary object which is served by particular employee. Compensations for dismissing of service contract with employees shall be accounted into current gain/loss.
Employees’ wages are including the expenses that related to the service of the employees, such as salaries, bonus, allowances, welfare, social security, housing fund, trade union allowance, and training fee.
If the service of an employee is dismissed before expiration of the service contract, or as compensation proposal for voluntary resign of employee, if the Group has already produced plan to dismiss their service or proposed compensation scheme, and will be put into operation,
and the Group is not able to dismiss the service contract or lay-off proposal, the anticipated
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
liability shall be recognized on the compensations to the employees to be dismissed, and accounted into current gain/loss.
23. Equity instrument
Equity instrument refers to the contract indicating that the Group is holding the retained equity of an asset after deducting of all liabilities. Transaction expenses occurred in issuing of equity instruments by the merger parties shall be reduced from the premium of equity instruments, if it is not sufficient to be reduced, the retained gains shall be reduced. For the other equity instruments, the consideration received by issuing shall be added toshareholders’ equity after deducting of transaction expenses. Consideration and transaction expense at repurchasing of equity instruments are reduced fromshareholders’ equity. No gains or losses are recognized at issuing, repurchasing, disposing, or canceling of equity instruments.
Allocations made by the Group against equity instruments (exclude share dividends), is reduced from theshareholders’ equity. The Groupdoesn’t recognize the fluctuate amount of fair value of equity instruments.
24. Expected liabilities
Liabilities are recognized when all of the following conditions are satisfied by business operation regarding contingent issues such as external guarantee, discounting of commercial drafts, unsettled lawsuit or arbitrations, and quality warrant: It is an contemporary obligation the Group undertakes; executing of the obligation may cause benefit outflow; the amount of the obligation can be measured reliably.
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility, and with considerations to the relative risks, uncertainty, and periodic value of currency. When the periodic value of currency is with major influence, then the best estimation will be determined at the discount of future cash outflow. The book value of expected liability is revised at balance sheet day, and adjustment will be made to reflect current best estimation.
25. Revenue recognition
(1) Principles to recognize revenue: business revenues of the Group are mainly sales of property products, rental, property management fee, public facilities (power supply) and construction contracts. Revenue recognition principles are as follow:
1) Property product revenue is recognized when the following conditions are satisfied:
A. The sales contract is filed by the authority of land administration;
B. Completion and reception of the property;
C. All of the payments or rights on the payment from buyers of property have been obtained by the company (e.g. the bank has issued written approval to accept the mortgage);
D. Handover procedures have been completed, or it may be regarded as accepted by the buyer according to the property trade contract.
2) Rental income: rental incomes from investment property are recognized on straight basis to the periods of rental as set by the contract.
3) Public utility service income: recognized as the power supplying has been done, and the related financial benefits can inflow and be measured reliably.
4) Property management fee: recognized when service has been delivered, the related monetary
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
benefit can inflow to the company, and both of the income and cost can be measured reliably.
26. Construction contracts
Construction contract incomes and costs are recognized on percentage basis at balance sheet day when the income could be measured reliably, the monetary benefit may inflow to the Group, actual costs could be divided and measured significantly, the completed costs and expected successive costs could be determined reliably. When percentage basis is adopted, the percentage of progress is determined by the ratio of cost already occurred on expected total cost / completed workload on planned total workload, or actually measured progress.
If the results of construction contract are not able to reliably estimated, but the costs can be recovered, income shall be recognized at the cost actually recovered, contract costs are recognized as contract expenses at current term; if the costs are not recoverable, they are recognized instantly as contract cost rather than contract income.
Construction contracts are verified at end of each term. Loss provisions are provided whenever the expected total cost of a construction contract will be greater than the expected total income. The expected loss is recognized as current gain/loss.
27. Government subsidy
Government subsidies are those monetary or non-monetary capital received from the government without any consideration.
Government subsidies are recognized as soon as the conditions attached to them are satisfied and the payment are received.
Government subsidies in term of monetary capital are measured at actual amount. Government subsidies on fixed amount or expected to be receivable as long as the conditions will certainly be satisfied, are measured at receivable amount. Government subsidies in term of non-monetary capital shall be measured at fair value. If no fair value could be reliably obtained, it shall be measured at nominal value (RMB1.00).
Government subsidies are also categorized as asset-related subsidies and income-related subsidies. Asset-related subsidies are those obtained by the Group for the purpose of purchasing or constructing of long-term assets; while the income-related subsidies are those other than asset-related subsidies. In case there is no such statement about the nature of subsidy in the government document, the Group will recognize with above principles.
Asset-related government subsidies are recognized as deferred income, and accounted on average basis to current gain/loss for the useful life of the asset. Income-related government subsidies are recognized as deferred income when they are used to compensate expenses or losses in future period, and accounted to gain/loss account of the related period; whereas accounted to current gain/loss when they are used to compensate expenses or losses already occurred.
28. Deferred income tax asset and deferred income tax liability
The Group calculates and recognizes the deferred income tax assets and liabilities basing on the differences between the tax base and their book value (provisional difference). No deferred income tax asset is recognized by the Group if it is deductible in succeeding periods according to the law.
Deferred income tax asset generated by temporary deductible differences is recognized to the
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
extent of taxable income that is possibly deducted from temporary deductible difference. For deferred income tax asset which has already been recognized, as long as it is possible that no enough taxable income will be obtained in the future period, the book value of the deferred income tax asset shall be deducted. Whenever obtaining of taxable income became possible, the reduced amount shall be restored.
29. Leases
The Group categorizes the leasing businesses to finance leasing and operational leasing at the date of occurring.
Finance leasing refers to those leased assets with all of risks and rewards attached to them being practically transferred. When the Group is the lessee, the book value of the leased asset will be the lower one of fair value and the current value of lowest rental payment; while the lowest rental payment will be booked as long-term payable account; the difference between the above two will be recorded as un-recognized financial expenses.
Operational leasing refers to leased assets other than finance leasing. When the Group is the lessee, the rental shall be accounted into asset cost or current gain/loss on straight basis; while the Group is the leaser, the rental shall be accounted as revenue on straight basis to the rental period.
30. Accounting of income tax
Liability method is adopted in accounting of income tax in the balance sheet. Income tax expense consists of current year income tax and deferred income tax. Except for the current year income tax which is accounted intoshareholders’ equity, and the deferred tax intoshareholders’ equity, and the deferred income tax due to merger of entities used to adjust the book value of goodwill, other current year income tax and deferred income tax are accounted into current gain/loss.
Current year income tax refers to the amount of tax payable to the tax bureau upon the trade and transactions occurred in current year, i.e. tax payable. Deferred tax refers to the difference between the deferred income tax asset recognized on the basis of balance sheet liability basis and the payable amount of deferred income tax liability at the end of year.
31. Segment information
Business segments are decided according to the organization structure, management requirement and internal reporting system. Reporting segments are decided according to business segments. Business segments refer to the components within the group satisfying the following conditions: the component is able to contribute income in daily operation and costs as well; it is possible for the management to evaluate the business results, so that it could be decided to allocate resources; financial position, business performance and cash flow information may be acquired by the company.
Transactions among segments are decided upon market prices, common expenses are allocated on rational portions, except for those could not be allocated.
32. Accounting basis for transferring of financial assets and securitization of non-financial assets
When financial assets are transferred, judgment shall be done upon all of the risks and rewards attached to the financial assets: when all of them are transferred, the financial asset shall be
terminated; almost all of the risks and rewards attached to the financial asset are reserved, it
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
will not be terminated; If neither transferring nor reserving of all the risks and rewards happened, the level of control power shall be determined: when the control power on the asset is abandoned, it will be terminated; if the control power is not abandoned, the level of involvement shall be decided to recognize the amount of assets and liabilities. When the financial asset is satisfying the conditions of overall terminating recognition, the difference between the consideration and book value shall be accounted into current gain/loss account. The accumulated variation of fair value of the financial asset shall be transferred to current gain/loss too;when the conditions of partial transferring are satisfied, the fair values of the terminated part and the non-terminated part are separated, and the separated book value shall be used as reference to the overall transferring. If no condition of termination is satisfied, the consideration shall be recognized as a financial liability.
33. Remarks on main accounting estimations
The Group adopts a number of estimations and assumptions at preparing of financial statements, these estimations and assumptions could make influences on the application of accounting policies and amounts of assets, liabilities, revenue, and expenses. Actual situation may be different with these estimations. Management of the Group will perform continuous evaluation on the judgment of key assumptions and uncertain factors. Influences of change in accounting estimations will be recognized in the current term or the future term.
The following estimations and assumptions could cause major risks on adjusting of the book value of assets and liabilities in future periods.
(1) Impairment of account receivable
The Group measures account receivable upon the retained costs at balance sheet day to evaluate whether impairment has occurred, and the amount of impairment. Objective evidences of impairment include observable data which indicates great decline of future cash flow with individual or portfolio of receivable accounts, or data shows significant negative situation of the debtor. Whenever there is evidence showing that the value of particular receivable account has recovered, and practically related to the issue which had been recognized, the impairment loss recognized originally shall be restored.
(2) Inventory impairment provision
The Group evaluates the realizable net value of inventories on a regular base, and the difference of inventory cost over the realizable value will be recognized as inventory impairment loss. When the Group is estimating the realizable net value of an inventory, it is decided upon the amount of anticipated sales price minus costs to completion, sales expenses and taxes. If the actual selling price or cost is different to the estimated amounts, the management shall adjust the realizable net value accordingly. Therefore the estimated results upon current experience may be different with those of in the future, which may cause adjustment on the book values of balance sheet. Thus the amount of inventory impairment provision could change along with the aforesaid situation. Adjustment on inventory impairment provision will therefore influence the gain/loss account of current term.
(3) Accounting estimation of goodwill impairment provision
The Group performs impairment test on goodwill items. Accounting estimations are used to determine the current value of future cash flow, which is the retrievable amount of the group of assets.
If the management is revising the gross interest rate adopted in accounting of future cash flow of an asset group or portfolio of groups, additional impairment provision shall be provided on goodwill if the revised gross interest rate is lower than the current one.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
If the management is revising the discount rate before tax which is applying on the cash flow, additional impairment provision shall be provided on goodwill if the revised discount rate before tax is higher than the current one.
If the actual gross interest rate or discount rate before tax is higher or lower than the estimation of management, the Groupdoesn’t write back the impairment loss of goodwill which has been provided previously.
(4) Accounting estimation of fixed asset impairment provision
Impairment test is done upon fixed assets such as houses and plants, and equipment, which are showing evidence of impairment. Retrievable amount of fixed asset is the higher one of current value of anticipated cash flow and fair value of the asset after deducting of disposal expenses, accounting estimation is adopted in accounting of this subject.
If the management is revising the gross interest rate adopted in accounting of future cash flow of an asset group or portfolio of groups, additional impairment provision shall be provided on the fixed asset if the revised gross interest rate is lower than the current one.
If the management is revising the discount rate before tax which is applying on the cash flow, additional impairment provision shall be provided on the fixed asset if the revised discount rate before tax is higher than the current one.
If the actual gross interest rate or discount rate before tax is higher or lower than the estimation of management, the Groupdoesn’t write back the impairment loss of fixed asset which has been provided previously.
(5) Accounting estimation of recognition of deferred income tax assets
Estimation of deferred income tax asset is basing on the estimation of tax payable and applicable tax rate of each year, actualizing of the deferred income tax asset is dependent on whether the Group could obtain sufficient taxable income. Change of future tax rate and writing back of provisional difference could influence the income tax expense (income) and balance of deferred income tax. These changes in estimation could cause major adjustment on deferred income tax.
(6) Usable life of fixed and intangible assets
The Group revises the anticipated useful life of fixed assets and intangible assets as least once at end of each year. Useful life is decided by the management basing on historical experiences about similar assets, and with reference to the estimation wildly adopted in the industry as well as expected technical upgrading. Depreciation expenses and amortized expenses of future periods are adjusted as soon as major changes happened to previous estimations.
III. Alteration of Accounting Policies and Estimations
1. No alteration of accounting policies or estimations occurred in the report period
2. Impact of alteration of accounting policies and estimations
In the original estimation of bad debt provisions provided on receivable accounts, the recognition standard was relatively high and the age classification was complicated. For the purpose of improving the practice of bad debt provision, the 3rd provisional meeting 2013 of the 7th Board had approved the proposal of revising the accounting estimation regarding providing of bad debt provisions, which was thereafter approved by the 7th Supervisory Committee at the 8th meeting of 2013.
The revising of policies on bad debt provisions was mainly about:
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
1. Recognition of single receivable account with major amount was formally RMB10 million, which was changed to RMB5 million.
2. The rate of bad debt provision on age basis for portfolio II was adjusted as the following:
||
|-|
|Rate of provision on receivableaccounts % - before|
|1|
|2|
|3|
|5|
|10|
|30|
|50|
|80|
|100|

IV. Taxation
||
|-|
|Tax basis|
|Taxable income|
|Income from sales or leasing of property|
|Income from sales of goods (Note 2)|
|Income from sales of goods and powersupply(Note 2)|
|Income from property sales – amount ofdeducted items|
|Amount received for land using rights andestates|
|70% of the original value of estates orrental(Note 3)|
|Operational tax (or VAT paid)|
|Operational tax (or VAT paid)|

Note 1: According to Tax Regulations of Hong Kong, the income tax rate on the subsidiaries of the Company located in Hong Kong is16.5%, while the income tax rate on other subsidiaries is25%.
Note 2: VAT amount is the balance of output tax less deductible input tax. Output tax is
calculated basing on the sales income and related tax rates provided by tax law.
Note 3: Property taxes are paid upon70% of the original value of fixed property and rental
property times statutory tax rate, or rental income times statutory tax rate. Newly constructed
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
properties are free of property tax for the first three years upon completion after filed to the tax authority.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
V. Enterprise consolidation and consolidated financial statements
(I) Subsidiaries
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|

 Subsidiaries acquired from merger of enterprises under common control
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Ltd. liability|Zhangzhou|Propertydevelopment|RMB45,000|Property development and sales|22,950.00|51.00|51.00|Yes|325,031,109.56|
|Ltd. liability|Zhangzhou|Propertymanagement|RMB50|Property management, decoration, consultancy, property facilitysales, maintenance, property leasing and agency|50.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Zhangzhou|Propertydevelopment|RMB4,000|Property development and sales|4,132.72|100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD160,000|Investment|130,132.45|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB300,000|Property development and sales|375,747.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Power supply|RMB5,700|Power supply and sales|59,297.80|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertymanagement|RMB2,500|Property management, decoration, consultancy, property facilitysales, maintenance, property leasing and agency|16,920.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Measurenment&test|RMB150|Special measurement technologies authorized by ShenzhenQuality and Technical Supervisory Bureau|150.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertymanagement|RMB1,120|Property management, decoration, consultancy, property facilitysales, maintenance, property leasing and agency|1,120.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertydevelopment|HKD4,742|Operating and developing of land T105-0114 located inShekou, renting and managing of own properties|3,688.71|65.07|65.07|Yes|42,046,009.47|
|Ltd. liability|Shenzhen|Propertymanagement|RMB3,600|Developing of land SKN401 located in Shekou, construction ofcommerce buildings and facilities|3,600.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertymanagement|RMB200|Managing of propoerties under possession|120.00|60.00|60.00|Yes|-1,936,145.96|

Subsidiaries acquired from merger of enterprises under different control
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Ltd. liability|Tianjin|Property|RMB10,000|Property development|30,055.21|100.00|100.00|Yes|Not applicable|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|||development|||||||||
|Ltd. liability|Tianjin|Propertydevelopment|RMB30,000|Investing in property development by its own capital|18,000.00||60.00|60.00|Yes|88,026,633.60|
|Ltd. liability|Tianjin|Propertydevelopment|RMB3,000|Investment in property development, high-tech, construction,gardenning by its own capital|2,310.00||77.00|77.00|Yes|7,078,114.95|
|Ltd. liability|Harbin|Propertydevelopment|RMB5,000|Property development, property management, agency, interiordecoration, investment in commerce and education, propertyleasing|8,025.00||50.00|50.00|Yes|12,568,221.14|
|Ltd. liability|Harbin|Propertydevelopment|RMB2,000|Property development|340.00||85.00|85.00|Yes|38,028,378.75|
|Ltd. liability|Qingdao|Propertydevelopment|RMB2,640|Property development and sales|1,837.30||51.00|51.00|Yes|156,493,862.83|
|Ltd. liability|Shanghai|Propertydevelopment|RMB1,000|Property development, interinal decoration service, trade ofconstruction materials|1,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shanghai|Propertydevelopment|RMB3,000|Property development and sales|35,325.00||60.00|60.00|Yes|308,209,766.77|
|Ltd. liability|Kunming|Propertydevelopment|RMB1,000|Property development, sales, rent, decoration, agency, propertymanagement|600.00||60.00|60.00|Yes|-6,579,163.05|
|Ltd. liability|Foshan|Propertydevelopment|RMB1,000|Property development|10,510.00||51.00|51.00|Yes|88,300,523.24|
|ShareholdingLtd.|CaymanIslands|Investment|HKD30,000|Investment and shareholding|475,799.56||74.35|74.35|Yes|2,075,109,818.07|
|Ltd. liability|HK|Investment|HKD1|Investment|0.81||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD1|Investment|0.81||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Hotel service|RMB600|Hotel service consultancy and training, hotel operation, restaurant,laundry, entertainment and grocery store|1,098.37||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB100,000|Real-estate development and operation on legal lands|50,050.00||50.00|50.00|Yes|478,001,641.97|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB100|Property development|8,266.60||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Property|RMB1000|Property development, agency, investment of industry|11,755.00||51.00|51.00|Yes|130,941,276.11|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|||development|||||||||
|Ltd. liability|Shenzhen|Trade|RMB100|TV, stereo, set-top box, DVD player, electronic materials, tubes|100.00||100.00|100.00|Yes|Not applicable|

