Semi-Annual Report 2014
AnnouncementNo.:【CMPD】2014-046
Important Notice
Board of Directors, Supervisory Committee of China Merchants Property Development Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby gurantee the authenticity, accuracy and integrality of the content of this report, confirm that there are no any important omissions, fictitious statements or serious misleading information carried in this report, and shall take all responsibilities, individual and/ or joint.
All directors in the Company attend the board meeting for reviewing this report.
The Semi-annual Financial Report of the Company is not audited.
Sun Chengming-Legal Representative, Wu Zhenqin-Chief Financial Officer, and Li Shifang-Manager of Accounting Department hereby confirm that the Financial Report enclosed in the Semi-annual Report is true and complete.
The company plans not to distribute cash bonus, not send bonus shares and not turn accumulation fund to increase subscribed in this report period.
This report has been prepared in Chinese and English version respectively. In the occurance of differences due to interpretations of both versions, the Chinese report shall prevail.
This report can not be regarded as commitment with respect to future plans and forwarding-looking statements, investors please be aware of the investment risk.
Content
Chapter 1. Important Notice, Content& Definitions ................................................ 1 Chapter 2. Company Profile .................................................................. 3 Chapter 3. Financial Summary ................................................................. 5 Chapter 4. Report of the Board of Directors ....................................................... 7 Chapter 5. Significant Events ................................................................. 24 Chapter 6. Changes in Share Capital and Particulars about Shareholders ................................ 35 Chapter 7. Particulars about Directors, Supervisors and Senior Executives.............................. 39 Chapter 8. Financial Report ................................................................... 42 Chapter 9. Directory of the Documents Available for Inspection ..................................... 211
Paraphrases
Unless specified in the report, the following abbreviations possess the meanings as follows:
||||
|-|-|-|
|Paraphrase item|Refers to|Paraphrase content|
|SASAC|Refers to|State-owned Assets Supervision and Administration Commission of the State Council|
|CSRC|Refers to|China Securities Regulatory Commission|
|SZSE|Refers to|Shenzhen Stock Exchange|
|The Company|Refers to|China Merchants Property Development Co., Ltd.|
|China Merchants Group|Refers to|China Merchants Group Ltd.|
|Shekou Industrial Zone|Refers to|China Merchants Shekou Industrial Zone Co., Ltd.|
|Top Chief|Refers to|Top Chief Co., Ltd.|
|Full Space Investment|Refers to|Full Space Investment Ltd.|
|Zhangzhou Development Zone|Refers to|China Merchants Zhangzhou Development Zone Co., Ltd.|
|CMPS|Refers to|Shenzhen China Merchants Power Supply Co., Ltd.|
|Zhuhai CMRE|Refers to|China Merchants (zhuhai) Real Estate Co., Ltd|
|Wuhan CMRE|Refers to|China Merchants (Wuhan) Real Estate Co., Ltd|
|Shenzhen CMRE|Refers to|Shenzhen China Merchants Real Estate Co., Ltd.|
|Beijing CMRE|Refers to|China Merchants (Beijing) Real Estate Co., Ltd.|
|Nanjing CMRE|Refers to|China Merchants (Nanjing) Real Estate Co., Ltd.|
|Zhangzhou CMRE|Refers to|China Merchants (Zhangzhou) Real Estate Co., Ltd.|
|Suzhou CMRE|Refers to|China Merchants (Suzhou) Real Estate Co., Ltd.|
|Xiamen CMRE|Refers to|China Merchants (Xiamen) Real Estate Co., Ltd.|
|Guangzhou CMRE|Refers to|China Merchants (Guangzhou) Real Estate Co., Ltd.|
|China Merchants Jia Ming|Refers to|China merchants Jia Ming (Beijing) Real Estate Development Co., Ltd.|
|Shanghai Fengyang|Refers to|Shanghai Fengyang Real Estate Co., Ltd.|
|Suzhou Shuanghu|Refers to|Suzhou Shuanghu Real Estate Co., Ltd.|
|Chongqing Merchants Land|Refers to|Chongqing Merchants Land Ltd.|
|China Merchants Overseas Chinese|Refers to|China Merchants Overseas Chinese Town Investment Co., Ltd.|
|Shenzhen Vanke BinhaiTown|Refers to|Shenzhen Vanke Binhai Real Estate Co., Ltd.|
|Zhenjiang Yingsheng|Refers to|Zhenjiang Yingsheng Real Estate Development Co., Ltd.|
|Foshan Xinjie|Refers to|Foshan Xinjie Real Estate Co., Ltd.|
|Foshan Yiyun|Refers to|Foshan Yiyun Real Estate Co., Ltd.|
|Foshan Xincheng|Refers to|Foshan Xincheng Real Estate Co., Ltd.|
|China Merchants Properties and|Refers to|Shenzhen China Merchants Properties and Investment Co., Ltd.|
|ICnhviensat mMeenrtc hants Land|Refers to|China Merchants Land Ltd.|
|Hong Kong Ruijia|Refers to|Ruijia Investment Industrial Co., Ltd.|

Chapter 2. Company Profile
(I) Profile
Legal Name of the Company:
In Chinese:招商局地产控股股份有限公司 (Abbr:招商地产)
In English: CHINA MERCHANTS PROPERTY DEVELOPMENT CO., LTD. (Abbr:CMPD)\
Legal Representative: Sun Chengming
Stock listed in: Shenzhen Stock Exchange Also listed with: Singapore Stock Exchange
Short Form of the Stock: CMPD, CMPD-B
Stock Code: 000024, 200024
II. Contact and Contact way
Secretary of the Board: Liu Ning
Address: No.3 Building, Nanhai E Cool Park, No.6 Xinghua Road, Shekou Industrial Zone, Nanshan District, Shenzhen
Post Code: 518067
Tel: 0755-26819600
Fax: 0755-26818666
E-mail:cmpdir@cmhk.com
III. Other Conditions
1. Company contact way
Registered Address: No.3 Building, Nanhai E Cool Park, No.6 Xinghua Road, Shekou Industrial Zone, Nanshan District, Shenzhen
Office Address: No.3 Building, Nanhai E Cool Park, No.6 Xinghua Road, Shekou Industrial Zone, Nanshan District, Shenzhen
Post Code: 518067
Company Web site: http://www.cmpd.cn
E-mail:cmpdir@cmhk.com
Official Micro-blog: Official Wechat:
2. Information disclosure and storage locations
Newspapers selected for Disclosing the Information of the Company: China Securities Journal, Securities Times, Shanghai Securities News and Hong Kong Commercial Daily
Official Website for Publishing Annual Report authorized by CSRC: http://www.cninfo.com.cn
Place Where the Semi-Annual Report is Prepared and Placed: Secretariat of the Board of Directors
3. Registry change
Initial registration date: September 19th, 1990
Initial registration place: Shenzhen
Registration code for corporate business code: 440301503287841
Tax Registration No.: National Tax-Shen Zi 440300618845136
Code of Organization: 61884513-6
Main business change and all previous controlling shareholder change of the Company since the listing:
The Company is a listed company taking real estate development and management as main business from 2004. Since listing, controlling shareholders have no change.
4. Other relates information
The certified public accountants hired by the Company
Name: Shinewing Certified Public Accountants Ltd.;
Office Address: 8F, Block A, Fuhua Mansion, 8 North Street of Chaoyangmen, Dongcheng District, Beijing Signature certified public accountants: Guo Jinlong, Wang Yaming
Chapter 3. Financial Summary
I Main accounting data and financial index
The Company does not make retroactive adjustment or restatement for the previous year accounting data due to accounting policy alternative, correction of accounting error, etc.
Unit: RMB
|||||
|-|-|-|-|
|Main accounting data|This report period|The same period oflast year|Increase/decrease|
|Operating income|16,047,155,730.99|16,133,568,321.26|-0.54%|
|Net profit attributable to shareholders of the listedcompany|1,785,434,748.85|2,550,631,034.51|-30.00%|
|Net profit attributable to shareholders of the listedcompany after deducting non-recurring gains andlosses|1,842,876,971.45|2,217,672,984.41|-16.90%|
|Net cash flow from operating activities|-7,332,324,397.12|-1,275,505,230.57|-474.86%|
|Basic earnings per share (RMB/share)|0.69|0.99|-30.30%|
|Diluted earnings per share (RMB/share)|0.69|0.99|-30.30%|
|Weighted return on equity (%)|6.53%|10.38%|Decreased by 3.85%|
||End of the reportperiod|End of last year|Increase/decrease|
|Total assets|140,954,002,966.06|134,040,446,989.65|5.16%|
|Net asset value attributable to shareholders of thelisted company|27,712,076,248.81|26,725,501,967.24|3.69%|

Note：In the report period, The company implemented the project to transfer capital reserve to capital stock. According to The 21th Memo of Information Disclosure–Related terms of Regular Report Disclosure from Shenzhen Stock Exchange, The company have adjusted the EPS last year in the same period, based on the adjusted capital stock. II. Influence of IAS Adjustment on Net Profit and Net Asset
Unit: RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders ofthe listed company||Net assets attributable to the shareholders ofthe listed company||
||This report period|The same period oflast year|The end of the reportperiod|The end of last year|
|By IAS|1,785,434,748.85|2,550,631,034.51|29,051,905,477.81|28,065,331,196.24|
|By Chinese AccountingStandard|1,785,434,748.85|2,550,631,034.51|27,712,076,248.81|26,725,501,967.24|
|Difference betweenhome& abroad|-|-|1,339,829,229.00|1,339,829,229.00|
|Of which: Adjustment ofgoodwill|-|-|1,339,829,229.00|1,339,829,229.00|

|||
|-|-|
|Notes|For the current year, the net profit attributable to the shareholders of listed company is the sameunder both Chinese Accounting Standard and International Accounting Standard. The main reason ofthe adjustment on the net asset attributable to shareholders of listed company according toInternational Accounting Standard was that according to the Chinese Accounting Standard andrelative regulations, the differences generated by consolidation of entities under same control shallbe adjusted into capital reserves, whereas the goodwill generated by consolidation shall be recordedindividually as assets according to the IAS.|

III. Non-recurring gain and loss items and amount
Unit: RMB
|||
|-|-|
||Amount from beginning of the year|
|Non-recurring gain and loss items||
||to the end of the report|
|Gains/losses from the disposal of non-current assets|-160,878.35|
|Government subsidies|25,262,476.52|
|Other non-operating income and expenses after deducting the above items|-11,330,134.03|
|Other gain and loss items in accordance with the definition of non-recurring|-63,138,644.29|
|gain and loss||
|Amount of influence of minority stockholder's interest|-2,141,420.73|
|Impact on income tax|-5,933,621.72|
|Total|-57,442,222.60|

 Note: The Company adopts fair value measurement for long-term equity investment after right of control of China Merchants Overseas Chinese Town Investment Co., Ltd. is changed. The stock right fair value is mainly inventory assessment appreciation, and the long-term equity investment added value RMB 63,138,644.29 yuan determined by assessment appreciation is correspondingly resold according to the ratio of inventory area actually carried forward by the Company to the inventory available area to be carried forward when the right of control is changed from January to June in 2014.
Chapter 4 Report of the Board of Directors
I. Overview
Analysis on the market situation
China’s economic growth in the first half of the year dropped compared to the same period of last year. However, it remained stable generally. The overall performance of the property industry was flat which was affected by demand overdrawing of the last year and tight credit within the year. Both the amount and price of commercial housing over the country decreased. The property market still focused on inventory in the first half of the year and the property enterprises had weak willingness to increase the investment. The development investment of property around the country from January to June was RMB 4.2019 trillion, increasing14.1% over the same period of the previous year. Growth continued to decline and the new construction area of the housing was 801.26 million square meters, decreasing16.4%.
The tightening of credit policy and the rising of financing costs is one of the crucial factors which caused the sluggish property market in the first half of the year. The risk preference of the bank has been transferred since the fourth quarter of last year, plus returned payments of sales being hindered, causing industrial funds tight as a whole. The growth of capital which was in place for the property enterprises had been declining in the first half of the year.
The differentiation trend in the industry and region is obvious when the market adjusts the price. Property enterprises cope with the industrial changes from transformation of modes, diversification, being related to finance by marriage, advancing oversea and Internet thinking. In the face of environmental change, the Company observes calmly and resolves problems positively. While maintaining financial stability and abundance of capital and meeting market challenges, it also explores actively new development opportunities.
Operation and management condition of the Company
In the face of the environmental changes, the Company focuses on marketing breakthrough by means of measures such as strengthening analysis and judgment, guidance mechanism, process optimization and standard construction. Taking the thirty anniversary of the establishment as an opportunity, the Company launched the marketing policy of “double-digit blowouts”, namely “Storm in May” and “Plant feet firmly upon the ground at thirty and thank you” to reinforce brand publicity and speed up sales accounting for the overall amount of the project. In the report period, the Company accumulatively achieved the contracted sales area of 1.2182 million square meets, down10.47% compared with the same period of the previous year; the contracted sales amount was RMB 17.9 billion, down10.35% compared with the same period of the previous year; completing90% of the corporate sale objective of RMB 20 billion in the first half of the year.
In the report period, the Company adhered to prudent attitude and decided investment by sales. In the first half of the year, newly added projects were 15 and additional project resources were 3.7021 million square meters, of which the interest area was 3.4168 million square meters. With the landing ofXi’an project, the Company achieved the strategic entry into the northwest region and the urban layout became more perfect. In the first half of the year, the new construction area was 4.19 million square meters with 0.98 million square meters of the completed area. The overall building area under construction was 10.77 million square meters as of the end of June.
Under the severe market environment, the Company made full use of the advantage of overseas financing platform, vigorously developed new financing platform, strengthened cooperation with insurance and funds institutions, raised funds through multiple channels and met the demand of business development. In the report period, the Company fully tapped the financing potential of commercial property sector and revitalized existing mature property to prepare for further capital operation in the future. The Company strictly controlled financial costs and continued to optimize the debt structure. The lending rate maintained the lower level in the industry under the condition of satisfying the demand. The synthetic fund cost of the Company in the first half of the year was5.00%. Newly added borrowing costs in the first half of the year slightly rose.
In the first half of the year, the Company accelerated the standardization of landing work, fully carried out application and promotion of standardized results of the house type, refined decoration and the displaying area and intensified the implementation of strategic purchasing through establishment of the supplier management system and the ERP business system. Application and promotion of standardization and strategic purchasing not only quickened the project turnover, but also effectively controlled the costs. In the first half of the year, the cost of construction and installation per square meter decreased by RMB 65/square meter.
In the report period, the Company launched the draft of stock option incentives, steadily promoted long-term incentives, tightly linked the benefit of staff, shareholders and the Company together, further improved the return of shareholders and supported the steady development of the Company.
In the report period, the Company vigorously promoted the collaborative development in the merchant industry and boosted the integration of industry and finance. Currently, the Company has conducted strategic corporation with China Merchants Bank in the areas of marketing channel and community finance and achieved share of partial channels, resources and clients with China Merchants Bank.
Based on the principle of growth with quality, the Company gave priority to major research, built a new strategy of transformation and upgrading and formed the resultant force of the staff by system security to achieve strategic landing. In the report period, the Company organized strategic development department, enhanced medium- and long-term industrial trend study, systematically cleaned investment strategy and gain and loss of obtaining the land, and rationally allocated corporate resources by matrix analysis of urban sustainable development to improve the benefit of investment decision of the Company. The Company further proposed an overall framework of business transformation and upgrade of “One foundation, two new roads and three fertile lands”. One foundation means that the Company sticks to selection of cities and product upgrade of residential property. The selection of cities is based on the developing potential of the city and the comprehensive ability of urban companies; two new roads mean overseas expansion and cross-border innovation of the new economy; three fertile lands refer to business of the property for healthy aged living, the characteristic industrial zone and the cruise mother port city. The company specially set up corresponding topic research teams who have completed a series of research results and persisted in the integration of theoretical research and pilot project which already has preliminary effects.
In the report period, the Company was on the list of “2014 Comprehensive Strength TOP 10 of Shanghai and Shenzhen Listed Property Companies”, “Financial Stability TOP 10”, “Wealth Creation Capacity TOP 10” and “Investment Value TOP 10” jointly evaluated by State Council Development Research Center Enterprise Institute, Institute of Property of Tsinghua University and China Index Research Institute; obtained titles of “2013 Comprehensive Annual Award of China Best Corporate Citizen” jointly selected by 21st Century Business Review and 21st Century Business Herald, “2013 Best Main Board of Blue-chip Company” selected by Sina Finance and “Chinese Blue Chip Property Enterprise” selected by Economic Observer. The performance of operation and management of the Company gained full affirmation from the outside world.
Forecast of the Company on the operation environment in the second half of the year and operation thinking of the Company
The property market continued cooling down in the first half of the year. However, the market turnover in the second half of the year is expected to rebound with the introduction and implementation of a series of relaxing policy. Overall, adjustment of this time, slightly different from the previous two times, is mainly caused by internal market factors such as the imbalance between supply and demand. Recovery of the market needs the effective release of the demand. Therefore, the recovery which determines the market is slow. However, the possibility of overall decline is also not high. Industry differentiation in the second half of the year will still continue. The market in the short-term will find the landing point in the downstream and structural development opportunities will still be brought in the medium- and long-term. The Company will closely focus on industrial change, seize the period of sales window, with production decided by sales and controlling the rhythm. Meanwhile, it will continue to quicken the adjustment of product structure, stick to financial stability, improve financing ability and advance the transforming development.
Grasping marketing will be the priority among priorities in the second half of the year. The Company will further boost innovative cooperation and strengthen rapid share and promotion around the country of innovative marketing results from various regions. Projects will flexibly adjust marketing strategies according to the market situation, accurately grasp the project sales window, actively innovate front line marketing measures, make good use of data and the Internet platform and ensure the effective sales accounting for the overall amount of the project.
In the second half of the year, the Company will fully consider the uncertainty of the market adjustment and the long-term development strategy and conduct resource development combining factors of basic urban aspects, team capability and project reserve status. In addition, the Company will also continue to exploit its advantage of financing and fully protect the demand of the funds. Step up the research of the refinancing program which is fit to the financing environment of the existing capital market, strive to improve the capital composition of the Company soon and intensity the financing capacity of the Company.
In the second half of the year, the Company will further accelerate to promote the pilot and landing of the project, cultivate capabilities and conduct fine arrangement to lay a good foundation for the transformation development of the Company, based on the overall framework of business transformation and upgrade of “One foundation, two new roads and three fertile lands”.
II. Analysis of the main business
1. Overview
In the first half of 2014, the Company realized a sum of operating income of RMB 16.047 billion, the net profit belonging to the shareholders of the listed companies was RMB 1.785 billion. In the operating income, the income from the sales of commercial housing was RMB 14.669 billion, and the settlement area was 1.0815 million square meters. Since the distribution of completion is not even for real estate projects, the completion area which was finished by the Company from January to June was 0.98 million square meters, only accounting for33.3% of the planned completion area of 2.94 million square meters for the whole year. It is expected that the number of projects which will be completed and settled in the second half of the year will be high. The income from the rental of investment property was RMB 0.455 billion, and accumulative rental area was 5.1655 million square meters; the income from the sales of power supply of the park was RMB 0.297 billion, and sales of power was 362.29 million kilowatt-hours.
2. Composition of the main business
Composition of the main business by industries
Unit: RMB 10,000
||||||||||
|-|-|-|-|-|-|-|-|-|
|By industry|Operatingincome|Operating cost|Grossinterestrate||Increase anddecrease ofoperatingincomecompared tothe sameperiod of theprevious year|Increaseanddecrease ofoperatingcostcomparedto thesameperiod ofthepreviousyear||Increase|
|||||||||and|
|||||||||decrease|
|||||||||percentage|
|||||||||of the|
|||||||||gross|
|||||||||interest|
|||||||||rate|
|||||||||compared|
|||||||||to the|
|||||||||same|
|||||||||period of|
|||||||||the|
|||||||||previous|
|||||||||year|
|Property developmentand sales|1,466,854|927,861||26%|-2%|18%|-5||
|Operation of rentalproperty|45,480|22,900||41%|23%|35%|-7||
|Power supply in thepark|29,676|23,249||21%|4%|11%|-5||
|Property management|46,365|41,795||4%|22%|24%|-1||
|Hotel management|12,600|18,133||-45%|568%|209%|172||
|Property intermediary|2,331|3,133||-65%|-35%|11%|-81||
|Others|1,410|2,036||-36%|-78%|-58%|-57||

||||||||
|-|-|-|-|-|-|-|
|||||Increase and|||
||||||Increase and|Increase and|
|||||decrease of|||
||||||decrease of|decrease of gross|
|||||operating|||
||||||operating cost|interest rate|
||Operating||Gross interest|income|||
|Area||Operating cost|||compared to the|compared to the|
||income||rate (%)|compared to the|||
||||||same period of|same period of|
|||||same period of|||
||||||the previous|the previous|
|||||the previous|||
||||||year (%)|year (%)|
|||||year (%)|||
|Circum-BohaiSea Region|94,399|41,609|44%|-75%|-72%|6|
|Yangtze RiverDelta Region|234,511|186,488|11%|-2%|0%|-3|
|Pearl River DeltaRegion|883,157|524,772|30%|1%|19%|-2|
|Other areas|392,649|286,238|18%|209%|213%|-3|

 Note: The gross interest rate in the above table was calculated by amount of operating income minus operating cost and operating tax and additions.
Changes of the main financial data compared to the same period of the previous year
||||||
|-|-|-|-|-|
||||Increase and||
|Items of assets and liabilities|June 30, 2014|December 31, 2013|decrease|Main reason for the change|
||||(±%)||
|||||Receivable payments for housing|
|Account receivable|||||
||12,620|7,686|64||
|||||sales increased|
|Prepayment||||Prepaid land payment increased|
||491,021|281,597|74||
|||||CM Shangzhi established new|
|||||company with the investment of|
|Deferred income tax asset|||||
||104,329|77,026|35||
|||||office buildings, resulting in the|
|||||increase of deferred income tax|
|||||Outstanding employees’ wage|
|Employees’ wage payable|||||
||16,122|38,589|-58||
|||||payable paid|
|||||Mainly consisting of holding|
|||||stockholder dividend payable and|
|Dividend payable|||||
||81,696|12,093|576||
|||||dividend payable to the minority|
|||||shareholders by the subsidiaries|
|||||Long term bank loans due in 1|
|Non-current liability due in 1 year|||||
||933,213|633,101|47||
|||||year increased|
|||||The pending litigation cases were|
|Estimated liabilities|0|1,047|-100|settled and returned back to|
|||||estimated liabilities|

||||||
|-|-|-|-|-|
|Other current liability||||Withholding land VAT paid|
||233,835|356,049|-34||
|Share capital||||Capital surplus converted to|
||257,595|171,730|50||
|||||capital share|
|profit and loss items|||Increase and||
||January to June|January to June|decrease|Main reason for the change|
||2014|2013|(±%)||
|Operating tax and addition||||The gross interest rate of carry-|
|||||forward items of this period was|
|||||relatively low affected by the|
||161,402|257,943|-37||
|||||carry-forward products and|
|||||regional structures and land VAT|
|||||reduced accordingly|
|||||Interest expenses and foreign|
|||||exchange losses in this period|
|Financial expenses|||||
||32,610|7,335|345||
|||||increased over the same period of|
|||||the previous year|
|Assets impairment loss||||Falling price reserves of the|
||89|-17,237|-101|inventory in the same period of|
|||||last year released|
|Investment income||||Transfer of control rights of the|
||14,332|28,218|-49|subsidiaries in the same period of|
|||||last year brought profit|
|Non-operating income||||Government subsidies increased|
||3,550|1,177|201||
|Non-operating expenses||||Increase of expenses of water|
||2,173|1,539|41||
|||||funds in the power supply service|
|Income tax expense|96,450|147,659|-35|Income tax expense decreaseswith respect to the decrease oftotal profit|
|Items of cash flow|||Increase and||
||January to June||decrease|Main reason for the change|
||of 2014||(±%)||
|Net amount of cash flow||||Increase of land payment and|
|generated by operation activities||||infrastructure construction|
|||||payment paid in this period over|
|||||the same period of the previous|
||-733,232|-127,551|475||
|||||year led to the growth rate with|
|||||cash outflow of the operation|
|||||activities more than cash inflow|
|||||of the operation activities|
|Net amount of cash flow||||Decreased cash dividend from|
||-6,568|-30,079|-78||
|generated by the investment||||the associated company and|

||||||
|-|-|-|-|-|
|activities||||increased investment expenses|
|Net amount of cash flow||||The decreased amount of loan|
|generated by the financing||||over the same period of the|
|activities|173,756|675,744|-74|previous year and the increased|
|||||amount of repayment over the|
|||||same period of the previous year|

 III. Analysis on the core competitiveness
Large merchant, big coordination
China Merchants Group consists of a batch of excellent companies, such as China Merchants International, China Merchants Shipping, China Merchants Roads, China Merchants Bank, China Merchants Securities, Shekou Industrial Zone and Direct Investment Fund Management Platform. CM Property is the flagship enterprise and the only listed company in the property sector of China Merchants Group. China Merchants Group, which is across two major areas of industry and finance, has been vigorously promoting the combination of industry and finance over the past years. It plays synergy effects and achieves leaping development by means of effective interaction between capital and industry. As for the application of the combination of industry and finance, the Company with related parties has conducted active exploration and the progress is smooth. Share of internally divided resources in the merchant system has been achieved now. In addition, China Merchants Group which has strong comprehensive strength has great influence and power around the country and the world.Its’ external cooperation resources will also bring huge business opportunities for the Company.
Abundant capital, financial stability
The Company follows ChinaMerchants’s operating style of financial stability and puts the financial risk control at the first place. The comprehensive capital cost of the Company maintains the lower level in the industry through highly effective funds management operation for years, providing sufficient lever space for expanding the scale of the Company in the future. Besides, the Company adheres to the diversification of financing and strives to optimize the capital structure, laying a strong capital base for the expansion.
Developing and investing at the same time, sales and operation regarded as equally
While pursuing appropriate growth of the sales scale, the Company carefully arranges precipitation of high-quality assets and continues to accumulate wealth to ensure the sustainable development. At present, the commercial property retained by the Company covers various types, such as office buildings, shops, apartments and plants which can not only bring steady cash outflow, but also enjoy the appreciation in asset value with the development of cities. In the past years, the Company has been enhancing the industrial and urban research and given priority to research, focusing on three major business aspects which are the property for healthy aged living, the characteristic industrial zone and the cruise mother port city, to facilitate transformation and development of the Company.
IV. Analysis on the investment condition
1. External equity investment condition
（1） External investment condition
The Company held the circulation stock of 3,646,889,329 stocks from the shareholding subsidiary China
Merchants Property (0978.HK). Apart from this, it did not hold shares from other listed companies.
（2）Condition of holding the equity of financial enterprises
Not Applicable
（3）Condition of securities investment
Not Applicable
2. Conditions of entrusted financial service, derivative investment and entrusted loan
（1）Condition of entrusted financial service
Not Applicable
（2）Derivative investment condition
Not Applicable
（3）Entrusted loan condition
The Company did not have external entrusted loan.
3． Use condition of the raised capital
As for past 5 years up till June 30, 2014, the Company have not issued shares publicly.
4. Analysis on the main subsidiaries and share participating companies
Unit: RMB 10,000
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main|||||||
|||||Registered|Gross||Operating|Operating||
|Name of the company|Corporate type|Industry|product or|||Net assets|||Net profit|
|||||capital|capital||income|profit||
||||service|||||||
|Shenzhen Vanke Binhai|Subsidiary|Propertyindustry|Commercialhousing|100,000|410,661|104,790|211,208|77,308|58,043|
|Zhuhai CMRE|Subsidiary|Propertyindustry|Commercialhousing|800|83,023|52,169|132,448|48,582|36,342|
|Xiamen CMRE|Subsidiary|Public utility|Powersupply in thepark|5,000|143,244|18,608|123,266|29,133|21,852|
|Foshan Xinjie|Subsidiary|Propertyindustry|Commercialhousing|$21,980 USD|194,384|177,349|113,763|9,585|7,198|
|Wuhan CMRE|Subsidiary|Propertyindustry|Commercialhousing|3,000|25,423|11,427|103,359|16,388|12,291|
|Foshan Yiyun|Subsidiary|Propertyindustry|Commercialhousing|3,000|336,821|9,015|103,157|18,426|13,829|
|Shenzhen CMRE|Subsidiary|Propertyindustry|Commercialhousing|300,000|2,495,204|911,000|81,862|108,894|101,568|
|Zhenjiang Yingsheng|Subsidiary|Property|Commercial|$11,800|285,444|78,274|81,849|15,318|13,062|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||industry|housing|USD||||||
|Shanghai Fengyang|Subsidiary|Propertyindustry|Commercialhousing|3,000|153,349|27,927|64,683|20,982|15,739|
|China Merchants Jia Ming|Subsidiary|Propertyindustry|Commercialhousing|35,000|287,870|238,737|54,591|30,048|21,998|
|Shuzhou Double-lake|Subsidiary|Propertyindustry|Commercialhousing|$24,400 USD|326,715|183,633|50,636|-2,200|-2,178|
|Foshan Xincheng|Subsidiary|Propertyindustry|Commercialhousing|$12,700 USD|294,304|118,756|42,229|19,988|15,074|
|China Merchants Properties andInvestment|Subsidiary|Propertyindustry|Commercialhousing|20,000|592,972|243,810|32,444|10,940|-38,235|
|CMPS|Subsidiary|Public utility|Powersupply in thepark|5,700|360,747|139,213|29,676|6,766|4,701|
|China Merchants OverseasChinese Town|Shareparticipatingcompany|Propertyindustry|Commercialhousing|100,000|173,980|51,716|126,307|48,954|36,716|

5. Conditions of the major projects invested with non-raised capital
(1) Share equity investment
In the report period, the Company had 11 new property project companies. The new investment amount was RMB 1,563.91 million and the investment condition is as follows:
Unit: RMB 10,000
||||||
|-|-|-|-|-|
||||Actual||
||Registered|Equity|||
|Name of the company||proportion of|investment|Development project|
||capital||||
|||the Company|amount||
|Wuhan CM Property Gutian Property Co., Ltd.|3,000|100%|3,000|Wuhan Jiangwan International|
|Xiamen CM Yonghuafu Property Co., Ltd|2,000|100%|2,000|Xiamen Yonghuafu|
|Foshan Yiyun Xiaode Property Co., Ltd.|$8,700 USD|100%|53,575|Foshan Yiyun Zhenyuan|
|Yantai China Merchants Property Co., Ltd.|3,000|100%|3,000|Eastern bank of Yantai ChinaMerchants|
|Changshu CM Xicheng Property Co., Ltd.|3,000|100%|16,800|Changshu CM Xicheng|
|Guangzhou Yiyun Property Co., Ltd.|1,000|100%|1,000|Guangzhou Wanbo|
|Zhuhai Yiyun Property Co., Ltd.|3,000|100%|3,000|Waterfront of Zhuhai Yiyun|
|Nanjing CM Ningsheng Property Co., Ltd.|3,000|100%|3,000|Nanjing Hyde Mansion|
|Nanjing CM Xingsheng Property Co., Ltd.|3,000|70%|2,100|Nanjing CM Yiyun County|

||||||
|-|-|-|-|-|
|Zhenjiang Torch Property Development Co., Ltd.|$2,990 USD|100%|10,470|Jurong CM International E City|
|Xi’an Mao’an Property Co., Ltd.|$9,500 USD|100%|58,446|Xi’an Yiyun Qujiang|

 1.
（2）In the report period, the accumulative investment amount of the main projects was RMB 4,392.70 million. The condition of the investment is as follows:
|||||||
|-|-|-|-|-|-|
||||Accumulative|||
|||Invested|amount of actual|||
|Name of the|Total planned|||||
|||amount in this|investment as of|Project progress|Profit of the project|
|project|investment|||||
|||period|the end of the|||
||||report period|||
|Suzhou LittleRock City|485,432|39,019|371,747|Phase 1 to 6 completed, phase 7 to 9 in the main bodyconstruction|The gross profit realized inthis period was RMB 21.05million.|
|Shenzhen YihaiCity|735,678|24,964|404,782|Zone 2 and 5 completed|The gross profit realized inthis period was RMB788.39 million.|
|ShenzhenPingshanGarden City|322,408|24,722|166,136|Main body construction|It had not been carried over.|
|GuangzhouJinshan Valley|670,181|23,232|303,548|Phase 5 and 7 in the main bodyconstruction|The gross profit realized inthis period was RMB127.47 million.|
|Beijing Park1872|448,505|22,047|371,603|Phase 1 and 2 completed, phase 3 in the main body construction|The gross profit realized inthis period was RMB106.91 million.|
|ChongqingGarden City|425,195|18,839|260,957|Phase 1 completed, phase 2and 3 in the main body construction|The gross profit realized inthis period was RMB 23.15million.|
|TianjinDiamond Hill|359,494|18,304|320,220|Phase 1 to 3 completed, phase4 and 5 in the main bodyconstruction|The gross profit realized inthis period was RMB 40.41million.|
|Changzhou Park1872|300,031|18,029|127,773|Main body construction|It had not been carried over.|
|ZhenjiangBeiguwan|621,044|17,871|482,341|Phase 1 completed, phase 2and 3 in the main bodyconstruction|The gross profit realized inthis period was RMB158.03 million.|
|Xiamen SeaMay Flower|256,949|16,980|196,173|Phase 1 completed, phase 2and 3 in the main body|The gross profit realized inthis period was RMB|

|||||||
|-|-|-|-|-|-|
|||||construction|135.04 million.|
|ChengduYonghuafu|275,371|16,930|290,214|Phase 1 to 3 completed, phase 4 and 5 in the main body construction|It had not been carried over.|
|Shanghai HaideGarden|187,254|16,182|102,854|Phase 1 completed, phase 2 inthe main body construction|The gross profit realized inthis period was RMB122.50 million.|
|TianjinBeikenshan|512,700|16,085|238,201|Main body construction|It had not been carried over.|
|GuangzhouDonghui City|289,176|14,397|193,117|Main body construction|The gross profit realized inthis period was RMB 42.99million.|
|NanjingYonghuafu|335,945|13,719|283,783|Main body construction|It had not been carried over.|
|Xiamen HaideGarden|233,354|13,305|198,992|Phase 1 completed, phase 2 inthe main body construction|It had not been carried over.|
|Wuhan MoshuiLake|923,480|13,007|578,706|Block A in the main bodyconstruction|It had not been carried over.|
|Beijing XichengHomestead andLongyuan|507,456|12,081|427,154|Phase 1 and 2 completed,phase 3 and 4 in the main bodyconstruction|The gross profit realized inthis period was RMB292.13 million.|
|ChongqingChangjiahui|1,281,749|11,081|471,952|Phase 1 and 2 in the main bodyconstruction|The gross profit realized inthis period was RMB 44.80million.|
|ZhangzhouKadakaisi|349,353|10,685|155,483|Phase 1 completed, phase 2and 3 in the main bodyconstruction|The gross profit realized inthis period was RMB 3.05million.|
|YunnanHaigongguan|320,099|9,984|53,189|Main body construction|It had not been carried over.|
|ShenzhenJingshan Jinhai|292,370|9,873|210,358|Main body construction|It had not been carried over.|
|Haerbin NottingHill|406,376|8,683|115,611|Main body construction|The gross profit realized inthis period was RMB 1.38million.|
|Qingdao LAVIECommune|140,367|8,087|92,860|Phase 1 completed, phase 2 inthe main body construction|It had not been carried over.|
|ShanghaiSheshanLongyuan|303,342|7,478|260,658|Phase 1 completed, phase 2and 3 in the main bodyconstruction|The gross profit realized inthis period was RMB -6.35million.|

|||||||
|-|-|-|-|-|-|
|SuzhouYongjingwan|215,000|7,025|188,912|Completed|The gross profit realized inthis period was RMB -51.44million.|
|Foshan EvianXicheng|146,411|6,928|134,017|Phase 2 capped, phase 3 in themain body construction|The gross profit realized inthis period was RMB 15.38million.|
|Nanjing GardenCity Center|104,931|5,419|98,445|Completed|The gross profit realized inthis period was RMB 6.95million.|
|WuhanYonghuafu|99,183|4,929|93,393|Main body construction|The gross profit realized inthis period was RMB169.37 million.|
|ChongqingJiangwan City|192,308|4,060|180,660|Completed|The gross profit realized inthis period was RMB 15.04million.|
|Foshan EvianShangcheng|188,732|3,194|189,870|Completed|The gross profit realized inthis period was RMB 94.45million.|
|Foshan EvianTianhui|238,612|2,131|217,947|Phase 1 completed, phase 2 inthe main body construction|The gross profit realized inthis period was RMB182.60 million.|

