HaiNan Pearl River Holdings Co., Ltd.
Abstract of the 2015 Semi-annual Report
1.Importantreminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other websitedesignatedbyCSRC.
ThisreportispreparedinbothChineseandEnglish.Shouldtherebeanydiscrepancybetweenthetwoversions,theChineseversion shallprevail.
Companyprofile
||||||
|-|-|-|-|-|
|Stockabbreviation|ZJKG,ZJB|Stockcode||000505,200505|
|Stockexchangelistedwith|ShenzhenStockExchange||||
|Forcontact|CompanySecretary||SecuritiesAffairsRepresentative||
|Name|YuCuihong||YuCuihong||
|Tel.|0898-68583723||0898-68583723||
|Fax|0898-68581026||0898-68581026||
|E-mail|hnpearlriver@21cn.net||hnpearlriver@21cn.net||

2.Financialhighlightsandchangesinshareholders
(1)Financialhighlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correctionofanyaccountingerror?
□Yes√No
|||||
|-|-|-|-|
||Reportingperiod|Sameperiodoflastyear|YoY+/-|
|Operatingrevenues(RMBYuan)|136,117,829.19|124,684,500.79|9.17%|
|Net profit attributable toshareholders of the Company (RMBYuan)|21,492,625.03|-76,849,759.83|127.97%|
|Net profit attributable toshareholders of the Company afterextraordinarygains andlosses (RMBYuan)|-103,796,313.13|-77,979,104.27|-33.11%|
|Net cash flows from operatingactivities(RMBYuan)|-94,962,794.82|-156,748,554.81|39.42%|
|BasicEPS(RMBYuan/share)|0.05|-0.18|127.98%|
|DilutedEPS(RMBYuan/share)|0.05|-0.18|127.98%|
||Asattheendofthereportingperiod|Asattheendoflastyear|YoY+/-|
|Totalassets(RMBYuan)|1,588,084,330.14|1,645,436,644.78|-3.49%|
|NetassetsattributabletoshareholdersoftheCompany(RMBYuan)|-88,070,500.20|15,564,470.40|-665.84%|

(2)Shareholdingsofthetop10commonshareholders
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of commonshareholders at the end of thereportingperiod|||40,122|||||
|Shareholdingsofthetop10commonshareholders||||||||
|Nameofshareholder|Natureofshareholder|Shareholdingpercentage||Totalcommonsharesheldattheperiod-end|Numberofrestrictedcommonsharesheld|Pledgedorfrozenshares||
|||||||Statusofshares|Numberofshares|
|BeijingWanfaRealEstateDevelopmentCo.,Ltd.|State-ownedcorporation|26.36%||112,479,478||||
|LiLeonZhanWei|Foreignindividual|2.38%||10,158,806||||
|YaoXiuGuang|Foreignindividual|2.06%||8,777,329||||
|YaoLiyuan|Domesticindividual|0.46%||1,963,376||||
|ZhangXiaoxia|Domesticindividual|0.46%||1,949,250||||
|LuYusheng|Domesticindividual|0.39%||1,649,750||||
|WangJianjun|Domesticindividual|0.37%||1,599,910||||
|ChenMingwei|Domesticindividual|0.36%||1,523,704||||
|ZhongrongInternationalTrustCo.,Ltd.-RongxiangNo.4StructuralSecuritiesInvestmentAssembledFundsTrust|Other|0.34%||1,440,800||||
|SouthChinaFinancialHoldingsLimited|Domesticnon-state-ownedcorporation|0.30%||1,299,500|1,299,500|||
|Explanation on associatedrelationship or personsacting in concert among the||Among the shareholders above, there exists no related-party relationship betweenthe principal shareholder and other shareholders of the Company. Nor they areparties with concerted action as prescribed in the Information Disclosure||||||

|||
|-|-|
|above-mentionedshareholders|Administrative Methods for Changes in Shareholding of Shareholders of ListedCompanies. And it is unknown whether there is related-party relationship amongothershareholdersandwhethertheyareprescribedpartieswithconcertedaction.|
|Shareholders taking part insecurities margin trading (ifany)|ShareholderWangJianjun holds 1,599,910shares in the Company through a clientaccount of collateral securities for margin trading in Nanjing Securities Co., Ltd.AndshareholderRenYuhuaholdsatotalof1,230,700sharesintheCompany,with30,700 shares through a common securities account and 1,200,000 shares througha client account of collateral securities for margin trading in China GalaxySecuritiesCo.,Ltd.|

(3)Shareholdingsofthetop10preferenceshareholders
□Applicable√Inapplicable
Nopreferencesharesinthereportingperiod.
(4)Changeofthecontrollingshareholderortheactualcontroller
Changeofthecontrollingshareholderinthereportingperiod
□Applicable√Inapplicable
Thecontrollingshareholderdidnotchangeinthereportingperiod.
Changeoftheactualcontrollerinthereportingperiod
□Applicable√Inapplicable
Theactualcontrollerdidnotchangeinthereportingperiod.
3.Discussionandanalysisbythemanagement
In the first half of 2015, we still faced great difficulties in our operation due to the strong pressure for us to repay the principals and interest of the mature loans previously secured, the rising labor cost in our property and hotel services, the fierce competition ontheregional market, etc.
Up to 30 Jun. 2015, our un-audited total assets were RMB 1,588,084,330.14 and net assets attributable to our shareholders were RMB -88,070,500.20. For Jan.-Jun. 2015, we achieved operating revenues of RMB 136,117,829.19 and net profits of RMB 18,641,274.06, of which the net profits attributable to the owners of the Company (without subsidiaries) were RMB 21,492,625.03 and the minorityshareholders’ income was RMB -2,851,350.97.
I. Operation review forthereportingperiod
1. During the reporting period, the progress of the major structures of the38# building,39# building and40# building of Phase III of Hubei Meiling Qingcheng Project had respectively reached the 27th floor, 24th floor and 21st floor; the progress of the brickwork and the secondary structure had respectively reached the 15th floor, 10th floor and 8th floor; the waterproof engineering and backfill engineering of the basement had completed; the completed amount of the main project was of RMB 63 million and the accumulative completed amount was of RMB 93 million. There were 446 sets of the residences of 41,950 square meters in the 39thbuilding and 40thbuilding of the opening quotation of the first period and there were 234 sets completed the subscription on the day of opening as
well as the amount of the tentative contract of the purchase letter was about of RMB 230 million that acquired the
favorable performance oftheopening quotation.
2. The business season of the Snow Town of the controlling shareholder, Mudanjiang Tourist Development Group
in 2015 was from Jan. to Mar. and since Apr., the Group went out of business after the snow season. The realized
operating income of the business season of the first half year was of RMB 22.5036 million with the realized net
profits of RMB 12.5404 million and within the reporting period, the Group continued to invest of about RMB 30
million for the construction of the comprehensive service center project of the Days Resort in Snow Town which had notcompleted thecapping ofthemajorstructures with thesecondary structure being executing.
3. Property management: the property management company the Company attributed to was facing larger financial risks and capital pressure. Owning to part of the “migrant bird type” project was in the property income recycling slack season, part of the income of the first half year delayed the recycling. Meanwhile the lowest wage standards and the payment base of the employees' social security had constantly been up-regulated, which caused the labor cost of the employees increased sharply compared to the same period of the previous years. The property company of the first half year of 2015 had completed the operating income of RMB 94.1058 million, the expense of operating cost of RMB 94.5869 million, the paid business tax of RMB 5.4576 million and the realized profits of RMB -0.4852 million as well as there were 86 management projects of the property company and its subsidiaries and branch companies with the comprehensive management area of about 7.50 million square meter, of which there were 67 residence projects and 14 office projects. In terms of the structure of the project, the percentage of the residence projects was of80%, while under the situation of the unraised property fee of more than ten years but the operating cost increased by twofoldness, the profit sources of the residence projects became smaller even was in theloss state.
4.Progress oftheprojects invested inprevious period:
The coal logistics project of Mulin Town had changed the plan as used the land lot for developing the solar power generation and the greenhouse agriculture projects, during the reporting period, had completed project approval, nowthe Companyis applying project approval procedures, etc tothe relevant departments.
Yunxi iron mines project: Owning to the continuous low level of the market price of the powdered iron, the Company temporary slowed down the original plan of mining area production line construction and equipment installation. During the reporting period, the Company and the cooperation party strengthen the management of mining area, contacted with many steel mills, inspection, straighten out and establish sales channel. In line with the market condition, adjusted production line construction and mineral detailed survey schedule of mining area of Zhao courtyard and Dujiawan. Due to the iron ores grade of Zhao courtyard was lower than Dujiawan, in line with the analysis of market condition, planed to transfer the production equipment invested to Dujiawan, the iron ore grade had larger competitiveness in the market. Meanwhile, considering the influence of the continuous low level of the domestic market price of iron ore, the Company actively seeks project transfer or introduces strategic investors to develop theproject in common.
During the reporting period, the land certificate for the industrial land of the Real Estate Development Project on a Former Tubular Pile Factory had been completed, so far, the Company is waiting for the land certificate issued by Land Departments.The planning and design of project will be conducted after the adjustment of regulatory detailed planning in thearea issued by theSanya government.
5. During the reporting period, in order to relieve capital pressure of repaying capital with interest of the loan in previous period due in reporting period, the Company had sold its holding of 7,750,000 shares of Southwest Securities which obtained investment income RMB 120 million, which was theCompany’s main profit sources in thefirst half ofthe year .
4.Mattersrelatedtofinancialreporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as compared with the financialreportingoflastyear
□Applicable√Inapplicable
Nosuchcasesinthereportingperiod.
(2)Explainanyretrospectiverestatementduetocorrectionofsignificantaccountingerrorsinthereportingperiod□Applicable√Inapplicable
Nosuchcasesinthereportingperiod.
(3)Explainanychangesintheconsolidationscopeascomparedwiththefinancialreportingoflastyear
□Applicable√Inapplicable
Nosuchcasesinthereportingperiod.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard audit report” issuedbytheCPAsfirmforthereportingperiod
□Applicable√Inapplicable
|||||
|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||
|ConsolidatedBalanceSheet||||
||||Unit：RMB|
|ASSETS|Note(VIII)|30June2015|1January2015|
|Currentassets||——|——|
|CurrencyFunds||136,016,986.29||
|Provisionofsettlementfund||||
|Fundslent||||
|Financialassetsatfairvaluethroughprofitorloss||||
|Derivativefinancialassets||||
|Notesreceivable||||
|Accountsreceivable||14,168,842.98||
|Advancestosuppliers||136,033,295.38||
|Interestreceivable||||
|Dividendsreceivable||260,015.00||
|Otherreceivables||261,993,360.85||
|Buyingbackthesaleoffinancialassets||||
|Inventories||439,605,383.59||
|Including:Rawmaterial||||
|Finishedgoods||||
|Reclassifiedtoassetsheldforsale||||
|Currentportionofnon-currentassets||||
|Othercurrentassets||3,000,000.00||
|Totalcurrentassets||991,077,884.09||
|Non-currentassets||——|——|
|Available-for-salefinancialassets||11,411,309.90||
|Held-to-maturityinvestments||||
|Long-termreceivables||||
|Long-termequityinvestments||35,756,366.33||
|Investmentproperty||21,446,645.11||
|Fixedassetsoriginalcos||425,779,641.92||
|Less:Accumulateddepreciation||||
|Fixedassets--netvalue||425,779,641.92||
|Less:Fixedassetsprovisionforimpairment||||
|Fixedassets--netbookvalue||425,779,641.92||
|Constructioninprogress||60,094,357.34||
|Constructionmaterials||393,706.60||
|Fixedassetspendingfordisposal||||
|Productivebiologicalassets||||
|Oilandgasassets||||
|Intangibleassets||30,076,762.69||
|Developmentdisbursements||||
|Goodwill||||
|Long-termprepaidexpenses||10,465,816.16||
|Deferredtaxassets||||
|Othernon-currentassets||1,581,840.00|1,581,840.00|
|Totalnon-currentassets||597,006,446.05||
|Totalassets||1,588,084,330.14||
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.||||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun||||

|||||
|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||
|ConsolidatedBalanceSheet||||
||||Unit：RMB|
|ASSETS|Note(VIII)|30June2015|1January2015|
|Currentliabilities||——|——|
|Short-termborrowings||19,000,000.00|19,000,000.00|
|Financialliabilitiesatfairvaluethroughprofitorloss||||
|Derivativefinancialassets||||
|Notespayable||||
|Accountspayable||22,096,077.65||
|Advancesfromcustomers||25,640,247.62||
|Employeebenefitspayable||11,018,533.61||
|Including:Accruedpayroll||11,018,533.61||
|Taxespayable||7,662,634.49||
|Including:Taxespayable||7,662,634.49||
|Interestpayable||147,867,697.79||
|Dividendspayable||3,213,302.88||
|Otherpayables||598,376,630.20||
|Currentportionofnon-currentliabilities||386,098,907.05||
|Othercurrentliabilities||||
|Totalcurrentliabilities||1,220,974,031.29||
|Non-currentliabilities||——|——|
|Long-termborrowings||453,866,666.68||
|Bondspayable||||
|Long-termpayable||||
|Grantspayable||||
|Provisions||||
|Deferredincome||||
|Deferredtaxliabilities||674,902.10||
|Othernon-currentliabilities||||
|Totalnon-currentliabilities||454,541,568.78||
|Totalliabilities||1,675,515,600.07||
|Equity||——|——|
|Sharecapital||426,745,404.00||
|Capitalreserve||334,690,837.45||
|Less:TreasuryShare||||
|Othercomprehensiveincome||||
|Surplusreserve||109,487,064.39||
|Including:Statutorysurplusreserve||||
|Provisionforgeneralrisks||||
|Retainedearnings||-958,993,806.04||
|Equityattributabletoparentcompany||-88,070,500.20||
|*Minorityinterests||639,230.27||
|Totalowner'sequity||-87,431,269.93||
|Totalliabilitiesandowner'sequity||1,588,084,330.14||

||
|-|
|Theaccompanyingnotesformanintegralpartofthefinancial|
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun|

||||||
|-|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited|||||
|ConsolidatedIncomeStatement|||||
||||Unit：RMB||
|ITEM|Note|30June2015||30June2014|
|I.Revenue||136,117,829.19|||
|Including：Operatingincome||136,117,829.19|||
|II.Totalcost||226,073,509.86|||
|Including：Operatingcost||100,737,341.87|||
|Interestexpenses|||||
|Handlingchargesandcommissionsexpenses|||||
|Businesstaxesandsurcharges||7,631,999.47||7,305,149.15|
|Sellingexpenses||2,806,121.97|||
|Administrativeexpenses||48,527,378.52|||
|Including:researchanddevelopmentexpenses|||||
|Financeexpenses||65,550,902.11|||
|Including:Interestexpenses|||||
|Interestincome|||||
|Netlossonforeignexchange|||||
|Impairmentlossesofassets||819,765.92|||
|Others|||||
|Add：Gainonfair-valuechanges（“-”forloss）|||||
|Investmentincome（“-”forloss）||124,137,366.75|||
|Including：investmentincomefromassociatesandjointventures||-205,388.30|||
|Gainorlossonforeignexchange( "-"forloss)|||||
|III.Operatingprofits（“－”forloss）||34,181,686.08|||
|Add：Non-operatingincome||508,533.86|||
|Including：Gainsondisposalofnon-currentassets||12,073.95||1,163.87|
|Gainsfromexchangeofnon-monetaryassets|||||
|Governmentgrants|||||
|Gainsfromdebtrestructuring|||||
|Less：Non-operatingexpenses||194,835.62|||
|Including：Lossesondisposalofnon-currentassets|||||
|Lossesfromexchangeofnon-monetaryassets|||||
|Lossesfromdebtrestructuring|||||
|IV.Profitbeforetax（“－”forloss）||34,495,384.32|||
|Less：Incometaxexpenses||15,854,110.26|||
|V.Netprofit（“－”forloss）||18,641,274.06|||
|NetprofitattributabletoownersoftheCompany||21,492,625.03|||
|*Profit/lossattributabletominorityshareholders||-2,851,350.97|||
|VI.Post-taxnetvalueofothercomprehensiveincome|||||
|Post-taxnetvalueofothercomprehensiveincomeattributabletoownersoftheCompany||-125,127,595.63|||
|(I)Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss||-125,127,595.63||-8,021,250.00|
|(II)Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss|||||
|i.Othercomprehensiveincomesthatbeabletoreclassifyasprofitunderequitymethod.|||||
|ii.Gainorlossfromfair-valuechangesonavailableforsalefinancialassets||-125,127,595.63||-8,021,250.00|
|iii.Reclassifyheld-to-maturityinvestmenttohold-to-salefinancialassetsgainorloss|||||
|iv.Theeffectivecashflowhedgeinggainorloss|||||
|v.Translationdifferencesarisingontranslationoffinancialstatementsdenominatedinforeigncurrencies|||||
|Post-taxnetvalueofothercomprehensiveincomeattributabletominorityshareholders|||||
|VII.Totalcomprehensiveincomeattributableto:||-106,486,321.57|||
|OwnersoftheCompany||-103,634,970.60|||

||||
|-|-|-|
|*Minorityshareholders|||
|VIII.Earningspershare|||
|i.Basicearningspershare|0.05|-0.18|
|ii.Dilutedearningspershare|0.05|-0.18|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.|||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun|||

||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited|||||||||||||||
|ConsolidatedStatementofChangesinOwners’Equity|||||||||||||||
|ITEM|Note(VIII)|2015-6-30|||||||||||||
|||Attributabletotheparentcompany|||||||||||Minorityinterests||
|||Paid-incapital|Otherequityinstruments|Capitalreserve|Less:treasuryshares|Othercomprehensiveincome|Specializedreserve|Surplusreserve|Provisionforgeneralrisks|Retainedearnings|Others|Sub-total|||
|||1|2|3|4|5|6|7|8|9|1|11|12|13|
|I.Closingbalanceoftheprecedingyear||426,745,404.00||334,690,837.45||125,127,595.63||109,487,064.39||-980,486,431.07|0|15,564,470.40|3,490,581.24||
|Add:Changesinaccountingpolicies||—|—|—|—|—|—|—|—|—|—|—|—|—|
|CorrectionsoferrorsinPriorPeriod||—|—|—|—|—|—|—|—|—|—|—|—|—|
|Others||-|-|-|-|-|-|-|-|-|-|-|-|-|
|II.Openingbalanceofthecurrentyear||426,745,404.00||334,690,837.45||125,127,595.63||109,487,064.39||-980,486,431.07||15,564,470.40|3,490,581.24||
|III.Changesfortheyear||||||-125,127,595.63||||21,492,625.03||-103,634,970.60|-2,851,350.97||
|(I)Totalcomprehensiveincome||||||-125,127,595.63||||21,492,625.03||-103,634,970.60|-2,851,350.97||
|(II)Capitalcontributionandwithdrawalsbyowners|||||||||||||||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|iii.Share-basedpaymentrecordedinowner'sequity||-|-|-|-|-|-|-|-|-|-|-|-||
|iv.Others|||||||||||||||
|(III).Profitsdistribution||-|-|-|-|-|-|-|-|-|-|-|-||
|i.Appropriationtosurplusreserve||-|-|-|-|-|-|-|-|-|-|-|-||
|Including:Statutorysurplusreserve||-|-|-|-|-|-||-||-|-|-||
|Optional surplusreserve||-|-|-|-|-|-|-|-|-|-|-|-||
|ii.Appropriationofprovisionforgeneralrisks||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
||||-||-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-||-|-|-||-||-|-|-||
|IV.Closingbalanceoftheyear||426,745,404.00||334,690,837.45||||109,487,064.39||-958,993,806.04||-88,070,500.2|639,230.27||

||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.|||||||||||||||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun|||||||||||||||
|HainanPearlRiverHoldingCompanyLimited|||||||||||||||
|ConsolidatedStatementofChangesinOwners’Equity|||||||||||||||
|ITEM|Note(VIII)|2014-6-30|||||||||||||
|||Attributabletotheparentcompany|||||||||||Minorityinterests||
|||Paid-incapital|Otherequityinstruments|Capitalreserve|Less:treasuryshares|Othercomprehensiveincome|Specializedreserve|Surplusreserve|Provisionforgeneralrisks|Retainedearnings|Others|Sub-total|||
|||1|2|3|4|5|6|7|8|9|10|11|12|13|
|I.Closingbalanceoftheprecedingyear||426,745,404.00|-|334,260,156.98|-|53,285,095.63|-|109,487,064.39|-|-807,063,505.41|-|116,714,215.59|11,253,753.74||
|Add:Changesinaccountingpolicies|||||||||||||||
|CorrectionsoferrorsinPriorPeriod|||||||||||||||
|Others|||||||||||||||
|II.Openingbalanceofthecurrentyear||426,745,404.00|-|334,260,156.98|-|53,285,095.63|-|109,487,064.39|-|-807,063,505.41|-|116,714,215.59|11,253,753.74||
|III.Changesfortheyear||-|-||-|-8,021,250.00|-|-|-|-77,808,958.01|-|-85,830,208.01|7,780,489.69||
|(I)Totalcomprehensiveincome||-|-||-|-8,021,250.00|-|-||-76,849,759.83|-|-84,871,009.83|-3,178,708.49||
|(II)Capitalcontributionandwithdrawalsbyowners||-|-||-|-|-|-|-|-|-||10,000,000.00||
|||-|-||-|-|-|-|-|-|-||10,000,000.00||
|||-|-|-|-|-|-|-|-|-|-||||
|iii.Share-basedpaymentrecordedinowner'sequity||-|-|-|-|-|-|-|-|-|-||||
|iv.Others||-|-||-|-|-|-|-|-|-||||
|(III).Profitsdistribution||-|-|-|-|-|-|-|-|-959,198.18|-|-959,198.18|959,198.18||
|i.Appropriationtosurplusreserve||-|-|-|-|-|-|-|-|-|-|-|-||
|Including:Statutorysurplusreserve||-|-|-|-|-|-||-||-|-|-||
|Optional surplusreserve||-|-|-|-|-|-|-|-|-|-|-|-||
|ii.Appropriationofprovisionforgeneralrisks||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-959,198.18|-|-959,198.18|959,198.18||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||
|||-|-|-|-|-|-|-|-|-|-|-|-||