 Subsidiaries acquired by other means
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Ltd. liability|Beijing|Propertydevelopment|RMB3,000|Property development and sales|3,000.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Beijing|Propertymanagement|RMB500|Managing and operating of Hanghua Technologies and TradeCenter including the parking lot, property management,redecoration, consulting, sales of property equipment, andmaintainance|400.00|80.00|80.00|Yes|5,009,617.73|
|Ltd. liability|Beijing|Propertydevelopment|RMB35,000|Property development, interior decoration, sales of constructionmaterial, import and export of technologies|17,500.00|50.00|50.00|Yes|1,083,696,920.33|
|Ltd. liability|Beijing|Propertydevelopment|RMB38,000|Property development, sales of its products, hotel development,import & export of goods and technologies|22,800.00|60.00|60.00|Yes|86,371,797.60|
|Ltd. liability|Beijing|Propertydevelopment|RMB1,000|Property development|700.00|70.00|70.00|Yes|2,999,560.05|
|Ltd. liability|Tianjin|Propertydevelopment|RMB3,000|Property development, sales, and services|3,000.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Tianjin|Propertydevelopment|RMB4,000|Property development, sales, and services|3,000.00|75.00|75.00|Yes|11,142,732.16|
|Ltd. liability|Tianjin|Propertydevelopment|RMB3,000|Property development, sales, leasing, management andinformation service|3,000.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Tianjin|Propertydevelopment|RMB6,000|Property development|6,000.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Dalian|Propertydevelopment|RMB3,000|Property development|1,530.00|51.00|51.00|Yes|710,994.12|
|Ltd. liability|Qingdao|Propertydevelopment|RMB1,000|Property development and management; construction anddecoration|1,000.00|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Qingdao|Propertydevelopment|USD4,000|Development of the project located to the east of line 48, to the southof Tongshun Road, to the west of Hexin Road, and to the north ofHaiyuan Road (G-2012-030), sales and lease of property;property service; interior and exterior decoration|24,944.98|100.00|100.00|Yes|Not applicable|
|Ltd. liability|Rizhao|Property|RMB3,000|Property development|3,000.00|100.00|100.00|Yes|Not applicable|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|||development|||||||||
|Ltd. liability|Yantai|Propertydevelopment|USD9,995|Property development|35,316.21||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Hangzhou|Propertydevelopment|RMB10,000|Property development|10,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Hangzhou|Propertydevelopment|RMB50,000|Property development|2,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Nanjing|Propertymanagement|RMB500|Property management, decoration, consultancy, property facilitysales, maintenance, property leasing and agency|500.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Nanjing|Propertydevelopment|RMB3,000|Property development, sales, and services|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Nanjing|Propertydevelopment|RMB3,000|Property development, property management, projectinvestment , property agency|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shanghai|Propertydevelopment|RMB3,000|Property development and sales of construction materials|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shanghai|Property|USD62|Property management, decoration, consultancy, property facilitysales, maintenance, property leasing and agency|512.92||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shanghai|Propertydevelopment|RMB3,000|Property development, interior decoration, trade of constructionmaterials|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shanghai|Propertydevelopment|RMB3,000|Property development, interior decoration, trade of constructionmaterials|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shanghai|Propertydevelopment|RMB3,000|Property development, sales, and services|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shanghai|Propertydevelopment|RMB55,500|Property development, rent of properties, property management,interior decoration|30,525.00||55.00|55.00|Yes|136,718,744.67|
|Ltd. liability|Shanghai|Propertydevelopment|RMB3,000|Property development, management, leasing, decoration anddesign, information consulting, parking lot service|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Suzhou|Propertydevelopment|RMB3,000|Property development, operation and sales|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Suzhou|Propertydevelopment|RMB10,000|Property development, sales, and services|6,000.00||60.00|60.00|Yes|106,543,429.10|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|Ltd. liability|Suzhou|Propertydevelopment|RMB3,000|Property development, management, leasing, decoration anddesign, information consulting, parking lot service|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Suzhou|Propertydevelopment|USD24,400|Property developing, sales, and after-sale services within theauthorized land|86,729.99||50.00|50.00|Yes|954,476,087.40|
|Ltd. liability|Suzhou|Propertydevelopment|RMB3,000|Property development|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Zhenjiang|Propertydevelopment|RMB5,000|Property development|3,000.00||60.00|60.00|Yes|19,753,128.45|
|Ltd. liability|Zhenjiang|Propertydevelopment|USD11,800|Property development, property management, projectinvestment , property agency|75,481.70||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Changzhou|Propertydevelopment|RMB3,000|Property development, rent of properties, property management,interior decoration, business consultancy, parking lot management|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Xiamen|Propertydevelopment|RMB5,000|Property development, property rent and sales, propertymanagement, construction works, interior decoration, rent ofconstruction equipment|2,500.00||50.00|50.00|Yes|97,663,599.52|
|Ltd. liability|Xiamen|Propertydevelopment|RMB5,000|Property development, rent and sales, property service,construction works, interior service, sales of construction materials|5,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Wuhan|Propertydevelopment|RMB3,000|Property development, property management, projectinvestment , property agency|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Wuhan|Propertymanagement|RMB500|Property management, decoration, consultancy, property facilitysales, maintenance, property leasing and agency|500.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Wuhan|Propertydevelopment|USD9,800|Property development, sales and lease, property service, interiorand exterior decoration|90,576.48||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Wuhan|Propertydevelopment|USD9,800|Property development, sales and lease, property service, interiorand exterior decoration|136,980.39||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Wuhan|Propertydevelopment|USD7,906|Property development, sales and lease, property service, interiorand exterior decoration|88,414.76||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chengdu|Propertydevelopment|RMB5,000|Property development, project investment, property agency, andmanagement service|5,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chengdu|Propertydevelopment|RMB1,000|Property development, property management, projectinvestment , property agency|1,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chengdu|Property|RMB1,000|Property development, project investment, property agency, and|1,000.00||100.00|100.00|Yes|Not applicable|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|||development||management service|||||||
|Ltd. liability|Chengdu|Propertydevelopment|RMB1,000|Property development|1,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Guizhou|Propertydevelopment|RMB3,000|Property investment, sales and lease, property agency, interior andexterior decoration|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Guizhou|Propertydevelopment|RMB2,000|Property investment, leasing, administration services, interior andexterior designing and decoration|2,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Guizhou|Propertymanagement|RMB300|Property management, sales of property equipment, door to doormaintainance service|300.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chongqing|Propertydevelopment|RMB3,000|Property development, leasing of self-owned properties|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chongqing|Propertydevelopment|RMB3,000|Property development, interinal decoration service, trade ofconstruction materials|3,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chongqing|Propertydevelopment|USD53,400|Developing, leasing, sales and management of property|355,690.25||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chongqing|Propertydevelopment|RMB2,000|Property development|2,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Chongqing|Propertydevelopment|HKD23,200|Property development|182,950.56||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Foshan|Propertydevelopment|RMB1000|Property development, sales, and services|600.00||60.00|60.00|Yes|3,731,635.58|
|Ltd. liability|Foshan|Propertydevelopment|USD12,700|Property development, sales, and services|47,869.00||50.00|50.00|Yes|969,375,418.71|
|Ltd. liability|Foshan|Propertydevelopment|USD21,980|Property development, sales, and services|151,157.80||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Foshan|Propertydevelopment|RMB3,000|Property development, construction, sales, rent, and propertymanagement|1,500.00||50.00|50.00|Yes|2,415,635.31|
|Ltd. liability|Foshan|Propertydevelopment|USD10,989.80|Developing, rent, and sales of propoerty on land <佛南(拍)2010-001，002，003> in NanhaiFoshan|37,193.50||50.00|50.00|Yes|427,534,853.66|
|Ltd. liability|Foshan|Propertydevelopment|RMB1,000|Property development|1,000.00||100.00|100.00|Yes|Not applicable|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|Ltd. liability|Foshan|Propertydevelopment|RMB550|Property development|550.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Foshan|Propertydevelopment|RMB1,050|Property development|1,050.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Guangzhou|Propertydevelopment|RMB10,000|Property development and sales|3,400.00||34.00|51.00|Yes|52,780,108.29|
|Ltd. liability|Guangzhou|Propertydevelopment|RMB20,000|Specialized property development, leasing and sales|20,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Zhuhai|Propertydevelopment|RMB800|Property development and sales|800.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Zhuhai|Propertydevelopment|RMB800|Property development and sales|408.00||51.00|51.00|Yes|103,602,153.72|
|Ltd. liability|Nanning|Propertydevelopment|RMB10,000|Property development|1,020.00||51.00|51.00|Yes|9,104,123.63|
|Ltd. liability|Qionghai|Propertydevelopment|RMB200,000|Development of tourism projects, commercial projects, hotelmanagement|24,000.00||60.00|60.00|Yes|799,931,781.17|
|Ltd. liability|Sanya|Propertydevelopment|RMB10,000|Property development|10,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|British VirginIsland|Investment|USD0.0002|Investment|0.001||100.00|100.00|Yes|Not applicable|
|Ltd. liability|British VirginIsland|Investment|USD0.0002|Investment|0.001||100.00|100.00|Yes|Not applicable|
|Ltd. liability|British VirginIsland|Investment|USD0.0002|Investment|0.001||100.00|100.00|Yes|Not applicable|
|Ltd. liability|British VirginIsland|Investment|USD0.0002|Investment|0.001||100.00|100.00|Yes|Not applicable|
|Ltd. liability|British VirginIsland|Investment|USD0.0002|Investment|0.001||100.00|100.00|Yes|Not applicable|
|Ltd. liability|British VirginIsland|Investment|USD0.01|Investment|0.03||50.00|50.00|Yes|2,559,077,859.18|
|Ltd. liability|British VirginIsland|Investment|USD0.0002|Investment|0.001||100.00|100.00|Yes|Not applicable|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|Ltd. liability|British VirginIsland|Investment|USD0.01|Investment|0.06||100.00|100.00|Yes|Not applicable|
|Ltd. liability|British VirginIsland|Investment|USD0.01|Investment|0.06||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD1|Investment|0.85||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|USD0.01|Investment|0.06||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|USD0.01|Investment|0.06||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|USD0.0001|Investment|0.0006||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|USD0.01|Investment|0.06||51.00|51.00|Yes|-972,279.47|
|Ltd. liability|HK|Investment|USD0.01|Investment|0.06||51.00|51.00|Yes|-17,109.84|
|Ltd. liability|HK|Propertymanagement|HKD1|Property management, decoration, consultancy, property facilitysales, maintenance, property leasing and agency|1.10||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Propertymanagement|HKD 0.1|Cleanning service, facility maintanance, general trade|0.08||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Propertymanagement|HKD 10|Property management, sales of property equipment, door to doormaintainance service|8.11||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.01|Investment|0.01||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.01|Investment|0.01||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.01|Investment|0.01||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|USD0.01|Investment|0.06||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD1|Investment|0.82||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD1|Investment|0.82||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.01|Investment|0.01||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.002|Investment|0.002||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Propertydevelopment|HKD1|Property development, sales, and services|0.44||50.00|50.00|Yes|955,802,053.72|
|Ltd. liability|HK|Investment|HKD 0.01|Investment|0.008||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD 0.01|Investment|0.008||100.00|100.00|Yes|Not applicable|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Type ofbusiness|Reg. Add.|BusinessProperty|Registered capital(RMB0’000)|Business Scope|Actual investment atend of year(RMB0’000)|Balance of other itemsactually formed netinvestment in thesubsidiaries|Shareproportion(%)|Votingrights(%)|Consolidated?|Minorshareholders’ equityat year end|
|Ltd. liability|HK|Investment|HKD 1.00|Investment|0.80||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.01|Investment|0.008||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.01|Investment|0.008||100.00|100.00|Yes|Not applicable|
|Ltd. liability|HK|Investment|HKD0.01|Investment|0.008||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB20,000|Property development, property management, projectinvestment , property agency|188,336.75||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB2,500|Leasing of self-owned properties|3,680.30||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB1,400|Property development|1,400.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Investment|RMB1,000|Industry and domestic commerce|||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Property aggent|RMB200|Real-estate operation, information & consulting|200.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Hotel service|RMB100|Indoor golf court, Property rental, restaurant, shopping mall, sales ofwater supply facilities|100.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Investment|RMB1,000|Industrial investment, domestic commerce|510.00||51.00|51.00|Yes|-4,761,084.37|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB15,000|Construction engineering, decoration, elevator, air conditionermaintaining, sales of construction materials|15,000.00||100.00|100.00|Yes|Not applicable|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB18,000|Developing of commercial property, operation, management,leasing, investment in industry|9,180.00||51.00|51.00|Yes|60,503,665.67|
|Ltd. liability|Shenzhen|Hotelmanagement|RMB3,000|Hotel management, export of goods and technologies|1,531.40||51.00|51.00|Yes|-1,152,081.66|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB3,000|Property development; agency; property management; interiorand exterior decoration|1,500.00||50.00|50.00|Yes|3,390,669.24|
|Ltd. liability|Shenzhen|Propertydevelopment|RMB1,000|Property development|510.00||51.00|51.00|Yes|4,911,176.40|
|Ltd. liability|Shenzhen|Propertymanagement|RMB150|Property management and supporting services, constructionmaterials, decoration materials, toilet facilities, cleaning material, officeappliances|150.00||100.00|100.00|Yes|Not applicable|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Note 1: In September 2013, the Company entered share transfer agreement with Beijing Yintai Land Property Co., Ltd. to acquire100% shares it held in Tianjin Guojun Investment Co., Ltd. Thus the Company is holding100% shares of Tianjin Guojun Investment Co., Ltd.. Meanwhile, the Company holds85% shares ofHa’erbinYinkai Property Development Co., Ltd. indirectly through Tianjin Guojun Investment Co., Ltd. Tianjin Guojun Investment Co., Ltd. andHa’erbin Yinkai Property Development Co., Ltd. are consolidated to the consolidated financial statements in the current year.
Note 2: In July 2013, Guangzhou CM Property Co., Ltd.– one of the subsidiaries of the Company, entered share transfer agreements with FoshanJincheng Frozen Food Co., Ltd.and Guangdong Xinnanda Cable Co., Ltd. to acquire the34.5% and16.5% shares they held in FoshanKaidacheng Investment Co., Ltd. respectively. Since then, Guangzhou CM Property Co., Ltd. has been holding51% shares of FoshanKaidacheng Investment Co., Ltd. Therefore it is consolidated to the consolidated financial statements for the current year.
Note 3: In April 2013, the Company entered the major asset reconstitution agreement with Eureka Investment Company Limited– the subsidiaries of the Company and China Merchants Land Limited (former Tonic Industries Holdings Limited). According to the agreement, CM Land Property purchased the share equities of 11 domestic subsidiaries under possession of the Company and Eureka Investment Company Limited. The offer was RMB5302.9450 million (HKD6688.0373 million). China Merchants Land Property paid the consideration by private offerings to its parent company and by capital raised from shares issued to the public. On November 1, 2013, share issuing was accomplished with 3,836,789,000 of new shares raised. Thereafter the shareholding ratio of Eureka Investment Company Limited in China Merchants Land Property Co., Ltd. increase to74.35%. On the same day, China Merchants Land Property Co., Ltd. is relisted in Hong Kong Stock Exchange.
Note 4: In November 2013, China Merchants Property (Beijing) Co., Ltd.– one of the subsidiaries of the Company, invested together with Beijing Jiaming Property Development Co., Ltd. to establish Beijing CM Mingjia Property Development Co., Ltd., in which China Merchants Property (Beijing) Co., Ltd. invested RMB7 million is holding70% of share capital. Therefore this company is consolidated in the financial statement.
Note 5: In October 2013, Tianjin Gangwei Property Development Co., Ltd.– one of the subsidiaries of the Company, invested RMB60 million to establish Tianjin Yongjingwan Property Development Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 6: In February 2013, Tianjin Zhaosheng Property Co., Ltd.– one of the subsidiaries of the Company, invested along with Dalian Haoyu Investment Co., Ltd. to establish Dalian Zhaoyu Property Co., Ltd., in which Tianjin Zhaosheng Property Co., Ltd. invested RMB15.30 million to hold51% of the share capital. Therefore it is consolidated in the financial statement.
Note 7: In December 2013, the Company invested RMB30 million to incorporate China Merchants Property (Rizhao) Co., Ltd. in which the Company is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 8: In December 2013, Yiba Investment Co., Ltd.– one of the subsidiaries of the Company, invested RMB353.1621 million to establish China Merchants Property (Yantai) Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 9: In December 2013, Shanghai CM Fengrui Property Co., Ltd.– one of the subsidiaries of the Company, invested RMB100 million to establish Hangzhou Zhujia Property Development Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Note 10: In September 2013, the Company invested RMB20 million to incorporate China Merchants Property (Hangzhou) Co., Ltd. in which the Company is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 11: In April 2013, China Merchants (Suzhou) Co., Ltd.– one of the subsidiaries of the Company invested RMB30 million to establish Suzhou CM Yishanjun Property Co., Ltd. and holds100% of the share capital. Therefore it is consolidated in the financial statement.
Note 12: In January 2013, the Company entered the investment agreement with Zhenjiang Transportation Facility Development Co., Ltd. to incorporate Zhenjiang Nanshan Creative Industry Garden Development Co., Ltd. in which the Company inputted RMB30 million and held60% of the share capital. Therefore it is consolidated in the financial statement.
Note 13: In December 2013, Chengdu CM Property Co., Ltd.– one of the subsidiaries of the Company, invested RMB10 million to establish Chengdu CM Longcheng Property Development Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 14: In August 2013, Guangzhou CM Property Co., Ltd.– one of the subsidiaries of the Company, invested RMB20 million to establish Chongqing CM Yiyun Property Development Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 15: In December 2013, Yuyue Co., Ltd.– one of the subsidiaries of the Company, invested RMB1,829.5056 million to establish Chongqing Yizhi CM Property Development Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 16: In May 2013, Guangzhou CM Property Co., Ltd.– one of the subsidiaries of the Company invested RMB10 million to establish FoshanShundeYiyunDesheng Property Co., Ltd. and holds100% of the share capital. Therefore it is consolidated in the financial statement.
Note 17: In December 2013, Guangzhou CM Property Co., Ltd.– one of the subsidiaries of the Company, invested RMB5.5 million to establish FoshanYiyunZhenyuan Property Development Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 18: In December 2013, FoshanYiyun Property Co., Ltd.– one of the subsidiaries of the Company, invested RMB10.5 million to establish FoshanYiyunShangyuan Property Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 19: In September 2013, the Company entered the investment agreement with Hong Kong Haotian Development Co., Ltd. to incorporate Nanning CM Haotian Property Co., Ltd. in which the Company inputted RMB10.2 million and held51% of the share capital. Therefore it is consolidated in the financial statement.
Note 20: In November 2013, Shenzhen CM Property Co., Ltd.– one of the subsidiaries of the Company, invested RMB100 million to establish Sanya CM Property Co., Ltd., and is holding100% of share capital. Therefore this company is consolidated in the financial statement.
Note 21: In March 2013, the Company invested RMB14 million to incorporate Shenzhen Pingshan CM Property Co., Ltd. The Company is holding100% share capital of Shenzhen Pingshan CM Property Co., Ltd. Therefore this company is consolidated in the financial statement.
Note 22: In January 2013, Shenzhen CM Property Co., Ltd.– one of the subsidiaries of the Company, invested along with Shenzhen ZhongrunTongda Property Development Co., Ltd. to
establish Shenzhen CM Shekou Construction Co., Ltd., in which Shenzhen CM Property Co.,
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Ltd. invested RMB5.1 million to hold51% share capital. Therefore it is consolidated in the financial statement.
(II) Change of consolidation range in the current year
1. Particulars of the newly consolidatedsubsidiaries
||||
|-|-|-|
|Reason of added toconsolidation range|Shareholdingrate %|Net asset at end ofyear|
|merger under different control|51.00|180,205,149.47|
|merger under different control|100.00|99,986,518.73|
|merger under different control|85.00|3,887,903.03|
|Newly incorporated|100.00|1,026,787.61|
|Newly incorporated|51.00|10,022,808.97|
|Newly incorporated|60.00|49,382,821.12|
|Newly incorporated|51.00|18,579,844.14|
|Newly incorporated|70.00|9,998,533.50|
|Newly incorporated|51.00|1,451,008.41|
|Newly incorporated|100.00|59,863,932.34|
|Newly incorporated|100.00|100,000,000.00|
|Newly incorporated|100.00|94,754,651.63|
|Newly incorporated|100.00|-15,220,343.08|
|Newly incorporated|100.00|2,987,234.84|
|Newly incorporated|100.00|7,895,637.74|
|Newly incorporated|100.00|20,014,580.57|
|Newly incorporated|100.00|1,815,505,623.17|
|Newly incorporated|100.00|9,990,569.44|
|Newly incorporated|100.00|24,880,739.47|
|Newly incorporated|100.00|500,000,000.00|
|Newly incorporated|100.00|351,794,168.07|
|Newly incorporated|100.00|30,000,000.00|
|Newly incorporated|100.00|-37,145,157.16|
|Newly incorporated|100.00|-4,770,532.98|
|Newly incorporated|100.00|22,046,585.15|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|Reason of added toconsolidation range|Shareholdingrate %|Net asset at end ofyear|
|Newly incorporated|100.00|-5,340.80|
|Newly incorporated|100.00|-5,340.80|
|Newly incorporated|100.00|1,288,105.61|
|Newly incorporated|100.00|-6,800.63|
|Newly incorporated|100.00|78.62|
|Newly incorporated|100.00|-5,341.17|
|Newly incorporated|100.00|-5,341.17|
|Newly incorporated|100.00|-6,643.39|
|Newly incorporated|100.00|-6,800.63|

 2. Particulars about companies eliminated from the consolidation
||||
|-|-|-|
|Reason ofeliminating|Share proportion(%)|DisposaldayNet asset|
|. Shift of control power|50.00|897,763,150.70|
|liquidation|100.00|49,966,963.90|

 (1) Subsidiaries eliminated due to demising of control power
|||
|-|-|
|Date of disposal|Recognition of gain/loss|
|April 1, 2013|Difference between fair value and book value of retained shareequity is recognized as current investment gain|