V. Estimation on the operation achievements from January to September 2014
Not Applicable
VI. Explanations of the Board of Directors and Board of Supervisors on the‘Non-standard AuditReport’ of this report period of the accounting firm
Not Applicable
VII. Explanations of the Board of Directors on the conditions related to the‘Non-standard AuditReport’ of the previous year
Not Applicable
VIII. Implementation condition of profit distribution in the report period of the Company The proposal of profit distribution in 2013 was approved at the 2013 AnnualShareholders’ Meeting held on April 14, 2014:
According to10% of the net profit of the parent company RMB 1,057,343,950.92, statutory surplus capital
reserve RMB 105,734,395.09 was withdrew;
Taking the total capital shares 1,717,300,503 shares as of year-end as the radix, cash RMB 4.80 (tax included) would be sent for each 10 shares, that was to say, RMB 824,304,241.44 cash dividend would besent；
The residual undistributed profit RMB 4,607,851,118.62 was retained to the next reportyear；
Taking the total capital shares 1,717,300,503 shares as of year-end as the radix, 5 shares would be converted by means of capital reserve for each 10 shares, with total amount of converted capital shares of RMB 858,650,251. The total capital shares increased to 2,575,950,754 shares after the conversion and the capital reserve balance was RMB 8,068,403,942.
For details, see Announcement on the Implementation of 2013 Annual Profit Distribution and Capital Reserve Converted to Capital share Scheme issued by the Company on China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily, Hong Kong Commercial Daily and http://www.cninfo.com.cn on May 30, 2014. Up till the disclosure date of this report, implementation of the above-mentioned dividend and interest distribution scheme has been completed except the cash dividend payable to the big shareholder Shekou Industrial Zone.
IX. Pre-plan of profit distribution and capital reserve converted to capital share in the report period
The Company did not conduct profit distribution and did not conduct converting capital reserve into share capital in the middle of 2014.
X. Table about investigations, communications and interviews received by the Company during the report period
|||||||
|-|-|-|-|-|-|
||||Received|||
||||||Content discussed and|
|Reception date|Reception place|Reception way||Received object||
||||object type||information provided|
|||Telephone|Institutional|||
|January 4, 2014|Shenzhen|||China Securities|①Introducing operation of|
|||communication|investor|||
||||||the Company;|
|||Telephone|Institutional|||
|January 7, 2014|Shenzhen|||Orient Securities|②Discussing the industry|
|||communication|investor|||
||||||development;|
|||Telephone|Individual|||
||||||③Introducing related matters|
|January 8, 2014|Shenzhen|||Individual Investor||
|||communication|investor||about stock ownership|
|||Telephone|Individual||incentive of the Company;|
|January 8, 2014|Shenzhen|||Individual Investor||
|||communication|investor||④Providing the information|
|January 8, 2014|Shanghai|Field|Institutional|Everbright Securities|announced and brochure for|

|||||||
|-|-|-|-|-|-|
|||investigation|investor||projects of the Company;|
|||Field|Institutional||⑤Visiting the Company|
|January 9, 2014|Shenzhen|||Runhui Investment||
|||investigation|investor||on-sale buildings, and|
||||||providing building sales|
||Suzhou,|Field|Institutional|||
|January 14, 2014||||Runhui Investment|brochure.|
||Shanghai|investigation|investor|||
||Nanjing,|Field|Institutional|||
|January 15, 2014||||William Blair, CICC||
||Suzhou|investigation|investor|||
|||Telephone|Individual|||
|January 16, 2014|Shenzhen|||Individual Investor||
|||communication|investor|||
|||Field|Institutional|||
|January 17, 2014|Shenzhen|||Harvest Fund||
|||investigation|investor|||
|||||China Asset||
|||Field|Institutional|||
|January 24, 2014|Shenzhen|||Management, Haitong||
|||investigation|investor|||
|||||Securities||
|||Telephone|Institutional|||
|January 29, 2014|Shenzhen|||Hill House Capital||
|||communication|investor|||
|||Field|Institutional|||
|February 8, 2014|Shenzhen|||Fullgoal Fund||
|||investigation|investor|||
|||||Ping An Securities, GF||
|||Telephone|Institutional|||
|February 10, 2014|Shenzhen|||Securities, BOCOM||
|||communication|investor|||
|||||Schroeder Fund||
|||||GF Securities, China||
|||Field|Institutional|Asset Management,||
|February 12, 2014|Shenzhen|||||
|||investigation|investor|Yinhua Fund, Penghua||
|||||Fund, etc.||
|||Telephone|Individual|||
|February 12, 2014|Shenzhen|||Individual Investor||
|||communication|investor|||
|||Telephone|Institutional|||
|February 12, 2014|Shenzhen|||CICC||
|||communication|investor|||
|||Telephone|Individual|||
|February 12, 2014|Shenzhen|||Individual Investor||
|||communication|investor|||
|||Telephone|Individual|||
|February 14, 2014|Shenzhen|||Individual Investor||
|||communication|investor|||
|||Telephone|Institutional|||
|February 17, 2014|Shenzhen|||Huatai Securities||
|||communication|investor|||
|||Telephone|Individual|||
|February 20, 2014|Shenzhen|||Individual Investor||
|||communication|investor|||
|||Telephone|Individual|||
|February 27, 2014|Shenzhen|||Individual Investor||
|||communication|investor|||

||||||
|-|-|-|-|-|
|||Telephone|Individual||
|March 5, 2014|Shenzhen|||Individual Investor|
|||communication|investor||
|||Telephone|Individual||
|March 13, 2014|Shenzhen|||Individual Investor|
|||communication|investor||
|||||Forty institutions such|
|||||as Guotai Junan|
|||||Securities, Citic|
|||||Securities, China|
|||Field|Institutional||
|March 17, 2014|Shenzhen|||Jianyin Investment|
|||investigation|investor||
|||||Securities, Fullgoal|
|||||Fund, Citic-prudential|
|||||Fund, Penghua Fund,|
|||||etc.|
|||||Baring Asset|
|||||Management, Norges|
|||||Bank, Capital Research|
||||Institutional|Global Investors,|
|March 24, 2014|Hong Kong|Strategic seminar|||
||||investor|Manulife, Morgan|
|||||Stanley Investment|
|||||Management Company,|
|||||Three Corner|
|||Telephone|Institutional||
|March 31, 2014|Shenzhen|||GF Securities|
|||communication|investor||
|||Telephone|Institutional||
|March 31, 2014|Shenzhen|||China Securities|
|||communication|investor||
|||Telephone|Institutional||
|March 31, 2014|Shenzhen|||Runhui Investment|
|||communication|investor||
|||Telephone|Institutional||
|April 8, 2014|Shenzhen|||Orient Securities|
|||communication|investor||
|||Telephone|Institutional|Shanxi Securities, Value|
|April 10, 2014|Shenzhen||||
|||communication|investor|Partners|
|||Telephone|Institutional||
|April 15, 2014|Shenzhen|||Value Partners|
|||communication|investor||
|||Telephone|Individual||
|April 15, 2014|Shenzhen|||Individual Investor|
|||communication|investor||
|||||Guotai Junan Securities,|
|||||China Southern Fund|
||||Institutional|Management, China|
|April 16, 2014|Dongguan|Strategic seminar|||
||||investor|Shipping Fund, First|
|||||Capital Securities,|
|||||Zhongrong Trust, etc.|

||||||
|-|-|-|-|-|
|||Telephone|Individual||
|April 18, 2014|Shenzhen|||Individual Investor|
|||communication|investor||
|||Field|Institutional||
|April 21, 2014|Shenzhen|||Fullgoal Fund|
|||investigation|investor||
|||Telephone|Institutional|Greenwoods Asset|
|April 21, 2014|Shenzhen||||
|||communication|investor|Management|
|||Field|Institutional||
|April 22, 2014|Xiamen|||Fullgoal Fund|
|||investigation|investor||
|||Telephone|Individual||
|April 21, 2014|Shenzhen|||Individual Investor|
|||communication|investor||
||||Institutional|Dongxing Securities,|
|April 25, 2014|Shenzhen|Strategic seminar|||
||||investor|Lion Fund|
|||Telephone|Institutional||
|April 29, 2014|Shenzhen|||CICC Organization|
|||communication|investor||
|||Telephone|Institutional||
|May 12, 2014|Shenzhen|||GF Securities|
|||communication|investor||
||||Institutional||
|May 13, 2014|Hangzhou|Strategic seminar||Haitong Securities|
||||investor||
||||Institutional||
|May 14, 2014|Shanghai|Strategic seminar||Orient Securities|
||||investor||
|||Field|Institutional|China Securities|
|May 16, 2014|Shenzhen||||
|||investigation|investor|Organization|
|||Field|Institutional||
|May 18, 2014|Zhenjiang|||CICC|
|||investigation|investor||
|||Telephone|Institutional||
|May 20, 2014|Shenzhen|||Everbright Securities|
|||communication|investor||
|||Telephone|Institutional||
|May 20, 2014|Shenzhen|||Ping An Securities|
|||communication|investor||
|||Telephone|Institutional|GF Securities, China|
|May 21, 2014|Shenzhen||||
|||communication|investor|Asset Management, etc.|
|||||Fullgoal Fund,|
|||Telephone|Institutional|Greenwoods Asset|
|May 21, 2014|Shenzhen||||
|||communication|investor|Management, Value|
|||||Partners|
|||||Shenyin & Wanguo|
||||Institutional|Securities, ICBC Credit|
|May 23, 2014|Xiamen|Strategic seminar|||
||||investor|Suisse, Guangzhou|
|||||Securities|
|May 26, 2014|Shenzhen|Field|Institutional|Citic Securities|

||||||
|-|-|-|-|-|
|||investigation|investor|Organization|
|||Telephone|Institutional||
|May 26, 2014|Shenzhen|||Orient Securities|
|||communication|investor||
|||Field|Institutional||
|June 3, 2014|Shenzhen|||BNP|
|||investigation|investor||
|||Telephone|Institutional||
|June 3, 2014|Shenzhen|||Runhui Investment|
|||communication|investor||
||||Institutional||
|June 5, 2014|Chengdu|Strategic seminar||Citic Securities|
||||investor||
|||Telephone|Individual||
|June 6, 2014|Shenzhen|||Individual Investor|
|||communication|investor||
|||Field|Institutional|Bosera Asset|
|June 10, 2014|Shenzhen||||
|||investigation|investor|Management|
|||Telephone|Institutional||
|June 10, 2014|Shenzhen|||GF Securities|
|||communication|investor||
|||Telephone|Individual||
|June 10, 2014|Shenzhen|||Individual Investor|
|||communication|investor||
|||Telephone|Institutional||
|June 11, 2014|Shenzhen|||Fullgoal Fund|
|||communication|investor||
|||||Essence Securities,|
|||Field|Institutional||
|June 12, 2014|Shenzhen|||Minsheng Royal Fund|
|||investigation|investor||
|||||Management|
|||||Guosen Securities,|
||||Institutional||
|June 18, 2014|Shanghai|Strategic seminar||PICC, CPIC, Runhui|
||||investor||
|||||Investment, etc.|
||||Institutional|China Merchants|
|June 19, 2014|Shenzhen|Strategic seminar|||
||||investor|Securities|
|||||Orient Securities,|
|||Telephone|Institutional||
|June 25, 2014|Shenzhen|||Everbright Securities,|
|||communication|investor||
|||||Guotai Junan Securities|

Chapter 5 Significant Events
I. Corporate governance
In accordance with requirements of the Company Law, the Securities Law and other security regulations, the Company has been perfecting corporate governance structure, establishing a sound internal control system, continuing to further carry out management activities and improving corporate administrative level. The Company and the majority of the investors have established a trusting and win-win relationship based on the good corporate governance.
In the report period, holding stockholders and actual controllers of the Company supported the Company to perfect the governance structure and improve the corporate administrative level. The holding stockholders and actual controllers of the Company always fulfill the commitments and support the healthy development of the Company.
The Company features the sound governance structure and regulated operation of general meeting of shareholders, Board of Directors and Supervisory Committee, fulfilling its authority in accordance with provisions in laws, regulations and articles of association.
The Company truthfully, accurately, completely, timely and fairly discloses information as required by information disclosure principles. On May 26, 2014, the Company has won the excellent unit for SSE information disclosure evaluation (A-level). In addition, the Company added the contents of voluntary information disclosure and disclosed sale conditions monthly on a regular basis, instead of quarterly in the report period. Meanwhile, the Company achieved the linkage of information disclosure with China Merchants Property (0978.HK) to ensure the timeliness and consistency of the information acquisition for investors in Shenzhen and Hongkong market. II. Significant lawsuits and arbitration
None
III. Media questioning
None
IV. Matters related to bankruptcy and reform
Not Applicable
V. Capital Transactions
1. Assets Acquisitions
For details, see the related transactions relating to assets acquisition and sales.
2. Assets sales
Not Applicable
3. Enterprise mergers
Not Applicable
VI. Implementation and its impact of stock option incentive of the Company
On May 20, 2014, Stock Options First-time Granted Plan (Draft) and its abstract were discussed and passed by the thirteenth meeting of the seventh Broad of Directors of the Company. The Company intended to grant the total of 16.3353 million stock options to the incentive objects, accounting for0.951% of the total capital shares issued in the period. The incentive objects (not including Independent Director) of this time were directors, senior executives, medium-level executives and key technical personnel, totaling 149 people. The term of validity of the granted stock options was 7 years. Starting from the granted day and after three years of the restricted period of exercising, 1/3 exercising of the overall stock options would be granted to each period with 3 in total according to the plan when the conditions of exercising were met. The exercise price was RMB 17.34. From the granted day of stock options, it is necessary to adjust the stock option and exercising price if the Company experienced the matters of capital reserve conversion, distribution of stock dividends, stock split, stock drawing back, rationed stocks or increased issues before exercising. The incentive plan for the share equity of the Company still needs to be examined and approved by State-owned Assets Supervision and Administration Commission of the State Council and China Securities Regulatory Commission. It could then only come into force after being submitted to the general meeting of shareholders for examination and approval.
For details, see Stock Options First-time Granted Plan (Draft) issued by the Company on China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily, Hong Kong Commercial Daily and http://www.cninfo.com.cn on May 21, 2014.
VII. Major affiliated transactions
1. Affiliated transactions related to daily operation
In the report period, the Company and Shekou Industrial Zone and its affiliated parties had the following rental transactions:
The Company and part of the subsidiaries in Shenzhen rented the land-use right of business premises to the Shekou Industrial Zone. The overall rental fee in the report period was RMB 7.23 million; China Merchants Shangzhi, the wholly owned subsidiary of the Company, rented the land-use right and the buildings on the land where the building 1, 3, 5 and the property company of the building 2 and 6 were, located in the Shenzhen Shekou Huajian Block owned by Shekou Industrial Zone. The overall rental fee of the period was RMB10.65 million; the affiliated companies, such as Shekou Industrial Zone, rented letting property of the New Era Square, the Merchant Building, etc. The overall rental fee of the report period was RMB 11.95 million.
The above transactions belonged to daily operational activities of the Company. The Company had informed the independent directors before the occurrence of the transactions. After examination and approval, the independent directors considered that the pricing standard of the transaction matched the marketing price, with reasonable fairness for the transaction and satisfying the benefits of the Company and all shareholders.
2. Affiliated transactions related to purchasing assets and assets disposal
In 2013, the second provisional general meeting of shareholders of the Company passed relevant bills of the About Affiliated Transaction of Purchasing Assets by Issuance of Shares and Raise Matching Funds. The Company planned to use additional released shares of A share to purchase houses at Sea World in the Shekou Industrial Zone and the land-use right of the Culture and Art Center. The total price of the land-use right was RMB 4.853 billion in accordance with the Asset Purchase Agreement which was signed by the Company and the Shekou Industrial Zone and the completion status (whether the issuance is successful or not) of additional released shares for raising funds will not affect the implementation of the transaction behavior for purchasing assets.
In 2014, the fourth provisional meeting of the Board of Directors of the Company decided to terminate the
additional release of this time. The Company would pay the price of the land-use right to the Shekou Industrial Zone by cash, among which RMB 1.4 billion was paid by the Company in June 2014.
3. Major affiliated transactions on common external investment
In the report period, the Company and the Shekou Industrial Zone jointly contributed to establish Station Fortune Ltd. and Chief Master Ltd., holding49% and51% of the equity respectively, used as obtaining development projects in the park in Qingdao. Station Fortune Ltd. set up Powerwise International Ltd. with the total asset. The registration capital was$ 149 million. The Company and Shekou Industrial Zone invested in Powerwise International Ltd. according to the shareholding proportion to Station Fortune Ltd. The investment from the Company to Powerwise International Ltd. was$ 73.01 million.
Chief Master Ltd set up Blue Cove International Ltd. with the total asset. The registration capital was$ 75 million. The Company and the Shekou Industrial Zone invested in Blue Cove International Ltd. according to the shareholding proportion to Chief Master Ltd. The investment from the Company to Blue Cove International Ltd. was$ 36.75 million. The above overall investment from the Company was$ 109,760,098.
The company has disclosed the transaction in the huge tide network on March 12, 2014.
4. Dealing of thecreditor’s rights and debts of the related parties
As of June 30, 2014, the dealing money of the Company with the related parties mainly includes:
(Unit: RMB 10,000)
|||||||||
|-|-|-|-|-|-|-|-|
|Related party|Associationrelation|Type ofcreditor’ sright anddebt|Cause|If there isnon-operatingcapitaloccupation ornot|Balance atthebeginning ofthe period|Amount inthis period|Amount atthe end ofthe period|
|Beijing GuangyingProperty DevelopmentCo., Ltd.|Jointventure|Otherreceivables|Advance oftheshareholder|No|91,232.10|-8,902.45|82,329.65|
|Ningbo JiangwanProperty DevelopmentCo., Ltd.|Jointventure|Otherreceivables|Advance oftheshareholder|No|135,081.59|-21,525.98|113,555.61|
|Foshan China MerchantsLongyuan Property Co.,Ltd.|Jointventure|Otherreceivables|Advance oftheshareholder|No|67,344.99|24.31|67,369.30|
|Shanghai New NanshanProperty DevelopmentCo., Ltd.|Associatedcompany|Otherreceivables|Advance oftheshareholder|No|14,934.37|-6,432.24|8,502.13|
|Jones Tech Limited|Associatedenterprise|Otherreceivables|Investmentpendingtransfer|No|6,243.21|-6,243.21|-|
|Powerwise InternationalLtd|Same finalcontroller|Otherreceivables|Investmentpendingtransfer|No|8,902.69|-8,902.69|-|
|Holly Profit Limited|Associatedenterprise|Other|Investment|No|9,255.06|-9,255.06|-|

receivables pending
transfer
|||||||||
|-|-|-|-|-|-|-|-|
|Blue Cove InternationalLtd|Same finalcontroller|Otherreceivables|Investmentpendingtransfer|No|4,481.22|-4,481.22|-|
|Shekou Industrial Zone|Shareholder|Otherreceivables|Dealingmoney|No|4,002.48|-4,002.48|-|
|Shekou Industrial Zone|Shareholder|Accountspayable|Dealingmoney|No|-|345,290.00|345,290.00|
|Shekou Industrial Zone|Shareholder|Otherreceivables|Dealingmoney|No|7,948.89|-7,948.89|-|
|China Merchants Group(Hong Kong) Co., Ltd.|Finalcontroller|Otherreceivables|Dealingmoney|No|-|85.72|85.72|
|China MerchantsGuangming Science andTechnology Park Co.,Ltd.|Jointventure|Otherreceivables|Dealingmoney|No|147.67|-146.95|0.72|
|Shanghai Ledu PropertyCo., Ltd.|Associatedcompany|Otherreceivables|Dealingmoney|No|-|25,101.28|25,101.28|
|Shanghai New NanshanProperty DevelopmentCo., Ltd.|Associatedcompany|Otherreceivables|Dealingmoney|No|3,160.00|3,286.87|6,446.87|
|China MerchantsOverseas Chinese City|Associatedcompany|Otherreceivables|Dealingmoney|No|67,473.33|-59,506.29|7,967.04|
|Tianjin Xinghai PropertyDevelopment Co., Ltd.|Associatedcompany|Otherreceivables|Dealingmoney|No|10,608.14|-|10,608.14|
|Tianjin Mu Nan Qiu ShiIndustrial Co. Ltd.|Associatedcompany|Otherreceivables|Dealingmoney|No|-|1,700.00|1,700.00|
|Shenzhen ChinaMerchants FinancingService Co., Ltd.|Same finalcontroller|Otherreceivables|Dealingmoney|No|71,458.14|6,003.16|77,461.30|
|ZhangzhouDevelopment Zone|Same finalcontroller|Otherreceivables|Dealingmoney|No|20,000.00|-|20,000.00|
|Top Chief.|Same finalcontroller|Otherreceivables|Dealingmoney|No|-|13,272.02|13,272.02|
|Shekou Industrial Zone|Same finalcontroller|Dividendspayable|Dealingmoney|No|-|33,284.13|33,284.13|

VIII Non-operating Cash Occupied by Controlling Shareholders and Their Related Parties of Public Companies
Unit: RMB 10,000
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Shareholder orrelated party|OccupancyTime|Cause|Period-beginningamount|Additionaloccupiedamount ofreportingperiod|Totalrepaymentof thisreportingperiod|Period-endamount|Anticipatedrepaymentapproach|Anticipatedrepaymentamount|Due Date(Month)|
|Jones TechLimited|December,2012-January,2014|Shift ininvestment|6,243|-|6,243|-|Shift ininvestment||NotApplicable|
|Holly ProfitLimited|December,2012-January,2014|Shift ininvestment|9,255|-|9,255|-|Shift ininvestment||NotApplicable|
|Blue CoveInternationalLtd|December,2012-January,2014|Shift ininvestment|4,481|-|4,481|-|Shift ininvestment||NotApplicable|
|PowerwiseInternationalLtd|December,2012-January,2014|Shift ininvestment|8,903|-|8,903|-|Shift ininvestment||NotApplicable|
|Total|||28,882|-|28,882|-||||

IX. Major Contracts and Their Performance
1. Hosting, Contracting and Leasing Items
The Company has no major events hosting, contracting or leasing assets of other companies within the reporting period.
2. Guarantee
Unit: RMB 10, 000
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Company’s guarantee (excluding subsidiary guarantees)||||||||||||
|Name||Related|Guaranteeamount|Actual date(Date ofagreementsigning)|Actualguaranteeamount|Guaranteetype|Guaranteeterm||Completedor not||Guaranteed|
|||announcement|||||||||for|
|||disclosure date|||||||||associated|
|||for guarantee|||||||||party or|
|||amount|||||||||not|
|The owner whopurchases ahouse onmortgage|No||200,242.16|From the daywhen themortgage bankmakes the loan|200,242.16|Phasedsuccessiveguarantee||From the day|No|No||
|||||||||when the||||
|||||||||mortgage||||
|||||||||bank makes||||
|||||||||the loan to the||||
|||||||||day when the||||
|||||||||mortgage||||
|||||||||bank||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||completes|||
||||||||handling of|||
||||||||the Property|||
||||||||Certificate for|||
||||||||the housing|||
||||||||purchaser|||
|ChinaMerchantsGuangmingScience ParkCo., Ltd.|November 3,2011|14,700.00|March 15,2012|1,336.62|S u c c e s si v eguarantee|Two yearssince the nextday ofexpiration ofloan termunder the loancontract||No|Yes|
||March 20,2012|19,110.00|May 18, 2012|6,575.31||Two yearssince the nextday ofexpiration ofloan termunder the loancontract||No|Yes|
||March 18,2014|4,900.00|June 12, 2014|343.00||Two yearssince the nextday ofexpiration ofloan termunder the loancontract||No|Yes|
|BeijingKangladePropertyDevelopmentCo., Ltd.|May 15, 2012|30,000.00|May 15, 2012|22,386.00|S u c c e s si v eguarantee|Two yearssince the nextday ofexpiration ofloan termunder the loancontract||No|Yes|

||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Successiveguarantee||No|Yes|
|Shenzhen CMBusinessDevelopmentCo., Ltd.|June 4, 2013|7,140.00|April 25, 2013|6,630.00|S u c c e s si v eguarantee|Two yearssince the dayof expirationof thee x ecutionterm ofliabilitiesunder the loancontract|No|Yes|
|ShenzhenVanke BinhaiProperty Co.,Ltd.|December 26,2013|40,000.00|D ec e m b e r 6 ,2013|15,000.00|S u c c e s si v eguarantee|Two yearssince theeffective dayof theguaranteecontract to theday ofexpiration ofthe executionterm ofliabilitiesunder themain contract|No|Yes|
|Foshan EvianProperty Co.,Ltd.|March 5, 2014|55,000.00|May 29, 2013|55,000.00|S u c c e s si v eguarantee|Plus anothertwo yearsafter from theeffective dayof theguaranteecontract to theexpiration ofthe maincreditor’s|No|Yes|

||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||rights term|||
|ChinaMerchantsPropertyDevelopment(Nanjing) Co.,Ltd.|March 5, 2014|60,000.00|A u g u s t 2 6 ,2013|60,000.00|S u c c e s si v eguarantee|Two yearssince theeffective dayof theguaranteec o ntract to theday ofexpiration ofthe executionterm of allguaranteedliabilities|No|Yes|
|Nanjing CMRuishengProperty Co.,Ltd.|March 5, 2014|17,000.00|Ja n u a r y 2 7 ,2014|16,900.00|S u c c e s si v eguarantee|Two yearssince theeffective dayof theguaranteec o ntract to theday ofexpiration ofthe executionterm of allguaranteedliabilities|No|Yes|
|Nanjing CMRuishengProperty Co.,Ltd.|March 5, 2014|58,000.00|January 27,2014|57,900.00|S u c c e s si v eguarantee|Two yearssince the dayof expirationof theexecutionterm ofliabilitiesunder the loancontract|No|Yes|
|GuangzhouCM PropertyCo., Ltd.|June 25, 2014|40,000.00|April 23, 2014|39,600.00|S u c c e s si v eguarantee||No|Yes|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||the executionterm of loan,advance andotherliabilities||||
|Foshan CMXinchengHi-Tech Co.,Ltd.|June 25, 2014||12,000.00|April 30, 2014|12,000.00|S u c c e s si v eguarantee|Plus anothertwo yearsafter from theeffective dayof theguaranteecontract to theday ofexpiration ofeach loanunder theCreditAgreement|No|Yes||
|Shenzhen JinyuRongtaiInvestmentDevelopmentCo., Ltd.|June 25, 2014||25,000.00|June 27, 2014|7,500.00|S u c c e s si v eguarantee|Two yearssince the nextday ofexpiration ofloan termunder the loancontract|No|Yes||
|Guarantees to subsidiary from the Company|||||||||||
|Name||Related|Guaranteeamount|Actual date(Date ofagreementsigning)|Actualguaranteeamount|Guaranteetype|Guaranteeterm|Completedor not||Guaranteed|
|||announcement||||||||for|
|||disclosure date||||||||associated|
|||for guarantee||||||||party or|
|||amount||||||||not|
|ShenzhenChinaMerchants RealEstate Co., Ltd.|March 20,2013||30,000.00|May 11, 2012|24,990.00|S u c c e s si v eguarantee|Thirty dayssince the dayof expirationof theexecutionterm ofliabilitiesunder the loancontract|No|Yes||
|ShenzhenChina|March 19,2012||$ 3000(amounted|June 11, 2013|$ 3000(amounted to|Successiveguarantee||No|Yes||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||day ofe x p ir a tion ofloan termunder the loancontract|||
|Qingdao HaidePropertyDevelopmentCo., Ltd.||March 18,2014|5,100.00|April 29, 2014|1,530.00|S u c c e s si v eguarantee|Two yearssince thesigning day ofthe loancontract to theday ofexpiration ofthe executionterm ofliabilities bythe debtorunder the loancontract|No|Yes|
|Shenzhen CMConstructionCo., Ltd.||July 1, 2014|60,000.00|June 5, 2014|60,000.00|S u c c e s si v eguarantee|Two yearssince the dayof expirationof theexecutionterm ofliabilitiesagreed by themain contract|No|Yes|
||Total guarantee of the Company was RMB 6,313.81 million.|||||||||

The Company did not have illegal guarantee.
3. Other major contracts
In the report period, the Company has successively signed the loan contract with Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, and China Merchants Bank and other financial institutions; Up till the end of the report period, the total credit limit of the contracts amounted to RMB 60.2 billion.
4. Other major transactions
Not Applicable
X. Committed items of the Company or shareholders with over5% of shares in the period or as to the period arising in the previous period
|||||||
|-|-|-|-|-|-|
|CommittedItem|Commitment party|Commitment content|Commitmenttime|Commitment term|Performance|
|Stockownershipreformcommitment||||||
|||Premium assets including land will be injected to support||||
||||December 9,|||
|||the development of the Company after the stock ownership||||
||||2005|||
|||splitting reform.||Two years||
|||||after the date||
|Othercommitments to smallandmiddle-sizedshareholders||Shall not, directly or indirectly, engage in or develop any|||The|
|||||that any||
|||business or project the same or similar with those in the|||commitment|
|||||shareholder||
||Shekou|operation scope of the Company; nor develop, establish,|||is strictly|
|||||does not||
||Industrial|develop, participate in, or assist with any enterprises to|||performed|
|||||hold all the||
||Zone|compete with the Company for Shekou Industrial Zone and|||within the|
|||||shares of the||
|||its related parties or on the behalf of any third parties; nor|March 19, 2008||reporting|
|||||Company||
|||make use of the information obtained from the Company to,|||period|
|||||any more||
|||directly or indirectly, engage in or participate in any||||
|||competitive activities with the Company, nor conduct any||||
|||other competitive actions that may cause damages to the||||
|||interests of the Company.||||

XI． Employment or dismissal of the accounting firm
The Semi-annual Financial Report of the Company is not audited.
On April 14, 2014, the Company has approved to employ the Shinewing Certified Public Accountants as the external auditor of 2014 at the 2013 annual general meeting of shareholders.
XII. Condition of punishment and rectification
Not Applicable.
XIII. Explanations on the other major matters
Not Applicable.
Chapter 6. Changes in Share Capital and Particulars about the Shareholders I. Change in Share Capital
Unit: shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase / Decrease this time (+, -)|||||After the change||
||||New||Share transfer of|||||
|||Proportion||Bon|||||Proportion|
||Amount||shares||accumulation|Others|Subtotal|Amount||
|||(%)||us|||||(%)|
||||issued||fund|||||
|I. Shares withconditionalsubscription|891,504,855|51.91%|||445,809,961|130,743|445,940,704|1,337,445,559|51.92%|
|1. State-owned shares||||||||||
|2. State-owned legalperson’s shares|693,419,317|40.38%|||346,709,658||346,709,658|1,040,128,975|40.38%|
|3. Other domesticshares||||||||||
|Including: domesticnon-state-owned legalperson’s shares||||||||||
|Domestic naturalperson’s shares||||||||||
|4. Foreign shares|197,709,440|11.51%|||98,854,720||98,854,720|296,564,160|11.51%|
|Including: Foreignlegal person’s shares|197,709,440|11.51%|||98,854,720||98,854,720|296,564,160|11.51%|
|Foreign naturalperson’s shares||||||||||
|5. Senior management’s shares|376,098|0.02%|||245,583|130,743|376,326|752,424|0.03%|
|II. Shares withunconditionalsubscription|825,795,648|48.09%|||412,840,290|-130,743|412,709,547|1,238,505,195|48.08%|
|1. RMB commonshares|684,248,848|39.85%|||342,104,515|-54,818|342,049,697|1,026,298,545|39.84%|
|2. Domestically listedforeign shares|141,546,800|8.24%|||70,735,775|-75,925|70,659,850|212,206,650|8.24%|
|3. Overseas listedforeign shares||||||||||

||||||||
|-|-|-|-|-|-|-|
|4. Others|||||||
|III. Total shares|1,717,300,503|100%|858,650,251|858,650,251|2,575,950,754|100.00%|

 In the report period, the Company implements the 2013 annual bonus scheme. Furthermore, some senior management of the Company resigned and some senior management added holding the shares of the Company through the secondary market, so that the limited shares and unlimited shares of the Company are changed.
II. Information of Company shareholders and actual controller
Unit: shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total number of shareholders at the|70,477 (including 60,151 A share holders and 10,326 B share holders)||||||||
|end of the report period|||||||||
|Shareholding of top 10 shareholders|||||||||
||||||||Pledged or||
||||Amount of||||||
||Class of||||||luck-up||
|||Share|holding shares at|Year-on-year|Restricted|Unrestricted|||
|Name of shareholder|shareholde||||||shares||
|||proportion|the end of the|Change|shares|shares|||
||r||||||Share|Amo|
||||report period||||||
||||||||state|unt|
|Shekou Industrial Zone|State-owned legalperson|40.38%|1,040,128,975|346,709,658|1,040,128,975|No|||
||||||||No|No|
|Full Space Investment|Overseaslegalperson|5.48%|141,216,075|47,072,025|141,216,075|No|||
||||||||No|No|
|China Merchants Securities HongKong Co., Ltd.|Overseaslegalperson|2.91%|74,836,941|24,949,657|73,863,367|973,574|||
||||||||No|No|
|FOXTROT INTERNATIONALLIMITED|Overseaslegalperson|1.61%|41,580,000|13,860,000|41,580,000|No|||
||||||||No|No|
|ORIENTURE INVESTMENT LTD|Overseaslegalperson|1.55%|39,904,717|13,301,572|39,904,717|No|||
||||||||No|No|
|Full Goal Tianbo InnovativeTheme Equity SecuritiesInvestment Fund|Domesticnonestate-owned legalperson|1.17%|30,014,614|12,014,614|No|30,014,614|||
||||||||No|No|
|GOLDEN CHINA MASTER FUND|OverseasInstitution|0.77%|19,808,497|6,935,306|No|19,808,497|||
||||||||No|No|
|National Social Insurance Fund|Domestic|0.73%|18,819,317|15,519,623|No|18,819,317|No|No|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|102 Combination|nonestate-owned legalperson|||||||||
|China Pacific Life Insurance Co.,Ltd.-Traditional- GeneralInsurance Product|Domesticnonestate-owned legalperson|0.69%|17,776,370|12,409,697|No||17,776,370|||
|||||||||No|No|
|New China Life Insurance Co.,Ltd - Dividends - PersonalDividends - 018 L- FH002 Shen|Domesticnonestate-owned legalperson|0.69%|17,775,000|3,909,408|No||17,775,000|||
|||||||||No|No|
|Top 10 holders of unrestricted shares||||||||||
|Name of shareholder||Unrestricted shares at the end of report||||Class of Share||||
|Full Goal Tianbo Innovative Theme EquitySecurities Investment Fund||30,014,614||||||||
|||||||A share||||
|GOLDEN CHINA MASTER FUND||19,808,497||||B share||||
|National Social Insurance Fund 102Combination||18,819,317||||||||
|||||||A share||||
|China Pacific Life Insurance Co., Ltd.||17,776,370||||A share||||
|New China Life Insurance Co., Ltd.||17,775,000||||A share||||
|GF Small-capitalization Growth EquitySecurities Investment Fund||16,452,124||||||||
|||||||A share||||
|VALUE PARTNERS CLASSIC FUND||14,691,105||||B share||||
|Huaxin Trust Co., Ltd.||14,651,478||||A share||||
|Dacheng Innovation Grow Hybrid SecuritiesInvestment Funds (LOF)||12,894,156||||||||
|||||||A share||||
|Yinhua Shenzhen 100 Index SecuritiesInvestment Fund||12,358,040||||||||
|||||||A share||||
|In the report period, the Company takes general capital 1,717,300,503 shares at the end of year as the base, and for each 10 shares, thecapital reserve is transferred into 5 common shares. Shekou Industrial Zone and its subsidiary companies Full Space Investment, TopChief International, FOXTROT INTERNATIONAL LIMITED and ORIENTURE INVESTMENT LTD are persons acting in concert. Theshares held by China Merchants Securities Hong Kong Co., Ltd., 49,242,245 shares were bought in by Top Chief in the previous year throughentrustment. After accumulation fund turning to increase subscribed capital is implemented, Top Chief International holds the shares of73,863,367.||||||||||

III Introduction to the Controlling Shareholder and Changes of Substantial Controller
In this report period, the controlling shareholder and the substantial controller have no change.
The following chart shows the equity and the control relationship between the Company and the Actual Controller:
State-owned Assets Supervision and Administration Commission
Supervision and Administration Commission of the State Council
100%
China Merchants Group Co., Ltd.
100%
40.38%
China Merchants Shekou Industrial Zone Co., Ltd.
100%
2.87%
Top Chief Co., Ltd.
100%
Orienture Holdings Co. Ltd
5.48% 100%
China Merchants Property Full Space Investment Limited
Development Co., Ltd.
1.61%
Foxtrot International Limited
100%
1.55% 100%
Orienture
Investment
Limited
Chapter 7. Particulars about Directors, Supervisors and Senior
Executives
I. Change of the shareholding of Directors, Supervisors and Senior Executives
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|Position|Positi|Sex|Age|Start|End date|Shareholding at the||Shareholding at the||Shares held at the end of||
|||on|||date||beginning of||current period (shares)||year(shares)||
|||state|||||year(shares)||||||
||||||||A share|B share|A share|B share|A share|B share|
|Sun|||||||||||||
|||On-the|||||||||||
|Chengmi|Chairman||M|55|2014.04|2014.12|||||||
|||-job|||||||||||
|ng|||||||||||||
|Fu|Deputy|On-the|||||||||||
||||M|47|2014.04|2014.12|||||||
|Gangfeng|Chairman|-job|||||||||||
|Yang|Deputy|On-the|||||||||||
||||M|54|2011.12|2014.12|||||||
|Tianping|Chairman|-job|||||||||||
|He Jianya|Managing|On-the|M||||||||||
|||||48|2011.12|2014.12|112,170||75,136||187,306||
||Director|-job|||||||||||
|Hu Yong|Director|On-the|M||||||||||
|||||47|2011.12|2014.12|||||||
|||-job|||||||||||
|Wu|Director|On-the|F||||||||||
|Zhenqin|and Chief|-job||55|2013.11|2014.12||||7,500||7,500|
||Financial||||||||||||
||Officer||||||||||||
|Chen Gang|Director|On-the|M||||||||||
|||||55|2013.11|2014.12|||||||
|||-job|||||||||||
|Chai|Independe|On-the|M||||||||||
|||||52|2011.12|2014.12|||||||
|Qiang|nt Director|-job|||||||||||
|Liu|Independe|On-the|||||||||||
||||M|51|2011.12|2014.12|||||||
|Hongyu|nt Director|-job|||||||||||
|Lu|Independe|On-the|||||||||||
||||M|53|2011.12|2014.12|||||||
|Weixiong|nt Director|-job|||||||||||
|Zhang Wei|Independe|On-the|||||||||||
||||M|43|2011.12|2014.12|||||||
||nt Director|-job|||||||||||
|Hua Li|Chairman|On-the|||||||||||
||of the|-job|||||||||||
||Supervisor||M|43|2013.11|2014.12|||||||
||y||||||||||||
||Committee||||||||||||
|Liu|Supervisor|On-the|||||||||||
||||M|54|2013.11|2014.12|||||||
|Qingliang||-job|||||||||||
|Huang|Supervisor|On-the|||||||||||
||||M|49|2011.12|2014.12|||||||
|Junlong||-job|||||||||||
|Chen Yan|Employee|On-the|||||||||||
||||F|36|2011.12|2014.12|||||||
||Supervisor|-job|||||||||||
|Chen Qing|Employee|On-the|||||||||||
||||F|31|2011.12|2014.12|||||||
||Supervisor|-job|||||||||||
|Liu Wei|Deputy|On-the|M||||||||||
||General|-job||50|2013.07|2014.12|||9,900||9,900||
||Manager||||||||||||
|Yang|Deputy|On-the|M|51|2011.12|2014.12|56,295|33,000|43,897|16,500|100,192|49,500|

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Zhiguang|General|-job|||||||||||
||Manager||||||||||||
|Hu Jianxin|Chief|On-the|M||||||||||
||Green|-job|||||||||||
||Low-carbo|||55|2014.02|2014.12|15,400||23,200||38,600||
||n Officer||||||||||||
||& Chief||||||||||||
||Engineer||||||||||||
|Zhu|Deputy|On-the|M||||||||||
|Wenkai|General|-job||46|2011.12|2014.12|17,000||24,500||41,500||
||Manager||||||||||||
|Meng Cai|Deputy|On-the|M||||||||||
||General|-job||56|2011.12|2014.12|61,882||46,641||108,523||
||Manager||||||||||||
|Zhang Lin|Deputy|On-the|M||||||||||
||General|-job||51|2011.12|2014.12|2,200|10,900|16,100|6,350|18,300|17,250|
||Manager||||||||||||
|Wang|Chief|On-the|M||||||||||
|||||51|2011.12|2014.12||10,000||20,000||30,000|
|Zhengde|economist|-job|||||||||||
|He Fei|Deputy|On-the|M||||||||||
||General|-job||42|2014.02|2014.12|2,000||1,000||3,000||
||Manager||||||||||||
|Wang Xi|Deputy|On-the|M||||||||||
||General|-job||43|2014.02|2014.12|||||||
||Manager||||||||||||
|Liu Ning|Secretary|On-the|F||||||||||
||of the|-job||45|2011.12|2014.12||13,500||6,751||20,251|
||Board||||||||||||
|||Leavin|||||||||||
|Lin|Former||||||||||||
|||g|M|53|2011.12|2014.04|59,670|100,500|44,835|50,250|104,505|150,750|
|Shaobin|Chairman||||||||||||
|||office|||||||||||
|||Leavin|||||||||||
|Wang|Former||||||||||||
|||g|M|51|2011.12|2014.04|||||||
|Hong|Director||||||||||||
|||office|||||||||||
||Former||||||||||||
|||Leavin|||||||||||
|Wang Li|Deputy|g|M|58|2011.12|2014.02|44,087||42,043||86,130||
||General||||||||||||
||Manager|office|||||||||||
|Total|||||||370,704|167,900|327,252|107,351|697,956|275,251|