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||-|-|-|-|-|-|-|-|-|-||-|
|IV.Closingbalanceoftheyear|426,745,404.00|-|334,260,156.98|-|45,263,845.63|-|109,487,064.39|-|-884,872,463.42|-|30,884,007.58|19,034,243.43|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.|||||||||||||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun|||||||||||||

|||||
|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||
|ConsolidatedCashFlowStatement||||
||||Unit：RMB|
|ITEM|Note(VIII)|30June2015|30June2014|
|Ⅰ.Cashflowsfromoperatingactivities：||——|——|
|Cashreceivedfromsalesandservices||131,025,358.54|129,259,671.62|
|Taxrefunds||||
|Netcashfromotheroperatingactivities||23,284,389.75|17,928,270.73|
|Sub-totalofcashinflowsfromoperatingactivities||154,309,748.29|147,187,942.35|
|Cashpaidforgoodsandservices||108,549,739.93|181,406,361.68|
|Cashpaidtoandonbehalfofemployees||84,422,863.01|77,094,698.25|
|Paymentoftaxesandsurcharges||13,664,710.40|11,079,690.36|
|Othercashpaymentsrelatingtooperatingactivities||42,635,229.77|34,355,746.87|
|Sub-totalofcashoutflowsfromoperatingactivities||249,272,543.11|303,936,497.16|
|Netcashflowsfromoperatingactivities||-94,962,794.82|-156,748,554.81|
|Ⅱ.Cashflowsfrowinvestingactivities：|||——|
|Cashreceiptsfromwithdrawofinvestments||139,371,794.42|36,060,000.00|
|Cashreceivedfrominvestmentincome|||37,638.27|
|Netcashfromdisposaloffixedassets,intangibleassetsandotherlong-termassets||439,810.00|1,301,297.50|
|Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits||||
|Othercashreceiptsrelatingtoinvestingactivities|||13,871.23|
|Sub-totalofcashinflowsfrominvestingactivities||139,811,604.42|37,412,807.00|
|Cashpaidforfixedassets,intangibleassetsandotherlong-termassets||5,131,894.84|72,778,177.60|
|Cashpaymentsforinvestments||3,000,000.00|24,700,000.00|
|Netcashpaidforacquiringsubsidiariesandotherbusinessunits||||
|Netcashusedinotherinvestingactivities||||
|Sub-totalofcashoutflowsfrominvestingactivities||8,131,894.84|97,478,177.60|
|Netcashflowsfrominvestingactivities||131,679,709.58|-60,065,370.60|
|Ⅲ.Cashflowsfromfinancingactivities：|||——|
|Cashproceedsfrominvestmentsbyothers|||10,000,000.00|
|Including：cashreceivedbysubsidiariesfromminorityshareholders'investment|||10,000,000.00|
|Cashreceivedfromborrowings||380,748,000.00|301,650,000.00|
|Cashreceivedfromissuanceofbonds||||
|Cashreceiptsrelatedtootherfinancingactivities||||
|Sub-totalofcashinflowsfromfinancingactivities||380,748,000.00|311,650,000.00|
|Cashrepaymentsfordebts||327,745,062.26|43,394,693.08|
|Cashpaymentsfordistributionofdividends,profitandinterestexpenses||39,602,363.55|18,338,912.26|
|Including:dividendsorprofitpaidbysubsidiariestominorityshareholders||||
|Othercashpaymentsrelatingtofinancingactivities||11,504,695.28|16,472,500.00|
|Sub-totalofcashoutflowsfromfinancingactivities||378,852,121.09|78,206,105.34|
|Netcashflowsfromfinancingactivities||1,895,878.91|233,443,894.66|
|Ⅳ.Effectofforeignexchangeratechangesoncashandcashequivalents||-||
|Ⅴ.Netincreaseincashandcashequivalents||38,612,793.67|16,629,969.25|
|Add:beginningbalanceofcashandcashequivalents||97,404,192.62|62,362,242.69|
|Ⅵ.Endingbalanceofcashandcashequivalents||136,016,986.29|78,992,211.94|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.||||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun||||

|||||
|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||
|BalanceSheetoftheCompany||||
||||Unit：RMB|
|ASSETS|Note(XIII)|30June2015|1January2015|
|Currentassets：||——|——|
|Cashandcashequivalent||2,050,073.81||
|Provisionofsettlementfund||||
|Fundslent||||
|Financialassetsatfairvaluethroughprofitorloss||||
|Derivativefinancialassets||||
|Notesreceivable||||
|Accountsreceivable||3,250,306.83||
|Advancestosuppliers||50,555,660.00||
|Interestreceivable||||
|Dividendsreceivable||260,015.00||
|Otherreceivables||739,888,971.54||
|Buyingbackthesaleoffinancialassets||||
|Inventories||4,824,035.45||
|Including:Rawmaterial||||
|Finishedgoods||||
|Reclassifiedtoassetsheldforsale||||
|Currentportionofnon-currentassets||||
|Othercurrentassets||||
|Totalcurrentassets||800,829,062.63||
|Non-currentassets：|||——|
|Available-for-salefinancialassets||11,411,309.90||
|Held-to-maturityinvestments||||
|Long-termreceivables||||
|Long-termequityinvestments||293,759,491.38||
|Investmentproperty||6,837,322.43||
|Fixedassetsoriginalcos||||
|Less:Accumulateddepreciation||||
|Fixedassets--netvalue||||
|Less:Fixedassetsprovisionforimpairment||||
|Fixedassets--netbookvalue||14,014,760.68||
|Constructioninprogress||||
|Constructionmaterials||||
|Fixedassetspendingfordisposal||||
|Productivebiologicalassets||||
|Oilandgasassets||||
|Intangibleassets||1,433,881.50||
|Developmentdisbursements||||
|Goodwill||||
|Long-termprepaidexpenses||745,790.84||
|Deferredtaxassets||||
|Othernon-currentassets||||
|Totalnon-currentassets||328,202,556.73||
|Totalassets||1,129,031,619.36||
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.||||

Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun
|||||
|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||
|BalanceSheetoftheCompany(Continued)||||
||||Unit：RMB|
|ASSETS|Note(XIII)|30June2015|1January2015|
|Currentliabilities：||——|——|
|Short-termborrowings||||
|Financialliabilitiesatfairvaluethroughprofitorloss||||
|Derivativefinancialassets||||
|Notespayable||||
|Accountspayable||2,482,949.70||
|Advancesfromcustomers||37,790.04||
|Financialassetssoldforrepurchase||||
|Employeebenefitspayable||715,232.26||
|Including:Accruedpayroll||715,232.26||
|Welfarebenefitspayable||||
|Including:Staffandworkers'bonusandselfare||||
|Taxesandsurchargespayable||8,263,087.21||
|Including:Taxespayable||8,263,087.21||
|Interestpayable||89,539,512.11||
|Dividendspayable||3,213,302.88||
|Otherpayables||364,990,503.55||
|Cessioninsurancepremiumspayable||||
|Provisionforinsurancecontracts||||
|Fundsreceivedasagentofstockexchange||||
|Fundsreceivedasstockunderwritesale||||
|Reclassifiedtoliabilitiesheldforsale||||
|Currentportionofnon-currentliabilities||326,908,839.42||
|Othercurrentliabilities||||
|Totalcurrentliabilities||796,151,217.17||
|Non-currentliabilities：|||——|
|Long-termborrowings||34,200,000.00|130,303,532.50|
|Bondspayable||||
|Long-termpayable||||
|Grantspayable||||
|Provisions||||
|Deferredtaxliabilities||||
|Othernon-currentliabilities||||
|Totalnon-currentliabilities||34,200,000.00||
|Totalliabilities||830,351,217.17||
|Equity：||——|——|
|Sharecapital||426,745,404.00||
|Capitalreserve||337,276,496.52||
|Less:TreasuryShare||||
|Othercomprehensiveincome||||
|Surplusreserve||109,487,064.39||
|Including:Statutorysurplusreserve||||
|Provisionforgeneralrisks||||
|Retainedearnings||-574,828,562.72|-628,364,574.11|

|||
|-|-|
|Totalowner'sequity||
|Totalliabilitiesandowner'sequity|1,129,031,619.36|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun||

|||||
|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||
|IncomeStatementoftheCompany||||
||||Unit：RMB|
|ITEM|Note(XIII)|30June2015|30June2014|
|I.Revenue||512,071.26||
|Including：Operatingincome||512,071.26||
|II.Totalcost||||
|Including：Operatingcost||177,796.80||
|Businesstaxesandsurcharges||21,956.02||
|Sellingexpenses||||
|Administrativeexpenses||8,057,788.45||
|Including:researchanddevelopmentexpenses||||
|Financeexpenses||47,714,085.92||
|Including:Interestexpenses||||
|Interestincome||||
|Netlossonforeignexchange||||
|Impairmentlossesofassets||10,925.50||
|Others||||
|Add：Gainonfair-valuechanges（“-”forloss）||||
|Investmentincome（“-”forloss）||124,217,340.81||
|Including：Investmentincomefromassociatesandjointventures||-125,414.24||
|Gainorlossonforeignexchange( "-"forloss)||||
|III.Operatingprofits（“－”forloss）||68,746,859.38||
|Add：Non-operatingincome||||
|Including：Gainsondisposalofnon-currentassets||||
|Gainsfromexchangeofnon-monetaryassets||||
|Governmentgrants||||
|Gainsfromdebtrestructuring||||
|Less：Non-operatingexpenses||577.22||
|Including：Lossesondisposalofnon-currentassets||||
|Lossesfromexchangeofnon-monetaryassets||||
|Lossesfromdebtrestructuring||||
|IV.Profitbeforetax（“－”forloss）||68,746,282.16||
|Less：Incometaxexpenses||15,210,270.77||
|V.Netprofit（“－”forloss）||53,536,011.39||
|VI.Post-taxnetvalueofothercomprehensiveincome||-125,127,595.63||
|(I)Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss||||
|(II)Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss||||
|i.Othercomprehensiveincomesthatbeabletoreclassifyasprofitunderequitymethod.||||

|||
|-|-|
|ii.Gainorlossfromfair-valuechangesonavailableforsalefinancialassets||
|iii.Reclassifyheld-to-maturityinvestmenttohold-to-salefinancialassetsgainorloss||
|iv.Theeffectivecashflowhedgeinggainorloss||
|v.Translationdifferencesarisingontranslationoffinancialstatementsdenominatedinforeigncurrencies||
|VII.Totalcomprehensiveincome|-71,591,584.24|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun||

|||||
|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||
|CashFlowStatementoftheCompany||||
||||Unit：RMB|
|ITEM|Note(XIII)|30June2015|30June2014|
|Ⅰ.Cashflowsfromoperatingactivities：||——|——|
|Cashreceivedfromsalesandservices||1,269,936.85|787,456.75|
|Taxrefunds||||
|Netcashfromotheroperatingactivities||152,644,738.55|4,830,485.21|
|Sub-totalofcashinflowsfromoperatingactivities||153,914,675.40|5,617,941.96|
|Cashpaidforgoodsandservices||||
|Cashpaidtoandonbehalfofemployees||3,092,486.56|3,061,780.17|
|Paymentoftaxesandsurcharges||258,008.24|444,798.05|
|Othercashpaymentsrelatingtooperatingactivities||55,872,045.25|8,511,195.12|
|Sub-totalofcashoutflowsfromoperatingactivities||59,222,540.05|12,017,773.34|
|Netcashflowsfromoperatingactivities||94,692,135.35|-6,399,831.38|
|Ⅱ.Cashflowsfrowinvestingactivities：||——|——|
|Cashreceiptsfromwithdrawofinvestments||139,371,794.42|36,060,000.00|
|Cashreceivedfrominvestmentincome||||
|Netcashfromdisposaloffixedassets,intangibleassetsandotherlong-termassets||||
|Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits||||
|Othercashreceiptsrelatingtoinvestingactivities||||
|Sub-totalofcashinflowsfrominvestingactivities||139,371,794.42|36,060,000.00|
|Cashpaidforfixedassets,intangibleassetsandotherlong-termassets||6,199.00||
|Cashpaymentsforinvestments||30,066,000.00|28,200,000.00|
|Netincreaseofpledgedloans||||
|Netcashpaidforacquiringsubsidiariesandotherbusinessunits||||
|Netcashusedinotherinvestingactivities||||
|Sub-totalofcashoutflowsfrominvestingactivities||30,072,199.00|28,200,000.00|
|Netcashflowsfrominvestingactivities||109,299,595.42|7,860,000.00|
|Ⅲ.Cashflowsfromfinancingactivities：||——|——|
|Cashproceedsfrominvestmentsbyothers||||
|Including：cashreceivedbysubsidiariesfromminorityshareholders'investment||||
|Cashreceivedfromborrowings||80,748,000.00|21,300,000.00|
|Cashreceivedfromissuanceofbonds||||
|Cashreceiptsrelatedtootherfinancingactivities||||
|Sub-totalofcashinflowsfromfinancingactivities||80,748,000.00|21,300,000.00|
|Cashrepaymentsfordebts||260,505,000.00|9,394,693.08|
|Cashpaymentsfordistributionofdividends,profitandinterestexpenses||18,880,311.44|9,970,306.92|
|Including:dividendsorprofitpaidbysubsidiariestominorityshareholders||||

||||
|-|-|-|
|Othercashpaymentsrelatingtofinancingactivities|5,338,995.28|4,752,500.00|
|Sub-totalofcashoutflowsfromfinancingactivities|284,724,306.72|24,117,500.00|
|Netcashflowsfromfinancingactivities|-203,976,306.72|-2,817,500.00|
|Ⅳ.Effectofforeignexchangeratechangesoncashandcashequivalents|-||
|Ⅴ.Netincreaseincashandcashequivalents|15,424.05|-1,357,331.38|
|Add:beginningbalanceofcashandcashequivalents|2,034,649.76|1,650,620.37|
|Ⅵ.Endingbalanceofcashandcashequivalents|2,050,073.81|293,288.99|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.|||
|Legalrepresentative:ZhengQing Principalinchargeofaccounting:YangDaoliang Headoftheaccountingdepartment:wuxiukun|||

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|HainanPearlRiverHoldingCompanyLimited||||||||||||||
|StatementofChangesinOwners’EquityoftheCompany||||||||||||||
||||||||||||||Unit：|
|ITEM|Note(XIII)|RM2015-6-30||||||||||||
|||Paid-incapital|Otherequityinstruments|Capitalreserve|Less:treasuryshares|Othercomprehensiveincome|Specializedreserve|Surplusreserve|Provisionforgeneral|Retainedearnings|Others|Totalowner'sequity||
|||1|2|3|4|5|6|7|8|9|10|11||
|I.Closingbalanceoftheprecedingyear||426,745,404.00||337,276,496.52||125,127,595.63||109,487,064.39||-628,364,574.11||||
|Add:Changesinaccountingpolicies||||||||||||||
|CorrectionsoferrorsinPriorPeriod||||||||||||||
|Others||||||||||||||
|II.Openingbalanceofthecurrentyear||426,745,404.00||337,276,496.52||125,127,595.63||109,487,064.39||-628,364,574.11||||
|III.Changesfortheyear||||||-125,127,595.63||||53,536,011.39||||
|(I)Totalcomprehensiveincome||||||-125,127,595.63||||53,536,011.39||||
|(II)Capitalcontributionandwithdrawalsbyowners||-|-|-|-|-|-|-|-|-|-|||
||||-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-|-|-|-|-|||
|iii.Share-basedpaymentrecordedinowner'sequity||-|-|-|-|-|-|-|-|-|-|||
|iv.Others||-|-||-|-|-|-|-|-|-|||
|(III).Profitsdistribution||-|-|-|-|-|-|-|-|-|-|||
|i.Appropriationtosurplusreserve||-|-|-|-|-|-|-|-|-|-|||
|Including:Statutorysurplusreserve||-|-|-|-|-|-||-||-|||
|Optional surplusreserve||-|-|-|-|-|-|-|-|-|-|||
|ii.Appropriationofprovisionforgeneralrisks||-|-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-|-|-|-|-|||
|||-|-|-|-|-|-||-||-|||

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|IV.Closingbalanceoftheyear||||||||||||||
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.||||||||||||||
|Legalrepresentative:ZhengQing|||Principalinchargeofaccounting:YangDaoliang|||||||Headoftheaccountingdepartment::wuxiukun||||
|HainanPearlRiverHoldingCompanyLimited||||||||||||||
|StatementofChangesinOwners’EquityoftheCompany||||||||||||||
|ITEM|Note(XIII)|2014-6-30||||||||||||
|||Paid-incapital||Otherequity|Capitalreserve|Less:treasuryshares|Othercomprehensive|Specializedreserve|Surplusreserve|Provisionfor|Retainedearnings|Others|Totalowner'sequity|
|||1||2|3|4|5|6|7|8|9|10|11|
|I.Closingbalanceoftheprecedingyear||426,745,404.00||-|337,276,496.52|-|53,285,095.63|-|109,487,064.39|-|-547,503,383.82|-||
|Add:Changesinaccountingpolicies||—||—|—|—|—|—|—|—|—|—|—|
|CorrectionsoferrorsinPriorPeriod||—||—|—|—|—|—|—|—|—|—|—|
|Others||-||-|-|-|-|-|-|-|-|-||
|II.Openingbalanceofthecurrentyear||426,745,404.00||-|337,276,496.52|-|53,285,095.63|-|109,487,064.39|-|-547,503,383.82|-||
|III.Changesfortheyear||-||-|-|-|-8,021,250.00|-|-|-|-33,714,789.16|-||
|(I)Totalcomprehensiveincome||-||-|-|-|-8,021,250.00|-|-||-33,714,789.16|-||
|(II)Capitalcontributionandwithdrawalsbyowners||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||
|iii.Share-basedpaymentrecordedinowner'sequity||-||-|-|-|-|-|-|-|-|-||
|iv.Others||-||-||-|-|-|-|-|-|-||
|(III).Profitsdistribution||-||-|-|-|-|-|-|-|-|-||
|i.Appropriationtosurplusreserve||-||-|-|-|-|-|-|-|-|-||
|Including:Statutorysurplusreserve||-||-|-|-|-|-||-||-||
|Optional surplusreserve||-||-|-|-|-|-|-|-|-|-||
|ii.Appropriationofprovisionforgeneralrisks||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||
|||-||-|-|-|-|-|-|-|-|-||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||-|-|-|-|-|-|-|-|-|-|
|IV.Closingbalanceoftheyear|426,745,404.00|-|337,276,496.52|-|45,263,845.63|-|109,487,064.39|-|-581,218,172.98|-|
|Theaccompanyingnotesformanintegralpartofthefinancialstatements.|||||||||||
|Legalrepresentative:ZhengQing||Principalinchargeofaccounting:YangDaoliang||||||Headoftheaccountingdepartment:；wuxiukun|||

Hainan Pearl River Holdings Limited.
Foot-notes to Financial Statements
(January1—June30,2015)
I.BasicInformation of theCompany
(1)Registeredaddress,historyoftheCompanyandaddressofitsheadquarters
HainanPearl River Holdings Limited. (hereinafter referred to as “the Company ” or “Company” or“Pearl River Holdings”) is alimited liabilitycompanyreincorporatedbyHainanPearl RiverIndustrialCorporationonJanuary11,1992,in accordancewith No.1Document ofthePeople's GovernmentofHainanProvince (1992),andNo.6DocumentofHainanPeople's Bank ofChina(1992),with totalstocks issued of 81,880,000 shares, among which, total stocks exchanged from former net assets of 60,793,600 shares, and total newly-issued stocks of 21,086,400 shares. The Company is named as Hainan Pearl River Industrial Holdings Co., Ltd. Registration number of theCompany’s business license is 20128455-6. The parent company, Guangzhou Pearl River Industrial Co., Ltd., holds 36,393,600 shares, occupying44.45%. In accordance with the No.83 document issued by Securities Management Office of People's Bank of China in December, 1992, newly-issued 21,086,400 shares came on the market at Shenzhen Securities Exchange. The Company is engaged in realestate.
OnMarch 25,1993,in accordance with No.28documentof HainanStock-holding System Pilot LeadingGroup andNo.99documentof ShenzhenSpecialEconomicZoneBranchofPeople'sBankofChina,theCompanyincreasesitsequitiesaccordingtotheratioof10:5:2. After transfer, its capital stock is 139,196,000 shares.At the end of 1993, its shareholder, Guangzhou Pearl River Industrial Companyheld48,969,120shares,occupying35.18%.
In 1994,equitieswere increasedaccordingto theratio of10:10,after transfer,its totalamountofcapitalstockis 278,392,000shares.Itsshareholder,GuangzhouPearlRiverIndustrialDevelopmentCo.,Ltd.,held97,938,240shares,occupying35.18%.
In 1995, shareB of 50,000,000shares was issueduponapprovalin accordancewith No.45and No.12documentof Shenzhen Securities Office (1995). Equities were increased according to the shareholding ratio of 10:1.5 based on the increased share B.After transfer, the Companyheld377,650,800shares,its parentcompany,GuangzhouPearlRiverIndustrialCompanyheld112,628,976shares,occupying29.82%.
In 1999, Guangzhou Pearl River Group Co., Ltd transferred 112,628,976 shares to Beijing Wanfa Real Estate Development Co., Ltd. After the stock transfer in June, 1999, Beijing Wanfa Real Estate Development Co., Ltd. held 112,628,976 shares of the Company,occupying29.82%oftotalsharesoftheCompany,andbecameashareholderoftheCompany.
On January 10, 2000, the Company was renamed as Hainan Pearl River Holdings Limited., and was issued the business license byIndustrial&CommercialAdministrationBureauofHainanProvince.
OnAugust17,2006,anequity reformprogram oftheCompanywasexecuted,theCompanyincreasedits equitiesaccordingtotheratio of10:1.3to allshareholders, with increasedequities of 49,094,604shares. Former holdersofnon-tradable sharesassigned theincreased equitiestoshareholdersofcirculationstockA.BeijingWanfaRealEstateDevelopmentCo.,Ltdpaidadvancedmoneyforconsideration shares of non-circulation shareholders whose opinions were not given explicitly. After transfer, total amount of capital stock was 426,745,404shares,the shareholder,BeijingWanfaRealEstate Development Co., Ltd., held107,993,698 shares,occupying25.31%. In 2007, holders of non-tradable shares repaid equity division consideration of 3,289,780 shares. In 2009, holders of non-tradable shares repaid equity division consideration of 1,196,000 shares. In 2010, the shareholder, Beijing Wanfa Real Estate Development Co., Ltd.,
was renamed as Beijing Wanfa Real Estate Development Co., Ltd., and held 112,479,478 shares of the Company on June 30, 2015,
occupying26.36%.
Registeredcapital:42,674,540,000yuan
EnterpriseRegistrationnumber:460000000159355
Legalrepresentative:ZhengQing
Registeredaddress:29/F,DihaoBuilding,PearlRiverSquare,BinhaiStreet,Haikou
Officeaddress:29/F,DihaoBuilding,PearlRiverSquare,BinhaiStreet,Haikou
Parent company is Beijing Wanfa Real Estate Development Co., Ltd., the final actual controller is Beijing Xinxing Real Estate DevelopmentCompany.
(2)Businessscope
Industrialinvestment;realestatedevelopment;hotelinvestmentandmanagement;materialsupply;constructionequipmentprocurement, leasing;investmentconsultation.
(3)NatureofbusinessesandmainbusinessactivitiesoftheCompany
TheCompanyanditssubsidiariesaremainlyengagedinrealestatedevelopment,hotelmanagementandpropertymanagement. (4)Corporatearchitecture
Basic organizational structure of the Company: General meeting of stockholders shall be the high authority of Company. Board of directors shall be the executive body of general meeting of stockholders. Board of supervisors shall be internal supervision body of the Company. General manager is responsible for theCompany’s daily operation and management. The Company is divided into departments like general manager office, bond department, tourism and real estate department, financial department, management departmentandauditdepartment.
OnMay 6,2010, BeijingInvestmentConsultation Branchof HainanPearl River Holdings Limited was incorporated,with a registration number of 110107012835520. Address: Suite 5078, Block 3, 3 Xijing Road, Badachu High-tech Park, Shijingshan District, Beijing. Businessscopeincludesinvestmentconsultation,hotelinvestmentandmanagement.
On October 22,2012, Heilongjiang Subsidiary of Hainan Pearl River Holdings Limited was incorporated,with a registration number of 2301016100100936.Address: 34 Nongxiao Street, Xiangfang District, Harbin. Business scope: industrial investment, hotel investment and management, construction equipment procurement, leasing, indoor and outdoor decoration, high-tech project investment, computer network investment, communication project investment, high-tech technical product development and application, environmental projectinvestment.
(5)Approvalandissuanceoffinancialstatement
ThefinancialstatementwasapprovedbyalldirectorsoftheCompanyandissuedonAugust27,2015.
II.Scopeofmergerfinancial statement
Thereare18subjectsincorporatedtothemergerfinancialstatementinthisperiod,including:
||||
|-|-|-|
|Subsidiarytype|Order|Holdingproportion（%）|
|Holding|2|98|
|Holding|3|100|
|Wholly|3|100|
|Wholly|3|100|
|Wholly|3|100|
|Wholly|2|100|

||||
|-|-|-|
|Subsidiarytype|Order|Holdingproportion（%）|
|Holding|2|89.2|
|Wholly|3|100|
|Wholly|2|100|
|Wholly|2|100|
|Wholly|2|100|
|Wholly|3|100|
|Wholly|3|100|
|Wholly|3|100|
|Holding|3|70|
|Wholly|3|100|
|Holding|2|51|
|Holding|2|50|