Xicheng Project, which was invested by Shenzhen CM OCT Investment Co., Ltd., is at its final stage of development. Therefore the major works have been shifted to operation and administration. For Shenzhen OCT Property Co., Ltd.– the other shareholder of the project, is experienced in operation and management of large scale residential communities, it has been decided through negotiation, that Shenzhen OCT Property Co., Ltd. will lead the operation and management in the future. According to the resolutions of theshareholders’ meeting held on April 1, 2013, Shenzhen OCT Property Co., Ltd. is holding the major voting power over Shenzhen CM OCT Investment Co., Ltd. For the control power has been demised, the Company eliminates Shenzhen CM OCT Investment Co., Ltd. from the consolidated financial statements
since April 1, 2013, and Shenzhen CM OCT Investment Co., Ltd. has become an associated
company of the Company.
According to Enterprise Accounting Standard No. 4, changing of shareholding power on
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Shenzhen CM OCT Investment Co., Ltd. is regarded as disposal of share equity, and the retained share equity shall be re-calculated upon fair value. The difference between fair value and book value of retained share equity is recognized as current investment gain, namely RMB257.8347 million.
(III) Mergers of entities in the year
1. Subsidiaries procured through merger of entities under
different control
|||||||
|-|-|-|-|-|-|
|Name of companies|Reg.Add.|RegisteredCapital|InvestmentAmountRMBx10000|Shareproportion(%)|BusinessScope|
|Foshan KaidachengInvestment Development Co.,Ltd.|Foshan|10 mil|10,510|51.00|Propertydevelopment|
|Tianjin Guojun InvestmentCo., Ltd.|Tianjin|100 mil|30,055|100.00|Propertydevelopment|

(1) Foshan Kaidacheng Investment Development Co., Ltd.
1) Foshan Kaidacheng Investment Development Co., Ltd. was founded on October 18, 2012, with registered capital of RMB10 million. On July 5, 2013, Guangzhou CM Property Co., Ltd.– one of the subsidies of the Company, engaged with Foshan Jincheng Frozen Food Co., Ltd. and Guangdong Xinnanda Cable Industry Co., Ltd. the share equity transferring agreement, by which Guangzhou CM Property was acquiring the34.5% and16.5% of share equities the two companies held in Foshan Kaidacheng Investment Development Co., Ltd. The prices were decided by appraisal on fair value basis.
2) The recognition date of the trade was July 1, 2013, i.e. the day when the Company acquired the control power over Foshan Kaidacheng Investment Development Co., Ltd.
3) Recognizable assets and liabilities of the target company (RMB x10000)
Ended July 5, 2013 (the acquisition day)
Items
||
|-|
|Book value|
|62,976.11|
|131.48|
|62,143.44|
|492.23|

4) Merger cost was recognized as RMB105.10 million which was the amount decided by the
parties, while the recognizable net asset fair value was provided by appraisal report中通评报
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
字【2013】93号 issued by Zhongtongcheng Asset Appraisal Co., Ltd. Basing on the appraisal report, the recognizable net asset at the acquisition day was RMB105.1021 million. The difference of merger cost over recognizable net asset was accounted in current gain/loss account as goodwill, namely RMB4600.
5) Business situation of the acquired company after the acquisition (RMBx10000)
Items July 5, 2013 (the acquisition day) to
December 31, 2013
Net profit -2,587.75
Net amount of cash flow from business operation 1,998.13
Net cash flow 1,998.13
(2) Tianjin Guojun Investment Co.,Ltd（. Incl.Ha’erbin Yinkai Property Development Co.,Ltd.） 1) Tianjin Guojun Investment Co., Ltd. was founded on August 31, 2011 with registered capital of RMB100 million. Its business range was to invest in property industry, construction, and commerce with its own capital. Before the merger, Beijing Yintai Land Property Business Co., Ltd. was holding99.9% of the shares of Tianjin Guojun Investment Co., Ltd., and Beijing Guojun Investment Co., Ltd. was holding0.1% of the shares. Meanwhile, Tianjin Guojun Investment Co., Ltd. was holding85% of the share equity ofHa’erbin Yinkai Property Development Co., Ltd. On September 3, 2013, the Company entered the share equity transferring agreement with Beijing Yintai Land Property Business Co., Ltd. and Beijing Guojun Investment Co., Ltd. to acquire100% share equity of Tianjin Guojun Investment Co., Ltd. The amount was based on the fair value provided by appraisal and decided by all three parties.
2) November 30, 2013 was decided to be the acquisition day, which means the Company acquired control power over Tianjin Guojun and its subsidiaries at that day.
3) Recognizable assets and liabilities of the target company (RMB x10000)
November 30, 2013 (the acquisition day)
Items
||
|-|
|Book value|
|240,709.19|
|51,814.62|
|282,124.58|
|9,999.54|

 4) Merger cost was recognized as RMB300.55 million which was the amount decided by the parties, including RMB50 million disbursed instantly and the payment to be made in a later date, which will be decided by the formula as agreed by the parties. The recognizable net asset fair value was provided by appraisal report中通评报字【2013】200号 issued by Zhongtongcheng Asset Appraisal Co., Ltd. Basing on the appraisal report, the recognizable net asset at the acquisition day was RMB312.1848 million. The difference of merger cost over recognizable net asset was accounted in current gain/loss account as goodwill, namely RMB11.6348 million.
5) Business situation of the acquired company after the acquisition (RMBx10000)
Items November 30, 2013 (the acquisition day) to
December 31, 2013
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Items November 30, 2013 (the acquisition day) to
December 31, 2013
Net profit -10.39 Net amount of cash flow from business operation 134.51 Net cash flow 60.09 (IV) Translation of foreign currency
||
|-|
|Balance Sheet|
|0.7862|

 VI. Notes to the consolidated financial statements
In the following financial information, except for stated particularly, “beginning of term/year” refers to January 1 2013, “end of term/year” refers to December 31, 2013, “current term/year” refers to the period from January 1 to December 31, 2013, “the previous term” refers to January 1 to December 31, 2012. RMB is the unit for money.
1. Monetary capital
||||||
|-|-|-|-|-|
|Balance at end of year|||||
|Original currency|Exchange rate|Translated to RMB|Original currency|Exchange rate|
|||277,828.02|||
|276,988.69|1.0000|13,066,378.34|194,214.86|1.0000|
|1,067.58|0.7862|839.33|11,561.18|0.8109|
|||21,969,131,604.53|||
|17,767,740,456.75|1.0000|17,767,740,456.75|16,101,503,948.61|1.0000|
|528,893,956.92|0.7862|415,816,428.93|358,806,381.23|0.8109|
|620,901,559.62|6.0969|3,785,574,718.85|112,924,350.01|6.2855|
|||2,271,049,363.951|||
|2,271,049,363.95|1.0000|2,271,049,363.95|1,129,333,729.59|1.0000|
||||1,190,000.00|6.2855|
|||24,240,458,796.50|||

Note: According to the “Administration Rules of Property Sales Advance”, there is
RMB2,266,271,488.95 under inspection among the “other monetary capital”; and
RMB4,777,875.00, which was deposit in bank for accepted bank notes.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
2. Notes receivable
(1) Categories of notes receivable
||
|-|
|Balance at end of year|
|4,000,000.00|
|4,000,000.00|

 3. Account receivable
(1) Categories of account receivable
Balance at end of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio (%)|Amount|
|6,028,220.80|6.52|6,028,220.80|
|7,553,893.68|8.17|5,890,495.58|
|48,400,728.29|52.36||
|30,463,772.65|32.95|3,663,084.23|
|78,864,500.94|85.31|3,663,084.23|
|92,446,615.42|100.00|15,581,800.61|

Cont.
Amount at the beginning of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio (%|) Amount|
|94,344,063.99|53.75|9,479,852.52|
|81,166,515.78|46.25|3,931,564.52|
|175,510,579.77|100.00|13,411,417.04|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Amount at the beginning of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio (%)|Amount|
|175,510,579.77|100.00|13,411,417.04|

1） Significant account receivable which was provided bad debt provisions individually at year end
||||
|-|-|-|
|Book balance|Amount of bad debt|Providing rate (%)|
|6,028,220.80|6,028,220.80|100.00|
|6,028,220.80|6,028,220.80|100.00|

2） Minor account receivable which was provided bad debt provisions individually at year end
||||
|-|-|-|
|Book balance|Amount of bad debt|Providing rate (%)|
|4,013,716.80|4,013,716.80|100.00|
|2,376,283.00|712,884.90|30.00|
|868,867.30|868,867.30|100.00|
|179,978.00|179,978.00|100.00|
|115,048.58|115,048.58|100.00|
|7,553,893.68|5,890,495.58||

3） Account receivable in the portfolio which are provided bad debt provision on age basis
||||||
|-|-|-|-|-|
|Balance at end of year|||||
|Book balance||Bad debt provision|Book balance||
|Amount|Ratio (%)||Amount|Ratio (%)|
|26,350,713.6|86.50|601,707.0206|77,242,151.45|95.17|
|987,689.67|3.24|208,552.11|844,083.51|1.04|
|545,088.56|1.79|272,544.28|2,372,739.93|2.92|
|2,580,280.82|8.47|2,580,280.82|707,540.89|0.87|
|30,463,772.65|100.00|3,663,084.23|81,166,515.78|100.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
(2) Receivables due from shareholding parties with5% or over of shares are not included in the account receivable at year end.
(3) Overall ages of account receivable
||||||
|-|-|-|-|-|
|Balance at end of year|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Ratio (%)||Amount|Ratio (%)|
|64,241,914.34|69.49|2,128,963.02|156,087,371.13|88.93|
|14,878,368.52|16.09|2,062,447.41|8,307,742.64|4.73|
|2,469,486.24|2.67|2,196,941.96|4,281,696.90|2.44|
|10,856,846.32|11.75|9,193,448.22|6,833,769.10|3.90|
|92,446,615.42|100.00|15,581,800.61|175,510,579.77|100.00|

 (4) The top five debtors at the year end
|||||
|-|-|-|-|
|Name of the companies|Relation with theCompany|Amount|Age|
|Client I|Third parties|12,036,783.55|1-2years|
|Client II|Third parties|8,519,295.45|within 1year|
|Client III|Third parties|6,028,220.80|Over 3years|
|Client IV|Third parties|6,000,000.00|within 1year|
|China Merchants (Shanghai)Investment Co., Ltd.|Under same ultimateholder|5,088,000.00|within 1year|
|||37,672,299.80||

 (5) Receivable accounts due from related parties
|||
|-|-|
|Relation with theCompany|Amount|
|Under same ultimate holder|5,088,000.00|
||5,088,000.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
4. Prepayment
(1) Ages of prepayment accounts
||||
|-|-|-|
|Balance at end of year|||
|Amount|Ratio (%)|Amount|
|2,815,020,465.70|99.97|8,287,184.01|
|947，042.09|0.03||
|2,815,967,507.79|100.00|8,287,184.01|

 (2) Top 5 prepayments
||||
|-|-|-|
|Relation with the Company|Amount|Age|
|Third parties|2,346,116,000.00|within 1 year|
|Third parties|460,275,165.00|within 1 year|
|Third parties|1,216,800.00|within 1 year|
|Third parties|1,128,061.98|within 1 year|
|Third parties|811,215.69|within 1 year|
||2,809,547,242.67||

(3) Receivables due from shareholding parties with5% or over of shares are not included in the prepayment account at year end.
5. Other account receivable
(1) Categories of other account receivable
Balance at end of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio (%)|Amount|
|11,270,000.00|0.08|11,270,000.00|
|13,313.37||3,994.01|
|13,657,904,323.94|99.62||

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Balance at end of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio (%)|Amount|
|40,250,394.52|0.29|14,280,161.65|
|13,698,154,718.46|99.93|14,280,161.65|
|13,709,438,031.83|100.00|25,554,155.66|

Cont.
Amount at the beginning of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio (%)|Amount|
|8,151,209,418.45|99.45|5,920,777.53|
|45,145,079.06|0.55|6,942,147.06|
|8,196,354,497.51|100.00|12,862,924.59|
|8,196,354,497.51|100.00|12,862,924.59|

1） Significant other account receivable which was provided bad debt provisions individually at year end
||||
|-|-|-|
|Bookbalance|Amount of baddebt|Providing rate(%)|
|11,270,000.00|11,270,000.00|100.00|
|11,270,000.00|11,270,000.00||

2） Other account receivable in the portfolio on which bad debt provisions are provided
on age basis
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||
|-|-|-|-|-|
|Balance at end of year|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Ratio (%)||Amount|Ratio (%)|
|20,748,666.96|51.55|507,476.25|27,917,804.16|61.84|
|4,905,850.56|12.19|981,170.12|4,288,414.95|9.50|
|3,608,723.45|8.96|1,804,361.73|10,404,902.95|23.05|
|10,987,153.55|27.30|10,987,153.55|2,533,957.00|5.61|
|40,250,394.52|100.00|14,280,161.65|45,145,079.06|100.00|

(2) There is no recerivable accounts due from shareholding parties with5% or over of the
Company’s shares
(3) Top five debtors at the year end
|||||
|-|-|-|-|
|Relation with theCompany|Amount|Age|Portion in total otherreceivable accounts (%)|
|Affiliates|1,350,815,887.80|within 1year|9.82|
|Third parties|1,310,000,000.80|within 2yrs|9.53|
|Third parties|1,282,584,095.33|within 2yrs|9.33|
|Third parties|1,000,000,000.00|within 1yr|7.27|
|Joint ventures|912,320,960.74|within 2yrs|6.64|
||5,855,720,944.67||42.59|

(4) Receivable from related parties
|||
|-|-|
|Relation with the Company|Amount|
|Affiliates|1,350,815,887.80|
|Joint ventures|912,320,960.74|
|Joint ventures|673,449,850.06|
|Affiliates|149,343,672.94|
|Affiliates|92,550,643.25|
|Affiliates|89,026,933.80|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Relation with the Company|Amount|
|Affiliates|62,432,109.67|
|Affiliates|44,812,215.00|
|Affiliates|11,270,000.00|
||3,386,022,273.26|

 6. Inventories
(1) Categories of inventory
||||||
|-|-|-|-|-|
|Balance at end of year|||||
|Book balance|Impairment provision|Book value|Book balance|Impairment provision|
|70,028,577,041.98||70,028,577,041.98|62,910,239,897.15|368,210,000.00|
|8,609,017,171.77|185,161,833.73|8,423,855,338.04|11,290,417,525.17|206,493,032.19|
|7,513,712.18||7,513,712.18|7,389,048.21||
|16,724,360.24|162,981.66|16,561,378.58|4,759,616.43|162,981.66|
|78,661,832,286.17|185,324,815.39|78,476,507,470.78|74,212,806,086.96|574,866,013.85|

 (2) Inventory composition
||||
|-|-|-|
|Beginning of Term|Increased this year|Decreased this year|
|62,910,239,897.15|28,520,351,161.86|21,402,014,017.03|
|11,290,417,525.17|20,982,287,692.01|23,663,688,045.41|
|7,389,048.21|40,560,602.94|40,435,938.97|
|4,759,616.43|32,901,963.28|20,937,219.47|
|74,212,806,086.96|49,576,101,420.09|45,127,075,220.88|

A. Property development costs:
|||||
|-|-|-|-|
|Start date|Planned finish date|Expected totalinvestmentRMB0’000|Opening balance|

Costs of construction in process:
|||||
|-|-|-|-|
|May 2011|Dec 2015|621,044|3,718,180,565.68|
|Jan 2007|July 2014|359,494|759,295,816.69|
|August 2012|Oct 2015|512,700|1,861,879,170.47|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Start date|Planned finish date|Expected totalinvestmentRMB0’000|Opening balance|
|May 2013|Oct 2014|43,000|97,243,519.06|
|April 2012|July 2014|140,367|637,113,174.68|
|Jan 2008|June 2015|507,456|1,070,885,449.18|
|Jan 2006|Jun 2014|448,505|1,317,812,839.82|
|May 2011|Feb 2015|133,329|321,105,199.71|
|April 2009|Jan 2013|120,419|903,304,663.56|
|April 2012|Jan 2013|37,854|280,121,931.57|
|April 2013|Aug 2014|20,941|85,122,217.09|
|July 2013|June 2016|135,000||
|Mar 2011|March 2014|215,000|758,426,624.12|
|Mar 2013|Dec 2015|152,557|692,324,205.17|
|June 2013|April 2015|87,076||
|March 2010|Dec 2015|485,432|1,903,656,583.88|
|May 2011|Jun 2014|139,059|1,011,213,032.27|
|October 2010|Dec 2014|303,342|1,417,579,036.86|
|Dec 2012|Aug 2014|144,300|895,913,993.26|
|Dec 2011|Dec 2013|234,919|758,574,389.01|
|Dec 2012|May 2015|335,945|1,979,792,978.04|
|May 2006|Dec 2014|187,254|1,081,736,114.89|
|Feb 2013|May 2015|300,031|553,128,937.55|
|June 2010|Dec 2014|44,205|181,922,265.61|
|July 2008|April 2013|65,806|188,111,987.35|
|July 2011|June 2013|16,852|146,068,168.67|
|May 2010|Dec 2020|332,501|996,617,103.26|
|Mar 2011|Jun 2014|256,949|1,135,901,179.42|
|May 2011|March 2014|141,783|735,960,773.75|
|Mar 2013|August 2015|91,571|485,897,280.09|
|July 2011|February 2014|99,183|747,642,304.26|
|Mar 2012|Dec 2015|373,771|1,591,462,010.86|
|May 2011|Dec 2019|1,281,749|4,328,065,650.40|
|Jan 2009|Oct 2013|43,261|181,512,344.39|
|Jan 2009|Feb 2013|46,653|466,523,600.00|
|Aug 2011|June 2015|425,195|1,474,108,871.21|
|Jan 2013|March 2016|230,070||
|April 2012|Oct 2014|90,972|186,568,666.02|
|April 2012|Dec 2014|209,175|. 274,214,602.24|
|April 2012|July 2015|275,371|1,428,532,996.87|
|Dec 2009|Dec 2013|151,667|1,048,047,147.34|
|Dec 2012|May 2016|104,739|469,695,405.94|
|Sept 2012|Dec 2015|103,052|478,912,193.13|
|Mar 2012|November 2014|81,385|501,633,643.90|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Start date|Planned finish date|Expected totalinvestmentRMB0’000|Opening balance|
|Feb 2013|July 2015|89,197|198,405,020.00|
|Jan 2013|January 2016|208,088||
|July 2009|April 2017|670,181|994,924,450.50|
|Oct 2013|April 2016|210,869||
|Dec 2010|June 2013|70,849|589,067,134.69|
|Sept 2013|Jan 2015|48,096|127,543,220.75|
|Oct 2012|April 2015|27,466|98,766,132.28|
|Feb 2011|Sept 2013|92,590|996,818,296.53|
|Aug 2011|September 2014|146,022|857,008,284.69|
|Feb 2011|Oct 2013|188,732|816,889,187.63|
|Sept 2013|Dec 2015|220,000||
|Feb 2011|May 2014|6,918|48,677,798.86|
|May 2010|June 2013|142,073|979,241,139.72|
|May 2011|Jun 2014|292,370|1,781,133,329.40|
|May 2010|June 2013|143,588|1,011,457,417.66|
|TBD|TBD|TBD|270,500,204.12|
|November 2011|Dec 2016|735,678|3,391,412,164.87|
|May 2010|June 2013|85,267|600,483,590.84|
|September 2014|July 2016|144,600||
|April 2013|Dec 2015|322,408|1,224,000,000.00|
|Jan 2013|Dec 2015|188,942|961,880,807.23|
|July 2013|Feb 2016|1,203,461|2,724,661,013.54|
|Dec 2010|May 2013|81,209|393,841,738.71|
|Jan 2012|June 2013|44,355|310,827,137.81|
|Jan 2012|June 2013|45,546|315,444,138.73|
|Mar 2013|March 2014|600||
|Dec 2011|Jun 2014|94,264|493,291,709.16|
|May 2013|May 2015|113,969|11,049,579.82|
|Feb 2010|June 2013|117,267|417,107,883.37|
|Mar 2011|June 2013|39,056|300,721,937.21|
||||65,086,741.54|
||||59,132,048,696.93|
|April 2014|Oct. 2021|923,625||
|May 2014|Oct. 2018|347,581|556,342,750.32|
|Jan 2014|October 2016|129,027||
|February 2014|March 2017|261,706||
|February 2014|Dec 2015|163,971||
|March 2014|April 2016|86,950||

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Start date|Planned finish date|Expected totalinvestmentRMB0’000|Opening balance|
|May 2014|Sept. 2019|TBD||
|March 2014|March 2017|92,306||
|Jun 2014|September 2018|323,490|1,217,096,154.10|
|July 2014|April 2016|226,219|919,503,851.95|
|March 2014|Oct. 2019|226,172||
|March 2015|March 2017|90,029||
|May 2014|April 2018|340,000||
|March 2014|Sept. 2020|308,068||
|February 2014|October 2017|141,523||
|May 2014|Oct 2015|29,373|149,055,852.75|
|March 2015|October 2016|37,925|135,743,591.10|
|July 2014|July 2022|447,534|800,449,000.00|
|Jan 2014|March 2017|290,000||
||||3,778,191,200.22|
||||62,910,239,897.15|