 In the report period, some of the Senior Executives of the Company increase the company stock by secondary market. Furthermore, the Company implements accumulation fund turning to increase subscribed capital in the report period, so that the shares of the Senior Executives are correspondingly changed.
II. Change of Directors, Supervisors and Senior Executives
On February 24, 2014, the first temporary meeting in 2014 of the 7th Board of Directors approved that Hu Jianxin is appointed to Green Low-carbon Officer and Chief Engineer of the Company, and He Fei and Wang Xi are appointed to Deputy General Manager of the Company.
On April 14, 2014, Sun Chengming and Fu Gangfeng were elected as Directors of the 7th Board of Directors in 2013 annual general meeting of shareholders of the Company; Sun Chengming
was elected as Chairman of the Company and Fu Gangfeng was elected as Deputy Chairman of the
Company in the 12th meeting of the 7th Board of Directors.
Due to work change, Lin Shaobin resigned from the positions of Director and Chairman of the 7th Board of Directors of the Company; Wang Hong resigned from the position of Director of the 7th Board of Directors of the Company; Hu Jianxin resigned from the position of Deputy General Manager of the Company.
Due to age reason, Wang Li resigned from the position of Deputy General Manager of the Company and holds the post of Senior Consultant of the Company at present.
Section VIII Financial Reports
The Semi-Annual Financial Report of the Company has not been audited.
The unit in the notes of the Financial Statements is RMB Yuan
招商局地产控股股份有限公司2014年半年度报告全文
Financial Statements
|||||||||
|-|-|-|-|-|-|-|-|
||Consolidated Balance Sheet|||||||
||June 30, 2014|||||||
||Compiling unit: China Merchants Property|||||Unit: RMB Yuan||
||Development Co., Ltd.|||||||
|Items||Notes||Amount at the end ofthe period|||Amount at the|
||||||||beginning of the|
||||||||period|
||Current assets:|||||||
||Monetary capital||VI. 1||18,585,950,027.06||24,240,458,796.50|
||Transactional financial assets|||||||
||Notes receivable||VI. 2||7,680,171.60||4,000,000.00|
||Accounts receivable||VI. 3||126,199,169.09||76,864,814.81|
||Accounts prepaid||VI. 4||4,910,209,986.26||2,815,967,507.79|
||Interest receivable||||110,667.39||100,000.00|
||Dividend receivable||||-||-|
||Other receivables||VI. 5||10,621,087,872.17||13,683,883,876.17|
||Inventories||VI. 6||91,239,014,743.84||78,476,507,470.78|
||Non-current assets falling due in a year||VI. 7||0.00||4,175,229.58|
||Other current assets||VI. 8||4,058,670,833.37||3,550,197,939.60|
||Total of current assets||||129,548,923,470.78||122,852,155,635.23|
||Non-current assets:|||||||
||Financial assets available for sale||||-|||
||Long-term receivables||||-||-|
||Long-term equity investment||VI. 9||1,778,740,853.66||1,653,194,214.56|
||Investment property||VI. 10||5,597,749,991.30||5,661,844,333.88|
||Fixed assets||VI. 11||1,940,036,373.45||2,038,420,991.55|
||Construction in progress||VI. 12||106,849,800.03||104,895,578.36|
||Intangible assets||VI. 13||534,797,564.08||542,448,651.42|
||Development expenditure|||||||
||Goodwill||VI. 14||159,560,861.23||159,560,861.23|
||Long-term deferred and prepaid expenses||VI. 15||244,049,502.14||257,668,842.73|
||Deferred income tax assets||VI. 16||1,043,294,549.39||770,257,880.69|
||Other non-current assets||||-|||
||Total of non-current assets||||11,405,079,495.28||11,188,291,354.42|
||Total of assets||||140,954,002,966.06||134,040,446,989.65|

|||||||||
|-|-|-|-|-|-|-|-|
||Consolidated Balance Sheet (Continued)|||||||
||June 30, 2014|||||||
||Compiling unit: China Merchants Property|||||Unit: RMB Yuan||
||Development Co., Ltd.|||||||
|Items||Notes|||Amount at the end of||Amount at the beginning|
||||||the period||of the period|
||Current liabilities:|||||||
||Short-term loans||VI. 18||3,425,000,000.00||4,250,000,000.00|
||Notes payable||VI. 19||35,295,656.09||27,267,637.07|
||Accounts payable||VI. 20||13,416,765,194.17||12,010,832,454.50|
||Advances from customers||VI. 21||39,791,073,409.80||37,517,671,641.79|
||Remuneration payable to the|VI. 22||161,224,767.47||385,894,712.53||
||employees|||||||
||Taxes payable||VI. 23||1,239,845,236.36||1,464,425,877.10|
||Interest payable||VI. 24||136,828,081.81||152,361,058.07|
||Dividend payable||VI. 25||816,955,117.64||120,927,194.29|
||Other payables||VI. 26||9,379,109,531.87||9,014,047,482.53|
||Non-current liabilities falling due in a|VI. 27||9,332,132,762.45||6,331,007,932.13||
||year|||||||
||Other current liabilities||VI. 28||2,338,349,360.00||3,560,491,070.18|
||Total current liabilities||||80,072,579,117.66||74,834,927,060.19|
||Non-current liabilities:|||||||
||Long-term loans||VI. 29||18,090,343,461.61||17,051,917,894.42|
||Bonds payable||VI. 30||3,032,838,307.20||3,003,382,977.23|
||Long-term payables||VI. 31||105,023,177.74||102,745,035.90|
||Accrued liabilities||VI. 32||||10,473,360.10|
||Deferred income tax liabilities||VI. 16||93,864,160.28||108,596,697.05|
||Other non-current liabilities||VI. 33||11,236,760.00||11,236,760.00|
||Total non-current liabilities||||21,333,305,866.83||20,288,352,724.70|
||Total liabilities||||101,405,884,984.49||95,123,279,784.89|
||Equity of the shareholders:|||||||
||Capital stock||VI. 34||2,575,950,754.00||1,717,300,503.00|
||Capital surplus||VI. 35||7,613,842,349.28||8,447,048,826.56|
||Surplus reserve||VI. 36||1,133,515,392.99||1,133,515,392.99|
||Retained earnings||VI. 37||16,309,866,399.02||15,348,735,891.17|
||Foreign currency statement’s conversion|VI. 38||78,901,353.52||78,901,353.52||
||difference|||||||
||Total equity belonging to the|||27,712,076,248.81||26,725,501,967.24||
||shareholders of the parent company|||||||
||Equity of the minority shareholders||VI. 39||11,836,041,732.76||12,191,665,237.52|
||Total shareholders’ equity||||39,548,117,981.57||38,917,167,204.76|
||Total of the liabilities and the|||140,954,002,966.06||134,040,446,989.65||
||shareholders’ equity|||||||

招商局地产控股股份有限公司2014年半年度报告全文
|||||||||
|-|-|-|-|-|-|-|-|
||Balance Sheet of the Parent Company|||||||
||June 30, 2014|||||||
||Compiling unit: China Merchants Property|||||Unit: RMB Yuan||
||Development Co., Ltd.|||||||
|Items||Notes||Amount at the end ofthe period|||Amount at the|
||||||||beginning of the|
||||||||period|
||Current assets|||||||
||Monetary capital||||5,153,888,767.59||6,296,121,745.68|
||Payment in advance||||||193,000.00|
||Interest receivable||||11,825,326.67||11,814,660.00|
||Dividend receivable||||1,021,707,095.72||1,186,411,976.56|
||Other receivables||XIII. 1||28,927,303,913.13||28,619,556,967.65|
||Other current assets||||3,268,037.26||-|
||Total of current assets||||35,117,993,140.37||36,114,098,349.89|
||Non-current assets:|||||||
||Long-term equity investment||XIII. 2||8,786,680,625.02||9,227,039,815.19|
||Fixed assets||||1,255,576.27||1,548,967.06|
||Total of non-current assets||||8,787,936,201.29||9,228,588,782.25|
||Total of assets||||43,905,929,341.66||45,342,687,132.14|

||||||||
|-|-|-|-|-|-|-|
||Balance Sheet of the Parent Company (Continued)||||||
||June 30, 2014||||||
||Compiling unit: China Merchants Property||||Unit: RMB Yuan||
||Development Co., Ltd.||||||
|Items||Notes|Amount at the end ofthe period|||Amount at the|
|||||||beginning of the|
|||||||period|
||Current liabilities:||||||
||Short-term loans|||3,425,000,000.00||2,250,000,000.00|
||Account payable|||191,878,894.81||-|
||Employee remuneration payable|||1,696,369.50||9,010,550.63|
||Tax payable|||33,404,294.44||4,569,810.63|
||Interest payable|||34,315,450.25||90,378,579.30|
||Dividend payable|||332,909,851.16||-|
||Other payables|||13,375,992,157.06||15,791,231,019.71|
||Other non-current liabilities falling due in one||3,042,298,120.00||2,404,241,120.00||
||year||||||
||Other current liabilities|||||357,710.82|
||Total of current liabilities|||20,437,495,137.22||20,549,788,791.09|
||Non-current liabilities:||||||
||Long-term loan|||7,185,897,640.00||7,633,824,285.00|
||Total of non-current liabilities|||7,185,897,640.00||7,633,824,285.00|
||Total of liabilities|||27,623,392,777.22||28,183,613,076.09|
||Shareholders’ equity:||||||
||Capital stock|||2,575,950,754.00||1,717,300,503.00|
||Capital reserve|||8,068,403,942.00||8,927,054,193.00|
||Surplus reserves|||1,082,563,999.99||1,082,563,999.99|
||Undistributed profit|||4,555,617,868.45||5,432,155,360.06|
||Total of shareholders’ equity|||16,282,536,564.44||17,159,074,056.05|
||Total of liabilities and shareholders’ equity|||43,905,929,341.66||45,342,687,132.14|

||||||||
|-|-|-|-|-|-|-|
|Consolidated Income Statement|||||||
|January-June 2014|||||||
|Compiling unit: China Merchants Property|||||Unit: RMB Yuan||
|Development Co., Ltd.|||||||
|Items|Notes||Amount in this period|||Amount in the same|
|||||||period of the previous|
|||||||year|
|I. Total operating income||||16,047,155,730.99||16,133,568,321.26|
|In it: operating income||VI. 40||16,047,155,730.99||16,133,568,321.26|
|II. Total operating cost||||12,845,676,701.45||11,677,655,973.79|
|In it: operating cost||VI. 40||10,391,068,273.47||8,692,511,279.89|
|Sales tax and addition||VI. 41||1,614,019,700.29||2,579,430,723.77|
|Sales expense||VI. 42||281,938,248.45||272,019,791.76|
|Management expense||VI. 43||231,659,798.70||232,711,486.01|
|Financial expenses||VI. 44||326,102,386.55||73,348,971.39|
|Asset impairment loss||VI. 45||888,293.99||-172,366,279.03|
|Plus: Fair value change income (Fill in with “-” for the loss)|||||||
|Investment income (Fill in with “-” for the loss)||VI. 46||143,318,415.51||282,179,758.93|
|In it: Income from the investment on the associated|VI. 46||143,318,415.51||336,191,940.58||
|enterprises and cooperative enterprises|||||||
|III. Operating profit (“-” for loss)||||3,344,797,445.05||4,738,092,106.40|
|Plus: Non-operating income||VI. 47||35,496,879.63||11,774,703.28|
|Less: Non- operating expenditures||VI. 48||21,725,415.49||15,387,554.61|
|Incl. Loss from disposal of non-current assets||||175,062.57||910,283.52|
|IV. Total profit (“-“ for total loss)||||3,358,568,909.19||4,734,479,255.07|
|Less: Income tax expenses||VI. 49||964,496,768.41||1,476,586,830.38|
|V. Net profit (Fill in with “-” for net loss)||||2,394,072,140.78||3,257,892,424.69|
|Net profit belonging to the shareholders of the parent company||||1,785,434,748.85||2,550,631,034.51|
|Profit and loss of minority shareholders||||608,637,391.93||707,261,390.18|
|VI. EPS:|||||||
|（I） Basic EPS||VI. 50||0.69||0.99|
|（II） Diluted EPS||VI. 50||0.69||0.99|
|VII. Other comprehensive income|||||||
|VIII. Sum of the comprehensive income||||2,394,072,140.78||3,257,892,424.69|
|Sum of comprehensive income belonging to the shareholders of|||1,785,434,748.85||2,550,631,034.51||
|the parent company|||||||
|Sum of comprehensive income belonging to the minority|||608,637,391.93||707,261,390.18||
|shareholders|||||||

|||||||||
|-|-|-|-|-|-|-|-|
|Income Statement of the Parent Company||||||||
||January-June 2014|||||||
||Compiling unit: China Merchants Property|||||Unit: RMB Yuan||
||Development Co., Ltd.|||||||
|Items||Notes||Amount in this period|||Amount in the same|
||||||||period of the previous|
||||||||year|
||I. Operating income||XIII. 3||500,000.00||11,080,000.00|
||Less: operating cost||XIII. 3||1,057,252.16|1,016,316.92||
||Sales tax and addition||||2,240,568.26||621,588.00|
||Sales expense||||-|||
||Management expense||||20,151,253.94|14,632,307.21||
||Financial expenses||XIII. 4||83,121,614.09|198,192,218.64||
||Asset impairment loss||||-|||
||Plus: fair value change income (Fill in with “-” for the loss)||||-|||
||Investment income (Fill in with “-” for the loss)||XIII. 5||53,839,437.84|-1,290,760.00||
||In it: income from the investment on the associated|||-359,190.17||-1,290,760.00||
||enterprises and cooperative enterprises|||||||
||II. Operating profit (Fill in with “-” for the loss)||||-52,231,250.61||-204,673,190.77|
||Plus: non-operating income||||-|||
||Less: non-operating expenditure||||2,000.00|9,163,879.51||
||In it: loss from the disposal of non-current assets||||-|||
||III. Total profit (“-“ for total loss)||||-52,233,250.61|-213,837,070.28||
||Less: income tax expenses||||-|||
||IV. Net profit (“-“ for net loss)||||-52,233,250.61|-213,837,070.28||
||V. EPS:|||||||
||（I）Basic EPS|||||||
||（II）Diluted EPS|||||||
||VI. Other comprehensive income|||||||
||VII. Sum of comprehensive income||||-52,233,250.61|-213,837,070.28||

||||||||
|-|-|-|-|-|-|-|
||Consolidated Cash Flow Statement||||||
||January-June 2014||||||
||Compiling unit: China Merchants Property|||||Unit: RMB|
||Development Co., Ltd.|||||Yuan|
|Items||Notes|Amount in thisperiod|||Amount in the same|
|||||||period of the|
|||||||previous year|
||I. Cash flow generated in the operation activities:||||||
||Cash received for selling commodities and||18,355,477,590.23||18,624,153,525.45||
||providing labor||||||
||Tax return received|||||15,808,867.22|
||Other cash related to the operation activities|VI. 51|3,871,017,979.61||2,864,443,964.78||
||received||||||
||Subtotal of operation activity cash inflow|||22,226,495,569.84||21,504,406,357.45|
||Cash paid for purchasing commodities and||20,625,105,111.33||10,622,047,633.80||
||accepting labor||||||
||Cash paid to the employees and for the||854,694,963.32||674,059,496.16||
||employees||||||
||All the taxes paid|||5,455,155,348.46||4,126,788,176.01|
||Other cash related to the operation activities|VI. 51|2,623,864,543.85||7,357,016,282.05||
||paid||||||
||Subtotal of operation activity cash outflow|||29,558,819,966.96||22,779,911,588.02|
||Net amount of the cash flow generated in the||-7,332,324,397.12||-1,275,505,230.57||
||operation activities||||||
||II. Cash flow generated in the investment activities||||||
||Cash received for recovering the investment|||||80,123.00|
||Cash received for getting the investment income|||20,548,073.61||311,302,240.31|
||Net cash received from the disposal of fixed||46,854.00||65,240.00||
||assets, intangible assets and other long-term assets||||||
||Net cash received from disposing the subsidiary||||||
||companies and other operation units||||||
||Other cash related to the investment activities||||||
||received||||||
||Subtotal of the investment activity cash inflow|||20,594,927.61||311,447,603.31|
||Cash paid for constructing the fixed assets,||27,602,326.34||27,118,359.78||
||intangible assets and other long-term assets||||||
||Cash paid for investment|||58,671,105.19||23,898,000.00|
||Net amount of the cash paid for getting the||||||
||subsidiary companies and other operation units||||||
||Other cash related to the investment activities|VI. 51|||561,222,801.84||
||paid||||||
||Subtotal of investment activity cash outflow|||86,273,431.53||612,239,161.62|
||Net cash flow generated in the investment activities|||-65,678,503.92||-300,791,558.31|
||III. Cash flow generated by financing:||||||
||Cash received for absorbing the investment|||52,690,666.19||116,206,306.58|
||In it: cash received by the subsidiary||52,690,666.19||116,206,306.58||
||companies absorbing the investment of the minority||||||
||shareholders||||||
||Cash received as borrowings|||9,924,282,155.82||12,961,884,236.52|
||In it: net amount of the cash received for||||||
||issuing bonds||||||
||Other cash related to financing activities||||||

||||||||
|-|-|-|-|-|-|-|
|received|||||||
||Subtotal of financing activity cash inflow|||9,976,972,822.01||13,078,090,543.10|
||Cash paid for repaying the debts|||6,715,774,121.48||5,256,388,021.57|
||Cash paid for dividend,, profit or interst|||1,522,713,038.14||1,064,263,544.64|
||In it: dividend and profit paid by thesubsidiary companies to the minority shareholders||232,862,000.00||1,659,103.20||
||Other cash paid for financing activities|||922,920.00|||
||Subtotal of financing activities cash outflow|||8,239,410,079.62||6,320,651,566.21|
||Net cash flow generated by financing|||1,737,562,742.39||6,757,438,976.89|
||IV. Influence of exchange rate alternation on cashand cash equivalents||10,709,264.21||-17,869,715.20||
||V. Net increase amount of cash and cash equivalents|||-5,649,730,894.44||5,163,272,472.81|
||Plus: balance of the cash and cash equivalents at thebeginning of the period|VI. 51|24,235,680,921.50||18,218,506,517.70||
||VI. Balance of cash and cash equivalents at the endof the period|VI. 51|18,585,950,027.06||23,381,778,990.51||

||||||||
|-|-|-|-|-|-|-|
||Cash Flow Statement of the Parent Company||||||
||January-June 2014||||||
||Compiling unit: China Merchants Property||||Unit: RMB Yuan||
||Development Co., Ltd.||||||
|Items||Notes|Amount in thisperiod|||Amount in the same|
|||||||period of the previous|
|||||||year|
||I. Cash flow generated in the operation activities:||||||
||Cash received for selling commodities and providing||500,000.00||11,080,000.00||
||labor||||||
||Tax return received|||-|||
||Other cash related to the operation activities received|||5,154,554,447.21||6,592,768,196.65|
||Subtotal of operation activity cash inflow|||5,155,054,447.21||6,603,848,196.65|
||Cash paid for purchasing commodities and accepting||-||||
||labor||||||
||Cash paid to the employees and for the employees|||36,214,887.14||9,943,104.23|
||All the taxes paid|||4,271,957.18||11,310,020.65|
||Other cash related to the operation activities paid|||7,456,488,650.15||7,223,132,053.83|
||Subtotal of operation activity cash outflow|||7,496,975,494.47||7,244,385,178.71|
||Net amount of the cash flow generated in the||-2,341,921,047.26||-640,536,982.06||
||operation activities||||||
||II. Cash flow generated in the investment activities||||||
||Cash received for recovering the investment|||-|||
||Cash received for getting the investment income|||216,213,570.06||2,410,780,300.87|
||Net cash received from the disposal of fixed assets,||-||||
||intangible assets and other long-term assets||||||
||Net cash received from disposing the subsidiary||||||
||companies and other operation units||||||
||Other cash related to the investment activities||-||||
||received||||||
||Subtotal of the investment activity cash inflow|||216,213,570.06||2,410,780,300.87|
||Cash paid for constructing the fixed assets,||20,880.00||1,344,750.00||
||intangible assets and other long-term assets||||||
||Cash paid for investment|||88,671,105.19||2,754,541,275.00|

|||||||
|-|-|-|-|-|-|
|Net amount of the cash paid for getting the||-||||
|subsidiary companies and other operation units||||||
|Other cash paid for financing activities|||-|||
|Subtotal of investment activity cash outflow|||88,691,985.19||2,755,886,025.00|
|Net cash flow generated in the investment||127,521,584.87||-345,105,724.13||
|activities||||||
|III. Cash flow generated by financing:||||||
|Cash received for absorbing the investment|||-|||
|Cash received as borrowings|||4,917,261,400.00||5,452,029,750.00|
|Other cash related to the financing activities received|||-|||
|Subtotal of financing activity cash inflow|||4,917,261,400.00||5,452,029,750.00|
|Cash paid for repaying the debts|||3,158,976,000.00||2,616,571,500.00|
|Cash paid for dividend,, profit or interst|||674,974,230.45||730,221,765.98|
|Other cash related to financing activities paid|||-|||
|Subtotal of financing activities cash outflow|||3,833,950,230.45||3,346,793,265.98|
|Net amount of the cash flow generated by||1,083,311,169.55||2,105,236,484.02||
|financing||||||
|IV. Influence of exchange rate alternation on cash and||-11,144,685.25||-308,166.21||
|cash equivalents||||||
|V. Net increase amount of cash and cash equivalents|||-1,142,232,978.09||1,119,285,611.62|
|Plus: balance of the cash and cash equivalents at the|XIII. 6|6,296,121,745.68||5,277,807,877.29||
|beginning of the period||||||
|VI. Balance of cash and cash equivalents at the end of|XIII. 6|5,153,888,767.59||6,397,093,488.91||
|the period||||||

|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Consolidated Statement of Changes in Stockholders' Equity Accounts|||||||||||||||||
||Compiling unit: China Merchants Property Development Co., Ltd. Unit: RMB Yuan|||||||||||||||||
|Item|||January-June 2014|||||||||||||||
||||Equity belonging to the shareholders of the parent company|||||||||||Equity of theminorityshareholders||Total ofshareholders’equity||
|||Capital stock||Capital reserve|||Less:|Surplusreserves||Undistributedprofit||Others||||||
||||||||treasury|||||||||||
||||||||stock|||||||||||
||I. Balance at the end of the period of the|1,717,300,503.00||8,447,048,826.56||-||1,133,515,392.99||15,348,735,891.17||78,901,353.52||12,191,665,237.52||38,917,167,204.76||
||previous year|||||||||||||||||
||Plus: changes of accounting policies||||||||||||||||-|
||Error correction in the early stage||||||||||||||||-|
||Others||||||||||||||||-|
||II. Balance at the beginning of this period||1,717,300,503.00||8,447,048,826.56||-||1,133,515,392.99||15,348,735,891.17||78,901,353.52||12,191,665,237.52||38,917,167,204.76|
||III. Increase and decrease amount in this|858,650,251.00||-833,206,477.28||-||||961,130,507.85||||-355,623,504.76||630,950,776.81||
||period (Fill in with “-“ for the decrease)|||||||||||||||||
||（I）Net profit||||||||||1,785,434,748.85||||608,637,391.93||2,394,072,140.78|
||（II）Other comprehensive income|||||||||||||||||
||Subtotal of the above-mentioned (I) and (II)||-||-||-||-||1,785,434,748.85||||608,637,391.93||2,394,072,140.78|
||（III）Capital input and reduced by the|-||25,443,773.72||-||-||||-||27,246,892.46||52,690,666.18||
||shareholders|||||||||||||||||
||1. Capital input by the shareholders||||||||||||||52,690,666.18||52,690,666.18|
||2. Amount paid by the shareholders and|||||||||||||||-||
||counted into the shareholders’ equity|||||||||||||||||
||3. Others||||25,443,773.72||||||||||-25,443,773.72|||
||（IV）Profit distribution||-||-||-||||-824,304,241.00||-||-991,507,789.15||-1,815,812,030.15|
||1. Drawn surplus reserves||||||||||||||||-|
||2. Drawn generic risk reserve||||||||||||||||-|
||3. Distributed to the shareholders||||||||||-824,304,241.00||||-991,507,789.15||-1,815,812,030.15|
||4. Others||||||||||||||||-|

||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|（V）Internal carry-over of the shareholders|’|858,650,251.00-|||-858,650,251.00||-|-|-||-||-||-||
|equity|||||||||||||||||
|1. Capital reserve transferred into the||858,650,251.00|||-858,650,251.00||||||||||-||
|capital stock|||||||||||||||||
|2. Surplus reserves transferred into the|||||||||||||||-||
|capital stock|||||||||||||||||
|3. Surplus reserves making up for the|||||||||||||||-||
|losses|||||||||||||||||
|4. Others||||||||||||||||-|
|（VI）Special reserve||||-||-|-|-||-||-||-||-|
|1. Drawn in this period||||||||||||||||-|
|2. Used in this period||||||||||||||||-|
|（VII）Others|||||||||||||||||
|IV. Balance at the end of this period|||2,575,950,754.00|||7,613,842,349.28|-|1,133,515,392.99||16,309,866,399.02||78,901,353.52||11,836,041,732.76||39,548,117,981.57|

|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Consolidated Statement of Changes in Stockholders' Equity Accounts (Continued)Compiling unit: China Merchants Property Development Co., Ltd. Unit: RMB Yuan11,836,041,732.76||||||||||||||||
|Item|||Amount in the previous year|||||||||||||
||||Equity belonging to the shareholders of the parent company||||||||||Equity of the|Total of theshareholders’ equity||
|||Capital stock||Capital reserve||Less: treasurystock|Surplus reserves|Undistributed profit||Others|||minority|||
||||||||||||||shareholders|||
||I. Balance at the end of the period of the|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||
||previous year|||||||||||||||
||Plus: changes of the accounting policies||||||||||||||-|
||Error correction in the early stage||||||||||||||-|
||Others||||||||||||||-|
||II. Balance at the beginning of the period of this||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|
||yearIII. Increase and decrease amount in this|-||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||
||year(Fill in with “-“ for the decrease)|||||||||||||||

|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|（I） Net profit||||||||||4,202,152,074.18|||1,306,162,091.88||5,508,314,166.06|
|（II）Other comprehensive income||||||||||||-9,505,824.86|9,239,670.53||-266,154.33|
|Subtotal of the above-mentioned (I) and (II)||-||-||-||-||4,202,152,074.18||-9,505,824.86|1,315,401,762.41||5,508,048,011.73|
|（III）Capital input and reduced by the|-||60,122,528.44||-||-||-405,592,193.75||-||5,541,001,830.59|5,195,532,165.28||
|shareholders||||||||||||||||
|1. Capital input by the shareholders|||||||||||||5,161,250,375.40||5,161,250,375.40|
|2. Amount paid by the shareholders and||||||||||||||-||
|counted into the shareholders’ equity||||||||||||||||
|3. Others||||60,122,528.44||||||-405,592,193.75|||379,751,455.19||34,281,789.88|
|（IV）Profit distribution||-||-||-||105,734,395.09||-620,924,545.99||-|-260,618,848.32||-775,808,999.22|
|1. Drawn surplus reserves||||||||105,734,395.09||-105,734,395.09|||||-|
|2. Drawn generic risk reserve|||||||||||||||-|
|3. Distributed to the shareholders||||||||||-515,190,150.90|||-260,618,848.32||-775,808,999.22|
|4. Others|||||||||||||||-|
|（V）Internal carry-over of the shareholders’||-||-||-||-||-||-|-||-|
|equity1. Capital reserve transferred into the capital|||||||||||||||-|
|s t o c 2k . Surplus reserves transferred into the capital|||||||||||||||-|
|s t o c 3k . Surplus reserves making up for the losses|||||||||||||||-|
|4. Others|||||||||||||||-|
|（VI）Special reserve||-||-||-||-||-||-|-||-|
|1. Drawn in this year|||||||||||||||-|
|2. Used in this year|||||||||||||||-|
|（VII）Others|||||||||||||-449,882,973.16||-449,882,973.16|
|IV. Balance at the end of the period of this year||1,717,300,503.00||8,447,048,826.56||-||1,133,515,392.99||15,348,735,891.17||78,901,353.52|12,191,665,237.52||38,917,167,204.76|

||||||||||
|-|-|-|-|-|-|-|-|-|
||Statement of Changes in Stockholders' Equity Accounts of the Parent Company||||||||
||Compiling unit: China Merchants Property Development Co., Ltd. Unit: RMB Yuan||||||||
|Item||January-June 2014|||||||
|||Capital stock|Capital reserve|Less: treasury|Surplus reserves|Generic risk reserve|Undistributed profit|Total of the|
||I. Balance at the end of the period of the previous year|1,717,300,503.00|8,927,054,193.00|s to c k -|1,082,563,999.99|-|5,432,155,360.06|s h1a7r,e1h5o9ld,0e7r4s’, 0e5q6u.i0ty5|
||Plus: changes of the accounting policies|||||||-|
||Error correction in the early stage|||||||-|
||Others|||||||-|
||II. Balance at the beginning of this period|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|
||III. Increase and decrease amount in this period (Fill in|858,650,251.00|-858,650,251.00|-||-|-876,537,491.61|-876,537,491.61|

with “-“ for the decrease)
||||||||||
|-|-|-|-|-|-|-|-|-|
|（I）Net profit||||||-52,233,250.61||-52,233,250.61|
|（II）Other comprehensive income|||||||||
|Subtotal of the above-mentioned (I) and (II)|-|-|-|-|-|-52,233,250.61||-52,233,250.61|
|（III）Capital input and reduced by the shareholders|-|-|-|-|-|-||-|
|1. Capital input by the shareholders||||||||-|
|2. Amount paid by the shareholders and counted into|||||||-||
|the shareholders’ equity|||||||||
|3. Others||||||||-|
|（IV）Profit distribution|-|-|-||-|-824,304,241.00||-824,304,241.00|
|1. Drawn surplus reserves|||||||||
|2. Drawn generic risk reserve|||||||||
|3. Distributed to the shareholders||||||-824,304,241.00||-824,304,241.00|
|4. Others|||||||||
|（V）Internal carry-over of the shareholders’ equity|858,650,251.00|-858,650,251.00|-|-|-|-||-|
|1. Capital reserve transferred into the capital stock|858,650,251.00|-858,650,251.00||||||-|
|2. Surplus reserves transferred into the capital stock||||||||-|
|3. Surplus reserves making up for the losses||||||||-|
|4. Others||||||||-|
|（VI）Special reserve|-|-|-|-|-|-||-|
|1. Drawn in this period||||||||-|
|2. Used in this period||||||||-|
|（VII）Others||||||||-|
|IV. Balance at the end of this period|2,575,950,754.00|8,068,403,942.00|-|1,082,563,999.99|-|4,555,617,868.45||16,282,536,564.44|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Statement of Changes in Stockholders' Equity Accounts of the Parent Company (Continued)||||||||||
||Compiling unit: China Merchants Property Development Co., Ltd. Unit: RMB Yuan||||||||||
|Item|||Amount in the previous year||||||||
|||Capital stock||Capital reserve|Less: treasury stock|Surplus reserves|Generic risk reserve|Undistributed profit||Total of the shareholders’|
|||||||||||equity|
||I. Balance at the end of the period of the|1,717,300,503.00||8,927,054,193.00|-|976,829,604.90|-|4,995,735,955.13|16,616,920,256.03||
||previous year||||||||||
||Plus: changes of the accounting policies|||||||||-|
||Error correction in the early||||||||-||
||stage||||||||||

||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Others||||||||||||||-|
|II. Balance at the beginning of the period|1,717,300,503.00||8,927,054,193.00||-||976,829,604.90||-||4,995,735,955.13||16,616,920,256.03||
|in this year|||||||||||||||
|III. Increase and decrease amount|-||-||-||105,734,395.09||-||436,419,404.93||542,153,800.02||
|in this year(Fill in with “-“ for the|||||||||||||||
|decrease)|||||||||||||||
|（I） Net profit||||||||||||1,057,343,950.92||1,057,343,950.92|
|（II）Other comprehensive income||||||||||||||-|
|Subtotal of the above-mentioned (I) and|-||-||-||-||-||1,057,343,950.92||1,057,343,950.92||
|(II)|||||||||||||||
|（III）Capital input and reduced by|-||-||-||-||-||-||-||
|the shareholders|||||||||||||||
|1. Capital input by the shareholders||||||||||||||-|
|2. Amount paid by the|||||||||||||-||
|shareholders and counted into the|||||||||||||||
|shareholders’ equity|||||||||||||||
|3. Others||||||||||||||-|
|（IV）Profit distribution||-||-||-||105,734,395.09||-||-620,924,545.99||-515,190,150.90|
|1. Drawn surplus reserves||||||||105,734,395.09||||-105,734,395.09||-|
|2. Drawn generic risk reserve||||||||||||||-|
|3. Distributed to the shareholders||||||||||||-515,190,150.90||-515,190,150.90|
|4. Others||||||||||||||-|
|（V）Internal carry-over of the|-||-||-||-||-||-||-||
|shareholders’ equity|||||||||||||||
|1. Capital reserve transferred into|||||||||||||-||
|the capital stock|||||||||||||||
|2. Surplus reserves transferred into|||||||||||||-||
|the capital stock|||||||||||||||
|3. Surplus reserves making up for|||||||||||||-||
|the losses|||||||||||||||
|4. Others||||||||||||||-|
|IV. Balance at the end of the period of|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||
|this year|||||||||||||||