 Thereisnochangeinsubjectsincorporatedintothemergerfinancialstatementinthisperiod,comparedtothepreviousperiod. III. Compilingfoundationofthefinancial statement
(1)Compilingfoundationofthefinancialstatement
The Company affirms and calculate, based on continuous operation, in accordance with actual transaction and matters, Accounting Standards for BusinessEnterprises——Basic Principles and Detailed Accounting Standards for Business Enterprises, Application Guide to Accounting Standards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other related regulations issued by the Ministry of Finance (hereinafter collectively referred to as “Accounting Standards for Business Enterprises”), on this basis, in accordance with No.15 Company Information Disclosure, Preparation and Reporting Standard of SecuritiesIssuance——General Provisions of the Financial Statement issued by China Securities Regulatory Commission (revised in 2014),thefinancialstatementisprepared.
(2)Continuousoperation
ThereisnotmajordoubtaboutsustainableoperationcapacityoftheCompanywithin12monthsfromtheendofthereportperiod. IV.Important accountingpolicies andaccounting estimate
(1)ComplywithAccountingStandardsforBusinessEnterprises
The financial statement prepared by the Company complies with requirements of Accounting Standards for Business Enterprises, reflects related information like financial condition, operating results and cash flow during the report period of the Company in a true andcompletemanner.
(2)Accountingperiod
TheaccountingfiscalyearoftheCompanybeginsonJanuary1andendsonDecember31oftheGregoriancalendar. (3)Bookkeepingbasecurrency
TheCompanyshalladoptRenminbiasitsbookkeepingbasecurrency.
(4)Accountantarrangementmethodofbusinessmergerunderthesamecontrolandunderdifferentcontrols
cases listed as follows shall be realized in steps, accounting treatment shall be conducted by taking several transactions as packagedeals:
i. Thesestransactionsareconcludedbytakinginfluencesintoconsideration;
ii. Thesestransactions,onthewhole,mayrealizeacompletebusinessresult;
iii. Theoccurrenceofatransactionliesinthatofatleastatransaction;
iv. Atransaction is not economic when it is taken into consideration alone, but it is economic when it is taken into consideration withotherdealings.
2． Businessmergerunderthesamecontrol
1)Individualfinancialstatement
Where the merger consideration consists of paying cash, transferring non-cash assets, assumption of debts or issuing equity securities, onthemergerdate,sharesstatedinthebookvalueinthemergerfinancialstatementofthefinalcontrollerinaccordancewithownership interests of the party to be merged shall be the initial cost of investment of long-term equity investment. Based on balance between initial cost of investment of long-term equity investment and merger consideration, capital reserves are adjusted; where capital reserves are not sufficient for writing-off, retained earnings will be adjusted. Where there is any contingent consideration, and estimated liabilities or assets shall be affirmed. Based on the balance between the amount of estimated liabilities or assets and subsequent contingent consideration, capital reserves (capital premium or capital stock premium) shall be adjusted. Where capital reserves are insufficient,retainedearningsshallbeadjusted.
Where business merger is realized through several sales which belong to package deals, all deals shall be regarded as that of obtaining the right of control, and accounting treatment shall be executed; where sales are not package deals, at the date of obtaining the right of control, initial cost of investment of long-term equity investment, balance between long-term equity investment book value before the merger and sums of book value when new payment consideration of stocks is obtained on the merger date, capital reserves shall be adjusted; where capital reserves are insufficient for writing-off, retained earnings shall be adjusted. In respect of the equity investment held before the merger date, other comprehensive incomes ascertained through business accounting pursuant to equity law or determinedbyfinancialinstrumentsandcheckedthroughmeasurementstandardswouldnotimmediatelybehandledthroughaccounting treatmentmethod.Theywouldbehandledthroughaccountingtreatmentmethodonthesamebasisofhandlingrelatedcapitalorliability of the unit to be invested; Other changes in ownership interests except for net profit or loss, other comprehensive incomes and profits among net capital of the unit to be invested determined through accounting pursuant to equity law, shall not be handled through accountingmethodimmediately,andshallbetransferredtoprofitandlossinthecurrentperiod.
All related fees incurred during the merger, including audit fee, appraisal fee and legal service fee paid for sake of merger, shall be calculatedintocurrentprofitsandlossesduringthemerger;capitalreservesshallbewrittenoffbasedontransactionfeerelatedtoequity instruments which are deemed as merger consideration. Where capital reserves are not sufficient for the writing off, surplus public accumulation and undistributed profit shall be written off in succession; transaction fee related to equity instruments which are deemed asmergerconsideration,shallbecalculatedtoinitialaffirmationamountofdebtinstruments.
Where there is merger financial statement among combined parties, based on ownership interests owned by the parent company in merger financialstatementofthecombinedparties onthemerger date,initial costof investmentoflong-termequity investmentshallbe determined.
2)Mergerfinancialstatement
Assets and liabilities obtained by combining parties in business merger shall be calculated, in accordance with the book value of ownershipinterestsofcombinedpartiesinthemergerfinancialstatementofthefinalcontrolleronthemergerdate.
Where business merger is realized through several times of deals which belong to package deal, all deals shall be deemed as those of
obtainingtherightofcontrolfortheaccountingtreatment;wheredealsdonotbelongtothepackagedeal,inrespectoflong-termequity
investment held by the combining parties before the business merger, on the date when it is obtained, in consideration of related profit andloss,other comprehensiveincomes andchange in otherownershipinterestswhencombining partiesandcombinedparties areunder thesamefinalcontrolbeforethemergerdate,retainedearningsorcurrentprofitsandlossesatthebeginningofthetermshallbewritten offintheperiodofcomparativestatement.
Where accounting policy adopted by all the parties to be merged is not in consistency with that of the Company, the Company on the merger date shall, in accordance with the Company accounting policy, adjust and ascertain pursuant to Accounting Standards for BusinessEnterprises.
3． Businessmergerunderdifferentcontrols
In consideration of business merger under different controls, combined cost refers to assets paid, liabilities incurred or assumed and issuedequityinstruments orfairvalue ofdebtinstrumentsforsakeofobtainingtherightofcontroloftheacquireeonthepurchasedate. Where future matters which may influence combined cost may be arranged in the merger contract, and the estimated matters on the purchasedate arelikely to happen and influencedamount of the combined cost may be reliably calculated, they shallalso becalculated tocombinedcost.
Brokerage fees like audit, legal service and evaluation and consultation and other relevant management fees incurred for sake of business merger of the Company, when they are incurred, shall be calculated to current profits and losses; transaction cost of equity instruments or debt instruments issued as merger consideration by the Company, shall be calculated to initial affirmation amount of equityinstrumentsordebtinstruments.
The difference between the cost of acquisition and fair value ofnet assets of business share is confirmed as purchased goodwill. Where the cost of acquisition is less than fair value of net assets ofthe party to be purchased, after rechecking, the difference between the cost ofacquisitionandfairvalueofnetassetsofthepartytobepurchased,shallbecalculatedtocurrentprofitsandlosses. Wherethebusinesscombinations notunderthesame controlrealizedinstepsthroughseveralswaptransactionsbelongtopackage deal, alldealswhich shallbedeemed asthose of obtainingright ofcontrolandshallbe handledthrough accounting treatmentmethod;where the deals do not belong to package deal, relevant accounting treatment shall be conducted by separating individual financial statement frommergerfinancialstatement:
(1) In respect of individual financial statements, where equity investment held before the merger date is calculated in accordance with the equity law, sum of book value of equity investment held by the acquiree before the purchase date and newly increased cost of investment on the purchase date, shall be deemed as initial cost of investment; where other comprehensive incomes from equity investment held before the purchase date is calculated and ascertained based on equity law. The investment would be handled through accountingtreatmentmethodonthesamebasisofhandlingrelatedcapitalorliabilityoftheunittobeinvested.
Where equity investment held before the merger date is ascertained through financial instruments and calculated based on calculation principles, sum of fair value of equity investment on the merger date and newly increased costof investment, shall be deemed as initial cost of investment on the merger date. Balance between fair value of the originally held equity rights and the book value as well as accumulatedchangesinfairvaluecalculatedtoothercomprehensive incomesshallbetransferredtothecurrentincomefrominvestment onthemergerdate.
(2) When merging the financial statement, theacquiree’s stock rights owned before the purchase date shall be recalculated according to the fair value of the stock rights on the purchase date. Balance between fair value and its book value shallbe calculated to the current income from investment; where equity rights held by the acquiree before the purchase date refer to other comprehensive incomes checked pursuant to the equity law, they, together with relevant other comprehensive incomes, shall be transferred to the incomefrominvestmentintheperiodtowhichthepurchasedateissubordinate.
(5)Preparationmethodofmergerfinancialstatement
Merger range ofmerger financialstatement of the Companyshall bedetermined basedon the controlandall the subsidiaries (including
abodycontrolledbytheparentcompany)shallbeincorporatedtothemergerfinancialstatement.
All thesubsidiaries’accounting policy and accounting period incorporated to merger scope of the financial statement shall be in line with those of the Company. Where there is any inconsistency of accounting policy and accounting period adopted by subsidiaries with those of the Company, when preparing merger financial statement, necessary adjustment shall be conducted in accordance with theCompany’saccountingpolicyandaccountingperiod.
Merger financialstatement shall be prepared by the Company according to other related documents, based on financialstatement of the Companyanditssubsidiaries.
When merging the financial statement, influence of internal dealings between the Company and its subsidiaries and among all subsidiariesonmergerbalancesheet,consolidatedstatementofincome,consolidatedstatementofcashflowandstatementofchangesin stockholders'equityaccounts,shallbeoffset.
Where the losses of the current period of minority shareholders at the subsidiaries exceed shares of ownership interests owned by minorityshareholdersatthebeginningofthetermofsubsidiaries,thebalancestillshallwriteoffminorityequity.
During the report period, where subsidiaries and businesses are increased due to business merger under the same control, opening balance of the merger balance sheetshall be adjusted;subsidiaries’income, fee and profit from the beginning of business merger to the end of report period shall be incorporated to consolidated statement of income;subsidiaries’cash flow from the beginning of business mergertotheendofreportperiodshallbeincorporatedtoconsolidatedstatementofcashflow.
During the report period, where subsidiaries and businesses are increased due to business merger not under the same control, openingbalanceofthemergerbalancesheetshallnotbeadjusted;subsidiaries’income,feeandprofitfromthepurchasedateofbusinessestothe end of report period shall be incorporated to consolidated statement of income;subsidiaries’ cash flow from the purchase date of businessestotheendofreportperiodshallbeincorporatedtoconsolidatedstatementofcashflow.
During the report period, the Company may handle its subsidiaries and businesses,subsidiaries’ income, fee and profit from thebeginningofbusinessestothetreatmentdateshallbeincorporatedtoconsolidatedstatementofincome;thesubsidiaries’cashflowfrom thebeginningofbusinessestothetreatmentdateshallbeincorporatedtoconsolidatedstatementofcashflow.
Where the Company, due to handling part of equity investment, loses right of control for former subsidiaries, when merging financial statement, residual equity shall be recalculated, in accordance with the fair value at the date when right of control is lost. Sum of consideration obtained when handling equity rights and residual equity fair value, minuses the balance of shares of net assets owned by theformersubsidiariescalculatedfromthepurchasedateinaccordancewiththeformerproportionofshareholding.Thefinalvalueshall becalculatedtoincomefrominvestmentwhenrightofcontrolislost.Othercomprehensive incomesrelatedtoequityinvestmentforthe formersubsidiaries,shallbetransferredasthecurrentincomefrominvestmentwhenrightofcontrolislost.
(6)Classificationofjointventuringarrangementandaccountantarrangementmethodofjointoperation1． Classificationofjointventuringarrangement
The Company, in accordance with structure, form of law as well as articles and other related truths and circumstances in the joint venturingarrangement,dividesjointventuringarrangementintojointoperationandcooperativeenterprises.
Joint venturing arrangement which is not realized through individual subjects, shall be classified as joint operation; joint venturing arrangement realized through individualsubjects, shallbe oftenclassified as cooperative enterprises;jointventuring arrangementwhich meets one of the following requirements and is in compliance with relevant laws and regulations as proven by hard evidences, shall be classifiedasjointoperation:
（1） Form of law in the joint venturing arrangement shows that, the party of joint venturing is entitled to rights and shall assumeobligationsforrelatedassetsandliabilitiesinthearrangement.
（2） In accordancewith contractarticles provided in thejointventuring arrangement, thepartyof jointventuring is entitled to
rightsandshallassumeobligationsforrelatedassetsandliabilitiesinthearrangement.
（3） Other related truths and circumstances show that, the party of joint venturing is entitled to rights and shall assume obligations for related assets and liabilities in the arrangement, for example, the party of joint venturing is entitled to almost all the output related to joint venturing arrangement, and the clearing off of liabilities in the arrangement shall continue to rely on the support fromthepartyofjointventuring.
2． Accountantarrangementmethodofjointoperation
The Company determines the following items related to the Company in profit shares in joint operation, accounting treatment shall be conductedinaccordancewithrelevantAccountingStandardsforBusinessEnterprises:
（1） Assetssolelyowned,andassetsjointlyownedaccordingtotheshares;
（2） Liabilitiessolelyowned,andliabilitiesjointlyassumedaccordingtotheshares;
（3） Ascertaintosellincomefromsharesofjointoperation;
（4） Incomefromsellingoutputofjointoperationaccordingtoitsshares;
（5） Feeincurredalone,andfeeincurredinjointoperationaccordingtoitsshares.
Where the Company invests or sell assets during the period of joint operation, the Company, before selling the assets during the period of joint operation (except for businesses facilitated by the assets) to a third party, shall ascertain part of profits and losses which are ownedbyother participants of the joint operation. In respectof the loss in impairment of asset, where assets invested or sold are in line with No.8 DocumentofAccounting Standards for BusinessEnterprises——Impairment ofAsset, the Company shallascertain the loss in full.
TheCompany,beforeselling theassets purchasedduringthe periodof jointoperation (exceptfor businessesfacilitated by the assets) to athird party,shall ascertain partof profits and losses which are owned byother participants of the joint operation.In respectof the loss in impairment of asset, where assets purchased are in line with No.8 Document of Accounting Standards for BusinessEnterprises——ImpairmentofAsset,theCompanyshallascertainthelossesbasedonitsshares.
The Company shall not be entitled to joint control of common operation. Where the Company is entitled to relevant assets under the jointoperation ans assumes related liabilities under the joint operation, accounting treatment shall be carried outin accordance with the aforesaidprinciples,otherwise,accountingtreatmentshallbecarriedoutinaccordancewithrelatedregulationsofAccountingStandards forBusinessEnterprises.
(7)Determinationstandardofcashandcashequivalents
When preparing the cash flow statement, cash on hand and deposits which can be paid at any time shall be affirmed as cash. The term "cash equivalents " refers to short-term (begin from the purchase date and due within 3 months) and highly liquid investments that are readilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.
(8)Discountingofforeigncurrencytransactionandforeigncurrencystatements
1． foreigncurrencytransaction
When foreign currency transaction is initially ascertained, it shall be discounted to Renminbi according to the spot rate on the transactiondatewhichisdeemedasdiscountingexchangerate.
Foreign currency monetary items shall be discounted based on the sport rate on the balance sheetdate, exchange balance incurred shall be calculated to current profits and losses, except for exchange balance incurred due to foreign currency loans related to construction capital in line with capitalization which shall be handled according to the principle of capitalization of borrowing costs. Foreign currency non-monetary items calculated based on historic cost, shall be discounted based on the sport rate on the transaction date, and itsbookkeepingbasecurrencyamountshallnotbechanged.
Foreign currency non-monetary items calculated based on fair value, shall be discounted based on the sport rate on the date when fair
value is determined. Exchange balance incurred shall be deemed as profit or loss from changes in fair value and shall be calculated to
currentprofitsandlosses.Wheretheybelongtoforeigncurrencynon-monetaryitemsavailableforsale,exchangebalanceincurredshall becalculatedtoothercomprehensiveincomes.
2． Discountingofforeigncurrencyfinancialstatement
Assets and liabilities stated in the balance sheet shall be discounted based on the sport rate on the balance sheet date; in respect of ownership interests, except for “undistributed profit”, other projects shall be discounted according to the sport rate when they are incurred.Income and fee stated in the income statement shallbe discountedbasedon the sportrate onthe transactiondate. Discounting balance in the foreign currency financial statement incurred according to the aforesaid discounting method, shall be calculated to other comprehensiveincomes.
When handling overseas operation, discounting balance in the foreign currency financial statement related to overseas operation and listedinitems ofothercomprehensiveincomes inthebalancesheet,shallbetransferredtocurrentprofits andlossesfromitems ofother comprehensive incomes; in case of overseas operation, according to the ratio of treatment, discounting balance in the foreign currency financialstatementshallbecalculatedandtransferredtocurrentprofitsandlosses.
(9)Financialinstruments
Financialinstrumentsconsistoffinancialassets,financialliabilityandequityinstrument.
1． Classificationoffinancialinstruments
Managers, in accordance with contract articles of the issued financial instruments and economic essence reflected therefrom rather than form of law, based on purposes of obtaining financial assets and assuming financial liability, divide financial assets and financial liabilityintodifferenttypes:financialassetscalculatedbasedonfairvalueandwhosechangesshallbecalculatedintocurrentprofitsand losses(orfinancialliability);held-to-maturityinvestment;receivables;financialassetsavailableforsale;otherfinancialliability.2． Recognitionbasisandcalculationmethodsoffinancialinstruments
（1） financial assets calculated based on fair value and whose changes shall be calculated into current profits and losses (or financialliability)
（1）financialassets or financialliability calculated basedonfair value andwhosechanges shallbecalculated into currentprofits and losses (or financial liability), consist of tradable financial assets or financial liability, and financial assets or financial liability calculatedbasedonfairvalueandwhosechangesshallbecalculatedintocurrentprofitsandlosses(orfinancialliability). Tradablefinancialassetsorfinancialliabilityreferstothosemeetingoneofthefollowingrequirements:
1)Thepurposeofobtainingfinancialassetsorfinancialliabilityistosell,repurchaseandredeemwithinashortperiod; 2) Belong to part of identifiable financial instrument portfolio under centralized management.Any objective evidence proves that theCompanyrecentlymanagestheportfoliothroughprofitingmethodintheshortterm;
3) Belong to derivative financial instruments, except for derivatives which are designated as effective hedging instruments, which areunderfinancialguaranteecontract,whicharerelatedtoequityinvestmentthatisnotquotedonanactivemarketandwhosefairvalue cannotbemeasuredreliablyandshallgothroughtothesettlementofderivativefinancialinstruments.
Only by meeting one of the following requirements, can financial assets or financial liability be referred to as financial assets or financialliability: financialassets or financial liability calculated basedonfair value andwhose changes shall be calculatedinto current profitsandlossesatthebeginningofthecalculation.
1) The regulation can remove or obviously reduce inconsistency of related profits or losses in terms of affirmation or calculation, duetodifferentcalculationbasisoffinancialassetsorfinancialliability;
2)Asstated inofficialwrittendocuments relatedtorisk managementorinvestmentstrategy,the financialassetsportfolio, financial liabilityportfolio,orportfolio offinancialassets andfinancialliability,shallbemanaged,estimated andreportedto keymanagers based
onfairvalue;
3)mixed tools includingone or several embedded derivatives, only whenthere is noimportant change in cash flow of mixed tools causedbyembeddedderivatives,orembeddedderivativesshallnotbeseparatedfromrelatedmixedtools;
4) including mixed tools of embedded derivatives which require separation but fail to be calculated separately when they are obtainedoratthesubsequentbalancesheetdate.
In respect of financial assets or financial liability calculated based on fair value and whose changes shall be calculated into current profits and losses when they are obtained, fair value shall be (deducting cash dividends which are reported but fail to be issued or debenture interests which are not obtained during the period of interest payment) regarded as initial affirmation amount. Relevant transaction cost shall be calculated to current profits and losses. When holding such amount, interests or cash dividends obtained shall beaffirmed as the income from investment, changes in fair value shall be calculated to currentprofits and losses at the end of the term. Balancebetweenfairvalueandinitialamountwhenenteringaniteminanaccountshallbeconfirmedasincomefrominvestment,while profitandlossofchangesinfairvalueshallbeadjusted.
（2） receivables
In respectof obligationreceivable formed whenthe Companysells products orprovides service,andcreditor's rights of debtinstrument of other enterprises held by the Company, excluding those have quoted price on the active market, including receivables and other receivables, contract or agreement amount collected from the buyer shall be deemed as initial affirmation amount; in respect of those withthenatureoffinancing,theyshallbeaffirmedinaccordancewiththeirpresentvalues.
When redeeming or treating such receivables, balance of amount obtained and receivables book value shall be calculated to current profitsandlosses.
（3） Held-to-maturityinvestment
Held-to-maturityinvestmentreferstonon-derivativefinancialassetsfeaturedbyfixedduedate,fixedrecoverableamountwhichmaybe affirmed,whiletheCompanyhasspecificintentionsandcapacitytoholdittomaturity.
When obtaining held-to-maturity investment, sum of fair value (deducting debenture interests which are not obtained during the period of interest payment) and relevant transaction cost shall be deemed as initial affirmation amount. When holding such investment, interests income shall be calculated in accordance with amortized cost and actual interest rate, and shall be calculated to income from investment.Actualinterestrateshallbeaffirmedwhenitisobtained,andshallnotbechangedduringtheexpectedperiodofexistenceor suitable shorter period.When treating such investment, balance between amount obtained and book value shall be calculated to income frominvestment.
Where the amount after treatment or reclassification of held-to-maturity investment to other types of financial assets is larger than the totalamountofallheld-to-maturity investmentbeforeitissoldor reclassified,theCompany,after thetreatmentorreclassification,shall immediately reclassify remaining held-to-maturity investment as financial assets available for sale; at the date of reclassification, balancebetween the invested bookvalue andthe fair value shall becalculatedto other comprehensive incomes, andshallbe transferred when there is a decrease in value of financial assets available for sale or determination is terminated, it shall be calculated to current profitsandlosses,exceptforthefollowingcircumstances:
1) Sales date and reclassification date is close to due date or redemption date of the investment (for example, within 3 months beforematurity),andchangesinmarketinterestratehavenotremarkableinfluenceonfairvalueoftheinvestment.
2)Inaccordancewiththemodeofpaymentasstatedinthecontract,theenterprisehasalreadytakenbackallinitialprincipals. 3) Sales or reclassification are caused by independent events which are not controlled by the Company, whose repeated events wouldnotoccurandwhicharedifficulttoestimateinareasonableway.
（4） Financialassetsavailableforsale
Financial assets available for sale refer to financial assets which are deemed as non-derivative financial assets available for sale when
theyareinitiallyaffirmed,andthoseexcludingotherfinancialassets.
In respect of financial assets available for sale, sum of fair value (deducting cash dividends which are reported but fail to be issued or debentureinterests whichare notobtainedduringtheperiodof interestpayment) andrelevanttransactioncostshallbedeemedasinitial affirmationamountwhen theyare obtained.Interests obtainedwhen holdingsuchfinancialassets or cashdividends shallbeaffirmed as income from investment. Profit or loss formed by changes in fair value of financial assets available for sale, except for balance of exchanges formed by impairment loss and monetary financial assets of foreign currency, shall be directly calculated to other comprehensive incomes. When treating financial assets available for sale, balance between amount obtained and financial assets book value shall be calculated to profit and loss on investments; meanwhile, amount related to accumulated amount of changes in fair value which shall be directly calculated to other comprehensive incomes shall be transferred, and shall be calculated to profit and loss on investments.
In respect of equity instrument investment which has no quoted price at the active market and whose fair value may not be reliably calculated, and derivative financial assets which are related to the equity instrument and shall be calculated through paying the equity instrument,shallbecalculatedbasedonthecost.
（5） Otherfinancialliability
Sumoffairvalueandrelevanttransactioncostshallbedeemedasinitialaffirmationamount.Subsequentcalculationshallbecarriedout basedontheamortizedcost.
3．Recognitionbasisandcalculationmethodoffinancialassetstransfer
When transfer of financial assets occurs at the Company, if almost all the risks and rewards under the financial assets ownership are transferred to the party to be transferred, determination of the financial assets shall be terminated; if almost all the risks and rewards underthefinancialassetsownershiparereserved,determinationofthefinancialassetsshallnotbeterminated.
When judging whether transfer of financial assets meets the aforesaid requirements of termination of determination of financial assets, principle that substance is more important than the form shall be utilized. The Company shall divide transfer of financial assets into overall and partial transfer of financial assets. Where transfer of financial assets meets the requirements of termination of affirmation, balanceofthefollowingtwoamountsshallbecalculatedtocurrentprofitsandlosses:
(1)Bookvalueofthetransferredfinancialassets;
(2) Sum of consideration received due to transfer and accumulated amount of changes in fair value which shall be directly calculatedtoownershipinterests(involvingthetransferredfinancialassetsarefinancialassetsavailableforsale).
Where partial transfer of financial assets meets requirements of termination of determination, financial assets overall book value of financial assets transferred whose recognition has yet to be stopped, shall be amortized according to respective relative fair value, and balanceofthefollowingtwoamountsshallbecalculatedtocurrentprofitsandlosses:
(1)Bookvaluestatedinthepartofterminationofdetermination;
(2) Sum of consideration whose recognition has stopped and amount (involving the transferred financial assets are financial assets available for sale) whoserecognition has stoppedin the accumulative amountof changes in fair value which shallbedirectly calculated toownershipinterests.
Where the transfer of financial assets may not meet the requirements of termination of determination, determination of the financial assetsshallbecontinued,considerationreceivedshallbedeterminedasafinancialliability.
4．Requirementsforterminationofdeterminationoffinancialliability
Where all or part of currentobligations under financial liability are terminated, determination of all or partof financialliability shall be terminated; where the Company signs an agreement with a creditor, it shall assume a new financial liability in lieu of the current financial liability. Where there is substantial change in contract articles of new financial liability and current financial liability,
determinationofcurrentfinancialliabilityshallbeterminated,newfinancialliabilityshallbe,atthesametime,determined.
Where there is substantial modification in all or part of contract articles of the current financial liability, determination of all or part of
current financial liability shall terminated. Meanwhile, financial liability after articles are modified shall be determined as a new financialliability。
Wherefinancialliability terminates its affirmation completely or partly,balancebetweenfinancialliability bookvalue whichterminates theaffirmationandpaidconsideration(includingthe transferrednon-cash assetsor newfinancialliability), shallbecalculatedtocurrent profitsandlosses.
Where the Company may repurchase part of financial liability, at the repurchase date, in accordance with relative fair values which continue to be affirmed or terminate to be affirmed, book value of the financial liability shall be allotted. Balance between book value assigned to the part of termination of affirmation and the paid consideration (including the transferred non-cash assets or new financial liability),shallbecalculatedtocurrentprofitsandlosses.
5．Determinationmethodoffinancialassetsandfinancialliabilityfairvalue
Inrespectoffinancialassetsandfinancialliabilitywhicharemeasuredthroughfairvalueandfinancialassetsorfinancialliabilityonthe activemarket, thefairvalueshallbeascertainedbasedonthequotedpriceattheactivemarket;inrespectoffinancialassetsorfinancial liability which are not on the active market, the fair value shall be ascertained through the valuation technique (including referring to prices in recent market dealings of all parties who are familiar with the situations and are willing to trade, current fair value of other financial instruments which are same on the substantial basis, cash flow discounting method and options pricing model); in respect of initial obtained or derivative financial assets or assumed financial liability, market transaction price shall be deemed as the basis for ascertainingthefairvalue.
6．Calculationandwithdrawaloffinancialassets(excludingreceivables)provisionfordiminutioninvalue Bookvalue shallbecheckedoffinancialcapitalsmeasuredthroughfair value exceptforfinancialcapitals whosechanges are calculated to current profit and loss, where any objective evidence proves that there is decrease in value of the financial assets, provision for diminutioninvalueshallbewithdrawn.
Objectivebasisofdecreaseinvalueoffinancialassetsincludesbutnotlimitedto:
（1） theissuerorthedebtorhasseriousfinancialdifficulties;
（2） thedebtorbreachescontractarticles,includingpayinginterestsoranyinfringementofagreementoroverdueprincipal;（3） The creditor, in consideration of economic or legal factors, makes a concession to the debtor who has financial difficulties;
（4） thedebtormaygobankruptorcarryoutotherfinancialrecombination;
（5） Wherethereareimportantfinancialdifficultiesfortheissuer,financialassetsfailedtobetransactedattheactivemarket;（6） Whethercashflowofcertainassets inonegroupof financialassetsdecreasescouldnotbeidentified,butitis foundafter comprehensive evaluation based on open data, estimated cash flow in the group of financial assets decreases and can be calculated, for example, thedebtor’s payment capacity in the group of financialassets gradually worsens, or unemployment rate in the country or area wherethedebtorisseatedincreases,priceofguarantyattheareaobviouslydeclinesandindustryissluggish;
（7） Duetoremarkablechangesintechnical,market,economicorlegalenvironmentofequityinstrumentissuedandmanaged, investorsofequityinstrumentmayfailtowithdrawcostofinvestment;
（8） Thereisseriousornon-temporaryfallinfairvalueinvestedbytheequityinstrument;
Detailedmethodsofdecreaseinvalueoffinancialassetsarelistedasfollows:
(1)Provisionfordiminutioninvalueoffinancialassetsavailableforsale
The Company evaluates impairment loss in all financial assets available for sale based on specific identification method on the balance sheet date, of which: objective evidence of decrease in value of investment in equity instrument available for sale includes serious or
non-temporary fall in fair value invested by the equity instrument. Detailed quantitative criteria are: where the fair value of equity
instrument investment on the balance sheet date is50% (including50%) lower than its cost, or the phenomena that the value is lower
than its initial cost of investment lasts for more than 1 year (including 1 year), decrease in value occurs; wherethe fair value of equity instrument investment on the balance sheet date is20% (including20%) higher than its cost, but fails to reach50% of the cost, the Companymaytake into overallconsiderationotherrelevantfactors like pricevolatility,andjudges whetherthere is decreaseinvalue in investmentoftheequityinstrument.
The aforesaid “cost ” shall be determined in accordance with initial cost obtained from equity instrument investment available for sale, deducting the principal withdrawn and amortization amount, impairment loss calculated to profits and losses; “fair value ” shall be determinedinaccordancewithclosingpriceofsecuritiesexchangeattheendoftheterm.
When there in decrease in value of financial assets available for sale, even though the financial assets do not terminate the affirmation, theCompanytransfersaccumulatinglosseswhichshallbedirectlycalculatedtoothercomprehensiveincomescausedbythedecreasein fair value, they shall be calculated to current profits and losses. The transferred accumulating losses equal to initial cost obtained from financial assets available for sale, deducting balance among the principal withdrawn and amortization amount, current fair value, and impairmentlosscalculatedtoprofitsandlosses.
(2)Provisionfordiminutioninvalueofheld-to-maturityinvestment
In respect of held-to-maturity investment, where a decrease in value can be ascertained according to objective evidences, impairment loss shall be calculated and determined in accordance with balance between the book value and the present value of the estimated cash flow in the future; after withdrawing, if any evidence shows that its value is restored, the former impairment loss ascertained shall be withdrawn, and calculated to current profits and losses, but the book value withdrawn shall not exceed amortized cost of the financial assetsatthedateofwithdrawal,supposeprovisionfordiminutioninvaluemaynotbewithdrawn.
(10)Receivables
1． Receivablesinwhichbad-debtprovisionshallbecalculatedandwithdrawnandtheirsingleamountismajor Determination standard of receivables in which single amount is major and bad-debt provision shall be calculated and withdrawn in single amount: detailed standard of major single amount: balance at the end of the term surpasses 1 million yuan (including 1 million yuan).
Methodsofcalculationofbad-debtprovisionofreceivablesinwhichsingle amountislarge:whentestofdecreaseinvalueis conducted in a single manner, bad-debt provision shall be calculated and withdrawn in accordance with the balance between estimated cash flowvalueandthebookvalue,andshallbecalculatedtocurrentprofitsandlosses.Wheredecreaseinvalueofreceivablesdoesn’toccurafter thesingletest,bad-debtprovisionshallbecalculatedandwithdrawnbasedontherelatedportfolio.
2． Receivablesinwhichbad-debtprovisionshallbecalculatedandwithdrawnbasedontheportfolio
(1)Determinationbasisofcharacteristicportfolioofcreditrisks
In respect of receivables of related parties among enterprises in the business merger range of Pearl River Holdings, bad-debt provision shall not be withdrawn according to the principle, where any hard evidence proves that it shall not be withdrawn or the possibility to withdrawissmall,bad-debtprovisionshallbewithdrawnaccordingtoitsunrecoverableamount.
In respect of receivables whose single amount is not major at the end of the term, and not in the merger financial statement scope of PearlRiverHoldings merger financialstatement,bad-debtprovision shallbecalculatedandwithdrawn basedonaging analysis method, togetherwithreceivableswhosevaluesarenotdecreasedaftersingletesting.
(2)Methodsofcalculationdeterminedinaccordancewithcharacteristicportfolioofcreditrisks
Bad-debtprovisionshallbewithdrawnbasedontheaginganalysismethod:
||
|-|
|PercentageofAccountsReceivable(%)|
|2|
|5|