 Note 1. In July 2013, the Company acquired the34.5% and16.5% share equity of Foshan Kaidacheng Investment Co., Ltd. respectively held by Foshan Jincheng Frozen Food Co., Ltd. and Guangzhou Xinnancheng Cable Industry Co., Ltd. and obtained the project of Foshan Yiyun Land Property Center, which was launched in October 2013.
Note 2: In September 2013, The Company acquired the99.9% and0.1% share equities of Tianjin Guojun Investment Co., Ltd. held by Beijing Yintai Property Commerce Co., Ltd. and Beijing Guojun Investment Co., Ltd. respectively and therefore obtained the project of Tianjin Guojun. Meanwhile, Tianjin Guojun Co., Ltd. is holding85% of the shares ofHa’erbin Yinkai Property Development Co., Ltd., therefore obtainedHa’erbin Yinkai project. The project is not launched yet in current term.
B. Property development products:
|||||
|-|-|-|-|
|Date of completion|Initial ammount|Current debit|Current credit|
|August 2012|673,443,130.54|528,123,819.27|1,054,746,189.44|
|Oct 2012|339,366,166.54||169,616,971.67|
|June 2013||406,526,628.52|392,066,727.51|
|Nov 2009|2,274,142.55||366,791.52|
|September 2010|118,817,095.64|35,593,700.99|62,423,462.08|
|June 2012|345,113,564.37|157,247,451.99|364,881,939.50|
|July 2013||1,477,733,064.07|1,377,284,875.46|
|June 2011|57,021,852.39|4,730,771.62|34,533,205.04|
|April 2013||1,049,965,448.00|985,518,224.83|
|Jan 2013||1,161,293,186.62|1,161,293,186.62|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Date of completion|Initial ammount|Current debit|Current credit|
|Jan 2013||395,436,736.47|246,009,157.94|
|Mar 2013||706,332,402.77|660,793,101.15|
|May 2012|526,338,585.89|8,582,480.78|163,380,335.79|
|Dec 2009||17,582,926.80|7,881,487.57|
|May 2013||885,113,188.00|829,376,139.94|
|June 2012|27,506,878.65|-4,602,536.29|21,202,257.05|
|November 2010|1,335,770.45|-3,655.12||
|May 2013||528,050,737.98|527,126,500.43|
|Jun 2013||24,821,831.04||
|Jun 2013||115,762,867.57||
|Aug 2011|15,679,168.00||15,679,168.00|
|June 2011|98,787,011.79|676,522,248.18|335,742,817.24|
|Jan 2012|1,025,001,421.53|-12,054,321.53|105,042,550.24|
|Dec 2010|105,954,185.96||69,601,041.57|
|Dec 2013|1,038,109,119.93|1,074,689,203.77|992,465,080.81|
|October 2010|10,474,265.18||4,093,764.37|
|Dec 2011|50,779,715.18|2,237,843.19|25,266,072.17|
|June 2013||232,793,901.16|155,166,894.41|
|December 2007|66,719.00||66,719.00|
|Dec 2011|43,854,213.96|22,608.99|35,097,337.72|
|Dec 2011|21,641,906.17|-2,531,836.46|11,693,127.29|
|June 2013||210,994,961.83|163,761,188.00|
|December 2007|65,509.14||65,509.14|
|Jun 2006|2,656,378.89|||
|Dec 2004|1,439,657.00|||
|Dec 2012|387,717,497.75|404,538,102.88|665,236,906.53|
|Dec 2012|328,357,543.00|74,149,817.89|247,542,958.87|
|Nov 2013||155,260,487.51|89,386,928.33|
|Dec 2012|411,530,952.83|14,215,069.19|254,046,289.81|
|Nov 2009|46,938,981.09|730,762,586.34|769,994,961.99|
|Sept 2012|123,120,901.45|34,534,556.53||
|Dec 2010|15,845,295.90|23,271,324.95|31,519,941.83|
|||377,864,459.32|377,864,459.32|
|Sept 2012|119,683,400.37|18,939,278.98|69,156,088.98|
|Sept 2012|74,731,573.48||51,637,619.22|
|Sept 2013||88,105,507.51|13,521,487.03|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Date of completion|Initial ammount|Current debit|Current credit|
|Mar 2012|287,287,709.91|13,974,010.46|17,470,637.63|
|June 2013||176,252,053.69|103,033,539.92|
|July 2012|74,559,161.66||43,543,242.74|
|June 2012||287,097,817.69||
|May 2010|126,262,624.11||113,509,707.50|
|Jan 2010|21,732,195.63|11,566,948.51|17,333,643.31|
|Sept 2013||903,252,545.76||
|Apr 2011|32,945,191.02||1,182,509.93|
|Jan 2012|254,604,072.91|-20,355,880.24|99,966,917.05|
|Sept 2012|983,168,156.08|-60,565,193.04|877,536,402.66|
|Aug 2011|139,215,821.72|45,491,155.47|56,551,752.13|
|June 2013||959,345,916.00||
|Oct 2012|872,838,690.48||794,162,580.74|
|June 2013||681,705,438.70|462,544,497.49|
|October 2010|15,080,694.02||14,016,859.17|
|June 2013||1,269,455,789.41|1,249,178,321.15|
|Jan 2012|581,919,045.17|1,340,519,174.36|1,641,518,357.27|
|August 2012|244,957,912.30|1,327,238,511.28|1,518,326,191.38|
|Oct 2009|13,440,925.00|||
|May 2012|953,579,344.42||953,579,344.42|
|June 2011|210,918,780.33||210,918,780.33|
|Sept 2012|438,288,442.55||438,288,442.55|
|June 2013||242,983,321.92|242,983,321.92|
|May 2011|6,158,353.51|286,793,589.01|290,473,047.88|
|June 2007|11,885,082.62||11,885,082.62|
|Sept 2009|6,388,730.11||6,388,730.11|
|Sept 2013||98363670.23||
|Jun2013||397,437,709.60|397,437,709.60|
|Jun 2013||1,248,522,938.24|1,248,522,938.24|
|Jun 2013||405,167,969.18|405,167,969.18|
|Jun 2013||435,381,686.58|435,381,686.58|
|Jul 2013||707,240,571.21|707,240,571.21|
||1,533,987.00|||
||11,290,417,525.17|17,485,983,375.97|20,167,383,729.37|

(3) Inventory impairment provision
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Amount at thebeginning of year|Increased thisyear|Decreased this year||
|||Written back|Othertransferred out|
|368,210,000.00||368,210,000.00||
|206,493,032.19|1,464,511.85||22,795,710.31|
|162,981.66||||
|574,866,013.85|1,464,511.85|368,210,000.00|22,795,710.31|

 Note 1: Foshan Xinjie Property Co., Ltd., Nanjing CM Ruisheng Property Co., Ltd. and Suzhou Shuanghu Property Co., Ltd.– the subsidiaries of the Company, have provided RMB182,370,000.00, RMB72,000,000.00, and RMB113,840,000.00 of inventory impairment provisions respectively on Foshan Yiyun Shangcheng Project, Nanjing G54 Project, and Suzhou Shuanghu Project. At the end of current period, the Company evaluated the actual situation of these projects and decided that the impairment provision were not necessary any more. Therefore they were written back in the current period.
Note 2: Shanghai Jingyuan Property Development Co., Ltd.– the subsidiary of the Company, have provided RMB206,493,032.19 of inventory impairment provisions respectively on Shanghai Sheshan Longyuan Project. At the end of current period, the Company evaluated the actual situation and realizable net value of the project and decided to provide another RMB1,464,511.85 of inventory impairment provision. Meanwhile, the impairment loss which was provided at ratio of sales in the current period was RMB22,795,710.31.
(4) Accumulated interest expense capitalized was RMB1,991,985,000.82 in the development costs. Interests accounted into property development costs were amounted to
RMB581,693,680.57 for the current period.
(5) Inventories under pledge:
A. Qingdao Zhongrunde Auto Trade Co., Ltd.– one of theCompany’s subsidiaries uses the land using rights and construction-in-process of CM-Zhongrunde Airport Business Garden Phase I licensed青房地权市字第20081844号 and青房地建市字第201274753号 to secure for the bank loans of RMB180,000,000.00.
B. China Merchants Jiaming (Beijing) Property Development Co., Ltd.– subsidiary of the Company, uses the land CY-09 located at Dongxiaokou Town, Changping, Beijing and construction-in-process to secure the bank loan of RMB300,000,000.00, which will due in one year.
C. Tianjin CM Taida Investment Co., Ltd.– subsidiary of the Company, uses the land licensed津字第 114051200160号 to secure the bank loan of RMB97,928,563.46. In which RMB800,000.00 will due in one year.
(6) As of December 31, 2013, the Group has reserved land of 4.6962 million square meters,
with cost of RMB14,573,752,558.66
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
7. Non-current asset due in 1 year
|||
|-|-|
|Balance at end of year|Amount at the beginning of year|
|4,175,229.58|16,756,858.87|
|4,175,229.58|16,756,858.87|

8. Other current asset
|||
|-|-|
|Balance at end of year|Amount at the beginning ofyear|
|3,547,427,010.52|2,805,932,402.35|
|2,770,929.08|12,337,541.63|
|3,550,197,939.60|2,818,269,943.98|

9. Long-term receivable
||
|-|
|Balance at end of year|

 10. Long-term share equity investment
(1) Long-term equity investment segment
||
|-|
|Balance at end of year|
|1,653,194,214.56|
|1,653,194,214.56|
|1,653,194,214.56|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
(2) Long-term equity investment on equity basis
||||||||
|-|-|-|-|-|-|-|
|ShareholdingRatio (%)|Voting rights (%)|Investment cost|Year beginAmount|Current yearAdditions|Current yearDecrease|Year endAmount|
|51.00|51.00|350,000,000.00|315,280,885.53||2,187,313.85|313,093,571.68|
|33.33|33.33|66,660,000.00|168,489,639.40|49,026,006.19||217,515,645.59|
|49.00|49.00|196,000,000.00|168,472,474.97||4,615,919.52|163,856,555.45|
|45.00|45.00|6,750,000.00|97,270,125.58|6,808,904.47||104,079,030.05|
|40.00|40.00|42,010,652.00|191,473,257.88|33,260,382.13|130,957,646.80|93,775,993.21|
|20.00|20.00|60,000,000.00|98,000,000.00||41,670,871.45|56,329,128.55|
|34.00|34.00|30,000,000.00||30,000,000.00|974,853.19|29,025,146.81|
|70.00|50.00|14,000,000.00|13,550,204.74||111,115.22|13,439,089.52|
|50.00|50.00|2,500,000.00|3,445,566.66|426,686.25|680,271.71|3,191,981.20|
|49.00|49.00|490,000.00|2,440,567.51|49,961.73||2,490,529.24|
|50.00|50.00|500,000.00||500,000.00||500,000.00|
|50.00|50.00|50,000,000.00||966,518,914.36|310,621,968.60|655,896,945.76|
|34.00|34.00|6,258,825.01|4,736,375.82|1,258,825.01|5,995,200.83||
|49.00|49.00|25,484,900.00|20,076,394.26||20,076,394.26||
|49.00|49.00|309.92|6,689.11||6,689.11||
|49.00|49.00|309.92|7,589.46||7,589.46||
|49.00|49.00|298.75||298.75||298.75|
|49.00|49.00|298.75||298.75||298.75|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||
|-|-|-|-|-|-|-|
|ShareholdingRatio (%)|Voting rights (%)|Investment cost|Year beginAmount|Current yearAdditions|Current yearDecrease|Year endAmount|
|50.00|50.00|50,000,000.00|||||
|||900,655,594.35|1,083,249,770.92|1,087,850,277.64|517,905,834.00|1,653,194,214.56|

 Note 1: Shenzhen CM Property Co., Ltd.– subsidiary of the Company, is holding51% of the equity share of Guangzhou Panyu Innovative Tech Garden Co., Ltd. For the Articles of Association of Guangzhou Panyu Innovative Tech Garden Co., Ltd. has stated that all financial and business decisions can only be adopted with favorable votes from over 2/3 of the directors. Therefore the Company is not holding control power over Guangzhou Panyu Innovative Tech Garden Co., Ltd. It was not consolidated.
Note 2: On March 19, 2013, Shanghai Xinnanshan Property Development Co., Ltd. reduced its registered capital by RMB190 million. Therefore Shenzhen CM Property Co., Ltd. has retrieved it investment of RMB38 million according to the articles of association and investment agreement of the company. Note 3: On July 16, 2013, the Company invested RMB 30 million to incorporate Ningbo Jiangwan Property Development Co., Ltd. and held100% of the shares. Ningbo Jiangwan took over Fudi (Group) Co., Ltd. and Shanghai Shimao Co., Ltd. thereafter. Upon completion of the expansion, Ningbo Jiangwan expanded its registered capital to RMB100 million. According to the Articles of Association of Ningbo Jiangwan and related agreements, the Company holds34% of share and voting power in it.
Note 4: Shenzhen CM Property Co., Ltd. is holding70% of equity share of Shenzhen Dehan Investment Co., Ltd. According to the Articles of Association of Shenzhen Dehan Investment Development Co., Ltd. and the related agreement, the financial and business decisions must be made upon mutual agreement of the two shareholders. Therefore Shenzhen China Merchants Property Co., Ltd. has no control over the company, and this company was not included in the consolidation range.
Note 5: On July 15, 2013, Shenzhen CM Shangzhi Property Co., Ltd., along with Shenzhen Wanke Commercial Property Management Co., Ltd., invested to incorporate Shenzhen Yihaicheng Commercial Property Management Co., Ltd. with registered capital of RMB1 million. Shenzhen CM Shangzhi Property invested RMB500 thousand and was holding50% of equity share of Shenzhen Yihaicheng Commercial Property Management Co., Ltd. According to the Articles of Association of Shenzhen Yihaicheng Commercial Property Management Co., Ltd. and the related agreement, the financial and business decisions must be made upon mutual agreement of the two shareholders. Therefore Shenzhen CM Shangzhi Property Co., Ltd. has no control over the company, and this company was not included in the consolidation range.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Note 6: According to the resolutions of theshareholders’ meeting held on April 1, 2013, Shenzhen OCT Property Co., Ltd. is holding the major voting power over Shenzhen CM OCT Investment Co., Ltd. For the control power has been demised, the Company eliminates Shenzhen CM OCT Investment Co., Ltd. from the consolidated financial statements since April 1, 2013, and Shenzhen CM OCT Investment Co., Ltd has become an associated company of the Company.
Note 7: Shenzhen CM Property Co., Ltd. uses equity basis to account the equity in Foshan Longyuan Property Co., Ltd. For the company was in great loss, the book value of the long-term equity investment has been reduced to zero.
(3) Investment in affiliates
|||||||
|-|-|-|-|-|-|
|Ratio %|Voting rights (%)|Total asset at end of year|Total liability at end of year|Total net asset at end of year|Total of turnover|
|70.00|50.00|19,332,300.93|133,601.61|19,198,699.32||
|50.00|50.00|2,214,246.08|1,476,529.25|737,716.83||
|50.00|50.00|651,968,359.27|672,924,222.36|-20,955,863.09||
|34.00|34.00|2,964,945,013.44|3,113,609,572.05|-148,664,558.61|9,000.00|
|50.00|50.00|17,095,319.45|10,929,473.56|6,165,845.89|27,220,575.05|
|100.00|34.00|1,380,798,554.96|1,353,665,770.23|27,132,784.73||
|50.00|50.00|3,399,625,684.85|2,603,501,195.89|796,124,488.96|2,244,688,271.37|
|51.00|50.00|739,436,746.91|174,231,295.59|565,205,451.32|30,987,394.26|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||||
|-|-|-|-|-|-|
|Ratio %|Voting rights (%)|Total asset at end of year|Total liability at end of year|Total net asset at end of year|Total of turnover|
|49.00|49.00|11,534,004.54|30,785,875.31|-19,251,870.77||
|20.00|20.00|1,640,096,209.71|1,358,450,566.94|281,645,642.77||
|49.00|49.00|645,688,163.78|311,287,030.18|334,401,133.60|28,774,814.00|
|49.00|49.00|5,769,232.72|748,195.32|5,021,037.40|10,487,601.36|
|45.00|45.00|238,510,046.24|7,223,312.79|231,286,733.45||
|33.33|33.33|897,516,573.93|244,905,104.07|652,611,469.86|1,114,204,622.00|
|49.00|49.00|77,580,399.23|77,577,852.16|2,547.07||
|49.00|49.00|85,336,012.55|85,332,631.40|3,381.15||
|49.00|49.00|20,775.43|20,000.00|775.43||
|49.00|49.00|20,775.43|20,000.00|775.43||
|40.00|40.00|798,274,547.37|328,678,617.01|469,595,930.36|474,957,615.15|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
11. Investment real estates
(1) Investment property on cost basis
||||
|-|-|-|
|Amount at the beginningof year|Increased thisyear|Decreased thisyear|
|4,347,138,687.70|2,986,251,795.37|251,696,458.25|
|3,025,915,189.70|1,845,495,803.56|251,696,458.25|
|1,321,223,498.00|1,140,755,991.81||
|1,229,802,703.46|215,050,597.94|25,003,610.46|
|1,041,996,453.70|154,900,927.34|25,003,610.46|
|187,806,249.76|60,149,670.60||
|3,117,335,984.24|||
|1,983,918,736.00|||
|1,133,417,248.24|||
|3,117,335,984.24|||
|1,983,918,736.00|||
|1,133,417,248.24|||

 (2) In the current increase of accumulated depreciation and accumulated amortizing, there was an amount of RMB2,792,331,979.79 provided in current year.
(3) As of December 31, 2013, no investment property under pledge.
(4) As of December 31, 2013, there were investment properties amounted to
RMB2,495,721,870.01 which had not been granted the Certificate of Property. Among
them were mainly Zhangzhou Ziweiyuan Phase I, Jinshangu Phase II, Walmart Shopping
Center, Jinshan House Phase VIII, Meilun Apartment, Shiptail Plaza, Behind-ship Plaza,
and China Merchants Plaza. Filing process of the certificates isunder progress.
12. Fixed assets
(1) Particulars of fixed assets
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Amount at the beginning of year|Transferred in current year|Increased this year|Decreased this year|
|769,068,044.59|29,948.00|1,849,044,503.74|196,09,507.71|
|379,918,768.98||1,658,778,844.36|163,377,056.25|
|227,304,296.17||100,082,025.74|12,306,731.12|
|77,504,791.68||21,716,555.18|6,923,715.86|
|84,340,187.76|29,948.00|68,467,078.46|13,402,004.48|
||Increased this year|Provided this year||
|333,873,066.83|323.21|92,667,471.35|42,828,864.32|
|88,538,442.71||53,254,822.97|20,766,445.36|
|149,448,071.21||15,152,471.13|9,263,718.32|
|44,727,402.63||8,482,634.13|5,768,010.24|
|51,159,150.28|323.21|15,777,543.12|7,030,690.40|
|435,194,977.76||||
|291,380,326.27||||
|77,856,224.96||||
|32,777,389.05||||
|33,181,037.48||||
|435,194,977.76||||
|291,380,326.27||||
|77,856,224.96||||
|32,777,389.05||||
|33,181,037.48||||

 (2) Among the fixed asset increased in current year, there were RMB9,157,706.99 of transferred from construction-in-process,RMB1,520,292,601.68 transferred from inventory, and RMB92,667,471.35 of accumulated depreciation in current year.
(3) As of December 31, 2013, there were some of the properties under application of property certificates, they were amounted to RMB671,343,361.54 in net value.
13. Construction in process
(1) Particulars of construction-in-process
||||||
|-|-|-|-|-|
|Balance at end of year|||||
|Bookbalance|Impairmentprovision|Bookvalue|Bookbalance|Impairmentprovision|
|97,696,226.79||97,696,226.79|85,522,230.1|9|
|2,936,043.39||2,936,043.39|2,936,043.3|9|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||
|-|-|-|-|-|
|Balance at end of year|||||
|Bookbalance|Impairmentprovision|Bookvalue|Bookbalance|Impairmentprovision|
|4,263,308.18||4,263,308.18|||
|104,895,578.36||104,895,578.36|88,458,273.58||