I. Basic condition of the Company
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 Co., Ltd. established by China Merchants Shekou Industrial Zone Co., Ltd. on the foundation of former Shekou China Merchants Port Service Co., Ltd., and it was established in Shenzhen, China in September 1990.
In February 1993, after the approval of Shen Fu Ban Fu (1993) No.358 document of ShenzhenPeople’s Government, the Company publicly issued 27,000,000 A shares to domestic investors in the mode of incorporation by stock floatation, and publicly issued 50,000,000 B shares to foreign investors, which increased theCompany’s capital shares up to 210,000,000. The A shares and B shares issued by the Company were listed in Shenzhen Stock Exchange, China in June 1993.
In July 1995, some B shares of the Company were listed in Singapore Stock Exchange in the form of SDR (Singapore Depository Receipts).
In June 2004, the name of the Company was changed to “China Merchants Property Development Co., Ltd.”. After the previous dividend distribution and rights issues implemented from 1994 to 2004, up till December 31, 2004, the total number of shares of the Company had increased to 618,822,672.
On January 18, 2006, the relatedShareholders’ Meeting of the Company examined and approved the A Share equity division Reform Scheme, i.e. for each 10 A tradable shares held by the holders of the tradable A shares of the Company, the holders of the tradable A shares got 2 A shares paid by the holders of the non-tradable shares and consideration of RMB 3.14 Yuan. After the Equity Division Reform Scheme was implemented, the total number of shares of the Company remained unchanged.
After the approval of Zheng Jian Fa Zi[2006] No.67 document of China Securities Regulatory Commission, the Company publicly issued 15,100,000 convertible company bonds adopting the mode of full-amount priority placement to the original A share holders and the original A share holders giving up some priced issuance to the institutional investors offline on August 30, 2006, and the face value of each convertible company bond is RMB 100 Yuan. This part of convertible company bonds were listed and traded in Shenzhen Stock Exchange since September 11, 2006, which was called “China Merchants convertible bonds” in brief, and the share transfer day is March 1, 2007.
On May 25, 2007, China Merchants convertible bonds stopped transaction and share transfer, and all the China Merchants convertible bonds not converted yet were redeemed by the Company. Up till then, altogether 15,093,841 convertible bonds of the Company (the face value of the bond was RMB
1,509,384,100 Yuan) were applied for share transfer, and altogether 115,307,691 shares increased by transferring. The remaining 6,159 convertible bonds (the face value of the bond was RMB 615,900 Yuan) were redeemed by the Company. Up till then, the number of shares of the Company increased to 734,130,363.
After the approval of Zheng Jian Fa Xing Zi[2007] No.299 document of China Securities Regulatory Commission, the Company non-publicly issued 110,736,639 shares to the shareholder of the Company China Merchants Shekou Industrial Zone Co., Ltd. on September 19, 2007. After this issuance, the total number of shares of the Company increased to 844,867,002.
On March 17, 2008, theShareholders’ Meeting 2007 of the Company approved the Profit Distribution and Capital Reserve Transferred to Paid-in Capital Scheme 2007, with total 844,867,002 shares on December 31, 2007 as the base number, gave 3 bonus shares for each 10 shares, and at the same time, for each 10 shares, transferred 2 shares with capital reserve. After giving shares and the transfer, the total number of shares of the Company increased to 1,267,300,503.
After the approval of Zheng Jian Xu Ke[2008] No.989 document of China Securities Regulatory Commission, the Company publicly issued 450,000,000 shares to the original A share holders on November 26, 2008. Among them, the shareholder of the Company China Merchants Shekou Industrial Zone Co., Ltd. subscribed 279,349,288 shares. After this issuance, the total number of shares of the Company increased to 1,717,300,503.
On April 14, 2014, theShareholders’ Meeting 2013 of the Company approved the Profit Distribution and Capital Reserve Transferred to Paid-in Capital Scheme 2013, with the total equity of 1,717,300,503 shares at the end of 2013 as the base number, for each 10 shares, transferred 5 common shares with capital reserve. Altogether 858,650,251 shares were transferred, and after the transfer, the total equity increased to 2,575,950,754 shares.
Up till June 30, 2014, the total equity of the Company was 2,575,950,754 shares. Among them, 1,337,445,559 shares are under restriction for sale, accounting for51.92% of the total equity, and 1,238,505,195 non-restricted shares, accounting for48.08% of the total equity.
The Company is in the property development industry, and the Group mainly engages in property development and operation, public utility (power supply) and property management.
The shareholder of the Company is China Merchants Shekou Industrial Zone Co., Ltd., and the final controller is China Merchants Group Co., Ltd. TheShareholders’ Meeting is the top authority of the Company, which legally exercises the resolution power for the major matters of the Company such as operation guideline, financing, investment and profit distribution etc. The Board of Directors is responsible
for theShareholders’ Meeting, and legally exercises the operation decision-making power of the Company. The manager level is responsible for implementing the resolutions of theShareholders’ Meeting and the Board of Directors, and hosts the production operation management work of the enterprise.
II. Main Accounting Policies, Estimations and Basis Preparation of the Consolidated Financial Statements
1. Foundation of compiling the financial statements
The financial statements of the Group are compiled with the continuous operation as the foundation, in accordance with the actually taking place transactions and matters, pursuant to the Accounting Standards for Business Enterprises released by the Ministry of Finance and the related provisions, and based on the accounting policies and accounting estimations stated by this Annotation “Method of Compiling the Major Accounting Policies, Accounting Estimations and Consolidated Financial Statements”.
2. Statement of compliance to the Enterprise Accouting Standard
The financial statements compiled by the Group meet the requirements of the Accounting Standards for Business Enterprises, it truly and completely reflects the related information of the Group such as the financial condition, operation achievements and cash flow etc.
3. Accounting period
The accounting period of the Group is January 1 to December 31 Gregorian calendar.
4. Recording currency
The recording currency of the Group is RMB.
5. Accrual basis and pricing principle
The financial accounting of the Group has accrual system as the accrual basis, and except the transactional financial assets and financial assets available for sale etc. are measured with fair value, the historic cost is used as the pricing principle.
6. Enterprise merger
Enterprise merger refers to the transaction or matter of merging two or over two single enterprises into one reporting entity. The Group confirms the assets and liabilities obtained due to enterprise merger on the merger day or the purchase day, and the merger day or purchase day is the day when actually obtaining the control power over the merged party or the purchased party.
For the enterprise merger under the same control, the assets and liabilities obtained by the merging party in the enterprise merger are measured by the book value at the merged party on the merger day. For the difference between the net assets book value obtained and the merger consideration book value paid, adjust the capital reserve. If the capital reserve is not sufficient to offset, adjust the retained income.
For the enterprise merger under the non-same control, the merger cost is the fair value of the assets paid by the Group on the purchase day in order to get the control power over the purchased party, taking place or born liabilities and the issued equity securities. The difference between the merger cost and the fair value share of the identifiable net assets of the purchased party obtained in the merger (the former is bigger than the latter) is confirmed as goodwill. The difference between the merger cost and the fair value share of the identifiable net assets of the purchased party obtained in the merger (the former is smaller than the latter) is counted into the current profit and loss after review and confirmation.
7. Method of compiling the consolidated financial statements
（1） Principle of determining the consolidation scope
The Group brings the subsidiary companies owning the actual control power and the special purpose entity into the scope of consolidated financial statements.
（2） Accounting method adopted by the consolidated financial statements
The consolidated financial statements of the Group are compiled according to the Accounting Standards for Business EnterprisesNo.33－Consolidated Financial Statements and the related provisions, and during the consolidation, all the major internal transactions and correspondences within the consolidation scope have been offset. The part not owned by the parent company in theshareholders’ equity of the subsidiary companies is singly listed under theshareholders’ equity item in the consolidated financial statements as the minorityshareholders’ equity.
The accounting policy or accounting period adopted by the subsidiary companies and that adopted by the Company are inconsistent. When compiling the consolidated financial statements, conduct necessary adjustment on the financial statements of the subsidiary companies according to the accounting policy or accounting period of the Company.
For the subsidiary companies obtained through enterprise merger under the non-same control, when compiling the consolidated financial statements, the individual financial statements are adjusted with the fair value of the identifiable net assets on the purchase day as the foundation. For the subsidiary companies obtained through enterprise merger under the same control, it is regarded as the enterprise already existed at the beginning of the year of the merger, and its assets, liabilities, operation achievement and cash flow are
brought into the consolidated financial statements by their original book value from the beginning of the year of the merger.
8. Cash and cash equivalents
The cash in the cash flow statement of the Group refers to the cash on hand and the deposit that can be used for payment at any time. The cash equivalents in the cash flow statement refer to the investment that has a holding period not exceeding three months, has strong liquidity, is easy to be exchanged to the cash of the known amount and has very small value change risk.
9. Foreign currency business
The foreign currency transaction is the conversion adopting the exchange rate similar to the spot exchange rate on the transaction taking place day during initial recognition, and the exchange rate similar to the spot exchange rate on the transaction taking place day is calculated and determined by the spot exchange rate at the beginning of the transaction taking place month.
On the balance sheet day, the foreign currency monetary items are converted into RMB adopting the spot exchange rate of the balance sheet day. The balance of exchange generated from the difference between the spot exchange rate of the day and the spot exchange rate during the initial recognition or of the previous balance sheet day is counted into the current profit and loss except: the balance of exchange of the foreign currency special loan meeting the capitalization conditions is capitalized and counted into the cost of the related assets during the capitalization; (2) In order to avoid the foreign exchange risks, the balance of exchange of the hedging tool for hedging is processed according to the hedging accounting method. (3) The balance of exchange generated from the foreign currency nonmonetary items available for sale (such as stock) and the balance of exchange generated from the other book balance excluding the amortized cost of the monetary items available for sale are confirmed as other comprehensive income and counted into the capital reserve.
The foreign currency nonmonetary items measured with historic cost are still measured with the recording currency amount converted with the spot exchange rate of the transaction taking place day. The foreign currency nonmonetary items measured with fair value are converted adopting the spot exchange rate of the fair value determination day. The difference between the recording currency amount after the conversion and the original recording currency amount is processed as fair value change (including the exchange rate change) and counted into the current profit and loss or confirmed as other comprehensive income and counted into the capital reserve.
10. Financial assets and financial liabilities
（1） Financial assets
1） Classification of financial assets
According to the investment purpose and the economic nature, the Group classifies the financial assets owned into four categories: financial assets measured with fair value and the changes of which are counted into the current profit and loss, held-to-maturity investment, loan and receivables, and financial assets available for sale.
The financial assets measured with fair value and the changes of which are counted into the current profit and loss refer to the financial assets of which the main purpose is sale in a short period of time, which are listed as transactional financial assets in the balance sheet.
Held-to-maturity investment refers to the non-derivative financial assets with fixed due date, fixed or fixable recovery amount and for which the management has the clear intention and ability to hold till maturity.
Loan and receivables refer to the non-derivative financial assets that have no quote in the active market and have fixed or fixable recovery amount, including notes receivable, accounts receivable, interest
receivable, dividend receivable and other receivables etc.
The financial assets available for sale include the non-derivative financial assets and the financial assets not divided into the other categories that are appointed as available for sale during the initial recognition.2） Confirmation and measurement of financial assets
The financial assets are confirmed in the balance sheet by the fair value when the Group becomes a party of the financial tool contract. The related transactional expenses of the financial assets measured by the fair value and with their changes counted into the current profit and loss taking place when getting them are counted into the current profit and loss, and the related transactional expenses of the other financial assets are counted into the initial recognition amount.
The financial assets measured by their fair value and with their changes counted into the current profit and loss and the financial assets available for sale are subsequently measured. The effective interest method is adopted for the loan and receivables and held-to-maturity investment, and they are listed by amortized cost.
The fair value changes of the financial assets measured by fair value and with their changes counted
into the current profit and loss are counted into the fair value flexible loss and profit. The interests or cash dividends got during the assets holding period are confirmed as investment income. When handling, the difference between the fair value and the initial account-entering amount is confirmed as investment profit and loss, and at the same time, the fair value flexible loss and profit is adjusted.
Except the impairment loss and the profit or loss on exchange formed by the foreign currency monetary financial assets, the fair value changes of the financial assets available for sale are directly counted into theshareholders’ equity. When the confirmation is terminated for the financial assets, the accumulative amount of the fair value changes originally directly counted into the equity is transferred into the current profit and loss. The interest calculated by the effective interest method during the holding period of the available-for-sale liability tool investment, as well as the cash dividend announced to be distributed by the invested unit and related to the available-for-sale equity tool investment are counted into the current profit and loss as the investment income.
3） Impairment of the financial assets
Except the financial assets measured by the fair value and with their changes counted into the current profit and loss, the Group examines the book value of the other financial assets on the balance sheet day. If there are objective evidences showing that certain financial assets have impairment, count and draw the provision for impairment.
The objective evidences for the impairment of the financial assets include the following matters that can be observed:
① The issuer or the debtor has serious financial difficulties.
② The debtor violates the contract articles, such as breach of contract or being overdue etc. for repaying the interest or the principal.
③ The Group makes concession for the debtor with financial difficulties with the consideration of the economic or legal factors.
④ The debtor will very possibly collapse or conduct other financial restructuring.
⑤ The financial assets cannot be traded on in the active market because the issuing party has significant financial difficulties.
⑥ It is impossible to identify if the cash flow of an asset in a group of financial assets has decreased, however, after conducting overall evaluation on it according to the publicized data, the estimated future cash flow of the group of financial assets has really decreased and can be measured after the initial recognition, including: 1) The payment capability of the debtor of the group of financial assets has gradually deteriorated. 2) The condition that may cause it impossible to pay for the group of financial assets arises in the economy of the country or area where the debtor is located.
⑦ The technology, market, economy or legal environment etc. of the operation of the equity instrument issuing party have significant adverse changes, making it impossible for the equity instrument investor to recover the investment cost.
⑧ The fair value of equity instrument investment has serious or other-than-temporary fall.
⑨ Other objective evidences showing that the financial assets have impairment.
When the financial assets measured with amortized cost have the provision for impairment counted and drawn by the difference between the estimated future cash flow (not including the not-yet-taking place future credit loss) and the book value (the former is lower than the latter). If there are objective evidences showing that the value of the financial assets is already recovered and is related to the matters arising after the loss is confirmed objectively, the confirmed impairment loss is transferred back and counted into the current profit and loss.
When the financial assets available for sale have impairment, the accumulative loss originally directly counted into theshareholders’ equity and formed due to the fall of the fair value is transferred out and counted into the impairment loss. For the available-for-sale debt instrument investment with the impairment loss confirmed, if the fair value rises and is objectively related to the matters arising after the original impairment loss confirmed after the period, the originally confirmed impairment loss is transferred back and counted into the current profit and loss. For the available-for-sale equity instrument investment with the impairment loss confirmed, the fair value rises and is directly counted into theshareholders’ equity after the period.
Transfer of the financial assets
If the financial assets meet one of the following conditions, they are derecognized:① The right of the contract collecting the cash flow of the financial assets is terminated.② The financial assets are already transferred, and the Group transfers almost all the risks and remuneration on the ownership of the financial assets to the transfer-in party.③ The financial assets were already transferred, although the Group did not transfer and did not reserve almost all the risks and remuneration on the ownership of the financial assets, it gives up the control on the financial assets.
If the enterprise did not transfer, did not reserve almost all the risks and remuneration on the ownership of the financial assets, and did not give up the control on the financial assets, the related financial assets are confirmed according to the degree of it continuing to get involved with the transferred financial assets, and the related liabilities are confirmed correspondingly. The degree of continuing to get involved with the transferred financial assets refers to the level of risks that the enterprise faces due to the value changes of the financial assets.
If the overall transfer of the financial assets meets the derecognition conditions, the difference between the book value of the transferred financial assets and the sum of the consideration received due to the transfer
and the accumulative amount of the fair value changes originally counted into the other comprehensive income is counted into the current profit and loss.
If partial transfer of the financial assets meets the derecognition conditions, share the overall book value of the transferred financial assets between the derecognized part and the part not derecognized according to their respective comparative fair value, and count the difference between the sum of the consideration received due to the transfer and the accumulative amount of the fair value changes that shall be apportioned till the derecognized part and originally counted into the other comprehensive income and the
aforementioned book amount apportioned into the current profit and loss.
（2） Financial liabilities
The financial liabilities of the Group are classified into the financial liabilities measured by the fair value and of which the changes are counted into the current profit and loss during the initial recognition and other financial liabilities.
The financial liabilities measured by the fair value and of which the changes are counted into the current profit and loss include the transactional financial liabilities and the financial liabilities appointed to be measured by the fair value and of which the changes are counted into the current profit and loss during the initial recognition, and subsequent measurement is conducted by the fair value. The profit or loss formed by the fair value changes and the dividend and interest expenditures related to the financial liabilities are counted into the current profit and loss.
Effective interest method is adopted for the other financial liabilities, and subsequent measurement is conducted by the amortized cost.
When all or part of the current obligations of the financial liabilities is alreadydischarged， derecognize the discharged part of the financial liabilities or obligations. The difference between the book value of the derecognized part and the paid consideration is counted into the current profit and loss.
（3） Method of determining the fair value of the financial assets and financial 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 reserves for the receivables
The Group has the following conditions as the standards to determine the bad debt loss of the receivables: The debtorunit’s production is stopped and it is unable to relay the debt within the foreseeable time due to backout, bankruptcy, insolvency, serious shortage of cash flow, and serious natural disasters etc. The debtor unit is overdue for implementing the debt repayment obligation for over 3 years. There are other unambiguous evidences showing that recovery is impossible or the possibility is small.
Adopt the allowance method to check the bad debt loss that may arise, conduct impairment test singly or by portfolio at the end of the period, count and draw the bad debt provision and count into the current profit and loss. The receivables that the unambiguous evidences show that it is really impossible to recover are regarded as bad debt loss after the approval of the Group according to the prescribed procedures and offset the drawn bad debt provision.
（1）Receivables with significant single amount and with single counted and drawn bad debt provision
Judgement basis or amount standard for The receivables with single amount exceeding RMB 5 million Yuan is
significant single amount regarded as significant receivables
The Group singly conducts impairment test on the receivables with significant single
amount, and singly tests the receivables without impairment, including conducting
The counting and drawing method for
impairment test in the receivable portfolio with similar credit risk characteristics. The
significant single amount and single
receivables with impairment loss confirmed in the single test no longer include
counted and drawn bad debt provision
conducting impairment test in the receivable portfolio with similar credit risk
characteristics.
（2）Receivables with single amount not significant but with single counted and drawn bad debt provision
The Group singly conducts impairment test on the receivables with
Cause for single counted and drawn bad
debt provision single amount not significant but with evidences showing that the
contract cash flow may not be recovered, and singly tests the receivables
without impairment, including conducting impairment test on the
receivable portfolio with similar credit risk characteristics. The
receivables with impairment loss confirmed in the single test no longer
include conducting impairment test in the receivable portfolio with
similar credit risk characteristics.
（3）Receivables with counted and drawn bad debt provision by portfolio
Basis for determining the portfolio
This portfolio is divided according to the credit risk characteristics of the
Portfolio 1
debtor unit, which is mainly the receivables without impairment after single
test (including the receivables with single amount significant from the related
party of the Group, government departments and the cooperative party, petty
cash and deposit etc.), and the possibility for this category of money to have
bad debt loss is very small.
This portfolio is the receivables except portfolio 1 and the receivables with
single counted and drawn bad debt provision, and the Group counted and
Portfolio 2
drawn bad debt provision for the receivables of this portfolio by aging of
accounts combining the historic experiences.
Counting and drawing method of counted and drawn bad debt provision by portfolio
Portfolio 1 Bad debt provision not counted and drawn
Portfolio 2 Aging of accounts
（4） The counted and drawn proportions of bad debt provision of the receivables adopting aging of accounts are as follows
||
|-|
|Counted and drawn proportion of theaccounts receivable (%)|
|2|
|5|
|20|
|50|
|100|

12. Inventories
The inventories of the Group mainly include property development products, raw materials, commodity stocks, low-value consumption goods and others.
Property development products are mainly property in progress development products (including the land planned to develop), completed development products (including the rented property for sale), etc. The actual cost of the property development products includes land-transferring fees, infrastructure supporting expenditure, construction and installation work expenditure, loan expenses arising before the development project is completed and other related expenses in the development process. When the property development products are sent out, individual pricing is adopted to determine their actual cost.
Construction contracts are measured at actual costs, including related direct and indirect expenses occurred from signing to completion of the contract. The accumulative cost that has arisen, accumulative confirmed gross profit (loss) and the settled money of the contract for the construction in process are listed as the net amount after the offset in the balance sheet. The sum of the accumulative cost that has arisen and the accumulative confirmed gross profit (loss) and the part exceeding the settled money of the contract for the construction in process are listed as inventories. The sum of the part of the settled money exceeding the accumulative cost that has arisen and the accumulative confirmed gross profit (loss) of the contract for the construction in process is listed as the account collected in advance.
The travelling expense and tender submission fee etc. arising in order to enter into the construction contract are counted into the contract cost when getting the contract if they can be singly distinguished, measured reliably and it is very possible to enter into the contract. If the above-mentioned conditions are not met, they are counted into the current profit and loss.
The low-value consumption goods and other inventories are amortized adopting one-time resale method.
The inventories at the end of the period are accounted depending on which is lower between the cost and the net realizable value.. When the net realizable value of the property development product is lower than the cost, the inventory price fall provision shall be counted and drawn. net realizable value refers to the amount of the estimated sales price less thee estimated completion cost, the estimated sales expenses and the tax in the normal production and operation process. When determining the net realizable value of the inventories, the unambiguous evidences obtained are used as the foundation, and at the same time, the purpose of holding the inventories and the impact of the matters after the balance sheet day are considered. After counting and drawing the inventory price fall provision, if the previous influencing factors writing down the inventory value have disappeared, the written down amount shall be recovered and transferred
back within the amount of the originally counted and drawn inventory price fall provision. The amount transferred back is counted into the current profit and loss.
13. Long-term 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.
Control refers to the investor owns right to investee, can acquire variable returns through participating ininvestee’s related activities and has power to use the right in order to impact on its return.
Joint control refers to the common control on certain economic activity according to the contract stipulations. The basis for determining the joint control is: any one cooperative party cannot singly control the production and operation activities of the cooperative enterprise, and the decisions involving the basic operation activities of the cooperative enterprise need the unanimous consent of all the cooperative parties etc.
Significant impact refers to having the power to participate in the decision-making of the financial and operation policies of the invested unit, but cannot control or jointly control with the other parties the making of these policies. The basis for determining the significant impact is mainly the Group owning over20% (including20%) but lower than50% voting shares of the invested unit directly or indirectly through the subsidiary companies. If there are clear evidences showing that it cannot participate in the decision-making of the production and operation of the invested unit under such condition, significant impact cannot be formed.
For the long-term equity investment obtained through the enterprise merger under the same control, the share of the book value of the owner of the merged party obtained on the merger day is used as the investment cost of the long-term equity investment. For the long-term equity investment obtained through the enterprise merger under the non-same control, the assets paid out, liabilities that have arisen or been born and the fair value of the issued equity securities for getting the control power on the merged (purchased) party on the merger (purchase) day are used as the merger cost.
Besides the long-term equity investment obtained through enterprise merger, for the long-term equity investment obtained through paying cash, the purchase price actually paid is used as the investment cost. For the long-term equity investment obtained through issuing equity securities, the fair value of the equity securities issued is used as the investment cost. For the long-term equity investment input by the investors, the value in accordance with the investment contract or the agreement stipulations is used as the investment cost. For the long-term equity investment obtained through debt restructuring and exchange of nonmonetary assets etc., the investment cost is determined according to the provisions of the related accounting standards.
The Group adopts the cost method to check for the investment on the subsidiary companies, and conducts adjustment by the equity method when compiling the consolidated financial statements. The Group adopts equity method to check for the investment on the cooperative enterprise and associated enterprise. When adopting the cost method to check, the long-term equity investment is priced by the initial investment cost, and the cost of the long-term equity investment is adjusted when adding or recovering the investment. When adopting the equity method to check, the current investment profit and loss is the share of the net profit and loss realized by the invested unit in the year that shall be enjoyed or shall be shared. When confirming the share of the net profit and loss of the invested unit that shall be enjoyed, the part belonging to the investing enterprise is calculated according to the shareholding proportion with the fair value of all the identifiable assets etc. of the invested unit when getting the investment as the foundation, in accordance with the accounting policies and accounting period of the Group, and with the internal transaction profit and loss arising between the Group and the associated enterprise and the cooperative enterprise offset, and confirmation is conducted after adjusting the net profit of the invested unit. For the long-term equity investment on the associated enterprise and cooperative enterprise already held before the first implementation day, 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.
The Group changes to adopt the cost method to check for the long-term equity investment that no longer has joint control or significant impact on the invested unit due to investment reduction etc., has no quote in the active market, and the fair value of which cannot be measured reliably. The Group also changes to adopt the cost method to check for the long-term equity investment that can implement control on the invested unit due to adding investment etc. The Group changes to adopt the equity method to check for the long-term equity investment that can implement joint control or significant impact on the invested unit but does not constitute control due to adding investment etc. or no longer has control but can implement joint control or significant impact on the invested unit due to dispose investment etc.
When handling the long-term equity investment, the difference between the book value and the money actually obtained is counted into the current investment income. For the long-term equity investment checked adopting the equity method, if the other changes of theowner’s equity except the net profit and loss of the invested unit are counted into theowner’s equity, when handling the investment, the part originally counted into theowner’s equity is transferred into the current investment income according to the corresponding proportion.
14. Investment property
The investment property of the Group includes the rented land use right, the land use right held and planned to transfer after value adding, rented buildings, and the buildings held and planned to be rented in
the future.
For the investment property of the Group, the cost is used as the account entering value. The cost of the outsourcing investment property includes the purchase price, the related taxes, and other expenditures directly belonging to the asset. The cost of self-built investment property consists of the necessary expenditures arising before the asset reaches the estimated usable status.
The Group adopt cost mode to conduct subsequent measurement on the investment property, and adopt composite life method to count and draw depreciation or amortization according to its estimated service life and net ratio of remaining value. The estimated service life, net ratio of remaining value and annual depreciation (amortization) rate of the investment property are as follows:
||||
|-|-|-|
|Asset category subdivision|Depreciation life|Net salvage|
|——|Remaining service life|0%|
|Steel structure|30 years or the use rightterm, whichever is lower|5%|
|Reinforcedconcrete structure|25 years or the use rightterm, whichever is lower|5%|
|Masonry-concretestructure|20 years or the use rightterm, whichever is lower|5%|

When the purpose of the investment property is changed to self-use, since the day of the change, the investment property is changed to fixed asset or intangible asset. When the purpose of the self-use property is changed to earning rent or capital value adding, since the day of the change, the fixed asset or intangible asset is changed to investment property. During the change, the book value before the change is used as the account entering value after the change.
When the investment property is disposed, or permanently exits use and it is estimated that it is impossible to get economic interest from the disposal, derecognize the investment property. The amount of the disposal income of selling, transferring, scrapping or breaking the investment property after deducting its book value and the related taxes is counted into the current profit and loss.
15. Fixed assets
The fixed assets of the Group refer to the tangible assets that have the following characteristics at the
same time: produce commodities, provide labor, held for rental or operation management, the service life
exceed one year.
The fixed assets include housing and buildings, machinery equipment, transportation equipment, office equipment and others, and the cost when getting them is used as the value of account entry. The cost of the outsourced fixed assets includes the purchase price and related taxes such as the import duty etc., as well as the other expenditures directly belonging to the assets before making the fixed assets reach thee estimated usable status. The cost of the self-built fixed assets consists of the necessary expenditures before the assets reach the estimated usable status. For the fixed assets input by the investors, the value stipulated by the investment contract or agreement is used as the account entry value. However, if the value stipulated by the contract or agreement is not fair, the fair value is used to enter the account. For 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.
The subsequent expenditures related to the fixed assets include repair expenditures and update reconstruction expenditures etc. Those meeting the fixed assets confirmation conditions are counted into the cost of the fixed assets. For the replaced part, derecognize its book value. Those not meeting the fixed assets confirmation conditions are counted into the current profit and loss when arising.
Except the fixed assets already fully depreciated and used on, the Group counts and draws the depreciation for all the fixed assets. When counting and drawing depreciation, composite life method is adopted, and they are counted into the cost of current expenses of the related assets respectively according to their purposes. The classified depreciation life, estimated net ratio of remaining value and depreciation rate of the fixed assets of the Group are as follows:
||||
|-|-|-|
|Asset category subdivision|Depreciation life|Net salvage|
|Steel structure|30 years or the use right term,whichever is lower|5%|
|Reinforced concretestructure|25 years or the use right term,whichever is lower|5%|
|Masonry-concretestructure|20 years or the use right term,whichever is lower|5%|
|Steel structure|30 years or the use right term,whichever is lower|5%|
|Reinforced concretestructure|25 years or the use right term,whichever is lower|5%|
|Masonry-concretestructure|20 years or the use right term,whichever is lower|5%|
|——|5-20 years|5%|

||||
|-|-|-|
|Passenger car|5 years|5%|
|Production vehicle|5-8 years|5%|
|Vehicle accessoryequipment|5 years|5%|
|——|5 years|5%|
|——|5 years|5%|
|Optical cable|20 years|5%|
|Computer equipment|3-5 years|5%|
|Network equipment|5-10 years|5%|
|Safety equipment|3 years|5%|
|Terminal equipment|3 years|5%|
|Storage equipment|5 years|5%|
|Input and outputequipment|3 years|5%|
|Computer roomauxiliary equipment|5-8 years|5%|
|Video conferencesystem equipment|3 years|5%|
|Others|3-5 years|5%|
|——|5 years|5%|
|——|5-10 years|5%|

The Group rechecks the estimated service life, estimated net salvage and depreciation method of the fixed assets at the end of each year, and if changes arise, they will be treated as accounting estimation changes and handled.
When disposing the fixed assets cannot generate economic interest or it is estimated that economic interest cannot be generated through using or disposing the fixed assets, derecognize the fixed assets. The amount of the disposal income of selling, transferring, scrapping or breaking the fixed assets after deducting their book value and the related taxes is counted into the current profit and loss.
16. Construction in progress
The construction in progress is measured by the actually taking place cost. The self-run construction project is measured by the direct materials, direct salary and direct construction fee etc. The out-contracted construction project is measured by the payable project cost etc. The engineering cost of equipment installation project is determined by the value of the installed equipment, installation expenses and expenditures that have arisen for the project test run etc. The cost of construction in progress also includes the capitalized borrowing costs and profit or loss on exchange.
For the construction in progress, after the day when reaching the predetermined usable status, according to the construction budget, construction cost or project actual cost etc., the fixed assets or other long-term assets are carried over by the estimated value. Depreciation shall begin in the very next month. After handling the completion final settlement procedures, adjust the original value difference of the fixed assets. 17. Borrowing costs
The borrowing costs include the interest on borrowings, amortization of discount or premium, auxiliary expenses and balance of exchange arising due to foreign currency loans etc. The assets directly belonging to those meeting the capitalization conditions or the borrowing costs for production start to be capitalized when the assets expenditure has arisen, the borrowing costs have arisen and construction or production activities necessary for making the assets reaching the usable or sellable status have started. When the construction or the assets with the production meet the capitalization conditions reaches the estimated usable or sellable status, stop capitalization. The remaining borrowing costs are confirmed as expenses during the period when they arise.
The assets meeting the capitalization conditions refer to the assets such as fixed assets, investment property and inventories etc. that can only reach the estimated usable or sellable status after the construction or production activities of a long period of time (usually refers to over 1 year).
In the property development projects, the construction or production activities necessary for making the assets reach the usable or sellable status refer to getting the land use right of property development, and starting the project construction engineering (such as the pile foundation engineering or other material construction activities). The assets reaching the estimated usable or sellable status refer to the property projects getting the project completion inspection and acceptance record keeping receipt.
The amount of the interest expenses that actually arises in the current period of the special borrowing is capitalized after deducting the interest income got through depositing the unused loan into the bank or the investment income got through temporary investment. For the general loan, the capitalization amount is determined by the assets expenditure weighted average of the part of the accumulative assets expenditure
exceeding the special loan multiplied by the capitalization rate of the occupied general loan. The capitalization rate is calculated and determined according to the weighted average interest rate of general loan.
If the assets meeting the capitalization conditions have abnormal interruption in the construction or production process and the interruption time continuously exceed three months, suspend the capitalization of the borrowing costs, till the construction or production activities of the assets start again.
18. Intangible assets
The intangible assets of the Group include the land use right and software etc. got for constructing the self-use property. The land use right got for daily operation activities is checked as inventory. The intangible assets are measured by the actual cost when getting them. For the purchased intangible assets, the actually paid price and the related other expenditures are used as the actual cost. For the intangible assets input by the investors, the actual cost is determined by the value stipulated by the investment contract or agreement. However, if the value stipulated by the contract or agreement is not fair, the actual cost is determined by the fair value.
From the transfer start day, the land use right is amortized in average according to its transfer term. The software and other intangible assets are amortized in average by phase according to the estimated service life, income life prescribed by the contract, or the effective life prescribed by the law, whichever is the shortest. The amortization amount is counted into the related assets cost and current profit and loss by its benefit object.
The estimated service life and amortization method of the intangible assets with limited service life are reviewed at the end of each year. If changes arise, they are handled as accounting estimation changes. In each accounting period, review the estimated service life of the intangible assets with their service life uncertain. If there are evidences showing that the service life of the intangible assets is limited, estimate its service life and amortize within its estimated service life.
19. Impairment of non-financial long-term assets
The Group examines the long-term equity investment, fixed assets, construction in progress and the intangible assets with limited service life etc. on each balance sheet day. When there are the following signs, it shows that the assets may have impairment, and the Group will conduct impairment test. For the intangible assets with their goodwill and service life uncertain, no matter there are impairment signs or not, conduct impairment test at the end of each year. If it is difficult to test the recoverable amount of the single assets, test with the asset group or asset group portfolio of the assets as the foundation.
After the impairment test, if the book value of the assets exceeds its recoverable amount, the difference is confirmed as impairment loss. Once the impairment loss of the above-mentioned assets is determined, it can not be transferred back during the later accounting period. The recoverable amount of the assets refers to the net amount of the fair value less the disposal expense or the present value of the estimated future cash flow of the assets, whichever is higher.
The signs of impairment are as follows:
（1）The market price of the assets falls greatly in the current period, and the range is obviously higher than the estimated fall due to time lapse or normal use.
（2）The economic, technical or legal environment etc. of the enterprise operation and the market of the assets have significant changes in the current period or in the recent period, thus generating adverse impact on the enterprise.
（3）The market interest rate or the investment rate of return of the other markets has risen in the current period, thus influencing the enterprise calculating the discount rate of the present value of the estimated future cash flow of the assets, causing great fall of the recoverable amount of the assets.
（4）There are evidences showing that the assets are already old and out of date or its entity is already damaged.
（5）The assets are already or will be idle, terminate use or plan to dispose in advance.
（6）The evidences of the enterprise internal report show that the economic performance of the assets is already lower or will be lower than the expectation, for example, the net cash flow created by the assets or the operating profit (or loss) realized is far lower (or higher) than the estimated amount etc.
（7）There are other signs showing that the assets may already have impairment.
20. Goodwill
Goodwill is the difference between the equity investment cost or the enterprise merger cost under the non-same control and the share of the fair value of the identifiable net assets of the invested unit or purchased party on the getting day or purchase day that shall be enjoyed or got in the enterprise merger (the former is bigger than the latter).
The goodwill related to the subsidiary company is singly listed on the consolidated financial statement, and the goodwill related to the associated enterprise and cooperative enterprise is included in the book value of long-term equity investment.
21. Long-term deferred and prepaid expenses
The long-term deferred and prepaid expenses of the Group refer to the expenses with the amortization duration over one year (not including one year) that has been listed but shall be born in the current period and in the later periods, and such expenses are amortized in average within the period of benefit. If the items of the long-term deferred and prepaid expenses cannot make the later accounting period benefited, all the amortization value of the items not amortized is transferred into the current profit and loss.
22. Remuneration of the employees
The Group confirms the payable remuneration of the employees as liabilities during the accounting period when the employees provide service, and count it into the related assets cost and expenses by the benefit object of the employees providing service. The compensation offered due to terminating the labor relationship with the employees is counted into the current profit and loss.
The remuneration of the employees mainly includes the expenditures related to the service provided by the employees such as salary, bonus, subsidy, employee welfare expenses, social insurance expenses, housing fund, labor union expenses and employee education expenses etc.
If it is decided to terminate the labor relationship with the employees before the employee labor contract is due, or the suggestion of offering compensation is brought forward in order to encourage the employees to voluntarily accept the reduction, the Group has made formal the labor relationship termination plan or brought forward the voluntary reduction suggestion and will implement, and at the same time, the Group cannot unilaterally withdraw the termination of the labor relationship plan or reduction suggestion, the estimated liabilities generated due to terminating the labor relationship with the employees and offering compensation are counted into the current profit and loss.
23. Equity instrument
Equity instrument refers to the contract that can prove owning the remaining equity in the assets of the Group after deducting all the liabilities. The transaction expenses that have arisen in the merging party issuing the equity instrument in the enterprise merger offset the premium income of the equity instrument. If they are insufficient to offset, written down the retained income. For the remaining equity instrument, for the consideration received during then issuance, after deducting the transaction expenses, add theshareholders’ equity. The consideration paid for buying back the self-equity instrument and the transaction expenses reduce theshareholders’ equity. When issuing, buying back, selling or canceling the equity instrument, the profit and loss are not confirmed.
All kinds of distributions of the Group for the holding party of the equity instrument (not including the
stock dividend) reduce theshareholders’ equity. The Group does not confirm the change amount of the fair value of the equity instrument.
24. Estimated liabilities
When the businesses related to the contingencies such as external guarantee, trade acceptance discount, pending action or arbitration etc. meet the following conditions at the same time, the Group confirm them as liabilities: The obligation is the current obligation born by the Group. The implementation of the obligation may very possibly cause the economic interest flowing out of the enterprise. The amount of the obligation can be measured reliably.
Initial measurement is conducted for the estimated liabilities according to the best estimate of the expenditures needed for implementing the related current obligations, and the factors such as risks,
uncertainties and currency time value etc. related to the contingencies are considered comprehensively. If the impact of the currency time value is significant, the best estimate is determined after discounting the related future cash outflow. On each balance sheet day, the book value of the estimated liabilities is reviewed, and if there are changes, adjust the book value to reflect the current best estimate.
25. Revenue recognition principle
（1）Revenue recognition principles: business revenues of the Group mainly includes property development product sales revenue, rental income, property management fee income, public utility (power supply) income and construction contract income, and the revenue recognition principles are as follows:1） The revenue is recognized when the property development products meet the following conditions:A．The buying party and the selling party sign contract and have record kept at the land ministry.B．The property development products are completed and accepted qualified.
C．The Company receives all the housing purchase money of the client or get the right to collect all the housing purchase money (such as the written commitment letter of the bank agreeing to distribute the mortgage money).
D．When the housing delivering procedures are handled or it is regarded as the client accepts according to the conditions stipulated in the housing purchase contract.
2） Rental income: For the rental income of investment property, the rent stipulated in the contract or agreement in the periods of the lease term is confirmed as rental income by the straight-line method.
3） Public utility income: When the power supply service is already provided, the economic interest related to the power supply service can flow into the enterprise, and the related income and cost can be measured reliably, realization of the public utility income is confirmed.
4） Property management fee income: When the property management service is already provided, the economic interest related to the property management service can flow into the enterprise, and the related income and cost can be measured reliably, realization of the property management income is confirmed. 26. Construction contract
When the contract total income can be measured reliably, the economic interest related to the contract may very possibly flow into the Group, the actually arising contract cost can be clearly distinguished and reliably measured, and the contract completion progress and the cost that needs to arise for completing the contract can be reliably determined, the Group confirms the contract income and contract expenses by the completion percentage method on the balance sheet day. When adopting the completion percentage method, the contract completion progress is determined according to the proportion of the contract cost that has actually arisen accounting for in the contract estimated total cost.
When the result of the construction contract cannot be reliably estimated, if the contract cost can be recovered, the contract income is confirmed according to the actual contract cost that can be recovered, and the contract cost is confirmed as expense in the period when it arises. If the contract cost cannot be recovered, it shall be immediately confirmed as expense when arising, and the income is not confirmed.
The Group examines the construction contract at the end of the period, if the estimated total cost of the construction contract exceeds the estimated total income of the contract, draws loss provision, and confirm the estimated loss as the current expense.
27. Government subsidy
Government subsidy refers to the Group getting monetary assets or nonmonetary assets from the government for free.
The government subsidy is confirmed when the Group can meet the attached conditions and can receive.
If the government subsidy is monetary assets, measure by the actually received amount. For the subsidy allocated according to fixed quota standard, or when there are unambiguous evidences at the end of the period showing that it meets the related conditions prescribed by the financial support policies and it is estimated that the financial support capital can be received, measure by the amount that shall be received. If
the government subsidy is nonmonetary assets, measure by the fair value. If the fair value cannot be obtained reliably, measure by the notional amount (RMB 1 Yuan).
The government subsidy of the Group is divided into government subsidy related to the assets and government subsidy related to the income. The government subsidy related to the assets refers to the government subsidy got by the Group and used for constructing or forming in other modes the long-term assets. The government subsidy related to income refers to the government subsidy except the government subsidy related to the assets. If the subsidy object is not clearly prescribed in the government documents, the Group judges according to the above-mentioned principle.
The government subsidy related to the assets is confirmed as deferred income and averagely distributed and counted into the current profit and loss within the service life of the related assets. The government subsidy related to income and used for compensating the related expenses or losses during the later periods is confirmed as deferred income and counted into current profit and loss in the period when confirming the related expenses. The government subsidy used for compensating the related expenses or losses that have arisen is directly counted into current profit and loss.
28. Deferred income tax assets and deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities of the Group are calculated and confirmed according to the difference (temporary difference) between the tax base of the assets and liabilities and their book value. For the deductible loss and tax reduction that can reduce the taxable income in the later years according to the provisions of the tax law, the Group does not confirm the corresponding deferred income tax assets. For the temporary difference generated due to prepaid tax, the Group does not confirm the corresponding deferred income tax liabilities uniformly. On the balance sheet day, the deferred income tax assets and deferred income tax liabilities are measured by the applicable tax rate when taking back the assets or paying off the liabilities.
The Group confirms the deferred income tax assets generated from the deductible temporary difference with the taxable income that may very possibly be got and used to deduct the deductible temporary
difference as the limit. For the confirmed deferred income tax assets, when it is estimated that it is very possible that sufficient taxable income cannot be got to deduct the deferred income tax assets in the future period, the book value of the deferred income tax assets shall be written down. When it is very possible to get sufficient taxable income, the written-down amount is transferred back.
29. Lease
The Group divides rental into financing lease and operating lease on the rental start day.
Financing lease refers to the lease substantially transferring all the risks and remuneration related to the ownership of the assets. When the Group is the lessee, on the lease start day, the Group takes the fair value of the leased assets and the present value of the lowest rental payment amount on the lease start day, whichever is lower, as the account entering value of the financing rent-in fixed assets, takes the lowest rental payment amount as the account entering value of the long-term account payable, and records the difference between the two as unconfirmed financing expense.
Operatinglease refers to the other leases except the financing lease. The rent of the Group as the leasee is counted into the related assets cost or current profit and loss in the periods in the lease term by the straight-line method, and the rent of the Group as the lessor is confirmed as income in the periods in the lease term by the straight-line method.
30. Financial accounting of the income tax
Debt method based on balance sheet is adopted for the financial accounting of the income tax. The income tax expense includes the income tax of the year and deferred income tax. Besides counting the income tax of the year and deferred income tax related to the transactions and matters directly counted into theshareholders’ equity into theshareholders’ equity, as well as the book value of the adjustment goodwill of the deferred income tax generated in the enterprise merger, the remaining income tax of the year and deferred income tax expense or income is counted into the current profit and loss.
income tax of the year refers to the amount calculated and determined according to tax provisions that the enterprise shall pay to the tax department for the transactions and matters arising in the year, i.e. the income tax payable. Deferred income tax refers to the difference between the amount that shall be available at the end of the year of the deferred income tax assets and deferred income tax liabilities that shall be confirmed according to the debt method based on balance sheet and the originally confirmed amount. 31. Division information
The Group determines the operation divisions with the internal organization structure, management requirements and internal report system as the basis, and determines the report divisions with the operation divisions as the foundation. The operation division refers to the component that meets the following conditions at the same time: The component can generate income and expenditure incurred in the daily activities. The Company management can periodically evaluate the operation achievement of the components, so as to decide to allocate resources to it and evaluate its achievements. The Company can get the related accounting information such as the financial condition, operation achievements and cash flow etc. of the components.
The transfer price between the divisions is determined with reference to the market price, and the joint
expenses are allocated between the different divisions according to the income proportions except the part that cannot be reasonably allocated.
32. Accounting arrangement method of financial assets transfer and non-financial assets securitization businesses
If there is transfer of financial assets, judge according to the transfer condition of almost all the risks and remuneration on the related financial assets ownership. If they are all transferred, derecognize the corresponding financial assets. If there is no transfer and almost all the risks and remuneration on the related financial assets ownership are reserved, do not derecognize. If there is no transfer and almost all the risks and remuneration on the related financial assets ownership are not reserved, decide if derecognizing according to the degree of involving the control over the financial assets. If the control over the financial assets is given up, derecognize the financial assets. If the control over the financial assets is not given up, confirm the related financial assets according to the degree of continuing to get involved with the financial assets and confirm the related liabilities correspondingly. If the financial assets meet the overall derecognition, transfer the difference between the consideration received and the corresponding book value and count it into the current profit and loss. The accumulative change amount of the fair value of the related financial assets originally directly counted into the owner's equity is also transferred into the current profit and loss. If it meets partial transfer derecognition conditions, apportion the book value involving the overall of the
transferred financial assets according to their respective comparative fair values between the derecgnized part and the underecognized part. With the book value after the apportionment as the foundation, handle the part of the overall transfer to the partial transfer. If it does not meet the derecognition conditions, confirm the consideration received as a financial liability.
33. Explanations on the important accounting estimation
When compiling the financial statements, the management of the Group needs to utilize estimations and assumptions, which will generate impact on the application of the accounting policies and the amounts of assets, liabilities, income and expenses. The actual conditions may be different from these estimations. The management of the Group conducts continuous evaluation on the judgment on the key assumptions and uncertain factors that the estimations involve. The impact of the changes of the accounting estimations is confirmed in the period of change and future period.
There are important risks that will cause significant adjustment of the book value of the assets and liabilities in the future period in the following accounting estimations and key assumptions.
（1）Impairment of receivables
The Group measures the receivables by the amortized cost on the balance sheet day, so as to evaluate if
there is impairment condition, and evaluates the specific amount of the impairment loss when there is the impairment condition. The objective evidences of impairment include the interpretable data showing grate fall in the estimated future cash flow of the individual or portfolio receivables, and the interpretable data showing significant negatives in the financial condition of the debtor in the individual or portfolio receivables. If there are evidences showing that the value of the receivable price is already recovered, and it is related to the matters arising after confirming the loss objectively, transfer back the originally confirmed impairment loss.
（2）Inventory impairment provision
The Group periodically estimates the net realizable value of the inventories, and confirms inventory price fall loss for the difference between the inventory cost and the net realizable value (the former is higher than the latter). When evaluating the net realizable value of the inventories, the Group confirms with the amount of the estimated sales price with the estimated completion cost, the estimated sales expense and the taxes. When the actual sales price or cost expense is different from the previous estimation, the management will conduct corresponding adjustment on the net realizable value. Therefore, the result of estimating according to the existing experiences may be different from the later actual result, and the adjustment on the book value of the inventories in the balance sheet may be caused. Therefore, the amount of inventory price fall preparation may change along with the above-mentioned cause. The adjustment on the inventory price fall preparation will influence the profit and loss of the estimated change period.
（3）Accounting estimation of goodwill impairment preparation
The Group conducts impairment test on the goodwill each year. The recoverable amount of the asset group and asset group portfolio containing goodwill is the present value of the estimated future cash flow, and its calculation needs to adopt accounting estimation.
If the management revises the gross profit rate adopted in the calculation of the future cash flow of the asset group and asset group portfolio, and the gross profit rate after the revision is lower than the gross profit rate adopted at[resent, the Group needs to add counted and drawn impairment provision for the goodwill. If the management revises the pre-tax discount rate applied for the cash flow discount again, and the pre-tax discount rate after the revision is higher than the discount rate adopted at present, the Group needs to add counted and drawn impairment provision for the goodwill.
If the actual gross profit rate or pre-tax discount rate is higher or lower than the estimation of the management, the Group cannot transfer back the originally counted and drawn goodwill impairment loss.（4）Accounting estimation of fixed assets impairment provision
The Group conducts impairment test on the fixed assets such as housing and buildings and machinery equipment etc. with impairment signs on the balance sheet day. The recoverable amount of the fixed assets is the present value of the estimated future cash flow or the fair value of the assets less the disposal expenses, whichever is higher, and its calculation needs to adopt accounting estimation.
If the management revises the gross profit rate adopted in the calculation of the future cash flow of the asset group and asset group portfolio, and the gross profit rate after the revision is lower than the gross profit rate adopted at present, the Group needs to add counted and drawn impairment provision for the fixed assets. If the management revises the pre-tax discount rate applied for the cash flow discount again, and the pre-tax discount rate after the revision is higher than the discount rate adopted at present, the Group needs to add counted and drawn impairment provision for the fixed assets.
If the actual gross profit rate or pre-tax discount rate is higher or lower than the estimation of the management, the Group cannot transfer back the originally counted and drawn fixed assets impairment provision.
（5）Accounting estimation for the confirmation of the deferred income tax assets
Estimation of the deferred income tax assets needs estimating the taxable income and the applicable tax rate in the future years, and the realization of the deferred income tax assets is determined by if the Group may very possibly get sufficient taxable income. The changes of the future tax rate and the transfer-back time of the temporary difference also may influence the income tax expense (income) and the balance of the deferred income tax. The changes of the above-mentioned estimation may cause the important adjustment on the deferred income tax.
（6）Service life of the fixed assets and intangible assets
The Group reviews the estimated service life of the fixed assets and intangible assets at least at the end of each year. The estimated service life is determined by the management based on the historic experiences of the similar assets, with reference to the estimations commonly applied in the industry and combining the estimated technologies. When the previous estimation has significant changes, the depreciation expense and amortization expense in the future period are adjusted correspondingly.
III. Changes of the accounting policies and the accounting estimations
1. In this report period, the Group did not have the changes of the accounting policies.
2. In this report period, changes of the accounting estimations and their impact in this report period
In the implementation of the accounting estimations of the depreciation and amortization of the original fixed assets and investment property, the Company had the conditions of too broad selection of the depreciation life and estimated ratio of remaining value of the same category of assets caused by too extensive division of the assets categories, and the accounting estimations not conforming to the actual condition caused by big difference between the depreciation life and ratio of remaining value of the same categories of assets confirmed by the companies. In order to make the assets depreciation disposal nearer to the actual assets use condition, the accounting estimation on changing the depreciation of fixed assets and amortization of investment property was approved on the 11th Meeting of the 7th Board of Directors of the Company on March 14, 2014 and was approved by the resolution of the 15th Meeting of the 7th Board of Supervisors of the Company.
Condition of the change of the accounting estimation on the depreciation and amortization of the fixed assets and investment property this time:
1. Accounting estimation for the fixed assets
|||||
|-|-|-|-|
|Asset category subdivision|After the change|||
||Depreciation life|Net salvage|Depreciation life|
|Steel structure|30 years or the use right term,whichever is lower|5%|10-50 years|
|Reinforced concretestructure|25 years or the use right term,whichever is lower|5%|10-50 years|
|Masonry-concretestructure|20 years or the use right term,whichever is lower|5%|10-50 years|
|Steel structure|30 years or the use right term,whichever is lower|5%|10-50 years|
|Reinforced concretestructure|25 years or the use right term,whichever is lower|5%|10-50 years|
|Masonry-concretestructure|20 years or the use right term,whichever is lower|5%|10-50 years|
|——|5-20 years|5%|10- 20 years|
|Passenger car|5 years|5%|5-10 years|
|Production vehicle|5-8 years|5%|5-10 years|
|Vehicle accessoryequipment|5 years|5%|5-10 years|
|——|5 years|5%|5-10 years|
|——|5 years|5%|5-10 years|