||
|-|
|PercentageofAccountsReceivable(%)|
|10|
|20|
|30|
|50|

1．Receivables in which their single amount is not major but bad-debt provision shall be calculated and withdrawn in singleamount
Reasons for calculating and withdrawing bad-debt provision in single amount are: objective evidences show that the Company may not collectthefundinaccordancewithformerarticlesofreceivables.
Methods of calculation of bad-debt provision: it shall be calculated and withdrawn in accordance with balance between estimated cash flowvalueofreceivablesinthefutureandthebookvalue.
(11)Inventory
1.Classificationofinventories
Inventories mainly include real estate development project, development cost, raw materials, goods in stock, low-value consumables, andothers.
Real estate development products include real estate product under construction and development, completed product, and proposed development land. The actual cost of real estate development is composed by land transfer fee, expenditure of infrastructure, expenditureof constructionandinstallation engineering, borrowingcostincurredbeforethecompletion of thedevelopmentproject, and otherrelevantcostsincurredintheprocessofdevelopment.
Development cost refers to the property that has not been built based on the purpose of sales; proposed development land refers to purchased land that will be developed into a completed development product; development product refers to the property that has been completed and is ready for sales. When the project is developed overall, the proposed land is transferred into the development cost; when the project is developed in stages, such land is transferred into the development cost and the undeveloped land is recognized as proposeddevelopmentland.
2.Valuationmethodofinventory
Specific identification method is used to recognize the actual cost of inventory when the real estate development product inventory is sold.Otherinventoriesareaccountedbyweightedaveragemethod.
3.Determinationbasisofinventorynetrealizablevalueandprovisionmethodofinventoryprovisionforloss At the end of the period, inventory is measured based on the costs and net realizable value, whichever is lower. The provision of allowanceofinventoryvaluationismadeonthebasisasingleinventorycostishigher thanthedifferenceofits netrealizablevalue. Net realizable value, accordingto thedaily activities,is recognizedbydeducting the to-be incurredcosts,estimated sales costs,andrelevant taxesfromtheestimatedsalespriceofinventory.
When factors that caused deduction of prior inventory value disappear, the deducted amount is resumed, and originally accrued depreciationprovisionisreturned.Theamountreturnedisrecordedintocurrentincomestatement.
4.Inventorysystem
Perpetualinventorysystemisused.
5.Amortizationmethodoflow-valueconsumptiongoodsandpackingmaterials
One-offwrite-offmethodisused.
6.Accountingmethodfordevelopedland
Together with the entire real estate development project, the costs may distinguish the object of burden sharing. Generally, it is
recognizedascommercialhousingcostbasedontheactualsharedarea.
7.Accountingmethodforpublicfacilitycosts
Public facility unavailable for involuntary transfer: the standard distribution is recognized as commercial housing cost subject to the benefitratio.
Public facility available for involuntary transfer: each facility project is recognized as the object of cost accounting.All costs incurred areaccumulated.
8.Accountingmethodformaintenancefund
According to the relevant provisions of the site the development project is located, when selling (pre-selling) the development product, the maintenance fund collected from the purchaser are recognized as the development cost of the project and paid to the fund administrativedepartment.
9.Accountingmethodforqualitybond
Qualitybondrefers tofessreserved from the construction costofthe contractoraccordingto theprovisionsof theconstructioncontract. The maintenance fees incurred from the warranty period of the development product are written down as quality bond; upon the expirationoftheagreedwarrantyperiod,thebalanceofthequalitybondisreturnedtothecontractor.
(12)Long-termequityinvestment
1.Recognitionofinvestmentcosts
(a) The accounting policies for long-term equity investment formed from enterprise consolidation are listed inAppendix IV/ (IV) accountingmethodforenterpriseconsolidationunderthesameornotunderthesamecontrol.
(2)Long-termequityinvestmentacquiredbyothermethods
The initial investment costof a long-term equity investment obtained by making payment in cash is the purchase costwhich is actually paid. The initial investment cost consists of the expenses directly relevant to the obtainment of the long-term equity investment, taxes andothernecessaryexpenses.
The initial investment cost of a long-term equity investment obtained on the basis of issuing equity securities is the fair value of the equity securities issued;the tradingcosts incurred fromthe issuanceor acquisition ofequity instrumentthatcanbe directly attributed to equitytransactionaredeductedfromequity.
Onthepremisethatthenon-monetaryassetswapis providedwithcommercialsubstanceandthefairvalue ofswap-in assetorswap-out asset can be reliably measured, the long-term equity investment from non-monetary asset swap is recognized as its initial investment costbased on the fair value of its swap-out asset, unless otherwise the convincing evidence provides that the fair value of swap-in asset is more reliable; the non-monetary assetswap failed to meet the abovepremises arerecognized as the initial investmentcostof swap-in long-termequityinvestmentbythebookvalueoftheswap-inassetandrelevanttaxespayable.
Theinitialinvestmentcostoflong-termequityinvestmentacquiredfromdebtreorganizationisrecognizedbasedonthefairvalue. 2.Recognitionofsubsequentmeasurementandprofitandloss
(1)Costmethod
Cost method is used for long-term equity investment that the company is able to control the investee. The price of a long-term equity investment measured by employing the cost method is included at its initial investment cost. If there are additional investments or disinvestments,thecostofthelong-termequityinvestmentisadjusted.
The dividends in cash or profits declared to distribute by the investee are recognized as the investment income of the current period except for the dividends in cash or profits that have been declared but not issued in the actually paid payment or consideration upon acquisitionoftheinvestment.
(2)Equitymethod
Equity method is used to measure the long-term equity investment in joint ventures and associates; for equity investment in the joint
venture that indirectly held by risk investment institutions, mutual funds, trust companies or similar subject including unit-linked insurancefunds,thefairvalueisusedformeasurementanditschangeisrecognizedasprofitorloss.
Where the initial investment cost of a long-term equity investment is larger than the investing enterprise' attributable share of the fair value ofthe investee's identifiable net assets for the investment, the initial cost of the long-term equity investment may notbe adjusted; where the initial cost of a long-term equity investment is smaller than the investing enterprise' attributable share of the fair value of the investee'sidentifiablenetassetsfortheinvestment,thedifferenceisrecognizedatprofitsandlossesofthecurrentperiod. After acquisition of long-term equity investment, the profit or loss on investment and other comprehensive income are recognized as investment income and other comprehensive income, respectively, according to net profit or loss of the investee that should be entitled to or shared and the book value of the long-term equity investments is adjusted. The company calculates its share according to the profits and cash dividends distribution declared by investee and writes off against the book value of long-term equity investments accordingly; for other changes in shareholders equity of the investee except for net income, other comprehensive income and profit distribution,thebookvalueoflong-termequityinvestmentisadjustedandrecognizedasshareholdersequity.
The company, on the ground of the fair value of all identifiable assets of the investee when it obtains the investment, recognizes the identifiable asset of the net profit and loss of the investee after it adjusts the net profit of the investee. The unrealized internal transactions between the company and its joint ventures or associates are calculated based on the share ratio. The part attribute to the companyiswrittendown.Theinvestmentprofitandlossisrecognizedbasedonit.
Where the company intends to share the losses of the investee, the following sequence is followed: first of all, write-down the book value of long-term equity investment; secondly, if the book value of long-term equity investment is insufficient to write-down, further recognizetheinvestmentlosssubjecttothelimitationofthebookvalueoflong-termequityinvestmentofnetinvestmentcontributedby the investee substantively and write-down the book value of long-term payable; lastly, based on the above mentioned methods, accordingtotheinvestmentcontractoragreement,wherethecompanyisstillrequiredtoundertakeadditionalobligations,recognizethe estimateddebtsubjecttotheexpectedobligationsandrecorditintheinvestmentlossofthecurrentperiod.
Where profit is realized by the investee in future period, after deduction of the share amount of unconfirmed loss by the company, write-down the book balance of the confirmed estimated liability in contrary to the above order processing, recover the book value of the long-term equity and long-term equity investment that substantially from the net investment made to the investee, and recover the recognitionofinvestmentreturns.
3.Conversionofaccountingmethodforlong-termequityinvestment
(1)Conversionfromfairvaluemeasurementtoequityaccountingmethod
Wheretheequityinvestment,originallyholdingbythecompanyintheinvesteethathasnotcontrol,jointcontrolorsignificantinfluence and recognized and measured based on financial instrument, is able to levy significant influence on the investee or implement joint control but not constitute control due to additional investment and other reasons, the sum obtained by plus the newly increased investment cost to the fair value of the originally held equity investment recognized in accordance with the provisions of Accounting Standards for Enterprises No.22–Recognition and Measurement of Financial Instruments is regarded as the initial investment cost for conversionofequitymethod.
Where the originally held equity investment is classified as available-for-sale financial asset, the difference between its fair value and the book value as well as the accumulated change in fair value that originally recognized as other comprehensive income is measured usingequitymethod.
Where the initial investment cost is less than the difference of the fair value share of net identifiable asset on the additional investment date in the investee recognized based on the calculation of new shareholding ratio after additional investment, adjust the book value of
long-termequityinvestmentandrecognizeitasnon-operatingrevenueinthecurrentperiod.
(2)Conversionfromfairvaluemeasurementorequitymethodtocostmethod
Wheretheequityinvestmentoriginallyholdingbythecompanyintheinvesteethathasnotcontrol,jointcontrolorsignificantinfluence andrecognized andmeasured basedonfinancialinstrument, or the originallong-term equityinvestmentin jointventures and associates are able to implement control on the investee not under the same control due to additional investment and other reasons, when formulating the individual financial statements, the sum obtained by plus the newly increased investment cost to the book value of originalequityinvestmentisregardedastheinitialinvestmentcostforcostmethod.
For othercomprehensive income measuredandrecognized byusingequity method,the disposalofthe equityinvestmentthatoriginally heldbeforetheacquisitiondateis measuredsubjecttotheaccountingmethodforthedirectly disposaloftherelatedassetsandliabilities bytheinvestee.
The equity investment that originally held before the acquisition date is measured according to the relevant provisions of Accounting Standards for Enterprises No.22–Recognition and Measurement of Financial Instruments. The accumulative change in fair value originallyrecognizedasothercomprehensiveincomeistransferredintotheprofitandlossofthecurrentperiodbyusingcostmethod. (3)Conversionfromequitymethodtofairvaluemeasurement
Wherethejointcontrolorsignificantinfluenceontheinvesteeislostduetothedisposalofpartialequityinvestment,theresidualequity after such disposal is measured in accordance with the provisions of Accounting Standards for Enterprises No.22–Recognition and Measurement of Financial Instruments. The difference between the fair value on the date of losing and the book value is recognized as theprofitandlossofthecurrentperiod.
The original equityinvestment’s other comprehensive income, measured and confirmed by using equity method, is measured on the samebasisthattheinvensteedirectlydisposestherelevantassetsandliabilitiesupontheterminationoftheuseofequitymethod. (4)Conversionfromcostmethodtoequitymethod
Where the company loses its control of an investee due to the disposal of partial equity investment, when formulating the individual financial statements, if the residual equity after such disposal is able to implement common control or levy significant influence on the investee, the equity method is used for measurement. Accordingly, such residual equity is deemed as being adjusted by using equity methoduponacquisition.
(5)Conversionfromcostmethodtofairvaluemeasurement
Where the company loses its control of an investee due to the disposal of partial equity investment, when formulating the individual financial statements, if the residual equity after such disposal is unable to implement common control or levy significant influence on the investee, the relevant provisions of Accounting Standards for Enterprises No. 22– Recognition and Measurement of Financial Instruments are applied as the accounting method. Accordingly, difference between the fair value on the date of losing and the book valueisrecognizedastheprofitandlossofthecurrentperiod.
4.Disposaloflong-termequityinvestment
Forthedisposalofthelong-termequityinvestment,thedifferencebetweenthebookvalue andtheactualacquisitionpriceis recognized as the profit and loss of the current period. The long-term equity investment measured by using equity method, when disposal such investment, is measured on the same basis that the invenstee directly disposes the relevant assets and liabilities subject to the part of othercomprehensiveincomeoriginallyrecognizedaccordingtothecorrespondingratio.
Wherethe disposalof the equityinvestmentof thecompany’s subsidiaries in aspectsofthe terms, conditions andeconomic effectofall transactionsmeetsoneormoreconditionslistedbelow,themultipledealmattersaremeasuredaspackagedeals:
(1)Thesedealsareestablishedsimultaneouslyortakingintoconsiderationofthemutualinfluence;
(2)Thesedealsmayentiretyrealizecompletecommercialresults;
(3)Theoccurrenceofadealdependsontheoccurrenceofatleastonedeal;
(4)Adealitselfisnoteconomicbutiseconomicwhenconsideringitjointlywithotherdeals.
If theloss ofthecontrolling ofanoriginalsubsidiarydueto thedisposalofpartialequityinvestmentor otherreasonsis notclassified as
packagedeal,theaccountingmethodsforindividualfinancialstatementsandconsolidatedfinancialstatementsaredistinguished: (1)In individualfinancialstatements, the differentbetween thebookvalue ofthe disposedequityandits actualacquisition price is recognized as the profitand loss ofthe currentperiod. If the residualequity after suchdisposalis able to implementcommon controlor levy significant influence on the investee, such residual equity is deemed as being adjusted by using equity method upon acquisition; if theresidualequity after such disposalis unable to implementcommon controlor levy significant influenceon the investee, the relevant provisions of Accounting Standards for Enterprises No. 22– Recognition and Measurement of Financial Instruments are applied as the accounting method. Accordingly, the difference between the fair value on the date of losing and the book value is recognized as the profitandlossofthecurrentperiod.
(2)Inconsolidatedfinancialstatements,foralldealsconcludedbeforelosingcontrollinginasubsidiary,wherethereisadifference between each disposal price and the disposal of the share of net assets that continuously calculated from the purchase date or consolidation date of the long-term equity investment correspondingto the investment, the capital reserve (equity premium) is adjusted. If the capital reserve is insufficient to write-down, adjust the retained earnings; when losing the control in a subsidiary, the residual equity is re-measured subject to the fair value on the date of losing. The difference, obtained from deducting the share of net assets continuouslycalculatedfromthepurchasedateoftheoriginalsubsidiarysubjecttotheoriginalshareholdingratiofromthesumbetween the consideration acquired from disposal of equity and the fair value of the residual equity, is recorded as the investment income of the currentperiodwhenthecontrolislost.Atthesame time, thegoodwill iswrittendown.Other comprehensiveincome relating tooriginal subsidiaryequityinvestmentistransferredintotheinvestmentincomeofthecurrentperiodwhenthecontrolislost.
If the deals of disposal of the equity investment of a subsidiary company until the loss of the control are package deals, all deals are regarded as one to dispose the equity investment of the subsidiary and cause accounting processing against the deals losing the control. Distinguishtheindividualfinancialstatementsandtheconsolidatedfinancialstatementsforrelevantaccountingprocess: (1)In individualfinancialstatements, the differencebetweeneach disposalprice beforelosing the controlandthe disposalof book value of the long-term equity investment corresponding to the investment is recognized as other comprehensive income and transferred intotheprofitandlossofthecurrentperiodwhenthecontrolislost.
(2)Inconsolidatedfinancialstatements, thedifferencebetweeneachdisposalpricebeforelosingthecontrolandthedisposalofthe share of net assets of the subsidiary corresponding to the investment is recognized as other comprehensive income and transferred into theprofitandlossofthecurrentperiodwhenthecontrolislost.
5.Criterionforcommoncontrolandsignificantinfluence
Ifthecompanyparticipantsinthearrangementofcollectivecontrolwithotherpartiesinaccordancewiththerelevantagreementandhas theright to make decisions onsignificantinfluence regarding to thereturn of the arrangement,and itis only regarded asexistence upon the approval by the participating party through sharing the controlling, in this case, the company is deemed as common control of a certainarrangementwithotherparties.Sucharrangementisjointarrangement.
Joint arrangement is achieved through sole subject. When judging the company has rights against the net assets of such sole subject according to the relevant agreement, such sole subject, as a joint venture, is measured by using equity method. If the company has not rights against the net assets of such sole subject according to the relevant agreement, on the basis that such sole subject acts as a joint operation party, the company recognizes the items relating to joint operation benefits and causes accounting process according to relevantprovisionsoftheaccountingstandardsforenterprises.
The term "significant influences" refers to the power to participate in making decisions on the financial and operating policies of an enterprise, but not to control or do joint control together with other parties over the formulation of these policies. The company judges the significant influence on the investee by one or more following circumstances and comprehensively considering all facts and
conditions: (1) Representative has been designated to the board of directors or similar authority of the investee; (2) participating in the
process of investee in financial and operating policy formulation; (3) any significant deal has been established with the investee; (4)
managementpersonnelhasbeendesignatedtotheinvestee;(5)hasprovidedkeytechnicaldatatotheinvestee.
(13)Investmentrealestate
Theterm"investmentrealestate"referstotherealestateheldforgeneratingrentand/orcapitalappreciation,oracombinationofboth.It includes the right to use any land which has already been rented, the right to use any land which is held and prepared for transfer after appreciation;andtherighttouseanybuildingwhichhasalreadybeenrented.
The investment real estates of the company are recognized subject to its costs. The cost of an investment real estate by acquisition consists of the acquisition price,relevant taxes, andother expenses directly relegated to the asset;the costofa self-built investmentreal estatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.
The subsequent measurement of the investment real estate by using cost method is depreciated or amortized subject to its estimated service life and net residual rate against the constructions and land use right. Its estimated service life, net residual rate, and annul depreciation(amortization)rateareasbelow:
|||
|-|-|
|Estimatedusefullives(years)|Expectedresidualvalue(%)|
|25|5.00%|