 (2) The change of important construction in progress
|||||
|-|-|-|-|
|Amount at thebeginning of year|Increased thisyear|Decreased this year||
|||Transferred tofixed asset|Otherdecrease|
|85,522,230.19|21,469,657.59|9,157,706.99|137,954.00|
|2,936,043.39||||
||4,263,308.18|||
|88,458,273.58|25,732,965.77|9,157,706.99|137,954.00|

 (cont.)
||||||
|-|-|-|-|-|
|Budget|% ofinvestment onbudget|Accumulate ofinterestcapitalized|Incl. Interestcapitalized inthe year|Capitalization rateof interest of theyear|
|214,000,000.00|45.65||||
|1,587,565,000.00|0.18||||
|7,363,308.18|57.90||||
|1,808,928,308.18|||||

14. Intangible assets
||||
|-|-|-|
|Amount at the beginning ofyear|Increased thisyear|Decreased thisyear|
||566,949,237.65||
||560,127,109.65||
||6,822,128.00||
||24,500,586.23||

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|Amount at the beginning ofyear|Increased thisyear|Decreased thisyear|
||21,427,208.41||
||3,073,377.82||

 (1) Settlements of Beijing Kangdela Hotel, Shekou Maritime World Hilton Hotel, and Zhangzhou Meilun Villas have completed, and the land-using rights were transferred to intangible assets with net value of RMB538,699,901.24.
(2) Actual amortization of the year was RMB24,500,586.23
15. Goodwill
||||
|-|-|-|
|Amount at the beginningof year|Increased thisyear|Decreased thisyear|
|159,560,861.23|||
|159,560,861.23|||

 The Group recognizes the difference between the predicted value of future cash flow and book value of the group of goodwill asset as impairment loss of the group of goodwill asset.
16. Long-term amortizable expenses
|||||
|-|-|-|-|
|Amount at thebeginning of year|Increased this year|Amortized this year|Other decrease in thisyear|
|210,543,536.60|7,355,898.42|19,867,820.41||
|38,895,156.52|52,255,208.77|29,874,474.19|1,638,662.98|
|249,438,693.12|59,611,107.19|49,742,294.60|1,638,662.98|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
17. Deferred income tax asset and deferred income tax liability
(1) Deferred income tax assets and liabilities already recognized
||
|-|
|Balance at end ofyear|
|740,221,155.30|
|195,213.25|
|2,618,340.03|
|4,617,710.75|
|3,580,077.90|
|444,284.36|
|5,790,627.28|
|12,790,471.82|
|770,257,880.69|
|108,596,697.05|
|108,596,697.05|

(2) Details of un-recognized deferred income tax assets
||
|-|
|Balance at end of year|
|20,887,975.87|
|1,880,447,683.61|
|599,606,449.00|
|2,500,942,108.48|

 (3) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
||
|-|
|Balance at end of year|
|9,070,705.50|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Balance at end of year|
|73,616,726.44|
|187,868,641.92|
|743,689,981.13|
|866,201,628.62|
|1,880,447,683.61|

 (4) Details of taxable differences and deductible differences
Items Amount
Differences in taxable items
Retained profit of the invested entities 1,251,843,070.09 Sub-total 1,251,843,070.09 Neutralizable different items
Bad debt provision on receivables 1,777,137.44 Bad debt provision on other receivables 18,470,842.98 Amortizing of other long-term assets 14,320,311.60 Land VAT drawn in advance 2,960,884,621.18 Reserved expenses 780,853.00 Expected liabilities 10,473,360.10 Education expenses and advertisement expenses exceeded the standard of tax law 23,162,509.11 Others 51,161,887.35 Sub-total 3,081,031,522.76 18. Detailed Table of Asset Impairment Provisions
|||||
|-|-|-|-|
|Amount at thebeginning of year|Increased thisyear|Decreased this year||
|||Writtenback|Othertransferred out|
|26,274,341.63|17,724,020.85|2,861,850.21|556.00|
|574,866,013.85|1,464,511.85|368,210,000.00|22,795,710.31|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Amount at thebeginning of year|Increased thisyear|Decreased this year||
|||Writtenback|Othertransferred out|
|601,140,355.48|19,188,532.70|371,071,850.21|22,796,266.31|

 Note 1: In the amount of bad debt provision increased in current year, there were RMB15,840,349.94 provided this year, and RMB1,883,670.91 was caused by change of consolidation range.
Note 2: Other transferring out of inventory impairment provision is demonstrated in VI. 6(III) Details of inventory impairment provisions.
19. Short-term loans
||
|-|
|Balance at end of year|
|1,200,000,000.00|
|3,050,000,000.00|
|4,250,000,000.00|

 Note 1: The Company has provided RMB1,200,000,000.00 of guarantee to Shenzhen CM Power Supply Co., Ltd.– subsidiary of the Company, for bank loans.
20. Notes payable
||
|-|
|Balance at end of year|
|4,777,875.00|
|22,489,762.07|
|27,267,637.07|

 Amount due in next fiscal year is RMB27,267,637.07.
21. Account payable
(1) Account payable
||
|-|
|Balance at end of year|
|6,498,504,292.06|
|4,916,328,784.79|
|135,650,000.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Balance at end of year|
|336,853,170.30|
|123,496,207.35|
|12,010,832,454.50|
|937,403,243.07|

 Note 1: Payment for acquisition of equity: the amount of RMB70,650,000.00 payable by Shenzhen CM Property Co., Ltd.– the subsidiary of the Company, to Shanghai Meiyang Property Co., Ltd. to acquire the equity of Shanghai Fengyang Property Development Co., Ltd.; and the amount of RMB65,000,000.00 payable to Shenzhen Weihui Investment Co., Ltd. to acquire Shenzhen CM Ruide Property Co., Ltd.
(2) Significant accounts payable aged over 1 year
||||
|-|-|-|
|End of term|Age|Reason of overdue|
|111,762,084.26|1-2 years|Project not settled yet|
|73,297,454.91|1-2 years|Project not settled yet|
|70,650,000.00|Over 3years|Settlement condition notsatisfied yet|
|54,278,086.92|1-2 years|Project not settled yet|
|52,001,940.71|2-3 years|Project not settled yet|
|50,215,826.51|1-2 years|Project not settled yet|
|42,759,208.59|1-2 years|Project not settled yet|
|35,748,237.40|Over 3years|Payment condition notsatisfied yet|
|31,614,517.68|1-2 years|Project not settled yet|
|29,168,325.00|1-2 years|Project not settled yet|
|21,797,152.60|2-3 years|Project not settled yet|
|20,329,349.60|2-3 years|Project not settled yet|
|18,995,924.21|Over 3years|Project not settled yet|
|16,336,506.27|Over 3years|Warranty not expired|
|15,093,827.65|Over 3years|Warranty not expired|
|14,302,377.78|1-2 years|Warranty not expired|
|12,791,137.35|1-2 years|Project not settled yet|
|12,325,332.00|1-2 years|Project not settled yet|
|10,544,301.13|1-2 years|Project not settled yet|
|9,334,729.84|1-2 years|Project not settled yet|
|8,894,329.50|1-2 years|Warranty not expired|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|End of term|Age|Reason of overdue|
|8,677,877.29|1-2 years|Project not settled yet|
|8,051,818.92|1-2 years|Project not settled yet|
|7,370,518.37|1-2 years|Warranty not expired|
|6,854,339.59|1-2 years|Project not settled yet|
|6,728,512.24|1-2 years|Project not settled yet|
|6,630,050.19|1-2 years|Project not settled yet|
|6,344,717.74|1-2 years|Project not settled yet|
|5,600,489.78|1-2 years|Warranty not expired|
|5,499,520.17|2-3 years|Project not settled yet|
|5,231,693.01|1-2 years|Warranty not expired|
|5,110,073.01|1-2 years|Project not settled yet|
|784,340,260.22|||

(3) No payable account at the end of year due to shareholders with5% or over of shares of the Group
22. Advances received
(1) Advances received
||
|-|
|Balance at end of year|
|37,517,671,641.79|
|3,720,581,363.29|

 Note: Most of the advance received were the advances for property sales. Advances overdue for over one year were those properties not accepted yet.
(2) No advance payment account at the end of year due to shareholders with5% or over of shares of the Group
(3) Prepayment for properties
||||
|-|-|-|
|End of term|Beginning of term|Planned finish date|
|2,513,448,128.72|3,154,064,691.00|2014|
|483,021,009.00|2,901,459,060.00|completed|
|612,503,010.00|30,096,975.00|2014|
|4,041,470.00|272,839,291.00|completed|
|8,167,103.00|118,291,105.00|completed|
|254,743,936.00|1,507,911,417.10|2014|
|64,133,341.74|134,345,182.98|2014|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|End of term|Beginning of term|Planned finish date|
|13,697,123.80|15,363,662.92|2015|
|81,034,908.03|356,405,403.70|completed|
|1,185,606,983.56||2015|
|336,531,075.00|43,515,038.00|2014|
|104,020,254.00||2015|
|1,025,262,637.00|102,643,871.00|completed|
|164,839,893.00|271,212,217.00|completed|
|122,907,095.00|10,293,698.00|2014|
|1,104,974,625.00||2014|
|1,068,144,545.32|1,400,508,645.88|2015|
|1,157,626,344.00|190,496,895.00|2014|
|605,767,868.00||2014|
|90,317,988.00||2015|
|130,421,353.00||2017|
|1,009,300,474.03|805,304,558.90|completed|
|1,507,876,002.00|582,760,542.00|2014|
|1,684,807,638.57|1,486,326,635.30|2015|
|35,159,236.20|205,381,096.20|2013|
|225,182,206.24|92,080,487.40|2014|
|1,109,021,632.16|260,534,822.11|2013|
|945,441,379.00|248,993,182.00|2014|
|718,119,183.00||2014|
|5,000,000.00|26,330,800.00|completed|
|1,450,106,403.20|357,313,345.00|2014|
|481,515,592.00|98,487,935.00|2014|
|703,275,279.23|645,325,350.80|2017|
|772,714,786.31|415,620,937.00|2015|
|79,310,504.00|971,786,616.00|completed|
|1,815,818,056.00|695,223,079.00|2014|
|996,710,467.73|1,082,750,503.00|completed|
|363,928,689.63|2,106,889,524.68|completed|
|297,758,971.00|415,276,326.00|2015|
|2,409,381,921.15|391,754,210.00|2016|
|428,617,599.35|679,472,966.00|2014|
|1,142,120,726.00|1,059,798,048.00|completed|
|916,294.00|2,358,203,307.90|completed|
|23,097,053.00|23,839,614.00|completed|
|41,930,540.00|400,973,143.00|completed|
|75,999,203.00|337,120,918.00|completed|
|292,375,822.00|203,949,030.00|completed|
||91,623,330.00||
||344,270,069.00||

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|End of term|Beginning of term|Planned finish date|
||25,588,605.00||
|3,890,394,171.00||2014|
|86,525,110.00||completed|
|3,365,465,960.00|1,457,269,767.00|2016|
|356,504,453.00||2015|
|12,000,463.24|23,053,805.73||
|37,457,586,507.21|28,402,749,707.60||

Note: For the phase IV, V, and VI of Shenzhen Xicheng are projects invested by Shenzhen CM OCT Co., Ltd., and the share equity has been changed. Therefore Shenzhen CM OCT Investment Co., Ltd. is no longer consolidated since April 1, 2013.
23. Employees’ wage payable
||||
|-|-|-|
|Amount at thebeginning of year|Increased this year|Decreased this year|
|301,198,403.1|3 1,186,144,737.65|1,133,694,041.40|
||73,957,304.82|73,957,304.82|
|1,299,788.7|2 156,841,719.71|157,559,025.98|
|193,510.3|7 35,635,289.94|35,651,544.68|
|376,137.3|6 84,041,811.29|83,915,654.62|
||38,739.36|38,739.36|
|444,010.8|3 25,468,033.20|26,337,759.99|
|116,895.3|8 5,620,415.54|5,587,791.91|
|85,571.7|7 3,020,829.90|3,014,576.58|
|83,663.0|1 3,016,600.48|3,012,958.84|
|1,232,929.0|0 47,610,669.47|47,567,656.37|
|23,424,349.0|3 35,588,101.07|36,878,424.85|
|1,280,000.0|0 1,844,974.32|1,844,974.32|
|5,605,024.2|4 12,084,796.40|10,716,657.29|
|334,040,494.1|2 1,514,072,303.44|1,462,218,085.03|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
24. Tax payable
||
|-|
|Balance at end of year|
|1,103,188,885.00|
|82,252,894.07|
|173,015,455.00|
|16,385,954.42|
|1,727,875.43|
|10,905,212.85|
|6,202,187.15|
|59,104,080.00|
|11,643,333.18|
|1,464,425,877.10|

 25. Interest payable
||
|-|
|Balance at end of year|
|141,592,356.43|
|6,809,898.56|
|3,958,803.08|
|152,361,058.07|

 26. Dividend payable
|||
|-|-|
|Balance at end ofyear|Amount at the beginningof year|
|110,809,046.70|64,670,051.82|
|9,692,329.22|9,692,329.22|
|285,600.10|285,600.10|
|140,218.27||
||215,517,078.84|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Balance at end ofyear|Amount at the beginningof year|
|120,927,194.29|290,165,059.98|

27. Other account payable
(1) Other account payable
||
|-|
|Balance at end of year|
|5,606,100,060.64|
|2,059,548,538.01|
|555,633,651.06|
|533,845,271.67|
|258,919,961.15|
|9,014,047,482.53|
|1,992,622,335.11|

 Note: Large amount other payables over one year were mainly the payment made by minority shareholders on behalf.
(2) Receivable accounts due from shareholding parties with5% or over of theCompany’s shares
||||
|-|-|-|
|Balance at end of year|||
|Amount|Bad debt provision provided|Amount|
|79,488,890.25||2,097,500.03|
|79,488,890.25||2,097,500.03|

(3) Other payable accounts with large amount at end of year
|||
|-|-|
|Amount|Age|
|906,420,768.56|over 0-3years|
|714,581,431.09|within 1year|
|674,733,289.97|1-2 years|
|568,935,193.89|1-2 years|
|490,911,225.00|within 1year|
|458,796,360.00|within 1year|
|455,576,819.38|within 1year|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Amount|Age|
|440,750,000.00|within 1year|
|367,200,000.00|within 1year|
|273,936,854.00|within 1year|
|251,012,803.57|1-2 years|
|244,220,000.00|within 1year|
|242,398,734.70|within 1year|
|200,000,000.00|within 1year|
|170,967,719.38|within 1year|
|160,830,000.00|within 1year|
|138,242,326.60|over 0-3years|
|106,410,408.00|within 1year|
|106,081,398.67|within 1year|
|101,021,474.96|Over 3years|
|7,073,026,807.77||

28. Non-current liability due in 1 year
(1) Non-current liability due in 1 year
||
|-|
|Balance at end of year|
|6,331,007,932.13|
|2,087,591,745.57|
|3,931,709,451.27|
|300,800,000.00|
|10,906,735.29|
|6,331,007,932.13|

 For details about long-term loans due in one year please go to Note VI. 30. Long-term loans
(2) Top 5 non-current liabilities due in one year at year end
|||
|-|-|
|Currency|Interest|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||
|-|-|-|-|-|
|Start date|Endingdate||rate %|Amount of foreigncurrency|
|2011/10/17|2014/09/26|USD|Fluctuate|100,000,000.00|
|2011/10/14|2014/07/18|USD|Fluctuate|70,000,000.00|
|2012/03/09|2014/03/09|RMB|Fixed||
|2012/03/09|2014/03/09|RMB|Fixed||
|2012/03/09|2014/03/09|RMB|Fixed||

 29. Other current liability
||
|-|
|Balance at end of year|
|3,560,491,070.18|
|3,560,491,070.18|

 Note 1: The Group provides land VAT in accordance with the document国税发[2006]187号文 issued by National Tax Bureau General and other regulations. The land VAT are carried in current gain/loss account. The amount of taxable amounts is adjusted according to the regulations of local area in which the subsidiaries are located.
30. Long-term borrowings
(1) Categories of long-term loans
||
|-|
|Balance at end of year|
|277,128,563.46|
|10,803,053,770.94|
|5,141,455,560.02|
|830,280,000.00|
|17,051,917,894.42|

Note 1: Please go to Note VI. 6. Inventory (5)
Note 2:
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
1） The Company raised loan of RMB2,000,000,000.00 from Huatai Insurance, which was secured by China Merchants Group Ltd.; RMB435,500,000.00 from the bank, which was secured by China Merchants Shekou Industrial Zone Co., Ltd., in which RMB8,000,000.00 will due in one year; RMB500,000,000.00 from Xiamen International Trust Co., Ltd., which was secured by China Merchants Shekou Industrial Zone Co., Ltd.; RMB749,000,000.00 from the bank, which was secured by Shenzhen CM Property Co., Ltd. , in which RMB749,000,000.00 will sue in one year.
2） Shenzhen China Merchants Power Supply Co., Ltd. raised loan of USD30,000,000.00 (RMB182,907,000.00) from the bank which was secured by the Company.
3） Beijing Kanglade Property Development Co., Ltd.– subsidiary of the Company, raised loan of RMB287,949,722.21 from the bank, and was secured by Shenzhen CM Property Co., Ltd. and China Merchants Shekou Industrial Zone Co., Ltd. basing on their shareholding proportion. In which RMB67,834,551.27 will due in one year.
4） Ruijia Investment Co., Ltd.– subsidiary of the Company, raised loan of USD1,085,000,000.00 (RMB6,615,136,500.00) and HKD850,000,000.00 (RMB668,270,000.00) from the bank, which both were secured by China Merchants Group (HK) Co., Ltd., in which RMB2,625,374,900.00 will due in one year.
5） Shenzhen CM Commerce Development Co., Ltd.– subsidiary of the Company raised the loan of RMB140,000,000.00 from the bank, which was secured jointly by Shenzhen CM Shangzhi Inevstment Co., Ltd. and Shenzhen Maritime World Industry Development Co., Ltd. according to their shareholding proportion.
6） Shenzhen Shekou Maritime World Hotel Management Co., Ltd.– subsidiary of the Company, raised loans of RMB500,000,000.00 from the bank, which was secured by Shenzhen CM Shangzhi Investment Co., Ltd. and China Merchants Shekou Industrial Zone Co., Ltd. according to their share of equities. In the above amount RMB20,000,000.00 will due in one year.
7） Senzhen CM Property Co., Ltd. has raised loan of RMB580,000,000.00, which was secured by China Merchants Shekou Industry Zone Co., Ltd.; including RMB461,500,000.00 will due in one year; and another RMB200,000,000.00 of bank loan was secured by the Company.
8） Wuhan Aoming Property Development Co., Ltd.– subsidiary of the Company, raised loan of RMB26,000,000.00, which was secured by China Merchants Shekou Industrial Zone Co., Ltd.
9） Guangzhou Wanshang Property Co., Ltd.– subsidiary of the Company, raised the loan of RMB50,000,000.00 from the bank, which was secured jointly by Shenzhen CM Property Co., Ltd., Guangzhou Wanke Property Co., Ltd., and Shanghai Laiyuan Property Development Co., Ltd. at their share portion.
10） Shenzhen Wanke Binhai Property Co., Ltd.– subsidiary of the Company raised the bank loan of RMB100,000,000.00, which was secured by Shenzhen CM Property Co., Ltd. and Shenzhen Wanke Property Co., Ltd.
11） China Merchants Property (Nanjing) Co., Ltd.– subsidiary of the Company, raised the bank loan of RMB600,000,000.00, which was secured by Guangzhou CM Property Co., Ltd. Foshan Yiyun Property Co., Ltd.– subsidiary of the Company, raised the bank loan of RMB1,100,000,000.00, which was secured by Guangzhou CM Property Co., Ltd. and The Wharf Property (Guangzhou) Co., Ltd.
Note 3:
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
1） According to the Contract of Entrusted Loan engaged by Guangzhou Wanshang Property Co., Ltd.– subsidiary of the Company, Guangzhou Wanke Property Co., Ltd., and the bank, Guangzhou Wanke Property Co., Ltd. entrusted the bank to provide the loan of RMB415,140,000.00 to Guangzhou Wanshang Property Co., Ltd. According to the Contract of Entursted Loan engaged by Guangzhou Wanshang Property Co., Ltd.– subsidiary of the Company, Hangzhou Hanglong Property Management Co., Ltd. and the Bank, Hangzhou Hanglong Property Management Co., Ltd. entrusted the Bank to provide RMB415,140,000.00 of loan to Guangzhou Wanshang Property Co., Ltd.
2） According to the Contract of Entrusted Loan engaged by Qingdao Zhongrunde Auto Trade Co., Ltd.– subsidiary of the Company, and Qingdao Zhongrunde Investment Consulting Co., Ltd. and the Bank, Qingdao Zhongrunde Investment Consulting Co., Ltd. entrusted the bank to provide RMB10,906,735.29 of loan to Qingdao Zhongrunde Auto Trade Co., Ltd., in which RMB10,906,735.29 will due in one year.
(2) Top 5 long-term loans in amounts
||||||
|-|-|-|-|-|
|LoansStart date|LoansEnding date|Currency|Interestrate %||
|||||ForeignCurrencyAmount|
|2010/04/20|2017/04/19|RMB|Fluctuate||
|2013/12/23|2016/12/23|USD|Fluctuate|194,000,000.00|
|2013/03/29|2015/03/29|RMB|Fixed||
|2013/04/11|2015/06/15|USD|Fluctuate|180,000,000.00|
|2013/12/18|2016/12/18|USD|Fluctuate|100,000,000.00|