|||||
|-|-|-|-|
|Optical cable|20 years|5%|5-10 years|
|Computer equipment|3-5 years|5%|5-10 years|
|Network equipment|5-10 years|5%|5-10 years|
|Safety equipment|3 years|5%|5-10 years|
|Terminal equipment|3 years|5%|5-10 years|
|Storage equipment|5 years|5%|5-10 years|
|Input and outputequipment|3 years|5%|5-10 years|
|Computer roomauxiliary equipment|5-8 years|5%|5-10 years|
|Video conferencesystem equipment|3 years|5%|5-10 years|
|Others|3-5 years|5%|5-10 years|
|——|5 years|5%|5-10 years|
|——|5-10 years|5%|5-10 years|

2. Accounting estimation for the investment property
|||||
|-|-|-|-|
|Asset category subdivision|After the change|||
||Depreciation life|Net salvage|Depreciation life|
|——|Remaining service life|0%|Remaining servicelife|
|Steel structure|30 years or the use right term,whichever is lower|5%|20 years|
|Reinforced concretestructure|25 years or the use right term,whichever is lower|5%|20 years|
|Masonry-concretestructure|20 years or the use right term,whichever is lower|5%|20 years|

This change of the accounting estimation on the depreciation and amortization of the fixed assets and investment property is implemented as of the day when the Board of Directors approves, causing an increase of RMB 3.28 million Yuan of the depreciation and amortization counted and drawn in this report period compared to before the change.
IV. Tax
||
|-|
|Taxation basis|
|Taxable income|
|Property sales income, property rentalincome etc.|
|Note 2Commodity sales income|
|Commodity sales income, power supplyNote 2income|
|Property sales income－with projectamount deducted|
|Acceptance amount of the land useright and the housing|
|70% of the original value of the housingNote 3or the rent income|
|Business tax (or paid VAT)|
|Business tax (or paid VAT)|

Note 1: According to the Tax Regulations of Hong Kong, the income tax rate for the Hong Kong subsidiary companies of the Company is16.5%, and the income tax rate applicable to the Company and the other subsidiary companies is25%.
Note 2: The VAT amount is the balance of the substituted money on VAT with the deductible input tax deducted, and the substituted money on VAT is calculated by the sales income amount and corresponding tax rate prescribed by the related tax laws.
Note 3: For the fixed assets housing and rental property of the Group, the property tax is paid by70%
original value of the book assets or the rental income multiplied by the prescribed tax rate. For the newly
built housing, after record keeping in the tax authority, property tax is exempted within three years.
V. Enterprise merger and consolidated financial statements
(I) Subsidiary companies
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Company type|Registration place|Businessnature|Registeredcapital(RMB 0,000Yuan)|Scope of business|Actual capitalcontributionamount at theend of theperiod (RMB0,000 Yuan)|Other itembalancesubstantiallyconstitutes thenet investmenton thesubsidiarycompany|Shareholdingproportion (%)|Votingpowerproportion (%)|Consolidatedstatementor not|Equity of the minorityshareholders at the endof the period|

Subsidiary companies got through enterprise merger under the same control
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|HongKong|Investment|HKD160,000|Investment|130,132.45|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Zhangzhou|Property|RMB 45,000|Property development and commercial housingsales|22,950.00|51.00|60.00|Yes|320,149,190.88|
|Limitedliabilitycompany|Zhangzhou|Propertymanagement|RMB 50|Property management, decoration, consultation,property equipment sales, repair, property rentaland commission sale|50.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Zhangzhou|Property|RMB 4,000|Property development and commercial housingsales|4,132.72|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Property|RMB300,000|Property development and commercial housingsales|355,147.40|100.00|100.00|Yes|Not applicable|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Company type|Registration place|Businessnature|Registeredcapital(RMB 0,000Yuan)|Scope of business|Actual capitalcontributionamount at theend of theperiod (RMB0,000 Yuan)|Other itembalancesubstantiallyconstitutes thenet investmenton thesubsidiarycompany|Shareholdingproportion (%)|Votingpowerproportion (%)|Consolidatedstatementor not|Equity of the minorityshareholders at the endof the period|
|Limitedliabilitycompany|Shenzhen|Property|HKD 4,742|Engage in the development and operation ofShekou T105-0114 section, rental andmanagement of own property|3384.98||65.07|55.56|Yes|42,770,405.86|
|Limitedliabilitycompany|Shenzhen|Power supply|RMB 5,700|Power supply and power sales|11,979.12||100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Metrologicalverification|RMB 150|Special metrological verification itemsdeveloped after the authorization of ShenzhenQuality and Technical Supervision (can onlyoperate after getting the authorization of thetechnical supervision department)|150.00||100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|Shenzhen|Propertymanagement|RMB 2,500|Property management, decoration, consultation,property equipment sales, repair, property rentaland commission sale|3,646.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Propertymanagement|RMB 1,120|Property management, decoration, consultation,property equipment sales, repair, property rentaland commission sale|1,765.96|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Propertymanagement|RMB 3,600|Engage in the development of Shekou SKN401section, build the business residence and theancillary facility|3,600.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Propertymanagement|RMB 200|Own property management|120.00|60.00|66.67|Yes|-1,791,110.23|

Subsidiary companies got through enterprise merger under the non same control
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|CaymanIslands|Investment|HKD 30,000|Investment holding|486,999.35|74.35|54.55|Yes|2,078,785,979.45|
|Limitedliabilitycompany|HongKong|Investment|HKD 1|Investment|0.81|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 1|Investment|0.81|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Tianjin|Property|RMB 10,000|Property development|30,055.00|100.00|100.00|Yes|Not applicable|
|Limitedliability|Tianjin|Property|RMB 30,000|Invest on the property industry with own funds|18,000.00|60.00|60.00|Yes|81,777,806.16|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|company||||||||||
|Limitedliabilitycompany|Tianjin|Property|RMB 3,000|Invest on the property, hi-tech, construction, andgarden greening industries with own funds|2,303.38|77.00|80.00|Yes|6,738,385.48|
|Limitedliabilitycompany|Harbin|Property|RMB 5,000|Property development， property management，housing agent, indoor decoration, invest onbusiness and the education industry, housingrental|8,025.00|50.00|50.00|Yes|8,741,752.72|
|Limitedliabilitycompany|Harbin|Property|RMB 2,000|Property development|1,700.00|85.00|60.00|Yes|40,169,934.95|
|Limitedliabilitycompany|Qingdao|Property|RMB 2,640|Property development and commercial housingsales|18,373.18|51.00|60.000|Yes|150,247,144.08|
|Limitedliabilitycompany|Shanghai|Property|RMB 1,000|Property development, indoor decorationservice, sales of building materials|1,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shanghai|Property|RMB 3,000|Property development and commercial housingsales|35,325.00|60.00|60.00|Yes|225,474,257.83|
|Limitedliabilitycompany|Kunming|Property|RMB 1,000|Property development and operation, sales ofcommercial housing, housing rental, decorationand repair, property broker–agent, propertymanagement|600.00|60.00|60.00|Yes|-12,974,019.99|
|Limitedliabilitycompany|Foshan|Property|RMB 1,000|Property development|10,510.00|51.00|60.00|Yes|88,026,068.28|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|Shenzhen|Hotel service|RMB 600|Engage in the hotel consultation service and trainall kinds of hotel employees, operate the guestroom, Chinese and western restaurants, laundry,entertainment and retail section|1,228.68|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Property|RMB100,000|Engage in property development and operationon the block with legal land use right|50,050.00|50.00|60.00|Yes|525,075,226.67|
|Limitedliabilitycompany|Shenzhen|Property|RMB 100|Property development|11,992.62|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Property|RMB 1000|Property development and operation, propertybroker, set up industry|11,755.00|51.00|60.00|Yes|130,903,395.64|
|Limitedliabilitycompany|Shenzhen|Trade|RMB 100|Electronic products such as TV, soundequipment, set top box and DVD player etc.,electric materials and tube stock|100.00|100.00|100.00|Yes|Not applicable|

Subsidiary companies got through other modes
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.0002|Investment|0.001|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.0002|Investment|0.001|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.0002|Investment|0.001|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.0002|Investment|0.001|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.0002|Investment|0.001|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.01|Investment|256,159.46|50.00|60.00|Yes|2,575,182,370.16|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.0002|Investment|126,767.90|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.01|Investment|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 0.01|Investment|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Investment|USD 5|Investment|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Holdingcompanyservice|USD 5|Holding company service|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|BritishVirginIslands|Holdingcompanyservice|USD 5|Holding company service|0.06|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|BritishVirginIslands|Holdingcompanyservice|USD 5|Holding company service|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 1|Investment|0.85|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|USD 0.01|Investment|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|USD 0.01|Investment|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|USD 0.0001|Investment|0.0006|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|USD 0.01|Investment|0.03|51.00|50.00|Yes|-5,158,155.65|
|Limitedliabilitycompany|HongKong|Investment|USD 0.01|Investment|0.03|51.00|50.00|Yes|-21,226.52|
|Limitedliabilitycompany|HongKong|Propertymanagement|HKD 1|Property management, decoration, consultation,property equipment sales, repair, property rentaland commission sale|1.10|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Propertymanagement|HKD 0.1|Cleaning service, engineering maintenance andrepair service, general trade|0.08|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|HongKong|Propertymanagement|HKD 10|Property management, sales of propertyequipment, on-site repair|8.11|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|0.01|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|0.01|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|0.01|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|USD 0.01|Investment|0.06|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 1|Investment|0.82|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 1|Investment|0.82|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|0.01|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.002|Investment|511,923.2|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|HongKong|Property|HKD 1|Property development, sales, and provide therelated after-sale service|100,874.8|50.00|75.00|Yes|991,799,886.38|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|66,301.18|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|4,762.20|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 1.00|Investment|0.79|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|0.008|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|0.008|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 0.01|Investment|0.008|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Holdingcompanyservice|HKD 1|Holding company service|0.55|70.00|60.00|Yes|-102,993.29|
|Limitedliabilitycompany|HongKong|Holdingcompanyservice|HKD 1|Holding company service|0.01|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|HongKong|Holdingcompanyservice|HKD 1|Holding company service|0.01|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Holdingcompanyservice|HKD 1|Holding company service|0.01|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|HongKong|Investment|HKD 1|Investment|0.01|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Beijing|Property|RMB 3,000|Property development and commercial housingsales|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Beijing|Propertymanagement|RMB 500|Operate and manage the pay parking of OnwardScience & Trade Centre, propertymanagement， decoration, consultation, propertyequipment sales, repair|718.53|80.00|80.00|Yes|6,350,745.38|
|Limitedliabilitycompany|Beijing|Property|RMB 35,000|Property development, indoor decorationservice, sales of building materials, technologyimport and export|17,500.00|50.00|60.00|Yes|1,193,684,560.53|
|Limitedliabilitycompany|Beijing|Property|RMB 38,000|Property development, sales of the commercialhousing after self development, developmentand construction of hotel, goods import andexport, technology import and export|22,800.00|60.00|60.00|Yes|67,134,699.43|
|Limitedliabilitycompany|Beijing|Property|RMB 1,000|Property development|700.00|70.00|57.14|Yes|2,970,820.14|
|Limited|Tianjin|Property|RMB 3,000|Property development, sales, and provide the|3,000.00|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|liabilitycompany||||related after-sale service||||||
|Limitedliabilitycompany|Tianjin|Property|RMB 4,000|Property development, sales, and provide therelated after-sale service|3,000.00|75.00|66.67|Yes|11,014,130.07|
|Limitedliabilitycompany|Tianjin|Property|RMB 3,000|Property development, sales of commercialhousing, housing rental, property service,property information consultation|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Tianjin|Property|RMB 60,000|Property development|60,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Dalian|Property|RMB 3,000|Property development|1,530.00|51.00|60.00|Yes|-1,052,050.06|
|Limitedliabilitycompany|Qingdao|Property|RMB 1,000|Property development and operationmanagement, property management,construction installation and constructiondecoration|1,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Qingdao|Property|USD 4,000|Development of the property projects on theblock (G-2012-030) east of No.48 line, south ofTongshun Road, west of Hexin Road, and northof Haiyue Road in the planning, sales and rentalof commercial housing, property service, indoorand outdoor engineering design and construction|27,406.10|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Rizhao|Property|RMB 3,000|Property development|3,000.00|100.00|100.00|Yes|Not applicable|
|Limited|Yantai|Property|USD 9,995|Property development|60,810.20|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|liabilitycompany||||||||||
|Limitedliabilitycompany|Yantai|Propertydevelopment|RMB 3,000|Property development and operation, indoor andoutdoor building decoration design andconstruction|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Hangzhou|Property|RMB 10,000|Property development|10,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Hangzhou|Property|RMB 3,000|Property development|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Nanjing|Propertymanagement|RMB 500|Property management, decoration, consultation,property equipment sales, repair, property rentaland commission sale|500.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Nanjing|Property|RMB 3,000|Property development, sales, and provide therelated after-sale service|12,787.78|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Nanjing|Property|RMB 3,000|Property development, property managementservice, project investment，property broker|123,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Nanjing|Propertydevelopment|RMB 3,000|Property development and operation, propertybroker, indoor and outdoor building decorationdesign and construction, garden engineeringdesign and construction, sales of buildingmaterials|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Nanjing|Propertydevelopment|RMB 3,000|Property development and operation, propertybroker, indoor and outdoor building decorationdesign and construction, garden engineering|21,100.00|70.00|60.00|Yes|9,001,560.32|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||design and construction, sales of buildingmaterials||||||
|Limitedliabilitycompany|Shanghai|Property|RMB 3,000|Property development and sales of buildingmaterials|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shanghai|Property|USD 62|Property management, decoration, consultation,property equipment sales, repair, property rentaland commission sale|784.86|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shanghai|Property|RMB 3,000|Property development and operation, indoordecoration service, sales of building materials|3,000.00|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|Shanghai|Property|RMB 3,000|Property development and operation, indoordecoration service, sales of building materials|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shanghai|Property|RMB 3,000|Property development, sales, and provide therelated after-sale service|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shanghai|Property|RMB 55,500|Property development and operation, rental ofown housing, property management, indoordecoration service|30,525.00|55.00|60.00|Yes|132,238,457.81|
|Limitedliabilitycompany|Shanghai|Property|RMB 3,000|Property development and operation, propertymanagement, rental of own housing, indoor andoutdoor decoration and design service,information consultation, parking lotmanagement service|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Suzhou|Property|RMB 3,000|Property development, operation, rental and sales|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Suzhou|Property|RMB 10,000|Property development, sales, and provide therelated after-sale service|6,000.00|60.00|60.00|Yes|110,148,502.76|
|Limitedliabilitycompany|Suzhou|Property|RMB 3,000|Property development and operation, propertyinformation consultation, housing rental, indoordecoration, property management, operation andmanagement of parking lot|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Suzhou|Property|USD 24,400|Engage in property development and sales in theblock accepted after approval, and provide therelated after-sale service|83,380.14|50.00|60.00|Yes|946,118,886.87|
|Limited|Suzhou|Property|RMB 3,000|Property development|3,000.00|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|liabilitycompany||||||||||
|Limitedliabilitycompany|Zhenjiang|Property|RMB 5,000|Property development|3,000.00|60.00|60.00|Yes|19,694,085.29|
|Limitedliabilitycompany|Zhenjiang|Property|USD 11,800|Property development, property managementservice, project investment, property broker|75,477.90|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Zhenjiang|Propertydevelopment|USD2,990|Property development and operation|10,470.10|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Changzhou|Property|RMB 3,000|Property development and operation, propertymanagement, rental of own housing, indoor andoutdoor decoration and design service, businessinformation consultation, parking lotmanagement service|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Changshu|Propertydevelopment|RMB 3,000|Property development and operation, propertyinformation consultation, indoor decoration|16,800.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Wuhan|Property|RMB 3,000|Property development, property managementservice, project investment, property broker|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Wuhan|Propertymanagement|RMB 500|Property management, decoration, consultation,property equipment sales, repair, property rentaland commission sale|500.00|100.00|100.00|Yes|Not applicable|
|Limitedliability|Wuhan|Property|USD 9,800|Property project development, sales and rental ofcommercial housing, property service, indoor|90,576.48|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|company||||and outdoor decoration engineering design andconstruction||||||
|Limitedliabilitycompany|Wuhan|Property|USD 9,800|Property project development, sales and rental ofcommercial housing, property service, indoorand outdoor decoration engineering design andconstruction|136,980.39|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Wuhan|Property|USD 7,906|Property project development, sales and rental ofcommercial housing, property service, indoorand outdoor decoration engineering design andconstruction|88,414.76|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Wuhan|Propertydevelopment|RMB 3,000|Property development and operation, sales andrental of commercial housing, indoor andoutdoor building decoration design andconstruction|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Xi’an|Propertydevelopment|USD9,500|Property development and operation|58,446.19|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chengdu|Property|RMB 5,000|Property development, project investment,property broker, property management service|5,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chengdu|Property|RMB 1,000|Property development, property managementservice, project investment, property broker|1,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chengdu|Property|RMB 1,000|Property development, project investment,property broker, property management service|1,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliability|Chengdu|Property|RMB 1,000|Property development|1,000.00|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|company||||||||||
|Limitedliabilitycompany|Guizhou|Property|RMB 3,000|Property investment and sales, property brokerservice, property service, indoor and outdoordecoration engineering design and construction|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Guizhou|Property|RMB 2,000|Property investment, housing rental, propertyservice, indoor and outdoor decorationengineering design and construction|2,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Guizhou|Propertymanagement|RMB 300|Property management, sales of propertyequipment, on-site repair|300.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chongqing|Property|RMB 3,000|Property development, rental of own housing|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chongqing|Property|RMB 3,000|Property development, indoor decorationservice, sales of building materials|3,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chongqing|Property|USD 53,400|Property development and rental, sales andmanagement|355,690.25|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chongqing|Property|RMB 2,000|Property development|2,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Chongqing|Property|HKD 23,200|Property development|182,950.56|100.00|100.00|Yes|Not applicable|
|Limitedliability|Xiamen|Property|RMB 5,000|Property development, housing rental and sales,property management, building engineeringconstruction, indoor decoration service,|2,500.00|50.00|60.00|Yes|91,197,812.33|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|company||||construction equipment rental||||||
|Limitedliabilitycompany|Xiamen|Property|RMB 5,000|Property development, housing rental and sales,property service, building engineeringconstruction, indoor decoration service, sales ofbuilding materials|5,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Xiamen|Propertydevelopment|RMB 2,000|Property development and operation, businessinformation and enterprise managementconsultation|2,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Foshan|Property|RMB 1000|Property development, sales, and provide therelated after-sale service|600.00|60.00|60.00|Yes|3,447,887.38|
|Limitedliabilitycompany|Foshan|Property|USD 12,700|Property development, sales, and provide therelated after-sale service|47,869.00|50.00|60.00|Yes|592,401,099.96|
|Limitedliabilitycompany|Foshan|Property|USD 21,980|Property development, sales, and provide therelated after-sale service|162,681.08|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Foshan|Property|RMB 3,000|Property development, construction, sales, rentalof own property, property management|1,500.00|50.00|60.00|Yes|34,366,606.67|
|Limitedliabilitycompany|Foshan|Property|USD10,989.80|Develop and construct on the “Yangfanggang”<Fo Nan (Pai) 2010-001, 002 and 003. Block ofNongchan Village Committee, Shishan TownOffice, Nanhai District, Foshan, rental and sales|33,859.57|50.00|60.00|Yes|432,150,274.28|
|Limitedliability|Foshan|Property|RMB 1,000|Property development|1,000.00|100.00|100.00|Yes|N130.ot applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|company||||||||||
|Limitedliabilitycompany|Foshan|Property|RMB 550|Property development|550.00|55.00|60.00|Yes|2,983,469.15|
|Limitedliabilitycompany|Foshan|Property|RMB 1,050|Property development|1,050.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Foshan|Propertydevelopment|USD8,700|Property development and operation, sales andrental of commercial housing|8,700.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Guangzhou|Property|RMB 10,000|Property development and commercial housingsales|3,400.00|34.00|51.00|Yes|71,774,616.33|
|Limitedliabilitycompany|Guangzhou|Property|RMB 20,000|Property operation, rental and sales in the specificblocks|44,373.75|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Guangzhou|Propertydevelopment|RMB 1,000|Property development and operation|1,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Zhuhai|Property|RMB 800|Property development and commercial housingsales|800.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Zhuhai|Property|RMB 800|Property development and commercial housingsales|408.00|51.00|60.00|Yes|13,971,317.43|
|Limitedliability|Zhuhai|Propertydevelopment|RMB 3,000|Property development and operation|3,000.00|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|company||||||||||
|Limitedliabilitycompany|Nanning|Property|RMB 10,000|Property development|1400.00|70.00|60.00|Yes|3,657,909.54|
|Limitedliabilitycompany|Qionghai|Property|RMB200,000|Development of tourist projects, businessprojects, hotel, hotel management|24,000.00|60.00|60.00|Yes|799,378,666.05|
|Limitedliabilitycompany|Sanya|Property|RMB 10,000|Property development|10,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Property|RMB 20,000|Property development, property managementservice, project investment, property broker|188,336.75|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Property|RMB 2,500|Rental of own property|2,412.29|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Property|RMB 2000|Property development|1,400.00|70.00|71.43|Yes|6,374,447.44|
|Limitedliabilitycompany|Shenzhen|Investment|RMB 1,000|Set up industry, domestic business|1,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Propertyagent|RMB 200|Property operation, information consultation|200.00|100.00|100.00|Yes|Not applicable|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|Shenzhen|Hotel service|RMB 100|Golf indoor course, property rental, Chinese andwestern food/shopping mall|100.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Investment|RMB 1,000|Invest to set up industry, domestic business|510.00|51.00|60.00|Yes|-5,218,503.95|
|Limitedliabilitycompany|Shenzhen|Property|RMB 15,000|Building engineering construction, decorationengineering design and construction, elevator, airconditioning engineering maintenance, sales ofbuilding materials|15,000.00|100.00|100.00|Yes|Not applicable|
|Limitedliabilitycompany|Shenzhen|Property|RMB 18,000|Business property development andconstruction, management, rental, invest to set upindustry|9,180.00|51.00|60.00|Yes|55,237,901.37|
|Limitedliabilitycompany|Shenzhen|Hotelmanagement|RMB 3,000|Hotel management, engage in the exportbusiness of goods and technologies etc.|1,531.40|51.00|60.00|Yes|-16,888,311.52|
|Limitedliabilitycompany|Shenzhen|Property|RMB 3,000|Engage in property development and operation,property broker, property management, indoorand outdoor decoration engineering design andconstruction|1,500.00|50.00|60.00|Yes|3,393,374.73|
|Limitedliabilitycompany|Shenzhen|Property|RMB 1,000|Property development|510.00|51.00|60.00|Yes|4,714,468.17|
|Limitedliabilitycompany|Shenzhen|Propertymanagement|RMB 150|Property management and its supportingservices, purchase and sale of building materials,decoration materials, sanitary ware,environmental protection products and officesupplies|150.00|100.00|100.00|Yes|Not applicable|

||||||||||
|-|-|-|-|-|-|-|-|-|
|Limitedliabilitycompany|Shenzhen|Businesspropertyoperation andmanagement|RMB 200|Rental and management of own property|21,578.72|100.00|100.00|Yes|
|Limitedliabilitycompany|Shenzhen|Businesspropertyoperation andmanagement|RMB 200|Rental and management of own property|20,222.18|100.00|100.00|Yes|
|Limitedliabilitycompany|Shenzhen|Businesspropertyoperation andmanagement|RMB 200|Rental and management of own property|6,838.11|100.00|100.00|Yes|
|Limitedliabilitycompany|Shenzhen|Businesspropertyoperation andmanagement|RMB 200|Rental and management of own property|30,843.64|100.00|100.00|Yes|
|Limitedliabilitycompany|Shenzhen|Businesspropertyoperation andmanagement|RMB 200|Rental and management of own property|69,874.45|100.00|100.00|Yes|

Note 1: The Company directly or indirectly holds50% equity of such company. Because the Company has majority voting power in the Board of Directors of such company, the Company can implement control over its financial and operation decision-making, and the Company brings it into the consolidation scope of the consolidated financial statement.
Note 2: In January 2014, the subsidiary company of the Company Huitai Investment Co., Ltd., Weirong Co., Ltd., Jiali Co., Ltd., Biyuan Co., Ltd., Mao' an Investment Co. Ltd. and the subsidiary company of the Company Huipeng Real Estate Development Co. Ltd respectively contributed to establish Foshan Yiyun Xiaode Real Estate Development Co. Ltd and hold100% equity capital of such companies, and the Company brings such companies into the consolidation scope of the consolidated financial statements. Because Weirong Co., Ltd. holds100% equity capital of Guanghong Investment Co., Ltd., Jiali Co., Ltd. holds100% equity capital of Huihui Investment Co., Ltd., and Biyuan Co., Ltd. holds100% equity capital of Junying Development Co., Ltd., the Company brings such companies into the consolidation scope of the consolidated financial statements.
Note 3: In March 2014, the subsidiary company of the Company Guangyu Co., Ltd. contributed 7,000 HKD to establish Huoju Investment Co., Ltd., and holds70% equity capital of it, the Company brings such company into the consolidation scope of the consolidated financial statements.
Note 4: In March 2014, the Company contributed RMB 30 million Yuan to establish Yantai China Merchants Property Co., Ltd., holds100% equity capital of it, and the Company brings such company into the consolidation scope of the consolidated financial statements.
Note 5: In April 2014, the subsidiary company of the Company China Merchants Property Development (Nanjing) Co., Ltd. contributed RMB 30 million Yuan to establish Nanjing China Merchants Ningsheng Property Co., Ltd., holds100% equity capital of it, and the Company brings such company into the consolidation scope of the consolidated financial statements.
Note 6: In May 2014, the subsidiary company of the Company China Merchants Property Development (Nanjing) Co., Ltd. contributed RMB 21 million Yuan to establish Nanjing China Merchants Xingsheng Property Co., Ltd., holds70% equity capital of it, and the Company brings such company
into the consolidation scope of the consolidated statements.
Note 7: In April 2014, the subsidiary company of the Company Huoju Investment Co., Ltd. contributed$29.9 million USD to establish Zhenjiang Huoju Proeprty Development Co., Ltd., holds100% equity capital of it, and the Company brings such company into the consolidation scope of the consolidated statements.
Note 8: In March 2014, the subsidiary company of the Company China Merchants Property Development (Suzhou) Co., Ltd. contributed RMB 30 million Yuan to establish Changshu China Merchants Xicheng Property Co., Ltd., holds100% equity capital of it, and the Company brings such company into the consolidation scope of the consolidated financial statements.
Note 9: In January 2014, the subsidiary company of the Company China Merchants Property Development (Wuhan) Co., Ltd. contributed RMB 30 million Yuan to establish Wuhan China Merchants Property Gutian Property Co., Ltd., holds100% equity capital of it, and the Company brings such company into the consolidation scope of the consolidated statements.
Note 10: In April 2014, the subsidiary company of the CompanyMao’an Investment Co., Ltd. contributed$95 million USD to establishXi’anMao’an Property Co., Ltd., holds100% equity capitalof it, and the Company brings such company into the consolidation scope of the consolidated financial statements.
Note 11: In April 2014, the subsidiary company of the Company China Merchants Property (Zhangzhou) Co., Ltd. contributed RMB 20 million Yuan to establish Xiamen China Merchants Yonghuafu Property Co., Ltd., holds100% equity capital of it, and the Company brings such company into the consolidation scope of the consolidated statements.
Note 12: In February 2014, the subsidiary company of the Company China Merchants Property (Guangzhou) Co., Ltd. contributed RMB 10 million Yuan to establish Guangzhou Evian Property Co., Ltd., holds100% equity capital of it, and the Company brings such company into the consolidation scope of the consolidated statements.
Note 13: IN April 2014, the subsidiary company of the Company China Merchants Property (Shenzhen) Co., Ltd. contributed RMB 30 million Yuan to establish Zhuhai Evian Property Co., Ltd., holds100% equity capitalof it, and the Company brings such company into the consolidation scope of the consolidated financial statements.
Note 14: The Company originally held51% equity of Nanning China Merchants Haotian Property Co., Ltd. In March 2014, the Company signed equity transfer agreement with Guangxi Haotian Property Co., Ltd., and received19% equity of Nanning China Merchants Haotian Property Co., Ltd. held by it. After the equity transfer, the Company holds70% equity capital of Nanning China Merchants Haotian Property Co., Ltd., the control power on such company by the Company did not change, and brings such company into the consolidation scope of the consolidated financial statements.
Note 15: The Company originally held100% equity of Shenzhen Pingshan China Merchants Property Co., Ltd. In March 2014, the Company signed capital increase and share expansion agreement with Shenzhen TCL Property Co., Ltd. After the capital increase and share expansion was finished, the Company actually contributes RMB 14 million Yuan, and holds70% equity of Shenzhen Pingshan China Merchants Property Co., Ltd. The control power on such company by the Company did not change, and the Company brings such company into the consolidation scope of the consolidated statements.
Note 16: In April 2014, the subsidiary company of the Company Shenzhen China Merchants Properties and Investment Co., Ltd. respectively contributed RMB 2 million Yuan and the fair value determined by assets appraisal on June 30, 2013 by relevant property to establish Shenzhen Keda Phase 2 Property Management Co., Ltd., Shenzhen Digital Building Property Management Co., Ltd., Shenzhen Keda Property Management Co., Ltd., Shenzhen Garden City Property Management Co., Ltd. and Shenzhen Shekou New Times Property Management Co., Ltd., holds100% equity capital of such companies, and the Company brings such companies into the consolidation scope of the consolidated statements. (II) Changes of the consolidation scope of the consolidated statements in this period
1. Condition of the companies newly brought into the consolidation scope in this period
||||
|-|-|-|
|Cause for being newlybrought into theconsolidation scope|Shareholdingproportion(%)|Net assets at the end of theperiod|
|Newly established|100.00|29,839,383.67|
|Newly established|100.00|29,986,997.99|
|Newly established|70.00|30,005,201.05|
|Newly established|100.00|104,349,795.78|
|Newly established|100.00|167,362,341.36|
|Newly established|100.00|30,005,788.96|
|Newly established|100.00|587,493,424.21|
|Newly established|100.00|15,489,553.95|
|Newly established|100.00|423,722,663.93|
|Newly established|100.00|423,961,579.06|
|Newly established|100.00|415,312,593.60|
|Newly established|100.00|1,013,003,093.63|
|Newly established|100.00|1,105,143,501.38|
|Newly established|100.00|9,999,791.26|
|Newly established|100.00|537,476,139.38|
|Newly established|100.00|29,942,294.23|
|Newly established|70.00|-6,707.61|
|Newly established|100.00|-5,394.29|

||||
|-|-|-|
|Cause for being newlybrought into theconsolidation scope|Shareholdingproportion(%)|Net assets at the end of theperiod|
|Newly established|100.00|-6,707.61|
|Newly established|100.00|-5,393.86|
|Newly established|100.00|1,205,980.51|
|Newly established|100.00|-15,647.01|
|Newly established|100.00|-17,668.42|
|Newly established|100.00|-68,910.75|