 Iftheusagesofaninvestmentrealestateareforself-use,fromthedateofchange, thecompanyconversestheinvestmentrealestateinto fixedassetsorintangible assets.Iftheusageschanges intogenerating rentorcapitalappreciation,fromthedateofchange, thecompany converses the fixed assets or intangible assets into investment real estate. When conversing, the book value before such conversion is recognizedasthevalueafterconversion.
If aninvestmentrealestate is disposedof, orif itwithdraws permanently fromuse andifnoeconomic benefitwill beobtainedfromthe disposal, the recognition of it as an investment real estate is terminated. When the company sells, transfers or discards any investment real estate, or when any investment real estate of the company is damaged or destroyed, the company deducts the book value of the investment real estate as well as the relevant taxes from the disposal income, and recognizes it as the profit and loss of the current period.
(14)Fixedassets
1.Recognitionconditionsforfixedassets
The term "fixed assets" refers to the tangible assets held for the sake of producing commodities, rendering labor service, renting or business management and their useful life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously meetstheconditionsasfollows:
(1)Theeconomicbenefitspertinenttothefixedassetarelikelytoflowintotheenterprise;and
(2)Thecostofthefixedassetcanbemeasuredreliably.
2.InitialMeasurement
The initial measurement of a fixed asset is made at its cost.Of which, the cost ofa purchased fixed assetconsists of the purchaseprice, therelevanttaxes, andother expensesthatbringthefixed assettothe expectedconditionsfor useandthatmay berelegatedto the fixed asset. The cost of a self-constructed fixed asset is formed by the necessary expenses incurred for bringing the asset to the expected conditions for use. The cost invested to a fixed asset by the investor is ascertained in accordance with the value as stipulated in the investment contract or agreement, other than those of unfair value as stipulated in the contract or agreement. If the payment for a fixed assetisdelayedbeyondthenormalcreditconditionsanditisoffinancingnatureineffect,thecostofthefixedassetisascertainedbased
on the current value of the purchase price. The difference between the actual payment and the current value of the purchase price is
recognizedastheprofitandlossofthecurrentperiodwithinthecreditperiod,unlessitiscapitalized.
3.Subsequentmeasurementanddisposal
(1)Depreciation
Provision of depreciation of fixed assets is provided subject to the deduction of estimated residual value from its recorded value within the estimated useful life period. The depreciation amount of the fixed assets that the provision of impairment reserve was provided is recognizedinthefutureperiodbydeductionthebookvalueofimpairmentreserveinaccordancewiththeavailableserviceyears. The service life and estimated residual value of fixed assets are recognized subject to the nature and use of its.At the end of each year, the service life, estimated residual value, and depreciation of the fixed assets are checked. If it has difference with the original forecast amount,thecorrespondingadjustmentismade.
Thedepreciationmethod,life,andannualdepreciationrateoffixedassetsareasbelow:
||||
|-|-|-|
|Depreciationmethod|Estimatedusefullives(years)|Expectedresidualvalue(%)|
|Lifeaveragemethod|25|5.00%|
|Lifeaveragemethod|5|5|
|Lifeaveragemethod|10|5|
|Lifeaveragemethod|5|5|

 (2)Subsequentexpenses
If the subsequentexpenses related to a fixed assetmeetthe recognition conditions ofthese Standards, they are recognized as the costof fixedasset;otherwise,theyarerecognizedastheprofitandlossofthecurrentperiod.
(3)Disposal
If the fixed assets that have been disposed or will not be expected to generate economic benefit through its use or disposal, the fixes assets are derecognized. When the company sells, transfers or discards any fixed asset, or when any fixed asset of the company is damaged or destroyed, the company deducts the book value and relevant taxes from the disposalincome, and recognizes it as the profit andlossofthecurrentperiod.
(15)Constructioninprocess
1.Category
The construction in process constructed by the company is measuredbased on the actualcost.Actualcost is composed by all necessary expenses incurred before the constructions are ready for its intended use, including cost of construction, material cost, labor cost, relevant taxes, capitalized borrowing costs and indirect costs that should be distributed. Thecompany’s construction in process is measuredbasedonprojectclassification.
2.Standardandtimeofconversionofconstructioninprocessintofixedasset
Theconstructioninprocessprojectis recognizedas fixed assetsubjectto allexpensesincurredbeforetheconstructionsarereadyfor its intended use. Where a fixed asset built by the company has reached the expected use condition but the final accounts of the as-built project have not been settled, from the day when the fixed asset reaches the expected use condition, values estimated according to the construction budget and cost or the actual construction cost is assigned to the fixed asset, and the fixed asset is depreciated under the fixed asset depreciation provisions of these Rules. The adjustment of original temporary estimation value is made after the final accountsoftheas-builtprojectaresettledaccordingtotheactualcosts.Theamountofdepreciationalreadymademaynotbeadjusted. (16)Borrowingcosts
1.Recognitionprincipleofcapitalizationofborrowingcosts
Thecompany’s borrowing costs incurred are directly attributable to the construction production of assets eligible for capitalization.The
capitalizationofborrowingcostsisinitiatedwhentheconditionsaremetanditisrecognizedastherelevantassetcosts;otherborrowing
costsarerecognizedastheprofitandlossofthecurrentperioduponoccurrencebasedonthecostsincurred.
Capitalization-based eligible asset refers to the fixed assets, investment in real estate, inventory and other assets that could only reach
theestimatedstateofuseorsalesafteralongperiodoftimeconstructionorproductionactivity.
Capitalizationismadewhenthefollowingconditionsaremet:
(1) The asset disbursements have already incurred, which shall include the cash, transferred non-cash assets or interest bearing debtspaidfortheacquisitionandconstructionorproductionactivitiesforpreparingassetseligibleforcapitalization; (2)Theborrowingcostshasalreadyincurred;and
(3) The acquisition and construction or production activities which are necessary to prepare the asset for its intended use or sale havealreadystarted.
2.Periodofcapitalization
The capitalization period refers to the period from the commencement to the cessation of capitalization of the borrowing costs, excludingtheperiodofsuspensionofcapitalizationoftheborrowingcosts.
When the qualified asset under acquisition and construction or production is ready for the intended use orsale, the capitalization of the borrowingcostsisceased.
Whenthequalifiedassetunderconstructionorproductioniscompleted respectivelyandcanbeusedindependently,thecapitalizationof suchborrowingcostsisceased.
Wheneachpartoftheassetunderandconstructionorproductioniscompletedrespectively,butcouldonlybereadyfortheintendeduse or sale after the complete of the overall construction, the capitalization of the borrowing costs is ceased upon the completion of the overallconstruction.
3.Periodofcapitalizationcease
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts for more than three months, the capitalization of the borrowing costs is suspended; if the interruption is a necessary step for making the qualified asset under acquisition and construction or production ready for the intended use or sale, the capitalization of the borrowing costs is continued.The borrowingcosts incurred duringsuch periodare recognized as expenses, andrecordedinto the profit andloss of thecurrentperiod,tilltheacquisitionandconstructionorproductionoftheassetrestarts.
4.Calculationmethodforcapitalizationamount
For the interest (less revenue from interest of unused borrowing costs deposited in the bank or investment income from temporary investment) ancillary expense incurred to a specifically borrowed loan, construction or production is ready for the intended use or sale arecapitalizedattheincurredamountuponoccurrence.
Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the company calculates and determines the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements (based on the average amount at the end of each month) minus the generalborrowingbythecapitalizationrateofthegeneralborrowingused.
Wherethereisanydiscountorpremium,theamountofdiscountsorpremiumsthatshallbeamortizedduringeachaccountingperiodare determinedbytherealinterestratemethod,andanadjustmentismadetotheamountofinterestsineachperiod.
(17)Biologicalassets
Biological assets are classified into consumptive biological assets and productive biological assets. The term “consumptive biological asset”includesediblebiologicalassetandanimalfeeding.
Nobiologicalassetmayberecognizedunlessitsatisfiesthefollowingconditionssimultaneously:
(1)Theenterprisepossessesorcontrolsthisbiologicalassetduetopasttransactionorevent;
(2)Theeconomicbenefitsorservicepotentialrelatedtothisbiologicalassetislikelytoflowintothecompany;and (3)Thecostofthisbiologicalassetcanbemeasuredreliably.
(18)Intangibleassetsanddevelopmentexpenditure
Intangible assets refer to identifiable non-monetary assets without physical form holding or controlled by the company, including the
purchasedsoftware,andlanduseright,etc.
1.Initialmeasurement
The cost of outsourcing intangible assets includes the purchase price, relevant taxes and other necessary expenditures directly attributable to intangible assets for the expected purpose. Where the payment of purchase price for intangible assets is delayed beyond the normal credit conditions, which is of financing intention, the costof intangible assets is recognized on the basis of the current value ofthepurchaseprice.
2.Subsequentmeasurement
The company analyzes and judges the service life of intangible assets, when it obtains intangible assets. The intangible assets with limited service life are amortized by using straight line method during the period of bringing economic benefits to the company. The yearoflanduserightissubjecttothecontentstatedontheLandCertificate.
The company checks the service life and the amortization method of intangible assets with limited service life at the end of each year. Where the service life and the amortization method of intangible assets are different from those before, the years and method of the amortizationischanged.
Afterchecking,theservicelifeandtheamortizationmethodofintangibleassetsattheendoftheperiodhasnodifference. (19)Long-termassetimpairment
The company, on the day of balance sheet, makes a judgment on whether there is any sign of possible assets impairment. Where any evidence shows that there is possible assets impairment, the recoverable amount of the assets is estimated on the basis of a single asset; ifsuchestimationisdifficult,therecoverableamountoftheassetsisestimatedonthebasisoftheassetgroup.
The recoverable amount is determined in light of the higher one of the net amount of the fair value of the assets minus the disposal expensesandthecurrentvalueoftheexpectedfuturecashflowoftheassets.
Where the measurement result of the recoverable amount indicates that an asset's recoverable amount is lower than its book value, the bookvalue oftheassetis writtendowntotherecoverableamount,andthereducedamountis recognizedas thelossofassetimpairment and be recorded as the profit or loss of the current period. Simultaneously, a provision for the asset impairment is made accordingly. Onceanylossofassetimpairmentisrecognized,itshallnotbereversedinthefutureaccountingperiods.
After the loss of asset impairment has been recognized, the depreciation or amortization expenses of the impaired asset is adjusted accordingly in the future periods so as to amortize the post-adjustment book value of the asset systematically (deducting the expected netsalvagevalue)withintheresidualservicelifeoftheasset.
The intangible assets with uncertained goodwill and service life formed from enterprise consolidation are tested of the impairment annuallyregardlessofanysignofimpairment.
Goodwill combination and other related asset combination or asset group combination are tested of the impairment. When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill, if any evidence shows that the impairment of asset groups or combinations of assetgroups is possible, the company first makes an impairment teston the assetgroups or combinations of asset groups not containing goodwill, calculates the recoverable amount, compares it with the relevant book value and recognize the corresponding impairment loss. The company then further makes an impairment test of the asset groups or combinations of asset groups containing goodwill, and compares the book value of these asset groups or combinations of asset groups (including the book value of the goodwill apportioned thereto) with the recoverable amount. Where the recoverable amount of the relevantassetsorcombinationsoftheassetgroupsislessthanthebookvaluethereof,itrecognizestheimpairmentlossofthegoodwill. (20)Long-termdeferredcosts
Long-termdeferredcostsrefertoallcostsincurredwhichwillbeborneinthecurrentperiodandthefutureperiodswithoveroneyearof
attributionperiod.Itisamortizedbyusingnaturalmethod.
(21)Employeebenefits
The term "employee benefits" refers to all kinds of remunerations and other relevant disbursements given by the company in exchange of the employees' services. It consists with short-term remuneration, welfare issued after dismiss, dismiss welfare, and other long-term employeewelfare.
1.Short-termremuneration
Short-term remuneration refers to employee benefits which shall be paid in full within twelve months after the end of the annual reporting period of the related services provided by the employees, except for welfare issued after dismiss and dismiss welfare. During theaccounting period the service is provided, the company recognizes the short-term remuneration payable as liability and stated itinto therelevantassetcostsandfeesaccordingtothebeneficiaryofsuchservice.
2.Welfareissuedafterdismiss
Welfareissued after dismiss refers to allkinds ofremuneration andwelfare provided by the company afteremployee’s retirement or the termination of the labor relations in order to acquireemployee’s service, except for short-term remuneration and dismiss welfare. It is classifiedasdefinedcontributionplananddefinedbenefitplan.
The defined contribution plan mainly refers to basic social endowment insurance and unemployment insurance implemented by local laborandsocialsecurityoffices.Duringtheaccountingperiodtheserviceisprovidedbytheemployees,theamountspayable calculated basedon defined contribution plan is recognized as liability and stated into the profit and loss ofthe current periodor the relevant asset costs.
The company will have no other payment obligation after the regular payment of the above mentioned items in according with the nationalstandards.
3.Dismisswelfare
Dismiss welfare refers to the compensation paid by the company to the employee who terminates the labor relations with the company beforethe expiration of thelabor contractorin order toencourage the employeeto acceptdownsizing. Itis recognized asthe profit and lossofthecurrentperioduponoccurrence.
4.Otherlong-termemployeewelfare
Other long-term employee welfare refers to all other employee benefits beyond short-term remuneration, welfare issued after dismiss anddismisswelfare.
Theaccountspayable ofother long-term employee welfare meeting theconditionsof definedcontributionplanis recognized asliability during the accounting period the service is provided by the employees and stated as the profit and loss of the current period or the relevantassetcosts.
(22)Estimatedliabilities
1.Recognitionstandard
Theobligationpertinenttocontingenciesisrecognizedasanestimateddebtwhenthefollowingconditionsaresatisfiedsimultaneously: Thatobligationisacurrentobligationoftheenterprise;
Itislikelytocauseanyeconomicbenefittoflowoutoftheenterpriseasaresultofperformanceoftheobligation;and Theamountoftheobligationcanbemeasuredinareliableway.
2.Measurementmethod
The estimated debts are initially measured in accordance with the best estimate of the necessary expenses for the performance of the currentobligation.
Todeterminethebestestimate,thecompanytakesintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactors pertinent to the contingencies. If the time value of money is of great significance, the best estimate is recognized after discounting the
relevantfutureoutflowofcash.
Thebestestimateisconductedinaccordancewiththefollowingsituations,respectively:
If there is a sequencing range (or sequencing range) for the necessary expenses and if all the outcomes within this range are equally likelytooccur,thebestestimateshallbedeterminedinaccordancewiththemiddleestimatewithintherange.
If there is not a sequencing range (or sequencing range) for the necessary expenses, or although there is a sequencing range and all the outcomeswithinthis rangearenotlikelytooccur,whenthecontingenciesconcernasingle item,itisrecognizedinthelightofthemost likelyoutcome;whenthecontingenciesconcerntwoormoreitems,thebestestimateiscalculatedanddeterminedinaccordancewithall possibleoutcomesandtherelevantprobabilities.
Whenallorsomeoftheexpensesnecessaryfortheliquidationofanestimateddebtsofanenterpriseisexpectedtobecompensatedbya third party, the compensation is separately recognized as an asset only when it is virtually certain that the reimbursement will be obtained.
(23)Revenue
1.Specificstandardsofjudgementforrecognitiontimeofrevenuefromsellinggoods
The realization of revenues from selling goods is recognized, if the company has transferred to the buyer the significant risks and rewards of ownership of the goods; the company retains neither continuing managerial involvement which usually relates to the ownership nor exerts effective control over the goods sold; the relevant amount of revenue can be measured reliably; the economic benefitsrelatedtothetransactionwillflowintothecompany;andtherelevantcostsincurredortobeincurredcanbemeasuredreliably. Revenue from real estate sales: where the real estate is completed and passes the acceptance, and the sales contract is signed, the revenue from sales is achieved when purchase certificate of the buyer is acquired and the project is delivered for use.The buyer has no reason to refuse to accept the house upon the receipt of the house deliver notice. The revenue is recognized as realization after the completionofthedeliveruseperiodasdescribedinthewrittennotice.
2.Recognitionbasisforrevenuefromalienationofassetsuseright
Whentherelevanteconomicbenefitsarelikelytoflowintothecompanyandtheamountofrevenuescanbemeasuredinareliableway, therevenuefromalienationofassetsuserightmayberecognized,if:
(1) Interest revenue: it is measured and confirmed in accordance with the length of time for which the company's cash is used by othersandtheactualinterestrate;
(2) Revenue from property lease: it is measured by using straight line method within the effective release period according to the contractoragreementsignedbetweenthecompanywiththelessee.
3.Recognitionbasisandmethodofrevenuefromlabor
If the property management is provided in property management service, on the balance sheet date, and the results of labor deal can be reliably estimated, the total revenue from labor is recognized according to the received or receivable price as prescribed in contract or agreement.
Thereliableestimationoftheresultsoflabordealmeanssatisfyingthefollowingconditions:
(1)Therelevantamountofrevenuecanbemeasuredinareliableway;
(2)Therelevanteconomicbenefitsmayflowintotheenterprise;
(3)Thescheduleofcompletionunderthetransactioncanbeconfirmedinareliableway;and
(4)Thecostsincurredortobeincurredinthetransactioncanbemeasuredinareliableway.
If thecompanycannot, onthedateofthebalancesheet,measuretheresultofatransactionconcerningtheprovidingoflaborservices in areliableway,itisconductedinaccordancewiththefollowingcircumstances,respectively:
(1) If the cost of labor services incurred is expected to be compensated, the revenue from the providing of labor services is recognizedinaccordancewiththeamountofthecostoflaborservicesincurred,andthecostoflaborservicesshallbecarriedforwardat
thesameamount;or
(2) If the cost of labor services incurred is not expected to compensate, the cost incurred are included in the current profits and
losses,andnorevenuefromtheprovidingoflaborservicesmayberecognized.
(24)Deferredincometaxassetsanddeferredincometaxliability
The deferred income tax assets and deferred income tax liability are recognized based on the difference (temporary difference) of book value according to the tax bases of assets and liabilities. On the balance sheetdate, the applicable tax rate of deferred income tax assets anddeferredincometaxliabilityaremeasuredduringtheliabilityperiodofestimatedrecoveryofsuchassetsorliabilities. 1.Recognitionbasisofdeferredincometaxassets
Thecompanyrecognizesthedeferredincometaxliabilitiesarisingfromadeductibletemporarydifferencetotheextentoftheamountof the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary difference. However,the deferred income tax assets, which are arising from the initial recognition of assets or liabilities during a transaction which is simultaneously featured by the following, are not recognized: (1) this transaction is not business combination; (2) at the time of transaction,theaccountingprofitswillnotbeaffected,norwillthetaxableamountbeaffected.
Where the deductible temporary difference related to the investments in joint enterprises can meet the following requirements simultaneously, the company recognizes the corresponding deferred income tax assets: the temporary differences are likely to be reversed in the expected future; and it is likely to acquire any amount of taxable income tax that may be used for making up the deductibletemporarydifferences.
2.Recognitionbasisofdeferredincometaxliability
The company recognizes the taxable temporary differencein the currentperiod and previous period thatis payable butnotbeen paid as thedeferredincometaxliability,includingbutnotlimitedto:
(1)Itisformedfromtheinitialrecognitionofbusinessreputation;
(2)The transaction is not business combination, and at the time of transaction, the accounting profits will not be affected, nor will thetaxableamount(orthedeductibleloss)beaffected;
(3) The taxable temporary differences related to the investments of subsidiary companies and joint enterprises are recognized as corresponding deferred income tax liabilities. However, those that can simultaneously meet the following conditions shall be excluded: the investing enterprise can control the time of the reverse of temporary differences; and the temporary differences are unlikely to be reversedintheexceptedfuture.
3.The net amount of deferredincome taxassetsand deferredincome taxliabilities arelisted afteroffset when the following conditionsaremet:
(1)Thecompanyhasthelegalrightsofincometaxassetsandincometaxliabilitiesoftheperiodsettledbynetamount; (2) The deferred income tax assets and deferred income tax liabilities are levied by the same taxation department against the same tax subject or different tax subjects. However, during the reverse period of each important deferred income tax asset and deferred income tax liability in future, the deferred income tax assets and deferred income tax liabilities of the period ofall involved tax subject intentionsaresettledbynetamount,ortheassetsacquisitionandliabilityliquidationaremadesimultaneously.
(25)Lease
The "finance lease" refers to a lease that has transferred in substance all the risks and rewards related to the ownership of an asset. The ownershipofitmayormaynoteventuallybetransferred.Allothersareclassifiedasoperatinglease.
Accountingprocessofoperatinglease:
(1)Therentalpaidbythecompanyfortheassetsrentedinisrecognizedascostsofthecurrentperiodbyusingstraightlinemethod withoutdeductionoftheentirerentfreeperiod.Theinitialdirectcostspaidbythecompanyrelatingtoleasedealarerecognizedascosts ofthecurrentperiod.
Whenthelessorbearsthecostsrelatingtoaleasethatshouldbebornebythecompany,thecompanydeductssuchamountfromthetotal
rental.Theamountaftersuchdeductionissharedwithintheleaseperiodandrecognizedascostsofthecurrentperiod.
(2) The rental paid by the company for the assets rented out is recognized as revenue by using straight line method without deduction of the entire rent free period.The initial direct costs paid by the company relating to lease deal are recognized as costs of the currentperiod; if suchamount is large, it is capitalized. During the entire lease period, it is recorded in the profitand loss of the current periodonthesamebasisoftherevenuefromlease.
Whenthecompanybearsthecostsrelatingtoaleasethatshouldbebornebythelessor,theamountaftersuchdeductionissharedwithin theleaseperiodanddistributedwithintheleaseperiod.
(26)Changesinsignificantaccountingpoliciesandaccountingestimates
1. Changesinaccountingpolicies
Thereisnoanychangeintheapplicableaccountingpoliciesinthisreportingperiod.
2.Changesinaccountingestimates
Thereisnoanychangeinaccountingestimatesinthisreportingperiod.
V.Tax
(I)Maintaxtypesandtaxrate
||
|-|
|Taxablebase|
|Salesofgoodsorrenderingoftaxableservices|
|Revenueofhousepropertysaleandlease,propertymanagementincomeandetc.|
|Revenueofcultureandsports|
|Revenueofentertainment|
|Businesstaxandvalue-addedtax|
|Businesstaxandvalue-addedtax|
|Taxableincome|