 Cont.
||||||
|-|-|-|-|-|
|Loans|LoansEnding date|Currency|Interestrate %||
|||||ForeignCurrencyAmount|
|2010/04/20|2017/04/19|RMB|Fluctuate||
|2013/12/23|2016/12/23|USD|Fluctuate||
|2013/03/29|2015/03/29|RMB|Fixed||
|2013/04/11|2015/06/15|USD|Fluctuate||
|2013/12/18|2016/12/18|USD|Fluctuate||

31. Bond payable
||||
|-|-|-|
|Total face value|Date of issue|Term|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|Total face value|Date of issue|Term|
|3,048,450,000.00|2013-12-11|5 yrs|
|3,048,450,000.00|||

 Cont.
||||
|-|-|-|
|Interest payablecurrent year|Interest paidcurrent year|Interest payable at endof year|
|6,809,898.56||6,809,898.56|
|6,809,898.56||6,809,898.56|

 China Merchants Land Property Co., Ltd.– subsidiary of the Company issued the reinforced bonds on December 11, 2013, and raised USD500 million with term of 5 years and face interest rate of4.021% per annum. The rate will be fixed in the term and interest paid on half year basis, no compound interest is calculated. The bond was listed in Hong Kong Stock Exchange on December 12, 2013. The proceeds are used to support theCompany’s operation.
32. Long-term payable
||
|-|
|Balance at end of year|
|102,745,035.90|
|101,545,035.90|
|1,200,000.00|

 33. Expected liabilities
||||
|-|-|-|
|Amount at the beginning ofyear|Increased thisyear|Transferred this year|
|14,017,011.26||3,543,651.16|
|14,017,011.26||3,543,651.16|

 Expected liabilities occurred by the lawsuit raised by some owners of properties developed by Zhuhai Yuanfeng Property Co., Ltd. Partial of the amount was written off respectively due
tosomecases were partially closed.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
34. Non-current liabilities
(1) Details of other non-current liabilities
||
|-|
|Balance at end of year|
|9,420,040.00|
|1,500,000.00|
|316,720.00|
|11,236,760.00|

 (2) Government subsidies
|||||
|-|-|-|-|
|Amount at thebeginning of year|Amount of newsubsidy this year|Amount accounted innon-business incomethis year|Balance at end ofyear|
|14,130,060.00||4,710,020.00|9,420,040.00|
|1,500,000.00|||1,500,000.00|
|15,630,060.00||4,710,020.00|10,920,040.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
35. Share capital
|||||||||
|-|-|-|-|-|-|-|-|
|Amount at the beginning of year||Changed this year (+/-)||||||
|Amount|Ratio (%)|Issuing of new shares|Bonus shares|Transferred from reserves|Others|Sub-total|Amount|
|693,419,317.00|40.38||||||693,419,317.00|
|197,709,440.00|11.51||||||197,709,440.00|
|197,709,440.00|11.51||||||197,709,440.00|
|512,851.00|0.03||||-136,753.00|-136,753.00|376,098.00|
|891,641,608.00|51.92||||-136,753.00|-136,753.00|891,504,855.00|
|684,267,595.00|39.85||||-18,747.00|-18,747.00|684,248,848.00|
|141,391,300.00|8.23||||155,500.00|155,500.00|141,546,800.00|
|825,658,895.00|48.08||||136,753.00|136,753.00|825,795,648.00|
|1,717,300,503.00|100.00||||||1,717,300,503.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
36. Capital reserves
||||
|-|-|-|
|Amount at the beginningof year|Increased thisyear|Decreased thisyear|
|8,272,422,487.12|||
|104,411,758.00|||
|10,092,053.00|60,122,528.44||
|8,386,926,298.12|60,122,528.44||

 Increase of capital reserves was caused by adjustment of acquisition premium of CM Guoling project by Shenzhen CM Property Co., Ltd. according to Shenzhen Meiyue Property Consulting Co., Ltd. Share Equity Transferring Agreement.
37. Surplus reserves
||||
|-|-|-|
|Amount at the beginning ofyear|Increased thisyear|Decreased thisyear|
|887,660,959.90|105,734,395.09||
|140,120,038.00|||
|1,027,780,997.90|105,734,395.09||

 38. Retained profit
||
|-|
|Amount|
|12,173,100,556.73|
|12,173,100,556.73|
|4,202,152,074.18|
|105,734,395.09|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Amount|
|515,190,150.90|
|405,592,193.75|
|15,348,735,891.17|

Note 1: According to the Articles of Association, statutory surplus reserve is provided at10% of the net profit.
Note 2:
1) According to the profit distribution plan for year 2012 adopted at the meeting of Board held on March 16, 2013, RMB515,190,150.90 was distributed to 1,717,300,503 shares as of December 31, 2012.
2) According to the profit distribution plan for year 2013 adopted at the meeting of Board held on March 14, 2014, every 10 shares will be distributed to RMB4.80 cash dividends (including tax), and RMB824,304,241.44 is about to be distributed to 1,717,300,503 shares as of December 31, 2013. Every 10 shares is about to be transferred to 5 common shares from capital reserve based on the 1,717,300,503 shares on December 31, 2013, totaltransformation amout equates to RMB858,650,251, after the transformation, total shares outstanding increase to 2,575,950,754 and the capital reserve ending balance is RMB8,068,403,942.
Note 3: In April 2013, the Company,Eureka Investment Co. Ltd.Eureka Investment Co. Ltd. and China Merchants Land Property Co., Ltd. (former Dongli Industry Holdings Co., Ltd.)– subsidiaries of the Company entered the significant asset reorganizing agreement (Supplementary agreement engaged on September 22, 2013), by which China Merchants Land Property acquired the share equities the Company and Eureka Investment Co. Ltd. had been held in 11 domestic subsidiaries, with consideration of RMB5,327.6905 million (HKD6,688.0373). The fund for the consideration was raised through rights issue to shareholders of China Merchants Land Property, while the acquisition and rights issue are the preconditions to each other. On November 1, 2013, the rights issue was accomplished and totally 3,836,789,000 shares were issued. Therefore the shareholding rate of the Company in China Merchants Land Property was changed from70.18% to74.35%. This caused the reduction of retained profit by RMB404,241,306.74.
39. Minorshareholders’ equity
|||
|-|-|
|Percentage of minorityequity|Balance at end ofyear|
|40.00|-1,936,145.96|
|20.00|5,009,617.73|
|50.00|1,083,696,920.33|
|40.00|86,371,797.60|
|49.00|325,031,109.56|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Percentage of minorityequity|Balance at end ofyear|
|34.93|42,046,009.47|
|49.00|-972,279.47|
|49.00|-17,109.84|
|49.00|60,503,665.67|
|40.00|106,543,429.10|
|25.00|11,142,732.16|
|30.00|2,999,560.05|
|50.00|954,476,087.40|
|40.00|308,209,766.77|
|49.00|-4,761,084.37|
|49.00|103,602,153.72|
|49.00|-1,152,081.66|
|40.00|-6,579,163.05|
|45.00|136,718,744.67|
|50.00|97,663,599.52|
|40.00|88,026,633.60|
|49.00|156,493,862.83|
|66.00|52,780,108.29|
|25.65|2,075,109,818.07|
|50.00|3,390,669.24|
|49.00|130,941,276.11|
|50.00|12,568,221.14|
|40.00|3,731,635.58|
|49.00|88,300,523.24|
|50.00|969,375,418.71|
|50.00|2,415,635.31|
|50.00|427,534,853.66|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Percentage of minorityequity|Balance at end ofyear|
|50.00|478,001,641.97|
|40.00|799,931,781.17|
|50.00|2,559,077,859.18|
|50.00|955,802,053.72|
|49.00|710,994.12|
|49.00|4,911,176.40|
|40.00|19,753,128.45|
|23.00|7,078,114.95|
|49.00|9,104,123.63|
|15.00|38,028,378.75|
||12,191,665,237.52|

 40. Operating income and costs
||
|-|
|Amount of current year|
|32,567,813,857.52|
|32,567,813,857.52|
|19,045,102,287.65|
|19,045,102,287.65|

 (1) Main business– on industrial segments
||||
|-|-|-|
|Amount of current year|||
|Turnover|Operation cost|Turnover|
|31,226,483,959.90|17,937,788,624.00|24,037,579,089.49|
|641,537,370.95|485,977,612.68|685,696,144.08|
|699,792,526.67|621,336,050.97|573,486,920.89|
|32,567,813,857.52|19,045,102,287.65|25,296,762,154.46|

 (2) Operating income from top 5 clients
Name of clients Turnover % in total revenue
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Turnover|
|128,103,723.60|
|62,827,421.70|
|35,375,827.33|
|32,000,000.00|
|31,577,018.80|
|289,883,991.43|

41. Business tax and surcharge
|||
|-|-|
|Amount of current year|Amount of Last Year|
|2,723,108,635.05|2,823,618,712.75|
|1,667,213,775.21|1,293,100,840.67|
|95,053,221.33|85,642,992.39|
|66,740,200.22|58,159,231.39|
|25,459,662.41|12,763,414.00|
|4,577,575,494.22|4,273,285,191.20|

42. Sales expense
||
|-|
|Amount of current year|
|451,403,638.72|
|274,511,340.98|
|44,693,102.11|
|770,608,081.81|

 43. Administrative expense
||
|-|
|Amount of current year|
|313,529,846.42|
|113,360,304.61|
|70,946,867.22|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Amount of current year|
|11,801,409.76|
|30,466,147.59|
|15,790,246.36|
|555,894,821.96|

 44. Financing expenses
||
|-|
|Amount of current year|
|1,544,646,132.67|
|581,693,680.57|
|246,444,880.32|
|-134,780,427.87|
|32,731,247.07|
|614,458,390.98|

 45. Asset impairment loss
||
|-|
|Amount of current year|
|12,978,499.73|
|-366,745,488.15|
|-353,766,988.42|

 46. Investment income
(1) Sources of investment gains
||
|-|
|Amount of current year|
|310,807,356.80|
|257,834,701.28|
|628,266.08|
|569,270,324.16|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
(2) Long-term equity investment gains on equity basis
|||
|-|-|
|Amount of current year|Amount of Last Year|
|258,801,239.92||
|49,026,006.19|8,699,616.54|
|33,260,382.13|77,382,443.56|
|6,808,904.47|-170,193.44|
|426,686.25|383,241.34|
|49,961.73|130,172.97|
|-6,689.11|6,379.19|
|-7,589.46|7,279.54|
|-111,115.22|-144,557.47|
|-974,853.19||
|-2,187,313.85|-7,105,449.47|
|-3,670,871.45|-15,000,000.00|
|-4,615,919.52|-5,934,878.05|
|-5,995,200.82|-263,624.18|
|-19,996,271.27|-5,249,809.29|
||-50,000,000.00|
|310,807,356.80|2,740,621.24|

47. Non-operational income
(1) Particulars of non-operational income
|||
|-|-|
|Amount of currentyear|Amount of LastYear|
|604,183.76|76,460.03|
|496,385.30|76,460.03|
|33,800,048.66|16,352,111.12|
|13,678,690.64|3,917,153.32|
|21,331,558.69|4,495,438.45|
|69,414,481.75|24,841,162.92|

 Note: Other non-operating income includes gains raised from fair value of investedentities’ recognizable net asset exceeding the investment cost incurred when acquiring the subsidiaries,
see “ Note V, III 1. Subsidiaries procured through merger of entities under non-uniform control”
for detailed information.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
(2) Details of government subsidy
||||
|-|-|-|
|Current yearAmount|Prev. yearAmount|Source and basis|
|22,486,300.00||No tice for Subsidy for Reconstruction of Old Buildings|
|4,710,020.00|4,710,020.00|Subsidy contract with China Merchants ZhangzhouDevelopment Zone Land Reserve Center|
|2,200,000.64|1,929,180.15|Notic for Award of Great Taxpayer by Tianjin Hetong Bureau ofFinance|
|1,301,400.00|1,297,900.00|Notics for Awards to Significant Tax Payers by WuzhongDevelopment Zone, Suzhou|
|753,765.22||Notice for distributing of heating subsidies of year 2012-2013and extending of subsidy period|
|680,000.00||Notice about subsidies for welfare houses for rent 2013, 黑发改投资（2013）472号|
|624,797.80||虹嘉招2013（D149号）|
|296,780.00|292,900.00|Notice for Award for Great Taxpayers by Tianjin Nankai Bureauof Finance|
|273,585.00||Notice for awarding significant tax payers by Zhuhai Bureau ofTax|
|130,000.00|80,000.00|Document about awarding excellent enterprises for year 2013|
|103,400.00|281,100.00|Notice from Chengdu Chenghua Government Jianshe RoadOffice|
||857,100.00|成都双水街办[2012]84号文件、华中成都字[2012]95号文件|
||300,000.00|Memorandum of the meeting of China Merchants ZhangzhouDevelopment Zone Administration Committee|
||5,449,100.00|渝危改办发[2008]15号、南岸府函[2011]148号|
||567,227.97|政府财政收入虹嘉招2011（D149）号|
||10,000.00|Government subsidy from Shanghai Nanqiao Government|
||217,583.00|Shanghai Baoshan Yanghang Town Government|
||40,000.00|Notice of award for great taxpayer from Xiamen Jimei Bureauof Finance|
|240,000.00|240,000.00|Notice for demonstration project of energy-saving for 2012|
||80,000.00|Notice of award for great taxpayer from Xiamen Jimei Bureauof Finance|
|33,800,048.66|16,352,111.12||

48. Non-operational expenditure
|||
|-|-|
|Amount of currentyear|Amount of LastYear|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Amount of currentyear|Amount of LastYear|
|2,183,321.32|1,484,257.65|
|2,183,321.32|1,484,257.65|
|4,000,000.00|2,218,100.00|
||701.00|
||14,397,011.26|
|4,509,217.04|62,582.39|
|5,312,929.45|4,205,891.86|
|4,828,272.49|4,384,716.40|
|8,613,339.70|32,948,160.38|
|29,447,080.00|59,701,420.94|

 49. Income tax expenses
(1) Income tax expenses
||
|-|
|Amount of current year|
|2,178,379,087.45|
|280,486,241.72|
|2,458,865,329.17|

 (2) Income tax of the current year
Items Amount
Total of consolidated profit of current year
7,967,179,495.23 Plus: Increased amount by tax adjustment
1,841,204,266.24 Less: Decreased amount by tax adjustment
1,927,536,636.34 Plus: taxable income from abroad business used to makeup domestic loss
Less: makeup of previous loss
119,343,717.55 Plus:subsidies’ loss of current year
965,640,916.37 Amount of taxable income of current year
8,727,144,323.95 Statutory income tax rate (Company tax of HK is16.5%)
25%
Income tax payable for current year
2,178,379,087.45
Less: exemption of income tax
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Items Amount
Less: amount of income tax neutralized
50. Calculation formula of basic earnings per share and diluted earnings per share
|||
|-|-|
|No.|Amount ofcurrent year|
|1|4,202,152,074.18|
|2|278,973,845.53|
|3=1-2|3,923,178,228.65|
|4|1,717,300,503.00|
|5||
|6||
|7||
|8||
|9||
|10||
|11|12|
|12=4+5+6×7÷11-8×9÷11-10|1,717,300,503.00|
|13=1÷12|2.4470|
|14=3÷12|2.2845|
|15||
|16||
|17||
|18||
|19=[1+(15-16)×(1-17)]÷(12+18)|2.4470|
|19=[3+(15-16)×(1-17)]÷(12+18)|2.2845|

51. Other misc. incomes
||
|-|
|Amount of currentyear|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Amount of currentyear|
|-266,154.33|
|-266,154.33|
|-266,154.33|

 52. Cash Flow Statement Items
(1) cash related to business operation, investment, or financing activities received or paid
1） Operating cash inflows
||
|-|
|Amount of current year|
|2,988,328,783.67|
|591,582,340.28|
|241,785,320.96|
|725,270,863.91|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Amount of current year|
|195,980,980.01|
|4,742,948,288.83|

2） Operating cash outflows
||
|-|
|Amount of current year|
|4,157,225,688.87|
|438,871,030.57|
|483,800,859.48|
|412,218,590.88|
|259,665,817.42|
|5,751,781,987.22|

3） Other cash paid related to investment
||
|-|
|Amount of current year|
|561,222,801.84|
|561,222,801.84|

 (2) Supplementary information for consolidated cash flow statement
||
|-|
|Amount of currentyear|
|5,508,314,166.06|
|-353,766,988.42|
|92,667,471.35|
|239,551,184.17|
|49,742,294.60|
|1,686,936.02|
|962,952,452.10|
|-569,270,324.16|
|171,889,544.67|
|108,596,697.05|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Amount of currentyear|
|-4,449,026,199.21|
|-7,443,908,125.86|
|6,176,494,446.14|
|495,923,554.51|
|24,235,680,921.50|
|18,218,506,517.70|
|6,017,174,403.80|

 (3) Information about subsidiaries or entities disposed or acquired in the current year
||
|-|
|Amount of currentyear|
|155,100,000.00|
|155,100,000.00|
|303,764.93|
|154,796,235.07|
|518,254,348.63|
|3,484,263,907.42|
|23,770.41|
|2,927,991,179.09|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Amount of currentyear|

(4) Cash and cash equivalents
||
|-|
|Amount of current year|
|24,235,680,921.50|
|277,828.02|
|21,969,131,604.53|
|2,266,271,488.95|
|24,235,680,921.50|
|4,777,875.00|

V. Related parties and related transactions
Relationship
(I)
Controlling shareholder and ultimate controlling party
1.
(1) Controlling shareholder and ultimate controlling party
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Ownershiptype|Reg.Add.|Business property|Legalrepresentative|
|Ltd. liability|Shenzhenv|Establishment and managementarious types of enterprises.|ofSun Chengming|
|Ltd. liability|Shenzhenv|Establishment and managementarious types of enterprises.|ofFu Yuning|

(2) Change of registered capital of the controlling shareholder
||||
|-|-|-|
|Amount at thebeginning of year|Increased thisyear|Decreased thisyear|
|2,236,000,000.00|||

(3) Change of shares or equity by the controlling shareholder
||||
|-|-|-|
|Amount of shares|||
|Balance at end ofyear|Amount at thebeginning of year|Closingpercentage|
|693,419,317.00|693,419,317.00|40.38|