2. Condition of the companies not brought into the consolidation scope in this period
None
(III) Enterprise merger taking place in this period
None
VI. Notes on the main items of the consolidated financial statements
1. Monetary capital
||||||
|-|-|-|-|-|
|Amount at the end of the period|||||
|Original currency|Conversionexchange rate|Converted to RMB|Original currency|Conversionexchangerate|
|||250,111.99|||
|249,264.54|1.0000|249,264.54|276,988.69|1.0000|
|1,067.58|0.7938|847.45|1,067.58|0.7862|
|||16,229,601,295.27|||
|13,825,744,242.99|1.0000|13,825,744,242.99|17,767,740,456.75|1.0000|
|300,219,842.32|0.7938|238,314,510.83|528,893,956.92|0.7862|
|351,960,496.27|6.1528|2,165,542,541.45|620,901,559.62|6.0969|
|||2,356,098,619.80|||
|2,356,098,619.80|1.0000|2,356,098,619.80|2,271,049,363.95|1.0000|
|||18,585,950,027.06|||

 Note: The balance of the building sales money received in advance supervised by the Advance Funding Regulations in the other monetary capital is RMB 2,356,098,619.80 Yuan.
2. Notes receivable
（1） Categories of notes receivable
||
|-|
|Amount at the end of the period|
|7,680,171.60|
|7,680,171.60|

3. Accounts receivable
（1） Classification of accounts receivable
Amount at the end of the period
||||
|-|-|-|
|Book balance|||
|Amount|Proportion(%)|Amount|
|6,028,220.80|4.23|6,028,220.80|
|7,370,364.80|5.18|5,706,966.70|
|77,594,654.21|54.50||
|51,376,655.20|36.09|4,435,538.42|
|128,971,309.41|90.59|4,435,538.42|
|142,369,895.01|100.00|16,170,725.92|

Continued:
Amount at the beginning of the period
||||
|-|-|-|
|Book balance|||
|Amount|Proportion(%)|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|

1） Accounts receivable with significant single amount and single counted and drawn bad debt provision at the end of the period
||||
|-|-|-|
|Book balance|Bad debt amount|Counted and drawnproportion (%)|
|6,028,220.80|6,028,220.80|100.00|
|6,028,220.80|6,028,220.80|100.00|

2） Accounts receivable with single amount not significant but with single counted and drawn bad debt provision at the end of the period
||||
|-|-|-|
|Book balance|Bad debtamount|Counted anddrawnproportion(%)|
|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|
|87,997.20|87,997.20|100.00|
|23,500.50|23,500.50|100.00|
|7,370,364.80|5,706,966.70||

3） Accounts receivable with counted and drawn bad debt provision by the aging of accounts in the portfolio
||||||
|-|-|-|-|-|
|Amount at the end of the period|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Proportion(%)||Amount|Proportion(%)|
|46,864,162.65|91.22|1,238,242.85|26,350,713.60|86.5|
|1,231,878.36|2.40|246,375.67|987,689.67|3.24|
|659,388.59|1.28|329,694.30|545,088.56|1.79|
|2,621,225.60|5.10|2,621,225.60|2,580,280.82|8.47|

||||||
|-|-|-|-|-|
|Amount at the end of the period|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Proportion(%)||Amount|Proportion(%)|
|51,376,655.20|100.00|4,435,538.42|30,463,772.65|100.00|

（2） The receivables at the end of the period do not include the debts of the shareholder units holding over5% (including5%) voting power shares of the Group.
（3） Overall aging of the accounts receivable
||||||
|-|-|-|-|-|
|Amount at the end of the period|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Proportion (%)||Amount|Proportion (%)|
|113,279,689.80|79.57|1,945,899.35|64,241,914.34|69.49|
|15,061,180.01|10.58|2,038,893.77|14,878,368.52|16.09|
|2,185,474.99|1.54|2,005,780.70|2,469,486.24|2.67|
|11,843,550.21|8.32|10,180,152.10|10,856,846.32|11.75|
|142,369,895.01|100.00|16,170,725.92|92,446,615.42|100.00|

（4） Condition of the top 5 units of the amount of the accounts receivable
|||||
|-|-|-|-|
|Unit name|Relationshipwith theCompany|Amount|Aging|
|Client 1|Third party|18,740,782.28|Within 1year|
|Client 2|Third party|12,036,783.55|1-2 years|
|Client 3|Third party|9,250,000.00|Within 1year|
|Client 4|Third party|7,800,000.00|Within 1year|

|||||
|-|-|-|-|
|Unit name|Relationshipwith theCompany|Amount|Aging|
|Client 5|Third party|6,028,220.80|Over 3 years|
|||53,855,786.63||

 4. Advance payment
（1） Aging of the advance payment
||||
|-|-|-|
|Amount at the end of the period|||
|Amount|Proportion (%)|Amount|
|4,909,314,396.07|99.98|2,815,020,465.70|
|401,180.00|0.01|947,042.09|
|494,410.19|0.01||
|4,910,209,986.26|100.00|2,815,967,507.79|

（2） Condition of the top 5 of advance payment:
||||
|-|-|-|
|Relationshipwith theCompany|Amount|Aging|
|Third party|1,800,000,000.00|Within 1year|
|Third party|1,210,210,000.00|Within 1year|
|Third party|927,616,000.00|Within 1year|
|Third party|487,500,000.00|Within 1year|
|Third party|237,990,304.00|Within 1year|
||4,663,316,304.00||

（3） The advance payment at the end of the period does not include the debts of the shareholder units holding over5% (including5%) voting power shares of the Group.
5. Other receivables
（1） Classification of the other receivables
Amount at the end of the period
||||
|-|-|-|
|Book balance|||
|Amount|Proportion(%)|Amount|
|11,270,000.00|0.11|11,270,000.00|
|13,313.37|0.00|3,994.01|
|10,588,847,517.41|99.45||
|46,790,866.42|0.44|14,559,831.02|
|10,635,638,383.83|99.89|14,559,831.02|
|10,646,921,697.20|100.00|25,833,825.03|

Continued:
Amount at the beginning of the period
||||
|-|-|-|
|Book balance|||
|Amount|Proportion(%)|Amount|
|11,270,000.00|0.08|11,270,000.00|
|13,313.37|0.00|3,994.01|
|13,657,904,323.94|99.63||
|40,250,394.52|0.29|14,280,161.65|

Amount at the beginning of the period
||||
|-|-|-|
|Book balance|||
|Amount|Proportion(%)|Amount|
|13,698,154,718.46|99.92|14,280,161.65|
|13,709,438,031.83|100.00|25,554,155.66|

1） Other receivables with significant single amount and single counted and drawn bad debt provision at the end of the period
||||
|-|-|-|
|Book balance|Bad debtmount|Counted anddrawnproportion (%)|
|11,270,000.00|11,270,000.00|100.00|
|11,270,000.00|11,270,000.00||

2） Other receivables with counted and drawn bad debt provision by the aging of accounts in the Portfolio
||||||
|-|-|-|-|-|
|Amount at the end of the period|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Proportion(%)||Amount|Proportion(%)|
|27,173,883.54|58.08|700,996.61|20,748,666.96|51.55|
|4,650,416.05|9.94|930,083.21|4,905,850.56|12.19|
|4,075,631.28|8.71|2,037,815.65|3,608,723.45|8.96|
|10,890,935.55|23.27|10,890,935.55|10,987,153.55|27.30|
|46,790,866.42|100.00|14,559,831.02|40,250,394.52|100.00|

（2） The other receivables at the end of the period do not include the debts of the shareholder units holding over5% (including5%) voting power shares of the Company.
（3） Condition of the top 5 units of the amount of the other receivables
|||||
|-|-|-|-|
|Relationshipwith theCompany|Amount|Aging|Proportionaccounting forin the sum ofthe otherreceivables(%)|
|Third party|1,282,584,095.33|Within3 years|12.05|
|Third party|1,200,000,000.00|Within3 years|11.27|
|Cooperativeenterprise|1,135,556,115.92|Within1 year|10.67|
|Cooperativeenterprise|823,296,461.50|Within1 year|7.73|
|Third party|679,614,004.29|Within2 years|6.38|
||5,121,050,677.04||48.10|

（4） Receivables from the related party
|||
|-|-|
|Relationship with thecompany|Amount|
|Cooperativeenterprise|1,135,556,115.92|
|Cooperativeenterprise|823,296,461.50|
|Cooperativeenterprise|673,692,974.37|
|Associatedenterprise|85,021,300.00|
|Associatedenterprise|11,270,000.00|
||2,728,836,851.79|

 6. Inventories
（1） Classification of the inventories
||||||
|-|-|-|-|-|
|Amount at the end of the period|||||
|Book balance|Price fallpreparation|Book value|Book balance|Price fall preparation|
|83,974,102,131.38||83,974,102,131.38|70,028,577,041.98||
|7,417,708,700.65|168,720,862.38|7,248,987,838.27|8,609,017,171.77|185,161,833.73|
|7,927,904.51||7,927,904.51|7,513,712.18||
|8,159,851.34|162,981.66|7,996,869.68|16,724,360.24|162,981.66|
|91,407,898,587.88|168,883,844.04|91,239,014,743.84|78,661,832,286.17|185,324,815.39|

（2） Inventory composition
||||
|-|-|-|
|Number at thebeginning of theperiod|Increase amount inthis period|Decrease amount inthis period|
|70,028,577,041.98|22,059,227,207.73|8,085,502,118.33|
|8,609,017,171.77|8,085,502,118.33|9,305,010,589.45|
|7,513,712.18|21,836,006.56|21,421,814.23|
|16,724,360.24|1,976,263.48|10,540,772.38|
|78,661,832,286.17|30,168,541,596.10|17,422,475,294.39|

 A. The property development cost is as listed below:
|||||
|-|-|-|-|
|Constructionstart time|Estimatedcompletion|Estimatedtotal|Balance at thebeginning of the period|

|||||
|-|-|-|-|
||time|investment(RMB 0,000Yuan)||
|November2008|May 2017|507,456|259,174,212.36|
|December2011|December2014|448,505|501,183,199.19|
|May 2014|September2017|515,859||
|May 2011|February2015|42,487|158,906,079.57|
|January 2007|July 2014|359,494|517,394,155.19|
|August 2012|October 2015|672,668|2,111,257,001.68|
|December2013|December2015|130,925|540,833,533.26|
|May 2013|October 2014|45,593|203,325,256.40|
|April 2012|July 2014|140,367|933,152,636.23|
|June 2014|March 2016|178,287||
|March 2014|September2020|308,068||
|April 2013|August 2014|20,941|148,301,132.07|
|May 2011|December2015|621,044|2,981,543,426.67|
|December2012|December2015|335,945|2,193,241,119.30|
|February2013|September2017|300,031|775,718,949.71|
|March 2014|December2015|163,971||
|March 2011|December2014|89,050|579,401,636.17|
|March 2012|March 2014|45,234|388,413,553.83|
|March 2013|December2015|152,557|994,018,019.59|
|June 2013|April 2015|87,076|458,605,748.21|

|||||
|-|-|-|-|
|March 2014|April 2016|86,950||
|March 2010|November2015|184,214|1,104,701,524.85|
|May 2011|June 2015|101,979|438,413,354.96|
|October 2010|December2014|303,342|1,619,057,055.04|
|December2012|October 2014|146,328|1,178,422,820.66|
|May 2006|December2014|187,254|1,410,089,918.17|
|May 2014|September2015|139,119||
|May 2014|April 2016|261,706||
|February2014|January 2016|100,507||
|June 2010|December2014|44,205|97,506,634.50|
|May 2010|December2020|332,501|1,078,851,560.65|
|March 2011|July 2015|102,873|630,252,483.86|
|August 2013|June 2016|49,041|151,347,356.23|
|March 2011|June 2014|116,476|299,438,877.21|
|May 2011|March 2014|141,783|837,957,021.38|
|March 2013|August 2015|91,571|657,446,722.92|
|July 2011|April 2014|99,183|861,018,328.37|
|March 2012|December2015|373,771|1,857,220,454.61|
|April 2014|August 2016|346,296||
|May 2014|October 2015|113,128||
|November2014|April 2017|201,482|262,616.00|
|May 2011|December2019|1,281,749|3,426,326,531.72|

|||||
|-|-|-|-|
|August 2011|June 2015|425,195|1,845,235,291.40|
|January 2013|December2015|230,070|929,185,752.65|
|October 2012|August 2016|90,972|205,316,405.59|
|July 2012|June 2016|209,175|576,351,888.05|
|April 2012|January 2015|275,371|1,904,618,663.66|
|February2014|October 2016|121,826||
|December2009|January 2014|151,667|795,320,613.02|
|December2012|May 2016|104,739|616,713,478.66|
|September2012|December2015|103,052|701,264,446.80|
|March 2012|November2014|81,385|645,448,074.30|
|February2013|July 2015|99,920|276,038,549.14|
|January 2013|January 2016|208,088|51,583,724.98|
|July 2009|April 2017|670,181|996,703,463.16|
|February2014|May 2016|54,633||
|April 2014|November2015|90,010||
|March 2014|March 2016|132,229||
|June 2014|March 2017|87,571||
|October 2013|April 2016|210,869|878,602,934.91|
|April 2014|January 2016|433,870||
|September|August 2015|508,410|139,621,217.13|

|||||
|-|-|-|-|
|2013||||
|December2012|September2014|300,168|194,687,704.32|
|August 2011|September2014|146,022|1,343,002,124.56|
|September2013|September2016|260,631|1,401,881,905.84|
|February2011|August 2014|6,918|53,526,164.81|
|May 2011|August 2014|292,370|2,012,634,209.09|
|February2015|January 2018|69,754|269,113,953.75|
|November2011|December2016|735,678|3,917,668,541.84|
|September2014|July 2016|169,415|37,556,658.80|
|April 2013|November2015|322,408|1,575,860,527.71|
|June 2013|March 2016|211,045|1,067,217,206.78|
|February2014|August 2016|20,117||
|July 2013|February2016|1,203,461|2,834,590,034.27|
|March 2013|March 2014|600|5,742,046.60|
|December2011|July 2014|94,264|759,733,888.03|
|May 2013|May 2015|113,969|15,922,583.76|
||||11,162,125.15|
||||55,455,087,099.32|
|August 2014|October 2021|923,625|2,659,778,476.22|
|May 2015|October 2018|347,581|556,342,750.32|
|July 2014|August 2015|141,881||
|July 2014|October 2016|223,211||

|||||
|-|-|-|-|
|January 2014|October 2016|139,119|880,000,000.00|
|February2014|March 2017|261,706|1,763,690,803.37|
|October 2014|June 2016|84,465||
|August 2014|December2016|107,665||
|September2014|September2016|143,158||
|July 2015|January 2019|180,884||
|February2014|November2015|163,971|870,387,261.21|
|March 2014|April 2016|86,950|341,150,180.95|
|September2014|October 2016|161,755||
|April 2015|June 2019|297,514||
|July 2014|September2016|165,979||
|May 2015|September2019|48,497|49,562,123.13|
|February2014|January 2016|100,507|690,774,166.67|
|July 2014|September2018|354,945|1,217,517,401.97|
|July 2014|April 2016|227,465|922,306,172.00|
|January 2015|September2019|315,324|769,788,038.50|
|February2015|November2016|72,493||
|November2015|September2017|72,966||
|March 2015|March 2017|90,029|341,064,823.18|
|July 2014|December2021|1,008,855||
|March 2014|September2020|308,068|1,253,365,941.20|
|July 2014|March 2017|207,916||
|December|December|141,523|368,300,700.00|

|||||
|-|-|-|-|
|2014|2017|||
|April 2014|July 2016|43,387|135,743,591.10|
|December2014|July 2016|32,758|149,055,852.75|
|July 2014|July 2022|447,534|829,914,940.82|
|July 2014|December2017|290,000|774,746,719.27|
||||14,573,489,942.66|
||||70,028,577,041.98|

 B. The property development products are as listed below
|||||
|-|-|-|-|
|Completiondate|Amount at thebeginning of the period|Borrowing party inthis period|Lending party in thisperiod|
|March 2010|91,987,334.55|48,107,194.04|2,810,792.10|
|November2012|137,479,076.86|110,657,792.16|111,979,223.74|
|August 2013|100,448,188.61|76,180,983.97|100,447,881.63|
|June 2011|27,219,418.97|||
|April 2013|64,447,223.17|20,000,000.00|59,332,229.34|
|August 2012|146,820,760.37||51,829,812.98|
|October 2012|169,749,194.87||2,822,910.34|
|June 2013|14,459,901.01||3,077,254.05|
|November2009|1,907,351.03|||
|October 2013|149,427,578.53||27,076,885.72|
|June 2014|0|600,848,214.29|271,576,512.18|
|March 2013|45,539,301.62|695,850,236.17|614,617,112.76|

|||||
|-|-|-|-|
|December2013|1,120,333,242.89||134,866,894.44|
|October 2010|6,380,500.81|||
|May 2012|371,540,730.88|385,945,153.87|514,937,635.15|
|December2009|9,701,439.23|2,395,668.49|2,395,668.49|
|November2010|1,332,115.33|17,974.80|1,350,090.13|
|June 2012|1,702,085.31|615,366.79|613,372.06|
|May 2013|55,737,048.06||14,580,614.33|
|May 2013|924,237.55|1,124,766.64|1,122,797.98|
|June 2011|439,566,442.73|235,872,193.16|93,229,084.28|
|January 2012|907,904,549.76||72,794,282.64|
|December2010|36,353,144.39|329,685,278.61|336,569,398.68|
|December2011|27,751,486.20|||
|June 2013|77,627,006.75||15,431,197.68|
|December2011|8,779,485.23||3,560,879.01|
|December2011|7,416,942.42|||
|June 2013|47,233,773.83||6,922,604.59|
|June 2006|2,656,378.89|||

|||||
|-|-|-|-|
|December2004|1,439,657.00|||
|November2013|65,873,559.18||13,989,663.49|
|June 2014|127,018,694.10|308,375,663.96|167,327,061.26|
|December2012|154,964,402.02|837,957,021.38|805,964,634.76|
|April 2014|0|910,313,509.12|793,014,715.26|
|December2012|171,699,732.21|540,192,598.50|382,478,746.95|
|November2009|81,463,579.24|||
|September2012|83,898,484.18|2,675,982.86|26,772,993.12|
|December2010|7,596,679.02||1,881,275.16|
|April 2014|-|296,138,704.84|296,138,704.84|
|September2012|69,466,590.37|||
|November2012|23,093,954.26|||
|June 2013|74,584,020.48|44,030,751.72|3,929,094.85|
|March 2012|283,791,082.74|21,571,078.63|31,662,727.71|
|January 2014||900,145,423.41|668,517,286.66|
|June 2013|73,218,513.77|||
|July 2012|31,015,918.92||5,507,931.10|
|June 2012|287,097,817.69||74,534,995.57|

|||||
|-|-|-|-|
|May 2010|12,752,916.61|||
|January 2010|15,965,500.83||60,256.86|
|June 2014|0|161,195,257.72|156,454,244.75|
|September2013|903,252,545.76||761,695,106.56|
|April 2011|31,762,681.09||266,503.81|
|January 2012|134,281,275.62||102,678,730.48|
|September2012|45,066,560.38||8,694,495.23|
|August 2011|128,155,225.06||37,073,583.22|
|October 2012|78,676,109.74||77,646,838.88|
|June 2013|959,345,916.00||848,773,875.21|
|November2013|219,160,941.21||47,032,042.76|
|October 2010|1,063,834.85|||
|June 2013|20,277,468.26|||
|June 2014|0|5,742,046.60|5,742,046.60|
|January 2012|280,919,862.26||173,294,471.17|
|August 2012|53,870,232.20||51,360,550.24|
|October 2009|13,440,925.00||13,440,925.00|
|June 2013||80,726,859.07||

|||||
|-|-|-|-|
|May 2011|2,478,894.64||2,478,894.64|
|September2013|98,363,670.23|3,212,747.24||
|January 2014|0|1,465,923,650.29|1,302,653,059.01|
||1,533,987.00|||
||8,609,017,171.77|8,085,502,118.33|9,305,010,589.45|

（3） Inventory price fall preparation
|||||
|-|-|-|-|
|Amount at thebeginning of theperiod|Increase in thisperiod|Decrease in this period||
|||Transfer back|Othertransfer-out|
|185,161,833.73|||16,440,971.35|
|162,981.66||||
|185,324,815.39|||16,440,971.35|

 Note 1: According to the market condition of the previous years, the subsidiary company of the Company Shanghai Jingyuan Property Development Co., Ltd. counted and drew survival price fall provision of RMB 207,957,544.04 Yuan for the Shanghai Sheshan Longyuan Project developed by it. The accumulative amount of the impairment loss counted and drawn due to carry-over sales matching resale in the previous year is RMB 22,795,710.31 Yuan. In this period, the impairment loss counted and drawn due to carry-over sales proportion resale is RMB 16,440,971.35 Yuan.
(4) The accumulative capitalized interest expenditure in the property development cost is RMB 2,271,026,762.57 yuan, and the interest expenditure counted into the property development cost in
this period is RMB 382,434,129.99 Yuan.
(5) The inventories used for mortgage are as follows:
A. The subsidiary company of the Company Qingdao Zhongrunde Automobile Trade Co., Ltd. got a loan of RMB 166,500,000.00 Yuan with the land of China Merchants Zhongrunde Business Garden Phase 1 (the corresponding land use right certificate is Qing Fang Di Quan Shi Zi No.20081844) and the construction in process (the corresponding ownership certificate No. is Qing Fang Di Jian Shi Zi No.201274753) as the mortgage, and RMB 54,900,000.00 will be due within one year, the company got a loan of RMB 70,000,000.00 Yuan with the land of China Merchants Zhongrunde Airport Business Garden Phase 2 (the corresponding ownership certificate No. is Qing Fang Di Quan Zi No.201448169) as the mortgage, and RMB 11,725,000.00 will be due within one year.
B. The subsidiary company of the Company Tianjin China Merchants Taida Investment Co., Ltd. got a loan of RMB 97,528,563.46 Yuan from the bank with the Land Certificate No. of Fang Di Zheng Jin Zi No.114051200160 as the mortgage, and the loan will be due within one year.
(6) Up till June 30, 2014, the land reserve area of the Group is 4.6679 million square meters, and the land cost amount is RMB 13,577,917,212.71 Yuan.
7. Non-current assets falling due in one year
|||
|-|-|
|Amount at the end ofthe period|Amount at thebeginning of theperiod|
||4,175,229.58|
||4,175,229.58|

8. Other current assets
|||
|-|-|
|Amount at the end of theperiod|Amount at the beginning ofthe period|
|4,031,956,604.01|3,547,427,010.52|
|26,714,229.36|2,770,929.08|
|4,058,670,833.37|3,550,197,939.60|

9. Long-term equity investment
(1) Classification of long-term equity investment
||
|-|
|Amount at the end of the period|
|1,778,740,853.66|
|1,778,740,853.66|
|1,778,740,853.66|

（2）Long-term equity investment checked by the equity method
|||||||||
|-|-|-|-|-|-|-|-|
|Checkingmethod|Investment cost|Balance at the beginning of the period|Increase and decrease change|Balance at the endof the period|Shareholdingproportion intheinvested unit|Votingpowerproportion inthe investedunit|Countedanddrawnimpairmentprovision in thisperiod|
|Equitymethod|350,000,000.00|313,093,571.68|1,790,223.60|314,883,795.28|51.00|50.00||
|Equitymethod|66,660,000.00|217,515,645.59|1,033,030.02|218,548,675.61|33.33|33.33||
|Equitymethod|196,000,000.00|163,856,555.45|519,909.20|164,376,464.65|49.00|49.00||
|Equitymethod|6,750,000.00|104,079,030.05|0.00|104,079,030.05|45.00|45.00||
|Equitymethod|42,010,652.00|93,775,993.21|21,431,084.01|115,207,077.22|40.00|40.00||
|Equitymethod|60,000,000.00|56,329,128.55|-1,436,463.06|54,892,665.49|20.00|20.00||
|Equitymethod|30,000,000.00|29,025,146.81|-879,099.38|28,146,047.43|100.00|34.00||
|Equitymethod|14,000,000.00|13,439,089.52|-78,469.54|13,360,619.98|70.00|50.00||
|Equitymethod|2,500,000.00|3,191,981.20|485,749.78|3,677,730.98|50.00|50.00||

||||||||
|-|-|-|-|-|-|-|
|Equitymethod|490,000.00|2,490,529.24|11,156.31|2,501,685.55|49.00|49.00|
|Equitymethod|500,000.00|500,000.00|0.00|500,000.00|50.00|50.00|
|Equitymethod|50,000,000.00|655,896,945.76|-200,106,779.04|455,790,166.72|50.00|50.00|
|Equitymethod|6,258,825.01|0.00|0.00|0.00|34.00|34.00|
|Equitymethod|25,484,900.00|0.00|0.00|0.00|49.00|49.00|
|Equitymethod|60,290,742.27|-|60,290,432.35|60,290,432.35|49.00|49.00|
|Equitymethod|90,435,878.47|-|90,435,568.55|90,435,568.55|49.00|49.00|
|Equitymethod|89,832,961.50|298.75|89,832,662.75|89,832,961.50|49.00|49.00|
|Equitymethod|45,217,932.30|298.75|45,217,633.55|45,217,932.30|49.00|49.00|
|Equitymethod|50,000,000.00|-|-||50.00|50.00|
|Equitymethod|-|-|17,000,000.00|17,000,000.00|34.00|34.00|
||1,186,431,891.55|1,653,194,214.56|125,546,639.10|1,778,740,853.66|||

（3）Investment on the associated enterprises and cooperative enterprises
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Shareholdingproportion oftheenterprise|Votingpowerproportionof theenterprise inthe investedunit|Total amount of theassets at the end of theperiod|Total amount ofliabilities at the end ofthe period|Total amount of netassets at the end of theperiod|Sum of operatingincome in this period|

I. Cooperative enterprises
|||||||
|-|-|-|-|-|-|
|70.00|50.00|19,391,481.99|304,881.91|19,086,600.08|-|
|50.00|50.00|5,062,866.04|6,769,945.70|-1,707,079.66|-|
|50.00|50.00|652,287,843.69|672,924,222.36|-20,764,180.67|-|
|34.00|34.00|4,231,189,664.60|4,390,199,247.57|-159,009,582.97|-|
|50.00|50.00|17,908,463.17|10,771,117.72|7,137,345.45|12,596,913.32|
|100.00|34.00|2,405,146,847.10|2,380,599,648.79|24,547,198.31||

 II. Associated enterprises
|||||||
|-|-|-|-|-|-|
|50.00|50.00|1,739,796,000.88|1,222,631,872.76|517,164,128.12|1,263,070,845.58|
|51.00|50.00|728,824,800.66|160,096,188.73|568,728,611.93|26,389,377.64|
|49.00|49.00|6,293,884.50|25,590,515.03|-19,296,630.53|-|

|||||||
|-|-|-|-|-|-|
|20.00|20.00|1,820,504,455.78|1,563,615,876.54|256,888,579.24||
|49.00|49.00|660,268,974.78|324,806,801.99|335,462,172.79|18,749,757.87|
|49.00|49.00|5,335,486.94|291,681.56|5,043,805.38|4,190,336.50|
|45.00|45.00|238,439,464.58|7,074,131.79|231,365,332.79|-|
|33.33|33.33|807,001,148.14|144,319,005.68|662,682,142.46|18,643,738.50|
|49.00|49.00|123,157,319.18|123,107,497.81|49,821.37||
|49.00|49.00|184,706,839.19|184,629,018.93|77,820.26||
|49.00|49.00|92,354,665.87|92,288,755.49|65,910.38||
|49.00|49.00|183,453,805.17|183,422,954.29|30,850.88||
|40.00|40.00|778,544,946.75|225,448,917.00|553,096,029.32|128,926,127.36|
|34.00|34.00|51,007,553.70|8,000.00|50,999,553.70||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
10. Investment property
Investment property measured with cost
Unit: RMB Yuan
||||
|-|-|-|
|Book balance at thebeginning of theperiod|Increase in thisperiod|Decrease in thisperiod|
|7,081,694,024.82|99,761,921.84|51,593,155.79|
|4,619,714,535.01|88,335,288.51|40,033,771.32|
|2,461,979,489.81|11,426,633.33|11,559,384.47|
|1,419,849,690.94|118,302,251.94|6,039,143.31|
|1,171,893,770.58|87,450,019.00|5,805,147.67|
|247,955,920.36|30,852,232.94|233,995.64|
|5,661,844,333.88|||
|3,447,820,764.43|||
|2,214,023,569.45|||
|-|-|-|
|-|-|-|
|-|-|-|
|5,661,844,333.88|||
|3,447,820,764.43|||
|2,214,023,569.45|||

 (1) In the investment property added in this period, the amount transferred in from inventories is RMB 26,400,589.46 Yuan, and the increase of accumulative depreciation and accumulative amortization in this period is the counted and drawn amount in this period.
(2) Up till June 30, 2014, there was no investment property used for mortgage.
(3) Up till June 30, 2014, investment property with the net value of RMB 2,836,182,386.46 Yuan of the Group did not have the certificate of title, mainly including Zhangzhou
Ziweiyuan Phase 1, Jingshan Villa Phase 8, Meilun Apartment, Chuanwei Square ,
Chuanhou Square andChina Merchants Sqare etc. For 10 assets with the net value of
RMB 81,946,690.80 Yuan, partial data is lost due to long history, we are now
negotiating with the related departments to handle, and the other assets certificate of
title are being handled.
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
11. Fixed assets
（1）Condition of the fixed assets
Unit: RMB Yuan
|||||
|-|-|-|-|
|Amount at thebeginning of theperiod|Transfer-in inthis period|Increase in thisperiod|Decrease inthis period|
|2,422,132,988.62|21,764,215.32|20,894,196.85|72,087,336.29|
|1,875,320,557.09|21,764,215.32||60,847,860.65|
|315,079,590.79||13,740,626.17|460,514.77|
|92,297,631.00||4,689,892.41|2,132,580.50|
|139,435,209.74||2,463,678.27|8,646,380.37|
||Added in thisperiod|Counted anddrawn in thisperiod||
|383,711,997.07|764,338.51|82,124,734.55|13,933,379.08|
|121,026,820.32|764,338.51|37,767,906.19|6,182,371.14|
|155,336,824.02||28,986,761.15|363,261.26|
|47,442,026.52||8,225,328.88|1,595,812.15|
|59,906,326.21||7,144,738.33|5,791,934.53|
|2,038,420,991.55||||
|1,754,293,736.77||||
|159,742,766.77||||
|44,855,604.48||||
|79,528,883.53||||
|2,038,420,991.55||||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|1,754,293,736.77|
|159,742,766.77|
|44,855,604.48|
|79,528,883.53|

（1）Among all the fixed assets added in this period, the amount transferred in from the investment property is RMB 21,764,215.32.
（2）Up till June 30, 2014, the Group had 12 housing and buildings with a net value of RMB 11,541,443.84 Yuan without certificate of title, and the certificate of title are being handled.
12. Construction in process
（1） Condition of the construction in process
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Balance at the end of the period|||Balance at the beginning of the period|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Transformer|||||||
||99,326,975.54||99,326,975.54|97,696,226.79||97,696,226.79|
|substation project|||||||
|Construction|||||||
||2,936,043.39||2,936,043.39|2,936,043.39||2,936,043.39|
|project|||||||
|Reconstruction of|||||||
||4,586,781.10||4,586,781.10|4,263,308.18||4,263,308.18|
|the training base|||||||
|Total|106,849,800.03||106,849,800.03|104,895,578.36||104,895,578.36|

（2）Change conditions of the major construction in process projects
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Project name||Budget||Balance at the|Increase inthis period|Transferredinto fixedassets|Otherdecreases|Balanceat the end ofthe period|
|||||beginning of the|||||
|||||period|||||
||Transformer|214,000,000.00|97,696,226.79||1,630,749|||99,326,975.54|
||substation||||||||
||project||||||||
||Construction|1,587,565,000.00|2,936,043.39|||||2,936,043.39|
||project||||||||
||Reconstructio|7,363,308.18|4,263,308.18||323,473|||4,586,781.10|
||n of the||||||||
||training base||||||||

Continued:
||||||||
|-|-|-|-|-|-|-|
|Project name|Proportion of theproject input in thebudget|Project progress|Accumulativeamount of theinterestcapitalization|incl. theinterestcapitalizationamount in thisperiod|Interestcapitalizationrate in thisperiod|Capital source|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||
|-|-|-|-|-|
|Transformer|46.41||Completed and|Self-raised|
|substation|||having the record||
|project|||kept||
|Construction|0.18||Cost in the|Self-raised|
|project|||early stage||
|Reconstruction|62.29|Cost in theearly stage||Self-raised|
|of the training|||||
|base|||||

13. Intangible assets
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item|||Book balance at the|Increase in thisperiod||Decrease in thisperiod||Book balance at theend of the period|
||||beginning of the||||||
||||period||||||
||Original|566,949,237.65||12,233,384.47||10,436,783.66||568,745,838.46|
||price||||||||
||Land use right||560,127,109.65||11,559,384.47||10,436,783.66|561,249,710.46|
||Software||6,822,128.00||674,000.00|||7,496,128.00|
||Accumulative|24,500,586.23||9,447,688.15||0.00||33,948,274.38|
||amortization||||||||
||Land use right||21,427,208.41||8,452,526.86|||29,879,735.27|
||Software||3,073,377.82||995,161.29|||4,068,539.11|
||Net Book|542,448,651.42||||||534,797,564.08|
||value||||||||
||Land use right||538,699,901.24|||||531,369,975.19|
||Software||3,748,750.18|||||3,427,588.89|
||Impairment||||||||
||provision||||||||
||Land use right||||||||
||Software||||||||
||Book value||542,448,651.42|||||534,797,564.08|
||Land use right||538,699,901.24|||||531,369,975.19|
||Software||3,748,750.18|||||3,427,588.89|

(1): In the intangible assets added in this period, the amount transferred in from the investment property is RMB 11,559,384.47.
(2) The decrease of the intangible assets this period is due to the transfer from land usage right of rental property to investment property.
14. Goodwill
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Impairment|
||Balance at the|||||
|||Increase in this|Decrease in this|Balance at the end|provision at the|
|Name of the invested unit|beginning of the|||||
|||period|period|of the period|end of the|
||period|||||
||||||period|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|China Merchants Land Co., Ltd.|159,560,861.23|159,560,861.23|

The Group confirms the impairment loss of the goodwill asset group with the difference between the present value of the estimated future cash net flow of the goodwill asset group and the Book value of the asset group. After the impairment test, the goodwill did not have impairment.
15. Long-term deferred and prepaid expenses
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item|||Amount at the|Increase amountin this period|||Amortization|Other|Amount at theend of the period||
||||beginning of the||||amount in this|decrease|||
||||period||||period|amounts|||
||Improvement expenditure for|198,031,614.61||3,197,612.06||10,313,425.85|||190,915,800.82||
||the operation and rental of the||||||||||
||fixed assets||||||||||
|Others|||59,637,228.12||11,658,701.67||18,162,228.47|||53,133,701.32|
||Total||257,668,842.73||14,856,313.73||28,475,654.32|-||244,049,502.14|

 16. Deferred income tax assets and deferred income tax liabilities
（1）Details of the confirmed deferred income tax assets and deferred income tax liabilities
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item|||Balance at the end of the||Balance at the beginning|
||||period||of the period|
||deferred income tax assets:|||||
||Land VAT drawn in advance||555,395,607.56||740,221,155.30|
||Subsidiary company evaluation value|464,699,868.61||-||
||Noteadding|||||
||Expense drawn in advance||2,222,872.21||195,213.25|
||Estimated liabilities||0.00||2,618,340.03|
||Bad debt provision of the accounts|964,760.31||444,284.36||
||receivable|||||
||Bad debt provision of the other|4,244,618.01||4,617,710.75||
||receivable|||||
||Other long-term asset amortization||3,580,077.90||3,580,077.90|
||Drawn education fund and advertisement|5,790,627.28||5,790,627.28||
||fee exceeding the tax law standard|||||
||Others||6,396,117.51||12,790,471.82|
||Total||1,043,294,549.39||770,257,880.69|
||Deferred income tax liabilities:|||||
||Dividend corporate income tax drawn in|93,864,160.28||108,596,697.05||
||Noteadvance|||||
||Total||93,864,160.28||108,596,697.05|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
（2）Details of the unconfirmed deferred income tax assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item||Balance at the end of the period|||Balance at the beginning|
||Item||Balance at the end of the period||of the period|
||Deductible temporary|237,183,089.90||620,494,424.87||
||difference||237,183,089.90|||
||Deductible loss||2,410,009,080.70||1,880,447,683.61|
||Total||2,647,192,170.60||2,500,942,108.48|

（3）The deductible losses of the unconfirmed deferred income tax assets will be due in the following years
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Year||Number at the end of the|Number at the beginning of the|Remark||
||Year|period|period||Remark|
||2014|9,070,705.50|9,070,705.50|||
||2015|73,616,726.44|73,616,726.44|||
||2016|181,139,035.93|187,868,641.92|||
||2017|736,182,148.92|743,689,981.13|||
||2018|866,196,217.64|866,201,628.62|||
||2019|543,804,246.27|-|||
||Total|2,410,009,080.70|1,880,447,683.61|||

（4） Details of the taxable difference and the deductible difference items
||||||
|-|-|-|-|-|
|Item|||Amount of temporary difference||
||||End of the period|Beginning of the period|
||Taxable difference item||||
||Dividend corporate income|1,192,026,119.49||1,,51,843,070.09|
||tax drawn in advance||||
||Subtotal||1,192,026,119.49|1,251,843,070.09|
||Deductible difference items||||
|Land VAT drawn in advance||2,221,582,430.24||2,960,884,621.18|
||Subsidiary investment|1,858,799,474.44|||
||property evaluation value||||
||Noteadding||||
||Advance drawing expense||8,891,488.84|780,853.00|
||Estimated liabilities||-|10,473,360.10|
||Bad debt provision of the|3,859,041.24||1,777,137.44|
||accounts receivable||||
||Bad debt provision of the|16,978,472.04||18,470,842.98|
||other receivables||||
||Other long-term assets|14,320,311.60||14,320,311.60|
||amortization||||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||
|-|-|-|-|-|
|Drawn education fund and|23,162,509.11||23,162,509.11||
|advertisement fee exceeding|||||
|the tax law standard|||||
|Others||25,584,470.05||51,161,887.35|
|Subtotal||4,173,178,197.56||3,081,031,522.76|