 Statementontaxrateofdifferentincometaxpayer:
Except for the company subsidiary Mudanjiang City Jingbo Lake Pearl River Wanjia Hotel Co., Ltd, the tax rate of enterprise incometaxofthecompanyanditsothersubsidiariesinthefirsthalfyearis25%.
The subsidiary Mudanjiang City Jingbo Lake Pearl River Wanjia Hotel Co., Ltd is a small-scale and low-profit enterprise. Its incometaxisrecordedbasedon50%,less20%incometaxratefortaxpayment.
VI.Notes to the main items in theconsolidatedfinancialstatements
(Unlessotherwiseindicated,allfiguresarestatedinRMB)
1. CurrencyFunds
||
|-|
|30June2015|
|688,023.10|
|135,302,351.70|
|26,611.49|
|136,016,986.29|

Thefundswhoseremittanceisrestrictedareasfollows:
||
|-|
|30June2015|
|20,000,000.00|

||
|-|
|30June2015|
|20,000,000.00|

 AsofJune30,2015,RMB20millionYuanbankfixeddepositreceiptofthecompanyismortgagedtoacquireRMB19 millionYuanshort-termborrowingfromChinaIndustrialInternationalTrustLtd.ThedurationisfromDecember 3,2014toDecember3,2015.
2. Accountsreceivable
(1) Disclosureofaccountsreceivablebycategories:
||||||||
|-|-|-|-|-|-|-|
|30June2015|||||||
|Amounts||BadDebtProvision||Amounts|||
|Amounts|Ratio(%)|Amounts|Ratio(%)|Amounts|Ratio(%)|Amounts|
|7,761,707.60|31.00|7,761,707.60|100.00|7,761,707.60|33.54|7,761,707.60|
|15,197,409.36|60.69|1,166,087.85|7.67|13,384,482.99|57.83|1,012,770.55|
|2,082,251.02|8.31|1,944,729.55|93.40|1,997,260.02|8.63|1,990,680.02|
|25,041,367.98|100.00|10,872,525.00|----|23,143,450.61|100.00|10,765,158.17|

 (2)Accountsreceivableforwhichbaddebtprovisionhasbeenassessedbyportfolios：
Accountsreceivableportfoliosforwhichbaddebtprovisionhasbeenassessedusingtheaginganalysisapproach:
||||||
|-|-|-|-|-|
|30June2015|||||
|Balance|Proportion(%)|Baddebts|Balance|Proportion(%)|
|9,323,098.36|61.35|186,461.97|7,894,072.87|58.98|
|1,638,687.31|10.78|81,934.37|2,455,484.98|18.35|
|2,342,327.12|15.41|234,232.71|1,381,714.43|10.32|
|846,083.85|5.57|169,216.77|705,715.14|5.27|
|146,821.65|0.97|44,046.50|104,737.15|0.78|
|900,391.07|5.92|450,195.53|842,758.42|6.30|
|15,197,409.36|100.00|1,166,087.85|13,384,482.99|100.00|

 (3) Accountsreceivableforwhichbaddebtprovisionhasbeenassessedindividually
Accountsreceivablethatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually
||||
|-|-|-|
|EndingBalance|BadDebtProvision|Proportion(%)|
|2,406,158.00|2,406,158.00|100|
|2,218,494.43|2,218,494.43|100|
|2,090,069.77|2,090,069.77|100|
|1,046,985.40|1,046,985.40|100|
|7,761,707.60|7,761,707.60||

Accountsreceivablethatareindividuallyinsignificantandforwhichbaddebtprovisionhasbeenassessedindividually
||||
|-|-|-|
|EndingBalance|BadDebtProvision|Proportion(%)|
|497,520.00|497,520.00|100.00|
|451,712.00|451,712.00|100.00|
|250,000.00|250,000.00|100.00|
|119,446.00|119,446.00|100.00|

||||
|-|-|-|
|EndingBalance|BadDebtProvision|Proportion(%)|
|112,116.50|112,116.50|100.00|
|651,456.52|513,935.05|78.89|
|2,082,251.02|1,944,729.55||

(4) Baddebtprovision,recoveryorreverse
TheprovisionamountofbaddebtisRMB107,366.83Yuan.
(5)Outstandingamountduefromshareholdersholding5%(including)ormoreintheaccountreceivableasattheendoftheyear（6）Asat30June2015,thetop5accountsreceivablebycustomeraresummariesdasbelow:
|||
|-|-|
|Ownedamount|Proportionoftotalaccountsreceivable(%)|
|2,406,158.00|9.61|
|2,247,282.00|8.97|
|2,218,494.43|8.86|
|2,090,069.77|8.35|
|2,052,660.68|8.20|
|11,014,664.88|43.99|

 3. Advancestosuppliers
(1)Aginganalysis
||||
|-|-|-|
|30June2015|||
|Balance|Proportion(%)|Balance|
|69,231,626.51|50.89|64,433,201.92|
|7,763,757.45|5.71|6,456,359.45|
|1,482,058.33|1.09|5,907,269.00|
|57,555,853.09|42.31|51,828,529.41|
|136,033,295.38|100|128,625,359.78|

 (2)Topfiveunitsofprepayments
||||
|-|-|-|
|Amounts|Proportionoftotalprepayments|Ages|
|50,000,000.00|36.76|4-5years|
|32,635,068.94|23.99|Within1year|
|13,000,000.00|9.56|Within1year|
|9,882,912.33|7.27|Within1year|
|8,338,082.92|6.13|Within1year|
|113,856,064.19|——||

Note: In accordance with the agreements of Supplementary Agreement on Implementation of Phase III of Longzhu Project signed
between the company with Haikou Hongzhou Industry Development Co., Ltd (hereinafter referred to as Hongzhou Industry), the
company advances the payment of RMB 50 million Yuan as the advance payment for the 15000 m2 office building after the qualified
acceptanceofLongzhuPhaseIIIProjectandfiling.OnAugust22,2013,thecompanysignedSupplementaryAgreementonOriginalSix
Agreements of Implementation of Haikou Hongzhou Center Project with Hongzhou Industry, Haikou Hongzhou Binhai Construction Co., Ltd (hereinafter referred to as Binhai Construction), and Haikou Hongzhou Industry Group Co., Ltd (hereinafter referred to as Hongzhou Group) to allow Binhai Construction inherit the powers, obligations and legal liabilities of Haikou Hongzhou Center Project thatwassharedandbornebyHongzhouIndustry.TheoriginalGuranteeAgreementsignedbetweenthecompanywithHongzhouGroup will be valid further. Hongzhou Group sumbits the company with the Certificate of Land and House Ownership for the underground landofHongzhouEadryResortHotelTimeMansionlocatedatYuyaRoad,HedongDistrict,SanyaCityformanagement.（3）Nooutstandingamountduefromshareholdersholding5%(including)ormoreintheadvancedpaymentasattheendoftheperiod4、Dividendreceivable
||||
|-|-|-|
|1January2015|Increases|Decreases|
|260,015.00|||
|260,015.00|||
|260,015.00|||

5、Otherreceivables
(1) Disclosureofotherreceivablesbycategories:
||||||||
|-|-|-|-|-|-|-|
|30June2015|||||||
|Amounts||BadDebtProvision||Amounts|||
|Amounts|Ratio(%)|Amounts|Ratio(%)|Amounts|Ratio(%)|Amounts|
|25,978,479.90|7.82|25,978,479.90|100.00|25,978,479.90|8.44|25,978,479.90|
|295,217,386.00|88.89|40,044,554.83|13.56|273,693,362.45|88.93|39,026,674.80|
|10,935,878.69|3.29|4,115,349.01|37.63|8,106,146.85|2.63|4,420,829.95|
|332,131,744.59|100.00|70,138,383.74||307,777,989.20|100.00|69,425,984.65|

 (2)Otherreceivablesforwhichbaddebtprovisionhasbeenassessedbyportfolios：
Otherreceivablesportfoliosforwhichbaddebtprovisionhasbeenassessedusingtheaginganalysisapproach:
||||||
|-|-|-|-|-|
|30June2015|||||
|Balance|Proportion(%)|Baddebts|Balance|Proportion(%)|
|36,902,935.74|2.00|738,058.71|16,615,861.48|2.00|
|37,445,821.33|5.00|1,872,291.07|40,137,294.33|5.00|
|80,862,739.18|10.00|8,086,273.92|80,522,251.84|10.00|
|128,734,739.57|20.00|25,746,947.91|125,133,739.57|20.00|
|10,172,959.34|30.00|3,051,887.80|10,167,939.34|30.00|
|1,098,190.84|50.00|549,095.42|1,116,275.89|50.00|
|295,217,386.00||40,044,554.83|273,693,362.45||

(3) Otherreceivablesforwhichbaddebtprovisionhasbeenassessedindividually
Otherreceivablesthatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually
||||
|-|-|-|
|ClosingBalance|BadDebtProvision|Proportion(%)|
|6,482,625.00|6,482,625.00|100|
|2,725,702.71|2,725,702.71|100|
|2,314,592.00|2,314,592.00|100|
|2,210,779.10|2,210,779.10|100|
|1,901,383.56|1,901,383.56|100|
|1,752,100.00|1,752,100.00|100|
|1,550,278.23|1,550,278.23|100|
|1,409,934.28|1,409,934.28|100|
|1,392,430.00|1,392,430.00|100|
|1,208,804.70|1,208,804.70|100|
|1,029,850.32|1,029,850.32|100|
|1,000,000.00|1,000,000.00|100|
|1,000,000.00|1,000,000.00|100|
|25,978,479.90|25,978,479.90||

Otherreceivablesthatareindividuallyinsignificantandforwhichbaddebtprovisionhasbeenassessedindividually
||||
|-|-|-|
|ClosingBalance|BadDebtProvision|Proportion(%)|
|4,553,932.92|91,078.66|2|
|440,000.00|440,000.00|100|
|283,478.62|283,478.62|100|
|5,658,467.15|3,300,791.73|58.33|
|10,935,878.69|4,115,349.01||

(4) BaddebtprovisioninthisyearisRMB712,399.09.
(5)Nooutstandingamountduefromshareholdersholding5%(including)ormoreintheotherreceivableasattheendoftheperiod (6) Topfiveunitsofothersreceivable
||||
|-|-|-|
|Relationshipwiththecompany|Ownedamount|Ages|
|UnrelatedParty|100,400,000.00|2-4years|
|UnrelatedParty|102,500,000.00|2-4years|
|UnrelatedParty|30,000,000.00|1-2years|
|UnrelatedParty|15,907,437.88|1-4years|
|UnrelatedParty|6,482,625.00|Over5years|
||255,290,062.88||

Note: In 2011, the company signed Agreement on Cooperative Construction Project of Special Line of Daqin Railway Mulin County Line and Coal Wholesale Market and project supplementary agreement with Zhonghe Investment Co., Ltd (hereinafter referred
to as Zhonghe Investment) to reach the agreements on jointly investment in development of the special railway line and coalwholesale
market. Both parties contribute investmentby installments subjectto the construction schedule. The company's total investment amount
is not more than RMB 140 million Yuan. During the transition period, thecompany’s Beijing investment consulting sub-branch is
responsible for supervision Zhonghe Investment in using the certificate and seal. In 2012, a supplementary agreement was signed by
bothparties to additionally contribute RMB 37 million Yuan to the project. Since the projectinitiation and production line construction work have not been developed actually, RMB 40 million Yuan and RMB 36.6 million Yuan were recovered in 2013 and 2014, respectively.In2014,ZhongheInvestmentmortgagedtheprojectlandandrealestatetothecompany.
The current account between the company with Beijing Kangtai Industry Investment Co., Ltd (hereinafter referred to as Kangtai Industry) is cooperative project amount. In 2011, the company signed Cooperation Agreement with Kangtai Industry and Gu Li, the naturalpersonto agree the contributionof RMB 70million yuanby Kangtai IndustryandGu LiandnotthanRMB 64million Yuan by the company in order to establish a project company in charge of the development and sales of the iron ore resources from two plant, namely Dujiawan magnetite, located at Cangfang Village, Xiangkou Township, Yunxi Town, Shiyan City, Hebei Province, and westsourthen Zhaojiayuan iron ore. The pledge mortgage provided by Kangtai Industry includes70% equity in Yunxi Shengying Mining Industry Co., Ltd,10%equity in Zhongjia Sunshine Energy Technology (Group) Co., Ltd as well as70% equityholding byGu Liin Yunxi Jinyuan Mining Industry Co., Ltd, to the company. In 2012, the three parties signed supplementary agreement basedon the actual investment process to agree an additional investment of RMB 36 million Yuan which will be used for the reconstruction of the productionlineofthetwominingareasandnewlyconstructionofmoreproductionlines.
Thecompanysignedagreements with SingaporeGreatLandHoldings Ltd (hereinafterreferredto asSingaporeGreatLand) inMay and August 2013, respectively to develop No. 20 block located at No. 20, Hairun Road, Lizigou Industry Park Area, Sanya City with the cooperation of the subsidiary of Singapore Great Land, namely Sanyan Pearl River Pipe Pile Co., Ltd. RMB 30 million Yuan paid by the company is assigned to Singapore Great Land for51% equity in the project company. At present, the certificate of land use right is underprocessing.
6、Inventories
(1)Inventoriescategory
||||||
|-|-|-|-|-|
|30June2015|||||
|ClosingBalance|ProvisionforInventory|Bookvalue|ClosingBalance|ProvisionforInventory|
|2,233,797.20||2,233,797.20|3,598,674.74||
|561,055.58||561,055.58|579,452.60||
|535,158.48||535,158.48|594,248.15||
|397,200,650.93||397,200,650.93|338,221,729.16||
|60,763,618.48|21,726,889.27|39,036,729.21|65,330,786.48|21,726,889.27|
|37,992.19||37,992.19|37,992.19||
|461,332,272.86|21,726,889.27|439,605,383.59|408,362,883.32|21,726,889.27|

 Attheendoftheperiod,thebookvalueofinventoryusedformortgageisRMB409,567,152.03Yuan.SeeNotes45. (2)Inventoriesimpairmentprovision
|||||
|-|-|-|-|
|1January2015|Increment|Decrement||
|||Transferback|Writeoff|
|21,726,889.27||||
|21,726,889.27||||

7、Othercurrentassets
||
|-|
|30June2015|
|3,000,000.00|
|3,000,000.00|

The subsidiary Hainan Pearl River Industry Co., ltd Shanghai Real Estate Company signed Contract of Cash Profit Increase Trust Plan withHwabaoTrustCo.,LtdtosubscribeRMB3millionYuanshares.
8、Available-for-salefinancialassets
（1）Categoriesofavailable-for-salefinancialassets
||
|-|
|30June2015|
|11,411,309.90|
|11,411,309.90|

 Note:TheCompanyholds7,750,000sharesofstockofSouthwestSecurities.
9、Long-termEquityInvestment
||||
|-|-|-|
|AccountingMethod|BeginningBalance|Increaseordecrease|
|EquityMethod|34,464,905.62|-125,414.24|
|EquityMethod|1,496,849.01|-79,974.06|
||35,961,754.63|-205,388.30|

 Thelong-termequityinvestmenthasnorestrainsontheabilitytotransferfundstotheinvestmententerprise.
10、Investmentproperty
||||
|-|-|-|
|1 January 2015|Increment|Decrement|
|32,711,928.57||322,062.78|
|32,711,928.57||322,062.78|
|7,402,113.93|561,964.03|102,056.69|
|7,402,113.93|561,964.03|102,056.69|
|3,081,199.41|||
|3,081,199.41|||
|22,228,615.23|——|——|
|22,228,615.23|——|——|