693,419,317 shares of the Company is held by China Merchants Shekou Industrial Zone Co., Ltd. directly, another 197,709,440 shares of the Company is indirectly held by China Merchants Shekou Industrial Zone Co., Ltd. through its subsidiaries,both parts of shares total51.89% of theCompany’s outstanding shares.
Subsidiaries
2.
See Note V. (I)
Joint ventures and affiliates
3.
See Note VI. 10 (3)
Other related parties
4.
Type of Main contents of
Name of the parties
relationship transaction
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Type of Main contents of
Name of the parties
relationship transaction
(1) Other entities under the same controlling shareholder and ultimate controlling party
||
|-|
|China Merchants International (China) Investment Ltd.|
|Shenzhen CM Qianhaiwan Property Co., Ltd.|
|China Shenzhen Foreign Cargo Ship Agency Co., Ltd.|
|Shenzhen China Merchants Financing Service Co., Ltd.|
|China Merchants Asia-pacific Investment (Shenzhen) Co., Ltd.|
|China Merchants Zhangzhou Development Zone Power Supply Co., Ltd.|
|CM Zhangzhou Development Zone Ltd.|
|Blue Cove International Ltd|
|Powerwise International Ltd|
|Shenzhen Chins Merchants Land Investment Co. Ltd.|
|Haida Fareast Insurance Consultancy Co., Ltd.|
|Shenzhen Nanhai Hotel Co., Ltd.|
|Shenzhen Pingfang Auto Garden Co., Ltd.|
|China Merchants International Cold Chain (Shenzhen) Co., Ltd.|
|China Merchants Group (HK) Co., Ltd.|
|China Merchants (Shanghai) Investment Co., Ltd.|
|China Merchants Bank Co., Ltd.|
|Shenzhen China Merchants Landmark Co., Ltd.|
|China Merchants International IT Co., Ltd.|
|China Merchants Group Post-doctorial Workstation|
|Shanghai CM Plaza Property Co., Ltd.|
|Shenzhen Sehkou Industrial Zone Employees’ Housing Co., Ltd.|
|Shenzhen China Merchants International Shipping Agency Co., Ltd.|
|Shenzhen China Merchants Network Co., Ltd.|
|China Merchants Group Shenzhen Major Project Cordinating Office|
|China Merchants Asia-Pacific Transportation Infrastructure Management Co.,Ltd.|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Type of Main contents of
Name of the parties
relationship transaction
(2) Other related parties
Key management personnel of the Company - directors, manager, and
vice managers
Related transaction
(II)
1. Purchase of goods or labor
||||
|-|-|-|
|Current year|||
|Amount|Portion insimilartransactions(%)|Amount|
|||3,991,506,064.00|
|52,410,380.09|2.90|75,984,528.65|
|3,445,839.33|10.53|1,417,330.00|
|28,541,355.00|1.58||
|||86,359.03|
|84,397,574.42||4,068,994,281.68|

Note 1: It was the loan interests paid to China Merchants Bank Co., Ltd.
Note 2: Bank service charge collected by China Merchants Bank Co., Ltd.
Note 3: Shenzhen CM Financial Service Co., Ltd. is the shareholder of Shenzhen Jinyu Rongtai Investment Development Co., Ltd. It provided payment on behalf to Jinyu Rongtai Investment Development Co., Ltd. at its shareholding ratio and gain interests upon the payment according to the rate of bank loan in similar period.
2. Sales of goods or labor services
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
||Current year|||
||Amount|Portion in similartransactions (%)|Amount|
|Note 1|4,648,368.50|0.79|47,991,537.00|
|Note 2|13,886,609.87|2.35|41,064,158.40|
|Note 3|4,870,223.11|0.70|5,323,076.96|
|Note 5|3,970,174.60|0.60|4,109,981.60|
|Note 11|51,664,625.02|63.08|2,586,706.31|
|Note 4|511,996.12|0.07|482,972.04|
|Note 5|4,668,368.00|0.71||
|Note 5|4 ,229,098.30|0.76||
|Note 7|5,088,000.00|13.27||
|Note 6|35,375,827.33|5.99||
|Note 8|4,465,975.30|0.64||
||133,379,266.15||101,558,432.31|

Note: (1) This was the construction contract income of overall project contracting of Qianhaiwan Garden Phase I-IV undertaken by China CM Construction Co., Ltd. from Shenzhen CM Qianhaiwan Property Co., Ltd.
(2) It was the income of Shenzhen CM Construction Co., Ltd. from construction contract for the overall construction of Qianhai Warehouse Phase II of China Shenzhen Foreign Shipping Agency Co., Ltd.
(3) It was the property management service provided by China Merchants Property Management (HK) Co., Ltd.– subsidiary of the Company to China Merchants Group (HK) Co., Ltd.
(4) This was the power supply service provided by Shenzhen CM Power Supply Co., Ltd. to China International Cold-chain (Shenzhen) Co., Ltd., Shenzhen Nanhai Hotel Co., Ltd. and Shenzhen Pingfang Auto Garden Co., Ltd.
(5) This was the interest income from savings in China Merchants Bank Co., Ltd.(6) This was the property management service provided by CM Property Management (HK) Co., Ltd. to China Merchants International (China) Investment Co., Ltd.
(7) This was the construction administration fee collected by Shanghai CM Property Co., Ltd.– subsidiary of the Company, from China Merchants (Shanghai) Investment Co., Ltd.
(8) It was the income of Shenzhen CM Construction Co., Ltd. from construction contract for the overall construction of Xicheng Phase V and VI of Shenzhen CM OCT Investment Co., Ltd.
(9) This was the property administration services provided by China Merchants Property
Management Co., Ltd. Guangzhou Branch– subsidiary of the Company, to Guangzhou
PanyuCreative Technology Garden Co., Ltd.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
3. Leasing out
||||||
|-|-|-|-|-|
|Name of the lessee|Category ofasset for rent|LeasesStart date|LeasesEnding date|Pricing basis|
|China Merchants ShekouIndustrial Zone Co., Ltd.|office/houses|2013.01.01|2013.12.31|agreement price|
|China MerchantsInternational (China)Investment Ltd.|Officebuildings|2013.01.01|2013.12.31|agreement price|
|China MerchantsInternational IT Co., Ltd.|Plant/office|2013.01.01|2013.12.31|agreement price|
|Shenzhen Shekou IndustrialZone Employees’ HousingCo., Ltd.|Officebuildings|2013.01.01|2013.12.31|agreement price|
|China Merchants GroupShenzhen Major ProjectCoordinating Office|Officebuildings|2013.01.01|2013.12.31|agreement price|
|Shenzhen China MerchantsInternational ShippingAgency Co., Ltd.|Officebuildings|2013.01.01|2013.12.31|agreement price|
|China MerchantsAsia-Pacific TransportationInfrastructure ManagementCo., Ltd.|Officebuildings|2013.01.01|2013.12.31|agreement price|
|Shenzhen China MerchantsLandmark Co., Ltd.|Officebuildings|2013.01.01|2013.12.31|agreement price|
|Shenzhen China MerchantsNetwork Co., Ltd.|Officebuildings|2013.01.01|2013.12.31|agreement price|
|China Merchants GroupPost-doctorial Workstation|Officebuildings|2013.01.01|2013.12.31|agreement price|

4. Leased in
||||||
|-|-|-|-|-|
|Name of the lessee|Category of assetfor rent|LeasesStart date|LeasesEnding date|Pricing basis|
|China MerchantsCommercial PropertyInvestment (Shenzhen)Co., Ltd..|Nanhai E-cool|2010.09.01|2023.08.31|agreementprice|
|China MerchantsCommercial PropertyInvestment (Shenzhen)Co., Ltd..|Land using right|2010.09.01|2023.08.31|agreementprice|
|Shenzhen CM Power Supply Co.,Ltd.|Land using right|1982.01.01|2026.12.31|agreementprice|
|Shanghai CM Minsheng PropertyLtd.|Office buildings|2013.1.1|2013.12.31|agreementprice|
|Shanghai Fengyang Property Ltd.|Office buildings|2013.1.1|2013.12.31|agreementprice|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||
|-|-|-|-|-|
|Name of the lessee|Category of assetfor rent|LeasesStart date|LeasesEnding date|Pricing basis|
|Shanghai Jingyuan Property Co.,Ltd.|Office buildings|2013.1.1|2013.12.31|agreementprice|
|Shanghai CM Hongfa PropertyCo., Ltd.|Office buildings|2013.1.1|2013.12.31|agreementprice|
|Shenzhen CM PropertyManagement Co., Ltd.|Rental of dormitary|2011.4.1|2013.3.30|agreementprice|
|Shenzhen CM PropertyManagement Co., Ltd.|Land using right|2013.1.1|2014.12.31|agreementprice|
|Shenzhen CM Property Co., Ltd.|Land using right|2013.1.1|2014.12.31|agreementprice|

5. Guarantees among the related parties
|||||
|-|-|-|-|
|Name of the benificiary|Amountguaranteed|Start date|Expiredon|
|Eureka Investment Company Ltd.|304,845,000.00|2007.11.20|2014.01.19|
|Eureka Investment Company Ltd.|609,690,000.00|2011.10.17|2014.09.26|
|Eureka Investment Company Ltd.|609,690,000.00|2013.04.29|2016.04.25|
|Eureka Investment Company Ltd.|304,845,000.00|2011.10.14|2014.09.26|
|Eureka Investment Company Ltd.|393,100,000.00|2011.10.21|2014.10.13|
|Eureka Investment Company Ltd.|275,170,000.00|2011.11.25|2014.11.25|
|Eureka Investment Company Ltd.|128,034,900.00|2011.12.28|2014.12.27|
|Eureka Investment Company Ltd.|304,845,000.00|2013.12.16|2015.06.28|
|Eureka Investment Company Ltd.|426,783,000.00|2012.10.14|2014.07.18|
|Eureka Investment Company Ltd.|182,907,000.00|2011.07.22|2014.07.18|
|Eureka Investment Company Ltd.|121,938,000.00|2013.03.26|2015.06.15|
|Eureka Investment Company Ltd.|1,097,442,000.00|2013.04.11|2015.06.15|
|Eureka Investment Company Ltd.|304,845,000.00|2013.03.05|2016.03.01|
|Eureka Investment Company Ltd.|121,938,000.00|2013.10.31|2016.10.31|
|Eureka Investment Company Ltd.|304,845,000.00|2013.09.30|2016.09.30|
|Eureka Investment Company Ltd.|609,690,000.00|3013.12.18|2016.12.18|
|Eureka Investment Company Ltd.|1,182,798,600.00|2013.12.23|2016.12.23|
|The Company|2,000,000,000.00|2010.04.20|2017.04.19|
|The Company|500,000,000.00|2013.03.29|2015.03.29|
|Shenzhen China Merchants Property Co., Ltd.|156,000,000.00|2012.09.18|2014.09.18|
|Shenzhen China Merchants Property Co., Ltd.|89,000,000.00|2012.09.19|2014.09.19|
|Shenzhen China Merchants Property Co., Ltd.|28,500,000.00|2012.11.30|2014.11.30|
|Shenzhen China Merchants Property Co., Ltd.|188,000,000.00|2012.12.24|2014.12.24|
|Shenzhen China Merchants Property Co., Ltd.|118,500,000.00|2013.01.29|2015.01.29|
|The Company|198,000,000.00|2012.12.19|2015.12.19|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||||
|-|-|-|-|
|Name of the benificiary|Amountguaranteed|Start date|Expiredon|
|The Company|108,000,000.00|2012.12.24|2015.12.24|
|The Company|79,500,000.00|2013.01.29|2016.01.29|
|The Company|50,000,000.00|2013.07.31|2016.07.31|
|Wuhan Aoming Property Development Co., Ltd.|12,000,000.00|2013.11.19|2016.11.19|
|Wuhan Aoming Property Development Co., Ltd.|14,000,000.00|2013.12.06|2016.11.19|
|Beijing Conrad Property Development Co., Ltd.|115,179,888.88|2012.05.15|2017.05.15|
|Shenzhen Shekou Sea World Hotel Management Co.,Ltd.|245,000,000.00|2013.10.22|2018.10.20|

6. Capital borrowing from related parties
|||||
|-|-|-|-|
|Input/output|Amount ofdemolition|Startdate|Expiredon|
|Lend out|912,320,960.74|2012.09|2014.09|
|Lend out|1,350.815,887.80|2013.12|2014.12|
|Lend out|673,439,850.06|2011.01|2015.12|
|Lend out|149,343,672.94|2011.09|2014.04|
|Lend out|44,812,215.00|2013.12|2014.12|
|Lend out|89,026,933.80|2013.12|2014.12|
|Lend out|62,432,109.67|2012.12|2014.12|
|Lend out|92,550,643.25|2012.12|2014.12|

7. Remunerations of key management
||
|-|
|Amount of current year|
|34,891,995.64|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Balance of related trades
(III)
1. Account receivable from related parties
||||
|-|-|-|
|Balance at end of year|||
|Bookbalance|Bad debtprovision|Bookbalance|
|5,088,000.00|||
|5,088,000.00|||

2. Other receivable accounts due from related parties
||||
|-|-|-|
|Balance at end of year|||
|Book balance|Bad debtprovision|Bookbalance|
|89,026,933.80|||
|44,812,215.00|||
|912,320,960.74||1,243,733,636.26|
|673,449,850.06||673,084,122.36|
|1,350,815,887.80|||
|||227,095,300.70|
|149,343,672.94||143,654,905.22|
|62,432,109.67||64,454,177.05|
|92,550,643.25||73,958,515.34|
|11,270,000.00|11,270,000.00||
|3,386,022,273.26|11,270,000.00|2,425,980,656.93|

3. Long-term receivable accounts due from related parties
Related party (projects) Balance at end of year Amount at the beginning of year
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|Book balance|Bad debtprovision|Book balance|
|||49,721,270.00|
|||49,721,270.00|

4. Payable accounts to related parties
||
|-|
|Balance at end of year|

 5. Other payables to related parties
||
|-|
|Balance at end ofyear|
|79,488,890.25|
|1,476,670.59|
|220,820.00|
|31,600,000.00|
|674,733,289.97|
|106,081,398.67|
|714,581,431.09|
|200,000,000.00|
|274,482.56|
|1,808,456,983.13|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
6. Long-term payable accounts to related parties
||
|-|
|Balance at end ofyear|
|1,200,000.00|
|1,200,000.00|

 7. Deposit and borrowings with related parties
||
|-|
|Balance at end of year|
|7,154,357,534.12|
|1,439,428,563.46|
|8,593,786,097.58|

 VIII. Contingency
1. Contingent liabilities incurred by unsettled lawsuits
Zhuhai Yuanfeng Property Co., Ltd.– subsidiary of the Company, was sued by some property owners. As of December 31, there was 41owners’ claim not settled yet. The Company has provided projected liability of RMB10,473,360.10 against the claimed amount. For details please see Note VI. 33. Expectable liabilities
2. Contingent liabilities incurred by providing of external
guarantees
(1) Company has provided guarantees for property mortgages to the banks totaled to RMB789,375,735.34 (December 31, 2012: RMB215,223,740.68). This issue makes no material influence on the financial situations of the report term and the period after the report term.
(2) The Company accepted joint liabilities on the guarantees provided to China Merchants Guangming Technology Park Co., Ltd. in 2013 basing upon the shares in it, namely the contingentliability was RMB64,360,520.00. The guarantee will due at the end of 2nd year since the 2nd day of expiration of loan term under this contract. This issue makes no material
influence on the financial situations of the report term and the period after the report term.
3. There was no other material contingent issues occurred
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
with the Group other than the above contingenciesas of
December 31, 2013.
IX. Commitments
1. Significant commitments
1) Leasing contracts engaged or to be executed, and their financial influences
As of December 31, 2013 (T), irrevocable leasing contracts attributable to the following periods:
Periods Leasing
T+1 year 38,503,525.04T+2 Years 41,175,188.36T+3 Years 32,854,791.22 PostT+3 years 257,206,409.98 Total 369,739,914.60 2) Other major financial commitments
||
|-|
|End of term|
|4,852,900,000.00|
|7,871,048,399.39|
|12,723,948,399.39|

2. There was no other material commitment issues occurred
with the Group other than the above as of December 31,
2013.
X. Post-balance-sheet Issues
1. Dividend or profit as proposed and approved to be
announced in post balance sheet day.
The company is planning to distribute cash dividends totaled RMB824,304,241.44 to
shareholders, and this retained earnings distribution proposal needs to be further approved
by the general meeting of shareholders. See Note VI. 33. II.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
2. Thereisn’t any other material post-balance-sheet issues
except for the above.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
XI. Segment information
1. 2013 Segment Report
||||||
|-|-|-|-|-|
|Property industry|Public services|Property management|Un-allocated segments|Neutralization|
|31,226,483,959.90|657,926,835.65|867,566,055.32||-184,162,993.35|
|31,226,483,959.90|641,537,370.95|699,792,526.67|||
||16,389,464.70|167,773,528.65||-184,162,993.35|
|23,681,081,584.84|453,704,691.25|836,631,418.73|422,617,386.74|-184,162,993.35|
|11,495,734,169.67|204,222,144.40|31,411,284.57|1,044,527,921.39|-4,848,683,426.55|
|152,835,054,956.04|5,005,432,413.45|591,926,307.10|45,342,687,132.14|-69,734,653,819.08|
|110,974,669,076.74|3,660,311,072.15|475,666,652.12|28,183,613,076.09|-48,170,980,092.21|
|367,147,647.82|11,703,391.26|2,916,838.52|193,072.52||
|674,453,381.11|21,745,961.52|3,131,501.16|1,396,410.00||

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
2. 2012 Segment Report
||||||
|-|-|-|-|-|
|Property industry|Public services|Property management|Un-allocated segments|Neutralization|
|24,037,579,089.49|695,549,258.68|751,773,736.99||-188,139,930.70|
|24,037,579,089.49|685,696,144.08|573,486,920.89|||
||9,853,114.60|178,286,816.10||-188,139,930.70|
|17,768,961,494.06|470,865,124.85|723,764,048.47|350,738,244.32|-244,770,515.89|
|7,512,562,622.62|193,402,364.30|25,923,817.50|594,625,295.99|-2,092,153,428.86|
|128,007,310,965.02|6,924,113,407.10|910,679,243.68|44,697,148,734.60|-72,004,719,039.16|
|98,904,117,630.65|5,722,945,003.04|800,013,091.49|28,080,228,478.57|-54,412,049,892.64|
|233,502,649.92|13,672,469.42|2,620,652.21|81,931.39||
|83,263,482.81|55,656,309.34|4,721,715.73|44,539.50||

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
XII. Financial Instruments and Risk Management
Main financial instruments adopted by the Group are loans, accounts receivable, accounts payable, trading financial assets and trading financial liabilities. Details of these financial instruments are available in respective Notes II herein. Risks attached to these financial instruments and the risk management policies adopted by the Group are illustrated hereafter. The executive team of the Company have been monitoring and controlling over the risk exposures to constrain them in a limited extent.
1. Target and policies of risk management
The objective of theCompany’s risk management is to achieve a balance between the risk and return, minimize the negative influence on business operations and maximize the interests of shareholders and other equity holders. With regard to this target, the basic policies of the Company are; ascertain and analyse risks, set appropriate risk-bearing bottom line, manage and monitor each categories of risks and constrain them in a certain extent.
(1) Market risks
1) Foreign exchange risks
Foreign exchange risks are those generated by fluctuation of exchange rates. Foreign exchange risks of the Company are mainly involved with Hong Kong Dollar and US Dollar. Except for some of the subsidiaries of the Company, which are doing their businesses by USD, all other main business operations of the Company are denominated in Renminbi. As of December 31, 2013, except for the following assets which are demonstrated in Hong Kong Dollar or US Dollar, all of the other assets and liabilities of the Company are demonstrated in RMB. Foreign exchange risks brought by these assets and liabilities in foreign currencies may influence theCompany’s business performance.
||
|-|
|Dec 31 2013|
|528,895,024.50|
|620,901,559.62|
|10,958.00|
|88,257,999.81|
|850,000,000.00|
|1,237,450,000.00|
|492,713,633.98|
|2,415,293.55|
|1,960,865.48|
|8,100,183.56|
|23,496,795.19|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
The Company pays close attention on the influences of exchange rate fluctuations.
2) Interest risks
Interest risks are mostly incurred by interest fluctuations on loans borrowing. Financial liabilities with floating interests confront the Group with cash flow interest risks, whereas the financial liabilities with fixed interests confront the Group with fair value interest risks. The Group decides the proportion of contracts with fixed and floating interest rates according to the market environment. As of December 31, 2013, the liabilities with interest were mainly the RMB and HKD loan contracts with floating interest rate, which were amounted to RMB15,721,425,900 (December 31, 2012: 20,004,006,000), among which RMB and HKD were totaled to 8,176,817,000 and USD were totalled to 7,544,608,900. Meanwhile fixed RMB loan contracts amounted to RMB9,963,500,000 (December 31, 2012: 3,860,000,000).
3) Price risks
The Group was selling steel materials and products at market price, which was influenced by fluctuations of the market price.
(2) Credit risks
As at December 31, 2013, theGroup’s maximum exposure to credit risk which may cause a financial loss to the Group due to failure to discharge an obligation by the counter parties or debtors is arising from:
Book value of financial asset recognized in consolidated balance sheet; as for financial instruments measured at fair value, the book value is reflecting the exposure to risks but not necessarily the greatest exposure. The greatest exposure to risks fluctuates along with the future fair value.
In order to minimize the credit risk, the management of the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors of the Company consider that theGroup’s credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counter parties are banks with high credit ratings assigned by international credit-rating agencies.
The Company adopted necessary policies to make sure that all clients and customers are attributed with merit credit records. There are no other major clustered risks other than the top 5 receivable accounts.
Total of top 5 receivable accounts: RMB37,672,299.80.
(3) Liquidity risk
Liquidity risk refers to the possibility that the Group could not exercise its financial liabilities when mature.As for liquidity risk management, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance theCompany’s operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures the loan contracts are properly exercised. Negotiation was done with financial institutions to maintain a certain level of credit aiming to reduce liquidity risk.
The Group uses bank loans as one of the financial resources. As of December 31, 2013, there was an outstanding credit amounted to RMB23,377,559,400 (December 31, 2012: RMB7,896,764,500), and thereisn’t any short-term bank credit outstand at end of 2013 (December 31, 2012: None).
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
The due dates of undiscounted financial assets and liabilities held by the Group on retained contract liabilities are as follows:
|||||
|-|-|-|-|
|Within 1 year|1-2 yrs|2-5 yrs|Over fiveyears|
|24,240,458,796.50||||
|4,000,000.00||||
|76,864,814.81||||
|13,683,883,876.17||||
|100,000.00||||
|4,250,000,000.00||||
|27,267,637.07||||
|12,010,832,454.50||||
|9,014,047,482.53||||
|3,003,382,977.23||||
|152,361,058.07||||
|6,331,007,932.13||||
||10,581,008,100.00|6,470,909,794.42||
|102,745,035.90||||