 Note: As of V. (I) Subsidiary companies Note 16 says, the subsidiary of The Company,
China Merchants Property Development set up subsidiaries by investment properties.
Within TheCompany’s scope, the difference of investment cost and theasset’s book value
can be deducted by the temporary difference between tax base and tax expense, thereby the
difference is recognized as deferred tax asset.
17. Details of the assets Impairment provision
|||||
|-|-|-|-|
|Amount at thebeginning of theperiod|Increase inthis period|Decrease in this period||
|||Transfer back|OtherTransfer-out|
|41,135,956.27|1,429,149.73|540,855.74|19,699.31|
|185,324,815.39|||16,440,971.35|
|226,460,771.66|1,429,149.73|540,855.74|16,460,670.66|

Note: For the details of the other transfer-out in this period of the inventory price fall preparation, see VI. 6 (3) Details of the inventory price fall preparation.
18. Short-term loan
||
|-|
|Amount at the end of the period|
|600,000,000.00|
|2,825,000,000.00|
|3,425,000,000.00|

 Note: The subsidiary company of the Company Shenzhen China Merchants Construction Co., Ltd. borrowed RMB 600,000,000.00 Yuan from the bank, and the Company provided the guarantee.
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
19. Notes payable
||
|-|
|Balance at the end of the period|
|33,679,222.89|
|1,616,433.20|
|35,295,656.09|

 All the notes payable will be due by December 31, 2014.
20. Accounts payable
（1） Accounts payable
||
|-|
|Balance at the end of the period|
|6,319,825,047.37|
|6,347,427,544.45|
|327,528,894.81|
|309,791,186.77|
|112,192,520.77|
|13,416,765,194.17|
|1,159,131,244.94|

 Note: Payment for acquisition of equity is the equity transfer money of RMB 191,878,894.81 Yuan that shall be paid to the original shareholder by the company for purchasing Tianjin Guojun Investment Co.Ltd.,equity transfer money of RMB 70,650,000.00 Yuan that shall be paid to the original shareholder by the subsidiary company of the Company China Merchants Property (Shenzhen) Co., Ltd. for purchasing Shanghai Fengyang Property Development Co., Ltd., and equity transfer money of RMB 65,000,000.00 Yuan that shall be paid by the subsidiary company of the Company China Merchants Property (Shenzhen) Co., Ltd. to the original shareholder for purchasing Shenzhen China Merchants Runde Proeprty Co., Ltd.（2） The large-amount accounts payable with the aging exceeding one year are as
follows:
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Amount at the endof the period|Age|Cause fornon-payment|
|181,243,826.62|1-2 years|The project is notsettled|
|99,036,642.00|1-2 years|The project is notsettled|
|90,326,471.87|1-2 years|The project is notsettled|
|70,650,000.00|Over 3 years|Not meeting thepaymentcondition|
|65,000,000.00|2-3 years|Not meeting thepaymentcondition|
|48,468,561.07|1-2 years|The project is notsettled|
|47,277,863.80|1-2 years|The project is notsettled|
|41,616,804.73|1-2 years|The project is notsettled|
|39,300,000.00|1-2 years|Not meeting thepaymentcondition|
|33,122,150.40|Over 3 years|Not meeting thepaymentcondition|
|31,181,711.86|1-2 years|The project is notsettled|
|30,242,829.89|2-3 years|The project is notsettled|
|28,621,925.00|1-2 years|The project is notsettled|
|25,516,828.37|1-2 years|The project is notsettled|
|18,122,174.38|2-3 years|The project is notsettled|
|17,353,157.47|1-2 years|The project is notsettled|
|16,677,806.93|2-3 years|The project is notsettled|
|15,007,514.80|1-2 years|The project is notsettled|
|14,501,632.33|Over 3 years|The project is notsettled|
|14,440,288.97|Over 3 years|The project is notsettled|
|12,726,129.83|1-2 years|The project is notsettled|
|12,408,865.23|1-2 years|The project is notsettled|
|952,843,185.55|||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
（3） Payables to the shareholder units holding over5% (including5%) voting power shares of the Group at the end of the period
||
|-|
|Number at the end of the period|
|3,452,900,000.00|

21. Accounts collected in advance
(1) Accounts collected in advance
||
|-|
|Amount at the end of the period|
|39,791,073,409.80|
|2,702,325,732.57|

Note: The accounts collected in advance are mainly building sales money collected in advance, and the accounts collected in advance not carried over with the aging over one year is the advance building sales money of the buildings not completed and accepted.
(2) The accounts collected in advance at the end of the period do not include the money of the shareholder units holding over5% (including5%) voting power shares of the Group.
(3) Prepayment for properties:
||||
|-|-|-|
|Amount at the end ofthe period|Amountat thebeginning of theperiod|Estimatedcompletiontime|
|2,694,278,272.00|2,513,448,128.72|2014|
|21,630,756.00|483,021,009.00|Completed|
|932,499,817.00|612,503,010.00|2014|
|216,869,219.00|4,041,470.00|2015|
|4,512,334.00|8,167,103.00|Completed|
|539,680,130.02|254,743,936.00|2014|
|142,725,870.94|64,133,341.74|2014|
|52,745,507.00|336,531,075.00|2015|
|246,969,361.00|104,020,254.00|2014|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Amount at the end ofthe period|Amountat thebeginning of theperiod|Estimatedcompletiontime|
|1,621,686,568.32|1,068,144,545.32|2015|
|378,384,901.38|90,317,988.00|2015|
|963,974,167.00|605,767,868.00|2014|
|911,700,695.03|1,157,626,344.00|2014|
|15,547,123.80|13,697,123.80|2015|
|2,207,808,048.40|1,185,606,983.56|2015|
|37,610,197.43|81,034,908.03|Completed|
|369,176,343.09|1,009,300,474.03|2015|
|1,020,550,130.00|1,025,262,637.00|2014|
|1,803,476,955.00|1,104,974,625.00|2014|
|212,674,341.00|122,907,095.00|2014|
|118,025,841.00|164,839,893.00|Completed|
|199,849,453.00|130,421,353.00|2017|
|5,000,000.00|5,000,000.00|Completed|
|2,071,314,160.71|1,450,106,403.20|2014|
|1,148,010,767.00|718,119,183.00|2014|
|35,004,278.00|945,441,379.00|2014|
|729,485,319.21|772,714,786.31|2015|
|95,072,150.00|79,310,504.00|Completed|
|582,022,745.00|703,275,279.23|2017|
|2,765,743,170.92|2,409,381,921.15|2016|
|498,689,910.69|428,617,599.35|2014|
|66,677,729.56|996,710,467.73|Completed|
|51,896,368.00|363,928,689.63|Completed|
|1,270,851,514.00|1,815,818,056.00|2014|
|422,814,774.00|297,758,971.00|2015|
|27,943,194.00|1,142,120,726.00|Completed|
|719,176,318.00|481,515,592.00|2014|
|1,054,456,020.00|1,507,876,002.00|2014|
|2,010,046,907.57|1,684,807,638.57|2015|
|34,892,902.20|35,159,236.20|Completed|
|276,773,959.26|225,182,206.24|2014|
|1,397,631,521.30|1,109,021,632.16|Completed|
|5,228,078,643.00|3,890,394,171.00|2014|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Amount at the end ofthe period|Amountat thebeginning of theperiod|Estimatedcompletiontime|
|6,756,284.00|23,097,053.00|Completed|
|1,233,158,194.00|356,504,453.00|2015|
|1,090,000.00|41,930,540.00|Completed|
|2,087,621,992.00|3,365,465,960.00|2016|
|6,075,615.00|75,999,203.00|Completed|
|1,141,725,637.00|292,375,822.00|Completed|
|916,294.00|916,294.00|Completed|
||86,525,110.00|Completed|
|4,002,246.21|12,000,463.24||
|39,685,304,646.04|37,457,586,507.21||

22. Remuneration payable to the employees
||||
|-|-|-|
|Book balance at thebeginning of theperiod|Increase in this period|Decrease in thisperiod|
|353,649,099.38|578,963,944.89|807,983,712.66|
||28,942,847.90|28,942,847.90|
|582,482.45|83,680,587.27|84,145,007.63|
|177,255.63|25,434,492.39|25,426,528.90|
|502,294.03|41,160,072.58|41,448,456.58|
|-425,715.96|10,781,732.16|10,890,008.58|
|149,519.01|2,986,830.10|3,067,902.85|
|91,825.09|1,653,899.06|1,646,513.04|
|87,304.65|1,663,560.98|1,665,597.68|
|1,275,942.10|26,806,264.06|27,030,335.98|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Book balance at thebeginning of theperiod|Increase in this period|Decrease in thisperiod|
|22,134,025.25|15,194,312.77|10,316,687.81|
|1,280,000.00|1,102,616.91|1,088,284.65|
|6,973,163.35|5,240,747.96|5,094,390.19|
|385,894,712.53|739,931,321.76|964,601,266.82|

 23. Taxes payable
||
|-|
|Amount at the end of theperiod|
|965,177,102.76|
|56,049,281.60|
|20,125,383.14|
|35,877,859.95|
|1,985,873.36|
|1,433,812.78|
|3,017,946.48|
|119,406,833.40|
|36,771,142.89|
|1,239,845,236.36|

 24. Interest payable
||
|-|
|Amount at the end of theperiod|
|128,602,732.24|
|6,872,335.87|
|1,353,013.70|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Amount at the end of theperiod|
|136,828,081.81|

 25. Dividend payable
|||
|-|-|
|Number at theend of the period|Number at thebeginning of theperiod|
|450,964,624.39||
|332,841,272.16||
|27,788,058.64||
|4,692,329.22|9,692,329.22|
|285,600.10|285,600.10|
||1 4 0 , 2 1 8 .2 7|
||1 1 0 ,8 0 9 , 0 4 6 .7 0|
|383,233.13||
|816,955,117.64|120,927,194.29|

26. Other payables
（1） Other payables
||
|-|
|Number at the end of the period|
|5,873,903,107.86|
|1,432,253,109.41|
|768,864,838.35|
|681,471,743.04|
|622,616,733.21|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Number at the end of the period|
|9,379,109,531.87|
|3,156,954,883.55|

 Note: The large-amount other payables with the aging over 1 year are mainly the money advanced of minoritystockholders。
（2） The other payables in this report period do not include the money of the shareholder units holding over5% (including5%) voting power shares of the Company
（3） Large-amount other payables at the end of the period
|||
|-|-|
|Amount|Aging|
|912,718,813.10|Within 1year|
|882,420,768.56|0-over 3years|
|774,612,987.75|0-over 3years|
|534,505,285.78|Within 2years|
|522,997,394.88|Within 2years|
|416,414,828.38|Within 1year|
|409,276,633.89|Within 1year|
|352,750,000.00|Within 1year|
|273,169,295.71|Within 1year|
|261,401,273.12|Within 1year|
|251,012,803.57|Within 2years|
|245,570,000.00|Within 2years|
|225,232,860.00|Within 1year|
|200,000,000.00|Within 1year|
|185,208,465.34|Within 1year|
|173,455,892.49|Within 1year|
|160,048,546.22|Within 2years|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|Amount|Aging|
|138,242,326.60|Within 3years|
|132,720,170.98|Within 2years|
|106,410,408.00|Within 1year|
|106,081,398.67|Within 2years|
|104,560,814.05|Within 1year|
|7,368,810,967.09||

27. Non-current liabilities falling due in one year
（1） Non-current liabilities falling due in one year
||
|-|
|Amount at the end of theperiod|
|9,332,132,762.45|
|1,549,040,398.99|
|7,618,938,800.00|
|164,153,563.46|
|-|
|9,332,132,762.45|

 For the details of the explanations on the long-term loans falling due in one year, see “this Annotation VI. 29 Long-term Loans”.
（2）The top five non-current liabilities falling due in one year of the amount at the end of the period
||||||
|-|-|-|-|-|
|Loan startday|Loan endingday|Currency|Interest rate(%)||
|||||Foreigncurrencyamount|
|2013/03/26|2015/06/15|USD|Floating|200,000,000.00|
|2013/03/29|2015/03/29|RMB|Fixed||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||
|-|-|-|-|-|
|2011/10/17|2014/09/26|USD|Floating|100,000,000.00|
|2013/03/29|2015/03/29|RMB|Fixed||
|2012/09/25|2015/06/29|RMB|Fixed||

28. Other current liabilities
||
|-|
|Book balance at the end ofthe period|
|2,338,349,360.00|
|2,338,349,360.00|

 Note 1: The Group counts and draws land VAT according to Guo Shui Fa[2006] No.187 document Notice on the Problems Related to the Liquidation Management of the Land VAT of the Property Development Enterprises by the State Administration of Taxation of the State Administration of Taxation and the other related provisions, and counted into the related profit and loss during the period according to the matching principle. At the same time, when calculating the income tax expense, the Group conducts corresponding adjustment on the taxable income according to the related provisions of the areas of the subsidiary companies.
29. Long-term loan
（1） Classification of long-term loan
||
|-|
|Amount at the end of the period|
|169,875,000.00|
|10,194,523,200.01|
|6,895,665,261.60|
|830,280,000.00|
|18,090,343,461.61|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
Note 1: For the details, see “This Annotation VI , 6. Inventories(5)”.
Note 2: The details of the guarantee loans are as shown in the Table below.
||||
|-|-|-|
|Lendinginstitution|Loan amount|Among them:amount of long-termloan falling due inone year|
|Huatai AssetsManagementCo., Ltd.|2,000,000,000.00||
|Bank|1,531,500,000.00|514,000,000.00|
|Bank|1,619,000,000.00|1,109,000,000.00|
|Bank.|574,500,000.00|574,500,000.00|
|Bank|249,900,000.00|249,900,000.00|
|Bank|184,584,000.00||
|Bank|249,900,000.00|249,900,000.00|
|Bank|184,584,000.00||
|Bank|7,042,878,000.00|3,880,338,800.00|
|Bank|373,100,000.01|109,200,000.00|
|Bank|130,000,000.00|40,000,000.00|
|Bank|490,000,000.00|20,000,000.00|
|Bank|150,000,000.00|10,000,000.00|
|Bank|94,000,000.00||
|Bank|300,000,000.00||
|Bank|600,000,000.00||
|Bank|1,100,000,000.00|1,100,000,000.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Bank|30,000,000.00||
|Bank|396,000,000.00|8,000,000.00|
|Bank|200,000,000.00||
|Bank|748,000,000.00|4,000,000.00|
||17,813,462,000.01|7,618,938,800.00|

Note 3:
1) According to the Entrusted Loan Contract signed between the subsidiary company of the Company Guangzhou Wanshang Property Co., Ltd. and Guangzhou Vanke Property Co., Ltd., Guangzhou Vanke Property Co., Ltd. entrusted the bank to provide entrusted loan of RMB 415,140,000.00 Yuan to Guangzhou Wanshang Property Co., Ltd. According to the Entrusted Loan Contract signed between the subsidiary company of the Company Guangzhou Wanshang Property Co., Ltd. and the bank and Hangzhou Hanglong Property Management Co., Ltd., Hangzhou Hanglong Property Management Co., Ltd. entrusted the bank to provide entrusted loan of RMB 415,140,000.00 Yuan to Guangzhou Wanshang Property Co., Ltd.
(1) Top 5 long-term loans of the amount at the end of the period
||||||
|-|-|-|-|-|
|Loan startday|Loan endingday|Currency|Interest rate(%)||
|||||Foreigncurrencyamount|
|2010/04/20|2017/04/19|RMB|Floating||
|2014/06/04|2016/06/04|RMB|Fixed||
|2013/12/23|2016/12/23|USD|Floatin|194,000,000.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||
|-|-|-|-|-|
|Loan startday|Loan endingday|Currency|Interest rate(%)||
|||||Foreigncurrencyamount|
||||g||
|2013/12/18|2016/12/18|USD|Floating|100,000,000.00|
|2013/04/29|2016/04/25|USD|Floating|100,000,000.00|

Continued:
||||||
|-|-|-|-|-|
|Loan startday|Loan endingday|Currency|Interest rate(%)||
|||||Foreigncurrencyamount|
|2010/04/20|2017/04/19|RMB|Floating||
|2013/12/23|2016/12/23|USD|Floating|194,000,000.00|
|2013/03/29|2015/03/29|RMB|Fixed||
|2013/04/11|2015/06/15|USD|Floating|180,000,000.00|
|2013/12/18|2016/12/18|USD|Floating|100,000,000.00|

30. Bonds payable
||||
|-|-|-|
|Face value sum|Issuance day|Term|
|3,048,450,000.00|2013/12/11|5 years|
|3,048,450,000.00|||

Continued:
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Accrued interest inthis period|Paid interest in thisperiod|Interest payable atthe end of theperiod|
|61,607,584.1|61,545,146.79|6,872,335.87|
|61,607,584.10|61,545,146.79|6,872,335.87|

 The subsidiary company of the Company China Merchants Land Co., Ltd. issued credit enhancement bonds on December 11, 2013, the issuance sum is$0.5 billion USD, the term is 5 years, the face value annual interest rate is4.021%, which is fixed and unchanged during the bond duration, simple interst is adopted and interest is paid by half a year, and compound interest is not counted. The bonds were listed at Hong Kong Stock Exchange since December 12, 2013, and the capital raised by issuing the bonds is used for general enterprise purpose.
31. Long-term payables
||
|-|
|Amount at the end of theperiod|
|105,023,177.74|
|103,823,177.74|
|1,200,000.00|

 32. Estimated liabilities
||||
|-|-|-|
|Amount at thebeginning of theperiod|Increase in thisperiod|Carry-over inthis period|
|10,473,360.10||10,473,360.10|
|10,473,360.10||10,473,360.10|

The estimated liability is the subsidiary company of the Company Zhuhai Yuanfeng Property Co., Ltd. being sued by some owners due to building sales dispute. In this period, all
the lawsuits were settled, and the estimated liability was transferred back.
33. Other non-current liabilities
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
(1) Details of other non-current liabilities
||
|-|
|Book balance at the end ofthe period|
|9,420,040.00|
|1,500,000.00|
|316,720.00|
|11,236,760.00|

（2）Government subsidy
|||||
|-|-|-|-|
|Amount at thebeginning of theperiod|Subsidyamount addedin this period|Amount countedinto non-operatingincome in thisperiod|Amount at theend of the period|
|9,420,040.00|||9,420,040.00|
|1,500,000.00|||1,500,000.00|
|10,920,040.00|||10,920,040.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
34. Capital stock
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Amount at the beginning of theperiod||Increase and decrease in this period (+, -)||||||
|Amount|Proportion(%)|Issuenewshares|Giveshares|Accumulationfundtransferred intoshares|Others|Subtotal|Amount|
|693,419,317.00|40.38|||346,709,658.00||346,709,658.00|1,040,128,975.00|
|197,709,440.00|11.51|||98,854,720.00||98,854,720.00|296,564,160.00|
|197,709,440.00|11.51|||98,854,720.00||98,854,720.00|296,564,160.00|
|376,098.00|0.02|||245,583.00|130,743.00|376,326.00|752,424.00|
|891,504,855.00|51.91|||445,809,961.00|130,743.00|445,940,704.00|1,337,445,559.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||||||
|-|-|-|-|-|-|
|684,248,848.00|39.84|342,104,515.00|-54,818.00|342,049,697.00|1,026,298,545.00|
|141,546,800.00|8.24|70,735,775.00|-75,925.00|70,659,850.00|212,206,650.00|
|825,795,648.00|48.09|412,840,290.00|-130,743.00|412,709,547.00|1,238,505,195.00|
|1,717,300,503.00|100|858,650,251.00|-|858,650,251.00|2,575,950,754.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
Note: according to the Proposal of Profit Distribution and Capital Reserve Transferred into
Equity 2013 approved by theShareholders’ Meeting 2013 of the Company held on April 14,
2014, capital reserve is transferred into equity. The total equity1,717,300,503 shares at the end of 2013 is the base number, and for each 10 shares, the capital reserve is transferred into 5
common shares. Altogether 858,650,251 shares were transferred, and after the transfer, the total equity increased to 2,575,950,754 shares.
35. Capital reserve
Unit: RMB Yuan
||||
|-|-|-|
|Amount at thebeginning of theperiod|Increase in thisperiod|Decrease in thisperiod|
|8,272,422,487.12||858,650,251.00|
|104,411,758.00|||
|70,214,581.44|25,443,773.72||
|8,447,048,826.56|25,443,773.72|858,650,251.00|

（1）Capital reserve addition is the premium caused by the capital increase and share expansion of the minority shareholders of the subsidiary company of the Company Shenzhen Pingshan
China Merchants Property.
（2）The decrease number of capital reserve in this period is the number of capital stock
transferred in by implementing the Profit Distribution and Capital Reserve Transferred into
Equity Scheme 2013.
36. Surplus reserves
Unit: RMB Yuan
||||
|-|-|-|
|Number at thebeginning of theperiod|Increase in thisperiod|Decrease in thisperiod|
|993,395,354.99|||
|140,120,038.00|||
|1,133,515,392.99|||

 37. Undistributed profit
Unit: RMB Yuan
||
|-|
|Amount|
|15,348,735,891.17|
|15,348,735,891.17|
|1,785,434,748.85|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|824,304,241.00|
|16,309,866,399.02|

Note: According to the Profit Distribution and Capital Reserve Transferred into Equity Proposal 2013 approved by the resolution of theShareholders’ Meeting 2013 of the Company, with the
total equity of 1,717,300,503 shares at the end of 2013 as the base number, for each 10 shares,
send cash of RMB 4.80 Yuan (including the tax), altogether cash dividend of RMB
824,304,241.00 Yuan was sent.
38. Conversion difference of the foreign currency statement
||||
|-|-|-|
|Number at thebeginning of theperiod|Increase in thisperiod|Decrease in thisperiod|
|78,901,353.52|||
|78,901,353.52|||

 A few overseas The Companysubsidiary companies of the Company originally has HKD as the recording current. Because their main businesses are in China, such subsidiary companies converted the recording currency to RMB, and all the statement items are converted by the exchange rate on the exchange day. The foreign currency statement conversion difference generated in the merger process caused by the exchange rate on the exchange day being inconsistent with the historic exchange rate is counted into the current profit and loss when disposing the overseas subsidiary companies.
39. Equity of the minority shareholders
|||
|-|-|
|Minority equityratio (%)|Amount at the end ofthe period|
|40.00|-1,791,110.23|
|20.00|6,350,745.38|
|50.00|1,193,684,560.53|
|49.00|320,149,190.88|
|34.93|42,770,405.86|
|49.00|-5,158,155.65|
|49.00|-21,226.52|
|40.00|110,148,502.76|
|25.00|11,014,130.07|
|30.00|2,970,820.14|
|50.00|946,118,886.87|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|40.00|225,474,257.83|
|49.00|-5,218,503.95|
|49.00|13,971,317.43|
|40.00|-12,974,019.99|
|45.00|132,238,457.81|
|50.00|91,197,812.33|
|40.00|81,777,806.16|
|49.00|150,247,144.08|
|66.00|71,774,616.33|
|49.00|130,903,395.64|
|50.00|8,741,752.72|
|40.00|3,447,887.38|
|49.00|-1,052,050.06|
|49.00|4,714,468.17|
|40.00|19,694,085.29|
|23.00|6,738,385.48|
|30.00|3,657,909.54|
|15.00|40,169,934.95|
|30.00|6,374,447.44|
|40.00|67,134,699.43|
|49.00|55,237,901.37|
|49.00|-16,888,311.52|
|50.00|3,393,374.73|
|25.65|2,078,785,979.45|
|49.00|88,026,068.28|
|50.00|592,401,099.96|
|50.00|34,366,606.67|
|45.00|2,983,469.15|
|50.00|432,150,274.28|
|50.00|525,075,226.67|
|40.00|799,378,666.05|
|50.00|2,575,182,370.16|
|50.00|991,799,886.38|
|30.00|-102,993.29|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|30.00|9,001,560.32|
||11,836,041,732.76|

 40. Operating income and operating cost
||||
|-|-|-|
|Amount in this perid|||
|Operating income|Operating cost|Operating income|
|16,047,155,730.99|10,391,068,273.47|16,133,568,321.26|

（1） Mainbusinesses—classified by the industry
||||
|-|-|-|
|Amount in this period|||
|Operating income|Operating cost|Operating income|
|15,286,741,029.90|9,740,634,674.02|15,468,041,797.53|
|296,760,432.45|232,485,479.31|286,293,107.78|
|463,654,268.64|417,948,120.14|379,233,415.95|
|16,047,155,730.99|10,391,068,273.47|16,133,568,321.26|

（2） Operating income condition of the top 5 clients
||
|-|
|Operating income|
|75,000,000.00|
|61,575,156.00|
|51,145,150.00|
|50,058,759.40|
|44,000,000.00|
|281,779,065.40|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
41. Operating tax and addition
|||
|-|-|
|Amount in this period|Amount in the the sameperiod of last year|
|715,462,580.01|1,682,436,591.33|
|795,233,571.24|791,426,399.15|
|52,643,579.68|52,105,782.75|
|31,521,296.26|38,222,483.89|
|19,158,673.10|15,239,466.65|
|1,614,019,700.29|2,579,430,723.77|

42. Sales expenses
||
|-|
|Amount in this period|
|131,573,936.41|
|49,644,432.90|
|100,719,879.14|
|281,938,248.45|

 43. Management expenses
||
|-|
|Amount in this period|
|142,440,093.58|
|43,358,242.39|
|10,039,265.18|
|11,953,023.23|
|15,615,878.06|
|8,253,296.26|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Amount in this period|
|231,659,798.70|

 44. Financial expenses
||
|-|
|Amount in this period|
|844,061,553.24|
|382,434,129.99|
|221,966,151.28|
|51,270,119.88|
|35,170,994.70|
|326,102,386.55|

 45. Asset impairment loss
||
|-|
|Amount in this period|
|888,293.99|
|888,293.99|

 46. Investment income
（1） Sources of investment income
||
|-|
|Amount in this period|
|143,318,415.51|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Amount in this period|
|143,318,415.51|

（2） Long-term equity investment income checked by the equity method
|||
|-|-|
|Amount in thisperiod|Amount in thethe sameperiod of lastyear|
|120,441,294.57|339,878,500.00|
|1,033,030.02|5,185,519.88|
|21,431,084.01|12,617,820.16|
|485,749.78|62,212.24|
|11,156.31|30,278.76|
|-78,469.54|-140,203.81|
|-879,099.38|0.00|
|1,790,223.60|1,889,728.08|
|-1,436,463.06|0.00|
|519,909.20|-1,290,760.00|
|0.00|-2,044,883.47|
|0.00|-19,996,271.26|
|143,318,415.51|336,191,940.58|

47. Non-operating income
（1） Details of the non-operating income
|||
|-|-|
|Amount in thisperiod|Amount in the sameperiod of last year|
|14,184.22|469,576.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|Amount in thisperiod|Amount in the sameperiod of last year|
|14,184.22|469,576.00|
|25,262,476.52|2,198,400.00|
|4,879,293.44|5,828,374.85|
|5,340,925.45|3,278,352.43|
|35,496,879.63|11,774,703.28|

（2） Details of the government subsidy
||||
|-|-|-|
|Amount in thisperiod|Amount in thethe same periodof last year|Asset-related orincome-related|
|22,412,476.52|697,000.00|Related to the income|
|2,850,000.00|1,501,400.00|Related to the income|
|25,262,476.52|2,198,400.00||

Note: the special subsidy is mainly used for developing rewards for the green and energy-saving enterprises provided by the local governments.
48. Non-operating expenditures
|||
|-|-|
|Amount in thisperiod|Amount in thethe same periodof last year|
|175,062.57|910,283.52|
|175,062.57|910,283.52|
|2,000.00||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|Amount in thisperiod|Amount in thethe same periodof last year|
|-2,990,565.73||
|5,971,344.17|4,579,668.16|
|18,567,574.48|9,897,602.93|
|21,725,415.49|15,387,554.61|

 49. Income tax expense
（1）Income tax expense
||
|-|
|Amount in this period|
|1,252,265,973.88|
|--287,769,205.47|
|964,496,768.41|

（2）Income tax in the same year
Item Amount
Total of consolidated profit in this period 3,358,568,909.19 Plus: Increased amount by tax adjustment
2,274,065,861.12 Less:Decreased amount by tax adjustment
1,154,415,347.35 Plus:
taxable income from abroad business used to makeup domestic loss
Less: makeup of previous loss
14,242,849.18 Plus:subsidies‟ loss of current year
545,685,334.44 Amount of taxable income in this period 5,009,661,908.22 Statutory income tax rate (Company tax of HK is16.5%)
25% Income tax payable in this period 1,252,265,973.88 Less: exemption of income tax
Less: amount of income tax neutralized
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
50. Process of calculating the basic EPS and diluted EPS
|||
|-|-|
|Number|Amount in this period|
|1|1,785,434,748.85|
|2|-57,442,222.60|
|3=1-2|1,842,876,971.45|
|4|1,717,300,503.00|
|5|858,650,251.00|
|6||
|7||
|8||
|9||
|10||
|11|6|
|12=4+5+6×|2,575,950,754.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|Number|Amount in this period|
|7÷11-8×9÷11-10||
|13=1÷12|0.6931|
|14=3÷12|0.7154|
|15||
|16||
|17||
|18||
|19=[1+(15-16)×(1-17)]÷(12+18)|0.6931|
|19=[3+(15-16)×(1-17)]÷(12+18)|0.7154|

Note：In the report period, The company implemented the project to transfer capital reserve to capital stock. According to The 21th Memo of Information Disclosure–Related terms of Regular Report Disclosure from Shenzhen Stock Exchange, The company have adjusted the EPS last year in the same period, based on the adjusted capital stock.
51. Cash flow statement items
（1） Other cash related to operation/investment/fund raising received/paid
1） Operating cash inflows
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Amount in this period|
|3,107,323,026.01|
|351,203,069.17|
|128,814,435.02|
|283,677,449.41|
|3,871,017,979.61|

2） Other cash related to the operation activities paid
||
|-|
|Amount in this period|
|1,429,429,541.00|
|362,500,632.11|
|265,717,364.18|
|162,536,815.33|
|403,680,191.23|
|2,623,864,543.85|

（2） Supplementing data for the consolidated cash flow statement
||
|-|
|Amount in this period|
|2,394,072,140.78|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Amount in this period|
|888,293.99|
|82,124,734.55|
|127,749,940.09|
|28,475,654.32|
|160,278.35|
|461,627,423.25|
|-143,318,415.51|
|-354,049,275.48|
|-14,732,536.77|
|-12,762,507,273.06|
|-1,738,838,849.53|
|4,586,023,487.90|
|-7,332,324,397.12|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Amount in this period|
|18,585,950,027.06|
|24,235,680,921.50|
|-5,649,730,894.44|

（3） Cash and cash equivalents
||
|-|
|Number at the end ofthe period|
|18,585,950,027.06|
|250,111.99|
|16,229,601,295.27|
|2,356,098,619.80|
|18,585,950,027.06|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
VII. Related party and related transaction
1. Condition of the parent company of the enterprise
||||||||||
|-|-|-|-|-|-|-|-|-|
|Incidencerelation|Enterprise type|Registration place|Legalrepresentative|Businessnature|Registeredcapital|Shareholdingproportionof theparentcompanyin theenterprise|Votingpowerproportionheld by theparentcompany intheenterprise|Finalcontrollingparty oftheenterprise|
|Shareholder|Limitedliabilitycompany|Shenzhen|SunChengming|Set up andmanageall kindsofenterprisesetc.|2,236,000,000.00|40.38|40.38|ChinaMerchantsGroupCo., Ltd.|

China Merchants Shekou Industrial Zone Co., Ltd. directly holds 1,040,128,975 shares of the Company, indirectly holds 296,564,160 shares of the Company through its subsidiary companies, and totally holds 1,336,693,135 shares of the Company, accounting for51.89% of the total shares of the Company.
2. Condition of the subsidiary companies of the enterprise
For the details, see AnnotationV.（I）。
3. Condition of the cooperative and associated enterprises of the enterprise
For the details, see VI. 9 Long-term equityinvestment。
4. Condition of the other related parties of the enterprise
||
|-|
|Relationship with the Company|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder and|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|the final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|
|Controlled by the same shareholder andthe final controlling party|

5. Transactions of the related parties
（1）Condition of purchasing commodities and accepting labor
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of therelatedtransaction|Pricing modeanddecision-making procedures ofthe relatedtransaction|Amount in this period|||
|||Amount|Proportionaccountingfor in theamount ofthetransactions of thesamecategory|Amount|

 Shareholder and the final controlling party
|||||
|-|-|-|-|
|Purchase land|Market pricing|4,852,900,000.00|46.16|

Other enterprises controlled by the same shareholder and the final controlling party
||||||
|-|-|-|-|-|
|Interestexpenditure|Market pricing|48,589,662.03|5.76|27,253,397.65|
|Handling fee|Market pricing|817,328.44|2.32|1,791,836.45|
|Capital occupyingfee for theshareholders’|Loan interestrate of the bankin the same|15,101,556.66|0.16|14,065,305.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||||
|-|-|-|-|
|advance|period|||
|||4,917,408,547.13|43,110,539.10|

 Note: The 2nd TemporaryShareholders’ Meeting 2013 of the Company examined and approved the proposals related to About Issuing Shares to Purchase Assets and Raise the Matching Funds& Related Transactions, and the Company planned to purchase the land use right of Shekou Industrial Zone Sea World Residence and the Culture and Art Center with the shares issued additionally. According to the Assets Purchase Agreement signed by the Company and Shekou Industrial Zone, the total price of the land use right is RMB 4.853 billion Yuan, and the completion condition (the issuance is successful or not) of issuing shares to raise funds this time does not influence the implementation of the assets transaction behaviors.
The 4th Temporary Meeting of the Board of Directors of the Company in 2014 decided to terminate this ad ditional issuance. According to the above-mentioned Assets Purchase Agreement, the Company will pay the price for purchasing the land use right of Shekou Industrial Zone in cash. The Company paid part of it (R MB 1.4 billion Yuan) in June 2014.
（2）Condition of selling commodities and providing labor
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Content of therelatedtransaction|Pricing modeanddecision-makingprocedures ofthe relatedtransaction|Amount in this period|||
|||Amount|Proportionaccountingfor in theamount ofthetransactionsof the samecategory|Amount|
|Providepropertymanagementservice|Marketagreement price|3,766,820.00|0.81|2,597,971.51|
|Providepropertymanagementservice|Marketagreement price|259,937.25|0.06|-|
|Contracting ofconstructionproject|Marketagreement price|193,107.30|0.09|8,262,080.00|
|Contracting ofconstructionproject|Marketagreement price|4,298,571.31|2.10|11,336,029.02|
|Interest income|Marketagreement price|34,075,975.05|15.35|26,865,605.01|
|||42,594,410.91||49,061,685.54|

（3）Condition of the related rental
Company rental condition
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Name of the leasee|Categoryof therentalasset|Rental startday|Rentalending day|Pricing basisfor the rentalincome|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||
|-|-|-|-|-|
|China Merchants Group Co., Ltd.|Workshop|January 1, 2014|December31, 2014|Implementaccording to theagreement price|
|China Merchants Shekou IndustrialZone Co., Ltd.|Officebuilding|January 1,2014|April 14,2014|Implementaccording to theagreement price|
|Shenzhen China Merchants VentureCo., Ltd.|Officebuilding|January 1,2014|April 14,2014|Implementaccording to theagreement price|
|Shenzhen China Merchants NetworkCo., Ltd.|Officebuilding|January 1,2014|December31, 2014|Implementaccording to theagreement price|
|Shenzhen Shekou Industrial ZoneEmployee Residence Co., Ltd.|Officebuilding|January 1,2014|April 14,2014|Implementaccording to theagreement price|
|China Merchants Asia PacificInvestment (Shenzhen) Co., Ltd.|Officebuilding|January 1,2014|April 14,2014|Implementaccording to theagreement price|
|Shenzhen China MerchantsInternational Ship Agency Co., Ltd.|Officebuilding|January 1,2014|April 14,2014|Implementaccording to theagreement price|
|China Merchants International (China)Investment Co., Ltd.|Officebuilding|January 1,2014|April 14,2014|Implementaccording to theagreement price|
|China Merchants Shekou IndustrialZone Co., Ltd.|Officebuilding|April 15, 2014|December31, 2014|Implementaccording to theagreement price|
|Shenzhen China Merchants VentureCo., Ltd.|Officebuilding|April 15, 2014|December31, 2014|Implementaccording to theagreement price|
|Shenzhen Shekou Industrial ZoneEmployee Residence Co., Ltd.|Officebuilding|April 15, 2014|December31, 2014|Implementaccording to theagreement price|
|China Merchants Asia PacificInvestment (Shenzhen) Co., Ltd.|Officebuilding|April 15, 2014|December31, 2014|Implementaccording to theagreement price|
|Shenzhen China MerchantsInternational Ship Agency Co., Ltd.|Officebuilding|April 15, 2014|December31, 2014|Implementaccording to theagreement price|
|China Merchants International (China)Investment Co., Ltd.|Officebuilding|April 15, 2014|December31, 2014|Implementaccording to theagreement price|

Company rental condition
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Name of the leasee|Category ofthe rentalasset|Rentalstart day|Rental endingday|Pricing basis forthe rental income|
|Shenzhen China MerchantsProperties and InvestmentCo., Ltd.|Land use right|January 1,2014|December 31,2014|Implementaccording to theagreement price|
|China Merchants Property(Shenzhen) Co., Ltd.|Land use right|January 1,2014|August 31, 2023|Implementaccording to theagreement price|
|Shenzhen China MerchantsProperties and InvestmentCo., Ltd.|Workshop|January 1,2014|December 31,2014|Implementaccording to theagreement price|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||
|-|-|-|-|-|
|Shenzhen China MerchantsPower Supply Co., Ltd.|Land use right|January 1,2014|December 31,2014|Implementaccording to theagreement price|
|Shanghai Fengyang PropertyDevelopment Co., Ltd.|Officebuilding|January 1,2014|December 31,2015|Implementaccording to theagreement price|
|Shanghai China MerchantsFengrui Property Co., Ltd.|Officebuilding|January2014|December 2015|Implementaccording to theagreement price|
|Shanghai Jingyuan PropertyDevelopment Co., Ltd.|Officebuilding|January 1,2014|December 31,2015|Implementaccording to theagreement price|
|Shanghai China MerchantsHongfa Property Co., Ltd.|Officebuilding|January 1,2014|December 31,2015|Implementaccording to theagreement price|
|Shenzhen China MerchantsProperty Management Co.,Ltd.|Dormitory|January 1,2014|December 31,2014|Implementaccording to theagreement price|
|Shenzhen China MerchantsProperty Management Co.,Ltd.|Land use right|May 1,2014|April 30, 2015|Implementaccording to theagreement price|