Note: Attheendoftheperiod,thebookvalueofassetsusedformortgageisRMB16,580,622.64Yuan.SeeNotes45.
11、Fixedassets
||||
|-|-|-|
|1January2015|Increment|Decrement|
|644,521,294.49|5,559,538.84|197,185.68|

||||
|-|-|-|
|1January2015|Increment|Decrement|
|479,604,129.64|4,567,168.00||
|68,714,821.84|362,163.00|38,534.00|
|41,296,266.29|362,704.84|158,651.68|
|54,906,076.72|267,503.00||
|200,129,043.76|16,664,919.15|189,253.10|
|90,538,619.96|9,036,577.95||
|38,320,333.35|2,461,611.82|38,534.00|
|26,486,343.65|2,128,002.34|150,719.10|
|44,783,746.80|3,038,727.04||
|7,499,295.92|——|——|
|7,499,295.92|——|——|
||——|——|
||——|——|
||——|——|
|436,892,954.81|——|——|
|381,566,213.76|——|——|
|30,394,488.49|——|——|
|14,809,922.64|——|——|
|10,122,329.92|——|——|

 Note:ThebookvalueoffixedassetsusedformortgageattheendoftheperiodisRMB277,307,830.99Yuan.SeeNotes45. The original value of fixed assets that have beenfully depreciated butis still being used atthe end of the period is RMB 72,877,834.86 Yuan.
12、Constructioninprogress
||||||
|-|-|-|-|-|
|30June2015|||||
|ClosingBalance|Impairmentlossprovision|Bookvalue|ClosingBalance|Impairmentlossprovision|
|5,648,964.09|1,800,000.00|3,848,964.09|5,648,964.09|1,800,000.00|
|4,180,000.00|1,200,000.00|2,980,000.00|4,180,000.00|1,200,000.00|
|360,000.00||360,000.00|360,000.00||
|52,905,393.25||52,905,393.25|49,824,934.37||
|63,094,357.34|3,000,000.00|60,094,357.34|60,013,898.46|3,000,000.00|

 Thechangesofmajorconstructioninprogress
|||||
|-|-|-|-|
|Beginningbalance|Increment|Transferredtofixedassets|Otherdecrement|
|49,824,934.37|3,080,458.88|||
|49,824,934.37|3,080,458.88|||

13、Constructionmaterials
||
|-|
|30June2015|
|393,706.60|
|393,706.60|

||||
|-|-|-|
|1January2015|Increment|Decrement|
|40,195,865.93|21,300.00||
|2,006,198.28|21,300.00||
|36,008,635.65|||
|93,900.00|||
|2,087,132.00|||
|8,623,665.26|605,337.98||
|1,274,327.66|124,929.30||
|6,937,976.32|458,507.22||
|5,477.50|4,695.00||
|405,883.78|17,206.46||
|911,400.00|||
|911,400.00|||
|30,660,800.67|—|—|
|731,870.62|—|—|
|29,070,659.33|—|—|
|88,422.50|—|—|
|769,848.22|—|—|

 Note:ThebookvalueoflanduserightofthemortgageorpledgeattheendoftheperiodisRMB26,909,936.53Yuan.SeeNotes45.
15、Long-termprepaidexpenses
|||||
|-|-|-|-|
|1January2015|Increment|Amortization|Otherdecrements|
|7,712,318.88|31,950.00|1,454,714.94||
|2,100,000.00||450,000.00||
|93,317.33||70,002.00||
|33,107.49||30,799.98||
|873,537.23||139,413.00||
|1,156,125.11||189,609.96||
|560,000.00||60,000.00||
|360,000.00||60,000.00||
|12,888,406.04|31,950.00|2,454,539.88||

16、Deferredtaxassetanddeferredtaxliability
（1） Deferred tax assets or deferred tax liabilities that are presented at the net amount after offset and correspondingly deductible or taxabletemporarydifferences
||||
|-|-|-|
|Taxabletemporarydifferencesattheendofthereportingperiod|Deferredtaxliabilitiesattheendofthereportingperiod|Taxabletemporarydifferencesatthebeginningofthereportingperiod|
|2,699,608.38|674,902.10|2,699,608.38|

||||
|-|-|-|
|Taxabletemporarydifferencesattheendofthereportingperiod|Deferredtaxliabilitiesattheendofthereportingperiod|Taxabletemporarydifferencesatthebeginningofthereportingperiod|
|2,699,608.38|674,902.10|2,699,608.38|

（2） Detailsofoffsettingdeferredtaxassetsanddeferredtaxliabilities
||||
|-|-|-|
|30June2015|||
|Offsetamountofdeferredtaxassetsandliabilities|Deferredtaxassetsorliabilities|Deferredtaxassetsandliabilitiesatthebeginning|
|||15,210,270.77|
||674,902.10|15,210,270.77|

（3） Detailsofunrecognizeddeferredtaxassets
||
|-|
|30June2015|
|142,761,938.73|
|346,331,500.27|
|489,093,439.00|

（4） Deductiblelossesforwhichnodeferredtaxassetsarerecognizedwillexpireinthefollowing
Years
||
|-|
|30June2015|
|10,046,033.98|
|56,453,161.41|
|98,393,343.38|
|89,577,493.21|
|91,861,468.29|
|346,331,500.27|

17、Othernon-currentassets
||
|-|
|30June2015|
|1,581,840.00|
|1,581,840.00|

 Note:on September 20, 2014, Mudanjiang Minzhen Real Estate Development Co., Ltd (hereinafter referred to as Minzhen Company), Mudanjiang Jingbo Lake Scenic Environmental Property Management Co., Ltd (hereinafter referred to as Environmental Property Management Company), and the subsidiary Mudanjiang Wan Jia Zhi Xing Hotel Co., Ltd signed debt repayment agreement. Due to the debt relationship among the three parties, through negotiation, the three parties concluded an agreement: RMB 1,581,840.00 Yuan (131.82 m2 x 12,000 Yuan) is used to offset RMB 1,019,340.00 Yuan lease compensation amount owned by Environmental Property Management Company against thecompany’s subsidiary by virtue of D12# brick villa of Shang Jing Chuan Shuo of Jingbo Lake CommunitydevelopedbyMinzhenCompany.RMB562,500.00Yuandifferenceisrecognizedastheprofitandlossofthecurrentperiod.18、Provisionofassetimpairment
|||||||
|-|-|-|-|-|-|
|1January2015|Currentyearincreases||Currentyeardecreases|||
||Currentyearaccrued|Others|Reversal|Writeoff|Others|
|80,191,142.82|833,802.08||14,036.16|||

|||||||
|-|-|-|-|-|-|
|1January2015|Currentyearincreases||Currentyeardecreases|||
||Currentyearaccrued|Others|Reversal|Writeoff|Others|
|21,726,889.27||||||
|25,532,245.39||||||
|3,081,199.41||||||
|7,499,295.92||||||
|3,000,000.00||||||
|911,400.00||||||
|141,942,172.81|833,802.08||14,036.16|||

19、Short-termborrowings
（1） Short-termloandisclosedbycategories
||
|-|
|30June2015|
|19,000,000.00|
|19,000,000.00|

（2） Pledgeloans
||
|-|
|Loanbalance|
|19,000,000.00|
|19,000,000.00|

20、Accountspayable
（1） Detailsofaccountspayableareasfollows:
||
|-|
|30June2015|
|12,491,318.55|
|105,344.00|
|451,846.00|
|5,000,000.00|
|676,134.45|
|1,796,795.79|
|1,574,638.86|
|22,096,077.65|

（2） Significantaccountspayableagingmorethanayear
||
|-|
|ClosingBalance|
|5,000,000.00|
|3,572,235.33|
|8,572,235.33|

21、Advancesfromcustomers
（1） Detailsofadvancesareasfollows:
||
|-|
|30June2015|
|13,661,197.50|
|31,100.00|
|50,000.00|
|1,571,634.57|
|8,066,008.51|
|2,260,307.04|
|25,640,247.62|

（2） Significantadvancesagingmorethanayear
||
|-|
|ClosingBalance|
|13,661,197.50|
|13,661,197.50|

22、Employeebenefitspayable
（1） Detailsofemployeebenefitspayableareasfollows
||||
|-|-|-|
|1January2015|Increment|Decrement|
|9,683,578.02|78,695,074.77|77,360,861.18|
|6,421.69|5,435,125.69|5,440,805.38|
||10,000.00|10,000.00|
|9,689,999.71|84,140,200.46|82,811,666.56|

（2） Shorttermemployeebenefitspayable
||||
|-|-|-|
|Openingbalance|Increment|Decrement|
|2,130,234.10|70,862,111.45|70,038,294.33|
||2,820,887.84|2,820,887.84|
|2,344.32|2,754,876.56|2,757,220.88|
|2,038.52|2,394,723.50|2,396,762.02|
|178.42|170,883.42|171,061.84|
|127.38|189,269.64|189,397.02|

||||
|-|-|-|
|Openingbalance|Increment|Decrement|
|10,974.00|863,429.00|828,363.80|
|7,540,025.60|1,353,030.92|879,365.33|
||40,739.00|36,729.00|
|9,683,578.02|78,695,074.77|77,360,861.18|

（3） Definedcontributionplanspayable
||||
|-|-|-|
|Openingbalance|Increment|Decrement|
|5,912.06|5,077,584.91|5,083,496.97|
|509.63|357,540.78|357,308.41|
|6,421.69|5,435,125.69|5,440,805.38|

23、Taxespayable
||
|-|
|30June2015|
|-431,121.60|
|128,893.75|
|751,042.91|
|-350,158.18|
|-617,237.74|
|10,132,855.27|
|-2,546,889.32|
|438,777.74|
|156,471.66|
|7,662,634.49|

24、Interestpayable
||
|-|
|30June2015|
|36,550,278.36|
|99,941,397.94|
|10,449,888.49|
|926,133.00|
|147,867,697.79|

25、Dividendpayable
||
|-|
|30June2015|
|3,213,302.88|
|3,213,302.88|

26、Otherpayables
Items 30June2015 1January2015
||
|-|
|30June2015|
|470,885,047.61|
|43,000,000.00|
|14,257,732.10|
|298,790.00|
|6,031,465.18|
|4,033,910.69|
|260,589.00|
|59,609,095.62|
|598,376,630.20|

27、Currentportionofnon-currentliabilities
||
|-|
|30June2015|
|386,098,907.05|
|386,098,907.05|

28、Long-termborrowings
（1） Categoriesoflong-termborrowings
||
|-|
|30June2015|
|164,303,532.50|
|524,805,306.92|
|150,856,734.31|
|386,098,907.05|
|453,866,666.68|

（2） Pledgedloansdetails
||
|-|
|Closingbalance|
|164,303,532.50|
|164,303,532.50|

（3） Mortgagedloandetails
||
|-|
|Closingbalance|
|54,000,000.00|
|196,805,306.92|
|24,000,000.00|
|250,000,000.00|
|524,805,306.92|

（4） Guaranteedloandetails
||
|-|
|Closingbalance|
|67,523,400.99|
|83,333,333.32|
|150,856,734.31|

29、Sharecapital
|||||||
|-|-|-|-|-|-|
|1January2015|Incrementordecrement(+,-)|||||
||issuednewshares|Bonusissue|Surplusconverted|others|subtotal|
|1,325,131.00||||||
|1,325,131.00||||||
|1,299,500.00||||||
|25,631.00||||||
|425,420,273.00||||||
|360,445,273.00||||||
|64,975,000.00||||||
|426,745,404.00||||||

30、Capitalreserve
||||
|-|-|-|
|1January2015|Increase|Decrease|
|225,390,819.63|||
|109,300,017.82|||
|334,690,837.45|||

31、Othercomprehensiveincome
|||||||
|-|-|-|-|-|-|
|1January2015|Amountforthecurrentperiod|||||
||Before-taxamountforthecurrentperiod|Less：Netamountincludedinothercomprehensiveincomeinthepriorperiodsthatistransferredtoprofitorlossfortheperiod|Less：incometax|Post-taxnetamountbelongingtoparentcompanyowners|Post-taxnetamountbelongingtominorityshareholders|
|125,127,595.63||125,127,595.63||||
|125,127,595.63||125,127,595.63||||

32、Surplusreserves
||
|-|
|30June2015|
|71,852,236.46|
|37,634,827.93|

||
|-|
|30June2015|
|109,487,064.39|

33、Retainedearnings
Items Amounts
Non-adjustedClosingBalanceoftheyear2013 -980,486,431.07 Adjustedopeningbalanceoftheyear2014
Add:Netprofitattributedtotheownersoftheparentcompany 21,492,625.03Less：Statutorysurplusreserve
Randomsurplusreserve
Commonriskprovision
DividendpayableofOrdinaryshares
Sharecapitalconvertedfromdividendofordinaryshares
Undistributedprofitattheendofperiod -958,993,806.0434、Operatingincomeandoperatingcosts
（1）Operatingincome
||
|-|
|Jan.–Jun,2015|
|125,940,552.56|
|10,177,276.63|
|136,117,829.19|

（2）Operatingcosts
||
|-|
|Jan.–Jun,2015|
|98,834,069.35|
|1,903,272.52|
|100,737,341.87|

（3）Thedetailsofmainoperatingbusinesseswereasfollowsaccordingtoproducts:
||||
|-|-|-|
|Jan.–Jun,2015|||
|Mainoperatingbusinessincome|Mainoperatingbusinesscosts|Mainoperatingbusinessincome|
|||2,916,880.00|
|95,547,448.69|85,885,239.27|80,129,140.46|
|30,393,103.87|12,948,830.08|39,121,313.37|
|125,940,552.56|98,834,069.35|122,167,333.83|

（4）Incomeandcostsofprincipaloperationsanalysedbyregionsaresetoutbelow:
||||
|-|-|-|
|Jan.–Jun,2015|||
|Mainoperatingbusinessincome|Main operatingbusinesscosts|Mainoperatingbusinessincome|
|109,822,764.56|92,811,348.53|96,494,491.74|

||||
|-|-|-|
|14,326,957.30|4,895,210.17|20,929,516.99|
|349,224.00|310,731.36|3,409,886.00|
|0.00|0.00|0.00|
|1,441,606.70|816,779.29|1,327,239.10|
|0.00|0.00|6,200.00|
|125,940,552.56|98,834,069.35|122,167,333.83|

35、Businesstaxesandsurcharges
||
|-|
|Jan.–Jun,2015|
|476,412.41|
|204,176.76|
|6,805,891.46|
|9,200.00|
|136,318.84|
|7,631,999.47|

36、Sellingexpenses
||
|-|
|Jan.–Jun,2015|
|1,114,145.29|
|0.00|
|0.00|
|1,144,346.31|
|547,630.37|
|2,806,121.97|

37、Administrativeexpenses
||
|-|
|Jan.–Jun,2015|
|15,493,989.52|
|16,106,092.25|
|3,441,034.93|
|1,682,603.42|
|11,803,658.40|
|48,527,378.52|

38、Financeexpenses
||
|-|
|Jan.–Jun,2015|
|53,473,422.46|
|1,752,443.40|
|10,325,036.25|

||
|-|
|Jan.–Jun,2015|
|65,550,902.11|

39、ImpairmentLossofAssets
||
|-|
|Jan.–Jun,2015|
|819,765.92|
|819,765.92|

40、Investmentincome
||
|-|
|Jan.–Jun,2015|
|-205,388.30|
|124,342,755.05|
|124,137,366.75|

41、Non-operatingincome
||
|-|
|Jan.–Jun,2015|
|12,073.95|
|43,773.33|
|452,686.58|
|508,533.86|

42、Non-operatingexpenses
||
|-|
|Jan.–Jun,2015|
|1,100.00|
|175,648.42|
|18,087.20|
|194,835.62|

43、Incometaxexpenses
||
|-|
|Jan.–Jun,2015|
|643,839.49|
|15,210,270.77|
|15,854,110.26|

(1)Cashreceivedrelatingtootheroperatingactivities
||
|-|
|Jan.–Jun,2015|
|3,642,340.00|
|2,500,000.00|
|205,000.00|
|200,000.00|
|3,680,000.00|
|4,023,600.00|
|7,001,038.50|
|436,528.39|
|447,100.97|
|1,148,781.89|
|23,284,389.75|

 (2)Cashpaidrelatingtootheroperatingactivities
||
|-|
|Jan.–Jun,2015|
|200,000.00|
|17,300,000.00|
|3,400,000.00|
|3,023,000.00|
|3,619,893.57|
|12,008,726.54|
|1,180,341.32|
|158,017.54|
|290,735.74|
|280,936.05|
|1,173,579.01|
|42,635,229.77|

 (3)Cashreceivedrelatingtootherinvestingactivities
||
|-|
|Jan.–Jun,2015|

 (4)Cashpaidrelatingtootherfinancingactivities
||
|-|
|Jan.–Jun,2015|
|11,446,555.28|
|58,140.00|
|11,504,695.28|

45、Supplementaryinformationofcashflowstatement
(1)Supplementaryinformation
||
|-|
|Jan.–Jun,2015|
|18,641,274.06|
|819,765.92|
|17,226,883.18|
|605,337.98|
|2,454,539.88|
|-204,803.91|
|-7,067.42|
|65,403,843.97|
|-124,137,366.75|
|15,210,270.77|
|-46,689,362.00|
|46,525,715.08|
|-90,811,825.58|
|-94,962,794.82|
|136,016,986.29|
|97,404,192.62|
|38,612,793.67|

 (2)Cashandcashequivalents
||
|-|
|Jan.–Jun,2015|
|116,016,986.29|
|688,023.10|
|115,302,351.70|
|26,611.49|
|116,016,986.29|

46、Assetswithownershiprestricted
Assetsbycategories ClosingBalance Restrictedreasons
||
|-|
|ClosingBalance|
|20,000,000.00|
|409,567,152.03|
|16,580,622.64|
|277,307,830.99|
|26,909,936.53|
|750,365,542.19|

I． VII.Sharesandrightsinothercompanies
1. Subsidiaries
（1） GroupComposition
||||||
|-|-|-|-|-|
|Placeofoperation|Placeofregistration|Natureofbusiness|Equityinterestheld(%)||
||||Direct|Indirect|
|Hainaa、Zhenzhou|Haikou,Hainan|Propertymanagement|98.00||
|Haikou,Hainan|Haikou,Hainan|Propertymanagement|100.00||
|Haikou,Hainan|Haikou,Hainan|Propertymanagement|100.00||
|Haikou,Hainan|Haikou,Hainan|Propertymanagement|100.00||
|Haikou,Hainan|Haikou,Hainan|Realestatedevelopment|100.00||
|Sanya,Hainan|Sanya,Hainan|Hotelservice|100.00||
|Wuhan,Hubei|Wuhan,Hubei|Realestatedevelopment|89.20||
|Wuhan,Hubei|Wuhan,Hubei|Hotelservice|100.00||
|Shanghai|Shanghai|Realestatedevelopment|100.00||
|Beijing|Beijing|Culturalandsportsservices|100.00||
|MudanjiangCity|MudanjiangCity|Hotelservice、tourism|100.00||
|MudanjiangCity|MudanjiangCity|Hotelservice|100.00||
|MudanjiangCity|MudanjiangCity|Hotelservice|100.00||
|MudanjiangCity|MudanjiangCity|Hotelservice|100.00||
|Harbin|Harbin|OperationofMovieandTV|70.00||
|Harbin|Harbin|Tourism|100.00||
|Shijiazhuang|Shijiazhuang|Realestatedevelopment|51.00||
|Shanghai|Shanghai|Propertymanagement|50.00||

（2） Significantnonwhollyownedsubsidiaries
||||
|-|-|-|
|Proportionofminority(%)|CurrentP/Lattributabletominorityshareholders|Currentdividendpayementstominority|
|2.00|-22,430.44||
|10.80|-534,855.34||

||||
|-|-|-|
|Proportionofminority(%)|CurrentP/Lattributabletominorityshareholders|Currentdividendpayementstominority|
|30.00|-1,035,175.94||
|49.00|-1,271,886.66||
|50.00|12,997.41||
|-----|-2,851,350.97||

（3） Thefinancialinformationofsignificantnonwhollyownedsubsidiaries
Closingbalance
Companyname
||||||
|-|-|-|-|-|
|Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentliabilities|
|77,712,829.22|3,333,406.73|81,046,235.95|72,051,588.74||
|674,321,690.86|12,182,974.61|686,504,665.47|335,736,161.53|250,000,000.00|
|6,358,071.23|4,811,948.69|11,170,019.92|26,217,202.16||
|28,031,088.64|727,627.65|28,758,716.29|41,186,312.37||
|2,138,742.41|5,385.21|2,144,127.62|1,784,766.07||

Continued:
Openingbalance
Companyname
||||||
|-|-|-|-|-|
|Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentliabilities|
|75,411,751.89|3,661,263.74|79,073,015.63|68,956,846.41||
|400,473,121.91|7,384,351.67|407,857,473.58|302,136,757.70||
|4,159,517.17|5,830,346.04|9,989,863.21|21,586,458.98||
|27,955,312.68|936,459.15|28,891,771.83|38,723,680.86||
|1,848,964.75|7,276.92|1,856,241.67|1,522,874.93||

Continued:
30June2015
||||
|-|-|-|
|Operatingincome|Netprofit|Totalcomprehensiveincome|
|94,105,841.99|-1,121,522.01|-1,121,522.01|
|732,797.00|-4,952,211.94|-4,952,211.94|
|3,826,013.00|-3,450,586.47|-3,450,586.47|
||-2,595,687.05|-2,595,687.05|
|1,441,606.70|25,994.81|25,994.81|

 Continued:
30June2015
||||
|-|-|-|
|Operatingincome|Netprofit|Totalcomprehensiveincome|
|78,801,901.36|-349,464.52|-349,464.52|
|3,888,886.00|-3,663,074.53|-3,663,074.53|

30June2015
||||
|-|-|-|
|Operatingincome|Netprofit|Totalcomprehensiveincome|
|236,435.00|-3,538,712.12|-3,538,712.12|
|-|-2,786,003.77|-2,786,003.77|
|1,327,239.10|33,911.59|33,911.59|

2. Detailsoftransactionswhichthesubsidiariesstillbecontrolledalthoughproportionofminoritychanged
（1） Thedetailsofchangeinproportionofminority
（2） Theeffectofequityattributabletoparentcompanyandminorityinterests
3. Equityinjointventuresorassociates
（1） Significantassociates
||||||
|-|-|-|-|-|
|Placeofoperation|Placeofregistration|Natureofbusiness|Equityinterestheld(%)||
||||Direct|Direct|
|Sanya|Sanya|Real estatedevelopment|40||