 2. Fair value
1) Financial instruments without being measured by fair value
Financial instruments without being measured by fair value include: account receivable, short-term loans, account payable, long-term loans, bond payables, and long-term payable accounts.
Fair values of long-term loans, long-term payables, and bond payable are decided by the present value discounted against the interest rate of similar cash flow in the similar condition with comparable credit level in the market as stipulated by the contract.
2) Financial instruments measured by fair value
Financial assets and liabilities measured by fair value are mainly foreign exchange
forwardcontracts.
Estimation of fair value is a subjective judgment basedon the market information and financial
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
information at a certain time, it is not a certain recognition since there are various uncertain factors or issues involved. Change of estimation basis may influence the results.
Fair value of financial assets and financial liabilities are decided by the ways as provided hereafter:
Fair values of financial assets and financial liabilities complying with standard conditionsin active market are measured respectively with reference to the current bid and ask prices of the active market;
Fair value of other financial assets and financial liabilities ( excluding derivatives) are recognized by general pricing matrix on future discounted cash flow basis, or recognized by observable current market prices;
Fair values of derivatives are determined by the public offer price in the active market.
If a fair value is determined fully or partially with evaluations, whereas these evaluation schemes are not taking accessible market prices and information from similar financial instruments in the open market into evaluation process, then they are greatly sensitive to evaluation assumptions, and the following shall be revealed:
Possible influences the estimation and fact may cause.
Current change of fair value indicated by the evaluation shall be accounted into current gain/loss.
Fair values of foreign exchange forwarde contracts are determined according to market quotations.
3. Sensitivity analyze
The Group evaluates the possible influences the reasonable variations may cause to the current gain/loss account orshareholders’equity, by adopting sensitivity analyze technologies. Few risk variations change individually, however the relevance amongst the variations may cause major influence on the amounts. Therefore the followings are based on the assumption that every factor change occurred independently.
(1) Foreign exchange risk
Foreign exchange risks are mainly the influences of exchange rate fluctuation on monetary assets and liabilities of the Company in foreign currency. Most of theCompany’s foreign currency loans are USD. The Company adopted foreign exchange forwardcontract to lock the forward exchange rate to avoid risks. On the other hand, for other monetary assets and liabilities in foreign currencies, the Group capitalized most of the exchange gain/loss occurred into inventory costs. Foreign currency sensibility analysis is basing on the assumption that all of the overseas operational investment hedging and cash flow hedging are highly effective.
(2) Interest risks
Interest risks are mostly the influences of interest fluctuation on the borrowing expenses. Most of the borrowing expenses have been capitalized and accounted into inventory costs, therefore fluctuation of interest rate is not making major influence on the gain/loss of current term orshareholders’ equity at the end of report term.
XIII. Other Material Issues
1. Leases
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
(1) The minimum payment amount of material operational leasing (commercial lessees)
Remained leasing period the lowest payment amount of leasing
within 1 year 38,503,525.04 1-2 years 41,175,188.36 2-3 years 32,854,791.22 Over 3 years 257,206,409.98 Total 369,739,914.60 2. Share issued for acquisition of asset and financing for supporting capital
On September 13, 2013, the Company entered the Asset Acquisition Agreement with China Merchants Shekou Industrial Zone Co., Ltd.– the holding shareholder of the Company (and the Supplementary Agreement (I) on October 8, 2013). According to the agreement, the Company was about to acquire the land using rights of Seaworld Resident Estate Phase I and the Culture& Art Center by means of issuing A shares privately. The asset value will be on the appraisal by land appraisal institute qualified for business in the whole country (originally band A level institute certified by National Department of Land Resource), and the Land Appraisal Report shall be filed and certified by National Government.
The total consideration of the above transaction was decided to be RMB4852.90 million as agreed by the Company and China Merchants Shekou Industrial Zone Co., Ltd. Supporting capital shall be raised by A shares placed privately to no-more-than 10 qualified subscribers by means of inquiry. The amount of supporting capital shall not be greater than25% of the above transaction, namely no more than RMB1,617,633,333.
The above proposal was examined and adopted at the 2nd provisionalshareholders’ meeting of 2013. On November 28, 2013, the Company received the Notice for Acceptance of Administrative Approval issued by China Securities Regulatory Commission, which means the application of the Company has been accepted by the authority. It is under processing at present. XIV. Notes to the main items of the financial statements of the parent company
1. Other account receivable
(1) Categories of other account receivable
Balance at end of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio(%)|Amount|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
Balance at end of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio(%)|Amount|
|28,619,556,967.65|100.00||
|28,619,556,967.65|100.00||
|28,619,556,967.65|100.00||

(cont.)
Amount at the beginning of year
||||
|-|-|-|
|Book balance|||
|Amount|Ratio(%)|Amount|
|29,644,653,819.13|100.00||
|29,644,653,819.13|100.00||
|29,644,653,819.13|100.00||

1) Age of other receivable accounts:
||||
|-|-|-|
|Balance at end of year|||
|Book balance|Bad debt|Book balance|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||
|-|-|-|-|-|
|Amount|Ratio (%)|provision|Amount|Ratio (%)|
|28,419,556,967.65|99.30||29,444,653,819.13|99.33|
||||200,000,000.00|0.67|
|200,000,000.00|0.70||||
|28,619,556,967.65|100.00||29,644,653,819.13|100.00|

2) Top five debtors at the year end
|||||
|-|-|-|-|
|Relation with theCompany|Amount|Age|Portion in total otherreceivable accounts (%)|
|Subsidiaries|3,422,601,874.02|within 1year|11.96|
|Subsidiaries|1,849,816,629.36|within 1year|6.46|
|Subsidiaries|1,445,425,293.00|within 1year|5.05|
|Subsidiaries|1,399,375,233.35|within 1year|4.89|
|Affiliates|1,380,839,846.60|within 1year|4.82|
||9,498,058,876.33||33.18|

(2) Receivable from related parties
|||
|-|-|
|RelationwiththeCompany|Amount|
|Subsidiaries|3,422,601,874.02|
|Subsidiaries|1,849,816,629.36|
|Subsidiaries|1,445,425,293.00|
|Subsidiaries|1,399,375,233.35|
|Affiliates|1,380,839,846.60|
|Subsidiaries|1,256,384,540.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|RelationwiththeCompany|Amount|
|Subsidiaries|1,240,221,775.31|
|Subsidiaries|935,212,718.04|
|Subsidiaries|919,437,244.93|
|Jointventures|912,320,960.74|
|Subsidiaries|853,722,320.04|
|Subsidiaries|828,320,200.00|
|Subsidiaries|749,013,758.50|
|Subsidiaries|691,237,397.12|
|Subsidiaries|599,958,254.07|
|Subsidiaries|599,537,329.27|
|Subsidiaries|568,566,350.17|
|Subsidiaries|567,668,700.00|
|Subsidiaries|517,111,171.67|
|Subsidiaries|502,069,363.50|
|Subsidiaries|412,500,000.00|
|Subsidiaries|397,936,721.29|
|Subsidiaries|348,927,401.64|
|Subsidiaries|338,643,700.00|
|Subsidiaries|322,171,971.82|
|Subsidiaries|306,572,991.00|
|Subsidiaries|240,711,469.20|
|Subsidiaries|237,344,645.20|
|Subsidiaries|225,225,471.43|
|Subsidiaries|211,652,655.84|
|Subsidiaries|200,000,000.00|
|Subsidiaries|192,869,920.60|
|Subsidiaries|181,122,100.00|
|Subsidiaries|151,500,000.00|
|Affiliates|149,343,672.94|
|Subsidiaries|138,615,612.00|
|Subsidiaries|109,644,121.83|
|Subsidiaries|86,170,282.97|
|Subsidiaries|50,000,000.00|
|Subsidiaries|46,129,462.69|
|Subsidiaries|37,941,090.55|
|Subsidiaries|27,894,139.45|
|Subsidiaries|18,111,881.64|
|Subsidiaries|12,823,666.67|
|Subsidiaries|85,210.00|
|Subsidiaries|59,230.40|
|Joint|10,000.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|RelationwiththeCompany|Amount|
|ventures||
|Subsidiaries|10,000.00|
||25,682,858,378.85|

 2. Long-term share equity investment
(1) Long-term equity investment category
||
|-|
|Balance at end of year|
|9,034,158,112.93|
|192,881,702.26|
|9,227,039,815.19|
|9,227,039,815.19|

(2) Long-term equity investment on cost basis and equity basis
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||
|-|-|-|-|-|-|-|
|ShareholdingRatio (%)|Voting rights (%)|Investment cost|Year beginAmount|Current yearAdditions|Current year减少|Year endAmount|
|100.00|100.00|3,000,000,000.00|851,473,965.31|2,700,000,000.00||3,551,473,965.31|
|95.00|95.00|57,000,000.00|119,791,232.79|||119,791,232.79|
|90.00|90.00|22,500,000.00|36,460,596.83|||36,460,596.83|
|60.00|60.00|25,000,000.00|20,822,211.48|||20,822,211.48|
|99.00|99.00|19,919,300.00|1,301,324,500.00|||1,301,324,500.00|
|90.00|90.00|27,000,000.00|18,000,000.00|9,000,000.00||27,000,000.00|
|90.00|90.00|27,000,000.00|27,000,000.00|||27,000,000.00|
|90.00|90.00|27,000,000.00|27,000,000.00|||27,000,000.00|
|49.00|49.00|14,700,000.00|14,700,000.00|||14,700,000.00|
|60.00|60.00|18,000,000.00|18,000,000.00|||18,000,000.00|
|60.00|60.00|120,000,000.00|120,000,000.00|||120,000,000.00|
|51.00|51.00|127,500,000.00|229,500,000.00|||229,500,000.00|
|100.00|100.00|30,000,000.00|30,000,000.00|||30,000,000.00|
|100.00|100.00|50,000,000.00|50,000,000.00|||50,000,000.00|
|100.00|100.00|10,000,000.00|10,000,000.00|||10,000,000.00|
|100.00|100.00|50,000,000.00|50,000,000.00|||50,000,000.00|
|50.00|50.00|25,000,000.00|25,000,000.00|||25,000,000.00|
|100.00|100.00|30,000,000.00|30,000,000.00|||30,000,000.00|
|100.00|100.00|50,000,000.00|50,000,000.00||50,000,000.00||

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||
|-|-|-|-|-|-|-|
|ShareholdingRatio (%)|Voting rights (%)|Investment cost|Year beginAmount|Current yearAdditions|Current year减少|Year endAmount|
|1.00|1.00|7,586,275.00|6,045,000.00|1,541,275.00||7,586,275.00|
|51.00|51.00|183,731,836.00|183,731,836.00|||183,731,836.00|
|100.00|100.00|30,000,000.00|30,000,000.00|||30,000,000.00|
|100.00|100.00|1,883,367,495.52|1,883,367,495.52|||1,883,367,495.52|
|50.00|50.00|80,250,000.00|80,250,000.00|||80,250,000.00|
|100.00|100.00|30,000,000.00|30,000,000.00|||30,000,000.00|
|60.00|60.00|240,000,000.00|240,000,000.00|||240,000,000.00|
|20.00|20.00|400,000.00|400,000.00|||400,000.00|
|10.00|10.00|3,000,000.00|3,000,000.00|||3,000,000.00|
|10.00|10.00|3,000,000.00|3,000,000.00|||3,000,000.00|
|60.00|60.00|30,000,000.00||30,000,000.00||30,000,000.00|
|100.00|100.00|14,000,000.00||14,000,000.00||14,000,000.00|
|100.00|100.00|300,550,000.00||300,550,000.00||300,550,000.00|
|51.00|51.00|10,200,000.00||10,200,000.00||10,200,000.00|
|100.00|100.00|500,000,000.00||500,000,000.00||500,000,000.00|
|100.00|100.00|30,000,000.00||30,000,000.00||30,000,000.00|
|||7,026,704,906.52|5,488,866,837.93|3,595,291,275.00|50,000,000.00|9,034,158,112.93|
|49.00|49.00|196,000,000.00|168,472,474.97||4,615,919.52|163,856,555.45|
|34.00|34.00|30,000,000.00||30,000,000.00|974,853.19|29,025,146.81|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||||||
|-|-|-|-|-|-|-|
|ShareholdingRatio (%)|Voting rights (%)|Investment cost|Year beginAmount|Current yearAdditions|Current year减少|Year endAmount|
|||226,000,000.00|168,472,474.97|30,000,000.00|5,590,772.71|192,881,702.26|
|||7,252,704,906.52|5,657,339,312.90|3,625,291,275.00|55,590,772.71|9,227,039,815.19|

(3) Investment in affiliates
|||||||
|-|-|-|-|-|-|
|ShareholdingRatio (%)|Voting rights(%)|Total asset at end ofyear|Total liability at end ofyear|Total net asset at end ofyear|Total ofturnover|
|49.00|49.00|645,688,163.78|311,287,030.18|334,401,133.60|28,774,814.00|
|100.00|34.00|1,380,798,554.96|1,353,665,770.23|27,132,784.73||
|||2,026,486,718.74|1,664,952,800.41|361,533,918.33|28,774,814.00|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
3. Operational turnover and costs
||
|-|
|Amount of current year|
|24,520,000.00|
|24,520,000.00|
|2,540,090.96|
|2,540,090.96|

 (1) Main business– on industrial segments
||||
|-|-|-|
|Amount of current year|||
|Turnover|Operation cost|Turnover|
|24,520,000.00|2,540,090.96|31,630,000.00|
|24,520,000.00|2,540,090.96|31,630,000.00|

 (2) Turnover from top 5 clients
||
|-|
|Turnover|
|24,520,000.00|
|24,520,000.00|

 4. Investment income
(1) Sources of investment gains
||
|-|
|Amount of current year|
|1,460,921,420.84|
|-5,590,772.71|
|1,455,330,648.13|

(2) Long-term equity investment gains on cost basis
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Amount of currentyear|Amount of LastYear|
|1,460,921,420.84|950,628,048.31|
|630,000,000.00||
|500,000,000.00|400,000,000.00|
||202,158,695.38|
|166,213,570.06|97,005,077.73|
||140,000,000.00|
|164,740,886.88|111,464,275.20|
|-33,036.10||

(3) Long-term equity investment gains on equity basis
|||
|-|-|
|Amount of currentyear|Amount of LastYear|
|-5,590,772.71|-5,934,878.05|
|-4,615,919.52|-5,934,878.05|
|-974,853.19||

5. Supplementary information for cash flow statements of the parent company
||
|-|
|Amount of currentyear|
|1,057,343,950.92|
|193,072.52|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||
|-|
|Amount of currentyear|
|924,508,951.14|
|-1,455,330,648.13|
|1,224,000,000.00|
|1,063,089,191.48|
|1,702,024,878.73|
|4,515,829,396.66|
|6,296,121,745.68|
|5,277,807,877.29|
|1,018,313,868.39|

 XV. Approval of the Financial Statements
This Financial Report was approved to be issued by the Board of Directors on March 14, 2014.
Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
XVI. Supplementary Information of the Financial Statements
1. Non-recurring income statement of the year
According to “PLC Information DisclosureQ&A No.1– Non-recurring gain/loss (revised 2008)”, the non-recurring gain/loss of the Company in 2013 is as the followings:
|||
|-|-|
|Amount ofcurrent year|Amount ofLast Year|
|256,255,563.72|-1,407,797.62|
|33,800,048.66|16,352,111.12|
|11,630,003.67||
|-3,883,513.02|-49,804,571.52|
|297,802,103.03|-34,860,258.02|
|-7,253,985.40|2,766,668.96|
|-11,574,272.10|2,887,287.63|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
|||
|-|-|
|Amount ofcurrent year|Amount ofLast Year|
|278,973,845.53|-29,206,301.43|

Note I: Gain/loss from disposal of non-current assetsincludeRMB339,878,500.00 gains from disposal of equities of Shenzhen CM OCT Investment Co., Ltd. Other gain/loss from non-current assets is due to the revision of equity disposal gains by Shenzhen CM OCT Investment Co., Ltd, which is determined according to the actual acreage during April to December.See “Note V, II , 2 Entities eliminated from the consolidated balance sheet during current year”for more detailed information.
Note II: See “Note V, III, 1Subsidiaries procured through merger of entities under non-uniform control”.
2. Return on equity and earnings per share
This calculation formulas of return on equity, basic earnings per share, and diluted earnings per share adopted by the Group for year 2013 are according to “Information Disclosure Rules of PLC No.09– calculating and disclosing of net income on asset and earnings per share” (Revised 2010) issued by China Securities Regulatory Commission.
|||
|-|-|
|weightedaveragereturn onequity (%)||
||Basic earningsper share|
|16.73|2.4470|
|15.62|2.2857|

3. Irregular condition and reasons for main items changes in the financial statements
1) Items in consolidated balance sheet which have changed relatively significant from the beginning to the end of year
||||
|-|-|-|
|Balance at end of year|Amount at the beginning ofyear|Scale ofchange（%）|
|24,240,458,796.50|18,239,272,247.93|32.90|
|76,864,814.81|162,099,162.73|-52.58|
|2,815,967,507.79|8,287,184.01|33,879.79|
|78,476,507,470.78|73,637,940,073.11|6.57|
|13,683,883,876.17|8,183,491,572.92|67.21|
|1,653,193,617.06|1,083,249,770.92|52.61|

Notes to Financial Statements - China Merchants Property Development Co., Ltd.
January 1 to December 31, 2013
(In RMB except for otherwise stated)
||||
|-|-|-|
|Balance at end of year|Amount at the beginning ofyear|Scale ofchange（%）|
|5,661,844,333.88|3,117,335,984.24|81.62|
|2,038,420,991.55|435,194,977.76|368.39|
|542,448,651.42|||
|4,250,000,000.00|2,105,000,000.00|101.90|
|17,051,917,894.42|14,378,013,872.78|18.60|
|37,517,671,641.79|28,463,966,430.34|31.81|
|3,560,491,070.18|4,256,735,641.00|-16.36|
|120,927,194.29|290,165,059.98|-58.32|
|3,003,382,977.23|||
|108,596,697.05|||

2) Items in consolidated income statement which have changed relatively significant over the previous year
||||
|-|-|-|
|Amount of currentyear|Amount of LastYear|Scale ofchange %|
|32,567,813,857.52|25,296,762,154.46|28.74|
|19,045,102,287.65|12,945,037,612.58|47.12|
|614,458,390.98|394,147,542.48|55.90|
|-353,766,988.42|288,460,193.61|-222.64|
|569,270,324.16|5,572,506.29|10,115.70|
|69,414,481.75|24,841,162.92|179.43|

China Merchants Property Development Co., Ltd.
March 18, 2014