（4）Related guarantee condition
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name of thebenificiary|Amount guaranteed|Start date|Expired on|
|Ruijia InvestmentIndustrial Co., Ltd.|184,584,000.00|2011.07.22|2014.07.18|
|Ruijia InvestmentIndustrial Co., Ltd.|307,640,000.00|2011.10.14|2014.07.18|
|Ruijia InvestmentIndustrial Co., Ltd.|430,696,000.00|2011.10.14|2014.09.26|
|Ruijia InvestmentIndustrial Co., Ltd.|615,280,000.00|2011.10.17|2014.09.26|
|Ruijia InvestmentIndustrial Co., Ltd.|396,900,000.00|2011.10.21|2014.10.13|
|Ruijia InvestmentIndustrial Co., Ltd.|277,830,000.00|2011.11.25|2014.11.25|
|Ruijia InvestmentIndustrial Co., Ltd.|129,208,800.00|2011.12.28|2014.12.27|
|Ruijia InvestmentIndustrial Co., Ltd.|307,640,000.00|2013.03.05|2016.03.01|
|Ruijia InvestmentIndustrial Co., Ltd.|123,056,000.00|2013.03.26|2015.06.15|
|Ruijia InvestmentIndustrial Co., Ltd.|1,107,504,000.00|2013.04.11|2015.06.15|
|Ruijia InvestmentIndustrial Co., Ltd.|615,280,000.00|2013.04.29|2016.04.25|
|Ruijia InvestmentIndustrial Co., Ltd.|307,640,000.00|2013.09.30|2016.09.30|
|Ruijia InvestmentIndustrial Co., Ltd.|123,056,000.00|2013.10.31|2016.10.31|
|Ruijia InvestmentIndustrial Co., Ltd.|307,640,000.00|2013.12.16|2015.06.28|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||||
|-|-|-|-|
|Name of thebenificiary|Amount guaranteed|Start date|Expired on|
|Ruijia InvestmentIndustrial Co., Ltd.|615,280,000.00|2013.12.18|2016.12.18|
|Ruijia InvestmentIndustrial Co., Ltd.|1,193,643,200.00|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|
|The Company|197,000,000.00|2012.12.19|2015.12.19|
|The Company|107,000,000.00|2012.12.24|2015.12.24|
|The Company|78,500,000.00|2013.01.29|2016.01.29|
|The Company|49,000,000.00|2013.07.31|2016.07.31|
|The Company|300,000,000.00|2014.03.28|2017.03.28|
|The Company|300,000,000.00|2014.06.25|2017.06.25|
|China Merchants Property(Shenzhen) Co., Ltd.|154,000,000.00|2012.09.18|2014.09.18|
|China Merchants Property(Shenzhen) Co., Ltd.|88,500,000.00|2012.09.19|2014.09.19|
|China Merchants Property(Shenzhen) Co., Ltd.|27,500,000.00|2012.11.30|2014.11.30|
|China Merchants Property(Shenzhen) Co., Ltd.|187,000,000.00|2012.12.24|2014.12.24|
|China Merchants Property(Shenzhen) Co., Ltd.|117,500,000.00|2013.01.29|2015.01.29|
|Wuhan Aoming PropertyDevelopment Co., Ltd.|94,000,000.00|2013.11.19|2016.11.19|
|Beijing Conrad PropertyDevelopment Co., Ltd.|149,240,000.00|2012.05.15|2017.05.15|
|Shenzhen Shekou SeaWorld Hotel ManagementCo., Ltd.|240,100,000.00|2013.10.22|2018.10.20|
|Qingdao Merchants HydeProperty Development Co.,Ltd.|14,700,000.00|2014.04.29|2017.06.09|
|Shenzhen Jinyu RongtaiInvestment DevelopmentCo., Ltd.|75,000,000.00|2014.06.27|2019.06.27|

（5）Capital inter-bank lending of the related party
Unit: RMB Yuan
|||||
|-|-|-|-|
|Borrowing/lending|Inter-bank lendingamount|Start day|Due day|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||||
|-|-|-|-|
|Lending|823,296,461.50|2012.09|2014.09|
|Lending|1,135,556,115.92|2013.12|2014.12|
|Lending|673,692,974.37|2011.01|2015.12|
|Lending|85,021,300.00|2011.09|2014.04|

 6. Receivables and payables of the related party
(1) Accounts receivable of the related party
||||
|-|-|-|
|Amount at the end of theperiod|||
|Bookbalance|Bad debtprovision|Book balance|

Other enterprises controlled by the same shareholder and the final controlling party
|||
|-|-|
|-|5,088,000.00|
|-|5,088,000.00|

(2) Other receivables of the related party
Unit: RMB Yuan
||||
|-|-|-|
|Amount at the end of the period|||
|Book balance|Bad Debtprovision|Book balance|

 Cooperative and associated enterprises
||||
|-|-|-|
|823,296,461.50||912,320,960.74|
|1,135,556,115.92||1,350,815,887.80|
|673,692,974.37||673,449,850.06|
|85,021,300.00||149,343,672.94|
|||62,432,109.67|
|||92,550,643.25|
|11,270,000.00|11,270,000.00|11,270,000.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
Other enterprises controlled by the same shareholder and the final controlling party
||||
|-|-|-|
|-||89,026,933.80|
|-||44,812,215.00|
|2,728,836,851.79|11,270,000.00|3,386,022,273.26|

 (3) Accounts payable of the related party
Unit: RMB Yuan Amount at the
Amount at the end of the
Accounts payable of the related party beginning of the
period
period
Shareholder and the final controlling party
||
|-|
|3,452,900,000.00|
|3,452,900,000.00|

(4) Other payables of the related party
Amount at the end of the Amount at the
Other payables of the related party period beginning of the
period
Shareholder and the final controlling party
||
|-|
|857,176.76|

Cooperative and associated enterprises
||
|-|
|7,168.75|
|251,012,803.57|
|-|
|64,468,699.88|
|79,670,380.97|
|106,081,398.67|
|17,000,000.00|

Other enterprises controlled by the same shareholder and the final controlling party
||
|-|
|774,612,987.75|
|200,000,000.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|132,720,170.98|
|313,126.40|
|1,626,743,913.73|

(5) Long-term payables of the related party
Amount at the end of the Amount at the
Related party (project) period beginning of the
period
Other enterprises controlled by the same shareholder and the final controlling party
||
|-|
|1,200,000.00|
|1,200,000.00|

(6) Dividend payable of the related party
Amount at the end of the Amount at the
Related party (project) period beginning of the
period
Shareholder and the final controlling party
||
|-|
|332,841,272.16|
|332,841,272.16|

(7) Deposit and loan of the related party
Amount at the
Amount at the end of the
Related party (project) beginning of the
period
period
Other enterprises controlled by the same shareholder and the final controlling party
||
|-|
|5,803,321,381.84|
|5,841,528,616.71|

VIII. Contingencies
1. The amount of the commercial housing mortgage loan guarantee provided to the bank by the Group is RMB 2,002,421,598 Yuan, which has no significant impact on the financial condition in this period and after the balance sheet day of the Group.
2. The Company bears joint liability guarantee for the capital borrowed by China Merchants Guangming Science Park Co., Ltd. in 2014 according to its share holding proportion, the actual
guarantee amount is RMB 82,549,320 Yuan, and the guarantee term is two years after the day
when the loan term under the articles of the loan contract is due. This matter has no significant
impact on the financial condition in this period and after the balance sheet day of the Group.
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
3. Except the above-mentioned contingencies, up till June 30, 2014, the Group did not have any other significant contingencies.
IX. Commitment matter
1. Significant commitment matter
1) Rental contract signed or preparing to implement and the financial impact
On June 30, 2014, the money that the irrevocable operation lease and financing lease signed by the Group need to bear in the following periods is as follows:
Period Operation lease
T+1 years 46,882,496.87T+2 years 42,189,346.69T+3 years 36,161,085.11 AfterT+3 years 264,367,128.53 Total 389,600,057.20 2) Other major financial commitments
||
|-|
|Number at the end ofthe period|
|3,624,111,249.00|
|10,752,320,196.35|
|14,376,431,445.35|

 2. Except the above-mentioned commitment matters, up till June 30, 2014, the Group did not have other major commitment matters.
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
X. Division information
1. Division of the report of the first half of 2014
||||||
|-|-|-|-|-|
|Property industry|Public undertakingindustry|Property managementindustry|Undistributed division|Offset|
|15,317,234,955.90|296,760,432.45|463,654,268.64||-30,493,926.00|
|15,286,741,029.90|296,760,432.45|463,654,268.64|||
|30,493,926.00||||-30,493,926.00|
|12,081,834,751.24|229,097,640.57|458,311,189.19|106,570,688.45|-30,137,568.00|
|4,160,636,192.77|67,662,791.88|5,839,985.54|-52,231,250.61|-837,110,274.53|
|167,155,178,749.37|3,607,468,029.56|580,571,202.06|43,905,929,341.66|-74,295,144,356.59|
|123,689,764,944.78|2,215,336,851.57|462,313,040.21|27,623,392,777.22|-52,584,922,629.29|
|213,448,246.39|10,687,114.12|2,985,568.72|343,673.29||
|29,598,456.23|1,693,006.61|627,231.15|50,282.50||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
2. Division of the report of the first half of 2013
|||||||
|-|-|-|-|-|-|
|Property industry|Public undertakingindustry|Propertymanagementindustry|Trade division|Undistributed division|Offset|
|15,784,212,476.84|286,293,107.78|379,233,415.95|54,369,931.66||-370,540,610.97|
|15,503,273,113.82|284,499,279.88|291,425,995.90|54,369,931.66|||
|280,939,263.02|1,793,827.90|87,807,420.05|||-370,540,510.97|
|11,234,716,016.46|188,285,550.36|369,792,174.99|52,379,651.83|197,653,112.75|-365,170,532.60|
|4,848,926,119.20|98,007,557.42|9,533,731.96|-25,141,351.76|-187,863,872.75|-5,370,078.37|
|123,130,540,426.78|5,625,843,949.89|595,628,537.89|16,057,687.29|53,698,748,235.87|-65,551,019,385.80|
|89,659,479,513.80|4,355,020,213.67|494,732,160.77|41,275,027.89|36,231,858,771.28|-45,348,489,983.70|
|100,257,323.17|5,794,448.40|1,051,867.43||||
|7,012,110.54|18,219,813.24|541,686.00||1,344,750.00||

XI. Financial tools and risk management
The main financial tools of the Group include loans, receivables, payables, transactional financial assets and transactional financial liabilities etc., and for the detailed conditions of the financial tools, see Annotation II. The risks related to these financial tools and the risk management policies adopted by the
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
Group in order to lower these risks are as stated in the following. The management of the Group conducts management and monitoring on these risk exposures to control the above-mentioned risks within the limited scope.
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
1. Risk management objectives and policies
The objectives of the Group engaging in risk management are: Achieve appropriate balance between the risks and the income, lower the negative impact on the operation achievement of the Group by the risks to the lowest level, and maximize the interest of the shareholders and the other equity investors. Based on the risk management objectives, the basic strategies of risk management of the Group are: Determine and analyze all kinds of risks that the Group faces, establish proper risk baseline, conduct risk management, supervise all kinds of risks in time and reliably, and control the risks within the limited scope.
(1) Market risks
1) Foreign exchange risk
The foreign exchange risk refers to the risk of loss caused by the changes of the exchange rate. The foreign exchange risk born by the Group is mainly related to the USD, HKD and Euro. Except several subsidiary companies of the Group conduct purchase and sales withUSD< the other main business activities of the Group are prices and settled in RMB. On June 30, 2014, except the USD and HKD balance of the assets and liabilities stated in the Table below, the assets and liabilities of the Group were RMB balance. The foreign exchange risk generated by the assets and liabilities of the USD and HKD balance may generate impact on the operation achievement of the Group.
||
|-|
|June 30, 2014|
|300,220,909.90|
|351,960,496.27|
|1,331,264.36|
|38,680,062.00|
|850,000,000.00|
|1,262,950,000.00|
|500,000,000.00|
|1,804,035.38|
|3,158,044.60|
|8,884,335.28|
|28,473,381.97|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
The Group pays close attention to the impact on the foreign exchange risk of the Group by the changes of the exchange rate.
2) Interest rate risk
The interest rate risk of the Group is generated in the debt with interest of the bank loan. The financial liabilities of the floating interest rate make the Group face the cash flow interest rate risk, and the financial liabilities of fixed interest rate make the Group face the fair value interest rate risk. The Group decides the comparative proportions of the fixed interest rate and floating interest rate contracts according to the market environment at that time. On June 30, 2014, for the debt with interest of the Group, the amount of the floating interest rate loan contracts totaled RMB 17,468,576,200 Yuan (December 31, 2013: RMB 15,721,425,900 Yuan). In it, the total of RMB and HKD is RMB 10,105,520,400 Yuan, and the total of USD is RMB 7,363,055,800 Yuan. The amount of the fixed interest rate contracts priced in RMB is RMB 13,378,900,000 Yuan (December 31, 2013: RMB 9,963,500,000Yuan）.
3）Price risk
The Group sells steel material products at market price, so it is influenced by price fluctuation.
(2) Credit risk
On June 30, 2014, the biggest credit risk exposure that may arouse the financial loss of the Group mainly came from the other party of the contract not implementing its obligations and causing the loss of the financial assets of the Group and the financial guarantee born by the Group, including:
Book amount of the financial assets confirmed in the consolidated balance sheet. For the financial tools measured with fair value, the book value reflects their risk exposures, but not the biggest risk exposure, and their biggest risk exposure will change along with the changes of the future fair value.
In order to lower the credit risk, the Group established special department to determine the line of credit. Conduct credit examination and approval, and implement other monitoring procedures to ensure adopting necessary measures to recover the stale claim. In addition, the Group examines the recovery condition of each single item receivable on each balance sheet day, so as to ensure counting and drawing sufficient bad debt provision for the money that cannot be
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
recovered. Therefore, the management of the Group thinks that the credit risk born by the Group has been lowered greatly.
The working capital of the Group is deposited in the banks with high credit ratings, so the credit risk of the working capital is low.
The Group adopts necessary policies to ensure that all the sales clients have good credit record. Except the top 5 amounts of the accounts receivable, the Group does not have other significant credit concentrated risks.
Total of the top 5 amounts of the accounts receivable: RMB 53,855,786.63 Yuan.
(3) Liquidity risk
The liquidity risk is the risk of the Group being unable to implement its financial obligations on the due date. The method of the Group managing the liquidity risk is ensuring sufficient financial liquidity to implement the due liabilities, not causing unacceptable loss or causing harm to the fame of the enterprise. The Group periodically analyzes the structure and term of debt to ensure sufficient fund. The management of the Group monitors the use condition of the bank loan and ensure following the loan agreement. At the same time, it conducts financing negotiations with the financial institutions, so as to keep certain line of credit and reduce the liquidity risk.
The Group takes the bank loan as one of the capital sources. On June 30, 2014, the bank loan limit not used by the Group is RMB 22,248,710,100 Yuan (December 31, 2013: RMB 23,377,559,400 Yuan). The short-term bank loan limit not used by the Group on June 30, 2014 is RMB 1,115,000,000 Yuan (December 31, 2013: None).
The analysis on the financial assets and financial liabilities held by the Group according to the due term of the non-discounted remaining contract obligation is as follows:
|||||
|-|-|-|-|
|Within 1 year|1-2 years|2-5 years|Over 5 years|
|18,585,950,027.06||||
|7,680,171.60||||
|126,199,169.09||||
|10,621,087,872.17||||
|110,667.39||||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||||
|-|-|-|-|
|Within 1 year|1-2 years|2-5 years|Over 5 years|
|3,425,000,000.00||||
|35,295,656.09||||
|13,416,765,194.17||||
|9,341,655,753.66||||
|3,032,838,307.20||||
|136,828,081.81||||
|9,332,132,762.45||||
||8,379,084,541.59|9,711,258,920.02||
|105,023,177.74||||

2. Fair value
1）Financial instruments not measured with fair value
The financial assets and liabilities not measured with fair value mainly include: receivables, short-term loan, payables, long-term loan, bond payable and long-term payables.
The fair value of the long-term loan, long-term payables and bond payable is determined with the present value of the future cash flow after being discounted by the interest rate with comparable credit rating and providing almost the same cash flow.
2）Financial instruments measured with fair value
In this period, the Company did not have the financial assets and liabilities measured with fair value.
XII. Other important matters
There’s no other important notice up to 30 June, 2014.
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
XIII. Notes on the main items of the financial statements of the parent company
1．Other receivables
Amount at the end of the period
||||
|-|-|-|
|Book balance|||
|Amount||Amount|
|28,927,303,913.13|100||
|28,927,303,913.13|100||
|28,927,303,913.13|100||

Continued:
Amount at the end of the period
||||
|-|-|-|
|Book balance|||
|Amount|Ratio (%)|Amount|
|28,619,556,967.65|100||
|28,619,556,967.65|100||
|28,619,556,967.65|100||

Other receivables with significant
single amount and with single counted
and drawn bad debt provision
1） The aging of other receivables is as follows
||||||
|-|-|-|-|-|
|Amount at the end of the period|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Proportion(%)||Amount|Proportion(%)|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||||
|-|-|-|-|
|28,727,303,913.13|99.31|28,419,556,967.65|99.30|
|||200,000,000.00|0.70|
|200,000,000.00|0.69|||
|28,927,303,913.13|100.00|28,619,556,967.65|100.00|

2） Condition of the top 5 units of the amount of other receivables
||||||||||
|-|-|-|-|-|-|-|-|-|
|Unit name||Relationshipwith theCompany|Amount||Aging||Proportion|Nature ofcontent|
||||||||accounting||
||||||||for in the||
||||||||sum of the||
||||||||other||
||||||||receivables||
||Shenzhen China|Subsidiarycompany|1,850,022,373.97||Within 1year|6.4||Operation capital|
||Merchants Properties||||||||
||and Investment Co.,||||||||
||Ltd.||||||||
||Shenzhen China|Subsidiarycompany|1,748,280,637.20||Within 1year|6.04||Operation capital|
||Merchants Power||||||||
||Supply Co., Ltd.||||||||
||Zhenjiang Yingsheng|Subsidiarycompany|1,445,425,293.00||Within 1year|5||Operation capital|
||Property||||||||
||Development Co.,||||||||
||Ltd.||||||||
||Wuhan China Merchants|Subsidiarycompany|1,437,800,000.00||Within 1year|4.97||Operation capital|
||Property Gutian Property Co.,||||||||
||Ltd.||||||||
||China Merchants Property|Subsidiarycompany|1,406,655,133.35||Within 1year|4.86||Operation capital|
||Development (Chongqing)||||||||
||Garden City Co., Ltd.||||||||
||Total|||7,888,183,437.52|||27.27||

（1） Receivables from the related parties
||||||||
|-|-|-|-|-|-|-|
|Unit name||Relationshipwith theCompany||Amount||Proportion|
|||||||accounting|
|||||||for in the|
|||||||sum of the|
|||||||other|
|||||||receivables|
||Shenzhen China Merchants Properties and||Subsidiary|1,850,022,373.97|6.40||
||Investment Co., Ltd.||company||||
||Shenzhen China Merchants Power Supply||Subsidiary|1,748,280,637.20|6.04||
||Co., Ltd.||company||||
||Zhenjiang Yingsheng Property||Subsidiary|1,445,425,293.00|||
||Development Co., Ltd.||company|||5.00|
|Wuhan China Merchants Property Gutian Property Co., Ltd.|||Subsidiary|1,437,800,000.00|4.97||
||||company||||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||||
|-|-|-|-|-|-|-|
||China Merchants Property Development (Chongqing)|Subsidiary|1,406,655,133.35||4.86||
||Garden City Co., Ltd.|company|||||
|Tianjin Guojun Investment Co., Ltd.||Subsidiary|1,269,984,540.00||4.39||
|||company|||||
||China Merchants Property|Subsidiary|1,175,069,660.85||4.06||
||Development (Suzhou) Co., Ltd.|company|||||
||Shanghai Jingyuan Property Development|Subsidiary|1,139,314,000.00||3.94||
||Co., Ltd.|company|||||
|Ningbo Jiangwan Property Co., Ltd.||Cooperative|1,135,556,115.92||3.93||
|||enterprise|||||
||China Merchants Property (Guangzhou)|Subsidiary|994,426,666.67||3.44||
||Co., Ltd.|company|||||
||Shenzhen China Merchants Construction|Subsidiary|883,026,000.00||3.05||
||Co., Ltd.|company|||||
||Chengdu China Merchants Longcheng|Subsidiary|825,543,934.02||2.85||
||Proeprty Development Co., Ltd.|company|||||
||Hangzhou Zhujia Property Development|Subsidiary|820,910,023.54||2.84||
||Co., Ltd.|company|||||
||Beijing Guangying Property Development|Associated|812,016,900.00||2.81||
||Co., Ltd.|company|||||
||Tianjin China Merchants Taida Investment|Subsidiary|802,197,239.59||2.77||
||Co., Ltd.|company|||||
||Shanghai China Merchants Fengrui|Subsidiary|728,320,200.00||2.52||
||Property Co., Ltd.|company|||||
||China Merchants Proeprty Development|Subsidiary|702,999,500.00||2.43||
||(Changzhou) Co., Ltd.|company|||||
||Changshu China Merchants Xicheng|Subsidiary|700,400,000.00||2.42||
||Property Co., Ltd.|company|||||
||Shenzhen Pingshan China Merchants|Subsidiary|654,766,772.14||2.26||
||Property Co., Ltd.|company|||||
||China Merchants Proeprty Development|Subsidiary|646,000,000.00||2.23||
||(Hangzhou) Co., Ltd.|company|||||
||Suzhou China Merchants Yishanjun|Subsidiary|584,257,397.12||2.02||
||Property Co., Ltd.|company|||||
||Shenzhen Jinyu Rongtai Investment|Subsidiary|501,770,000.00||1.73||
||Development Co., Ltd.|company|||||
||Chengdu China Merchants Beihu Land Co.,|Subsidiary|473,367,569.26||1.64||
||Ltd.|company|||||
||Nanning China Merchants Haotian Property|Subsidiary|772,145,987.29||2.67||
||Co., Ltd.|company|||||
||Harbin China Merchants Jiatian Proeprty|Subsidiary|380,890,200.00||1.32||
||Development Co., Ltd.|company|||||
||Chengdu China Merchants Beicheng|Subsidiary|340,000,000.00||1.18||
||Property Co., Ltd.|company|||||
||Wuhan Xinde Proeprty Development Co.,|Subsidiary|323,866,200.00||1.12||
||Ltd.|company|||||
||China Merchants Property Development|Subsidiary|309,620,000.00||1.07||
||(Rizhao) Co., Ltd.|company|||||
||Yunnan China Merchants Chengtou|Subsidiary|267,210,000.00||0.92||
||Property Co., Ltd.|company|||||
||Beijing Conrad Property Development Co.,|Subsidiary|225,225,471.43||0.78||
||Ltd.|company|||||
||China Merchants Property (Zhangzhou)|Subsidiary||200,000,000.00||0.69|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||||
|-|-|-|-|-|-|-|
||Co., Ltd.|company|||||
||China Merchants Property Development|Subsidiary|181,122,100.00||0.63||
||(Guizhou Bijie) Co., Ltd.|company|||||
||Suzhou China Merchants Yonghuafu|Subsidiary|138,643,700.00||0.48||
||Property Co., Ltd.|company|||||
||Foshan China Merchants Xincheng Hi-Tech|Subsidiary|138,615,612.00||0.48||
||Co., Ltd.|company|||||
||China Merchants Property (Shenzhen) Co.,|Subsidiary|129,748,178.15||0.45||
||Ltd.|company|||||
|Ruijia Investment Industrial Co., Ltd.||Subsidiary|99,354,353.01||0.34||
|||company|||||
||Shanghai Xinnanshan Property|Associated|85,021,300.00||0.29||
||Development Co., Ltd.|company|||||
||Shenzhen Shekou Sea World Hotel|Subsidiary|78,534,139.45||0.27||
||Management Co., Ltd.|company|||||
||China Merchants Properties and Investment|Subsidiary|68,500,000.00||0.24||
||(Guizhou Bijie) Co., Ltd.|company|||||
||Qingdao Zhongrunde Automobile Trade|Subsidiary|52,001,539.73||0.18||
||Co., Ltd.|company|||||
||Wuhan Mingjie Property Development Co.,|Subsidiary|47,655,270.00||0.16||
||Ltd.|company|||||
|Dalian Zhaoyu Property Co., Ltd.||Subsidiary|49,179,741.00||0.17||
|||company|||||
||Harbin China Merchants Jiatian Property|Subsidiary|28,485,900.00||0.10||
||Development Co., Ltd.|company|||||
||Shenzhen China Merchants Business|Subsidiary|15,610,000.00||0.05||
||Development Co., Ltd.|company|||||
||Shenzhen China Merchants Anye|Subsidiary|12,750,000.00||0.04||
||Investment Development Co., Ltd.|company|||||
||China Merchants Property Development|Subsidiary|10,981,200.00||0.04||
||(Yantai) Co., Ltd.|company|||||
||China Merchants Property (Zhuhai) Co.,|Subsidiary|4,967,899.00||0.02||
||Ltd.|company|||||
||China Merchants Property Management|Subsidiary|639,387.47||||
||Co., Ltd.|company|||||
||Shenzhen Meiyue Property Consulting Co.,|Subsidiary|95,210.00||||
||Ltd.|company|||||
||Hainan China Merchants Ocean|Subsidiary|59,230.40||||
||Development Co., Ltd.|company|||||
||Shenzhen Jinyu Rongtai Investment|Subsidiary|15,000.00||||
||Development Co., Ltd.|company|||||
||Shenzhen China Merchants Xin’an Property|Subsidiary|10,808.00||||
||Co., Ltd.|company|||||
||Foshan China Merchants Longyuan|Cooperative|10,000.00||||
||Property Co., Ltd.|company|||||
||Total|||26,699,068,383.56||92.29|

2．Long-term equity investment
（1） Classification of long-term equity investment
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|Amount at the end ofthe period|
|8,594,158,112.93|
|192,522,512.09|
|8,786,680,625.02|
|8,786,680,625.02|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
（2） Long-term equity investment on cost basis and equity basis
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Invested companies||Shareholdingproportion(%)|||Voting|Investment cost||Amount at the beginningof the period||Increase in thisperiod|Decrease in thisperiod|Balance at the end of theperiod||Cash dividendin this period|
||||||power||||||||||
||||||proportion||||||||||
||||||(%)||||||||||
||On cost basis||||||||||||||
||China Merchants Property|100.00||100.00||3,000,000,000.00||3,551,473,965.31||||3,551,473,965.31|||
||(Shenzhen) Co., Ltd.||||||||||||||
||Shenzhen China Merchants Power|95.00||95.00||57,000,000.00||119,791,232.79||||119,791,232.79|||
||Supply Co., Ltd.||||||||||||||
||Shenzhen China Merchants|90.00||90.00||22,500,000.00||36,460,596.83||||36,460,596.83|||
||Property Co., Ltd.||||||||||||||
||Shenzhen China Merchants Xin’an|60.00||60.00||25,000,000.00||20,822,211.48||||20,822,211.48|||
||Property Co., Ltd.||||||||||||||
||Ruijia Investment Industrial Co.,|99.00||99.00||19,919,300.00||1,301,324,500.00||||1,301,324,500.00|||
||Ltd.||||||||||||||
||China Merchants Property|90.00||90.00||27,000,000.00||27,000,000.00||||27,000,000.00|||
||Development (Beijing) Co., Ltd.||||||||||||||
||China Merchants Property|90.00||90.00||27,000,000.00||27,000,000.00||||27,000,000.00|||
||Development (Suzhou) Co., Ltd.||||||||||||||
||China Merchants Property|90.00||90.00||27,000,000.00||27,000,000.00||||27,000,000.00|||
||Development (Chongqing) Co., Ltd.||||||||||||||
||China Merchants Property|49.00||49.00||14,700,000.00||14,700,000.00||||14,700,000.00|||
||Development (Nanjing) Co., Ltd.||||||||||||||
||Tianjin Zhaosheng Property Co.,|60.00||60.00||18,000,000.00||18,000,000.00||||18,000,000.00|||
||Ltd.||||||||||||||
||Suzhou China Merchants Nanshan|60.00||60.00||120,000,000.00||120,000,000.00||||120,000,000.00|||
||Property Co., Ltd.||||||||||||||
||China Merchants Property||51.00||51.00||127,500,000.00||229,500,000.00||||229,500,000.00||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Development (Zhangzhou) Co.,||||||||||||
|Ltd.||||||||||||
|China Merchants Property|100.00||100.00||30,000,000.00||30,000,000.00||30,000,000.00|||
|Development (Chongqing) Garden||||||||||||
|City Co., Ltd.||||||||||||
|Chengdu China Merchants Beihu|100.00||100.00||50,000,000.00||50,000,000.00||50,000,000.00|||
|Land Co., Ltd.||||||||||||
|China Merchants Property|100.00||100.00||10,000,000.00||10,000,000.00||10,000,000.00|||
|(Chengdu) Co., Ltd.||||||||||||
|China Merchants Property|100.00||100.00||50,000,000.00||50,000,000.00||50,000,000.00|||
|Development (Xiamen) Co., Ltd.||||||||||||
|Fujian Zhongliansheng Property|50.00||50.00||25,000,000.00||25,000,000.00||25,000,000.00||50,000,000|
|Development Co., Ltd.||||||||||||
|China Merchants Property|100.00||100.00||30,000,000.00||30,000,000.00||30,000,000.00|||
|Development (Wuhan) Co., Ltd.||||||||||||
|Zhenjiang Yingsheng Property|1.00||1.00||7,586,275.00||7,586,275.00||7,586,275.00|||
|Development Co., Ltd.||||||||||||
|Qingdao Zhongrunde Automobile|51.00||51.00||183,731,836.00||183,731,836.00||183,731,836.00|||
|Trade Co., Ltd.||||||||||||
|China Merchants Property|100.00||100.00||30,000,000.00||30,000,000.00||30,000,000.00|||
|Development (Guizhou Bijie) Co.,||||||||||||
|Ltd.||||||||||||
|Shenzhen China Merchants|100.00||100.00||1,883,367,495.52||1,883,367,495.52||1,883,367,495.52|||
|Properties and Investment Co., Ltd.||||||||||||
|Harbin China Merchants Jiatian|50.00||50.00||80,250,000.00||80,250,000.00||80,250,000.00|||
|Property development Co., Ltd.||||||||||||
|China Merchants Property|100.00||100.00||30,000,000.00||30,000,000.00||30,000,000.00|||
|Development (Changzhou) Co.,||||||||||||
|Ltd.||||||||||||
|Hainan China Merchants Ocean|60.00||60.00||240,000,000.00||240,000,000.00||240,000,000.00|||
|Development Co., Ltd.||||||||||||
|Shenzhen China Merchants|20.00||20.00||400,000.00||400,000.00||400,000.00|||
|Property Consulting Co., Ltd.||||||||||||
|China Merchants Property||10.00||10.00||3,000,000.00||3,000,000.00||3,000,000.00||

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|(Shanghai) Co., Ltd.|||||||||||
||Shanghai China Merchants Property|10.00|10.00|3,000,000.00|3,000,000.00|||3,000,000.00|||
||Co., Ltd.||||||||||
||Zhenjiang Nanshan Creative|60.00|60.00|30,000,000.00|30,000,000.00|||30,000,000.00|||
||Industrial Park Development Co.,||||||||||
||Ltd.||||||||||
||Shenzhen Pingshan China|100.00|100.00|14,000,000.00|14,000,000.00|||14,000,000.00|||
||Merchants Property Co., Ltd.||||||||||
||Tianjin Guojun Investment Co.,|100.00|100.00|300,550,000.00|300,550,000.00|||300,550,000.00|||
||Ltd.||||||||||
||Nanning China Merchants Haotian|70.00|70.00|10,200,000.00|10,200,000.00|||10,200,000.00|||
||Property Co., Ltd.||||||||||
||China Merchants Property|100.00|100.00|500,000,000.00|500,000,000.00||470,000,000.00|30,000,000.00|||
||Development (Hangzhou) Co., Ltd.||||||||||
||China Merchants Property|100.00|100.00|30,000,000.00|30,000,000.00|||30,000,000.00|||
||Development (Rizhao) Co., Ltd.||||||||||
||Yantai China Merchants Property|100.00|100.00|30,000,000.00||30,000,000.00||30,000,000.00|||
||Co., Ltd.||||||||||
||Check by the equity method||||||||0.00||
||China Merchants Guangming|49.00|49.00|196,000,000.00|163,856,555.45|519,909.21||164,376,464.66|||
||Science Park Co., Ltd.||||||||||
||Ningbo Jiangwan Property|34.00|34.00|30,000,000.00|29,025,146.81|-879,099.38||28,146,047.43|||
||Development Co., Ltd.||||||||||
|Total||||7,282,704,906.52|9,227,039,815.19|29,640,809.83|470,000,000.00|8,786,680,625.02||50,000,000|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
（3） Investment on the cooperative enterprises and associated enterprises
|||||||
|-|-|-|-|-|-|
|Shareholdingproportion(%)|Votingpowerproportion(%)|Total amount ofassets at the endof the period|Total amount ofliabilities at theend of the period|Total amount ofnet assets at theend of theperiod|Sum ofoperatingincome in thisperiod|

Associated enterprise
|||||||
|-|-|-|-|-|-|
|49|49|660,268,974.78|324,806,801.99|335,462,172.79|18,749,757.87|

Cooperative enterprise
|||||||
|-|-|-|-|-|-|
|34|34|2,405,146,847.10|2,380,599,648.79|24,547,198.31||
|||3,065,415,821.88|2,705,406,450.78|360,009,371.10|18,749,757.87|

3．Operating income and operating cost
||||||||||
|-|-|-|-|-|-|-|-|-|
|Items|Amount in this period|||||Amount in the same period of last|||
|||||||year|||
|||Operating income||Operating cost||Operating income||Operating cost|
|Total|500,000.00||1,057,252.16||11,080,000.00||1,016,316.92||

（1） Mainbusinesses—classified by industry
|||||||
|-|-|-|-|-|-|
|Industry name||Amount in this period||Amount in the same period oof laste year||
|||Operating income|Operating cost|Operating income|Operating cost|
||Property industry|500,000.00|1,057,252.16|11,080,000.00|1,016,316.92|
||Total|500,000.00|1,057,252.16|11,080,000.00|1,016,316.92|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
（2） Operating income condition of the top five clients
||
|-|
|Operating income|
|500,000.00|
|500,000.00|

4．Financial expenses
||
|-|
|Amount in this period|
|375,057,292.10|
|301,188,642.17|
|9,155,954.50|
|97,009.66|
|83,121,614.09|

5．Investment income
（1） Sources of investment income
||
|-|
|Amount in this period|
|51,508,689.22|
|-359,190.18|
|2,689,938.80|
|53,839,437.84|

（2） Long-term equity investment income checked by the cost method
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|Amount in thisperiod|Amount in thesame period of lastyear|
|51,508,689.22|0.00|
|50,000,000.00|0.00|
|1,508,689.22|0|

（3） Long-term equity investment income checked by the equity method
|||
|-|-|
|Amount in thisperiod|Amount in thesame period of lastyear|
|-359,190.18|-1,290,760.00|
|519,909.20|-1,290,760.00|
|-879,099.38||

6．Supplementing data for the cash flow statement of the parent company
||
|-|
|Amount in this period|
|-52,233,250.61|
|343,673.29|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||
|-|
|375,057,292.10|
|-53,839,437.84|
|18,156,785,247.48|
|-20,768,034,571.68|
|-2,341,921,047.26|
|5,153,888,767.59|
|6,296,121,745.68|
|-1,142,232,978.09|

 XIV. Supplementing data
1. Details of the current non-recurring profit and loss
According to the provisions of the No.1 Explanatory Announcement on the Information Disclosure of the Companies Issuing SecuritiesPublicly—Non-Recurring Profit andLoss（2008）of China Securities Regulatory Commission, the non-recurring profit and loss of the Group in the first half of 2014 of the Group is as follows:
Unit: RMB Yuan
|||
|-|-|
|Amount in thisperiod|Amount in thesane period of lastyear|
|-160,878.35|-440,707.52|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|Amount in thisperiod|Amount in thesane period of lastyear|
|25,262,476.52|2,198,400.00|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
|||
|-|-|
|Amount in thisperiod|Amount in thesane period of lastyear|
|-11,330,134.03|-5,370,543.81|
|-63,138,644.29|339,878,500.00|
|-49,367,180.15|336,265,648.67|
|-5,933,621.72|-971,153.80|
|-2,141,420.73|-2,336,444.77|
|-57,442,222.60|332,958,050.10|

Note: The other profit and loss items complying with the definition of non-recurring profit and loss are the Amendment on equity investment income according to the actual carry-over area in this report period of Shenzhen China Merchants Overseas Chinese City Investment Co., Ltd.
2. Return on equity and EPS
According to the provisions of No.9 Compilation Rule of Information Disclosure of the Companies Issuing SecuritiesPublicly—Calculation and Disclosure of Return on Equity and EPS (Revised in 2010) of China Securities Regulatory Commission, the weighted average return on equity, basic EPS and diluted EPS in the first half of 2014 of the Group are as follows:
|||
|-|-|
|Weighted averagereturn on equity (%)||
||Basic EPS|
|6.53|0.6931|
|6.74|0.7154|

3. Explanations on the abnormal condition of the main accounting statement items of the company and the causes
1）The items with great changes from the end of the period to the beginning of the period of the
consolidated balance sheet are listed as follows:
招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Amount at the end of theperiod|Amount at the beginningof the period|Changeamount (%)|
|126,199,169.09|76,864,814.81|64|
|4,910,209,986.26|2,815,967,507.79|74|
|1,043,294,549.39|770,257,880.69|35|
|161,224,767.47|385,894,712.53|-58|
|816,955,117.64|120,927,194.29|576|
|9,332,132,762.45|6,331,007,932.13|47|
||10,473,360.10|-100|
|2,338,349,360.00|3,560,491,070.18|-33|
|2,575,950,754.00|1,717,300,503.00|50|

2）The items with great changes on year-on-year basis in the consolidated income statement in this period are listed as follows:
||||
|-|-|-|
|Amount in this period|Amount in the sameperiod of the previousyear|Changeamount (%)|
|1,614,019,700.29|2,579,430,723.77|-37|
|326,102,386.55|73,348,971.39|345|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
||||
|-|-|-|
|Amount in this period|Amount in the sameperiod of the previousyear|Changeamount (%)|
|888,293.99|-172,366,279.03|-101|
|143,318,415.51|282,179,758.93|-49|
|35,496,879.63|11,774,703.28|201|
|21,725,415.49|15,387,554.61|41|
|964,496,768.41|1,476,586,830.38|-35|

招商局地产控股股份有限公司财务报表附注
2014年1月1日至2014年6月30日
（本财务报表附注除特别注明外，均以人民币元列示）
Section IX Directory of the Documents Available for Inspection (1) Financial statements carrying the signatures and seals of the legal representative, responsible person in charge of the accounting work and responsible person of the accounting institution.
(2) Originals of all the Company documents and announcements publicly disclosed on the newspapers appointed by China Securities Regulatory Commission in 2014.
(3) English version of the Semi-Annual report of 2014.
China Merchants Property Development Co., Ltd. August 19, 2014