（2） FinancialinformationofSignificantassociates
||
|-|
|30Jun2015|
|SanyaWanjiaIndustrialCo.Ltd|
|86,539,175.69|
|581,665.81|
|87,120,841.50|
|1,272,113.05|
|1,272,113.05|
|85,848,728.45|
|34,339,491.38|
|34,339,491.38|

Continued:
||
|-|
|30Jun2015|
|SanyaWanjiaIndustrialCo.Ltd|
|0.00|
|-313,535.59|
|-313,535.59|

（3） Financialinformationofnotsignificantassociates
||
|-|
|30Jun2015|
|1,416,874.95|
|—|
|-79,974.06|
|-79,974.06|

4、Undeterminedwarrantyrelatingtojointventure
Thereisnowarrantymattertobedisclosed.
5、Contingentliabilitiesrelatingtojointventureorassociates
Therearenocontingentmatters.
VIII.Disclosureofriskrelatingtofinancialinstrument
The operating business of the company faces the following financial risks: credit risk, liquidity risk and market risk (mainly of interest rate risk). The company's overall risk management plan is aimed for the unpredictability of financial markets, striving to reduce the potentialadverseeffectsonfinancialresults.
(I)Creditrisk
The company's credit risk mainly comes from monetary funds, accounts receivable, other receivables, and financial asset available for sales.Themanagementhasformulatedappropriatecreditpolicyandcontinuouslymonitorsthecreditriskexposure.
Themonetaryfund’s holdingby thecompany mainly depositin the commercial banks andother financialinstitutions.The management believesthatsuchcommercialbankshavehighergoodwillandassetstatus,andthecreditriskisrelativelow.Thecompanyadoptsquota policytoevadecreditrisktoanyfinancialinstitution.
For accounts receivable and other receivable, the company sets the relevant policies to control credit risk exposure. The company assesses the credit qualification and sets the corresponding credit period based oncustomer’s financial status, from the possibility of a third party to obtain guarantees, credit history and other factors. The company periodically monitors customer credit record. For the customer with bad credit records, the company issues written notice for prompt payment, shortens the credit period or cancel the credit periodinordertoensurethecompany'soverallcreditriskinthecontrollablerange.
Thebiggest creditrisk exposure thecompany undertook is the book value of eachfinancialassetin the balancesheet. In additionto the financialguaranteelistedinthenotes,thecompanyhadnotprovidedanyguaranteethatmaygeneratecreditrisktothecompany. (II)Liquidityrisk
Liquidity risk refers to the risk that the company is unable to timely access to adequate funds, meet the needs of business development orpaydebtsandotherpaymentobligations.
Thecompany’s finance department continuously monitors its short-term and long-term capital requirements in order to ensure the maintenance of sufficient cash reserves; at the same time, supervises the compliance of the provisions of loan agreement, acquires sufficientreservefundguaranteefrommajorfinancialinstitutionsinordertomeetthedemandsofshort-termandlong-termfunds. As at 30 June 2015, the financial assets and liabilities of the Company are analyzed by their maturity date below at their undiscounted contractualcashflows:
30Jun2015
Item
||||||
|-|-|-|-|-|
|Netbookvalue|Carryingamount|Within1year|1to2years|2to5years|
|136,016,986.29|136,016,986.29|136,016,986.29|||
|14,168,842.98|25,041,367.98|25,041,367.98|||

30Jun2015
Item
||||||
|-|-|-|-|-|
|Netbookvalue|Carryingamount|Within1year|1to2years|2to5years|
|261,993,360.85|332,131,744.59|332,131,744.59|||
|11,411,309.90|36,943,555.29|36,943,555.29|||
|423,590,500.02|530,133,654.15|530,133,654.15|||
|19,000,000.00|19,000,000.00|19,000,000.00|||
|22,096,077.65|22,096,077.65|22,096,077.65|||
|598,376,630.20|598,376,630.20|598,376,630.20|||
|839,965,573.73|839,965,573.73|386,098,907.05|177,866,666.64|276,000,000.04|
|1,479,438,281.58|1,479,438,281.58|1,025,571,614.90|177,866,666.64|276,000,000.04|

Continued:
1Jan2015
Item
||||||
|-|-|-|-|-|
|Netbookvalue|Carryingamount|Within1year|1to2years|2to5years|
|97,404,192.62|97,404,192.62|97,404,192.62|||
|12,378,292.44|23,143,450.61|23,143,450.61|||
|238,352,004.55|307,777,989.20|307,777,989.20|||
|184,158,809.90|209,691,055.29|209,691,055.29|||
|532,293,299.51|638,016,687.72|638,016,687.72|||
|19,000,000.00|19,000,000.00|19,000,000.00|||
|58,578,620.48|58,578,620.48|58,578,620.48|||
|780,359,522.08|780,359,522.08|780,359,522.08|||
|576,775,506.08|576,775,506.08|249,471,973.56|183,970,199.18|135,000,000.04|
|1,434,713,648.64|1,434,713,648.64|1,107,410,116.12|183,970,199.18|135,000,000.04|

 (III)Marketrisks
1.Foreignexchangerisk
N/A
1. Interestraterisk
The company's interest rate risk is mainly from bank borrowing. The financial liabilities of floating rate make the company to face the interest rate risk of cash flow.The financial liabilities of fixed interest rate make the company to face the interest rate risk of fair value. Theratiooffixedinterestrateandfloatinginterestratecontractisrecognizedaccordingtothemarketenvironment.
As of June 30, 2015, the long-term debt bearing with interest is Renminbi-denominated floating interest rate contract. The amount is RMB478,856,734.31Yuan;theRenminbi-denominatedfixed-ratecontractisamountedtoRMB705,771,752.32Yuan. IX.Fairvalue
(I)Financialinstrumentmeasuredbyfairvalue
The overall fair value is classified into three levels on the basis of important input value of the lowest level from the three when measuringthefairvalue.Thedefinitionsofthethreelevelsare:
Level1:theun-adjustedquotationintheactivemarketofthesameassetsorliabilitiesacquiredonthemeasurementdate;
Level2:observableinputvalues,directlyorindirectly,relatingtotherelatedassetsorliabilitiesbeyondthevaluesofthefirstlevel;
The inputvalues ofthe secondlevel include:1) similar assets or liabilities quotations in the active market;2) the same or similar assets
orliabilitiesinnon-activemarket;3)otherobservableinputvaluesotherthanthequotation,includinginterestrates,yieldcurve,implied
volatilityandcreditspreadsthatareobservableduringthenormalquotationinterval;4)inputvaluesofmarketvalidation. Level3:un-observableinputvaluesoftherelatedassetsandliabilities.
(II)Measurementoffairvalueattheendofperiod
1.Sustainablemeasurementoffairvalue
Thereisnofinancialinstrumentoffairvaluemeasurementattheendofthisperiod.
(III)Recognitionbasisforcontinuousmeasurementthemarketpriceoffairvalueofthefirstlevel
Thecontinuousmeasurementofthemarketpriceoffairvalueofthefirstlevelistheclosingpriceattheendingtimeintheactivemarket ontheexchange.
(IV)Fairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredbyfairvalue
It mainly includes accounts receivable, short-term loan, accounts payable, non-current liabilities due within one year, long-term loan, andequityinvestmentthathasnoactivemarket,quotationanditsfairvaluecannotbereliablymeasured.
Thecompany’s management believes that the difference between the book value of the financial assets and liabilities not measured by thefairvalueandthefairvalueissmall.
II．X、Relatedpartyrelationshipandtransactions
(I).Parentcompanyandultimatecontroller:
|||||||
|-|-|-|-|-|-|
|Registeredaddress|Organizationcode|Principaloperating|Relationship withtheCompany|Registeredcapital|Holdingproportion|
|Beijing|60003715-7|Real estatedevelopment andoperation|The first largestshareholder|28,012.89millionYuan|26.36%|

TheultimatecontrollerofthecompanyisBeijingXinxingRealEstateDevelopmentCorporation.
(II)Informationaboutsubsidiaries
Detailsreferto“NoteX.1.Subsidiaries”.
(III)InformationaboutjointventureandassociatesoftheCompany
Detailsreferto“NoteX.2.Equityinjointventuresorassociates”.
(IV)Transactionsofrelatedparties
1. Internaltransactionshavealreadybeenoffset.
2. Renderingservices
|||
|-|-|
|Natureofrelatedtransaction|30Jun-2015|
|Rentservices|120,000.00|
||120,000.00|

 3. Guaranteesprovided
||||
|-|-|-|
|Amount|Beginningdateofguaranteecontract|Maturitydateofguaranteecontract|
|164,303,532.50|2014/9/15|2018/5/28|
|27,000,000.00|2013/9/12|2016/9/12|
|191,303,532.50|||

4.Interbankborrowingamongrelatedparties
(1) As of June 30, 2015, the balance of borrowing principle lent by the company from Beijing Xinxing Real Estate Development CorporationisRMB123,967,912.9YuanandthebalanceofinterestpayableisRMB25,237,119.56Yuan.
(2) As of June 30, 2015, the balance of borrowing principle lent by the company from Beijing Wanfa Real Estate Development Co., LtdisRMB58,825,000.00YuanandthebalanceofinterestpayableisRMB27,132,902.85Yuan.
(3) As of June 30, 2015, the balance of borrowing principle lent by the subsidiary Sanya Wanjia Hotel Management Co., Ltd from Beijing Xinxing Real Estate Development Corporation is RMB 32,030,000.00 Yuan, and the balance of interest payable is RMB 34,201,072.68 Yuan; the balance of borrowing principle lent from Beijing Wanfa Real Estate Development Co., Ltd is RMB 19,700,000.00YuanandthebalanceofinterestpayableisRMB11,925,070.3Yuan.
Theone-year RMB loanbenchmark interestrate released bythe People's Bank of China is appliedfor the above borrowinginterest rate which will be changed along with its alteration. The provision of borrowing interest of the above related parties during the reporting periodisRMB5,339,308.38YuanandthebalanceofinterestpayableisRMB98,496,165.39Yuan.
5.Remunerationofkeymanagement(10,000Yuan)
||
|-|
|Amountofthisperiod|
|76.47|

 6.Balancesofrelatedpartyreceivableandpayable
|||
|-|-|
|CompanyName|30Jun-2015|
|BeijingXinxingRealEstateDevelopmentGeneralcompany|155,997,912.90|
|BeijingWangfaRealEstateDevelopmentHoldingsCo.,Ltd|78,525,000.00|
|BeijingZhongjiaYangguangenergytechnology(Company)Co.,Ltd.|3,541,380.93|
|Total|238,064,293.83|
|BeijingXinxingRealEstateDevelopmentGeneralcompany|59,438,192.24|
|BeijingWangfaRealEstateDevelopmentHoldingsCo.,Ltd.|39,057,973.15|
|Total|98,496,165.39|

 XI.Guarantee andcontingencies
(I)Keyguarantee
Thecompanyhasnotguaranteematterstobedisclosed.
(II)Contingencies existing on the balance sheet date
Therearenocontingencies
obedisclosed.
XII. Events afterthebalance sheetdate
(I)Profitdistribution
Accordingtothe16thsessionoftheseventhboardofmeeting,thereisnoprofitdistributionplaninthefirsthalfyearof2015.
(II)Statementonothereventsafterthebalance sheet date
Exceptfortheabovementionedeventsafterthebalancesheetdate,asofthereportingdate,thereisnootherundisclosedkeyeventafter
thebalancesheetdate.
XIII.Othersignificantmatters
The operating funds of the company as of June 30, 2015 are RMB - 229.89 million Yuan. Of which, RMB - 88.07 million Yuan is attributable toshareholders’equity of the parent company; RMB 21.49 millionYuan net profit is attributable to the parent company of the first half year of 2015. The company's will speed up the development progress of the projects in future, dispose existing assets, andexpandthefinancingchannelsandmajorshareholder’scontinuedsupportinordertoimprovethecompany's profitabilityandtoenhance thecompany'sfutureabilitytocontiguousoperation.
XIV.Notestosignificantitemsoftheparentcompany’sfinancialstatements
1. Accountsreceivable
（1） Disclosureofaccountsreceivablebycategories:
||||||||
|-|-|-|-|-|-|-|
|30Jun-2015|||||||
|Balance|Proportion(%)|Baddebts|Baddebtratio(%)|Balance|Proportion(%)|Baddebts|
|7,761,707.60|57.71|7,761,707.60|100.00|7,761,707.60|56.89|7,761,707.60|
|3,789,176.65|28.17|538,869.82|14.22|3,983,002.62|29.19|547,524.46|
|1,898,690.60|14.12|1,898,690.60|100.00|1,898,690.60|13.92|1,898,690.60|
|13,449,574.85|100.00|10,199,268.02||13,643,400.82|100.00|10,207,922.66|

（2）Accountsreceivableforwhichbaddebtprovisionhasbeenassessedbyportfolios：
Accountsreceivableportfoliosforwhichbaddebtprovisionhasbeenassessedusingtheaginganalysisapproach:
||||||
|-|-|-|-|-|
|Age|30Jun-2015||||
||Amounts|BadDebtsProvision|Amounts|BadDebtsProvision|
||1,972,676.78|39,453.54|2,007,232.28|40,144.65|
||706,741.45|35,337.07|866,011.92|43,300.60|
|2to3years|102,000.00|10,200.00|102,000.00|10,200.00|
|3to4year|100,000.00|20,000.00|100,000.00|20,000.00|
|4to5years|100,000.00|30,000.00|100,000.00|30,000.00|
|5yearsandmore|807,758.42|403,879.21|807,758.42|403,879.21|
|Total|3,789,176.65|538,869.82|3,983,002.62|547,524.46|

（3） Accountsreceivableforwhichbaddebtprovisionhasbeenassessedindividually
Accountsreceivablethatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually
||||
|-|-|-|
|EndingBalance|BadDebtProvision|Proportion(%)|
|2,406,158.00|2,406,158.00|17.89|
|2,218,494.43|2,218,494.43|16.49|
|2,090,069.77|2,090,069.77|15.54|
|1,760,515.28|35,210.31|13.09|
|1,118,500.00|354,330.00|8.32|

||||
|-|-|-|
|EndingBalance|BadDebtProvision|Proportion(%)|
|9,593,737.48|7,104,262.51||

 2. Otherreceivables
（1） Disclosureofotherreceivablesbycategories:
||||||||
|-|-|-|-|-|-|-|
|30Jun-2015|||||||
|Balance|Proportion(%)|Baddebts|Baddebtratio(%)|Balance|Proportion(%)|Baddebts|
|36,793,380.89|4.58|21,378,380.89|58.10|35,343,380.89|4.01|21,378,380.89|
|247,279,547.08|30.80|37,537,018.89|15.18|246,340,004.64|27.95|37,512,008.05|
|514,363,800.05|64.07|||595,170,501.36|67.52||
|761,643,347.13|94.87|37,537,018.89|4.93|841,510,506.00|95.47|37,512,008.05|
|4,338,158.93|0.54|3,970,515.63|91.53|4,597,298.84|0.52|3,975,946.33|
|802,774,886.95|99.99|62,885,915.41|——|881,451,185.73|100.00|62,866,335.27|

（2）Otherreceivablesforwhichbaddebtprovisionhasbeenassessedbyportfolios：
AginganalysisOtherreceivablesportfoliosforwhichbaddebtprovisionhasbeenassessedusingtheaginganalysisapproach:
||||||
|-|-|-|-|-|
|30Jun-2015|||||
|Amounts||BadDebtProvision|Amounts||
|Amounts|Ratio(%)||Amounts|Ratio(%)|
|2,266,314.20|0.92|45,326.28|1,435,771.76|0.58|
|31,443,200.00|12.72|1,572,160.00|31,393,200.00|12.74|
|78,693,146.00|31.82|7,869,314.60|78,693,146.00|31.94|
|124,496,458.54|50.35|24,893,391.71|124,437,458.54|50.51|
|10,166,939.34|4.11|3,050,081.80|10,166,939.34|4.13|
|213,489.00|0.09|106,744.50|213,489.00|0.09|
|247,279,547.08|0.92|37,537,018.89|246,340,004.64|100.00|

（3） Otherreceivablesforwhichbaddebtprovisionhasbeenassessedindividually
Otherreceivablesthatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually
||||
|-|-|-|
|ClosingBalance|BadDebtProvision|Proportion(%)|
|17,297,525.99|1,882,525.99|11%|
|2,725,702.71|2,725,702.71|100%|
|2,314,592.00|2,314,592.00|100%|
|2,210,779.10|2,210,779.10|100%|
|1,901,383.56|1,901,383.56|100%|
|1,752,100.00|1,752,100.00|100%|
|1,550,278.23|1,550,278.23|100%|
|1,409,934.28|1,409,934.28|100%|
|1,392,430.00|1,392,430.00|100%|

||||
|-|-|-|
|ClosingBalance|BadDebtProvision|Proportion(%)|
|1,208,804.70|1,208,804.70|100%|
|1,029,850.32|1,029,850.32|100%|
|1,000,000.00|1,000,000.00|100%|
|1,000,000.00|1,000,000.00|100%|
|36,793,380.89|21,378,380.89||

Otherreceivablesthatareindividuallyinsignificantandforwhichbaddebtprovisionhasbeenassessedindividually
||||
|-|-|-|
|ClosingBalance|BadDebtProvision|Proportion(%)|
|440,000.00|440,000.00|100|
|283,478.62|283,478.62|100|
|3,614,680.31|3,247,037.01|89.83|
|4,338,158.93|3,970,515.63||

（4） BaddebtprovisioninthisyearisRMB19,580.14.
（5） Asat30June2015,thetop5otherreceivablesbycustomeraresummariesdasbelow:
|||||
|-|-|-|-|
|Relationshipwiththecompany|Ownedamount|Ages|ProportionoftotalOtherreceivable(%)|
|RelatedParty|247,810,841.55|Within3years|30.87|
|UnrelatedParty|128,027,245.51|Within5years|15.95|
|RelatedParty|100,400,000.00|2-4years|12.51|
|UnrelatedParty|100,000,000.00|2-4years|12.46|
|RelatedParty|94,168,132.42|Within1year|11.73|
||670,406,219.48|||

 3. Long-termequityinvestments
（1） CategoriesofLong-termequityinvestments
||||
|-|-|-|
|1Jan-2015|Increases|Decreases|
|299,420,000.00|||
|34,464,905.62||125,414.24|
|333,884,905.62||125,414.24|
|40,000,000.00|||
|293,884,905.62|||

（2） Subsidiaries
|||||||
|-|-|-|-|-|-|
|Originalinvestmentcost|1Jan-2015|Increases|Decreases|30Jun-2015|Provisionforimpairment|
|4,900,000.00|4,900,000.00|||4,900,000.00||

|||||||
|-|-|-|-|-|-|
|Originalinvestmentcost|1Jan-2015|Increases|Decreases|30Jun-2015|Provisionforimpairment|
|64,420,000.00|64,420,000.00|||64,420,000.00||
|120,000,000.00|120,000,000.00|||120,000,000.00||
|40,000,000.00|40,000,000.00|||40,000,000.00||
|60,000,000.00|60,000,000.00|||60,000,000.00||
|5,000,000.00|5,000,000.00|||5,000,000.00||
|5,100,000.00|5,100,000.00|||5,100,000.00||
|299,420,000.00|299,420,000.00|||299,420,000.00||

（3） Associates
|||||
|-|-|-|-|
|1Jan-2015||||
||Increasesininvestment|Decreasesininvestment|Investmentincomerecognizedunderequitymethod|
|34,464,905.62|||-125,414.24|
|34,464,905.62|||-125,414.24|

Continued:
||||||
|-|-|-|-|-|
|Movement||||30Jun-2015|
|otherequitychanges|Announcingcashdividendsorprofits|Provision|Others||
|||||34,339,491.38|
|||||34,339,491.38|

 4. Operatingincomeandoperatingcosts
(1)Operatingincome
||
|-|
|Jan.–Jun,2015|
|512,071.26|
|512,071.26|

 (2)Operatingcosts
||
|-|
|Jan.–Jun,2015|
|177,796.80|
|177,796.80|

5. Investmentincome
||
|-|
|Jan.–Jun,2015|
|-125,414.24|

||
|-|
|Jan.–Jun,2015|
|124,342,755.05|
|124,217,340.81|

 IV.Supplementaryinformation
1. Breakdownofnon-recurringprofitorloss
Items Jan.–Jun,2015 Profitandlossondisposalofnon-currentassets 12,073.95 Fundoccupationfeefromnon-financialenterprisesincludedinthecurrent profitandloss 632,253.44 Inadditiontothenormaloperationofthesamebusinessrelatedeffectivehedgingbusiness,holdingthefair
valueoffinancialassetstransaction,transactionfinancialliabilitiesgeneratedbythemovementoftheprofit
124,342,755.05 andloss,andthedisposaloftradingfinancialassets,financialliabilitiesheldfortradingandavailableforsale
financialassetstoobtaininvestmentincome
Investmentincomefromdisposalofavailable-for-salefinancialassets
Othersnon-operatingincomeandexpensesexcludedasabove 301,624.29 Othernon-operatingincomeandcosts
Taxeffects -659.95 Effectsattributabletominorityinterests(aftertax) 428.52 Total 125,288,938.16 2. Returnonequity(ROE)andearningspershare("EPS")
|||
|-|-|
|Weightedaveragereturnonnetassets(%)||
||Basicearningspershare|
|0.00|0.05|
|0.00|-0.24|

3. Abnormalfinancialstatementsitems("F/Sitems")anddescriptionofreasons
（1） Balancesheet
||||
|-|-|-|
|30Jun-2015|1Jan-2015|Rateofchange|
|136,016,986.29|97,404,192.62|39.64%|
|3,000,000.00|-|100.00%|
|11,411,309.90|184,158,809.90|-93.80%|
|22,096,077.65|58,578,620.48|-62.28%|
|7,662,634.49|4,603,277.48|66.46%|
|386,098,907.05|249,471,973.56|54.77%|

||||
|-|-|-|
|30Jun-2015|1Jan-2015|Rateofchange|
|453,866,666.68|327,303,532.52|38.67%|
|674,902.10|23,187,756.33|-97.09%|
|-|125,127,595.63|-100.00%|
|639,230.27|3,490,581.24|-81.69%|

（2） Incomestatement
||||
|-|-|-|
|Jan.–Jun,2015|Jan.–Jun,2014|Rateofchange|
|124,137,366.75|393,349.34|31459.06%|
|15,854,110.26|135,935.72|11562.95%|
|-125,127,595.63|-8,021,250.00|-1459.95%|
|-94,962,794.82|-156,748,554.81|39.42%|
|131,679,709.58|-60,065,370.60|319.23%|
|1,895,878.91|233,443,894.66|-99.19%|

HainanPearlRiverHoldingCompanyLimited 29August2015